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1. Additional funding for the Repair and Replacement Funds for the City. Amount requested: $1,000,000 2. The establishment of an Allowance for Doubtful Accounts for the write-off of uncollectable accounts receivables in accordance with generally accepted accounting principles and Council policy adopted on October 18, 2011. Requested amount: $157,170 3. Additional funding of annual debt service payment and the repair and replacement fund for the golf course. Amount requested: $170,000 4. Transfer of funds to the Capital Improvement Program Reserve for funding the Energy Upgrade Pleasanton Program adopted by Council on October 18, 2011. Amount requested: $161,866 5. Additional funding of the 10% Reserve for Economic Uncertainties to reflect increased revenues. Amount requested: $172,000 As proposed, the General Fund would end the fiscal year with level reserves of$25.3 million. Ms. Wagner compared the 2010-11 fiscal year to previous years. The 2010-11 fiscal year budget is reduced to $6 million from the historic high in fiscal year 2007-08. While property tax revenues are up over the previous budget cycle, the City continues to experience decreases in the following areas: Sales tax revenues - $2.6 million; Hotel/motel tax revenues - $400,000; Interest income - $1 million; Development user fees - $660,000; Recreation and other revenues. Ms. Wagner reviewed the Water Fund, which began with a fund balance of $7.2 million and closed at $6.2 million. Despite a rate increase in September 2010, water revenues were $2.3 million less than projected due to overestimates by staff and a delay in actually implementing the rate increase. Expenditures included $646,000 to pay off the 2004 Water Revenue Bond, which will provide an annual savings of approximately $200,000 annually over the next three years. She noted that with this savings and an additional $1 million in annual revenues resulting from the rate increase, the Water Fund should begin to break even in 2011-12. The Sewer Fund opened the fiscal year with $3.1 million in reserves. Revenues were slightly overestimated (5%), however actual revenues still realized an operating gain of $351,000 over fiscal year 2009-10. The Sewer Fund ends the fiscal year with $3.4 in reserves. Ms. Wagner reviewed the Golf Course Fund, which started the year with a fund balance of$1.2 million. Revenues, comprised of green fees, cart fees, food and beverage, and range fees were approximately $276,000 less than anticipated. The 58,559 rounds of golf played this fiscal year were down nearly 8% from the 2009-10 fiscal year. Expenditures were also less than projected by $222,000, and the fund actually experienced a net gain of $402,000, which is the largest operating gain since the opening of Callippe in 2006-07. A General Fund transfer of $1.2 million subsidized the $1.5 million in annual debt service payments on the facility. The newly added Repair and Replacement Funds include the Vehicle Replacement, Equipment Replacement, Facilities Renovation, Police Vehicle Replacement, Park and Median Renovation, Street Light Replacement, Traffic Signal Replacement and new Golf Replacement Funds. The Repair and Replacement Funds opened the fiscal year with $23.3 million. Revenues exceeded expectations, largely because of transfers from the General Fund for the new Golf Replacement Fund. Expenditures totaled $2.2 million less than originally planned, which is not uncommon in a fund like this. Vice Mayor Thorne asked if these expenditures were intentionally deferred for budgetary reasons. Ms. Wagner said staff evaluated those items scheduled for replacement and found little to no justification for City Council Minutes Page 5 of 8 November 1, 2011