HomeMy WebLinkAbout1997-04-01 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM,:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
AGENDA DATE: APRIL 1, 1997 CMR:167:97
SUBJECT:1996-97 MIDYEAR FINANCIAL SUMMARY AND BUDGET
AMENDMENT ORDINANCE
REOUEST:
This report transmits six-month results of operations for the 1996-97 fiscal year, for the
General Fund and Utilities Funds, and provides updated revenue, expenditure and reserve
balance projections.
RECOMMENDATIONS:
Staffreeommends the City Council adopt the attached Budget Amendment Ordinance, which
reflects midyear adjustments to the 1996-97 budgets.
POLICY IMPLICATIONS:
Adoption of the year-end closing ordinance does not represent a change to existing policies.
EXECUTIVE s~MARY:
This report summarizes the financial results for the first six months of fiscal year 1996-97,
and updates budget projections for the full fiscal year, with pro forma reserve balances for
the General Fund and the Utilities Funds. Also included in this report is a Budget
Amendment Ordinance, including Exhibits A, B, and C, reflecting the associated budget
adjustments being requested:
CMR:167:97 Page I of 2
FISCAL IMPACT:
Adoption of the attached ordinance will allow for certain adjustments to the fiscal year 1996-
97 budget based on updated projections.,
ENVIRONMENTAL ASSESSMENT:
Adjustments to the fiscal year budget are not a project for purposes of the California
Environmental Quality Act.
ATTACHMENTS:
1996-97 Midyear Financial Results
Budget Amendment Ordinance
Exhibit A - 1996-97 Midyear Adjustments - General Fund and Special Revenue Fund
Exhibit B - 1996-97 Midyear Adjustments - Enterprise Funds
Exhibit C - Table of Organization - General Fund
PREPARED BY:Joe Saeeio, Senior Financial Analyst
Tony Sandhu, Senior Accountant
DEPARTMENT HEAD APPROVAL:
Meliss~ Cavallo
Acting Director
CITY MANAGER APPROVAL:
CC: n/a
Manager
CMR:167:97 Page 2 of 2
EXECUTIVE SUMMARY
GENERAL FUND
The General Fund adopted budget for 1996-97
included a surplus or addition to reserves of $1. i
million. Given financial results during the first six
months of this fiscal year, the General Fund is pro-
jected to end the year with a $3.9 million surplus.
This surplus is principally driven by stronger than
anticipated sales, transient occupancy, documen-
tary transfer, and utility user telephone taxes. The
rise in these revenue sources confirms a vigorous
local economy. Adjustments to expenditures at
midyear are relatively minor and are discussed
below.
While a surplus is anticipated for 1996-97, the City
also faces significant demands on its resources.
These include, for example, implementation of the
Comprehensive Plan, Library Master Plan, and
Midyear 1996-97 General Fund Summary
1995-96 1996-97 1996-97 1996-97
Actuals Adopted Adjusted Midyear
Budget Budget Projected
Budget Difference
1,431
128
93
650
377
(382)
0
7O
(52)
2,315
~0
Sales Ta~es 17,895 "17,169 17,169 18,600
Property Taxes 7,818 7,772 7,772 7,900
Utility Users Tax 5,098 5,167 5,167 5,260
Transient Occupancy Tax 4,279 3,930 3,930 4,580
Other taxes, fines & penalties 5,129 4,741 4,741 5,118
Service fees and permits 8,257 8,639 8,677 8~295
Charges to Other Funds 6,294 7,190 7,190 7,190
Rental Income 9,645 9,890 9,890 9,960
Other Revenues 7,875 7,349 8,099 8,047
Total Revenues ¯ 72,290 71,847 72,635 74,950
Plus Operating Transfers In 11,504 12,775 12,775 12,775
Plus Encumbrances and 2,802 2,802
Reappropriations
Total Source of Funds $83,794 $84,622 $88,212 $90,527 $2,315
10
0
(367)
30
0
6
0
(321)54
($267i
Administrative Departments’11,336 11,945 13,153 13,163
Community Services 15,496 16,300 161914 16,914
Fire 12,236 12,569 12,770 12,403
Planning 4,043 4,142 4,688 4,718
Police 14,634 15,16!15,435 15,435
Public Works 9,207 i0,010 10,729 10,735
Non-Departmental 4,736 7,711 7,306 7,306
Total Expendi lures 71,688 77,838 80,995 80,674Operating Transfers Out 5,533 5,696 .5,909 5,963
Total Use of Funds $77,221 $83,534 $86,904 $86,637
Net Surplus/(Defi cit)$6,573 $1,088 $1~308 , $3,890
Golf Course Master Plan,
expansion of PAUSD athletic
field work, initiation of a Fam-
ily Resource Center, down-
town urban design
enhancements, and General
Fund infrastructure needs. In
addition to seeking outside
financing for infrastructure
work, staff will be recom-
mending creation of.an Infra-
structure Sinking Fund that
will require funding. As the
General Fund faces its new
program needs, it also encoun-
ters real and potential threats to
revenue sources. Deregulation
of the utility industry will
result in increased pressure on
$14.5 million in utility rent and
equity transfer payments and
lower utility User tax pay-
ments. Closure of the landfill
in 2003-04 will result in an
estimated loss of $1.0 million
m annual rent payments to the
General Fund. "
Although the General Fund is
experiencing a period of solid
growth in several, revenue
areas, this good news is tem-
pered by new program needs
and potential erosion of other
revenue sources. In addition,
the strong growth in revenue
sources that are sensitive to business cycles, such
as sales taxes, cannot be sustained over time and
must be carefully evaluated in funding ongoing
needs.
