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HomeMy WebLinkAbout07-12-2021 BAC AgendaMn SEBASTIAN HOME OF PELICAN ISLAND SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE AGENDA 6:00 P.M. MONDAY-JULY 12, 2021 CITY HALL 1225 MAIN STREET a. Call to Order b. Pledge of Allegiance c. Roll Call d. Approval of Minutes: Meeting of May 17, 2021 e. Presentation of Draft Budget by Ken Killgore, Administrative Services Director/CFO 1. Power Point Presentation 2. Questions or Comments by Members 3. Vote by Members to Set Proposed Millage for TRIM Purposes f. Public Comments g. Next Meeting Date — Monday, July 19, 2021 to Review 3rd Quarter Budget Report h. Adjourn Agenda Attachments: • Minutes for Meeting of May 17, 2021 • Power Point Presentation of Draft Budget • Draft Budget and Capital Improvement Plan — Available at the following link: httos://weblink.citvofsebastian.ora/W ebLink/DocView.asox?id=242177&dbid=0&repo=Citv&cr-1 ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F.S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODAT/ON FOR THIS MEETING SHOULD CONTACT THE CITY's ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS /N ADVANCE OF THIS MEETING. ZOOM INFORMATION Please click the link below to join the webinar: https:/IusO2web.zoom.us/j/89368888697 Or One tap mobile : US:+13126266799„89368888697# or+19294362866„89368888697# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 312 626 6799 or +1 929 436 2866 or +1 301 715 8592 or +1 346 248 7799 or +1 669 900 6833 or +1 253 215 8782 Webinar ID: 893 6888 8697 International numbers available: httos:l/usO2web.zoom.us/u/kcLElU1BCF DRAFT IP CITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING MAY 17, 2021 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. Pledge of Allegiance was recited by all. Roll Call Present: Mr. Napier Mr. Hoffman Mr. Hall Mr. Herlihy Absent: Mr. Wilson -- Excused Mr. Sullivan (a) -- Unexcused Ms. Cerda (at -large member) Mr. McGinn (at -large member) Mr. Newhart (a) Also Present: Ken Killgore, Administrative Services Director/CFO Cindy Watson, HR Manager Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer (via Zoom) Approval of Minutes: Meeting of February 8, 2021 Mr. Napier asked if all Committee members had reviewed the Minutes of February 8, 2021. All indicated they had. Mr. Killgore indicated that there was an error on the first page where it lists under the Roll Call that Mr. Weragoda was present via Zoom. Mr. Weragoda had been a previous alternate but was not a member at the time of that meeting, and he should not have been listed on the Roll Call. His name should be struck from those Minutes. Mr. Napier called for a motion. A motion to accept the Minutes as presented with the change as noted above was made by Ms. Cerda, seconded by Mr. Herlihy, and approved unanimously via voice vote. V. Review of Second Quarterly Report -- FY 2020-2021 Mr. Killgore reviewed the quarterly reports as presented and stated this agenda item will be presented to City Council at their meeting of May 26, 2021. Included is Exhibit A, Resolution No. R-21-07, which shows the budget adjustments that have been made during the quarter, some of which were approved by City Council during the first quarter. The only adjustments that are being submitted at this meeting for City Council approval are several disbursements out of the General Fund R & R account. He explained for the new Committee members that City Council years ago authorized setting aside an amount CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF MAY 17, 2021 MEETING of $275,000.00 for unexpected repairs or replacements that happened during the year due to equipment failure, etc., things that were not budgeted during the year. The City Manager has been authorized to proceed with those, subject to normal purchasing policies. Then those figures are reported to City Council with this quarterly report. There were some significant transfers during the quarter that were approved by the Council. One was to adjust for the Public Works Compound. The amount that had been budgeted needed to be increased for the value of the guaranteed maximum price contract that City Council approved. There was also an adjustment for the hangar project that is a grant program underway at the airport. Mr. Killgore pointed out an error on the General Fund page where in the top righthand corner it is stated "...503% of the budgeted amounts..." That figure should