AgdaPkt 2017-12-18 Special Joint SA PFA

Browse Search

City of Redwood City Management’s Discussion and Analysis For the fiscal year ended June 30, 2017 10 GOVERNMENTAL ACTIVITIES Governmental activities prior to transfers increased the City’s net position by $8.2 million. Including transfers, governmental activities net position increased $5.5 million. Transfers out of governmental activities and into business-type activities during FY 2016-17 consisted of the transfer out of the General Fund to the Docktown Marina fund of $2.4 million to cover litigation settlement expenses related to ending residential uses at the marina, a transfer out of the General Fund to the Water Fund in the amount of $200 thousand to support operations, and a transfer out of the General Fund to the Parking Fund in the amount of $100 thousand to support operations. Key elements of the increase/decrease in revenues for governmental activities are as follows: General governmental revenues (non-program) increased by 6.1%, or $5.9 million from FY 2015-16, as almost all broad categories of general revenues increased, other than franchise taxes, property transfer taxes, motor vehicle in lieu tax, and investment earnings, which all decreased. Within the broad categories, property taxes increased $4.6 million, sales taxes increased $1.3 million (including transportation-related sales taxes that were not included in prior fiscal year calculations), franchise taxes decreased $28 thousand, property transfer taxes decreased $136 thousand, business license taxes increased $98 thousand, utility users’ taxes increased $195 thousand, transient occupancy taxes increased $101 thousand, motor vehicle in lieu tax decreased $132 thousand, and investment earnings decreased $183 thousand, and other revenues increased $133 thousand. Community development revenues increased due to an increase in building permits issued and an increase in capital grants and contributions. Public safety revenues increased primarily due to an increase in fees collected for full fire services provided by Redwood City to the City of San Carlos through an agreement between the Cities. Transportation revenues decreased due to a decrease in Measure A grant revenues received. Environmental support and protection revenues increased slightly due to an increase in property tax revenues in the various maintenance district funds. Leisure, cultural and information services decreased primarily due to a large decrease in the receipt of Park Impact Fees. Policy development and implementation revenue increased due to including $4.1 million of right-of-way rent received from the Water and Sewer Funds, which had been eliminated (consolidated) in prior fiscal year CAFRs. The increase in revenue was offset by the elimination (consolidation) of lease revenue of $700 thousand in the Public Financing Authority Debt Service Fund that was previously reported in this function. Key elements of the increase/decrease in expenses for governmental activities are as follows: Total governmental activities expenses were up $11.9 million, or 9.5%, due to increases in almost all functions, except environmental support and protection. Interest on long-term debt increased slightly to $63 thousand. Community development expenses increased $811 thousand primarily due to increases in community planning, strategic planning, administration, general engineering, subdivision engineering, and code enforcement. Human services expenses increased slightly ($156 thousand) due to general increases related to supplies and services costs. Public safety expenses increased by $5.3 million primarily due to increases in all police expenditure accounts, as well as an increase in all fire expenditure accounts. A large component of these increased expenses is the recording of the increase in the City’s CalPERS retirement obligation. Transportation expenses increased $2.5 million due to including street tree maintenance expenditures in this category instead of in leisure, cultural, and information services as it had been presented in prior fiscal years. Transportation expenses also increased as a result of increased 6.1.E. - Page 33