HomeMy WebLinkAbout1996-12-03 City CouncilCity of Polo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
AGENDA DATE: DECEMBER 3, 1996 CMR:458:96
SUBJECT:1995-96 FINANCIAL SUMMARY STATUS REPORT AND
BUDGET CLOSING
REQUEST:
This report requests that the Finance Committee review the 1995-96 year-end budget closing
ordinance and forward it to the City Council for approval.
RECOMMENDATIONS"
Staff recommends the Finance Committee review and forward the attached ordinance to the
City Council for approval, authorizing: 1) closing of the 1995-96 budget; 2) reappropriation
of funds into the 1996-97 operating budget; and 3) closing various capital improvement
project balances to the Budget Stabilization Reserve for projects which have been completed.
POLICY IMPLICATIONS:
Adoption of the year-end budget closing ordinance does not represent a change to existing
policies.
EXECUTIVE SUMMARY:
This report summarizes the financial results for fiscal year 1995-96 for the General Fund,
Capital Improvement Fund, Internal Service 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. Factors affecting the City’s financial performance
are identified.
CMR:458:96 Page 1 of 2
A Year-End Summary section presents significant financial results and trends for the 1995-
96 fiscal year. This is followed by a more detailed analysis of the revenues, expenses and
reserves of the City’s principal funds.
The City’s financial position remains healthy, with the General Fund reporting a net
operating surplus of $6.8 million. The Electric, Gas, Refuse and Wastewater Collection
Funds ended the year with Rate Stabilization Reserves (RSR) above the Council-approved
maximum levels. Rate reductions in the 1996-98 Adopted Budget for the Gas and
Wastewater Funds should move the RSR in these funds closer to the reserve guidelines. The
RSR in the Electric Fund was reduced in the 1996-98 Budget by the transfer of $15.9 million
to the Calaveras Reserve to offset future costs. The Refuse RSR remains over the reserve
guidelines and a recommendation to address this variance wilt be included with the 1997-98
Budget.
FISCAL IMPACT:
Adoption of the attached budget closing ordinance allows for reappropriation and carryover
of funding from the 1995-96 budget for the completion of specific programs or projects in
the current fiscal year. In addition, the closing of completed capital improvement projects
balances has a positive impact for the Budget Stabilization Reserve.
ENVIRONMENTAL ASSESSMENT:
The action recommended is not a project for purposes of the California Environmental
Quality Act.
ATTACHMENT:
1995-96 Year-End Summary.
PREPARED BY:Virginia Harrington, Budget Manager
Tony Sandhu, Senior Accountant
Deputy City Manager,
"~~ministrative
CITY MANAGER APPROVAL:
CC: n/a
~7~t~’"Pleming
Manager
CMR:458:96 Page 2 of 2
YEAR END HIGHLIGHTS
Revenue Overview and Budget ChallenRes
California’s and Palo Alto’s economy are strong. A recent bulletin from the State’s Department of Finance reports
that Califomia’s vigorous economic expansion continues. The state’s jobless rate has fallen from 7.8 percent in June
1995 to 7.1 percent in June 1996; retail sales have risen 6.6 percent over prior year levels; and exports are
continuing to grow rapidly.
General Fund: Sales TaxAs described below, the General Fund’s revenue sources
which are sensitive to the health of the economy have
risen significantly. On the expenditure side, the General
Fund is closing the fiscal year well within the adjusted
budget. The combined impact of the extraordinarily
strong economy and prudent expenditure management
have resulted in a surplus for the 1995-96 fiscal year.
Strong revenue receipts that result from an improvement
in the economy include sales tax (21.2 percent above
1994-95), property tax and transient occupancy tax. This
broad-based, solid performance reflects a City economy 12,I I I Ithat is profiting from a resurgent Silicon Valley and from 92 93 94 95 96its attractiveness as a commercial and business center.Year
While the General Fund’s immediate revenue future
appears bright, significant budget challenges lie ahead that will rapidly absorb available resources. During the next
year, staff will present to Council a comprehensive report on General Fund infrastructure needs that will include
buildings and facilities, traffic, parks, open space, streets and sidewalks, and technology. At this time, staff
anticipates the need to present alternative financing mechanisms that can supplement existing resources in meeting
these capital requirements. In addition to funding infrastructure needs, the General Fund will need to dedicate
resources to implementation of the Comprehensive Plan and the Golf Course Master Plan. Other possible, near-term
demands include: expansion of City efforts in maintaining PAUSD athletic fields, implementing Library Master
Plan recommendations and building a community library, initiation of a Family Resource Center, constructing a
new public safety building, expanding the Tree Program, and downtown urban design improvements.
5,6,
5.4,
5.3,
5.2,
5.1,
5
Utility Users Tax
I I I l
92 93 94 95 96
In addition to substantial project and program needs,
the General Fund faces real and potential threats to
current revenue sources. As a result of utility
deregulation and competition, utility user taxes are
diminishing and proving inadequate to fund Cubberley
maintenance and capital needs and street and sidewalk
repairs. With closure of the landfill in 2003-04, the
General Fund will lose an estimated $1.0 million in
annual rent payments. With deregulation of the utility
industry and the drive to make water rates competitive,
utility equity transfers and rent payments to the
General Fund may come under increasing pressure.
Currently, the General Fund receives $14.5 million
annually from these sources.
Year
CMR: 458:96 Page 1 of 22
In conclusion, the economic recovery in California has increased General Fund resources. As long as the economy
remains robust, the General Fund can anticipate solid revenue streams that can support its programs and services.
The General Fund, however, also faces a host of project and program needs, and short and long-term threats to
revenue sources that will require careful planning.
GENERAL FUND EXPENDITURES
Overall, savings in General Fund operating departments resulted in $1.9 million being returned to reserves. The
savings were primarily in the following departments:
Administrative Departments: Savings in the Administrative Services Department were due to difficulty in
recruiting and filling vacant positions.
Community Services: Savings occurred in the budget for water purchases due to the heavy rainfall this past
winter which decreased the need to irrigate at the golf course and in the parks. Savings in water purchases were
somewhat offset by lower golf course revenues which also resulted from the heavy winter rains.
Police: The Police Department realized salary savings due to vacant positions. The savings occurred in spite of
overtime requirements for the serial rape investigation and the need to backfill by using overtime for vacant
positions in the patrol, investigations, and communications areas.
