HomeMy WebLinkAboutStaff Report 105-08City
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
4
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JANUARY "~ 2008 CMR: 105:08
SUBJECT:FINANCE COMMITTEE RECOMMENDATION TO ADOPT AN
ORDINANCE AUTHORIZING THE CLOSING OF THE BUDGET FOR
THE 2006-07 FISCAL 5(-EAR AND APPROVAL OF COMPREHENSIVE
AN~’UAL FINANCIAL REPORT (CAFR) FROM FINANCE COMMITTEE
MEETING OF DECEMBER 11, 2007
REC OM_;~ENDATION
Based on a 4-0 vote at Finance C~livnittee meetin~ Of December l il 2007; th~ Finance C0mmiv~e}.
recommends that Council adopt the attached ordinance and associated Exhibits to: close the
2006-07 Budget and authorize re-appropriation of 2006-07 funds into the 2007-08 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 B~ .............-,..,-.--~ ’...~-
-.--TR-VDY EIKENBERRY --~
Accounting Manager
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
ATTACHMENTS
Attachment 1’ CMR 437.07
CMR:105:08 Page 1 of 1
City 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 AN~
APPROVAL OF COMPREHENSIVE ANNUAL FINANCIAL
REPORT (CAFR)
RECOMMENDATION
Staff recommends that the Finance Cowmaittee 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 Committee review and forward to the CibT Council for its
approval the City’s Comprehensive Annual Financial Report (CAFR) (Attachment B).
BACKGROUND
The attachments 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 CiD~’s cmxent fiscal health. It includes financial statements,
performmace 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 surm~arizes 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 fund 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 technology 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 by 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 caro.,ing 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 Reserve; and $0.1 for re-
appropriations. (Exhibit E) @/ID&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 Reserves (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 respectiYe
reselwes. 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 (Attactvnent 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 cunent fiscal year (E ~xhibit B). In addition,
by closing completed capital improvement projects, balances (Exhibit C) are returned to ~he
original funding source for futm-e 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 respectiYe reserve balance.
Exhibit E reflects the changes to and status of major reserYes.
POLICY IMPLICATIONS
This reconmaendation 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 ----3
Assistant Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
CITY M,QNAGER APPROVAL:
c, ,L YE ., S
Director, A~ministrative Services
~’MILY HARRIS ON
Assistant City Manager
ATTACHMENTS
ArtacN~ent 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 Surmnary
Exhibit E - General Fund Reserve Summary
Exhibit F - Enterprise Summaries
Exhibit G - Enterprise Reserve Summary
Exhibit H - Capital Improvement Projects Adjustments in 2006-07
Attaclament B: CAFR
CMR: 437:07 Page 4 of 4
Attachment A
ORD iNg!qCE NO.
ORD!N~CE OF THE CO~CiL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YE~ 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
Pa!o 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 I of 6
SECTION 3. The Council hereby approves adjustments to
the fisca! 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 fisca! 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 City Manager
directed:
is authorized and
A. To close the fiscal year 2006-07 budget accounts in
al! funds and departments and, as required by the Charter
of the City of Pa!o Alto, to make such interdepartmenta!
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
"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 forwardinto
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 Genera! 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 fol!ow:
Utilities Fund Amount
Electric Distribution $ 4,691
Electric Supply $ 38,250
Gas Distribution $ 4,089
Gas Supply $ 12,900
Total $ 59,930
The Genera! 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 wil! 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
wil! 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
These changes have impact on the reserve balances and these
impacts are included in Exhibit ~A".
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 wil! decrease
the Gas Distribution Rate Stabilization Reserve to
$1,738,000.
SECTION 16. The
Stabilization Reserve is
Thousand Seven Hundred
described in Exhibit ~’~"~
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 wil! 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 financia! statements reflecting the changes
made by the Sections 7 through 19 of this ordinance 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.
SECTION 21. As specified in Section 2.28.080(a) of
the Pa!o 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 shal! become
effective upon adoption.
