HomeMy WebLinkAbout1981-02-10; City Council; 6508; Second Quarter Report 1980-81.,,......,,
CITY l'F CARLSBAD
AGENtA E ILL NO.
FEBRUARY 10, 1981 DATE: ----------------------
DEPARTMgNT: __ F_I_N_A_N_C_E ____________ _
Subject:
SECOND QUARTER REPORT· 1980-81
Statement of the Matter
The City'!l position as of December 31, 1980, is generally good. Most:
funds will experience some savings due to delays in hiring staff, ·
r-educed levels ·of activity or delayed capital projects. These savings
will amount to ~bouc $400,000 in the general fund and $300,000 ~o other
funds (primarii,if water). On the revenue side, ,tbtal revenues in
operating funds·are very close to the initial httdget estimates. Capital
funds have experienced higher than anticipated revenues due to improved
development activity. These increases may amount LO as much as
$800,000_by year end.
For 1981-82, the City can expect the current development and economic
activity to continue. Total general fund revenues for 81-82 will amount
to $12.C: Million, an 18% increase over 80-81. fotal revenue to all funds
will amount to about $21.4 Million.
The major problem facing the City i1, 1981-82 from a fiscal viewpoint is
. the proposed State budget deficit. The State has the power•to recover a
portion of this budget deficit from local governments by removin~ State
bailout funds ($715,000) and State subventions ($800,000). These
reductions could cost the City a total of $1. 5 Million if t:he State
attempts to re':over the ma.ximum amount .
. Fiscal Impact
For 1980-81, the City should expect to realize a general fund savings
of about $400,000. This will improve the year end position of this fund.
For 1981-82, the proposed State reductions make budgeting very difficult.
If the Council adopts a balanced budget approach, there will be
an additioMl effort required by the City staff to prepare the budget.
Exhibits
Report from Finance Director to the City Manager on the Second Quarter
Report.
Recommendation
The staff reconnnends that the City Council accept tM s report and instru,~t
staff to prepare a balanced 1981-82 budget, allowing for a $1.l Million
reduction in State bailout funds and State subventions. The staff shall
also research possible sources of add~tional revenues for 1981-82.
Council Action: 2-10-81-Council accepted the report and directed staff to prepare
a balance budget based on a maximum of $11.8 million.
CITY OF CARLSBAD
REPORT OF SECOND QUARTER
FINANCIAL ACTIVITY
1980-81
Prepared by:
February 10,1981
JAMES F. ELLIOTT
Finance Director
REPORT SUMMARY
The City's position as of Dec;:.,1ber 31, 1980, is generally good.
Most funds will -axpBrience s.:ime savings due to delays in hiring staff,
reduced levels of activity •"';: dalayed capital projects. These savings
will amount to about $400,000 in the general fund and $300,000 to
other funds (primarily water). 0n the revenue side, total revenues
in operating funds are very close to the initial budget estimates.
Capital funds have experienced higher than anticipated revenues due to
improved development activity. These increases may amount to as much
as $800,000 by year end.
For 1981-82, the City can expect the curr~r.t development and
economic activity to continue. Total general fund revenues for 81-82
will amount to $12.8 Million, an 18% increase over 80-81. Total
revenue to all funds will amount to about $21.4 Million.
The major problem facing the City in 1981-82 from a fiscal view-
point is the proposed State budget deficit. The State has the power
to recover a portion of this budget deficit frcm local governments
by removing State bailout funds ($715,000) and State subventions
($800,000). These reductions could cost the City a total of $1.5
Million if the State attempts to recover the maximum amount.
REVENUES -1980-81 OVERVIEW
Actual revenues as of December 31, 1980, are running slightly
ahead of initial budget estimates. A conse,vative approach was used
when formulating the 1980-81 budget figures, particularly in the areas
of development. Sources, such as engineering, plan checking, public
facilities and sewer connection fees, have shown a higher than
anticipated return during the first six months of this year.
This relatively positive experience in d~velopment has been
somewhat offset by decreases in the area of sales and property trans-
fer tax revenues. The pressure of tight credit and high interest
rates have slowed general consumer buying from 5% in retail sales to
as much as 20% in auto sales. Property sales have also slowed due to
the increase in mortgage rates to as high as 17%. Table I sunnnarizes
the experience of the first six months of 1980-81 and includes
revised revenue estimates for several funds.
