HomeMy WebLinkAboutStaff Report 437-07City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:DECEMBER 11, 2007 CMR: 437:07
SUBJECT:RECOMMENDATION REGARDING ORDINANCE CLOSING
THE 2006-07 FISCAL YEAR, INCLUDING REAPPROPRIATION
REQUESTS, CLOSING COMPLETED CAPITAL IMPROVEMENT
PROJECTS, AUTHORIZING TRANSFERS TO RESERVES AND
APPROVAL OF COMPREHENSIVE ANNUAL FINANCIAL
REPORT (CAFR)
RECOMMENDATION
Staff recomlnends 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 2006-07 Budget; authorize re-appropriation of 2006-07 funds into
the 2007-08 Budget (Exhibits A & B); close completed capital improvement projects
(Exhibit C); and transfer remaining balances to the appropriate reserves (Exhibits D & E
for General Fund and Exhibits F & G for Enterprise Funds). In addition, staff
recommends the Finance Colnmittee review and forward to the City Council for its
approval the City’s Comprehensive Annual Financial Report (CAFR) (Attachment B).
BACKGROUND
The attactmaents to this report provide the necessary documents for closing the 2006-07 fiscal
year budgets and reauthorizing 2006-07 funds for the current fiscal year 2007-08. In addition,
they provide detailed information on the City’s financial activities for 2006-07. This report
highlights the key fiscal issues impacting the City of Palo Alto and identifies where the reader
can find more comprehensive explanations for these issues. The Management Discussion and
Analysis (MD&A) chapter of the CAFR (Attachment B) also 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: 437:07 Page 1 of 4
DISCUSSION
Overall, the following summarizes changes to the City’s reserves:
The General Fund BSR is 19.8 percent of budgeted expenditures. This percentage is
within the Council approved guidelines of 15 to 21 percent and shows a closing balance
of $27.5 million, an increase of $4.8 million from the prior year.
¯In 2006-07, the General Fund transferred an additional $3.0 million to the Capital Fund.
The Infrastructure Reserve has a final balance of $15.8 millionat the end of 2006-07.
¯The Reserve for Equity Transfer Stabilization met the Council goal of $3.4 million.
¯Budget transactions included in the attached ordinance decreased General Fund reserves
by $5.9 million (Exhibit A).
¯The City is preparing for implementation of Government Accounting Standards Board
(GASB) statement 45 in 2007-08. GASB 45 requires that the City recognize any
unfunded, earned retiree medical costs. The Retiree Health Benefits Internal Service
Fund was established to fmad retiree medical costs. As of June 30, 2007 the fund balance
was $30.7 million, an increase of $4.2 million from the prior year. This increase is
primarily due to a General Fund transfer of $2.9 million and $1.1 million in interest
earnings. The fund balance primarily consists of contributions from the General Fund of
$17.0 million and Enterprise Funds of $11.8 million.
Economy
In 2006-07, the local economy followed a path of slow but steady growth. Primarily due to an
increase in tectmo!ogy sales and exports, unemployment rates shrank and City revenues
continued to grow. The City expects to meet its budgeted revenue targets in 2007-08, although
recent events in the housing and credit markets could have an adverse effect on consumer
spending and economically sensitive revenues as the year progresses. The City anticipates
budget challenges in future expenses (e.g., rising healthcare costs) and in revenues (e.g.,
competition for sales tax dollars) and continues to take steps to prepare to meet those challenges.
(MD&A pp 3-4 Transmittal Letter p. vi)
Results bv Fund
General Fund
For 2006-07, the General Fund had a net gain of $5.2 million compared to a net gain of $2.4
million the prior year. Increases were primarily due to revenue increases in property taxes, sales
taxes, and the year-end adjustment to the carrying value of investments. At fiscal year-end, the
fund balance for the General Fund totaled $39.4 million. This was comprised of: $8.4 million
reserved for encumbrances, notes, prepaid expenses and inventory; $27.5 million for the Budget
Stabilization Reserve; $3.4 million for the Equity Transfer Stabilization Reseta, e; and $0.1 for re-
appropriations. (Exhibit E) (MD&A pp. 14-16).
