CITY OF LIVERMORE
CALIFORNIA
Two- Year Financial Plan
FY 2006- 2007 and FY 2007- 2008
Livermore City Council
Dr. Marshall H. Kamena, Mayor
Marjorie Leider, Vice Mayor
Lorraine Dietrich, Councilmember
John Marchand, Councilmember
Tom Reitter, Councilmember
The Government Finance Officers Association of the United States and Canada ( GFOA)
presented a Distinguished Budget Presentation Award to City of Livermore, California for its
biennial budget for the biennium beginning July 1, 2004. In order to receive this award, a
governmental unit must publish a budget document that meets program criteria as a policy
document, as an operations guide, as a financial plan, and as a communications device. This
award is valid for a period of two years only.
CITY OF LIVERMORE, CALIFORNIA
Table of Contents
Page
Section ( 1)
Transmittal Letter
Staff Report for Adoption of Budget and Resolutions Dated June 26, 2006......................... ( 1)- 5 to ( 1)- 10
Transmittal Letter to Mayor and Members of the City Council Dated June 12, 2006 .......... ( 1)- 11 to ( 1)- 25
Appendix A to Transmittal Letter- Overview of the Public Works
Enterprise and Internal Service Funds .............................................................................. ( 1)- 27 to ( 1)- 36
Long Term Financial Plan
Appendix B – Long Term Financial Plan FY 2006- 2011...................................................... ( 1)- 37 to ( 1)- 54
Revenues
Summary of Revenues ............................................................................................................................ 1- 9
Revenue Descriptions, History, and Assumptions of Key Sources..................................................... 10- 24
Includes Property Tax, ERAF, Population and CPI, Sales Tax, Franchise Fees, Other Taxes, and VLF
Expenditures
Expenditure Summary- General Fund by Function............................................................................. 25- 28
Expenditure Summary- All Funds by Function .................................................................................... 29- 35
Expenditure Summary- All Funds by Category ( Including Pie Charts) ............................................... 36- 46
Fund Balances- All Funds
Available Funds, Uses of Funds, and Fund Balances- FY 2005- 2006 ................................................ 47- 53
Available Funds, Uses of Funds, and Fund Balances- FY 2006- 2007 ................................................ 54- 60
Available Funds, Uses of Funds, and Fund Balances- FY 2007- 2008 ................................................ 61- 66
Capital Improvement Projects
Transmittal Letter ............................................................................................................................... 67- 74
Capital Improvement Program Budget Requests by Fund.................................................................. 75- 98
Capital Improvement Program Budget Requests by Program .......................................................... 99- 118
Staff Allocations
Organization Chart ............................................................................................................................... . 119
Personnel Allocations by Department ............................................................................................. 120- 124
Table of Contents- Continued
1- 2
Department and Division Budget Summaries
City Council ............................................................................................................................... ..... 125- 127
Livermore’s Promise ................................................................................................................... 128- 130
City Manager ............................................................................................................................... ... 131- 134
Comcast Grant/ Community TV ................................................................................................... 135- 137
Information Technology............................................................................................................... 138- 140
City Attorney ............................................................................................................................... .... 141- 143
Risk Management ....................................................................................................................... 144- 145
Workers Compensation............................................................................................................... 146- 148
City Clerk ............................................................................................................................... ......... 149- 154
Reprographics.................................................................................................................. .......... 155- 158
Community Development ................................................................................................................ 159- 162
Housing and Human Services .................................................................................................... 163- 169
Multi- Service Center ............................................................................................................. 170- 171
All Housing Funds except the General Fund........................................................................ 172- 173
LARPD.......................................................................................................................... ..................... 174
Engineering ............................................................................................................................... . 175- 187
Landscape Maintenance District .................................................................................................. 188
Planning ............................................................................................................................... ...... 189- 198
Building ............................................................................................................................... ...... 199- 208
Economic Development................................................................................................................... 209- 224
Finance Department ........................................................................................................................ 225- 240
General Services....................................................................................................................... . 241- 248
Fire Department..................................................................................................................... ......... 249- 276
Human Resources...................................................................................................................... .... 277- 280
Library ............................................................................................................................... ............. 281- 293
Library Grant ............................................................................................................................... ....... 294
Police Department ........................................................................................................................... 295- 324
Horizons ............................................................................................................................... ...... 325- 331
Police Grants......................................................................................................................... ..... 332- 334
Public Works.......................................................................................................................... ......... 335- 342
Parks and Trees.......................................................................................................................... 343- 357
Street Lighting ............................................................................................................................. 358- 360
Maintenance Services/ Streets .................................................................................................... 361- 369
Fleet & Equipment Services........................................................................................................ 370- 372
Facilities Rehabilitation Projects ( FRP)....................................................................................... 373- 380
Las Positas Golf Course ............................................................................................................. 381- 390
Springtown Golf Course.............................................................................................................. 391- 396
Airport........................................................................................................................ ................. 397- 411
Water Resources ........................................................................................................................ 412- 426
Table of Contents- Continued
1- 3
Stormwater Users ....................................................................................................................... 427- 431
LAVWMA......................................................................................................................... ........... 432- 434
Water Service........................................................................................................................ ..... 435- 446
Solid Waste ............................................................................................................................... . 447- 466
Redevelopment Agency Financial Plan
Transmittal Letter dated June 12, 2006 .......................................................................................... 467- 470
Redevelopment Agency Fund 580 .................................................................................................. 471- 475
RDA 20% Low Moderate Housing Fund 581 .................................................................................. 476- 477
RDA Debt Service Fund 584 ................................................................................................................... 478
Redevelopment Summary of Revenues.................................................................................................. 479
Property Tax Increment/ Eraf Losses....................................................................................................... 480
Available Funds, Uses of Funds, and Fund Balances All Years ............................................................. 481
CIP Summary for RDA Projects .............................................................................................................. 482
RDA History of Loans from General Fund............................................................................................... 483
Glossary of Redevelopment Terms................................................................................................. 484- 486
Budget Description of Funds, Policies and Glossary
Budget Policies....................................................................................................................... ........ 487- 491
Description of Fund Types and Funds ............................................................................................ 492- 499
Local Government Glossary and Acronyms.................................................................................... 500- 506
1- 4
Community Profile
Incorporated April 1, 1876
Form of Government Council- Manager
Population 81,443 as of January 1, 2006
( Source: California Dept. of Finance)
Area 24.71 Square Miles as of June 2006
( Source: Livermore Engineering Div.)
Climate Annual Mean Temperature 59 Degrees
Winter/ Summer Mean Temperature 37/ 88 Degrees
Annual Rainfall 14.4 Inches
Community Facilities Parks and Open Space 45
Municipal Golf Courses 2
Libraries/ Branches 3
Fire Stations ( ISO Class 3) 5
Municipal Airport 1
Education K- 12 Schools 21
ADA as of June 30, 2005 13,968
( Source: Livermore Valley Joint Unified School District)
Community College 1
Household Information Median Income as of 2000 $ 75,800
( Source: Livermore Chamber of Commerce)
Housing Units as of Jan. 1, 2006 28,877
( Source: State Depart. of Finance Demographic Research Unit)
Median Home Price as of Jan. 2006 $ 645,000
( Source: Bay East Association of Realtors)
2005- 2006 Tax Rate 1.1166%
( Source: Alameda County Auditor- Controller)
Community Events Livermore Wine Country Festival May 6- 7, 2006
Weekly Farmer’s Market May- October
Livermore Rodeo and Parade June 10- 11, 2006
Fireworks and Picnic 4th of July
Harvest Wine Celebration September 3- 4, 2006
Downtown Trick or Treat October 26, 2006
Holiday Parade & Tree Lighting December 2, 2006
CITY COUNCIL AGENDA REPORT
1- 5
MEETING DATE:
June 26, 2006
AGENDA ITEM:
TO: Honorable Mayor and City Council Members
FROM: Monica T. Potter, Director of Finance
SUBJECT: Resolutions Approving Two- Year Financial Plan for FY 2006/ 07 and FY 2007/ 08
and Adjusting Appropriations for FY 2005/ 06 for Operating Budget, Capital
Improvement Plan, and Redevelopment Agency
RECOMMENDED ACTION
It is recommended that the City Council/ Redevelopment Agency adopt 3 separate resolutions
approving the two- year financial plan for FY 2006/ 07 and FY 2007/ 08 and adjusting
appropriations for FY 2005/ 06.
SUMMARY
The preliminary City of Livermore two- year financial plan was presented to the City Council at the
budget workshop on June 12, 2006. Table 1 below summarizes the total of City, Agency, and
Capital Improvement Program budget resolutions being presented to the City Council this
evening.
Table 1 All Funds Budget Requests for FY 2005/ 06, FY 2006/ 07 and FY 2007/ 08
FY 2005/ 06
Revised FY 2006/ 07 FY 2007/ 08
FY 2006/ 2008
Two- Year Total
General Fund Operating Budget $ 71,779,980 $ 75,912,250 $ 80,628,210 $ 156,540,460
All Other Funds Operating Budget $ 51,626,020 $ 49,692,990 $ 47,744,000 $ 97,436,990
Subtotal City Operating Budgets $ 123,406,000 $ 125,605,240 $ 128,372,210 $ 253,977,450
Redevelopment Agency Budget $ 4,425,770 $ 4,960,010 $ 5,004,580 $ 9,964,590
Capital Improvement Program $ 46,115,530 $ 92,232,880 $ 62,250,800 $ 154,483,680
Total of Appropriations $ 173,947,300 $ 222,798,130 $ 195,627,590 $ 418,425,720
1- 6
2005/ 06, known timing adjustments of capital improvement projects and certain minor data entry
errors in the preliminary version. A recap of the changes appears below:
Table 2 Summary of Adjustments to Preliminary Budget Request
FY 2005/ 06
Revised FY 2006/ 07 FY 2007/ 08
FY 2006/ 2008 2-
Year Total
Preliminary Total Financial Plan- All Funds $ 173,246,310 $ 222,685,270 $ 195,655,730 $ 418,341,000
Adjustments by Fund Type:
General Fund- Miscellaneous $ 0 -$ 97,140 -$ 8,140
Water Resources- Emergency Sludge Reso. $ 285,000 $ 0 $ 0
Grant Funds- Various -$ 97,400 -$ 20,000 -$ 20,000
Capital Improvement Program- Various $ 513,390 $ 230,000 $ 0
Total of Adjustments $ 700,990 $ 112,860 -$ 28,140 $ 84,720
Final Total Appropriations By Year $ 173,947,300 $ 222,798,130 $ 195,627,590 $ 418,425,720
ATTACHMENTS
1. Resolution Approving City of Livermore Two- Year Financial Plan for FY 2006/ 07 and FY
2007/ 08 and Adjusting Appropriations for FY 2005/ 06
2. Resolution Approving City of Livermore Capital Improvement Plan for FY 2006/ 07 and FY
2007/ 08 and Adjusting Appropriations for FY 2005/ 06
3. Resolution Approving Redevelopment Agency Two- Year Financial Plan for FY 2006/ 07 and FY
2007/ 08 and Adjusting Appropriations for FY 2005/ 06
Prepared by: Approved by:
____________________ __________________
Monica T. Potter Linda Barton
Director of Finance City Manager
RESOLUTION NO. ______
1- 7
IN THE CITY COUNCIL OF THE CITY OF LIVERMORE
STATE OF CALIFORNIA
A RESOLUTION APPROVING THE TWO- YEAR FINANCIAL PLAN
FOR FY 2006/ 07 AND FY 2007/ 08
AND ADJUSTING APPROPRIATIONS FOR FY 2005/ 06
The City Manager has prepared and submitted to the City Council for its review the Two- Year
Financial Plan for FY 2006- 07 and FY 2007/ 08.
The City Council has provided for public comment on the Two- Year Financial Plan.
The City Council wishes to adopt the budget and order a copy of it filed with the City Clerk and
the Director of Finance of the City of Livermore.
Now, therefore, be it resolved by the Livermore City Council that the Two- Year Financial Plan
for FY 2006/ 06 and FY 2007/ 08 is approved and appropriates funds in the amount of
$ 253,977,450. Previous appropriations for FY 2005/ 06 are adjusted to reflect a total of
$ 123,406,000.
A copy of the City of Livermore Two- Year Financial Plan with a certified copy of this resolution
attached, is hereby filed in the Office of the City Clerk and the Director of Finance of the City of
Livermore.
On motion of Councilmember __________________________, seconded by
Councilmember __________________, the foregoing Resolution was passed and adopted this
__ 26th__ day of _ June__ 2006, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST: APPROVED AS TO FORM:
____________________________ _________________________
CITY CLERK CITY ATTORNEY
RESOLUTION NO. ______
1- 8
IN THE CITY COUNCIL OF THE CITY OF LIVERMORE
STATE OF CALIFORNIA
A RESOLUTION APPROVING THE TWO- YEAR CAPITAL IMPROVEMENT PLAN
FOR FY 2006/ 07 AND FY 2007/ 08
AND ADJUSTING APPROPRIATIONS FOR FY 2005/ 06
The Planning Commission reviewed the FY 2006/ 07 and FY 2007/ 08 Capital
Improvement Program Budget and found that it conforms to the City’s General Plan.
The City Council has reviewed the recommendations of the Planning Commission dated
June 20, 2006 and the associated staff report.
The City Council agrees with the recommendations regarding General Plan consistency
as contained in the Planning Commission Resolution and the staff report, adopts the same by
reference, and finds the Capital Improvement Program budget to be consistent with the City’s
General Plan.
Now, therefore, the City Council of the City of Livermore finds and resolves that the FY
2006/ 07 and FY 2007/ 08 Capital Improvement Program Budget is approved and appropriates
funds in the amount of $ 154,483,680. Previous appropriations for FY 2005/ 06 are adjusted to
reflect a total of $ 46,115,530.
On motion of Councilmember __________________________, seconded by
Councilmember __________________, the foregoing Resolution was passed and adopted this
__ 26th__ day of _ June__ 2006, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST: APPROVED AS TO FORM:
____________________________ _________________________
CITY CLERK CITY ATTORNEY
1- 9
IN THE REDEVELOPMENT AGENCY OF THE CITY OF LIVERMORE
STATE OF CALIFORNIA
A RESOLUTION APPROVING THE CITY OF LIVERMORE REDEVELOPMENT AGENCY
TWO- YEAR FINANCIAL PLAN FOR FY 2006/ 07 AND FY 2007/ 08
AND ADJUSTING APPROPRIATIONS FOR FY 2005/ 06
The Executive Director has prepared and submitted to the Redevelopment Agency for its review the
Two- Year Financial Plan for FY 2006/ 07 and FY 2007/ 08.
The Redevelopment Agency has provided for public comment on the Two- Year Financial Plan.
The Redevelopment Agency wishes to adopt the budget and order a copy of it filed with the City Clerk
and the Director of Finance of the City of Livermore.
Now, therefore, be it resolved by the Redevelopment Agency of the City of Livermore that the Two-
Year Financial Plan for FY 2006/ 07 and FY 2007/ 08 is approved and appropriates funds in the amount of
$ 9,964,590. Previous appropriations for FY 2005/ 06 are adjusted to reflect a total of $ 4,425,770.
A copy of the City of Livermore Redevelopment Agency Two- Year Financial Plan with a certified copy
of this resolution attached, is hereby filed in the Office of the City Clerk and the Director of Finance of the
City of Livermore.