TABLE I
1980-81 Revenues Through 12-31-80
Fund Budget Anticipated Actual Revised
Estimate Revenue Income Through Budget Estimate
Through 12-31-80 12-31-80
General $10,741,000 $4,750,000 $4,972.000 $10,762,100
Gas Tax 333,400 15lf,000 156,000 337,000
Sanitation 533,000 266,000 258,000 531,000
Sewer Con-
struction 700,000 350,000 483,000 1,132,000
Revenue
Sharing 530,000 170,000 176,000 546,000
P.F.F. (1) 67,500 35,000 278,000 560,000
Park-In-
Lieu 65,000 32,000 103,000 175,000
Grants 939,350 470,000 66,000 795,000
Water 1,800,000 900,000 914,000 1,800,000
Other (2) 429,500 2151000 210,000 423,100
TOTAL $16,138!750 $7, 3!,2, 000 $7,616,000 $17,061,2.00
(lJ) Public Facilities Fees
(2) Includes Library and Sa,,,er Bond Di.st:1.i.ct Service and Street Lighting
GENERAL FUND REVENUES
General Fund revenues are holding very close to the original budget
estimates. Increases in development-related activities have been offset
by decreases in sales tax revenues. The current estimate of $10.8
Million reflects an increase of about $20,000 over the budget estimate.
10
s
FIGURE A
G!~ERAL F'J~O J:i~•,:~-UE
79·80 ACTUAl: 80·81 B~O~H
80•81 ACWAt
1st 2nd
79•$0 Actu~I l\evcnce ------
80·81 !u~get
60•81 Ac teal Revenue 0-• -• -• (:)
3rd
\_-----~~~-~~--Figure A is a comparison of 1979-80 and the current budget, with
actual experience through 12-31-80. The estimates for the ~emainder of
1980-81 have been based upon the following major assumptions:
1. The level of building activity experienced in the first six
months of 1980-81 will continue through year end. Approximately $43 Million
in building permits will be issued (About 400 EDU's). This will maintain
the current pace in development activities.
2. Interest rates will drop from the current 20% to about 16%.
This will help counteract the slow dcwn in consumer buying experienced
during the past two to three months.
3. There will be no significant change in the level of State
support to the City through various State subventions. These are revenues
collected by the State that are then distributed to local governments.
-2-
These assumptions are the most important considerations and do not
reflect all assumptions made in the process of budgeting or estimating
revenues.
One major unknown factor is the amount of interest the City will be
able to earn on investment funds. An evaluation of this factor will be
included in the next quart~rly report.
FIGURE B
PERCl'NT n.o §
YIELDS ON SCLECTED SECURITIES
AVERAGES OF OAII.Y BATES CNOEO i'l\101\Y PERC::HT
22.1)
rM 2i.o
20.0
10.0
10.0
17.0
l&.O
,s.o
14.0
9.0
8.0
r.o
.: PRIIJ'.E O>.t:< ,.: LOAN fV,lE
§ ,~ Iii
~ ~ ~ ...
§ r ~ ,_
'= rJ f ~..,.,-11-. --1--
E'\ /J
?_1 ~ iJ/ I i--... t l::c~cRc11,1, f/J'Efl / -;A ' CO-'\l'OS'lC • ~ V /.MW>lS i., ~. ~ ~ I?"= .; l f\.,,, )
; ,/,~"·\. ~ OOO~Y C(l•t-:-
1 .}.--t:-? --~ : / I . .. --II , r-, •• -1 :--... ... ··-
~ 1/.i
i~ r--
fr
: r/ V\
"VJ
~
~ r~
... ~ ~-· ~
:;I ¢t _j
: .
:
=l
I'-'.
-~ g
§
·~-; . -
:
?0.0
io.o
18.0
11.0
16.0
,s.o
11.0
10.0
o,o
e.o
1/ f!:lf~"1.
5.u.J. 11 I ;•, I I I I t I IJ.1.1..U.J. UlJ. UL.1.1, UJJ.llJ I I I I I 11 I I w lJ.!.ld" O I 10, ~o ~4 ta 11 1$ • 2l t ZI 4i H J 16 )J I) U II :) t U 5 Ii 3' U i, 14 2:0 ll U t U O
NOV etc J/o.N rto ~1,/1 IJ'~ l!,W .ro,q ""· A\tC st~ OCT 111:N OEC Jm
1071'1 IQOO lQOI
lAlEST OATA tlOllCO mt Al'tMGlS Cf' RAICS AV,\ILA~( fOII 11£ •~c~ [N)lt,:;, JA»JIJ\1 23, lOCl
Figure B shows the rollercoastet ride interest rates have taken in
the past 15 months. This makes accurace predictions of interest earnings
very difficult. City funds have historically been invested at or above
the 90-day Certificate of Deposit (CD) rate shown in Figure B.
