Enclosed is a Resolution for consideration by the City Council.

As we undertake capital projects at the Wastewater Plant, we need to utilize funds that were previously set-aside in the City’s “EPA Equipment Reserve Fund.”  This Fund was created in the late 1980’s as a condition of EPA grant funding when the Wastewater Plant was upgraded.

In 2009, the City approved a Resolution to transfer most of the balance within this reserve fund to other long-term investments and reserves, leaving a balance of $250,000 within this fund.

City Staff proposes repealing the 2009 Resolution and transferring the remaining balance within the EPA Reserve Fund to Unrestricted Reserves in the City’s Sewer Fund for future appropriation for capital projects at the Wastewater Plant.

We continue to maintain healthy reserves for the Sewer Fund in other investments and reserves, as indicated within the attached Resolution.

Staff supports approval of this Resolution.