HomeMy WebLinkAboutStaff Report 108-06TO:
FROM:
of PaR}
HONORABLE CITY COUNCIL 2
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JANUARY 17, 2006 CMR: 108:06
SUBJECT:FINANCE COMMITTEE RECOMMENDATION TO APPROVE AN
ORDINANCE CLOSING THE 2004-05 FISCAL YEAR, INCLUDING
TRANSMISSION OF THE CITY’S COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR), REAPPROPRIATION REQUESTS, AND
COMPLETED CAPITAL IMPROVEMENT PROJECTS FROM FINANCE
COMMITTEE MEETING OF DECEMBER 13, 2005
RECOMMENDATION:
The Finance Committee recommends that Council approve the attached ordinance and associated
exhibits to: close the 2004-05 Budget and authorize re-appropriation of 2004-05 funds into the
2005-06 Budget; close completed capital improvement projects; and transfer remaining balances to
the appropriate reserves. In addition, the City’s Comprehensive Annual Financial Report (CAFR) is
being transmitted for approval.
Following direction from the Finance Committee, staff has revised the Enterprise Reserve Summary
(Exhibit G) to include the Rate Stabilization Reserves (RSRs) minimum.
PREPARED BY:
TRUi~Y E~KENBERRY ----)
Assistant Director, Administrative Services
CMR:108:06 Page 1 of 2
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
Assistant City Manager
ATTACHMENTS
Attachment 1: CMR 447:05
Attachment 2: Revised Exhibit G
CMR:108:06 Page 2 of 2
ATTACHMENT 1
City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTtLA, TIVE
SERVICES
DATE:DECEMBER 13, 2005 CMR: 447:05
SUBJECT:ORDINANCE CLOSING THE 2004-05 FISCAL YEAR,
INCLUDING TRANSMISSION OF THE CITY’S
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR),
REAPPROPRIATION REQUESTS, AND COMPLETED CAPITAL
IMPROVEMENT PROJECTS
RECOMMENDATION
Staff recommends that the Finance Committee review, recommend, and forward the attached
ordinance (Attachment A) and associated exhibits to the City Council for its approval to: close
the 2004-05 Budget and authorize re-appropriation of 2004-05 funds into the 2005-06 Budget
(Exhibits A & B); and 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); and adjust budget for capital improvement projects (Exhibit H). In
addition, staff is transmitting the City’s Comprehensive Annual Financial Report (CAFR) for
review and approval (Attachment B).
BACKGROUND
The attachments to this report provide the necessary documents for closing the 2004-05 fiscal
year budget and providing funds for the current fiscal year 2005-06. In addition, they provide
detailed information on the City’s financial activities for 2004-05. This cover report highlights
the key fiscal issues impacting the City of Palo Alto and identifies pages in the attactmaents
where the reader can find more comprehensive explanations. The Management Discussion and
Analysis (MD&A) chapter of the CAFR (Attachment B) provides an easy-to-read, thorough
discussion and analysis of the City’s current fiscal health. It includes financial statements,
performance information that is compared to the prior year, and capital asset and debt
administration data. The Long-Range Financial Plan (CMR:442:05), presented to the Finance
Committee on December 6, 2005, encompasses a more comprehensive analysis of the local and
national economic factors impacting Palo Alto going folavard.
Economy
Fiscal year 2004-05 brought some signs of an economic recovery. Unemployment rates for Palo
Alto declined from 3.4 percent to 2.7 percent. Revenue sources such as sales and transient
occupancy tax, which are sensitive to the economy, showed a slow rebound. The City, however,
CMR:447:05 Page 1 of 4
still faces economic challenges with rising employee benefit costs and the loss of specific
revenue sources such as the closing of a hotel and two automobile dealerships. Although the
City has closely monitored and controlled expenses ttzrough its "Strengthening the Bottom Line"
efforts, it has needed to draw on General Fund reserves to fund its obligations. (MD&A p. 4;
Transmittal Letter p. vi)
DISCUSSION
There are several necessary year-end adjustments to the 2004-05 budget. Specific transactions
are detailed in Exhibit A of the budget-closing ordinance. Exhibits D and F summarize financial
results for fiscal year 2004-05 for the General Fund and Enterprise Funds, respectively. They
provide an analysis of the performance of these funds in comparison to the budget as adopted
and adjusted by Council. The result of net operations is explained in ter~ns of changes to the
various fund reserves authorized by Council.
Results by Fund
General Fund
For 2004-05 the General Fund had a net loss of $35 million compared to a net operating surplus
of $0.5 million in the prior year. In December 2002, the City auditor issued an audit report on
the Long Range Financial Plan. The City Auditor recommended a simplification of infrastructure
funding by: (1) moving the Infrastructure Reserve from the General Fund to the Capital Projects
Fund; and (2) retaining unspent project funds in the Capital Projects Fund. The City Council
approved these recommendations and the operating transfer of $35.9 million was completed in
2004-05. It is this transfer that causes the City to report a $35 million net loss in its financial
statements. Consequently, in terms of operating performance, the General Fund actually ended
2004-05 with a $0.9 surplus. At fiscal year-end, the fund balance for the General Fund totaled
$31.8 million. This was comprised of: $7.3 million reserved for Encumbrances, Notes and
Inventory; $21.1 million for the Budget Stabilization Reserve; $3.2 million for the Equity
Transfer Stabilization; and $0.4 for Re-appropriations. (Exhibit E), (MD&A pp. 14-15).
