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City of San Leandro Meeting Date: October 1, 2012 Minutes File Number: 12-454 Agenda Section: CONSENT CALENDAR Agenda Number: 8.C. TO: City Council FROM: Chris Zapata City Manager BY: David Baum Finance Director FINANCE REVIEW: David Baum Finance Director TITLE: ACCEPT: Finance Committee Meeting Highlights of September 7, 2012 COMMITTEE RECOMMENDATION: Schedule approval of the Fiscal Year 2011-12 Budget Amendment CITY OF SAN LEANDRO CITY COUNCIL FINANCE COMMITTEE September 7, 2012 8:30am -10:00am San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS 1. CALL TO ORDER 1.A. Attendance Committee Members: Councilmember Cutter and Councilmember Prola City Staff Present: Assistant City Manager Marshall, Finance Director Baum, Budget and Compliance Manager Perini, Accountant Galvin, IS Specialist Gilliland, Administrative Assistant III Perez Public Present: Chris Crow, Chuck Kane, Morgan Mack-Rose City of San Leandro Page 1 Printed on 9/25/2012 File Number: 12-454 The meeting was called to order at 8:35 a.m. 1.B. Announcements None. 2. DISCUSSION ITEMS 2.A. Discussion Regarding Two-Year Budget Calendar for Fiscal years 2013-14 and 2014-15 Finance Director Baum presented a proposed biennial budget calendar for fiscal years 2013-14 and 2014-15 focusing on the deliverables to the Finance Committee and the City Council. 2.B. Discussion Regarding Quarterly Investment Report Budget and Compliance Manager Perini presented the investment report for the quarter ended June 30, 2012. The City’s investment portfolio had a market value of $89 million and is in compliance with the Investment Policy as approved and adopted by Council. Mrs. Perini reported that an increase of $8 million in the Local Agency Investment Fund (LAIF) pool and is attributed to the Property Tax revenue received from Alameda County. Finance Director Baum stated that the City of San Leandro’s portfolio is completely invested in US Treasury Agency Securities and LAIF; staff will be looking looking into broader investments and corporate notes as well as moving money out of LAIF into Chandler Asset Management. This will be in an attempt to earn a slightly higher yield while being mindful of the investment policy. Mr. Baum stated that Chandler Asset would invest in blue chip notes, e.g. Coca Cola, PepsiCo, Wells Fargo, Microsoft, EBay, and IBM. Short term but low risk and the idea is to hold notes until maturity. Mr. Baum assured the Finance Committee that investments would remain in compliance with the Council approved Investment Policy. Finance Committee approves the investment report and approves staff looking into investing into corporate notes or commercial paper. 2.C. Discussion Regarding Debt Refinancing Opportunity Update Mr. Baum discussed the opportunity to refinance two existing City issued Certificates of Participation, 2001 and 2003 COP’s. The new law, AB 1484, passed in June 2012, enables the outstanding debts of the former redevelopment agency to be refinanced. Refinancing the debts would potentially allow a savings of $1.1 million. Staff has recommended utilizing the same financing team (Financial Advisor Public Financial Management and Jones Hall) that assisted the City with the Pension Obligation Side Fund refinancing, which was completed in March 2012 and send out a Request for Proposal for Underwriters. City of San Leandro Page 2 Printed on 9/25/2012 File Number: 12-454 Councilmember Prola stated his approval for staff to continue with the process for refinancing the 2001 and 2003 COP’s by posting a Request for Proposals for Underwriters. 2.D. Discussion Regarding Fiscal Year 2011-12 Budget Amendment Mr. Baum reported on the budget amendments for the fiscal year ended June 30, 2012. The items presented have already been approved by City Council, e.g. Public Safety Side-Fund refinancing as well as the East Bay Regional Communications System Authority funding. Mr. Baum explained that the report is necessary as staff is working on the year end audit and working to close fiscal year ending June 30, 2012. Committee Recommendation for City Council consideration Councilmember Prola and Councilmember Cutter approve forwarding the report for City Council approval. 