HomeMy WebLinkAbout2003-12-16 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
DECEMBER 16, 2003 CMR: 533:03
ORDINANCE CLOSING THE 2002-03 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 1) and associated exhibits to the City Council for its
approval to: close the 2002-03 Budget and authorize re-appropriation of 2002-03 funds
into the 2003-04 Budget (Exhibits A & B); close completed capital improvement projects
(Exhibit C); and transfer remaining balances to the appropriate reserves (Exhibits D & E
for General Fund and Exhibits F & G for Enterprise Funds). In addition, staff is
transmitting the City’s Comprehensive Annual Financial Report (CAFR) for review and
approval (Attachment 2).
BACKGROUND
The attachments to this report provide the necessary documents for closing the 2002-03
fiscal year budget and establishing funds for the current fiscal year, 2003-04. They also
offer detailed information on the City’s financial activities for 2002-03. This cover report
highlights the key fiscal issues impacting the City of Palo Alto and identifies pages in the
attachments where the reader can find more comprehensive explanations. The
Management Discussion and Analysis (MD&A) chapter of the CAFR (Attachment 2)
provides an easy-to-read, thorough discussion and analysis of the City’s fiscal health,
including financial statements, performance compared to the prior year, capital assets and
debt administration. The Long-Range Financial Plan (CMR:534:03), presented to the
Council Finance Committee on December 9, contains a more comprehensive analysis of
the local and national economic factors impacting Palo Alto.
CMR:533:03 Page 1 of 5
Economy
Palo Alto’s economy continued to be adversely affected by the downturn in Silicon
Valley and the weak national economy. Local job losses and business insecurities
impacted the City’s economically sensitive revenue sources. The City’s estimated $11.5
million budget gap resulted from significant declines in revenues from sales and transient
occupancy taxes in conjunction with rising costs for salaries and benefits. As sales taxes
dropped 10 percent from the prior year, and transient occupancy taxes fell over 19
percent, the City was forced at midyear to adjust the adopted budget to reflect the lower
anticipated revenues. (MD&A p. 3, 11-13; Transmittal Letter p. v)
Stren~hening the Bottom Line
The City responded to the declining economy by continuing its "Strengthening the
Bottom Line" (SBL) efforts begun in 2001-02. The program involved a citywide review
of programs and budgets in an attempt to reduce expenditures and enhance revenues
without significantly impacting public services. Staff succeeded in cutting expenses
through a voluntary furlough, a hiring freeze and expenditure reductions, to end the year
with a net operating surplus in the General Fund. SBL efforts will continue as the City
continues to face challenges in the current fiscal year. (MD&A p. 11-13; Transmittal
Letter p. v.)
Infrastructure
At the same time the City made cuts to operating expenditures, it maintained its
commitment to its Infrastructure Management Plan. The Plan focuses on backlogged and
highest priority projects to ensure that the City’s critical infrastructure remains strong.
Capital expenditures almost doubled over the prior fiscal year due to construction of new
downtown parking structures and improvements to local roadways. Additional efforts
focused on sidewalks, parks improvements and City facilities. (MD&A p. 13 & 17)
Financial Reports
Fiscal Year 2002-03 saw major progress made on the City’s Enterprise Resource
Planning, a project to replace the existing application software for Accounting (IFAS),
Human Resources (Lawson), and Purchasing with a single, fully-integrated software
(SAP). The new system will provide Council with quarterly reports showing the fiscal
condition of the City in the current year compared with the previous year. (The first
quarterly report for FY2003-04 was presented to Council on October 8, 2003).
DISCUSSION
There are several necessary year-end adjustments to the 2002-03 budget. Specific
transactions are detailed in Exhibit A of the budget-closing ordinance. Exhibit D and
Exhibit F summarize financial results for fiscal year 2002-03 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 throughout the
CMR:533:03 Page 2 of 5
fiscal year. The result of net operations is explained in terms of changes to the various
fund reserves authorized by Council.
View 1: Citywide
The Statement of Net Assets (p. 23 of the CAFR) reports the difference between the
City’s total assets and the City’s total liabilities. This includes all the City’s capital assets
and all its long-term debt. Compared to 2001-02, the City’s net assets increased by $47.4
million, to total $956.8 million in 2002-03. Net assets in Governmental activities
increased $20.8 million for a total of $446.9 million. The $446.9 million includes $279.3
million of capital assets net of related debt as well as $10.0 million from Internal Service
Funds; $21.5 million restricted for special revenue programs; $13.4 million restricted for
capital projects; $2.3 million restricted for debt service; and $130.4 unrestricted net
assets, which include $41.0 million from Internal Service Funds. (MD&A pp. 4~10)
Net assets in business-type activities (Enterprise Funds) increased $26.5 million, for a
total of $509.9 million. The $509.9 million includes $279.9 million of capital assets net
of related debt; $1.7 million restricted for debt service; and $228.3 million of unrestricted
net assets. During fiscal year 2002-03, $9.3 million in capital assets, net of related debt,
was added. (MD&A pp. 9-10)
View 2: By Fund
General Fund
At fiscal year end, the City’s financial position is sound, but revenue growth has slowed
compared to prior years as a result of weak economic conditions. The General Fund
shows a net operating surplus of $2.9 million compared to $2.4 million in the prior year.
