AgdaPkt 2005-01-24 - Laserfiche WebLink

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MANAGEMENT'S DISCUSSION AND ANALYSIS 57% of total fund expenditures, while total fund balance represents 65% of that same amount. The fund balance of the City's general fund decreased by $.5 million during the current fiscal year. The following are the major funds that qualified under the reporting criteria for major funds selection: General Fund - General fund revenues increased approximately $.5 million this fiscal year due to increases in property taxes and sales and other taxes offset by decreases in other revenue categories. Property taxes increased $1.5 million as assessed valuations rose 1.2%, reflecting continued development in the City, increased prices for existing residential properties, and large payments due to prior year's supplemental taxes, along with reimbursement from San Mateo County for prior year payments to the Education Revenue Augmentation Fund. General fund expenditures increased $.5 million due to increased public safety expenditures as a result of higher salaries and benefits in the amount of $2 million offset by budget reductions in various City programs. Even so, expenditures were less than budgeted and represented an increase of .9% in FY 2003/04, to a total of $60 million. Transfers out of the general fund decreased $1.5 million in FY 2003/04 as a result of transferring amounts in FY 2002/03 to fund capital projects. Capital Outlay Fund - This fund accounts for resources provided to finance general governmental capital projects. In FY 2003/04, the capital outlay fund generated $2.9 million in revenue, most of which was from a state library grant. This fund was also the recipient of $5.1 million of transfers from the general fund, and $11.5 million of bond proceeds. Total outlays were $4 million of which $1.4 million met with City's criteria for capitalization. The balance ($2.6 million) was expended in FY 2003/04. Total outlays in the prior year (FY 2002/03) were $8.3 million. All of the capital outlay fund's $31 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 $20.3 million primarily due to bond proceeds from bonds issued for the downtown revitalization efforts. Proprietary Funds Enterprise fund net assets totaled $119.0 million at the end of the fiscal year, an increase of $.3 million over the prior year. Enterprise operating revenues were $32.3 million this year, an increase of $3.8 million from last year, while net non-operating revenues were $(.8) million compared to $1.2 million the prior year. Enterprise fund operating expenses were $31.2 million this year, up $2.6 million from the prior year, most of which was due to higher operating expenses in the water and Port of Redwood City funds. Water Utility - Net assets of the water utility fund decreased $.3 million in the current year to a total of $46.4 million. Sewer Utility - The sewer utility fund incurred an operating loss of $.6 million in the current year, down from the operating loss of $1.2 in the prior year. Revenues increased by $.9 million while expenses increased $.2 million over the prior year. Non-operating revenues declined by $.6 million this year as a result of a decrease in the value of the City's investment in the South Bayside System Authority. Parking Fund - Operating revenues decreased by $45,000 this year to $413,000, while operating expenses decreased to $430,000, a decrease of$37,000. Net non-operating revenues (expenses) declined from $28,600 in FY 2002/03 to $9,817 in FY 2003/04 primarily as a result of a drop in interest expense attributable to a variable rate loan, combined with the decrease in the fair value of investments. 9