AgdaPkt 2007-12-17 - Laserfiche WebLink

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Attachmerrt 4 Enterprise Funds Hicfhlights Water �und For the fiscal year ended June 30, 2Q07, #he water enterprise fund had retained earnings available for appropriation of $10.1 milli�n, including $8.3 million in the water rate s#abilization fund. The net amount of the water rate stabilization fund leaves a balance of $1.8 million which is $.7 million short of covering the $2.� million emergency reserve and �500,000 operating reserve that the Council has directed staff to maintain. In terms of the City Council's adopted policy to keep total annual revenues and expenses in balance, cash basis revenues of $20,6 million were more than cash aperating expenses of $17.9 million. Sewer Fund The same Council policy of total annual revenues and expenses in balance appiies to the sewer fund as weii. Cash basis revenues of $15 million were iess than cash operating and capifal outlays of $15.1 million due primarily #o the increase in the contribution to South Bayside System Authority {SBSA). For fiscal year ended Jur�e 30, 2007, the sewer enterprise fund ended with a deficit balance of ($.5) million in retained earnings available for apprapriation. The operating deficit is attributed to the unanticipated increased contribu#ion amount ta the SBSA for FY 2006/07. The City is a member of the South Bayside System Authority JPA, a sewage treatment facility. As a member agency, the City is required to contribute annual amounts established by the SBSA commission to both the operations and capital improvement program. In FY 2006/07, due to public notice requirements required by proposition 218, the sewer ra#e adjustment was adopted prior to the SBSA Commission approving their new budget for FY 2006/07. This budget included additional member contributions to the capital improvement plan, which had not been previousfy budgeted. Accordingly, we were unable to charge the full cost of operating the sewer utility to ratepayers in FY 2006/07. Parking Fund Redwood City maintains an-street�and off-street parking spaces within the downtown area. In FY 2005/06 the City began operatians of the new downtown underground parking garage. in FY 2006/07 operating revenues increased to $862,328 compared ta $438,284 in FY 2005/06, while aperating expenses increased to $1.7 miflian, an increase of $1.2 million fram FY 20Q5/06. The increase in operating expenses is attributed to costs associated with the maintenance and operations of the new parking garage and costs associated with public safety patrol in the downtown area. The general fund aiso transferred �350,000 to the parking fund to partially cover the operating deficit. The remainder of the deficit was drawn from retained earnings in the parking fund. The result is a nefi loss for the year ending June 30, 2�07 of$(863,492). Port The net assets for the Port increased by $2.5 miflion for the fiscal year ended June 30, 2007. Operating revenues decreased fram $6.2 million in FY 2QQ5/06 to $5.5 million in FY 2006/07 while operating expenses decreased from $3.6 million in FY 2005/06 to $3.5 million in FY 2006/07. 5