Capital Projects Fund
For fiscal year 2006-07, the Capital Projects Fund reported $17.2 million in expenditures and
other uses, an increase of $3.3 million from prior year. This level of expenditures is consistent
with the City’s effort to rehabilitate and maintain its existing infrastructure. The Capital Projects
fund balance totaled $41.1 million, a decrease of $3.4 million. Included in the revenues received
by the Capital Projects Fund is an additional transfer of $3.0 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 (including interest earned on the IR balance) to the
CMR: 437:07 Page 2 of 4
Infrastructure Reserve. As of June 30, 2007, the IR balance was $15.8 million, a decrease of
$5.1 million from prior year. A number of completed and closed projects with remaining
balances at the end of fiscal year 2006-07 totaling $249,113 (Exhibit C) were returned to the
Infrastructure Reserve. This provided an additional source of revenues to the IR. (MD&A p. 16)
Enterprise Funds
The Rate Stabilization Rese~wes (RSRs) for the combined Enterprise Funds increased by a net
$4.5 million. Major changes include a $12.1 million increase in the Water Fund, primarily due to
a 7.0 percent rate increase, and a $5.7 million decrease from the Electric Fund. The decrease in
the Electric Fund is primarily due to a decrease of $16.6 million in surplus energy revenue,
weather conditions, and a planned drawdown of the RSR. The RSR for the Waste Water
Treatment Fund ended the year with a negative reserve balance of $8.0 million. The reserve has
been negatively impacted by the delay in construction for the reclaimed water pipeline project,
primarily due to construction bids coming in over budget. Once construction begins, grant and
partner revenues will be forthcoming and the reserve should return to a positive level. Exhibit G
provides the balance changes for all reserve categories for the Enterprise Funds. (MD&A p. 16)
At the end of fiscal year 2006-07, a number of Enterprise Fund CIP projects were completed and
closed (Exhibit C). The remaining balances of these projects reverted back to their respective
reserves. Likewise, there were also other Enterprise Fund CIP projects that, though still
outstanding and continuing, returned a portion of their project balance to the reserve because the
project managers deemed that the remaining balances were 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 2006-07 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 fmading 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.
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: 437:07 Page 3 of 4
PREPARED BY:
TRUDY EIKENBERRY
A c c ° untin2~~3e.r’~i c e s
LALO PEREZ
Assistant Director, Administrative Selwices
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CARL YE V rS
Director, A~ministrative Services
ILY HARRISOn
Assistant City Manager
ATTACHMENTS
Attachment A: Budget Closing Ordinance body text
Exhibit A - Detailed Changes to the Adjusted Budget
Exhibit B - 2006-07 Re-Appropriation Requests
Exhibit C - Capital Improvement Projects Closed in 2006-07
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 2006-07
Attachment B: CAFR
CMR: 437:07 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 2006-07
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 12, 2006 did adopt a budget for fiscal
year 2006-07; and
B. Fiscal year 2006-07 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
2006-07 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 2006-07 appropriations which on July i,
2006 were encumbered by properly executed, but uncompleted,
purchase orders or contracts.
Page 1 of 6
SECTION 3. The Council hereby approves adjustments to
the fiscal year 2006-07 budget for Fund Balancing Entries
as shown on attached Exhibit ~A".
SECTION 4. The Council hereby re-appropriates fiscal
year 2006-07 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 2007-08 budget.
SECTION 5. The fiscal year 2006-07 encumbered
balances for the departments and categories shown on
Exhibit ~D" shall be carried forward and re-appropriated to
those same departments and categories in the fiscal year
2007-08 budget.
SECTION 6. The
directed:
City Manager is authorized and
A. To close the fiscal year 2006-07 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 2006-07 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:
A reserve for encumbrances and re-
appropriations in the various funds,the
purpose of which is to carry forward into
the fiscal year 2007-08 budget and continue,
in effect, the unexpended balance of
appropriations for fiscal year 2006-07
departmental expenditures as shown in
Exhibits ~E" and ~F"; and
(2)Reserves for Advances to Other Funds, Stores
Inventory, and other reserves in accordance
with ordinance and policy guidelines as
Page 2 of 6
(3)
shown in Exhibit ~E"; and
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 Equity Transfer
Stabilization Reserve is hereby increased by the sum of
Fifty Nine Thousand Nine Hundred Thirty Dollars ($59,930)as
shown in Exhibit ~A", from the Stabilization Rate Reserves
of the Utilities Department Funds as follow:
Utilities Fund Amount
Electric Distribution $ 4,691
Electric Supply $ 38,250
Gas Distribution $ 4,089
Gas Supply $ 12,900
Total $ 59,930
The General Fund Equity Transfer Stabilization Reserve is
increased-by $59,930 to $3,465,000.