2.E. Discussion Regarding Fiscal Year 2011-12 Budget Versus Actual Results Mr. Baum presented an unaudited, year-end financial report to provide the Finance Committee with an update of the revenues and and expenditures through June 30, 2012. Mr. Baum reported there was a surplus due to better than expected Sales Tax revenue, mainly from auto sales. Mr. Baum also reported an increase to legal service expenses that will be covered by savings in other categories. 3. PUBLIC COMMENTS Morgan Mack-Rose expressed her excitement with staff’s report in investing in non-treasury note purchases and asked that when looking into purchasing corporate or commercial paper, that the City seeks to invest in companies that are located in the City of San Leandro, e.g. Coca Cola. Chris Crow, District 4, reminded the Finance Committee of a prior meeting in which a discussion was held stating that there are companies the City should not invest in, e.g. Morgan Stanley. Mr. Crow also expressed his appreciation of a two-year budget but questioned the mid-year adjustments and where it would be in the budget calendar. Mr. Crow also asked about the operating revenue related to the transfer of the unfunded pension obligations. Staff was able to answer Mr. Crow’s concerns. 4. COMMITTEE MEMBER COMMENTS Councilmember Prola addressed ideal choice of candidate for the vacant seat of Councilmember Starosciak. 5. ADJOURN The meeting was adjourned at 9:20 a.m. City of San Leandro Page 3 Printed on 9/25/2012 Finance Committee City of San Leandro Meeting Agenda Civic Center 835 East 14th Street San Leandro, California Mayor Stephen H. Cassidy, Chair Councilmember Pauline Russo Cutter Councilmember Jim Prola Friday, September 7, 2012 8:30 AM City Council Chambers 1. CALL TO ORDER 1.A. Attendance 1.B. Announcements 2. DISCUSSION ITEMS Discussion Regarding Two-Year Budget Calendar for Fiscal Years 2013-14 and 2014-15 2.A. 12-438 2.B. 12-439 Discussion Regarding Quarterly Investment Report 2.C. 12-440 Discussion Regarding Debt Refinancing Opportunity Update 2.D. 12-441 Discussion Regarding Fiscal Year 2011-12 Budget Amendment Discussion Regarding Fiscal Year 2011-12 Budget Versus Actual Results 2.E. 12-442 3. PUBLIC COMMENTS 4. COMMITTEE MEMBER COMMENTS 5. ADJOURN City of San Leandro Page 1 Printed on 8/31/2012 CITY OF SAN LEANDRO MEMORANDUM DATE: September 7, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: David Baum, Finance Director Mary Ann Perini, Budget and Compliance Manager SUBJECT: Two-Year Budget Calendar for Fiscal Years 2013-14 and 2014-15 RECOMMENDATION Staff recommends that the Finance Committee review and accept the biennial budget calendar for fiscal years 2013-14 and 2014-15. OVERVIEW On January 14, 2011 a biennial budget process was discussed with the Finance Committee, and staff considered starting this process for fiscal years 2012-13 and 2013-14. Subsequently, the Director of Finance position was vacated and the Finance Committee agreed that the biennial budget process be delayed until a permanent Director was hired. Consequently, staff now proposes a biennial budget process for fiscal years 2013-14 and 2014-15. A key advantage of a biennial budget is it is a good planning tool for City Council, especially when a City is not experiencing economic hardship and budget reductions when a multiyear budget becomes difficult with numerous modifications. Below is a proposed biennial budget calendar for the Finance Committee’s review which contains key tasks and dates, such as Council work sessions, public hearings and adoption of the biennial budget. Staff included an estimated time for City Council’s “Winter Planning Session” subject to Council’s availability in January/February 2013 for a Saturday event. Finance Committee September 7, 2012 Page 2 of 2 CONCLUSION Staff recommends that the Finance Committee review and accept the biennial budget calendar for fiscal years 