Capital Projects Fund
For fiscal year 2004-05, the Capital Projects Fund reported $22.5 million in expenditures and
other uses, a decrease of $5.6 million from prior year. This is primarily because the prior year
included completion of the parking garages. Major expenditures in 2004-05 for the Capital
Projects Fund included $4.8 million on streets and sidewalks, $1.9 million on the Homer Avenue
under-crossing project and $1.2 million on the fire station improvement project. The Capital
Projects Fund Balance totaled $44.1 million, an increase of $23.1 million. This increase is
primarily a result of the operating transfer from the General Fund to transfer the Infrastructure
Reserve to the Capital Projects Fund, as discussed under the General Fund. Exhibit H is a
summary of Capital Improvement Projects which transfer funding between projects within the
same fund. These transactions have no impact on reserve balances. (MD&A p. 15)
Enterprise Funds
The Rate Stabilization Reserves (RSRs) for the combined Enterprise Funds decreased by a net
$17.9 million. Major changes include a $8.4 million decrease in the Electric Fund and a $5.7
million decrease in the Gas Fund. Both of these decreases result primarily from a legal settlement
with Enron Corporation. Exhibit G provides the balance changes for all reserve categories for the
Enterprise Funds. The net decrease in the funds was $15.0 million. Exhibit H is a summary of
CMR:447:05 Page 2 of 4
Capital Improvement Projects which transfer funding betxxeen projects \~ithin the same fund.
These transactions have no impact on reserve balances. (MD&A p. 16-17)
RESOURCE IMPACT
Adoption of the attached budget-closing ordinance (Artact~nent A) allows for the re-
appropriation and carryover of funding from the 2004-05 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. Exhibit E reflects the changes to and status of
major City reserves as follows:
The General Fund BSR level is at 17.5 percent of budgeted expenditures. This percentage is
within the Council approved guidelines of 15 to 18.5 percent and shows a dosing balance of
$21.1 million, a decrease of $0.4 million from the prior year.
The Infrastructure Reserve of $35.9 miltion was transferred to CIP in FY 04-05.
The Reserve for Equity Transfer Stabilization was increased, with a final transfer of $0.8
million and a closing balance of $3.2 million.
Budget transactions included in the attached ordinance increase General Fund Reserves by
$0.8 million (Exhibit A).
Transactions in the attached ordinance decrease Electric Fund reserves by $0.5 million and
decrease Gas Fund reserves by $0.2 million. These changes are detailed in Exhibit A and are
due to funding the Equity Transfer Stabilization Reserve requirements.
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 Enviro~m~ental
Quality Act.
PREPARED BY:EIKE SE Y
Accounting Manager, Administrative Services
DEPARTMENT HEAD APPROVAL:
CARL
Director,Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
CM_R:447:05 Page 3 of 4
ATTACHMENT
Attachment A: Budget Closing Ordinance body text
Exhibit A - Detailed Changes to the Adjusted Budget
Exhibit B - 2004-05 Re-Appropriation Requests
Exhibit C - Capital Improvement Projects Closed in 2004-05
Exhibit D - General Fund Summary
Exhibit E - General Fund Reserve Summary
Exhibit F - Enterprise Smnmaries
Exhibit G - Enterprise Reserve Summary
Exhibit H ~ Capital Improvement Program Projects
Attachment B: CAFR
CMR:447:05 Page 4 of 4
Attachment A
ORDINANCE NO.
ORDiN~_NCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 2004-05
The Council of the City of Palo Alto does ordain as
fo!lows:
SECTION !. 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 Municipa! Code,
the Counci! on June 28, 2004 did adopt a budget for fiscal
year 2004-05; and
B. Fiscal year 2004-05 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, A~ministrative 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
2004-05 did amend the budgetary accounts of the City of
Palo Alto to reflect:
A. Additional appropriations authorized by ordinance
of the City Council.
B. ~men6ments to employee compensation plans adopted
by the City Council.
C. Transfers of aporopriations_ from the conu~ngen~~’ ~
account as authorized by the City Manager.
D.Redmszr~muz!on of appropriations between a~v_s~ons,
cost centers, and objects within various departments as
authorized by the City Manager.
E. Fiscal year 2004-05 appropriations which on July !,
2005 were encumbered by properly executed, but uncompleted,
purchase orders or contracts.
SECTION 3. The Council hereby approves adjustments to
the fiscal year 2004-05 budget for Fund Balancing Entries
as shom~ on attached Exhibit "AH.
SECTION 4. The Council hereby reappropriates fiscal
year 2004-05 appropriations in certain departments and
categories, as show~ on the attached Exhibit "B", which
were not encumbered by purchase order or contract, at year
end into the fiscal year 2005-06 budget.
SECTION 5. The fiscal year 2004-05 encumbered
balances for the departments and categories sho<~ on
Exhibit "D" shal! be carried forward and reappropriated to
those same departments and categories in the fiscal year
2005-06 budget.
SECTION 6.The City Manager
directed:
is authorized and
A. To close the fiscal year 2004-05 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 2004-05 budget as adopted or amended by
ordinance of the Council; and
B. To close various completed Capital Improvement
Pro3ects as show~_ in Exhibit "C" and move the balances ~nto
the respective reserve funds indicated in Exhibits "E" and
"G"; and
C. To establish reserves as shown in Exhibits "E",
"F" and "G~ for al! Funds as necessary to provide for:
(i)A reserve for encumbrances and
reappropriations in the various funds,the
purpose of which is to carry forward into
the fisca! year 2005-06 budget and continue,
in effect, the unexpended balance of
appropriations for fiscal year 2004-05
departmental expenditures as sho~m_ 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
sho~ in Exhibit "E"; and
(3)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 sho~m 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 Counci!; and
E. To fund the Equity Transfer Stabilization Reserve
in accordance with the General Fund Reserves Policy adopted
by the City Counci!.
