City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 08/11/2026
Subject: Enterprise Fund and Landscape Maintenance District transfers RECOMMENDED ACTION:
Approve this resolution for the 2025-26 fiscal year that authorizes transfers from (1) Enterprise Operating Funds to Enterprise Capital Reserve Funds, (2) General Fund to CNG Station Capital Reserve Fund, (3) General Fund to CalPERS Contingency Fund (funds invested in a Section 115 Trust), and (4) Street & Road Operating Fund to the LTF Transit Fund.
BACKGROUND:
At the end of each fiscal year, transfers are analyzed from (1) Enterprise Operating Funds to Enterprise Capital Reserve Funds, (2) General Fund to CNG Station Capital Reserve Fund, (3) General Fund to the CalPERS Contingency Fund (funds invested in a Section 115 Trust), and (4) Street & Road Operating Fund to the LTF Transit Fund.
DISCUSSION/ANALYSIS:
Enterprise Funds to Enterprise Capital Reserve Funds
The Enterprise Fund Rates and Cash Flow Study prepared by Municipal Financial Services established Enterprise Fund customer rates that provide the needed revenue to fund the annual operations of the service and the required annual transfer to fund the future replacement of capital items.
At the end of the fiscal year, each Enterprise Fund’s operating cash flow is evaluated and available funds are transferred to the appropriate Enterprise Capital Fund, as long as the enterprise operating fund minimum balance is maintained. In addition, adjustments were made in 2025-26 fiscal year to account for the final accounting to close out the funding of the Water Meter Surcharge Project as the majority has been receive by customers through the 10-year payment plan. The Water Meter Installation Project that began in 2015 incurred total costs of $2,148,018. Over a 10-year repayment period, $1,990,921 was collected from customers to reimburse the capital fund for the project. This repayment period is done and the fund is short $157,097.68, so the Water Enterprise Fund will transfer this amount to the Water Enterprise Capital Fund in order to fully fund that project.
The following table summarizes the fiscal year 2025-26 cash flow and recommended transfer to each Enterprise Capital Fund.
Table 1
FY 2025-26
Fund Beginning
Balance Income Expenses
Balance
Prior to
Transfer
Transfers Ending
Balance
Water Operating $926,514 $3,947,5911
($3,354,181) $1,519,924 ($593,410) $926,514
Sewer Operating $697,426 $2,339,822 ($1,587,504) $1,449,744 ($752,318) 2 $697,426
Garbage
Operating $211,230 $3,069,914 ($3,020,095) $261,049 ($49,819) $211,230 Water Enterprise
Capital $8,448,128 $481,547 ($86,001) $8,843,674 $593,410 $9,437,084 Sewer Enterprise
Capital $1,202,166 $314,286 ($102,871) $1,413,581 $355,580 $1,769,161 Sewer WWTP
Reserve $2,370,921 $90,437 ($25,361) $2,435,997 $396,738 $2,832,735 Garbage
Enterprise Capital $694,420 $20,436 ($505,577) $209,279 $49,819 $259,098 Storm Drain
Enterprise Capital $28,265 $556 ($20,372) $8,449 $8,449
1. Water Operating and Water Enterprise Capital Funds income include transfer of water meter surcharge fee collected during the fiscal year of $2,602 plus the close out of the project of $157,098.
2. Sewer projected transfer is $355,580 for Capital Repair and Replacement and $396,738 for WWTP Reserve.
Each of these capital reserve funds are under the minimum balance required for future capital replacement needs.
General Fund to CNG Station Capital Reserve Fund
Each year we evaluate the rate at which CNG is sold at the fueling station on Doak Boulevard to ensure operating costs are recovered plus funds necessary to replace capital items in the future are reserved. At the end of the fiscal year, the CNG station cash flow is evaluated and available funds are transferred to the CNG Station Capital Reserve Fund.
Table 2
FY 2025-26
Fund Beginning
Balance Income Expenses
Balance
Prior to
Transfer
Transfers Ending
Balance
CNG Operating Activity $ 0 $221,463 ($131,105) $90,358 ($90,358) $ 0 CNG Station Capital Reserve $300,650 $68,146 $0 $368,796 $90,358 $459,154 After the proposed transfer above is made, the CNG Station capital reserve fund is under the minimum balance required for future capital replacement.
General Fund to CalPERS Contingency Fund (invested in a Section 115 Trust with PARS) In 2020, Redevelopment bonds were refinanced, creating additional property tax income that will be distributed to the General Fund for fiscal years 2021-2022 to 2025-2026, as shown in the table below.
