HomeMy WebLinkAbout1997-11-13 City Council (9)City of Palo Alto
City Manager’s Report,
TO:HONORABLE CITY COUNCIL
ATTENTION:
FROM:
DATE:
SUBJECT:
FINANCE COMMITTEE
CiTY MANAGER
NOVEMBER 13, 1997
1996-97 FINANCIAL
BUDGET CLOSING
DEPARTMENT: ADMINISTRATIVE
SERVICES
C ~MR:452:97
SUMMARY STATUS REPORT AND
RECOMMENDATION
Staff recommends the Finance Committee review and forward the attached ordinance to the
City Council for approval, authorizing: 1) closing of the-1996-97 Budget; 2) reappropriation
of funds into the 1997-98 Budget; 3) closing of capital improvement projects which have
been completed and transfer of remaining balances to the appropriate reserves; and 4) initial
funding of the General Fund Infrastructure Reserve, consistent with the Council approved
General Fund-Reserves policy (CMR:210:97).
POLICY IMPLICATIONS ---
Adoption of the year-end budget closing ordinance does not represent achange to existing
policies.
EXECUTIVE SUMMARY
This report summarizes the financial results for Fiscal-Year 1996-97 for the General Fund,
Capital Improvement Fund, Intemal Services Funds and the Enterprise Funds. It provides
an analysis of the performance of each fund in comparison to the budget, as adopted by
Council and adjusted throughout the fiscal year. Changes in the various factors affecting the
City’s financial performance are identified, and the impact of such changes is assessed.
A "Year-End Summary" section, presents significant financial results and trends from the
1,996-97 fiscal year. This is followed by a more detailed analysis of the reVenues, expenses
and reserves of the City’s principal funds.
CMR:452:97 ~Page 1 of 24
The City’s financial position remains healthy, with the General Fund reporting a net
operating surplus of $5.8 million. The Electric, Gas, Refuse, Wastewater Collection and
Water Funds ended the year with Rate Stabilization Reserves (RSR) above the Council-
approved maximum levels. During the 1998-99 budget process, staff will recommend a
revised reserve policy for the Enterprise Funds which will address the excess reserve issues.
FISCAL IMPACT
Adoption of the attached budget closing ordinance allows-for reappropriation and carryover
of funding from the 1996-97 Budget for the completion of specific operating budget
programs or projects in the current fiscal year. In addition, the closing of completed capital
improvement projects balances to the Budget Stabilization Reserve (BSR) releases unspent
monies for further appropriation by Council. Finally, the BSR is recommended to be reduced
by $8.2 million to fund the newly created General Fund Infrastructure Reserve, consistent
with the recommendations in CMR:210:97, the General Reserves Policy adopted by Council
June 23, 1997.
ENVIRONMENTAL ASSESSMENT
The action recommended is not a project for purposes of the California Environmental
Quality Act.
ATTACHMENT
1996-97 Year-End Summary
PREPARED BY: Tony Sandhu, Senior Accountant
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CC: n/a
Melisga Cavallo
Acting Director
Manage///
CMR:452:97 Page 2 of 24
YEAR END HIGHLIGHTS
REVENUE OVERVIEW AND BUDGET CHALLENGES
California’s and Palo Alto’s economies are strong. A recent bulletin from the State’s Department of Finance reports
that "economic indicators for California remain solid.ly on the positive side." Silicon Valley hi-tech growth and
exports continue to fuel local economic growth. The economic picture translates into solid revenue streams for the
General Fund, particularly in areas sensitive to business activity. On the expenditure side, the General Fund is
closing the fiscal year well within the adjusted budget.
The combined impact of the strong economy and
prudent expenditure management has resulted in a $5.8
million surplus for 1996-97.
General Fund revenues were $4.6 million, or 5.4
percent higher than the previous fiscal year and were
.8 percent, or $.7 million higher than the 1996-97
adjusted budget. Major contributors to the positive
results were transient occupancy, documentary
transfer and utility user taxes and permit fees. Sales tax
receipts grew by 2.1 percent, or $.38 million over the
1995-96 levels, essentially maintaining the momentum
achieved in 1995-96. After taking into account a prior
year adjustment, property taxes we.re 1.1 percent over
prior year revenues. It is important to note that 1995-
96 was a banner year, with revenues rising by $5.8
million, or 7 percent over the prior year.
General Fund: Sales Tax
,~ 16
14 ~,.I __
ed
13 - ~" Adjusted
~I I I I
93 94 95 96 97
Year
Gener.al Fund expenditures were $5.4 million or 6.7 percent higher than the previous fiscal ~ear. Actual
expenditures, however, were $2.0 million, or 2.3 percent lower than the adjusted budget for 1996-97. Lower-than-
anticipated expenditures were a consequence of staff vacancies, lower contractual services and lower water usage.
Although the General Fund’s current financial position is sound, significant fiscal challenges lie ahead. The City’s
infrastructure rehabilitation requirements currently stand at $95.0 million over the next 10 years. In addition, new
traffic and transportation infrastructure projects worth $42.7 over the next decade also have been identified to
address public and Council concerns. Additional
demands and pressures on General Fund resourcesUtility Users Tax include implementation of the Comprehensive Plan,
5.6,
I
94 95 96 97
Year
5
the Golf Course and Library Master Plans; new
facility needs, such as a joint!ibrary -with the school
district and a public safety-building; the unknown
impact of utility deregulation and c.ompetition, which
may place constraints on equity transfers; the pending
landfill closure, planned for the year 2003-04, which
means a loss of around $1.0 million in rental income;
extension of the Palo Alto Unified School District
athletic field maintenance agreement; and potential
impacts from Proposition 218. Consequently, careful
financial planning will continue to be essential to the
City’s strategy in leading the City toward the 21st
century.
CMR:457:97 Page 3 of 24
GENERAL FUND EXPENDITURES
General Fund operating departments spent $2.01 million less than their adjusted budgets. Savings occurred in the
following departments:
¯Administrative Departments: Salary savings resulted in the Information Technology Services area, due to
difficulty in recruiting and filling vacant technical positions.
¯Community Services: Heavy rains during winter months caused water irrigation savings in the Golf Course and
Parks budgets.
¯Police: Salary savings were realized from difficulties in filling sworn positions.In addition, there Were contract
expense savings due to delay in conducting a traffic study.
¯Public Works: Lower expenses occurred in contract services in the Trees and Structure and Grounds functional
areas. This was due to a combination of project delays and unfilled vacancies.
GENERAL FUND RESERVES
Overall, General Fund reserves increased $4.9 million. This resulted from robust revenues and savings in the
operating departments. Based on the revised Reserve Policy, approved by the Council in June, an Infrastructure
Reserve was created in 1996-97. The year-
end Budget Stabilization Reserve balance
of $17.9 million reflects funding the General Fund Discretionary Reserves
Infrastructure Reserve at a recommended
level of $8.15 million.
