REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Chris Davis, Senior Management Analyst
Subject:
title
Amend Fiscal Year 2026/27 West Orange County Water Board (WOCWB) Budget by $4,600,000 to Return Unexpended Cathodic Protection Program Funds to Member Agencies' Water Enterprise Funds Based on Ownership Percentage
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Statement of Issue:
WOCWB currently holds a fund balance of $7.6 million. This balance is the result of pre-financing for the Cathodic Protection Program. However, now that the Cathodic Protection Program is no longer necessary, these funds are no longer intended for a specific project, and the Board could return them to member agency's enterprise funds.
Financial Impact:
Approval of the budget amendment would reduce the WOCWB fund balance to approximately $2,000,000. Funds in the amount of $2,580,600 would be added to the City's Water Master Plan Fund (507) undesignated unreserved fund balance.
Recommended Action:
recommendation
Approve budget amendment and return funds to member agency's water enterprise funds.
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Alternative Action(s):
Do not approve budget amendment and maintain current fund balance with WOCWB and direct staff accordingly.
Analysis:
The City is a member of the West Orange County Water Board (WOCWB) Joint Powers Authority. The individual member agencies of WOCWB need to approve the proposed WOCWB budget amendment prior to ratification by the Board as a whole.
The Board currently holds a fund balance of $7.6 million as of June 30, 2026. This high balance is the result of pre-financing for the Cathodic Protection Program. However, the Cathodic Protection Program is no longer necessary, and these funds are no longer intended for a specific project - therefore, the Board could return them to member agencies.
In 2020, Engineering staff presented to the WOCWB Board of Direc...
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