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HomeMy WebLinkAboutStaff Report 471-08City of Palo Alto C .ty Manager’s Report TO: ATTENTION: FROM: DATE: REPORT TYPE: HONORABLE CITY COUNCIL ......... FINANCE COMMITTEE CITY MANAGER DECEMBER 16, 2008 Recommendation DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 471:08 SUBJECT:Recommendation Regarding Adoption of Ordinance Authorizing Closing of the Budget for the Fiscal Year Ending June 30, 2008, including Reappropriation requests, Closing completed capital improvement projects, Authorizing transfers to reserves and Approval of Comprehensive Annual Financial Report (CAFR) RECOMMENDATION Staff recommends that the Finance Committee i’eview, provide input, and forward the attached ordinance (Attactunent A) and associated exhibits to the City Council for its approval to: close the 2008 Budget; authorize re-appropriation of 2008 funds into the 2009 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 City 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 2008 fiscal year budgets and reauthorizing 2008 funds for the current fiscal year 2009. In addition, they provide detailed information on the City’s financial activities for 2008. 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: 471:08 Page 1 of 5 DISCUSSION Overall, the following summarizes changes to the City’s reserves: ¯The General Fund Budget Stabilization Reserve (BSR) ° is 18 percent of budgeted expenditures. This percentage is within the Council approved guidelines of 15 to 20 percent and shows a closing balance of $26.1 million, a decrease of $1.4 million from the prior year. The Infrastructure Reserve has a final balance of$17.9 million at the end of 2008. Budget transactions included in the attached ordinance increased General Fund reserves by $0.2 million (Exhibit A). The City provides medical coverage for retirees and their spouses. In 2008, the City of Palo Alto was required (Government Accounting Standards Board Statement 45) to recognize in its financial statements any unfunded, earned retiree medical costs including those for current active employees. The Citywide liability for retiree medical costs is $102.2 million. Staff received City Council approval to establish an irrevocable trust with California Employers Retirees Benefit Trust (CERBT) and fund the Trust with contributions of $33.8 million, lowering the liability to $68.4 million. The annual contribution for 2008 was $9.3 million. The actuarial study estimates a reduced annual contribution of $7.7 million for furore years after consideration of the contributions made to the trust (CAFR Note 12). Economy The U.S. economy is facing critical challenges; a weakening economy, a tight credit market, rising unemployment, declines in taxes and a loss of consumer confidence. During 2008, the local economy was somewhat immune from these challenges, however this is not expected to continue. Expected declines in sales tax, transient occupancy taxes and other sources of revenue combined with potential increases in expenditures will present financial challenges for the City in 2009. Additional details on future revenues and expenditures can be found in the updated Long Range Financial Forecast 2009-19. The City has been proactive in the past in dealing with these challenges. Currently, it is worldng with Stanford Shopping Center to expand its retail space and to build a new hotel on its premises. The City increased the transient occupancy tax rate from 10 to 12 percent in January 2008 and is considering a Business License Tax. The City will continue to remain vigilant to maintain its sound financial practices. (MD&A pp 3-4 Transmittal Letter p. ’ vi) Results by Fund General Fund For 2008, the General Fund had a net gain of $3.0 million compared to a net gain of $5.2 million the prior year. Increases were primarily due to revenue increases in property taxes, utility user tax, transient occupancy tax, rental income and the year-end adjustment to the carrying value of investments. At fiscal year-end, the fund balance for the General Fund totaled $42.4 million. This was comprised of: $12.2 million reserved for encumbrances, notes, prepaid expenses, CMR: 471:08 Page 2 of 5 unrealized gain and inventory; $26.1 million for the Budget Stabilization Reserve; $3.5 million for the Equity Transfer Stabilization Reserve; and $0.6 for re-appropriations. (Exhibit E) (MD&A pp. 14-16). Capital Projects Fund For fiscal year 2008, the Capital Projects Fund reported $21.7 million in expenditures and other uses, an increase of $4.5 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 $38.3 million, a decrease of $2.8 million. As of June 30, 2008, the Infrastructure Reserve balance was $17.9 million, an increase of $2.! million from prior year. A number of completed and closed projects with remaining balances at the end of fiscal year 2008 totaling $231,282 (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 decreased by a net $7.9 million. Major changes include a $9.8 million decrease in the Electric Fund, primarily due to an $8.6 