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HomeMy WebLinkAbout2000-02-22 Ordinance 4615ORDINANCE NO. 4615 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 1998-99 WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto and as set forth in Section 2.28.070 of the Palo Alto Municipal Code, the Council on June 22, 1998 did adopt a budget for fiscal year 1998-99; and WHEREAS, scal year 1998-99 has ended and the financial results, although subject to post-audit adjustment, are now available and are herewith reported in summarized financial Exhibits "A" and "B" and "C" prepared by the Director, Administrative Services, which are attached hereto, and by reference made a part hereof; and WHEREAS, pursuant to Section 2.28.080 of the Palo Alto Municipal Code, the City Manager did amend the budgetary accounts of the City of Palo Alto to reflect: (A) Additional appropriations authorized by ordinance of the City Council. (B) Amendments to employee compensation plans adopted by the City Council. (C) Transfers of appropriations from the contingent account as authorized by the City Manager. (D) Redistribution of appropriations between functional areas major activities, and objects within various departments as authorized by the City Manager. (E) Fiscal year 1998-99 appropriations which on July 1, 1999 were encumbered by properly executed, but uncompleted, purchase orders or contracts; and WHEREAS, Article III, Section 12, of the Charter of the City of Palo Alto requires City Council approval of additional appropri- ations or trans rs of appropriations from one department to another; and WHEREAS, fiscal year 1998-99 appropriations in certain departments and categories as shown on the attached Exhibit "N', while not encumbered by purchase order or contract, at year end are neverthe ss recommended for reappropriation in the fiscal year 1999-00 budget; and WHEREAS, the Fire Department was over budget in benefits due partially to higher than anticipated paid leave charges and workers compensation payments; and $372,000 was reallocated from year-end savings in the Public Works Department to cover this deficit; and NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The fiscal year 1998-99 encumbered balances for the departments and categories shown on Exhibit \\ C" shall be carried forward and added to the fiscal year 1999-00 budget. SECTION 2. The City Manager is further authorized and directed: (A) To close the fiscal year 1998-99 budget accounts in all funds and departments and to make such interdepartmental transfers as required by the Charter of the City of Palo Alto, by ordinance, in the 1998-99 budget as adopted o~ amended. (B) To close various completed Capital Improvement Projects as shown in Exhibit "B" and move the balances into the respective reserve funds indicated in Exhibit "B". (C) To establish reserves provide for: r all Funds as necessary to (1) A reserve for encumbrances and reappropriations in the various funds, the purpose of which is to carry forward and continue in effect the unexpended balance of appropriations for: (a) Fiscal year 1998-99 departmental expenditures which were authorized to be carried forward in Section 1 above. (2) Reserves for Advances to Other Funds and for Stores Inventory in accordance with ordinance and policy guidelines. (3) A reserve for general contingencies of such amount that the City Cbuncil may approve. (4) Reserves for util ies plant replacement, rate stabilization, . and other reserves in accordance with Charter and policy guidelines. (5) The Budget Stabilization Reserve funded in accordance with the General Fund Reserves Policy adopted by the City Council. (D) After providing for the foregoing reserves, to transfer the remainder of the fiscal year 1995-99 excess of General Fund revenues over expenditures to the Infrastructure Reserve. SECTION 3. The sum of Three Hundred Seventy Two Thousand Dollars ($372,000) was reallocated from year-end savings in the Public Works Department to cover a deficit in the Fire Department as and is hereby approved by the City Council. SECTION 4. Upon completion of the independent audit, detailed financial statements reflecting changes in all the above sections shall be published as part of the annual financial report of the City as required by Article III, Section 16, of the Charter of the City of Palo Alto and in accordance with generally accepted accounting principles. SECTION 5. As specified in Section 2.2S.0S0(a) of the Palo Al to Municipal C0de, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 6. The Council of the City of Palo Alto hereby finds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 7. As provided in Section 2.04.350 of the Palo Al to Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: February 22, 2000 AYES: BEECHAM, BURCH, EAKINS, FAZZINO, KLEINBERG, KNISS, LYTLE, MOSSAR, OJAKIAN NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED AS TO FORM: #nfA..441c W,. ~.