RES 90240 - Laserfiche WebLink

Sewer rates are studied bi-annually in conjunction with DSRSD. The next review will be done in early 1991. Staff will be recommending that we also study on-going capital replacement funding as we are doing this year with the Water Fund. Sewer connection rates will also be studied. Appendix C contains a recap of Sewer M & O Fund operations for 1989-90. Capital Improvement Fund9 Development revenue fell short of expectations due presumably to the state of the overall economy. Many projects which have growth management approval which were anticipated to start in 1989-90 were delayed. The Street Fund which is primarily dependent on gas tax revenues and grants was not impacted. The Sewer Fund had a shortfall in revenues, but has reserves which can be temporarily drawn upon which will minimize any impact in the 1990-91 sewer capital improvement program. However, the Park Development Fund, the Water Capital Fund and the Miscellaneous Capital Improvement Fund are all impacted. Although the revenues are anticipated to be ultimately received, presumably in the next 1-3 years, these three improvement funds do not have adequate fund balances to support all the projects planned in 1990-91 and carried over from 1989-90. Therefore, before starting the next 5-year capital improvement program planning process, staff will need to re-project the timing of the revenues, and will recommend the priority of current year projects to be completed as funding is realized. This evaluation is currently in process and staff will be presenting recommended changes in the 1990-91 capital improvement budget to the Council as soon as the review is complete. Appendix C contains a table showing major revenues in 1989-90, budgeted vs. actual, including the major development revenue sources. APPROPRIATION OF F~ND BALANCES Each year the City Council is required by law to adopt the City's Appropriation Limit (Prop.4). The City's limit in 1989-90 was $27,780,185. Revenues subject to the limit were $23,986,728, which was not in excess of the limit. However, all funds were not spent by June 30, 1990. The City is allowed to appropriate the additional funds that are within its limit to a contingency reserve to meet existing and future, known and unknown obligations. This will allow the City to exclude these funds from the City's appropriation limit when the funds are expended in a future fiscal year. Although not all funds have revenues which are subject to the appropriations limit, it is still advisable to fully appropriate all fund balances of the operating, internal service, SR 90:487 6