SR 05:167 - Laserfiche WebLink

Transfer to Storm Drain Fund as an Operating Subsidy The primary revenue source to the Storm Drain Fund is a property assessment charged to each developed and undeveloped parcel within the City. In addition, the General Fund pays for 50% of the storm drain maintenance costs. However, with the assessment fee currently capped but costs growing, there is a need for a continued and growing General Fund subsidy, unless the assessments are increased or other revenue sources identified. Faced with only a dwindling fund balance to draw upon, staff has included in the budget beginning in 2004-05, an additional transfer of $100,000 to subsidize the operations of this Fund. This is not an unexpected event, as the potential need was identified in the last two-year budget. Thus General Ftmd net transfers-out are $6.7 million in 2005-06 and $5.1 million in 2006-07. 4. Proiected General Fund Ending Reserves Concurrent with the preparation of this document, staff has completed a midyear financial review for 2004-05. This report will be separately submitted to the City Council for approval. However, all of the tables contained in the 2005-06/2006-07 budget assume that the 2004-05 budget has been amended per the midyear report. Key elements of the midyear report include: >' An increase in revenue estimates of $1.3 million and a decrease in expenditures of $600,000; offset by the partial prefunding of 2005-06 Replacement accruals in the amount of $2 million (to help mitigate the loss of $2 million in 2005-06 due to additional shifts of local property taxes (ERAF In). )~ Use of $500,000 in carryover funds from 2003-04 fee revenues that were collected at the end of that year, that will now be used to fund the associated Public Works services in 2004-05. )~ Use of $300,000 in carryover funds from 2003-04 personnel savings to partially offset employee benefit rate increases. ~ Addition of $600,000 to the capital reserve to be used (in addition to its $1 million existing balance) to fund the transfer in 2005-06 of $1.6 million to the Golf General Fund Debt/Cash Flow Reserve. > Transfer of $100,000 to subsidize Storm Drain operations that do not have a funding source. ~' Maintenance of the Temporary Recession Reserve with a balance of $5.1 million. )~ Total projected General Fund reserves at the end of 2004-05 are $14.95 million. As a result of the staff recommended budgets for 2005-06 and 2006-07, the Reserve for Economic Uncertainties will be fully funded at the 10% level required by City policy. The Temporary Recession Reserve balance is projected to remain at $5.1 million through the end of 2006-07, barring any unforeseen need to draw upon it. b-22