million increase for utility purchases. The reason for this was the low hydroelectric generation caused by the dry weather season causing the City to purchase power at market rates. The Gas Fund had a $3.7 million increase primarily due to a 9.5 percent rate increase. Wastewater Treatment Fund had an increase of $5.3 million, which brought the ending RSR balance to a negative $7.3 million compared to a negative $12.6 million the prior year. The negative balance is due to construction costs for the reclaimed water pipeline project. Construction costs will be offset by future grant and partner revenues. Once the revenues are received the reserve should continue to increase and return to a positive balance by the end of 2009. The Storm Drain Fund had a decrease of $3.6 million. The reserve has been negatively impacted by the start up of storm drain improvement projects. The additional increase in income in future years should return the reserve to a positive level. Exhibit G provides the balance changes for all reserve categories for the Enterprise Funds. (MD&A p. 17) At the end of fiscal year 2008, 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 II~IPACT Adoption of the attached budget-closing ordinance (Attachment A) allows for the re- appropriation and carryover of funding from the 2008 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 sumrnarize 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 CMR: 471:08 Page 3 of 5 reserves (Exhibit H). These returns have increased the respective reserve balance. Exhibit E reflects the changes to and status of maj or reserves. POLICY II~IPLICATIONS 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: 471:08 Page 4 of 5 PREPARED BY: TRUDY EIKENBERRY Accounting Manager, Administrative Services DAVID RAMBERG Assistant Director, Administrative Services DEPARTMENT HEAD APPROVAL:~ LALO PEREZ Director, Administrative Services CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Budget Closing Ordinance Exhibit A - Detailed Changes to the Adjusted Budget Exhibit B - Fiscal Year 2008 Re-Appropriation Requests Exhibit C - Capital Improvement Projects Completed and Closed in Fiscal Year 2008 Exhibit D - General Fund Summary Exhibit E - General Fund Reserve Summary Exhibit F - Enterprise Summaries Exhibit G - Enterprise Reserve Summary Exhibit H - Capital Improvement Program Projects Fiscal Year 2008 Year- End Adjustments Attachment B: CAFR CMR: 471:08 Page 5 of 5 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING CLOSING OF THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2008 The Council of the City of Palo Alto does ordain as fol!ows: 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 ii, 2007 did adopt a budget for fiscal year 2008; and B. Fiscal year 2008 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 Managgr during fiscal year 2008 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 2008 appropriations which on July i, 2007 were encumbered by properly executed, but uncompleted, purchase orders or contracts. Page 1 of 6 ATTACHMENT A SECTION 3. The Council hereby approves adjustments to the fiscal yea9 2008 budget for Fund Balancing Entries as shown on attached Exhibit "A". SECTION 4. The Council hereby re-appropriates fiscal year 2008 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 2009 budget. SECTION 5. The fiscal year 2008 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 2009 budget. SECTION 6.The City Manager is authorized and directed: A. To close the fiscal year 2008 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 2008 budget as adopted or amended by ordinance of the Council; and B. To close various completed Capital Improvement Projects (CIP) as shown in Exhibi~ "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 necessaryto provide for: i)A reserve for encumbrances and re- appropriations in the various funds,the purpose of which is to carry forward into the fiscal year 2009 budget and continue, in effect, the unexpended balance of appropriations for fiscal year 2008 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 Page 2 of 6 ATTACHMENT A (3) guidelines as shown in Exhibit "E"; and A r-eserve 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 Sixty Two Thousand Nine Hundred and Thirty Dollars ($62,930) as shown in Exhibit ~A", from the Stabilization Rate Reserves of the Utilities Department Funds as fol!ow: Utilities Fund Electric Distribution Electric Supply Gas Distribution Gas Supply Total Amount $ 5,741 $38,300 $ 4,539 $13,350 $62,930 The General Fund Equity Transfer Stabilization Reserve is increased by $62,930 to $3,528,000. SECTION 8. The General Fund Budget Stabilization Reserve Rate Stabilization Reserve is hereby increased by the sum of One Hundred Seventeen Thousand Five Hundred Ninety Nine Dollars ($117,599) as described in Exhibit "A". This transaction will change the balance in the General Fund Budget Stabilization Reserve to $26,100,000. SECTION 9. The Emergency Preparedness Fund is hereby decreased by Four Thousand Six Hundred Seventy Dollars Page 3 of 6 ATTACHMENT A ($4,670) as