Figure C shows the various components of the General Fund Revenue
received through December 30, 1980. About one-half of the revenue received
in the first six months has come from sales and property taxes. This
dependence on these two sources will increase to about 60% by year end.
klu Tu.
t,o~rc.y 'fa.1
Ut•r C~r,;11
• IMetc:.vutMt\tal
kvt'Wt
• OU·•t 'Tu.ta ,
1Mtrtlt
OPtltJ.TIM: l{'/[\".!t • 6 ~~"IS
flSC.,L !O•SI
l
.2"
llt
m
IOt
.,
., .
,S•
FIGURE C
srAu er
c.u.mMIA
err/ or
WlSllO
15,0 Kllllon
colff~L e, ecwtRAt. ru.o
0fitM1'1N: l!Vf~'"J( ! ' ~¢-.irvs:
tlSC1l 15so-81
77' • u.a 111111 ..
2l t "$1,2 Killion
IS,O KIii ion
Figure C also includes a chart showing the relatively small amount
of control the City exercises over General Fund revenue. Only 23% of the
total $5 Million revenue received through December is under direct City
control.
OTHER FUNDS -REVENUE
Revenues in the sp-cial City funds fall into two categories:
Operating and Capital. The operating funds such as gas tax and sanitation
are receivi.ng revenues at the budgeted rate. There have been no
significant increases or decreases in revenue flow.
The capital fu11ds such as sewer construction, public facilities
fees and park-in-li,;iu fees are ahead of the budgeted figures. Revenues
received in the second quarter of this year are generally ahead of the
first quarter as shown in Figure D.
-4-
Sewer Construct Ion
0
0 ....
0 0
"' .,, $287
0
'O 0
CN .. .. $196 :,
.2'o ... ~
1st 2 d
Quarter 1980-81
FIGURED
CO!IPARISOM OF FIRST AMO SECOND QUARTER 1980-81
REVEMUES FOR SELECTED FUMOS
Park ln•LI eu Pub I le Facll ltles
0
0
0 $82 ....
C0
0
0 0
'f' "' .,,
"' $255 'O 0
'O co
""" ..... .. ..
"' :, .,. 0
0 .c Q
.<: I-0
1-N -$23
1 t 2 d 1 t: 2"
Qu.irter 19~i-a1 Quarter 1980•81
The revenue estimates for these funds have been adjusted as shown
in Table I to reflect increased levels of activity. Information supplied
by the engineering, planning and building departments, although not
totally corralated, has been used to derive these new estimated
revenues.
SUMMARY -REVENUES
The City's experience through December 31, 1980 suggests that thsre
are no significant problems at this time. Reductions in revenues in
.e:.ome categories have been off set by increases in others. Generally,
development-related revenues have dominated the second qu~rter picture.
The true economic impact of the lat,e December Holiday Season and high
interest rates is still unknown at this time. Reliable figures will
not be available until May, 1981. The City's position is currentl.y good
and relatively close to previous estimates for most categories of revenue.
The City's budget position has not i;ignificantly changed iu terms of
operating revenuec;. Capital revem.H!S have accelerated this quarter
which will improve the year end capital budget picture.
-
EXPENDITURES -1980-81 OVERVIEW
The City's expenditure rate through December 31, 1980 is running
below current budget projections. These savings appear in th1:ee major
categories: 1) Salary -Savings -those dollars saved due to staff.
turnover or delays in filling vacant positions, 2) Maintenance &
Operation Savings -primarily d.J.e to delays in contracting for
professional services, fi.llir,g vacant positions, and adopting a Capital
Budget Progran1, 1) Capical -r~duced activity due to delay of Capital
Budget Projects until mid year.
For the General Fun<l, these savings may amount to as much as $400,000 by
June 30, 1981. The total s~vings to all funds based upon the current
rate of expenditure would be amcJnt $700,000 by year end. The Table
below summarizes the current budget position.
