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as a result of staffs recommended allocation of the excess funds at year-end ($879,049) to reserves. As indicated at the time the City paid off the golf course debt using reserves (May 2013), the City would continue to replenish the reserves to a recommended level of $20 million. The further recommended allocation of these funds is due to maintaining the Reserve for Economic Uncertainties at 10% of revenues in the General Fund. Table 5. General Fund — Fund Balance Reserve Designations Year-End Recommended General Fund-Fund Balance Amended Budget Ending Fund Reserve Designations Budget Adjustments Balance 10% Reserve for Economic Uncertainties $9,128,000 $101,188 $9,229,188 Unassigned Fund Balance 3,034,533 777,861 3,812,394 Total $12,162,533 $879,049 $13,041,582 ENTERPRISE FUNDS The City currently has seven Enterprise Funds as follows: • Water O&M Fund • Sewer O&M Fund • Callippe Preserve Golf Course Fund • Storm Drain Fund • Para Transit Fund • Cemetery Fund • Electrical Vehicle Charging Stations Fund Only the Operations & Maintenance (O&M) and Debt Service, if any, portions of these enterprises are reflected in the Operating Budget. Capital improvements and replacements for the Water, Sewer and Storm Drain funds are accounted for in the Capital Improvement Program (CIP). The financial results of the CIP are being presented to the Council in a separate report in December 2013. WATER AND SEWER OPERATING FUNDS Water Operations and Maintenance (O&M) Fund The Water Operating Fund ended 2012/13FY with a positive operating balance of $406,632 as shown in Table 6. Staff had projected an operating deficit at Midyear of $274,878; therefore, the variance in operations was $681,510. The majority of this variance is due to water sales exceeding staffs projections by $747,273 or 3.6% higher than projected. As a result of this, the ending fund balance has increased to approximately $6.4 million. The adopted water rate increase effective September 1, 2010 was designed to maintain the Water Operating Fund in a balanced operating position with a minimum fund balance of $6.5 million. Staff is pleased to see that operations are continuing to improve and that the minimum fund balance has been almost achieved after only three years of adopting the new rates and rate structure. Staff will continue to monitor the revenues and expenditures of the Water operations. The next water rate review will need to be adopted by the City Council no later than Page 6 of 11