described in Exhibit "A". This transaction will change the Emergency Preparedness Fund Balance to $20,000. SECTION i0. The Public Services Donation Fund is hereby decreased by Twenty Five Thousand One Hundred Thirty Dollars ($25,135) as described in Exhibit "A". This transaction will change the Public Services Donation Fund Balance to $674,000. SECTION ii. The Local Law Enforcement Block Grant Fund is hereby decreased by Two Thousand Six Hundred Dollars ($2,600) as described in Exhibit "A". This transaction will change the Local Law Enforcement Block Grant Fund Balance to $901. SECTION 12. The Capital Project Fund Infrastructure Reserve is hereby increased by One Hundred Thirteen Thousand Six Hundred Eighty Three Dollars ($113,683) as described in Exhibit "A". This transaction will change the Capital Project Fund Infrastructure Reserve to $17,894,000. SECTION 13. 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"o SECTION 14. The Electric Supply Rate Stabilization Reserve is hereby decreased by the .sum of Thirty Eight Thousand Three Hundred Dollars ($38,300), as described in Exhibit "A". This transaction will change the balance in the Electric Supply Rate Stabilization Reserve to $47,309,000. SECTION 15. The Electric Distribution Rate Stabilization Reserve is hereby increased by thesum of Three Million Eight Hundred Twenty Seven Thousand Nine Hundred Ninety Four Dollars ($3,827,994) as described in Exhibit "A". This transaction will change the Electric Distribution Rate Stabilization Reserve to $8,110,000. SECTION 16. The Electric Fiber Optics Sub-fund Rate Stabilization Reserve is hereby increased by the sum of One Hundred Thirty Three Thousand Five Hundred Seventy Two Dollars ($133,572) as described in Exhibit "A". This transaction will chaage the Electric Fiber Optics Sub-fund Rate Stabilization Reserve to $5,331,000. Page 4 of 6 ATTACHMENT A SECTION 17. The Gas Supply Rate Stabilization Reserve is hereby .~ecreased by the sum of Thirteen Thousand Three Hundred Fifty Dollars ($13,350) as described in Exhibit "A". This transaction will change the Gas Supply Rate Stabilization Reserve to $7,399,000. SECTION 18. The Gas Distribution Rate Stabilization Reserve is hereby increased by the sum of Five Hundred Thirty Eight Thousand Nine Hundred Sixty Three Dollars ($538,963) as described in Exhibit "A". This transaction will change the Gas Distribution Rate Stabilization Reserve to $4,735,000. SECTION 19. The Wastewater Collection Rate Stabilization Reserve is hereby increased by Twenty Five Thousand One Hundred Thirty Four Dollars ($25,134) as described in Exhibit "A". This transaction will change the Wastewater Colle~tion Rate Stabilization Reserve to . $6,027,000. SECTION 20. The Water Rate Stabilization Reserve is hereby increased by the sum of Seven Hundred Forty Five Thousand Three Hundred Thirty Four Dollars ($745,334) as described in Exhibit "A~. This transaction will change the Water Rate Stabilization Reserve to $13,111,000. SECTION 21. The Storm Drainage Rate Stabilization Reserve is hereby increased by the sum .of Seven Hundred Eighteen Dollars ($718) as described in Exhibit "A". This transaction will change the Storm Drainage Rate Stabilization Reserve to $1,383,000. SECTION 22. The Technology Fund is hereby increased by One Hundred Thousand Dollars ($I00,000) as described in Exhibit ’~A". This transaction will change the Technology Fund Balance to $19,593,000. SECTION 23. 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 24. As specified in Section 2.28.080(a of Page 5 of 6 ATTACHMENT A the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 25. 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 26. 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: City Clerk APPROVED AS TO FORM: Mayor APPROVED: City Attorney City Manager Director of Administrative Services Page 6 of 6 Exhibit A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2008 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET GENERALFUND Source Changes Use Changes Net Changes To (From) Reserves Fund Balancin,q Entries 10200000 20520 45,041 10200000 20530 17,889 10200000 20410 117,599 GFTSR year-end transfer from Electric Fund. GFTSR year-end transfer from Gas Fund. Unused balance of CIP Project PG-08001 (Golf Course Irrigation) returned to General Fund which was the funding source of this project. 180,529 17300000 33060 40 Transfer to fund travel & meetings. 17300000 33450 4,630 Transfer to fund emergency meals. 70191001 31220 1,087 Transfer to fund instruction & training 70191001 33480 144 Transfer to fund special events & awards. 70191003 32070 5,866 Transfer to fund recreation and housekeeping 80191002 32990 2,902 Transfer to fund other supplies and materials. 80191003 31990 7,146 Transfer to fund other contract services. 80191003 32990 7,990 Transfer to fund other supplies and materials. 