APPROVED AS TO FORM:
GENERAL COUNSEL
On motion of Agency Member , seconded by Agency Member , the
foregoing Resolution was passed and adopted the 26th day of June , 2006, by the following vote:
AYES:
NOES:
ABSENT:
CHAIRPERSON, REDEVELOPMENT AGENCY
OF THE CITY OF LIVERMORE, CALIFORNIA
ATTEST:
SECRETARY
RESOLUTION NO.________
1- 10
June 12, 2006
1- 11
MEETING DATE:
June 12, 2006
AGENDA ITEM:
Honorable Mayor and City Council Members
Livermore, California
The recommended financial plan for FY 2006- 2008 is being presented to the City Council tonight for
review and consideration. The recommended budget incorporates Council direction resulting from the
budget strategic discussion held on May 8th. The results of the workshop this evening will be returned to
the City Council for final approval on June 26, 2006. At that time the City Council will consider a resolution
authorizing appropriations for both years of the city’s two- year financial plan, make adjustments to the
current fiscal year, and also approve separate resolutions for the Redevelopment Agency budget and
Capital Improvement Program.
EXECUTIVE SUMMARY AND FISCAL OVERVIEW
The Proposed FY 2006- 2008 Two Year Financial Plan ( budget) presents basically a “ hold the line”
spending plan that will continue municipal services at essentially their current service levels. City- wide
staffing levels remain the same as this year at 559.45 Full- Time Equivalents ( FTE), and that number has
remained largely unchanged since the FY 2003/ 04 budget. Although the state- wide economy has
improved significantly in the past year, the Bay Area economy continues to lag behind the State. Growth
in our local General Fund revenues during the last four years has averaged approximately 5% compared
to the historic rate of over 10% in the first years of the decade.
As discussed at the City Council meeting on May 8, 2006, the proposed budget anticipates an increase in
certain fire department inspection fees to the level recommended in the 2004 City- wide fee study. The
budget reflects a three year phase- in of these increases beginning in FY 2005/ 06 to eliminate the current
General Fund subsidy of these specialized services to certain businesses. Also anticipated in the
proposed budget is $ 125,000 per year from a franchise fee on vehicle towing operations. This item will
be brought forward for City Council consideration later this summer.
Two- Year Financial Plan Transmittal Letter
1- 12
he Proposed FY 2006- 2008 Budget also proposes to comply with the new Governmental Accounting
Standards Board ( GASB) regulation that requires all state and local governments in FY 2007/ 08 to begin
accounting for post- employment benefits such as retiree medical insurance payments on an actuarial
basis as opposed to a “ pay as you go” basis which is how virtually all governmental entities traditionally
have funded this liability in the past. In order to move ahead with two important public safety capital
projects, the Proposed FY 2006/ 08 budget advances $ 1.0M from reserves to begin the engineering and
design work for a new Public Safety radio system and the re- construction of Fire Station # 9. This
advance will be re- paid to the reserve account in 2008 as part of a debt financing issuance anticipated for
that year, and the Operating Reserve then will be at 17.8% which is on target to be at 18% in 2008. In
addition to this advance for the two Public Safety projects, the Proposed FY 2006- 2008 budget continues
the traditional $ 3.0M General Fund contribution over two years to the Capital Improvement Program. The
Proposed FY 2006- 2008 reflects the discontinuance of the third level of State take- aways for the
Educational Revenue Augmentation Fund ( ERAF lll) that had removed over $ 2.6M from Livermore’s local
revenues during FY 2004/ 05 and FY 2005/ 06. At this time no new State take- aways are anticipated in
the proposed budget.
The Proposed FY 2006- 2008 Budget also reflects the two- year priorities set by the City Council in March
by placing an emphasis on continued Downtown revitalization and Redevelopment Area projects
including the Livermore Valley Center Public Plaza, preparation of an El Charro Specific Plan, evaluation
of public facilities in the Springtown area, Public Safety communications system improvements, and both
local and regional transportation planning efforts including the Triangle Study and the Regional Rail Plan.
As indicated during the City Council’s Goal Setting session, a long range maintenance and rehabilitation
strategy for city facilities and infrastructure will be brought to Council for further consideration later this
year. A discussion of preservation of open space/ greenbelt areas in North Livermore including the
Doolan Canyon area is currently anticipated for a City Council meeting in July.
The Proposed FY 2006- 2008 budget also includes additional performance measurement information to
better establish the connection between the funds requested and the services provided to the community.
As indicated by the results from the two independently conducted Citizen Surveys in 2004 and 2006, the
citizens have a high regard for the services provided by the City and believe that Livermore is a great
place to live.
The body of this letter contains four major sections that give detailed information on the recommended
budget as follows:
Section I. Overview of All Funds Budgets FY 2005/ 06 and FY 2006- 2008
Section II. Overview of the General Fund Budget for FY 2005/ 06 and FY 2006- 2008
Section IIII. Impact of 2- Year Financial Plan on the Long Term Financial Plan
Two- Year Financial Plan Transmittal Letter
1- 13
Section IV. State Budget Impacts, Redevelopment Agency, and Capital Improvement Plan
In addition, Appendix A provides in depth information on the municipal enterprise funds and the internal
service funds. Appendix B is the narrative associated with the long term financial plan and is provided
under its own tab.
I. Overview of All Funds Budgets FY 2005/ 06 and FY 2006- 2008
The “ Overview of All Funds” in Section I contains four tables that provide a context for the detailed budget
discussion that follows in Section II. These tables show consolidated information on all of the operating
funds of the city and redevelopment agency as well as the capital improvement funds.
• Table 1 summarizes the changes in the current FY 2005/ 06 budget.
• Table 2 recaps the new 2- year budget request for FY 2006/ 07 and FY 2007/ 08.
• Table 3 indicates the revenue changes in the current FY 2005/ 06 budget.
• Table 4 recaps the revenues in the new 2- year budget for FY 2006/ 07 and FY 2007/ 08.
All Funds Expenditures
The table below indicates that the revised FY 2005/ 06 total of funds requested is $ 173.2 million, for a
reduction of $ 50.6 million from the approved budget. The major dollar change is a reduction of $ 52.3
million in the capital improvement program. These funds have been carried over to complete projects next
year in FY 2006/ 07. The second largest change occurred in the area of all other operating funds with an
increase of $ 3.0 million overall. This is mostly due to increases of more than $ 1.1 million in various
homebuyer assistance programs. A discussion of budget changes within the General Fund follows in
Section II.
Table 1. All Funds- Approved Budgets vs. Revised Request for FY 2005/ 06
FY 2005/ 06
Approved
FY 2005/ 06 Revised
Request Change % Change
General Fund Operating Budget $ 72,569,220 $ 71,779,980 -$ 789,240 - 1.1%
All Other Funds Operating Budget $ 48,438,600 $ 51,438,420 $ 2,999,820 6.2%
Subtotal City Operating Budgets $ 121,007,820 $ 123,218,400 $ 2,210,580 1.8%
Redevelopment Agency Budget $ 4,943,450 $ 4,425,770 -$ 517,680 - 10.5%
Capital Improvement Program $ 97,872,480 $ 45,602,140 -$ 52,270,340 - 53.4%
Total All Funds Budget $ 223,823,750 $ 173,246,310 -$ 50,577,440 - 22.6%
The table below recaps the new 2- year budget request for FY 2006/ 07 and FY 2007/ 08. The total budget
request for all funds is $ 222.7 million in FY 2006/ 07 and $ 195.7 million in FY 2007/ 08. The combined total
of appropriations for the 2- year period is $ 418.3 million.
Two- Year Financial Plan Transmittal Letter
1- 14
Table 2. All Funds- Budget Requests for FY 2006/ 07 and FY 2007/ 08
FY 2006/ 07
% Change vs.
Prior Year FY 2007/ 08
% Change vs.
Prior Year
FY 2006/ 2008 Two-
Year Total
General Fund Operating Budget $ 76,009,390 5.9% $ 80,636,350 6.1% $ 156,645,740
All Other Funds Operating Budget $ 49,712,990 - 3.4% $ 47,764,000 - 3.9% $ 97,476,990
Subtotal City Operating Budgets $ 125,722,380 2.0% $ 128,400,350 2.1% $ 254,122,730
Redevelopment Agency Budget $ 4,960,010 12.1% $ 5,004,580 0.9% $ 9,964,590
Capital Improvement Program $ 92,002,880 101.8% $ 62,250,800 - 32.3% $ 154,253,680
Total of Two- Year Financial Plan $ 222,685,270 28.5% $ 195,655,730 - 12.1% $ 418,341,000
All Funds Revenues
The table below indicates that the revised estimate of revenues is $ 159.8 million, for a reduction of $ 22.1
million from the original estimate. The major dollar change is a reduction of $ 24.3 million in the capital
improvement program. This is related to the carry over of projects to FY 2006/ 07. All other funds
operating revenues increased $ 4.5 million reflecting an inflow of grant and enterprise funds. A discussion
of revenue changes within the General Fund follows in Section II.
Table 3. All Funds Approved Revenues vs. Revised Revenue Estimates FY 2005/ 06
FY 2005/ 06
Approved
FY 2005/ 06 Revised
Request Change % Change
FY 2005/ 06
General Fund Operating Revenues $ 75,731,000 $ 75,158,000 -$ 573,000 - 0.8%
All Other Funds Operating Revenues $ 42,613,000 $ 47,088,000 $ 4,475,000 10.5%
Subtotal City Operating Budgets $ 118,344,000 $ 122,246,000 $ 3,902,000 3.3%
Redevelopment Agency Revenues $ 7,029,000 $ 5,408,720 -$ 1,620,280 - 23.1%
Capital Improvement Program $ 56,533,000 $ 32,183,908 -$ 24,349,092 - 43.1%
Total All Funds Budget $ 181,906,000 $ 159,838,628 -$ 22,067,372 - 12.1%
The table below indicates that the total of estimated revenues for all funds is $ 189.6 million in FY 2006/ 07
and $ 217.0 million in FY 2007/ 08. The total of revenues estimated for the 2- year period is $ 406.6 million.
Table 4. All Funds Revenue Estimates FY 2006/ 07 and FY 2007/ 08
FY 2006/ 07
% Change vs.
Prior Year FY 2007/ 08
% Change vs.
Prior Year
FY 2006/ 2008 Two-
Year Total
General Fund Operating Revenues $ 79,510,000 5.8% $ 83,574,000 5.1% $ 163,084,000
All Other Funds Operating Revenues $ 48,697,200 3.4% $ 47,047,200 - 3.4% $ 95,744,400
Subtotal City Operating Budgets $ 128,207,200 4.9% $ 130,621,200 1.9% $ 258,828,400
Redevelopment Agency Revenues $ 6,849,000 26.6% $ 5,710,000 - 16.6% $ 12,559,000
Capital Improvement Program $ 54,550,500 69.5% $ 80,675,750 47.9% $ 135,226,250
Total of Two- Year Revenues $ 189,606,700 18.6% $ 217,006,950 14.5% $ 406,613,650
Two- Year Financial Plan Transmittal Letter
1- 15
II. Overview of the General Fund Budget for FY 2005/ 06 and FY 2006- 2008
The “ Overview of the General Fund” in Section II contains six tables that provide in depth information
regarding the general fund budget request.
• Tables 5 and 6 summarize the general fund’s sources and uses of funds for FY 2005/ 06 and in
the new 2- year budget for FY 2006/ 07 and FY 2007/ 08.
• Tables 7 and 8 outlines the revenue changes for the current FY 2005/ 06 budget and the
revenues in the new 2- year budget for FY 2006/ 07 and FY 2007/ 08.
• Tables 9 and 10 indicate the expenditure changes by department/ division in the current FY
2005/ 06 budget and in the new 2- year budget for FY 2006/ 07 and FY 2007/ 08 .
This section is followed by Section III that shows in graph form how these budget results affect the
general fund’s long term financial capability.
General Fund Sources and Uses of Funds FY 2005/ 06 and FY 2006- 2008
The following two tables provide an overview of the proposed changes in the sources and uses of funds
for the General Fund in the current year’s budget for FY 2005/ 06 and the upcoming two- year financial
plan for FY 2006/ 07 and 2007/ 08.
Table 5. General Fund Sources and Uses of Funds Approved vs. Revised FY 2005/ 06
General Fund FY 2005/ 06
Approved Budget
FY 2005/ 06 Revised
Request
Budget
Changes % Change
Sources of Funds:
Operating Revenues $ 75,731,000 $ 75,158,000 -$ 573,000 - 0.8%
Transfers In $ 7,661,220 $ 8,320,820 $ 659,600 8.6%
From Reserves $ 225,000 $ 225,000 $ 0 0.0%
Total Sources $ 83,617,220 $ 83,703,820 $ 86,600 0.1%
Uses of Funds:
Operating Expenditures $ 72,569,220 $ 71,779,980 -$ 789,240 - 1.1%
Transfers Out $ 8,951,130 $ 9,225,410 $ 274,280 3.1%
Capital Improvement Program $ 1,755,300 $ 1,409,310 -$ 345,990 - 19.7%
To Reserves $ 852,000 $ 1,202,000 $ 350,000 41.1%
Total Uses of Funds $ 84,127,650 $ 83,616,700 -$ 510,950 - 0.6%
Net ( Uses) of Funds or Sources of Funds -$ 510,430 $ 87,120 $ 597,550
Beginning Unappropriated Fund Balance $ 1,680,996 $ 4,019,201 $ 2,338,205
Ending Fund Balance June 30, 2006 $ 1,170,566 $ 4,106,321 $ 2,935,755
The table above indicates that the estimated ending fund balance on June 30, 2006 will be $ 4.1 million.
This is $ 2.4 million more than previously estimated and is mostly attributable to the revision in the
beginning unappropriated fund balance of $ 2.3 million. The revision reflects the final operating results of
the prior year FY 2004/ 05. Operating revenues were adjusted downward by $ 573,000 and budget
reductions of $ 789,000 helped to offset the changes. The current year’s net sources and uses of funds
are almost exactly in balance as indicated by the positive source of funds of $ 87,000.
Two- Year Financial Plan Transmittal Letter
1- 16
Table 6. General Fund Sources and Uses of Funds FY 2006/ 07 and FY 2007/ 08
General Fund FY 2006/ 07 % Change vs.
Prior Year FY 2007/ 08 % Change vs.
Prior Year
FY 2006/ 2008
Two- Yr Total
Sources of Funds:
Operating Revenues $ 79,510,000 5.8% $ 83,574,000 5.1% $ 163,084,000
Transfers In $ 3,481,500 - 58.2% $ 3,473,500 - 0.2% $ 6,955,000
From Reserves $ 575,000 155.6% $ 451,000 - 21.6% $ 1,026,000
Total Sources $ 83,566,500 - 0.2% $ 87,498,500 4.7% $ 171,065,000
Uses of Funds:
Operating Expenditures $ 76,009,390 5.9% $ 80,636,350 6.1% $ 156,645,740
Transfers Out $ 4,717,140 - 48.9% $ 4,697,280 - 0.4% $ 9,414,420
Capital Improvement Program $ 3,530,000 150.5% $ 700,000 - 80.2% $ 4,230,000
To Reserves $ 1,052,000 - 12.5% $ 1,478,000 40.5% $ 2,530,000
Total Uses of Funds $ 85,308,530 2.0% $ 87,511,630 2.6% $ 172,820,160
Net ( Uses) of Funds or Sources of Funds -$ 1,742,030 -$ 13,130 -$ 1,755,160
Beginning Unappropriated Fund Balance $ 4,106,321 2.2% $ 2,364,291 $ 4,106,321
Ending Fund Balance June 30, 2007 & 2008 $ 2,364,291 - 42.4% $ 2,351,161 $ 2,351,161
The table above indicates that the estimated ending fund balance on June 30, 2007 will be $ 2.4 million.