UTILITY FVNDS
Significant midyear changes are projected for the
Electric, Gas and Water funds. As a result of low
spot market prices and sale of excess power, it is
proposed that $4.9 million in electric power pur-
chase costs be reduced from the budget. By year’s
end, the Electric Rate Stabilization Reserve (RSR)
is projected to be $15~5 million, $118 million below
the target of $17.3 million, and the Calaveras
Reserve balance is expected to be $41.6 million.
The projected Calaveras balance includes the trans-
fer of $1.9 million in interest earnings from the
RSR to the Calaveras Reserve. This income was
earned by the Calaveras Reserve, but accrued by
the RSR.
As a result of unusually cold weather in the Pacific
Northwest and lower gas storage levels, the City
has recently experienced a sharp increase in gas
commodity costs. While gas purchases were $.3
million above budget at midyear, staff projects
costs to remain high throughout the year, necessi-
tating a $1.7 million increase in the purchase, bud’
get. Despite this increase, the Gas Fund
is expected to have a $10,0 million RSR 2.5balance which is $3.2 million above the
maximum level.
2
Although the City has had an especially ~
wet winter, the Water Fund is experienc-.~ i.5
ing higher demand than anticipated.~
Staff is proposing the addition of $.35 ~1million in purchase costs to meet pro-~
jetted demand. In 1996’97, the City will ~
receive a one,time refund of $,4 million ~ 0.5
from the San Francisco Water District
3(~94
which, in turn, received a refund of property taxes
from the County of San Mateo.
Passage of Proposition 218 may impact the Storm
Drainage, Water, Refuse, and the Wastewater Col-
lection Funds. Proposition 218 requires the City to
perform a proportional cost calculation for any
"property-related fees or charges", to ensure that
each property pays only its attributable share of
provided services. While it appears that the rates in
these funds may be covered by Proposition 218 and
that changes to rate structures may be necessary,
there is sufficient ambiguity to await further legal
clarification in the months ahead. Therefore, staff
is in the process of evaluating various measures,
such as the use of reserves, to delay rate increases
that may trigger Proposition 218 issues.
GENERAL FUND
Sales Tax. Revenues from sales taxes are expected
to total $18.6 million at the end of 1996-97,
approximately $1.4 million above the adopted bud-
get and $.7 million above prior year actuals. The
economic segments bolstering strong sales tax
receipts are new auto, restaurant, and miscella-
neous retail sales. Moderating overall sales tax
growth were declines in light industry and leasing’
sales taxes. Continuing the rise in sales tax revenue
Department Stores
Restaura ’ "
Miscellaneous i
Furn./Appliances
4’Q94 1~95 2~95 3(~95 4Q95 1Q96 2Q96 3Q96
experienced in 1995-96, the growth in 1996-97
revenues is further proof of a vibrant local and state
economy. The forecast for next fiscal year includes
a growth rate of about 4.5 percent in revenues.
Property Tax, Property taxes are anticipated to
yield $7.9 million, an increase of $. 13 million from
the adopted budget for 1996-97. This projection
incorporates a conservative growth rate over 1995-
96 revenues which were $7.6 million:While the
county originally projected a 3.8 to 4.5 percent
growth rate in the county wide assessment roll for
1996-97; it ended the fiscal year by making down-
ward. adjustments in property tax allocations to
local jurisdictions. The City was notified of a neg-
ative $. 19 million General Fund adjustment in Sep-
tember 1996. The adjusted budget for 1996-97 and
the projected budget for 1997-98 reflect this adjust-
ment.
Transient Occupancy Tax. Receipts from the
City’s motels and hotels .are particularly strong,
resulting in a revised revenue projection of $4.6
million for 1996-97. This represents a $.7 million
increase to the adopted budget. Occupancy rate~ in
1996-97 are running 4 to 11 percent higher per
month compared to the same period in 1995-96.
Demand for hotel occupancy has risen dramatically
in Palo Alto, fueled by a healthy business environ-
ment.
Other Taxes, Fines and Penalties. Revenue in
this category is expected to increase by a net $.38
million by the end of 1996-97. Documentary trans-
fer taxes, buoyed by a healthy residential and com-
mercial real estate market, are expected to increase
by $.32 million compared to the adopted budget.
Motor vehicle tax receipts, based on continuing
strong new auto sales, are anticipated to exceed the
adopted budget by $. 13 million. Somewhat offset-
ting these increases is a $.07 million drop. in park-
ing violation fines.
Telephone Utilities Users Tax. Reversing a down-
ward trend over the past several years, telephone
utility user tax receipts .are moving upward. By the
end of 1996-97, it is expected revenues ¯will total
$1.5 million, a $.09 million increase over the
adopted budget. Pac Bell has recently reported a
surge in demand for new phone lines resulting from
increased Internet activity and an improving econ-
omy. Steadily climbing monthly telephone reve-
nues since July 1996 verify Pac Bell’s information.