~ enior Asst. Clty Attorney APPROVED: rKIS /,)OCUMENT IS CERTIFIED TO BE AN O:;~P" (!UI.V PASSED BY THE COUNCIL ~1"'Y OF PALO ALTO AND ::" ';::r~ POST~ T'j); COUNCIL .. ,:[:"or\l~t1n (WITHIN 15 Lb".l,'k <j; iTS PASSAGE) ." certify (or declare} under penalty of perjury that the foregoing is true and correc .. (j2) -;Jo/Ut. '.' ~i.Zltv411.4(l':\... ."" , Signature EXHIBIT A 1998-99 REAPPROPRIATION REQUESTS Administrative Services Deportment $37.000, Y2K public information campaign and remediation. measures. City Auditor $54,942 Expenses are the remaining months of the initial 18-month term for the bike station and ongoing improvements for the University Avenue Train Contract services. Community Services Deportment $34.000 Landscape renovation at Tower Well site. Fire Deportment $90,000 Disaster supplies and completion of the remodeling of the EOC. Re-printing of the earthquake preparedness publication '1..iving With Our Faults". Noise consultant to perf()rm noise analysis for both compliance and planning purposes, including aircraft noise. The public information campaign is ongoing. Remediation cannot be undertaken until inventory is Both the bike station and depot improvement projects are ongoing over a period of several years. Salary savings due to a be used towards in 1998-99 Delay in processing contracts is due to funds not being available from CIP savings until late in 1998- 99. The positions for completing this project have recently been filled. Council approved funding as of the of the Plan. The positions for completing this project have recently been filled. Council approved funding as of the of the Plan. The project has been due to difficulties in finding a vendor to perform the necessary work. The was undertaken at Council direction. Planning $40,000 $15,000 Public Works $20,000 Preparation of a work plan for the Zoning Ordinance Update. Public education training sessions for the Historic Resource Ordinance and the Palo Alto Tree Manual. Page Mill Road mowing and bush removal (roadside clearing). Public Works -Equipment Management $130,000 Body for leaf packer vehicle. $60,000 Outfitting for eight police patrol vehicles. Public Works -Storm Drainage Fund $61,836 San Francisquito Creek Bank Stabilization and Re- Utilities -Electric Fund, Rates and Reserves $37,200 Rate studies to implement Phase Four of Access Due to other Council assignments, the start of the work program for the Zoning Ordinance Update is "delayed. This project will commence after an evaluation of all work assigiunents in the Planning Division. This funding is for preparing the work for the The training sessions were delayed pending Council direction. The Invitation for Bid (IFB) is currently in City Attorney's Office for review. Work is expected to Continued work on this project is delayed pending Menlo Park The delay is due to an increase in the scope of work as well as requirements associated with im]plelmellltal:ion of Phase of Direct Access. Community Services Department. 19801 $316,000 Renovation of school site irrigation systems as part of the City/school maintenance agreement Planning 19813 19401 19310 Public Works 19407 19505 19713 19707 19811 $150,000 28,950 $530,703 $91,391 $69,054 $58,9~1 .