Page 5 of 6
INTRODUCED ~D PASSED:
AYES:
NOES:
~STENTIONS:
9~SENT:
ATTEST:
City Clerk
APPROVED AS TO FO~J:
City Attorney
APPROVED:
Mayor
City Manager
Director of Administrative Services
Page 6 of 6
Exhibit A
CITT OF PALO ALTO
2006-07 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
GENERAL FUND
Source Chanaes
10200000
10200000
90020210
80020210
10200000
10200000
10200000
Use Changes 5,c~04.112
Net Changes To {From1 Reserves (5.840.070)
80471005
80471005
47100000
Source Chan~es 0,058.462
50471010 38790
50471005 38790
50471002 38790
50471010 387~0
50471020 39790
80471009 38790
Use Chanqes {205,511}
Net Chanqes To (From) Reserves 32~3.~73
Fund Eat;~.m=inq Entries
Use Ch~.~qes 1.=3~.894)
Net ChanRes "[o (From) Reserves 938,89~
Fund Balar, cinrJ Entries
20000030 38170 372,978 Rate S1~bi~za~0n R~e~e - Supply
20000020 3B~0 565,916 Rate Stabigza~on Rese~e * Dis~bu~on
Exhibit A
CITY OF PALO ALTO
2006-07 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
20020802 20510
20020802 20520
20020802 20540
Source Chan~es
Use Chanaes
20000050 40110
20000040 40110
Vat,us
20020802 38790
20020802 38790
Fund BalanciDq Entries
36170
38040
Net Chan~es TO {From) Reserves 9.208.288
8ource Ch~ges o
Var=ous 30010-3-~O40 28,200 Year-en~ adjusSng en~es to reflect actualt~ansac’Jons
Use Chanqes 28.200
~et Chanqes To (From) Reserves , ¢28.200/
~lse Chan.qes,2.g00.000
Net Chanqes To (From) Reserves {2.900.000~
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
$COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN 2006-07 STATUS
Commt~.nity Setwices Department
$70,000 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 S60,000. There is
sufficient balance in the Fiscal Year
2006-07 budget that can be
reappropriated.
Page 1 of 3
Public t~orks Department
PE-06007 $100,000 Park Rest-room
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
bet~,een Palo Alto and Los Altos. The
bridge is jointly o~naed 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 t¥orks- 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 I]torks - Vehicle Replacement Fund
$94,150VR-
92006
Replace fueling
facility at
Foothills Park
Maintenance
Yard
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 t¥orks - 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
faciliD,.
Recommended $200,000. There is
sufficient balance in the Fiscal Year 2006-
07 budget that can be reappropriated.
Pa.e ~ of 3
Exhibit C
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2006-07
!"PROJECT
PROJECT NUMBER i PROJECT TITLE BALANCE
General Fund i
AC-04010 Cubberley and Children’s Theatre Stage Floor Replacement 2,273
PE-00018 Sand Hill Road Bridge S. Retrofit 44,689
PE-03004 Roth Building W~ngs 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
~ Fund
GS-05001 Vans for SCADA Technician 75.94~
Total 75,940
Water Fund
WS-01008 Foothills PRV Installation 64,119
WS-02006 Et Camino Park Well 161,423
WS-03004 \t’,/MR Project 17 202
WS-04004 Mayfietd Pump Station 1,748,339
iWS-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
Utility Users Tax
Transient Occupancy Tax
Other Taxes, Fines & Penalties
Charges for Services
%rmits & Licenses
Charges to Other Funds
Renta! Income
Other Revenues
Add: Operating Transfers In
Prior Year Encum & Reapprop
Expenditures
Administrative Departments
Community Sen, ices
Fire
LibraD,
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
12,412
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
3,781
15,781
4,026
17,796
21,033
21,892
6,206
9,858
26,125
13,160
8,311
7,831
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 n/a
4,573 n!a
10,277 n/a
13,105 n/a
5,797 92 rda
t5,644 n!a
4,026 n!a
14,400 1,519 1,198
16,534 3,603 742
19,167 2,376 325
5,263 589 307
8,637 728 379
23,248 2,655 176
9,800 2,631 432
8,498
12,801
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
17,116
20,879
21,868
6,158
9,744
26,077
12,863
8,497
12,801
2006-07
Variance
405
912
331
(35~
977
688
86
1,193
154
2,108
(1371
681
154
24
48
114
47
297
(186)
(4,971)
CAFR Reconciliation:Current year encumbrance/reappropriations
Prior year encumbrance/reappropriations
Current 5’ear stores adjustment
Prior year stores adjustment
CAFR Net Income
3,558
(4,026)
(98)
14
5,191
Paoe 1 of 1
Exhibit E
CAFR Fund Balance
Less: Encumbrances
Rea ppropriations
Adjustment for Stores Operations
34,217 5,191 39,408
(3,914)524 (3,390)
(115)44 (71)
(14)(84)(98
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
qotes 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 i 0
Adjustment for Stores Operations i (98)
Total Adjustments : :
Page 1 of 1
Exhibit F
REVENUE
2005-06 2006-07 2006-07 $ Variance
AcUEnc Adjusted Reapprop Favorable
Reapprop Budget ActuailEnc (Unfavor.)
