RES 03081 - Laserfiche WebLink

Projected 2004-05 revenues are $12.4 million. Net transfers-out are projected to be $1.5 million including $1.2 million for replacement funding, $180,000 for the Crosstown Interceptor lease-purchase payments, and $147,000 for 1994 Series A & B Bond payments. Fiscal Year 2004-05 expenditure requests total $10.6 million, including $8.3 million as payment to DSRSD for its services. Thus net income is projected to be $326,000, increasing the July 1, 2004 projected beginning fund balance from $3.9 million to $4.2 million by year-end June 30, 2005, including about $643,000 in debt service reserves. As was mentioned previously, sewer rates are currently under review, and the outcome is not yet known. Among other things, City replacement funding is still being studied, and the Dublin-San Ramon Services District (DSRSD) has not completed its regional sewer rate study. An updated City sewer replacement study was done in 2002 that indicated the need to increase the annual replacement accrual. As part of the sewer rate study currently in progress, staff will review the replacement accrual and make a recommendation as to whether it needs to be increased. Therefore, the revenue increases for sewer reflected above assume that there will be increased consumption and possibly small sewer rate adjustments. 3. Storm Drain Fund The Storm Drain Fund reflects the City's efforts to control and improve urban runoff (storm water runoff) water quality before it reaches the local Arroyos and ultimately flows into San Francisco Bay. The primary revenue to the Fund is a property assessment charged to each developed and undeveloped parcel within the City (including City-owned parcels), based upon formulas that approximate each parcel's runoff. The General Fund pays for 50% of the storm drain maintenance costs. Projected revenues are $681,000 in 2003-04, and $709,000 in 2004-05. With the assessments capped, and unless additional funding sources can be found, the General Fund will need to contribute an increasing share to the Storm Drain Fund over time. D. INTERNAL SERVICE FUNDS Intemal charges (accruals) are costs reflected in the operating budgets that represent liabilities we are accumulating as we go along. These liabilities may not result in actual expenditures in the short term, but they will result in future expenditures. There are several examples of future expenditures for which we charge ourselves now, as the liability is accruing. These include accruals for the future replacement of equipment we are now using (similar to charges for depreciation). They also include accruals for renovation of Parks and City facilities that are aging as we use them, and employee costs that are accruing now but will be paid out later, such as unused vacation and retiree medical costs. In accordance with the City's adopted Financial Policies and the City General Plan, the City recognizes these costs as they accrue, and sets the money aside to fund the future expenditures, rather than allowing these costs to accumulate and become a burden on future generations. xxii