Item 4D: Resolution Acknowledging Receipt of CAFR

Home Browse Search

Total business-type net assets increased $10.3 million in the current fiscal year. Significant issues regarding proprietary funds are as follows: The Ambulance Transport Fund reported a $0.2 million increase in net assets. There were no significant changes within the Fund during fiscal year 2007. The Municipal Airport Fund reported a $3.3 million increase in net assets. The increase was largely due to capital contributions of $4.7 million for airport projects. The Parking Services Fund reported a $0.2 million decrease in net assets. During fiscal year 2006, Symantec Corporation relocated their offices which resulted in a $0.2 million decrease in monthly parking revenues for fiscal year 2007. The Stormwater Utility Fund reported a $3.3 million increase in net assets. The increase was principally due to capital contributions of $2.7 million from developers for stormwater improvements. The Wastewater Utility Fund reported a $3.7 million increase in net assets. The increase was mainly due to capital contributions of $6.0 million for wastewater improvements and infrastructure. Other factors concerning the finances of proprietary funds can be found in the previous discussion of the City’s business-type activities. General Fund Budgetary Highlights The City’s final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects, and supplemental appropriations approved during the fiscal year. The final fiscal year 2007 budget for the General Fund was increased by $8.0 million. The primary reasons for this increase are as follows: $5.8 million increase to police, including $5.1 million for grant-funded activities. $1.2 million in interfund transfers, including $0.9 million to the General Capital Projects Fund. These changes were funded primarily by an increase of $5.2 million in intergovernmental revenues and $2.3 million in unspent resources from the prior year. The net decrease of $2.0 million in budget basis fund balance for the year ended June 30, 2007 was a significant improvement over the projected deficit of $6.0 million in the General Fund final amended budget. Actual revenues were $3.0 million lower than budget, primarily due to intergovernmental revenues that were below budget projections by $2.4 million, which was offset by charges for services and miscellaneous revenues which both exceeded budget projections by $0.2 million and $0.6 million, respectively. On the expenditure side, departments under-spent their budgets by a total of $6.4 million. The significant changes were in Police ($3.3 million), Central Services ($1.1 million), and Planning and Development ($0.6 million). Economic Factors and Next Year’s Budgets and Rates During the preparation of the budget for the ensuing fiscal year, the long-term impacts of the local economy were examined in conjunction with business decisions made by the City. The following are the major assumptions used in developing the FY 2008 budget: Interest rates on investments will be 5.0%. Property tax revenue is expected to decrease 7.0% in 2008, this is partially the result of the decision not to renew the Youth and School Services local option levy. Non-represented salaries will increase by 3.0%, collectively bargained agreements will increase between 3.2% - 4.2%. Health benefit rates will increase by 6.0%. PERS costs are expected to be 26% of payroll, which is a 3% decrease from the prior year. During the current fiscal year, budget basis unreserved fund balance in the General Fund decreased to $26.9 million, a decrease of $6.0 million over the prior year. City staff will be submitting a fiscal year 2008 supplemental budget to the City Council in December which appropriates $1.9 million in fiscal year 2007 ending fund balance for a $0.9 million transfer to the Road Capital Projects Fund and $1.0 million for reappropriations and reserves. îï