Service Fees and Permits. Based on actual reve-
nues, gross paramedic fee revenue will be raised by
$.81 million to $1.25 million. New accounting
rules for government agencies, however, now
require revenues to be offset by bad debt. Given the
City’s bad debt experience over the past several
years, it is proposed that budgeted bad debt be
increased from $.38 million to $.46 million. Based.
on the increase in gross revenue, the new account-
ing rule and the change in bad debt, net paramedic
revenue will total $.79 million for ¯1996-97.
Rental Revenues. Given actual revenues from
long-term leases at the Cubbedey Community¯Center, rental revenues are expected to increase by
$.07 million.
Other Revenues. Based on the actual level of fire
services to the Stanford Linear Accelerator Center
(SLAC) in 1995-96, reimbursement from SLAC is
projected to decline to $69,000, a decrease of
$52,000 from the adopted budget.
EXPENDITURES
Except for the expenditure ~hanges discussed
below, year-end expenditures for 1996-97 are pro-
jected to be in alignment with the 1996-97
Adjusted Budget. Consistent with prior years, how-
ever, General Fund departments typically show
savings at year end. These savings will vary from
department to department and are therefore not
included in the attached Budget Amendment Ordi-
nance or in the attached Fund Summary. Depart-
mental savings have ranged close to $.5 million in
prior years.
Transfer of lnternet Funding. In assuming full
responsibility for the City’s connection to the Inter-
net, $36,000 in existing funding will be transferred
General Fund Reserves ($ IVillions)
Actual Adj. Budget Midyear Increase
95-96 96-97 Projected from Adj.
96-97 Budget
Budget 20.4 22.1 24.5 2.4
Stabiliza~on
Streets/0.4 0 0,2 0.2
Sidewalks
Emergencies 5.3 5.3 5.3
ReappropriatJon/5.1 5.1 5.1
Encumbrances
Inventory &2.4 2.4 2.4
Notes Receiv.
Total Reserves 33.6 34.9 37.5 2.6
from the City Manager’s budget to Information
Technology Services in the Administrative Ser-
vices Department.
Customer Information System. To reflect the
actual costs of supporting the Utilities Customer
Information System, $10,000 must be added to
Information Technology Service’s operating bud-
get. This expense will be reimbursed by the Utili-
ties Department,
Planning Department Printing Costs. As a result
of high demand for the final EIR for the Compre-
hensive Plan and for material associated with the
review process for the Stanford Sand HillRoad
Corridor projects, $30,000 in additional printing
expense is requested.
Facilities Management Software Contract. Inad-
vertently, funding for a Facilities Management
software contract was not encumbered from the
1995-96 budget. To finalize the contract $5,633
needs to be added to the 1996-97 budget. This soft-
ware is essential in maintaining the Facilities work
order system. "
Paramedic Bad Debt. Based on new accounting
rules for government agencies, paramedic bad debt
will be treated as an offset to revenue instead of an
operating expense. Paramedic bad debt expense,
budgeted at $.38 million in the adopted budget, will
be reduced by $.38 million. As explained above,
the amount of bad debt offsetting revenue, how-
ever, is being increased to $.46 million.
Paramedic Physician Contract. Funding for the
Fire Department’s contract with a physician for
review of paramedic records was inadvertently not
encumbered for carryover from 1995-96 to 1996=
97. These funds need to be appropriated to meet the
terms of the contract.
Transfer to Water Fund. Since 1989 the Water
Utilityhas been paying rent simultaneously to
Stanford and the City for use of the Mayfield Res-
ervoir. It has been determined that theGeneral
Fund should reimburse the Water Utility $.05 mil-
lion for the payments to Stanford,
OTHER CHANGES
To accommodate Police Department staffing needs
in anticipation of retirements, the language in the
Table of Organization authorizing four position
slots has been changed. The new language autho-
rizes the slots to be used for vacancies resulting
from retirements as well as from disabilities (see
Exhibit C).
SPECIAL REVENUE FUNDS
Downtown Planned Community Zone Contribu.
tion Fund. A new special revenue fund, the Down-
town Planned Community Zone Contribution
Fund, has been created for contributions.and fees
that will be used to implement the Downtown
Urban Design Guide. To date, a $.15 million con-
tribution and $. 1 million in mitigation fees have
been accumulated in the University Avenue Park-
ing District. These funds will be transferred to the
new fund.
4
Commercial Housing In-Lieu Fund. Funding of
$50,000 for an ongoing contract with the Palo Alto
Housing Corporation to administer the Below Mar-
ket Rate housing program for the City needs to be
added to the budget since it was unintentionally
deleted.
¯ Sale of excess power to external power pools,
thereby reducing power purchase costs
¯ The City’s purchasing a majority of its power
needs from the spot market at comparatively lower
prices
UTILITY FUNDS
ELECTRIC FUND
Due to higher than projected power usage during
the summer months, year-to-date Electric Fund
revenues are 4 percent above budget. The City will
receive a refund of $.8 million from the Western
Area Power Administration (WAPA) in 1996-97.
