SR 06:259 - Laserfiche WebLink

Carryover funding designated for the 800 MHz Radio Project, Veterans Memorial Building furniture and fixtures, and the City-wide Tree Trimming Program will be moved into the Replacement/Renovation Funds. These projects are described more fully later in this report in the section on Replacement/Renovation Funds. The grant revenue carryover includes the "Save Our Schools" grant that has not yet been received but will be reimbursed by the PUSD. It also includes an Office of Traffic Safety (OTS) grant that was received in the prior fiscal year but not yet expended. ENTERPRISE FUNDS The City currently has four Enterprise Funds, including the Storm Drain, Golf, Water and Sewer Funds. Only the Operations & Maintenance (O&M), and Debt Service portions of these enterprises are reflected in the Operating Budget. Capital Improvements and replacement for Storm, Water and Sewer are accounted for in the CIP. FY 2006-07 is the first full year of operation for the golf course. As a result, the annual golf budget is reflected in FY 2006-07 for the first time. A small replacement fund for Golf has been created in the operating budget that will provide for some equipment replacement and turf repairs beyond normal wear, if necessary. The bigger issue of funding for longer-term renovations will need to be addressed in the future as the income stream from the golf course and the replacement/renovation needs are better known. Beginning in FY 2006-07, the City will include a fifth Enterprise Fund to account for the Pleasanton Memorial Gardens cemetery. WATER AND SEWER OPERATING FUNDS Both the Water and Sewer Operating Funds ended FY 2005-06 with a higher ending fund balance than was projected. However, an update in 2002 of the Sewer and Water Replacement Program indicated that annual replacement accruals are starting to fall short of the projected funding needs of the ongoing replacement program, in the short-term as well as in the longer term. Dublin San Ramon Services District (DSRSD) is in the process of reviewing regional sewer rates for FY 2006-07, and the City will be looking at local sewer rates also. The City annually monitors water rates to compare with variables such as rising energy costs, the cost of water purchased from Zone 7 and increasing capital replacement costs. Staff will conduct this review again during FY 2006-07. Both the Water and Sewer O&M Funds need a larger fund balance than many other Funds, because of cash flow challenges (service is provided before revenue is received), and the need for a larger than average contingency (due to weather changes and unexpected equipment failures, costly water line breaks, etc.) Fund balances are monitored annually to determine if they are adequate to meet unexpected situations. Excess balances can be used to make additional transfers to the Water and Sewer Replacement Funds if needed to offset future costs. SR 06:259 6