Lake City Report -
July 30, 2010
Utility Revenue Bonds - Budget
Columbia County, FL (Posted July 31, 2010 08:05
am)
by City Manager Wendell Johnson and
staff
From City Manager Wendell Johnson
Utility System Bonds.
The City received exceptionally good news
this week with the issuance of our Utility
System Bonds Credit Rating.
Standard & Poor's has rated the Utility
Bonds AA, with a stable outlook.
Moody's rating is A1 with no outlook. These
ratings exceeded our expectations. The City’s
financial consultant applauded the extraordinary
efforts of the City staff and their finance team
for this achievement and positive feedback was
received on the City and its utility system.
Assured Guaranty offered to insure the
repayment of the bond principal and interest for
a one-time premium that is about $32,000 less
than what we expected. The analyst initially
believed the credit rating would be in the “mid
A” range and said with the higher rating they
may be able to lower their premium.
Fiscal Year 2010/11 Budget
The Staff has completed and distributed the
Council’s working draft budget.
Budget workshops are scheduled for 6:00 p.m.
on August 4th and August 5th in the Council
Chambers.
The Staff has provided a “balanced” budget
for Council consideration. A drawdown from
the “General Fund” reserve is necessary for the
coming year due to substantial reductions in
General Fund revenues, primarily in state shared
revenue.
The Staff will offer the following budget
enhancement initiatives for Council
consideration:
Inventory and
identify City owned property that is surplus to
the needs of and/or under utilized.
Convert such property to private ownership where
possible.
Implement the
vehicle leasing program (5-year cycle) to reduce
annual operating and maintenance costs and to
improve the image of the City’s overall fleet.
Sale of surplus
vehicles and equipment.
Implement
Residential Storm water Utility Fee to fund
Capital Improvement needs Creation of a Storm
water Utility Enterprise Fund will enhance the
Public Works General Fund Budget.
Continue a hiring
freeze other than for public safety and other
key positions as determined by the City Manager.
Consider
“alternative” Health Insurance program for
eligible employees.
The City Staff Report is available in pdf format
here.