AgdaPkt 2006-01-09 - Laserfiche WebLink

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MANAGEMENT'S DISCUSSION AND ANALYSIS Public safety revenues were higher in FY 2004/05 due to an increase in Fire Department grant revenue. Transportation revenues increased due to contributions fTom property owners for street improvements and grants. Environmental support and protection revenues increased primarily as a result of increased interest on facilities fees in General Improvement District 1-64. Leisure, cultural and information services declined primarily due to state grant revenue received for the new Redwood Shores library project in the previous year. Policy development and implementation revenues decreased due to the receipt of a donation in the amount of $1 million in the prior year. Key elements of the increase/decrease in expenses for governmental activities are as follows: Total expenses were up 8.1%, or $6.915 million due mostly to increases in public safety, transportation, and environmental support and protection. Public safety increases were driven for the most part by higher salary and benefit costs while transportation expenses were higher because of increased expenses related to the street pavement management program. Environmental support and protection expenses increased due to increased expenses for storm drainage. These increases were offset by budget reductions in other programs of the City along with a decrease in policy development and implementation expenses resulting fTom increased reimbursements fTom other funds. BUSINESS- TYPE ACTIVITIES Business-type activities decreased the City's net assets by $320,000 in FY 2004/05. Key elements accounting for increases or decreases in revenues and expenses are as follows: Business-type revenues were higher in FY 2004/05 than the previous year as the increase in utility rates increased revenues. Investment earnings increased significantly due to the interest earned on proceeds of water revenue bonds issued in FY 2004/05. The sewer utility's expenses were significantly higher (+18.1%) in FY 2004/05 primarily due to an increase of$l million in sewer maintenance programs in FY 2004/05. The Port of Redwood City experienced an 8.6% increase in expenses due to increased operating expenses. FINANCIAL ANALYSIS OF THE CITY'S FuNos As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The general government functions are contained in the general, special revenue, debt service, and capital project funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. At June 30, 2005, the City's governmental funds reported combined fund balances of $138.1 million, which is a decrease of $12.4 million fTom the beginning year balance of $150.5 million. This decrease was primarily due to the spending of the proceeds of bonds the Redevelopment Agency issued in FY 2003/04 in connection with downtown revitalization efforts. Governmental fund revenues increased $18.5 million this year to a new total of$108.4 million. The redevelopment agency fund accounted for most of this increase, with the general fund, the capital outlay fund, the transportation fund, and the Shores Transportation Improvement District fund accounting for the remainder. Expenditures, including capital outlay, increased $18.6 million this year to a new total of $121.2 million. Most of the increase was attributable to an increase in capital outlay expenditures as the City purchased land for the public underground parking garage, and undertook other projects including Schaberg Library renovation and Fair Oaks school field artificial turf. 8