8H Consent Calendar 2017 0717 - Laserfiche WebLink

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File Number: 17-392 - The current year's third quarter expenditures are $213,000 or 10% more than in 2015-16 and reflect more staff time spent on capital projects. Furthermore, higher costs also represent increases to salaries and benefits as a result of new labor agreements, normal step level adjustments, and rising PERS costs. Public Works (75% of adopted budget compared to 72% in 2015-16) - The current year's third quarter expenditures are $524,000 or 15% more than in 2015-16 and reflect increased costs for salaries and benefits due to new labor agreements. Additionally, there were increased costs for street and grounds repair, water costs, and parks maintenance supplies. Debt Service (10% of adopted budget compared to 44% in 2015-16) - The current year's third quarter expenditures are $1.5 million or 74% less than in 2015-16. This is entirely due to an internal timing issue of when debt service payments are recorded. Staff expects debt service payments to fully equal budgetary appropriations by end of the fiscal year. Transfers (175% of adopted budget compared to 48% in 2015-16) - The current year's third quarter expenditures increased by $4.4 million or 239% greater than in 2015-16. This is due to a $6.2 million transfer to the Insurance Services Fund to contribute to a PARS trust account to reduce the unfunded liability for retiree healthcare. Enterprise & Internal Service Funds Four Enterprise Funds make up the City's business type operations. The Water Pollution Control Plant Fund, the Environmental Services Fund, the 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 Internal Service Funds. The following details year over year Enterprise & Internal Service Funds expenditure or revenue variances that are equal to or greater than + or - 10% and are presented in the order they are shown on the mid-year financial report: Water Pollution Control Plant (593) - Revenues decreased by $4.4 million or 30% primarily due to the $4 million Siemens settlement agreement received in 2015-16. Expenditures decreased by $1.6 million or 14% due to a decrease in expenditures and projects related to the plant’s rehabilitation and co-generation. Facilities Maintenance (687) - Expenditures decreased by $330,000 or 14% due to lower costs for building maintenance, HVAC repair and replacement, and the replacement of windows at the Marina Community Center. Information Technology (688) - Expenditures increased by $425,000 or 16% due to increased costs in software maintenance and equipment when compared to the same time period last fiscal year. Insurance Services (689) - Revenues increased by $4.2 million or 89% primarily due to a transfer of $6.2 million from the General Fund for the Prioritizing Unfunded Liability Liquidation Page 4 City of San Leandro Printed on 7/11/2017 362