| | | | | | | | Spotsylvania County
Board of Supervisors Agenda
Executive Summary |
| | | | | | | | Meeting Date:
| August 13, 2019 |
|
| | | | | | | | Title:
| Approval of Budget Adjustment and Appropriation Necessary for the Payoff of Debt for the Transfer of Southpoint Building |
|
| | | | | | | | Type:
| Action, Resolution, Appropriation |
|
| | | | | | | | Agenda Title:
| Approval of Budget Adjustment and Appropriation Necessary for the Payoff of Debt for the Transfer of Southpoint Building |
|
| | | | | | | | Recommendation:
| If the Board approves for the transfer of the Southpoint Building property from the EDA to the County in a separate agenda item scheduled for action on August 13, 2019, staff recommends that the Board approve a budget adjustment and appropriation to fund pay off of the remaining debt originally issued to purchase the building. |
|
| | | | | | | | Non-Staff Name and Title of Presenters:
| Based on the approval of the previous agenda item to transfer the Southpoint Building Property from the EDA to the County, staff recommends that the Board approve a budget adjustment and appropriation to fund the payoff of the remaining debt originally issued to purchase the building. |
|
| | | | | | | | Summary:
| A separate item on the Board’s August 13, 2019 agenda recommends approval of the transfer of the EDA-owned “Southpoint Building” to the County. The transfer, if approved, would necessitate payoff of the remaining balance on the note issued to originally purchase the property. A budget adjustment would be necessary to allocate an appropriate amount of funding to accomplish this payoff.
If the Board were to approve the transfer of the property and the transaction were to close by December 2019, Finance staff expects the total remaining principal and interest due on the note to be no more than $120,000. $61,748 is currently budgeted in the EDO Fund budget for FY 2020 to pay the principal and interest due in FY 2020 in accordance with the original note payment schedule. The attached budget adjustment shifts $58,252 from the General Fund contingency to be added to the amount already budgeted. This would bring the total budget to the anticipated $120,000 full payoff amount. There are also net-$0 adjustments necessary to remove half a year’s worth of lease charges/payments between the General Fund and EDO Fund as the General Fund will no longer lease the building from the EDA for use by the Registrar and Visitors Center once the property is transferred to the County. |
|
| | | | | | | | Committee/Commission Summary:
| Finance Committee |
|
| | | | | | | | Financial Impact:
| Please see the attached budget adjustment which uses $58,252 from the General Fund contingency to add to the $61,748 currently budgeted in the EDO Fund budget for debt service on the bonds originally issued for the building purchase. This brings the total budget to the anticipated $120,000 full payoff amount. |
|
| | | | | | | | Staff Contacts:
| T. Rumora, Director of Economic Development and Tourism
Bonnie Jewell, Deputy Director of Finance for Budget |
|
| | | | | | | | Additional Background/Other Considerations:
| N/A |
|
| | | | | | | | Consequence of Denial/Inaction:
| Adequate funding would not be in place to accomplish payoff of the remaining note debt. |
|
| | | | | | | | Talking Points:
| Based on the approval of the previous agenda item to transfer the Southpoint Building Property from the EDA to the County, staff recommends that the Board approve a budget adjustment and appropriation to fund the payoff of the remaining debt originally issued to purchase the building. |
|
|