RES 03081 - Laserfiche WebLink

4. Projected General Fund Ending Reserves Concurrent with the preparation of this document, staff has completed a midyear financial review for 2002-03. This report will be separately submitted to Council for approval. However, all of the tables contained in the 2003-04/2004-05 budget assume that the 2002-03 budget has been amended per the midyear report. Key elements of the midyear report include: a reduction in revenue estimates of $1 million a decrease in expenditures of $4 million the establishment of a Temporary Recession Reserve with $1.3 million the addition of $1.4 million to the Capital Reserve for use in 2003-04 for the Veterans Memorial Building Renovation total projected General Fund reserves at the end of 2002-03 are $10.3 million. As a result of the staff recommended budgets for 2003-04 and 2004-05, the Reserve for Economic Uncertainties will be fully funded at the 10% level required by City policy. By the end of 2003-04, the balance in the Temporary Recession Reserve is projected to be $2.4 million, unless these funds are needed to offset State Budget impacts or if the economy weakens, causing revenues to fall short of projections. This balance is expected to cover the loss of revenue to the City if the VLF backfill is eliminated by the State, which represents about $2.4 million to the City annually. This will then give the City time to react to any permanent budget change. Total projected General Fund reserves are $10.4 million at the end of 2003-04, and $10.3 million in 2004-05. The breakdown of these recommended reserves is as follows: GENERAL FUND ENDING RESERVES 6/30/03 6/30/04 6/30/05 Reserve for Economic Uncertainties(10%) $ 7,510,000 $ 7,610,000 $ 7,870,000 Reserve for Capital Projects 1,400,000 0 0 Reserve for Carryovers 0 340,000 0 Reserve for Inventory and Prepaids 51,406 51,406 51,406 Temporary Recession Reserve 1,300,000 2,400,000 2,400,000 TOTAL $ 10,261,406 $ 10,401,406 $ 10,321,406 C. ENTERPRISE FUNDS 1. Water Fund Projected 2003-04 Water Operating revenues are $17.6 million. Net transfers-out are projected to be $2.5 million. Transfers-out include $1.85 million for replacement funding, $100,000 for Polybutylene service repairs, and $ 585,000 for the 1994 Series A & B Bonds. Fiscal Year 2003-04 expenditure requests total $13.8 million, including $9.1 million as payment to Zone 7 for purchased water. Thus net income is XX