A Resolution of the City Council of Homer, Alaska, Setting a Minimum of $200,000 to Water/Sewer Depreciation Reserves Annually Through the Budget Process; Additionally, Any Residual Amount at Year End is to be Transferred to the Water/Sewer Depreciation Reserves. Roberts.
CITY OF HOMER
A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, SETTING A MINIMUM OF $200,000 TO WATER/SEWER DEPRECIATION RESERVES ANNUALLY THROUGH THE BUDGET PROCESS; ADDITIONALLY, ANY RESIDUAL AMOUNT AT YEAR END IS TO BE TRANSFERRED TO THE WATER/SEWER DEPRECIATION RESERVES.
WHEREAS, When compiling the budget, the current practice is that the amount of depreciation reserves transferred annually is set during the budget cycle; and
WHEREAS, It would be beneficial to set the amount transferred to depreciation reserves by the residual amount at year end; and
WHEREAS, By amending the procedure to set water/sewer depreciation reserve transfers to the net change, it would allow the economy time to recover and build depreciation reserves by only what the utility can afford; and
WHEREAS, This is classified as the “change in fund balance” in the financial statements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska, approves setting a minimum of $200,000 to water/sewer depreciation reserves annually through the budget process; additionally, any residual amount at year end is to be transferred to the water/sewer depreciation reserves.
PASSED AND ADOPTED by the Homer City Council this 27th day of June, 2011.
CITY OF HOMER
JAMES C. HORNADAY, MAYOR
JO JOHNSON, CMC, CITY CLERK
Fiscal information: N/A