HomeMy WebLinkAboutStaff Report 115-07TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
4
DEPARTMENT: ADMINISTRATIVE
SERVICES
JANUARY 221 2007 CMR: 115:07
FINANCE COMMITTEE RECOMMENDATION TO APPROVE AN
ORDINANCE CLOSING THE 2005-06 FISCAL YEAR, INCLUDING
TRANSMISSION OF THE CITY’S COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR), REAPPROPRIATION REQUESTS, AND
COMPLETED CAPITAL IMPROVEMENT PROJECTS FROM FINANCE
COMMITTEE MEETING OF DECEMBER 12, 2006
RECOMMENDATION:
The Finance Committee recommends that Council approve the attached ordinance and associated
exhibits to: close the.2005-06 Budget and authorize re-appropriation of 2005-06 funds into the
2006-07 Budget; close completed capital improvement projects; and transfer remaining Capital
Improvement Project balances to the appropriate reserves. In addition, the City’s Comprehensive
Annual Financial Report (CAFR) is being transmitted for approval.
PREPARED BY:
TRUD--~EIKENBERR} ~3
Accounting~
LALO pERI~Z
Assistant Director, Administrative Services
CMR: 115:07 Page 1 of 2
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
Assistant City Manager
ATTACHMENTS
Attachment 1: CMR 430:06
CMR:115:07 Page 2 of 2
ATTACHMENT 1
City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
DECEMBER 12, 2006 CMR: 430:06
ORDINANCE CLOSING THE 2005-06 FISCAL YEAR,
INCLUDING TRANSMISSION OF THE CITY’S
COMPREHENSIVE ANNUAL FINANCIALREPORT (CAFR),
REAPPROPRIATION REQUESTS, AND COMPLETED CAPITAL
IMPROVEMENT PROJECTS
RECOMMENDATION
Staff recommends that the Finance Committee review, provide input, and forward the attached
ordinance (Attachment A) and associated exhibits to the City Council for its approval to: close
the 2005-06 Budget and authorize re-appropriation of 2005-06 ,funds into the 2006-07 Budget
(Exhibits A & B); close completed capital improvement projects (Exhibit C); and transfer
remaining balances to the appropriate reserves .(Exhibits D & E for General Fund and Exhibits F
& G for Enterprise Funds). In addition, staff is transmitting the City’s Comprehensive Annual
Financial Report (CAFR) for review and approval (Attachment B).
BACKGROUND
The attachments to this report provide the necessary documents for closing the 2005-06 fiscal
year budget and providing funds for the current fiscal year 2006-07. In addition, they provide
detailed information on the City’s financial activities for 2005-06. This cover report highlights
the key fiscal issues impacting the City of Palo Alto and identifies pages in the attachments
where the reader can find more comprehensive explanations. The Management Discussion and
Analysis (MD&A) chapter of the CAFR (Attachment B) provides an easy-to-read, thorough
discussion and analysis of the City’s current fiscal health. It includes financial statements,
performance information that is compared to the prior year, and capital asset and debt
administration data.
CMR:430:06 Page 1 of 4
DISCUSSION
Economy
Fiscal year 2005-06, saw a cominuation of the economic recovery that began in 2004-05.
Unemployment rates declined from 2.7 percent to 2.3 percent in Palo Alto and from 5.8 percent
to 5..0 percent in Santa Clara County. Revenue sources have continued to rebound after years of
declines. However, although the economy is stable, growth is slow and the City has potential
expense and revenue challenges in the future. The City is proactively making efforts to meet
future economic challenges. (MD&A pp 3-4 Transmittal Letter p. vi)
Results by Fund
General Fund
For 2005-06 the General Fund had a net gain of $2.4 million compared to a net operating loss of
$35.0 million the prior year. The prior year loss was primarily from the $35.9 million operating
transfer to move the infrastructure reserve to the Capital Fund. At fiscal year-end, the fund
balance for the General Fund totaled $34.2 million. This was compri;ed of: $8.0 million
reserved for encumbrances, notes, prepaid and inventory; $22.7 million for the Budget
Stabilization Reserve; $3.4 million for the Equity Transfer Stabilization; and $0.1 for re-
appropriations. (Exhibit E) (MD&A pp. 14-15).
Capital Projects Fund
For fiscal year 2005-06, the Capital Projects Fund reported $13.8 million in expenditures and
other uses, a decrease of $8.7 million from prior year. This level of expenditures is :consist.ent
with the City’s effort to rehabilitate and maintain its existing infrastructure. The Capital Projects
Fund Balance totaled $44.5 million, an increase of $0.4 million. Included in the revenues
received by the Capital Projects Fund is an additional transfer of $1.0 million from the General
Fund for the Infrastructure Reserve (IR). This transfer fulfilled the total commitment of the
General Fund to provide funding of $5.6 million (includes interest earned on the IR balance) to
the Infrastructure Reserve. A number of completed and closed projects with remaining balances
at the end of fiscal year 2005-06 totaling $403,191 (Exhibit C) were returned to the Infrastructure
Reserve. This balance return provided an additional source of revenues to the IR. (MD&A p. 15)
Enterprise Funds
The Rate Stabilization Reserves (RSRs) for the combined Enterprise Funds increased by a net
$9.4 million. Major changes include a $19.1 million increase from the Electric Fund, primarily
due to a 19.5 percent rate increase and a $6.5 million decrease from the Waste Water Treatment
Fund. The rate stabilization reserve for the Waste Water Treatment Fund ended the year with a
negative Rate Stabilization Reserve balance of $4.6 million. The reserve has been negatively
impacted by the delay in construction for the reclaimed water pipeline project. The delay is
primarily due to construction bids coming in over budget. Once construction begins, grant and
partner revenues will offset the expense. At that time, the reserve should return to a positive
level. If State funding is not received, the project will not proceed. Exhibit G provides the
balance changes for all reserve categories for the Enterprise Funds. (MD&A p. 16-17)
At the end of fiscal year 2005-06, a number of enterprise fund CIP projects were completed and
closed (Exhibit C). The remaining balances of these projects reverted back to the various
reserves. Likewise, there were also other enterprise fund CIP projects that though still
CMR:430:06 Page 2 of 4
outstanding and continuing, returned a portion of their project balance to the reserve because the
project managers deemed that the remaining balances are sufficient to complete the projects
(Exhibit H).