This result includes recognition of the unrealized gain on investments of $1.5 million that
is required by GASB 31. The surplus also includes a $0.8 million transfer from Utilities’
payment to the Equity Transfer Stabilization Reserve. At fiscal year-end, the fund
balance for the General Fund totaled $66.3 million. This was comprised of: $8.2 million
reserved for encumbrances, notes and inventory; $21.4 million for the Budget
Stabilization Reserve; $33.4 million for the Infrastructure Reserve; $1.5 million for
Unrealized Gain on Investments; $1.5 million for Equity Transfer Stabilization and $0.3
million for Reappropriations. (MD&A pp. 11-13)
Capital Projects Fund
For fiscal year 2002-03, the Capital Projects Fund reported $33.2 million for expenditures
and other uses, which is an increase of $16.6 million from the prior year. The increase
resulted from the program to rehabilitate and maintain the City’s General Fund
infrastructure (mentioned previously), as well as the downtown parking structure project,
and information technology needs. The Capital Projects Fund Balance totaled $36.1
million, a decrease of $17.2 million from the prior year, because in 2001-02 the fund
balance included the receipt of bond proceeds for construction of the downtown parking
structures. (MD&A p. 13; CAFR p. 29)
CMR:533:03 Page 3 of 5
Enterprise Funds
The Rate Stabilization Reserves (RSRs) for the combined Enterprise Funds increased by
a net $12.7 million. Major changes include a $4.1 million increase in the Gas Fund RSR
and a $9.6 million increase in the Electric Fund RSR. (Exhibit G)
RESOURCE IMPACT
Adoption of the attached budget-closing ordinance (Attachment 1) allows for the
reappropriation and carryover of funding from the 2002-03 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 allocation to major reserves as follows:
¯The General Fund Budget Stabilization Reserve (BSR) has been capped in accordance
with the Council policy of 18.5 percent of budgeted expenditures, and shows a closing
balance of $21.4 million, a decrease of $1.3 million from the prior year. The decrease
is a reflection of a reduction in budgeted expenditures, which is used to calculate the
BSR.
¯A total of $2.5 million was utilized to fund the Infrastructure Reserve, which has a
closing balance of $33.4 million.
The Reserve for Equity Transfer Stabilization was increased by $0.8 million for a
closing balance of $1.5 million.
¯Budget transactions included in the attached ordinance increase General Fund
Reserves by $0.2 million (Exhibit A) including $0.1 million receivable from the
Redevelopment Agency (RDA) for 2002-03 activities. This receivable will be paid to
the General Fund once the RDA obtains a revenue source.
Exhibit G provides the balance changes for all reserve categories for the Enterprise
Funds. The change was a net increase of $15.3 million for all funds. Highlights for this
change include:
Transactions in the attached ordinance decrease Electric Fund reserves by $0.6
million and decrease Gas Fund reserves by $0.6 million as detailed in Exhibit A,
primarily due to their funding the Equity Transfer Stabilization.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policies.
ENVIRONMENTAL REVIEW
The action recommended is not
Environmental Quality Act.
a project for the purposes of the California
CMR:533:03 Page 4 of 5
ATTACHMENT
Attachment 1: Budget Closing Ordinance body text
Exhibit A - Detailed Changes to the Adjusted Budget
Exhibit B - 2002-03 Re-Appropriation Requests
Exhibit C - Capital Improvement Projects Closed in 2002-03
Exhibit D - General Fund Summary
Exhibit E - General Fund Reserve Summary
Exhibit F - Enterprise Summaries
Exhibit G - Enterprise Reserve Summary
Attachment 2: CAFR
PREPARED BY:
TRI_3~Y EIKENBERRY
Accounting Man Administrative Services
LALO
Assistant Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
CARL
Dire~dministrative Services
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:533:03 Page 5 of 5
Attachment I
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 2002-03
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION i. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto and as set forth in
Section 2.28.070 of the Palo Alto Municipal Code, the Council on
June 17, 2002 did adopt a budget for fiscal year 2002-03; and
B. Fiscal year 2002-03 has ended and the financial results,
although subject to post-audit adjustment, are now available and
are herewith reported in summarized financial Exhibits ~A" and ~B"
and ~C" and ~D" and ~E" and ~F" and ~G" 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 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 functional areas
major activities, and objects within various departments as
authorized by the City Manager.
E. Fiscal year 2002-03 appropriations which on July i, 2003
were encumbered by properly executed, but uncompleted, purchase
orders or contracts.
SECTION 3. The Council finds that adjustments to the fiscal
year 2002-03 budget for Fund Balancing Entries as shown on attached
Exhibit ~A", which impact reserve balances are hereby approved.