Other savings in the General Fund included a $1.2 million dollar savings in operating transfers to the Capital
Improvement Fund. The funding committed for some
streets and sidewalks projects is reserved for in the
Reserve for Encumbrances and Reappropriations and not
transferred directly to the Capital Improvement Fund.
GENERAL FUND RESERVES
General Fund reserves increased $6.8 million overall,
primarily as a result of the strong revenues generated by
the economic upturn. The Budget Stabilization Reserve
increased to $20.4 million.
VEHICLE MAINTENANCE
General Fund Discretionary Reserves
Reserve for
Emergencies
$5.3
Reserve for
Encumbrances &
Reappropriations
$5.1
Other
$2.3
Streets and
Sidewalks
$.39
The Vehicle Maintenance functional area of the Vehicle
Maintenance and Replacement Fund closed the 1995-96 Budget
fiscal year in a negative situation, i.e. revenues were notStabilization SMillionssufficient to cover expenses. The variance of $100,000Reserve $20.4
occurred due to an unanticipated increase in the price of:
fuel. The variance is covered in the attached year-end
closing Budget Amendment Ordinance, using funds from the Vehicle Maintenance Fund Retained Earnings.
UTILITY FUNDS
Reserves in the Electric, Gas, Wastewater Collection and the Refuse Funds are above the Council-approved
maximum balances. With the 1996-98 Adopted Budget, the Council approved rate decreases for the Gas and
Wastewater Collection Funds. The rate decreases should bring the Rate Stabilization Reserves in these funds closer
to the Council-approved range over the next two years. In the Electric Fund, the 1996-98 Adopted Budget includes
funding of the Calaveras Reserve of $15.9 million to help the Electric Fund position itself against "stranded" costs
associated with the Calaveras Hydroelectric Project. This transfer brings the Electric Rate Stabilization Reserve to
within Counci!-approved guidelines.
CMR: 458:96 Page 2 of 22
Revenues
Sales tax
Property taxes
Utility users tax
Year-End 1995-~
General Fund Summary ($000’s)
Actual Adopted Adjusted
1994-95 Budget Budget
1995-96 1995-96
Actual Plus Encurn. Actuals Plus Variance
1995-96 & Reapps.Encurn. &
Reapps.
Transient Occupancy tax
Other taxes, fines and penalitie~,
Service fees & permits
Charges to Other funds
Rental Income
Other revenues
14,765 15.100 16,688 17.895
7,485 7,549 7,620 7,818
5,482 5,496 5,231 5,098
3.643 3,722 3,930 4,279
4,633 4,577 4.631 5.129
7,955 8,080 8,180 8,257
6,839 6,376 6,45 !6,294
9,754 9,478 9,478 9,645
6,879 7,427 7,468 7,875
67,435 67,805 69,677 72,290
10,559 11,749 11,749 11,504
Total Revenues
Plus Operating Transfers In
Plus Encumbrances &
Reappropriations
Total Source of Fund $77,994 $79,553
3,070 3,070
$84,496 $86,864
Expenditures
Administrative Departments
Community Services
Fire
Planning
Police
Public Works
Non-Departmental
Total Expenditures
Operating Transfers Out
10,532 11,299 12,616 !1,336
14,921 15,843 t6,440 15,496
12,081 12,052 12,943 12,236
3,990 3,780 4,466 4,043
14,535 14,615 15,474 14,634
10,012 9,477 10,125 9,207
4,657 6,941 4,988 4,736
70,728 74,007 77,052 71,688
5,685 5,672 6,730 5,533
17.895 1.207
7.818 198
5,098 (133)
4,279 349
5.129 498
8,257 77
6.294 (157)
9,645 167
7.875 407
72,290 2,613
11,504 (245)
Total Use of Funds
Net Surplus/(Deficit)
3,070
$86,864 $2,368
915 12,251 (365)
469 15,965 (475)
176 12,412 (531)
368 4,411 (55)
201 14,835 (639)
673 9,880 (245)
4,736 (252)
2,802 74,490 (2,562)
0 5,533 (1,197)
$76,413 $79,679
$1,581 ($126)$714 $9,643 ($2,802) $6,841 $6,127
CMR:458:96 Page 3 of 22
GENERALFUND REVENUES
Sales Tax
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($oo0)
Actual 1995-96
($ooo)
Variance with Budget
($oo0)
$14,765 $16,688 $17,895 $1,207
The City’s sales tax performance in 1995-96 was significantly stronger than anticipated.
Although budgeted sales tax revenues were adjusted upward by, $1.59 million midyear, actual
sales taxes have exceeded budget by $1.21 million or by 7.2 percent. Compared to 1994-95
actual receipts, revenues are $3.13 million or 21.2 percent higher. The primary business segments
fueling the solid growth in sales taxes are new auto sales, department stores, restaurants, and
business services. Electronic sales have steadied over the past year, but remain below prior year
levels. The City can probably anticipate a slowing in new auto sales due to the cyclical nature of
this segment, based on actual 1995-96 receipts. The sharp increase in sales tax reflects an
exceptionally strong local economy that has outpaced projections.
Property Tax
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($oo0)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$7,485 $7,620 $7,818 $198
Property tax revenues were 2.6 percent or $.20 million above the adjusted budget and 4.4 percent
or $.33 million above prior year actuals. Although County estimates of property value increases
were used in projecting the 1995-96 budget, specific areas such as property taxes from airplanes
and supplemental roils did better than anticipated. In addition, the cost of County administration
of property tax receipts was lower than expected.
Based on information from the County in the Fall of 1995 and three prior years of flat property
tax receipts, conservative assumptions were used in projecting the 1996-97 property tax revenue
budgets. Recent information from the County, however, indicates significant movement in single
family residential values (particularly in areas of quality high school districts) and in values for
research and development space. It is anticipated that the Countywide assessment roll used in
CMR:458:96 Page 4 of 22
determining property taxes for 1996-97 will increase by 3.8 to 4.5 percent over 1995-96 levels.
These estimates will probably require a midyear adjustment to the 1996-97 budget.
Utility Users Tax
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$5,482 $5,231 $5,098 $(133)
Revenues from the utility users tax (UUT) continue to decline. Total UUT revenues were $. 13
million or 2.5 percent below budget. Compared to 1994-95, revenues dropped by $.38 million or
7.0 percent. UUT revenues from sale of City utilities were $. 11 million or 2.9 percent under
budget, and $. 16 million or 4.2 percent under prior year receipts. Lower than budgeted water and
gas sales to customers caused lower UUT revenues. Telephone UUT revenues were $.02 million
or 1.4 percent below the adjusted budget and $.22 million or 13.7 percent below 1994-95 levels.