RESOURCE IMPACT
Adoption of the attached budget-closing ordinance (Attachment A) allows for the re-
appropriation and carryover of funding from the 2005-06 budget so that specific operating
programs and capital projects can be completed in the current fiscal year (Exhibit B). In addition,
by closing completed capital improvement projects, balances (Exhibit C) are returned to the
original funding source for future appropriation. Exhibits D and F summarize financial results for
the General Fund and Enterprise Funds, respectively, by providing an analysis of the
performance of these funds in comparison to the budget as adopted and adjusted by Council.
Certain capital projects that still exist and are continuing have returned a portion of their budget
balance to reserves (Exhibit H). These returns have increased the respective reserve balance.
Exhibit E reflects the changes to and status of major reserves as follows:
The General Fund B SR is 18.1 percent of budgeted expenditures. This percentage is within
the Council approved guidelines of 15 to 18.5 percent and shows a closing balance of $22.7
million, an increase of $1.6 million from the prior year.
In FY 05-06, the General Fund transferred an additional $1.0 million to the Capital Fund.
The Infrastructure Reserve has a final balance of $20.7 million at the end of fiscal year 2005-
06.
o
o
The Reserve for Equity Transfer Stabilization has a final balance of $3.4 million.
Budget transactions included in the attached ordinance decreased General Fund reserves by
$1.03 million (Exhibit A).
The City is preparing for implementation of GASB 45 which requires that the City recognize
any unfunded, earned retiree medical costs. The Retiree Health Benefits Internal Service
Fund was established to fund retiree medical costs. As of June 30, 2005 the fund balance
was $18.2 million, primarily funded by the General Fund. As of June 30, 2006 the fund
balance is $26.5 million. The increase is primarily from transfers in the amount of $8.0
million consisting of: Electric Fund $2.5 million, Gas Fund $1.2 million, Wastewater
Treatment Fund $1.0 million, CIP Capital Fund $0.4 million, Water Fund $0.7, Refuse Fund
$0.7 million, Technology Fund $0.6 million, Wastewater Fund $0.4, Vehicle Replacement
Fund $0.3 million, Storm Drain Fund $0.1 million and Printing Fund $0.1 million. These
transfers were made as a partial payment toward the respective funds unfunded retiree
medical liability.
POLICY IMPLICATIONS
This recommendation is consistent with.existing City policies.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
CMR:430:06 Page 3 of 4
PREPARED BY:
TRUDY EIKENBERRY -~
Acco~strative ServicesLALO PEREZ
Assistant Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
Assistant City Manager
ATTACHMENTS
Attachment A: Budget Closing Ordinance body text
Exhibit A - Detailed Changes to the Adjusted Budget
Exhibit B - 2005-06 Re-Appropriation Requests
Exhibit C - Capital Improvement Projects Closed in 2005-06
Exhibit D - General Fund Summary
Exhibit E - General Fund Reserve Summary
Exhibit F - Enterprise Summaries
Exhibit G - Enterprise Reserve Summary
Exhibit H - Capital Improvement Projects Adjustments in 2005-06
Attachment B: CAFR
CMR:430:06 Page 4 of 4
Attachment A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 2005-06
The Council of the City of Palo Alto does ordain as
follows:
SECTION i. The Council of the City of Palo Alto finds
and determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto and as set
forth in Section 2.28.070 of the Palo Alto Municipal Code,
the Council on June 20, 2005 did adopt a budget for fiscal
year 2005-06; and.
B. Fiscal year 2005-06 has ended and the financial
results, although subject to post-audit adjustment, are now
available and are herewith reported in summarized, financial
Exhibits ~A", "B", "C", ~D", ~E", "F", "G" and "H" prepared
by the Director, Administrative Services, which are
attached hereto, and by reference made a part hereof.
SECTION 2. Pursuant to Section 2.28.080 of the Palo
Alto Municipal Code, the City Manager during fiscal year
2005-06 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
divisions, cost centers, and objects within
departments as authorized by the City Manager.
between
various
E. Fiscal year 2005-06 appropriations which on July I,
200~ were encumbered by properly executed, but uncompleted,
Page 1 of 6
purchase orders or contracts.
SECTION 3. The Council hereby approves adjustments to
the fiscal year 2005-06 budget for Fund Balancing Entries
as shown on attached Exhibit "A".