1
SECTION 4. The Council finds that fiscal year 2002-03
appropriations in certain departments and categories, as shown on
the attached Exhibit "B", while not encumbered by purchase order or
contract, at year end are hereby reappropriated in the fiscal year
2003-04 budget.
SECTION 5. The fiscal year 2002-03 encumbered balances for
the departments and categories shown on Exhibit ~D" shall be
carried forward and reappropriated to those same departments and
categories in the fiscal year 2003-04 budget.
SECTION 6. The City Manager is authorized and directed:
A. To close the fiscal year 2002-03 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 2002-
03 budget as adopted or amended by ordinance of the Council; and
B. To close various completed Capital Improvement Projects
as shown in Exhibit "C" and move the balances into the respective
reserve funds indicated in Exhibit ~D", and
C. To establish reserves as shown in Exhibits "E", ~F"
and ~G" for all 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 and continue in effect the unexpended
balance of appropriations for fiscal year 2002-03
departmental expenditures; and
(2)Reserves for Advances to Other Funds and for Stores
Inventory in accordance with ordinance and policy
guidelines; 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.
D. To fund the Budget Stabilization and Infrastructure
Reserve in accordance with the Genera! Fund Reserves Policy adopted
by the City Council; and
E. To fund the Equity Transfer Stabilization Reserve in
accordance with the General Fund Reserves Policy adopted by the
City Council.
SECTION 7.The sum of Four Thousand Five Hundred Eighty
2
Four Dollars ($4,584) is hereby transferred from the Youth Services
Functional Area for the Police Department to the Special Revenue
Local Law Enforcement Block Grant Fund as operating revenue as
described in Exhibit A. The balance of the Local Law Enforcement
Block Grant Fund is increased to $53,552.
SECTION 8. The sum of Fifty Thousand Four Hundred Twenty
Two Dollars ($50,422) is hereby transferred from the Special
Revenue Local Law Enforcement Block Grant Fund (LLEBG) to the
Recreation Services Functiona! Area for the Community Services
Department as operating revenue as described in Exhibit ~A". The
balance in the Local Law Enforcement Block Grant Fund (LLEBG) is
reduced to $3,130.
SECTION 9. The sum of One Hundred One Thousand Three
Hundred Forty Two Dollars ($101,342) is hereby transferred from
Redevelopment Agency Fund to the General Fund Budget Stabilization
Reserve as described in Exhibit ~A". This transaction creates a
liability of $101,342 on the Redevelopment Agency Fund to the
General Fund Budget Stabilization Reserve.
SECTION I0. The sum of Twenty Thousand Two Hundred Forty
Two Dollars ($20,242) is hereby transferred from the Housing In-
Lieu Reserve Fund to the Community Services Support Functional Area
of the City Attorney’s Office as operating revenue as described in
Exhibit ~A". The balance of the Housing In-Lieu Reserve Fund is
reduced to $4,272,265.
SECTION ii. The sum of Eighty Seven Thousand Eight Hundred
Twenty Five Dollars ($87,825) is hereby transferred from
Residential Housing In-Lieu Reserve Fund to the Below Market Rate
Emergency Reserve Fund as described in Exhibit ~A". This
transaction will decrease in the balance of the Residential Housing
In-Lieu Reserve Fund to $4,184,440 and create the initial balance
of the Below Market Rate Emergency Reserve Fund of $87,825.
SECTION 12. The General Fund Equity Transfer Stabilization
Reserve will be funded by the sum of Seven Hundred Seventy Nine
Thousand Dollars ($779,000) from the Stabilization Rate Reserves of
the Utilities Department Funds as follow:
Utilities Fund
Electric Distribution
Electric Supply
Gas Distribution
Gas Supply
Total
Amount
$ 291,000
$ 291,000
$ 98,500
$ 98,500
$ 779,000
The General Fund Equity Transfer Stabilization Reserve is increased
to $1,535,000.
SECTION 13. The General Fund Budget Stabilization Reserve
is hereby increased by the sum of One Hundred Sixty Seven Thousand
Four Hundred Twenty Two Dollars ($167,422) as described in Exhibit
~A". This transaction will increase the balance in the General Fund
Budget Stabilization Reserve to $21,490,285.
SECTION 14. The Electric Supply Rate Stabilization Reserve
is hereby reduced by the sum of Five Hundred Ninety One Thousand
Dollars ($591,000), as described in Exhibit ~A". This transaction
will reduce the balance in the Electric Supply Rate Stabilization
Reserve to $30,515,017.
SECTION 15. The Electric Distribution Rate Stabilization
Reserve is hereby increased by the sum of Nine Thousand Dollars
($9,000) as described in Exhibit ~A". This transaction will
increase the Electric Distribution Rate Stabilization Reserve to
$5,738,745.
SECTION 16. The Gas Supply Rate Stabilization Reserve is
hereby decreased by the sum of Four Hundred Ninety Eight Thousand
Five Hundred Dollars ($498,500) as described in Exhibit ~A". This
transaction will decrease the Gas Supply Rate Stabilization Reserve
to $3,847,350.