FY 2006/ 07 shows a net use of funds of $ 1.7 million. The estimated ending fund balance on June 30,
2008 will remain at $ 2.4 million because in FY 2007/ 08 net sources and uses of funds are essentially in
balance as shown by the small net use of funds of $ 13,000. To illustrate the trend, Table 6a below shows
5 years of fund balance levels.
Table 6a. Summary of General Fund Reserves and Fund Balances
General Fund FY 2003/ 04 FY 2004/ 05 FY 2005/ 06 FY 2006/ 07 FY 2007/ 08
Summary of Fund Balances ( Millions) ( Millions) ( Millions) ( Millions) ( Millions)
Loans/ Advances to Redevelopment $ 8.7 $ 8.7 $ 3.9 $ 3.9 $ 3.9
Loans/ Advance to Downtown Impr. Fund $ 0.0 $ 0.0 $ 4.8 $ 4.8 $ 4.8
Operating & Economic Uncertainty $ 19.9 $ 20.6 $ 21.2 $ 21.4 $ 22.2
Subtotal All Other Reserves $ 28.6 $ 29.3 $ 29.9 $ 30.1 $ 30.9
Unappropriated Ending Fund Balance $ 5.5 $ 4.0 $ 4.1 $ 2.4 $ 2.4
Total of All Fund Balances $ 34.1 $ 33.3 $ 34.0 $ 32.5 $ 33.3
The preceding table shows that general fund reserves and fund balances will remain approximately the
same during the 5 fiscal years listed. The operating reserve and economic uncertainty reserve will
increase from $ 19.9 million to $ 22.2 million. The change in the unappropriated ending fund balance
primarily reflects 2 years of ERAF III takeaways totaling $ 2,675,394 by the State. Maintaining the $ 2.4
million level reflects efforts in the last 2 years to restore balance to general fund operations by limiting
growth of expenditures and improving cost recovery of fee based revenues. Further details about these
efforts and new costs in the budget are provided below.
Two- Year Financial Plan Transmittal Letter
1- 17
General Fund Revenues FY 2005/ 06 and FY 2006- 2008
The following two tables provide an overview of the proposed changes in the estimated sources of funds
for the General Fund in the current year’s budget for FY 2005/ 06 and also estimates for the upcoming
two- year financial plan for FY 2006/ 07 and FY 2007/ 08. Sources of funds includes revenues, transfers in
from other funds and transfers to operations from reserves.
Table 7. General Fund By Major Revenue Category For Original vs. Revised FY 2005/ 06
General Fund Category
FY 2005/ 06 Original
Revenues
FY 2005/ 06 Revised
Request
Amount of
Change % Change
Property Taxes $ 19,605,000 $ 19,605,000 $ 0 0.0%
Sales Taxes $ 20,276,000 $ 19,452,000 ($ 824,000) - 4.1%
Use of Money & Property $ 3,876,000 $ 3,527,000 ($ 349,000) - 9.0%
Other Taxes $ 10,080,000 $ 10,324,000 $ 244,000 2.4%
Permits and Fees for Service
Licenses & Permits $ 2,971,000 $ 2,730,000 ($ 241,000) - 8.1%
Charges for Current Svcs $ 8,539,000 $ 8,680,000 $ 141,000 1.7%
Other Revenues $ 1,623,000 $ 1,389,000 ($ 234,000) - 14.4%
Total Permits and Fees $ 13,133,000 $ 12,799,000 ($ 334,000) - 2.5%
Intergovernmental Revenue
Intergovernmental $ 7,512,000 $ 8,306,000 $ 794,000 10.6%
Other In Lieu Taxes $ 471,000 $ 472,000 $ 1,000 0.2%
Fines & Forfeitures $ 778,000 $ 673,000 ($ 105,000) - 13.5%
Total Intergovernmental $ 8,761,000 $ 9,451,000 $ 690,000 7.9%
Total General Fund $ 75,731,000 $ 75,158,000 ($ 573,000) - 0.8%
Transfers In & Other Sources
Transfers In $ 7,661,220 $ 8,320,820 $ 659,600 8.6%
From Reserves $ 225,000 $ 225,000 $ 0 0.0%
Total Transfers & Reserves $ 7,886,220 $ 8,545,820 $ 659,600 8.4%
TOTAL SOURCES OF FUNDS $ 83,617,220 $ 83,703,820 $ 86,600 0.1%
The table above indicates that overall revenues will be lower than expected by $ 573,000. A major
reduction is in sales tax revenues. Livermore will experience a loss of $ 626,367 in its FY 2005/ 06 Sales
and Use Tax Compensation Fund ( SUTCF) because cities were overpaid in FY 2004/ 05. According to the
State Department of Finance ( DOF), cities were due 10 ½ months in the SUTCF but the State Board of
Equalization ( SBOE) only sent DOF 9 months of actual collections in FY 2004/ 05. An additional
downward adjustment of $ 198,000 reflects lower tax collections overall. The overall sales tax increase in
FY 2005/ 06 will be 2.6%. However this impact has been offset a large adjustment in the Vehicle License
Fee Compensation fund of $ 798,870. This is shown in the Intergovernmental category above.
The Licenses and Permits category is also lower than originally estimated by $ 241,000, reflecting lower
Permit Center receipts. The revenue estimate includes the anticipated billing of Fire Inspection and
Hazardous Permits at the revised FY 2005/ 06 level as recommended at the May 8, 2006 budget
discussion. Without this adjustment the loss would have been an additional $ 300,000.
Two- Year Financial Plan Transmittal Letter
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Table 8. General Fund Revenues By Major Revenue Category For FY 2006/ 07 and FY 2007/ 08
General Fund Category FY 2006/ 07
% Change vs.
Prior Year FY 2007/ 08
% Change vs.
Prior Year
FY 2006/ 2008 Two-
Year Total
Property Taxes ( See Note 1 & 2) $ 22,911,000 16.9% $ 24,744,000 8.0% $ 47,655,000
Sales Taxes ( See Note 3 & 4) $ 21,493,000 10.5% $ 22,783,000 6.0% $ 44,276,000
Use of Money & Property $ 3,713,000 5.3% $ 3,939,000 6.1% $ 7,652,000
Other Taxes $ 10,747,000 4.1% $ 11,197,000 4.2% $ 21,944,000
Permits and Fees for Service
Licenses & Permits ( See Note 5) $ 2,906,000 6.4% $ 3,063,000 5.4% $ 5,969,000
Charges for Current Svcs $ 8,372,000 - 3.5% $ 8,302,000 - 0.8% $ 16,674,000
Other Revenues ( See Note 6) $ 878,000 - 36.8% $ 671,000 - 23.6% $ 1,549,000
Total Permits and Fees $ 12,156,000 - 5.0% $ 12,036,000 - 1.0% $ 24,192,000
Intergovernmental Revenue
Intergovt Revenue ( See Note 7) $ 7,289,000 - 12.2% $ 7,614,000 4.5% $ 14,903,000
Other In Lieu Taxes $ 495,000 4.9% $ 519,000 4.8% $ 1,014,000
Fines & Forfeitures $ 706,000 4.9% $ 742,000 5.1% $ 1,448,000
Total Intergovernmental $ 8,490,000 - 10.2% $ 8,875,000 4.5% $ 17,365,000
Total General Fund $ 79,510,000 5.8% $ 83,574,000 5.1% $ 163,084,000
Transfers In & Other Sources
Transfers In $ 3,481,500 - 58.2% $ 3,473,500 - 0.2% $ 6,955,000
From Reserves $ 575,000 155.6% $ 451,000 - 21.6% $ 1,026,000
Total Transfers & Reserves $ 4,056,500 - 52.5% $ 3,924,500 - 3.3% $ 7,981,000
TOTAL SOURCES OF FUNDS $ 83,566,500 - 0.2% $ 87,498,500 4.7% $ 171,065,000
Basis of Estimation of Major Revenues:
Note 1. Property Taxes- The base increase is 10% in FY 2006/ 07 and 8% in FY 2007/ 08. The historical
average is 10.1%.
Note 2. The apparent property tax increase of 16.9% in FY 2006/ 07 is due to ending of ERAF III
takeaway of $ 1,338,000 in FY 2005/ 06.
Note 3. Sales Taxes- The base increase is 6% in FY 2006/ 07 and 6% FY 2007/ 08. The historical average
is 10.9%.
Note 4. FY 2006/ 07 shows an apparent increase of 10.5% because the prior year was artificially reduced
by a State takeaway of $ 626,367 in FY 2005/ 06.
Note 5. Licenses and Permits- Includes billing of Fire Inspection and Hazardous Permits at the revised
level as recommended at the May 8, 2006 budget discussion.
Note 6. Other Revenues- The decline in FY2006/ 07 is due to one- time receipt of insurance settlement of
$ 750,000 in FY 2005/ 06.
Note 7. Intergovernmental Revenues- The apparent decline in FY 2006/ 07 is due to one- time receipt of
Vehicle License Fee ( VLF) Gap loan payment of $ 1.3 million in FY 2005/ 06.
Two- Year Financial Plan Transmittal Letter
1- 19
General Fund Expenditures For FY 2005/ 06 and FY 2006- 2008
The following two tables provide an overview of the proposed changes in the estimated uses of funds for
the General Fund in the current year’s budget for FY 2005/ 06 and also estimates for the upcoming two-year
financial plan for FY 2006/ 07 and FY 2007/ 08. Uses of funds includes expenditures, transfers out to
support other funds and transfers to reserves.
Table 9. General Fund Expenditures By Department/ Division Approved vs. Revised FY 2005/ 06
General Fund
Approved Budget FY
2005/ 06
Revised Request FY
2005/ 06 Amount of Change % Change
City Council ( See Note 1.) $ 275,270 $ 167,770 ($ 107,500) - 39.1%
City Manager ( See Note 1.) $ 901,990 $ 1,080,160 $ 178,170 19.8%
City Attorney $ 1,100,620 $ 1,107,890 $ 7,270 0.7%
City Clerk $ 907,850 $ 936,710 $ 28,860 3.2%
Finance $ 2,104,550 $ 1,926,490 ($ 178,060) - 8.5%
General Services ( See Note 2.) $ 4,124,340 $ 3,683,340 ($ 441,000) - 10.7%
Human Resources $ 1,285,160 $ 1,306,070 $ 20,910 1.6%
Public Safety- Police ( See Note 3.) $ 21,945,270 $ 22,331,500 $ 386,230 1.8%
Public Safety- Fire-( See Note 4.) $ 13,350,130 $ 13,173,850 ($ 176,280) - 1.3%
Public Works:
Public Works Administration $ 485,430 $ 493,470 $ 8,040 1.7%
Street Maintenance Svcs ( See Note 5.) $ 2,535,250 $ 2,223,840 ($ 311,410) - 12.3%
Parks and Trees ( See Note 6.) $ 3,920,050 $ 3,495,840 ($ 424,210) - 10.8%
Street Lighting $ 1,159,310 $ 1,125,800 ($ 33,510) - 2.9%
Subtotal Public Works $ 8,100,040 $ 7,338,950 ($ 761,090) - 9.4%
Community Development:
Community Development Admin. $ 623,570 $ 630,530 $ 6,960 1.1%
Housing & Human Services $ 734,920 $ 814,850 $ 79,930 10.9%
Building Inspection $ 2,910,160 $ 2,984,950 $ 74,790 2.6%
Engineering $ 6,200,870 $ 6,289,120 $ 88,250 1.4%
Planning $ 2,920,510 $ 2,885,610 ($ 34,900) - 1.2%
Subtotal CDD $ 13,390,030 $ 13,605,060 $ 215,030 1.6%
Economic Development $ 588,000 $ 586,490 ($ 1,510) - 0.3%
Library $ 4,495,970 $ 4,535,700 $ 39,730 0.9%
Total Operating Budget $ 72,569,220 $ 71,779,980 ($ 789,240) - 1.1%
Capital Improvement $ 1,755,300 $ 1,409,310 ($ 345,990) - 19.7%
Transfers Out $ 8,951,130 $ 9,225,410 $ 274,280 3.1%
To Reserves $ 852,000 $ 1,202,000 $ 350,000 41.1%
Total CIP and Other $ 11,558,430 $ 11,836,720 $ 278,290 2.4%
TOTAL GENERAL FUND $ 84,127,650 $ 83,616,700 ($ 510,950) - 0.6%
Notes Regarding Significant Changes In The Revised Request for FY 2005/ 06:
The total reduction in the general fund estimate of spending is 1.1% for a savings of $ 789,000 per the
table above. This is the result of specific efforts to reduce costs given the expected level of revenues.
Other notable changes are called out below:
Note 1: City Council/ City Manager- The change in these budgets is primarily due to transfer of support
staff from the City Council to the City Manager's Office.
Two- Year Financial Plan Transmittal Letter
1- 20
Note 2: General Services- The reduction reflects carry over of the Tri- Valley Community Television ( TVTC)
capital contribution of $ 250,000 to FY 2006/ 07.
Note 3: Police Safety- The increase is specific to increased costs of services and supplies in both the
Patrol and Communication Center program.
Note 4: Fire Safety ( LPFD)- The reduction of $ 176,000 is a preliminary estimate that may be changed
somewhat when the JPA board meets on May 30, 2006.
Note 5: Street Maintenance- The reduction of $ 311,000 is due to position vacancies and change in street
maintenance materials and supplies.
Note 6: Parks and Trees- The reduction of $ 424,000 is a reduction in contracted services and materials
and supplies.
Table 10. General Fund Expenditures By Department/ Division For FY 2006/ 07 and FY 2007/ 08
General Fund FY 2006/ 07 % Change vs.
Prior Year FY 2007/ 08 % Change vs.
Prior Year
FY 2006/ 2008 Two-
Year Total
City Council $ 167,580 - 0.1% $ 168,210 0.4% $ 335,790
City Manager ( See Note 1.) $ 1,085,420 0.5% $ 1,148,080 5.8% $ 2,233,500
City Attorney $ 1,137,860 2.7% $ 1,191,020 4.7% $ 2,328,880
City Clerk ( See Note 2.) $ 872,030 - 6.9% $ 1,041,900 19.5% $ 1,913,930
Finance ( See Note 3.) $ 2,210,420 14.7% $ 2,295,090 3.8% $ 4,505,510
General Services ( See Note 4.) $ 4,425,590 20.2% $ 6,843,950 54.6% $ 11,269,540
Human Resources $ 1,332,360 2.0% $ 1,392,210 4.5% $ 2,724,570
Public Safety- Police ( See Note 5.) $ 23,406,480 4.8% $ 23,978,880 2.4% $ 47,385,360
Public Safety- Fire ( See Note 6.) $ 14,043,410 6.6% $ 14,291,300 1.8% $ 28,334,710
Public Works:
Public Works Admin. $ 518,980 5.2% $ 543,880 4.8% $ 1,062,860
Street Maintenance Services $ 2,193,070 - 1.4% $ 2,297,260 4.8% $ 4,490,330
Parks and Trees $ 3,719,100 6.4% $ 3,927,560 5.6% $ 7,646,660
Street Lighting $ 1,117,750 - 0.7% $ 1,266,540 13.3% $ 2,384,290
Subtotal Public Works $ 7,548,900 2.9% $ 8,035,240 6.4% $ 15,584,140
Community Development:
Community Development ( See Note 7.) $ 474,600 - 24.7% $ 500,550 5.5% $ 975,150
Housing & Human Svcs ( See Note 7.) $ 1,142,120 40.2% $ 1,138,530 - 0.3% $ 2,280,650
Building Inspection $ 3,164,560 6.0% $ 3,190,880 0.8% $ 6,355,440
Engineering ( See Note 8.) $ 6,704,470 6.6% $ 7,001,650 4.4% $ 13,706,120
Planning $ 3,012,070 4.4% $ 3,131,270 4.0% $ 6,143,340
Subtotal CDD $ 14,497,820 6.6% $ 14,962,880 3.2% $ 29,460,700
Economic Development ( See Note 9.) $ 636,750 8.6% $ 482,710 - 24.2% $ 1,119,460
Library $ 4,644,770 2.4% $ 4,804,880 3.4% $ 9,449,650
Total Operating Budget $ 76,009,390 5.9% $ 80,636,350 6.1% $ 156,645,740
Capital Improvement ( See Note 10.) $ 3,530,000 150.5% $ 700,000 - 80.2% $ 4,230,000
Transfers Out $ 4,717,140 - 48.9% $ 4,697,280 - 0.4% $ 9,414,420
To Reserves $ 1,052,000 - 12.5% $ 1,478,000 40.5% $ 2,530,000
Total CIP and Other $ 9,299,140 - 21.4% $ 6,875,280 - 26.1% $ 16,174,420
TOTAL GENERAL FUND $ 85,308,530 2.0% $ 87,511,630 2.6% $ 172,820,160
Two- Year Financial Plan Transmittal Letter
1- 21
Notes Regarding Significant Changes In The Budget Request for FY 2006/ 07 and FY 2007/ 08:
The total increase in the general fund spending is 5.9% in FY 2006/ 07 and 6.1% in FY 2007/ 08. Certain
notable increases or decreases are called out below:
Note 1: City Manager- FY 2007/ 08 includes $ 18,000 for costs of the Citizen Survey.