29,805 150,724 10200000 _38310 10200000 38220 17300000 38500 19100000 38500 62,930 Transfer Stabilization Reserve 117,599 Budget Stabilization Reserve (4,670) Change in fund balance (25,135) Change in fund balance SPECIAL REVENUE FUND - Local Law Enforcement Block Grant Source Changes 0 70249001 32990 1,160 Transfer to fund other supplies and materials 70249001 33060 1,440 Transferto fundtravel and meetings. Use Changes 2,600 Net Changes To (From) Reserves (2,600), Fund Ba~ancinq Entries 70249001 38500 (2,600) Change in fund balance CAPITAL PROJECT FUND Source Changes 0 Use Changes Net Changes To (From) Reserves Fund Ba ancing Entries 47100000 40110 117,599 80471009 38790 (117,599) 50471001 38790 (75,916) 50471010 38790 (612) 50471010 38790 (36,156) 50471007 38790 (999) To return unused balance of CIP Project PG-08001 (Gotf Course Irrigation) to General Fund which was the funding source of this project. To close CIP Project PG-08001 (Golf Course Irrigation) and return balance to General Fund To close CIP Projects PD-03003 (Additional Fire Frequency) and PD-04011 (Civic Center Parking-Security Upgrade) and return balance to Infrastructure Reserve To close CIP Project PE-O0107 (Briones Park Improvement) and return balance to Infrastructure Reserve To close CiP Project PE-05002 (Main Library Configuration) and return balance to Infrastructure Reserve To close CIP Project PF-90018 (Cubberley Building Code Modification) and return balance to Infrastructure Reserve (113,683) 113,683 47100000 38490 113,683 Changes in Infrastructure Reserve Page 1 of 3 Exhibit A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2008 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET ENTERPRISE FUNDS Source Chanqes 0 20000030 40110 38,300 20000020 40110 5,741 20020202 38790 (134,297) 20020202 38790 (3,897,559) 20020202 31990 (326,000) 20020611 38790 (133,572) 20020403 38790 (46,959) 20020403 30010 (4,913) 20020202 38790 279,614 20020201 38790 296,379 Use Changes (3,923,266) GFTSR year-end transfer from Electric Fund GFTSR year-end transfer from Electric Fund To close various ClP Projects (Exhibit C) and return balance to Electric Fund RSR To reduce appropriation of various CIP Projects (Exhibit H) and return balance to Electric Fund RSR To reduce appropriation of various CIP Projects (Exhibit H) and return balance to Electric Fund RSR To reduce appropriation of CIP Project EL-06011 (Fiber Optic Customer) and return balance to Fiber Optics Fund RSR To reduce appropriation of CIP Project EL-89031 (Communications System) and return balance to Electric Fund RSR To reduce appropriation of CIP Project EL-89031 (Communications System) and return balance to Electric Fund RSR To provide additional appropriation to various CIP Projects (Exhibit H) To provide additional appropriation to CIP Project EL-89028 (Electric Customer Connection) Net Changes To (From) Reserves 3,923 266 Fund Balancing Entries 20000020 38040 3,827,994 increase in Distribution RSR- Electric 20000030 38170 (38,300) Decrease in Supply RSR - Electric 20000080 38040 133,572 Increase in RSR - Fiber Optics Gas: FUn Source Chanqes 0 Use Changes Net Changes To (From) Reserves Fund Balancing Entries 20000050 40110 13,350 20000040 40110 4,539 20020802 38790 (510,276) 20020802 38790 (33,226) (525,613) GFTSR year-end transfer from Gas Fund. GFTSR year-end transfer from Gas Fund. Various CtP Project year-end adjustments per Schedule H To close CIP Project GS-03002 (GMR Project 13) and return balance to reserve 525,613 20000050 38170 (13,350) Decrease in Supply RSR - Gas 20000040 38040 538,963 Increase in Distribution RSR - Gas Source Chanqes 0 20021202 38790 (17,130) Various CIP Project year-end adjustments per Schedule H 20021202 38790 (8,004) To close CIP Project WC-O0003 (Phase XII - WC System)) and return balance to reserve Use Changes (25,134) Net Changes To (From) Reserves 25,134 Fund Balancing Entries 20000070 38040 25,134 Rate Stabilization Reserve Source Changes 20021002 38790 20021002 38790 Use Changes 0 (495,205) Various CIP Project year-end adjustments per Schedule H (250,I29) To close various CIP Projects at year-end per Schedule C (745,334) Net Changes To (From) Reserves 745,334 Fund Balancing Entries 20000060 38040 745,334 Rate Stabilization Reserve Page 2 of 3 Exhibit A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2008 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET Source Changes 0 50070201 38790 (718) To close CIP Project SD-06103 (Gailen/Bibbits) and return balance to reserve (718) Reserves 718 Fund Balancinq Entries 50070001 38040 718 Rate Stabilization Reserve Source Changes 0 40070603 38790 (100,000) To close CIP Project TE-07005 (Archive and Purge Record Management) and return balance to reserve (100,000) 100,000 Use Changes Net Changes To (From) Reserves 40070001 38300 100,000 Reserve for Technology Page 3 of 3 Exhibit B FISCAL YEAR 2008 APPROPRIATION REQUESTS Total Requests $ 647i719 .