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To: MILLER Twylla J; SMITH Tammy D <br />Subject: Fund 343 - Do we really need an SB#2 item? <br /> <br />One more note on Fund 343 … partly to make sure I understand and partly to ask a question about whether we need to <br />have an SB#2 item. <br /> <br />The goal for FY14 is to draw down all remaining bond funds. This is important because our line of credit expires on June <br />1 and we don’t want to pay to renew it for another period of time. <br /> <br />We’ve drawn down $29,070,000 in prior fiscal years, with $6,830,000 to draw in FY14 to ensure that we’ve drawn all <br />funds. So far this fiscal year, we’ve drawn down $6,050,000, with $780,000 remaining to draw to max out on the <br />authorization. We will draw down (and repay in Fund 211) that amount prior to the expiration of the line of credit on <br />June 1. <br /> <br />PW is also trying to spend all of the dollars this fiscal year. As of SB#1, there was $8,503,256 budgeted in capital projects <br />(6xxxx) and $10,000 budgeted in debt service (8xxxx). We anticipate spending less in debt service, but we don’t know <br />exactly how much less. And we will need to spend more in capital projects in order to max out all of the bond dollars <br />that are remaining, which will in part depend on how much of the bond issuance costs remain unspent, and in part <br />depends on how much piddly interest earnings are posted after the fiscal year end closes. There is also some “EWEB <br />valve billing” revenue that has not yet been appropriated. <br /> <br />I am thinking that we should not “clean up” these last few dollars on SB#2 in the current fiscal year. Because the <br />reporting fund is large and includes a number of other budget authorizations that will not be 100% spent this fiscal year, <br />there is no chance of a legal budget over-expenditure even if all of the estimated dollars (EWEB valve billing included) <br />are spent in Fund 343 as shown in the fund schedule. There is still some activity left to occur in this fund and we don’t <br />know EXACTLY what it will be, so we will need to true-up on SB#1 in FY15 regardless. <br /> <br />My thought is no SB#2 item. Any heartburn about that? I don’t think we need to change the fund schedule because it is <br />an estimate. <br /> <br />Sue <br /> <br />2 <br />