SR 05:300 - Laserfiche WebLink

Water Operations And Maintenance (0 & M) And Debt Funds The Water Operating Funds ended the year with a $1.6 million surplus of revenues and transfers compared to expenditures, which is $421,000 more than expected after carryovers of $418,000 (the majority of which is being used for the City's commercial irrigation hardware rebate program). Water sales were under projections by $1.4 million, but were offset in a similar amount by the cost of water purchased from Zone 7 coming in under budget. Weather factors playa big role in water consumption, and are hard to predict ahead of time, so initial revenue and water purchased projections often are off. Net of carryovers, other expenditures came in $320,000 under budget, due primarily to personnel costs ($167,000) and overhead charges by the General Fund ($60,000). The June 30, 2005 ending Debt Service Fund Balance is $749,000 and the ending 0 & M Fund Balance is $8.77 million, for a total (unaudited) Fund Balance of$9.5 million, before carryovers are taken out. Both the Water and Sewer O&M Funds need a larger fund balance than many other Funds, because of cash flow challenges (service is provided before revenue is received), and the need for a larger than average contingency (due to weather changes and unexpected equipment failures, costly water line breaks, etc.). Should the fund balance grow too large for these needs, the funds can be used to defer future rate increases or make additional transfers to the Water Replacement Fund if needed to offset future costs. Sewer Operations And Maintenance (0 & M) And Debt Funds The Sewer Operating Funds ended the year with a $59,000 surplus of revenues and transfers compared to expenditures, which is $250,000 more than expected (after carryovers of $19,000). The extra net income was due mostly to revenues exceeding projections for local sewer fee collections ($65,000) and interest income ($45,000); and due to cost savings including personnel ($64,000), General Fund overhead charges ($21,000), electricity ($20,000); and annual debt service savings resulting primarily from additional interest earnings on debt service reserves ($21,000). Note that residential sewer charges are based on fixed rates and do not follow the same trends as water consumption (especially summer irrigation water). Therefore, the projected versus actual variances were larger for water rate revenues than for sewer rate revenues, which include both local revenues and regional revenues [passed on to the Dublin San Ramon Services District (DSRSD) for sewer treatment and to the Livermore-Amador Valley Water Management Agency (LA VWMA)] for export]. The June 30, 2005 ending Debt Service Fund Balances are $643,000, and the ending 0 & M Fund Balance is $3.31 million, for a total (unaudited) Fund Balance of $3.96 million. The O&M Fund Balance is needed for cash flow and contingency. SR 05:300 14