Section 2 – Reserves Budget Introduction The District has set aside restricted reserves to fund specific Capital Projects as well as periodic equipment and facility replacement and major repair purposes. These reserves are:
Treatment Plant Replacement Reserve Treatment Plant Expansion Reserve Collection System Replacement Reserve Equipment Replacement Vehicle Replacement Building Reserve Collection System Local Capacity Reserve Collection System Trunk Capacity Reserve Contingency & Stabilization Fund
**The red print identifies the reserves that are not discretionary. All of the other reserves have been established by Board action and are eligible to be modified or eliminated at the Board’s discretion.
Generally, each reserve is set up for a specific purpose and regular contributions are made each year. When a major expense in an area covered by a reserve occurs, the resolution of the problem or issue is paid for out of the reserve rather than the operating budget. Using this mechanism adds predictability to the transfer process and buffers the individual rates and charges from sudden dramatic changes in any one year. Along with the budget preparation process an evaluation of the reserve structure is conducted to determine if adjustments are needed to maintain a prudent approach to planning for the District’s projects, etc. In this section each of the reserves is described and the details of what is proposed to happen next fiscal year are presented.
FY 2019-2020
Final Budget
2-1
Reserves Budget