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Table 6. General Fund Reserves3 General Fund Initial Year-End Ending Fund Balance Balances at Recommended Fund Reserve Designations 6/30/2020 Adjustments Balance General Fund Reserve $28,589,155 $2,000,000 $30,589,155 Enterprise Funds Water Operations and Maintenance Fund —As shown in Table 7 on the following page, recommended changes to the Water Operations and Maintenance Fund include a net increase of $5,783 in expenditures and an increase of $65,000 in revenues. The increased revenues is a reimbursement from the Sewer Operations and Maintenance Fund for the Water Operations and Maintenance Fund covering all of the utility billing bank fees. The increase in expenditures is the result of the following increased expenses: generator rental expenses from the power shut offs in the fall ($110,000), electricity expenses ($60,000), equipment purchases ($127,650), contract services ($53,000), miscellaneous services charges ($65,000) and net miscellaneous expenses ($26,500). These increases are off-set by attrition savings ($260,995), reduced budget for professional services contracts ($48,000), and reduced contingency ($127,372). In addition, the original budget included funding in the Water and Sewer Operations and Maintenance funds contingencies for the City Manager to add three positions4 during the fiscal year if he determined the need for such positions was warranted. The Operations Services Department (OSD) recently completed a comprehensive review of the types of positions required to better manage and maintain the City's water and sewer utility system. Based on that review, staff recommends exchanging the three positons identified to be funded by the contingency with two other positions: Utilities Planning Manager and Utilities Maintenance Supervisor as well as reclassifying a few other existing positions to better meet the department's needs. The City Manager authorized creating the two positions of which the Utilities Planning Manager is included in the midyear budget and the other will be included in the FY 2020/21 midterm budget. The result of these adjustments is an increase of the net income of $59,217 and an estimated ending fund balance of $12.8 million which equals 46 percent of the total operating expenses. The City's policy requires reserves equal to a minimum of 30 percent, a maximum of 40 percent and a target of 35 percent. 3 FY 2019/20 Actual General Fund available fund balance is $29,789,155 which includes $1.2 million that City Council ear marked for LPFD Workers Compensation reserves pending the City of Livermore's allocation of$1.2 million to LPFD Workers Compensation reserves. Subtracting that$1.2 million equals $28,589,155. 4 The three positions include one Instrument Technician and two Utility Operators. Page 5 of 8