Laserfiche WebLink
BUDGET MESSAGE SECTION 2 <br /> <br />SPECIAL REVENUE FUNDS <br /> <br />Special Revenue Funds are used to account for revenue derived from specific taxes from <br />other revenue sources that are restricted by law or administrative action to expenditures <br />for specific purposes. Special revenue funds have either a restriction on their use or <br />special reporting requirements, such as funds received related to AB 1600 development <br />impact fees. <br /> <br />ENTERPRISE AND INTERNAL SERVICE FUNDS <br /> <br />Four Enterprise Funds make up the City’s business type operations. The Water Pollution <br />Control Plant Fund, Environmental Services Fund, Shoreline Enterprise Fund, and the <br />Storm Water Fund are City municipal operations designed to fully recover costs through <br />user fees. Internal Service Funds also operate as business activities, exclusively <br />supporting the City’s internal operations. Facilities Maintenance, Information Technology, <br />Insurance Services, and Equipment Maintenance make up these funds. <br /> <br />The Storm Water Enterprise Fund is the only enterprise fund projected to face a negative <br />fund balance (-$1,940,800). For the Fund to remain self-sufficient over the long-term, it <br />will require new voter-approved funding or continued subsidy from the General Fund. The <br />Shoreline Fund has a positive fund balance, but it must be monitored closely due to <br />$6,500,000 in debt owed to the General Fund. Deferring principal repayments on the <br />Shoreline Fund’s debt to the General Fund has been a balancing strategy since 2012-13. <br />However, loan principal payments were reinstated in 2017-18 and are included in the <br />proposed budget. <br /> <br />Significant Shoreline Fund proposed changes in 2021-22 relate to golf course operations <br />and include: <br /> <br />• Golf Course—management fee ($150,000), operating expenses ($1,788,400), and <br />driving range and clubhouse improvements ($350,000) <br /> <br />CAPITAL IMPROVEMENT PROGRAM <br /> <br />The Capital Improvement Project (CIP) program represents the spending plan for <br />infrastructure improvements and other specific large-scale capital purchases. Projects <br />include major street and park improvements, building construction, and significant facility <br />maintenance or upgrades. <br /> <br />The total CIP program in the biennial budget consists of $20,717,900 in 2021-22 and <br />$23,834,200 in 2022-23. These amounts include miscellaneous department projects. <br />General Fund CIP commitments total approximately $6,000,000 in 2021-22 and <br />$13,000,000 in 2022-23. The CIP plan significantly contributes to the total budget and to <br />the community. It is important to note that the budget does not include every project on <br />the master list, but only projects currently underway. <br /> <br /> <br />17 <br />50