Note 2: City Clerk- FY 2006/ 07 includes $ 50,000 for special election costs. FY 2007/ 08 contains $ 200,000
for the costs of the regular election.
Note 3: Finance- FY 2006/ 07 increase reflects filling of vacancies resulting from multiple retirements in the
previous year.
Note 4: General Services- FY 2006/ 07 includes the capital contribution for TVTC. FY 2007/ 08 includes the
general fund contribution of $ 3.0 million for retiree health costs.
Note 5: Police Safety- The budget includes costs of the downtown parking program totaling $ 156,500 for
both years. It also includes an estimated $ 100,000 in costs for the consulting services related to the RFP
for radio system and communications tower improvements.
Note 6: Fire Safety ( LPFD)- These are preliminary estimates that may be changed somewhat when the
JPA board meets on May 30, 2006. FY 2007/ 08 includes the fire contribution of $ 240,000 for retiree
health costs associated with Livermore fire personnel prior to consolidation on November 30, 1999.
Note 7: Community Development Administration- The reduction in FY 2006/ 07 represents a transfer of
personnel costs to Housing and Human Services and the reduction of 1.0 FTE.
Note 8: Community Development Engineering- The 2- year budget includes costs of the regional
transportation and transit plan totaling $ 550,000.
Note 9: Economic Development- In FY 2006/ 08 and FY 2007/ 08 costs of $ 125,000 have been eliminated
for the annual contribution to the Tri Valley Convention and Visitors Bureau ( TVCVB) because this is now
funded separately through a Business Improvement District.
Note 10: Capital Improvement- The two- year general fund contribution to the CIP is $ 4,230,000. This
consists of the base annual contribution of $ 1.5 million per year; an amount of $ 1.0 million to fund the
engineering and design costs of Fire Station No. 9 and the Police Radio Station/ Tower project; as well as
an amount of $ 230,000 for street maintenance that was re- budgeted from Transportation Congestion
Relief Funds ( TCRF).
Two- Year Financial Plan Transmittal Letter
1- 22
IIII. Impact of 2- Year Financial Plan- On Long Term Financial Plan
The Long Term Financial Plan model indicates that if the FY 2006- 2008 budget is adopted as proposed,
General Fund revenues and expenditures will be essentially in balance beginning in FY 2007/ 08. The
following years’ budgets will have a positive gain of projected revenues over expenditures as illustrated
below.
Chart 1 LTFP Forecast For 2006- 2011
General Fund Revenues vs. Expenditures
$ 50,000,000
$ 60,000,000
$ 70,000,000
$ 80,000,000
$ 90,000,000
$ 100,000,000
$ 110,000,000
2004
2005
2006
2007
2008
2009
2010
2011
REVENUES + TRANSFERS IN EXPENDITURES
IV. State Budget, Redevelopment and Capital Improvement Program
FY 2006/ 07 Proposed State Budget
On May 12, 2006 Governor Arnold Schwarzenegger released the traditional “ May revise” of the state
budget for FY 2006/ 07. The total state budget is $ 131.1 billion and is $ 13.8 billion higher than the current
fiscal year. The general fund portion of the budget is $ 101 billion and is up from $ 90 billion in the current
year. This year’s state budget has benefited from a massive tax windfall this year, first estimated in
January at $ 9.2 billion, revised later to $ 5 billion and then finally revised to $ 7.5 billion on May 12. The
windfall is primarily a result of increased revenue from stock gains, home sales, business profits and
taxes on rising gas prices.
Key points of the proposed spending plan are:
• Proposed addition of $ 2 billion into the state’s reserve fund.
• Directs an additional $ 2.8 billion to education over and above the amount proposed in January and
repays another $ 2.9 billion to schools over seven years to settle schools’ Prop 98 shortfall.
Two- Year Financial Plan Transmittal Letter
1- 23
• The budget contains no further local agency ERAF III contributions to the state per Prop 1A that was
approved in November 2004. ERAF I and II continue as before.
• The budget includes modest mandate reimbursements for local government also as agreed under
Prop 1A.
• Transportation funding under Prop 42 is fully in place. Livermore received $ 334,345 from this source
in FY 2005/ 06.
• Additional proposed payback of $ 920,000 in loans the state took from Prop 42 transportation funding
in FY 2003/ 04. This amount includes $ 254 million for local streets and road that is apportioned half for
cities and half for counties and is at approximately the same funding level as in the current year.
• An additional $ 142.2 million for public safety programs. This would increase funding for drug law
enforcement and reducing crime among at- risk youth. Funds have been allocated for booking fee
relief which could be delivered in the form of reimbursement or reduced charges.
• The budget proposes making accelerated payments on the Economic Recovery Bonds approved by
voters in March 2004 to balance the state’s FY 2004/ 05 budget. The bonds would be paid off a year
early in 2009 thus concluding the numerous “ triple flip” of sales tax arrangements early as well.
The governor is calling for a November 2006 election featuring a package of bond measures important to
his state Strategic Growth Plan. This would provide some benefits to local agencies as noted:
• Prop 1B would authorize $ 19.9 billion for highway safety, traffic reduction, air quality and port
security. Livermore would receive approximately $ 2,587,542 for roads allocated from the $ 1 billion
portion.
• Prop 1C would contain $ 2.85 billion in funding for affordable housing construction and infill incentives/
brownfield clean- up. Livermore could receive allocations from Cal- HOME, Cal Homebuyers Down
Payment Assistance ( CHDAP), Building Equity and Growth in Neighborhoods, or other.
In addition, the June 2006 election contains Prop 81, a $ 600 million statewide library bond that could
provide funding for the Springtown library. If the measure passes, funding would be awarded through a
competitive grant application program.
Two- Year Financial Plan Transmittal Letter
1- 24
Redevelopment Agency Budget
Details of the two- year financial plan and activities of the Agency are located in the “ Redevelopment
Agency” tab of this budget document. A summary of the recommended budget appears below:
Table 11. Redevelopment Budget FY 2005/ 06 and FY 2006- 2008
Redevelopment Agency FY 2005/ 06
Approved Budget
FY 2005/ 06
Revised Request
% Chg Budget Changes
Operating Expenditures $ 4,943,450 $ 4,425,770 - 10.5% -$ 517,680
Capital Improvement Program $ 6,115,000 $ 3,002,040 - 50.9% -$ 3,112,960
Totals $ 11,058,450 $ 7,427,810 -$ 3,630,640
Redevelopment Agency FY 2006/ 07 % Chg FY 2007/ 08 % Chg
FY 2006/ 2008 Two-
Year Total
Operating Expenditures $ 4,960,010 12.1% $ 5,004,580 0.9% $ 9,964,590
Capital Improvement Program $ 11,723,420 $ 700,000 $ 12,423,420
Totals $ 16,683,430 $ 5,704,580 $ 22,388,010
Capital Improvement Program
As noted in the overview summary, the total of capital improvement appropriations for the new 2- year
financial plan is $ 154.3 million. The complete details relating to these projects and other projects in the
20- year Capital Improvement Program ( CIP) are in the separate CIP document. A convenient listing of
these projects is included the operating budget document under the “ Capital Improvement” tab.
CONCLUSION
This report and recommended budget document has been provided for City Council review and
discussion. No official action is recommended at this time. The scheduled date for City Council budget
approval is on June 26, 2006 and will include the Capital Improvement Plan and Redevelopment Agency
budgets.
Submitted by,
City of Livermore Leadership Team
1- 25
1- 26
1- 27
Appendix A
To Transmittal Letter
Overview of the Public Works Enterprise Funds and
Internal Service Funds
Airport
Water Reclamation
Water Service
Stormwater
L. A. V. W. M. A.
Las Positas Golf Course
Springtown Golf Course
Fleet and Equipment Services ( Public Works)
Facilities Rehabilitation Projects ( Public Works)
Risk Management
Workers Compensation
Information Technology
Reprographic Services
Community Development Services to LARPD
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 28
Description of Appendix A
This Appendix is intended to provide detailed information regarding the budget requests of the municipal
enterprise funds and the internal service funds. Since there are many funds in each group, the narrative is
divided into 2 main sections. The narrative addresses expenditures, revenues and reserve balances by
year.
Public Services Department- Enterprise Funds
Municipal enterprise funds are distinguished by the fact that they are financed and operated in a manner
similar to private enterprise. The costs of providing service to the public are recovered by user fees and
charges. The following table summarizes the revised budget requests for FY 2005- 2006 for the named
enterprise funds.
Enterprise Funds
Approved
Budget FY
2005/ 06
Revised
Request FY
2005/ 06
Amount of
Change % Change
Airport Operations $ 3,002,340 $ 4,051,200 $ 1,048,860 34.9%
Water Reclamation Plant $ 10,170,740 $ 10,578,760 $ 408,020 4.0%
Stormwater User $ 735,180 $ 724,860 ($ 10,320) - 1.4%
L. A. V. W. M. A. $ 2,680,110 $ 2,679,000 ($ 1,110) 0.0%
Water Fund $ 7,483,070 $ 6,899,810 ($ 583,260) - 7.8%
Las Positas Golf Course $ 2,303,940 $ 2,122,700 ($ 181,240) - 7.9%
Springtown Golf Course $ 141,940 $ 191,690 $ 49,750 35.1%
Total Enterprise Funds $ 26,517,320 $ 27,248,020 $ 730,700 2.8%
Table 1A. Enterprise Approved Expenditures vs. Revised Request FY 05/ 06
The table below summarizes the enterprise budget requests for FY 2006- 2007 and FY 2007- 2008.
Enterprise Funds
FY 2006/ 07 % Change vs.
Prior Year FY 2007/ 08
% Change
vs. Prior
Year
FY 2006/ 2008
Two- Year Total
Airport Operations $ 4,348,930 7.3% $ 4,646,980 6.9% $ 8,995,910
Water Reclamation Plant $ 11,093,930 4.9% $ 11,166,055 0.7% $ 22,259,985
Stormwater User $ 849,570 17.2% $ 877,005 3.2% $ 1,726,575
L. A. V. W. M. A. $ 2,716,000 1.4% $ 2,818,000 3.8% $ 5,534,000
Water Fund $ 7,624,130 10.5% $ 8,317,810 9.1% $ 15,941,940
Las Positas Golf Course $ 2,096,580 - 1.2% $ 2,426,770 15.7% $ 4,523,350
Springtown Golf Course $ 136,060 - 29.0% $ 137,020 0.7% $ 273,080
Total Enterprise Funds $ 28,865,200 5.9% $ 30,389,640 5.3% $ 59,254,840
Table 2A. Enterprise Expenditures in Requested Two- Year Budget
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 29
Airport Operations
FY 2005- 2006: The revised estimate of airport spending is $ 4,051,200 for an increase of $ 1,048,860 or
34.9%. The largest single item is based on increased cost of $ 946,500 for fuel sold. This is offset by
increased charges to purchasers of aviation fuel. Total revenues including both fuel and hangar charges
are higher than the original estimate by $ 622,000 or 14.3%. The target operating reserve level for June 30,
2006 is 16% and the estimated actual will be 11% on that date, based on the current reserve calculation
criteria. However, when the calculation is adjusted to factor out the rapid increase in the cost of fuel, the
airport would meet the target of 16%.
FY 2006- 2007: Airport spending will be $ 4,348,930 for an increase of $ 297,730, or 7.3% over the prior fiscal
year. This reflects personnel costs to add an airport operations position and estimated increases in costs of
fuel. Total revenues including both fuel and hangar charges are expected to increase by 4.4% to
$ 5,199,200 due in part to an increase in hangar fees effective July 1, 2006. The average hangar rental
cost is presently estimated to increase by 5.5%. The target operating reserve level effective June 30, 2007
is 17% and the estimated actual will be 11% on that date, based on the current reserve calculation criteria.
However, when the calculation is adjusted to factor out the rapid increase in the cost of fuel, the airport
would meet the target of 17%.
FY 2007- 2008: Airport spending will be $ 4,646,980 for an increase of $ 298,050 or 6.9% over the prior
fiscal year. This includes an amount of $ 98,200 that represents the airport share of retiree health costs.
Operating revenues are expected to increase by 4.8% to $ 5,451,200 due to an anticipated rate increase
of approximately 2% for hangar rates and charges. The target operating reserve level effective June 30,
2008 is 18% and the estimated actual will be 11% on that date, based on the current reserve calculation
criteria. However, when the calculation is adjusted to factor out the rapid increase in the cost of fuel, the
airport would meet the target of 18%. During the next budget cycle some review will be given to this area
in order to ensure that the airport will meet the reserve standard.
Airport Capital Improvement Projects:
Costs totaling $ 1,505,000 for the share of
the Airport Operations fund portion for
capital improvement projects are included
within the current and proposed two- year
budget. The budget anticipates partial
reimbursement by FAA totaling $ 90,000 in
FY 2005- 2006 and $ 555,000 in FY 2006- 2007, with the balance to come from proceeds of borrowing in
FY 2007- 2008 or use of sufficient replacement reserves.
P roject Name- F. 210 FY 05/ 06 FY 06/ 07 FY 07/ 08 Total
Administration Building $ 0 $ 100,000 $ 140,000 $ 240,000
Misc. Hangar Improvements $ 114,000 $ 441,000 $ 20,000 $ 575,000
Underground Tanks $ 490,000 $ 0 $ 0 $ 490,000
Noise M onitoring $ 50,000 $ 100,000 $ 0 $ 150,000
Temporary Office Trailer $ 0 $ 50,000 $ 0 $ 50,000
Totals $ 654,000 $ 691,000 $ 160,000 $ 1,505,000
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 30
Water Reclamation Operations
FY 2005- 2006: The revised estimate of water reclamation spending is $ 10,578,760 for an increase of
$ 408,020 or 4.0%. The largest single item is based on increased cost of $ 387,000 in personnel services
due to higher fill rates than originally anticipated. Revenues are higher than the original estimate by
$ 754,000 or 4.8%. The target operating reserve level for June 30, 2006 is 32.5% and the estimated actual
will be 32.9% on that date. The water reclamation enterprise is different than other municipal funds in that it
receives its revenues from the property tax rolls. Therefore its reserve goal in 2010 is 50% ( instead of 20%
for other types of funds) of operating expenditures plus transfers out for debt service.