UTILITY FUNDS
The Rate Stabilization Reserve in the
Electric, Gas, Wastewater Collection,
Refuse and Water Funds are above the
Council-approved guideline levels. This
was driven by strong revenues, due to
higher,than-projected metered utility
usage, as well as lower utility purchase
costs. In addition, there were savings in
designing and implementing Demand Side
Management programs since staff spent
cons.iderable time addressing electric
utility deregulation issues. A number of
capital l~rojects were also completed below
their budgeted costs, with savings being
returned to reserves.
Reserve forEncumbrances &~R.ea.ppropriations$3./
Infrastructure Other
Reserve $8.2
Streets &Sidewalks
$.4
Reserve for
Emergencies $5.6
Budget
Stabilization
Reserve $17.9
$MillionsIn the Electric Fund, the 1997-98 adopted
budget includes adding an additional $10.5
million to the Calaveras Reserve. The goal is to reach a $92.1 million balance by January 1, 2001 to pay for
"stranded costs"associated with the Calaveras Hydroelectric Project. The Calaveras Reserve now totals $41.7
million, which represents 45 percent of this goal. In the Refuse Fund, the proposed acquisition and development of
the former Los Altos Treatment Plant site in 1997-98 will help to bring reserves within the approved limits. Based
on changing regulatory and business conditions in the utility industry, staff will present to Council recommended
revisions to the Utility Funds Reserve Policy during the 1998-99 budget process.
CMR:457:97 Page 4 of 24
_Revenues
Sales tax
Property taxes
Utility users tax
Transient Occupancy tax-
Other taxes, fines and penalitie
Service fees & permits
Charges to Other funds
Rental Income
Other revenues
Total Revenues
Plus Operating Transfers In
Plus Encumbrances &
Reappropriations
Total Source of Fund
Year-End 1996-97 " :° ¯
General Fund Summary ($000’s)
Plus ActualsVariances
Plus
Encum. &
Reapps.
Actual Adopted Adjusted Actual
1995-96 Budget Budget 1996-97
1996-97 1996-97
18,277 (323)
7,735 (165)
5,509 249
5,107 527
5,299 181
9,087 863
6,938 (252)
9,544 120
8,101 (478)
75,597 722
12,759 (16)
17,895 17,169 18,600 18,277
7,818 7,772 7,900 7,735
5,098 -"5,167 5,260 5,509
4,279 3,930 4,580 5,107
5,129 4,741 5,118 5,299
8,257 8,639 8,224 9,087
6,294 7,190 7,190 6,938
9,308 9,408 9,424 9,544
8,212 7,831 8,579 8,101
72,290 71,847 74,875 75,597
11,504 12,775 ~12,775 12,759
Encum. &
Reapps.
2,802 2,802 2,802
$83,794 $8,4,622 $90,452 $91,158 $91,158 $706
Expenditures
Administrative Departments 11,336
Community Services 15,496
Fire 12,236
Planning 4,043
Police 14,634
Public Works 9,207
Non-Departmental 4,736
Total Expenditures 71,688
Operating Transfers Out 5,534
Total Use of Funds . $77,222.
Net Surplus/(Deficit)$6,572
11,945 13,367 11,876
16,300 17,510 16,514
12,569 . 13,103 12,841
4,142 5,091 4,498
15,161 15,873 15,354
10,010 10,961 .9,965
7,711 5,023 4,816
77,838 80,928 75,864
5,696 6,486 6,469
$83,534 $87,414 $82,333
$1,088 $3,038 $8,825
901
513
260
579
320
498
3,071
0
$3,071
($3,071)
12,777 (590)¯
17,027 (483)
13,101 (2)
5,077 (14)
15,674 (199) ¯
10,463 (498)
4,816 (207)
78,935 (1,993)
6,469 (17)
$85,404 ($2,010)
$5,754 $2,716
CMR:452:97 Page 5 of 24
GENERAL FUND REVENUES
Sales Tax
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$17,895 $18,600 $18,277 $(323)
Compared to the Adjusted Budget, actual sales tax revenues are $.32 million, or 1.7 percent
below budget. The City’s sales tax receipts, however, are $.38 million, or 2.1 percent higher
than the 1995-96 receipts. To put 1996-97 receipts in perspective, it is important to note that
1995-96 was an especially strong year for City sales taxes. They rose $3.1 million, or 21.2
percent over .1994-95 revenues. While the City has maintained 1996-97 sales tax levels
achieved in 1995-96, sizable or double-digit percent increases will be difficult to sustain in
following years..
The segments curbing further growth in 1996-97 and causing the variance from budget.are
electronic equipment, auto leasing and light industry. In the customarily volatile electronics
industry, receipts fell significantly in the last two quarters of 1996-97. In addition, as a result
of a change in State law and regulations, the City has also lost approximately $.2 million in
sales tax revenue from the leasing of vehicles. Sales or use tax paid when leasing a vehicle
is now sent to the location where the leased vehicle was sold. In light industry, an important
tax generator has ceased sales activity in the City. The primary business segments
responsible for growth in 1996-97 sales taxes are new auto sales, department stores, and
restaurants. It is important to recall that Bloom’_mgdale’s opened during 1996-97, occupying
space that had previously been vacant.
Property.Tax
Actual 1995-96 Adjusted Budget Actual 1996;97 Variance with
1996-97 Budget
$7,818 $7,900-$7,735 $ (165)
Property tax revenue ended the year 2 percent, or $.17 million beloW the adjusted budget and
$.83 million below the prior year actual. This variance is caused by a negative 1995-96
CMR:452:97 Page 6 of 24
adjustment of $.19 million that the County notified the City of in 1996-97. Without this
adjustment, 1996-97 property taxes would have been $7.9 million instead of $7.7 million,
a 1.1 percent increase over 1995-96 revenues.
The City continues to use conservative assumptions in budgeting property tax revenues.
While the County predicted a 3.8 to 4.5 percent growth rate in the assessment roll for 1996-
97, the City experienced a slightly lower rate. It is important to note that the County has
received State funding to speed up review of backlogged appeals on assessments. These
reviews result in prior year, negative adjustments to local jurisdictions. Such adjustments
can curb property tax growth that may have been anticipated due to higher property.
valuations resulting from active property turnover.
Utility Users Tax
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$5,098 $5,260 $5,509 $249
Revenues from the utility users tax (UUT) have staged a comeback from last year. Total
UUT revenues were $.25 million, or 4.7 percent above budget. Compared to 1995-96,
revenues increased by $.41 million, or 8.1 percent. UUT revenues from sale of City utilities
were $. 10 million, or 2.7 percent above budget, and $.14 million, or 3.8 percent over prior
year receipts. Water and Electric sales have exceeded budget, resulting in higher-than-
expected UUT receipts. UUT telephone revenues are $. 15 million, or 9.9 percent above the
adjusted budget and $.27 million, or 19.5 percent above 1995-96 levels. The increased
demand for telephone lines for Internet connections and strong business activity have
resulted in higher revenues.
