City Council approves $1.316 million transfer to water/sewer fund tied to prior property purchase and sale

The City Council on May 20 approved a resolution transferring $1,316,213 from the general fund to the water and sewer utility fund to reimburse that utility fund for the original purchase of property at 10851 Rollerson Ranch Road.

Finance Director Jim Ingram explained that the city bought the Rollerson Ranch site in 2023 with the intent of constructing a wastewater treatment facility, but staff later determined the site was infeasible for that purpose. The purchase had been paid from the water and sewer fund; the city subsequently sold the property and netted $5,361,975. Auditors recommended returning an amount equal to the original purchase to the water and sewer fund to keep the utility fund whole. The council approved the transfer by voice vote with no nays.

Ingram said the transfer, together with other previously approved one‑time appropriations in FY25, will reduce the city’s general fund unassigned‑fund‑balance‑to‑expenditures ratio to an estimated 35–37.5% by the end of FY25, which staff said remains above council’s 25% target. Councilmember Fernandez reiterated that utilities typically operate as enterprise funds financed by user fees and that reimbursing the water/sewer fund restores fund equity.

No member requested further changes; the resolution passed. Staff noted the transfer enables city plans to use a portion of the sale proceeds for general‑fund capital projects, including public safety facilities, while reimbursing the utility fund for its original outlay.

Less urgent: Ingram noted the city realized a net gain on the 2023 sale after covering the original purchase price.