Causes of this decline include increased competition among telephone companies, reduced
intrastate long distance rates, and increasing use of cellular telephones. Based on the 1995-96
UUT performance, a deficit of approximately $.6 million is now projected for Utility User Tax
supported programs in !997-98.
Transient Occupancy Tax
Actual 1994-95
($ooo)
A~usted Budget
1995-96
($ooo)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$3,643 $3,930 $4,279 $349
The robustness of transient occupancy taxes (TOT) is further evidence of a vibrant local and state
economy where business activity is rising. Actual revenues are $.35 million or 8.9 percent above
budget. 1995-96 revenues are $.64 million or 17.5 percent above 1994-95 levels. Occupied room
days have increased to .55 million compared to .50 million in 1994-95. The overall occupancy
rate in 1995-96 was a solid 80 percent, reaching a monthly high of 87 percent in June.
CMR:458:96 Page 5 of 22
Other Taxes, Fines and Penalties
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($o0o)
Variance with Budget
($000)
$4,633 $4,631 $5,129 $498
This category consists of documentary transfer taxes, motor vehicle in-lieu taxes, and fines such
as parking violations.
Documentary transfer tax revenue rose sharply in 1995-96, once again reflecting a healthy local
economy, and a resurgent residential and commercial real estate market. Year-end revenues
exceeded budget by $.50 million or 10.8 percent and prior year revenues by a similar amount and
percentage. Documentary transfer tax revenues can vary considerably from year to year,
especially if there are sizeable, one-time commercial transactions and if the real estate market
moves significantly up or down. In 1995-96 the number of residential sales and the value of those
sales increased by 10.1 percent and 20.1 percent, respectively, over 1994-95.
Motor vehicle in-lieu taxes were $. 10 million or 5.0 percent above budget and $. 10 million or 5.0
percent above 1994-95 levels. This tax, based in part on the value of motor vehicles, reflects the
increase in new auto sales and a sound state economy.
Fine revenue is a slight $.02 million or 2.1 percent below budget and $. 15 million or 12.5 percent
be!ow 1994-95 revenues. Fine revenues are below 1994-95 levels as a result of increased
compliance with the Sleeper Parking Ordinance.
Service Fees and Permits
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($000)
Variance with Budget
($ooo)
$7,955 $8,180 $8,257 $77
Although actual revenues exceeded budget by $.08 million, gross revenues were actually higher.
Based on new accounting rules for government agencies, paramedic write-offs are now treated as
an offset to revenue rather than as an addition to expense. (This recent change has been included
in actual expenses, but was not included in the 1995-96 adjusted revenue budget.) Without this
adjustment, actual service fee and permit revenue exceeded budget by $.57 million or 6.9 percent
and exceeded prior year revenue by $.87 million or 10.9 percent.
Contributing to the positive variance from budget were Planning Department building and permit
fees ($560,000), Arts and Culture audience and class fees ($108,000), and Fire Department plan
CMR:458:96 Page 6 of 22
checking fees ($56,000). Revenue from paramedic fees came in over budget ($129,000), but total
revenue was reduced by $476,000 for bad debt.
Areas that fell below budget for service fee and permit revenues were golf fees ($172,000) due to
a heavy rainy season, recreation program revenues ($142,000) and animal service fees ($67,000).
Charges to Other Funds
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($000)
Actual 1995-96
($ooo)
Variance with Budget
($00o)
$6,839 $6,451 $6,294 $(157)
Charges to Other Funds consists of charges to the Utility Funds for services provided by General
Fund departments. Services to the utilities in such areas as line clearing, engineering and
inspection, and dispatch communications were less than anticipated.
Rental Income
Actual 1994-95
($0oo)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($000)
Variance with Budget
($000)
$9,754 $9,478 $9,645 $167
Rental income came in $.17 million or 1.8 percent above budget and $.11 million or 1.1 percent
below prior year actuals. Rental income from the Holiday Inn, which pays rent based on a
percentage of sales, was higher than anticipated.
Other Revenues
Actual 1994-95
($000)
A~usted Budget
1995-96
($000)
Actual 1995-96
($000)
Variance with Budget
($ooo)
$6,879 $7,468 $7,875 $407
Other Revenues, a category that consists of interest income, fire and communication services to
Stanford University, State and Federal grants, donations and contributions, and miscellaneous
sales, is over budget by $.41 million or 5.5 percent and over prior year actuals by $1.0 million or
14.5 percent. The positive budget variance primarily results from interest income which exceeded
budget by $.40 million. Additional interest income was realized as a consequence of higher
CMR:458:96 Page 7 of 22
General Fund cash reserves. Expense savings and higher than anticipated revenues contributed to
the higher reserve levels.
Operating Transfers In
Actual 1994-95
($000)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$10,559 $11,749 $11,504 $(245)
Operating transfers were $.25 million or 2.1 percent below budget and $.95 million or 8.9 percent
above prior year transfers. Operating transfers are below budget as a result of less than
anticipated maintenance support for the University and California Avenue parking districts, and
midyear implementation of the attendant parking program ($96,000). In addition,
reimbursements for staff work from the Gas Tax Fund and certain federal grant programs were
lower than projected ($67,000).
GENERAL FUND EXPENDITURES BY DEPARTMENT
Administration
Actual 1994-95
($0oo)
Adjusted Budget
I995-96
($ooo)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$ i0,532 $12,616 $12,251 ($365)
There were salaries and benefits savings in !995-96 as a result of vacancies in the Administrative
Services Department. Positions were vacant in Financial Support Services, Financial Planning
and Analysis, and Information Technology Services.
Community Services
Actual 1994-95
($ooo)
A~usted Budget
1995-96
($000)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$14,921 $16,440 $15,965 ($475)
The positive variance from budget is primarily due to savings in water costs. For the second year,
Community Services’ water expenses have been low due to heavy winter rains and the use of
CMR:458:96 Page 8 of 22
reclaimed water on the Golf Course. As a result of lower enrollments in Recreation Division
classes, the department experienced lower contract expenses and lower class revenues. While
temporary salary expenses were above budget due to the use of temporary personnel instead of
contractors, this expense was somewhat offset by vacancy savings of $. 1 million in regular staff
positions.