SECTION 17. The Gas Distribution Rate Stabilization Reserve
is hereby decreased by the sum of Ninety Eight Thousand Five
Hundred Dollars ($98,500) to fund the General Fund Equity Transfer
Stabilization Reserve as described in Exhibit ~A". This transaction
will decrease the Gas Distribution Rate Stabilization Reserve to
$5,031,667.
SECTION 18. The Vehicle Replacement and Maintenance Fund
Retained Earnings is hereby decreased by One Million One Hundred
Fifty Thousand Dollars ($1,150,000) as described in Exhibit "A".
This transaction will decrease the Vehicle Replacement and
Maintenance Fund Unrestricted Retained Earnings to $2,245,000.
SECTION 19. The Terman School Lease Fund is hereby
terminated and closed. Revenue and the fund balance is each reduced
by the sum of Forty Seven Thousand Nine Hundred Twenty Nine Dollars
($47,929) as described in Exhibit ~A". This transaction will close
the Terman School Lease Fund.
SECTION 20. The Offstreet Parking 1977 Fund is hereby
terminated and closed. Revenue and expense is each reduced by the
sum of Seventy Two Thousand Thirty Dollars ($72,030) as described
in Exhibit ~A". This transaction will close the Offstreet Parking
1977 Fund.
SECTION 21. The Offstreet Parking 1989 Fund is hereby
terminated and closed. Revenue and expense is each reduced by
the sum of Six Hundred Sixty Seven Thousand One Hundred Ninety
Dollars ($667,190) as described in Exhibit ~A". This transaction
will close the Offstreet Parking 1989 Fund.
SECTION 22. Upon completion of the independent audit,
detailed financial statements reflecting the changes made by the
Sections 7 through 21 of this ordinance, shall be published as part
of the annual financial report of the City as required by Article
III, Section 16, of the Charter of the City of Palo Alto and in
accordance with generally accepted accounting principles.
SECTION 23. As specified in Section 2.28.080(a) of the Palo
Alto Municipa! Code, a two-thirds vote of the City Council 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 Environmental Quality Act and, therefore, no
environmental impact assessment is necessary.
SECTION 25. As provided in Section 2.04.350 of the Palo
Alto Municipa! Code, this ordinance shall become effective upon
adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director
Services
of Administrative
Exhibit A
CITY OF PALO ALTO
2002-03 YEAREND BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
02000000 2052
02000000 2053
02000000 2071
02181146 2023
02818413 2064
582,000 GFTSR year-end transfer from Electdc Fund
197,000 GFTSR year-end transfer from Gas Fund
101,342 Operating Transfer from Redevelopment Agency to General Fund
20,242 Transfer from Residential Housing In- Lieu Fund to reimburse City
Attorney’s Office
50,422 Transfer in grant funds to General Fund to reimburse elligible PAY
program expense
;ource Changes 951,006
02705240 4064 4,584 Transfer to LLEBG fund for 10% police grant match
Use Changes 4,584
Net Changes To (From) Reserves 946,422
Fund Balancin~l Entries
02000000 3822 167,422 Budget Stabilization Reserve
02000000 3831 779,000 Transfer Stabilization Reserve
SPECIAL REVENUE FUND
30000000 2023 87,825 Transfer from Residential Housing In-Lieu Fund
49000000 2011 4,584 Transfer in to LLEBG fund for 10% police grant match
53000000 1603 (47,929) To close fund
63000000 1130 (72,030) To close fund
65000000 1130 (667,190) To close fund
Source Changes
06000000 4011
(782,565)
101,342
Operating Transfer to General Fund from Redevelopment Agency
33000000 4011 20,242
33000000 4020 87,825
49000000 4011 50,422
63000000 3320 (70,000)
63000000 3321 (2,030)
65000000 3320 (490,000)
65000000 3321 (177,190)
Transfer to General Fund to reimburse City Attorney’s Office
Transfer to Below Market Rate Emergency Fund
Transfer out grant funds to General Fund to reimburse elligible PAY
program expense
To close fund
To close fund
To close fund
To close fund
Use Changes (688,798)
Net Changes To (From) Reserves (93,767)
Fund Balancing Entries
06000000 3850 (101,342)
30000000 3850 87,825
33000000 3850 (108,067)
49000000 3850 (45,838)
53000000 3850 (47,929)
63000000 3850 0
65000000 3850 0
Other Fund Reserve Balance
Other Fund Reserve Balance
Other Fund Reserve Balance
Other Fund Reserve Balance
Other Fund Reserve Balance
Other Fund Reserve Balance
Other Fund Reserve Balance
CITY OF PALO ALTO
2002-03 YEAREND BUDGET SUMMARY
DETAIL CHANGES TO THE ADJUSTED BUDGET
81000000 3125
81000000 3810
81000000 3204
81000000 3230
Ise Changes
~et Changes To (From) Reserves (1,150,000)
Fund Balancing Entries
81000000 3809 (1,150,000)
36,000 Year-end adjusting entries to reflect actual transactions
532,000 Year-end adjusting entdes to reflect actual transactions
281,000 Year-end adjusting entries to reflect actual transactions
