Item:
Title
Approve Budget Ordinance Amendment No. 19BCC000022 Reducing the General Fund Budget for the Payment of Three Fire Trucks Ordered in Fiscal Year (FY) 2018 Because These Trucks are now Being paid for in the LOBs Capital Project Fund (Fund #4004110000) in FY2019 with Debt Issuance Proceeds
Body
Date of BOCC Meeting: December 20, 2018
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment No. 19BCC000022 reducing the General Fund FY2019 budget for the payment of three fire trucks ordered in FY2018 because these trucks are now being paid for in the LOBs Capital Project Fund (Fund #4004110000) in FY2019 with debt issuance proceeds in an amount not to exceed $1.5M.
The Board approved the contract to purchase these three fire trucks in a regular session Board meeting on October 9, 2017 (Agenda Item #17-0387). Originally, the three fire trucks were to be purchased in the General Fund with funding sources to be a combination of a transfer of funds from the Durham County Fire and Rescue (DCF&R) Service District Fund in the amount of $398,873 and the issuance of installment purchase proceeds for the General Fund in the amount of $1,023,830 for a total purchase price of $1,422,703 with these three fire trucks being the collateral for the issuance. As such, the encumbrance (e.g. purchase order) when the three trucks were ordered was accounted for in the General Fund. The trucks were not received in FY2018. As a result, the encumbrance rolled forward to FY2019 in the General Fund in the amount of $1,422,703 (including the roll forward budget) for payment of these trucks once received. At the time of the order, there was no executed agreement between the County and the City of Durham to provide the services for the DCF&R District. Included in the executed agreement with the City which was effective July 1, 2018 is the transfer of these trucks to the City once received and paid for by the County. Because the Count...
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