TITLE
Recommendation to adopt resolution increasing appropriations in Fiscal Year 2014-2015 in the Water Fund (EF 310) in the Water Department (WA) by $6,500,000. (Citywide)
DISCUSSION
The FY 15 Budget adopted by the Board of Water Commissioners by resolution WD-1325 on June 19, 2014 represented the planned expenditures and projected revenues needed to execute the Long Beach Water Department's (LBWD) mission. As part of this mission, LBWD purchases water from the Metropolitan Water District (MWD) for the Alamitos Seawater Barrier which is operated by the Los Angeles County Department of Public Works. Additional water above budgeted levels was needed for the seawater barrier in FY 15 and therefore purchased by LBWD. Costs for water purchased by LBWD for the seawater barrier are reimbursed by the Water Replenishment District of Southern California (WRD) and therefore these additional costs were 100% revenue offset.
In addition, LBWD entered into an in-lieu replenishment agreement with WRD in December of 2014. Under this agreement, LBWD would purchase additional imported water in-lieu of pumping and treating groundwater for potable consumption. The groundwater basin is, therefore, "replenished" by "not pumping". As imported water is more expensive than groundwater, WRD reimbursed the additional cost incurred by LBWD, and therefore these additional costs were 100% revenue offset.
TIMING CONSIDERATIONS
City Council action on this matter is required prior to the closing of the City's books for FY 15.
FISCAL IMPACT
To accurately reflect FY 15 year-end transactions the following action is requested:
• Increase appropriations in FY 15 in the Water Fund (EF 310) in the Water Department (WA) by $6,500,000, offset by additional revenues.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE AMENDED AND RESTATED 2014-2015 BUDGET OF THE LONG BEACH WATER DEPARTMENT
Respectfully Submitted...
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