2013-14 and 2014-15. Date Responsibility Task Description 9/7/12 Finance Committee Proposed biennial budget calendar 10/1/12 City Council Finance Committee report on proposed biennial budget calendar 10/24/12 CIP/E&T Capital planning meeting 11/29/12 All Budget Kick-Off Meeting 12/21/12 All Department Request Budgets/Eden Updated DUE to Finance (all funds, expenditures and revenues) TBD City Council Winter Planning Session (Budget update, assumptions and State budget update) 3/4/13 City Manager Budget Narrative Guidelines distributed to Departments 3/11/13 City Council WORK SESSION -1st budget session -General Fund update and projections, CIP 4/5/13 Finance Committee Master fee schedule and 911, EMT and Business License Taxes 4/8/13 City Council WORK SESSION -2nd budget session -general fund follow-up and all other funds 4/26/13 Finance Complete initial draft of biennial budget 2013-14 and 2014-15 5/6/13 City Council Public Hearing Master Fee Schedule and 911, EMT and Business License Taxes 5/10/13 Finance Proposed biennial budget binders delivered to City Council and City Manager 5/20/13 City Council Proposed 2013-14 and 2014-15 Biennial Budget presentation 5/24/13 Finance Place proposed biennial budget on the City's website 5/27/13 Finance Statutory deadline to deliver City Manager's Proposed Budget to City Council (35 days prior to June 30) 5/30/13 All All Employee Briefing -Proposed Biennial Budget 6/3/13 City Council Meeting -Public Hearing 2013-14 & 2014-15 Proposed Biennial Budget and Appropriation Limit 6/17/13 City Council Meeting -Biennial Budget Adoption (alternate date if needed) 7/19/13 Finance Provide Budget in Brief copies to City Council and post to City's website 8/1/13 Finance Place adopted biennial budget on City's website 8/26/13 Finance Submit Operating and Capital Biennial Budgets to GFOA for award consideration (deadline 8/31/13) 1/15-5/15/14 All Update biennial budget for fiscal year 2014-15 Biennial Budget Calendar 2013-14 and 2014-15 CITY OF SAN LEANDRO CITY OF SAN LEANDRO MEMORANDUM DATE: August 7, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: David Baum, Finance Director Mary Ann Perini, Budget and Compliance Manager SUBJECT: Investment Report, Quarter Ended June 30, 2012 RECOMMENDATION Staff recommends that the Finance Committee review and accept the attached investment report for the quarter ended June 30, 2012. OVERVIEW At June 30, 2012, the City’s investment portfolio had a market value of $89 million. Of the total $89 million, $60.6 million was placed with the Local Agency Investment Fund (LAIF) and bank accounts and $28.4 million was placed in the Chandler Asset Management portfolio. On January 31, 2012 the Redevelopment Agency LAIF accounts were closed as a result of the dissolution of the San Leandro Redevelopment Agency. These funds were transferred to the City’s Economic Development Agency LAIF account in the amount of $9.3 million. Subsequently, the Economic Development Agency LAIF account has been transferred to a new Successor Agency LAIF account established during the quarter ended June 30, 2012. The balance in this new account is $6.4 million and has been decreasing since January due to debt repayments. The rate of return for LAIF for the quarter was 0.36%, while the average book yield for the Chandler managed funds was 1.03%. The City’s investment policy establishes three bases for the performance standard: the LAIF rate of return and the rate of return on 2-year and 5-year U.S. Treasury securities. Amounts invested in LAIF meet this performance standard. The Chandler managed funds average book yield was 1.03%, which exceeded both the benchmark rate of return on the 2-year U.S. Treasury securities of 0.21% and the 5-year U.S. Treasury security benchmark of 0.72%. Amounts invested with LAIF are essentially liquid and funds can be withdrawn with minimal notice as City operations require. The rate of return earned by LAIF generally follows fixed income security rates. For example, a year ago the LAIF rate was 0.48% and it was 0.38% as of March 31, 2012. The balance