Reserve Funding for Replacement Plant

Cross post from Budget & Reserves/Pleeeese Don't:

The Water / Sewer Reserve Summary line, the numbers do not seem to add up correctly?

Sewer/Water reserve balance: $846,000 (3/31/2014)
Sewer/Water reserve funding: $125,000
Sewer/Water cost to replace : $3,000,000+ (3+ million)
Sewer/Water add'l funds required: $2,250,000+ (2 1/4+ million)

Question?
1) Why do we keep spending more each year?
2) Why do we keep putting less each year into SLR's Reserves?
3) Why did this trend start in 2010 to the present?

Note: SLR's Sewer Plant Reserves are way under funded. A Failed Sewer Plant will shut down SLR..

If this Failure was to happen in 2014, SLR does not have the money for the replacement cost for a New Sewer Plant. Who is going to Loan SLR $2,250,000 dollars, with all of SLR's unsolved issues???

We can survive with out a couple of buildings, pool, spa, potholes, park internet, but we can not Stay Open With-Out a Water Supply & a Approved Sewer Plant. PERIOD.

We Have A Spending Problem...
If I am wrong, please tell me what I am missing?