301,000 Year-end adjusting entries to reflect actual transactions
1;150,000
ENTERPRISE FUNDS
Source Changes
13000000 3101
13000000 4011
23000000 4011
23000000 3165
0
300,000 Transfer budget from supply to distribution to cover legal expense
291,000 GFTSR year-end transfer to General Fund
291,000 GFTSR year-end transfer to General Fund
(300,000) Transfer budget from supply to distribution to cover legal expense
Use Changes 582,000
NetChangesTo(From) Reserves ~82,000)
iFund Balancing Entries
13000000 3817 (591,000)
23000000 3804 9,000
Rate Stabilization Reserve
Rate Stabilization Reserve
14000000 !962 (400,000) Reduce gas sales to Electric Fund due to reduction in COBUG
expense
Source Changes (400,000)
14000000 4011 98,500 GFTSR year-end transfer to General Fund
24000000 4011 98,500 GFTSR year-end transfer to General Fund
Use Changes 197,000
Net Changes To (From) Reserves (597,000)
Fund Balancin~l Entries
14000000 3817 (498,500) Rate Stabilization Reserve
24000000 3804 (98,500) Rate Stabilization Reserve
Exhibit B
2002-03 REAPPROPRIATION REQUESTS
Total Requests
$ 311,671
$ 10,~771
~$1,621,367
$1,943,809
Total Recommended
$ 311,671
$ 10,771
$1,6211367
$1,943,809
Planning Departntent
$60,000 Zoning Ordinance
Update
$51,271
$75,000
Charleston/Arastradero
Plan
Installation of
Enhanced Crosswalks
at Various Locations
The Zoning Ordinance Update timeline has
been updated to result in a draft ordinance to be
considered by the City Council and community
by the end of 2003 calendar year, rather than
Spring 2003. This reappropriation is required
in order t incorporate public outreach,
including locus groups, website access,
community workshops, and study sessions to
ensure ongoing community input. These funds
were left unspent in 2002-03 in order to match
outreach timing with each phase of the zoning
code update.
The Charleston/Arastradero Plan was a new
assignment in fiscal year 2003-04. Without
these funds a BAO will be required to proceed
with the EIR and public hearing phases of the
project.
Due to other work priorities, these projects
were not initiated until late 2002-03. The
projects will be implemented in 2003-04 and
will be fully reimbursed with grant funding.
The City will be reimbursed in full TDA grants
of $25,000 and $50,000.
Recommended $60,000. The
requested funding exists. Part of
’‘Top 5" - Land Use Planning.
Recommended $51,271. The
requested funding exists. Part of the
"Top 5" - Land Use Planning.
Recommended $75,000. The
requested funding exists. Part of
"Top 5" - Traffic Calming and
Alternative Modes.
Planning Department, continued
$87,4OO
.... $10,771
Lytton Avenue Traffic
Study and Downtown
North Traffic Calming
projects
Oak Court Housing Site
- Land Holding and
Sales Transaction Costs
The Downtown North and Lytton Avenue are
inextricably linked and funding for both must
be carried forward together. The trial phase of
the Downtown North traffic-calming project
was initiated in May 2003. The 6-month trial
will continue into 2003-04 when additional
costs will be incurred for the evaluation phase
of the study.
The Lytton Study was scheduled to begin
during the Downtown Trial phase. Staff plans
to begin that project in early 2003-04. There is
no funding available in 2003-04 for either of
these projects.
Council appropriated funds inBAO #4735 on
2-4-02 for various holding costs for the City-
owned site that will be sold to Palo Alto
Housing Corp and developed as low-income
rental housing. The close of escrow is planned
for late July or early August 2003.
These remaining funds need to be re-
appropriated to FY 2003-04 to pay for any
closing costs required to be paid by the City in
the sale of property to PAHC. We do not have
any other funds available for that purpose, so
we need this reappropriation even though it is
less than the $35,000 minimum.
Recommended $87,400. The
requested funding exists. Part of
"Top 5" - Traffic Calming and
Alternative Modes.
Recommended $10,771. The
requested funding exists. Part of
’’Top 5" - Affordable Housing.
City Clerk Department
$38,000 Elections Monies being reappropriated to accommodate a Recommended $38,000. There is
referendum that will happen in November sufficient balance in the 2002-03
2003.budget that can be reappropriated.
Administrative Services - Technology Fund
Institution
Network (I-Net)
10213 The Institution Network will connect all
public and school facilities in the cable JPA
service area (Palo Alto, Menlo Park,
Atherton, East Palo Alto) via fiber optic
cable. Palo Alto and the JPA entities will
have exclusive use of the fiber for all of
their voice, video, and data needs. Palo Alto
will be able to generate revenue by selling
services to surrounding jurisdictions over
the I-Net fiber.
