HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (13) DATE: May 3, 2000
TO: City Council
FROM: Assistant City Manager-Special Projects
WASTEWATER TREATMENT PLANT FUND USE POLICIES
RECOMMENDATION:
It is recommended that City Council adopt a Resolution establishing policies on the
use of the Wastewater Treatment Plant Fund.
BACKGROUND:
With the passage last November of Measure`U,°Palm Springs voters amended the
Charter to establish that the Wastewater Treatment Plant Fund could not be utilized
for loans to other City activities. The City s Wastewater Treatment Plant fund was
established years ago to provide for the accounting of all income and expenses,
operational or capital,of the City's WastewaterTreatment Plant. All money collected
from whatever source,so long as it is related to wastewater treatment and collection,
Is deposited in the Fund. With budget adoption each year,the WastewaterTreatment
Plant operational needs are appropriated from this Fund.
At the recent budget workshop,City Council expressed a desire to establish policies
related to the use of the WastewaterTreatment Plant Fund. The attached Resolution
would establish the following policies:
A. The Wastewater Treatment Plant Fund is an Enterprise Fund of the City of
Palm Springs to account for the Income,expenses,collections,and assets of
the Wastewater Treatment Plant operations and capital investments.
B. The Wastewater Treatment Plant Fund shall be used for the annual
appropriation: of funds for Wastewater Treatment Plant operations and
wastewater collection services.
C. The Wastewater Treatment Plant Fund may be utilized for annual equipment
and small capital project needs, less than $50,000 per project, of the
wastewater plant or collection system.
D. The Fund may be utilized to reimburse any Capital Facility Charges invoiced
by the City's Operations&Maintenance contractor.
E. The minimum fund balance goal for the Fund shall be $2.2 million for
unforseen emergencies or regulatory mandates.
F. The Fund's balances may be utilized to cover the annual operational swings
In proAts or loss, up to a maximum of$200,000 per year, which will allow for
minor swings in annual profit or loss from operations without requiring a
recalculation of sewer service rates.
G. The Fund may be utilized for capital expansion of the plant and collection
system.
Wastewater Treatment Plant Fund Use Policy
May 3, 2000
Page Two
The attached Resolution is offered for City Council consideration.
ALLEN F. SMOOT,AAE
Assistant City Manager-Special Pro ects
APPROVED
/ - City Manager
ATTACHMENT:
Resolution
111B'L��
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, SETTING POLICIES FOR THE USE OF THE
WASTEWATER TREATMENT PLANT FUND.
WHEREAS with the adoption of Measure'U° In November of 1999, the voters amended the City
Charter to prohibit loans from the Wastewater Treatment Plant Fund; and
WHEREAS the City Council has expressed a desire to establish policy on how the Wastewater
Treatment Plant Fund is to be utilized,
NOW THEREFORE BE IT RESOLVED that the following policy statements shall apply to the
Wastewater Treatment Plant Fund:
A. The Wastewater Treatment Plant Is an Enterprise Fund of the City of Palm Springs
to account for the income, expenses, collections, and assets of the Wastewater
Treatment Plant operations and capital investments.
B. The Wastewater Treatment Plant fund shall be used forthe annual appropriation
of funds for Wastewater Treatment Plant operations and wastewater collection
services.
C. The Wastewater Treatment Plant Fund may be utilized for annual equipment and
small capital project needs, less than$50,000 per project, of the wastewater plant
or collection system.
D. The Fund may be utilized to reimburse any Capital Facility Charges invoiced by the
City's Operations&Maintenance contractor.
E. The minimum fund balance goal for the Fund shall be $2.2 million for unfbmeen
emergencies or regulatory mandates.
F. The Fund's balances may be utilized to cover the annual operational swings in
profits or loss, up to a maximum of$200,000 per year, which will allow for minor
swings In annual profit or loss from operations without requiring a recalculation of
sewer service rates.
G. The Fund may be utilized for capital expansion of the plant and collection system.
ADOPTED this day of 2000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager
REVIEWED&APPROVED AS TO FORM