Water sales 20,524
Bond Proceeds
Other revenues 1,041
Bonded Reappro;Encum
Restricted Bond Proceeds
Reappropriations / Enc 14,952
22,307 23,044 737
3,048 3.227 179
13,044 13,044
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
6,475
13,029
19,504
18,012
7,806 7,806
10,810 10,736 74
18,616 18,542 74
17,583 8,568 9,018
REVENUE
2005-06
AcgEnc
Reapprop
Electric retail sales 84,961
Electric wholesale sales
Other revenues 37,427
Reappropriations / Enc 11,779
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget ActuallEnc (Unfavor.)
85,257 85,417 160
19,245 25,584 6,339
9,328 9,328
EXPENSES
Purchases 55,643
NCPA & TANC Debt Svc 8,400
Other Expenses 38,450
TOTAL OPERATING EXPENSES 102,493
Capital Expenses 15,963
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 I 2006-07 2006-07 $ Variance
AcUEnc
1
Adjusted Reapprop Favorable
Reapprop Budget ActuallEnc (Unfavor.)
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 21,430
Other Expenses 12,511
TOTAL OPERATING EXPENSES 33,941
Capital Expenses 7,511
40,797 4t,457 660
956 1,490 534
4,620 4,620
23,155 22,250 905
13,246 12,704 542
36,401 34,954 1,447
10,369 10,838 (469)
2005-06 2006-0"7 2006-07 $ Variance
Ae*JEne Adjusted Reapprop Favorable
Reapprop Budget Actual/Eric (Unfavor.)
REVENUE
Revenues 14,109
Reappropriations / Enc 7,967
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
REVENUE
2005-06
AcUEnc
Reapprop
Operating Revenues 19,470
Restricted Bond Proceeds 2
Reappropriations /Enc 8,783
Bonded Reappro/Encum 138
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
29,358 17,717
21 21
15,9!2 15,912
64 64
(11,641)
EXPENSES
Operating Expenses 16,976
TOTAL OPERATING EXPENSES 16,976
Capital Expenses 17,187
Principal Payments 321
18,013 16,406 1,607
I8,013 16,406 1,607
24,185 24,578 (393)
341 341
REVENUE
Revenues
Reappropriations / Eric
2005-06
Ac#Enc
Reapprop
25,159
2,795
EXPENSES
Payments to PASCO 7,887
Other Expenses 20,699
TOTAL OPERATING EXPENSES 28,586
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
26,613 26,340 (273)
998 998
8,798 7;825 973
18,958 18,198 760
27,756 26,023 1,733
Page 3 of 4
Exhibit F
REVENUE
2005-06 2006-07 2006-07 $ Variance
AcUEnc Adjusted Reapprop Favorable
Reapprop Budget ActuallEnc (Unfavor.)
Revenues 5,742
Reappropriations ! Eric 243
Bonded Reappro/Encum
Restricted Bond Proceeds
6,312 5,346 (966)
2,379 2,379
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
2,557 2,236
2,557 2,236
2,713 4,323
325 340
2,118 118
2,118 118
3,801 522
340
REVENUE
Revenues
Reappropriations /Enc
2005-06
AcdEnc
Reapprop
2006-07 2006-07 $ Variance
Adjusted Reapprop Favorable
Budget ActuallEnc (Unfavor.)