FY 2006- 2007: Water reclamation spending will be $ 11,093,930 for an increase of $ 515,170, or 4.9% over
the prior fiscal year. Operating revenues are expected to increase by 2.9% to $ 16,895,000 due to
increased connections only. The target operating reserve level effective June 30, 2007 is 37.0% and the
estimated actual will be 37.2% on that date. Regarding replacement reserves, in FY 2006- 2007 staff will
be updating and finalizing a preliminary replacement financing study as part of a more comprehensive
asset management program that addresses funding levels and sources for replacement of water and
sewer infrastructure.
FY 2007- 2008: Water reclamation spending will be $ 11,166,055 for an increase of $ 72,125 or 0.7% over
the prior fiscal year. This includes an amount of $ 268,300 that represents the water reclamation share of
retiree health costs. Operating revenues are expected to increase by 1.0% to $ 17,064,000 due to
increased connections. The target operating reserve level effective June 30, 2008 is 41.5% and the
estimated actual will be 41.5% on that date.
Water Operations
FY 2005- 2006: The revised estimate of water spending is $ 6,899,810 for a decrease of $ 583,260 or - 7.8%.
The largest single item is cost savings in the amount of $ 523,000 for water purchases from Zone 7. This
was a result of purchasing almost 200 million fewer gallons of water because of the extended rainy season
this spring. Revenues are lower than the original estimate by $ 807,000 or - 8.7% based on reduced water
sales. The target operating reserve level for June 30, 2006 is 16% and the estimated actual will be 17% on
that date.
FY 2006- 2007: Water spending will be $ 7,624,130 for an increase of $ 724,320, or 10.5% over the prior
fiscal year. This reflects a rebound in spending for water purchases based on a normal rain year as well as
other cost of living increases for personnel and services and supplies. Operating revenues are expected to
increase by 23.1% to $ 10,422,000 due to increased connections and an increase in water rates effective
July 1, 2006. The average increase per consumer is 3.5%. The target operating reserve level effective
June 30, 2007 is 17% and the estimated actual will be 17% on that date. Regarding replacement reserves,
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 31
in FY 2006- 2007 staff will be updating and finalizing a preliminary replacement financing study as part of
a more comprehensive asset management program that addresses funding levels and sources for
replacement of water and sewer infrastructure.
FY 2007- 2008: Water spending will be $ 8,317,810 for an increase of $ 693,680 or 9.1% over the prior
fiscal year. This includes an amount of $ 82,200 that represents the water share of retiree health costs.
Operating revenues are expected to increase by 8.6% to $ 11,316,000 based on a pass- through of the
anticipated January 2007 wholesale water rate increase by Zone 7. The target operating reserve level
effective June 30, 2008 is 18% and the estimated actual will be 18% on that date.
Stormwater Users
FY 2005- 2006: The revised estimate of stormwater spending is $ 724,860 for a decrease of $ 10,320 or -
1.4%. Revenues are lower than the original estimate by $ 10,000 or 1.0%. The target operating reserve
level for June 30, 2006 is 32.5% and the estimated actual will be 39.0% on that date. The stormwater
enterprise is different than most enterprise funds in that it receives its revenues from the property tax rolls.
Therefore its reserve goal in 2010 is 50% ( instead of 20% for other types of funds) of operating expenditures
plus transfers out for debt service.
FY 2006- 2007: Stormwater spending will be $ 849,570 for an increase of $ 124,710, or 17.2% over the prior
fiscal year. This reflects an increase in personnel costs as vacant positions are filled. Operating revenues
are expected to increase by 1.1% to $ 978,000 due to new rates effective July 1, 2006. The rate was
increased by the cost of living index of 1.1%. The target operating reserve level effective June 30, 2007 is
37.0% and the estimated actual will be 38.0% on that date. Regarding replacement reserves, in FY 2006-
2007 staff will continue work on a city- wide infrastructure report that will address appropriate funding
levels and sources for stormwater infrastructure.
FY 2007- 2008: Stormwater spending will be $ 877,005 for an increase of $ 27,435 or 3.2% over the prior
fiscal year. Operating revenues are expected to increase by 0.9% to $ 987,000. The target operating
reserve level effective June 30, 2008 is 41.5% and the estimated actual will be 42.0% on that date.
LAVWMA
FY 2005- 2006: The revised estimate of LAVWMA spending is $ 2,679,000 for a decrease of $ 1,110. This
fund has no operational revenues other than occasional distributions of excess revenues by the LAVWMA
board. The fund receives its resources via a transfer from the Water Reclamation fund. This fund currently
meets the operating reserve goal of 50%.
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 32
FY 2006- 2007: LAVWMA spending will be $ 2,716,000 for an increase of $ 37,000, or 1.4% over the prior
fiscal year.
FY 2007- 2008: LAVWMA spending will be $ 2,818,000 for an increase of $ 102,000 or 3.8% over the prior
fiscal year.
Las Positas Golf Course
FY 2005- 2006: The revised estimate of Las Positas golf course spending is $ 2,122,700 for a decrease of
$ 181,240 or - 7.9%. The largest item of reduction is $ 125,000 in the area of personnel costs. Revenues
are lower than the original estimate by $ 205,000 or - 8.3% due to low recovery margins on golf play at Las
Positas. Projected rounds of golf will be 85,000 compared to the prior total of 78,300 for an increase of
8.6%. Despite these efforts, the overall budget leaves the fund with a deficit of $ 704,923 due mostly to
the carry over deficit of $ 515,293 from the prior year. The target operating reserve level for June 30, 2006
is 16% and the estimated actual will be 16% on that date. The operating reserve amount is $ 390,000;
however it is not sufficient to eliminate the deficit fund balance.
FY 2006- 2007: Las Positas spending will be $ 2,096,580 for a decrease of $ 26,120, or - 1.2% over the prior
fiscal year reflecting a continuing need to reduce expenses. Operating revenues are expected to increase
by 3.4% to $ 2,342,000 due to increased play. Golf rates were last changed in March 2006. The overall
budget submitted increases the cumulative deficit to $ 823,063. The target operating reserve level effective
June 30, 2007 is 17% and the estimated actual will be 16% on that date. The operating reserve amount is
unchanged from the prior year amount of $ 390,000.
FY 2007- 2008: Las Positas spending will be $ 2,426,770 for an increase of $ 330,190 or 15.7% over the
prior fiscal year. This includes an amount of $ 264,700 that represents the golf course share of retiree
health costs. Operating revenues are expected to increase by 3.6% to $ 2,426,000. The overall budget
submitted increases the cumulative deficit to $ 1,188,463. The target operating reserve level effective June
30, 2008 is 18% and the estimated actual will be 14% on that date. The operating reserve amount is
unchanged from the prior year amount of $ 390,000.
Golf Course Capital Improvement Projects and Fund Outlook: No golf course capital projects have been
programmed during this budget period due to the financial issues outlined above. Staff is in the process of
studying deficit reduction alternatives and will present them to the City Council during the next year.
Springtown Golf Course
FY 2005- 2006: The revised estimate of Springtown golf spending is $ 191,690 for an increase of $ 49,750 or
35.1%. This was primarily due to the purchase of materials required for a seasonal dam in accordance with
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 33
Zone 7 and Department of Fish and Game rules. Revenues are unchanged from the original estimate of
$ 90,000. The overall budget leaves the fund with a deficit of $ 100,236. The target operating reserve level for
June 30, 2006 is 16% and the estimated actual will be 8.0% on that date. The operating reserve amount is
$ 15,500 and is not sufficient to eliminate the deficit fund balance.
FY 2006- 2007: Springtown golf spending will be $ 136,060 for a decrease of $ 55,630, or - 29.0% over the
prior fiscal year. Operating revenues are unchanged from the prior year amount of $ 90,000. The overall
budget submitted increases the cumulative deficit to $ 146,296. The target operating reserve level effective
June 30, 2007 is 17% and the estimated actual will be 11% on that date. The operating reserve amount is
unchanged from the prior year amount of $ 15,500. The contract with the current operator expires June
30, 2007. Springtown golf course will be included in a study being prepared this year regarding usage of
public facilities in the Springtown area.
FY 2007- 2008: Springtown golf spending will be $ 137,020 for an increase of $ 960 or 0.7% over the prior
fiscal year. Operating revenues are unchanged from the prior year amount of $ 90,000. The overall budget
submitted increases the cumulative deficit to $ 193,316. The target operating reserve level effective June 30,
2008 is 18% and the estimated actual will be 11% on that date. The operating reserve amount is
unchanged from the prior year amount of $ 15,500.
Internal Service Funds
Internal service funds are used to account for goods and services provided by one city department to
another. Funding for services is recovered through rental or usage rates charged to benefiting program
operating budgets. The rental rates may include not only the cost of operations, but also the cost of
replacement for depreciable equipment. This assures the availability of funds to replace equipment at the
most cost effective time.
The following table summarizes the revised budget requests for FY 2005- 2006 for the internal service funds.
Internal Service Funds
Approved
Budget FY
2005/ 06
Revised
Request FY
2005/ 06
Amount of
Change % Change
Risk Management $ 2,432,320 $ 2,437,600 $ 5,280 0.2%
Workers Compensation Trust $ 1,374,420 $ 1,370,440 ($ 3,980) - 0.3%
Information Technology $ 2,025,080 $ 1,475,010 ($ 550,070) - 27.2%
Fleet & Equipment Services $ 2,219,090 $ 2,273,700 $ 54,610 2.5%
Facilities Rehabilitation $ 2,183,340 $ 2,023,900 ($ 159,440) - 7.3%
Reprographics $ 277,430 $ 301,460 $ 24,030 8.7%
Community Development/ LARPD Svcs. $ 138,500 $ 139,540 $ 1,040 0.8%
Total Internal Service Funds $ 10,650,180 $ 10,021,650 ($ 628,530) - 5.9%
Table 3A. ISF Approved Expenditures vs. Revised Request FY 05/ 06
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 34
The table below summarizes the internal service fund requests for FY 2006- 2007 and FY 2007- 2008.
Internal Service Funds
FY 2006/ 07 % Change vs.
Prior Year FY 2007/ 08
% Change
vs. Prior
Year
FY 2006/ 2008
Two- Year
Total
Risk Management $ 2,113,080 - 13.3% $ 2,138,920 1.2% $ 4,252,000
Workers Compensation Trust $ 1,418,500 3.5% $ 1,425,890 0.5% $ 2,844,390
Information Technology $ 2,126,350 44.2% $ 1,941,360 - 8.7% $ 4,067,710
Fleet & Equipment Services $ 2,062,360 - 9.3% $ 2,409,860 16.8% $ 4,472,220
Facilities Rehabilitation $ 2,102,170 3.9% $ 2,199,590 4.6% $ 4,301,760
Reprographics $ 286,070 - 5.1% $ 294,980 3.1% $ 581,050
Community Development/ LARPD Svcs. $ 139,580 0.0% $ 139,620 0.0% $ 279,200
Total Internal Service Funds $ 10,248,110 2.3% $ 10,550,220 2.9% $ 20,798,330
Table 4A. ISF Expenditures in Requested Two- Year Budget
Public Works- Fleet Services and Equipment
FY 2005- 2006: The revised estimate of Fleet spending is $ 2,273,700 for an increase of $ 54,610 due to
higher fuel costs, changing logos on all City vehicles to implement the city identity change, and repainting
patrol cars in the black and white standard adopted by the Police Department.
FY 2006- 2007: Fleet operational spending will be $ 2,062,360 for a decrease of $ 211,340 or - 9.3% over the
prior fiscal year. However there are also 2 significant acquisitions through the capital improvement
program for the purchase of a Type III fire engine ($ 360,000) and a Type 4 patrol vehicle ( 150,000).
FY 2007- 2008: Fleet spending will be $ 2,409,860 for an increase of $ 347,500 or 16.8% over the prior
fiscal year, reflecting a return to the previous level of spending.
Public Works- Facilities Rehabilitation Projects ( FRP)
FY 2005- 2006: The revised estimate of Facilities spending is $ 2,023,900 for a decrease of $ 159,440 due
to a combination of installing energy conservation devices in city maintained buildings and lower energy
costs resulting from mild winter temperatures.
FY 2006- 2007: Facilities spending will be $ 2,102,170 for an increase of $ 78,270 or 3.9% over the prior
fiscal year.
FY 2007- 2008: Facilities spending will be $ 2,199,590 for an increase of $ 97,420 or 4.6% over the prior
fiscal year.
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 35
Risk Management Internal Service Fund
FY 2005- 2006: The revised estimate of risk management spending is $ 2,437,600 for an increase of
$ 5,280.
FY 2006- 2007: Risk management spending will be $ 2,113,080 for a decrease of $ 324,520 or - 13.3% over
the prior fiscal year due to reduced contractual services.
FY 2007- 2008: Risk management spending will be $ 2,138,920 for an increase of $ 25,840 or 1.2% over
the prior fiscal year. During the entire budget period, the reserve for claims is funded on a current basis.
Workers Compensation Internal Service Fund
FY 2005- 2006: The revised estimate of workers compensation spending is $ 1,370,440 for a decrease of
$ 3,980.
FY 2006- 2007: Workers compensation spending will be $ 1,418,500 for an increase of $ 48,060 or 3.5%
over the prior fiscal year.
FY 2007- 2008: Workers compensation spending will be $ 1,425,890 for an increase of $ 7,390 or 0.5%
over the prior fiscal year. During the entire budget period, the reserve for claims is funded on a current
basis.
Information Technology ( IT) Internal Service Fund
FY 2005- 2006: The revised estimate of information technology spending is $ 1,475,010 for a decrease of
$ 550,070. This is due to primarily to carryovers in hardware and software acquisitions of $ 105,000, and
carryovers in contract services of $ 420,000 into FY 2006- 2007.
FY 2006- 2007: Information technology spending will be $ 2,126,350 for an increase of $ 651,340 or 44.2%
over the prior fiscal year. Much of the increase is due to the carry over of projects. New projects added are
the on- line permitting system for $ 57,000 and the interactive voice building inspection scheduling system for
$ 62,000.
FY 2007- 2008: Information technology spending will be $ 1,941,360 for a decrease of $ 184,990 or - 8.7%
over the prior fiscal year.
Two- Year Financial Plan FY 2006- 2008 Appendix A
1- 36
Reprographic Services Internal Service Fund
FY 2005- 2006: The revised estimate of reprographic services spending is $ 301,460 for an increase of
$ 24,030.
FY 2006- 2007: Reprographic services spending will be $ 286,070 for a decrease of $ 15,390 or - 5.1% over
the prior fiscal year.
FY 2007- 2008: Reprographic services spending will be $ 294,980 for an increase of $ 8,910 or 3.1% over
the prior fiscal year. The inception date of this fund was in FY 2004/ 05 and it is in the process of
establishing a reserve for equipment replacement.
Community Development Services to LARPD Internal Service Fund
This fund was established in FY 2004/ 05. An annual expenditure budget of approximately $ 139,000 per
year has been requested. Billings in the like amount will defray the cost of services provided to the
district.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 37
The Long Term Financial Plan ( LTFP) is a multi- year financial forecast of the
General Fund. It is intended to provide a frame of reference to help evaluate
the City’s financial condition and help assess financial implications of current
and proposed budgets, programs and assumptions. The long term financial
plan can be used to help shape budget decisions by providing early warning
of adverse trends. It can be used in the development of strategies to achieve
City financial and community goals.
Development of the 2006 Financial Forecast
This report is an update to the 5- Year LTFP last presented to the City
Council in May 2005. The forecast submitted at this time incorporates actual
FY 2004/ 05 results. The base year of the current forecast is the revised FY
2005/ 06 as shown in the budget document that is being presented to the City
Council in June 2006. Year 1 and Year 2 of the forecast correspond with FY
2006/ 07 and FY 2007/ 08 of the new 2- year financial plan. Years 3, 4, and 5
correspond with the 3 years following the current budget period, i. e., FY
2008/ 09, FY 2009/ 10, and FY 2010/ 11.
