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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 Reduce Available Funding for Street Overlay/Rehab (987,962) Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (287,962) MEASURE B (ACTC) FUND Expenditure Budget Adjustments: Additional funding for Bicycle & Pedestrian Improvements $ (40,000) Fund Bancroft Avenue/136th Avenue Traffic Signal project (55,000) Annual Overlay -Use of Measure B Funds (57,761) Wicks Blvd Walkway -Additional Funds (12,537) Annual Overlay/Street Sealing Project 2007-08 -Project Closed 961 Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (164,337) RECOMMENDED YEAR-END BUDGET ADJUSTMENTS -DETAIL 2011-12 Attachment 2 RECOMMENDED YEAR-END BUDGET ADJUSTMENTS -DETAIL 2011-12 ASSET SEIZURE FUND Expenditure Budget Adjustments: Police Asset Seizure Funds for purchase of Police Radios EBRCSA $ (50,000) Computer Equipment (27,210) Police Supplies (3,795) Transfer funds to Equipment Maintenance Fund for Police Vehicle purchase (24,861) Vehicle Equipment/Installation (34,037) SWAT Audit (5,260) Construct Patrol Car Security Fence (9,604) Purchase Police SUV (28,867) Gun Range Repair (13,892) Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (197,526) SPECIAL GRANTS FUND Revenue Budget Adjustments: Department of Transportation -Downtown Streetscape $ 4,298,437 National Endowment of the Arts Grant 13,600 PGE Reimbursement for Energy Efficient Block Grant 20,925 Total Increase in Revenues $ 4,332,962 Expenditure Budget Adjustments: Police Grant Funds for purchase of Police Radios EBRCSA $ (178,200) Downtown Streetscape Construction Project (4,298,437) Police Equipment/Supply Purchases (9,182) Police Vehicle Emergency Equipment (5,292) Arts Grant -Library Big Read Program (13,600) Increase funding for Energy Efficient Block Grant Project -PGE Reimbursements (20,925) Energy Efficient Block Grant Project -Adjust Budget to match balance 147,187 Park Pathways -Project Completed 9,232 Toyon Park Play Equipment -Project Completed 281,208 BART Access & San Leandro Blvd Study -Project Completed 25,095 Bancroft Avenue Street Rehabilitation -Project Completed 5,104 E14th St. Medians -Project Completed 763 Springlake Drive Street Rehabilitation -Project Completed 4,672 Total Increase in Expenditures $ (4,052,375) Total Change in Projected Ending Fund Balance $ 280,587 COMMUNITY DEVELOPMENT BLOCK GRANT FUND (CDBG) Expenditure Budget Adjustments: Surf Apartments Acquisition & Rehabilitation Project $ (35,000) Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (35,000) HOME FUND Expenditure Budget Adjustments: Surf Apartments Acquisition & Rehabilitation Project $ (65,000) Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (65,000) Attachment 2 RECOMMENDED YEAR-END BUDGET ADJUSTMENTS -DETAIL 2011-12 CAPITAL IMPROVEMENT PROJECT FUND Revenue Budget Adjustments: Funding from General Fund for the Sound wall Repair Project $ 50,000 Port of Oakland Reimbursement for Airport Noise Abatement 3,428,934 Total Increase in Revenues $ 3,478,934 Expenditure Budget Adjustments: Sound wall Repair Project $ (50,000) Underground Utility Fees -Posted to incorrect fund (29,960) Sr. Center Design Schematics -Project Completed 7,525 HVAC and Roof Repair Projects Completed 991,727 Airport Noise Abatement -Phase II (3,428,934) Transfer Project Savings to General Fund (991,727) Total Increase in Expenditures $ (3,501,369) Total Change in Projected Ending Fund Balance $ (22,435) WATER POLLUTION CONTROL PLANT ENTERPRISE FUND Expenditure Budget Adjustments: 2660 Eden Road Grading & Remediation -Project Completed $ 894,534 Blue Dolphin Lift Station -Project Completed 273,737 TOD Infrastructure Study -Project Completed 3,960 Underground Utility Fees -Posted to incorrect fund (50,562) San Leandro Blvd/Davis St. Sewer Capacity -Project Completed 88,382 2550 Davis St. Demolition -Project Completed 35,717 WPCP Acquisition -Project Completed 10,556 Waste Activated Sludge Thickening -Project Completed 7,694 2009 Sanitary Sewer Replacement -Project Completed 286,339 Total Decrease in Expenditures and Total Change in Projected Ending Fund Balance $ 1,550,357 INFORMATION TECHNOLOGY INTERNAL SERVICE FUND Expenditure Budget Adjustments: Purchase Police Radios EBRCSA $ (120,550) Total Increase in Expenditures and Total Change in Projected Ending Fund Balance $ (120,550) EQUIPMENT MAINTENANCE FUND Revenue Budget Adjustments: Asset Seizure Funds to purchase patrol vehicle $ 24,861 Total Increase in Revenues $ 24,861 Expenditure Budget Adjustments: Purchase patrol vehicle from Asset Seizure Funds $ (24,861) Total Increase in Expenditures $ (24,861) Total Change in Projected Ending Fund Balance $ -TOTAL NET BUDGET ADJUSTMENTS FOR ALL FUNDS $ 1,766,256 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 Financial Report (Unaudited) as of June 30, 2012 for the 2011-12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budget SUMMARY AND RECOMMENDATION Staff recommends that the Finance Committee review and approve the unaudited Year-End Financial Report as of June 30, 2012 for the 2011-12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budget. BACKGROUND The City Council-approved 2011-12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budget in the annual plan and resource allocation that guides and ensures implementation of City Council policies and priorities. The budget implements the vision and direction for the broad range of services that meet the needs of the community in accordance with City Council policy. This financial review as of June 30, 2012 provides the year-end budget update to the City Council for the new fiscal year. Analysis of the revenues collected and all expenditures through June 30, 2012 measures the budget’s adherence to the established resource allocation plan. DISCUSSION The adopted budget incorporates the estimated revenues and planned expenditures for all funds. The attached unaudited Year-End Financial Report as of June 30, 2012 provides the revenue and expenditure summary for the General Fund, Enterprise Funds, and Internal Service Funds. The following discussion focuses on variances from the revenue and expenditure plans and allocations contemplated in the budgets. General Fund The General Fund finances the operations of the City that have no special or dedicated revenue sources and pays for basic municipal services. The Adopted General Fund 2011-12 Budget expenditures total $71,760,000 which matches the estimated revenues of $71,760,000. Year-End Financial Report as of June 30, 2012 September 7, 2012 2 Total unaudited year-end revenue in 2011-12 amounts to $101,420,000, 141% of the adopted budget. The 2011-12 unaudited expenditures at year-end amount to $96,626,000, 135% of the budget. The budget was approved with the operating revenues and expenditures in balance, without the use of reserves or one-time revenues, for the first time since 2007-08. Receipts from a number of revenue sources, including property tax, sales tax, interest earnings, and planning and building permit fees, historically correlate with changes in regional and state economic conditions. General Fund Revenue Overall General Fund unaudited revenues increased by 41% over the adopted budget primarily due to the sale of the Pension Obligation Bonds and the loan from the Water Pollution Control Plant totaling $24,305,000 to refinance the Public Safety Side Fund. Other major revenue categories are depicted below: Property Tax (101% of budget)—The current year’s budget for property tax revenue is $100,000 greater than budgeted in 2010-11. Payments of property tax from the secured, unsecured roll and property reassessments by Alameda County total $15,595,000. Sales Tax (106% of budget)— Total Sales tax received was $24,388,000 which includes $3,732,000 from the approval of Measure Z. Sales tax revenue reflects a total increase of $1,278,000 over the adopted budget. A combination of previous additions and strong demand boosted receipts from vehicle sales and contractor supplies. Higher fuel prices and a solid year for most categories were also a factor. Utility Users Tax (UUT) (102% of budget)—UUT revenues are comprised of taxes on energy, cable and telecom usage. Total receipts depict a moderate 2% increase over the adopted budget. Property Transfer Tax (122% of budget)—Property Transfer Tax revenue includes $630,400 as a result of the sale of the Lakeside Village apartment complex to a new investment firm in November 2011. This revenue represents a one-time payment. Charges for Services (125% of budget)—Charges for services reflects payments from Kaiser Hospital for fire review and inspection fees. Also, reimbursements for Police service fees by the Nike store for 2010-11 are received in 2011-12. Licenses & Permits (126% of budget)—License & Permits revenues reflect Kaiser Hospital permit fees of $500,000. Additional high value building permits were issued for the Water Pollution Control Plant project and for work at the transfer station by Waste Management. Other Revenue (328% of budget)—Revenue from other sources reflects a one-time $450,000 payment for the Administrative costs associated with the dissolution of the Redevelopment Agency. Year-End Financial Report as of June 30, 2012 September 7, 2012 3 General Fund Expenditures Overall General Fund unaudited expenditures increased by 35% over the adopted budget as discussed below: General Fund unaudited expenditures increased by $24,866,000 primarily due to the payment made to the Public Employees Retirement System for the refinancing of the Public Safety Side-Fund. The payment made totaled $23,972,000 and is supported by the issuance of Pension Obligation Bonds and a $6,000,000 loan from the Water Pollution Control Plant to the General Fund. Other expenditure increases include the transfer of Business Development and Housing activities to the General Fund due to the dissolution of the Redevelopment Agency and the transfer of funds for Public Education & Government into a Special Revenue Fund to better track the receipts and uses of the funds. Enterprise & Internal Service Fund Expenditures Four Enterprise Funds make up the City’s business type operations. The Water Pollution Control Plant Fund, Environmental Services Fund, Shoreline Enterprise Fund, and the Storm Water Fund are City municipal operations designed to fully recover costs through user fees. Internal Service Funds also operate as business activities, exclusively supporting the City’s internal operations. Facilities Maintenance, Information Technology, Insurance Services, and Equipment Maintenance make up these funds. Variances in the funds as depicted in Attachment 2 are discussed below: Water Pollution Control Plant (130% of budget)—Unaudited expenditures at year-end are higher due to the Waste Water Treatment Plant expansion project. Storm Water Fund (95% of budget)—Unaudited expenditures at year-end are higher due to an increase of $51,000 in transfers to support Storm Water activities in the Environmental Services Fund and an overall increase in abatement services. Insurance Services (85% of budget)—Unaudited expenditures at year-end do not reflect the adjustment for the General Liability and Workers’ Compensation. The adjustment will be made after completion of the actuarial report in October. Special Revenue Funds Revenues and expenses for the City’s operating Special Revenue Funds for the Parking Fund, Gas Tax Fund, Heron Bay Maintenance Fund, Housing Services Funds, Business Improvement District Fund, and Public Education & Government Access Fund are provided in Attachment 2. CONCLUSION Staff recommends that the Finance Committee accept and approve the unaudited Year-End Financial Report as of June 30, 2012 for the 2011-12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budget for forwarding to the full City Council for review and approval City of San Leandro General Fund Attachment 1 2011-12 (Unaudited) Actual Variance Actual Actual YTD Adopted Positive 2009-10 2010-11 6/30/2012 2011-12 (Negative) Revenues: Property Tax $ 16,118 $ 15,615 $ 15,595 $ 15,400 $ 195 Sales Tax 17,826 21,185 2 0,656 1 9,310 1 ,346 Transaction & Use Tax -869 3,732 3,800 (68) Real Property Transfer Tax 2 ,297 2,529 2,982 2,444 538 Utility Users Tax 9 ,753 9,933 1 0,021 9,848 173 Franchise Fees 4 ,005 4,125 4,357 3,983 374 Business License Tax 4 ,149 4,361 4,557 4,225 332 911 Tax 2 ,712 2,694 2,685 2,700 (15) Other Taxes 366 520 389 277 112 Licenses & Permits 1 ,416 1,818 1,969 1,560 409 Fines/Fees/Forfeitures 1 ,149 1,377 1,111 1,190 (79) Revenue from Money/Property 1 ,231 1,069 964 1,025 (61) Intergovernmental 1 ,445 1,216 990 1,064 (74) Charges for current services 2 ,624 2,591 2,972 2,374 598 Interdepartmental Charges 2 ,273 2,295 2,275 2,295 (20) Other Revenue 3 ,354 351 868 265 603 Total Revenue 70,718 72,548 7 6,123 7 1,760 4 ,363 Expenditures: Salaries $ 25,088 $ 22,450 $ 23,605 $ 22,436 $ (1,169) Benefits 13,058 12,453 1 2,730 1 3,809 1 ,079 Public Safety Side-Fund --2 3,972 -(23,972) Sub-Total Salaries & Benefits $ 38,146 $ 34,903 $ 60,307 $ 36,245 $ (24,062) Consulting Services 767 853 841 729 ( 112) Other Services 4 ,406 4,401 4,455 4,152 ( 303) Fire Contract Services 17,494 17,141 1 7,563 1 7,821 258 Supplies 1 ,208 1,226 1,238 1,261 23 Capital Outlay 543 229 114 78 (36) Debt Service 2 ,977 2,981 3,249 2,981 ( 268) Internal Service Fund Charges 8 ,360 7,757 8,485 8,310 ( 175) Other 404 186 75 115 40 Total Expenditures $ 74,305 $ 69,677 $ 96,327 $ 71,692 $ (24,635) Net Operating Revenue/(Expenditure ) (3,587) 2,871 (20,204) 68 (20,272) Other Financing Sources (Uses): Transfers In from Self Insurance Fund 1 ,393 500 ---Transfers (Out)-Self Insurance Fund (550) (1,500) ---Transfers (Out) Gas Tax (1,000) (300) ---Transfers (Out) -Refuse Contract (68) (68) (68) (68) -Transfer In/(Out)-CIP 64 100 942 -942 Transfer (Out) -Street Improvements -(1,600) ---Transfer (Out) -Other Funds -(726) (181) -( 181) Debt Proceeds 462 -2 4,305 -24,305 Total Other Financing Sources (Uses) 301 (3,594) 2 4,998 (68) 25,066 Net Revenues/(Expenditures) $ (3,286) $ (723) $ 4 ,794 $ -$ 4,794 Beginning Designated Fund Balance 15,670 13,494 1 5,302 1 5,302 -Resources/(Requirements) 1 ,110 2,531 231 351 120 Ending Designated Fund Balance $ 13,494 $ 15,302 $ 20,327 $ 15,653 $ 4,914 (In Thousands) 8/31/2012 City of San Leandro Year-End Financial Report As of June 30, 2012 (Unaudited) GENERAL FUND Adopted Budget Unaudited Actual 6/30/2012 % of Budget Adjusted Budget Adopted Budget Actual 06/30/2011 YTD % of Budget Yr to Yr Change ($) Yr to Yr Change (%) GENERAL GOVERNMENT Property Tax 15,400 15,595 101% 15,780 15,300 15,616 102% (21) 0% Sales Tax 23,110 24,388 106% 23,110 17,850 22,051 124% 2,337 11% Utility Users Tax 9,848 10,021 102% 9,848 9,635 9,891 103% 130 1% Franchise Fees 3,983 4,357 109% 3,983 3,940 4,160 106% 197 5% Property Transfer Tax 2,444 2,982 122% 2,444 2,444 2,529 103% 453 18% Emergency Communication Access Fee (911) 2,700 2,685 99% 2,700 2,500 2,694 108% (9) 0% Business License Tax 4,225 4,557 108% 4,225 3,965