SECTION 4. The Council hereby reappropriates fiscal
year 2005-06 appropriations in certain departments and
categories, as shown on the attached Exhibit "B", which
were not encumbered by purchase order or contract, at year
end into the fiscal year 2006-07 budget.
SECTION 5. The fiscal year 2005-06 encumbered
balances for the departments and categories shown on
Exhibit ~’D" shall be carried forward and reappropriated to
those same departments and categories in the fiscal year
2006-07 budget.
SECTION 6.The
directed:
City Manager is authorized and
A. To close the fiscal year 2005-06 budget accounts in
all funds and departments and, as required by the Charter
of the city of Palo Alto, to make such interdepartmental
transfers in the 2005-06 budget as adopted or amended by
ordinance of the Council; and
B. To close various completed Capital Improvement
Projects (CIP) as shown in Exhibit ~C~ and move the
balances of the General Fund completed CIP into the
infrastructure reserve and all other completed CIP to their~
respective ~reserve funds indicated in Exhibit ~G"; and
C. To establish reserves as shown in Exhibits ~E",
"F" and ~G" for all Funds as necessary to provide for:
(1)A reserve for encumbrances and
reappropriations in the various funds,the
purpose of which is to carry forwardinto
the fiscal year 2006-07 budget and continue,
in effect, the unexpended balance of
appropriations for fiscal year 2005-06
departmental expenditures as shown in
Exhibits ~E" and ~F"; and
(2)Reserves for Advances to Other Funds, Stores
Inventory, and other reserves in accordance
Page 2of 6
with ordinance and policy
shown in Exhibit "E"; and
guidelines as
A reserve for general contingencies of such
amount that the City Council has approved;
and
(4)Reserves for utilities plant replacement,
rate stabilization, and other reserves in
accordance with Charter and policy
guidelines as shown Exhibit "G"
D. To fund the Budget Stabilization Reserve and the
Infrastructure Reserve in accordance with the General Fund
Reserves Policy adopted by the City Council; and
E. To fund the Equity Transfer Stabilization Reserve
in accordance with the General Fund Reserves Policy adopted
by the City Council.
SECTION 7. The General Fund Equ±ty Transfer
Stabilization Reserve is hereby increased by the sum of Two
Hundred Forty Thousand Two Hundred Dollars ($240,200), as
shown in Exhibit ~A", from the Stabilization Rate Reserves
of. the Utilities Department Funds as follow:
Electric Distribution $ 89,813
Electric Supply $ 89,812
Gas Distribution $ 30,288
Gas Supply $ 30,287
Total $ 240,200
The General Fund Equity Transfer Stabilization Reserve is
increased to $3,405,000..
SECTION 8. The General Fund Budget Stabilization
Reserve is hereby decreased by the sum of One Million
Thirty Thousand Dollars ($1,030,000) as described in
Exhibit ~A". This transaction will decrease the balance in
the General Fund Budget Stabilization Reserve to
$22,731,000.
SECTION 9. The Electric Supply Rate Stabilization.
Page 3 of 6
Reserve is hereby decreased by the sum of Eighty Nine
Thousand Eight Hundred Eighty Two Dollars ($89,812), as
described in Exhibit ~A". This transaction will reduce the
balance in the Electric Supply Rate Stabilization Reserve
to $64,542,000.
SECTION i0. The Electric Distribution Rate
Stabilization Reserve is hereby increased by the sum of Two
Million Six Hundred Thirty Three Thousand Five Hundred
Forty Two Dollars ($2,633,542) as described in Exhibit
This transaction will increase the Electric Distribution
Rate Stabilization Reserve to $12,281,000.
SECTION ii. The Electric Public Benefit Program
Reserve is hereby decreased by Five Hundred Thirty Five
Thousand Five Hundred Fifty Dollars ($535,550) as described
in Exhibit ~A". This transaction will decrease the balance
in the ElectricPublic Benefit Program to $1,384,000.
SECTION 12. The Gas Supply Rate Stabilization Reserve
is hereby decreased by the sum of Thirty Thousand. Two
Hundred Eighty Seven Dollars ($30,287) as described in
Exhibit ~’A". This transaction will decrease the Gas Supply
Rate Stabilization Reserve to $2,801,000.
SECTION 13. The Gas Distribution Rate Stabilization
Reserve is hereby increased by the sum of One Hundred
Eighty Seven Thousand Two Hundred Eighty Five Dollars
($187,285) as described in Exhibit ~A". This transaction
will increase the Gas Distribution Rate Stabilization
Reserve to $3,868,000.
SECTION 14. The Water Rate Stabilization Reserve is
hereby increased by the sum of One Hundred Fifty Two
Thousand Sixty Five Dollars ($152,065) as described in
Exhibit ~’A". This transaction will increase the Water Rate
Stabilization Reserve to $4,143,000.
SECTION 15. The Refuse Fund Rate Stabilization Reserve
is hereby increased by Thirty Seven Thousand Seven Hundred
Thirty One Dollars ($37,731) as described in Exhibit ~’A".
This transaction will increase t~e Refuse Fund Rate
Stabilization Reserve to $3,099,000.
SECTION 16. The Wastewater Collection Rate
Stabilization Reserve is hereby increased by Four Hundred
Fifty Four Thousand Nine Hundred Seventy Three Dollars
Page 4 of 6
$454,973) as described in Exhibit "A". This transaction
will increase the Wastewater Collection Rate Stabilization
Reserve to $4,293,000.