This refund will be used to fund the Central Valley
Project Reserve. As discussed and approved by the
Council on February 10, 1997 (CMR:138:97),
funds from the new reserve will be loaned to the
Central Valley Project for necessary operations and
maintenance work
Power purchase costs are $2.1 million below bud-
get.at midyear. This results from the following:
Utility Fund Reserves
¯ Lower payments to WAPA given delays in
planned Central Valley Project improvements.
Since power purchase costs for 1996-97 are.pro-
jected to continue to be significantly less than was
originally budgeted, the power purchase budget
will be reduced by $4.9 million.
Staff proposes to increase the Utilities Under-
ground District # 35 capital project by $. 14 million.
Funds budgeted in 1995-96 that were to be carried
over into 1996-97 for expenses related to this
project were not encumbered and are now required
for payments. As a result of having to procure new
easements, discovered during the design phase of
the Underground District #36 project, capital costs
need to be increased by $.3 million.
To compete in the era of deregulation, $.08 million
is being requested for consulting services to design
interim billing solutions. These solutions include
offering unbundled electric rates to large customers
beginning January 1, 1998. In view of the time con-
straints associated with this project, staff requests
Council’s approval to exempt review of the
Request-for-Proposal (RFP) prior to its issuance.
In addition, $.2 million is required for capital
project 8928 to purchase new electric meters that
perform hourly pricing for the City’s largest elec-
tric customers:
The Electric Rate Stabilization Reserve (RSR) is
projected to be $15.5 million by year-end, $1.8 mil-
lion below the target of $17.3 million. Staff pro-
poses shifting $1.9 million in interest earnings
from the RSR to the Calaveras Reserve. Although
no formal policy for this transfer has been adopted
by Council, funds have previously been trans-
formed from the RSR to Calaveras to strengthen
the utility’s position in the era of deregulation.
5
These earnings were accrued inthe RSR, but
earned on the Calaveras Reserve reserve balance,
GAS FUND
Other revenues in the Gas Fund are being adjusted
upward by $. 1 million for higher gas connection
services for new utility customers and by $. 15 mil-
lion for higher interest income earnings, Gas sales
are mildly exceeding budget to date due to a cold
winter, butno adjustment to sales appears neces-
sary at this time.
The price of natural gas has risen sharp!y in the past
several months. The unusually cold weather which
hit the Pacific Northwest in December, coupled
with lower storage levels, have caused wholesale
gas prices to rise significantly. As a result, gas
commodity costs were $.3 million above the bud-
get at midyear. Staff projects gas prices will remain
high during the remainder of 1996-97, necessitat-
ing a $1.7 million increase in the gas purchase bud-
get. As a consequence of higher service connection
.activity, an additional $. 1 million is needed in the
Gas System Extension capital project.
Despite the proposed increase to the gas purchase
budget, the Gas Fund’s RSR is projected to
approach $10 million by the year-end, $3.2 million
above the maximum reserve guideline.
REFUSE FUND
Year-to-date refuse billings were 1 percent below
budget as a result of reduced billings in the residen-
tial customer class: Other revenues varied favor-
ably from budget .in the following categories:
disposal fees at the landfill ($.06 million), the
City’s share of PASCO billed services ($: 1 mil-
lion), state tax refunds and LATP rent ($.04 mil-
lion), and royalty income from gas exploration at
the landfill ($. 1 million). Offsetting these increases
is a $.5 million downward adjustment in miscella-
neous revenues. These revenues were overstated in
the adopted budget.
The Refuse Fund’s expenses are also being reduced
based upon actual activity during the first six
months of 1996-97. The City’s share of SMART
Station operations and maintenance expenses will
be $.5 million less than budget based on a revised
budget submitted by the City of Sunnyvale, admin-
istrator of SMART Station. Other budget adjust-
ments include reductions for: the Hazardous Waste
Removal Program and Composting ($1.0 million),
Landfill Operations ($.03 million), and Recycling
($.05 million).
The Refuse Fund’s ending RSR balance for 1996-
97 is projected at $4.4 million.
STORM DRAINAGE FUND
Storm Drainage revenues were 6 percent below
budget at midyear. The revenue shortfall princi-
pally results from refunds to customers determined
to be exempt from storm drainage charges. Staff "
proposes reducing sales revenues by $.08 million.
On the expense side, the City’s contribution
towards Santa Clara Valley Water District’s Non-
Source Control Program will be~$.08 million less
than originally budgeted. In addition, the purchase
of a high-powered camera ($.05 million), budgeted
in 1996-97 and used for locating drain obstruc-
tions, has been postponed. These funds are being
returned to reserves.
The RSR is projected to be $.6 million by year-end.
Although the Storm Drainage fund does not have a
formal reserve policy, the fund is expected to main-
tain a positive cash flow until the next proposed
rate increase.
WASTEWATER COLLECTION FUND
Wastewater Collection revenues are projected to be
$.5 million higher than the adopted budget. Of this
amount, $.3 million is due to higher groundwater
discharge fees resulting from an increase in the vol-
ume of wastewater discharged by local industry.
The balance of the revenue increase is attributable
to higher interest earnings ($.08 million) and
higher than projected revenues ($.08 million) from
new sewer connection activities.
WASTEWATER TREATMENT FUND
Revenues and expenditures are close to budget in
the first half of 1996-97 and require no adjust-
ments. The Fund’s RSR is projected to remain
within limit guidelines.
