RES 03081 - Laserfiche WebLink

projected to be $1.2 million, increasing the July 1, 2003 projected beginning fund balance to $7.2 million by year-end June 30, 2004. However, about $750,000 of the fund balance represents required reserves for the 1994 Series A Bonds, and is not available for cash flow or comingency purposes. About $3 million of the fund balance is needed for cash flow, with payments lagging consumption by about two months; and about $2 million is recommended to maintain a 10% contingency. As was memioned previously, water rates are currently under review, and the outcome is not yet known. Among other things, City replacement funding is still being studied, and if there is any excess in the Water Operating reserves, staff may be recommending that they be transferred to the Replacement Fund to lower potential rate increases. Therefore, the revenue increases for water reflected above assume that there will be increased consumption and possibly small water rate adjustments. Projected 2004-05 revenues are $18.4 million, and assume only minimal annual rate increases are necessary, primarily to cover increased Zone 7 costs. Net transfers-out are projected to be $2.5 million. Transfers-out include $1.85 million for replacement funding, $100,000 for Polybutylene service repairs, and $568,000 for the 1994 Series A & B Bonds. Fiscal Year 2004-05 expenditure requests total $14.5 million, including $9.5 million as payment to Zone 7 for purchased water. Thus net income is projected to be $1.4, increasing the July 1, 2004 projected beginning fund balance from $7.2 million to $8.66 million by year-end June 30, 2005, including about $750,000 in required debt service reserves. 2. Sewer Fund Sewer user charges contain two components. The City of Pleasanton charges users for sewage collection, and the Dublin San Ramon Services District (DSRSD) charges Pleasanton users to provide sewage treatment and treated wastewater export, through its participation in the Livermore-Amador Valley Water Management Agency (LAVWMA). A rate study is currently underway by DSRSD and the City. Replacement transfers from the Sewer Operations & Maintenance Fund are made to the Sewer Replacement Fund, where dollars are accumulated and used for capital replacement. The amount of the replacement transfer is based on periodic replacement studies that look at projected future costs over a thirty to fifty year period, similar to the City's Replacement Plan for equipment, vehicles, parks, etc. Projected 2003-04 revenues are $11.8 million. Net transfers-out are projected to be $1.4 million. Transfers-out include $1.1 for replacement funding, $179,000 for the Crosstown Interceptor lease-purchase payments, and $152,000 for 1994 Series A & B Bond payments. Fiscal Year 2003-04 expenditure requests total $10.0 million, including $7.9 million as payment to DSRSD for its services. Thus, net income is projected to be $362,000, increasing the July 1, 2003 projected beginning fund balance only slightly to $3.9 million by year-end June 30, 2004. However, about $643,000 of this fund balance represents debt service reserves, and cannot be used for cash flow or contingency. About $2 million of the fund balance is needed for cash flow, with payments lagging consumption by about two months; and about $1 million is recommended to maintain a 10% contingency. xxi