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HomeMy WebLinkAboutStaff Report 453-10TO: HONORABLE CITY COUNCIL ATTENTION: FINANCE COMMITTEE FROM: CITY MANAGER DATE: DECEMBER 21, 2010 REPORT TYPE: ACTION DEP ARTMENT: ADMINISTRATIVE SERVICES CMR: 453:10 SUBJECT: Recommendation Regarding Adoption of Ordinance Authorizing Closing of the Budget for the Fiscal Year Ending June 30, 2010, 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 review, provide input, and forward the attached ordinance (Attachment A) and associated exhibits to the City Council for its approval to: close the Fiscal Year (FY) 2010 Budget; authorize re-appropriation of FY 2010 funds into the FY 2011 Budget (Exhibits A & B); close completed capital improvement projects (Exhibit C); and transfer remaining balances to the appropriate reserves (Table I for General Fund and Exhibits E & F 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 At the conclusion of each fiscal year (July-June) the City must close the financial system for the year and produce year-end financial reports. The reports along with financial data are reviewed by Maze & Associates, an audit firm hired by the City Auditor. Maze & Associates, produces a written assessment of the City'S year-end fiscal condition and this, together with other financial infonnation, are what fonn the City's Comprehensive Annual Financial Report. For FY 2010 staff gave the Finance Committee a high-level, preliminary FY 2010 year-end update of fiscal condition on Oetober 5, 2010 (Attachment C CMR: 369: 10). There are no major differences between the preliminary report and this report. CMR:453:IO Page I of II The attachments to this report provide the necessary documents for closing the FY 2010 Budget and reauthorizing FY 20 I 0 funds for the current FY 20 II. In addition, they provide detailcd information on the City's financial activities for FY 20 I O. This CMR highlights key fiscal issues affecting the City of Palo Alto. The Management Discussion and Analysis (MD&A) chapter of the CAFR (Attachment B) also provides a discussion and analysis of the City's current fiscal health and includes financial statements, and performance information that is compared to the prior year, and capital asset and debt administration data. DISCUSSION Economy Like other cities throughout the eountry, the "Great Recession" adversely affected the City's General Fund resources. High unemployment, the housing crisis, and low consumer spending have hit City revenues hard. Although there are preliminary signs of stabilization in some revenue categories sueh as transient occupancy taxes, the City continues to face declines or uncertain revenue streams in its property, sales, and property transfer tax receipts. Challenges on the expense side include: rising pension and medical costs; a significant retiree medical liability; and a substantial infrastructure backlog. The City continues to be proactive as it struggles to align revenues and expenses through service and program cuts, revenue enhancements, and redueing expenditures through employee compensation and benefit changes. In 2010, the City's General Fund reduced services, deleted full-time positions, pared benefits and drew modestly on reserves to balance its budgct. For FY 2011, tlje City closed a $7.3 million GF budget gap. At the end of FY 2010, the City had $27.4 million or 19.7 percent of its budgeted expenditures and operating transfers for FY 2011, in its General Fund Budget Stabilization Reserve. A detailed diseussion of the economy and FY 2010 revenues also is included in the CAFR MD&A page 3- 4. In addition, staff will present the 10 year Long Range Financial Forecast to the Finance Committee in Febnlary 2011. Results by Fund General Fund . The final FY 2010 result for the General Fund is a net loss of $1.8 million, which represents the difference betwcen revenues and expenditures for one fiscal year. The difference between revenues and expenditures, either a gain or loss changes the Budget Stabilization Reserve (BSR), a component of the fund balance. FY 20 I 0 revenues were $4 million less than prior year primarily from reduced sales tax revenue. Other financial transactions impact a fund's balance sheet, which report the fund's assets, liabilities and fund balance. The General Fund balance consists of a number of reserves; the BSR, encumbrances, notes and loans, inventory, and prepaid items, unrealized gain on investment, and reappropriations. The $1.8 million loss, results in a draw on the BSR. In addition to the $1.8 million draw on the BSR, the BSR balance will inerease or decrease as the balances in the other reserves change. The net effeet of the draw on the BSR of $1.8 million and transfers in from other reserves of$4.4 million is an increase of$2.6 million resulting in an ending BSR balance of $27.4 million or 19.7 percent of budgeted expenditures and operating transfers for FY 2011. This percentage is within the Council approved guidelines of 15 to 20 percent of budgeted expenditures. CMR: 453:10 Page 2 ofll At fiscal yearend, the fund balance for the General Fund totaled $41.5 million. This IS comprised of reserves for: Table 1 GENERAL FUND RESERVE SUMMARY ($OOOs) FISCAL YEAR 2010 IRtrlr"~ Inventory Reserve I Pnen"ld Reserve IUnlresllize,d Investment Gain/Loss Reserve IResel'\/e For Equity Transfer Stablization CMR: 453:10 Balance 06/30/09 24,747 1,528 3,173 1,775 2,441 3,636 Net From 2,649 (98) 488 (285) 1,076 (3,636) Balance 06/30/10 27,396 1,430 3,661 1,490 3,517 o Page30fll The following graph provides a snapshot of the General Fund BSR balance and percentage of budgeted expenditures for the last ten years: Graph 1 ------------------------------------------------- General Fund BSR & Percent of Budgeted Expenditures FY 2001-2010 (in millions) $30r-------------------------------------------------------------------------------1 $26 I-~==~-------------------------------- $20 $15 $10 $5 2001 2002 2003 2004 2005 2006 Fiscal Year 2007 2008 2009 2010 l $0 ------------------------------------------------------------- CMR: 453:10 Page40fll The following graph provides a five-year comparison of major General Fuhd tax revenues, Graph 2 Major General Fund Tax Revenues Fiscal Years 2006-2010 (in thousands) $31,000 1---------"---,;::------------- $26,000 $21,000 $16,000 $11,000 - $6,000 $1,000 CMR: 453:10 Page 5 of II The following graph provides a five-year comparison of General Fund department expenditures. 