Fire
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($oo0)
Actual 1995-96
($0oo)
Variance with Budget
($oo0)
$12,081 $12,943 $12,412 ($531)
Savings in the Fire Department are the result of a new accounting rule for government agencies
that have bad debt. Paramedic bad debt is now treated as an offset to revenue rather than as an
addition to expense. This recent change has affected actual expense and revenue, but was not
implemented for the 1995-96 budget, resulting in lower than budgeted expenditures and lower
than budgeted paramedic revenues.
Planning
Actual 1994-95
($ooo)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($000)
Variance with Budget
($ooo)
$3,990 $4,466 $4,411 ($55)
The positive variance results from savings in contract services in the Development Review
Functional Area.
Police
Actual 1994-95
($000)
A~usted Budget
1995-96
($000)
Actual1995-96
($ooo)
Variance with Budget
($ooo)
$14,535 $15,474 $14,835 ($639)
Staff vacancies and early retirements resulted in salaries and benefits savings. These savings
occurred despite large overtime expenditures for the seria! rape investigation, backfilling for
employees on leave, and the initiation of the downtown patrol. In addition, $.06 million in
contract services savings were realized as a result of lower contract costs.
CMR:458:96 Page 9 of 22
Public Works
Actual 1994-95
($000)
Adjusted Budget
1995-96
($ooo)
Actual 1995-96
($ooo)
Variance with Budget
($ooo)
$10,012 $10,125 $9,880 ($245)
The positive budget variance principally results from salary and benefits and contract services
savings in the Trees and Structures & Grounds Functional Areas.
Non-Departmental
Actual 1994-95
($ooo)
A~usted Budget
1995-96
($ooo)
Actual1995-96
($ooo)
Variance with Budget
($ooo)
$4,657 $4,988 $4,736 ($252)
Savings occurred in this area due to unspent salary and non-salary contingency funds.
Operating Transfers
Actuat1994-95
($ooo)
A~usted Budget
1995-96
($ooo)
Actual1995-96
($ooo)
Variance with Budget
($ooo)
$5,686 $6,730 $5,533 ($1,197)
Savings in operating transfers occurred because unspent funds for some street and sidewalk
projects are not transferred directly to the Capital Improvement Fund, but remain in the General
Fund and are included in the Reserve for Encumbrances and Reappropriations.
CMR:458:96 Page 10 of 22
GENERAL FUND RESERVES
The net operating surplus in the General Fund caused an increase in the Budget Stabilization
Reserve (BSR). The net effect of all impacts to the City’s BSR is shown in the following table.
Budget Stabilization Reserve Balance at 7/1/95 ($000)$13,899
Net from General Fund Operations $6,841
Closed Capital Improvement Projects 1,109
Change in Encumbrance Reserve (638)
Change in Reserve for Streets and Sidewalks 472
Change in Reserve for Emergencies (300)
All Other General Fund Reserve Changes (956)
Budget Stabilization Reserve Balance as of July 1, 1996 $20,427
The Budget Stabilization Reserve balance remains within Council approved guidelines of
between 10 and 30 percent of the General Fund’s actual operating expenditures for the fiscal
year. For 1995-96, this range is between $7.5 million and $22.3 million.
Based on the guidelines Council approved, the Reserve for Emergencies has been increased from
$5.0 to $5.3 million. The guidelines for the reserve is that the level should be 10% of General
Fund salaries and benefits.
CMR:458:96 Page 11 of 22
Below are all General Fund reserve balances as of June 30, 1996. The reserves are separated into
"Discretionary Reserves" (those reserves which are uncommitted from a legal and budgetary
perspective) vs. "Non-Discretionary Reserves," (those reserves which have commitments
associated with them).
1995
($ooo)
1996
($ooo)
Increase
(Decrease)
from 1995
($000)
Discretionary Reserves:
Budget Stabilization Reserve $13,899 $20,427 $ 6,528
Reserve for Streets and Sidewalks/School
Site Projects 865 393 (472)
Reserve for Emergencies 5,000 5,300 300
Total Discretionary Reserves $19,764 $26,120 $6,356
Non-Discretionary Reserves:
Reserve for Encumbrances/
Reappropriation $4,503 $ 5,141 $ 638
Reserves for Inventory and Notes
Receivable 1,712 2,399 687
Total Non-Discretionary Reserves $6,215 $7,540 $1,325
TOTAL GENERAL FUND RESERVES $25,979 $33,660 $7,681
,CAPITAL IMPROVEMENT FUND
Capital project expenditures were $5.6 million compared to an adjusted budget of $8.0 million.
Projects focused mainly on infrastructure rehabilitation and upgrades (which included structural
improvements at the Senior Center), Americans With Disabilities Act compliance, Civic Center
garage improvements and park irrigation and maintenance projects. Comparable with previous
years, approximately $1.9 million was spent on the repair of streets and sidewalks.
CMR:458:96 Page 12 of 22
INTERNAL SERVICE FUNDS
The Printing and Mailing Internal Service Fund ended the fiscal year with revenues
approximately $51,000 above expenditures due to higher than projected mailing revenue and
interest earnings.
The Vehicle Maintenance functional area of the Vehicle Maintenance and Replacement Fund
closed the 1995-96 fiscal year in a negative situation, i.e. revenues were not sufficient to cover
expenses. The shortfall of revenues over expenditures of $ t00,000 occurred due to an
unanticipated increase in the price of fuel. The variance is covered in the attached year-end
closing Budget Amendment Ordinance using 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
1994-95
Actual
($ooo)
$73,675
30,242
9,~71
10,160
0
$3,902
1995-96
Adjusted
Budget
($000)
$70,878
27,524
29,116
12,676
0
$1,562
1995-96
Actual
($ooo)
$71,491
24,492
28,672
11,881
0
$6,446
Variance
($ooo)
$ 613
(3,032)
(444)
(795)
0
$4,884
CMR:458:96 Page 13 of 22
Revenues
The Electric Fund’s total revenues were $.61 million higher than the adjusted budget. Electric
sales were $.87 million above the adjusted budget. Higher sales resulted from increased power
usage during the summer months. Other revenues, however, were $.3 million below the adjusted
budget. Due to delays in construction for shared capital projects, reimbursement from the Cable
Co-Op and Pacific Bell was lower than expected.