be 50.3%. He called everyone's attention to the bottom of that same page where the General Fund Balance Forecast is set forth. He reported that after March 31 St City Council was presented with a large expenditure out of the General Fund Reserves account in the amount of $358,786.00. There was no other source of funding for that project, which was the Yacht Club seawall repair that was approved. So the projected expenditures have been adjusted to anticipate that amount will be in the City's total expenses by the end of the year. If so, that would bring the reserves down to $4,773,221.00, which is close to the $5 million target. The figure for revenues in the General Fund has been just slightly above the amount budgeted, or less than 1 %. So that depends to a large degree on how much is spent by the General Fund departments. Generally, they spend approximately 97% of budgets overall. So some of that may be made up that way, but he would not be surprised if by year end the City has less than the $5 million target. He further reviewed the individual fund reports as well as fund summaries and the individual department reports. The Capital Project Status Report as of March 31, 2021 was discussed. He stated that he noted that there were some minor issues in the golf, airport, and building funds in the budget amount column. These are not significant and will not change his actual forecast that much. He estimated that all the funds will probably be better than were projected. In the Capital Project Status Report as of March 31, 2021, there are just a few large projects -- the construction of Hangar D and the relocation of the Public Works Compound. Those are the majority of the total projects and amounts. The Investment Report and Interfund Loans Report were reviewed, and total cash and investments in the narrative section should read $19,599,000.00 which is very healthy for this time of the year. He reviewed how low the percentage rates are at this time. The balance of the report are summaries provided by each department of their activities during the quarter. Mr. Killgore then called for questions/comments by the Committee members. Mr. Newhart asked regarding the entry for Florida Trust where it says the percentage reads 3.3% if that figure should be .33%. Mr. Killgore explained that for the first quarter of the year the investments really did well; however, for this quarter they really fell. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF MAY 17, 2021 MEETING Mr. Hall asked what the projected fund balance is for the end of the year. Mr. Killgore explained that for the General Fund, he is estimating between $4.7 million to $4.8 million, somewhere in that range. Mr. Hall stated that his understanding is that it is projected that a budget may need to be presented that will make up for the difference in the coming year. Mr. Killgore stated that we will not know until the end of the fiscal year what that shortfall actually is. He thinks that during the presentation that would be on the table. In looking at the revenues and expenditures through the second quarter, he stated that it appears that this Committee's recommendation for this current budget for a higher millage rate is pretty much right on target, and it did allow for the contingency for the $358,000.00 for the Yacht Club's seawall. However, it still has us bellow the targeted $5 million for reserves based on staffs projection. Hopefully, things will turn around and the City will finish out the year without having to again take that into consideration. Mr. Napier said he noticed in looking at the summaries, the second quarter in the General Fund is the best of the three years shown. We have had a better-than-expected General Fund, and in the Special Revenue Funds, they are coming in better than what was budgeted. He also opined that the City did not need to do the extra millage rate that was done last year based on the way these numbers are coming in. Mr. Killgore stated that the reason why the budget for revenues looks better is due to the increase in state revenue sharing. Mr. Herlihy commented that it is impressive to him that the City's budget for the first two quarters were right on target, and he commended Mr. Killgore and his staff regarding this. He also asked whatever happened to the extra check that was received from FEMA. Mr. Killgore stated it is still on the books. Similar to the Building Department situation, it