3 $35.000 . General Fund Department Expenditures Fiscal Years 2006·2010 (in thousands) (I) FY 2009 postponed a budgeted $4,8 million transfer to the Technology Fund, This one-time deferral was the General Fund share of technology cost allocations and it will be add,'essed in a four year funding plan for all departments exeept Fire, FY 2010 Fire Department expenditures include $1.2 million cost alloe.tions to the Technology Fund for FY 2009, Details of the General Fund are discussed in the MD&A pp, 15·19, The FY 2010 yearend Budget Amendment Ordinance (BAO) includes transfers of unencumbered appropriation balances between General Fund Departments. These reallocations (I) distribute non-departmental offsetting expense for the achieved $1.5 million in salary and benefit savings that resulted from the SEIU contract imposed in October 2009; (2) distribute $1.7 million in attrition savings that was adopted in the midyear budget (CMR 150: 1 0); (3) and reallocate remaining unencumbered appropriations to various departments that fell short after (I) and (2) were complete. 'The table below depicts a before and after view of these General Fund adjustments. Details of these reallocations can be found in the Detailed Changes to the Adjusted Budget (Attachment A, Exhibit A), CMR: 453:10 Page 6 of II Table 2 General Fund Reallocation of Unencumbered Appropriations (in thousands) Budget Remaining BeforeAdj Change After Adj Actual Budget City Attorney $3,383 ($127) $3,256 $3,216 $40 City Auditor 1,095 (20) 1,075 1,057 18 City Clerk 1,608 (65) 1,543 1,474 69 City Council 335 335 319 16 City Manager 2,654 (268) 2,386 2,327 59 Administrative Services 8,859 (807) 8,052 8,048 4 Community Services 22,216 (1,265) 20,951 20,846 105 Fire 26,621 1,576 28,197 28,180 17 Human Resources 2,906 (79) 2,827 2,778 49 Library 6,649 107 6,756 6,623 133 Planning 10,457 (336) 10,121 10,058 63 Police 30,219 (1,066) 29,153 29,090 63 Public Works 14,018 (523) 13,495 13,405 90 Non-Departmental 5,935 2,873 8,808 8,798 10 Transfers out 14,565 14,565 14,637 (72) Total $151,520 $0 $151,520 $150,856 $664 Capital Projects Fund For FY 2010, the Capital Projects Fund reported $25.9 million in expenditures and other uses, an increase of $1.9 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 $83.8 million, an increase of $47.8 million. This increase is primarily from receipt of funds from General Obligation Bonds, issued in June 20 I O. The bond proceeds will finance costs for constructing a new Mitchell Park Library and Community Center, as well as improvements to the Main Library and the Downtown Library. The City is proud to report that it received an AAA credit rating from Standard and Poor's and Moody's. The true interest cost on these bonds was 4.2 percent, which is 1.22 percent lower than originally projected ip 2008 and is an indication of how well the bonds were received in the market. As of June 30, 2010, the Infrastructure Reserve (JR) balance was $8.6 million, an increase of $1.6 million from prior year. The Encumbrance Reserve is $5.9 million, $5.4 million less than the prior year. Reappropriation Reserve balance decreased by $2.5 million from prior year for a total of $15.2 million. A new reserve, Library Bond Project, has a balance of $53.5 million that represents the unused portion of bond proceeds. Bond proceeds are maintained by a fiscal agent and the Library Oversight Committee makes quarterly presentations to the City Council. A number of completed and closed projects with remaining balances at the end of FY 20 10 totaling $108 thousand have been returned to the Infrastructure Reserve. This provides an additional source of revenues to the IR. CMR: 453:10 Pftge70fll Overall, the following summarizes changes to the City's General and Capital Fund reserves: • The General Fund B SR is 19.7 percent of budgeted expenditures and operating transfers for FY 20 II. This percentage is within the Council approved guidelines of 15 to 20 percent and shows a closing balance of $27.4 million, an increase of $2.6 million from the prior year. • Budget transactions included in the attached ordinance decreased General Fund reserves by $7 thousand. • The Infrastructure Reserve has a final balance of $8.6 million at the end of FY 2010. Since there is an infrastructure backlog and need totaling over $500 million, additional steps will be needed to address infrastructure needs in the near future. Enterprise Funds: The Rate Stabilization Reserves (RSR) for the combined Enterprise Funds increased by a net of $28.7 million for an ending balance of $87.9 million. Major changes include an $11.6 million increase in the Water Fund, $6.6 million increase in the Electric Fund, and $5.4 million increase in the Gas Fund. Exhibit F provides the balance changes for all reserve categories for the Enterprise Funds. The City faces ongoing fiscal challenges in the Refuse Fund and they are discussed further in the report. At the end ofFY 2010, a number of Enterprise Fund CIP projects were completed and closed (ExhibiLC). The remaining balanceLof these projects reverted to their respective reserves. Water Fund The Water Fund ended the year with a net income of $7 million, an increase of $2.1 million from the prior year. At fiscal yearend, unrestricted net assets for the Water Fund totaled $28.7 million, whieh inelude $17.0 million for RSR. The Water Fund also has restrieted eash and investments of $27.9 million for the Emergency Water Supply project, funded by a bond issuance. Electric Fund For FY 20 10 the Electric Fund had a net income of $9.4 million compared to a net loss of $7.2 million in the prior year. The increase is mainly due to lower utility purchase cost of $11.8 million. Inc RSR balance is $54.3 million an increase of $6.6 million from the prior year. Gas Fund The Gas Fund ended the year with a net income of $7.9 million, a decrease of $2.6 million from prior year. The decrease is primarily due to a 10 percent rate decrease effective July I, 2009 and an increase in other financing activities of $2.2 million. The RSR has an ending balance of$18.5 million, an increase of $5.4 million from the prior year. Fiber Optics Fund The Fiber Optics Fund had a net income of $2.1 million, a decrease of $300 thousand from the prior year. The ending RSR is $8.3 million an increase of $1.9 million from prior year. CMR: 453:10 Page 8 of II Wastewater Collection Fund The Wastewater Collection Fund had a net income of $4.7 million compared to a net loss of $63 thousand in the prior year. The RSR ended the year with a balance of $6.8 million, compared to $6 million for the prior year. Wastewater Treatment Fund Wastewater Treatment Fund ended the year with a net loss of $1.2 million compared to a net loss of $3.2 million in FY 2009. The net loss is a draw on the RSR, resulting in a negative balance of $12.4 million, compared to a negative $15.6 million for the prior year. A t fiscal yearend, unrestricted net assets for the Wastewater Treatment Fund totaled $11.8 million. This was comprised of reserves for: Table 3 Rate Stabilization Reserve ($12.4) million Reappropriations -Disinfection Facility Improvement Program $14.6 million Reappropriations,-other projects $2.6 million Emergency plant replacement $2.1 million Commitments $4.9 million The negative RSR balance is due to required accounting reserves of $14.6 million for the $20.3 miUion Disinfection Facility Improvement Program. As the Disinfection Facility Improvement Program progresses, the City will be reimbursed with grant and partner revenue and the RSR will move toward a positive position. Refuse Fund For FY 2010 the Refuse Fund had a net loss of $2.7 million, resulting in a draw on the RSR. The prior year had a net loss of $5.4 million, FY 2010 saw a decrease in disposal fee income of $ Ll million, and increased refuse collection costs. The prior year included $3,1 million of additional costs due to an updated forecasted closure costs for the landfill. The ending balance of the RSR as of June 30, 2010 is a negative $4,9 million compared to the prior year negative balance of $2.1 million. The June 30, 2010 cash balance is $8 million, which satisfies the State requirement of $6,7 million for post-closure liabilities. Council and staff are working together to implement changes to the operations and rate strocture to bring the Refuse Fund to a positive reserve position and to maintain the required cash position to satisfy the State requirement and ongoing operations. Storm Drainage Fund The Storm Drainage Fund ended the year with a net income of $2.5 million, a decrease of $900 thousand from the prior year. The RSR had an ending balance of a positive $286 thousand compared to a negative $1.1 million in the prior year. CMR: 453;10 Pase 9 01' II General Benefits and Insurance Internal Service Funds As requested by the Finance Committee in Dec. 2009, the FY 2010 CAFR presents the General Benefits Fund, Workers' Compensation Insurance Program, and General Liabilities Insurance Program as separate funds. Prior to FY 20 I 0, these funds were reported as the General Benefits and Insurance Fund. Retiree Medical Fund and Trust Fund For FY 20 I 0 the City's annual required contribution (ARC) for retiree medical costs is $9.8 million. During FY 2010, the City made direct contributions to CalPERS of $5.5 million in current year retiree premiums, which covered 795 retirees. The City also contributed $1.7 million during FY 2010 toward the California Employers' Retirees Benefit Trust (CERBT), and $1.8 million in early FY 2011 which was accrued for in FY 2010. As ofJune 30, 2010 the balance of the trust, including the contribution made in August 2010 since it relates to the FY 2010 ARC, is $34 million. The balance as of Sept. 30, 2010 reflects improvements in investment earnings. Total contributions from inception of the trust are $38.1 million, investments loss is $188 thousand and administrative cost is $65 thousand for an ending balance as of Sept. 30, 2010 of $37.8 million. The retiree medical liability per the January I, 2009 actuarial valuation was $129.7 million, less the value of the trust, $37.8 million, and direct contributions to CalPERS of $5.5 million leaves a net liability of $86.4 million. The next actuarial valuation of January I, 20 II will be presented to Council in early summer 20 II. RESOURCE IMP ACT Adoption of the attached budget-closing ordinance (Attachment A) allows for the re­ appropriation and carryover of funding from the FY 20 I 0 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 E 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. Exhibit E reflects the changes to and status of major reserves. POLICY IMPLICATIONS This recommendation is consistent with existing City policies. ENVIRONMENTAL REVIEW The action recommended is not a project for the purposes of the California Environmental Quality Act. PREPARED BY: J~ <7~ TRUD EIKENBERRY Accounting Manager, Administrative Services CMR: 453:10 Page 100fli DEPARTMENT HEAD APPROVAL: LALOP Director, Administrative Services CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Budget Closing Ordinance Exhibit A -Detailed Changes to the Adjusted Budget Exhibit B -Fiscal Year 2009 Re-Appropriation Requests Exhibit C -Capital Improvement Projects Completed and Closed in FY 2010 Exhibit D --General Fund Summary Exhibit E -Enterprise Summaries Exhibit F -Enterprise Reserve Summary Attachment B: CAFR Attachment C: CMR: 369: I 0 Fiscal Year 2010 Financial Update as of June 30, 2010 CMR: 453:10 Poge II ofl1 , ATTACHMENT A ORDINANCE NO. xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING CLOSING OF THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2010 The Council of the City of Palo Alto does ordain as follows: SECTION 1. 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 15, 2009 did adopt a budget for fiscal year 2010; and B. Fiscal year 2010 has ended and the financial results, although subject to post-audit adjustment, are now available and are herewith reported in summarized financial Exhibits "AU 1 "B" I "C" I "D" I "Elf I \\F" I and "Go 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 2010 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 between divisions, cost centers, and objects within various departments as authorized by the City Manager. E. Fiscal Year 2010 appropriations which on July 1, 2009 were encumbered by properly executed, but uncompleted, purchase orders or contracts. Page lof 5 ATTACHMENT A SECTION 3. The Council hereby approves adjustments to the fiscal year 2010 budget for Fund Balancing Entries as shown on attached Exhibit "A". SECTION 4. The Council hereby re-appropriates fiscal year 2010 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 2011 budget. ! SECTION 5. The fiscal year 2010 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 2011 budget. SECTION 6. directed: The City Manager is authorized and A. To close the fiscal year 2010 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 ,2010 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 n and move all completed CIP to their respective reserve funds indicated in Exhibit "G"; and C. To establish reserves as shown, in Exhibits "En, "F" and "G" for all Funds as necessary to provide for: (1) A reserve for encumbrances and re­ appropriations in the various funds, the purpose of which is to carry forward into the fiscal year 2011 budget and continue, in effect, the unexpended balance of appropriations for fiscal year 2010 departmental expenditures as shown in Exhibits "E" and "F"; and (2) Reserves for Advances to Stores Inventory, and other accordance with ordinance guidelines as shown in Exhibit Page 2 of 5 Other Funds, reserves in and policy "Ell; and --_ ....... _- ATTACHMENT A (3) A reserve for general contingencies of such amount that the City Council has approved; and (4 ) Reserves for utilities plant other rate stabilization, and accordance with Charter guidelines as shown Exhibit "G u • replacement, reserves in and policy D. To fund the Budget Stabilization Reserve in accordance with the General Fund Reserves Policy adopted by the City Council. SECTION 7. The Public Services Donation Fund is hereby decreased by Twenty Two Thousand Three Hundred Seven Dollars ($22,307) as described in Exhibit "AU. This transaction will change the Public Services Donation Fund Balance to $784,320. SECTION 8. The Child Care Fund is hereby decreased by Seven Thousand Two Hundred Eighty One Dollars ($7,281) as described in Exhibit "Au. This transaction will change the Child Care Fund Balance to $328,987. SECTION 9. The Street Improvement Fund is hereby decreased by Five Hundred Sixty Four Thousand Six Hundred Twenty Eight Dollars ($564,628) as described in Exhibit "Au. This transaction will change the Street Improvement Fund Balance to $530,000. SECTION 10. The Uni versi ty Avenue Parking Permit Fund is hereby decreased by One Hundred Six Thousand Six Hundred Forty Eight Dollars ($106,648) as described in Exhibit "AU. This transaction will change the University Avenue Parking Permit Fund Balance to $608,202. SECTION 11. The California Avenue Parking Permit Fund is hereby decreased by Ten Thousand Three Hundred Seventy Three Dollars ($10,373) as described in Exhibit "AU. This transaction will change the California Avenue parking Permit Fund to $336,344. SECTION 12. The College Terrace Parking Permit Fund is hereby decreased by Three Thousand Three Hundred Sixty Seven Dollars ($3,367) as described in Exhibit "Au. This transaction will change the College Terrace Parking Permit Page 3 of 5 ATTACHMENT A Fund to $51,694. SECTION 13 . The Local Law Enforcement Block Grant Fund is hereby decreased by Fifty Two Thousand Seven Hundred Twenty Eight Dollars ($52,728) as described in Exhibit "Au. This transaction will change the Local Law Enforcement Block Grant Fund Balance to $180,213. SECTION 14. The Recovery Act JAG Fund is hereby decreased by Eight Thousand Eight Hundred Twenty Dollars ($8,820) as described in Exhibit "Aft. This transaction will change the Recovery Act JAG Fund Balance to $15,650. SECTION 15. The Capital project Fund is hereby increased by the sum of Nine Hundred Ninety Two Thousand Five Hundred Forty Two Dollars ($,992,542) as described in Exhibit "AU. This transaction will increase the Infrastructure Reserve Balance to $8,648,354. SECTION 16. The Electric Distribution Rate Stabilization Reserve is hereby increased by the sum of One Million Four Hundred Seventy Eight Thousand Eleven Dollars ($1,478,011) as described in Exhibit "AU. This transaction will change the Electric Distribution Rate Stabilization Reserve to $9,484,000. SECTION 17. The Gas Distribution Rate Stabilization Reserve is hereby increased by the sum of Forty Four Thousand Six Hundred Twenty Dollars ($44,620) as described in Exhibit "AU. This transaction will change the Gas Distribution Rate Stabilization Reserve to $6,209,000. SECTION 18. The Water Rate Stabilization Reserve is hereby increased by the sum of Twenty Four Thousand Seven Hundred Six Dollars ($24,706) as described in Exhibit "Au. This transaction will change the Water Rate Stabilization Reserve to $17,036,000. SECTION 19. The Refuse Rate Stabilization Reserve is hereby increased by the sum of One Hundred Seventy Eight Thousand Seven Hundred Seventy Dollars ($178,770) as described in Exhibit "Au. This transaction will change the Refuse Rate Stabilization Reserve to negative $4,935,000. SECTION 20. Upon completion of the independent audit, detailed f statements reflecting the changes made by the Sections 7 through 18 of this ordinance shall be Page 4 of 5 ATTACHMENT A published as part of the annual financial report of the City as required by Article III, Section 16, of the Charter of the City of Palo Alto and in accordance with generally accepted accounting principles. SECTION 21. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTI;2j)1 22. The Council of the City of Palo Al to 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 Palo Alto Municipal Code, this effective upon adoption. Section 2.04.330 of the ordinance shall become INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM; City Attorney Mayor APPROVED: City Manager Director of Administrative Services Page 5 of 5 Fund GENERAL FUND City Attomey Use Changes City Auditor Use Changes City Clerk Uee Changes Citty Manager Use Changes Administrative Sen(lcea Use Changes Community Services Use Changea Fire Use Changes Human Servlees Use Changes Library Use Changes EXHIBIT A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2010 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET Commitment Item Non Salary (55,1.26) Reallocation to Firs Salary ___ .l:(7','1'C,6,,6~6L) Midyear Vacancy Savings (127,014) Salary __ ---2~ ~_ Midy •• "V."ancySavings Non Salary (19.216) Reallocalion to Fire Salary (15,33t) Imposed SEIU Terms Salary ___ 1O(3"0",,5,,1,,,9)LMtdyear Vacancy SaVings (56,166) Non Salary Salary Salary (87,625) Reallocation 10 Fire (11,629) Imposed SEIU Terms (168.402) Midyear Vacancy Savings (267,666) Non Salary (609,529) Reallocation to Fire/Library Salary (96,700) Imposed SEIU Terms Salary ___ j;(9~6o:,5:!..1~3:L) Midyear Vacancy Savings (806,742) Non Salary Salary Salary (168,366) Reallocation to Fire (376,626) Imposed SEIU Term. (720,206) Midyear Vacancy Savings (1,265,19B) Salary 84,200 Reallocation (rom Police Oeserl tion Salary 1,531,514 Reallocation from various departments Salary __ ..,.:("1~9,,,,34,,,O,,-) Imposed SEIU Terms 1,578,460 Salary ___ ("7,"9,,,,20~9,,-) Midyear Vacancy Saving. j79,209) Salary 318,571 RaaUocatlon from Police: and ASO Salary (168,915) Imp_d SEIU Terms Salary __ -'(1:!45",,=:26,,3;L) Midyear Vacancy Sa~n9. 106,393 Planning and Community Environment Use Changes Salary Non Salary Salary Salary 192,857 Reallocation ffom Police {20,OOO} Reallocation to Fire. (229,150) Impol!<>d SEIU Terms Midyear Vacancy Savings Pag&10f4 12/1412010 Fund Police Use Changes Public Works Use Changes Non Departmental Use Changes Net Changes To (From) Reserves Fund Balancing Entries Public Services Donations Fund Use Changes Net Changes To (From) Reserves Fund Balancing Entries Child Care Fund I Use Changes Net Changes To (From) Reserves Fund Balancing Entries CAPITAL PROJECT FUND Source Changes Use Changes Net Changes To (From) Reserves EXHIBIT A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2010 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET Commitment Item Salary Non Salary Salary Non Salary Salary Salary Salary Non Non Non Non Non Non Salary Salary Salary Salary Salary Salary Salary Salary Salary Deseri tlon (587,000) Reallocation to Fire, Library, Planning and Public Works (155.680) Reallocation to Fire (322,872) Imposed SEIU Terms (1,065,552) (143,970) Reallocation to Fire 64,286 Reallocation from Police (253.533) Imposed SEIU Terms (189,703) Midyear Vacancy Savings (522,920) (325,000) Reallocation to Fire end Library 1,494,096 Imposed SEIU Term. 1,704,000 Midyear Vacancy Savings 2,673,096 ____ --'-_ Changes in Budget Stebilization Reserve 1,615 Transfer to fund training 3,966 Trensfer to fund other supplies and materials 4,340 Transfer to fund training and safety 4,550 Transfer to fund recreation and housekeeping supplies 1,189 Transfer to fund printing and mailing services ___ --;;;6"',6,,4~7-Transfer to fund other contract services 22,307 (22,307) Reserve Balance ___ ,,(2,,2"',3,,0"-7L) Decrease changes in Other Fund Balence Non Salary Non Salary Non Salary Non Salary Non Salary 3,954 Transfer to fund programs and projects 1,506 Transfer to fund advertising and publishing 388 Transfer to fund other contract services 51 Transfer to fund travels and meetings ___ ---c:1",326:o2_Transfer to fund printing and mailing services 7,261 (7,261) Reserve Belance ____ ("7",2,,6,,IL) Decrease changes in Other Fund Balance Operating Trensfer Non Salary Salary 564,628 Transfer from Streetlmrpovement Fund for street maintenance 564,626 (107,719) To close various completed projects and return balance to reserve (320,195) To return excess budget for salaries and benefils to reserve (427,914) 992,542 Page 2 of 4 12114/2010 Fund Fund Ba'anclng Entries SPECIAL REVENUE FUNDS S# ... tlinprov.n\.~tF,~nd Use Changes Net Changes To {From) Reserves fund Balancing EntrIes Uril ... ",liy Avenue Patl<lng Parmlt Fu~d Use Ctlanges Net Changes To (From) Reserves fund Balancing Entries contain', AVon.u. "aiklng permit Fund:· Use Changes Net Changes To (From) Reserves Fund Balancing Entries ColiogoTerra •• Parking P.rmlt lund . UseChM9P Net Changes To (From) Reserves Fund Balancing Entries Use Changes Net Changes To (From) Reserves Fund Balancing Entries Use Changes Net Changes To (From) Roa&fllml fund Balancing Entrlos ENTERPRISE FUNDS Ele.tMfllnd . Usa Changes EXHIBIT A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30, 2010 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET Commitment It&m Deser! tlon Reserve Balance ___ ,,99,,2",,54~2,-lncre!l$e in Infrastructure Reserve (564,626) Reserve Balance (5'64,828) Decrease changes in Other Fund Balance Operating TfanSfer ___ ~lOS6",,6;;4:;;8,-Transter to Refuse Fund 106,646 (106,e46) Reserve Balance (106,648) Decrease Changes in Othet Fund Balanoo Operating TranSfer ___ -,1"O"''3,,7,,3_Transfer to Refuse Fund 10,373 (10,373) Res,erve Balance ___ .l.