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$4 million but fell short of projections by $131,000. However, expenditures decreased accordingly from the $3.8 million that was projected to approximately $3.5 million. The fund ended the fiscal year with a profit of $139,000 that was transferred to the General Fund to pay down the 2003 loan, which has a current balance of $7.3 million. Ms. Wagner presented a comparison of the golf course's year to year performance, noting that the 56,104 rounds played in 2012/13FY is down from the prior year of 58,272 and from 73,365 in 2006/07FY. Councilmember Pentin noted that 2006/07FY was the first full year of operation for the golf course and said those numbers likely represent something of a honeymoon period. Ms. Wagner reviewed the Repair and Replacement Fund, which is where operating funds transfer monies for repair and replacement of city owned assets. The fund began the year with a balance of $21.9 million. Revenues totaled $2.4 million, not including a transfer from the Golf Course Fund. Expenditures of $3.5 million were less than the anticipated $4.9 million, with $1.4 million in repairs and replacement postponed as a result of both new technology and extensions in useful life of various assts. She explained that department heads are currently reviewing and updating the 20 year replacement plan to better reflect the impacts of these changing technologies so that they may provide a more accurate budget moving forward. Ms. Wagner stated that staff would return with the year-end Capital Improvement Program and is working diligently to complete the Comprehensive Annual Financial Report with the hopes of bringing it to the Council for ratification in January. The first quarter report for the 2013/14FY will be presented to the Council at its December 3, 2013 meeting. Staff will also return in March 2013 with a mid-year update and in June 2014 with a mid-term budget review. Councilmember Narum referred to Table 3 on page 4 of the staff report where it discusses General Fund expenditures on repairs and maintenance. She requested clarification on how these expenditures differ from those of the Repair and Replacement Fund. Ms. Wagner explained that in addition to contributions to the internal service fund, the General Fund provides for repairs and maintenance on those items that are not capital assets. By definition, capital assets must exceed $5,000 in value. Councilmember Narum expressed concern that the reduced expenditures in the Repair and Replacement Fund could equal deferred maintenance simply for the sake of maintaining a balanced budget or giving the appearance of a funds surplus. Ms. Wagner stressed that this is not the case. She reiterated that staff is working to prepare a better estimate of the future cost of items and their useful life in order to more accurately budget this fund. She again stressed that technology is significantly changing the city's repair and replacement plan. She noted that staff is even assessing the potential of a lease and maintenance plan for vehicles as a more cost effective alternative to outright purchase. She noted that Pleasanton has always been very conservative in setting aside the necessary funds for repair and maintenance and is simply trying to be smart about taking advantage of certain changes in technology. Mayor Thorne remarked that at 3.6% increase in water sales is not necessarily a good thing. Ms. Wagner explained that customers have likely been watering more due to the drought and also noted that Pleasanton's rates are 20% less than any other neighbors in the valley. Councilmember Brown referred to the year to year comparison of revenues and asked how one could trace expenditures similarly to ensure that they appropriately correlate to income in any given year. City Council Minutes Page 5 of 6 November 19,2013