1995-04 Capital Replacement Fund
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RESOLUTION NO. 95-04
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE CARDIFF SANITATION 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 Cardiff Sanitation 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 Cardiff
Sanitation District does, hereby, establish a policy to ensure adequate 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 Reserve/Revenue
The budgeted operating fund reserve/revenue for the District shall be set at
approximately 25% of the operating expenseso
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 expenditureso
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PASSED AND ADOPTED at a meeting of the Board of Directors on the 10th day of
May
, 1995, by the following vote, to wit:
AYES: Aspell, Bond, DuVivier, Hano
NAYS: None
ABSENT: Davis
ABSTAIN:
None
ATTEST:
Ql~~~
Deborah Cervone, Clerk of the Board
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