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Furthermore, staff and the Council have in the past discussed the <br />desire to limit the amount of long-term debt the City is incurring. <br />Appendix F details the existing and proposed debt for which the <br />General Fund has some obligation. It is likely that staff will be <br />making some recommendations in the near future to use some or all <br />of this Capital Projects Reserve to pay cash for a portion of these <br />projects. Staff is also looking at ways to fund the water line <br />improvements needed in the downtown. A more detailed analysis is <br />underway in conjunction with preparation of next year's 5-year <br />capital improvement program and the water rate study which is <br />currently in process. In the meantime, staff recommends that the <br />reserve be established and be designated for capital projects. <br /> <br />Water OperatSng Fund: <br /> <br />The Water M & O Fund ended the year with a $500,000 deficit of <br />revenues compared to expenditures. Staff projected the deficit to <br />be $801,000, so the Fund actually did better than anticipated, <br />primarily due to expenditures being $278,000 less than projected. <br />Major expenditures differences are summarized as follows: <br /> <br />PROJECTED ACTUAL VARIANCE <br /> <br />Employee Services Costs <br />Water Purchased <br />Electricity <br />Capital Outlays <br /> <br />$879,000 $835,000 $44,000 <br />2,500,000 2,417,000 83,000 <br />260,000 232,000 28,000 <br />200,000 135,000 65,000 <br /> <br />Major Variances <br /> <br />$220,000 <br /> <br />Although the Fund ended the year better than expected, the need for <br />a water rate adjustment is quite clear. Reserves are inadequate to <br />continue funding this deficit. Staff is in the process of working <br />with a consultant to complete a very thorough water rate study. <br />Besides user fees for water consumption, water connection fees and <br />capital replacement funding are being studied. Staff anticipates <br />the full report to be presented to Council in January. <br /> <br />Appendix C contains a recap of Water M & O Fund operations for <br />1989-90. <br /> <br />Sewer OPeratina F~pd: <br /> <br />The Sewer M & O Fund ended the fiscal year with $26,000 more than <br />expected. Although revenues exceeded projections, the majority of <br />these revenues are passed on to the Dublin San Ramon Services <br />District (DSRSD) for sewage treatment costs. This is reflected by <br />expenditures also exceeding budget. <br /> <br />SR 90:487 <br /> <br /> <br />