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As described in Table 4 above, there are no proposed adjustments to Operating
<br /> Transfers in the Midyear Budget6.
<br /> General Fund Reserves and Fund Balance — There are no recommended
<br /> adjustments to General Fund Reserves. City fiscal policy requires a minimum reserve
<br /> equal to 20% of operating expenses. At the close of FY 2017/18, the City Council
<br /> approved allocating approximately $2 million to General Fund reserves that brought the
<br /> operating reserve equal to 25 percent of actual FY 2017/18 operating expenses and
<br /> 23.3 percent of FY 2018/19 Midyear budget operating expenses.
<br /> Table 5. General Fund Reserves'
<br /> General Fund Audited Midyear
<br /> Available Fund Balance at Recommneded Ending Fund
<br /> Balance 7/01/2018 Adjustments Balance
<br /> General Fund Reserve $26,410,496 $0 $26,410,496
<br /> Enterprise Funds
<br /> Water Operations and Maintenance Fund —As shown in Table 6, recommended
<br /> changes to the Water Operations and Maintenance Fund include a net decrease of
<br /> $261,437 in expenditures and an increase of $906,300 in revenues. Of the increased
<br /> revenues, $790,300 is related to (1) correcting a problem with the water meters that had
<br /> not accurately measured recycled water usage and therefore had not accurately billed
<br /> for recycled water, (2) increased number of recycled water connections than
<br /> anticipated, and (3) greater demand for recycled water. The remaining $116,000 is
<br /> related to increased investment earnings associated with rising interest rates. The
<br /> decrease in expenditures is a combination of attrition savings of$427,437 which is off-
<br /> set by debt service payment of $95,000 that had not been budgeted and an increase of
<br /> $71,000 for recycled water purchases. The result of these adjustments is an increase of
<br /> the net income of $1.2 million and an estimated ending fund balance of $14.3 million.
<br /> Table 6. Water Operations and Maintenance Fund Overview
<br /> FY 2017/18 FY 2018/19
<br /> Water/Recycled Water(O&M) Actual Adjusted Budget Adjustments Mid-Year Budget
<br /> Beginning Balance, July 1 $12,346,487 $11,596,506 $11,596,506
<br /> Revenues 28,399,721 28,730,441 $906,300 29,636,741
<br /> Net Transfers (5,166,386) (1,432,000) - (1,432,000)
<br /> Expenses
<br /> Zone 7 Purchased Water 14,590,711 16,000,000 - 16,000,000
<br /> All other expenses 9,392,604 9,736,165 (261,437) 9,474,728
<br /> Total Expenses 23,983,315 25,736,165 (261,437) 25,474,728
<br /> Net Income ($749,981) $1,562,276 $1,167,737 $2,730,013
<br /> Ending Balance, June 30 $11,596,506 $13,158,782 $14,326,519
<br /> 6 As part of the FY 2017/18 year-end budget review, City Council approved allocating $1,274,942 of the
<br /> year-end surplus to CIPR and $1 million to Downtown Beautification Projects. Those amounts are
<br /> included in Table 4.
<br /> FY 2017/18 Actual General Fund available fund balance equals $27,610,496 which includes $1.2 million
<br /> that City Council ear marked for LPFD Workers Compensation reserves pending the City of Livermore's
<br /> allocation of$1.2 million to LPFD Workers Compensation reserves. Subtracting that$1.2 million equals
<br /> $26,410,496.
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