Transient Occupancy Tax
Actual 1995-96
$4,279
Adjusted Budget
1996-97
Actual 1996-97
$4,580 $5,107
Variance with
Budg~
$527
CMR:452:97 Page 7 of 24
Transient occupancy taxes (TOT) continue to rise, as a result of strong business activity in
the area and high demand for hotel and motel rooms in Palo Alto. TOT revenues are $.53
million, or 11.5 percent above a budget that was adjusted upward by $.65 million at midyear.
Revenues for 1996-97 are $.83 million, or 19.4 percent above prior year levels. TOT
revenues are expected to remain strong in 1997-98.
Other Taxes, Fines and Penalties
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget.
$5,129 $5,118 $5,299 $18!
This category consists of documentary transfer taxes, motor vehicle in-lieu taxes, and fines,
such as parking violations and library late fees.
Documentary transfer tax revenue in 1996-97 sustained the robust levels achieved in 1995-
96. Compared to the adjusted budget, transfer taxes were $. 14 million, or 7.8 percent above
budget. This year’s taxes were $.08 million, or 4 percent above prior year levels. The strong
transfer tax receipts reflect a vibrant residential and commercial real estate market.
Motor vehicle in-lieu taxes are $.12 million, or 5.5 percent below budget and $.06 million,
or 2.7 percent below prior year levels. This revenue source is based on vehicle license fees -
(which, in turn, are based on the value of vehicles). Revenues are distributed to cities in
Santa Clara County according to population. It appears that 1996-97 values grew marginally
compared to 1995-96, and that the City’s share ofthxes based on population declined relative
to other Santa Clara-County cities experiencing higher growth rates. These factors
contributed to the negative variance cited above.
Fine revenues are $.16 million, or 14.9 percent above budget and $.19 million, or 18.1
percent above 1995-96 revenues. Due to a high vacancy rate among parking citation
personnel, citations were low in the latter part of 1995-96 and the first half of 1996-97. With
the restoration of full staffing levels during 1996-97, both the number of citations and the
resulting revenue have increased.
CMR:452:97 Page 8 of 24
Service Fees and Permits
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$8,257 $8,224 $9,087 $863
Service fees and permits are $.86 million, or 10.5 percent above budget and $.83 million, or
10.1 percent above prior year ac .tuals. As a result of the Sand Hill project plans, the Palo
Alto Medical Foundation project, and vigorous renovation activity in the City, Planning
Department fees and permits have risen dramatically. Fees for zoning, site and design, plan
checking, environmental impact reports, new building permits~ and roofing and electrical
permits have contributed approximately $.89 million to the positive variance. Also
contributing to the positive results are: class program fees ($.!2 million), Children’s Theatre
and other registration fees ($.08 million), in-lieu property taxes from the Palo Alto Medical
Foundation ($.09 million), and higher paramedic revenue ($.03 million).
Areas that fell below budget include: golf fees ($.22 million), due to a heavy rainy season
and increased competition; cable franchise fees ($. 11 million);-park and other entry fees
($.09 million); and special events fees ($.05 million).
Charges to Other Funds
Actual 1995-96
$6,294
Adjusted Budget
1996-97
Actual 1996-97.
$7,190 $6,938
Variance with
Budget
$ (252)
Charges to Other Funds primarily consist of cha~ges to the Utility Funds for services
provided by General Fund departments. Cost Plan (overhead) charges to City utilities were
under budget by $.37 million. General Fund administrative department savings in such areas
as salaries and benefits (due to vacancies) and contract services were responsible for lower
overhead charges to the Utilities. Offsetting the reduced overhead charges are higher line
clearing charges of $. 12 million, due to the timing of line clearingcontract services.
CMR:452:97 Page 9 of 24
Rental Income
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget’
$9,308 $9,424 $9,544 $120
Rental income shows as $.12 million, or 1.2 percent above the adjusted budget. Compared
to the prior year, rental income increased $.24 million, or 2.5 percent. Property rental income
was $.08 million above budget as a result of higher rent from Holiday Inn; rent increased due
to higher-than-anticipated occupancy rates. The remaining favorable variance of $.04
million is a consequence of higher income from City facility rentals.
Other Revenues
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$8,212 $8,579 $8,101 $(478)
Other Revenues, a category that consists of interest income, ftre and communication services
provided to Stanford University, State, Federal and local grants, donations and contributions,
and miscellaneous sales are below budget by $.48 million, or 5.5 percent, and below prior
year actuals by $. 11 million, or 1.3 percent. The negative variance resulted from $.49 million
lower revenues from the San Francisco Airport for the Harbor Marsh Restoration Project, due
to project delays. Other negative variances include: lower donations and contributions ($.05
million), lower license revenues ($.02 million) and lower miscellaneous revenues ($.13
million). Offsetting below-budget revenues was interest income, which exceeded budget by
$.21 million. Additional interest income was realized as a consequence of higher General
Fund reserves.
CMR:452:97 Page 10 of 24
GENERAL FUND EXPENDITURES BY DEPARTMENT
Administration
($ooo)
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$11,336 $13,367 $12,777 ($590)
As a result of vacancies in the Administrative Services Department and the City Manager’s
Office, there was $.4 million in salary and benefit savings. Additional savings resulted from
lower-than-anticipated use of contract services in the same two departments.
Community Services
($ooo)
Actual 1995-96
$15,496
A~ustedBudget
1996-97
$17,510
Actual 1996-97
$17,027
Variance with
Budget
($483)
The positive variance from budget is primarily due to $.29 million lower-than-anticipated
water costs. For the third year, Community Services: water expenses have been low, due
to heavy winter rains. Other savings of $.2 million are due to vacancies and lower vehicle
maintenance charges.
Fire
($ooo)
Actual 1995-96
$12,236
A~ustedBudget
1996-97
$13,103
Actual 1996-97
$13,101
Variance with
Budget
($2)
CMR:452:97 Page 11 of 24
The Fire Department exceeded its overtime budget as a result of a high number of personnel
on disability. This overage was offset by non-salary savings in the operating budget.
Planning
($ooo)
Actual 1995-96 -Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$4,043-$5,091 $5,077 ($14)
The variance is due to salary and benefit savings as a result of vacancies in the department.
Other expenditures were in line with the budget.
Police
($ooo)
Actual 1995-96 Adjusted Budget
1996-97
Actual 1996-97 Variance with
Budget
$14,634 $15,873-$15,674 ($199)
The Police Department experienced a high number of vacancies, mostly in swom positions,
which resulted in salary and benefit savings. These savings occurred despite overtime
expenditures which were over budget. The department also had $.11 million in contract
savings as a result of lower contract costs and delays to a traffic study, which will be
undertaken in 1997-98.
Public Works
($ooo)
Actual 1995-96 A~usted Budget Actual 1996-97 Variance with
1996-97 Budget
$9,207 $10,961 $10,463 ($498)
CMR:452:97 Page 12 of 24
The positive budget variance results primarily from contract services savings in the Trees and
Structure and Grounds functional areas. This was as a result of some of the project’s work
scope not being identifiable prior to heavy rains over the winter. The department
reappropriated funds to complete the work in 1997-98. In addition, Structures and Grounds
had salary savings due to a vacancy.