847 1,162 792 (370)
EXPENSES
Operating Expenses 859
TOTAL OPERATING EXPENSES 859
Capital Expenses
1,145 806 339
1,145 806 339
Page 4 of 4
Exhibit G
FISCAL YEAR 2006-07 Water Electric Gas WWC WWT Refuse Storm Ext Svc Total
Beginning Reserves $5,422 $151,938 $7,641 $4,922 ($2,402)$3,689 $720 $18
To (From) Reserves !2,208 (4,433)1,775 1,547 (7,611)1,315 1,466 (14)
Adj Budgeted Reserves 5,378 152,411 8,243 4,917 8,490 3,690 645 18
% of Budgeted Reserves 328%97%114%132%-1!8%136%339%22%
FISCAL YEAR 2006-07 Water Electric Gas WWC WWT Refuse Storm Ext Svc
Rate Stabilization
General RSR
Supply RSR
Distribution RSR
Totat 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
$16,276 $5,803 ($!2,596)$4,414 $2,186 $0
60,594 6,668
10,517 1,738
!6,276 71,111 8,406 5,803 (12,596)4,414 2,186
1,354 2,625 !,010 666 2,583
71,810
698
(116)
1,377
59O
$171,948
6,253
183,774
97%
Total
$16,083
67,262
12,255
95,600
8,238
71,810
698
59O
(116)
1,377
F~SCAL YEAR 2006-07
Beginning RSR
To(from) RSR
RSR Minimum
RSR Maximum
RSR % of Maximum
Water Electric Gas WWC WWT Refuse Storm Ext Svc
$4,143 $76,823 $6,669 $4,293 ($4,597)$3,099 $720 $0
12,133 (5,712)1,737 1,510 (7,999)1,315 1,466 4
7,108 33,900 13,145 4,415 2,815 2,218 N/A N/A
14,215 67,799 26,289 8,830 5,629 4,437 N/A N!A
114%105%32%66%-224%99%N/A N/A
Total
$91,150
4,454
63,601
127,199!
75%
Page 1 of 1
Exhibit H
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
2006-07 Year-End Adjasfments
PROJECT TITLE NUMBERPROJECT IREVENUEI EXPENSE [FUNDING SOURCE COMMENTS
Capital Project Fund
Library Services Model
Building Systems Improvement
PE-07011 58,080 Intrastructure Reserve
PF-01003 (14,478) Friends of the Library
Additional appropriation; $203,000 ’,’.’as returned to resen.,e
midyear of FY 2005-07
Return to Friends Of the Ubra~ unused portion of donations
Electric Fund
Traffic Signals EL-01017
UG Districl 39 EL-03005
Welch Road Underground EL-04005
Embarcadero Rebui!d EL-04007
Automated Meter Reading EL-04.01,4
El CamJno Underground EL-050.00
Stanford Business Park EL-05020
Ross!E. Meadow 4/12 K EL-05021
E~ectfic Customer Connections EL-59028
Electdc System Improvements EL-gB003
Utility Print Design EL-B£005
Gas Fund
ElweIt Court Tenant Improvements
Fund
WWC S~,~tem Rehabilitation
Water Fund
GS-07000
W C-£ 1073
Reserve Reservoir WS-01010
DLstdbution System Water Quality WS-01011
Booster Station Improvements WS-01012
Reservoir Pump Station WS*010t4
Existing Well Rehabilitation WS-02004
El Carn~no Park Reservoir WS-02005
Middiefiald Road Well WS-02007
Eleanor Pardee Park WS*02008
Two New "Vehicles WS-05000
(152,551) Electric Fund Distribution RSR
(282,000) Electric Fund Distribution RSR
(137,729) Electric Fund Distribution RSR
(21,924) Electric Fund Distribution RSR
(34,E53) 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 Electdc Fund Distribution RSR
(195.164) Electric Fund Distribution RSR
0 (3B.872)
100,000Etectric/GasRVater and WWC Fund
Distribution RSR
100.000
(13,230) WWC Fund RSR
(13,230)
(72,173) Water Fund RSR
(4,420) Water Fund RSR
(1,253) Water Fund RSR
(1,790,468) Water Fund RSR
(3,015,946) Water Fund RSR
(583,0S8) 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 returned to reserve
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Portion of project balance returned to reserve
Pordon 0I project balance returned to reserve
Portion of project balance returned to reserve
Additior~al funding by intedund transfer between projects
Additional funding by interfund transfer between projects
Additional iunding by interiund transter between proje-cts
Portion of project balance returned to reserve
New CIP Project for Etwell Court, tenant improvements
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
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
Page 1 of 1