The I-Net has been delayed due to
construction delays by Comcast. Comcast
is required to complete the I-Net by early
2003-04, but construction delays have
prevented Palo Alto from connecting to the
I-Net and thus we have not expended funds
from the CIP yet. These funds are critical
to the successful implementation of the I-
Net to ensure Palo Alto’s participation.
Palo Alto’s participation on the I-Net is
critical to the overall success of the I-Net
for the entire cable JPA (Atherton, Menlo
Park, East Palo Alto and the school districts,
including Palo Alto Unified District). The
2003-04 budget does not include funding
for I-Net; therefore the funding in CIP
10213 is critical.
Recommended $i"i’000,000. There
is sufficient balance in the 2002-03
budget that can be reappropfiated.
Planning
10205 $61,0o0 E1 Camino
Real/Ventura
Traffic Signal
Installation
Installation of a new traffic signal at the
intersection of El Camino Real and
Ventura Avenue to facilitate pedestrian
crossings of E1 Camino Real.
This traffic signal installation project is
being implemented by Caltrans with
funding participation by Caltrans and
Palo Alto and will be implemented in
2004-05. The City had to commit
funding in advance in order for Caltrans
to proceed with this project.
Recommended $61,000. There is
sufficient balance in the 2002-03
budget that can be reappropriated.
10206 $280,8OO
10117 $100,000
Ponce
10217 $75,000
Traffic Signal -
San Antonio/Hwy
101 Off Ramp
E1 Camino
Real/Churchill
Avenue
Intersection
Improvements
Installation of a new traffic signal at the
intersection of the northbound off-ramp
from Highway 101 and San Antonio
Road.
This traffic signal installation project is
being implemented by Caltrans with
funding participation by Caltrans, Palo
Alto, and Mountain View and will be
implemented in FY 2003-04. City had to
commit funding in advance in order for
Caltrans to proceed with project.
Improvements at the Churchill/El Camino
Real intersection include installation of a
second crosswalk on E1 Camino Real,
widening of Churchill to provide a right
turn only lane at E1 Camino and related
traffic signal modifications.
Due to other work priorities in the
Transportation Division, this project has
been delayed. Neighborhood outreach
and preliminary design will commence
beginning in Spring 2004 and will carry
through until FY 2004-05.
Recommended $280,800. There
is sufficient balance in the 2002-03
budget that can be reappropriated.
Recommended. $100,000. There
is sufficient balance in the 2002-03
budget that can be reappropriated.
Replacement of
Mobile Data
Computer
Software
The work being completed for this CIP is
part of a phased project that has taken
more than two years to complete.
The mobile data software application that
these funds will be used to replace is in
dire need of replacement, as it lacks the
functionality required to provide field
access to several key public safety
databases and functions.
Not approving this reappropriation
request will prevent this critical and final
phase of a multi-year, multi-phased
public safety computer systems project
from being completed.
Recommended $75,000. There is
sufficient balance in the 2002-03
budget that can be reappropriated.
Public Works
19907 $104,567 San Mateo Drive
Bridges
Replacement of 2 existing bike bridges
over San Francisquito Creek between
Menlo Park and Palo Alto. Menlo Park is
the lead agency and has secured $370,000
in TDA grant funding. Palo Alto is
committed to a split of the local match
cost with Menlo Park.
Recommended $104,567. There is
sufficient balance in the 2002-03
budget that can be reappropriated.
Exhibit C
City of Palo Alto
CAPITALIMPROVEMENT PROGRAM PROJECTS
Completed and Closed in 2002-03
{GenemlFund.
10004
10005
10007
10008
10019
10101
10110
10210
10226
19102
19109
19406
19514
19624
19707
19711
19814
19901
19911
19922
IElectric Fund
0008*
0010"
9250*
9902*
9904*
IStorm Drain Fund
0015
Downtown Library Roof Replacement & Exterior 24,680
MSC Bldg. A. Emergency Generator Replacement 13,769
Art Center Plumbing Replacements 26,412
Mezzanine HVAC System Improvements 84,494
Hazardous Materials Inspection and Testing 10,377
Children’s Theater Exterior 21,404
Map Printing Plotter 214
New Vehicles 29,823
Mitchell Park Library Expansion 99
Arastradero Lake Dam 35,312
Police Computer Systems 34,004
Rinconada Pool Site Improvements 9,595
Mitchell Pk CC & Library Stat. 5 Roof Replacements 174,299
Golf Course Improvements 105,256
Fire Station Emergency Generator Replacement 13,048
Citywide Network Improvements 1
Residential Arterial Traffic Calming (SIF)16,029
Robles Park Irrigation Improvements 3
Cubberley Theater Improvements 1
Civic Center 3rd Floor 65,413
Total $664,233
I
Adobe Creek Substation
City Facilities System Upgrade Elec Veh
Alma Substation 12 kV Addition
4/12 kV Conv Stanford Shopping Center
East Meadow Circle UG System Rebuild
Total
Trailer Mounted Generator
Total
20,761
163,748
49,376
93,105
6,933
$333,923
1,219
$1,219
* Projects are closed. No expenditures were incurred in the current fiscal year.
