Laserfiche WebLink
City of Redwood City 7.1.A. - Page 39 <br /> Management's Discussion and Analysis <br /> For the year ended June 30, 2014 <br /> Block Grant program and planning cost recovery, along with a $.1 million decrease in human services <br /> expenses. Policy development and implementation expenses decreased slightly by net $.05 million due <br /> to a decrease in lease payments for the Public Financing Authority as the bonds were refunded in the prior <br /> year, offset by programmatic increases, employee payout upon retirement, and increased workers' <br /> compensation costs. Interest on long -term debt decreased $.3 million due to the prior year refunding of <br /> the Public Financing Authority bonds which were replaced with a lower interest lease. <br /> BUSINESS -TYPE ACTIVITIES <br /> Business -type activities prior to transfers increased the City's net position by $26.4 million in FY 2013 -14. <br /> Key elements accounting for increases or decreases in revenues and expenses are as follows: <br /> Business -type revenues increased primarily due to the gain on the sale of Block 2 to the Crossing 900 <br /> developer and an increase in utility rates. Port revenues increased $.5 million due to the higher maritime <br /> revenue from higher tonnage and a 2% increase in the tariff rate. <br /> The water utility's expenses were lower in FY 2013 -14 primarily due to a decrease in the amount paid for <br /> water to the San Francisco Public Utilities Commission resulting from decreased water consumption, and <br /> decreased expenses related to the water meter replacement program. <br /> Sewer utility expenses increased slightly due to an increase in payments to Silicon Valley Clean Water <br /> (formerly South Bayside System Authority) for wastewater treatment, and an increase in expenses related <br /> to closed circuit television inspection of sewer lines. <br /> The expenses of the parking fund remained flat at $2.4 million. <br /> The Port of Redwood City experienced a decrease in expenses due to the prior year loss of $0.575 million <br /> on disposal of assets associated with the Wharves 1 & 2 replacement project, net of increased interest <br /> expense associated with the 2012 revenue bonds. <br /> During fiscal year 2013 -14 the first full year of operations of the Docktown Marina by the City expenses <br /> increased from partial year of $.24 to $.7 million for one full year. <br /> FINANCIAL ANALYSIS OF THE CITY'S FUNDS <br /> As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - <br /> related legal requirements. <br /> Governmental Funds <br /> The general government functions are contained in the general, special revenue, debt service, and capital <br /> project funds. The focus of the City's governmental funds is to provide information on near -term inflows, <br /> outflows, and balances of spendable resources by using the modified accrual basis of accounting. Such <br /> information is useful in assessing the City's financing requirements. In particular, unassigned fund balance <br /> may serve as a useful measure of the City's net resources available for spending at the end of the fiscal <br /> year. <br /> 11 <br />