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City of Redwood City 6.1.D. - Page 41 <br />Management's Discussion and Analysis <br />For the fiscal year ended June 30, 2016 <br />Enterprise fund operating expenses were $73.940 million this fiscal year, up $15.342 million from the prior <br />fiscal year, most of which was due to higher operating expenses in the sewer utility fund ($12.265 million). <br />Water Utility — The water utility fund realized operating income of $3.960 million in the current fiscal <br />year, down from the operating income of $6.644 million in the prior fiscal year. Revenues increased by <br />$1.164 million, while expenses also increased by $2.568 million, and transfers into the water fund <br />increased by $689 thousand. <br />Sewer Utility — The sewer utility fund realized operating income of $406 thousand in the current fiscal <br />year, down from the operating income of $10.481 million in the prior fiscal year. Revenues increased by <br />$11.410 million, while expenses increased by $7.905 million from the prior fiscal year, primarily due to <br />expenses and increase in the investment in the Silicon Valley Clean Water Authority. Net transfers out <br />increased by $240 thousand as well. <br />Parking Fund — Operating revenues increased by $318 thousand this fiscal year to $2.401 million, while <br />operating expenses increased by $90 thousand to $3.006 million. The net position of the parking fund <br />decreased by $338 thousand primarily due to depreciation on capital assets. <br />Port Fund — Operating revenues were slightly up $58 thousand while operating expenses were up $75 <br />thousand over FY 2014-15. Nonoperating expenses were down $141 thousand and capital contributions <br />were up $83 thousand from FY 2014-15. Overall, net position increased from $33.245 million to $34.991 <br />million, or 5.3%. <br />Docktown Marina—This fund's activity began in March 2013. During this third full fiscal year of operations <br />it had $664 thousand in operating revenues, $826 thousand in operating expenses, and $15 thousand in <br />investment earnings. During the FY 2015-16, the General Fund transferred $3.004 million into the <br />Docktown Marina Fund in relation to the litigation settlement agreement. The Docktown Marina Fund <br />had a change in net position of $2.857 million, resulting in an ending net position of $2.692 million. <br />GENERAL FUND BUDGETARY HIGHLIGHTS <br />Propertytaxes exceeded budget by $4.133 million primarily due to the receipt of a $4.774 million payment <br />from the County of San Mateo due to the over -deduction of education revenue augmentation fund <br />amounts from the City in prior fiscal years. This payment exceeded the estimated revenue amount by <br />$2.274 million. Other factors were the receipt of residual property tax distribution attributable to the <br />former Redevelopment Agency in the amount of $3.399 million, which exceeded the estimated amount <br />by $350 thousand, and the overall increase in property taxes as the housing market strengthened. <br />Sales and other taxes were greater than budget by $204 thousand mostly due to an unanticipated increase <br />in franchise taxes ($1.091 million) and utility users tax ($271 thousand), offset by shortfalls in transient <br />occupancy tax ($299 thousand) and sales tax ($227 thousand). <br />Licenses and permits were less than budget by $126 thousand due to building permits and fire permits <br />coming in lower than expected. <br />Use of money and property tax revenue was greater than budget by $321 thousand due to greater <br />investment earnings than expected as investment returns continued to rise. <br />14 <br />