AgdaPkt 2009-12-14 - Laserfiche WebLink

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6.1 B - Attachment No. 4 MANAGEMENT'S DISCUSSION AND ANALYSIS Capital Outlay Fund-This fund accounts for resources provided to finance general governmental capital projects. In FY 2008/09, the capital outlay fund generated $1.3 million in revenue, most of which was from interest and intergovernmental grants. This fund was also the recipient of$8 million of transfers from the general fund. Total outlays were $13.3 million of which $8.4 million met with City's criteria for capitalization. The balance ($4.9 million)was expended in FY 2008/09. Total outlays in the prior year(FY 2007/08)were$12.9 million. All of the capital outlay fund's$22.4 million fund balance is reserved or designated for specific capital projects. Redevelopment Agency Fund - This fund accounts for resources provided to finance the City's Redevelopment Agency, a separate legal entity organized pursuant to the community redevelopment law of the Health and Safety Code of the State of California. The City Council also serves on the Board of Directors of the Redevelopment Agency. The Redevelopment Agency's fund balance increased by $.8 million primarily due to greater than anticipated property t�revenue in FY 2008/09. Proprietary Funds Enterprise fund net assets totaled $142.4 million at the end of the fiscal year, a decrease of$8.2 million over the prior year balance of$150.6 million. Enterprise operating revenues were $48 million this year, an increase of$2.4 million over last year,while net non-operating revenues(expenses)were $4.9 million compared to$2.7 million the prior year. Net non-operating revenues (expenses) experienced a$2.2 million change due to the FY 2008/09 $1.3 million increase in authority investment, combined with the FY 2008/09 increases in grant revenue of$.4 million and decrease in the interest expense of$.8 million. Enterprise fund operating expenses were$43 million this year,up$.5 million from the prior year,most of which was due to higher operating expenses in the parking and sewer utility funds. Water Utility - Net assets of the water utility fund increased $4.8 million in the current year to a total of$55.8 million. This increase resulted from increased operating revenues, increased grant revenue, and a decrease in expenses for water purchased from San Francisco Water Department as more water needs were met through use of recycled water. Sewer Utility - The sewer utility fund realized operating income of$2.7 million in the current yeax, up from the operating income of$1 million in the prior year. Revenues increased by $2.1 million while expenses increased $.366 million over the prior year due to increased costs associated with the Sanitary Sewer Management Plan mandate from the San Francisco Bay Regional Water Quality Control Board. Parking Fund - Operating revenues decreased by $258,000 this year to $.8 million, while operating expenses increased to $2.5 million, an increase of$.4 million due to the expanded parking program downtown, including increased costs associated with increased staffing related to downtown public safety. The general fund transferred $1.1 million into the parking fund to partially cover the operating deficit. Port Fund - Operating revenues were down 4.1% while operating expenses were down .9% from FY 2007/08. Interest income decreased 42% from $593,000 to $346,000. Overall, net assets decreased from $39 million to $23 million, or 42% as the Port experienced a $19.8 million extraordinary item for pollution remediation that had previously been capitalized. GENERAL FUND BUDGETARY HIGHLIGHTS Property t�es exceeded budget by $1.3 million primarily due to the receipt of a $3 million payment from the County of San Mateo due to the over-deduction of Education Revenue Augmentation Fund amounts from the City in prior years,which exceeded the estimated amount by$1.6 million. Sales and other taxes were less than budget by $3.2 million mostly due to an unanticipated decline in sales tax revenue ($3.8 million), transient occupancy t�es ($.8 million) and property transfer t� ($.3 million), offset by higher utility users' t�es($1.6 million). Licenses and permits were less than budget by$.5 million due to a decline in construction activity during the year. 10