$0 $1,916,129 $ 2,563,848 Total Recommended $ 647,719 $0 $1,916,129 $ 2,563,848 $ AMOUNT INTENDED USE COMMENTS/REASONS FOR NOT COMPLETING IN FY 2008 STATUS City Manager’s Office $81,000 $30,919 Climate Protection Plan (CPP) Document Archiving and Library Plan/Public Safety Building Project This reappropriation is being requested for additional project funding to assist departments in achieving CPP goals as mandated by Council. The request is also for a consultant / department backfill for additional staff time to help implement a plan for greenhouse gas reductions within the community. In fiscal year 2008, $100,000 was budgeted for a cost- benefit analysis of CPP recommendations, .and staff has managed to complete it for much less. These savings can be applied in fiscal year . 2009 to implement the plan. This reappropriation is being requested for the document conversion of CMRs which did not occur as planned in fiscal 2008 due to unanticipated department priorities. The request is also for outreach materials relating to the Library Plan/Public Safety Building Project which overlaps two fiscal years. Recommended $81,000. There is sufficient balance in the Fiscal Year 2008 budget that. can be reappropriated. Recommended $30,919. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Page 1 of 4 $ AMOUNT INTENDED USE COMMENTS/REASONS FOR NOT COMPLETING IN FY 2008 STATUS Plannhtg Department $60,800 Study of parking permit program for College Terrace Non-Departmental $475,000 Salary Contingency -This reappropriation is being requested for the study of a residential parking permit program in College Terrace. On October 25, 2001, as a condition of their General Use Permit with Santa Clara, Stanford University paid $100,000 to the City for study of a residential parking permit program in College Terrace. Funds were held in a deposit account until they were ready for use. City Council authorized moving the funds into the Transportation Section budget and proceeding with the study at the fiscal year 2008 mid-year. The $60,800 remaining is reserved specifically for that project to implement any recommendations adopted by the City Council. Transportation Section will report back to the City Council with the consultant’s recommendations in late Summer 2008. Implementation will begin at that time if the City Council moves forward with the project. Implementation of a parking permit program is not anticipated in the fiscal year 2009 budget. Recommended $60,800. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. This reappropriation is being requested for the Management and Professional group which includes the compensation study that will be completed in fiscal year 2009. In addition, the Fire Chiefs Association will be receiving a salary increase and two years of retroactive pay in fiscal year 2009, per the negotiated contract agreement. The contract was agreed upon after the 2008-09 Proposed budget was prepared and the amounts were not included. Recommended $475,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Page 2 of 4 Police Department PD-07000 $400,000 Mobile Command Vehicle This reappropriation is being requested because staff has concluded that a mobile command vehicle could be designed to act as a back-up 911 center during a major disaster and could be used as a regional asset but the Cost is $350,000 more than the current budget. Staff is seeking federal funding to augment the budget. If additional funding is not identified, staff will purchase a less expensive vehicle within the existing budget. Recommended $400,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Library Department - Technology Fund TE-06001 $27,600 Library RFID Implementation This reappropriation is being requested to implement radio frequency technology for use in circulating and managing library collections. This CIP should remain open because an expenditure of $800,000 may occur in fiscal year 2010 to implement this project. Recommended $27,600. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Police Department - Technology Fund TE-07002 $125,000 Police Auto This reappropriation is to provide funds Citation System to upgrade the handheld automated parking citation system. Purchase orders for this project are currently out, and the department is in the midst of selecting the vendor. There is a commitment balance of $125,000 for this project. Recommended $125,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Public Works - Vehicle Replacement Fund VR-$200,000 Replace This reappropriation is to provide funds 06801 Citywide fuel for construction in Fiscal Year 2009. management and Construction has been delayed during tank inventory the construction of the new MSC fueling system facility. Recommended $200,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Page 3 of 4 Planning Department PL-07001 $837,380 Planning Department PL-07002 $155,000 Planning Department PL-98013 $111,149 Planning Department PL-07000 $60,000 Intermodal Transit Station Work is ongoing on this project, and has been for the last two years using grant funds placed in the General Fund, Transportation Section budget. This capital project has been inactive because funds had to be budgeted early in order to qualify for Federal transportation grants. The department will be ready to use the funds in fiscal year 2009. Recommended $837,830. Ther.e is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Redesign