SECTION 17. The Technology Fund, an internal service
fund, Retained Earnings is .hereby decreased by One Thousand
Three Hundred Forty Nine Dollars ($1,349) as described in
Exhibit "An. This transaction will decrease the Technology
Fund Unrestricted Retained Earnings to $11,926,000.
SECTION 18. The Vehicle Replacement/Maintenance Fund,
an internal service fund, Retained Earnings is hereby
increased by Twenty Seven thousand Five Hundred Forty Seven
Dollars ($27,547) as described in Exhibit ~A~. This
transaction will increase the Vehicle
Replacement/Maintenance Fund Unrestricted Retained Earnings
to$5,126,000.
SECTION 19. The Capital Project Fund Infrastructure
Reserve is hereby increased by Two Million Ninety Three
Thousand Seven Hundred Forty One Dollars ($2,093,741) as
described in Exhibit ~A". This transaction will increase
the Capital Project Fund Infrastructure Reserve to
$20,687,000.
SECTION 20. Adjustments to various Capital Improvement
Projects are made as shown in Exhibit ~H". These changes
have impact on the reserve balances and these impacts are
included in Exhibit ~A"
SECTION 21. The Development Impact Fee Fund for Parks
Fund Balance is hereby decreased by One Hundred Fifty Five
Thousand Dollars ($155,000) as described in Exhibit ~A".
This transaction will decrease the Development Impact Fee
for Parks Fund Balance to $921,364
SECTION 22. Upon completion of the independent audit,
detailed financial statements reflecting the changes made
by the Sections 7 through 21 of this ordinance, shall be
published as part of the annual financial report of the
City as required by Article III, Section 16, of the Charter
of. the City of Palo Alto and in accordance with generally
accepted accounting principles.
SECTION 23. 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.
Page 5 of 6
SECTION 24. 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 25~ As provided in Section 2.04.330 of the
Palo Alto Municipal Code, this ordinance shall become
effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
City Attorney Director of Administrative
Services
Page 6 of 6
Exhibit A
CITY OF PALO ALTO
2008-06 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
10200000 20520 179.625 GFTSR year-eno transtertrom E ectdc Fund
10200000 20530 60.575 GFTSR y~ar-eno transfer from Gas Fund
60040002 39750 30.000 Fiber ODt~C license fee chargeo Dy Electdc Fund to Planning Dept. for traffic sig0als
10200000 40410 1,000,000 Transfer to Capital Project Fund to increase funding for Infrastructure Reserve
NetCh~fi-ges;Tb’Fro~):Re~es-:"~- - : ....-;~ : : -’ ~789 8~Y" :
10200000 38220 (1,030,000) Budget Stabilization Reserve
10200000 38310 240.200 TransferStabilizalion Reserve
80210001 40410 155,000 Transfer of development impact fee to Capital Project Fund for CIP PG-04010(Athletic Field Artificial Tut/& Lighting Upgrade)
80210001 38500 (!55~000) Chanqes in Development Impact Fee Fund Balance -Parks
50473011 15370 121,271 Revenue {rom State of CA-Prop 42 TCRF for PE-86070
50471011 13300 6,190 Development Impact Fees for PE-86070
80471002 15990 2,500 Revenue pr~eeds from insurance reimbuBement for AC.86017
47100000 20180 155,000 Transfer from Development Impact Fee Fund to fund for PG-04010 (Athletic Field
A~ificia] Tuff & Lighting Upgrade)80471002 20520 225,000 Transfer from El~tdc Fund for CIP PE-01021 (AIm~Homer Unde~rossing); finaladjustments
47100000 20520 535,550 Transfer from Electdc Fund (Public Benefits Program) for ClP PE-05001
(Photovolta~c Design)471~0000 20110 1,000,000 Transfer from General Fund to prov{de additional funding for Infrast~ctureResewe
50471003 38790 (18,816) Completed and closed projecls; balance relumed to resewe
50471005 38790 (68,263) Completed and closed proj~ls; balance returned to resewe5047100738790(23,618) Completed and closed projects; balance returned to resewe5047101038790(144,545) Completed and closed proj~ls; balance returned to resewe
50471020 38790 (71,964) Completed and closed proj~ts; balance relumed to resewe6047100138790(46,800) Cqmpleled and closed proj~ts; balance returned ~o rese~e
80471009 38790 (4,185) Completed and closed proj~ts; balance returned to resewe
60471005 38790 (25,000) Completed and closed proj~t~; balance relumed to resewe ¯50471011 38790 127,461 Additional appropriation to CIP PE-86070 (Street Mainlenance) funded by Slaterevenue and development impact fees80471002387902,500 Additional appropriation to ClP AC-86017 (A~ in Public Places) funded by
pr~eeds from insurance reimbu~ement
50471010 38790 225,000 Additional appropdalion for CIP PE-01021 (~m~Homer Unde~rossing); 6hal
adjustments5047101040520107,000 Transfer to Electdc Fund to reimbu~e costs relaled to CIP PE-01021 (AIm~Homer¯Unde~rossing Project); final adjustmenls5047101038790(107,000) To provide funding for the lransfer to El~dc Fund to re[mbu~e costs related Io
CIP PE-01021 (AIm~Homer Unde~rossing Proj~t); final adjustments
47100000 38490 2,093,741 Chan!aes in Infrastruclure Reserve
