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Council reviews water-fund model showing need for internal transfers and cash recovery timeline
Summary
The finance model (built by Zions) shows potential near-term negative days-cash-on-hand under some scenarios and proposes one-time transfers and modest short-term expenditures; staff recommended cautious assumptions and returned projected days-cash-on-hand and capital spending timelines.
Peter reviewed the water-fund projections from the Zions model and told the council staff built in an illustrative additional revenue target of about $104,000 under certain rate scenarios. He said he conservatively included a $200,000 one-time expenditure buffer in year 1 and projected the fund would require an internal transfer (approximately $552,000 in the model) to avoid near-term negative cash-outcomes.
Using the inputs discussed, staff showed the fund could finish the current year with an estimated -7 days cash on hand under that conservative build, but projected recovery to roughly 151 days in subsequent years and the capacity to fund upward of $650,000 in capital by year 3 if the revenue and transfers materialize. Council members discussed phasing transfers, the timing of projects, and whether to adjust tier increases to reach the $104,000 target while minimizing transfers from sewer and storm funds.
