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General Fund Reserve Designations -Recommended changes to General Fund
<br />Reserve Designations affect the Reserve for Carryovers, the 10% Reserve for
<br />Economic Uncertainties, the Capital Projects Reserve, and the Temporary Recession
<br />Reserve. The recommended adjustment to the Reserve for Carryovers is a net
<br />reduction of $1,310,377 which is comprised of the net of carryover appropriations of
<br />$1,342,721 in expenditures and an increase for carryover for grants of $32,344. The
<br />recommended adjustment to the 10% Reserve for Economic Uncertainties results in a
<br />reduction of $470,000 due to total revenues being reduced from the Mid-Term Budget.
<br />When total revenue estimates are reduced it requires a change in the reserve to remain
<br />at a 10% level. As a result, the 10% reserve will change from the $9.4 million approved
<br />in the Mid-Term Budget to $9.1 million. Another recommended adjustment involves the
<br />$3 million one-time transfer from the Capital Projects Reserve to the Capital
<br />Improvement Program (CIP) approved in the Mid-Term Budget and redirecting that back
<br />into the Temporary Recession Reserve. This will result in a Temporary Recession
<br />Reserve balance increasing from $7.9 million to $10.9 million.
<br />Table 5. Recommended Changes to General Fund Reserve Designations
<br /> .-
<br />
<br />- ~. -. .-
<br />
<br />.• .
<br />.
<br />Reserve for Carryovers 2,910,377 (1,400,000) (1,310,377) 200,000
<br />10% Reserve for Economic
<br />Uncertainties 9,410,000 170,000 (470,000) 9,110,000
<br />Capital Projects Reserve 3,000,000 (3,000,000) - -
<br />Reserve for Golf Debt Service 2,000,000 - - 2,000,000
<br />Temporary Recession Reserv 7,900,000 - 3,000,000 10,900,000
<br />Reserve for Inventories 67,349 - - 67,349
<br />Total 25,287,726 (4,230,000) 1,219,623 22,277,349
<br />Enterprise Funds
<br />Water Operations and Maintenance Fund -The Water Enterprise revenue for sale of
<br />water to customers is being reduced $1 million, to $15.5 million. The adjusted revenue
<br />is more in line with the revenue generated in the prior year and YTD trends. The
<br />original FY 2008-09 budget was developed in early 2007 when a rate adjustment was
<br />anticipated. The water rates are currently being studied and FY 2009-10 &FY 2010-11
<br />budgets will reflect any change in the rate. Metered water revenue and the sale of
<br />construction water meters are also being reduced ($40,000 and $4,500, respectively) as
<br />a result of the current economic downturn. The cost to purchase water is being
<br />increased $2.5 million, to $13 million, which is a reflection of higher than anticipated
<br />Zone 7 water rate increases and higher than anticipated consumption. Budgeted labor
<br />costs are being increased $67,000 but are somewhat mitigated by other minor operating
<br />cost savings of $14,000.
<br />Page 7 of 10
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