SECTION 7. The General Fund Equity Transfer
Stabilization Reserve is hereby increased by the sum of
Eight Hundred Twenty-Six Thousand Five Hundred Dollars
($826,500), as sho~ in Exhibit "A", from the Stabilization
Rate Reserves of the Utilities Department Funds as follow:
Electric Distribution $ 308,775
Electric Supply $ 308,775
Gas Distribution $ 104,475
Gas Supply $ 104,475
Total $ 826,500
The General Fund Equity Transfer Stabilization Reserve is
increased to $3,165,500.
SECTION 8. The General Fund Budget Stabilization
Reserve is hereby decreased by the sum of Forty-Seven
Thousand Seven Hundred Forty-Two Dollars ($47,742) as
described in Exhibit "A". This transaction will increase
the balance in the Genera! Fund Budget Stabilization
Reserve to $21,066,000.
SECTION 9. The Electric Supply Rate Stabilization
Reserve is hereby decreased by the sum of Three Hundred
Eight Thousand Seven Hundred Seventy-Five Dollars
($308,775), as described in Exhibit "A". This transaction
will reduce the balance in the Electric Supply Rate
Stabilization Reserve to $44,199,000.
SECTION i0. The Electric Distribution Rate
Stabilization Reserve is hereby decreased by the sum of One
Hundred Ninety-One Thousand Two Hundred Ninety-Eight
Dollars ($191,298) as described in Exhibit "A". This
transaction will reduce the Electric Distribution Rate
Stabilization Reserve to $13,519,000.
SECTION ii. The Gas Supply Rate Stabilization
Reserve is hereby decreased by the sum of One Hundred Four
Thousand Four Hundred Seventy-Five Dollars ($104,475) as
described in Exhibit "A". This transaction wil! decrease
the Gas Supply Rate Stabilization Reserve to $3,821,000.
SECTION 12. The Gas Distribution Rate Stabilization
Reserve is hereby decreased by the sum of Eighty-Seven
Thousand Forty Dollars ($87,040) as described in Exhibit
"A". This transaction will decrease the Gas Distribution
Rate Stabilization Reserve to $4,023,000.
SECTION 13. The Water Rate Stabilization Reserve is
hereby increased by the sum of Eight Thousand Six Hundred
Ninety-Nine Dollars ($8,699) as described in Exhibit "A".
This transaction will increase the Water Rate Stabilization
Reserve to $5,217,000.
SECTION 14. The Refuse Fund Rate Stabilization Reserve
is hereby increased by Seven Thousand Three Hundred Two
Dollars ($7,302) as described in Exhibit "A".This
transaction will increase the Refuse Fund Rate
Stabilization Reserve to 83,842,000.
SECTION 15. The Wastewater Treatment Rate
Stabilization Reserve is hereby increased by Five Thousand
Two Hundred Fifteen Dollars ($5,215) as described in
Exhibit "A". This transaction wi!l increase the Wastewater
Treatment Rate Stabilization Reserve to $1,882,000.
SECTION 16. The Wastewater Collection hate
Stabilization Reserve is hereby increased by Four Thousand
Six Hundred Fifty-Three Do!lars ($4,653) as described in
Exhibit "An. This transaction will increase the Wastewater
Collection Rate Stabilization Reserve to 84,917,000.
SECTION 17. The Storm Drainage Rate Stabilization
Reserve is hereby increased by Two Thousand One Hundred
Thirty-One Dollars ($2,131) as described in Exhibit ~’A".
This transaction wil! increase the Storm Drainage Rate
Stabilization Reserve to $330,000.
SECTION 18. The Technology Fund, an internal service
fund, Retained Earnings is hereby decreased by Two Hundred
Thirteen Thousand Three Hundred Seventy Dollars ($213,370)
as described in Exhibit "A". This transaction will decrease
the Technology Fund Unrestricted Retained Earnings to
$7,752,000.
SECTION 19. Adjustments to various Capital Improvement
Projects are made as sho<~ in Exhibit "H" These changes
will have no impact on reserve balances.
SECTION 20. The sum of Ninety-Eight Thousand Two
Hundred Dollars ($98,200) is hereby transferred from the
General Fund to the Community Development B!ock Grant
(CDBG) Fund, a special revenue fund, as described in
Exhibit "A". This transfer is necessary to cover a cash
shortfall in the CDBG Fund that is due to a smaller than
anticipated reimbursement from the federal government CDBG
program for costs incurred in past years.
SECTION 21. Adjustments to correct the mid-year
transaction for COPS Funding are made by moving amounts
from the Genera! Fund to the Law Enforcement Services Fund,
as sho~ in Exhibit "A". These changes will have no impact
on reserve balances.
SECTION 22. Upon completion of the independent audit,
detailed financial statements reflecting the changes made
by the Sections 7 through 17 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 Pa!o Alto and in accordance with generally
accepted accounting principles.
SECTION 23. As specified in Section 2.28.080(a) of
the Pa!o Alto Municipa! Code, a two-thirds vote of the City
Counci! is required to adopt this ordinance.
SECTION 24. The Council of the City of Palo Alto
hereby finds that the enactment of this ordinance is not a
project under the California Environmenta! Quality Act and,
therefore, no environmental impact assessment is necessary.
SECTION 25. As provided in Section 2.04.330 of the
Pa!o Alto Municipal Code,this ordinance shall become
eff ~--ec~_ve upon adoption.
