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12. Consider adoption of a resolution accepting the 2013/14FY Unaudited Year-end Financial Report for the Capital Improvement Program (CIP) Budget and amending the 2013/14FY CIP Budget Finance Director Wagner presented the Year-end Financial Report and proposed amendments for the 2013/14 CIP Budget, which includes the Sewer, Water, Miscellaneous, Parks and Streets CIP Funds. She noted that the Fiscal Year ended June 30, 2014 and that many of the project allocations marked for carryover have actually been completed between July 1, 2014 and now. The Sewer Fund began the year with a $9.3 million balance. Revenues exceeded projections by approximately $30,000, for a total of $160,000, due to the receipt of additional sewer connection fees and interest income. Expenditures totaled approximately $7.2 million less than the $7.6 million estimated, primarily due to projects that were either not started or completed within the fiscal year. Staff is requesting approval to carryover the $7.2 million to the 2014/15FY and recommending a budget amendment to both revenues and expenditures of approximately $18,872 to account for additional developer contributions and interest income. After these adjustments, the fund would end the year with a cash balance of $10.2 million. After accounting for funds already appropriated for carryover projects, the adjusted fund balance totals $2.9 million which will be available to the Council for programming when it begins work on its CIP in May 2015. She briefly reviewed project carryovers, the largest being the EALS/EARS Pump Station and Pipeline Construction project of $4.7 million which is currently in design and anticipated to move forward in 2015. She noted a number of annual and biannual repair and replacement items which are budgeted each year but often carried over at least in part as they may or may not be fully utilized during the year. She also called the Council's attention to the Del Valle Parkway/Nevada Street Sewer Addition project which appears across several of the CIP funds. She explained that funds have been set aside for the extension of Del Valle Parkway from the Irby property at Old Stanley Boulevard through to Nevada Street, but the project is pending development in that area. Vice-Mayor Pentin asked how the city's Recycled Water Program impacts the EALS/EARS Pump Station Project, which goes through the same general area. Mr. Kirkpatrick explained that while the construction itself will not impact the project, the project design is a bit behind as a result of staffs rather intensive focus on the recycled water project. Councilmember Brown asked if any of the funds for the EALS/EARS ($4.7) or Del Valley Parkway ($800,000) projects comes from grant sources that are at risk of expiring due to the carryover. Ms. Wagner said "no." She explained that the Del Valle Parkway project is funded in part by the city through the Repair and Replacement Fund and in part by Sewer Connection Fees collected as part of new development. Ms. Wagner reviewed the Water Fund, which began the year with a fund balance of $14.6 million. Revenues, which are collected as repair and replacement monies from rate payers as well as expansion funds coming from new development, exceed projections ($337,000) and totaled $675,000. The increase is due to additional water connection fees paid by the Stoneridge Creek Project. Expenditures totaled $1.5 million, $4.7 million less than the $6.1 million anticipated, again due to projects not completed by the close of the Fiscal Year. Staff is requesting carryover of these funds and recommending budget amendments of $24,000 to account for an increase in interest income and developer contributions. Staff is also requesting a budget amendment to increase expenditures associated with city staff time spent on water replacement projects. Additional carryovers include CIP Projects Funded by Developer Contributions, which essentially collects funds for specific projects until such time as the city is ready to put forth the project. After adjustments, the Water Fund ends the year with a cash balance of $15.9 million and adjusted fund balance of $11.2 million. Notable carryover projects include the Advanced Metering Infrastructure Project, which is expected to go out to bid in early 2015, annual and biannual maintenance allocations, the Water Connection Fee Study, Water Rate Analysis and Del Valle Parkway Water Main Extension project. City Council Minutes Page 12 of 14 December 2, 2014