SR 06:259 - Laserfiche WebLink

For Sewer Fund O&M, the minimum target level for reserves for this smaller enterprise is between 25%-30% of arumal revenue (10% to 15% for contingency, 15% for two months cash flow), or about $3.0 million. Currently, the Operations & Maintenance (O&M) Fund does have a Fund Balance of $3.2 million. On the other hand, sewer replacement reserves (that reside in the CIP) are at less than optimum levels. A further review of replacement funding is currently III progress. CALLIPPE PRESERVE GOLF COURSE OPERATING FUND The Callippe Preserve Golf Course operating funds consist of the Golf Course Operator Fund (reports on the actual operations of the golf course), the Golf General Fund Contributed Capital Fund, and the Replacement Fund. The total fund balance for all three golf operating funds is $2.58 million. This is $461,000 more than anticipated and the majority of the variance is explained by the actual operations of the golf course. The Golf Course Operator Fund highlights include: ~ Ended the year with available net income of $758,000 in just under 8 months of operation (after adjusting for contributed cash flow reserve of $200,000) ~ Revenues exceeded the budget by $278,000 including: ~ Green fees $220,000 over the budget. ~ Other revenues (cart fees, food and beverage, range revenue, etc.) $44,000 over the budget ~ Interest earnings $14,000 over the budget ~ Expenses were $140,000 less than budgeted, highlighted by: ~ Labor expenses ($63,000 less than budget) ~ Water costs ($97,000 less than budget) ~ Service contracts ($16,000 less than budget) ~ Materials and supplies ($27,000 over budget) ~ Start up costs ($36,000 over budget) Staff is beginning to analyze the results of the first few months of operations of FY 2006-07 to determine if the "honeymoon effect" of opening a new facility is starting to wear off or if the initial revenue trends appear realistic. The net income for FY 2005-06 and the projected income for FY 2006-07, as well as approved reserves in the General Fund should be sufficient to pay golf bond debt service for FY 2006-07 and the next two year budget cycle (FY 2007-08 & FY 2008-09), as required by policy. (The golf course debt service is funded two years in advance by accumulating reserves from net income of the golf course together with approved reserves held in the General Fund.) SR 06:259 8