AgdaPkt 2016-01-11 Closed and Joint SA PFA

Browse Search

City of Redwood City 6.1.E. - Page 40 Management's Discussion and Analysis For the year ended June 30, 2015 expenses increased by $.9 million due to an additional employee for the literacy program ($.1 million), general increased costs ($1 million), net of decreased workers' compensation costs ($.2 million). Policy development and implementation increased $1 million due to the addition of an Assistant City Manager ($.2 million) and a Human Resources Analyst($.1 million), increased legal costs associated with increased litigation matters and increased development in the City($.3 million), and increased project costs related to inner harbor community engagement and public facility improvements ($.4 million). The aforementioned decreases in the worker's compensation costs resulted from the spike in the prior year expenses related to increasing the confidence level of the worker's compensation liability in that year. Therefore, the current year worker's compensation expenses are lower in comparison, as the confidence level has been maintained at its current level. The aforementioned increases in governmental activities expenses were offset by a $23 thousand decrease in environmental support and protection expenses primarily related to the decrease in expenses related to the repair and maintenance of the Redwood Shores lagoon, along with a $9 thousand decrease in interest expense related to the outstanding 2013 Public Financing Authority Refunding Lease. BUSINESS-TYPE ACTIVITIES Business-type activities prior to transfers increased the City's net position by$15.1 million in FY 2014-15. Key elements accounting for increases or decreases in revenues and expenses are as follows: Business-type revenues decreased primarily due to the prior year gain on the sale of Block 2 to the Crossing 900 developer net of an increase in utility rates and parking rates. Port revenues decreased $.1 million due to decreased maritime revenue from lower cargo tonnage. The water utility's expenses were higher in FY 2014-15 primarily due to an increase in the rates charged for water by the San Francisco Public Utilities Commission. Sewer utility expenses increased due to an increase in payments to Silicon Valley Clean Water(SVCW)for wastewater treatment, and debt service reimbursement for SVCW debt issued for wastewater system capital improvements. The expenses of the parking fund increased $.4 million due to increased public safety expenses resulting from disability leave and related backfill costs, and increased allocation of police officer time to the parking fund. The Port of Redwood City experienced a slight $.1 million increase in expenses due to general increases in costs. During fiscal year 2014-15, the second full year of operations of the Docktown Marina by the City, expenses increased by $58,000 primarily due to the City's purchase and removal of boats of delinquent tenants. 11