TABLE II
1980-81 Expenditures through 12-31-80
Fund Budget Anticip:ited Actual Revised
Estimate (l) Expense Through Expense Through Budget Estimate
12-31-80 12-31-80
General $12,211,080 $5,490,000 $4,520,554 $11,800,000
Gas Tax 470,160 240,000 308,052 470,160
Sanitation 634,516 365,000 242,810 575,000
Sewer Con-
struction 1,956,616 1,000,000 1,184,994 1,956,616
Revenue 805,000
Sharing 1,682,809 -0-4,826 1,682,809
P.F.F. -0--0--0--0-
Park-In-
Lieu 11,500 -0--0-11,500
Grants 994,553 500,000 386,214 994,553
Water 2,038,806 1,100,000 786,308 1,800,000
Other <2) 4381212 -0-287,286 4381212
TOTAL $20,438,252 $9,500,000 $7,721,044 $19,728,850 -(1) Current~ budget figures as of Decarber 31, 1980 prior to adoption of CIP.
Capital Porjects in all funds will be reflected in the next quarterly report.
(2) Includes Librar.y and Sewer Bond Debt Service aoo Street Lighting ftmds.
GENERAL FUND OPERATING EXPENDITURES
General Fund expenditures for the first six months of 1980-81 are
slightly behind the original budget estimates. A savings of at least
$400,000 should be realized if current trends continue (See Figure E).
Table III summaries the expenditures through December, 1980.
-6-
10
6
II
2.
Category
Salaries
Haintenance &
Operations
Equipment
'IDI'F.L:
Ope1·at:ing Exp •
Capit:sl
TlJrAL IDrEl:llSES :
FIGURE E
CENEAAL FUND 0PEltATIIIC EXP£NMTIJRtS
79•80 ACTIJALj 80°81 8UDCET
80°81 ACTUAL
TABLE III
11,0
)rd
General Fund Expenses Thru 12-31-80
1980-81 6-Mo 80-81 %
Budget E~<:eense ExEense
$ 6,180,442 $ 2,aos. 1114 45
4,294,569 1,642,8/iS 38
-1Q.l,951 68,4~ 14
$10,976,962 $4,516,886 41
1,2341118 31668
$1212111000 $ 4!520,554
-7-
79-80 6 Mo,
Ex:eense Rate
49
48
41
48
The savings in operating expenses to date fall into three
categories: Salaries, Maintenance & Operation, and Equipment.
A description of each category is below:
Salary Expense: Significant salary savings are being generated both
by the time factor involved with filling additional budget authorized
positions and a continued City-wide attrition rate of 5-7%. If these
factors remain consistent throughout fiscal 80-81, the City should
realize a salary savings in the General Fund of approximately $375,000.
Maintenance & O~erations: The rate cf expenditures for maintenance and
operations is significantly lower after six months of operations
during 1980-81 than during 1979-80. This is attributable to expenditures
lags in such areas as advanced planning -professional services: park
mainte~ance and aquatics programs: non-departmental lease payments:
retirement cost savings due to delays in hiring new employees: and
decreases in expenditure rates for the fire suppresion, engineering and
street maintenance departments. These factors account for a savings of
approximately $375,000. An additional $130,000 of savings has been
experienced due to the timing of posting expenses to the City books. This
amount will be offset by year end.
Equipment: Although the rate of expenditures for equipment purchases
during 1~80-81 is significantly lower than 1979-80, this is specifically
attributable to purchasing requirements and specifications relating to
the acquisition of such items as a new fire truck costing $132,000 and
12 police patrol vehicles costing $90,000. The expenditure lag associated
with capital equipment acquisition will adjust itself during the
balance of fiscal year 1980-81.
-8-
Pobl le s~rcty
FIGURE F
~'!tt.qr_cm}~.::P,
~AATrn~ [XPl~OITO~[S -~ ,o·.rns
FISCi\t M•SI
m
21t
16&
l3t
rarh i ft•cr .. tlon
Llbr~ry
&\
7t
.1
., _.,_
$11, 5 Hll 1101
Figure F provides an analysis of the distribution of General Fund
expenses between major functional categories. Public safety continues
to be the major operation performed Ly the City with 35% of all
expenditures. This includes the police, fire, and building departments.
Other Funds
The level of expc:mditures in the other f,unds comprlsl.ng the Cities'
financial operations appear to be generally within their 1980-81
budgeted appropriations after six months of operations. However, the
following maintenance and operation expenditure items are currently
significantly beyond their appropriation limitations as of 12-31-80.
Special Analysis
Petroleum Products: Of a total 1980-81 budget of $126,908, $85,000, or
o7%, has been expended during the first six months. This expenditure
rate would result in an additional aoll'rouriation of $43,000 being
required to fund the balance of 1980-81 patrolet1m product purchases.