(l"0,,,,3,,7,,3L) Dacrease Changes in Other Fund Balance Non Salary ___ ~3",,3,,6::;7_CitY membership 3,367 (3,367) Reserve Balance ___ -"(3:c,3,,80!.71.) Oecro:ase Changes in Other Fund Balance Non Salary 40,500 Transfer 10 fund program and computer expense Non Salary ___ -cl;;2~,22~6-Transfer 10 non-capital tools and equipment 52.172.8 (~2,726) Reserve Balance ___ .I!(6"Z",,7-,2,,6)LOecrease changes In Olher Fund Balance Non Salary ___ ~8",a,,2,-,O_Tran&fer to instruction and training 6 1820 Reserve Balance ____ !"'8",8,,2,,0)LDecrease Changes in Other Fund Belance Non Safary (1,478,011) To close completed projects and return balance to reserve Page 30'4 1211412010 Fund Net Changes To (From) Roaorvos Fund Balancing Entries Gaa Fund Use Changes Net Changes To (From) Roaervas Fund Balancing Entries Use Changes Not Changes To (From) Reserves fund Balancing Entrl05 Ref""oFtmd Source Changes Use Changes Net Changes To (From) Reeorve& Fund BalanCing Entrios EXHIBIT A CITY OF PALO ALTO FISCAL YEAR ENDING JUNE 30. 2010 BUDGET SUMMARY DETAIL CHANGES TO THE ADJUSTED BUDGET Commitment Item Reserve Balance DesGr! tiO" 1,478,011 1,478,011 Increase in DislObution RSR-Electric Non Salary ___ .t;:""':::I-TO close completed projects snd ralum balance 10 reserve Reserve Balance ___ -=44~.e~2~O_lncrease jn Distribution RSR-Gas Non close cOtllp!eted pro1ects and return balance to reserve Reserve Balance ___ -'2!!4!i;, '1f)~6,-lncrease Rate Stabllizalion ReoofVI3 Operating Transfer 106,648' Transfer from University Avenue Parking Permit Fund Operating Transfer ___ .,.1;;O;.:,3,,7~3_Transfer from California Avenue Parking Pefmil Fund 117,021 Non St11ary ___ ~(6~1", 7~4~9~) To close completed projects and return balance to reserve (61,749) Reserve Balance 17th770 Increase Rate Stabilization Reserve Page 4 014 1211412010 EXHIBITB FY 2010 REAPPROPRIATION .""''U $ COMMENTS/REASONS AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS City Manager's Office $55,000. High Speed Rail Project This reappropriation is being requested for • Recommended $55,000, There is staffing costs related to the High Speed Rail sufficient balance in the Fiscal Year Project. Per CMR 267: I 0, Council approved 20 I 0 budget that can be the appropriation of $55,000 from the FY 20 I 0 reappropr iated, Council conlingency Ie fund these costs. Planning Department $40,000 High Speed Rail This reappropriation i8 being requested for Recommended $40,000. There is Project contract services related to the High Speed Rail sufficient balance in the Fiscal Year • Project which is a multi.year project that does 20 I 0 budget that can be • not have an identified source of funding. In reappropriated. FY 2010, this project was funded by the Council contingency and was also absorbed by the Planning Department budget. There is remaining budget from the Destination Palo Allo contract in FY 20 I O. Part of this remaining amount is being proposed to be reappropriated to the Hicll Speed Rail Proiect. $40,000 Development Center This reappropriation is being requested for Recommended $40,000, There is Raslructuring Project contract services related to the restructuring at sufficient balance in the Fiscal Year the Development Center. Although it was 20 I 0 budget that can be mandated by the City Council, this project does reappropriated. not have a designated budget. There is . remaining budget from the Destination Palo Alto contract in FY 2010. Pm10fthis remaining amount is being proposed to be reappropriated to help complete this project. Page I of4 12114/2010 $ COMMENTS/REASONS AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS Administrative Services $50,000 Special Studies This reappropriation is being requested for the Recommended $50,000. There is funding of special studies that arise related to sufficient balance in the Fiscal, Year the Stanford Expansion, Palo Alto Airport, 2010 budgePhat can be Cable Franchising, or other projects as reappropriated. necessary. The budget for contract services in FY 2011 is entirely comprised of funding for specific identified contracts, leaving no room for unanticipated contracts. Th is reappropriation allows for funding for assistance on special projects related to the City's finances. Utilities Department-Electric Fund $2.000,000 Electric Efficiency This reappropriation is being requested to fund Recommended $2,000,000. There is Financing Program an electric efficiency financing program for sufficient balance in the Fiscal Year nonresidential cuslomers through a third party 20 10 budget that can be contractor. On December 7, 2009, Council reappropriated. approved using up to $2,000.000 from the Calaveras Reserve to develop this four-year pilot program (CMR 430:09). It was Council's intent that these funds be used for a four-year program and rolled over throughout the length of the program. The contract is expected to be signed by June 30. 20 I O. The program will begin in Fall 20 I O. $459,700 Customer rebates for This reappropriation is being requested to fund Recommended $459,700. There is energy efficiency customer rebates for completion of energy sufficient balance in the Fiscal Year projects effieiency projects. A very large number of 20 I 0 budget that can be energy efficiency projecls are either committed reappropriated. or projected to be completed, while only a small percentage of projects have been completed to date. Actual payment of rebates will occur as the projects are completed in FY 2011. These energy efficiency projects support Council's environmental soslainability objectives. Page 2 of4 12/1412010 $ COMMENTS/REASONS AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS $300,000 Customer rebates for This reappropriation is being requested to fund Recommended $300,000. There is solar electric customer rebates for the installation of sufficient balance in the Fiscal Year (photovoltaic) systems photovoltaic systems. SBI requires California 2010 budget that can be eleclric utilities to offer incentives for solar reappropriated. electric systems installed on customer facilities after January I, 2007. Because there is uncertainty hi knowing when a customer will complete the solar installation, it is difficult to match the rebate payments to each year's program budget. The reasOn for this reappropriation request is to carry forward funds ftom FY 2010 to FY 2011 to help cover the large amount of pend ing rebates. Each year $1,300,000 is budgeted for this program. Between January I, 2007 and May 19, 2010, over $3,600,000 in rebates has been paid. The program has reserved an additional $2,700,000 for pending applications. Utilitie.