1995-06 Operating Fund Reserve
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. RESOLUTION NO. 95-06
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE SAN DIEGUITO WATER DISTRICT APPROVING POLICY
TO ESTABLISH THE AMOUNT OF THE OPERATING FUND RESERVE
AND THE TRANSFER OF EXCESS OPERATING FUND RESERVEIREVENUE
TO THE CAPITAL REPLACEMENT FUND
WHEREAS, each year the San Dieguito Water District Board of Directors adopts a
Financial Plan for revenues and expenditures, including capital projects for the upcoming fiscal
year;
WHEREAS, the Board of Directors desires to make provision for a level of service
commensurate with the needs of the District;
WHEREAS, an adequate operating fund reserve is approximately 25% of the annual
operating fund expenses.
. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the San Dieguito
Water District does, hereby, establish a policy to ensure adequa1e"operating fund reserve and to
allow for capital improvements of sewer system infrastructure, through the use of the following
policy to establish a system to transfer excess operating fund reserve/revenue to the capital
replacement fund:
A, Amount of Operatin~ Fund ReservelRevenue
The budgeted operating fund reserve/revenue for the District shall be set at
approximately 25% of the operating expenses,
B, Transfer of Excess Reserve/Revenue to Replacement Fund
Operating reserve/revenue in excess of the 25% level will be transferred to the
capital replacement fund where they will be used for future capital replacement
project expenditures,
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PWLLS G:\SR\25%REPOR.DOC 5/15/95
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. PASSED AND ADOPTED at a meeting of the Board of Directors on the ~ day of
May , 1995, by the fOllowing vote, to wit:
AYES: Directors Davis, Bond, Aspell, Hano & DuVivier
NAYS: None
ABSENT: None
ABSTAIN: None
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V't.
Davis, President of the Board
an Dieguito Water District
A ITES~ J
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. Lauren M, Wasserman, Secretary
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PWLLS G: ISR\25%REPOR.DOC 5/15/95