Non-Departmental
($ooo)
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$4,736 $5,023 $4,816 ($207)
The positive variance principally results from unspent salary and non-salary contingency
funds ($.02 million) and lower-than-budgeted lease payments ($.02 million) to the Palo Alto
Unified School District for the City use of school sites. (The budgeted lease payments were
based on a 3 percent Consumer Price Index (CPI), while the actual CPI was only .2.6
percent.)
Operating Transfers
($ooo)
Actual 1995-96 Adjusted Budget Actual 1996-97 Variance with
1996-97 Budget
$ 5,534 .$6,486 $6,469 ($17)
operating transfers tO the Debt Service Funds were lower-than-budgeted, due to interest
income on reserve funds held by the trustee.
GENERAL FUND RESERVES~
In May 1997, the Council approved a revised General Fund Reserve Policy (CMR:210:97)
establishing a separate reserve for infrastructure capital improvements, initially to be funded
by reducing the Budget Stabilization Reserve (BSR) maximum target level from 30 to 20
CMR:452:97 Page 13 of 24
percent of annual budgeted expenditures. Although the General Fund ended the year with
a surplus of $5.8 million, the transfer of $8.2 million to the Infrastructure Reserve resulted
in a net decrease of $2.5 million to the BSR. The year-end BSR totals $17.9 million, which
is at the maximum target level of the General Fund Reserve Policy. The net effect of all
impacts to the City’s BSR is shown in the following table.
Budget Stabilization Reserve Balance at 7/1/96 ($000)$20,427
Net from General Fund Operations $5,754
Closed Capital Improvement Projects 683
Change in Encumbrance Reserve 1,435
Change in Reserve for Streets and Sidewalks (35)
Change in Reserve for Emergencies (300)
Initial Funding of Infrastructure Reserve (8,152)
Transfer from Encumbrance Reserve to Capital
Improvement Fund (1,791 )
All Other General Fund Reserve Changes (121)
Budget Stabilization Reserve Balance as of July 1, 1997 $17,900
The Reserve for Emergencies has been increased from $5.3 to $5.6 million. The Council-
approved guideline for the reserve is that the balance should be 10 percent of General Fund
salaries and benefits. In 1996-97, a balance of $1.8 million in the encumbrance reserve
related to open capital projects was transferred from the General Fund to the Capital
Improvement Fund to allow for accurate reporting of reserve balances. This amount ($1.8
million) is included in the decrease of $1.4 million in the General Fund encumbrance reserve
for 1996-97 and has no net impact on the BSR.
Provided below are all General Fund reserve balances as of June 30, 1997. The reserves are
separated into "Discretionary Reserves" (those reserves which are uncommitted fi:om a legal
and budgetary perspective) vs. "Non-Discretionary Reserves," (those reserves which have
commitments associated with them),
CMR:452:97 Page 14 of 24
Discretionary Reserves:
Budget Stabilization Reserve
Reserve for Streets-and Sidewalks/School Site
Projects
Reserve for Emergencies
Reserve for Infrastructure Improvements
Total Discretionary Reserves
Non-Discretionary Reserves:
Reserve for Encumbrances/Reappropriation
Reserves for Inventory .and Notes Receivable
Total Non-Discretionary Reserves
TOTAL GENERAL FUND RESERVES
1996
($ooo)
$20,427
393
5,300
0
$26,120
$5,141
2,399
$7,540
$33,660
1997
($000)
$17,900
428
5,600
8,152
$32,08O
$ 3,706
2,789
$6,495
$38,575
Increase
(Decrease)
from 1996
($000)
30C
8,152
$5,96(3
($1,435~
39(3
($1,0453
$4,915
CAPITAL IMPROVEMENT FUND
Capital project expenditures were $6.3 million"eompared to anadjusted budget of $7.8
million. Projects focused mainly on infrastructure rehabilitation and upgrades, Americans
With Disabilities Act compliance, Golf Course improvements and park irrigation and
maintenance projects. Approximately $1.4 million was spent on the repair of streets and
sidewalks, Which is comparable with previous years. In 19.96-97, a total of $.68 million of
unspent capital budget was returned to reserves. Of this amount, $.5 million was due to the
cancellation of the Airport Fuel Tank Removal project. Staff feels that the new standards
issued by the Environmental Protection Agency does not require the Cityto remove and
replace the fuel tank at the Airport.
CM:R:452:97 ..Page 15 of 24
INTERNAL SERVICE FUNDS
The Printing and Mailing Internal Service Fund ended the fiscal year with revenues
approximately $.6 million above expenditures due, to higher-than-projected mailing revenue
and interest earnings.
The Vehicle Maintenance functional area of the Vehicle Maintenance and Replacement Fund
ended the year in a negative situation, as the revenues from the vehicle maintenance activities
were not sufficient to cover expenses. The revenue shortfall of $. 19 million resulted from
higher-than-anticipated costs of fuel, spare parts and accessories. The variance is included
in the attached year-end closing Budget Amendment Ordinance transferring funds from
Vehicle Maintenance Retained Earnings.
ENTERPRISE FUNDS
Electric Fund
Revenues
Expenditures
Purchases
Operations, Transfers
and Other
Capital Expenses
Debt Service
Net to (from) Reserves
1995-96
Actual.
($000)
$71,491
24,492
28,672
11,881
0
$6,446
1996-97
Adjusted
Budget
($0oo)
$78,398
27,415
30,675
15,007
0
$5,301
1996-97
Actual
($000)
$81,956
25,843
29,623
13,729
0
$12,761
Variance
($000)
$ 3,558
(1,572)
(1,052)
(1,278)
0
$7,460
Revenues
The Eiectric Fund’s revenues were $3.6 million higher than the adjusted budget, attributable
to higher sales due to an increase in power usage during the summer months.
CMR:452:97 -Page 16 of 24
Expenses
Power purchase costs were $1.6 million below budget, despite a $5.2 million downward
adjustment to the adopted budget at midyear. The savings resulted mainly from the City’s
ability to make additional power purchases from cheaper spot .market sources, while being
able to sell surplus power from higher cost sources like Calaveras, thereby reducing the net
power costs.
Operating Expense s.avings totaled $1.1 million in the Electric Fund. In the Resource
Management area, design and implementation of new Demand Side Management (DSM)
programs were delayed due to staff’s involvement with electric deregulation issues, resulting
in $.3 million savings. In the Electric Distribution area, lower salary and overtime costs
resulted in a $.5 million favorable variance. As mentioned earlier, Cost Plan allocations from
the General Fund were $;3 million below budget, due to lower spending in various General
Fund administrative departments. In addition, a number of capital improvement projects
were completed below budget, resulting in a $1.3 million savings.
Reserves
The combination of strong revenues and cost savings resulted in healthy reserve balances.
The 1996-97 Electric Fund’s Rate Stabilization Reserve (RSR) balance at year end is $24.3
million, $1.3 million above the maximum Council-approved guideline level, despite a $ ! 5.7
million transfer to Calaveras Reserve as approved in the 1996-98 adopted budget. In
conjunction with the 1998-99 budget, staff will present a revised comprehensive reserve
policy for the Utility Funds which will address the changing business and regulatory
conditions.