Expenses
Power purchase costs were $3.0 million less than the adjusted budget despite an $8.0 million
downward adjustment midyear. The principal causes of this favorable variance were: record low
spot market electric prices resulting from an abundance of Pacific Northwest electric power due
to heavy winter rains; and a revised power purchase contract with the Western Area Power
Administration (WAPA), implemented in January 1996, whereby the City lowered its maximum
annual power load commitments from 175 MW to 137 MW. This contract change enabled the
City to buy the minimum amount of power from WAPA, while allowing the City to purchase the
bulk of its power needs from a less expensive spot market.
On the operations side, there were $.44 million in savings. Design and implementation of
Demand Side Management (DSM) programs was delayed until approval of the new DSM
program from the Utilities Advisory Commission and the City Council is received. This resulted
in nearly $ ! million in savings in the Resource Management area. In the Electric Distribution
area, however, Salaries and Benefits expenses were $0.6 million over budget. This was due to
incorrect budget allocations of staff time between operating and capital activities during the
development of the new Mission Driven Budget and additional expenses related to restoration
work following the December storms.
Reserves
The 1995-96 Electric Fund’s Rate Stabilization Reserve (RSR) balance at year end is $33.1
million, $7.3 million above the Council approved maximum guideline level. The 1996-98
Adopted Budget includes a transfer of $15.9 million to the Calaveras Reserve. This will fund
future debt service obligations related to the Calaveras Hydroelectric Project and also help to
restore the RSR to approved limits.
CMR:458:96 Page 14 of 22
Gas Fund
Revenues
Expenditures
Purchases
Operations, Transfers and
Other
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($o0o)
$23,180
8,752
5,735
4,677
0
$4,016
1995-96
A~usted
Budget
($00o)
$20,128
7,657
7,162
4,548
0
$761
1995-96
Actual
($oo0)
$20,005
6,861
6,364
4,270
0
$2,510
Variance
($000)
$ (123)
(796)
(798)
(278)
0
$1,749
Revenues
Gas Fund revenues were $0.12 million below budget. The revenue shortfall was attributable to
lower customer sales due to lower gas consumption in the winter months.
Expenses
Wholesale gas commodity and transportation expenses were $.80 million lower than the adjusted
budget despite a $2.6 million downward adjustment midyear. The natural gas market remained
soft during the fiscal year resulting in record low prices. In addition, under the new purchase
agreement with Suncor of Canada (effective January 1, 1996), the City is buying gas at the
California border, resulting in lower transportation costs.
Operating savings of $.80 million, primarily in Resource Management, were due to the delay of
new DSM programs as staff concentrated on the internal restructuring and development of new
marketing programs for the Electric Utility.
CMR:458:96 Page 15 of 22
Reserves
The Gas Fund’s year-end RSR balance is $13.8 million. This exceeds the maximum guideline
level by $6.2 million. The gas rate reduction of 12 percent, included in the 1996-98 Adopted
Budget, will help restore the RSR to approved limits in the coming fiscal year.
Refuse Fund
Revenues
Expenditures
Payments to PASCO
Other Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($ooo)
$19,853
5,946
13,207
0
0
$700
1995-96
A~usted
Budget
($ooo)
$19,849
6,430
14,479
0
0
($1,060)
1995-96
Actual
($000)
$20,242
6,008
13,247
0
0
$987
Variance
($ooo)
$ 393
(422)
(1,232)
0
0
$2,047
Revenues
Refuse Fund revenues were $.39 million above the adjusted budget. Revenues were higher for
landfill disposal fees ($.29 million), the City’s portion of PASCO-billed services ($. 19 million),
and operating transfers to the City’s parking district ($.06 million).
Expenses
Disposal fees to PASCO, which are based on actual refuse billings, were $.42 million below the
adjusted budget.
CMR:458:96 Page 16 of 22
Disposal fees to PASCO, which are based on actual refuse billings, were $.42 million below the
adjusted budget.
On the operating side, the $1.2 million in savings can be attributed to ¯
O Lower Salary and Benefit expenses ($.31 million) due to vacancies during the
year.
Lower contract expenses ($.41 million) for hazardous material removal programs
due to lower-than-projected public participation. Part of the variance was caused
by closing contracts for the program with a change in the contract period to a
fiscal year basis.
O Lower contract expenses ($. 15 million) for the hazardous control program at the
landfill.
O Lower-than-budgeted expenses ($.36 million) related to the City’s share of
SMART Station operations.
Reserves
Bolstered by favorable revenue and expenses variances, the Refuse Fund’s RSR increased $.73
million over the 1994-95 ending balance. The 1995-96 ending balance of $4.5 million is above
Council’s approved maximum guideline level by $.86 million.
CMR:458:96 Page 17 of 22
Storm Drainage Fund
Revenues
Expenditures
Operating Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($ooo)
$12,213
1,627
4,785
90
$5,711
1995-96
A~usted
Budget
($00o)
$ 6,730
1,685
7,323
260
($2,538)
!995-96
Actual
($00o)
$ 6,640
1,626
7,331
260
($2,577)
Variance
($ooo)
(90)
(59)
8
0
($39)
Revenues
Storm Drainage revenues were $0.1 million below the adjusted budget. The shortfall was due to
a number of exemptions for property owners that were not anticipated in the budget.
Expenses
Operating expense savings of $.06 million were attributable to lower-than-budgeted maintenance
activities for the storm drainage system.
Reserves
The Storm Drainage Fund year-end RSR balance is $3.0 million. This is comprised primarily of
unspent project funds from the 1995 bond proceeds, which will be used to fund the 1996-97
Storm Drainage Fund capital projects.
CMR:458:96 Page 18 of 22
Wastewater Fund: Collection
Revenues
Expenditures
Sewer Treatment Exp.
Operating Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($000)
$11,120
3,348
1,879
4,426
146
$1,321
1995-96
A~usted
Budget
($ooo)
$13,912
3,929
2,030
7,421
156
$376
1995-96
Actual
($ooo)
$13,767
3,625
1,916
6,681
156
$1,389
Variance
($ooo)
$ (145)
(304)
(114)
(740)
0
$1,013
Revenues
The Wastewater Collection Fund’s total revenues were $. 15 million below the adjusted budget,
mainly due to lower sewer billings. The industrial and commercial customer’s sewer billings are
based on actual water consumption. The heavy rains during the winter months resulted in lower
consumption, which caused the revenue shortfall.
Expenses
The savings in the Sewer Treatment Expenses ($.3 million) were caused by lower cost
allocations from the Regional Water Quality Control Plant. The savings of $. 12 million in
contract costs was the result of lower-than-projected sewer maintenance activities. On the capital
side, savings of $.74 million resulted from lower-than-budgeted spending on various sewer
rehabilitation projects.