INTRODUCED ~_\~D PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED:
City Clerk Mayor
APPROVED AS TO FOP~:City Manager
City Attorney Director of A6ministrative
Services
GENERAL FUND
Exhibit A
CITY OF PALO ALTO
2004-05 YEAR END BUDGET SUN1MARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
10200000 ~0520
10200000 20530
10200000 20600
10200000 20600
10200000 20600
10200000 20600
617,550 GFTSR year-end transfer from Electric Fund
208,950 GFTSR year-end transfer from Gas Fund
5,125 Return balance of closed CIP TE-86014
157 Return balance of closed CIP TE-99014
37,554 Return balance of closed CIP TE.02012
7,622 Return balance of closed CIP TE-96018
70248003
Source Changes
15370
Correct mid-year transaction for COPS Funds by moving amount
(100.000) to Law Enforcement Services Fund from General Fund
776,958
10200000 40220
Transfer from the General Fund to CDBG Fund to cover prior
98,200 years’ expenses not reimbursed by the federal government
70248003 31230
Correct mid-year transaction for COPS Funds by moving amount
(40,000) to Law Enforcement Services Fund from General Fund
70248003 32060
Correct mid-year transaction for COPS Funds by moving amounl
(48,000) to Law Enforcement Services Fund from General Fund
70248003 35600
Correct mid-year transaction for COPS Funds by moving amount
(1,500) to Law Enforcemenl Services Fund from General Fund
Correct mid-year transaction for COPS Funds by moving amount
(10,500) to Law Enforcement Services Fund from General Fund7024800339770
Use Changes (1.800)
Net Changes To (From) Reserves 778,758
Fund Balancing Entries
10200000 38220 (47,742) Budget Stabilization Reserve
10200000 383i0 826.500 Transfer Stabilization Reserve
SPECIAL REVENUE FUND
Transfer from the General Fund to CDBG Fund to cover prior
23200000 20110 98200 years’ expenses not reimbursed by the federal government
Correct mid-year transaction for COPS Funds by moving amount
702,18003 15370 100.000 to Law Enforcement Services Fund from General Fund
Source Changes 198,200
70248003 31230
70248003 32060
Correct mid-year transaction for COPS Funds by moving amount
40,000 to Law Enforcement Services Fund from General Fund
Correct mid-year transaction for COPS Funds by moving amount
48,000 to Law Enforcement Services Fund from General Fund
70248003 35600
Correct mid-year transaction for COPS Funds by moving amount
1 500 to Law Enforcement Services Fund from General Fund
70248003 39770
Use Changes
Ne~Changes To (From) Resewes
Fund Balancing Entries
23200000 38500
Correct mid-year transaction for COPS Funds by moving amount
10.500 to Law Enforcement Services Fund from General Fund
100,000
981200
98.200 Changes in CDBG Fund Balance
Page 1 of ~
Exhibit A
CITY OF PALO ALTO
2004-05 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
INTERNAL SERVICE FUNDS
40070001 20520 (82,000) Correct transfer from CIP TE-05001 to CIP EL-05002
Source Changes (82.000)
40070001 40110 5,125 Return balance of closed CIP TE-86014
40070001 40110 157 Return balance of closed CIP TE.g9014
40070001 40110 37.554 Return balance of closed CIP TE-02012
40070001 40510 5,215 Return balance of closed ClP TE-02012
40070001 40520 30,251 Return balance of closed CIP TE-02012
40070001 40530 14,604 Return balance of closed CIP TE-02012
40070001 40540 3,129 Return balance of closed CIP TE-02012
40070001 40570 5,215 Relurn balance of closed ClP TE-02012
40070001 40550 7,302 Return balance of closed CIP TE-02012
40070001 40560 1,043 Return balance of closed CIP TE-02012
40070001 40110 7,622 Return baJance of closed ClP TE-96018
40070001 40510 3,484 Return balance of closed CIP 3"E-96018
40070001 40520 5,226 Return balance of closed ClP TE-960t8
40070001 40530 2,831 Return balance of closed CIP TE-96018
40070001 40540 1,524 Return balance of closed ClP TE-96018
40070001 40560 1,088 Return balance of ctosed CIP,TE-96018
Use Changes 1311370
N~t C,~n£es To (From) Reserves , (2~,~:370! ....
Fund Balancinq Entries
40070001 38300 (213.370)
Page 2 of ,I
Exhibit A
CITY OF PALO ALTO
2004-05 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
ENTERPRISE FUNDS
20000020 20800 30,251 Return balance of closed CIP TE-02012
20000020 20600 5,226 Return balance of closed CIP TE-96018
Source Changes 35,477
20000020 40110 308,775 GFTSR year~end transfer to General Fund
20000030 401 i0 308,775 GFTSR year-end transfer to General Fund
20000020 40600 (82.000) Correcl transfer from CIP TE-05001 to CIP EL-05002
Use Changes 535,550
Net Changes To (From) Reserves (500:073)
Fund Balancin£ Entries
20000030
20000020
38170 (308.775) Rate Stabilization Reserve
38040 (191,298) Rate Stabilization Reserve
20000040 20600 14,604 Return balance of closed CIP TE-02012
20000040 20600 2,831 Return balance of closed CIP TE-96018
Source Changes 17.435
20000040 40110 104.475 GFTSR year-end transfer to General Fund
20000050 40110 t04,475 GFTSR year-end transfer to General Fund
Use ChanQes 208 950
Net Changes To (From) Reserves (191,515)
Fund Balancing Entries
20000040 38040 (87.040) Rate Stabilization Reserve
20000050 38170 (104,475) Rate Stabilization Reserve
20000060 20600 5,215 Return balance of closed CIP TE*02012
20000060 20600 3.484 Return balance of closed CIP TE-96018
Source Changes 8;699
Use Changes 0
Net Changes To (From) Reserves 8,699
Fund Balancing Entries
20000060 38040 8,699 Rate Stabilization Rese~e
Page 8 of z
Exhibit A
CITY OF PALO ALTO
2004-05 YEAR END BUDGET SUMMARY
DETAIL CHANGES TO THE AD,JUSTED BUDGET
50050001 20600 7,302 Return balance of closed CIP TE-02012
Source Changes 7.302
Use Changes 0
Net Changes To From) Reserves 7,302
Fund Balancing Entries
50050001 38040 7,302 Rate Stabilization Reserve
50060001 20600 5,215 Return balance of closed CIP TE-02012
Source Changes 5;215
Use Chapges 0
5,215
5.215 Rate Stabilization Reserve
Net Changes To (From) Reserves
Fund Balancinq Entries
50060001 38040
20000070 20600 3,129 Return balance of closed CIP TE-02012
20000070 20600 1.524 Return balance of closed ClP TE-96018
Source Changes 4,653
Use Changes 0
Net Changes To (From) Reserves 4,653
Fund Balancing Entries
20000070 38040 4,653 Rate Stabilization Reserve
50070001 20600 1.043 Return balance of closed CIP TE-02012
50070001 20600 1.088 Return balance of closed CIP TE-96018
Source Changes 2,131
Use Changes 0
Net Changes To (From) Reserves 2,13!
