TITLE
Recommendation to adopt resolution increasing appropriations in Fiscal Year 2018-2019 (FY 19) in the Water Fund Group in the Water Department by $7,558,116, offset by Water Fund Group revenues.
DISCUSSION
The Fiscal Year 2018-2019 Budget adopted by the Board by resolution WD-1391 on June 21, 2018 represented the planned expenditures and projected revenues needed to execute the Water Department's mission. As part of this mission, the Department purchases water from the Metropolitan Water District (MWD) for the Alamitos Seawater Barrier and is reimbursed by the Water Replenishment District of Southern California (WRD). An additional $2,300,000 in appropriation is needed to cover the additional purchased water costs, offset by revenue.
In addition, the Department budgeted the Advanced Metering Infrastructure (AMI) Project 50% in the Water Fund Group and 50% in the Sewer Fund Group, with the corresponding financing reimbursements also budgeted 50% to each fund group. After the budget was final, it was determined that the capital costs could not be split between the two fund groups and would reside in one fund group only. Therefore, 100% of the capital costs and 100% of the corresponding reimbursement will reside in the Water Fund Group. An additional $5,258,116 in appropriation is needed to cover the additional costs, offset by revenue.
TIMING CONSIDERATIONS
City Council action on this matter is required prior to the closing of the City's books for FY 19.
FISCAL IMPACT
To accurately reflect FY 19 year-end transactions the following action is requested:
• Increase appropriations in FY 19 in the Water Fund Group in the Water Department by $7,558,116, offset by Water Fund Group revenues.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
Christopher J. Garner
General Manager