CMR:458:96 Page 19 of 22
Reserves
The Wastewater Collection Fund RSR increased $1.2 million in 1995-96 to $8.9 million. This
reserve balance is $2.9 million above the maximum guideline level. The rate decrease of 9
percent in the 1996-97 budget will help bring the RSR within approved limits.
Wastewater Fund: Treatment
Revenues
Expenditures
Operating Expenses
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($ooo)
$11,780
9,372
1,834
319
$255
1995-96
A~usted
Budget
($000)
$13,646
10,735
2,258
339
$314
1995-96
Actual
($o0o)
$12,978
9,811
2,257
339
$571
Variance
($00o)
(668)
(924)
(1)
0
$257
Revenues
Wastewater Treatment Fund revenues, are based on the actual cost reimbursement from the
Regional Water Quality Control Plant Partners (RWQCP). The negative variance of $.67 million
in revenue reflects the significant cost savings at the Plant in 1995-96.
Expenses
The expense savings at the RWQCP totaled $.9 million. Included in this amount is a credit of
$.37 million related to previously purchased supplies for the warehouse. As of July 1, the
RWQCP warehouse has been merged with the central warehouse managed by the Administrative
Services Department. This transfer resulted in a one-time credit to the Plant, representing the
value of the inventory transferred to the central warehouse. Contract service costs were $.34
CMR:458:96 Page 20 of 22
million below the adjusted budget, mainly due to fewer environmental and Bay monitoring
studies. RWQCP staff has been successful in reducing the number of studies required by the
Regional Water Quality Control Board. Additional savings were realized due to lower operating
supply costs ($. t4 million) and overtime expenses ($.07 million).
Reserves
The Wastewater Treatment Fund’s ending RSR balance is $2.8 million, which is within the
desired targets.
Water Fund
Revenues
Expenditures
Purchases
Operations, Transfers and
Other
Capital Expenses
Debt Service
Net to (from) Reserves
1994-95
Actual
($ooo)
$15,590
4,204
6,456
4,927
0
$3
1995-96
Adjusted
Budget
($000)
$16,606
4,758
6,611
5,458
0
($221)
1995-96
Actual
($000)
$16,008
4,595
5,763
5,164
0
$486
Variance
($ooo)
$ (598)
(163)
(848)
(294)
0
$707
Revenues
Total revenues in the Water Fund were $.6 million or 4 percent below the adjusted budget. This
was mainly attributable to lower water consumption due to heavy rains during the spring and
summer months. Overall, water consumption in Palo Alto has been declining from the pre-
drought days. In 1995-96, water consumption was 5 percent below the adjusted budget.
CMR:458:96 Page 21 of 22
Expenses
Lower water consumption and continuing non-drought conditions contributed to large savings in
the Resource Management area. Wholesale water purchase costs were $. 16 million below the
adjusted budget. In addition, cancellation of new DSM programs as a result of current non-
drought conditions contributed $.34 million in Salaries and Benefits and Contract Services
savings. The remaining savings ($.36 million) were in the Water Distribution area, as the Water-
Gas-Wastewater operations staff allocated less time than expected time to water utility activities.
Reserves
Largely as a result of expenditure savings, the Water Fund RSR balance increased $.25 million
during 1995-96. The 1995-96 ending balance of $6.8 million is $.47 million above the target
level reserve guideline adopted by Council.
ATTACHMENTS
Attachment 1
Exhibit A
Exhibit B
Exhibit C
Budget Amendment Ordinance - Year-end Closing Ordinance
1995-96 Reappropriation Requests
Enterprise Fund Summaries
Enterprise Fund Reserve Balances
CMR:458:96 Page 22 of 22
ATTACHMENT i
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 1995-96
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 19,1995 did adopt a budget for fiscal year 1995-96; and
WHEREAS, fiscal year 1995-96 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 Deputy City Manager,
Administrative Services, which are attached hereto, and by
reference made a part hereof; and
WHEREAS, pursuant to Section 2.28.080 of the Palo Alto
Municipal Code, the City Manager did amend the budgetary accounts
of the City of Palo Alto to reflect:
(A) Additional appropriations authorized by ordinance of the
City Council.
(B) Amendments to employee compensation plans adopted by the
City Council.
(C) Transfers of appropriations from the contingent account
as authorized by the City Manager.
(D) Redistribution of appropriations between functional
areas major activities, and objects within various departments as
authorized by the City Manager.
(E) Fiscal year 1995-96 appropriations which on July i, 1996
were encumbered by properly executed, but uncompleted, purchase
orders or contracts; and
WHEREAS, Article III, Section 12, of the Charter of the City
of Palo Alto requires City Council approval of additional
appropriations or transfers of appropriations from one department
to another; and
WHEREAS, fisca! year 1995-96 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 fisca! year
1996-97 budget;
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The fiscal year 1995-96 unencumbered balances for
the departments and categories shown on Exhibit "A" shall be
carried forward and added to the fiscal year 1996-97 budget for
those departments and categories.
SEqTIQN 2. The
directed:
City Manager is further authorized and
(A) To close the fiscal year 1995-96 budget accounts in all
funds and departments and to make such interdepartmental transfers
as required by the Charter of the City of Palo Alto, by ordinance,
in the 1995-96 budget as adopted or amended.
(B) To close various completed Capital Improvement Projects as
shown 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 1995-96, June 30, 1996. Such
appropriations shall be carried forward and added to the fiscal
year 1996-97 budget.
(b) Fiscal year 1995-96 departmental expenditures
which were authorized to be carried forward 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 Counci! may approve.
(4) Reserves for utilities plant replacement, rate
stabilization, and other reserves in accordance with Charter and
policy guidelines.
(5) After providing for the foregoing reserves, transfer
the remainder of the fisca! year 1995-96 excess of General Fund
revenues over expenditures to the Budget Stabilization Reserve.
SEgTIQN 3. The sum of One Hundred Thousand One Hundred
Seventy-Seven Dollars ($100,177) is hereby transferred from the
Vehicle Maintenance Retained Earnings to the Vehicle Maintenance
Functional Area of the Vehicle Maintenance and Replacement Fund,
thereby reducing the balance in the Vehicle Maintenance Retained
Earnings to $551,823. The variance occurred due to an unanticipated
increase in the price of fuel.