Fund Balancing Entries
50070001 38040 2,131 Rate Stabilization Reserve
Page 4 of 4
Exhibit B
2004-05 REAPPROPRIATION REQUESTS
GENERA_L FUND
INTERNAL SERVICE FUND
SPECIAL ~VENUE FUND
CAPITAL IMPROVES~NT FUND
TOTAL
Total Requests
$ 612,000
$1,280,000
246,321
$ 319,942
S2,458,263
Total Recommended
$ 267,000
$ 525,000
$ 94,322
$ 285,105
$1,171,427
$
AMOUNT INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETING IN 2004-05 STATUS
Planning Department
12,000
$70,000
$=_,000
Zoning Ordinance
i Update
Stud5, of sites suitable
for auto dealership
zoning, redevelopment
opportunities, land use
studies of the golf
course
South E1 Camino Real
CalTrans Master
Design Schematic
This reappropriation is being requested because
of the need for additional studies and outreach
has resulted in project delays. This project is
scheduled for completion at the end of 2005.
Due to the scale of this project, staff expects
further requests for additional study and
outreach requiring resources beyond what is
I available in the 2005-06 budget.
This reappropriation is being requested because
the auto dealership zoning, redevelopment
opportunities, and land use studies of the golf
course were projects begun at City.’ Council
direction late in the 2004-05 fiscal year. and
were not anticipated in the 2005-06" x~o;k plan.
Fundina for unanticipated Plannino. projects for
2005-06 has been cut. Funds should be
reappropriated from this fiscal year.
This reappropriation is being requested because
this project has been delayed during
discussions x~ith Caltrans to ensure new
proposed regulations for E1 Camino Real would
accommodate the Cib"s design schematic.
Discussions are nearly, complete, and staff
intends to complete the project next fiscal year.
Recommended $112,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $70,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Recommended $25,000. There is
sufficient balance in the .~004-0_
budget that can be reappropriated.
Page 1 of 3
$
AMOUNT
Planning Department, continued
...... $60,000
COMMENTS/REASONS
FOR NOT COMPLETING IN 2004-05 STATUS
Completion of [ This reappropriation is bein~ requested because
Downtown North money for the Downtown North traffic calmin~
project was reappropriated from 2003-04. The
trial is complete, and an evaluation is in
, progress. This budget is necessary for an)
changes to the project that will be required
! after the evaluation and neighborhood
i outreach.
Recommended $60,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
’Public Works Department ...............
$525,000 This reappropriation is being requested because
of a vacancy in a key position (Fleet Services
Coordinator), and the training status of our new
Assistant Fleet Manager, the Fleet Manager has
not been able to devote a sufficient amount of
time to vehicle replacement projects.
2004-05 Vehicle
Replacement Projects
Recommended 5525,000. There is
sufficient balance in the 2004-05
budget that can be reappropriated.
Equipment Management’s primal, contract %r
truck body and equipment fabrication and
installation expired early in 2004-05. Going
forward, Equipment Management determined
that an RFP process would be the best option
for selecting a new vendor. The development
of this RIzP has taken some time, however, it is
expected that we will have a contract with a
new vendor sometime in July. In the
meantime, current projects have been delayed.
$
AMOUNT INTENDED USE
COMMENTS/REASONS
FOR NOT COMPLETING IN 2004-05 STATUS
Planning Department - B3IR Fund
$94,~,_.~BMRUnit This reappropriation is being requested because two Recommended $94,322. There is
Preservation f BM’R units were foreclosed on this x, ear: the City is sufficient balance in the 2004-05
Program exercising its option to purchase and resell the BMR budget that can be reappropriated.
units to maintain their affordability. One purchase was
already, completed; the other will be completed before
the end of June. Budget for maintenance and
rehabilitation costs must be reappropriated.
Page,. "~ of 3
$
CIP AMOUNT INTENDED USE FOR NOT COMPLETING IN 2004-05 STATUS
Administrative Services - Technology
.... ~E-00021 $174,745 I NewT~iephone
Fund
System CIP
This reappropriation is being requested
because this project was delayed due to
priority being placed on the SAP project,
which occupied most of the IT staff.
These additional funds will be required
for the purchase and installation of a new
phone system.
