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HomeMy Public PortalAboutRES 94/19RESOLUTION NO. 94 -19 A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, FLORIDA, ESTABLISHING POLICIES FOR THE DISPOSITION OF SURPLUS WATER CONSERVATION REVENUES THAT MAY BE RECEIVED BY THE TOWN WATER SYSTEM; PROVIDING FOR DEFINITIONS; PROVIDING PRIORITIES FOR THE DISPOSITION OF SURPLUS WATER CONSERVATION REVENUES; PROVIDING FOR PROCEDURES FOR DETERMINING THE DISPOSITION OF SAID REVENUES; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Town of Gulf Stream owns and operates a potable water distribution system; and WHEREAS, the Town operates said water distribution as an Enterprise Fund in accordance with applicable Florida law; and WHEREAS, the Town Commission of the Town of Gulf Stream, Florida has adopted rates for water use by customers of the water system, which rates are structured to encourage water conservation by assessing a water conservation surcharge against those customers who do not conserve water; and WHEREAS, the failure of customers to conserve water may result in the collection of surplus water conservation revenues by the Town's water system; and WHEREAS, it is the desire of the Town Commission to establish policies as to the disposition of surplus water conservation revenues. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, FLORIDA THAT: Section 1. Definitions: The following definitions shall apply to those terms as used in this Resolution: General Fund. The general operating fund of the Town of Gulf Stream, Florida. Surplus Water Conservation Revenues. The revenues received by the water system from water conversation surcharges. Town. The Town of Gulf Stream, Florida. Town Commission. The Town Commission of the Town of Gulf Stream, Florida. Water Conservation Surcharge. Charges assessed for water consumption above and beyond that necessary to adequately service a property with water for domestic consumption and reasonable irrigation consumption, which charges are imposed strictly as a means to encourage water conseLvatiOn and 1-.0t as a mear;s to generate revenue required to properly operate, maintain or enhance the water system. Water System. The water distribution system owned and operated by the Town of Gulf Stream as an Enterprise Fund in accordance with applicable Florida law. Section 2. Priorities: The following priorities for the disposition of surplus water conservation revenues are hereby established: 1. Primary. The following dispositions of surplus water conservation revenues, in no particular order or rank, shall be primary priorities for the disposition of surplus water conservation revenues and shall take precedence over all other methods of disposition and all other priorities listed herein: a) Contributions to unanticipated, unbudgeted, or under - budgeted water system repairs and replacements serving a public interest. b) Contributions to unanticipated, unbudgeted, or under - budgeted water system capital improvements serving a public interest. C) Contributions to unanticipated, unbudgeted, or unfunded water system revenue shortfalls from sources other than water conservation surcharges. d) Contributions to unanticipated, unbudgeted, or under - budgeted water system water purchases. e) Contributions to other unanticipated, unbudgeted, or under - budgeted water system operating and maintenance expenses. f) Contributions to water system funds necessary to meet the terms and conditions imposed by lenders or bond holders to which the water system is indebted. g) Contributions to advanced principal and /or interest payments on outstanding water system indebtedness. 2. Secondary. The following dispositions of surplus water conservation revenues, in no particular order or rank, shall be secondary priorities for the disposition of surplus water conservation revenues and shall be subversive to those dispositions identified herein as primary priorities but shall take precedence over all other methods of disposition and all other priorities listed herein: a) Contributions to water system renewal, replacement or capital improvement reserve funds. b) Contributions to water system reserve funds used to offset future water system rate or user fee increases. 3. Tertiary. The following dispositions of surplus water conservation revenues, in no particular order or rank, shall be tertiary priorities for the disposition of surplus water conservation revenues and shall be subversive to those dispositions identified herein as primary and secondary priorities but shall take precedence over all other methods of disposition and all other priorities listed herein: a) Contributions to water system expenses for water conservation programs including, but not limited to, promotional, educational, regulatory, enforcement and monitoring activities. b) Contributions to water system reserve funds used to reduce water rates or user fees in future years. C) Contributions to any other water system expenditures, with the exception of direct transfers to the General Fund. 4. Quaternary. The following dispositions of surplus water conservation revenues, in no particular order or rank, shall be quaternary priorities for the disposition of surplus water conservation revenues and shall be subversive to those dispositions identified herein as primary, secondary, or tertiary priorities. a) Transfers to the General Fund over and above budgeted amounts. b) Any other expenditures or contributions not directly related to the water fund. E Section 3. Procedures. The following procedures shall be followed to dispose of surplus water conservation revenues: 1. Within thirty (30) days of the Town Commission's acceptance of the annual independent auditor's Financial Statements report, the Town Finance Director shall present to the Town Commission a report which provides the total amount of surplus water conservation revenues, if any, received by the water system in the previous fiscal year and recommendations as to the best disposition(s) of said funds in accordance with the priorities established herein. 2. Within thirty (30) days of receipt of the Town Finance Director's report the Town Commission shall do the following: a) Certify the total amount of surplus water conservation revenues received by the water system in the previous fiscal year. b) Review the Town Finance Director's recommendations and the priorities contained herein and propose a disposition(s) of said revenues which best serves the public interest of the residents of the Town of Gulf Stream. C) If a proposed disposition is not identified herein as a primary priority, the Commission shall make a finding as to what special conditions and circumstances cause the proposed disposition to take precedence over those dispositions which are given higher priorities herein. d) Adopt the proposed disposition and any required findings in the form of a resolution. If a proposed disposition is not identified herein as a primary priority, passage of the resolution shall require a four - fifths (4/5's) or greater majority vote of the entire membership of the Town Commission. 3. Failure of the Town Commission to take action regarding any surplus water conservation revenues in the manner prescribed herein shall result in the automatic disposition of said revenues into the water system Capital Improvement reserve fund. Should such a fund not exist, then the revenues, and any interest they may generate, shall be held in savings. In any event, the use of these revenues shall be restricted solely to those dispositions identified herein as primary priorities or for the renewal, replacement or capital improvements of the water system, until the Commission may decide otherwise in the manner prescribed herein. Section 4. Effective Date. This resolution shall become effective immediately upon passage. PASSED AND ADOPTED this 18th day of November, 1994. / TOWN OF GULF STREAM, FLORIDA COMMISSIONER t �J1 s SEA;)' ATTEST: OWN CI&RK ' 3 COMMISSIONER SSIONER ISSIONER A • JY