of the City’s portfolio is with Chandler Asset Management. These investments range from one to four years in maturity. The attached report notes that the City is in compliance with all provisions of the City’s Investment Policy. The basic strategy recommended by Chandler is to gradually lengthen the average maturity of the portfolio in order to gain higher interest rates. Staff is in agreement with this approach, but carefully monitors maturity dates to ensure that both short and long-term liquidity needs are met. CONCLUSION Staff recommends that the Finance Committee review and accept the attached investment report for the quarter ended June 30, 2012. 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Mar-09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar-12 Jun-12 City of San Leandro Summary of Yields LAIF Chandler 2-Yr Treasury 5-Yr Treasury 6225 Lusk Boulevard | San Diego, CA 92121-3039 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com City of San Leandro June 30, 2012 Quarter Ending City Council Investment Report City of San Leandro The investment goals of the City of San Leandro are to preserve principal, to provide liquidity, and to attain a rate of return commensurate with the City's investment risk constraints and cash flow needs. In order to achieve these objectives, the City of San Leandro invests in US Treasury securities, federal agency securities, high quality money market instruments and high quality corporate medium term notes in accordance with the City's investment policy and California Government Code Section 53600 et seq. Strategy Investment Report Performance Objectives The performance objective for the City of San Leandro’s portfolio managed by Chandler is to attain a rate of return greater than the benchmark 1-3 Year Treasury/Agency securities over a market cycle. 1 Category Standard Comment Treasury Issues No limitations Complies Agency Issues No limitations Complies Banker’s Acceptances 40% maximum; 30% per issuer; A-rated; 180-day max. maturity Complies Commercial Paper 25% maximum; 10% per issuer; 270-day max. maturity; A1/P1 and AA-rated if LT debt Complies Negotiable Certificates of Deposit 30% maximum; 10% per issuer; AA-rated Complies Medium Terms Notes 30% maximum; A-rated Complies Money Market Funds AAA/Aaa rated; assets greater than $500MM; 20% maximum Complies LAIF Currently not used by adviser Complies Maximum Maturity 5 years Complies COMPLIANCE WITH INVESTMENT POLICY City of San Leandro June 30, 2012 Assets managed by Chandler Asset Management are in full compliance with State law and with the City’s investment policy. Portfolio Activity During the second quarter of 2012, activity in the portfolio managed by Chandler Asset Management consisted of the reinvestment of $5.1 million in several Treasuries and Agency securities with maturities ranging from October 2012 to August 2015. The portfolio structure and maturity strategy has been directed by the City. Currently, the portfolio’s average maturity is 1.80 years and is about equal to that of the 1-3 Year Government benchmark. 2 6/30/2012 3/31/2012 LAIF -City Pool #98-01-809 $43,659,489 $35,626,816 LAIF -Successor Agency 6,391,000 0 LAIF -RDA 1999 Bond Proceeds #11-01-001 0 0 LAIF -RDA 2008 Bond Proceeds #11-01-038 0 0 LAIF -Economic Development Agency 0 8,022,000 Passbook/Checking Accounts 10,518,513 4,519,712 Total LAIF and Bank Accounts $60,569,002 $48,168,528 Investment Portfolio Market Value $28,382,037 $28,295,633 Total Market Value $88,951,039 $76,464,161 LAIF Quarterly Apportionment Rate 0.36% 0.38% 2 year US Treasury Yield to Maturity 0.21% 0.33% 5 year US Treasury Treasury Yield to Maturity 0.72% 1.04% Investment Portfolio: Average Maturity (yrs) 1.80 1.81 Modified Duration 1.74 1.75 Average Book Yield 1.03% 1.37% Average Yield to Maturity at Market 0.42% 0.45% Average Quality AA+ AA+ Portfolio Characteristics Cash Equiv 12.5% LAIF 56.3% Treasury 5.9% Agency 25.4% Cash Equiv 6.0%LAIF 57.1% Treasury 7.3%Agency 29.7% 3 Quarter Ending Sector Distribution March 31, 2012 June 30, 2012 General Fund 