CMR:452:97 Page 17 of 24
Gas Fund
Revenues
Expenditures
Purchases
Operations, Transfers
and Other
Capital Expenses
Debt Service
Net to ,(from) Reserves
1995-96
Actual
($000)
$20,005
6,861
6,364
4,270
0
1996-97
Adjusted
Budget
($000)
$19,879
11,016
7,509
5,027
0
1996-97
Actual
($000)
$20,125
9,734
6,706
4,447
0
Variance
($000)
Revenues
$246
. (1,282)
(803)
(580)
0
$2,510 ($3,673) ($762) ¯ $2,911
Total Gas Fund revenues were $.2 million favorable compared to the budget. Gas sales
were $.5 million beloW budget due to mild winter weather, but higher revenues ($.2
million) from new gas connection activities and a refund ($.5 million) from Pacific Gas &
Electric (PG&E) resulted in a favorable revenue--variance. The refund was mandated by a
recent California Public Utilities Commission ruling which ordered PG&E to roll back
gas transmission rates to wholesale customers.
Expenses
Prices of natural gas peaked during the winter months, but stabilized during the last quarter
of the fiscal year. In addition, gas consumption by utility customers also declined during the
second half of the fiscal year. The combination of lower consumption and gas prices resulted
in a $1.3 million savings in gas commodity costs. Operating savings of $.80 million,
primarily in Resource Management, were due to cancellation of various DSM programs, as
staff spent more time to prepare for the impending electric deregulation. On the capital side,
there were sa.vings of $.6 million, due to lower-than-budgeted spending on Gas Main
Rehabilitation and Gas Meter Replacement projects.
CMR:452:97 Page 18 of 24
Reserves
The Gas Fund’s year-end RSR balance is $13.02 million, exceeding the maximum guideline
level by $6.2 million. The 1998-99 proposed budget and a revised reserve policy will
include staff recommendations to address this issue.
Refuse Fund
Revenues
Expenditures
Payments to PASCO
Other Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1995-96
Actual
($ooo)
$20,042
6,008
13,247
0
0
-$987
1996-97
Adjusted
Budget
($ooo)
$21,505
6,455
14,420
600
0
$30
1996-97
Actual
($000)
$21,716
6,338
13,255
600
0
$1,523
Variance
($000)
$ 211
(117)
(1,165)
0
0
$1,493
Revenues
Refuse Fund revenues were $.2 million above budget, resulting primarily from higher ’
disposal revenues-at the landfill site.
Expenses
Operating expenses in.the Refuse Fund were $1.2 million lower than the budget. The
savings mainly resulted from $.7 million lower contributions for the SMART Station
operation and maintenance costs. The actual billings from the City of Sunnyvale, SMART
station’s administrator, Were tess than the original budget. Lower landfill ($.2 million) and
street sweeping ($_.3 million)-operational costs contributed to additional savings.
CMR:452:97 Page 19 of 24
Reserves
The Refuse RSR balance increased $1.4 million over the 1995-96 ending balance, mainly a
result of operational savings. The 1996-97 year-end RSR balance is $5.9 million, exceeding
the maximum guideline level-by $2.3 million.
Storm Drainage Fund
Revenues
Expenditures
Operating Expenses
Capital Expenses
Debt Service
1995-96
Actual
($ooo)
$6,640
1,626
7,331
260
1996-97
Adjusted
Budget
($ooo)
$ 6,914
1,820
7,173
275
1996-97
Actual
($ooo),
$ 6,872
1,544
6,825
275
Variance
($000)
$ (42)
(276)
(348)
0
Net to (from) Reserves ($2,577) ($2,354) ($1,772)$582
Revenues
Storm Drainage revenues were only $.04 million below budget, mainly due to lower interest
earnings and customer revenues.
Expenses
Operating expense savings of $.3 million were the result of lower-than-budgeted
maintenance activities for the storm drainage system. On the capital side, a $.3 million
favorable variance resulted from completion of various phases of curb and gutter replacement
project below the budgeted costs.
Reserves
Bolstered by operating and capital expense savings, the 1996-97 year-end Storm Drainage
RSR balance is $1.2 million. Storm Drainage does not have a formal reserve policy, but a
CMR:452:97 Page 20 of 24
positive RSR balance will ensure that the fund will remain solvent during the 1997-98 fiscal
year.
Wastewater Collection Fund
Revenues
Expenditures
Sewer Treatment Exp.
[Operating Expenses
Capital Expenses
Debt Service
1995-96
Actual
($000)
$13,767
3,625
1,916
6,681
156
1996-97
Adjusted
Budget
($ooo)
$15,245
3,936
2,286
9,680
165
1996-97
Actual
($000)
$15,112
3,824
1,993
9,601
165
Variance
($000)
($133)
(112)
(293)
(79)
0
Net to (from) Reserves $1,389 ($822)($471)$351
Revenues
Wastewater Collection Fund’s revenues were only $. 1 million, or 2 percent bel.ow the budget,
mainly due-to lower sewer billings to commercial and industrial customers.
Expenses
Sewer treatment expense allocations from the Regional Water Quality Control Plant
(RWQCP).were $. 1 million below budget. In addition, there were $.3 million savings in
operating expenses contributed by lower salary costs ($. 1 million) due to unfilled vacancies
in the Sewer Operation area, lower contract costs ($~1 million) for emergency sewer system.
repairs, and lower Cost Plan charges ($. 1 million) due to savings in various General Fund
administrative departments.
CMR:452:97.Page 21 of 24
Reserves
The Wastewater Collection Fund RSR decreased $.5 million in 1996-97 to $8.5 million, due
to a 9 percent sewer rate decrease implemented during the fiscal year. The RSR balance still
exceeds the maximum guideline level by $3.4 million. Staff will address the excess reserve
issue in the 1998-99 proposed budget.
Wastewater Treatment Fund
Revenues
Expenditures
Operating Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1995-96
Actual
($ooo)
$12,978
9,811
2,257
339
$571
1996-97
Adjusted
Budget
($000)
$14,292
11,041
2,482
360
$409
1996-97
Actual
($000)
$!4,085
10,894
2,475
360
$356
Variance
($000)
$ (207)
(147)
(7)
0
($53)
Revenues
Wastewater Treatment Fund revenues are based on the cost reimbursements from RWQCP
Partners. The negative revenue variance of $.2 million reflects the cost savings at the Plant
in 1996-97.
Expenses -
The Treatment Fund’s actual expenses were $. 1 million below budget. Lower overtime
salaries ($.07 million) and contract costs ($.03 million) contributed to this favorable variance.
Reserves
The Treatment Fund’s 1996-97 year-end RSR balance of $3.1 million is within the Council-
approved guidelinesl
CMR:452:97 Page 22 of 24
.)
