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Council weighs $900,000 internal transfer and phased 6% revenue increase to shore water reserves
Summary
Staff showed a Scenario 2 that combines a $900,000 transfer from other enterprise funds and a 6% revenue increase split over two years (3% each year). That option improves reserves but falls short of the 180‑day target without an additional roughly $268,000 in revenue; members debated impacts to sewer and storm funds if transfers are used.
Staff presented a mid‑path option that pairs a modest, phased revenue increase with internal transfers. In the model, a $900,000 transfer into the water fund along with a 6% revenue increase split across two years (3% each year) boosts reserves to roughly 116 days cash on hand but still falls short of the 180‑day target unless the city adds another roughly $268,000 in revenue.
Councilmembers raised concerns about taking money from other enterprise funds. Staff cautioned each enterprise fund should be able to stand on its own and noted the model treated transfers as grants (not repaid). “Every fund should be able to operate on their own feet and stand on their own fee,” S4 said. Council asked staff to show how different split scenarios (for example, taking less from storm and more from sewer) would affect each fund’s capacity to complete planned capital work.
