HomeMy WebLinkAboutReso 2013-265 RESOLUTION NO. 2013-26�
RESOLUTIOI�' OF THE CIT1' COUI�CIL OF THE CITY OF
CHiILA VISTA ESTABLISHII�'G A SE�%ER SERVICE
REVE?�'UE FUI�TD RESERVE POL[CY
�i'HEREAS. in Januan� 2012. the Cit�� Council endorsed the Citv's Fiscal Recoven- and
Prosress Plan. �vhich ���as created to address the Citv's immediate financial emeraencv as well as
its lone-term fiscal sustainabilih�: and
V✓HEREAS, in alignment ���ith the Fiscal Reco��ery and Progress Plan. a resen�e policy
for the Se«�er Service Re��enue Enterprise fund is proposed to provide guidelines for the le��el
and use of resen�es: and
WHEREAS, establishing a carefully considered polic�� �tiill help miti�ate the impact of
economic fluctuations on re��enues, fund unforeseen expendimre requirements, pro��ide
minimum levels of cash balances, and a��oid the need to borro�i� for cash manaeement purposes:
and
�i'HEREAS. the proposed polic}� ���ill help to provide sufficient reserves to create
financial stabilih� resulting in increased credit qualit�� and allo��'s the public entiq� to ���eather
times of uncertaint�• and the impacts of neeative events, both major and minor; and
W'HEREAS. properly-funded reserves allo�i- for continued abilit}� to provide se���er
sen�ices and provide the ability to respond to unezpected opportunities; and
WHEREAS, the proposed policy recommends four resen�e cateeories to provide for
greater distinction and increased security and accountability in the use of resen�es, including (1)
V1'orkine Capital and Rate Stabilization Reserve: (2) Emergenc}� Reserve; (3) Se���er Revenue
Vehicle Replacement Allocation; and (4) U.S. Environmental Protection Agenc�� (USEPA)
Permit Rene���al Liabilitv Reserve: and
«'HEREAS, the N'orking Capital and Rate Stabilization Resen�e (minimum 180 da}�s of
the operating bud�et and ma�imum of 12�% of the minimum balance) is intended to
accommodate am natural ��ariabilih� in revenues and expenditures including potential disruptions
of cash flo�vs due to varied billine methodolog��, short-term fluctuations and annual cydes in the
Se�ti�er Sen�ice Revenue Fund: and
WHEREAS, the Emergenc}� Resen�e (�% of operatine and maintenance budget and a
maximum of 12�% of the minimum balance) are monies set aside to secure funding for insurance
deductibles. unforeseen liabilities/litiaation and settiement costs related to the Citv's wastewater
svstem: and �
Resolution No. 2013-26�
Pa�e 2
WHEREAS, the Seti�er Revenue Vehicle Replacement Allocation Reserve (established by
Replacement Schedule) represents monies set aside to fund the scheduled replacement of vehides
utilized for sewer operations; and
R'HGREAS. the USEPA Permit Renewal Liability Reserve (20% of the City of Chula
Vista share of the upgrade costs) would account for monies set aside to fund the Cit�� of San
Diego Metropolitan Waste�vater costs related to the potential upgrade of the Point Loma
V�'astewater Treatment Plan (PLWTP) or other alternative; and
WHEREAS, the reserve levels to be established by this Sewer Service Revenue Fund
Reserve Policy are goals that are intended to be achieved over the long-term and that the City
Council is adopting this Policy on that basis.
NOW, THEREFORE, BE IT R�SOLVED that the City Council of the City of Chula Vista
does hereby adopt the City of Chula Vista Se���er Service Revenue Fund Reserve Policy, as
presented, a copy of which is on file in the Orfice of the City Clerk.
Presented by Approved as to form by
i �� .
- ��;(� ,G�,��-�-
Mar� Kachadoorian Glen R. Googins �j �
Director of Finance/Treasurer �ity Attomey
Resolution No. 2013-26�
Pa�e 3
PASSED. APPROVED. and ADOPTED bv the Citv Council of the Cirv of Chula Vista.
Califomia� this 17th dav of December 2013 b�� the follo��ine vote:
AYES: Councilmembers: Aeuilar. Bensoussan. Ramirez. Salas and Cox
I�iAYS: Councilmembers: None
ABSENT: Councilmembers: None
�
Chen�l Cox. M �or
ATTEST:
�� ����
Donna R. I�'oms. CMC. Citv Clerk
STATE OF CALIFOIL\'IA )
COUI�'TY OF SAN DIEGO )
CITY OF CFIULA VISTA )
I. Donna R. I�'oms. Citv Clerk of Chula Vista_ California. do herebvi certifi- that the foreeoine
Resolution No. 2013-26� was duly passed, approved, and adopted by the City Council at a
reaulaz meetine of the Chula Vista Citv Council held on the 17th da�� of December 2013.
Ezecuted this 17th dav of December 2013.
�<.�f,��""�' -�Z] b ��Y/i�.�
Donna R. 1�'oms. CMC. Ciri' Clerk