Water Fund
Revenues
Expenditures
Purchases
]Operations, Transfers
~and Other
Capital Expenses
Debt Service
1995-96
Actual($ooo)
$16,008
4,595
5,763
5,164
0
1996-97Adjusted
Budget
($000)
$15,475
4,570
6,936
5,282
0
Variance
($000)
1996-97
Actual($000)
$17,058
4,815
6,370
4,846
0
$1,027
$1,583
245
(566)
(436)
0
Net to (from) Reserves $486 ($1,313)$2,340
Revenues
’Total Water Fund revenues were $1.6 million above the adjusted budget, resulting primarily
from higher water sales. Overall, the water consumption during 1996-97 was. 14 percent
above projections, due to dry weather conditions during spring and summer months. Since
the end of drought in the early 1990s, this is the first year the water usage has been at this
level.
Expenses
Driven mainly by higher water consumption, wholesale water purchase costs were $.2
million above budget. On the operating side, the expenditures were $.6 million lower,
resulting from savings in the following functional areas:
Resource Management ($.3 million), due to lower salary expenses and lower spending
on conservation programs due to non-drought conditions.
Water Transmission & Distribution ($.2 million), resulting from lower salary expenses
due to vacancies.
CMR:452:97 Page 23 of 24
Support Services ($.1 million), due to lower salary costs as staff spent more time on
electric utility deregulation matters.
In the capital budget, $.4 million in savings were due to the cancellation of the Well Site
Rehabilitation project and lower-than-budgeted spending on Phase Ten of the Water Main
Replacement project.
Reserves
Bolstered by favorable revenue and expenditure variances, Water Fund’s RSR balance
increased $1 million during 1996-97. The fiscal year ending balance of $7.8 million is $.7.
million above the Council-approved maximum guideline level. This will be addressed in the
1998-99 proposed budget.
CMR:452:97 Page 24 of 24
Attachment 1
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OE PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 1996-97
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 24,1996 did adopt a budget for fiscal year 1996-97; and
WHEREAS, fiscal year 1996-97 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 Acting 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 Palg Alto to reflect:
(A) Additioial appropriations authorizedby ordinance of the
City Council.
(B) Amendments to employee compensation plans-ad0pted by the
City Council.
(C) Transfers of appropriations from the contingent account
as authorized by the City Manager.
(D) Redistribution Of appropriations betweenfunctional
areas major activities, and objects within various depar-tment~ as
authorized by t~e City Manager.
(E) Fiscal year 1996-97~appropriations which on July if 1997
were encumbered by properly executed,-but uncompleted, purchase
orders or contracts; and
WHEREAS, Article III, Section 12, of the Charterof the City
of Palo Alto requires City Council approval .of ~dditional
appropriations ortransfers of appropriations from one department
to another; and
WHEREAS, fiscal year 1996-97 appropriations in certain
departments and categories as shown on the attached Exhibit "A",
while not encumbered by purchase order or contract, at year end are
nevertheless recommended for reappropriation in the fiscal year
1997-98 budget;
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The City Manager is authorized and directed to
transfer appropriations, if necessary, in the utility funds by
amounts sufficient to provide for purchase of additional water,
gas, electric, and refuse collection services, in the event the
sales of said utilities services exceed the original estimates
contained in the fiscal year 1996-97 budget.
SECTION 2. The fiscal year 1996-97 unencumbered balances for
the departments and categories shown on Exhibit "A" shall be
carried forward and added to the fiscal year 1997-98 budget.
SECTION 3. The
directed:
City Manager is furthe~ authorized and
(A) To close the fiscal year 1996-97 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,
1996-97 budget as adopted or amended.
(B) To close various completed Capital Improvement Projects as
Nhown in Exhibit E and move the balances into the appropriate
reserve.
(C) To establish reserves for all Funds as necessary to
provide for: ~.
(i) 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) Outstanding purchase orders and contracts for
which goods or services have not been received or completed by the
last day of fiscal year 1996-97. Such appropriations shall be
carried forward and added to the fiscal year 1997-98 budget.
(b) Fiscal year 1996-97 departmental expenditures
which were authorized to be carried forwlrd in Section 2 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 Council may approve.
(4) Reserves for utilities plant replacement, rate
stabilization, and other reserves in accordance with Charter and
policy guidelines.
(5) An Infrastructure Reserve is established in
accordance with the General Fund Reserves Policy adopted by the
City council.
(6)- After providing for the foregoing reserves, a reserve
for the General Fund Budget stabilization shall be increased by the
remainder of the fiscal year 1996-97 excess of General Fund
revenues over expenditures.
SECTION 4. The sum of One Hundred Eighty Five Thousand
Seven Hundred Thirty Four Dollars ($185,734) is hereby transferred
from the Vehicle Maintenance Retained Earnings reducing the balance
to $181,953 and increasing the Vehicle Maintenance’Functional Area
of the Vehicle Maintenance and Replacement Fund.
SECTION 5. The sum ofEight Million One Hundred Fifty Two
Thousand Dollars ($8,152,000) is hereby added to the Infrastructure
Capital Improvement Reserve and the General Fund Budget
Stabilization Reserve is correspondingly reduced.
SECTION 6. This transaction will reduce the General Fund
Budget Stabilization Reserve from $26,052,000 to $17,900,000 as of -
June 30 1997.
SECTION 7. Upon completion of the independent audit,
detailed financial statements giving effect to 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 8. As specified in Sectiono2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 9. 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 i0.
Municipal Code,
adoption.
As provided in Section 2.04.350 of the Palo Alto.
this ordinance shall become effective upon
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk-
APPROVED AS TO FORM:
Senior Asst. ~ity Attorney
Mayor
City Manager
Acting Director,
Administrative Services
Department
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
GENERAL FUND
Administrative
Services "
Consultant assistance for preparing a strategic plan for
the Information Technology Division (IT). Study will
recommend an organizational structure, propose staffing
levels and reporting relationships, examine user needs to
determine the required technical infrastructure and
architecture, and propose an implementation schedule for
the strategic plan.
(Before a tong-range strategic plan for IT could be
developed, an evaluation of current City technology
positions needed to be performed. This study was done
in 1996-97, and encompassed an evaluation of positions
for appropriat.eness of job classification and salary level,
which will assist the City in filling long standing
technical position vacancies.)
Council approved funding for repairs to building and.
equipment at the Golf Course Restaurant.
(Council approved the request on June 2, 1997. The
work that still needs to be done will require time for bid
procedure.)
Implementation of Electronic Cash Receipting System.
Funds will be used for peripherals, training, and
maintenance of new system.
(N~gotiations with the original contractor, Smith Norris,
Inc.., were discontinued when the company went out of
business. Contract negotiations with CORE, the second
vendor of choice, are underway and have been delayed
due to the Sand Hill Road project.)
$ 50,000
$ 20,170
$15,500
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
Planning Comprehensive Plan Update.
(These funds were budgeted by Council for a multi-year
update of the City’s Comprehensive Plan.)
$ 46,619
Council approved an Ordinance to provide an additional
appropriation for the interim regulations for demolition
of residential structures prior to 1940 and for the
permanent historic preservation ordinance and historic
inventory.
(RFPs and consultant selection process was not
authorized until mid-year.)
