RES 92218 - Laserfiche WebLink

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