20020512 19750 30,000 Fiber optic license fee charged by Electdc Fund to Planning Dept. for traffic signals
20020402 20410 107,000 Transfer from Capital Project Fund to reimburse expenses pertaining to CIP PE-
01021 (Alma/Homer Undercrosslng); final adiustments
20020202 38790
20020402 38790
20020403 38790
20020611 38790
20020202 38790
20000020 40110
20000030 40110
20020402 40410
(240,510) Completed and closed projects; balance retumed to reserve
(3,031) Completed and closed projects; balance returned to reserve¯(97,608) Completed and closed projects; balance returned to reserve
(92,980) Portion of CIP project balance retumed to reserve
(2,377,226) Poriion of CIP project balance returned to resewe
89,813 GFTSR year-end transler to General Fund
89,812 GFTSR year-end transfer to General Fund
225,000 Transfer to Capilal Project Fund 1o CIP PE-01021 (Alma/Homer Undercrossing);
final adjustmenls2003020540410535,550 Transfer to Capital Proiect Fund for CIP PE-05001 (Photovoltaic Design)
20000020 38040 2,603,542 Rate Stabilization Reserve -Distribution2000003038170(89,812) Rate Stabilizatiqn Reserve - Supply200000803804030,000 Rate Stabilization Reserve-Fiber Optic2000002038160/535,550) Reserve for Public Benefits Program
Page t oi2
Exhibit A
CITY OF PALO ALTO
2005-06 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
20020802 38790 (17,573) Completed and closed projects; balance returned to reserve
20020802 38790 (200,000) Portion of CIP project balance returned to reserve
20000040 40110 30,288 GFTSR year-end transler to General Fund
20000050 40110 30,287 GFTSR year-end transfer to General Fund
20000040 38040 187,285 Rate Stabilization Rese~e -Distdbulon
20000050 38170 (30,287) Rate StablizaSon Resewe - Supply
20021202 38790 (54,973) Completed and closed projects; balance retumed to reserve
20021202 38790 (300,000) Portion of CIP project balance returned to reserve
20021201 38790 (100,000} Portion of ClP proiect balance returned to reserve
~,=~,~’~:::_~ ~ .:~:~ --~.~.~-,4~4~973)~- ~o~c;L-~.-,-,--~=,- L]~: c~-- - . ~---~,_ :,- *~-i
20000070 38040 454,973 Rate Stabilization Reserve
20021002 38790 (150,445) Completed and closed projects; balance returned to reserve
20021002 38790 (1,620) Portion of CIP project balance retumed to reserve
20000060 38040 152,065 Rate Stabilization Reserve
50050201 38790 (37,731) Completed and closed projects; balance returned to reserve
50050001 38040 37,731 Rate Stabilization ReserveNTERN_~SEFIyICE~FUNDS ~ ;~ ~,,
40070602 38790 1,350 Additional appropriation to TE-99010
40070602 38790 (1) Completed and closed projects; balance returned to reserve
40070001 38300 (1,349) Reserve for technology
50080401 38790 (18,171) Completed and closed projects; balance relumed to reserve
50080402 38790 (9,376) Completed and closed projects; balance returned to reserve
.I~ ~nah!~-~:~:._Y~ ~..: ~-~ ~i (27 547):! ¯~.~ ~[: _~:=: :: ~ :’: ~:~ ~.: ,:: ::=: ~’i .~ ~:_
50080001 38090 27,547 Retained Earnings
Page 2 of 2
Exhibit B
2005-06 REAPPROPRIATION REQUESTS
Total Requests
$ 115,000
$15o,ooo
$ 360,774
$ 625,774
Total Recommended
$11.5,000
$150,000
$ 360,774
$625,774
AMOUNT INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETINGIN 2005-06
City Manager’s Office
$50,000
STATUS
California Avenue
Streetscape Master Plan
This reappropriation is being requested because
this project is pending due to the timing of the
plan implementation. This project will assist in
the implementation of the California Avenue
Streetscape Master Plan.
Planning and Community Environment Department
$35,000 Zoning Ordinance
Update
Recommended $50,000. There is
[. sufficient balance in the 2005-06
Ibudget that can be reappropriated.
This reappropriation is being requested because
due to vacancies, in 2006-07, the department
will be forced to use the majority of its contract
budget to complete various aspects of its work
program that cannot be done in-house.
Reappropriating the Zoning Ordinance Update
budget will help staff complete that project
without asking the City Council for additional
funding.
Recommended $35,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
Public Works Department
$30,000 Thermoplastic Marking This reappropriation is being requested because
many areas in various parts of the city
identified for thermoplastic markings are
currently under construction with other Public
Works or Utilities projects. This project is
anticipated to be completed in the Fall of 2006.
Recommended $30,000. There is
sufficient balance in the 2005-06
budget that can be reappropriated.
Page 1 of 2
Public Works Department - Re, fitse Fund
$150,000 PASCO Solid This reappropriation is being requested because in
~Waste and
Recycling.
Agreement
the PASCO agreement if their gross revenue for the
preceding contract year is less than 15% of the
baseline revenue, the.City shall pay PASCO the
amount 6f the deficit between the actual recycling
revenue and the baseline revenue less than 15%.