-9-
Utility Expenses: Total 1980-81 appropriations in all funds for
utility expenditures amounted to $448,787. At ~~e close of six months
operations, $270,000, or 55% had been expended. Applying the projected
13% utility rate increase as of 1-1-81 to the balance of the fiscal
year projected expenditures,additional appropriations of $86,000 will
be required to fund the utility expenses of the City during 1980-81.
Communications Er,enses: Approprilations £or 1980-81 communication
expense total $6 ,834. $38,939, or 60%, had been expended during the
first six months. However, only 5 months of communications expenses were
r~flected in the six month expenditure totels. Projections of the
remaining expenditures of 1980-81 indicat~ that coilllllunications expenses
for 1980-81 will amount to approximately $93,500 requiring additional
appropriations of $28,666 to cover these projected expenditures.
Summary -Operating Expenditures
General Fund operating ex~enditures totalled $4.5 Million, or
41% of total year appropriations, at the ~nd of the second quarter of
fiscal 1980-81. This level of operating expenditures was significantly
lower than the pace generated in 1979-80, when 48% of the total year
appropriations had been expended at the end of the second quarter. The
level of 1980-81 operating expenditures suggests that the City will
realize a 6% salary savings of $375,000. Expenditure lags in maintenance
and op~rations have been accounted for and we should anticipate increased
level of maintenance and operating expenses during the balance of the
fiscal year 80-81. With the exception of petroleum products, utility and
communications expenses, the amounts appropriated should be sufficient
to cover all operating expenditures during fiscal 80-81.
-10-
1981-82 BUDGET PREVIEW.
The City's budget position for 1981-82 is very uncertain due to
fluctuating economic conditions and unclear direction from the State
level. Fiscal 1981-82 will continue to be a very difficult year for
budgetary decisio; markers. The brief preview 0£ 1981-82 included
in this report should help establish some basic ground rules for
preparing the budget for 1981-82.
Ending Balances 1980-81.
Based on the mid-year report, the City can expect to have a small
surplus of funds by the end of 1980-81, The General Fund and other
operating funds will have only minor carry-over balances. The capital
funds such as the sewer construction fund, public facilities fund,
and park-in-lieu fund should have larger than estimated ending balances.
The chart below gives a summary of the June 30, 1981, position.
TABLE I
YEAR-END BALANCES
JUNE 30, 1981' BUDGET POSITION
(Million Dollars)
Ftmd
General 2
Gas Tax
Sanitation
Sewer Constvuction
Revenue Sharing
Public Facilities Fee
Park-In-Lieu
Grants
Water
Other
TOTAL
Original
1980-81
Budget
$1.7
(0. 2)
o. 7
0.1
1Assuming all capital project funds
continued into 1981-82.
Revised
Estimate1 12-30-80
$2.1
0.2
0.7
0.5
0.2
1.6
_Q_d_
$5.5
~ppropriated
Revised Estimate
over (under)
Original Budget
$0.4
0.4
0.5
0.1
$1.4
during 1980-81 will
2 rncludes General Operating and Capital Reserves. These funds can be
allocated by Council to capital projects or operating needs,
-11-
be
,,
'.
'
REVENUES 1981-82
The City's revenue position for 1981-82 is very uncertain. The primary
problem in predicting next year's revenue lies with the State and its
control over the bailout assistance program instituted after Proposition
13, and the amount due the City under various State subventions. The
State has indicated that if its budget shortfall is sufficiently large,
the bailout assistance and various subventions will disappear. This
action could result in a $1.5 million revenue loss for Carlsbad.
Revenues for different City funds must be estimated in different ways.
For example, the General Fund revenue can be approximated by using a
per capita calculation, where sewer construction revenue must be
estimated on the basis of the number of Equivalent Dwelling Units (EDU's)
to be sold during 1981-82. Table II gives a broad ,icture of how
revenues could be received.
Fund
General
Gas Tax
Sanitation
Sewer Construction
Revenue Sharing
Public Facilities
Fee
Park-In-Lieu
Grants
Water
Other
TOTAL
TABLE II
REVENUE ESTIMA'!:ES 1981-82
(Million Dollars)
1980-81 1981-82 1981-82
Estimated Estimated Estimated
Revenue Revenue Revenue
Less State
Subventions
$10.8 $12.8 $11.6
0.3 0.3 0.3
0.5 0.6 0.6
1.1 1.0 1.0
0.5 0.5 0.5
0.6 2.8 2.8
0,2 0.2 0.2
0,8 0.8 0.8
1.8 2.0 2.0
0.4 0.4 0.4
$17.0 $2,1,4 $20.2
Comments
Based on 1981-82
population of
38,900
Based on past three
years revenue history
Based on fee for
service. Increase may
be needed in 81-82.