EXHIBIT D
Revenues
Property Taxes
Sales Taxes
Utility Users Tax
Transient Occupancy Tax
Other Taxes, Fines & Penalties
Charges for Services
Permits & Licenses
Charges to Other Funds
Rental Income
Other Revenues
Add: Operating Transfers In
Prior Year Encum & Reapprop
Expenditures
Administrative Departments
Community Services
Fire
Planning
Police
Public Works
Non-Departmental/School Site
Add: Operating Trans Out
2002-03
Adopted
Budget
13,536
21,035
7,370
7,000
7,903
17,730
3,319
11,827
13,008
9,106
14,335
i26;i69
19,300
24,530
19,055
8,359
21,888
14,327
6,870
114~329
11,579
2002-03
Adj usted
Budget
13,644
19,542
7,370
6,600
8,440
17,750
3,319
11,913
13,008
9,426
15,381
3,851
21,311
25,388
t9,289
9,756
22,442
14,672
6,117
118,974
11,158
2002-03
CAFR Basis
Rev/Exp
2002-03
Allocated
Charges
2002-03
Encum+
Reapprop
13,821 n/a
18,041 rda
7,067 rda
5,333 n/a
9,398 rda
16,801 n/a
3,162 rda
11,521 n/a
13,224 rda
9,462 (1,051) n/a
16,092 n]a
3,851 n/a
2002-03
Budgetary
Rev/Exp
13,821
18,041
7,067
5,333
9,398
16,801
3,162
11,521
13,224
8,411
16,092
3,851
17,533 900 1,452 19,885
19,797 2,964 603 23,363
16,842 1,269 253 18,364
7,720 413 1,289 9,422
19,704 1,479 249 21,430
9,857 3,239 434 13,529
7,442 7,442
10,634 10,634
2002-03
Variance
177
(1,501
(303"
(1,267’
958
(949
(157
(392’
216
(1,015
711
1,426
2,025
925
334
1,012
1,143
0,325
524
6,063
CAFR Reconciliation:Current year encumbrance/reappropriations
Prior year encumbrance/reappropriations
Current year stores adjustment
Prior year stores adjustment
CAFR Net Income
4,279
(3,851)
(119)
(88)
2,874
EXHIBIT E
CAFR Fund Balance
Less: Encumbrances
Reappropriations
Adiustment for Stores Operations
Balance
@ 06/30/02
Net From Balance
Ope~?tions @ 06/30/03
63,434 2,874 66,307
(4,501)(353)(4,853)
(514)202 (312)
88 (207)(119)
Budget Stabilization Reserve
Reserve For Infrastructure Improvements
Notes Receivable Reserve
Stores Inventory Reserve
Unrealized Investment Gain/Loss Reserve
Reserve For Equity Transfer Stabilization
Reserve For Emergencies
Adiustment for Stores Operations
22,674 (! ,279)21,395
30,189 3,188 33,376
1,292 (16)1,276
1,985 42 2,027
1,522 11 1,533
756 779 1,535
0 0 0
88 (207)(119)
Adjustment for Stores Inventory Encumbrance !(42)
Adiustment for Stores Operations I.(77)
Total Adjustments .....(119):
12/2/20039:17 AM
Exhibit F
REVENUE
Water sales
Bond Proceeds
Other revenues
Bonded Reappro/Encum
Restricted Bond Proceeds
Reappropriations /Enc
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
2001-02
ActJEnc
Reapprop
2002-03 Act/Enc $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavoro)
17,300
1,642
3,768
3,213
5,419
(1,297)
421
5,735 265
10,677 10,147 530
16,677 15,882 795
15,534 18,598
1,714 1,221
3,378 3,768
3,213 3,213
4,763 5,419
5,871 6,000
9,145
15,016
11,346 14,317 14,116 201
REVENUE
2001-02
Act/Enc
Reapprop
Electric retail sales 69,125
Electric wholesale sales 1,886
Other revenues 35,760
Reappropriations / Enc 28,774
EXPENSES
Purchases 61,831
NCPA & TANC Debt Svc 5,702
Other Expenses 54,949
TOTAL OPERATING EXPENSES 122,482
Capital Expenses 24,058
2002-03 Act/Enc $ Variance
Adjusted Reapprop Favorable
Budget Actual/Eric (Unfavor.)
