RES 96130 - Laserfiche WebLink

CAPITAL IMPROVEMENT FUNDS The 1995-96 Capital Im. provement Program (CIP) ended the year essentially on target with projections, with the minor exceptions noted below. Interest income in the Park CIP was $166,000 more than projected, but park dedication fees were on target. Staff is recommending carryover appropriations totaling $3.8 million, which are partially offset by carryover revenues of $49,000. After adjusting for carryovers, the net projected ending fund balance is $6.47 million, including $1.5 million from Signature Properties and $1.67 million from existing commercial park obligations. The $1.67 million was not expected until 1996-97, therefore the projections for that year will need to be reduced by that amount. After adjusting for carryovers and the commercial park revenue, the ending fund balance is $161,000 more than projected. The Miscellaneous CIP ended the year with $100,000 more in interest income and $302,000 more in development revenue than was projected. Staff is recommending can'yover 00 appropriations totaling $3.6 million, which are partially offset by carryover revenues of $12, 0. The ending fund balance after adjusting for carryovers is $3.2 million which is $475,000 more than projected. However, staff will need to review the extra development revenue to determine if its receipt is merely a timing issue, which will result in it being reduced from the 1996-97 projections. The Sewer CIP ended the year with $50,000 more in interest income and $43,000 more in connection fees than projected. Staff is recommending c over appro fiations totaling $2.3 million, which are partially offset by carryover revenues ;farriY~6,000. A~r adjusting carryovers, the net projected ending fund balance is $2.2 million. The Street CIP ended the year with $170,000 more funds than projected, primarily due to interest incoiiT, M"i"i'ure B revenue and street in-lieu fees. After adjusting for carryovers, the net projected ending fund balance is $473,000. The Water CIP ended the year with $100,000 more revenue and net transfers than expected. StaffSending carryover appro fiations totaling $2.8 million, which are partially offset by carryover revenues of $724,000. A~gr adjusting for carryovers, the net projected ending fund balance is $1.96 million. Appendix E contains tables showing capital improvement revenues and expenditures in 1995-96 (projected versus actual), and recommended carryovers and budget adjustments. DESIGNATION OF FUND BALANCES As a final step in closing the 1995-96 books, staff is recommending that the City Council fully appropriate and make specific designations for uses of General Fund Reserves, as was previously discussed in detail. In addition, staff recommends that the fund balances in all other Funds be fully appropriated and designated as contingency reserves for existin and future, known and unknown obligations. With this official action taken, the auditors w~l then reflect all Fund Balances in the annual audited financial statements as designated rather than undesignated. CONCLUSION During 1995-96 staff continued to manage the City's financial resources closely. With few exceptions, expenditures were kept within budget and revenue projections closely matched the final results. In coming years, staff will continue to focus on improving the budget process, more accurately projecting revenues and expenditures, and improving the financial reporting documents. 13 SR96:318