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Resolution 2890-112 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 WHEREAS, on May 5, 201 1, the Board of Directors of the South Tahoe Public Utility District held a public meeting and exhibits of the Sewer Enterprise Fund Budget for the Fiscal Year 2011-12 were made public. NOW, THEREFORE BE IT RESOLVED, by the Board of Directors of the South Tahoe Public Utility District that: The attached budget in the amount of $33,020,104 is adopted for the Fiscal Year beginning July 1, 2011, and ending June 30, 2012. WE THE UNDERSIGNED, do hereby certify that the above and foregoing resolution was duly and regularly adopted and passed by the Board of Directors of the South Tahoe Public Utility District at a regular meeting duly held on the 19th day of May 2011, by the following vote: AYES: Cefalu, Rise, Schafer NOES: Jones, Mosbacher ABSENT: None ATTEST: Kathy Sharp, rk of the Boafd RESOLUTION NO. 2890-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT ADOPTING THE BUDGET FOR THE SEWER ENTERPRISE FUND FOR FISCAL YEAR 2011 -12 Dale Rise, Board President South Tahoe Public Utility District NOTES: SOUTH TAHOE PUBLI UTILITY DISTRICT 2012 Sewer -3% rate increase, reduced borrowing.xls 1. Enterprise Fund revenue is from customer service charges and Capital Outlay Reserve revenue is from capacity fees and grants. Borrowings fund capital improvements. 2. Capital Outlay includes the Engineering Dept expenditures. Enterprise Fund contains all other departments. 3. Interest expense is paid from the Enterprise Fund. Principal is paid from the Capital Outlay Reserve. 4. A cash reserve equal to two months of O &M expenses is maintained for operations The remaining cash reserve is designated for Capital Outlay projects. 5. The Board established the Rate Stabilization Fund (RSF) on April 15, 2004. In the event of a large and sudden loss of revenue or increase in costs these funds will be used to avoid dramatic changes in sewer service charge rates. The RSF is equal to one years property tax receipts less transfers to other jurisdictions. See the Ten -Year projection pages for more extensive notes. / 3/2011 SEWER BUDGET SUMMARY 2007/08 2007/08 2008/09 2008/09 2009/10 2009/10 2010/11 2010/11 2011/12 2011/12 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED BUDGET BUDGET ENTERPRISE CAPITAL OUTLAY ENTERPRISE CAPITAL OUTLAY ENTERPRISE CAPITAL OUTLAY ENTERPRISE CAPITAL OUTLAY ENTERPRISE CAPITAL OUTLAY FUND RESERVE FUND RESERVE FUND RESERVE FUND RESERVE FUND RESERVE BEGINNING CASH BALANCES 2,354,079 15,936,243 2,602,064 26,735,546 2,542,002 22,912,364 2,677,267 23,135,793 2,787,229 17,889,921 REVENUES (1) 18,278,615 1,579,486 18,395,088 1,260,684 17,794,878 596,362 17,340,508 525,656 17,585,732 956,000 BORROWINGS 10,000,000 0 0 0 0 0 0 3,535,311 0 13,150,000 AVAILABLE FUNDS 30,632,694 17,515,729 20,997,152 27,996,230 20,336,880 23,508,726 20,017,775 27,196,760 20,372,961 31,995,921 SALARIES (2) 4,726,552 564,597 4,949,254 619,389 4,995,049 680,739 5,186,687 745,291 5,172,825 698,400 BENEFITS (2) 2,538,705 209,827 2,715,689 209,530 2,768,744 219,599 2,771,636 283,220 2,904,850 298,150 OPERATIONS & MAINTENANCE (2) 5,771,650 100,717 4,758,390 99,953 5,437,919 72,325 5,744,568 95,975 6,046,320 114,826 CAPITAL OUTLAY 4,680,978 7,492,752 3,038,260 9,815,619 15,720,733 DEBT SERVICE (3) 943,697 756,639 970,968 928,837 931,223 958,001 903,000 993,000 935,000 1,129,000 TOTAL CASH OUTLAYS 13,980,604 6,312,758 13,394,301 9,350,461 14,132,935 4,968,924 14,605,891 11,933,105 15,058,995 17,961,109 BALANCE BEFORE TRANSFERS 16,652,090 11,202,971 7,602,851 18,645,769 6,203,945 18,539,802 5,411,884 15,263,655 5,313,966 14,034,812 CAPITAL OUTLAY FUND TRANSFERS - 14,050,026 14,050,026 - 5,060,849 5,060,849 - 3,526,678 3,526,678 - 2,624,654 2,624,654 - 2,430,738 2,430,738 ACCRUAL TO CASH ADJUSTMENT 1,482,549 - 794,254 0 1,069,313 1,611 0 7,817 RATE STABILIZATION FUND TRANSFERS - 6,282,487 - 6,494,392 - 6,456,263 - 5,976,420 - 5,959,000 OPERATING AND CAPITAL OUTLAY RESERVES (4) 2,602,064 20,453,059 2,542,002 16,417,972 2,677,267 16,679,530 2,787,229 11,913,501 2,883,229 10,514,367 RATE STABILIZATION FUND (5) 6,282,487 6,494,392 6,456,263 5,976,420 5,959,000 TOTAL RESERVE BALANCES 2,602,064 26,735,546 2,542,002 22,912,364 2,677,267 23,135,793 2,787,229 17,889,921 2,883,229 16,473,367 AMORTIZATION (NON -CASH ITEM) 14,007 14,007 16,639 16,639 16,639 DEPRECIATION (NON -CASH ITEM) 4,496,288 4,127,848 4,281,779 4,367,000 4,454,000 NOTES: SOUTH TAHOE PUBLI UTILITY DISTRICT 2012 Sewer -3% rate increase, reduced borrowing.xls 1. Enterprise Fund revenue is from customer service charges and Capital Outlay Reserve revenue is from capacity fees and grants. Borrowings fund capital improvements. 2. Capital Outlay includes the Engineering Dept expenditures. Enterprise Fund contains all other departments. 3. Interest expense is paid from the Enterprise Fund. Principal is paid from the Capital Outlay Reserve. 4. A cash reserve equal to two months of O &M expenses is maintained for operations The remaining cash reserve is designated for Capital Outlay projects. 5. The Board established the Rate Stabilization Fund (RSF) on April 15, 2004. In the event of a large and sudden loss of revenue or increase in costs these funds will be used to avoid dramatic changes in sewer service charge rates. The RSF is equal to one years property tax receipts less transfers to other jurisdictions. See the Ten -Year projection pages for more extensive notes. / 3/2011