Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sewer Fund Transfer topic
No spam. Unsubscribe anytime.
Council approves $609,000 transfer from general fund to shore up sewer enterprise fund
Summary
Sierra Vista City Council approved a transfer of about $609,000 from the general fund to the sewer fund to cover a note tied to Pueblo Del Sol infrastructure, council was told the move preserves sewer ratepayer equity and maintains council reserve goals.
Sierra Vista City Council on Feb. 13 authorized a $609,000 transfer from the general fund to the sewer enterprise fund to cover the remaining balance of a note tied to infrastructure work related to the Pueblo Del Sol acquisition.
Finance staff explained the balance "after they made their July payment was $609,000 and change," and said the transfer should not be borne by sewer ratepayers because the general fund had excess revenues for fiscal year 2024. Finance staff told the council that, including the transfer, the general fund estimated fund balance for fiscal year 2024 would finish at about $10.5 million, meeting the council's strategic goal of roughly two months of reserves.
"The importance of transferring the $609,000 to the sewer fund is the fact that is an enterprise fund...the loss of the $609,000 of revenue should not be borne by the rate payers," the finance director (Mister Toots) said during the staff presentation. Councilwoman Lambert moved the resolution to transfer funds; it was seconded and passed on voice vote.
Council members did not attach specific new conditions to the transfer. Staff said the action improves the sewer fund's cash position and aligns with previously approved terms when the city accepted the Pueblo Del Sol facilities.
The transfer will be recorded in the fiscal-year accounting close for FY24 and is intended to maintain the enterprise fund's operations and protect ratepayers from absorbing the legacy shortfall.