~ Department-W(lter Fund $54,000 Customer rebate This reappropriation is being requested for the I Recommended $54,000. There is program for customer rebate program for water/energy sufficient balance in the Fiscal Year water/energy reduction reduction projects. The Santa Clara Valley 20 I 0 budget that can be projects Water District (SCVWD) currently offers reappropriated. rebates for innovative water/energy reduction projects through the existing Water Efficiency Technology program. The goal of the program is to encourage individuals to implement innovative projects that will result in cost- effective water/energy savings. This reapprorpriation is being requested to expand the program in Palo Alto in coordination with SCVWD. Public Works Department-Storm Drainage FlUId $629,718 Stonn Drain Innovative This reappropriation is being requested fol' Recommended $629,718. There is Improvements innovative stonn drain improvements. These sufficient balance in the Fiscal Year funds must be reappropriated because they 20 I 0 budget that can be have been specifically eannarked for reappropriated. innovative stonn drain improvements per the 2005 Stonn Drainage ballot measure approved by the Palo Alto property owners. These funds have been budgeted for a storm water rebate program that offers incentives to residents and businesses to reduce stormwater runoff. However, the rebate program has not generated sufficient demand to spend the funds. Staff plans to utilize the unused funds in FY 2011 for an innovative storm drain improvement project in the Southgate neighborhood. Page 3 of4 1211412010 --_ ......... . $ COMMENTS/REASONS AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS Administrative Services Department-Technology Fund $94,000 Update of the City's This reappropriation is being requested for Recommended $94,0011. There is Infomlation contract services related to the update of the sufficient balance in the Fiscal Year Technology Strategic City's Information Technology Strategic Plan. 20 I a budget that can be Plan This reappropriation is needed to supplement reappropriated. the cost ofthc full project, which is to be completed in FY 20 II. $100,000 Infrastructure This reappropriation is being requested for Recommended $100,000. There is Replacement infrastructure server equipment purchases and sufficient balance in the Fiscal Year computer purchases. Not all of the 2010 budget that can be infrastructure server equipment could be reappropriated. purchased in FY201O. TheFY2011 budget is noL adequate to cover the cost of all the necessary servers to adequately serve the organization. In FY 2011, purchases will be usell for planned system upgrades of existing servers. We plan on purchasing and implementing HP Service Guard which will allow us to enable our enterprise servers with recovery capability. Page 4 of4 12/1412010 NUMBER \Zeneral Fund FD-09001 PD-OaOOa PD-04010 PD-04011 PO-05010 PD-93012 PE-05002 PE-95030 PL-02005 PL-07000 PL-07003 EI§gtrlc Fund EL-05001 EL-03001' EL-03005' EL-03013' EL-05003' Gas Fund 00-07000' Water Fund WS-Ol0l0' WS-Ol014' Rafuse Fund RF-09002' EXHIBITC City of Palo Alto CAPITAL IMPROVEMENT PROGRAM PROJECTS Completed and Oosed /11 FY 1010 TITLE Fire Apparatus Equipment Replacement Additional Fire Frequency Fire Portable Radio Replacement Civic Center Parking Security Upgrade Police Vehicle Mounted Video Recording Fire Communications Computer System Main Library Reconfiguration Downtown Garage Parking Structure EI Camino 1 Ventura Traffic Signal Downtown North Traffic Circle Hardscape Cal Train Slation Connectivity Improvements Colorado Sw Station 115Kv Underground District 39 Underground District 41 Utilities Estimating System Relocation -Alma Substation Elwell Court Tenant Improvement. Reservoir Booster Station Reservoir Pump Stelion Byxbee Park Gas System Upgrade • Projects are closed, No expenditures were incurred in the current fiscal year. Page 1 of 1 724 418 3,931 1,644 11,001 60,000 30,000 Total 107,718 1,143,983 54,987 261,880 15,094 2,067 Total $1,478,011 44,620 Total $44,620 24,644 62 Totat $24,706 61,749 Total $61,749 12/1412010 Taxes Occupancy Tax Fines & Penalties for Services on Investment Other Agencies 10 Other Funds Services: Services Site (B) CAFR Reconciliation: FYlOIO Adopted Budget 19,650 25,752 7,000 11,250 5,633 20,238 5,056 1,900 13,655 92 10,643 1,605 2,569 999 1,512 296 2,395 6,761 21,876 25,166 2,837 6,385 9,858 29,998 13,484 6,925 FY 2010 Adjusted Budget 17,313 25,778 6,639 11,417 5,584 18,932 4,596 1,662 13,786 323 10,546 1,739 3,256 1,075 1,543 335 2,386 8,052 20,951 28,197 2,827 6,756 10,121 29,153 13,495 8,808 10,929 3,636 EXHIBIT 0 FY2010 CAFR B.,I, nevlExp 17,991 25,982 6,858 11,2% 5,754 19,732 4,577 2,682 14,397 332 2,439 2,508 927 1,387 287 2,196 7,508 16,454 24,292 2,540 5,902 8,557 26,620 9,793 8,742 11,001 3,636 FY2010 Allocated Charges 11,028 117 75 31 67 86 364 4,052 3,441 167 486 793 2,239 2,740 I Current year eneumbrancc/rcappropriations Prior Year encumbranceslreappropriations CAFR Net Income (A) .