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Sewer Operations and Maintenance (O & M) and Debt Funds. As shown in Table 8,
<br />the Sewer Operating Fund ended FY 2020/21 with an operating fund balance of
<br />approximately $10 million which is $1.1 million more than the amount included in the FY
<br />2020/21 Amended Budget. The recommended fund balance of $10 million equals 71
<br />percent of the Sewer Fund's actual FY 2020/21 operating expenses. The operating
<br />reserve policy adopted by City Council in November 2016 requires reserves equal to
<br />between 30 percent and 40 percent of operating expenses with a target of 35 percent.
<br />Thus, operating reserves exceed the maximum required reserves. As described below,
<br />staff recommends allocating that $1.1 million surplus to a CIP reserve. Doing so will
<br />result in reserves of $8.9 million which equals 63 percent of actual FY 2020/21
<br />operating expenses and 41 percent of FY 2021/22 operating expenses.
<br />Staff recommends that the surplus sewer revenue of $1,090,945 be placed in a CIP
<br />Reserve to fund implementation of projects from the Sewer Management Plan that is
<br />currently underway.
<br />The variance is primarily due to not expending $1.2 million from the Sewer Repair and
<br />Replacement Fund, $115,165 in attrition savings, $28,149 in net other savings, and
<br />actual revenues greater than the Midyear budget by $2,398 that is off -set by $294,161
<br />in Dublin San Ramon Services District (DSRSD) sewer treatment fees exceeding
<br />budget.
<br />Table 8. Sewer O&M Funds — Amended Budqet vs. Actual
<br />Sewer O&M
<br />FY 2020/21
<br />Revised
<br />FY 2020/21
<br />Actual
<br />Variance
<br />Variance
<br />Beginning Balance, Jul 1
<br />$9,028,133
<br />$9,028,133
<br />$0
<br />0.0%
<br />Revenues
<br />Net Transfers
<br />Expenses
<br />15,897,500
<br />(856,000)
<br />15,899,898
<br />(876,247)
<br />2,398
<br />(20,247)
<br />0.0%
<br />2.4%
<br />DSRSD
<br />All other expenses
<br />(10,500,000)
<br />4,709,438
<br />(10,794,161)
<br />3,306,483
<br />(294,161)
<br />1,402,955
<br />2.8%
<br />-29.8%
<br />Total Expenses
<br />15,209,438
<br />14,100,643
<br />1,108,794
<br />-7.3%
<br />Net Income
<br />$167,938
<br />$923,007
<br />$1,090,945
<br />-649.6%
<br />Ending Balance, June 30
<br />$8,860,195
<br />$9,951,140
<br />1 $1,090,945
<br />12.3%
<br />Callippe Preserve Golf Course Operating Fund
<br />The Callippe Preserve Golf Course operating fund ended the year with an operating
<br />surplus of $936,375 as shown below in Table 9. As a result, $500,000 was transferred
<br />to the General Fund to repay the golf course loan (originally $10 million; as of June 30,
<br />2021 the remaining balance is $5.7 million), $91,227 increased transfer out to the Golf
<br />Replacement Fund and an increase of $121,375 to the fund balance.
<br />The highlights of the golf course operations in FY 2020/21 are as follows:
<br />Page 9 of 14
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