SECTION 8. The General Fund Budget Stabilization
Reserve Rate Stabilization Reserve is hereby decreased by
the sum of Five Million Nine Hundred Thousand Dollars
($5,900,000) as described in Exhibit ~A". This transaction
will change the balance in the General Fund Budget
Stabilization Reserve to $27,480,000.
SECTION 9. The Development Impact Fee Fund for Parks
Fund Balance is hereby increased by Twenty Nine Thousand
Page 3 of 6
Two Hundred Thirty One Dollars ($29,231) as described in
Exhibit ~A". This transaction will increase the Development
Impact Fee for Parks Fund Balance to $1,897,000.
SECTION I0. The Capital Project Fund Infrastructure
Reserve is hereby increased by Three Million Two Hundred
Sixty Three Thousand Nine Hundred Seventy Three Dollars
($3,263,973) as described in Exhibit "A". This transaction
will change the Capital Project Fund Infrastructure Reserve
to $15,815,000.
SECTION ii. 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
SECTION 12. The Electric Supply Rate Stabilization
Reserve is hereby increased by the sum of Five Hundred
Sixty Five Thousand Nine Hundred Sixteen Dollars
($565,916), as described in Exhibit ~A". This transaction
will change the balance in the Electric Supply Rate
Stabilization Reserve to $60,594,000.
SECTION 13.The Electric Distribution Rate
Stabilization Reserve is hereby increased by the sum of
Three Hundred Seventy Two Thousand Nine Hundred Seventy
Eight Dollars ($372,978) as described in Exhibit "A". This
transaction will change the Electric Distribution Rate
Stabilization Reserve to $10,517,000.
SECTION 14. The Gas Supply Rate Stabilization Reserve
is hereby decreased by the sum of Five Hundred Fifty Seven
Thousand Nine Hundred Dollars ($557,900) as described in
Exhibit "A". This transaction will change the Gas Supply
Rate Stabilization Reserve to $6,668,000.
SECTION 15. The Gas Distribution Rate Stabilization
Reserve is hereby increased by the sum of Forty Six
Thousand Eight Hundred Fifty One Dollars ($46,851) as
described in Exhibit ~A". This transaction will decrease
the Gas Distribution Rate Stabilization Reserve to
$1,738,000.
SECTION 16. The
Stabilization Reserve is
Thousand Seven Hundred
described in Exhibit ~A".
Wastewater Collection Rate
hereby decreased by Eleven
Seventy Dollars ($11,770) as
This transaction will change the
Page 4 of 6
Wastewater
$5,803,000.
Collection Rate Stabilization Reserve to
SECTION 17. The Water Rate Stabilization Reserve is
hereby increased by the sum of Nine Million Two Hundred
Five Thousand Two Hundred Ninety Nine Dollars ($9,205,299)
as described in Exhibit ~A". This transaction will increase
the Water Rate Stabilization Reserve to $16,276,000.
SECTION 18. The Printing and Mailing Fund is hereby
decreased by Twenty Six Thousand Two Hundred Dollars
($26,200) as described in Exhibit ~A".This transaction
will decrease the Printing and Mailing Fund Balance to
$373,000.
SECTION 19. The Retiree Health Benefit Fund Balance
is hereby increased by Two Million Nine Hundred Thousand
Dollars ($2,900,000) as described in Exhibit ~A". This
transaction will increase the Retiree Health Benefit Fund
Balance to $30,719,000.
SECTION 20. Upon completion of the independent
audit, detailed financial statements reflecting the changes
made by the Sections 7 through 19 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 21. As specified in Section 2.28.080(a) of
the Palo Alto Municipal Code, a two-thirds vote of the City
Council is required to adopt this ordinance.
SECTION 22. 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 23. As provided in Section 2.04.330 of the
Palo Alto Municipal Code, this ordinance shall become
effective upon adoption.
Page 5 of 6
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
APPROVED:
Mayor
City Manager
Director of Administrative Services
Page 6 of 6
Exhibit A
CITY OF PALO ALTO
2006-07 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
iGENERAL FUND
10200000 20520
10200000 20530
80020210 18990
iSource Changes
80020210
10200000
10200000
10200000
42,941 GFTSR year-end transfer fl’om Elecbic Fund
16,989 GFTSR year-end transfer from Gas Fund
4,112 Payment from Boy Scouts of Paid Atta to reimburse the cgy for plumbing
maintenance at the Children’s Theatre
64,042
33480 4,112 Inc~easeadd~ona]appropriaSonforexpensesre~atedtop}umbing. Reirnbursedby~
Boy Scouts of Peio A~to.