Citywide School Commute Safety Study
Phase II.
(The project was delayed pending the completion of
Phase I, and the outcome of the Building for Excellence
Plan by the Palo Alto Unified School District. In early
1997-98, staff will report to Council with the Phase I
study report and recommendation on for Phase II.)
$232,000
$ 50,000
Police This request will fund three temporary/contract
employees through October 1997. The program utilizes
Community Service Officers in the field to assist in
implementation of the Downtown Health and Safety
Program.
(Implementation of the trial program was delayed due to
the hiring, and training of the Community Service
Officers and the outfitting of vehicles.)
$ 51,000
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
Public Works Tree and Stump Removal
(Over 170 trees remain that are designated to be removed
due to unsafe conditions. The contractor was selected on
August 4, 1997.)
$100,000
Civic Center Garage Washing
(Project was not completed in 1996-97 due to the
complexity of power washing procedures and other
Public Works priorities. Contract specification was
submitted for bid at year end.)
$ 20,000
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
ENTERPRISE FUND
Refuse Civic Center Garage Washing
(Funds not spent on joint contract request for garage
cleaning. Contract specifications was submitted for bid
by year end.)
Landfill Closure/Postclosure Plan Update and Phase IIB
Closure Plans and Specifications Preparation.
(Staff received notification at mid-year that revisions to
the facility closure/postclosure plan must be completed
¯ prior to issuance of new facility permit. Proposals have
already been received and are being evaluated.)
This ~funding is for additional payment to PASCO for
insurance dividend replacement.
(The insurance modifier needed to calculate payment to
PASCO was not received until year-end.)
$15,000
$ 75,000
$ 90,000
INTERNAL SERVICE FUND
Vehicle
Replacement and
Maintenance
This funding will replace existing fire engine pumpers.
(Specifications provided by City were not met by sole
bidder.)
$630,000
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
CAPITAL IMPROVEMENT PROJECT
Administrative
Services
CIP #19620
Planning
CIP #1.9524
Planning
CIP #19523
Planning
CIP # 19401
Civic Center LAN Upgrade
(There were extensive contract negotiations, new
hardware release and price change, and physical
constraints regarding the location of the computer
hardware.)
Bikeway System Improvements
(Project delayed due to other Transportation Division
priorities until late 1996-97. The project is underway,
including the purchase of bike racks, and will be
completed in the first half of 1997-98.)
E1 Camino Real Intersection Improvements.
(The project has been delayed due to rescheduling by
Caltrans, the lead agency. The cooperative agreement
between Caltrans and the City was approved in March
1997 and the funds have been encumbered. Construction
is scheduled to occur this fall.)
California Avenue Pedestrian Underpass
Improvements.
Public Works
CIP #19001
Public Works
CIP #19512
(The project was delayed due to Transportation Division
project priorities.)
Airport Tank Removal
(City of Palo Alto is waiting for the SantaClara Valley
Water District to decide on appropriate action regarding
remediation measures.)
Civic Center Plaza Waterproofing
(Project was postponed due to a shortage in personnel in
Public Works Engineering.)
$160,000
$ 30,000
$157,250
$ 30,000
$ 50,000
$ 44,000
Exhibit A
1996-97 REAPPROPRIATION REQUESTS
Department Intended Use Amount
Public Works
CIP #19604
MSC Building A Improvements-Install HVAC to office
area of MSC Building A
(Project is in the final stages of a consultant selection for
the design of the HVAC system. The project was
delayed due to staffing and other projects receiving a
higher priority.)
$ 34,000
Exhibit A
TOTAL REAPPROPRiATION REQUESTS
GENERAL FUND
ENTERPRISE FUND
$585,289
$180,000
INTERNAL SERVICE FUND
CAPITAL IMPROVEMENT FUND
$630,000
$505,250
TOTAL $1,900,539
REVENUE
Revenues
Reappropriations /Enc
TOTAL REVENUE
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TO/(FROM) RESERVES
Exhibi~ B
Enterprise Fund Summaries 1996-97
ELECTRIC FUND
-"1996-97 -~ 1996-97
1995.96 Adjusted _ ~’D
Actual..Budget ~ Actual
66,556 71,441 74,999
4,935 6,957 6,957
71,491 78,398 81,956
¯24,492
28,672
53,164
11,881
,65,045
6,446
27,415
30,675
58,090
15,007
73,097
5,301
~ Actual Plus
EnclReap ¯ EnclReap Vadance
74,999 3,558
6,957 0
81,956 3,558
25~43 25,843 1,572
28,966 657 29,623 1,052
64,809 657 55,466 2,624
10,034 3,695 13,729 1,278
64;843 4,352 69,195 3,902
17,113 (4,352)12,761 7,460
GAS FUND
REVENUE
Revenues
Reappropriations Enc
TOTAL REVENUE
EXPENSES
Purchases
O.ther Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TOI(FROM) RESERVES
18,107 18,116 18,362 18,362 246
1,898 1,763 1,763 _1,763 0
20,005 19,879 . 20,125 20,t25 246
6,86!11,016 9,734 9,734 1,282
6,364 7,509 6,652 54 6,706 803
13,225 18,525 16,386 54 16,440 2,085
4,270 5,027 2,635 1,812 4,447 580
17,495 23,552 19,021 1,866 20,887 2,665
2,510 (3,67~1,104 (1,866)(762)2,911
REFUSE FUND
-1995-96 Adjusted " YTD Actual Plus
~~Actual~, Budget-Actua!~ EnclReap EnclReap Variance-
REVENUE
Revenues 19,784 21,196 21,407 21,407 21 l
Reappropriations / Enc 458 309 309 309 0
TOTAL REVENUE 20,242 21,505 21,716 21,716 211
EXPENSES
Payments to PASCO 6,008 6,455 6,338 6,338 117
Other Expenses 13,247 14,420 12,835 420 13,255 1,165
TOTAL OPERATING EXPENSES 19,255 20,875 19,173 420 19,593 1,282
Capital Expenses 0 600 139 461 600 0
TOTAL EXPENSES 19,255 21,475 19,312 881 20,193 1,282
TO/(FROM) RESERVES 987 30 2,404 (881)1,523 1,493
STORM DRAINAGE FUND
Revenues 2,176 2,156 2,114 2,114 (42)
Reappropriations /Enc 4,464 4,758 - 4~758 4,758 0
TOTAL REVENUE 6,640 6,914 6,872 0 6,872 (42)
EXPENSES
Operating Expenses 1,626 1,820 1,471 73 1,544 276,
TOTAL OPERATING EXPENSES 1,626 1,820 1,471 73 1,544 276
Capital Expenses 7,331 7,173 2,995 3,830 6,825 348
Principal Payments 260 275 275 275 0
TOTAL EXPENSES 9,217 9,268 4,741 3,903 8,644 624
TOI(FROM) RESERVES (2,577)(2,354)2,131 (3,903)(1,772)582
REVENUE
WASTEWATER COLLECTION FUND
1996-97 1996-97-
,1995-96 "~ Adjusted YTD
-Actual +Budget + Actual~
Revenues 10,859 10,381 10,248
Reappropriations / Enc 2,908 4,864 4,864
TOTAL REVENUE 13,767 15,245 15,112
EXPENSES
Sewer Treatment Exp.