Despite wet weather in the second quarter, water
sales through midyear were 3 percent above bud-
get. This positive variance is attributable to water
consumption that is 2 percent higher than antici-
pated. Revenue from water service connections is
being increased by $.04 million to reflect the high
volume of new customer connections. During .
1996-97, the City will receive a refund of $.4 mil-
lion from the San Francisco Water Department
(SFWD). This refund results.from a favorable set-
.tlement between SFWD and the County of San
Mateo regarding property taxes paid by SFWD in
prior years.
Since 1989, the Water Utility has been paying rent
simultaneously to Stanford and the City for use of
the Mayfield Reservoir. It has been determined that
the General Fund should reimburse the Water Util-
ity $.05 million for the payments to Stanford.
Water purchase costs exceeded budget by 9 percent
at midyear, a result of higher than expected water
consumption. The water purchase budget needs to
be adjusted upward by $.35 million to coyeraddi-
tional purchase costs. In the Water Service Con-
nectionscapital project, expenses need to be
increased by $.05 million to cover the costs of
higher than expected service connections being
requested by new customers.
The RSR balance at the end of 1996-97 is projected
to be around $5.4 million, the target level for the
Water Fund.
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO ADJUST
BUDGETED REVENUES AND EXPENDITURES IN ACCORDANCE WITH THE
RECOMMENDATIONS IN THE MIDYEAR REPORT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
24, 1996 did adopt a budget for ’fiscal year 1996-97; and
WHEREAS, after reviewing the current budgeted revenues and
expenditures for fiscal year 1996-97, adjustments to the budget are
recommended to more accurately reflect year-end projections; and
NOW, THEREFORE, the Council of the .City of Palo Alto .does
ORDAIN as follows:
SECTION i.- The sum of Two Million Four Hundred Eighteen
Thousand Nine Hundred and Ninety Three Dollars(S2,418,993) is ~hereby
added to the Budget Stabilization Reserve. (BSR) in the General Fund
to reflect all revenue and expenditure changes as described in
Exhibit ~A", which is attached to this ordinance and incorporated
herein by this reference. As a result of these changes,, the
budgeted BSR will increase from $22,128,000 to $24,546,993.
~. The sum of One Hundred Sixty Three Thousand Dollars
($163,000) is hereby added to the Streets and Sidewalks Reserve in
the General Fund .to reflect all revenue changes as displayed in
Exhibit ~A~. As a result of this change, the budgeted Streets and
Sidewalks Reserve will increase fromS0 to $163,000.
~. The sum of Twenty Five Thousand~Dollars ($25,000)
is hereby added to the Printing and Mailing Services Fund in the
Internal Service Fund to reflect revenue change as displayed in
Exhibit ~A". As a result of this change, the budgeted Retained
Earnings will increase from $267,000 to $292,000.
~. The sum of Two Hundred Fifty Thousand Dollars
($250,000). is hereby transferred into the Downtown Planned Community
Zone Contributions Fund and the fund balance is correspondingly
increased as displayed in Exhibit ~A".
SECTION 5. The sum of Two Hundred Fifty Thousand Dollars
($250,000)is hereby transferred out of the University Avenue Parking
District Fund and the estimated fund balance is correspondingly
reduced as displayed in Exhibit ~A".
SECTION 6. The General Fund ~Table of Organization"~ is hereby
changed as displayed in Exhibit ~C" to authorize the use of four
police position slots to begin the hiring process for vacancies
resulting from documented retirements.
SECTIQN 7. The sum of Fifty Thousand Dollars($50,000)is
hereby added to expense in the Commercial Housing In-Lieu Fund and
the fund balance is correspondingly reduced as displayed in Exhibit
"a".
~T-~I__~. The sum of Two Million Six Hundred Seventy Six
Thousand Five Hundred Dollars($2,676,500)is hereby added to the
budgeted Rate Stabilization Reserve (RSR) in theElectric Fund to
reflect all changes as displayed in Exhibit
SECTION 9. The sum of One Million Nine Hundred Thousand
Dollars(S1,900,000) is hereby added to the Calaveras Reserve in the
Electric Fund to reflect, all changes as displayed in Exhibit ~B"
~T~L_I~. The sum of Eight Hundred and Three Thousand
Dollars(S803,000) is hereby added ~to the Central Valley Project
Reserve in the Electric Fund to reflect, all changes as displayed in
Exhibit-~B-.
~QT.IQ~I_II. The sum of One Million Four Hundred Ninety Seven
Thousand Dollars ($1,497,000) is hereby reduced from the budgeted
Rate Stabilization Reserve in the Gas Fund to reflect all changes
as displayed in Exhibit ~B".
~Q~__I~. The sum of Four Hundred Fifty Four Thousand
Dollars (-$454,000) is hereby added to the budgeted Rate
Stabilization Reserve in the Refuse Fund to reflect all changes as
displayed in Exhibit "B".
SECTION 19. The sum of Forty Eight Thousand Three Hundred
Seventy Nine Dollars ($48,379) is hereby added to the budgeted Rate
Stabilization Reserve in the Storm Drainage Fund to reflect ~all
changes as displayed in Exhibit ~B".
