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HomeMy WebLinkAboutAgenda Statement 1976/04/06 Item 19CITY OF CHULA VISTA ITEM N0. I9 COUNCIL AGENDA STATEMENT FOR MEETING OF: 4/6/7 6 ITEM TITLE: RESOLUTION#8118: Authorizing the Appropriation of an Additional $45,500 into Account 19-3340-5203 from the Unapp opriated Balance of the Sewer Service Fund SUBMITTED BY~ Director of Public Works/City Engineer ITEM EXPLANATION The City of Chula Vista operates a Sewer Service Fund (Fund No. 19, Activity No. 3340). Budget estimates for this fund are based on information received from the City of San Diego Utilities Department. For the past two years, the budget estimates have not closely coincided with actual costs, which has re- sulted in a budgeted deficit. I.t is necessary to appropriate an additional $45,500 into Account No. 19-3340-5203 from the unappropriated balance of that fund. The purpose of the Sewer Service Fund is to: 1) provide for billing and col- lection of sewer service charges by California-American Water Company; and 2) provide funding for payment of contractual sewer obligations to the City of San Diego (.Metropolitan Sewer System), Montgomery Sanitation District, and the Spring Valley Sanitation District. The contractual obligations to the Metropolitan Sewage System include both an annual capitalization charge for the construction of the system, and for a pro- portionate share of the system's maintenance and operation costs. The cap- italization charge remains constant and is easily accommodated in the budget; however, Chula Vista's maintenance and operation costs fluctuate from year to year depending upon the City's proportionate contribution to the total sewage flow through the Point Loma Facility. Accurate budget estimates for maintenance and operation costs are extremely difficult to determine because of the time lag between the preparation of budget estimates and the final determination of actual costs. The budget EXHIBITS ATTACHED ~cont • a on supplemental page Agreement Resolution x Ordinance Plat Other Environmental Document: Attached Submitted on STAFF RECOMMENDATION: Authorize the additional appropriation into the Sewer Service Fund 19-3340-5203 from the unappropriated balance of that fund. BOARD/ COMMISSION RECOMMENDATION COUNCIL ACTION :~.:. G ~~. ~ ~ .r_ - ~O- ~ .....................,.......,. %~ .... . 2 -113 (Rev. 5-75 Supplemental Page 2 Agenda Item No. 19 estimates are prepared in k'ebruary for the coming fiscal year. These estimate are based on preliminary information from the City of San Diego Utilities Department. Several months after Chula Vista`s budget is prepared, the Utilities Department prepares an "official" estimate for the coming fiscal year. Approximately two months after the end of a fiscal year, the Utilities Department makes a final determination of actual costs for the previous fiscal year. Under this procedure, the City of Chula Vista must make an estimate of expenditures for the coming fiscal year without knowing either the actual expenditures for the current fiscal year, or reliable unit cost projections for the coming fiscal year. This presents a problem when projected expenditures do not closely relate to actual costs. The following table shows that for the past two fiscal years there has been a significant difference between projected and actual costs. Fiscal Year Projected Cost Actual Cost per Million Gal.* 'per Million Gal. 1971-72 $55.30 $52.83 1972-73 56.66 55.72 1973-74 71.83 61.01 1974-75 72.21 82.18 1975-76 79.37 Not Available *Projections by Utilities Department, City of San Diego In FY 74-75, actual costs exceeded projected costs by nearly 14 percent. This amounted to a cost overrun of $26,546. However, tree actual costs for FY 74-75 were not determined until August, 1975 which meant that the deficit had to be paid out of the current fiscal year budget. Also, the projected budget for FY 75-76 had to be determined before the actual costs for FY 74-75 were available. Such a dramatic increase in actual costs from FY 73-74 to FY 74-75 (35~) was not anticipated. Therefore, the projected budget for FY 75-76 prepared by City staff in February, 1975, will be in- sufficient to meet maintenance and operation costs for this fiscal year. A total of $129,060 has been budgeted, and a total of $148,010 will be re- quired. This leaves a deficit of $18,950. This deficit for FY 75-76 com- bined with the deficit from the previous fiscal year of $26,546, which must be paid out of this year's budget, leaves a total deficit for the Sewer Service Fund of $45,496. FINANCIAL STATEMENT: The additional $45,496 that is required in the Sewer Service Fund is avail- able in the unappropriated balance of that fund. Fund balance on 7/1/75: $226 823 Funds budgeted for FY 75-76: (.460;910) Projected income for FY 75-76: 524,000 Sewer system maintenance; ( 80,000) Remaining balance lg1,323 Form No. F-229 . ' 32/3 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of iJnapp::~apriated Balance I HEREBY CEP.TIFY t2:at the money ~^equired for the appropriation of funds for the purpcse set forth i:~ the attached. resolution is available in tl^.n Treasury, or is anticipated to came into the Treasury, and is otherwisE unappropriated. Amount S 45,500 rund Sewer Service Fund Purpose To cover deficit in Sewer Service Fund Budget Eidder N/A -3340-5203 Date March 31, 1976 3y ~/ - f Director of Finance The City of Chula Vista Certification of Unencumbered Balance I HF.REBF CERTIFY that the indebtedness and cbligatian to be incurred by the contract or agreement authorized by thy: attached resolution can ne incurred without the vioiatior. of any of the provisions of the Ch«rter of the City cf CP/uia Vista, o- t?~.e Corlstitution or the luww of the State cf Califarrlia, trla sufficient monies Nave been appropriated for the purpOS'~: a£ 'J~LI. contract, that sufficient monies to mast the obligations of tiz.e ca:~tract are actually in the Treasury, ar are anticipate? to ao~' into the Treasury to the credit of the a.Lprapriation from .d!1i c!: the same are to be drawn, and that saki raonies nccv actuaiiy in th Treasury, together with the marries anticipated to comma i:lto thfi Treasury, to the credit of said appropriation are atherw~_s~ ~nencumbered. Amount Not to Exceed $ Director of ~~ irarce. i?'le Clty of Chub. V? s'c~:. Date By Fend Purpose Bidder Dept./Activity ^~--t, f 86 ~..c ~. ~. i. C~,. 4f. .V C') .