Stanford Ave / E1 Camino intersection This project had been delayed until a cooperative agreement was executed with Caltrans (April 2008). Staff just received formal authorization from Caltrans to proceed with design work using these Caltrans grant funds. Caltrans approval was required by June 30, 2008. Staff will initiate RFP process for consultant services in July 2008. Recommended $155,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Improve School Commutes This previously annual project is meant to fund projects that improve school cormnutes. These funds will be used as the City’s local share match for gran~ funding for the Stanford Ave / E1 Camino Streetscape Project PL-07002. The funds will be used for the design phase in fiscal year 2009 and the construction phase in fiscal year 2011. Recommended $111,149. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Traffic Calming- Downtown North Traffic Circles- Hardscape In 2004, the City installed traffic calming measures in the Downtown North. In 2005, after an evaluation of the measures, the City Council accepted them as a permanent installation, with the additional direction that hardscape be installed on the traffic circles. This project was delayed due to staffing vacancies in the Planning and Transportation Division. Recommended $60,000. There is sufficient balance in the Fiscal Year 2008 budget that can be reappropriated. Page 4 of 4 Exhibit C City of Palo Alto CAPITAL IMPROVEMENT PROGRAM PROJECTS Comp_leted and Closed in Fiscal Year 2008 PROJECT NUMBER PROJECT TITLE General Fund PG-07700 PG-08001 PD-03003 PD-04011 PE-00107 PE-05002 PE-90018 Electric Fund EL-04006 EL-04007 EL-05020 EL-05021 EL-05022 EL-99005 Golf Course Irrigation Pump, Motors and Control Panel Replacement Golf Course Driving Range Turf and Netting Additional Fire Frequency Civic Center Parking - Security Upgrade Briones Park Improvement Main Library Configuration Cubberley Building Code Modification Gas Fund GS-03002 Welch Road Underground Embarcadero Rebuild Mumford/Alma/Scripps Ross/E. Meadow 4/12kV Conversion Louis East Charleston Utility Print Design _ Water Fund WS-02005 WS-02007 WS-02008 WS-05000 GMR Project 13 New Reservoir and Pump Middlefield Road Well Eleanor Pardee Park Well Two (2) New Vehicles Wastewater Collection Fund WC-00003 Phase Xll WC System iGaillen/Bibbits Outfall Storm Drainage Fund SD-06103 Vehicle Replacement Fund t VR-01004 New Vehicles Archive and Purge Record Management System Management Technology Fund TE-07005 TE-01008 Total Total Total Total Total Total Total Total * Balance to return to reserve. PROJECT BALANCE* 117,599 75,497 419 612 36,156 999 231,282 20,000 82,951 20,440 2,130 7,633 1,143 134,297 33,226 33,226 167,069 63,567 20,683 (1,190) $250,129 8,004 $8,004 $718 $718 100,000 $1oo,ooo Page 1 of I 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 Total Source:ofFundsg:=~::~ ~:~ ~ ~.~ :~:~ : Expenditures Administrative Departments Community Services Fire Library Planning Police Public Works Non-Departmental/School Site Add: Operating Trans Out 2007-08 Adopted " Budget 22,034 22,045 9,402 6,985 8,181 20,383 6,044 10,650 13,037 3,742 17,207 2007-08 Adjusted Budget 22,735 22,400 9,793 7,700 8,437 20,383 6,074 10,650 13,037 4,452 17,786 3,558 17,342 21,212 22,868 6,484 10,137 27,981 13,225 9,229 19,108 21,872 24,279 7,035 10,148 29,787 13,254 7,903 10,707 15,570 2007-08 CAFRBasis Rev/Exp 2007-08 Allocated Charges 2007-08 Encum+ Reapprop 2007-08 Budgetary Rev/Exp 23,107 n/a 23,107 22,622 n/a 22,622 10,285 n/a 10,285 7,976 n/a 7,976 7,847 n/a 7,847 19,311 n!a 19,311 4,831 n/a 4,831 10,913 rda 10,913 13,591 n/a 13,591 7,899 (27)n/a 7,872 17,133 3,558 n/a 17,133 n/a 3,558 16,256 1,121 1,721 19,098 17,140 °4,112 614 21,866 21,643 2,343 291 24,277 6,221 601 212 7,033 8,953 705 487 10,145 26,839 2,613 335 29,784 10,074 2,845 324 13,243 6,985 440 475 7,899 13,654 -13,654 CAFR Reconciliation:Current year encumbrance/reappropriations Prior year encumbrance/reappropriations Current year stores adjustment Prior year stores adjustment CAFR Net Income 4,460 (3,~8) (37) 98 3,007 2007-08 Variance 372 222 492 276 (590 (1,072 (1,243 263 554 3,420 (653 11 6 2 2 3 2 11 4 1,91.6 Page 1 of 1 Exhibit E CAFR Fund Balance Less: Encumbrances Reappropriations Adjustment for Stores Operations BudgetaryFund.Balance ~-~ ~:;~ ~ ~:,~,:~;: ~ ,~ :~i~ 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 39,408 3,007 42,415 (3,390)(426)(3,816) (71)(577)(648 (98)61 (37 ~::~35,849 ~:~:~ ~,2,065 37,914 27,480 (1,378)26,102 0 0 0 1,182 1,073 2,255" 2,567 432 2,999 1,253 779 2,032 0 1,035 1,035 3,465 63 3,528 0 0 0 (98)61 (37) Adjustment for Stores Inventory Encumbrance I 0 Adjustment for Stores Operations !,(37) Page 1 of 1 Exhibit F FY 2007 AcUEnc Reapprop REVENUE Water sales 23,044 Other revenues 3,227 Reappropriations /Enc 13,044 FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Eric (Unfavor.) 