19-R-76 - Budget Amendment to the SSLGC FY 2018-19 Budget and transferRESOLUTION NO. 19 -R -76
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING THE SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION (SSLGC) BUDGET AMENDMENT FOR
FISCAL YEAR 2018 -2019 IN THE AMOUNT OF $3,000,000. AS A
TRANSFER TO THE SSLGC REPAIR/REPLACEMENT FUND AND IN
THE AMOUNT OF $500,000. AS A TRANSFER TO THE RATE
STABILIZATION FUND AND OTHER MATTERS IN CONNECTION
THEREWITH.
WHEREAS, the Schertz Seguin Local Government Corporation (SSLGC) has a retained
earnings policy that sets a reserve operating fund balance at three months of operating revenue;
and
WHEREAS, after the Fiscal Year 2017 -2018 Comprehensive Annual Financial Report was
completed, it showed that the SSLGC reserve operating fund balance exceeded its recommended
balance by over $3,500,000; and
WHEREAS, the SSLGC Board of Directors has recommended and approved reallocating
$3,000,000 to the SSLGC Repair/Replacement Fund for use in future water system improvement
projects and /or for unanticipated maintenance or repairs and $500,000 to the Rate Stabilization
Fund; and
WHEREAS, the City staff of the City of Schertz (the "City ") agrees with the SSLGC
Board's action and has recommended that the City approve the Schertz /Seguin Local Government
Corporation Fiscal Year 2018 -2019 budget amendment; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
approve the budget amendment to ensure that the citizens and businesses of Schertz continue to
receive excellent and vital water service.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the approval of the Schertz /Seguin
Local Government Corporation Fiscal Year 2018 -2019 budget amendment.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City Council
hereby declares that this Resolution would have been enacted without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final passage,
and it is so resolved.
PASSED AND ADOPTED, this 25th day of June, 2019.
ATTEST:
l.ts
City Secretary, Brenda Dennis
CITY OF SCHERTZ, TEXAS
Resolution # SSLGC R19 -02
A RESOLUTION AMENDING THE FISCAL YEAR 2019 SCHERTZ SEGUIN LOCAL GOVERNMENT
CORPORATION BUDGET.
NOW, THEREFORE, BE IT RESOLVED THAT THE FISCAL YEAR 2019 SCHERTZ SEGUIN LOCAL
GOVERNMENT CORPORATION BUDGET IS AMENDED AS FOLLOWS:
Schertz- Seguin Local Government Corporation Operating Fund
Amount Increase: Increase:
$3,000,000 SSLGC - Operating SSLGC- Operating
Intragovernmental Transfers Non - Departmental
Transfers to Repair & Replacement Fund Use of Retained Earnings
058 -9000- 826100 058- 9800 - 960000
Reason requested: The Corporation has a Retained Earnings policy. This policy set a threshold for the
minimum retained earnings to be held in the operating fund. This minimum policy was
set at three months operating expenditures. Based upon this policy and the results of the
audit, there is $3,500,000 above this threshold available for use.
Amount Increase: Increase:
$ 500,000 SSLGC - Operating SSLGC- Operating
Intragovermental Transfers Non - Departmental
Transfers to Rate Stabilization Fund Use of Retained Earnings
058 -9000- 825700 058 -9800- 960000
Reason requested: To transfer the remaining required funds to the Rate Stabilization Fund as approved by the
Board in 2017 in the Rate Stabilization Policy.
Repair and Replacement Fund
Amount Increase:
$ 171,500 Repair and Replacement Fund
Capital Outlay
Instrumentation & Automation
061 - 9000 - 703000
$ 611,450 Repair and Replacement Fund
Capital Outlay
Pipeline Maintenance
061 - 9000 - 703000
$ 422,650 Repair and Replacement Fund
Capital Outlay
Plant & Pump Station Maintenance
061 -9000- 703000
Increase:
Repair and Replacement Fund
Intragovernmental Transfers
Transfers from Operating Fund
061 - 391058
Repair and Replacement Fund
Intragovernmental Transfers
Transfers from Operating Fund
061 - 391058
Repair and Replacement Fund
Intragovernmental Transfers
Transfers from Operating Fund
061 - 391058
$ 1,794,400 Repair and Replacement Fund
Intragovernmental Transfers
Transfers from Operating Fund
061 - 391058
Resolution # SSLGC R19 -02
Repair and Replacement Fund
Retained Earnings
061- 297020
Reason requested: The Corporation has a Retained Earnings policy. This policy set a threshold for the
minimum retained earnings to be held in the operating fund. This minimum policy was
set at three months operating expenditures. Based upon this policy and the results of the
audit, there is $3,500,000 above this threshold available for use. $1,197,850 of this
amount will be used to provide for repairs, maintenance and upgrade of existing facilities
per the needs assessment conducted by the new Operations Manager.
Rate Stabilization Fund
Amount Increase: Increase:
$ 500,000 Rate Stabilization Fund Rate Stabilization Fund
Intragovernmental Transfers
Transfers from Operating Fund Retained Earnings
057 - 391058 061- 297020
Reason requested: To transfer the remaining required funds to the Rate Stabilization Fund as approved by the
Board in 2017 in the Rate Stabilization Policy.
The Board of Directors of the Schertz- Seguin Local Government Corporation finds that these budget adjustments
are required because changes and unforeseen conditions that could not have been anticipated in the original budget.
This resolution shall become effective and applicable on the date of its approval and passage.
PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ- SEGUIN LOCAL
GOVERNMENT CORPORATION, on this the 18m day of April, 2019.
T& V
President
Schertz- Seguin Local Government C Irporation
ATTEST:
-A�
Secretary
0
Assistant Secretary