40410 1,0g0,000 Year-End T~’ansfer to Capltei Project Fund to increase lond~ng for infrastrucbJre
Reserve
40410 2,000,000 Ad~5onYear.EndTransfertaCapita]ProjectFundtoinc~easefund~nglor
infrastructure Reserve
40670 2,900,000 Year-EndTransfertoReSreeHealt~BenefitsFundlorA~,nualRei~reeContfibuOon
Use Changes 5,904,112
Net Changes To (From) Reserves f5.840,070)
10200000 38220 (5,9g0,000) Budget Stab~zatJon ReseP~e
10200000 38310 59,930 Transfer StabilizaSon Resen/e
;BPECL~.L REVENUE FUND - Development Impact Fees - Park Fund
80210001 20410
50urc;e Chan~es
Use Chanqes 0
iNet Chanqes To (’From) Reserves 29,231
~und Batancinq Entr~es
80210001 38500 29.231 Ch~nrJe in Fund Balance
CAP~AL PROJECT FUND
Tmneier to Development Impact Fee Fund - Parks to reimburse payment of property
tax for CIP PG-040t0 (Stanford/PaiD Alto Piay~g Fields). Proper~ tax exemption was
29,231 granted by the Santa Clara County
29,231
80471005
60471005
47100000
40180 29,231 Transfer to Development Impact Fee Fund -Pa~ks to reimburse payment of proper~
tax for CIP PG-O4010 (Stanfor~Pa]o/did Playing Fields). Property tax exempbon wa~granted by the Santa Clara County,
18990 28.231 Revenue from Santa C~ara County - ~e~nd for property tax paid for C]P PG-040t 0
(Stanford/Pa!D/~ito Playing ~elds).
20110 3,000,000
Year-End Transfer from Genera] Fund to provide f~nding for Inf:astructure Reserve
isoume Chan~es 3.055.462
5047101050471005
80471002
50471010
50471020
80471008
38790 58,050 Addi~onal approp~aSon for CIP PE-070101 (Libra~ Sen/ices Mode] Analysis)
38790 (14.478) Reduce ~ppropr~aSon for CIP PF_01003 (Bu;l~ing Systems Improvements) to ream
to the F~ends Of the L~brary unused pordon o1 donation
38790 (2,273) Return to reserve. To dose C~P AC-04010 (Cubberfey and Chgdten’s Theatre Stage
Floor Replacement)38790 (247,642) Return to reserve. To dose CIP PE-00018(SandniII Road B~dge Rei~o~t).
(Roth Bui]d~ng V~ngs) and PE-91001 (Tank lnves~gat~on and Removai)
38790 (128) Return to reserve, To dose CIP PE-00103(Lucy Evans Center Parking Lot
Improvement)
38780 930 Drawdown from reserve. To dose CIP OS-00003(Open Space ParkingImprovements)
j Use Chanqes (205,511 )
iNet Chanqes To (From) Reserves 3,263.973
iFtmd Balancloq Entries
47100000
ENTERPRISE FUNDS
38490 3,263,973 Changes in Infrastructure Reserve
iBource Changes 0
20000030 40110 38,250 GFTSR year-end tl-ansfer from Elecbic Fund
iUse Chat~K~es {938.894)
iNet Changes To (From) Reserves 938.894
Fund Balancinq Entries
20000030 38170 372,978 Rate StabitlzatJ~n Reserve - Supply
20000020 38040 565,916 Rate BtabgizaSon Rese~e - Dis~butJon
Page 1 of 2
Exhibit A
CiTY OF PALO ALTO
2006-07 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
~ource Changes
Use Chanqes
20020802 20510
20020802 20520
20020802 20540
25,000 Transfer from Water Fund to pay por~on of cost of CIP GS-07000 (Eiweil Court
Tenant improvement)
25,000 Transfer from Elect~c Fund ta pay po~on of cost of CIP GS-07000 (Eh~] Court
Tenant Improvement)
25,000 Transfer frorn Wastawater ColleCtiOn Fund to pay potion of cost of CiP GS*07000
(Eh,/ell Court Tenant Improvement)
20000050 40110
20000040 40110
Var~us 30010-39040
20020802 36790
20020802 36790
75.000
12.900 GFTSR year*end I~ansfer f~’om Gas Fund
4,089 GFTSR year*end transfer from Gas Fund
545,000 Year-end adjusSng entree to reflect actua~ transacSons
100,000 New CIP GS-07000 (E]we6 Court Tenant Improvements)
(75,940) To reduce fundie9 for CIP projects and return to reserve
586.049
Net Chanqes To (From) Reserves
