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City of Redwood City 7.1.A. - Page 41 <br /> Management's Discussion and Analysis <br /> For the year ended June 30, 2014 <br /> Additionally, there was an increase in public safety expenditures related to the first full year of the <br /> reorganization of the police department, along with increased workers' compensation cost. <br /> General fund expenditures increase was offset by a decrease in one -time prior year payments related to <br /> reimbursement to the employee benefits internal service fund for prior fire employee retirement costs, <br /> and lease payments related to the prior year refunding of the Public Financing Authority 2003 Refunding <br /> Bonds. <br /> Transfers out of the general fund increased $7.4 million in FY 2013 -14 due to the $6 million transfer to the <br /> self insurance fund to cover increased workers' compensation costs, along with an increase in the transfer <br /> out to the capital outlay fund, as greater net utility users tax was available in the current fiscal year after <br /> a greater portion was used in the prior year to refund the Public Financing Authority 2003 Bonds. <br /> Housing Legal Aid Society Fund — This fund accounts for revenues previously deposited in the former <br /> redevelopment agency low and moderate income housing fund pursuant to an agreement with the Legal <br /> Aid Society to set aside general tax increment revenue for housing purposes. After the February 1, 2012 <br /> dissolution of the redevelopment agency, this fund was created to account for this accumulated balance. <br /> At June 30, 2014, a $10.3 million liability is reflected as due to other governmental agencies as the City <br /> and Legal Aid Society have sued the State of California over the City's right to retain this money for housing <br /> purposes. <br /> Capital Outlay Fund — This fund accounts for resources provided to finance general governmental capital <br /> projects. In FY 2013 -14, the capital outlay fund generated $3 million in revenue, most of which was from <br /> developer contributions. This fund was also the recipient of $9.2 million of transfers from the general <br /> fund and $2.7 million from the Parking fund. Total outlays were $7.1 million of which $2.8 million met <br /> with City's criteria for capitalization. The balance ($4.3 million) was expended in FY 2013 -14. Total outlays <br /> in the prior year (FY 2012 -13) were $10.2 million. Of the capital outlay fund's $30.4 million fund balance, <br /> $23.4 million was committed, and $7 million was assigned. <br /> Proprietary Funds — Enterprise fund net position totaled $216.8 million at the end of the fiscal year, an <br /> increase of $24.1 million over the prior year restated balance of $192.7 million. Enterprise operating <br /> revenues were $73.7 million this year, an increase of $5 million over last year, while net non - operating <br /> revenues (expenses) were $6.6 million compared to ($4.2) million the prior year. Net non - operating <br /> revenues (expenses) experienced a $10.8 million increase due to the gain on sale from Block 2 net of the <br /> decrease in investment in sewer authority. <br /> Enterprise fund operating expenses were $55.4 million this year, up $.2 million from the prior year, most <br /> of which was due to higher operating expenses in the sewer utility fund, and the first full year of expenses <br /> for the Docktown Marina, net of a decrease in expenses of the water utility fund. <br /> Water Utility — The water utility fund realized operating income of $7.7 million in the current year, up <br /> from the operating income of $4.3 million in the prior year. Revenues increased by $2.5 million, while <br /> expenses decreased by $.9 million. <br /> Sewer Utility — The sewer utility fund realized operating income of $9.1 million in the current year, up <br /> from the operating income of $8.3 million in the prior year. Revenues increased by $1.5 million, while <br /> expenses increased $0.7 million from the prior year. <br /> 13 <br />