HomeMy WebLinkAbout8 Transfer of Funds Authorization - Revisedenda Item #
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To: Board of Directors
From: Regina Wise
Date: November 02, 2016
Subject: Consideration to Authorize Transfers From Designated and
Restricted Funds to the General Funds
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the Board can authorize transfers from Board designated and restricted funds.
2. HISTORY
During the budget process the Board approves funding sources for planned capital
projects, debt service, and vehicle replacements. Any additional transfers that may be
required after the adopted budget must be approved by the Board throughout the
year.
3. NEW INFORMATION
The Water Utility has been aggressively working to complete system improvements.
During the FY16 budget process the Board approved a transfer from the operating
reserve fund to the general fund for the portion of capital projects that were planned to
exceed current rate revenues for the year. These projects, in conjunction with timing
of other projects and unanticipated system maintenance and repairs, have exhausted
the funding provided by the budget transfer. Staff is requesting an additional transfer
of $800,000 from the Water Utility Operating Reserve to the Water Utility General
Fund and $150,158 from the Water Utility Facilities Fees Fund to the Water Utility
General Fund for the following:
• The total expense for the Pipeline Replacement Project for FY16 is expected to
be $1,675,000 which exceeds the FY16 budget by $215,000. Staff requests a
transfer of $215,000 from the Water Operating Reserve to the Water General
Fund.
• The Phase 4 SCADA Reliability project was approved for a total not to exceed
$566,000, which utilized the combined FY16 and FY17 budget total amount of
$554,000. Staff projects that 75% of this project will be completed in FY16.
As a result, staff requests a transfer of reserved FY17 budget funds of
$277,000 from the Water Operating Reserve to the Water General Fund.
• Unanticipated system maintenance projects that carried over to FY16 from prior
years, including the Well 20 Rehabilitation Project and the Prosser Village Well,
are projected to total $172,359 in FY16. Staff requests a transfer of $172,359
from the Water Operating Reserve to reimburse the Water General Fund.
• Unanticipated system maintenance expense for the Ponderosa Palisades
Hydro Pump project is projected to exceed budget by $108,000. Staff requests
a transfer of $108,000 from the Water Operating Reserve to the Water General
Fund.
• The Water Utility purchased a loader in FY16. The loader needed to be
purchased earlier than planned and depleted the balance of the Water Vehicle
Replacement Fund. The District disposed of the original loader but at a much
lower value than expected due to a compromised roll over protection system.
Staff requests a transfer of $27,641 from the operating reserve to reimburse the
Water General Fund for the remaining costs of the loader that exceeded the
Water Vehicle Reserve balance.
Lastly, debt service for the Bridge Street Tank 6160 MSG-1551 loan qualifies for
funding from facilities fees. Staff requests transferring $150,158 from the Water
Facilities Fee Reserve to reimburse the Water General Fund.
Attachment 1 shows the projected year-end balances for FY16 and FY17.
- 4. FISCAL IMPACT
These transfers will sufficiently fund the Water General Fund from Board designated
funds. Sufficient funds exist in the source funds to facilitate these transfers.
5. RECOMMENDATION
Review this report and authorize the following transfers:
1) Transfer $800,000 from the Water Utility Operating Reserve Fund to the
Water Utility's General Fund.
2) Transfer $150,158 from the Water Utility's Facilities Fees Fund to reimburse
the Water General Fund for MSG-1551, Bridge Street Tank 6160 debt service.
Jeremy Popov Michael D. Holley
Administrative Services Manager General Manager
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