Operating Expenses
3,625 3,936 3,824
’1,916 2,286 1,984
TOTAL OPERATING EXPENSES 5,541 6,222 5,808
Capital Expenses 6,681 9,680 4,097
Principal Payments 156 165 165
TOTAL EXPENSES
TO/(FROM) RESERVES
12,378 16,067 10,070
1,389 (822)5,042
EnclReap
1996-,97
Actual Plus
EnclReap Variance
10,248 (133)
4,864 0
15,112 (133)
3,824 112
9 1,993 293
9 5,817 405
5,504 9,601 . 79
165 0
5,513 15,583 484
(5,513)~71)351
WASTEWATER TREATMENT FUND
REVENUE
Revenues 10,505 11,350 11,143
Reappropriations /Enc 2,473 2,942 2,942
TOTAL REVENUE 12,978 14,292 14,085
EXPENSES
t t,143 (207)
2,942 0
14,085 (207)
Operating Expe.nses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
9,811 11,041 9,368 1,526
9,811 11,041 9,368 1,526
2,257 2,482 1,017 1,458
339 360 360
i0,894 147
10,894 147
2,475 ?
360 0
TOTAL EXPENSES
TO/(FROM) RESERVES
12,407 13,883 10,745 2,984
571 409 3,340 (2,984)
13,729 154
356 (53)
WATER FUND
REVENUE
Revenues
Reappropriations /Enc
TOTAL REVENUE
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTALEXPENSES
TO/(FROM) RESERVES
1995-96
~.Actual.
12,775
3,233
16,008
1996-97 .....~ =’~ 1996-97
Adjusted - . 1996-97 Actual Plus
Budget _ ,.Actual ~ EnclReap Enc/Reap_ Variance
~12,949 14,532 14,532 1,583
2,526 2,526 2,526 0
15,475 17,058 17,058 1,583
4,595 4,570 4,815 4,815 (245)
5,763 6,936 6,292 78 6,370 566
10,358 11,506 11,107 78 11,185 ’321
5,164 5,282 2,454 2,392 4,846 436
15,522 16,788 13,561 2,470 16,031 757
486 (1,313)3,497 (2,470)1,027 "2,340
:. ¯Exhibit C
~ CITY OF PALO ALTO
UTILITY FUNDS RESERVES SUMMARY ($000)
JUNE, FY 1996197
-1996-97
1995-96 ADJ BUD
ELECTRIC FUND
Emergency Plant Replaceme
Rate Stabilization Reserve
Calavems
~Centrai Valley.Proj. O & M
Shasta Rewind Loan
Subtotal
ACTUAL RESVCHG
-2,145 59
33,138 (17,464)
23,827 17,807
0 803
°0 4,830
59,110 6,035
GAS FUND
Emergency Plant Replaceme
Rate Stabilization Reserve
Gas Supplemental Supply~
Subtotal
REFUSE FUND
Rate Stabilization Reserve:
Water Resources Board
Subtotal
STORMDRAINAGE FUND
Rate Stabilization Reserve
WASTEWATER ! : : .....
COLLECTIONFUND ~_
~Emergency Plant:Reptaceme
Rate Stabilization Reserve:
-TREATMENT FUND: ::
Emergency.Plant Replaceme
!Rate Stabilization Reserve
WATER FUND ~ : ~
Emergency Plant Replacenie:
Rate Stabilization Reserve
Subtotal ’ ’ "
624 29
13,791 (3,724)
3,092 0
17,507 (3,695)
4,483 (88)
354 118
4,837 30
2,996 (2,355)
-2,996-(2,355)
354 18
8,931 (852)
9;285 (834)
1,015 88
2,8O3 321
3,818 409
-707 62
6,838 (1,380)
7,545 (1,318)
ADJ BUD YTD
RESV BAL :ACTUAL
2,204 ,. 2,205
15,674 ~ 24,329
41,634 ~ ~ 41,680
803 :~ . :~ "688
65,145 -# 71,856
653 : 653
10,067 ~I3,015
3,092~.3,092
372’~ ~:: :372
6,227~. . 8,583
.1996:97_ :- 1996-97- -
MINIMUM MAXIMUM
BALANCE BALANCE-
4,167
11,518 23,036
1,221
3,411 6,822
1,810 3,620
],007
2,502 5,004
1,602
1,421
3,204
1,168
3,569 7,138
EXHIBIT D
CAPITAL IMPROVEMENT PROJECTS
COMPLETED AND CLOSED IN 1996-97
Project
Number Project Title
GENERAL FUND
Project
Balance
19011
19304
19410
19412
19420
19506
19508
19510
19519
~19525
19603
19621
19703
19712
19714
Records Management (Optical Imaging)-
Bayland Amenities Improvement
Civic Center Garage Improvements
University and California Landscaping
Chuck Thompson Site Pool Removal
Parks Offstreet Tree Trimming
Tennis and Basketball Court Renovation
Park Softscope Grgund/Plant Replacement
Multi-line Telephone System Replacement
Technogolical Improvements to Recrection,
Open Space and Sciences, and Arts and Culture Facilities
Cultural Center Courtyard
PAUSD Field Equipment Purchases
Children Theater Matching Grant
Information Technology Van Vehicle Purchase
Cubberley LAN/WAN Data Network
Total
Street Improvement
19502 Pedestrian Bike Grade Separation
Total
13,552
4,989
257
653
12,839
55
1,154
556
0
12,173
15,092
27,387
0
942
43,790
$133,439
150,000
$150,000
EXHIBIT D
CAPITAL IMPROVEMENT PROJECTS
COMPLETED AND CLOSED IN 1996-97 -
Project
Number
UTILITY FUNDS
Project Title
Electric Fund
8741
8915
8929
9102
9509
9511
9612
Load Research
Arastradero Access Road
Street Light Conversions
Switchgear Seismic Restraint
COP 60 kV Tie Breaker
Future Underground Conversion Districts
Utilities Bill Processing Equipment
Total
Gas Fund
8915
8919
9539
Arastradero Access Road
Gas Station Improvements
Vehicle Purchase - WGWC
Total
Wastewater Collection ’
8915 Arastradero Access Road
9539 Vehicle Purchase - WGWC
Total
Wastewater Treatment
9260 Instrumentation Alarm District
9505 Incinerator Stack Gas Part
9513 Aeration Tank Inlet Structure
9706 Inductively Coupled Plasma Mass Spectrometer
Total
Water
8636
8915
8923
9539
Water Site Rehabilitation
Arastradero Access Road
Water Station Improvements
Vehicle Purchase - WGWC
Total
Project
Balance
10,928
127
364,899
25,784
18,080
1,437
0
$421,255
0
44,870
236
$45,106
214
235
$449
98
0
185
6,167
$6,450
110,537
748
504
237
$112,026