98-32 v RESOLUTION NO. 98-32
A RESOLUTION AMENDING THE OPERATING BUDGET FOR THE CITY OF
ATLANTIC BEACH,FLORIDA,FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 1997 AND ENDING SEPTEMBER 30, 1998
WHEREAS,the City Charter of the City of Atlantic Beach requires that the City Commission
approve all budgetary increases and transfers at the fund level, and
WHEREAS,the nature of budgetary systems and those day to day decisions affecting such
budgetary systems require adjustments from time to time.
NOW,THEREFORE,BE IT RESOLVED by the City Commission of the City of Atlantic
Beach,that the following Budget Modification be approved for the 1997-1998 Operating Budget.
BOND DEBT SERVICE FUND
Revenues:
Transfer from Water Utility Fund 49000003813000 -330,000
Transfer From Sewer Utility Fund 49000003814000 -877,580
Interest Earnings 49000003611002 -70,000
Expenditures:
Non-Departmental
Interest on 1996 Bonds 49000005827210 -$ 1,207,580
WATER UTILITY FUND
Expenses:
Debt Service
Interest on 1996 Bonds 40000005827296 232,097
Transfers
To Utility Debt Service Fund 40000005819102 -330,000
To Storm Water Utility 40000005819147 110,433
SEWER UTILITY FUND
Expenses:
Debt Service
Interest on 1996 Bonds 41000005827296 754,617
Transfers
To Utility Debt Service Fund 41000005819102 -877,580
To Storm Water Utility 41000005819147 110,433
STORM WATER UTILITY FUND
Revenues:
Transfer from Water Utility Fund 47000003822000 110,433
Transfer from Sewer Utility Fund 47000003823000 110,433
.. •
Expenses:
Debt Service
Interest on 1996 Bonds 47000005827296 220,866
Description:
In prior years the debt service for the Utility Revenue Bonds was Budgeted in a separate fund by showing
funds being transferred from the Water and Sewer Utilities.
Actual expenditures for debt service have been reported in the City's financial statements in a different
way. The audited financial statements account for the debt service in the funds which owe the debt and
charges debt service according to their share of that debt. The Storm Water revenues are not sufficient to
support the portion of the debt related to the project"Storm Water Master Plan Improvements". and as
such,the bond debt service was intended to be paid for from Water and Sewer revenues which is why the
transfers from Water and Sewer are necessary to support the Storm Water portion of the debt.
This adjustment to the budget will eliminate the bond debt service fund and re-budget the debt service in
the funds with the debt and will make the budget and audit consistent in the accounting for Utility Bond
Debt Service. Interest will be allocated back to the water and sewer funds on a pro-rata basis.
Eliminating the budget for Debt Service will lower the overall budget for the utilities and isolate the
portion of debt owed by each utility.It will make the budget presentation less confusing by eliminating
unnecessary transfers. The effects of this resolution are presented in the Proposed 1999 Annual
Operating Budget. This budget resolution is necessary to present the 1998 revised budget in the same
format as the proposed 1999.
Adopted by the City Commission this 14th day of September, 1998.
4147.444-4.4.. .
Suzanne Shaugh I
Mayor/Presidin_ icer
Approved as to form and correctness:
Ian C.J sen, Esquire
City Attorney
ATTEST:
Mau en King,CM
City Clerk