was set up in the General Fund on the balance sheet as basically a refund payable. Mr. Hoffman asked if Mr. Killgore has heard anything more on the hurricane reimbursement. Mr. Killgore stated he has pretty much given up on it for now, but sooner or later there has to be an accounting. It will soon be five years from Hurricane Matthew. If the City were to receive those funds, it would bring the reserve fund up to close to the $5 million target. Mr. Hoffman also asked regarding the General Fund Summary where it lists Franchise Fees and Utility Taxes are only running about 38%. Mr. Napier stated that those figures are approximately 60 days behind in their reporting. Regarding the R & R Account -- the Hardee Park Restroom Lock in the amount of $1,200.00, he suggested that this figure is excessive. Mr. Killgore does not know how this amount was arrived at. Regarding park irrigation repairs, he asked why it is entered as a positive $2,730.00 instead of a negative number. Mr. Killgore stated that is an error. It should be a negative number, and he will correct that. As to the Stormwater Fund Summary, Mr. Hoffman stated it looks like we have done very well collecting the ad valorem taxes so far at 93%. Why would the stormwater fees only be 89%? He asked if some people choose not to pay the stormwater fee on their tax bill. Mr. Killgore explained that some people may be having a large part of their value reduced. Mr. Napier stated that residents pay a flat fee, DRAFT CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF MAY 17, 2021 MEETING but commercial is different. In the Building Fund entry, Mr. Hoffman asked if the state has actually passed the law or enactment that we have to repay certain fees. Mr. Killgore stated that was actually passed before the end of the last fiscal year, sometime in July. He further explained that the City recognizes that it will have to pay it to someone. So he intends to refund it as soon as he gets guidance on how it is supposed to be calculated. Ms. Cerda wanted to echo Mr. Herlihy's comments that the report looks great. She does also want to vouch for the Hardee Park lock. It was pretty badly damaged. She does not know for sure, but extra repairs may have been needed. VI. Reports from Chief Financial Officer A. Received GFOA Budget Award on Budget Document -- 17th Consecutive Year Mr. Killgore reported that for the 17th consecutive year the City got the Budget Award on this year's document. He reviewed that last year there were a few comments from the reviewers, but apparently the City satisfied those issues. He stated that the overall grading was a bit better this year. B. Preliminary Taxable Values Due Before June 1 st (Final Before July 1 st). C. Budget Presentation/Proposed Millage on July 28th (Final before July 1 st). Mr. Killgore reminded everyone as far as the City's budget cycle and the property tax estimate cycle, on June 16t we should get a preliminary estimate of our tax roll number. That will give us a general idea of where we need to be. Departments were due to turn in their budget requests last week, and he has almost all of those. Staff are updating their worksheets so that they can get to the point of the final presentations. He also reviewed that there was some news that we are due $3.3 million from the American Recovery Act. May 10th was the due date to give us the guidelines on how to apply for the money. He stated that the City will be getting the money directly from the US Treasury in two installments. One is supposed to come this month and the other a year from now. He stated he made the application on the first day that the materials were available. He has not been notified of any mistakes in the application, so he is waiting for the check to come in the not -too -distant future. Mr. Hoffman asked if the majority of those funds is for new expenditures or recovery of monies already spent. Mr. Killgore stated that the rules are supposed to encourage us to spend the monies on one-time things, mostly infrastructure, and they specifically stressed it is for water/sewer systems, etc. or something COVID-related They also mentioned stormwater, and we have some stormwater projects on the table that we are hoping will be eligible for grant funds. He expects to be alerted to the interim rules that have been DRAFT CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MINUTES OF MAY 17, 2021 MEETING decided upon not too long after this