This year’s report on the Long Term Financial Plan addresses the following:
Overview of Forecast Methodology ................................................ Page 1
Forecast Summary and Results ..................................................... Page 2
Excess( Deficiency) of General Fund Revenues vs. Expenses ....... Page 3
Forecast of General Fund Operating Reserves .............................. Page 4
Forecast Assumptions of Major Revenues ..................................... Page 5- 14
Forecast Assumptions of Expenditures .......................................... Page 15- 17
Financial Action Plan ...................................................................... Page 18
Overview of Forecast Methodology
The forecast is developed using the current level of services provided by the
City. Inflation and historical growth rates are used to predict levels of
expenditures. Revenues are projected using the long term historical trend or
a more recent period reflecting specific circumstances. The expenditure
base and revenue base are also adjustable for discrete changes that occur
within the 5- year forecast period. An example of this type of change would be
a one- time State takeaway occurring perhaps in year 3 and then being
restored in year 5. This would be similar to the manner in which the VLF gap
loan/ repayment situation experienced by the city in FY 2003/ 04 and FY
2005/ 06 was tracked through the model.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 38
Forecast Summary and Results
Over the 5- year forecast period City revenues are expected to grow at an
average annual rate of 4.0%. Major sources of increase are:
• Property taxes will grow from $ 19.6 million in FY 2005/ 06 to $ 30.3
million in FY 2010/ 11. The last year of reduction under ERAF III
was FY 2005/ 06 in the amount of $ 1,337,697.
• Annual sales tax revenue will grow from $ 19.5 million in FY
2005/ 06 to $ 26.4 million in FY 2010/ 11.
• FY 2005/ 06 contains $ 1,323,432 for the early repayment of the
VLF backfill gap loan by the State.
• Improved cost recovery of fee based revenues such as fire
inspection fees.
During the 5- year forecast period City expenditures are projected to grow at
an average annual rate of 3.5%. Major sources of increase are as follows:
• Starting in FY 2007/ 08 the City becomes subject to the provisions
of GASB 45 that addresses retirement health reimbursement costs.
The General Fund portion shown in the forecast is approximately
80% of the total, or $ 3.2 million. The cost has been indexed to
increase with changes in the CPI and city population such that it
tracks approximate growth in the operating budget.
• Fire service costs increased in FY 2005/ 06 with the addition of 3 fire
fighters in October 2005. This completes the upgrade of staffing on
three engine companies to 4- person crews.
The following chart provides a comparison of historical and projected
revenue and expenditure growth during the 5- year forecast period.
City of Livermore
General Fund
Revenues vs. Expenditures
$ 50,000,000
$ 60,000,000
$ 70,000,000
$ 80,000,000
$ 90,000,000
$ 100,000,000
$ 110,000,000
2004
2005
2006
2007
2008
2009
2010
2011
REVENUES + TRANSYFeEaRrS IN EXPENDITURES
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 39
Excess( Deficiency) of General Fund Revenues vs. Expenditures
Because the forecasted 5- year average expenditure growth trend of 3.5% is
less than the revenue growth of 4.0%, the financial forecast outlook shows
improvement compared to last year. The model shows only one year of a
large deficiency, 2 years are approximately at the break even level, and the 2
out years show strong recovery. By 2011 the model indicates a cumulative
source of funds of $ 2.5 million.
Revised Current
Budget- Base Year
of Forecast
Upcoming 2- yr
Budget Yr. 1 of
Forecast
Upcoming 2- yr
Budget Yr. 2 of
Forecast
Future 2- yr Budget
Projected Yr. 3 of
Forecast
Future 2- yr Budget
Projected Yr. 4 of
Forecast
Projected Yr. 5
of Forecast 5- Year Total
2006 2007 2008 2009 2010 2011
Operating
Sources $ 83,703,820 $ 83,566,500 $ 87,498,500 $ 92,172,761 $ 97,064,761 $ 101,829,761
Budget
Expenditures $ 83,616,700 $ 85,308,530 $ 87,511,630 $ 91,930,000 $ 95,570,000 $ 99,339,000
Projected
Surplus/ ( Deficit) $ 87,120 ($ 1,742,030) ($ 13,130) $ 242,761 $ 1,494,761 $ 2,490,761 $ 2,473,123
The 2 primary uses of funds in FY 2007/ 08 are the required annual
contribution under GASB 45 of $ 3.2 million and the cost of $ 1.0 million to
fund engineering and design costs of Fire Station No. 9 and the Police Radio
Station/ Tower project.
Another way of illustrating the expenditure and revenue trends is shown in
the chart below. In the early years the negative figures in the table above
show as a crossover of the expenditure line above the revenue line. In the
later years, the revenue line is above the expenditure line.
General Fund Revenues vs. Expenditures
$ 50,000,000
$ 60,000,000
$ 70,000,000
$ 80,000,000
$ 90,000,000
$ 100,000,000
$ 110,000,000
2004
2005
2006
2007
2008
2009
2010
2011
REVENUES + TRANSFERS IN EXPENDITURES
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 40
Forecast of General Fund Operating Reserve
The City of Livermore has adopted a policy establishing operating reserves
that will help to maintain the City's credit worthiness, as well as provide funds
for economic uncertainties, contingencies and cash flow requirements. In the
General Fund the operating reserve was initially set at 10% of operating
expenditures plus debt service and recurring transfers, with the goal of
increasing the reserve to a level of 20% by FY 2009- 2010.
As shown on the following table, in FY 2005/ 06 the operating reserve is
funded at the goal level 16.0%, but by FY 2007/ 08 the operating reserve is
estimated at the 16.6% level which is below the goal of 18%. However, once
the $ 1.0 million that was advanced from reserves for 2 public safety capital
projects is repaid in 2008, the operating reserve will be at 17.8%.
Revised Current
Budget- Base Year
of Forecast
Upcoming 2- yr
Budget Yr. 1 of
Forecast
Upcoming 2- yr
Budget Yr. 2 of
Forecast
Future 2- yr Budget
Projected Yr. 3 of
Forecast
Future 2- yr Budget
Projected Yr. 4 of
Forecast
Projected Yr. 5
of Forecast
2006 2007 2008 2009 2010 2011
Base
Budget+ Trfs Out $ 75,939,280 $ 80,455,530 $ 85,062,630 $ 88,597,000 $ 92,049,000 $ 95,626,000
Op Reserve Goal % 16.0% 17.0% 18.0% 19.0% 20.0% 20.0%
Rsv Goal Amount $ 12,150,000 $ 13,677,000 $ 15,311,000 $ 16,833,000 $ 18,410,000 $ 19,125,000
Actual/ Projected $ 12,204,000 $ 12,906,000 $ 14,158,000 $ 15,707,000 $ 17,330,000 $ 19,031,000
Over/( Short) $ 54,000 ($ 771,000) ($ 1,153,000) ($ 1,126,000) ($ 1,080,000) ($ 94,000)
Actual Rsv % 16.1% 16.0% 16.6% 17.7% 18.8% 19.9%
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 41
Forecast Assumptions of Major Sources of General Fund Revenues
Over the 5- year forecast period City revenues are expected to grow at an
average annual rate of 4.0%. In the General Fund, the top 6 categories
contribute 90% of the current resources. These are property taxes, sales
taxes, other taxes, intergovernmental revenues, licenses and permits, and
charges for current services as shown below:
Major Revenue Categories FY 2004/ 05- Actual % of Total
1. Property Taxes $ 17,855,633 26%
2. Sales Taxes $ 18,953,516 27%
3. Other Taxes $ 10,013,049 15%
4. Intergovernmental/ VLF $ 6,130,836 9%
5. Licenses & Permits $ 2,566,276 4%
6. Charges for Current Svc $ 7,488,719 11%
7. All Other $ 6,045,809 9%
Total $ 69,053,838 100%
The forecast assumptions center around the historical activity levels of these
categories and are projected into the future with reference to the associated
economic drivers such as population, personal income, rate increases, cost
of living and interest rates.
Major Revenue Category 1.-- Property Taxes
This category comprises 26% of General Fund revenues. During the forecast
period, property taxes are assumed to increase at an average annual rate of
9.2% per year compared to a 9.8% historical average over the past 19 years.
The historical average includes the inception of state ERAF I and II
takeaways starting in FY 1992/ 93.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 19,605,000 $ 22,911,000 $ 24,744,000 $ 26,724,000 $ 28,595,000 $ 30,311,000
9.8% 16.9% 8.0% 8.0% 7.0% 6.0% 9.2%
Property Tax Revenue History
$ 0
$ 5,000,000
$ 10,000,000
$ 15,000,000
$ 20,000,000
$ 25,000,000
$ 30,000,000
2007- 2008
2006- 2007
2005- 2006
2004- 2005 A...
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 00
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
Major Revenue Category 2.-- Sales Taxes
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 42
This category comprises 27% of General Fund revenues. During the forecast
period, retail sales and use taxes are assumed to increase at an average
annual rate of 6.3% per year compared to a 10.9% historical average over
the past 19 years. This rate exceeds the combined estimated growth in city
population plus growth in the consumer price index that is estimated at 4.8%
for the same period. Sales tax for 2007 reflects full operation of the I- 580
Livermore Auto Mall that commenced operations in 2004.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 19,452,000 $ 21,493,000 $ 22,783,000 $ 23,930,000 $ 25,130,000 $ 26,380,000
2.6% 10.5% 6.0% 5.0% 5.0% 5.0% 6.3%
Sales Tax Revenue History
$ 0
$ 5,000,000
$ 10,000,000
$ 15,000,000
$ 20,000,000
$ 25,000,000
2007- 2008
2005- 2006
2003- 2004
2001- 2002
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
1989- 90
Major Revenue Category 3.-- Other General Fund Taxes
This important category comprises 15% of General Fund revenues. During
the forecast period, other general fund taxes are expected to increase at an
overall rate of 4.7%.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 10,324,000 $ 10,747,000 $ 11,197,000 $ 11,753,000 $ 12,337,000 $ 12,950,000
3.1% 4.1% 4.2% 5.0% 5.0% 5.0% 4.7%
Other General Fund Taxes Category 3 FY 2004/ 05- Actual % of Total
Electric & Gas Franchise $ 561,414 6%
Cable TV Franchise $ 798,389 8%
Garbage Franchise $ 1,175,584 12%
Business License Tax $ 3,105,116 31%
Documentary Transfer Tax $ 1,147,253 11%
Transient Occupancy Tax $ 1,239,722 12%
Residential/ Ind. Const. Tax $ 1,985,571 20%
Total $ 10,013,049 100%
The section below describes the calculation basis of each revenue item in
the table above together with a chart showing the historical levels of revenue
received.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 43
a. and b. Franchise taxes for electricity, gas, and cable television: These
taxes increase according to change in population, and change in CPI. This
group has increased an average of 8.6% per year over the past 18 years.
( Note: The exceptional cable revenue in FY 2000/ 01 was due to change of
the basis of remittance from annual to a quarterly basis by the new
franchisee.)
Gas & Electric and Cable Franchise Revenue History
$ 0
$ 200,000
$ 400,000
$ 600,000
$ 800,000
$ 1,000,000
$ 1,200,000
$ 1,400,000
2007- 2008
2006- 2007
2005- 2006
2004- 2005 Actual
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 00
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
Cable Franchise Electric Gas
c. Garbage franchise tax: These tax revenues increase according to change
in population and CPI. This franchise tax revenue has increased an average
of 9.0% per year over the past 19 years.
Garbage Franchise Revenues History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
2007- 2008
2005- 2006
2003- 2004
2001- 2002
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
1989- 90
d. Business license tax: These taxes are correlated to the rate of change in
sales tax revenues. The tax has increased an average of 10.6% per year
over the past 19 years. ( Note: The exceptional revenue in FY 1993/ 94 was
due to change of the tax reporting basis from fiscal year to a calendar year
basis.)
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 44
Business License Tax History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
$ 2,500,000
$ 3,000,000
$ 3,500,000
2007- 2008
2006- 2007
2005- 2006
2004- 2005 ...
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 00
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
e. Documentary/ real property transfer tax: These taxes increase according to
change in population and change in the average price of single family homes
sold. The tax has increased an average of 13.8% per year over the past 19
years.
Documentary Transfer Tax Revenue History
$ 0
$ 200,000
$ 400,000
$ 600,000
$ 800,000
$ 1,000,000
$ 1,200,000
$ 1,400,000
2006- 2007
2006- 2007
2005- 2006
2004- 2005 Actual
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 00
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
f. Transient occupancy tax ( also known as hotel/ motel tax): This source has
its own index as shown on the Forecast Model Assumptions and anticipates
a growth rate of 5% during the forecast period. This revenue is a function of
the supply of rooms ( i. e., new rooms added/ built), and demand generated by
the overall strength of the economy, room charges, and circumstances
specific to the travel industry. The tax has increased an average of 9.1% per
year over the past 19 years.
Hotel/ Motel Tax Revenues vs. Rooms History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
2007- 2008
2006- 2007
2005- 2006
2004- 2005 ...
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 2000
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
111,,, 0224468000000000000000
Revenue Amount Number of Rooms
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 45
g. Dwelling construction license tax and industrial construction license tax:
This source uses a specific index labeled the “ Building Activity Index” and
anticipates a growth rate of 5% during the forecast period. The index is
described more fully in the Building Permit section below. The tax has
increased an average of 12.7% per year over the past 19 years.
Tax on Residential/ Industrial Construction Revenue History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
$ 2,500,000
$ 3,000,000
$ 3,500,000
2007- 2008
2005- 2006
2003- 2004
2001- 2002
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
1989- 90
TORC TOIC
Major Revenue Category 4.-- Intergovernmental Revenues
This category comprises 9% of General Fund revenues with the Vehicle
License Fee contributing 83% of the total. VLF revenues totaled $ 4.7 million
of the $ 6.1 million in this category in FY 2004/ 05. During the forecast period,
VLF is assumed to increase at an average annual rate of 6.0% per year
compared to a 6.7% historical average over the past 19 years.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 5,680,000 $ 5,968,000 $ 6,271,000 $ 6,744,000 $ 7,191,000 $ 7,603,000
21.0% 5.1% 5.1% 7.5% 6.6% 5.7% 6.0%
Vehicle License Fee Revenue
$ 0
$ 1,000,000
$ 2,000,000
$ 3,000,000
$ 4,000,000
$ 5,000,000
$ 6,000,000
$ 7,000,000
2007- 2008
2006- 2007
2005- 2006- Rev,
2004- 2005- Actual
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 00
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
1987- 88
1986- 87
The manner in which Vehicle License Fee revenues are projected in the
LTFP was changed in 2005 to reflect the provisions of Prop 1A passed by
the voters on November 2, 2004. The model splits the forecast basis into the
City’s share of the .65% portion increased by the change in population and
the Compensation Fund portion increased by the change in property tax
growth.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 46
Major Revenue Category 5.-- Licenses and Permits
This important category comprises 4% of General Fund revenues. During
the forecast period, all licenses and permits are expected to increase at an
overall rate of 4.9%. The sections below describe the calculation basis of the
2 major subgroups within the category.
a. Building permits ( including building, plumbing, electrical and mechanical
permits) comprised a full 80% of this category. Permit fee revenues have
increased an average of 13.5% per year over the past 19 years. In the model
these revenues are assumed to increase at an average annual rate of 3.8%
anticipating a slowing of construction during the forecast period.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 2,232,000 $ 2,267,000 $ 2,325,000 $ 2,441,000 $ 2,563,000 $ 2,691,000
4.3% 1.6% 2.6% 5.0% 5.0% 5.0% 3.8%
Building Permit Revenue History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
$ 2,500,000
2007- 08
2005- 06
2003- 04
2001- 02
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
This source uses a specific Building Permit Activity Index that has the
advantage of addressing the cyclical nature of the activity level.
b. Other licenses and permits revenues include street and curb
encroachment permits, police permits, fire code permits, and hazardous
materials permits. This 20% portion of the major category grows in
proportion to population and increases to the fee basis.