$40,000 enl1lan<:e bicycle and City Facility Water Back-flow Project Renovate Revenue Collections area and relocate staff to alleviate overcrowded condition Equipment recycling wash rack Replacement of standby emergency generators at fire stations and installation of a generator at Station 8 t'urlcha:se of a thermoplastic pavement Before the project can begin the school district must complete the planning process for the Building for Excellence has been delayed due to an from the Caltrain Rail Union. This project was not completed in FY 1998-99 due to other existing workload constraints. The project had a lower than other The project was delayed pending completion of the Golf Course renovations. Staff was fully employed on the Rinconada Pool Renovation, Development Center, and several major roofing projects. This project will be inFY This item was ordered 1119/99 and it was received 7127/99. EXHIBITB CAPITAL IMPROVEMENT PROGRAM PROJECTS COMPLETED AND CLOSED IN 1998·99 Project Number General Fund 19535 19705 Vehicle Replacement Fund 19816 Electric Fund 8856 Gas Fund Project Title 9907 Poly Fusion Equipment Replacement 9908 Ultrasonic Weld Device Project Balance EXHmITC EXECUTIVE SUMMARY ECONOMIC AND BUDGETARY CHANGES Ecollomic Outlook: According to the State of Cali- fornia's Finance Bulletin, economic indicators show that California .. and the San Francisco Bay and Sili- con Valley areas, are continuing to enjoy a vigorous economic expansion. Moody's and Standard & Poor's confirmed this outlook when awarding the City the highest possible general credit rating this past year. Citing diversity of services, geography, job mar- ket and revenue sources as strengths, the rating agencies concluded that Palo Alto's financial con- dition is excellent and the City's future eco- nomic prospects are positive, despite the leveling off of the current boom. For example, the City's unemployment rate is a low 1. 7 percent, slightly up from last year's 1.3 percent, and the median household income continues to be high at 180 percent of the national average. One factor indicating caution is that some financial analystS' have predicted higher inflation in the coming year, which could adversely impact the City's reve- nues. Capital Projects: While Palo Alto's reserves and revenue sources are strong, the demand for services, especially capital investment, is high. The City's ten- year plan for replacing and upgrading existing infra- structure calls for $95 million in expenditures. 1 Together with proposed new projects, such as a pub- lic safety building, a park in the South of Forest Ave- nue (SOFA) area, improvements to libraries and traffic calming construction, the total proposed cost of these projects will require the City to carefully manage its finances and prioritize its capital spend- ing. Employee Retirement Costs: Another significant future financial demand upon the City will be setting aside suffici~nt funding for post-retirement employee health benefits ~at the Government Accounting Standards Board (GASB) is expected to require within the next two to three years. To prepare for this eventuality, the City commissioned an actuarial study this year that estimated total liability for these benefits at $49.0 million. Less the $8.1 million the City has already reserved for this pur- pose, the current . unfunded liability is $40.9 million. Of this amount, approximately $32.3 million would be attributed to the General Fund and approximately $8.6 million to the various Enterprise Funds. GENERAL FUND RESUL TS Overall: In 1998-99, the General Fund ended'the year with an operating surplus of $2.8 million, which is $2.3 million less than the 1997-98 result of $5.1 million. This trend is explained by a slowing of the growth rate in total sources of funds (revenues plus transfers in from other funds) and an increase in the growth rate of total uses of funds (expenditures plus transfers out to other funds). In 1997-98, total sources exceeded the budget by 2.8 percent while total uses were under budget by 3.6 percent. In 1998-99, how- 10.00 9.00 8.00 flllillions $ 7.00 6.00 5.00 4.00 Property Tax, 93·94 94·95 95·96 96-97 97·98 98·99 (1) (1) Derota; first yea Of ful ERAI' stitt of S1.2 millon . ever, total sources and total uses performed close to budget, with a less than a one percent variance.The slowdown in revenue growth reflects a leveling off of the economic expansion, as was forecast in last year's report. Comparing 1996-97 to 1997-98, total revenues increased $8.1 million or 10.7 percent; in contrast, comparing 1997-98 to 1998-99, the growth 'was less than half at $3.5 million or 4.2 percent. Also, the rate of change for expenditures has moved slightly in the opposite direction, with an $8.5 million or 9.2 percent increase between 1996-97 and 1997-98 comparing to a $10.0 million or 11.5 percent increase between 1997-98 and 1998-99. Reserve Highlights: The $2.8 million General Fund net surplus from operations in 1998-99 was sufficient to add $1.5 million to the Budget Stabilization Reserve (BSR), bringing its level to $20.6 million, the 20 percent of the adopted budget guideline set by Council policy. The Reserve for Emergencies was increased $.1 million to bring it to the Council policy guideline, calculated at 10 percent of 1998-99 actual salaries and benefits costs. Due to a reduction in the market value of the City'S portfolio at year-end, the Reserve for Unrealized Investment GainlLoss decreased by $.4 million to only $7,000. The Reserve for Streets and Sidewalks of $.3 million was elimi- nated, as planned in the 1999-00 Adopted Budget. These changes plus $.2 million in decreases to mis- 2 cellaneous reserves allowed $2.1 million to be added to fue Reserve for Infrastructure Improvements, bringing its balance to $14.7 million. REVENUE HIGHLIGHTS Sales Tax: Aftera significant rise in sales tax reve- nues in 1997-98 over prior year levels, sales tax receipts appear to have reached a plateau at the $20 million level. Modest sales tax gains are anticipated for 1999-00 and 2000-01. Business segments show- ing a gain last year include auto sales, miscellaneous retail, and restaurants. Tax revenues from auto sales have been a major contributor to the growth and have risen steadily for the past 12 quarters. Areas showing a decline over the past year include electronic equip- ment, department stores, and business services. While sales in the electronic sector have been decreasing steadily over time, weakness in depart- ment store sales has been recent, with contributing factors being construction activity at the Stanford Shopping Center and lower pricing from cheaper Millions $ 25.00 20.00 15.00 10.00 5.00 General Fund: Sale. Tax 93-94 94-95 95-96 96·97 97·98 98-99 imports. It is prudent to conservatively project sales tax revenues in the near future. Recent interest rate hikes by the Federal Reserve, the cyclical nature of auto sales, and the rise of Internet sales could adversely affect this revenue source which comprises 19 percent of actual funding sources in 1998-99. Property Tax: Property tax revenue ended the year showing 6.9 percent growth over the prior year. Resi- dential and commercial property values continue to rise, with the average price of a single family home in Palo Alto at $630,000. Property tax revenues are anticipated to grow ~y at least S to 6 percent in 199.9- 00. Utility Users Tax: Compared to 1997-98, Utility Users Tax (UUT) revenues increased 4.5 percent over the prior year. The primary sources of the increase were higher than projected electric and gas sales. UUT telephone revenues appear to be leveling off after several years of growth, possibly a result of the use of the Internet as a medium for communica- tion. Transient Occupancy Tax: Transient Occupancy Taxes (TOT) continue to show solid growth with a 12.1 percent increase compared to the prior year. The completion of renovations at the Cabana Hotel and the ability of other hotels to maintain and increase their rate structures contributed to this growth. while occupancy rates reached 80 percent. TOT revenues are anticipated to increase in 1999-00 with the open- ing of a new Westin Hotel next to the Palo Alto 6.50 6.00 Mllions $ 5.50 5.00 4.50 lIlllty Users Tax 93-94 94-95 95·96 96-97 97·98 98·99 Sheraton. The robust local economy is the primary cause of several consecutive annual increases in TOT revenues. Departmental Highlights: Comparing actual expen- . ditures plus encumbrances and reappropriations to the adjusted budget, City departments spent nearly all of their 1998-99 budgetary authority, with no depart- ment having savings in excess of I.S percent of bud- get. A total of $372,000 was reallocated from the Public Works Department to the Fire Department to 3 cover higher than anticipated paid leave and worker's compensation costs. There area number of reasons why departments have expended a higher percentage of their budgets this 8.00 8.00 Mllions$ 4.00 2.00 Transient Occupancy Tax 93-94 94-95 95-96 96-97 97-98 98-99 year. Preparing for a smooth Y2K transition has required resources in all departments, although espe- cially in Administrative Services. Efforts around emergency preparedness have also called upon city- wide resources, including improvements at the EOC and the preparation of contingency plans for Y2K. There are a number of other projects that have uti- lized resources citywide, including opening of the Development Center and historic preservation. The drier winter also affected expenditures. More water was used for irrigation and there was an increased opportunity for Public Works Field operations. CAPITAL IMPROVEMENT FUND Capital project expenditures and encumbrances were $21.0 million compared to an adjusted budget of $20.6 million in 1998-99. General Fund projects that account for significant expenditure of funds in 1998- 99 include: technology improvements such as office automation email and computer aided dispatch ($.8 million); park irrigation improvements ($.4 million); completion of a new water management system at Foothills Park ($.4 million); structural improvements on public buildings ($.7 million); contraetual com- mitments for intersection improvements at Foothill Expressway and Page Mill ($1.8 million); complet- ing Rinconada Pool site improvements ($1.6 mil- lion); design of projects including a possible public safety building and parking structure ($1.1 million); and completion of major improvements at the Golf Course ($5.1 million). In addition, $2 million was transferred from the Cap- ,itallmprovement Fund to other funds. Of this, $1.7 million was transferred to the General Fund as reim- bursement for money advanced for Golf Course improvements and for projects that were closed or completed. The remainder of the money was trans- ferred to the Utility Funds and the Vehicle Replace- ment Fund for closed projects. INTERNAL SERVICE FUNDS The Vehicle Maintenance and Replacement Fund ended the year with increased retained earnings of almost $.7 million. In the Vehicle Replacement func- tional area of the Fund, $5.4 million was spent or encumbered of the GE NERAL FUND SUMMARY ($OOOs) $6.4 million adjusted budget. During the 1998-99 1998-99 1998-99 year, eight major pur- Adopted Adjusted Budget chases were com- Budget Budget Variance t==============t:===========t=====1 pleted, including two flre aerials, a com- IPrclnertv Taxes Utility Users Tax Transient Occupancy Tax Other taxes, fines & penalties Service fees and pennits Charges to Other Funds Income $20,011 $8,903 $5,780 $5,846 $6,694 $8,872 $7,554 $10,022 $10,036 $14,888 $18,484 $13,799 $5,702 $17,094 $11,692 $5,006 $20.200 8.635 5.607 5,871 5.861 8,849 8.280 10,180 1 $13.747 19,123 13,761 5,159 16,690 11,403 9.190 4 $20,300 9,135 5,950 6,350 6,686 8,588 8.455 9,994 $17,435 20,894 15,235 6,966 18,249 13,428 5.235 $20.226 9.521 6.039 6.551 7.255 8.731 8,890 10.238 9.743 $17.254 $20,583 $15.233 $6.909 $18.248 $13,227 $5.200 ($74) pressed natural gas 386 powered leaf truck, 89 and two patient trans- 201 port flre trucks. The 569 Vehicle Maintenance 143 functional area ended 435 the year with retained earnings of $.25 mil- lion, reversing a trend of the last several years. The Printing and Mail- ing Fund ended the year with expendi- tures slightly above revenues and had to use retained earnings to cover the imbalance. In its second year of operation, the Com;. puter Replacement Fund purchased or encumbered $1.2 million of a $1.3. million budget. UTILITY FUNDS RESULTS & SIGNIFICANT EVENTS Electric & Gas Dereguliltion: Deregulation of the electric and natural gas industries now permits other utility companies to supply electricity and natural gas to Palo Alto customers. The City is evaluating its rate setting methodologies, accounting practices and out- OveraU: In 1998-99, the combined utility funds side sales opportunities to more effectively compete ended the year with an operating surplus of $23.1 in this new environment. This year, the City divided million, which is its Electric and $11.4 million Gas Funds into more than the two business 1997-98 result. FISCAL YEAR units, one for Net bond proceeds 1::1;998-99=~===W=ate=r=E=lecIr=IC==Gas==WW=C===WWT==:::::::::==Stor=m===t==l=ota=I=S=t supply services account for $7.4 and the other for million of this increase, leaving $4.0 million as the growth due to reg- ular operations: In 1998-99, total I Expense sources of funds at $199.9 million exceeded the bud-IExpense get by $9.8 mil- lion or 5.2 percent while total uses at $176:8 million were under budget by $6.0 niillion or 3.3 percent. Utility Reserve Highlights: In 1998-99, combined utility funds reserves increased .17.6 percent to $154.1 million. This year, all funds exceeded their budgeted reserve targets, except for the Stonn Drain- age Fund. The Rate Stabilization Reserve (RSR) bal- ances for the Water, Electric, Gas, Wastewater Collection and Refuse Funds are above the Council- approved maximum guideline levels (the Stonn Drainage Fund does not have a recommended guide- Hne). Of particular note, the Electric Fund's Cala- veras Reserve, established to recover stranded costs, rose $15.5 million to $71.1 million, a 27.9 percent increase. As in the Electric Fund, the Public Benefit Reserve increased by $.6 million. ·5 distribution ser- vices. While Palo Alto expects to main- tain market share with residential customers, com- petition in the commercial mar- ket is expected to provide a significant challenge to the City. Bond Issuance: During 1998-99, the City issued $17.7 million in Utility Revenue Bonds to refinance two existing bond issues totaling $10.3 million and to finance rehabilitation of two incinerators for the Wastewater Treatment Fund. The new bonds are allocated between the Wastewater Treatment (64.6 percent), Stonn Drainage (25.2 percent), and Waste- water Collection (10.2 percent) funds. Water Fund: Water Fund sales were $.5 million over budget, resulting from higher water consump.:. tion. Water Fund operating expenses were $1.2 mil- lion lower than budget due to lower than anticipated rates from the San Francisco Water Department. In addition, capital expenses were $.7 million lower than budget in 1998-99 as fewer water meters, fire hydrants, and galvanized pipe were purchased and replaced during the year. Electric Fund: In 1998-99, Electric Fund revenues were $6.9 million over budget, however, compared to 1997-98, actual revenues declined $1.1 million. This reflects a $4.8 million decline in actual wholesale sales from 1997-98, offset by gains in other revenue categories. Electric Fund expenses were $.9 million under budget. Power purchase costs were $.5 million below budget due to rate decreases on the Western Area Power Administration (WAPA) contract. In addition, market prices for power were lower than 1997-98 due to favorable hydroelectric plant produc- tion. Gas Fund: The Gas Fund instituted a 7 percent rate decrease in 1998-99, which reduced actual revenues by $.5 million from the prior year level. Overall, Gas Fund revenues were $2.7 million above budget, pri- marily due to higher consumption because of cold winter weather conditions. Gas expenses were $.5 million under budget. Wastewater Collection Fund: Wastewater Collec- tion revenues were 99 percent of budget at $10.2 mil- lion. Total expenses in the Wastewater Collection Fund were $1.0 million under budget due to savings in capital expenses; Wastewater Treatment Fund: Wastewater Treat- ment Fund revenues are based on cost reimburse- ments from the Regional Water Quality Control Plant (plant) partners. The reduction in operating revenues of $.3 million from budget reflects cost savings at the Plant. Operating expenses in 1998-99 were $.5 mil- lion below budget. Capital expenditures increased significantly in 1998-99 from prior year levels in order to fund equipment replacement and upgrades to keep the aging Plant fully functioning. As previously mentoned, this year, bonds were issued to finance rehabilitation of two aging incinerators at the Plant. Refuse Fund: Refuse Fund revenues were on bud- get in 1998-99. Operating expenses in the Refuse Fund were $1.9 million below budget. The positive 6 variance is attributed to lower than anticipated Clo- sureIPost Closure Liability funding requirements (after an adjustmentby the State), lower than antici- pateq hauling fees and taxes associated with the SMaRT station, and savings in salaries and benefits and contract services due to vacancies. Payments to Palo Alto Sanitation Company (PASCO) were $.2 million, or 3 percent below budget. This year, the City'S refuse collection and hauling contractor was sold to another company. At a small increase in cost, the City successfully renegotiated the existing con- tract to include additional routes and curbside mixed- paper recycling. UTILITY FUNDS RATE STABILIZATION RESERVE (RSR) SUM MARY ($000) Stonn Drainage Fund: Storm Drainage Fund reve- nues were $.3 below budget resulting primarily from lower than anticipated interest income due to declin- ing reserve levels. Overall, Storm Drainage expenses were $.1 million under budget. With the first phase of Storm Drainage Master Plan capital work nearing completion and no additional capital projects bud- getedin 1998-99, capital expenses declined $1.8 mil- lion from 1997-98 levels. StaffwiIl be seeking ratepayer approval for arate increase for the next phase of Master Plan capital work in spring of 2000. Budget Stabilization Reserve Re~rve For Infrastructure Improvements Notes Receivable Reserve . Stores Inventory Reserve Unrealized Investment .Gain/Loss Reserve Reserve For Streets & -Sidewalks Res.erve For Emergencies lIu01~ ..... ""n~ for Stores 'norgti,r\nQ Balance Net From Balance @ 06/30198 @ 06/30/99 45,904 (4,072) -(964) o 19,050 12,588 689 1,953 450 263 5,875 o 1,541 2,078 (210) (262) (443) (263) 91 242 49,137 (5,067) (670) 242 20,591 14,666 479 1,691 7 o 5,966 242 BudgetE~d Reserves % of Budget Rate stabilization (RSR): General RSR Supply RSR Distribution RSR Total RSR Emergency plant repl~ce Calaveras Underground loan Conservation loan Water Resources Board Shasta rewind loan Central Valley Project Public benefit RSR % of Maximum 9,547 854 COMBINED UTILITY FUNDS RESERVE ANALYSIS 9,678 2,316 715 404 71.072 600 634 130% 3,372 7,923 91 30,611 26,629 ,923 1,279 5,568 71,072 600 634 590 590 867 990 2172 94% 213% 1997-98 '1998-99 1998-99 $ Variance Act/Encl Adjusted Act/Encl Favorable Realn~ro~ Budget Rea~~ro~ {Unfavor.} REVENUE Water sales 11,949 12,150 12,615 465 Other revenues 1,080 1,608 926 (682) Reappropriations I Enc 2,195 ,3,1.93. ,3,193 0 TOTAL REVENUE 15,224 16,951 16,734 (217) EXPENSES Purchases 4,283 4,<?20 4,114 506 Other Expenses 6,583 7,721 7,050 671 TOTAL OPERATING EXPENSE 10,866" 12,341 11,164 1,177 Capital Expenses 4,901 4,173 3,500 673 TOTAL EXPENSES 15,767 16,514 14,664 1,850 TO/(FROM) RESERVES (543) 437 2,070 1,633 1997-98 1998-99 Act/Encl $ Variance Act/Encl Adjusted Reapprop Favorable Rea~~ro~ Budget Actual/Enc. {Unfavor.} REVENUE Electric retail sales 66,314 63,821 66,409 2,588 Electric wholesale sales 10,389 3,031 5,641 2,610 Other revenues 10,296 10,597 12,292 1,695 Reappropriations I Enc 4,352 5,931 5,931 0 TOTAL REVENUE 91,351 83,380 90,273 6,893 EXPENSES Purchases 32,771 25,955 25,478 477 NCPA & TANC Debt Svc 11,036 10,940 10,940 0 Other Expenses 23,275 25,550 25,812 (262) TOTAL OPERATING EXPENSE 67,082 62,445 62,230 215 Capital Expenses 11,331 11,516 10,834 682 TOTAL EXPENSES 78,413 73,961 73,064 897 TO/(FROM) RESERVES 12,938 9,419 17,209 7,790 1997-98 1998-99 Act/Encl $ Variance Act/Encl Adjusted Reapprop Favorable Rea~~roR Budget Actual/Enc. {Unfavor.} REVENUE Gas retail sales 17,173 15,210 17,942 2,732 Gas wholesale sales 1,056 0 0 0 Other revenues 1,912 1,767 1,765 (22) Reappropriations I Ene 1,666 1,772 1,772 0 TOTAL REVENUE 22,007 16,769 21,479 2,710 EXPENSES Purchases 9,719 10.325 10,247 78 Other Expenses 7.302 6.165 7.613 352 TOTAL OPERATING EXPENSE 17.021 16,490 . 18,060 430 Capital Expenses 4,636 3.465 3,439 46 TOTAL EXPENSES 21,657 21.975 21,499 476 TO/(FROM) RESERVES 350 (3,206) (20) 3.166 .1997-98 1998-99 Act/Encl $ Variance Act/Encl Adjusted Reapprop Favorable Rea~~ro~ Budget Actual/Ene. {Unfavor.} REVENUE Operating Revenues 1~,870 12,564 12,271 (293) Bond Proceeds 0 6,500 7,266 766 Reappropriatipns I Enc 2,984 3,468 3,468 0 .. TOTAL REVENUE 14,854. 22,532 23,005 473 EXPENSES Operating Expenses 11,443 12,070 11,570 500 TOTAL OPERATING EXPENSE 11,443 12,070 11,570 500 Capital Expenses 2,538 10,450-10,994 (544) Principal Payments 380 408 408 (0) TOTAL EXPENSES 14,361 22,928 22,972 (44) TO/(FROM) RESERVES 493 (396) 33 429 _~tl~~fBIIIJ __ t_1 1997-98 1998-99 Act/Encl $ Variance Act/Encl Adjusted Reapprop Favorable ReaR~roR Budget Actual/Ene. (Unfavor.} REVENUE Revenues 22,324 22,386 22,428 42 Reappropriations I Enc 881 2,356 2,356 0 TOTAL REVENUE 23,205 24,742 24,784 42 EXPENSES Payments to PASCO 6,854 7,380 7,169 211 Other Expenses 13,997 15,294 13,595 1,699 TOTAL OPERATING EXPENSE 20,851 22,674 20,764 1,910 Capital Expenses 2,150 2,068 2,068 0 TOTAL EXPENSES 23,001 24,742 22.832 1,910 TO/(FROM) RESERVES 204 0 1.952 1.952 1997-98 1998-99 Act/Encl $ Variance Act/Encl Adjusted Reapprop Favorable Rea~~ro~ Budget Actual/Enc. (Unfavor.) REVENUE Revenues 2,362 2,458 2,202 (256) Reappropriations I Enc 3,903 2,664 2,664 0 t:L TOTAL REVENUE 6,265 5,122 4.866 (256) EXPENSES Operating Expenses 1,889 2.014 2,011 3 TOTAL OPERATING EXPENSE 1,889 2.014 2.011 3 Capital Expenses 4,775 3.215 ' ,2,984 231 Principal Payments 285 182 300 (118) TOTAL EXPENSES 6.949 5,411 5,295 116 TO/(FROM) RESERVES (684) (289) (429) (140)