,Fund Batancin~ Entries
20000050 38170 (557,900) Rate Stabilization ReseP.’e - Suppty
20000040 38040 46.85t Rate Stabi!~za0on Reserve - D~s~butien
Source Ch;~n~Jes
20000070 40530
20021202 38790
0
25,000Transfer to Gas Fund to pay share in CIP GS-07000 (Elwell Court Tenant
Improvements)
(13,230) To reduce f~ndlng for CIP projects and return to rese~’e
Use Chanqes 11.770
Net Chanqes To {From) Reserves (11.770)
Fund Balancin.q Entries
20000070 38040 (11,770) Rate Stabilization Reserve
Source Chan,~es
20000060
20021002
0
4~530 25.000 Transfer to Gas Fund to pay share in CIP GS-07000 (EIwe!l Court Tenant
improvements)
38790 (9230.298) To reduce funding for CIP projects and return to reserve
Use Chanqes {5.205288)
Net Chanqes TO (From) Reserves 8.205.299
Fund Batancinq Entries
20000060 38040 9.205,299 Role StabiI~zatien Reserve
Source Changes 0
Various 30010,39040 28,200 Yea~*end adjustieg en~es to reject actual transactions
Use Chanqes 26.200
Net Chanqes To (From) Rese~es ~26.200)
Fund Balancing} Entries
50080001 38090 ~26"200) Retained Earning.s
Use Chan,qes 2,900,000
Net Changes To (From) Reserves ~2,900,000~
Fund BalanclnR Entries
69400000 38090 (2,900.000) Retained Earnings
Page 2 of 2
Exhibit B
2006-07 REAPPROPRIATION REQUESTS
Total Requests
$ 70,000
$ 60,000
$ 475,544
$ 605,544
Total Recommended
$ 70,000
$ 60,000
$ 475,544
$ 605,544
$ I COMMENTS/REASONS
AMOUNTI INTENDED USE FOR NOT COMPLETING IN 2006-07 STATUS
CommuniO, Services Department
$70,0O0 Consultant Services-
Golf Course
This reappropriation is being requested for the
operational analysis of City Golf course
operations; which include market and facility
analysis, and recommendations and analysis of
alternative operating models. The contract is
currently undergoing the RFP process and the
contact will be awarded in Fiscal Year 2007-
08.
Recommended $70,000. There is
sufficient balance in the Fiscal Year
2006-07 budget that can be
reappropriated.
Public Works Department - Refuse Fund
$60,000 Design work - Byxbee This reappropriation is being requested for the
Park Gas Collection design costs associated with the Byxbee Park
system.Gas collection system. The funding will be
moved to CIP RF-09002 in Fiscal Year 2007-
08.
Recommended $60,000. There is
sufficient balance in the Fiscal Year
2006-07 budget that can be
reappropriated.
Page 1 of 3
Public Works Department
PE-06007 $100,000 Park Restroom
Installation.
This reappropriation is being requested
because the approval for the concept was
granted by the Policy and Services
committee in Fiscal Year 2006-07.
Fiscal Year 2007-08 will be the first
year for installations
Recommended $100,000. There is
sufficient balance in the Fiscal Year 2006-
07 budget that can be reappropriated.
Planning Department
PL-06001 $50,000 Adobe Creek
Bicycle Bridge
This reappropriation is being requested
to fund Palo Alto’s local match share for
the replacement cost of the Terman
bicycle bridge over Adobe Creek
between Palo Alto and Los Altos. The
bridge is jointly owned by the cities of
Palo Alto and Los Altos. A BEP grant
will fund 80% of the project with Palo
Alto and Los Altos contributing 10%
each. The City of Los Altos is the lead
agency on this project and has had some
delay in obtaining the grant in Fiscal
Year 2006/07. The grant has been
approved and the design phase will
commence in Fiscal Year 2007/08.
Recommended $50,000. There is sufficient
balance in the Fiscal Year 2006-07 budget
that can be reappropriated.
