Agenda

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City Council Regular Meeting

Meeting Date:

06/25/2019

BACKGROUND

The Schertz/Seguin Local Government Corporation has a Retained Earnings Policy that sets a threshold for the minimum retained earnings to be held in the operating fund. By previous SSLGC Board action, the minimum is set at three months of operating expenditures. Based upon this policy, there is $3,500,000 above this threshold currently in this reserve account available for use, verified by the Annual Audit for FY2017-2018. SSLGC Staff is recommending a transfer to the SSLGC Repair/Replacement Fund in the amount of $3,000,000 and a transfer to the Rate Stabilization fund in the amount of $500,000. $1,197,850 of this will be used to provide for repairs, maintenance and upgrades of existing facilities.

The SSLGC Board approved this action at their regularly scheduled board meeting on April 18, 2019.

GOAL

Approve the SSLGC Budget Amendment transferring $3,000,000 from the operating reserve fund to the SSLGC Repair/Replacement Fund and transferring $500,000 from the operating reserve fund to the Rate Stabilization Fund.

COMMUNITY BENEFIT

The City of Schertz is a member of the SSLGC. It is through the SSLGC that the City provides water to its citizens. Approval of the budget amendment will ensure that the citizens of Schertz will continue to receive this vital resource and service.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of the Resolution for the Budget Amendment to the FY2018-2019 Annual Budget.

FISCAL IMPACT

No fiscal impact. This budget is based on SSLGC revenue.

RECOMMENDATION

Staff recommends approval.

Attachments
Resolution 19-R-76
SSLGC budget amend