72,050 68,849 (3,201)
1,864 4,233 2,369
20,521 31,938 11,417
14,078 14,078
45,001 37,463 7,538
5,880 5,762 118
45,163 43,222 1,941
96,044 86,447 9,597
23,580 20,561 3,019
REVENUE
Gas retail sales
Gas wholesale sales
Other revenues
Bond Proceeds
Bonded Reappro/Encum
Restricted Bond Proceeds
Reappropriations / Enc
EXPENSES
Purchases
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
2001-02
AcUEnc
Reapprop
4!,073
1,617
3,826
6,600
3,584
22,174
14,214
36,388
8,004
2002-03
A~usted
Budget
Act/Eric
Reapprop
Actual/Enc
30,318 29,279
1,933 2,008
2,343 2,343
6,600 6,600
1,631 1,631
$ Variance
Favorable
(Unfavor.)
(1,039)
75
16,473 15,329 1,144
11,912 11,109 803
28,385 26,438 1,947
9,256 11,224 (1,968)
REVENUE
Revenues
Reappropriations / Enc
EXPENSES
SewerTreatmentExp.
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
2001-02
Ac’dEnc
Reapprop
11,303
7,872
5,212
4,202
9,414
!1,351
2002-03
Adjusted
Budget
Act/Enc
Reapprop
Actual/Enc
$ Variance
Favorable
(Unfavor.)
12,790
6,876
11,348
6,876
(1,442)
5,682
3,874
9,556
11,257
46
4,908
3,492
8,400
10,857
46
774
382
1,156
400
REVENUE
Revenues
Reappropdations / Enc
EXPENSES
Payments to PASCO
Other Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
2001-02
Act/Enc
Reapprop
23,231
2,319
7,774
16,895
24,669
2,016
2002-03 Act/Enc $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
22,620 22,725 105
2,549 2,549
8,045 7,965 80
18,087 17,076 1,011
26,132 25,041 1,091
1,991 1,991
REVENUE
Operating Revenues
Restricted Bond Proceeds
Reappropriations / Enc
Bonded Reappro/Encum
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
2001-02
AcUEnc
Reapprop
14,734
162
2,570
136
12,885
12,885
4,041
282
2002-03 Act/Enc $ Variance
Adjusted Reapprop Favorable
Budget Actual/Enc (Unfavor.)
14,433 12,733 1,700
14,433 12,733 1,700
4,924 4,983 (59)
284 284
15,940 14,233 (1,707)
162 162
3,718 3,718
136 136
REVENUE
Revenues
Reappropriations /Enc
Bonded Reappro/Encum
Restricted Bond Proceeds
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
Capital Expenses
Principal Payments
2001-02
Act/Enc
Reapprop
3,198
445
364
80
2,493
2,493
1,263
260
2002-03
Adjusted
Budget
3,137
216
364
8O
2,416
2,416
1,063
275
Act/Eric
Reapprop
Actual/Enc
3,187
216
364
8O
2,174
2,174
1,060
275
$ Variance
Favorable
(Unfavor.)
50
242
242
3
REVENUE
Revenues
Reappropriations / Enc
EXPENSES
Operating Expenses
TOTAL OPERATING EXPENSES
CapitalExpenses
2001-02
AcUEnc
Reapprop
385
353
353
2002-03
A~usted
Budget
Act/Enc
Reapprop
Actual/Enc
$ Variance
Favorable
(Unfavor.)
1,048
3
6O0
3
(448)
869
869
628
628
241
241
Exhibit G
FISCAL YEAR 2002-03
Beginning Reserves
To (From) Reserves
Adj Budgeted Reserves
% of Budgeted Reserves
Water Electric Gas WWC WWT Refuse Storm Ext Svc
$10,169 $124,581 $15,440 $5,619 $7,472 $10,557 $405 $32
1,334 12,090 4,199 (1,079)249 (1,758)338 (24)
10,151 131,461 14,182 5,550 7,328 10,560 405 32
1130/o 104°/0 138°/o 820/0 1050/0 83%1830/o 25°/o
Total
$174,275
15,349
179,637
i06°/c
FISCAL YEAR 2002-03
Rate Stabilization
General RSR
Supply RSR
Distribution RSR
Total RSR
!Emergency Plant Replace
Calaveras
Underground Loan
Conservation Loan
Water Resources Board
Shasta rewind Loan
Central Valley Project
Public Benefit Program
External Service - IT
External Service - HR
Water Elect~c Gas WWC WWT Refuse Storm Ext Svc
$10,449 $4,019 $6,090 $8,209 $743 $0
53,420 11,443
12,038 7,304
10,449 65,458 18,747 4,019 6,090 8,209
1,054 2,393 858 521 1,631
67,965
648
64
129
14
34
590
743
Total
$29,510
64,863
19,342
113,715
6,457
67,965
648
34
590
64
129
14
8
FISCAL YEAR 2002-03
Beginning RSR
To(from) RSR
RSR Maximum
RSR % of Maximum
Water Electric Gas WWC WWT Refuse Storm Ext Svc Total
$9,190 $55,819 $14,586 $5,135 $5,929 $9,967 $404 $1 $101,031
1,259 9,639 4,161 (1,116)161 (1,758)339 (1)12,684
11,733 49,262 11,070 6,916 4,188 3,725 297 NIA 86,894
89%133%169%58%145%220%250%N/A 131oA