AgdaPkt 2005-01-24 - Laserfiche WebLink

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MANAGEMENT'S DISCUSSION AND ANALYSIS Port Fund - Operating revenues were up 10.5% while operating expenses were up 18.2% from FY 2002/03. Non- operating revenues (expenses) were down 159% primarily due to increased interest expense and loss on disposal of capital assets. Overall, net assets increased from $28.6 million to $30.3 million, 6%. GENERAL FUND BUDGETARY HIGHLIGHTS Property taxes exceeded budget by $1.8 million primarily due to the receipt of a $1.1 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. Sales and other taxes exceeded budget by $2.3 million mostly due to better than anticipated sales tax revenue ($1.3 million), higher utility users' taxes ($0.4 million), and transient occupancy taxes ($0.2 million). Motor vehicle in lieu tax payments were $1.1 million less than budgeted due to the State of California reducing the tax rate on vehicle registrations and not backfilling the reduced revenues to local government. Expenditures, overall, were $1.6 million less than budgeted as departments exercised greater fiscal restraint with discretionary expenditures because of the City's difficult financial condition. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets - At the end of FY 2003/04, the City had $249.8 million, net of depreciation, invested in a broad range capital assets used in governmental activities, as shown in the table below: Capital Assets at Year-end (in Millions) Governmental Business- Type Activities Activities Total 2004 2003 2004 2003 2004 2003 Variance $ $ $ $ $ $ Land 11.581 11.577 3.448 3.448 15.029 15.025 0.027% Streets 60.304 60.304 60.304 60.304 0.000% Construction in progress 48.463 33.917 23.851 18.343 72.314 52.260 38.374% Buildings 56.024 56.024 9.498 9.299 65.522 65.323 0.305% Equipment 15.289 16.030 2.002 2.003 17.291 18.033 -4.115% Improvements 76.767 76.119 76.767 76.119 0.851% Harbor improvements 3.292 3.292 3.292 3.292 0.000% Parks, bridges, etc. 19.488 18.829 19.488 18.829 3.500% Traffic signals 1.968 1.968 1.968 1.968 0.000% Storm drains 7.015 2.914 7.015 2.914 140.734% Less accumulated depreciation (52.891) (48.447) (36.281) (34.442) (89.172) (82.889) 7.580% Total capital assets 167.241 153.116 82.577 78.062 249.818 231.178 8.063% Governmental Activities The substantial (43%) increase in construction in progress is driven for the most part by Redevelopment Agency construction projects in connection with downtown revitalization efforts. The increase in Parks resulted from renovation of an existing park. Storm Drains capital assets increased due to the relocation of the downtown culvert in preparation for the construction of the downtown underground parking garage. Business- Type Activities The $5.5 million increase in Construction in Progress resulted primarily from the environmental remediation of the liquid bulk terminal facility at the Port. 10