This was the case in 2005-06 and.this reappropriated
amount would cover this expense in 2006-07.
Administrative Services - Technology Fund
Recommended $150,000. There
is sufficient balance in the 2005-06
budget that can be reappropriated.
TE-05001 $150,000 SAP Continuous
Improvement
This reappropriation is being requested
because the work was not completed this
year due to a reduction in Information
Technology staff resources. The :
attention to continuous improvement for.
SAP is necessary to improve the ability :
for end-user interaction.
Recommended $150,000. There is
sufficient balance in the 2005-06 budget
that can be reappropriated.
Public Works - Vehicle Replacement
VR-$210,774
01002
Fund
Automotive
Wash Facility at
the MSC
This reappropriation is being requested
even though the design for this project is
complete and ready for construction.
However, after extensive discussions
with MSC stakeholders during FY 2004-
05, it was decided to place this project
on hold until the completion of the MSC
Integrated Fueling Facility (currently
being bid for construction).
Simultaneous construction of both
projects wilt create an intolerable
situation in an already congested facility.
Since this project will address
environmental compliance concerns at
the existing wash facility, it is
imperative that it be completed as
planned.
Recommended $210,774. There is
sufficient balance in the 2005-06 budget
that can be reappropriated.
Page 2 of 2
Exhibit C
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2005-06
PO-00015"Fire Station Driveway Modification & Installation Oil/Water Separator
PF-03000*
PF-04011"
PF-04012"
PE-03005*
PE-04013
PE-95012
PE-93010
PE-00102*
PE-00106
PE-00108
PE-02018*
PL-02006*
PL-04002*
PG-94014"
Foothills Park Mechanical Construction
Junior Museum Fire Sprinkler Installation
Cubberley Building 1 Air Conditioning
Wildhorse Valley Bridge
Fire Stations 3 & 4 Feasibility Study
Civic Center Plaza Waterproofing
Embarcadero Pedestrian/Bike Bridge
Bay Trail Improvements
Eleanor/Hoover Park Improvements
Bayland~ Field - Lighting & Fencing
Heritage Park
San Antonio/101 Traffic Signal
South of Forest Avenue Street Improvements
Park Backflow Replacement & Irrigation
18,816
14,542
53,721
23,618
49,296
9,694
85,555
3,623
957
67,133
251
46,800
25,000
4,185
Total 403,191
EL-00006 Park BIvd Sub Bus
EL-01021 Natural Gas Generator
EL-02009 Baylands UG
EL-89030 Traffic Signal Upgrade
EL-89031 Communications Systems
195,510
15,000
30,000
3,031
97,608
GS-02001 GMR Project 12
GS-99012 GMR Phase 9
Total
Total
341,149
2,136
15,437
17,573
WC-01022 WWC System Master PI
WC-04015 New Vehicle Hydro Flusher
Total
14,80
40,164
54,973
WS-00004 WMR Phase 14
WS-01006 WMR Phase 15
WS-04001 WMR Phase 18
WQ-04012 Landfill Gas Incineration
RF-04011 Leachate System
RF-04012 Landfill Gas Rehab Project
TE-02025 Cable TV Broadcast Equipment
VR-05005 Fuel Tank Vapor Recovery Systems Upgrade
VR-95005"Wireless Vehicle Management System
VR-0300I*New Vehicles
VR-05002*Light-Duty Pickup Truck
Total
Total
Total
20,926
8,769
120,750
$150,445
37,651
80i
$37,731
1
14,844
3,327
28O
9,096
$27,548
Projects are closed. No expenditures were incurred in the current fiscal year.
EXHIBIT D
Revenues
Property Taxes
Sales Taxes
Utility Users Tax ,
Transient Occupancy Tax
Other Taxes, Fines & Penalties
Charges for Services
Permits & Licenses "
Charges to Other Funds
Rental Income
Other Revenues
Add: Operating Transfers In
Prior Year Encum & Reapprop
Expenditures
Administrative Departments
Community Services
Fire
Library
Planning
Police
Public Works
Non-Departmental/School Site
Add: Operating Trans Out
2005-06
Adopted
Budget
16,986
19,036
8,341
6,173
6,845
18,760
4,084
8,924
12,332
4,140
15,108
15,119
19,635
20,160
5,633
8,766
24,314
11,451
9,043
6,572
2005-06
Adjusted
Budget
18,242
20,020
8,522
6,173
7,830
18,836
3,505
9,453
12,261
7,125
15,158
3,569-
17,151
24,277
20,552
5,919
9,848
24,784
11,955
7,258
~852
2005-06
CAFR Basis
Rev/Exp
18,754
20,316
8,759
6,393
9,265
18,670
4,236
12,273
5,581
15,385
2005-06
Allocated
Charges
2005-06
Encum+
Reapprop
n!a
n/a
n/a
rda
n/a
rda
rda
9,703 n/a
rda
(22) vYa
n/a
3,569 n/a
2005-06
Budgetary
Rev/Exp
18,754
