Finance Highlights 2006 0405 - Laserfiche WebLink

Home

Overall, Majors indicated that there was no evidence of fraud or material misstatements found during their first year's audit. Majors commented on the City's strong system of internal controls currently in place. Jermanis also commented on the value of internal controls and auditing, especially when dealing with staff changes and cash handling. Baloca indicated that the finance department's internal control procedures are fairly solid due to the segregation of duties that currently exist. The finance department is also working on developing department policies that will assist City staff in following the correct procedures. 2. Discussion Regarding 911 Program Revenue Rodriguez explained that the 911 fee was implemented December 2004 and is projected to generate $2.175 million for FY OS-06. The eligible cost for FY OS-06 is approximately $2.26 million, a shortfall of about $89K. Staff recommends that the 911 fees for FY 06-07 increase using the CPI factor of 2.93%. The increase of $.06 per access single line will result in the following fee changes: Single Line $ 2 to 2.06 Trunk Line 14 to 14.41 Super Trunk Line 49 to 50.44 FY 06-07 revenues are projected to generate approximately $2.4 million, while eligible costs are estimated at $2.39 million. The slight fee increase is expected to lessen the gap between 911 fee revenues and expenditures. Staff also recommends an addendum to the current audit services agreement of MBIA Muniservices Company (MMC) to include the identification of new telephone service companies and an audit of City revenues remitted from existing telephone companies. Currently, staff is negotiating with MBIA for these additional services. 3. Discussion Regarding 2006-07 Proposed Fee Adjustments Annually, the City conducts a review of its user fees and service charges. As a general rule, fees and charges are designed to recover as much of the cost for providing services as possible while remaining comparable with comparable cities. Chan indicated that the recommended new fee increases for FY 06- 07 is projected to generate an additional $309K in revenue. The proposed fee changes primarily reflects CPI changes, New Construction Cost Index escalation, the expansion of park fees to include more parks and a charge to non-profits for weekend and peek hour park usage. Two new fees introduced include Fire permit issuance fee and an insufficient business license information fee. The fee changes will again be discussed during the Public Hearing during the 1St week of May. 4. Discussion Regarding Oro Loma Municipal Service Fee Hollister reviewed the analysis and methodology used to validate the City's 10% Municipal services on Oro Loma. Currently, the solid waste customers in the L-3 Oro Loma Area, which is in the southern part of San Leandro, are being serviced by Waste Management of Alameda County. Currently, these residents