Public Works - Vehicle Replacement
VR- $31,394
01002
Fund
Automotive
Wash Facility at
the MSC
This reappropriation is to provide funds
for construction in Fiscal Year 2007-08.
Construction has been on hold during
the construction of the new MSC fueling
station. The fueling station construction
will be completed in Fiscal Year 2007-
08 allowing for construction of the
washing facility to follow.
Recommended $31,394. There is sufficient
balance in the Fiscal Year 2006-07 budget
that can be reappropriated.
Public Works- Vehicle Replacement
VR-$94,150 Replace fueling
92006 facility at
Foothills Park
Maintenance
Yard
Fund
This reappropriation is to provide funds
for construction in Fiscal Year 2007-08.
Construction has been delayed while a
contract is issued for project design.
Recommended $94,150. There is sufficient
balance in the Fiscal Year 2006-07 budget
that can be reappropriated.
Page 2 of 3
Public Works - Vehicle Replacement Fund
VR-
06801
$200,000 Replace
Citywide fuel
management and
tank inventory
system
This reappropriation is to provide funds
for construction in Fiscal Year 2007-08.
Construction has been delayed during
the construction of the new MSC fueling
facility.
Recommended $200,000. There is
sufficient balance in the Fiscal Year 2006-
07 budget that can be reappropriated.
Page 3 of 3
Exhibit C
Ciz)’ of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2006-07
*PROJECT
)ROJECT NUMBER PROJECT TITLE !BALANCE
General Fund
AC-04010 Cubberley and Children’s Theatre Stage Floor Replacement 2,273
PE-00018 Sand Hill Road Bddge S. Retrofit 44,689
PE-03004 Roth Building Wings 57,400
PE-91001 Tank Investigation and Removal 145,553
PE-00103 Lucy Evans Center Parking Lot Improvement 128
OS-00003 Open Space Parking Improvements (930)
Total 249,113
Electric Fund ~
EL-03014 UG District 40 9,985
EL-04005 Holy Oak/Christine 77,330
EL-04013 Foothills Communication 101,500
EL-05022 Louis East Charleston 343,526
EL-06004 Local Generation Feasibility 411,228
EL-89030 Traffic Signals Upgrade 1,888
EL-98004 UG District 38 799
EL-99003 Stanford Business Park 3,180
EL-99016 Fiber to the Home 18.537
Total 967,973
Gas Fund
GS-05001 Vans for SCADA Technician 75,940
Total 75,940
~Nater Fund
WS-01008 Foothills PRV Installation 64,119
!WS-02006 El Camino Park Well 161,423
WS-03004 WMR Project 17 202
WS-04004 Mayfield Pump Station 1,748,339
WS-04016 New Vehicles 81,526
Total $2,055,609
Balance to return to reserve.
Page 1 of 1
EXHIBIT D
Revenues
Property Taxes
Sales Taxes
Utilib’ Users Tax
Transient Occupancy Tax
iOther Taxes, Fines & Penalties
Charges for Sen’ices
Permits & Licenses
!Charges to Other Funds
iRenta! Income
IOther Revenues
Add: Operating Transfers In
Prior Year Encum & Reapprop
Expenditures
Administrative Departments
Community Sen, ices
Fire
Librao,
Planning
Police
Public Works
Non-Departmental!School Site
Add: Operating Trans Out
2006-07
Adopted
Budget
20,368
21,133
9,151
6,400
7,438
19,053
4,218
9,084
12,951
3,421
15,781
15,758
19,881
22,201
5,800
8,762
25,686
12,4!2
9,770
7,439
2006-07
Adjusted
Budget
21,084
21,283
9,025
6,743
7,757
19,062
4,487
9,084
12,951
3,78t
15,781
4,026
17,796
21,033
21,892
6,206
9,858
26,125
13,160
8,311
7,83 !
