2003 AGN JUN 03 I23 - Laserfiche WebLink

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CITY OF COLTON Item #23 AGENDA REPORT For City Council Meeting of June 3, 2003 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ERIC FRASER, DIRECTOR OF WATER AND WASTEWATER OPERATIONS SUBJECT: RECOMMENDATION FOR ASSISTING WITH THE FINANCIAL POSITION OF THE WASTEWATER UTILITY FUND DATE: MAY 27, 2003 BACKGROUND On May 20, 2003 a special workshop between the Utilities Commission and presentation at the regular Colton Utility Authority Meeting were conducted and included at length the financial situation of the Wastewater Utility and the need to generate revenue to sustain its operation. Decisions as to proposed monthly sewer rates to meet certain requirements are still pending and will be addressed at a Public Hearing at this evening's meeting. DISCUSSION/ANALYSIS Immediate repairs are needed at the Treatment Plant but there are insufficient capital funds available to initiate the repairs. There is a need to initiate a loan to affect those repairs. ALTERNATIVES 1. Postpone maintenance at the Treatment Plant of several critical components with the potential for further damage to the facilities. This would result in unnecessary additional costs to the Department. 2. Wait for adequate funds to accumulate as a function of the proposed new rate. This would not be preferred due to the time involved to reach necessary levels to proceed with the needed repairs. FINANCIAL IMPACT A transfer of $100,000 from Water Utility Account Number 521-1000-000, would result in a fund balance of $7,523,645.98 according to the General Ledger Balance Report of May 28, 2003. Repayment terms of the loan dictate that it is repaid by August 1, 2004. ENVIRONMENTAL IMPACT None associated with this loan. Staff recommends that the City muncil approve the attached Resolution amending the FY2002-03 Budget for a $100,000 loan from the Water Utility to the Wastewater Utility with full repayment due by August 1, 2004. Attachment: Resolution REVIEW TEAM ONLY City Attorney: (t c� Finance Director: -Q. A UNL City Manager: Other: