HomeMy WebLinkAboutStaff Report 460-09TO: HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: DECEMBER 15, 2009 CMR: 460:09
REPORT TYPE: ACTION
SUBJECT: Recommendation Regarding Adoption of Ordinance Authorizing
Closing of the Budget for the Fiscal Year Ending June 30, 2009,
Including Reappropriation Requests, Closing Completed Capital
Improvement Projects, Authorizing Transfers to Reserves and
Approval of Comprehensive Annual Financial Report (CAFR)
RECOMMENDATION
Staff recommends that the Finance Committee review, provide input, and forward the attached
ordinance (Attachment A) and associated exhibits to the City Council for its approval to: close
the Fiscal Year (FY) 2009 Budget; authorize re -appropriation of FY 2009 funds into the FY
2010 Budget (Exhibits A & B); close completed capital improvement projects (Exhibit C); and
transfer remaining balances to the appropriate reserves (Exhibits D & E for General Fund and
Exhibits F & G for Enterprise Funds). In addition, staff recommends the Finance Committee
review and forward to the City Council for its approval the City's Comprehensive Annual
Financial Report (CAFR) (Attachment B).
BACKGROUND
The attachments to this report provide the necessary documents for closing the FY 2009 Budget
and reauthorizing FY 2009 funds for the current FY 2010. In addition, they provide detailed
information on the City's financial activities for FY 2009. This CMR highlights key fiscal issues
affecting the City of Palo Alto. The Management Discussion and Analysis (MD&A) chapter of
the CAFR (Attachment B) also provides a discussion and analysis of the City's current fiscal
health and includes financial statements, and performance information that is compared to the
prior year, and capital asset and debt administration data.
CMR:460:09 Page 1 of 4
DISCUSSION
Economy
The weak economy has had a significant impact on key General Fund revenue sources. Key
revenues have declined since FY 2008. Rising unemployment, tight credit markets and loss of
consumer confidence have affected revenue streams and present significant financial challenges
for the City. Due to worsening fiscal conditions, preliminary FY 2009 financials were discussed
with Council on December 1, 2009. As discussed in those reports, these challenges are structural
and must be addressed. Staff continues to work with City Council to address these challenges.
Results by Fund
General Fund
For FY 2009, the General Fund had a year-end shortfall of $4.8 million. This shortfall was
primarily due to our failure to achieve $4.8 million of targeted savings in salaries and benefits
during the second half of the year (of the $8 million plan), because of a staff error in accurately
tracking those targeted savings. That said, the error masked the fact that the City could not have
achieved those savings and would have had to make future cuts or budget reductions. In order to
balance the budget this FY, staff postponed a budgeted $4.8 million transfer to the Technology
Fund. This one-time deferral was the General Fund share of technology cost allocations and it
will be addressed in a four year funding plan. The final FY 2009 result for the General Fund is a
net gain of $809,000 compared to a net gain of $3.0 million the prior year. The $2.2 million
decrease was primarily due to revenue decreases in sales tax of $2.5 million, and documentary
transfer tax of $2.2 million. The year-to-year difference would have been greater without the
deferral of the GF technology transfer. The net gain of $809,000 reflects yearend accounting
transactions and increases the Budget Stabilization Reserve. At the direction of the Finance
Committee and pending full Council approval, staff will return to Council on December 14,
2009, with a Budget Amendment Ordinance (BAO) to transfer $809,000 to the Technology Fund
from the General Fund Budget Stabilization Reserve in FY 2010
At fiscal yearend, the fund balance for the General Fund totaled $43.2 million. This was
comprised of reserves for:
Encumbrances, notes, prepaid expenses, unrealized gain and inventory
$12.6 million
Budget Stabilization Reserve
$24.7 million
Equity Transfer Stabilization Reserve
$3.6 million
Reappropriation Reserve
$2.3 million
Details of the GF are presented in Exhibit E and discussed in the MD&A pp. 14-16.
Capital Projects Fund
For FY 2009, the Capital Projects Fund reported $24.0 million in expenditures and other uses, an
increase of $2.3 million from prior year. This level of expenditures is consistent with the City's
effort to rehabilitate and maintain its existing infrastructure. The Capital Projects Fund balance
totaled $36.0 million, a decrease of $2.3 million. As of June 30, 2009, the Infrastructure
Reserve (IR) balance was $7.0 million, a decrease of $10.9 million from prior year, due to funds
being committed to Council -adopted projects. The Encumbrance Reserve is $11.2 million, $6.9
CMR:460:09
Page 2 of 4
million higher than the prior year. Reappropriation Reserve balance increased by $1.7 million
from prior year for a total of $17.7 million. A number of completed and closed projects with
remaining balances at the end of FY 2009 totaling $211,000 will be returned to the Infrastructure
Reserve. This provided an additional source of revenues to the IR. (MD&A p. 16).
Overall, the following summarizes changes to the City's General and Capital Fund reserves:
• The General Fund Budget Stabilization Reserve (BSR) is 17.4 percent of budgeted
expenditures and operating transfers for FY 2010. This percentage is within the Council
approved guidelines of 15 to 20 percent and shows a closing balance of $24.7 million, a
decrease of $1.4 million from the prior year.
• Budget transactions included in the attached ordinance decreased General Fund reserves
by $34,000 (Exhibit A).
• The Infrastructure Reserve has a final balance of $7.0 million at the end of FY 2009.
Enterprise Funds
The Rate Stabilization Reserves (RSRs) for the combined Enterprise Funds decreased by a net
$28.5 million. Major changes include a $7.7 million decrease in the Water Fund. Primarily due
to increased reappropriation reserves of $9.4 million for the Emergency Water Supply Project
(CIP WS -08002), and a $7.6 million decrease in the Electric Fund, was primarily due to an $8.7
million increase for utility purchases and a $2.5 million increase in surplus energy costs. Cost
increases resulted from the need to purchase high -cost power due to unfavorable weather
conditions (that is, less hydropower available). Wastewater Treatment Fund had a decrease of
$8.3 million for an ending balance of negative $15.6 million compared to a negative $7.3 million
in prior year. The negative balance is due to an increase in reappropriation reserve of $11.6
million for the Disinfection Facility Improvement Program (CIP WQ-06014). The Refuse Fund
had a decrease of $6.7 million for a negative ending balance of $2.9 million. The Refuse Fund's
updated forecasted closure costs for the landfill resulted in $3.1 million of additional costs. The
Refuse Fund also had increased encumbrance and reappropriation reserves of $1.1 million for the
Relocation of Landfill Facilities Project (CIP RF-07001). The Storm Drain Fund had an increase
of $286,000 but still has a negative ending balance of $1.1 million. The reserve was negatively
impacted by a $510,000 operating reappropriation for customer rebates for innovative storm
drain improvement projects. The Storm Drain capital project spending is decreasing; therefore,
the additional increase in income due to the rate increase passed in April 2005 should return the
reserve to a positive balance by the end of FY 2010. Exhibit G provides the balance changes for
all reserve categories for the Enterprise Funds (MD&A p.17-18). At the end of FY 2009, a
number of Enterprise Fund CIP projects were completed and closed (Exhibit C). The remaining
balances of these projects reverted to their respective reserves.
RESOURCE IMPACT
Adoption of the attached budget -closing ordinance (Attachment A) allows for the re -
appropriation and carryover of funding from the FY 2009 budget so that specific operating
programs and capital projects can be completed in the current fiscal year (Exhibit B). In addition,
by closing completed capital improvement projects, balances (Exhibit C) are returned to the
original funding source for future appropriation. Exhibits D and F summarize financial results for
CMR:460:09 Page 3 of 4
original funding source for future appropriation. Exhibits D and F summarize financial results for
the General Fund and Enterprise Funds, respectively, by providing an analysis of the
performance of these funds in comparison to the budget as adopted and adjusted by Council.
Exhibit E reflects the changes to and status of major reserves.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
PREPARED BY:
C
TRU IKENBERRY
Accounting Manager, Administrative Services
Assistant Director, Administrative
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
rvices
or, Administrative Services
ATTACHMENTS
Attachment A: Budget Closing Ordinance
Exhibit A — Detailed Changes to the Adjusted Budget
Exhibit B — Fiscal Year 2009 Re -Appropriation Requests
Exhibit C — Capital Improvement Projects Completed in FY 2009 and Closed
in Fiscal Year 2010.
Exhibit D — General Fund Summary
Exhibit E — General Fund Reserve Summary
Exhibit F — Enterprise Summaries
Exhibit G — Enterprise Reserve Summary
Attachment B: CAFR
CMR:460:09 Page 4 of 4
ATTACHMENT A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR THE
FISCAL YEAR ENDING JUNE 30, 2009
The Council of the City of Palo Alto does ordain as
follows:
SECTION 1. The Council of the City of Palo Alto finds
and determines as follows:
A. 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 9, 2008 did adopt a budget for fiscal
year 2009; and
B. Fiscal year 2009 has ended and the financial
results, although subject to post -audit adjustment, are now
available and are herewith reported in summarized financial
Exhibits "A", "B", "C", "D", "E", "F", and "G" prepared by
the Director, Administrative Services, which are attached
hereto, and by reference made a part hereof.
SECTION 2. Pursuant to Section 2.28.080 of the Palo
Alto Municipal Code, the City Manager during fiscal year
2009 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
divisions, cost centers, and objects within various
departments as authorized by the City Manager.
E. Fiscal Year 2009 appropriations which on July 1,
2008 were encumbered by properly executed, but uncompleted,
purchase orders or contracts.
Page 1 of 6
ATTACHMENT A
SECTION 3. The Council hereby approves adjustments
to the fiscal year 2009 budget for Fund Balancing Entries
as shown on attached Exhibit "A".
SECTION 4. The Council hereby re -appropriates
fiscal year 2009 appropriations in certain departments and
categories, as shown on the attached Exhibit "B", which
were not encumbered by purchase order or contract, at year
end into the fiscal year 2010 budget.
SECTION 5. The fiscal year 2009 encumbered
balances for the departments and categories shown on
Exhibit "D" shall be carried forward and re -appropriated to
those same departments and categories in the fiscal year
2009 budget.
SECTION 6. The City Manager is authorized and
directed:
A. To close the fiscal year 2009 budget accounts in
all funds and departments and, as required by the Charter
of the City of Palo Alto, to make such interdepartmental
transfers in the 2009 budget as adopted or amended by
ordinance of the Council; and
B. To close various completed Capital Improvement
Projects (CIP) as shown in Exhibit "C" and move all
completed CIP to their respective reserve funds indicated
in Exhibit "G"; and
C. To establish reserves as shown in Exhibits "E",
"F" and "G" for all Funds as necessary to provide for:
(1) A reserve for encumbrances and re -
appropriations in the various funds, the
purpose of which is to carry forward into
the fiscal year 2010 budget and continue, in
effect, the unexpended balance of
appropriations for fiscal year 2009
departmental expenditures as shown in
Exhibits "E" and "F"; and
(2) Reserves for Advances to Other Funds,
Stores Inventory, and other reserves in
accordance with ordinance and policy
guidelines as shown in Exhibit "E"; and
Page 2 of 6
ATTACHMENT A
(3) A reserve for general contingencies of such
amount that the City Council has approved;
and
(4) Reserves for utilities plant replacement,
rate stabilization, and other reserves in
accordance with Charter and policy
guidelines as shown Exhibit "G".
D. To fund the Budget Stabilization Reserve in
accordance with the General Fund Reserves Policy adopted by
the City Council.
SECTION 7. The Emergency Preparedness Fund is hereby
decreased by Sixteen Thousand Five Hundred Twenty Nine
Dollars ($16,529) as described in Exhibit "A". This
transaction will change the Emergency Preparedness Fund
Balance to $6,000.
SECTION 8. The Public Services Donation Fund is
hereby decreased by Ten Thousand Nine Hundred Eight Dollars
($10,908) as described in Exhibit "A". This transaction
will change the Public Services Donation Fund Balance to
$777,000.
SECTION 9. The Child Care Fund is hereby decreased
by Six Thousand Two Hundred Eighty Dollars ($6,280) as
described in Exhibit "A". This transaction will change the
Child Care Fund Balance to $335,000.
SECTION 10. The Community Development Block Grant
Fund is hereby increased by Twenty Nine Thousand Eight
Hundred Dollars ($29,800) as described in Exhibit "A" This
transaction will change the Community Development Block
Grant Balance to $3,355,000.
SECTION 11. The Housing In -Lieu Fees Fund is hereby
decreased by One Hundred Thousand Dollars ($100,000) as
described in Exhibit "A". This transaction will change the
Housing In -Lieu Fees Fund Balance to $4,564,000.
SECTION 12. The Local Law Enforcement Block Grant
Fund is hereby decreased by Twenty Thousand Four Hundred
Two Dollars ($20,402) as described in Exhibit "A". This
transaction will change the Local Law Enforcement Block
Grant Fund Balance to $1,000.
Page 3 of 6
ATTACHMENT A
SECTION 13. The Recovery Act JAG Fund is hereby
decreased by Four Thousand Eight Hundred Twenty Dollars
($4,820) as described in Exhibit "A". This transaction will
change the Recovery Act JAG Fund Balance to $24,000.
SECTION 14. The Electric Supply Rate Stabilization
Reserve is hereby increased by the sum of One Million Eight
Hundred Six Thousand Three. Hundred Ninety Two Dollars
($1,806,392), as described in Exhibit "A". This transaction
will change the balance in the Electric Supply Rate
Stabilization Reserve to $41,442,000.
SECTION 15. The Electric Distribution Rate
Stabilization Reserve is hereby decreased by the sum of One
Million Seven Hundred Nineteen Thousand Sixe Hundred Twenty
Two Dollars ($1,719,622) as described in Exhibit "A". This
transaction will change the Electric Distribution Rate
Stabilization Reserve to $6,341,000.
SECTION 16. The Electric Fiber Optics Sub -fund Rate
Stabilization Reserve is hereby increased by the sum of
Four Thousand One Hundred Thirty One Dollars ($4,131) as
described in Exhibit "A". This transaction will change the
Electric Fiber Optics Sub -fund Rate Stabilization Reserve
to $6,436,000.
SECTION 17. The Gas Supply Rate Stabilization
Reserve is hereby increased by the sum of One Thousand Nine
Hundred Forty Seven Dollars ($1,947) as described in
Exhibit "A". This transaction will change the Gas Supply
Rate Stabilization Reserve to $8,733,000.
SECTION 18. The Gas Distribution Rate Stabilization
Reserve is hereby increased by the sum of Thirty Seven
Thousand One Hundred Thirty Three Dollars ($37,133) as
described in Exhibit "A". This transaction will change the
Gas Distribution Rate Stabilization Reserve to $4,449,000.
SECTION 19. The Wastewater Collection Rate
Stabilization Reserve is hereby increased by Fifty Four
Thousand Four Hundred Eighty Dollars ($54,480) as described
in Exhibit "A". This transaction will change the
Wastewater Collection Rate Stabilization Reserve to
$6,001,000.
SECTION 20. The Water Rate Stabilization Reserve is
Page 4 of 6
ATTACHMENT A
hereby increased by the sum of Thirty Eight Thousand One
Hundred Thirty Two Dollars ($38,132) as described in
Exhibit "A". This transaction will change the Water Rate
Stabilization Reserve to $5,400,000.
SECTION 21. The Wastewater Treatment Stabilization
Reserve is hereby increased by the sum of Six Hundred
Eighteen Thousand Eight Hundred Ninety Eight Dollars
($618,898) as described in Exhibit "A". This transaction
will change the Storm Drainage Rate Stabilization Reserve
to ($15,602,000).
SECTION 22. The Printing and Mailing Fund is hereby
decreased by One Hundred Three Thousand Three Hundred
Twenty Seven Dollars ($103,327) as described in Exhibit
"A". This transaction will change the Printing and Mailing
Fund Balance to $84,000.
SECTION 23. The Technology Fund is hereby decreased
by Six Hundred Fifty One Thousand Seven Hundred Three
Dollars ($651,703) as described in Exhibit "A". This
transaction will change the Technology Fund Balance to
$8,366,000.
SECTION 24. Upon completion of the independent audit,
detailed financial statements reflecting the changes made
by the Sections 7 through 23 of this ordinance 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 25. As specified in Section 2.28.080(a) of
the Palo Alto Municipal Code, a two-thirds vote of the City
Council is required to adopt this ordinance.
SECTION 26. 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 27. As provided in Section 2.04.330 of the
Palo Alto Municipal Code, this ordinance shall become
effective upon adoption.
INTRODUCED AND PASSED:
Page 5 of 6
ATTACHMENT A
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
City Attorney City Manager
Director of Administrative
Services
Page 6 of 6
Exhibit A
CITY OF PALO ALTO
FISCAL YEAR ENDING JUNE 30, 2009 BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Fund
Cost
Center
Comm.
Item
FY 2009
Year End Adj
Description
GENERAL FUND
Use Changes
Net Changes To (From) Reserves
17300000 32060 5,911 Transfer to fund training and safety
17300000 33450 10,618 Transfer to fund emergency meals
70191001 various 4,744 Transfer to fund special events
70191003 32070 6,164 Transfer to fund housekeeping
19300000 31070 3,490 Transfer to fund program and project contract services
19300000 39040 2,790 Transfer to fund print and mailing services
33,717
(33,717)
Fund Balancing Entries 17300000 38500 (16,529) Decrease Changes in Other Fund Balance
19100000 38500 (10,908) Decrease Changes in Other Fund Balance
19300000 38500 (6,280) Decrease Changes in Other Fund Balance
SPECIAL REVENUE FUNDS
Community Development Block Grant
60232002 30010 15,938 Transfer to fund regular salaries
Use Changes 15,938
23200000 38500 45,738 To correct posting of FY 2009 carryforward
Corrections 45,738
Net Changes To (From) Reserves 29,800
Fund Balancing Entries 23200000 38500 29,800 Increase Changes in Other Fund Balance
Housing In -Lieu Fees
60233002 35010 100,000 Transfer to budget for HTSCC grant funds
Use Changes 100,000
Net Changes To (From) Reserves (100,000)
Fund Balancing Entries 23300000 38500 (100,000) Decrease Changes in Other Fund Balance
Local Law Enforcement Block Grant
70249001 31220 20,402 Transfer to fund instruction and training
Use Changes 20,402
Net Changes To (From) Reserves (20,402)
Fund Balancing Entries 70249001 38500 (20,402) Decrease Changes in Other Fund Balance
Recovery Act JAG
70251001 31220 4,820 Transfer to fund instruction and training
Use Changes 4,820
Net Changes To (From) Reserves (4,820)
Fund Balancing Entries 70251001 38500 (4,820) Decrease Changes in Other Fund Balance
ENTERPRISE FUNDS
Electric Fund
20000021 39100 (80,378) To correct Utilities Administration charges
20000031 39100 (6,392) To correct Utilities Administration charges
Page 1 of 3
Exhibit A
CITY OF PALO ALTO
FISCAL YEAR ENDING JUNE 30, 2009 BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Fiber Optics; Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Gas Fund'
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Water Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Wastewater Collection Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Utilities Administration Fund
Source Changes
Wastewater Treatment Fund'
Cost
Center
Comm.
Item
FY 2009
Year End Adj
(86,770)
86,770
Description
20000020 38040 80,378 Decrease in Distribution RSR- Electric
20000030 38170 6,392 Increase in Supply RSR- Electric
20000081 39100 (4,131) To correct Utilities Administration charges
(4,131)
4,131
20000080 38040 4,131 Increase Rate Stabilization Reserve
20000041 39100 (37,133) To correct Utilities Administration charges
20000051 39100 (1,947) To correct Utilities Administration charges
(39,080)
39,080
20000040 38040 37,133 Increase in Distribution RSR- Gas
20000050 38170 1,947 Increase in Supply RSR- Gas
20000061 39100 (38,132) To correct Utilities Administration charges
(38,132)
38,132
20000060 38040 38,132 Increase Rate Stabilization Reserve
20021202 38790 (33,797) To close CIP Project WC -01005 (Sewer Rehabilitation and Augmentation
Proejct #14)
20000071 39100 (20,683) To correct Utilities Administration charges
(54,480)
54,480
20000070 38040 54,480 Increase Rate Stabilization Reserve
20000002 19100 (188,796) To correct Utilities Administration charges
(188,796)
50060201 38790 (600,000) To close CIP Project WQ-06013 (Sludge Ash Processing and Beneficial
use) and return balance to reserve
50060201 38790 (16,898) To close CIP Project WQ-97070 (Wastewater Solids Disposal) and return
balance to reserve
Use Changes (616,898)
Net Changes To (From) Reserves
616,898
Page 2 of 3
Exhibit A
CITY OF PALO ALTO
FISCAL YEAR ENDING JUNE 30, 2009 BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
Fund
Fund Balancing Entries
INTERNAL SERVICE FUND
Printing &'Mailing Fund
Use Changes
Net Changes To (From) Reserves
Fund Balancing Entries
Technology Fund
Use Changes
Net Changes To (From) Reserves (651,703)
Fund Balancing Entries 40070001 38300 (651,703) Decrease Reserve for Technology
Cost
Center
Comm.
Item
FY 2009
Year End Adj
Description
50060001 38040 618,898 Increase Rate Stabilization Reserve
40030202 30010 103,327 Transfer to fund regular salaries
103,327
(103,327)
40030001 38090 (103,327) Decrease Retained Earnings
40070003 30010 59,013 Transfer to fund regular salaries
40070301 30030 8,767 Transfer to fund temporary salaries
40070302 31050 180,365 Transfer to fund contract services
various 31990 336,850 Transfer to fund other contract services
40070003 32260 233 Transfer to fund electrical
40070002 33020 1,500 Transfer to fund city membership
40070205 33040 52,703 Transfer to fund telephone and noncity utilities
40070003 33060 22 Transfer to fund travel and meetings
various 33700 12,250 Transfer to fund temporary parking permit
651,703
Page 3 of 3
Exhibit B
FY 2009 REAPPROPRIATION REQUESTS
SUMMARY OF REQUESTS
Total Requests
Total Recommended
$ 2,264,907
$ 2,264,907
$ 521,095
$ 521,095
$ 180,365
$ 180,365
$ 1,387,380
$ 1,387,380
$ 4,353,747
$4,353,747
$
AMOUNT
INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETING IN FY 2009
STATUS
City Manager's Office
$111,500
Senior Games
Sponsorship
This reappropriation is being requested for a
sponsorship agreement for the 2009 National
Senior Games as approved by Council. When
Council approved the agreement in March
2009, there was no appropriation of funds
associated with the approval. The FY 2010
City Manager's Office budget does not have
the funds to cover these one-time expenditures.
As such, a reappropriation of savings is being
requested from the FY 2009 budget to cover
expenditures associated with the 2009 Senior
Games to be held August 1-15, 2009.
Recommended $111,500. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Planning Department
$32,107
Comprehensive Plan
Amendment
This reappropriation is being requested for the
Comprehensive Plan Amendment. This project
was the result of a colleague's memo to update
the Comprehensive Plan through 2020 to
identify future growth and ensure sufficient
services to serve existing and future needs and
address sustainability. The Comprehensive
Plan Amendment is a multi -year project and
this $32,107 budget balance needs to be
reappropriated into FY 2010 for the ongoing
project costs.
Recommended $32,107. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
$17,500
Alternative Modes
Program
This reappropriation is being requested for the
City's Bicycle Transportation Plan input into
the Comprehensive Plan. Due to workload
issues, this project was not completed in FY
2009. This project will be implemented in the
Fall.
Recommended $17,500. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Page 1 of 5
$
AMOUNT
INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETING IN FY 2009
STATUS
$53,800
Study of parking
permit program for
College Terrace
This reappropriation is being requested for the
study of a residential parking permit program
in College Terrace. On October 25, 2001, as a
condition of their General Use Permit with
Santa Clara, Stanford University paid $100,000
to the City for study of a residential parking
permit program in College Terrace. Funds
were held in a deposit account until they were
ready for use. At mid -year FY 2009, the City
Council authorized moving the funds into the
Transportation Section budget and proceeding
with the study. The $53,800 remaining is
reserved specifically for that project to
implement any recommendations adopted by
the City Council. Staff will obtain Council
approval of the program in July 2009, and
implementation of the project will then begin.
Recommended $53,800. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
$50,000
Speed Surveys
This reappropriation is being requested for the
completion of speed surveys to justify radar
enforcement on Palo Alto streets. The
California Traffic Control Device Committee
sets the guidelines on how to perform the
survey analysis. Staff wanted to wait for their
decision so that the testing analysis would not
be obsolete. Staff will proceed with the speed
surveys because the California Traffic Control
Device Committee did not make a decision
until this Spring.
Recommended $50,000. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Non -Departmental
$2,000,000
City Manager Housing
This reappropriation is being requested for the
purchase of a home for the City Manager. The
City Manager expects to complete a home
purchases in FY 2010.
Recommended $2,000,000. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Utilities Department- Fiber Optics Fund
$11,000
Broadband Project
This reappropriation is being requested for the
development of a broadband project to attract
federal stimulus funds. Council originally
appropriated $300,000 to support negotiations
with a consortium of firms that intended to
bring fiber to the premises. The remaining
balance of $11,000 is needed in the next fiscal
year for technical assistance to pursue federal
stimulus funds.
Recommended $11,000. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Page 2 of 5
$
AMOUNT
INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETING IN FY 2009
STATUS
Public Works Department- Storm Drainage Fund
$510,095
Storm Drain Innovative
Improvements
This reappropriation is being requested for
customer rebates for innovative storm drain
projects. Annually since FY 2006, CIP SD-
06105 Storm Drain Innovative Improvements
has been funded for innovative storm drain
projects on public and private property.
Rebates are provided for projects that protect
storm water quality and reduce the quantity of
storm runoff. Funding has been more
appropriately moved from the capital budget to
the operating budget, and the remaining
balance needs to be reappropriated to provide
funding for future rebates along with those in
process.
Recommended $510,095. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Administrative Services Department- Technology Fund
$180,365
Application Software
Replacement
This reappropriation is being requested for
application software replacement. With the
increased workload during the technical
upgrade of SAP and the migration of the utility
billing system, some work needed to be
reprioritized as staff was not able to complete
all of the plans for FY 2009. Among the items
that are planned to be addressed are the
migration of GIS data from the Utilities
Engineering group to the Enterprise GIS, the
completion of the Information Technology
Strategic Plan update, upgrading of software
for the Budget Division and potentially
performing modifications to the City's web site
as identified by the Public Web Committee.
Recommended $180,365. There is
sufficient balance in the Fiscal Year
2009 budget that can be
reappropriated.
Page 3 of 5
CAPITAL
I
IMPROVEMENT
AfiOUNT
PROJECTS
(CIP)
E` P `itT �x3 {'a� `3 S $/ i
, Ci?M 'L TIN
T
Police Department
PD -07000
$400,000
Mobile
Command
Vehicle
This reappropriation is being requested
because staff has concluded that a
mobile command vehicle could be
designed to act as a back-up 911 center
during a major disaster and could be
used as a regional asset but the cost is
more than the original budget.
Additional funding of $300,000 is
anticipated with the recent approval of
$150,000 from the Homeland Security
Grant Program (HSGP) and $150,000
from Bay Area Urban Area Security
Initiative (UASI) program.
Recommended $400,000. There is
sufficient balance in the Fiscal Year 2009
budget that can be reappropriated.
Fire Department
FD -08001
$60,000
Fire Station #6
Improvements
This reappropriation is being requested
to remodel the station kitchen and
adjoining dayroom which are well used
and show extreme wear and safety
issues.
Recommended $60,000. There is sufficient
balance in the Fiscal Year 2009 budget that
can be reappropriated.
Planning Department
PL -07000
$60,000
Traffic Calming-
Downtown
North Traffic
Circles-
Hardscape
In 2004, the City installed traffic
calming measures in the Downtown
North. In 2005, after an evaluation of
the measures, the City Council accepted
them as a permanent installation, with
the additional direction that hardscape
be installed on the traffic circles. This
project was delayed due to staffing
vacancies in the Planning and
Transportation Division.
Recommended $60,000. There is sufficient
balance in the Fiscal Year 2009 budget that
can be reappropriated.
Page 4 of 5
CAPITAL IMPROVEMENT PROJECTS (CIP)
Planning Department
PL -07001
$837,380
Intermodal
Transit Station
This reappropriation is to provide funds
for the conceptual plan, final design, and
implementation of connectivity
improvements in the vicinity of the Palo
Alto Intermodal transit center. The
Metropolitan Transportation
Commission (MTC) was in the process
of developing a way finding plan for the
station area and the City did not want to
duplicate their efforts. This project will
focus on areas not covered by the MTC
plan such as lighting improvements on
the pathways to and from the station
area.
Recommended $837,380. There is
sufficient balance in the Fiscal Year 2009
budget that can be reappropriated.
Planning Department
PL -07003
$30,000
Caltrain Station
Connectivity
Improvements
Projects
This reappropriation is to provide funds
for the conceptual plan, final design, and
implementation of connectivity
improvements in the vicinity of the Palo
Alto Intermodal transit center. The
Metropolitan Transportation
Commission (MTC) was in the process
of developing a way finding plan for the
station area and the City did not want to
duplicate their efforts. This project will
focus on areas not covered by the MTC
plan such as lighting improvements on
the pathways to and from the station
area.
Recommended $30,000. There is sufficient
balance in the Fiscal Year 2009 budget that
can be reappropriated.
Page 5 of 5
Exhibit C
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
vm
an
ose1
2
PROJECT NUMBER
PROJECT TITLE
PROJECT
BALANCE
General Fund
AC -02024
CA -01014
FD -09002
LB -94018
OS -07002
OS -07003
OS -99005
PD -07001
PD -99013
PE -00101
PE -00105
PE -01013
PE -01021
PE -04011
PE -05300
PE -06004
PE -06008
PE -06012
PE -07002
PE -07003
PE -07006
PE -07009
PE -07011
PE -08002
PE -89004
PE -96008
PE -98003
PE -99006
PF-00020
PF-01005
PF-04001
PF-06003
PF-07010
PF-09001
PF-90018
PG -00010
PG -04010
PG -07000
PG -08001
PL -02023
PL -99023
Children's Theater System 0
Community Services Facility Lighting Enhancements 0
Jaws of Life Hurst Tool Replacement 221
Library Automation Service 159
Foothills Interpretive Center & Maintenance Yard Parking Lot 0
Foothills Park Maintenance Building Rehabilitation 1,718
Cubberley Athletic Field Irrigation 0
SWAT Van Replacement 0
Police Records Management System 6,027
Foothills Park Vista Hill 0
Embarcadero Road Median Improvements 2,973
El Camino Median Landscape Improvements 512
Homer Avenue Undercrossing 0
Cambridge Parking Structure Improvements 0
Arastradero Preserve Gateway 844
Bowden Park Improvements 0
Johnson Park Improvements 0
Cubberley Landscaping Improvements 0
Hoover Park Improvements 0
Ramos Park Improvements 0
Boulware Park Improvements 0
Baylands Athletic Center Fencing and Dugout 36,404
Library Service Model Analysis 0
Peers Park Improvements 82
Yacht Harbor Improvements 10,016
Downtown Urban Design Improvements 0
Mitchell Park Facilities Improvements 75,064
MSC Feasibility Study (Pub Bldg -MSC Seismic Ret.) 0
Office Space Renovation and Construction 0 .
Lucie Stern Community Center Improvements 0
General Buildings Study 0
Cubberley Community Center Fire Alarm System 0
Main Library Improvements 0
Downtown Library Mechanical and Electrical Upgrades 0
Cubberley Building Code Construction 0
Park Facilities Improvements 0
Stanford / Palo Alto Playing Fields 0
Heritage Park Playground Public/Private Park 0
Golf Course Driving Range Turf and.Netting 47,165
South El Camino Master Schematic Design 0
Page Mill / Hanover Intersection Improvements 0
Total $ 181,185
* General Fund CIP Projects were identified as closed in FY 2009. The balance of these projects will be returned to
reserve in FY2010 midyear.
Internal Service Fund
TE-88022
VR-06800
Computer Aided Mapping
MTBE Investigation at Fire Station 2
Total
0
0
$0
1
Exhibit C
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
sei
PROJECT NUMBER
Wastewater Collection Fund
WC -01005**
Wastewater Treatment Fund
WQ-06013**
WQ-97070**
PROJECT TITLE
PROJECT
BALANCE
Sewer System Rehabilitation and Augmentation Project 14 33,797
Sludge Ash Processing and Beneficial Use
Wastewater Solids Disposal Project
**Projects are closed. No expenditures were incurred in the current fiscal year.
$33,797
600,000
16,898
$616,898
2
Exhibit D
Revenues
Property Taxes
Sales Taxes
Utility Users Tax
Transient Occupancy Tax
Other Taxes, Fines & Penalties
Charges for Services
Permits & Licenses
Charges to Other Funds
Rental Income
Other Revenues
Add: Operating Transfers In
Prior Year Encum & Reapprop
Totalotat Source of Tunds
Expenditures
Administrative Departments
Community Services
Fire
Library
Planning
Police
Public Works
Non-Departmental/School Site
otal
Add: Operating Trans Out
NOS
2008-09
Allocated
Charges
CAFR Reconciliation:
2008-09
Adopted
Budget
2008-09
Adjusted
Budget
23,510 25,098
22,402 20,015
10,783 11,024
8,424 7,250
8,816 5,816
20,849 19,938
5,767 5,160
10,952 10,999
13,426 13,121
3,965 4,251
17,490 18,333
21,600 21,918
24,260 24,212
6,570 6,607
10,419 10,621
29,831 29,077
13,859 13,758
7,980 8,834
2008-09
CAFR Basis
Rev/Exp
25,445
20,089
11,030
7,111
5,440
19,769
4,310
16,008
17,450
21,904
5,988
9,505
26,965
10,065
6,863
Current year encumbrance/reappropriations
Prior year encumbrance/reappropriations
Current year stores adjustment
Prior year stores adjustment
2008-09
Encum+
Reapprop
2008-09
Budgetary
Rev/Exp
25,445
20,089
11,030
7,111
5,440
19,768
4,310
11,168
13,646
6,044
17,718
21,677
23,765
6,502
10,483
28,464
13,489
8,866
5,920
(4,460)
(24)
37
CAFR Net Income
809
2008-09
Variance
Adj Budget
347
74
6
(139)
(376)
(170)
(850)
169
525
1,793
(75)
615
241
447
105
138
612
269
(32)
3
x,398
Page 1 of 1
Exhibit E
GENERAL FUND RESERVE SUMMARY ($000s)
FISCAL YEAR 2009
Balance Net From Balance
06/30/08 Operations @ 06/30/09
CAFR Fund Balance
Less: Encumbrances
Reappropriations
Adjustment for Stores 0•erations
42,415 809
(3,816) 157
(648) (1,617)
37 13
43,224
(3,659)
(2,265)
24
4
BOW
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
Notes Receivable Reserve
Stores Inventory Reserve
Prepaid Reserve
Unrealized Investment Gain/Loss Reserve
Reserve For Equity Transfer Stablization
Reserve For Emergencies
Adjustment for Stores Operations
Adjustment for Stores Inventory Encumbrance
Adjustment for Stores Operations
FOR
s N�,�
�q X
26,102
0
2,255
2,999
2,032
1,035
3,528
0
(37)
(1,355) 24,747
0 0
(727) 1,528
174 3,173
(257) 1,775
1,406 2,441
108 3,636
0 0
13 (24)
`37,2r
0
24
Page 1 of 1
Exhibit F
WATER FUND ($000)
FY 2008 FY 2009 FY 2009 $ Variance
Actual/Enc Adjusted Actual/Enc Favorable
Rea. 'ro Budget Reappro. (Unfavor.)
REVENUE
Water sales
Other revenues
Bond Proceeds
Reappropriations / Enc
25,975 26,519 26,686 167
3,301 1,991 2,788 797
35,000 (35,000)
3,666 11,673 11,673
TOTAL REVEL
f4
EXPENSES
Purchases
Other Expenses
8,363
12,175
TOTAL OPERATING EXPENSES 20,538
Capital Expenses
Principal Payments
14,988
340
8,859 8,413
15,446 14,579
446
867
24,305 22,992 1,313
26,104 26,110
351
351
(6)
1T
NSES
7
)7
IM) REs
29)'.
ELECTRIC FUND
REVENUE
Electric retail sales
Electric wholesale sales
Other revenues
Bond Proceeds
Reappropriations / Enc
FY 2008
Actual/Enc
Reapprop
90,833
25,173
1,350
8,922
FY 2009 FY 2009 $ Variance
Adjusted Actual/Enc Favorable
Budget Reapprop (Unfavor.)
103,402 105,483 2,081
23,031 24,452 1,421
7,551 7,551
1CLREVENUE n=;
t278'.1:
EXPENSES
Purchases
NCPA & TANG Debt Svc
Other Expenses
71,065 87,318 82,348 4,970
8,554 8,892 8,086 806
40,725 45,352 43,453 1,899
TOTAL OPERATING EXPENSES 120,344 141,562 133,887 7,675
Capital Expenses
Principal Payments
15,768 14,974 16,743 (1,769)
100 100
100
XPEI
7
9i
Page 1 of 4
Exhibit F
FIBER OPTICS FUND
FY 2008 FY 2009 FY 2009 $ Variance
Actual/Enc Adjusted Actual/Enc Favorable
Rea. pro. Budget Rea. prop (Unfavor.)
REVENUE
Revenues
Reappropriations / Enc
3,186 3,796
182
182
610
ISOM
0
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
1,554 1,710 (156)
1,554 1,710 (156)
482 691 (209)
LrOtAL<E ,E
t4�
(365)
1 TTY%{ R
Prior to Fiscal Year 2009 the Fiber Optics Fund was reported in the Electric Fund.
GAS FUND
REVENUE
Gas retail sales
Gas wholesale sales
Other revenues
Reappropriations / Enc
FY 2008 FY 2009 FY 2009 $ Variance
ActuaUEnc Adjusted Actual/Enc Favorable
Reapprop Budget Reappro • (Unfavor.)
48,100 50,489 47,425 (3,064)
2,261 1,376 2,062 686
7,515 8,287 8,287 -
TOTAL REVENUE
EXPENSES
Purchases
Other Expenses
27,220
12,564
TOTAL OPERATING EXPENSES 39,784
Capital Expenses
Principal Payments
13,632
415
28,011 25,091 2,920
15,334 13,580 1,754
43,345 38,671 4,674
15,856 17,953 (2,097)
429 429
rir
L EX' 1
,6317_
5
7a
TO/(FROM SERVE
2
Page 2 of 4
Exhibit F
WASTEWATER COLLECTION FUND
FY 2008 FY 2009 FY 2009 $ Variance
Actual/Enc Adjusted Actual/Enc Favorable
Reap.ro. Budget Reapprop (Unfavor.)
REVENUE
Revenues
Reappropriations / Enc
16,627 15,326 15,468
5,966 6,845 6,845
142
ITC
(lL REVEI
41
EXPENSES
Sewer Treatment Exp.
Operating Expenses
7,056
4,814
TOTAL OPERATING EXPENSES 11,870
Capital Expenses
Principal Payments
10,229
55-
7,539 6,131 1,408
5,397 4,785 612
12,936 10,916 2,020
10,413 11,246
58 58
(833)
Tt TaAL EXP N-
1-TO/(ROM) i i SERV
WASTEWATER TREATMENT FUND
REVENUE
Operating Revenues
Restricted Bond Proceeds
Loan Proceeds
Reappropriations / Enc
Bonded Reappro/Encum
,OTA
Yi
FY 2008
Actual/Enc
Reapprop
23,905
9
4,879
23,804
17
FY 2009 FY 2009 $ Variance
Adjusted ActuallEnc Favorable
Budget Reapprop (Unfavor.)
21,250 23,814 2,564
20,000
15,733
17
2,210 (17,790)
15,733
17
41` 74 (1,5,226
EXPENSES
Operating Expenses 16,696
TOTAL OPERATING EXPENSES 16,696
Capital Expenses
Principal Payments
30,252
355
18,863 15,570 3,293
18,863 15,570 3,293
37,173 34,577 2,596
367 367 -
XP
i3
:TOi FR
WES
37)1
Page 3of4
Exhibit F
REFUSE FUND
REVENUE
Revenues
Reappropriations / Enc
EXPENSES
Payments to PASCO
Other Expenses
FY 2008
Actual/Enc
Reapprop
FY 2009 FY 2009 $ Variance
Adjusted Actual/Enc Favorable
Budget Reapprop (Unfavor.)
29,850 32,835 30,022 (2,813)
884 1,874 1,874
734
789
t2
9,276 9,527 9,504 23
20,994 23,432 26,334 (2,902)
TOTAL OPERATING EXPENSES 30,270 32,959 35,838 (2,879)
Capital Expenses
1,000 3,890 2,720 1,170
•
•
REVENUE
Revenues
Reappropriations / Enc
TOTAN. (2EVEN,UE
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
;` O/(FROM):i'RESER?
FY 2008
Actual/Enc
Reapprop
5,346
2,295
2,379
2,379
8,472
360
FY 2009 FY 2009 $ Variance
Adjusted Actual/Enc Favorable
Budget Reapprop (Unfavor.)
5,685 5,824
4,683 4,683
olcit4 0,50
3,132 2,418
3,132 2,418
6,865 7,418
385
385
139
9
714
714
(553)
Page 4 of 4
Exhibit G
RESERVE SUMMARY ($000)
FISCAL YEAR 2009
Water Electric Fiber Optics Gas WWC
Refuse Storm
Total
Beginning Reserves $14,706 $131,712 $5,859 $13,461 $6,908 ($4,702) $4,468 ($1,384) $171,028
To (From) Reserves (8,306) (13,244) 1,577 721 93 [ (8,740) (6,662) 286 (34,275)
"'• E 7 F.3+ �• 4`P ^� '.` - was 3 tL;\ S& �
n ing .R a&.: . .... r r'�.... i� ;r#6$r. 6 7,001.. s. ?} { �..... 1,098) ,. 36,r _
Adj Budgeted Reserves 14,400 126,467 5,127 13,022 6,738 (1,147) 3,676 (1,377) 166,906
% of Budgeted Reserves 44% 94% 145% 109% 104% 1172% -60% 80% 82%
RESERVE DETAIL
FISCAL YEAR 2009
Water
Electric Fiber Optics Gas
WWC
Refuse
Storm
Total
Rate Stabilization
General RSR
Supply RSR
Distribution RSR
Total RSR
Emergency Plant Replace
Calaveras
Underground Loan
Conservation Loan
Water Resources Board
Shasta rewind Loan
Central Valley Project
Public Benefit Program
.fl
$5,400 $6,436 $6,001 ($15,602) ($2,844) ($1,098) ($1,707)
41,442 8,733 50,175
6,341 4,449 10,790
5,400 47,783 6,436 13,182 6,001 (15,602) (2,844) (1,098) 59,258
1,000 1,000 1,000 1,000 1,000 2,160 7,160
64,535 64,535
717 717
153
4,280
650
650
153
4,280
RATE STABILIZATION RESERVE
FISCAL YEAR 2009 Water
Electric Fiber Optics Gas
WWC
Refuse Storm
Total
Beginning RSR
To(from) RSR
i='tiding RSR'`
$13,111 $55,418 $5,859 $12,133 $6,027 ($7,285) $3,832 ($1,384) $87,711
(7,711) (7,635) 577 1,049 (26) (8,317) (6,676) 286 (28,453)
4t78) . `...6,436 . 131.`52 ;�;O�f x(' 5;602}���2844} `:(1,Q9g}` <.'�
5r2S8
RSR Minimum
RSR Maximum
5,321 47,834 536 13,839 2,737 3,236 2,757 N/A 76,260
13,303 99,292 1,341 31,111 6,844 6,472 5,515 N/A 163,878
RSR % of Maximum 41% 48% 480% 42% 88% -241% -52% N/A 36%
Page 1 of 1