2006-07
CAFR Basis
Rev/Exp
2006-07
Allocated
Charges
2006-07
Encum+
Reapprop
21,489 n/a
22,195 n/a
9,356 n/a
6,708 rda
8,734 n/a
19,750 nia
4,573 n/a
10,277 n/a
13,105 rda
5,797 92 n/a
15,644 n!a
4,026 n/a
2006-07
Budgetary
Rev/Exp
21,489
22,195
9,356
6,708
8,734
19,750
4,573
10,277
13,105
5,889
15,644
4,026
14,400 1,519 1,198 17,116
16,534 3,603 742 20,879
19,167 2,376 325 21,868
5,263 589 307 6,158
8,637 728 379 9,744
23,248 2,655 176 26,077
9,800 2,631 432 12,863
8,498 8,497
12,80!12,801
2006-07
Variance
405
912
331
(35
977
688
86
1,193
154
2,108
(137)
681
154
24
48
ll4
47
297
(186)
(4,971)
CAFR Reconciliation:Current year encumbrance/reappropriations
Prior year encumbrance/reappropriations
Current year stores adjustment
Prior year stores adjustment
CAFR Net Income
3,558
(4,026)
(98)
14
5,191
Page 1 of 1
Exhibit E
Balance Net From Balance
CAFR Fund Balance ,34,217 5,191 39,408
Less: Encumbrances (3,914)524 (3,390)
Reappropriations (115)44 (71)
Adjustment for Stores Operations i (14)(84)(98)
Budgeta~ Fund Balance 30i174 35~849
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
Notes Receivable Reserve
Stores Inventory Reserve
Prepaid Reserve
Unrealized Investment Gain/Loss Reserve
Reserve For Equity Transfer Stablization
Reserve For Emergencies
Adjustment for Stores Operations
22,731 4,749 27,480
0 0 0
1,208 (26)1,182
2,539 28 2,567
305 948 1,253
0 0 0
3,405 60 3,465
0 0 0
(14)(84)(98)
Adjustment for Stores Inventory Encumbrance 0
Adjustment for Stores Operations (98)
Page 1 of 1
Exhibit F
REVENUE
2005-06
Ac~Enc
Reapprop
Water sales 20,524
Bond Proceeds -
Other revenues 1,041
Bonded Reappro/Encum
Restricted Bond Proceeds
Reappropriations / Enc 14,952
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
22,307 23,044 737
3,048 3,227 179
13,044 13,044
EXPENSES
Purchases 6,475
Other Expenses 13,029
TOTAL OPERATING EXPENSES 19,504
Capital Expenses 18,012
7,806 7,806
10,810 10,736 74
18,616 18,542 74
17,583 8,565 9,018
REVENUE
2005-06
AcUEnc
Reapprop
Electric retail sales 84,961
Electric wholesale sales
Other revenues 37,427
Reappropriations /Enc 11,779
EXPENSES
Purchases 55,643
NCPA & TANC Debt Svc 8,400
Other Expenses 38,450
TOTAL OPERATING EXPENSES 102,493
Capital Expenses 15,963
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavon)
85,257 85,417 160
19,245 25,584 6,339
9,328 9,328
62,926 62,478 448
8,862 8,443 419
38,695 35,111 3,584
110,483 106,032 4,451
18,882 18,730 152
Page 1 of 4
Exhibit F
REVENUE
2005-06
Act/Eric
ReapproL
Gas retail sales 36,433
Gas wholesale sales
Other revenues 731
Bond Proceeds
Bonded Reappro/Encum
Restricted Bond Proceeds
Reappropriations / Enc 3,151
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget ActuallEnc (Unfavor,}
40,797 41,457 660
956 1,490 534
4,620 4,620
46;373 47,567 1;194
21,430 23,155
12,511 13,246
33,941 36,401
7,511 10,369
22,250 905
12,704 542
34,954 1,447
10,838 (469)
2005°06
AcUEnc
Reapprop
REVENUE
Revenues 14,109
Reappropriations /Enc 7,967
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget ActuallEnc (Unfavor.)
15,300 15,726 426
9,587 9,587
EXPENSES
Sewer Treatment Exp.6,365
Operating Expenses 4,187
TOTAL OPERATING EXPENSES 10,552
Capital Expenses 12,062
Principal Payments 52
6,917 6,142 775
4,038 3,781 257
10,955 9,923 1,032
13,642 13,789 (147)
54 54
Page 2 of 4
Exhibit F
2005-06 2006-07 2006-07
AcUEnc Adjusted Reapprop
Reapprop Budget Actual/Enc
REVENUE
Operating Revenues 19,470
Restricted Bond Proceeds 2
Reappropriations / Enc 8,783
Bonded Reappro/Encum 138
EXPENSES
Operating Expenses 16,976
TOTAL OPERATING EXPENSES 16,976
Capital Expenses 17,187
Principal Payments 321
TO ( SE VE
$ Variance
Favorable
(Unfavor,}
29,358 17,717
21 21
15,912 15,912
64 64
(11,641
18,013 16,406 1,607
18,013 16,406 1,607
24,185 24,578 (393)
341 341
~0;42h
2005-06
AcUEnc
Reapprop
REVENUE
Revenues 25,159
Reappropriations / Enc 2,795
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
26,613 26,340 (273)
998 998
EXPENSES
Payments to PASCO 7,887
Other Expenses 20,699
TOTAL OPERATING EXPENSES 28,586
Capital Expenses 111
!TO
8,798 7,825 973
18,958 18,198 760
27,756 26,023 1,733
Page3of4
Exhibit F
REVENUE
2005-06 2006-07 2006-07 $ Variance
ActJEnc Adjusted Reapprop Favorable
Reapprop__p__Budget Actual/Enc (Unfavor.)
