here - City of Reedley

STREETSCAPE FUND 036
Fund 036 is the Downtown Parking and Improvement District commonly referred to by Staff as the
“Streetscape” fund. Each business owner in the downtown district area is assessed a monthly fee
that is restricted for the maintenance and improvement of the district’s street trees, ground cover
and benches.
AIRPORT FUND 041
The Airport fund (041) is an enterprise fund. The budget document reflects working capital (current
assets less current liabilities) as the fund balance. As an enterprise fund, only airport related costs
and revenues are allowed. An enterprise fund should be operated as a public sector business.
Operational revenues should always be monitored and compared to the operational expenses.
WATER FUND 050
The water fund (050) is another enterprise fund. The responsibilities for the water system are
shared between two departments – billing & collection and maintenance & operation, handled
respectively by Finance and Public Works. The budget document reflects working capital for the
fund balance. Only activities directly related to the City’s water system may be accounted for here.
In May 2007, the City sold $15,250,000 in water bonds to fund the city-wide meter program and
water storage towers. Bonds were insured and issued at a AAA rating with an underlying BBB+
rating and are scheduled to be repaid in full on June, 2038. Water rates can automatically be raised
on an annual basis, April 1 st , by a 10-year rolling CPI inflationary factor not to exceed 2.5%.
SEWER FUND 052
The sewer fund (052) is also operated as an enterprise fund with responsibilities shared between
Finance and Public Works. The budget document reflects working capital for the fund balance. In
1995 the City issued a $2.2 million dollar bond for treatment plant expansion purposes. This issue
was refinanced in December, 2001 at lower interest rates and it is scheduled to be repaid in full in
2015. In April 2007, the City sold $4,155,000 in additional sewer bonds to fund the wastewater
treatment plant expansion / upgrade project. Bonds were insured and issued at a AAA rating with an
underlying BBB+ rating and are scheduled to be repaid in full on June, 2037. In October 2007 the
City executed a State Revolving Fund loan in the amount of $26,964,921 for the wastewater
treatment plant expansion / upgrade project. These funds are being received on a reimbursement
bases and are scheduled to be repaid in full August, 2029 at a 2.4% interest rate. Only those items
directly related to the City’s sewer system may be charged to this fund. Sewer rates can
automatically be raised on an annual basis, July 1 st , by a 10-year rolling CPI inflationary factor not to
exceed 2.5%.
SEWER SRF FUND 051
Part of the contract requirement for the State Revolving Fund Loan obligated the City to create a
new fund (051) called the Sewer SRF Loan Fund. The City is required to deposit 10% of the sewer
revenue as a reserve into this fund for future SRF loan payments. This transfer is now made on a
quarterly basis based upon actual revenue. Transfers will continue until a maximum cash amount of
10% of the SRF loan ($2,696,492) has been reached.
DISPOSAL FUND 053
The final enterprise fund is the disposal fund (053). The budget document reflects working capital
for the fund balance. Again, the responsibilities are shared between Finance and Public Works, and
only those items directly related to the disposal service can be charged to this fund.
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CITY OF REEDLEY
ADOPTED BUDGET 2013-2014