AgdaPkt 2011-01-10 - Laserfiche WebLink

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�. Arrac�rB 1 Page 6 Capital Projects Funds Highlights Capital projects funds are used to account for the resources dedicated to the construction and acquisition of capital facilities, except those capital facilities financed by enterprise funds. The City expended $7.6 million in FY 2008/09 for general capital projects. The more visible projects on which funds were expended in FY 2009/10 are: the Sidewalk Replacement Program ($1.3 million), the Shores Lagoon System Dredging Project ($0.9 million) and the EI Camino Real Grand Blvd. Improvement Project ($0.9 million). During the year ended June 30, 2010, General Improvement District 1-64 facilities fee fund expended $1.7 million for the Exterior Levee Certification. Enterprise Funds Highlights Water Fund In terms of the City Council's adopted policy to keep total annual revenues and expenses in balance, cash basis revenues of $24.804 million including interest earnings were less than cash operating and capital outlay expenses (including debt service payments) of $28.603 million. Of the capital outlay expenses, $3.9 million were covered by bond proceeds. The total net working capital in the water fund as of June 30, 2010 was $6.9 million which is $0.4 million more than the target of $6.5 million ($2.0 million for an emergency reserve and 25% of operation and maintenance expenses for a rate stabilization reserve). Based on the adopted FY 2009/10 budget, the total net working capital as of June 30, 2010 should have been $7.8 million. Revenues generated from water sales and service fees were 7.97% less than the projected amount at the end of FY 2009/10. As a result of Redwood City's water conservation efforts, total water sales (in gallons) for FY 2009/10 were 5% less than the projected amount. It must be noted that a percentage decrease in water sales is not 1:1 with a decrease in revenues. The water rate structure is composed of inclining rate blocks where the more a customer uses, the more he pays. Revenues, therefore, are dependent upon the amount of water sold in the various tiers. The greater the decrease in water sold at the higher tier, the greater the decrease in total revenue. A 9% water rate increase was adopted for FY 2011/12 by the City Council on April 12, 2010. ' Sewer Fund The same Council policy of total annual revenues and expenses in balance applies to the sewer fund as well. Cash basis revenues of $20.324 million were more than cash operating and capital outlays of $18.562 million. For fiscal year ended June 30, 2010, the sewer enterprise fund ended with a balance of $3.7 in retained earnings available for appropriation.