Table 3
Fiscal Year Savings
2021-2022 $157,569
2022-2023 $161,861
2023-2024 $161,805
2024-2025 $162,117
2025-2026 $136,064
Total Savings $779,416
At the March 2022 Strategic Planning meeting, City Council directed these savings to be used to mitigate the City’s unfunded liability related to the City’s sworn police officer’s CalPERS defined benefit retirement. As of the June 30, 2024 CalPERS Valuation Report, the City’s CalPERS unfunded liability is $6,959,317.
For Fiscal Year 2025-26, $136,064 will be transferred to the Section 115 Trust, which is dedicated to prefund employer contributions and unfunded liabilities related to the CalPERS defined benefit pension system, which is offered to City sworn police officers. This will be the last year where a savings from refinancing the RDA bonds will be generated.
In September 2022, the City Council approved Resolution 22-39 adopting investment guidelines for this Section 115 Trust. In addition to the investment guidelines, this resolution states that these funds can be used to pay CalPERS expenses when there is a deficit in the City’s General Fund with City Council concurrence, or as directed by the City Council.
The 115 Trust balance after the transfer is made will be $2,388,014.98.
Bike Bridge Expenses funded through LTF Set-Aside Funds.
The total cost to repair the bike bridge after being damaged from a tree landing on it during a wind storm was $562,043.35. The cost of these repairs were incurred and allocated to the Street & Road Operating Fund over two fiscal years, as described below:
Fiscal Year 2024-25: $43,754.96
Fiscal Year 2025-26: $518,288.39
These repair expenses can be funded through the LTF Transit Fund. For that reason, the Fiscal Year 2025-26 repair expense of $518,288.39 is recommended to be transferred from the Street & Road Operating Fund to the LTF Transit Fund. The Fiscal Year 2024-25 expenses were previously transferred to the LTF Transit Fund. In addition, the insurance proceeds received in Fiscal Year 2025-26 of $497,043.34 were initially deposited in the Street & Road Operating Fund and also need to be transferred to the LTF Transit Fund The expense of the repairs has been offset by proceeds from the City’s property insurance claim and the financial assistance from San Joaquin Council of Governments and Stanislaus County, which have been deposited in the LTF Transit Fund. The total financial impact to the LTF Transit Fund is $2,000.
RESOLUTION NO. 26-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON AUTHORIZING THE TRANSFER OF CERTAIN
MUNICIPAL FUNDS
WHEREAS, the City Council of the City of Ripon is desirous of transferring certain funds to capital reserve funds as hereinafter set forth; and
WHEREAS, it is necessary that the balance of certain funds as hereinafter indicated, be adjusted and certain transfers made in order to properly reflect the correct balance of said funds for the period from July 1, 2025 through June 30, 2026; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ripon that the following transfers of the City of Ripon be and the same are hereby authorized and approved by the City Council of the City of Ripon as hereinafter specifically set forth:
1. The transfer of $593,409.98 from the Water Fund of the City of Ripon to the Capital Reserve Fund of the Water Department of the City of Ripon.
2. The transfer of $2,602.05 from the Water Fund of the City of Ripon to the Capital Reserve Fund of the Water Department of the City of Ripon, for the current year’s collection of water meter surcharge.
3. The transfer of $157,097.68 from the Water Fund of the City of Ripon to the Capital Reserve Fund of the Water Department of the City of Ripon, for the close out of the water meter surcharge project as the majority has been received by customers through a 10-year payment plan.
4. The transfer of $355,579.79 from the Sewer Fund of the City of Ripon to the Capital Reserve Funds of the Sewer Department of the City of Ripon.
5. The transfer of $396,738.15 from the Sewer Fund of the City of Ripon to the Wastewater Treatment Plant Contingency Fund of the Sewer Department of the City of Ripon.
6. The transfer of $49,818.61 from the Refuse Fund of the City of Ripon to the Capital Reserve Funds of the Refuse Department of the City of Ripon.
7. The transfer of $90,357.64 from the General Fund of the City of Ripon to the CNG Station Capital Reserve Fund for net income of the CNG Station during this fiscal year.
8. The transfer of $136,064.27 from the General Fund of the City of Ripon to the CalPERS Contingency Fund for the savings due to the refinancing of the Redevelopment Bonds.
9. The transfer of $518,288.39 from the Transit Fund to the Street & Roads Fund for the use of LTF set aside funds to cover the expenses to repair the bike bridge.
10. The transfer of $497,043.34 from the Street & Roads Fund to the Transit Fund for insurance proceeds receive in fiscal year 2025-26 to cover the expenses to repair the bike bridge.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 11th day of August, 2026, by the following vote:
RESULT: ADOPTED BY CONSENT VOTE [UNANIMOUS]
MOVER: Michael Restuccia, Council Member
SECONDER:Leo Zuber, Council Member
AYES: Barton, Uecker, Restuccia, Zuber, de Graaf
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
GARY BARTON, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk