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Replacement and Renovation Funds – The recommended adjustments to the various Replacement and Renovation Funds include reductions in revenues of $(792,500) and increases in expenditures of $851,130. The reductions in revenues are due to changes in estimated interest income of $(220,000) and the decrease in the annual contributions from other funds of $(572,500). The General Fund portion of the reduced annual contributions of $(550,867) is part of the recommended adjustments to partially offset revised revenue estimates. The increase in expenditures is due to a number of revisions updating asset replacement life cycle, adjustments to the timing of replacements, and eliminating the need for certain replacements, and shifting funds from 2007-08 into 2008-09. LPFD Retirees Medical Reserve Fund – The recommended adjustments to the LPFD Retirees Medical Reserve Fund includes a reduction in revenues of $(350,000). The annual contribution originally budgeted for 2008-09 was $1.4 million which is shared by the City of Pleasanton and the City of Livermore. This adjustment is required due to the City of Livermore reducing their annual contribution for 2008-09 by $(350,000), which will result in a total contribution to the reserve of $1,050,000 for 2008-09. The most recent actuarial report for LPFD estimated that the minimum annual required contribution needed to prefund benefits would be approximately $1.5 million per year, assuming the accumulated reserves ($10.8 million at 6/30/07) were invested in a trust and earned 7.75%. The original budget contemplated a 2008-09 annual contribution of $1.4 million shared between Livermore and Pleasanton, $700,000 each. Due to budgetary constraints, the City of Livermore has request that their $700,000 contribution be reduced to $350,000. The City of Pleasanton funding will remain at $700,000 for 2008-09, which is approximately half of the required necessary annual funding indentified in the actuarial report. LPFD Workers’ Comp Fund – The recommended adjustments to the LPFD Workers’ Comp Fund includes a reduction in revenues of $(15,000) is due to a change in estimated interest income. Special Revenue Funds Adjustments Livermore-Pleasanton Fire Department Fund – The recommended adjustment to the LPFD Fund includes an increase in revenues of $1,270,102 and a parallel increase in expenditures of $1,270,102. This increase is due to a number of personnel cost changes including the MOU salary increases, revised PERS rates, leaving a Fire Inspector position vacant, reducing the contribution from Livermore to retiree medical, and various other miscellaneous salary adjustments. Lower Income Housing Fund – The recommended adjustment to the Lower Income Housing includes a reduction in revenues of $(75,000) and an increase in ïì