AgdaPkt 2007-01-08 - Laserfiche WebLink

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Attachment I Fund Balance The net effect of the revenues, expenditures, transfers, and changes in other fund balance reserves has been an increase of $2.8 million in the unreserved fund balance (available for any Council designated expenditure) bringing the balance to $20.8 million. In FY 1999/00, the Council adopted a Finance Committee recommendation to maintain this amount between 15% and 20% of estimated revenues. Applying this formula (using FY 2006/07 budgeted revenues) leaves approximately $6.5 million in excess fund balance. In view of the financial risks confronting the City, staff recommends that these funds be retained in the general fund to be used to sustain the organization in the event any of these risks materialize or the City experiences the effects of another economic downturn. Special Revenue Funds Hiqhliqhts Special revenue funds are used to account for revenue received from specific taxes or other dedicated revenue sources (other than for major capital projects) restricted by law or administrative action to expenditures for specified purposes. Property tax increment revenues received by the Redevelopment Agency totaled $8.4 million in FY 2005/06 compared to $8.3 million in FY 2004/05, which represents a 1.37% increase. The transportation fund receives revenue from the San Mateo County Transportation Authority based on the voter approved (Measure A) countywide one-half of one percent sales and use tax levied for transportation-related programs and projects. In FY 2005/06, the City received $1,278,604 in "Measure An revenue compared to $1,121,857 in FY 2004/05. This represents a 13.97% increase. Gas tax revenues (received from the state through gasoline taxes paid by motorists) remained relatively level at $1.447 million in FY 2005/06 compared to $1.474 million in FY 2004/05. These funds may only be used for roadway maintenance and construction purposes as defined in sections 2105,2106, and 2107 of the State Streets and Highway Codes. Self-Insurance Fund Hiqhliqhts The self-insurance internal service fund had a deficit net assets balance of $1 ,094,175 due to an unfunded increase in workers' compensation claim liabilities. Increased self- insurance premiums and increased medical costs have contributed to the rise of the outstanding workers' compensation claims liabilities. The Audit Committee has recommended that an amount equal to the deficit of $1,094,175 be designated in the general fund and that staff present to Council a request to transfer these funds to the self-insurance fund. This recommendation appears as a separate item in this evening's agenda. 3