26,528 25,975 (553) 2,151 3,301 1,150 3,666 3,666 EXPENSES Purchases 7,806 Other Expenses 10,736 TOTAL OPERATING EXPENSES 18,542 Capital Expenses 8,565 .9,340 8,363 977 14,309 12,515 1,794 23,649 20,878 2,771 14,463 14,988 (525) FY 2007 AcUEnc Reapprop REVENUE Electric retail sales 85,417 Electric wholesale sales Other revenues 25,584 Bond Proceeds Reappropriations / Eric 9,328 EXPENSES Purchases 62,478 NCPA & TANC Debt Svc 8,443 Other Expenses 35,111 TOTAL OPERATING EXPENSES 106,032 Capital Expenses 18,730 Principal Payments FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Enc (Unfavor,) 90,506 90,833 327 20,848 25,173 4,325 1,350 1,350 8,922 8,922 78,601 71,065 7,536 8,886 8,554 332 42,495 40,725 1,770 129,982 120,344 9,638 13,642 15,768 (2,126) 100 (100) TOTAL EXPENSES t24,~’62, 143~624 ::! 136~212 i’ : 7412 TO/(FROM) RESERVES : ’ ~ ~i~: ! (4,433) Exhibit F REVENUE FY 2007 AcUEnc Reapprop Gas retail sales 41,457 Gas wholesale sales Other revenues 1,490 Reappropriations ! Enc 4,620 $ Variance Favorable (Unfavor.) 48,047 48,100 53 316 2,261 1,945 7,515 7,515 EXPENSES Purchases 22,250 Other Expenses 12,704 TOTAL OPERATING EXPENSES 34,954 Capital Expenses 10,838 28,003 27,220 783 14,259 12,979 1,280 42,262 40,199 2,063 13,913 13,632 281 FY 2007 AcUEnc Reapprop REVENUE Revenues 15,726 Reappropriations / Enc 9,587 FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Enc {Unfavor.) 15,944 16,627 683 5,966 5,966 EXPENSES Sewer Treatment Exp.6,142 Operating Expenses 3,781 TOTAL OPERATING EXPENSES 9,923 Capital Expenses 13,789 Principal Payments 54 7,101 7,056 45 5,202 4,814 388 12,303 11,870 433 9,164 10,229 (1,085) 55 55 Exhibit F FY 2007 AcUEnc Reapprop REVENUE Operating Revenues 17,717 Restricted Bond Proceeds 21 Loan Proceeds Reappropriations /Enc 15,912 Bonded Reappro/Encum 64 FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Enc (Unfavor,) 21,015 23,905 2,890 9 9 - 4,879 4,879 23,804 23,804 - 17 17 - EXPENSES Operating Expenses 16,406 TOTAL OPERATING EXPENSES 16,406 Capital Expenses,24,578 Principal Payments 341 :TOi(FROM):RESERVES ~ ~ :i::"! (7;6i1) 18,582 16,696 1,886 18,582 16,696 1,886 26,288 30,252 (3,964) 355 355 FY 2007 AcUEnc Reapprop REVENUE Revenues 26,340 Reappropdations /Enc 998 FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Enc (Unfavor.) 29,849 29,850 884 884 EXPENSES Payments to PASCO Other Expenses TOTAL OPERATING EXPENSES Capital Expenses 7,825 18,198 26,023 9,828 9,276 552 21,772 20,994 778 31,600 30,270 1,330 836 1,000 (164) Exhibit F REVENUE FY 2007 Act/Enc Reapprop Revenues 5,346 Reappropriations / Enc 2,379 Bonded Reappro/Encum Restricted Bond Proceeds FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Eric {Unfavor.) 8,307 5,346 (2,961’ 2,295 2,295 EXPENSES Operating Expenses 2,118 TOTAL OPERATING EXPENSES 2,118 Capital Expenses 3,801 Principal Payments 340 2,344 2,379 (35’, 2,344 2,379 (35’, 9,885 8,472 1,413 360 360 REVENUE Revenues Reappropriations / Enc FY 2007 AcUEnc Reapprop 792 FY 2008 FY 2008 $ Variance Adjusted Reapprop Favorable Budget Actual/Eric (Unfavor,) 1,243 919 (324’~ 5 5 EXPENSES Operating Expenses 806 1,232 928 304 TOTAL OPERATING EXPENSES 806 1,232 928 304 Capital Expenses TOTAL EXPENSES ~ ;,, ;~-:! = ::, 806 I ~ : ~ ~1;232-~+ : i~ ~ 928 304 FISCAL YEAR 2008 Beginning Reserves To (From) Reserves Adj Budgeted Reserves % of Budgeted Reserves Exhibit G Water Electric Gas WWC WWT Refuse Storm $17,630 $147,505 $9,416 $6,469 ($10,013)$5,004 $2,186 (2,924)(9,934)4,045 439 5,311 (536)(3,570) 19,200 137,890 10,312 6,369 15,066 4,455 2,180 77%100%131% 108%-31%100%-63% Ext Svc Total $4 $178,201 (4)(7,173) 4 195,472 0%87°A FISCAL YEAR 2008 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 Water Electric Gas WWC WWT Refuse Storm Ext Svc $13,111 $6,027 ($7,285) $3,832 ($t,384) $0 13,111 1,595 47,309 13,968 -61,277 3,057 70,397 709 22 2,109 7,399 4,734 12,133 6,027 (7,285) 1,328 881 2,583 3,832 (1,384) 636 Total $14,301 54,708 18,702 87~711 9,444 70,397 709 636 22 2,109 FISCALYEAR 2008 Water Electric Gas WWC WWT Refuse Storm Ext Svc Total BeginningRSR $16,276 $7i,iii $8,406 $5,803 ($i2,596)$4,4i4 $2,186(454).$95,604 To(from) RSR (3,165)(9,834)3,727 224 5,311 (582)(3,570)(7,893) Ending RSR i’i~i3,£li~ :~61,277i2;1331:(~;285);~- 3,832=; ~ (i~384). : ’~"87’711 RSR Minimum 4,942 35,913 13,150 2,737 2,898 2,507 N/A N/A 62,147 RSR Maximum 12,356 75,147 29,606 6,844 5,795 5,014 N/A N/A 134,762 RSR % of Maximum 106%82%41%88%-126%76%N/A N/A 65% PROJECT PROJECT TITLE NUMBER Capital Project Fund 80471009 Golf Course Irrigation Pump, Motors and PG-07700 Control Panel Replacement 80471009 Golf Course Ddvthg Range Turf and PG-08001 Netting 50471011 Street Maintenance PE-86070 50471010 Mitchell Park Library PE-04012 80471008 Foothills Interpretive Center OS-07002 80471008 Foothills Park Maintenance OS-07003 80471008 Open Space Trails and Amenities OS-00001 Electric Fund 20020202 Park Blvd. Sub. Bus.EL-O0006 20020202 UG District 41 EL-03001 Exhibit H CiO~ of Palo Alto CAPITAL IMPROVEMENT PROGRAM PROJECTS Fical }’ear 2008 Year-End Adjustments REVENUE EXPENSE FUNDIN~ SOURCE COMMENTS 13,315 General Fund (13,315) General Fund (2,614)(2,614) Proposition 1B- Local Street and RoadImprovement 3,000 3,000 Utilities CARE Program 