RES 91194 - Laserfiche WebLink

authorized to determine the appropriate funding source for each payment made for the gym and the Senior Center from the two primary funding sources (the General Fund Reserve and the 1991 COP proceeds). Because investment strategies can change quickly with the market, it is important that the Director of Finance have the authority to make immediate decisions regarding the best funding. The 1991 COP documents allow the proceeds to be used for the Harvest Park Gym. Furthermore, staff discussed with the Board of the Public Facilities Corporation the possibility that 1991 COP proceeds would be redirected to the Harvest Park Gym to the extent of alternative funding being identified for the Senior Center. As a result of Council approving this recommendation, the total budget for the Senior Center will remain intact with only the funding sources changing, the City will be able to pay $1 million to the School District towards its eventual obligation of $3 million for the Harvest Park Gym, and the City might receive better interest earnings. Water Oberatina Fund The Water M & O Fund ended the year with a 5570,000 deficit of revenues compared to expenditures, which is on target with projections. However, after setting aside a reserve for carryovers of $37,000, the ending balance is $38,000 less than expected. This Fund has been incurring deficits for several years, with the reserve being extremely low. In April 1991, water rates were increased per the results of a two year rate program. The increased rates were not reflected on water bills until June 1991, thus there is little impact in Fiscal Year 1990-91. The purpose of the two year rate plan is for the Fund to start showing some net income in order to bring reserves to an adequate level, and to begin funding long term replacement of the City's water system. Because of the severity of California's continued drought, Zone 7 (the City's water wholesaler) had its State water allocations severely cut back, and the City had to request its customers to reduce consumption by 25$. The full financial impact on water revenues because of the drought and the cut back this summer won't be known until early December. It is hoped that the impact is minimal, as we have begun to transfer the impact of increased water costs to our highest water users. Staff will be undertaking a water rate review during this time to access the adequacy of the rates. A rate increase has been scheduled and already adopted for January 1992. However, on October 16, Zone 7 announced a 40$ increase effective January 1. The already adopted rate increase does not take Zone 7's increase into account. Therefore, without a doubt, as part of the current SR 91:448 7