EXHIBIT 7-A

RESOLUTION NO. 2004-__

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

AUTHORIZING A TRANSFER OF FUNDS FROM THE

CONSERVATION FUND TO THE CAPITAL PROJECTS FUND

WHEREAS, the Monterey Peninsula Water Management District holds a variety of funds that derive from tax proceeds, user fees, connection charges, special assessments and other revenue sources; and

WHEREAS, separate fund accounts have been established by the Monterey Peninsula Water Management District to ensure accurate records are maintained respecting all District revenues and expenditures; and

WHEREAS, the Monterey Peninsula Water Management District is authorized by statute to establish and maintain separate funds and accounts as it deems necessary to carry out the purposes of the Monterey Peninsula Water Management District Law and the District may establish additional separate funds, as it shall from time to time determine; and

WHEREAS, the Monterey Peninsula Water Management District is authorized by statute to create and administer revolving funds to facilitate and assist in carrying of and completing of any acquisition, work or improvements relating to the purposes of the District; and

WHEREAS, Ordinance No. 67 adopted in 1993 reallocated 1.110% of the District’s user fee from the Conservation Fund to conservation, rationing, irrigation, erosion control, mitigation, water planning and/or water augmentation; and

WHEREAS, the 1.110% has been consistently applied to the Water Conservation Fund since 1993 and the fund it is projected to have in access of $500,000 in general reserves as of June 30, 2004; and

WHEREAS, it is projected that the Capital Projects fund general reserves would be in a deficit position of approximately $500,000 by June 30, 2004 if no action were taken.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF MONTEREY PENINSULA WATER MANAGEMENT DISTRICT authorizes a transfer of $500,000 from the Conservation Fund to the Capital Projects Fund; and

RESOLVED FURTHER that this is an appropriate transfer of funds and need not be repaid to the originating fund.

On motion by Director ___________, and seconded by Director ____________, the foregoing resolution is duly adopted on this 19^th day of April 2004 by the following votes:

AYES:

NOES:

ABSENT:

I, Fran Farina, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify that the foregoing is a full, true, and correct copy of a resolution duly adopted this 19^th day of April 2004.

Witness my hand and seal of the Board of Directors this __^th day of April 2004

________________________________

Fran Farina, Secretary to the Board

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