~_~. The sum of Four Hundred Sixty Thousand .Dollars
($460,000) is hereby added to the budgeted Rate Stabilization
Reserve in the Wastewater Collection Fund to reflect all changes as
displayed in Exhibit ~B".
SECTIQN 15. The sum of Fifty Four Thousand Three Hundred and
Seventy Four Dollars ($54,374) is hereby added to the budgeted Rate
Stabilization Reserve in the Water Fund to reflect all changes as
displayed in Exhibit ~B".
SECTION 16. 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 17. 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.
~F~. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption~
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
Senior Asst. City Attorney
City Clerk
APPROVED AS TO FORM:
APPROVED:
Mayor
City Manager
Deputy City Manager,
Administrative
Services Department
EXHIBIT A
1996-1997 Midyear Adjustments
General Fund and Special Revenue Fund
A’~tivity Object Description Debit Credit
Code Code
!General Fund
’Revenue
02000O0O 1180
02000000 1183
02708340 1203.
02704200 1201
02000000 1101
02000000 1103
02000000 1181
02000000 1188
02000000 1185
02750010 1251
1309
02751100 1309
1309
03000000 1187
03000000 1603
Expenditures
02000000 4051
02751100 3813
02751100 3199
02514273 3104
02111130 3107
02433160 3107
02432140 3125
02613100 3904
02615250 3120
Documentary Transfer Tax
Motor Vehicle in Lieu Tax
Parking Violation
Traffic Fines
Property Tax - Secured
Property Tax- Unsecured
Sales Tax
Sales Tax - County
Transient Occupancy Tax
SLAC Reimbursement for Fire Services
76,000
52,000
320,000
127,000
6,000
88,000
40,000
1,364,000
67,000
650,000
÷
+
+
+
+
+
+
+
Paramedic Fees
Paramedic Fees - Bad Debt Offset
Paramedic Fees - Bad Debt Offset
Utility Users Tax - Telephone
Property Rentals at Cubberley
Total General Fund Revenue
Transfer to Water Fund
Bad Debt - Paramedic
Paramedic Physician Contract
Facilities Management Software
Transfer of Internet Consulting Funds
Transfer of Internet Consulting Funds
379,000
84,000
591,000
54,374
12,000
5~633
36,000
81,000
93,000
70,000
2,906,000
379,000
36,000
Customer Information System Maintenance
Sand Hill Printing Expenses
Comprehensive Plan EIR Printing Expenses
Total General Fund Expenditures
10,000
25,000
5,000
148,007 $415,000
+
+
+
Change in Reserve
~)2000000 3822
03000000 3823
Budget Stabilization Reserve
Streets and Sidewalks Reserve 2,41’8,993
163,000
+
÷
EXHIBITA
1996-1997 Midyear Adjustments
General Fund and Special RevenueFund
Activity Object
Code Code
INTERNAL SERVICE FUND
83445250 1904
E~3445100 3809
Description Debit Credit
Printing Charges
Change in Retained Earnings 25,000
SPECIAL REVENUE FUND
UniversitvAvenue Parking D
36000000 4070
36000000 3850
Downtown Planned Commur
50000000 2025
50000000 3850
Commercial Housinoln-Lieu
34000000 3199
34000000 3850
strJ_c_t
Mitigation Fees
Change in Fund Balance
Mitigation Fees
iChange in Fund Balance
250,000
250,000
50,000
25,000
250,000
250,000
50,000
+
+
EXHIBIT B
1996-97 Midyear Adjustments
Enterprise Funds
Activity Object
Code Code Descriptions Debit Credit
Electric Fund
23 230160 1890
23 230160 3611
23 230160 3612
23 230160 3315
23 241280 3199
23 250790/9453 3879
23 250790/9610 3879
23 250780/8928 3879
!Refunds from WAPA
Electric Purchases
Electric Purchases
Joint-Agency Debt Service
Contract Services
Underground District #35 Capital Project
Underground District #36 Capital Project
Electric Services and Meters Capital Project
75,000
142,500
250,000
200,000
803,000
4,546,000
379,000
319,000
!Chanaein Reserve
23 000000 3808
23 000000 3805
23 000000 3804
Gas Fund
24 000000 1402
24 000000 1601
24 230160 3604
24 230160 3607
24 250780/8017 3879
Chanae in Resewe
Change to Calaveras
Change to CVP Reserve
Change to RSR
Total Electric Fund
Connection Charges
Interest Income
Gas Commodity Pumhases,
Gas Transmission
JL Project Expenditures
1,900,000’
803,000
2r676r500
6,047,000
1,732,000
100,000
6,047,000
100,000
150,000~
85,000
24 000000 3804
25 000000 1401
25 000000 1431
25 000000 1537
25 000000 1651
25 000000 1660