Revenues 5,742
Reappropriations / Enc 243
Bonded Reappro/Encum
Restricted Bond Proceeds
EXPENSES
Operating Expenses 2,557
TOTAL OPERATING EXPENSES 2,557
Capital Expenses 2,713
Principal Payments 325
6,312 5,346 (966’,
2,379 2,379
2,236 2,118 118
2,236 2,t18 118
4,323 3,801 522
340 340
REVENUE
Revenues
Reappropriations / Enc
2005~6
AcUEnc
___Reapprop
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
847 1,162 792 (370)
EXPENSES
Operating Expenses 859
TOTAL OPERATING EXPENSES 859
Capital Expenses
,~o~(~
1,145 806 339
1,145 806 339
Page 4 of 4
Exhibit H
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
2006-07 Year-End Adjnstments
PROJECT
I COMMENTS
Capital Project Fund
Ubrary Services Model PE-07011
Building Systems Improvement PF-01003
58.080 Infrastructure Reserve
(14,478) Friends of the Ubrary
Additional appropriation; $200,000 was returned to reserve
in midyear of FY 2006-07
Retum to Friends of the Library unused portion of donations
Electric Fund
Traffic Signals EL-01017
UG District 39 EL-03005
Welch Road Underground EL-04006
Embarcadero Rebuild EL-04007
Automated Meter Reading EL-04014
E~ Camino Underground EL-05000
Stanford Business Park EL-05020
Ross/E, Meadow 4/12 K EL-05021
Electric Customer Connections EL-89028
Electric System Improvemen~EL-98003
Utility Print Design EL-99005
Gas Fund
Elwell Court Tenant Improvements
WWC Fund
WWC System Rehabilitation
Water Fund
GS-07000
WC-91073
Reserve Reservoir WS*01010
Distribution System Water Quality WS-01011
Booster Station Improvements W S,.01012
Reservoir Pump Station WS-01014
Existing Well Rehabilitation WS-02004
E1 Camino Park Reservoir WS-02005
Middletield Road Well WS-02007
Eleanor Pardee Park WS-02008
Two New Vehicles WS*05000
(152,581) Electric Fund Distribution RSR
(282,000) Electric Fund Distribution RSR
(!37,729) Electric Fund DistributiOn RSR
(21,924) Electric Fund Distribution RSR
(34,653) Electric Fund Distribution RSR
(50,000) Electric Fund Distribution RSR
(50,000} Electric Fund Distribution RSR
32,000 Electdc Fund Distribution RSR
529,653 Electric Fund Distribution RSR
323,526 Electric Fund Distribution RSR
(195,164) Electric Fund Distribution RSR
0 !38,872)
100,000Electric!GasNVater and WWC Fund
Distribution RSR
100,000
(13,230) WWC Fund RSR
03,230)
(72,173) Water Fund RSR
(4,420) Water Fund RSR
(1,293) Water Fund RSR
(1,790,468) Water Fund RSR
(3,015,946) Water Fund RSR
(583,068) Water Fund RSR
(813,337) Water Fund RSR
(867,018) Water Fund RSR
(26,967) Water Fund RSR
0 (7,174,690)
Portion of project balance returned to reserve
Portion of project balance retumed 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 to reserve
Portion of project balance returned to reserve
Additional funding by intedund transfer between projects
Additional funding by inledund transfer between projects
Additional funding by interfund transler between projects
Portion ol project balance retumed to reserve
New CIP Project for Elwell Court tenant improvements
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Portion of project balance retumed to reserve
Portion of project balance returned to reserve
Portion of project balance resumed 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 to reserve
Portion of project balance retumed to reserve
Page 1 of 1