20,316
8,759
6,393
9,265
18,670
4,236
9,703
12,273
5,559
15,385
3,569
14,305 932 1,313 16,549
19,740 3,339 750 23,829
18,1!0 2,068 338 20,517
5,171 493 228 5,892
8,415 564 670 9,649
22,253 2,183 221 24,655
9,036 2,286 507 11,829
.10,091 10,091
7,977 7,977
2005-06
Variance
512
296
237
220
1,435
(166)
731
250
12
(1,566)
227
603
448
35
27
199
128
126
(2,8331
(1,125)
CAFR Reconciliation:Current year encumbrance/reappropriations
Prior ygar encumbrance/reappropr~ations
Current year stores adjustment
Prior year stores adjustment
CAFR Net Income
4,026
(3,569)
(14)
48
2,387
Page 1 of 1
Exhibit E
CAFR Fund Balance
Less: Encumbrances
Reappropriations
Balance Net From Balance
@ 06/30/05 Operations @ 06/30106
31,830 2,387 34,217
(3,401)(513)(3,914)
(266)151 (115)
Adjustment for Stores Operations (48)34 (14)
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
Notes Receivable Reserve
stores Inventory Reserve
Prepaid Reserve
Unrealized Investment Gain/Loss Reserve
Reserve For Equity Transfer Stablization
Reserve For Emergencies
21,066 1,665 22,731
0 0 0
1,234 (26)1,208
2,697 (158)2,539
0 305 305
0 0 0
3,165 240 3,405
0 0 0
(48)34 (14)
Adjustment for Stores Inventory Encumbrance l 0
Adiustment for Stores Operations 1 (14)
Page 1 of I
Exhibit F
2004-05
AcUEnc
Reapprop
REVENUE
Water sales 20,771
Bond Proceeds -
Other revenues 1,095
Bonded Reappro/Encum 5,007
Restricted Bond Proceeds -
Re~ppropriations / Eric 10,778
TOTAL REVENUE 37,651
EXPENSES
Purchases 6,719
Other Expenses 11,627
TOTAL OPERATING EXPENSES 18,346
Capital Expenses 20,191
TOTAL EXPENSES 38,537
TO/(FROM) RESERVES (886)
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
20,704 20,524
1,232 1,041
14,952 14,952
36,888 36,5t7
6,475 6,475
12,141 13,029
18,616 19,504
18,310 18,012
( 18O
(191
(371
36,926 37,5t6
(38)(999)
(888’
(888’
298
(590
(961]
REVENUE
2004-05
ActJEnc
Reapprop
Electric retail sales 71,666
Electric wholesale sales 3,156
Other revenues 20,082
Reappropriations /Enc 16,456
TOTAL REVENUE 111,360
EXPENSES
Purchases 41,010
NCPA & TANC Debt Svc 4,928
Other Expenses 53,199
TOTAL OPERATING EXPENSES 99,137
Capital Expenses 17,989
TOTAL EXPENSES 117,126
TO/(FROM) RESERVES " (5,7661
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
82,684 84,961 2,277
15,600 37~427 21,827
11,779 11,779
110,063 134,t67 24,t04
59,118 55,643 3,475
8,697 8,400 297
38,927 38,450 477
106,742 102,493 4,249
17,528 15,963 1,565
124,270 t18,456 5,814
(14,207)16,711 29,918
Page 1 of 4
Exhibit F
REVENUE
2004-05
AcUEnc
Reapprop
Gas retail sales 29,890
Gas wholesale sales
Other revenues 1,960
Bond Proceeds
Bonded Reappro/Encum 3,858
Restricted Bond Proceeds
Reappropriations /Enc 1,234
TOTAL REVENUE 36,942
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
TOTAL EXPENSES
TO/(FROM) RESERVES
18,916
14,354
33,270
9,349
42,6t9
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
39,826 36,433 (3,393’
1,309 731 (578~,
3,151 3,151
44,286 40,315 (3,971
25,573 2!,430 4,143
11,744 12,511 (767
37,317 33,941 3,376
7,594 7,511 83
44,911 41,452 3,469
(625)(1,137)(512)
2004-05
Ac~Enc
Reapprop
REVENUE
Revenues 12,468Reappropriations /Enc 10,324
TOTAL REVENUE 22,792
EXPENSES
Sewer Treatment Exp.5,906Operating Expenses 2,855
TOTAL OPERATING EXPENSES 8,761
Capital Expenses 11,748
Principal Payments 49
TOTAL EXPENSES 20,558
TO/(FROM) RESERVES 2,234
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
14,246 14,109 (137)~
7,967 7,967
22,213 22,076 (137)
6,588 6,365 223
3,345 4,187 (842)
9,93~}10,552 (619)
12,243 12,062 181
52 52 -
22,228 22,666 (438)
(15)(590)(575) i
Page 2 of 4
Exhibit F
2004-05
Act/Enc
Reapprop
REVENUE
Operating Revenues 16,963
Restricted Bond Proceeds 72
Reappropriations / Enc 5,091
Bonded Reappro/Encum 92
TOTAL REVENUE 22,218
EXPENSES
Operating Expenses 15,057
TOTAL OPERATING EXPENSES 15,057
Capital Expenses 9,498
Principal Payments 318
TOTAL EXPENSES 24,873
TOI(FROM) RESERVES (2,655)
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
26,228 19,470 (6,758
2 2 -
8,783 8,783 -
138 138
35,15t 28,393 (6,758
16,740 16,976 (236
16,740 16,976 (236)
17,108 17,187 (79)
321 321
34,169 34,484 (315)
982 (6,091)(7,073)
2004-05
AcUEnc
Reapprop
REVENUE
Revenues 23,978