1000 EDU @$1,000 ea.
(per Engineering)
Current entitlement
of $110,000 per
quarter plus interest
Estimated used in CIP
Will be adjusted wHh
new Sedway-Cooke rpt.
Based on current
development activity.
Support of HUD/HCD
programs
No rate increase,
current.service level
Bond pmts, street
lighting revenue
must support expenses
If the State decides to recoup its budget losses by reducing bailout
funds or subventions, the General Fund stands to lose as much as
?1.5 million (see Table III).
Although it is unlikely that the State will remove all subventions, a
sizeable reduction should be anticipated. Losses in the $700,000 to
$1.2 million range should be expected. The third column on Table II
reflects a reduction of $1.2 million in General Fund due to loss of
State bailout and subventions.
TABLE III
MAJOR STATE SUBVENTIONS
1981-82 BUDGET
State Bailout Assistance
Motor Vehicle in Lieu Fees
Alcohol Beverage License Fees
Cigarette Tax
Expenditures 1981-82
$715,000
600,000
20,000
155,000
$1,490,000
The expenditure level for 1981-82 will be dependant upon the City's
revenue picture. Since the operating funds have little or no reserves
to carry them into 1981-82, all operstions should be covered by current
revenue generated during the year.
General Fund
The current revenue estimate for operating funds will allow the City to
maintain current services, but will make it difficult to enter into any
new programs. The estimated revenue in the General Fund of $12.8 million
is 18% above the current year's revenue of $10.8 million. If expenditures
of $12.8 million are budgeted fo~ 1981-82, a reserve of about $400,000
(or about 3%) will remain at year's end.
The 1980-81 estimated general fund expenditures of $11.1 million can
increase by $1.7 million, or about 15.3% to $12.8 million in 1981-82.
Assuming an inflation rate of 12% for 1981-82, about $1.3 million of
these available funds will be eaten up by general cost increases. This
leaves about $400,000 for development of new programs (see Figure G,,on
the next page).
-13-
-r
FIGURE G
.. ""l'lC\1·~, l_ fund
...!l!'.d-!!tU'..<!\ill.£!L
~t:!£
[:]
' 1930-81
(Estlrotcd
Expend I tun•s)
$12,8
S0,4
• Growth __
$1.3
Inflation
1981-82
(llo Revenue
reductions)
1981-82
(Less $1.2 llil,
in Slate subventions)
If the State pulls $1.2 million away from City revenues, the picture is
totally different. The City will only have $11.6 million av~ilable in
current revenue.
Using a bala~ced budget approach, the City would only be able to spend
$11.6 million Olf $500,000 more than will be spent in 1980-81. Just to
keep up with inflation, the Operating Bud$et would have to increase by
$1.3 million. Limiting departments to a ~500,000 increase from 1980-81
to 1981-82 would mean some reductions in service or economies in other
areas would have to be developed.
OTHER OPERATING FUNDS
Many City funds are dependant upon fees or assessments to provide their
operating revenue. In each case, the City must set charges, fees or
rates every few years to keep up with service requirements or inflation.
During 1981-82, most funds will be able to set new a~~essments or exist
upon established rate structures.
The Sanitation Fund should be watched closely. Figure Hon the next
page shows the current history for the Sanitation Fund. By the end of
1980-81, this fund will have little or no reserves to fall back upon
during 1981-82. Unless a significant number of sewer connections are
added during 1981-82, this fund may be in a deficit position by year
end. A rate study is called for during the reamining part of 1980-81
to ensure a satisfactory budget position for this fund.
-14-
,-:
I 'O M"
" :l:
" 0 "" ,~
~ N" .,,
FIGURE H
g_l)_i_latlon f11nd
Revenues ~ncl r,pcnd i t11r_£~
79-70 lo 81-82
"•-.. Ending rund Oalancc ......
79-80
..... ....... ·,.
80-81
..
81-82
The water fu.~d remains in good position for 1981-82. No special
concern is necessary for the fiscal position of this fund.
CAPITAL FUNDS
The City's capital funds are in a good position for the end of 1980-81.
The second quarter report indicates higher than anticipated revenues in
the sewer construction, Park-in-Lieu and public facilities funds. These
positions will benefit from the carry-over balances for 1981-82.
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