17A - Laserfiche WebLink

The largest category of carryover is for outstanding purchase orders and contracts that need to be carried over to fulfill contractual obligations for goods and services ordered prior to the end of the fiscal year but not received. It is also recommended that a portion of the budgeted contingency not expended be carried over and made available for potential energy projects and unforeseen expenditures and/or help in balancing the budget. The amount of $250,000 was budgeted in the 2005-06 contingency for energy demonstration projects and $25,000 was allocated during 2006-07 the year for the Solar Cities Program (Livermore & Pleasanton) approved by City Council in October 2006. The remainder will continue to be carried over and made available during 2008-09. The grant revenue carryover includes unexpended grant revenue from the an Office of Traffic Safety (OTS) grant and deferred revenue for the Pedestrian and Bicycle Master Plan. ENTERPRISE FUNDS The City currently has five Enterprise Funds, including the Storm Drain, Golf, Water and Sewer and Cemetery 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. WATER AND SEWER OPERATING FUNDS The Water Operating Fund ended FY 2007-08 with a lower ending fund balance than was projected. The main contributing factor was the higher than anticipated Zone 7 rate increases to purchase water (for two consecutive years). In addition, water consumption has been higher than projected for the past two years compared to budgeted consumption. The City is currently undergoing a water rate study to determine the local rate necessary to offset the increases to Zone 7 treated water rates and inflationary cost increases in all operating departments (City water rates were last increased in 2002). The Sewer Operating Fund ended FY 2007-08 with a higher fund balance than was projected due to an increase in interest earnings and cost savings in a few expenditure categories. Both the Water and Sewer O&M Funds typically 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. Page 5 of 9