Recommended $174,745. There is
sufficient balance in the -~ 00-,-0_ budget
that can be reappropriated.
Planning
PL-01017 $100,000
PL-02023 $10,360
ECtL,Churchill
Intersection CIP
South E1 Camino
Master Schematic
Design CIP
This reappropriation is being requested
because this budaet funds the engineeringdesign work for ~ rib_tat-turn lane at the E1
Camino ReaL!Churchill intersection. The
design work is scheduled for 2005-06;
following design work, funding for the
project itself will be requested.
i Recommended $100,000. There is
sufficient balance in the 2004-05 budget
that can be reappropriated.
This reappropriation is being requested
because this project was delayed due to a
lack of additional fundin~ and a shift in
priorities for the Division. Funds are not
set aside in 2005-06 for this project; this
reappropriation will enable the
Department to establish a memorandum
of understanding with CalTrans,
finalizing $270,000 of previously
performed design work.
Recommended $10,360. There is
sufficient balance in the 2004-05 budget
that can be reappropriated.
Page 3 of 3
Exhibit C
City of Palo A lto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2004-05
AC-03005"
AC-99010
PE-85008"
PE-99007
PO-03006"
Lucie Stern Community Theater Stage Floor ReplacerT 2,832
Community Theater Renovations 467
Public Building Structure 491
San Mateo Drive Bridges 21,023
Animal Service Protective Holding Kennel 160.000
Total 184,813
EL-01002 N Shampton System
EL-02011 Electric Utility GIS
Total
23,515
31,228
$54,743
WS-01009
WS-01013
WS-02017
WS-80016
WS-87049
WS-89045
WS-94051
WS-97004
WS-99015
Mayfield Res. Roof
Irrigation Meter Ins
Water Bottling Equipment
Water Main Replacement
Water Reservoir Improvement
GIS Hardware Acquistion
Water Gas & Storm
Wtr. Wells Storm Dist
WMR Phase !3
Total
14,950
59.335
24,430
15,964
4,541
4,307
16,062
40,443
1,207
$181,239
GS-00002
G$-01004
GS-01020
GS-03008
GS-04010
GS-80018
GS-89045
GS-94051
GS-99011
GMR Phase 10
G.MR Phs$~ 11 ........
Gas Main Dir Boring
Polyethylene Fusion
G&W Fac Security
Gas Main Replacement
GIS Hardware Acquision
Water Gas & Storm
Gas Station #3
Total
48
!,322
0
12,413
828
11,991
14,930
3,185
$46,400’
WC-04013 New Vehicle Video Truck
WC-89045 GIS Hardware Acquision
WC-99014 WWC Sys Rehab Phase 10 & 11
Total
9,138
314,970
S324.108
Pro]ecIs are closed. No expenditures were incurred in the current fiscal year.
Exhibit C
City of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2004-05
WQ-02150 KW Emerg Generator MP
WQ-95014 Secondary Clarifer
WQ-95040 Interc Maint Rep MPN
WQ-98005 Effluent Line Modification
RF-45900 ECS Permitling
Total
Total
Total
SD-94051 Storm Drain Station
TE-02012"
TE-86014"
TE-96018"
TE-99014"
41,181
9,587
33,059
43,784
$127,611
591.453
$591,453
2,301
$2.301
Desktop Automation 104.317
Financial Database Upgrade 5,125
GIS Application Information & Communication System 21.277
Acquisition of New Computers 157
Total $130,876
¯ Projects are closed No expenditures were incurred in the current fiscal year.
EXHIBIT D
Revenues
Property Taxes
Sales Taxes
UtJlJU 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
,,E,xpenditures
Administrative DepaEments
Communib Services
Fire
[L i brary
Planning
Police
PuNic Works
Non-Departmental School Site
Add: Operating Trans Out
2004-05
Adopted
Budget
13,600
18,335
7,392
5,800
9,526
18,296
4,397
9,309
11,776
3,743
14,6t9
15,222
19,618
18,837
5,251
8,839
22,422
11,262
8,063
42,383
2004-05
Adjusted
Budget
16,093
18,100
7,226
6,000
6,382
18.324
3,137
10,054
11,845
3,938
14,682
3,244
16,803
20,167
19,278
5,229
I0,101
22,821
1!,526
6,520
42,809
2004-05
CAFR Basis
Rev/Exp
2004-05
Allocated
Charges
2004-05 2004-05
Encum+Budgetary’
Reapprop Rev/Exp
] 6,700
19,308 nia
7,270
5,686
7,634
17,154
3,179
481 9,624
12,016 r~a
3,456 (387)nia
!5,425
I4,538
16,275
17,617
4,803
8,690
21,059
9,062
8,677
42,584
3,244
16,700
19,308
7,270
5,686
7,634
17,154
3,179
10,t05
12,016
3,069
15,425
3,244
707 1,099 16,344
2,910 622 19,807
1,435 212 t9,264
312 !03 5,218
411 955 10,056
1,468 181 22,706
1,959 396 11,417
8,677
42,584
2004-05
Variance
607
!,208
44
(314~
1,252
(~,170
42
5!