SEgTION 4. Upon completion of the independent audit,
detailed financia! statements reflecting changes in all the above
sections shall be published as part of the annual financia! report
of the City as required by Article III, Section 16, of the Charter
of the City of Pa!o Alto and in accordance with generally accepted
accounting principles.
$.E.~TION..5. 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.
$.EgTION.....6. The Council of the City of Palo Alto hereby
finds that the enactment of this ordinance is not a project under
the California Environmental Quality Act and,therefore,no
environmental impact assessment is necessary.
SECTION 7.
Municipal Code,
adoption.
As provided in Section 2.04.350 of the Palo Alto
this ordinance shal! become effective upon
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Mayor
City Manager
Deputy City Manager,
Administrative Services
EXHIBIT A
1995-96 REAPPROP~ATION REQUESTS
Department/
Division
Reappropriation Amount
General Fund
Administrative Services Consultant study to evaluate the City’s current
Management Information System (MIS)
operations and develop a strategy for future
development.
(It was deemed more appropriate to postpone
this consultant study until the consolidation of
the Finance and Information Resources Depart-
ments to the Administrative Services Depart-
ment was complete. In 1995-96 the ITS
Division was understaffed and completion of
the study would have put undue strain on their
limited staff.)
$ 50,000
G,ity Clerk Public communication consultant to develop a
public communications plan and to provide
public communication services.
(Remaining balance from consultant contract to
develop a public communication plan will be
used for codification of the Palo Alto Municipal
Code.)
$ 12,700
CommuniW Services This funding was allocated to allow Commu-
nity Services to update its ESCOM computer
registration system to a Windows version.
Funding would also be used for hardware and
training.
(Negotiations with ESCOM began in 1995-96
but have not proceeded enough to finalize a
contract. Additionally, certain technical require-
ments will have to be met by the City in order
to successfully update the registration system.)
$ 24,700
EXHIBIT A
1995-96 REAPPROPRIATION REQUESTS
Department/
Division
Reappropriation Amount
Plannin_~Comprehensive Plan update.
(These funds were budgeted for a multi-year
update of the City’s Comprehensive plan.)
$110,600
Public Works Thermoplastic traffic legends.
(On!y.’ one bid was received in 1995-96. The
single bid was $7,000 above the available
amount for the project. Specifications will be
modified and project will be re-bid in 1996-
97.)
20,000
Utility Funds
Street tree trimming project contract.
(This project has been delayed due to higher
priority projects.)
$132,000
Refuse Fund
Capital Improvement Program
Compost area design and relocation.
(The Waste Management Board has mandated
that composted areas be permitted. In order to
comply with the permit requirements, a
decision was made to relocate the compost
area.
(A consultant has been contracted for the
design of the project and is expected to com-
plete the design by early August. The construc-
tion bid process will begin upon completion of
the design work.)
$ 35,000
Administrative Services
CIP #19519
Multi-Line Telephone System
(There was not enough time to allocate to this
project due to staff vacancies.)
$140,000
EXHIBIT A
1995-96 REAPPROPRIATION REQUESTS
Department/
Division
Reappropriation Amount
Plannin~ CIP #19524
Planning CIP #19401
Bikeway System Improvement
(This project was delayed due to other Trans-
portation Division project priorities. Design
work was initiated in spring 1996. Project is
scheduled to be complete in mid 1996-97.)
California Avenue Underpass Improvements
(This project has been delayed pending
Council action on setting priorities for traffic
safety and infrastructure projects.)
30.000
$ 30,000
Planning. CIP #19502 Pedestrian Grade Separation Feasability Study.
(This project has been delayed pending
Council action on setting priorities for traffic
safety and infrastructure projects.)
$150,000
Plannin~o CIP #19523 El Camino Real Intersection Improvements
(This project has been delayed due to resched-
uling by, Caltrans, the lead agency on this
project. The project is scheduled for construc-
tion in spring 1997.)
$160,000
Public Works
CIP #19301
Baylands Athletic Center Circuit Replacement
(This project has been delayed due to number
of higher priority projects, such as the Police
Department security remodel.)
50,000
Public Works
CIP#t9511
Lucie Stem Pathway Lighting
(This project has been delayed due to a
number of higher priority projects, such as the
Police Department security remodel.)
25,000
Total Reappropriation Requests:
General Fund
Utility’ Fund
Capital Improvement Fund
Total
$350,000
$ 35.000
$585,000
$970,000
1994-95
Actual
EXHIBIT B
Enterprise Fund Summaries
1995-96
ELECTRIC FUND
1995-96
Adjusted
Budqet
1995-96
Actual Enc/Reap
1995-96
Actual Plus
Enc/Reap Variance
REVENUE
Revenues 67,762 65,943 66.556 66.556 613
Reappropriations /Enc 5,913 4.935 4,935 4.935 0
TOTAL REVENUE 73.675 70.878 71.491 71.491 613
EXPENSES
Purchases 3o,242 27.524 24,492 24.492 (3.032)
