The preliminary budget hearing regarding so-called enterprise funds, special revenue funds and capital projects for the 2012-2016 fiscal year came before the El Centro City Council on Tuesday, with some funds showing a slight decrease.
These categories of funds are separate from the general fund, said Finance Director Leticia Salcido.
The enterprise fund encompasses water and wastewater funds for the operation of plants and sewer lines.
Projected revenues for the water funds are about $8.2 million, Salcido said, and show a slight decrease of $4,000, according to a report to the council.
The amount “is pretty much aligned with the same level of revenues as this year,” she said, and has been the average for the past four years.
On top of that the city is expected to begin this coming fiscal year with about $8.7 million, according to a report to the council.
Meanwhile operating expenses are about $5.2 million, Salcido said.
After designating the reserve, debt payments and other expenditures, the fund is left with some $1.6 million of undesignated money, according to the report.
This remaining balance is somewhat low and not sufficient to cover unforeseen circumstances like earthquake damage, she said.
The wastewater fund has a budget of about $7.5 million, said Salcido, and has a beginning working balance of $368,000.
Operating expenses are about $4.3 million, according to the report, and after debt payments, setting the reserve fund and major equipment replacement, the undesignated fund is zero.
“This is somewhat of a challenge,” Salcido said, and noted that reserves need to be built up.
Special revenue funds, which are mostly grants restricted for specific projects such as the skate park, are expected to have a total balance of $28.5 million by the end of fiscal year 2013, said Salcido.
Olive Garden gets city's assistance
The city committed to a reimbursement agreement of $133,000 in fees with Darden Restaurants Inc., parent company of Olive Garden.
The restaurant will be located at the southern corner of Dogwood Avenue and Danenberg Drive near the Imperial Valley Mall.
The dissenting vote in the decision came from Councilwoman Cheryl Viegas Walker.
If Olive Garden was going into an area that needed development, she would support the measure, Viegas Walker said.
“But, in my mind, I think, we don’t need to jump start development in the area of the mall,” she said.
Darden Inc., meanwhile, committed to create at least 60 jobs.
Meeting glance
Here are three other issues decided at Tuesday’s City Council meeting:
1 - The public hearing date regarding a proposed water and wastewater rate increase was set for June 19.
2 - The city’s Regional Bus Transfer Station project was sent out to bid. The station will be built at Seventh and State streets at an estimated cost of $3.2 million, according to a report.
3 - The city’s graffiti ordinance was amended adding responsibility of these violations upon parents or guardians of minors.
Staff Writer Alejandro Davila can be reached at 760-337-3445 or adavila@ivpressonline.com
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