Laserfiche WebLink
Page 10 of 15 <br /> <br /> <br />Sewer Operations and Maintenance (O & M) Funds. As shown in Table 8 below, the Sewer <br />Operating Fund ended FY 2023/24 with an operating fund balance of approximately $8.7 <br />million, which equals 48.2 percent of the Sewer O&M Fund’s FY 2024/25 expenditure budget. <br />The operating reserve policy adopted by the City Council on June 6, 2023, requires reserves <br />equal to between 30.0 - 40.0 percent of operating expenses with a target of 35.0 percent. <br />While operating reserves exceed the maximum required reserve level, a series of adjustments <br />were made in developing the FY 2023/24 and FY 2024/25 Operating Budget that involved <br />making one-time contribution of $1.0 million from the Sewer Capital Fund to cover operating <br />costs in order to reduce the projected deficit. During the fiscal year, staff also worked to <br />contain costs in anticipation of the budget challenges that resulted in $1.1 million positive net <br />income or $0.1 million without the $1.0 million one-time contribution from the Sewer Capital <br />Fund. <br /> <br />Sewer revenues were approximately $0.5 million or 2.9 percent higher than an estimate <br />included in the amended budget due to higher than anticipated utilization of the sewer <br />services for the year. On the expenditure side, actuals were approximately $1.1 million less <br />than the amended budget, mostly due to about $2.1 million less in expenditures for Repair and <br />Replacement activities. These savings were offset with higher sewer treatment fees paid to <br />Dublin San Ramon Service District (DSRSD) by approximately $0.4 million due to higher than <br />estimated utilization of sewer treatment services and increased costs related to various repair <br />and maintenance contracts to keep the services running. <br /> <br />Table 8. Sewer O&M Funds – Amended Budget vs. Actual <br /> <br />Page 239 of 658