HomeMy WebLinkAbout13 Water General Fund AGENDA # 13
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Memorandum
To: Board of Directors
From: Mary Chapman, Administrative Services Manager
Date: January 31, 2008
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
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.
Mission Statement Objective:
6. Manage the District in an effective, efficient and fiscally responsible
manner.
Goal:
6.1 Develop appropriate financial procedures to assure responsible
financial management.
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. $567,467.82 of this fund was borrowed to help
finance the 1996 pipeline replacement project in Tahoe Donner and Donner Trails.The
loan balance as of 12/31/07 was $363,396.28. 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 12/31/07 was $440,196.95. 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). In 2006, the Board
instructed staff to borrow funds from the Reserve for Future Meters for Broadband
expenditures incurred during the year. The amount for 2006 was $84,005.37.
NEW INFORMATION
The Water Department staff installed 45 water meters to existing services during 2007
for a total cost of $8,460. The following is a request to authorize the transfer of $8,460
from the restricted fund and reimburse the water department general fund. After the
transfer, the balance in the restricted fund will be $375,664.86.
RECOMMENDATION
To authorize staff to transfer$8,460 from the Reserve for Future Meters restricted fund
to the water department general fund to reimburse the fund for the purchase and
installation of 45 water meters during 2007.
Mary Ch a Michael Holley, General Manager
Administrative Services Manager