Other Expenses 29.371 29.116 28,188 484 28.672 (444)
TOTAL OPERATING EXPENSES 59,613 56.640 52,680 484 53,164 (3,476)
Capital Expenses 10,160 12,676 5,332 6,549 11,881 (795)
TOTAL EXPENSES 69,773 69,316 58,012 7,033 65,045 (4,271)
TO/(FROM) RESERVES 3,902 1,562 13,479 (7,033)6,446 4,884
GAS FUND
1995-96
1994-95 Adjusted 1995-96
_Act_ual ........... ~_: Bu~ dge_) ..... Actual
REVENUE
Revenues 21,315 18,230 18,107
Reappropdations /Enc 1,865 1,898 1,898
TOTAL REVENUE 23,180 20,128 20,005
EXPENSES
Enc/Reap
1995-96
Actual Plus
Enc/Reap
18,107
1,898
20,005
Variance
(123)
0
(123)
Purchases 8.752 7.657 6,861 6,861 (796)
Other Expenses 5.735 7,162 6.290 74 6,364 (798)
TOTAL OPERATING EXPENSES 14,487 14,819 13,151 74 13,225 (I ,594)
Capital Expenses 4.677 4.548 2,541 1,729 4,270 (278)
TOTAL EXPENSES 19,164 19,367 15,692 1,803 17,495 (1,872)
TO/(FROM) RESERVES 4,016 761 4,313 (1,803)2,510 1 ,?49
REFUSE FUND
1994-95
Actual
1995-96
Adjusted
Budqet
1995-96
Actual Eric/Reap
1995-96
Actual Plus
Eric/Reap Variance
REVENUE
Revenues 19,547 19,391 19,784 19,784 393
Reappropriations /Enc 306 458 458 458 0
TOTAL REVENUE 19,853 19,849 20,242 20,242 393
EXPENSES
Payments to PASCO 5.946 6,430 6,008 6,008 (422)
Other Expenses 13,207 14.479 12,938 309 13,247 (1.232)
TOTAL OPERATING EXPENSES 19,153 20,909 18,946 309 19,255 ( 1,654)
Capital Expenses 0 0 0 0 0 0
TOTAL EXPENSES 19,153 20,909 18,946 309 19,255 (1,654)
TO](FROM) RESERVES 700 (1,060)1,296 (309)987 2,047
STORM DRAINAGE FUND
REVENUE
Revenues
1995 Bond Proceeds
Reappropriations /Enc
1995-96
1994-95 Adjusted 1995-96
Actual Budget Actual
2,198 2,266 2,176
8,358 0 0
1,657 4,464 4,464
Enc/Reap
1995-96
Actual Plus
Enc/Reap
2,176
0
4,464
Variance
(9O)
0
0
TOTAL REVENUE 12.213 6,730 6,640 0 6,640 (90)
EXPENSES
Operating Expenses 1,627 1.685 1,503 123 1,626 (59)
TOTAL OPERATING EXPENSES 1,627 1,685 1,503 123 1,626 (59)
Capital Expenses 4,?85 7,323 2,696 4,635 ?,331 8
Principal Payments 90 260 260 260 0
TOTAL EXPENSES 6,502 9,268 4,459 4,758 9,217 (51 )
TO/(FROM) RESERVES 5,711 (2,538)2,181 (4,758)(2,577)(39)
WASTEWATER COLLECTION FUND
1994-95
Actual
1995-96
Adjusted 1995-96
Budget Actual
REVENUE
Revenues 10,648 11,004 10,859
Reappropriations / Enc 472 2,908 2,908
TOTAL REVENUE 11,120 13,912 13.767
EXPENSES
Sewer Treatment Exp.3,348 3.929 3.625
Operating Expenses 1,879 2.030 1.894
TOTAL OPERATING EXPENSES 5.227 5.959 5.519
Capital Expenses 4.426 7,421 1,822
Principal Payments 146 156 156
TOTAL EXPENSES 9,799 13.536 7,497
TO/(FROM) RESERVES 1,321 376 6.270
Enc/Reap
1995-96
Actual Plus
Enc/Reap
10,859
2,908
13,767
22
22
4.859
4.881
(4.881)
3.625
1,916
5,541
6,681
156
12,378
1.389
Variance
(145)
0
(145)
(304)
(114)
(418)
(740)
0
(1.158)
1.013
WASTEWATER TREATMENT FUND
REVENUE
Revenues
Reappropriations / Enc
TOTAL REVENUE
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
TOTAL EXPENSES
TO/(FROM) RESERVES
1995-96
1994-95 Adjusted 1995-96
Actual Budqet Actual
9,876 11,173 10,505
1,904 2.473 2.473
11.780 13,646 12,978
9,372 10.735 8,472
9,372 10.735 8,472
1.834 2,258 655
3!9 339 339
11.525 13.332 9.466
255 314 3,512
Enc/Reap
1995-96
Actual Plus
Enc/Reap
10,505
2,473
12,978
1.339
1.339
1.602
2.941
(2,941 )
9.811
9.811
2.257
339
12,407
571
Variance
(668)
0
(668)
(924)
(924}
(1)
0
(925)
257
WATER FUND
1995-96
1994-95 Adjusted
Actual Budqet
1995-96
Actual Enc/Reap
1995-96
Actual Plus
Eric/Reap Variance
REVENUE
Revenues 12,554 13,373 12.775 12.775 (598)
Reappropriations / Enc 3.036 3.233 3,233 3,233 0
TOTAL REVENUE 15,590 16,606 16,008 16,008 (598)
EXPENSES
Purchases 4,204 4.758 4,595 4,595 (163)
Other Expenses 6,456 6,611 5,686 77 5,763 (848)
TOTAL OPERATING EXPENSES 10,660 11,369 10,28 ]77 10,358 ( 1,011 )
Capital Expenses 4,927 5,458 2,686 2,478 5,164 (294)
TOTAL EXPENSES 15.587 16,827 12,967 2,555 15,522 (1,305)
TO/(FROM) RESERVES 3 (22])3,04](2,555)486 ?07
EXHIBIT C
CITY OF PALO ALTO
UTILITY FUNDS RESERVES SUMMARY ($000)
FY 1995/96
ELECTRIC FUND
Emergency Plant Replacement
Rate Stabilization Reserve
Calaveras
Subtotal
1995-96 PROJECTED
1994-95 ADJUSTED ENDING
ACTUAL BUDGET BALANCE
1995-96 MINIMUM MAXIMUM
ACTUAL BALANCE BALANCE
2.071 74 2,145 2, t45
36,555 (7.510)29,045 33,138 12.912
14,827 9,000 23,827 23,827
53.453 1.564 55.017 59,110
3,220
25,823
GAS FUND
Emergency Plant Replacement
Rate Stabilization Reserve
Gas Supplemental Supply
Subtotal
595 30 625 624
11,623 730 12,353 13,791
3,092 0 3,092 3,092
15.310 760 16,070 17,507
3,803
980
7,606
REFUSE FUND
Rate Stabilization Reserve
Water Resources Board
Subtotal
3,752 (956)2.796 4,483
236 118 354 354
3,988 (838)3.150 4,837
1.810 3,620
STORM DRAINAGE FUND
Rate Stabilization Reserve
Subtotal
WASTEWATER
COLLECTION FUND
Emergency Plant Replacement
Rate Stabilization Reserve
Subtotal
5.633 (2,538)3,095 2,996
5,633 (2,538)3,098 2;996
336 18 354
7.721 357 8,078
8,057 375 8,432
354
8,931
9,285
4,243
858
6,031
WASTEWATER
TREATMENT FUND
Emergency Plant Replacement
Rate Stabilization Reserve
Subtotal
WATER FUND
Emergency’ Plant Replacement
Rate Stabilization Reserve
Subtotal
947 68 1,015
2,667 424 3,091
3,614 492 4,106
1;015
2,803
3,818
652 55 707 707
6,585 (274)6.311 6,838
7,237 (219)7,018 7,545
1,602
4,243
1,473
3,204
858
8,486