171
(869~
743
460
360
14
11
45
i14
109
(2,157)
225
CAFR Reconciliation:Current ),ear encumbrance!reappropriations
Prior year encumbranceireappropriations
Current year stores adjustment
Prior year stores adjustment
CAFR Net Income
3,569
(3,244)
(48)
14
(34,991)
Paae 1 of 1
Exhibit E
CAFR Fund Balance
Less: Encumbrances
Reappropriations
Adjustment for Stores Operations
Balance
@ 06/30/04
Net From
Operations
Balance
@ 06/30/05
66,825 (34,995)31,830
(2,973)(428)(3,401)
(402)135 (267)’
(14)(34)(48)
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
Notes Receivable Reserve
Stores Inventory Reserve
Unrealized Investment Gain/Loss Reserve
Reserve For Equity Transfer Stablization
Reserve For Emergencies
Adjustment for Stores Operations
21,453
35,881
1,256
2,520
0
2,338
0
(14)
(388)
(35,881)
(23)
177
0
827
0
(34)
21,066
0
1,234
2,697
0
3,165
0
(48)
Adjustment for Stores Inventory Encumbrance
Adjustment for Stores Operations
0
(48)
Page 1 of 1
Exhibit F
REVENUE
2003-04
AcUEnc
Reapprop
Water sales 21,477
Bond Proceeds
Other revenues 430
Bonded Reappro!Encum 5,291
Restricted Bond Proceeds
Reappropriations I Enc 6,573
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
23,168 20,771 (2,397)
1,188 1,095 (93}
5.007 5,007
10,778 10.778
EXPENSES
Purchases 7,453
Other Expenses 11,338
TOTAL OPERATING EXPENSES 18,79!
Capital Expenses !9.176
7~578 6,719 859
11,966 1 ! ,627 339
19.544 18,346 1,198
20,807 20,191 616
REVENUE
2003-04
AcUEnc
Reapprop
Electric retail sales 68,675
Electric wholesale sakes 4.424
Other revenues 20,792
Reappropriations I Enc 15,928
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor,)
70,462 71,666 1,204
2.641 3,156 515
16.721,20,082 3,361
16,456 16,456
EXPENSES
Purchases 41,322
NCPA & TANC Debt Svc 4,744
Other Expenses 37.527
TOTAL OPERATING EXPENSES 83.593
Capital Expenses z0.~04
41,043 41,0i0 33
5,194 4,928 266
54,939 53,199 1,740
101.176 99.137 2,039
24.250 17,989 6.261
Page i of ~
Exhibit F
REVENUE
2003-04
Act/Enc
Reapprop
Gas retail sales 24,162
Gas wholesale sales
Other revenues 2.747
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Eric (Unfavor.)
31.691 29,890 (1,801)
1,48t 1.960 479
Bond Proceeds ....
Bonded Reappro!Encum 3,260 I 3,858 3~858 -
Restricted Bond Pr, oceeds 1,968 i ---Reappropriations , Enc 1,516I !,234 1,234 -
EXPENSES
Purchases 15.997
Other Expenses i2.980
TOTAL OPERATING EXPENSES 28,977
Capital Expenses 9,860
20,601 t8,916 1,685
I5,327 14.354 973
35,928 33,270 2,658
9,008 9,349 (341
2003-04
AcUEnc
Reapprop
REVENUE
Revenues I2.553
Reappropriations / Eric 7.948
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Eric (Unfavor.)
13.452 12,468 (984
t0,324 10,324
EXPENSES
Sewer Treatment Exp 5.304
Operating Expenses 3,799
TOTAL OPERATING EXPENSES 9,103
Capital Expenses 12,613
Principal Payments 47
6,109 5,906 203
3,476 2~855 621
9,585 8,761 824
13,468 11,748 1.720
49 49
Page 2 of ,*
Exhibit F
REVENUE
2003-04
AcUEnc
Reapprop
Operating Revenues 14,729
Restricted Bond Proceeds 60
Reappropriations I Enc 2,866
Bonded Reappro/Encum 189
EXPENSES
Operating Expenses 13.276
TOTAL OPERATING EXPENSES 13,276
Capital Expenses 5,646
Principal Payments 299
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
20,433 16.963 (3,470)
72 72
5,091 5,091
92 92
15,659 15,057 602
15.659 15,057 602
9.591 9,498 93
316 318 (2)
2003-04
AcUEnc
Reapprop
REVENUE
Revenues 21,930
Reappropriations /Enc 2.527
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
25,177 23.978 (1,199)
1,783 1.783
EXPENSES
Payments to PASCO 8,356
Other Expenses 17,174
TOTAL OPERATING EXPENSES 25,530
8,108 7,943 165
21,503 19,657 1,846
29.6I!27.600 2,011
Page 3 of a
Exhibit F
REVENUE
2003-04
AcUEnc
Reapprop
Revenues.2481
Reappropriations / Enc 202
Bonded Reappro/Encum
Restricted Bond Proceeds
EXPENSES
Operating Expenses 2.490
TOTAL OPERATING EXPENSES 2,490
Capital Expenses 310
Principal Payments 290
2004-05 2004-05 $ Variance
Adiusted Reapprop Favorable
Budget Actual/Eric (Unfavor.)