125 000000 1-898
25 551430 3231
25 551440 3199
25 551450 3199
25 552450 3199
25 551460 3400
Changein Resewe
25 000000 3804
Changeto RSR
Total Gas Fund
Disposal Fee
PASCO Revenues
State of Califomia
LATP Rent
Royalty Payments
Misc. Revenues
Landfill Operations
Recycling
Hazardous Waste
SMART Station O & M
Composting
Change tO RSR
Total Refuse Fund
1,832,000
500,000
454,000
954,000
1,497,000
1,832,000
60,000
100,000
26,000
15,000
100,000
25,000
50,000
75,000
483,000
20,000
954,000
-.I-
+
+
+
+
+
+
+
+
+
+
+
+
+
+
~+
+
. EXHIBIT B
1996-97 Midyear Adjustments
Enterprise Funds
Activity Object
Code Code
Storm Drainaqe Fund
28 000000 1713
Descriptiohs
Storm Drain Charges to Commercial
Debit
82,000
Credit
28 582530 3199
28 582450 3505
Chanaein Resewe
28 000000 3804
WW Collection Fund
27 000000 1752
27 000000 1601
27 000000 1401
Chanoein Resewe
27 000000 3804
Water Fund
22 000000 "1898
22 000000 1401
22 000000 2011
22 230160 3603
22 250780/8013 3879
Chanoein Resewe
22000000 3804
SCVWD Contributions
Tools & Equipments
Change to RSR
Total Storm Drainage Fund
Groundwater Discharge Fee
Interest Income
Connection Services
Change to RSR
Total WW Collection Fund
Refund from SFWD
Connection Revenues
Transfer from General Fund
!Water Pumhases
Water Service Connection CIP
Change to RSR
Total Water Fund
Total Enterprise Funds
48,379
130,379
460,000
460,000
350,000
50,000
54,374
454,3741
9,877,753
82,000~
48,379
130,379
300,000
80,000
80,000
460,000
362,500
37,500
54,374
454,374
9,877,753
+
+
+
+
+
+
+
EXHIBIT C
TABLE OF ORGANIZATION - GENERAL FUND
Actual Adjusted Adopted
Budget Budget Budget
1994-95 1995-96 Changes 1996-97
Parking Examiner 0.00 0.00 0.50 0.50
Police Agent 19.00 19.00 19.00
Police Captain 2.00 2.00 2.00
Police Lieutenant 6.00 6.00 6.00
Police Officer - Training 6.00 6.00 6.00
Police Officer 46.00 47.00 47.00
Police Records-Specialist 10.00 10.00 10.00
Police Sergeant 13.00 13.00 13.00
Program Assistant 1.00 1.00 1.00
Property & Evidence Technician 2.00 2.00 "2.00
Staff Secretary 5.00 5.00 5.00
Superintendent, Animal Services 1.00 1.00 1.00
Supervisor, Police Services 2.00 3.00 3.00
Supervisor, Animal Services 1.00 1.00 1.00
Veterinarian 1.00 1.00 1.00
Veterinarian Technician 2.00 2.00 2.00
Volunteer Coordinator 0.50 1.00 1.00
TOTALS 167.50 167.00 0.50 167.50
Changes
Adopted
Budget
1997-98
0.50
19.00
2.00
6.00
6.00
47.00
10.00
13.00
1.00
2.00
5.00
1.00
3.00
1.00
1.00
2.00
1.00
167.50
The Police Department is authorized four position slots to accommodate persons on a disability pay status and to begin the
hiring process for vacancies resulting from documented planned retirements.
PUBLIC WORKS DEPARTMENT
Administrator, Public Works
Associate Engineer
Asst Director, Public Works
Building Servieeperson
Building Serviceperson-Lead
Cement Finisher (h)
Cement Finisher-Lead
Control/Account specialist
Coordinator, Pub Works Projects
Deputy Director, PW Operations
Director of Public Works/City Engineer
Engineer
1.00 1.00 .1.00 1.00
2.00 2.00 2.00 2.00
0.75 0.75 0.75 0.75
5.00 5.00 5.00 5.00
2.00 2.00 2.00 2.00
2.00 1.70 1.00(h)2.70 2.70
1.00 0.85 0.85 0.85
1.00 1.00 1.00 1.00
1.120 1.00 1.00 2.00 2.00
1.00 0.40 0.40 0.40
1.00 1.00 1.00 1.00
3.00 2.90 2.90 2.90
Attachment 1
ELECTRIC FUND SUMMARY
(ooo,s)
REVENUE
Electric Sales
Other Revenues
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
Midyear
Adjusted Projected
Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97
60,653 58,400 58,400
5,903 12,238 13,041
4,935 6,957 6,957
71,491 77,595 78,398
Difference
0
803
0
803
Pumhases
Other Expenses
TOTAL OPERATING EXPENSES
24,492 32,340 27,415
28,672 30,947 30,703
63,287 58,118
(4,925)(244)
(5,!69)
Capital Expenses
TOTAL EXPENSES
TO/(FROM) RESERVES
11,881
65,045
6,446
14,135
77,422
173
14,728-
72,846
5,552
593
(4,576)
5,379
RESERVES
Rate Stabilization
Other Reserves
Total
33,138
25,972
59,110
12,842
47,768
60,610
15,519
50,470
66,521
2,677
2,702
5,379
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum
11,518
17,277
23,036
17,277
23,036.
