Title
Amending the Budget to Accommodate a Request by ROHR, Inc.
Summary
Description of Topic: Resolution 16-1122 approved a $1,500,000 Project Agreement with ROHR, Inc. and a line of credit to be used to make three $500,000 reimbursement installments, the first of which was to be paid on or before 9/30/2016 and was subsequently budgeted in FY2016. ROHR is now requesting the first $500,000 reimbursement to occur after October 3rd, 2016 which is in a new fiscal year. The FY2017 Economic Incentive Fund budget (beginning on page 155 of the City's adopted FY17 Budget document) needs to be amending accordingly to increase the loan funding revenue and the expense of the reimbursement which has a zero net effect to the bottom line. (who, what, where, when, why and how much)
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.
__x__ Not budgeted requiring increase to account #_32-5601 & 32-627-8010__ in the amount of $500,000 each, zero net effect to bottom line_.
Capital - Departmental
____ Budgeted under account #______________ for $___________ and described in budget as __________________________________.
Additional amount needed, if any: Increase in budget of $_____________ OR, transfer of $___________ from Account #____________ to Account #_______________
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, Resolution 16-1122 approved a $1,500,000 Project Agreement with ROHR, Inc. (a/k/a UTC), and a bank line of credit to fund the Agreement, payable in three $500,000 reimbursement installments, and
WHEREAS, the first $500,000 loan draw and ROHR reimbursement was budgeted in FY16 and requested and scheduled to be made on or before September 30, 2016, and
WHEREAS, ROHR, Inc. will not have the documentation required for the first reimbursement until after October 3, 2016, and is requesting to delay the first reimbursement until October 3, 2016, causing need to adjust the FY17 budget for the Economic Incentives Fund.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves rescheduling the first $500,000 reimbursement installment to ROHR, Inc. and related line of credit draw until after October 3, 2016.
SECTION 2: Approves amending the Economic Incentive Fund budget by increasing the Loan Proceed account 32-5601 and Economic Development expense account 32-627-8010 both by $500,000.
SECTION 3 This Resolution shall become effective immediately upon its adoption as required by law.