|
BACKGROUND
<br /> Annually, staff presents the year-end financial report for the Capital Improvement
<br /> Program (Report) to Council for approval. The Report summarizes the actual results of
<br /> the financial activities for the CIP Budget, details changes in budget amendments or
<br /> adjustments in year-end balances and recognizes budget carryovers to the following
<br /> year. The City's Comprehensive Annual Financial Report (CAFR) is still in progress;
<br /> therefore, the financial information included in this Report is unaudited. The audited
<br /> information will be reflected in the CAFR and will be presented to Council once the
<br /> City's independent auditor has issued its opinion on the CAFR and it has been reviewed
<br /> by the Audit Committee. This is expected to occur in January 2013. If there are any
<br /> differences in the financial information presented in this Report and the CAFR as a
<br /> result of the audit, those changes will be highlighted for the Council at the time the
<br /> CAFR is presented to the Council for acceptance in January 2013.
<br /> DISCUSSION
<br /> This Report presents the status of the CIP as of June 30, 2012. It compares actual
<br /> revenues and expenditures to the projections for the year and recommends Council
<br /> approval of certain increases, decreases or transfers of funds between projects and the
<br /> carryover of project funds from 2011/12FY to 2012/13FY.
<br /> Sewer CIP Funds
<br /> Table 1A summarizes the 2011/12FY activity for the Sewer CIP Funds. The Amended
<br /> Budget is the original budget plus all budget amendments approved by Council through
<br /> the adoption of the Mid-Term Budget on June 19, 2012. The Adjusted Budget includes
<br /> the recommended year-end budget amendments being brought forth in this Report. As
<br /> shown in Table 1A actual revenues exceeded adjusted budget by $99,123 and actual
<br /> expenditures were less than adjusted budget by $3,105,205. Revenues exceeding
<br /> budget included sewer connection fees ($66,789), interest income ($29,941) and PG&E
<br /> solar rebates ($2,393). The majority of the expenditure variance is due to budgeted
<br /> projects not being started and/or completed during the fiscal year ($3,057,620); all of
<br /> which are being recommended to be carried forward to the 2012/13FY as presented in
<br /> Table 1B.
<br /> Table 1A - Sewer CIP Funds Adjusted Budget to Actual Revenues, Transfers &
<br /> Expenditures
<br /> Recommended
<br /> Amended Year-End Adjusted $ ok
<br /> Sewer CIP Funds Budget Budget Budget Actual Variance Variance
<br /> Amendments
<br /> Beginning Fund Balance 8,309,044 8,309,044 8,309,044
<br /> Plus Revenues 95,420 1,154 96,574 195,697 99,123 102.60%
<br /> Transfers In/Out 2,322,175 2,322,175 2,322,175
<br /> Less Expenditures (5,451,900) (23,167) (5,475,067) (2,369,862) 3,105,205 -56.7%
<br /> Ending Fund Balance 5,274,739 (22,013) 5,252,726 8,457,054 3,204,328
<br /> Staff is recommending that Council approve additional budget amendments totaling
<br /> $22,013 and budget carryovers to 2012/13FY totaling $3,057,620 as shown in Tables
<br /> 1A and 1 B, respectively. The recommended budget amendments are the following:
<br /> Page 2 of 11
<br />
|