Attachment 2
GAS FUND SUMMARY
(ooo,s)
REVENUE
Midyear
Adj usted Projected
Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97 Difference
Gas Sales
Other Revenues
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
16,667 16,662
1,440 1,204
1,898 1,763
20,005 19,629
16,662 0
1,454 250
1,763 0
19,879 250
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TO/(FROM) RESERVES
6,861 9,369
6,364 7,574
13;225 161943
4,270 4,927
17,495 21,870
2,510 (2,241)
11,016 1,647
7,574 0
18,590 1,647
5,027 100
23,617 1,747-
(3,738)(1,497)
RESERVES
Rate Stabilization
Other Reserves
Total
13,791 11,521
3,716 3,745
10,024 (1,497)
3,745 0
17,507 15,266 13,769 (1,497)
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum
3,411
5,116
6,822
3,411
5,116
6,822
Attachment 3
REFUSE FUND SUMMARY
(ooo,s)
REVENUE
Customer Revenue
Other Revenue
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
Adjusted
Actual Budget
FY 95-96 FY. 96-97
Midyear
Projected
Budget
FY 96=97
17,146 18,573 18;573
2,638 2,822 2,623
458 309 309
Difference
0
(199)
0
20,242 21,704 21,505 (199)
Payments to PASCO
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TO/(FROM) RESERVES
6,008
t3,247
19,255
0
19,255
987
6,455
15,073
21,528
600
22,128
(424)
.6,455
14,420
20,875
600
21,475
30
0
(653)
(653)
0
(653)
454
RESERVES
Rate Stabilization
Other Resewes
Total
4,483
354
4,837
3,941
472
4,413
4,395
472
4,867
454
0
454
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum¯
1,810
2,720
3,620
1,810
2,720
3,620
Attachment 4
STORM DRAINAGE FUND SUMMARY
(ooo,s)
REVENUE
Midyear
Adjusted Projected
Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97 Difference
Customer Revenues
Other Revenues
Reappropriations / Encumbrances
2,090 2,166 2,084
86 72 72
4,464 4,758 4,758
(82)
0
0
TOTAL REVENUE
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
TOTAL EXPENSES
TO/(FROM) RESERVES
6,640 6,996 6,914 (82)
1,626 1,953 1,823
1,626 1,953 1,823
7,331 7,171 7,171
260 275 275
9,217 9,399 9,269
(2,577)(2,403)(2,355)
(130)
(130)
0
0
(130)
48
RESERVES
Rate Stabilization
Other Reserves
Total
2,996 593 641 48
0 0 0 0
2,996 593 641 48
FY 1996-97 APPROVED RSR LEVELS
Minimum ’N/A N/A
Target 500 500
Maximum N/A N/A
Attachment 5
WASTEWATER COLLECTION FUND SUMMARY
(oo0,s)
REVENUE
Midyear
Adjusted Projected
Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97 Difference
Customer Revenues
Other Revenues
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
9,379 8,849 8,849 0
1,480 1,072 1,532 460
2,908 4,864 4,864 0
13,767 14,785 15,245 460
Sewer Treatment Exp.
Operating Expenses
TOTAL OPERA~NG EXPENSES
Capital Expenses
Principal Payments
TOTALEXPENSES
TO/(FROM) RESERVES
3,625 3,936
1,916 2,313
5,541 6,249
6,681 9,680
156 165
12,378,16,094
1,389 (1,309)
3,936
2,313
6,249
9,680
165
16,094
(849)
0
0
0
0
0
460
RESERVES
Rate Stabilization
Other Reserves
Total
8,931 7,619 8,079 460
354 372 372 0
9,285 7,991 8,451 460
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum
.2,502
3,753
5,004
2,502
3,753
5,004
Attachment 6
WASTEWATER TREATMENT FUND SUMMARY
(ooo,s)
REVENUE
Midyear
Adjusted Projected
Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97 Difference
Treatment Revenues
Other Revenues
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
9,966 10,834 10,834
539 516 516
2,473 2,942 2,942
12,978 14,292 14,292
0
0
0
Operating Expenses
.TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
TOTAL EXPENSES
TOI(FROM) RESERVES
9,811 11,041
9,811 11,041
2,257 2,482
339 360
12,407 13,883
571 409
tl;041
.11,041
2,482
360
13,883
409
0
0
0
0
0
0
RESERVES
Rate Stabilization
Other Reserves
Total
2,803 3,124 3,124
1,015 1,103 1,103
3,818 4,227 4,227
0
0
0
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum
1,602
2,403
3,204
1,602
2,403
3,204
REVENUE
Attachment 7
WATER FUND SUMMARY
(ooo,s)
Midyear
Adjusted Projected
,Actual Budget Budget
FY 95-96 FY 96-97 FY 96-97 Difference
Water Sales
Other Revenues
Reappropriations / Encumbrances
TOTAL REVENUE
EXPENSES
11,823 11,685 11,685 0
952 863 1,317 454
3,233 2,526 2,526 0
16,008 15,074 15,528 454
Purchases
Other Expenses
TOTAL oPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TOI(FROM)RESERVES
4,595 4,220 4,570
5,763 7,048 7,048
10,358 11,268 11,618
5,164 5,232 5,282
15,522 16,500 16,900
486 (1,426)(1,372)
350
0
35O
5O
400
54
RESERVES
Rate Stabilization
Other Reserves
Total
6,838 5,349 5,403 54
707 769 769’0
7,545 6,118 6,172 4
FY 1996-97 APPROVED RSR LEVELS
Minimum
Target
Maximum
3,569
5,353
7,138
3,569
5,353
7,138