AgdaPkt 2014-01-13 Interview, Closed and Regular

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7.1.G. - Page 39 Management's Discussion and Analysis For the year ended June 30, 2013 increase in lease payments to refund the Public Financing Authority 2003 Refunding Bonds and increased expenses for new programs related to economic development and organizational efficiencies. BUSINESS -TYPE ACTIVITIES Business -type activities prior to transfers increased the City's net position by $10.9 million in FY 2012/13. Key elements accounting for increases or decreases in revenues and expenses are as follows: Business -type revenues increased primarily due to an increase in utility rates and a new enterprise fund, Docktown Marina. Parking fund revenues increased due to increased traffic downtown as people were drawn to the downtown area by the theater, restaurants, and City sponsored events. Port revenues decreased $1.3 million due to the receipt of grant revenue in the prior year. The water utility's expenses were higher in FY 2012/13 primarily due to an increase in the rates charged for water by the San Francisco Public Utilities Commission, and increased expenses related to the water meter replacement program. Sewer utility expenses decreased slightly due to a decrease in payments to South Bayside System Authority for wastewater treatment, and a decrease in expenses related to closed circuit television inspection of sewer lines. The expenses of the parking fund remained flat at $2.4 million. The Port of Redwood City experienced an 18.8% increase in expenses due to a $0.575 million loss on disposal of assets associated with the Wharves 1 & 2 replacement project, and increased interest expense associated with the 2012 revenue bonds. During fiscal year 2012/13 the City took over the operation of the Docktown Marina, including billing tenants for boat slips, and maintenance of docks. Expenses for the partial year of operation were $.24 million. FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds The general government functions are contained in the general, special revenue, debt service, and capital project funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources by using the modified accrual basis of accounting. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. 11