month. These funds would not go into the General Fund budget; they will be entered into a special account. VII. General Discussion by Members Mr. Hoffman asked how the City's workforce is, given all the news about labor shortages. Mr. Killgore stated that in his department, the Procurement Manager/Contract Manager resigned with short notice. He believes they have had three applicants for this position, one of whom has an interview scheduled. The City Engineer position is open, and staff just started advertising for that about a week and a half ago. There is one interview scheduled for that. Wages compared to the market are something that staff are looking at as part of our process of union negotiations this year and what can be done. Ms. Watson stated that it is very difficult right now finding help, and that is true not only for the City. Mr. Herlihy asked that Mr. Killgore email the figures from the Property Appraiser when they are available. Mr. Killgore stated he would do that, and he explained what the preliminary report would cover. The certified report comes July 111, and he will email both of these reports to the Committee members. Mr. Hall asked if he could have a copy of the proposed budget that is due June 23"d. He will pick it up at the City Hall lobby. Mr. Killgore stated he would provide that. VIII. Public Comments Seeing no one in Chambers who wished to speak and hearing no one on Zoom who wished to speak, Mr. Napier moved to the next item on the agenda. IX. Next Meeting Date — July 12. 2021 X. Adiourn There being no further business, Mr. Napier adjourned the meeting at 6:49 p.m. By: Chairman Larry Napier jg Date: 2022 Budget and Capital Program Presentation on Draft 2022 Budget Budget Review Advisory Committee Meeting Monday July 12, 2021 Prepared By: Ken Killgore Administrative Services Director/CFO 1 2022 Budget and Capital Program •Summary of General Fund Budget. o Enterprise and Other Funds. o Capital Improvement Program o Property Values and Millage o Other Considerations. z General Fund Personnel Additions/Deletions o Three Full-time Additions MIS — Help Desk Tech./Admin. Asst. Police — Crime Analyst Leisure Services — Events Coord./MWIII o No Full-time Deletions o No Part-time Changes k, Draft FY2022 General Fund Budget Versus Amended FY2021 Budget $ 513,651 Personnel Costs 871160 Operating Expenditures 5,669 Capital Spending (379,462) Transfers to Other Funds $ 227,018 Increase in Budget —1.6% $108,401 Less Revenue vs. Expenditures. Personnel Up $513,651 o 3% for Wages/Benefits Contingency. o Health Insurance Premiums Up 6.7%. o 3 Additional Full -Time Employees. Operating Increased by $87,160 and Interfund Transfers Down $379,,462 o $72,000 Projected Election Costs is Most of the Increase in Operating Expenditure Accounts. o $358,962 Transfers This Year for Yacht Club Seawall Repairs is Most of the Increase in the Interfund Transfers Out. 0 Revenue Assumptions o Property Tax at 3.0043 Rolled -Back Rate — Adds $137,711 or 3.1% Due to Tax Roll Additions. o Franchise Fees and Utility Taxes Looking to be $95,786 or 2.1% Above This Year's Budget. o State Revenues - $638,615 Above This Year's Budget, Due to Higher State Revenue Sharing. o 33.8% of Property Tax, 10.4% of Franchise Fees, 23.9% of Utility Taxes and 21.8% of State Revenues Equals 89.9% of Total Revenues. II Enterprise Funds: Golf Course o $43,235 or 2.9% More Revenue than 2021. o Same $30,000 for Restaurant Lease. o Same $106,135 for Airport Rent. o Same $38,366 Principal and Interest on $700,000 Building Fund Loan. o Same $35,000 toward General Fund Loans. o Expecting Additional Year on Golf Carts. o Forecasting Long-term Reduction in Deficit. Enterprise Funds: Airport o Revenue from Property Rentals is Covering Operational Cost and Scheduled Loan Payments to Discretionary Sales Taxes. o DST Funds for Grant Matching: Square Hangars in 2022; Runway 05/23 in 2024; Shade Hangars, Golf Apron Utilities, Taxiway Golf and Airport Road West in 2025. o Airport Funds for Grant Matching: Security Cameras, Runway 10-28 Markings, Taxiway Alpha Aprons and Taxiway Golf Apron Design in 2023; Taxiway Alpha Aprons in 2025; and Aircraft Wash Rack in 2026. 