17.7% Special Revenue Fund 12.8% Capital Improvements District 6.9%Special Assessment Fund 1.3% Enterprise Funds 34.7% Internal Service Funds 16.4% Trust & Agency Funds 0.9% Economic Development & Successor Agency 9.3% General Fund 31.5% Special Revenue Fund 13.3%Capital Improvements District 5.6% Special Assessment Fund 0.9% Enterprise Funds 21.6% Internal Service Funds 14.9% Trust & Agency Funds 1.3% Economic Development & Successor Agency 10.9% 4 City Fund Allocation March 31, 2012 June 30, 2012 5 Book Purchase Value Yield LAIF SYS113 LAIF -City Pool $43,659,489.00 100.00000 $43,659,489.00 $43,659,489.00 SYS114 LAIF -Successor Agency 6,391,000.00 100.00000 $6,391,000.00 $6,391,000.00 subtotal $50,050,489.00 $50,050,489.00 $ 50,050,489.00 Passbook/Checking Accounts Public Funds Checking 10,518,512.92 100.00000 10,518,512.92 10,518,512.92 subtotal $ 10,518,512.92 $ 10,518,512.92 $ 10,518,512.92 Government Issues 431114701 Govt Money Market Fund Highmark -30-Jun-12 556,774.23 100.00000 556,774.23 -556,774.23 3134A4QD9 Note FHLMC 5.125 07/15/12 900,000.00 100.12465 901,121.82 1.77 922,917.55 31398AYM8 Note FNMA 1.750 08/10/12 975,000.00 99.98921 974,894.77 1.85 983,328.61 912828HC7 Note US Treasury 4.125 08/31/12 500,000.00 99.98933 499,946.65 4.20 510,155.18 31359MPF4 Note FNMA 4.375 09/15/12 655,000.00 100.53719 658,518.57 1.71 669,045.12 912828LR9 Note US Treasury 1.375 10/15/12 770,000.00 100.35759 772,753.42 0.14 774,934.74 912828LX6 Note US Treasury 1.375 11/15/12 770,000.00 100.45202 773,480.56 0.16 774,781.02 3137EABE8 Note FHLMC 4.125 12/21/12 700,000.00 101.19285 708,349.96 1.54 713,603.68 3137EACG2 Note FHLMC 1.375 01/09/13 675,000.00 99.90713 674,373.10 1.56 683,448.61 31331JBV4 Note FFCB 1.750 02/21/13 750,000.00 100.56577 754,243.25 0.86 761,270.58 31359MRG0 Note FNMA 4.375 03/15/13 772,000.00 102.92347 794,569.22 0.22 804,233.27 3137EACJ6 Note FHLMC 1.625 04/15/13 675,000.00 99.93076 674,532.62 1.71 684,545.56 3133XQU34 Note FHLB 3.625 05/29/13 775,000.00 103.08345 798,896.74 0.23 801,140.92 31331JPK3 Note FFCB 1.375 06/25/13 750,000.00 100.39050 752,928.75 0.97 758,514.13 912828JK7 Note US Treasury 3.125 08/31/13 670,000.00 102.68811 688,010.37 0.79 699,165.75 3133XRX88 Note FHLB 4.000 09/06/13 575,000.00 103.74617 596,540.45 0.79 607,434.47 31331GCS6 Note FFCB 3.875 10/07/13 575,000.00 103.74727 596,546.81 0.88 605,918.71 31360CWC2 Pool # 002443 FNMA 12.500 12/01/13 58.09 101.39439 58.90 11.06 61.68 912828KF6 Note US Treasury 1.875 02/28/14 750,000.00 101.54767 761,607.53 0.93 773,948.24 3133XWKV0 Note FHLB 2.375 03/14/14 1,250,000.00 102.02720 1,275,339.98 1.16 1,301,368.78 31398AXJ6 Note FNMA 2.500 05/15/14 750,000.00 102.31679 767,375.89 1.23 782,163.33 912828QM5 Note US Treasury 1.000 05/15/14 975,000.00 100.46267 979,510.99 0.75 988,280.64 912828LK4 Note US Treasury 2.375 08/31/14 670,000.00 102.49826 686,738.36 1.19 704,526.56 31331GL80 Note FFCB 3.000 09/22/14 975,000.00 104.46310 1,018,515.27 0.96 1,039,597.65 3137EACY3 Note FHLMC 0.750 11/25/14 950,000.00 100.72375 956,875.60 0.45 957,839.40 3133XVNU1 Note FHLB 2.750 12/12/14 1,000,000.00 103.15324 1,031,532.38 1.42 1,052,981.39 3137EACH0 Note FHLMC 2.875 02/09/15 925,000.00 103.00673 952,812.28 1.68 992,515.09 3137EADD8 Note FHLMC 0.500 04/17/15 800,000.00 99.47916 795,833.30 0.69 800,872.62 31398AU34 Note FNMA 2.375 07/28/15 600,000.00 105.47173 632,830.39 0.58 639,177.45 3133EADW5 Note FFCB 0.550 08/17/15 650,000.00 99.90387 649,375.17 0.58 652,610.54 313370JB5 Note FHLB 1.750 09/11/15 1,225,000.00 102.52939 1,255,985.07 0.94 1,272,462.90 31398A4M1 Note FNMA 1.625 10/26/15 950,000.00 102.87794 977,340.39 0.74 986,807.78 3134A4ZT4 Note FHLMC 4.750 01/19/16 550,000.00 114.33234 628,827.88 0.65 640,836.90 3135G0BA0 Note FNMA 2.375 04/11/16 865,000.00 104.76188 906,190.24 1.08 923,365.69 313373SZ6 Note FHLB 2.125 06/10/16 850,000.00 103.78521 882,174.32 1.14 894,988.45 3135G0ES8 Note FNMA 1.375 11/15/16 650,000.00 101.71306 661,134.86 0.97 666,420.26 subtotal $ 27,428,832.32 $ 27,996,540.09 $ 28,382,037.48 Total $ 87,997,834.24 $ 88,565,542.01 $ 88,951,039.40 Coupon Maturity Date Par Purchase Price MVACC City of San Leandro Investments by All Types Active Investments June 30, 2012 CUSIP Issuer CITY OF SAN LEANDRO MEMORANDUM DATE: September 7, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: David Baum, Finance Director SUBJECT: Debt Refinancing Update SUMMARY AND RECOMMENDATION Staff recommends that the Finance Committee approve the refunding of existing City issued 2001 and 2003 Certificates of Participation (COPs). BACKGROUND On May 4, 2012, staff indicated that the City’s debt could potentially be refunded to save interest costs, due to favorable interest rates in the municipal bond market. The Finance Committee agreed that the market is favorable and staff should proceed to refund bonds. DISCUSSION Since May 4, staff has received unsolicited proposals from numerous underwriters indicating interest rate savings from the refunding of outstanding debt. The focus of these refunding proposals is the City’s 2001 and 2003 COPs. The proposed amount of outstanding par value to be refunded for these two debts is $3,440,000 and $9,090,000, respectively. The average coupon for the outstanding debt is approximately 5 percent; the current interest cost for refunding debt is approximately 3.6 percent. Net present value savings for the potential refunding is approximately $1.1 million. The 2001 COPs and 2003 COPs can be refunded for expected net present value savings of $380,000 and $740,000, respectively. The 2001 COPs are an annual lease obligation of the City’s general fund but fully reimbursed by a pledge of property tax from the Successor Agency to the Redevelopment Agency. The 2001 COPs are now deemed to be refundable due to the governor’s signature on AB 1484 on June 27, 2012. This new law enables the outstanding debts of the former redevelopment agency to be refinanced if money is saved. The savings associated with the 2001 COPs would benefit the Successor Agency by reducing future debt service payments. At the May 4, 2012 Finance Committee, it was recommended that the same finance team that had arranged for the City’s pension obligation bond sale would handle the debt refinancing. Staff is now recommending that the same team be hired, except that a solicitation for underwriter occur to obtain the most favorable bond terms for the City. At least six underwriters have expressed an interest in serving the City as an underwriter during the past few months. Third Quarter Financial Report as of March 31, 2012 May 4, 2012 2 After issuing a request for proposals and preparing bond documentation, staff will return to City Council with a proposed debt offering to reduce the City’s future debt service. Additional details of the financing will be provided at that time. CITY OF SAN LEANDRO MEMORANDUM DATE: September 7, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: David Baum, Finance Director SUBJECT: Year-End 2011-12 Budget Amendment SUMMARY AND RECOMMENDATION Staff recommends that the Finance Committee review and approve the Year-End 2011-12 Budget Amendment. BACKGROUND The City Council approves annual budgets based on the best revenue and expenditure information available several months prior to the actual adoption of budget appropriations. As a result, budget adjustments are periodically necessary for changes that arise and require additional budget appropriations or re-appropriations between budget line items. The City Council approved the current 2011-12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budget on June 6, 2011. DISCUSSION The year-end 2011-12 financial update through June 30, 2012 for the General Fund, Special Revenue Funds, and Enterprise and Internal Service Funds is being provided to the Finance Committee in a separate report for review. The attached summary of budget adjustments reflects budget activity recorded by the Finance Department over the last six months of 2011-12. The proposed adjustments are summarized including the fund, the sources of additional revenues or transfers, and the purpose of new expenditures or