2,229 CIP Project’OS-00001 - Open Space Trails and Amenities 9,161 CIP Project OS.00001 - Open Space Trails and Amenities (11,390) Infrastructure Reserve 386 386 (13,000) (1,000,000) 20020202 UG Distdct 39 EL-03005 (50,000) 20020202 Colorado Sw Station 115k EL-05001 20020202 Relocation - Alma Sub Station EL-05003 20020202 UG Distdct 45 EL-06002 20020611 Fiber Optic Customer EL-06006 20020202 E. Meadow/Alma Loma EL-08002 20020202 Rebuild UG Distdct 22 EL-11005 20020201 Electric Customer Connections EL-89028 20020403 Communications System EL-89031 20020202 Substation Protection EL-89038 20020202 Substation Facility EL-89044 20020202 Electric System Improvements EL-98003 r~as Fund J 20020802 Compressed Natural Gas GS-00011 20020802 System Extension Operations -GS-03009 Unreimbursed 20020802 CNG Seq Fuel System GS-03010 20020802 EIweti Court Tenant Improvements GS-07000 20020802 Gas Meters and Regulators GS-80019 20020802 GMR Project 14 GS-04003 ~VWC Fund ] 20021202 WC System Rehabilitation - Project 17 20021202 WC System Rehabititation - Project 18 20021202 Sewer Manhole Rehabilitation WC-04002 WC-05003 WC-99013 To transfer appropriation from PG-08001 to PG-07700 te cover expense over budget To transfer appropriation from PG-08001 to PG-07700 to cover expense over budget To adjust budget to actual amount received Increase revenue expense fue to additional revenue from Utilities CARE Program (Consultant Assistance for Resource Efficiency Program) To transfer appropriation from OS-00001 to OS-07002 and OS- 07003 to cover expense over budget To transfer appropriation from OS-00001 to OS-07002 and OS- 07003 to cover expense over budget To transfer appropriation from OS-00001 to OS-07002 and OS- 07003 to cover expense over budget Water Fund J 20021002 Reservoir Booster Station WS-01010 20021002 Distribution System Water Quality WS-01011 20021002 Booster Station Improvement WS-01012 20021002 WMR Project 16 VVS-02003 20021002 Existing Wel! Rehabilitation WS-02004 20021002 Water System Sampling WS-05002 20021002 Water Service Hydrant WS-80014 20021002 Water Meters WS-80015 20021002 WMR Project 19 WS-05001 (2,600,O00) 43,160 (172,677) (133,572) 153,406 67,048 296,379 (51,872) (60,029) (327,853) 16,000 0 (3,833,010) Electric Rate Stabilization Reserve Electric Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electric Rate Stabitization Reserve Electhc Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electric Rate Stabilization Reserve Electdc Rate Stabilization Reserve Electric Rate Stabilization Reserve Electric Rate Stabilization Reserve 2,945 Gas Rate Stabilization Reserve (305,409) Gas Rate Stabilization Reserve 31,765 Gas Rate Stabilization Reserve 39,292 Gas Rate Stabilization Reserve (200,000) Gas Rate Stabilization Reserve (78,869) Gas Rate Stabilization Reserve (510,276)ok 312,870 WWC Rate Stabilization Reserve (30,000) WWC Rate Stabilization Reserve (300,000) WWC Rate Stabilization Reserve (17,t30)ok (94,450) Water Rate Stabilization Reserve (41,690) Water Rate Stabilization Reserve Water Rate Stabitization Reserve (17,568) (69,95I) Water Rate Stabilization Reserve {6,891) Water Rate Stabilization Reserve (13,848) Water Rate Stabilization Reserve (150,000) Water Rate Stabilization Reserve (100,000) Water Rate Stabilization Reserve (807) Water Rate Stabilization Reserve (495,205)ok Page "1 of 1 Return portion of the appropriation back to Electdc Rate Return portion of the appropriation back to Electdc Rate Stabilization Reserve Return portion of the appropriation back to Electric Rate Stabilization Reserve Return portion of the appropriation back to Electdc Rate Stabilization Reserve To provide additional appropriation to cover actual costs Return portion of the appropriation back to Electric Rate Retum portion of the appropriation back to Electric Rate To provide additional appropriation to cover actual costs To provide additional appropriation to cover actual costs To provide additional appropriation to cover actual costs Return portion of the appropriation back to Electric Rate Retum portion of the appropriation back to Electdc Rate Stabilization ReserveReturn portion of the appropriation back to Electric Rate Stabilization ReserveTo provide additional appropriation to cover actual costs To provide additional appropriation for a purchases order Return poP, ion of the appropriation back to Gas Rate Stabilization Reserve To provide additional appropriation for a purchases order To provide additional appropriation to cover actual costs Return portion of the appropriation back to Gas Rate StabilizationReserve Return portion of the appropriation back to Gas Rate Stabilization Reserve To provide additional appropriation for a purchases order Retum portion of the appropriation back to WWC Rate Stabilization Reserve Return portion of the appropriation back to WWC Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Stabilization Reserve Return portion of the appropriation back to Water Rate Return portion of the appropriation back to Water Rate Return portion of the appropriation back to Water Rate