661 Enterprise Funds: Building o Decrease from Projected 2021 Revenues. o Continuing Open Building Inspector Slot. o Covering Personnel and Operational Cost. o Project Modifying Front Counter (Safety). o Expecting $38,368 Principal and Interest Payment on Golf Course Loan. 10 Special Revenue and Other Funds: Special Revenue Funds o Local Option Gas Tax: Collections 4.7% Higher than Same Months to June of Prior Year. $100,000 Allocated for Sidewalks. $4,870 Allocated for Traffic Analyzers. Holding Off on Road Improvements, Pending Update to Road Assessment Study. $242,801 for Payment on Notes. $358,000 Outstanding 9/30/2021. Matures 12/01/22. 11 Special Revenue and Other Funds: Special Revenue Funds o Discretionary Sales Tax: Collections 13.1% Higher than Same Months to May of Prior Year. Allocations to MIS and Police Vehicles. Funding Balance of GMP Contract on Construction of Public Works Compound. Stormwater Slip Lining/Pipe Replacements Matching Funds for Canal Restoration Grant. Construction of Two Square Hangars. May Defer Projects If Collections Not Adequate. 12 Special Revenue and Other Funds: Special Revenue Funds o Riverfront CRA Fund: Working Waterfront Deck, Landscaping and Historical Signage. Special Events, Sign Grants, CRA Manager. No New Sewer Connection Grant Funds. About % of Landscaping Contract. $225,000 To Harrison Street Park Plaza. 13 Special Revenue and Other Funds: Special Revenue Funds o Recreation Impact Fee Fund: Fully Allocating the Available Collections. Unspecified Improvements ($5K per Zone). Additional Park Signage. Barber Street Backstops. Playground Improvements ($50,000 to Easy Street and $50,000 to Filbert Park). 14 Special Revenue and Other Funds: Special Revenue Funds o Stormwater Utility Fund: Adding Two Maintenance Worker I Positions. Fees Cover Operational Cost and Some Equipment Replacements. $115,000 Roadway Swales/Culverts Work and $100,000 to Match Grant for Work on Concha Dam in 2022. Future Funds to Roadway Swales/Culverts; Tulip and Bayfront Road Crossings; and to Stabilizing Ocean Cove Slopes. 15 Special Revenue and Other Funds: Special Revenue Funds o Law Enforcement Forfeiture Fund: Used Only for Unbudgeted Items. *Specific Items Need City Council Approval. Current Balance is $32,818. o Parking In Lieu Of Fund: Expecting $70,287 Year End 2021 Balance. $9,600 on 807 Indian River Drive Adds $1,140/Year for 10 Years. 16 Special Revenue and Other Funds: Special Revenue/Trust Funds Cemetery Trust Fund: of Sales Expendable on Expansions or Cost Incidental to Adding Future Sites. oFunding Columbarium Niches in 2025. of Sales on Operations and Maintenance. oAllocation for Signage, Fencing and Grounds Improvements. o$90K Transfer to General Fund in 2022. o$605,656 Expected 2021 Balance for Perpetual Maintenance. 17 Special Revenue and Other Funds: Debt Service Funds o Stormwater Utility Debt Service: Includes Required Bank Note Payments Which are Paid by Discretionary Sales Tax. $395,000 Outstanding as of 9/30/21. Final Maturity on 5/01/22. Only Need to Fund $233,403 in FY2022. w Capital Improvement Program o $54.2 Million Over 6 Years. $20.2 Million Next Fiscal Year. $5.7 Million This Year. o Largest Items for Next Fiscal Year: $5,334,024 Public Works Compound. $11,500,000 Canal Restoration. • $400,000 Concha Dam Wall. $720,000 Construction of Square Hangars. o $11,876,000 to be Funded by Grants. 19 Property Values and Millage: Certified Taxable Values o Rolled -Back Millage is 3.0043 and is Used for the Draft Budget. o Total Certified Taxable Property Values Increased $99,687,448 or 6.71% Above 2021. Additions Account for $32,716,715 or 2.20% of the Increase. Reassessments Account for $66,970,733 or 4.51 % of the Increase. o Last Year's Millage of 3.1514 Would Increase Revenues by $226,281 Over the 3.0043 Millage Currently Assumed in 2022 Budget Draft. c Property Values and Millage: Taxable Value Additions Dollar Value of Tax Roll Additions: 2021 32,716.1715 2016 25/763/700 2020 33/685/698 2015 25.44921245 2019 23,3511814 2014 191P91414805 2018 15,998,366 2013 911435,090 2017 35.09511#704 2012 7/462/986 Tax Roll Additions Yield $95,342 of Added Revenue for 2022 at the 3.0043 Millage. 21 Property Values and Millage: 3.1514 Versus 3.0043 ASSESSED VALUES TAXABLE VALUES TAXES CHANGE (3.4% - 4.9%) .......................................................................... ASSESSED VALUES TAXABLE VALUES TAXES CHANGE (3.3% - 4.8%) .......................................................................... ASSESSED VALUES TAXABLE VALUES TAXES CHANGE (3.6% - 4.9%) 1. 04% On Homestead: 3.1514 3.0043 $200,000 $202,080 $150,000 $152,080 $473 $457 ($16) $250,000 $252,600 $200,000 $202,600 $630 $609 ($21) ........................................................................ $300,000 $303,120 $250,000 $253,120 $788 $760 ($28) 10% On Others: 3.1514 3.0043 $200,000 $220,000 $200,000 $220,000 $630 $661 $31 $250,000 $275,000 $250,000 $275,000 $788 $826 $38 .......................................................... $300,000 $330,000 $300,000 $330,000 $945 $991 $46 22 4.0000 Final Less Than \ Roll -back 3.9000 v 3.8000 3.7000 _ 3.6000 -,I a m 3.5000 - e 3.4000 S 3.3000 8 m 3.2000 e 3.1000 2.7co0 Final Less Than Proposed City of Sebastian Yearly Millage Setting L e A e Final Above s s b Roll -back s _ O 5 14 V e� \ $ a m e Final Same As Proposed 1� Final Less Than jProposed A b _ O v V S S - - a a m m e _ e, 2.5000 1 2007 12008 1 2009 2010 2011 2012 2013 1 2014 2015 2016 2017 2018 1 2019 1 2020 2021 I I n�11�J_ eoc J. 3.' 2i<i 3.3646 3.8038 3.9019 3.731i 1 3.5646 13.7398 3.5446 3.629.. '�.�.`M o .���eln �..... 3.1' � 2 �3m i 2 ov>v� ■ Proposed 13.0519 3.0519 3.3646 3.8038 3.5940 3041 .3 3.7166 1 3.7166 3.8556 3.8556 3.8556 3.8000 3.4000 13.1514 13.1514 ■ Final 3.0519 2.9917 3.3456 3.3456 3.3041 3.3041 13.7166 13.7166 3.8556 3.8556 3.8000 3.4000 3.1514 2.9399 13.1514 Other Considerations o Labor Agreements Not Yet Negotiated. o Must Comply With Referendum Vote for $15/Hour Minimum Wage. o Minimizing Operating Account Increases and Funding Capital Items with Other Funds or Deferring Them to Future Years. Prices Have Spiked. o Recommending Setting Proposed Millage for the Trim Notice at 3.1514. 24 Citv of Sebastian Debt and Oblivations Between Funds Debt Outstanding The following table lists the city's debt obligations and commitments as of September 30, 2021. Each of the two long-term notes include a covenant pledging special revenues. There is no outstanding debt related to the General Fund and the city has no variable rate debt. The Stormwater Bank Note was used to refund a bond issue that initially held an insured rating of AAA. The Paving Improvements Note was used to refund another Bank Note with less desirable terms. The Golf Cart Lease Purchase was used to acquire a new fleet of golf carts. Debt Description Stormwater Utility Revenue Bank Notes 2014 Paving Improvements Promissory Notes 2012 Golf Cart 60 Month Lease Purchase 2017 Initial Principal Initial Principal Remaining Interest Final Bond Rating/ Security Amount 9/30/2021 Rate Maturity Insurer Pledge $5,630,000 $395,000 2% to 4.2% 05/01/22 AAA/MBIA Stonravater Utility Fees $2,296,000 $358,000 1.94% 12/01/22 N/A Local Option Gas Tax $313,152 $50,801 3.49% 07/10/22 N/A Purchased Golf Carts Effects on Current ODerations Although stormwater utility fees are pledged to the Stormwater Utility Revenue Notes, the annual debt service is currently being paid from discretionary sales tax revenues. This is a legitimate use of those revenues and helps toward enabling stormwater utility fees to be applied to operational and current capital improvement needs of the utility without being encumbered by the debt service payments. Local option gas tax revenues are used to pay the debt service on the Paving Improvements Promissory Notes, which is an allowed use of those funds, since the debt pertains to improvements to the City's transportation system. Clearly, with the priority that must be given to those debt service payments, the net revenues available for capital purchases and/or operating expenditures on the transportation system is reduced. Payments on the Lease Purchase of the golf carts effects the net income from operations but also insures a well -maintained fleet that is essential to insuring a pleasing golfing experience for the customers. Fund Making Loans GENERAL FUND: Due from Golf Course Due from Airport Fund Purpose Cash Flow Loan Grant Match Loan DISCRETIONARY SALES TAX: Due from Airport Fund $285,000 Hangar A Due from Airport Fund $267,511 Hangar B BUILDING FUND: Due from Golf Course $700,000 Irrigation Due from Golf Course $559,684 Other Repairs INTERFUND LOANS REPORT 10/01/20 Scheduled Balance at Balance Payments 09/30/2021 Remarks/Terms $500,000 $35,000 $465,000 Pay $35K/Year Starting FY 20/21. $150,000 $150,000 $0 Paying $150K in FY 20/21. $269,245 $7,279 $261,966 5 Years @ 3%, Then 4% for 25 Years. Final in 2038. $259,869 $2,105 $257,764 5 Years @ 3%, Then 4% for 25 Years. Final in 2041. $615,456 $30,547 $584,909 Each 5 Years to T-Bond Minus 1%. Final in 2038. $559,684 None $559,684 Pay When Possible, Maybe After $700,000 is paid.