HomeMy Public PortalAbout2012_03_13_R029 Establishing a Debt Service ReserveThe Town of
Leesburg,
Virginia
RESOLUTION NO. 2012 -029
PRESENTED March 13, 2012
ADOPTED March 13, 2012
A RESOLUTION: ESTABLISHING A DEBT SERVICE RESERVE AS AN ASSIGNED
FUND BALANCE IN THE GENERAL FUND; TRANSFERRING
$1,400,000 FROM THE REVENUE STABILIZATION RESERVE TO
THE DEBT SERVICE RESERVE; AND TRANSFERRING $2,000,000
FROM THE UNASSIGNED FUND BALANCE TO THE DEBT
SERVICE RESERVE
WHEREAS, the Town Council established a Revenue Stabilization Reserve in FY 2007
because of uncertain real estate values and revenues that support the Town; and
WHEREAS, the current amount in the Revenue Stabilization Reserve is $1,400,000; and
WHEREAS, real estate values and revenues have begun to stabilize lessening the
necessity for the Revenue Stabilization Reserve; and
WHEREAS, annual debt service payments will be more than $5 million from FY 2017
through FY 2023; and
WHEREAS, the total amount of annual debt service payments over $5 million from FY
2017 through FY 2023 is $10,200,596; and
WHEREAS, it is prudent financial management to reserve funds to cover the amount of
annual debt service over $5 million from FY 2017 through FY 2023.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia that
effective June 29, 2012:
SECTION I. A Debt Service Reserve is established as an assigned fund balance in the
General Fund to accumulate funds to defray annual debt service payments over $5 million for the
period FY 2017 through FY 2023,
SECTION II. The Revenue Stabilization Reserve of $1,400,000 is transferred to the Debt
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A RESOLUTION: ESTABLISHING A DEBT SERVICE RESERVE AS AN ASSIGNED
FUND BALANCE IN THE GENERAL FUND; TRANSFERRING
$1,400,000 FROM THE REVENUE STABILIZATION RESERVE TO
THE DEBT SERVICE RESERVE; AND TRANSFERRING $2,000,000
FROM THE UNASSIGNED FUND BALANCE TO THE DEBT
SERVICE RESERVE
Service Reserve.
SECTION III. The sum of $2,000,000 is transferred to the Debt Service Reserve from
the General Fund Unassigned Fund Balance.
PASSED this 13th day of March, 2012.
Kir C. Urnstattd, Mayor
Town of Leesburg
ATTEST:
Clerk of Co it
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