SUBJECT
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Amendment to the Fiscal Year 2022-2023 Utilities Community Investment Program (CIP) Budget and transfer from Utilities reserves. One time transfer $3,161,074.
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DESCRIPTION
The CIP budget is a multi-year budget that consists of many projects for which the total projected costs are estimated at project conception; however, the timeline and speed of each project is difficult to predict. Additionally, as projects progress through preliminary and final design, budgets are subject to revision based on design changes and the development of final cost estimates. Project prioritization is also continually evaluated and projects are re-prioritized as necessary based on operational, regulatory, or planning considerations.
Most of the adjustments on Schedule A relate to allocating funding within a project, and the total project budget will not change. The adjustments are necessary because Polk County Utilities (PCU) needs to allocate as much expenditure as possible to the Utilities 2020 Bond Fund. This will allow PCU to expend those monies prior to spending money from other Utility funds, thereby avoiding the possibility of being assessed arbitrage penalties.
This amendment allocates budget for projects proceeding ahead of schedule or with alternate Utility funding sources. Additionally, this amendment reallocates funding to projects that have been identified to maintain water system reliability and/or to improve operational efficiency. The project budgets represented in Exhibit A indicate budget changes by fund.
RECOMMENDATION
Approve an Amendment to the Fiscal Year 2022-2023 Utilities Community Investment Program Budget to adjust for unanticipated expenditures by fund and transfers from reserves totaling $3,161,074.
FISCAL IMPACT
Funds are available within the Utilities reserves to adjust the funding sources of these projects. This transfer does not increase the overall five-year CIP project totals. The amendment allocates budget for unbudgeted Utility fund budget sources.
CONTACT INFORMATION
Jeremy Mattingly (863) 298-4147
Charles P. Richards, CPA (863) 298-4135