3,078 2,957 (121)
281 281
2,775 2,710 65
2,775 2.710 65
242 229 13
305 305 -
2003-04
AcUEnc
Reapprop
REVENUE
Revenues 629
Reappropriations /Enc 23
2004-05 2004-05 $ Variance
Adjusted Reapprop Favorable
Budget Actual/Eric (Unfavor,)
1~045 753 (292
t I
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
658
658
1.021 726 295
1,021 726 295
Page 4 of 4
Exhibit G
FISCAL YEAR 2004-05
Beginning Reserves
To (From) Reserves
Adj Budgeted Reserves
% of Budgeted Reserves
Water Electric Gas WWC ~Refuse Storm Ext Svc
$7,307 $141,993 $14,455 $3,278 $6,344 $6,725 $336
(886)(5,766)(5,677)2,234 (2,655)(2,293)(6)28
7,314 127,648 11,213 3,281 6,277 6,731 338 3
88%107%78%168%59%66%98%1000%
Total
$180,440
(1<o21)
162,802
102%
FISCAL YEAR 2004-05
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 - TT
External Service - HR
Water Electric Gas W~NC WWT Refuse Storm Ext Svc
S5,217
5,217
1,204
44,199
13,519
57,718
2,509
72,963
668
145
2,224
$4,9,17 S1,882 $3,842 $330 $0
3,821
4,0~3
7,844 4,917 1,882
934 595 1,807
3,842 330
59O
3O
Total
$16,188
48,020
17,542
81,750
7,049
72,963
668
59O
145
2,224
30
FISCAL YEAR 2004-05
Beginning RSR
To(from) RSk
Water
$6,178
(961)
Electric Gas WWC WWT Refuse Storm Ext Svc
$66,119 $13,525 $2,723 $4,625 $6,135 $336 $0
(%401)(5,681)2,194 (2,743)(2,293)(6)
RSR Maximum 14,211 48,641 !6,786 7,704 4,188 4,107 330 N/A
RSR%of Maximum 37%119% 47% 64% 45% 94% 100% N/A
Total
S99,641
(17,891)
95,637
85%
Page 1 of 1
Exhibit H
CiO’ of Palo Alto
CAPITAL IMPROVEMENT PROGRAM PROJECTS
2004-05 Year-End Adjustments
Title
General Fund
Project
Number I Revenue
San Antonio Medians PE-00! 04
Medianlls}a ndsiP’,anters PG-00009
EieanoriHoover Park PE-00106
Improvements
CoItege Terrace Parks PE-00110
Improvements
Park Facilities Improvements PG-000i0
Electric Fund
Total
Etecmc & WGW Est EL-03013
Electric S},stem Improvements EL-98003
Total
Expense Funding Source
23 352
(23,352)
15OOO
10.000
(25000)
0
23552 Infrastructure Reserve
(23,352) Infrastructure Resewe
15 000 Infrastructure Reser,.’e
10000 Infraslructure Reserve
(25,000) Infrastructure Rese:-~e
0
10493 EiectricFund Distribution
RSR
(i 0,495) Electric Fund Distribution
RSR
0
Comments
Project Management Change form
CSD to PWD
Project Management Change form
CSD to PWD
Project Management Change form
CSD to PWD
Project Management Change form
CSD to PWD
Proieci Management Change form
CSD. to PWD
To transfer funding between
projec~,s
To transfer funding betv.’een
projects
Water Fund
ReserTo~r Booster WS-0!010
’¢’,~GW Utilib, GIS WS.02014
Distribution SystemYVaterQuahty WS-01011
WGW Utili.b GIS WS-02014
WMR Project 15 WS-04001
Booster Station Improvements WS-01012
WMR Proiect 18 WS*04001
Total
135721 Water Fund RSR
(135721) Water Fund RSR
27,226 Water Fund RSR
(1,:279) Water Fund RSR
(12947) Water Fund RSR
10,323 Water Fund RSR
Water Fund RSR
(i 0 323)
0
To transfer funding be:’,,;een
projects
To transfer funding between
projects
To transfer funding between
pro!ects
To transfer funding bet,,,,een
pro!ects
To transfer funding between
projects
To transfer funding between
pro!ects
To transfer funding between
projects
Page 1 of i
Attachment B
C~ of Pato A#o, Ca#for~#a
200,4-2005
Comprehensive
Annual inancia[
Fiscal Year Et.~ded Juice 30, 2005
This document is available in the Administrative Services Dept., in book or CD-ROM format.
ATTACHMENT 2
Exhibit G
REVISED
FISCAL YEAR 2004-05
Beginning Reserves
To (From) Reserves
Adj Budgeted Reserves
% of Budgeted Reserves
Water Electric Gas WWC WWT Refuse Storm Ext Svc
$7,307 $141,993 $14,455 $3,278 $6,344 $6,725 $336 $2
(886)(5,766)(5,677)2,234 (2,655)(2,293)(6)28
7,314 127,648 11,213 3,281 6,277 6,731 338 3
88%t07%78%168%59%66%98%1000%
Total
$180,440
(1S,021)
162,802
102%
FISCAL YEAR 2004-05 Water Electric Gas WWC ww-r Refuse Storm Ext Svc
Rate Stabilization
General RSR
Supply RSR
Distribution RSR
Total RSR
Emergency Plant Replace
Calaveras
Underground Loan
Conservation Loan
Water Resources Board
Shasta rewind Loan
Central Valley Project
Public Benefit Program
External Service - ~T
External Service- HR
$5,217 $4,917 $1,882 $3,842 $330 $0
44,199 3,821
13,519 4,023
5,217 57,718 7,844 4,917 1,882 3,842 330
1,204 2,509 934 595 1,807
72,963
668
145
2,224
59O
3O
Total
516,188
48,020
17,542
81,750
7,049
72,963
668
59O
145
2,224
3O
FISCALYEAR 2004-05 Water Electric Gas WWC WWT Refuse Storm Ext Svc
Beginning RSR $6,178 $66,119 $13,525 $2,723 $4,625 $6,t35 $336 $0
iTo(from) RSR (961)(8,401)(5,681)2,194 (2,743)(2,293)(6)-
Total
599,641
(17,891]
RSR Minimum 7,105 24,321 8,393 3,852 2,094 2,053 N/A
RSR Maximum 14,211 48,641 16,786 7,704 4,188 4,107 330 N/A
RSR % of Maximum 37%119%47%64%45%94%!00% NiA
47,81[
95,637
85%
Page 1 of 1