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HomeMy WebLinkAboutRES 1996-12 - Board RESOLUTION NO. 9612 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT ESTABLISHING THE 1996 WATER SYSTEM IMPROVEMENT PROJECT FUND, AUTHORIZING TRANSFERS FROM EXISTING RESTRICTED ACCOUNTS AND ESTABLISHING THE TERMS OF AN INTERFUND LOAN AND PAYBACK SCHEDULE WHEREAS the Truckee Donner Public Utility District intends to construct approximately 17,000 linear feet of water pipeline in Tahoe Donner and Donner Trails subdivisions, and WHEREAS plans and specifications for this project, known as the 1996 Water System Improvement Project, have been prepared and bids have been received, and WHEREAS the total project cost is estimated to be $1,848,000, and WHEREAS the District has fund balances in existing restricted accounts known as the Electric Building Fund, the Storm Damage Fund, the Reserve for Future Water Meter Fund and the Tahoe �^ Donner Water System Fund and the balances in said accounts will not be needed for their designated purposes during the next several years, and WHEREAS it is the desire of the Board of Directors to borrow from said restricted accounts to pay the cost of the 1996 Water System improvement Project and to establish a mechanism for repaying said restricted accounts the principle borrowed and interest that would have accrued to said restricted account but for the borrowing, NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows: 1. There is hereby established a fund to be known as the 1996 Water System Improvement Project Fund. 2. The fund shall be used to pay all costs associated with engineering, construction, inspection and administration of the 1996 Water System Improvements Project. 3. The District Treasurer is authorized to make transfers from the fund to pay proper project costs in accordance with District policy. 4. The fund shall be established by transferring to it from existing District restricted accounts the following amounts: a) Electric Building Fund, $900,000 b) Storm Damage Fund, $148,000 '^ c) Reserve for Future Meters Fund, $300,000 d) Water Building Fund, $500,000 10-1 5. The District Treasurer shall set up a procedure whereby the principal so bon-owed from existing restricted accounts is reimbursed to said funds over a thirty(30)year period and the interest that would have accrued to said restricted accounts, but for the borrowing, is paid to the restricted accounts, according to the interest rate earned by investments in the Local Agency Investment Fund or such other investment vehicle that said restricted accounts may be invested into in the future. 6. Principle and interest payments to the restricted accounts shall be made from the Water General Fund and the General Manager shall budget each year for said payments. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 17th day of April 1996 by the following roll call vote: AYES: Aguera, Jones, Maass, Sutton and Hemig. NOES: None. ABSENT: None. TRUCK DON ER PUBLIC UTILITY DISTRICT By ae 1� Peter L. Ho meister, Clerk of the Board ATTE l Susan M. Craig, Deputy Dist ct Clerk