$3.636 Equity Transfer Stabilization Reserve transfer to GAS and Electric Funds, (8) $S.9M Adjusted Budget includes $3,9M salary and benefit savings to be negotiated and achieved Page 1 of 1 IIV 2010 Entum+ R •• pprop nl. lila ul. Ilia ula nla ul. nl. ula nl' nla nla 633 99 20 31 45 176 340 447 71 235 708 231 872 55 FYlOIO Budgetary Rev/E"p 17,991 25,982 6,858 11,296 5,754 19,732 4,577 2,68Z 14,397 332 11,028 2,556 3,216 1,057 1,474 319 2,327 8,048 20,846 28,180 2,778 6,623 10,058 29,090 13,405 8,798 3.965 (5,920) (1.767) FY 2010 Variance Adj Budget 678 204 219 (121 170 800 1,020 611 9 482 817 41 19 70 17 60 5 105 17 49 133 63 62 90 10 12/14/2010 EXHIBIT E WATER FUND ($000) FY200i FY 2010 FY 2010 $ Variance ActualfEnc Adjusted Actual/Ene Favorable " ___ RI:t8PprOp au .... R • .,prop (Un','o,.) REVENUE Water sales 26,686 28,916 25,841 (3,075) Other revenues 2,788 2,389 3,113 744 Bond Proceeds 35,000 34,958 (42) Reappropriations I Ene 11,673 20,113 20,113 - EXPENSES Purchases 8,413 10,354 9,061 1,293 other Expenses 14,579 12,487 13,810 (1,323) TOTAL OPERATING EXPENSES 22,992 22,841 22,871 (30) Capital Expenses 28,110 48,655 49,155 (500) Principal Payments 351 362 362 - !lt~(~Jl!9I/1J;.R!i!\iI!VlI$il' :~~;~;~ji;~f;:,H:i(tt;:;:(~i-~'~m I ELECTRIC fUND FY 200i FY 2010 FY 2010 $ Vartance AclualfEnc Adjusted Actual/Ene Favorable Re<lpprop Budget R.,pp,oP (Un',.o',1 REVENUE E{ect,lc retail .al •• 105,483 112,624 111,140 (1,484) Electric wholesale sales ---- Other revenues 24,452 20,735 19.535 (1,200) Bond Proceeds -. - Reapproprlations I Ene 7,551 10,900 10,900 - EXPENSES Purchases 82,348 77,719 88,713 9,006 NCPA & TANC Debl Sve 8,086 7,759 7,819 (60) Other Expenses 43,453 49,011 44,870 4,141 TOTAL OPERATING EXPENSES 133,887 134,489 121,402 13,087 Capital Expenses 16,743 18,483 18,550 (67) Prlncipat Payments 100 100 100 - ! ... I Paga 1 of4 12114f2{}1{} EXHIBITE ------~~~~-~~ ~ -~~ ~FiBER OPTICS FUNO-~ -~-~ ~ ---~---~ FY2009 FY 2tJ10 FY 2010 $ Varlancit ,Actual/Ene Adjusted Aetu~lIEnc Favorabl& ReQDcroo B!.!~i!i Ro".W"p (Unfavo'·1 REVENUE Revenues 3,796 2,990 3,593 603 Reappropriations I Ene 182 607 607 - ,>,y,; """'1 EXPENSES Operating Expanses 1,710 1,387 1,510 (123) TOTAL OPERATING EXPENSES 1,710 : 1,387 1,510 (123) Capital Expenses 691 1 811 856 (45) 1i't'~)(ER:IAMt'l!!~~t$\i.+~Il$fSg;g;il$;Hil&i?'hi!"fIlmJ;I .. I '"--'" , ·,hH __ ., __ -__ '" . ____ JgV~-j.lr"'~"-""" __ -L W/'1~/_ ~ _,_,1 .. _ I GAS FUND FY 2009 FY 2010 FY 2010 $ VarlaOCG Actual/Ene Adjueted ActuallEne Favorable Reapprop Budget Reap.,op IUnfavor,i REVENUE Gas retail sales 47,425 44,517 43.502 (1,015) Gas wholesale sales ---~ Other revenues 2 1062 2,417 3.246 631 Reappropriation. I Ene 6.287 12.063 12.063 - EXPENSES Purchases 25.091 26,891 22.529 4,362 Other Expen ... 13.580 16,457 16,191 266 TOTAL OPERATING EXPENSES 36.671 43.346 38,720 4,626 Capital Expenses 17,953 14,329 14.284 45 Principal Payments 429 443 443 - ·"h" I I I Page 2; 0(4 12/14/2010 --_ .. _------------- -EXHIBITE ---------~ ~---- WASTEWATER COLLECTION FUND . I FY2009 FY2010 FY 2010 $ Variante AetuellEnc Adjusted Actualtenc Favorabl& Reapprop Budjl!! .... R •••• ",. iUnfavor,j REVENUE Revenues 15,466 15,988 15,914 (74) Reapproprialions I Ene 6,845 7,122 7,122 - EXPENSES Sewer Treatment Exp_ 6,131 7,933 6,519 1,414 Opera1ing Expenses 4,785 4,623 4,244 379 TOTAL OPERATING EXPENSES 10,916 12,556 10,763 1,793 Cap.al Expenses 11,246 10,908 11,441 (535) Principal Payments 58 61 61 - ,:i" .".,,'> I . v.I"· ',,, . WASTEWATER TREATMENT fUNO FY 2.009 FY 2010 FY 2010 $ Variance Acfual/Ene AdJusWd Actual/Ene Favorable Reapprop 8uduet Reapprop tUnfavor.} REVENUe Operating Revenues 23,814 21,987 17,550 (4,437) Restricted Bond Proceeds --- Loan Proceeds 2,210 -4,528 4,528 Reappropriation. I Ene 15,733 26,298 26,298 - Bonded ReapprolEncum 17 --- '1'11111 I eXPENSES Operating Expenses 15,570 19,572 18,122 1.450 TOTAL OPERATtNG EXPENSES 15,570 19,572 18,122 1,450 Capital exp.n ••• 34,577 26,890 26,654 236 Principal Payments 367 384 384 - T Pag&30f4 12/14/2010 EXHIBITE ~.~~---~-~ .. ---~-~---.~~--~-~ ~~ ~ REFUSE FUND FY m9 FY.2;01{) FY 2010 $ Var/anci} Actual/Ene AdJLls~ Actual/Ene Favorab!ft ReallDf'OD Budi<n ReaDJ)()!) IUnfavor.l R~V~NUE Revenues 30,022 37,323 29,163 (8,160) Reappropriations J Ene 1,874 3,021 3,021 . EXPENSES Payments to GreenWaste 9,504 15,070 12,476 2,592 Other Expenses 26,334 22,256 19,582 2,674 TOTAL OPERATING EXPENSES 35,838 • 37,326 32,060 5,266 Caplla' Expenses 2,720 I 3,890 2,207 1,683 lilII'\11t(l!OC\'ltIJl"!!s.Vi*$''''mii:i1'·'''/;:'Xil''<~X~'~~2i I j, ,L ,,',""",','_, __ -,_n-(--\j& ____ !,,_,,_~_._'" 'I STORM DRAINAGE FUND FY 2009 FY2010 FY .2010 $ Variance AcluallEnc Adjusted ActualJEne Favorable Reapprop Budget Reapprop (~!?!~ REVENU~ Revenues 5,824 5,651 5,815 164 Reapproprlallons I Enc 4,683 2,305 2,305 - EXPENSES Operaling Expenses 2,418 3,913 3,292 621 TOTAL OPERATING EXPENSES 2,418 3,913 3,292 621 Capital Expenses 7,418 3,748 3,039 709 Principal Payments 385 405 405 - Page4of4 12/14/2010 EXHIBIT F RESERVE SUMMARY ($000) FISCAL '(fAR 2010 Electric Fiber Gas WWC WWT Refu5e Storm Beginning Reserves $6,400 $118,468 General RSR $17,037 Supply RSR Dlstnbutkln RSR Total RSR 17,037 . Emergency Plant Replace 1,000 iCelaveras Underground loan Conservation loan landfill Corrective Action Shasta rewind loan 44,855 9,484 54,339 1,000 59,865 731 $7,436 $14,182 $7,001 ($13,442) ($2,194) ($1,098) $8,270 $6,772 ($12,386). ($4,935) $286 12,339 6,209 8,270 18,548 6,772 (12,386) (4,935) 286 1,000 1,000 1,000 2,160 658 $136,753 $15,044 57,194 15,693 87,931 • 7,160 • 59,865 . 731 658 Central Valley Project 306 306 i PubliC Benefit Program 3,750 3,750 ij~~rrill;~_~~imtf4?if1i~~:~~~~~::m'i!iWI~~lR~rt~11!ll~~~]i\~~4l!1im!t~~~~~rR~f~~~Jmm(~l~W)IS'J~~~_~Jr:W~~{~~;tq!l}J FISCAL YEAR 2010 RSR Minimum RSR Maximum RSR % of Maximum RATE STABILIZATION RESERVE Water Electric Fiber Opt!a Gas 4,317 8,634 197% 45,721 547 1,367 605% 9,399 18,798 99% Page 1 of 1 wwc 2,151 4,303 157% WWT Refuse Storm 3,199 6,397 -194% 3,242 6,483 -76% N/A N/A N/A Total 68,576 137,424 64% 1211412010