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General Fon~i Capital Prqiects <br /> <br />In accordance with the City's Financial Policies, excess funds from the General Fund will be <br />used for capital projects. Per the 1991-92 budget, staff has transferred $1 million of the 1991-92 <br />surplus to the General Fund Capital Projects Fund. In addition, staff is recommending that the <br />remaining $141,000 in the General Fund Capital Reserve, and $1.3 million dollars in excess <br />from 1991-92 also be transferred to the General Fund Capital Project Fund. <br /> <br />From the total available $2.475 million, staff is recommending that $2.275 million be <br />appropriated for the City's participation in the Harvest Park Gym construction. The City <br />committed to contributing up to $3 million to the Pleasanton Unified School District to fund half <br />of the construction costs of the gym. Thus, the City will still have an unfunded obligation of <br />$725,000. Staff will continue working through the budget process to identify funding for this <br />remaining portion. <br /> <br />Staff is also recommending that $200,000 be set aside in the General Fund Capital Projects Fund <br />for the final accounting and close out of the Railroad Consolidation Project and Valley Avenue <br />overcrossing. The City received $180,000 last year from one of the railroad companies as its <br />contribution towards the project, but has a potential obligation of about $200,000 to the other <br />railroad company for costs it incurred. Staff will present a report to Council when more <br />information is available. If any of the $200,000 is not needed for this purpose when the final <br />accounting is complete, that portion could be used towards the Harvest Park Gym obligation. <br /> <br />Water Maintenitn¢¢ and O_verating (M & O) Fund <br /> <br />The Water M & O Fund ended the year with an $84,000 surplus of revenues compared to <br />expenditures, which is $210,000 more than projected. However, these additional funds will need <br />to be utilized towards the construction of Well Number 8. The impact will be analyzed further <br />during the first quarterly review in 1992-93, and as part of the Water Rate Study which will be <br />underway shortly. <br /> <br />The Water Fund had been incurring deficits for several years, which resulted in its reserve being <br />driven below the 10% level. In April 1991, water rates were increased as part of a two year <br />rate program. The purpose of the two year rate plan was for the Fund to start producing an <br />excess of revenue over expenditures in order to bring reserves to an adequate level (at least 30 % <br />for an enterprise in order to meet cash flow requirements), and to begin funding long-term <br />replacement of the City's water system. <br /> <br />The City relaxed its water conservation goal this summer from 25% to 10%. The requested <br />10% reduction is calculated based on comparable consumption periods in the base year, 1990. <br />As a result of relaxing the water conservation goal, consumption has increased this summer, <br />and therefore, revenues have increased. However, the City is expecting up to a 12% rate <br />increase by Zone 7 (its water wholesaler) in January 1993. Therefore, the cost of water <br />purchased will be going up. <br /> <br />The impact of these two factors, increased consumption and increased costs, will need to be <br />analyzed. Staff will be undertaking a water rate study in November 1992. It is expected that <br /> <br />SR 92:432 <br /> <br />7 <br /> <br /> <br />