CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 8 of 15 General Fund Reserves. Table 6 below provides the breakdown of all the different reserves in the General Fund and recommended adjustments. As detailed in Table 2, transfers totaling $7.9 million to various funds are recommended. The remaining funds are recommended to be kept in the General Fund to increase its Unrestricted General Fund Reserve to $32.4 million, which is equivalent to 21.1 percent of the FY 2024/25 Mid-Term General Fund expenditure budget; 20.0 percent is the recommended target level per the City’s Reserve Policy, adopted by Council on June 6, 2023. Overall, the total General Fund reserves, including program and restricted reserves, will be approximately $53.9 million. Table 6. General Fund – Fund Balance Enterprise Funds The City currently has six Enterprise Funds: ▪ Water/Recycled Water O&M Fund ▪ Sewer O&M Fund ▪ Callippe Preserve Golf Course Fund ▪ Storm Drain O&M Fund ▪ Paratransit Fund ▪ Cemetery Fund The Operating Budget only includes the Operations & Maintenance (O&M) and debt service expenses of these enterprises. Capital improvements and replacements for the Water, Sewer and Storm Drain funds are accounted for in the Capital Improvement Program (CIP). The financial results of the CIP are presented to the City Council in a separate report. Each Enterprise Fund should generate adequate revenues to fully cover both operating and supplemental costs to maintain and update its facilities and infrastructure. However, both Storm Drain and Cemetery operations currently do not generate adequate revenues and receive subsidies from the General Fund as a result. Staff is exploring options to address this funding issue and will present recommendations to the City Council at a later date. Water and Sewer Operating Funds Water/Recycled Water Operations and Maintenance (O&M) Fund. As shown in Table 7 Page 237 of 658