Reappropriations /Enc 1,783
TOTAL REVENUE 25,761
EXPENSES
Payments to PASCO 7,943Other Expenses 19,657
TOTAL OPERATING EXPENSES 27,600
Capital Expenses 454
TOTAL EXPENSES 28,054
TO/(FROM) RESERVES (2,293)
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
26,697 25,159 (1,538)i
2,795 2,795
29,492 27,954 (1,538)
8,466 7,887 579
21,032 20,699 333
29,498 28,586 912
149 111 38
29,647 28,697 950
(155)(743)(588)
Page 3 of 4
Exhibit F
2004-05
AcUEnc
Reapprop
REVENUE
Revenues 2,957
Reappropriations / Enc 281
Bonded Reappro/Encum
Restricted Bond Proceeds
TOTAL REVENUE 3,238
EXPENSES
Operating Expenses 2,710
TOTAL OPERATING EXPENSES 2,710
Capital Expenses 229
Principal, Payments 305
TOTAL EXPENSES 3,244
TO/(FROM) RESERVES (6)
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
5,496 5,742 246
243 243 -
5,739 5,985 246
2,187 2,557 (370)
2,187 2,557 (370)
3,253 2,713 540
325 325
5,765 5,595 170
(26)390 416
2004-05
AcUEnc
Reapprop
REVENUE
Revenues 753
Reappropriations /Enc 1
TOTAL REVENUE 754
EXPENSES
Operating Expenses 726
TOTAL OPERATING EXPENSES 726
Capital Expenses -
TOTAL EXPENSES 726
TO/(FROM) RESERVES 28
2005-06 2005-06 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
1,181 847 (334)
t,181 847 (334
1,159 859
1,159 859
300
300
1,t59 859 300
22 (12)(34)
Page 4 of 4
Exhibit G
FISCAL YEAR 2005-06 Water Electric Gas WWC WWT Refuse Storm Ext Svc Total
Beginning Reserves $6,421 $136,227 $8,778 $5,512 $3,689 $4,432 $330 $30
To (From) Reserves (999)15,711 (1,137)(590)(6,091)(743)390 (12)
Adj Budgeted Reserves 3,672 139,073 7,102 4,869 3,689 4,432 330 30
% of Budgeted Reserves 148%109%108%101%-65%83%218%60%
FISCALYEAR 2005-06 Water Electric Gas WWC WWT Refuse ’ Storm Ext Svc
Rate Stabilization
General RSR
Supply RSR
Distribution RSR
Total RSR
Emergency Plant Replace
Calaveras
Underground Loan
Conservation Loan
Water Resources Board
Shasta rewind Loan
Central Valley Project
Public Benefit Program
External Service - IT
External Service - HR
$4,143 $4,293 ($4,597) $3,099 $720 $0
64,542 2,801
12,281 3,868
4,143 76,823 6,669 4,293 (4,597)3,099
1,279 2,567 972 629 2,195
73,163
693
(2,692)
1,384
590
720
18
FISCAL YEAR 2005-06 Water Electric Gas WWC WWT Refuse Storm
Beginning RSR $5,217 $57,718 $7,844 $4,917 $1,882 $3,842 $330
To(from) RSR (1,074)19,105 (1,175)(624)(6,479)(743)390
Ext Svc
$0
RSR Minimum 7,435 32,669 10,572 4,343 2,681 2,218 N/A
RSR Maximum 14,869 65,338 21,145 8,687 5,361 4,437 N/A
RSR % of Maximum 28%118%32%49%-86%70%N/A
N/A
N/A
N/A
$165,419
6,529
163,167
105%
Total
$7,658
67,343
16,149
91,150
7,642
73,163
693
590
(2,692)
1,384
18
Total
$81,750
9,400
59,918
119,837
76%
Page 1 of 1
City o.f Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
2005-05 Year-End Adjustments
UG District 39
UG district 40
Holy Oak/Christine
Embarcadero Rebuild
Utility Control Center
Substation Facility
Customer Information
UG District 38
Stanford Business Park
Fiber Optic Customer
GMR Project 14
EL-03005
EL-03014
EL-04005
EL-04007
EL-06003
EL-89044
EL-93057
EL-98004
EL-99003
EL-98002
996,681 Electric Fund Distribution RSR
24,859 Electric Fund Distribution RSR
66,354 Electric Fund Distribulion RSR
407,366 Electric Fund Distribulion RSR
100,000 Electric Fund Distribution RSR
30,160 Electric Fund Distribution RSR
200,000 Electric Fund Distribulion RSR
181,364 Electric Fund Distribution RSR
174,932 Electric Fund Distribution RSR
92,980 Electric Fund Distribulion RSR
2,274,696
GS-04003 200,000 Gas Fund Distribution RSR
0 200,000
WWC Sys Rehab!Project 15 WC’-02002
Sewer System Exlension WC-80020
300,000 WWC Fund RSR
100,000 WWC Fund RSR
0 400,000
Portion of project balance returned to reserve
Podion o! project balance returned to reserve
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Portion of project balance returned 1o reserve
Portion of project balance returned t.o reserve
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Portion o! project balance returned to reserve
Portion of project balance returned to reserve
Portion ol project balance returned to reserve
Portico of project balance returned to reserve
WMR Phase 17 WS-03004 1,620 Water Fund RSR
0 $1,620
Portion of project balance returned to reserve
Page 1 ol 1