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funding for the Repair and Replacement Funds for the City's infrastructure, equipment, park and
<br /> median funds, and computer technology in the amount of $1,000,000; (4) Monies to fund an Allowance
<br /> for Doubtful Accounts for the write-off of uncollectible accounts receivable per generally accepted
<br /> accounting principles (GAAP) and Council policy adopted on October 18, 2011, in the amount of
<br /> $157,170; (5) Additional funding of annual debt service payment and the repair and replacement fund
<br /> for the golf course in the amount of $170,000; (6) Transfer of funds to the Capital Improvement
<br /> Program Reserve (CIPR) for funding the Energy Upgrade Pleasanton Program adopted by Council on
<br /> October 18, 2011, in the amount of$161,866.
<br /> Finally, additional changes to the were made to the General Fund Reserve, for Economic Uncertainties
<br /> in the amount of$172,285 to reflect increased revenues.
<br /> As proposed, the General Fund would end the fiscal year with level reserves of $25.3 million.
<br /> Ms. Wagner compared the 2010-11 fiscal year to previous years. The 2010-11 fiscal year budget is
<br /> reduced to $6 million from the historic high in fiscal year 2007-08. While property tax revenues are up
<br /> over the previous budget cycle, the City continues to experience decreases in the following areas:
<br /> Sales tax revenues - $2.6 million; Hotel/motel tax revenues - $400,000; Interest income - $1 million;
<br /> Development user fees - $660,000; Recreation and other revenues.
<br /> Ms. Wagner reviewed the Water Fund, which began with a fund balance of $7.2 million and closed at
<br /> $6.2 million. Despite a rate increase in September 2010, water revenues were $2.3 million less than
<br /> projected due to overestimates by staff and a delay in actually implementing the rate increase.
<br /> Expenditures included $646,000 to pay off the 2004 Water Revenue Bond, which will provide an annual
<br /> savings of approximately $200,000 annually over the next three years. She noted that with this savings
<br /> and an additional $1 million in annual revenues resulting from the rate increase, the Water Fund should
<br /> begin to break even in 2011-12.
<br /> The Sewer Fund opened the fiscal year with $3.1 million in reserves. Revenues were slightly
<br /> overestimated (5%), however actual revenues still realized an operating gain of $351,000 over fiscal
<br /> year 2009-10. The Sewer Fund ends the fiscal year with $3.4 in reserves.
<br /> Ms. Wagner reviewed the Golf Course Fund, which started the year with a fund balance of $1.2 million.
<br /> Revenues, comprised of green fees, cart fees, food and beverage, and range fees were approximately
<br /> $276,000 less than anticipated. The 58,559 rounds of golf played this fiscal year were down nearly 8%
<br /> from the 2009-10 fiscal year. Expenditures were also less than projected by $222,000, and the fund
<br /> actually experienced a net gain of $402,000, which is the largest operating gain since the opening of
<br /> Callippe in 2006-07. A General Fund transfer of $1.2 million subsidized the $1.5 million in annual debt
<br /> service payments on the facility.
<br /> The newly added Repair and Replacement Funds include the Vehicle Replacement, Equipment
<br /> Replacement, Facilities Renovation, Police Vehicle Replacement, Park and Median Renovation, Street
<br /> Light Replacement, Traffic Signal Replacement and new Golf Replacement Funds. The Repair and
<br /> Replacement Funds opened the fiscal year with $23.3 million. Revenues exceeded expectations,
<br /> largely because of transfers from the General Fund for the new Golf Replacement Fund. Expenditures
<br /> totaled $2.2 million less than originally planned, which is not uncommon in a fund like this.
<br /> Vice Mayor Thorne asked if these expenditures were intentionally deferred for budgetary reasons. Ms.
<br /> Wagner said staff evaluated those items scheduled for replacement and found little to no justification for
<br /> doing so. Staff will continue to monitor the plan closely and is looking at alternatives that are more
<br /> efficient when replacement is ultimately warranted.
<br /> Ms. Wagner stated that staff is in the process of completing the comprehensive annual financial report,
<br /> which will be presented to the audit committee in January 2012 and the Council shortly thereafter. As
<br /> City Council Minutes Page 5 of 8 November 1, 2011
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