Title
General Fund Transfer Discussion (B)
This item involves discussion regarding the level of the transfer from Gainesville Regional Utilities to the General Fund for fiscal year 2015 and beyond.
*ESTIMATED STAFF PRESENTATION 15 MINUTES*
Explanation
Between FY87 and FY10 the transfer from GRU to the General Fund was formula based. Over this period the formula was modified and expanded to cover all five GRU systems. In 2010 the formulaic methodology was suspended and GRU and General Government entered into a four year agreement which called for fixed dollar transfers per year for each of the four fiscal years. FY14 represents the final year of this four year agreement.
In January of this year GRU and General Government staff initiated discussions regarding the development of the transfer for FY15 and beyond. During the FY14 budget hearings this summer, the City Commission directed that staff schedule a special City Commission meeting to provide the Commission the opportunity to provide direction on the methodology and the level of the transfer moving forward.
Fiscal Note
The transfer is an important component of both GRU and General Fund budgets, constituting approximately 10% of GRU revenues and more than a third of General Fund revenues in FY14.
Recommendation
The City Commission: 1) hear a brief presentation from staff on the history of the General Fund Transfer; and 2) provide direction to staff regarding the methodology and the level of the transfer for FY15 and beyond.