SR 05:167 - Laserfiche WebLink

the next twenty years. As a result, some beginning fund balances were determined to be greater than needed to support the long-term plans, and therefore current replacement accruals (charges to the departments) were reduced, resulting in a reduction of about $1.3 million to the Replacement Funds in 2005-06, and $665,000 in 2006-07. A similar approach has been used in prior years as part of the bi-annual update. Also, as part of this update and mentioned earlier, the Budget uses current dollars to prefund about $2 million of replacement accruals in 2004-05. This will then reduce Replacement contributions in 2005-06 to help smooth out other negative impacts on the budget, such as the additional loss of property tax revenue to the State in that year as part of the ERAF III shifts. In most cases, the annual funding levels have started to stabilize and will grow more in line with inflation. As a result, the City is able to not only achieve and maintain high standards of maintenance for its capital assets, but the replacement/renovation needs of the City are now being met on an ongoing basis without competing in the budget process against dollars needed in the CIP or diverting resources from ongoing operations or expanding services. However, staff would recommend that we continue reviewing the funding levels every two years as part of the budget process, to be able to adjust the annual contributions as factors change. For example, new facilities and parks will need to be added to the renovation programs as they come into use, thereby increasing costs over time. While some of the Replacement/Renovation Funds reflect large projected fund balances at of the end of this two year budget cycle (June 30, 2007), the cash flow analyses show that these fund balances will be needed in the future, both near and long term. The purpose of each of the Internal Service Funds and the adequacy of its fund balance are discussed in more depth in the Budget document. E. LIVERMORE-PLEASANTON FIRE DEPARTMENT FUND In November of 1998, Pleasanton assumed personnel, payroll, accounting and liability risk management responsibilities for the Livermore-Pleasanton Fire Department (LPFD). In 2001 Pleasanton also assumed Workers' Compensation Administration. Funding comes from the two cities based on an established cost sharing formula. Other joint revenues are also reflected in the LPFD Fund, but if received, they are credited back to the two cities at year-end. In addition, separate Funds have been established to account for LPFD Workers' Compensation, LPFD Retirees' Medical, and LPFD Information Systems Replacement. Pleasanton's share of the costs is also shown in the Fire section starting on page 91. In addition to LPFD shared costs, Pleasanton's budget also reflects costs for contracted dispatch service provided by Livermore, apparatus replacement accruals, gasoline and other miscellaneous costs. b-26