HomeMy WebLinkAbout7 Transfer of funds Agenda Item #
Memorandum
To: Board of Directors
From: Mary Chapman, Administrative Services Manager
Date: March 10, 2005
SUBJECT: Consideration of authorizing a transfer of funds from the Reserve for Future Meter Fees restricted
fund to the District's water department general fund
1. WHY THIS ITEM IS BEFORE THE BOARD
The District has a restricted fund called the Reserve for Future Meters. Only the Board can authorize transfers
from this fund.
2. HISTORY
For many years we set aside the cost of a water meter from customer connection fees into this reserve in
anticipation of one day installing water meters. Once the State of California required utilities to install water meters
on new services,we did so,which meant we no longer added money to the reserve. When the water crews are
working out in the field repairing a service or installing new services in a double water box and there is an existing
service without a meter, they will install a meter to the new service and another to the existing service.
This fund has grown over the years from interest earnings. We have borrowed from these funds in 1996 and
again in 2002. $622,284.02 of this fund was borrowed to finance the 1996 pipeline replacement project in
Tahoe Donner and Donner Trails. The loan balance as of 12/31/04 was$446,419.48. Another$551,445.63
was borrowed in 2002 to cover a portion of the water department's year-end overdraft. The loan balance as
of 12/31/04 was $510,684.64. Both loans are set up on a principal and interest repayment schedule. We
charge the six month average interest rate that we earn on our investments with the Local Agency
Investment Fund (LAIF).
3. NEW INFORMATION
The Water Department staff installed 85 water meters to existing services from 1999 through 2004 for a total
cost of$11,475. The following is a request to authorize the transfer of$11,475 from the restricted fund and
reimburse the water department general fund. After the transfer, the balance in the restricted fund will be
$184,738.99.
RECOMMENDATION:
To authorize staff to transfer $11,475 from the Reserve for Future Meters restricted fund to the water
department general fund to reimburse the fund for the purchase and installation of water meters during 1999
through 2004.