REPORT TO THE CITY COUNCIL
June 25, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: HENRY McLAUGHLIN, Business Manager
Department of Public Utilities - Water Division
SUBJECT
Title
***RESOLUTION - 50th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 to reallocate funding for various Water System capital improvement projects to provide for the drawdown of all remaining 2010 Water System Revenue Bond proceeds and; the payment of preliminary expenditures for the 2015 Water System Revenue Bonds which were not issued during FY 2015 (Citywide) (Requires 5 affirmative votes)
Body
RECOMMENDATION
Staff recommends that the City Council approve the 50th Amendment to the Annual Appropriation Resolution No. 2014-95 to appropriate funds for the final drawdowns of 2010 Water System Revenue Bond proceeds and covering expenditures originally budgeted in the 2015 Water System Revenue Bond Fund.
EXECUTIVE SUMMARY
The Department of Public Utilities Water Division (WD) is targeting the drawdown of all remaining proceeds from bonds issued in February 2010 by June 30, 2015. These proceeds total $14.8 million and will be used for prior and current expenditures made for various improvements to the water system. Also, the 2015 Water System Revenue Bonds were not issued during FY 2015, so the preliminary expenditures totaling $4.0 million need to be transferred to available funding sources.
BACKGROUND
The City of Fresno issued bonds in February 2010 totaling $158.2 million for funding various improvements to the water system. The major project was the water meter retrofit project. The bond proceeds are held by the bond trustee and are drawn down as requests are submitted based on actual expenditures.
In 2011 and 2012, two Safe Drinking Water State Revolving Fund no-interest loans were obtained from the State of California for a combined amount of $51.4 million for the Residential Meter P...
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