transfers. The total change in fund balance for the General Fund for year-end budget amendments amounts to $882,381. The transfer of Capital Improvement funds to the General Fund, $991,727 increases fund balance. Other General Fund amendments causing decreases in fund balance include funding for the East Bay Regional Communications System Authority (EBRCSA) Police Radio project ($122,656), Public Safety Side-Fund refinancing funded from the sale of Pension Obligation Bonds ($24,239,690), Special Police Services ($294,696), and other projects totaling ($56,413). Year-End 2011-12 Budget Amendment September 7, 2012 2 Asset Seizure Fund appropriations ($197,526) are funded by existing fund balance. Development Fees for Street Improvement Fund, Park Development Fee Fund, Gas Tax Fund (Section 2103), Measure B – Alameda County Transportation Commission (ACTC), Community Development Block Grant Fund (CDBG), and the Home Fund projects are all funded by existing fund balance. All of the Special Grant Fund projects ($4,052,375) in the budget amendment are funded by newly approved and previously approved grant funds. Capital Improvement Project Fund included funding from the Port of Oakland for Phase II of the Airport Noise Abatement project ($3,428,934). Water Pollution Control Plant Fund includes the reduction for various completed Capital Improvement Projects, $1,550,357. Internal Service Funds includes funding from the Information Technology Fund for the EBRCSA Police Radio project ($120,550) and the Purchase of a Police Patrol Vehicle ($24,861) in the Equipment Maintenance Fund from the transfer of Asset Seizure Funds. CONCLUSION Staff recommends that the Finance Committee review and approve the Year-End 2011-12 Budget Amendment. City of San Leandro Attachment 1 Fiscal Year 2011-12 Year-End Budget Adjustments by Fund Revenue Expenditure Net Change to Funding Source Adjustments Adjustments Fund Balance General Fund $ 2 5,595,836 $ (24,713,455) $ 882,381 Other Funds: Development Fees For Street Improvements (DFSI) Fund $ -$ (110,001) $ (110,001) Park Development Fees Fund -55,742 55,742 Gas Tax (Section 2103) Fund -(287,962) (287,962) Measure B (ACTC) Fund -(164,337) (164,337) Asset Seizure Fund -(197,526) (197,526) Special Grants Fund 4 ,332,962 (4,052,375) 280,587 Community Development Block Grant (CDBG) Fund -(35,000) (35,000) Home Fund -(65,000) (65,000) Capital Improvement Project Fund 2 ,453,991 (2,476,426) (22,435) Water Pollution Control Plant Enterprise Fund -1,550,357 1,550,357 Information Technology Fund -(120,550) (120,550) Equipment Maintenance Fund 2 4,861 (24,861) -Total Other Funds $ 6,811,814 $ (5,927,939) $ 883,875 Total All Funds $ 32,407,650 $ (30,641,394) $ 1,766,256 Attachment 2 GENERAL FUND Revenue Budget Adjustments: HVAC & Roof Repair Projects Completed $ 991,727 Recreation Program Donations 4,413 Special Police Services -Nike, Century, SLUSD 294,696 Bond Proceeds 18,305,000 Loan From WPCP 6,000,000 Total Increase in Revenues $ 25,595,836 Expenditure Budget Adjustments: Purchase of Police Radios EBRCSA $ (122,656) Recreation Programs from Donations (4,413) Sound wall Repair Project -Funding transferred to the CIP Fund (50,000) Economic Development Training Conference (2,000) Special Police Services -Nike, Century, SLUSD (294,696) Public Safety Side-Fund Refinancing (24,239,690) Total Increase in Expenditures $ (24,713,455) Total Change in Projected Ending Fund Balance $ 882,381 DEVELOPMENT FEES FOR STREET IMPROVEMENT FUND (DFSI) Expenditure Budget Adjustments: Fiber Loop Project $ (120,000) BART Access & San Leandro Blvd Study -Project Completed 9,999 Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (110,001) PARK DEVELOPMENT FEES FUND Expenditure Budget Adjustments: Knight Memorial -Project Completed $ 517 Sr. Center Furniture -Project Completed 73,683 Toyon Park -Additional Construction (18,458) Total Decrease in Expenditures and Total Change in Projected Ending Fund Balance $ 55,742 GAS TAX FUND (SECTION 2103) Expenditure Budget Adjustments: BART-Downtown Pedestrian Improvement Project $ 700,000