CCMIN112012 - Laserfiche WebLink

The Repair and Replacement Fund began the year at $22.7 million and ended at $21.8 million, $5.5 million over original projections. The savings is largely attributable to deferring the purchase of new equipment or extending the useful life of existing assets. Once approved by the Council, the City's auditors will complete the comprehensive annual financial report and return to the Council for adoption in January. Upcoming budget items include the 2012/13FY Quarter 1 report on December 4th, the mid-year update in February, and the two-year budget in June. Vice-Mayor Thorne opened the public hearing and, seeing no speakers, closed the public hearing. Councilmember Sullivan said that contributions to the Repair and Replacement Fund are in the long- term best interests of the City, but he was a bit concerned projects like Bernal Phase 2 in what is still an unstable economy. He asked that future Council's be cautious about funding discretionary projects until the economy stabilizes. He also said he supported recycled water infrastructure but cautioned that it would be important to look at net water usage from a combined standpoint to ensure that it provides the intended benefit rather than simply supporting unfettered growth. Councilmember McGovern requested clarification on the funds allocated for Bernal Phase 2. Mr. Fialho said the design of Phase 2 is fully funded and the $561,000 being added to the preserve would increase the funds available for construction. Councilmember McGovern asked and Mr. Fialho confirmed that staff would be looking into grants and other funding options, such as parks and impact fees, to help bridge the current funding shortfall. He added that staff has been speaking with some of the new Council members elect about refreshing the assumptions in the financing plan and looking at potential funding sources. MOTION: It was m/s by McGovern/Sullivan to adopt Resolution No. 12-578 accepting the 2011/12FY Year-End Financial Report for the Operating Budget and amend the 2011/12FY Operating Budget. Motion carried by the following vote: Ayes: Councilmembers Cook-Kallio, McGovern, Sullivan, Vice-Mayor Thorne Noes: None Absent: Mayor Hosterman 22. Adopt a Resolution to Accept the 2011/12 FY Year-End Financial Report for the Capital Improvement Program (CIP) Budget and amend the 2011/12 FY CIP Budget Ms. Wagner presented a brief overview of the 2011/12 FY Year-End report for the CIP Budget. The Sewer Enterprise Fund consisting of repair and replacement, as well as expansion funds, which started the year at $8.3 million and ended slightly higher at $8.5 million. This is significantly higher than the $5.2 million ending balance anticipated in the budget, resulting from projects that were either not started or completed in the last fiscal year, and staff recommends that the Council authorize the carryover of these balances into 2012/13 FY. Sewer revenues also exceeded estimates by about $100,000, the majority of which relates to sewer connection fees received from new development. Councilmember Sullivan asked about the recurring theme and whether or not the delay of these projects is due to the economy or outright deferral. Ms. Wagner said it is largely design related and that this phase of larger projects can span months if not years, meaning that funds are often allocated in one fiscal year but paid out in another. She also noted that in some instances, the amount of money needed to ultimately fund the project is greater than the amount allocated. Councilmember McGovern asked Ms. Wagner to address, wherever possible, when the public could expect to see some of the project carryovers move forward. Ms. Wagner continued her presentation on the Sewer Enterprise Fund, stating that staff is also requesting carryovers for several sanitary sewer City Council Minutes Page 6 of 9 November 20, 2012