Major Revenue Category 6.-- Charges For Current Services
This category comprises 11% of General Fund revenues. During the forecast
period, charges for current services are expected to increase at an overall
rate of only 1.8%. The sections below describe the calculation basis of the 3
major subgroups within the category.
a. Building Plan Check Fees and Residential Building Reports
Building plan check fees and building reports comprise 8% of this category.
These fee revenues have increased an average of 20.9% per year over the
past 19 years with wide variations as shown below. In the model these
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 47
revenues are assumed to increase at an average annual rate of minus 0.2%
anticipating a slowing of construction during the forecast period.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 710,000 $ 584,000 $ 595,000 $ 625,000 $ 656,000 $ 689,000
15.8% - 17.7% 1.9% 5.0% 5.0% 5.0% - 0.2%
Building Fee For Service Revenue History
$ 0
$ 100,000
$ 200,000
$ 300,000
$ 400,000
$ 500,000
$ 600,000
$ 700,000
$ 800,000
2007- 08
2005- 06
2003- 04
2001- 02
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
This source uses a specific building fee for service index that assists the
forecasting process by addressing the cyclical nature of the activity level.
b. Planning Use and Variance Fees
Planning use and variance fees comprise 12% of this category. These fee
revenues have increased an average of 25.2% per year for the last 19 years
with wide variations as shown below. In the model future revenues are
assumed to increase at an average annual rate of 3.0% anticipating a
slowing of applications for major projects during the forecast period.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 700,000 $ 700,000 $ 700,000 $ 735,000 $ 772,000 $ 811,000
- 23.2% 0.0% 0.0% 5.0% 5.0% 5.0% 3.0%
Planning Use and Variance Fee Revenue History
$ 0
$ 200,000
$ 400,000
$ 600,000
$ 800,000
$ 1,000,000
2007- 08
2005- 06
2003- 04
2001- 02
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 48
This source uses a specific planning use and variance fee index and has the
advantage of addressing the variable nature of the activity level as it relates
to the City entitlement process preceding the building permit process.
c. Public Works Inspection and Engineering Fee Revenues
Public works inspection and engineering fees comprise 13% of this category.
These revenues have increased an average of 15.5% per year for the last 19
years with wide variations as shown below. In the model future revenues are
assumed to increase at an average annual rate of minus 2.7% anticipating a
slowing of construction during the forecast period.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010 Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
$ 2,160,000 $ 1,810,000 $ 1,590,000 $ 1,670,000 $ 1,750,000 $ 1,840,000
124.1% - 16.2% - 12.2% 5.0% 5.0% 5.0% - 2.7%
PW Inspection and Engineering Fee Revenue History
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
$ 2,500,000
$ 3,000,000
2007- 08
2005- 06
2003- 04
2001- 02
1999- 00
1997- 98
1995- 96
1993- 94
1991- 92
This source uses a specific engineering fee activity index and has the
advantage of addressing the variable nature of the activity level.
d. Other Charges for Current Service
The “ Charges for Current Service Category” also includes: Interfund Charges
for public works project transfers which track the Engineering Fee Activity
Index; Interfund Charges for service to enterprise funds which track changes
in the Consumer Price Index; and all other fees which link to the Building
Permit Activity Index.
Major Revenue Category 7.— All Other General Fund Revenues
This category comprises 9% of General Fund revenues. This category
includes fines and forfeitures, property rentals, other in lieu taxes,
miscellaneous revenues and interest earnings. This category tracks changes
in the Consumer Price Index.
Other Forecast Indexes Used for Revenues
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 49
Population
Population in Livermore is projected to grow from 82,337 on January 1, 2006
to approximately 90,000 in 2009. Population size is the primary basis for
allocation of a number of General Fund taxes as noted above. Population is
also a component of the “ Expenditure Target Index” which is used to forecast
changes in the Services and Supplies portion of the budget.
2005
Actual
2006
Revised
2007
Forecast
Year 1
2008
Forecast
Year 2
2009
Forecast
Year 3
2010
Forecast
Year 4
2011
Forecast
Year 5
5- Year
Average
Population 8 0,723 82,337 8 3,820 85,328 8 6,864 8 8,428 9 0,019
Change 2.7% 2.0% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8%
City vs. Alameda County Population
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
1,400,000
1,450,000
1,500,000
1,550,000
2006
2005 Actual
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
-
20,000
40,000
60,000
80,000
100,000
Alameda County Population City Population
These population index values are based on a prior 15- year average growth
in the City of Livermore of 2.19%. The source of population data is the
California Department of Finance.
Consumer Price Index
The CPI- U for All Urban Consumers is the measure of the increase in cost of
goods and services. Inflation impacts many revenue and expenditure
categories and is a component of the “ Expenditure Target Index” which is
used to forecast changes in the Services and Supplies portion of the
operating budget. The LTFP uses estimates below:
2005
Actual
2006
Revised
2007
Forecast
Year 1
2008
Forecast
Year 2
2009
Forecast
Year 3
2010
Forecast
Year 4
2011
Forecast
Year 5
5- Year
Average
CPI- U 2 03 209 215 222 2 28 2 35 2 42
Change 1.96% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 50
Historical % Change in CPI- U
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2006
2005
2004 Actual
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
These values are based on a prior 15- year average change in the CPI of
2.19%. The source of inflation data is the Bureau of Labor Statistics for the
San Francisco- Oakland- San Jose area.
Average Single Family Home Price
The average price of a single family home in Livermore is projected to grow
from $ 726,428 on January 1, 2006 to approximately $ 1.0 million in 2011.
Sales price is the primary basis for allocation of a number of the
documentary transfer tax on the sale of homes.
2006 Revised
2007 Forecast
Year 1
2008 Forecast
Year 2
2009 Forecast
Year 3
2010
Forecast
Year 4
2011
Forecast
Year 5
5- Year
Average
$ 726,428 $ 784,542 $ 839,460 $ 898,222 $ 961,098 $ 1,028,375
12.9% 8.0% 7.0% 7.0% 7.0% 7.0% 7.2%
Livermore SFR Average Sales Price
$ 0
$ 200,000
$ 400,000
$ 600,000
$ 800,000
2000 2001 2002 2003 2004 2005 2006
These values are based on a prior 6- year average change in the index of
12.2%. The source of this data is the Bay East Association of Realtors.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 51
Forecast Methodology of Major General Fund Expenditures
Over the 5- year forecast period City expenditures are projected to grow at an
average annual rate of 3.5%. There are 2 basic cost categories in the
General Fund operating budget: All personnel costs ( 75%); and services and
supplies ( 25%). These 2 basic categories are further separated into 10
subcomponents in the LTFP so that each major subcategory can be
projected using its appropriate cost index.
Police Safety Personnel Costs ( 19% in FY 2004/ 05)
P- 1. This includes all Persable pay types for full or part time regular staff
including military pay, police MSA pay, police injury pay, POST, holiday- in-lieu
pay, uniform allowance, field training officer pay, and bilingual pay. In FY
2004/ 05 personnel costs were based on 97 Police Safety FTE’s.
P- 2. This includes other non- Persable salary costs including overtime and
CID pay. There are no temporary police salary costs.
P- 3. This includes Pers Safety retirement costs.
P- 4. This is all other fringe benefit costs including health and dental
insurance, life insurance, workers compensation insurance, liability
insurance and the like.
Miscellaneous Employee Personnel Costs ( 40% in FY 2004/ 05)
M- 1. This includes all Persable pay types for full or part time regular staff
including military pay, injury pay, holiday- in- lieu pay and uniform allowance
( paid to police dispatchers and some community service staff), shift
premium, and bilingual pay. In FY 2004/ 05 personnel costs were based on
311 Miscellaneous employee FTE’s; in FY 2005/ 06 the total was 308.
M- 2. This includes other non- Persable salary costs including overtime and
temporary or part- time salary costs.
M- 3. This includes Pers Miscellaneous retirement costs.
M- 4. This is all other fringe benefit costs including health and dental
insurance, life insurance, workers compensation insurance, liability
insurance and the like.
Fire/ LPFD Costs ( 17% in FY 2004/ 05)
F- 1. This includes all City fire department costs of the Livermore Pleasanton
Fire Department. Because the majority of the costs are billed to the City as a
1/ 12 of budget amount determined by the JPA, this cost is handled as a
single line item in the LTFP. In FY 2004/ 05 the personnel portion of the costs
was based on 63.5 Fire Safety staff FTE’s and 4.4 Miscellaneous employee
FTE’s. In FY 2005/ 06 the total of Fire Safety staff was 66.5.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 52
Service and Supply Costs ( 24% in FY 2004/ 05)
S- 1. This includes all other non- personnel costs including a small amount of
capital outlay for equipment. The Service and Supply category includes costs
billed to the General Fund by the Internal Service Funds, i. e., Fleet, Facilities
Rehabilitation, Information Technology, and Reprographics.
Therefore the average annual growth rate forecasted by the LTFP actually
represents the weighted average growth rate of the 10 subcomponents listed
above. This is an important feature of the LTFP as it provides an overall
perspective of how costs change in the General Fund without the distraction
of trying to assimilate the effect of changes in costs in 20 individual
departments or divisions.
Growth Assumptions of the 10 LTFP Cost Categories
As shown below, a number of the cost categories are subject to the same
growth assumptions. Therefore they are tracked separately in the forecast in
order to compare values when actual costs are recorded in the General
Ledger. Also different cost categories are subject to different policies and
controls. Segregation in the model helps to call out the impact of changes.
Police Safety Personnel Costs ( 4 Categories)
P- 1. All Persable Pay Types; P- 2. Other Non- Persable Salary Costs
( Overtime); and P- 4. All Other Fringe Benefits-- Increase by CPI plus 1% and
any changes in base costs. P- 3. Pers Safety Retirement-- Increase by Safety
PERS Index and CPI plus 1% and any change in base costs.
Miscellaneous Employee Personnel Costs ( 4 Categories)
M- 1. All Persable Pay Types; M- 2. Other Non- Persable Salary Costs
( Overtime and Temps); and M- 4. All Other Fringe Benefits-- Increase by CPI
plus 1% and any changes in base costs. M- 3. Pers Miscellaneous
Retirement-- Increase by Misc. PERS Index and CPI plus 1% and any
change in base costs.
Fire/ LPFD Costs
F- 1. All Fire Department Costs-- Increase by “ Expenditure Target Index”
which is the change in Population plus the change in CPI.
Service and Supply Costs
S- 1. All Other Non- Personnel Costs— Increase by “ Expenditure Target
Index” which is the change in Population plus the change in CPI.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 53
Forecast Expenditure Indexes and Values Used
Retirement Cost Indexes
These PERS index values are based on actual values for FY 2004/ 054 and
FY 2005/ 06, and values revised by PERS in October 2005 for FY 2006/ 07.
The values for the forecast years are based on the below index:
PERS Miscellaneous Retirement Index
2005- Actual 2006- Actual
2007
Forecast
Year 1
2008
Forecast
Year 2
2009
Forecast
Year 3
2010
Forecast
Year 4
2011
Forecast
Year 5
5- Year
Average
Employer Rate 13.1210% 15.4280% 14.5670% 14.5000% 14.5000% 14.0000% 14.0000%
EPMC 7.0000% 7.0000% 7.0000% 7.0000% 7.0000% 7.0000% 7.0000%
Total Cost 20.1210% 22.4280% 21.5670% 21.5000% 21.5000% 21.0000% 21.0000%
Rate of Change 39.5233% 11.4656% - 3.8390% - 0.3107% 0.0000% - 2.3256% 0.0000% - 1.2950%
PERS Safety Retirement Index
2005- Actual 2006- Actual
2007
Forecast
Year 1
2008
Forecast
Year 2
2009
Forecast
Year 3
2010
Forecast
Year 4
2011
Forecast
Year 5
5- Year
Average
Employer Rate 25.5520% 25.0220% 26.1500% 26.1000% 26.1000% 25.6000% 25.6000%
EPMC 9.0000% 9.0000% 9.0000% 9.0000% 9.0000% 9.0000% 9.0000%
Total Cost 34.5520% 34.0220% 35.1500% 35.1000% 35.1000% 34.6000% 34.6000%
Rate of Change 29.7971% - 1.5339% 3.3155% - 0.1422% 0.0000% - 1.4245% 0.0000% 0.3498%
Expenditure Target Index
This is a composite index based on the sum of the change in CPI plus the
change in population. It is used to forecast changes in the Services and
Supplies portion of the budget.
Expenditure Target Index
2005 Actual
2006
Revised
2007
Forecast
Year 1
2008 Forecast
Year 2
2009
Forecast
Year 3
2010
Forecast
Year 4
2011 Forecast
Year 5
5- Year
Average
Population Change 2.0% 2.0% 1.8% 1.8% 1.8% 1.8% 1.8%
CPI Change 1.96% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0%
Total 3.96% 4.50% 4.80% 4.80% 4.80% 4.80% 4.80% 4.8%
Other Uses of Funds in the General Fund
The forecast model also provides a means of accounting for non- operating
obligations of the General Fund as individual line items: Capital Improvement
Program; Transfers Out for Debt Service; Transfers Out for Recurring
Support; Additions to the Base Budget; Council Priorities; and
Change/ Increase in Service Levels.
City of Livermore, California
Appendix B
Long Term Financial Plan FY 2006- 2011
1- 54
Financial Action Plan
The LTFP depends on making a number of reasonable assumptions over
the five- year period. Although economic conditions can change suddenly, the
present forecast does demonstrate that some fiscal outcomes could be
managed more positively, such as achieving the goal of a 20% operating
reserve per the below:
• The forecast shows that by FY 2009/ 10 the operating reserve is
only estimated at the 18.8% level which is below the goal of 20%.
The amount of cash needed to fully fund the reserve at that time is
$ 1,080,000. Much of this will shortfall will be eliminated provided
that the $ 1.0 million that was advanced from reserves for 2 public
safety capital projects is repaid in 2008 as currently planned.
• During the 5- year forecast period expenditure growth has been
limited to 3.5% while the revenues grow at 4.0%. This has the
desired effect of returning the general fund to a balanced budget
but will continue to require ongoing management of costs as well as
maintenance of cost recovery levels of fee based revenues.
Two- Year Financial Plan
FY 2006- 2008
Fund Account No. & Description FY 04- 05 FY 05- 06 FY 05- 06 % Change FY 06- 07 % Change FY 07- 08 % Change
Actual Adopted Revised to Actual Projected to Revised Projected to Revised
Revised/ Projected
Summary of Revenue
GENERAL FUND REVENUES
Property Taxes
001 30010 CURRENT YEAR - SECURED 1 6,233,698 2 5,168,707 25,168,707 55.0% 2 7,559,000 9.5% 29,855,000 8.3%
001 30020 CURRENT YEAR - UNSECURED 1 ,124,359 9 50,000 950,000 - 15.5% 1,045,000 10.0% 1,150,000 10.0%
001 30030 PRIOR YEAR - SECURED 4 81,517 250,000 250,000 - 48.1% 2 75,000 10.0% 3 03,000 10.2%
001 30040 PRIOR YEAR - UNSECURED 1 6,773 45,000 45,000 168.3% 5 0,000 11.1% 55,000 10.0%
001 30060 SUPPLE - SEC ROLL CURRENT 1 ,012,782 4 50,000 450,000 - 55.6% 4 95,000 10.0% 5 45,000 10.1%
001 30070 SUPPLE UNSEC ROLL - 5,000 5,000 6,000 20.0% 7 ,000 16.7%
001 30080 ERAF - ( 7,523,707) ( 6,186,010) ( 6,805,000) 10.0% ( 7,486,000) 10.0%
001 30081 ERAF III ( 1,337,697) - ( 1,337,697) 0.0% - 100.0% -
001 30150 AIRCRAFT TAXES 1 20,774 60,000 60,000 - 50.3% 6 6,000 10.0% 73,000 10.6%
001 30200 PERN & INT ON DELINQ TAX 2 00,588 200,000 200,000 - 0.3% 2 20,000 10.0% 2 42,000 10.0%
001 30210 OTHER PROPERTY TAXES 2 ,839 - - - 100.0% - -
Total Property Taxes 1 7,855,633 1 9,605,000 19,605,000 9.8% 22,911,000 16.9% 2 4,744,000 8.0%
Sales Taxes
001 30300 SALES & USE TAX 1 4,631,394 1 5,207,000 15,207,000 3.9% 16,120,000 6.0% 17,088,000 6.0%
001 30301 SALES TAX COMP FUND 4 ,322,122 5,069,000 4,245,000 - 1.8% 5 ,373,000 26.6% 5,695,000 6.0%
Total Sales Tax 1 8,953,516 2 0,276,000 19,452,000 2.6% 21,493,000 10.5% 2 2,783,000 6.0%
Other Taxes
001 30500 FRANCHISE TAX - ELECTRIC 3 75,689 394,000 382,000 1.7% 401,000 5.0% 421,000 5.0%
001 30510 FRANCHISE TAX - GAS 1 85,725 195,000 224,000 20.6% 2 35,000 4.9% 247,000 5.1%
001 30520 FRANCHISE TAX - CABLE TV 7 98,389 824,000 847,000 6.1% 889,000 5.0% 933,000 4.9%
001 30530 FRANCHISE TAX - GARBAGE 1 ,175,584 1 ,257,000 1,357,000 15.4% 1 ,425,000 5.0% 1 ,496,000 5.0%
001 30600 BUSINESS LICENSE TAX 3 ,105,116 3,000,000 3,000,000 - 3.4% 3 ,150,000 5.0% 3 ,308,000 5.0%
001 30650 REAL PPTY TRANSFER TAX 1 ,147,253 9 25,000 925,000 - 19.4% 8 79,000 - 5.0% 8 35,000 - 5.0%
001 30670 TRANSIENT OCCUPANCY TAX 1 ,239,722 1,185,000 1,289,000 4.0% 1 ,353,000 5.0% 1 ,421,000 5.0%
001 30710 BUS LIC TAX CONST 1 ,740,808 2,000,000 2,000,000 14.9% 2 ,100,000 5.0% 2 ,205,000 5.0%
001 30720 INDSTRL CONST TAX 2 44,763 300,000 300,000 22.6% 3 15,000 5.0% 331,000 5.1%
Total Other Taxes 1 0,013,049 1 0,080,000 10,324,000 3.1% 10,747,000 4.1% 11,197,000 4.2%
Licenses and Permits
001 31010 ANIMAL LICENSES 2 6,543 26,000 26,000 - 2.0% 26,000 0.0% 2 6,000 0.0%
001 31030 BICYCLE LICENSES 3 - - - 100.0% - -
001 31140 BUILDING PERMITS 1 ,922,487 1,995,000 2,035,000 5.9% 2 ,050,000 0.7% 2 ,100,000 2.4%
001 31150 PLUMBING GAS PERMITS 7 5,577 77,000 64,000 - 15.3% 7 7,000 20.3% 80,000 3.9%
001 31160 ELECTRICAL PERMITS 8 1,109 7 7,000 68,000 - 16.2% 7 7,000 13.2% 80,000 3.9%
001 31170 MECHANICAL PERMITS 6 0,433 63,000 65,000 7.6% 6 3,000 - 3.1% 6 5,000 3.2%
001 31300 STREET AND CURB PERMITS 6 9,838 8 7,000 60,000 - 14.1% 6 2,000 3.3% 6 4,000 3.2%
001 31460 POLICE PERMITS 1 3,614 15,000 15,000 10.2% 1 5,000 0.0% 1 5,000 0.0%
001 31470 FIRE CODE PERMITS 1 48,180 337,000 162,000 9.3% 203,000 25.3% 2 41,000 18.7%
001 31475 FIRE DEPT BILLING DISCOUNT ( 33,528) - - - 100.0% - -
001 31480 HAZMAT PERMITS 2 02,021 294,000 235,000 16.3% 3 33,000 41.7% 3 92,000 17.7%
Total License and Permits 2 ,566,276 2 ,971,000 2,730,000 6.4% 2 ,906,000 6.4% 3 ,063,000 5.4%
Fines and Forfeitures
001 32100 VEHICLE CODE FINES 6 96,706 725,000 614,000 - 11.9% 6 44,000 4.9% 677,000 5.1%
001 32150 PARKING CITATIONS 3 6,855 53,000 59,000 60.1% 6 2,000 5.1% 6 5,000 4.8%
Total Fines and Forfeitures 7 33,561 778,000 673,000 - 8.3% 7 06,000 4.9% 742,000 5.1%
Use of Money and Property
001 33100 INTEREST INCOME 2 ,019,751 2,860,000 2,340,000 15.9% 2 ,500,000 6.8% 2 ,700,000 8.0%
001 33300 INTEREST EARNED TRUSTEE 2 5,438 - - - 100.0% - -
001 33400 RENTAL OF CITY OWNED PROP 7 69,948 666,000 789,000 2.5% 809,000 2.5% 829,000 2.5%
001 33410 MISC RENTAL INCOME 5 1,487 44,000 44,000 - 14.5% 4 4,000 0.0% 4 4,000 0.0%
001 33420 FIREHOUSE SPACE RENT 8 ,100 7,000 8,000 - 1.2% 8 ,000 0.0% 8,000 0.0%
001 33430 MULTI SVC CTR RENTALS 5 1,575 3 6,000 52,000 0.8% 5 2,000 0.0% 5 2,000 0.0%
001 33440 CATTLEMENS LEASE REVENUE 2 88,523 263,000 294,000 1.9% 300,000 2.0% 306,000 2.0%
Total Use of Money and Property 3 ,214,823 3 ,876,000 3,527,000 9.7% 3 ,713,000 5.3% 3 ,939,000 6.1%
1
Two- Year Financial Plan
FY 2006- 2008
Fund Account No. & Description FY 04- 05 FY 05- 06 FY 05- 06 % Change FY 06- 07 % Change FY 07- 08 % Change
Actual Adopted Revised to Actual Projected to Revised Projected to Revised
Revised/ Projected
Summary of Revenue
Intergovernmental Revenues
001 34150 STATE MVIL 5 09,101 408,000 408,000 - 19.9% 4 32,000 5.9% 458,000 6.0%
001 34151 VLF COMP FUND 4 ,186,527 4 ,473,000 5,272,000 25.9% 5 ,536,000 5.0% 5 ,813,000 5.0%
001 34300 ST HOMEOWNER PROP TAX RE 2 12,773 218,000 218,000 2.5% 223,000 2.3% 229,000 2.7%
001 34350 PUBLIC SAFETY AUG FUND 4 03,430 427,000 427,000 5.8% 430,000 0.7% 430,000 0.0%
001 34390 ST HIGHWAY PROP RENTAL 2 ,092 - - - 100.0% - -
001 34410 CA WASTE OIL REIMB 1 50 1,000 1,000 568.4% 1 ,000 0.0% 1,000 0.0%
001 34420 OFF HWY MOTOR VHC LIC FEE 2 ,843 2,000 2,000 - 29.6% 2 ,000 0.0% 2,000 0.0%
001 34440 AB 1661- ERAF RELIEF 1 79,075 - - - 100.0% - -
001 34441 VLF GAP LOAN REIMB - 1,323,000 1,323,000 - - 100.0% -
001 34780 EMT SERVICE AREA 3 29,398 357,000 336,000 2.0% 341,000 1.5% 346,000 1.5%
001 34820 EMERGENCY SERVICES 1 85,000 175,000 191,000 3.2% 196,000 2.6% 202,000 3.1%
001 34860 POST REIMBURSEMENT 9 5,817 75,000 75,000 - 21.7% 7 5,000 0.0% 8 0,000 6.7%
001 34870 REIMB- MANDATED COSTS ( ST) 2 0,910 5 0,000 50,000 139.1% 5 0,000 0.0% 5 0,000 0.0%
001 34880 ALA CO ALCOHOL TEST REIMB 3 ,720 3,000 3,000 - 19.4% 3 ,000 0.0% 3,000 0.0%
Total Intergovernmental Revenues 6 ,130,836 7 ,512,000 8,306,000 35.5% 7 ,289,000 - 12.2% 7 ,614,000 4.5%
Other In- Lieu Taxes
001 34910 HSG AUTH IN LIEU TAX 7 ,020 6,000 7,000 - 0.3% 7 ,000 0.0% 7,000 0.0%
001 34920 FRANCH TAX IN LIEU- WATER 4 04,200 465,000 465,000 15.0% 4 88,000 4.9% 512,000 4.9%
Total Other In- Lieu Taxes 4 11,220 471,000 472,000 14.8% 4 95,000 4.9% 519,000 4.8%
Charges for Current Services
001 35050 USE AND VARIANCE PERMITS 9 11,437 795,000 700,000 - 23.2% 7 00,000 0.0% 700,000 0.0%
001 35100 SALE OF REPORTS & PUB 1 7,864 20,000 7,000 - 60.8% 7 ,000 0.0% 7,000 0.0%
001 35110 RES BLDG RECORDS REPORT 4 3,351 44,000 40,000 - 7.7% 44,000 10.0% 45,000 2.3%
001 35120 SALE OF PLANS & SPECS 2 5 - - - 100.0% - -
001 35200 SALE OF POLICE REPORTS 1 5,736 15,000 15,000 - 4.7% 15,000 0.0% 1 5,000 0.0%
001 35210 SPECIAL POLICE SERVICES 7 7,375 79,000 79,000 2.1% 9 0,000 13.9% 95,000 5.6%
001 35220 FINGERPRINTING FEES - 1,000 - - -
001 35225 PROPERTY & EVIDENCE FEES 1 ,574 2,000 2,000 27.1% 2,000 0.0% 2,000 0.0%
001 35230 POLICE VEHICLE FEES 1 28,398 155,000 155,000 20.7% 1 60,000 3.2% 165,000 3.1%
001 35235 POLICE MISC FEES 5 ,498 6,000 10,000 81.9% 1 0,000 0.0% 1 0,000 0.0%
001 35240 POLICE EMERG RESPONSE 1 ,667 5,000 5,000 200.0% 5 ,000 0.0% 5,000 0.0%
001 35300 ANIMAL SHEL FEES & CHGS 8 62 1,000 1,000 16.0% 1,000 0.0% 1,000 0.0%
001 35350 INSPECTION FEES 3 71,472 1,408,000 1,500,000 303.8% 9 60,000 - 36.0% 9 15,000 - 4.7%
001 35360 ENGINEERING & FILING FEE 5 92,197 535,000 660,000 11.4% 8 50,000 28.8% 6 75,000 - 20.6%
001 35400 SIDEWALK REPAIRS 9 ,932 59,000 58,000 483.9% 5 8,000 0.0% 5 8,000 0.0%
001 35450 WEED ABATEMENT 1 ,945 5,000 2,000 2.8% 2 ,000 0.0% 2,000 0.0%
001 35550 WM STREET SWEEPING FEES 2 32,000 200,000 243,000 4.7% 260,000 7.0% 270,000 3.8%
001 35590 FIRE INSPECTION FEES 1 46,868 290,000 81,000 - 44.8% 8 1,000 0.0% 8 1,000 0.0%
001 35600 LIBRARY FEES 1 30,748 132,000 185,000 41.5% 1 85,000 0.0% 185,000 0.0%
001 35650 PLAN CHECK FEES 5 69,710 525,000 670,000 17.6% 5 40,000 - 19.4% 5 50,000 1.9%
001 35660 INTERFUND CHARGES 4 ,230,060 4 ,114,000 4,197,000 - 0.8% 4 ,332,000 3.2% 4 ,451,000 2.7%
001 35700 ASSESSMT DIST ADMIN FEE - 50,000 50,000 50,000 0.0% 5 0,000 0.0%
001 35870 LARPD - MAINT SVC CENTER - 98,000 20,000 20,000 0.0% 2 0,000 0.0%
Total Charges for Current Services 7 ,488,719 8,539,000 8,680,000 15.9% 8 ,372,000 - 3.5% 8 ,302,000 - 0.8%
Other Revenue
001 36430 SMALL STATE GRANTS 4 6,042 40,000 40,000 - 13.1% 4 0,000 0.0% 4 0,000 0.0%
001 36770 POLICE ARREST RECOVERY 2 1,220 1 6,000 20,000 - 5.7% 20,000 0.0% 2 0,000 0.0%
001 36780 ADMINISTRATIVE COST RVRY 1 52,807 90,000 1 51,000 - 1.2% 1 54,000 2.0% 96,000 - 37.7%
001 36800 CASH OVER/ SHORT 3 59 - - - 100.0% - -
001 36810 SALE OF SURPLUS PROPERTY 7 84,416 10,000 10,000 - 98.7% 1 0,000 0.0% 1 0,000 0.0%
001 36820 LPD DISPATCH REVENUE- PTWN 1 10,000 110,000 117,000 6.4% 122,000 4.3% 122,000 0.0%
001 36830 MISC FIRE DEPT REVENUE 1 38,428 2 ,000 63,000 - 54.5% 1 9,000 - 69.8% 1 9,000 0.0%
2
Two- Year Financial Plan
FY 2006- 2008
Fund Account No. & Description FY 04- 05 FY 05- 06 FY 05- 06 % Change FY 06- 07 % Change FY 07- 08 % Change
Actual Adopted Revised to Actual Projected to Revised Projected to Revised
Revised/ Projected
Summary of Revenue
001 36860 MISCELLANEOUS REVENUE 7 8,819 90,000 90,000 14.2% 9 0,000 0.0% 9 0,000 0.0%
001 36880 CLAIMS SETTLEMENT - 1,000,000 7 50,000 100,000 - 86.7% - - 100.0%
001 36890 PRIOR YEAR INCOME ADJUSTMENT 1 ,513 ( 1,000) ( 1,000) - 166.1% ( 1,000) 0.0% ( 1,000) 0.0%
001 36900 SO LIVERMORE TDR RECOVERY - 125,000 100,000 150,000 50.0% 1 00,000 - 33.3%
001 36910 CONTRIBUTION OUTSIDE SRCS 3 52,602 20,000 33,000 - 90.6% 3 3,000 0.0% 3 4,000 3.0%
001 36930 LEASE REVENUE - - - 125,000 125,000 0.0%
001 36960 INTERDEPTL REVENUE - 105,000 - - -
001 36970 MISC LPD REVENUE - - 16,000 16,000 0.0% 1 6,000 0.0%
001 36980 MISC. RESTITUTION - 16,000 - - -
Total Other Revenue 1 ,686,205 1,623,000 1,389,000 - 17.6% 8 78,000 - 36.8% 6 71,000 - 23.6%
TOTAL GENERAL FUND REVENUES 6 9,053,838 7 5,731,000 75,158,000 8.8% 79,510,000 5.8% 83,574,