AGENDA PACKET
Town of Atherton
City Council
MARCH 06, 2024
SPECIAL MEETING – STUDY SESSION
4:00 PM
Council Chambers
80 Fair Oaks Lane
Atherton, CA 94027
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This Agenda may not reflect the actual order of items. The order of items is subject to change based on Council action.
SPECIAL MEETING STUDY SESSION
ROLL CALL – DeGolia, Holland, Widmer, Vice Mayor Lewis , Mayor HawkinsManuelian PUBLIC COMMENT – Public Comments can be emailed directly to [email protected]
As a Special Meeting, Public Comment is limited to items that are on the Agenda. Speakers’ time is limited to three minutes. Speakers may also speak when the item comes up on the Agenda during the meeting.
ACTION ITEMS
STUDY SESSION
1. FY 2024/25 BUDGET KICKOFF AND OVERVIEW
Report: ROBERT BARRON III, FINANCE DIRECTOR
Recommendation: It is recommended that the Council review and discuss the item for feedback and direction.
Description: This will be the Council's first review and discussion of the FY24/25 Town budget. The Council will review and provide feedback and direction to staff.
2. CONSIDERATION OF APPROVAL OF A TASK ORDER AGREEMENT WITH INTERWEST CONSULTING GROUP FOR A FEASIBILITY ANALYSIS OF ROUNDABOUTS ON ALAMEDA DE LAS PULGAS
Report: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
Recommendation: It is recommended that the Council consider approval of a task order agreement with Interwest Consulting Group in an amount up to $34,830 for feasibility analysis of hillifdbAlddlPlAhAdSkbid
Meeting Agenda Packet – March 06, 2024
Recommendation: It is recommended that the Council review and discuss the item for feedback and direction.
Description: This will be the Council's first review and discussion of the FY24/25 Town budget. The Council will review and provide feedback and direction to staff.
2. CONSIDERATION OF APPROVAL OF A TASK ORDER AGREEMENT WITH INTERWEST CONSULTING GROUP FOR A FEASIBILITY ANALYSIS OF ROUNDABOUTS ON ALAMEDA DE LAS PULGAS
Report: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
Recommendation: It is recommended that the Council consider approval of a task order agreement with Interwest Consulting Group in an amount up to $34,830 for feasibility analysis of the installation of roundabouts on Alameda de las Pulgas at Atherton Avenue and at Stockbridge Avenue.
Description: This item will involve Council consideration and approval of a task order agreement with Interwest Consulting Group for feasibility analysis of the installation of roundabouts on Alameda de las Pulgas at Atherton Avenue and Stockbridge Avenue.
3. DEPARTMENT OF POLICE INTERNAL AUDIT AND INSPECTION REPORTS Report: STEVEN D. MCCULLEY, CHIEF OF POLICE
Recommendation: Review the annual audit and inspection reports and provide staff with feedback.
Description: This item involves council review and discussion of the annual audit and inspection reports.
COUNCIL REPORTS/COMMENTS
ADJOURN
PLEASE NOTE THE FOLLOWING INFORMATION:
If you challenge a Town zoning, planning, or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this agenda, or in written correspondence delivered to the Town at, or prior to, the public hearing. Judicial review of any Town administrative decision may be had only if a petition is filed with the court not later than the 90th day following the date upon which the decision becomes final. Judicial review of environmental determinations may be subject to a shorter time period.
Copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection by 5:00 p.m. the Friday before each regularly scheduled City Council meeting.
Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the City Clerk’s Office at (650) 7520500. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (29 CRF
35.104 ADA Title II)
Public Comments:
The Town of Atherton Council and Committee or Commission meetings are a limited public forum, and all public comment must relate to something that is within the subject matter jurisdiction of the Council or Committees. If comments do not relate to the subject matter jurisdiction of the Council or Committee, we will stop the comment and a warning may be providedIfthecommentcontinuestobeoutsideofthesubjectmatterjurisdictionthespeaker Meeting Agenda Packet – March 06, 2024
regularly scheduled City Council meeting.
Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the City Clerk’s Office at (650) 7520500. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (29 CRF
35.104 ADA Title II)
Public Comments:
The Town of Atherton Council and Committee or Commission meetings are a limited public forum, and all public comment must relate to something that is within the subject matter jurisdiction of the Council or Committees. If comments do not relate to the subject matter jurisdiction of the Council or Committee, we will stop the comment and a warning may be provided. If the comment continues to be outside of the subject matter jurisdiction the speaker will be stopped, and we will move on to the next speaker. Speakers found in violation of this rule of procedure may be removed from the meeting.
Meeting Agenda Packet – March 06, 2024
Item No. 1
Town of Atherton
CITY COUNCIL STAFF REPORT – STUDY SESSION
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
ROBERT BARRON III, FINANCE DIRECTOR
DATE: MARCH 6, 2024
SUBJECT: FY 2024/25 BUDGET KICK-OFF AND OVERVIEW
RECOMMENDATION
Review and Discuss.
BACKGROUND
The Budget Kick-Off Meeting is the first meeting in the FY 2024/25 Budget cycle. The Kick-Off Meeting is a high-level overview of the Budget and is not intended as a detailed discussion; instead, it focuses on a recap of the current Fiscal Year, current priorities, and identifies some of the Preliminary Budget Assumptions and introduces the 5-year Forecast. It provides a snapshot of future revenue and expenditure assumption based on information available through the County, State, and local information.
The Annual Budget serves as one of the most important policy documents of the City Council. It aligns the Town’s annual revenues with Goals and Objectives for the coming year. One of the Town’s core strategies is financial stability. The focus during budget preparations is maintaining operational and service needs. This includes creating a balanced budget that meets the Council’s Goals and Objectives while maintaining long-term financial stability.
The discussion overview includes the Town’s General Fund. It is the primary operating fund of the Town and most of the revenue to the fund comes from Property Taxes. The General Fund is also the single largest contributor to the Town’s Capital Improvement Fund for capital projects.
This staff report provides, in brief:
• An overview of the FY 2023/24 Year-End Projected Fiscal Condition (end of year projection)
• An overview of the Town’s Major Revenue Sources and 5-Year Forecasts • An overview of the Town’s Major Expenditure Categories and 5-Year Forecasts • An overview of the Budget Process and Policy Discussions
Budget Study Session FY 2024/25
March 6, 2024
Forecasted revenues and expenditures do not represent actual budget expectations year over year. These forecasts may change yearly due to local and state economic conditions. Forecasts serve only to evaluate budget assumptions. Below is the FY 2024/25 Budget Review Calendar for the coming months.
FY 2024/25 Budget Calendar
City Council Meeting
March 6, 2024 – Meeting #1
An overview of the FY 2023/24 Year-End Projected Fiscal Condition An overview of the Town’s Major Revenue Sources and 5-Year Forecasts An overview of the Town’s Major Expenditure Categories and 5-Year Forecasts An overview of the Budget Process and Policy Discussions City Council Study Session Meeting
April 3, 2024 – Meeting #2
Review and Discussion of the Operations Budget
City Council Study Session Meeting
May 1, 2024 – Meeting #3
Review and Discussion of the Special Funds & Capital Projects Budget City Council Study Session Meeting
June 5, 2024 – Meeting #4
Review and Discussion of the Final Draft Budget
& Special Revenues/Other Funds
City Council Regular Meeting
June 19, 2024 – Meeting #5
Adoption of the Final FY 2024/25 Budget
ANALYSIS
Attachment 1 is a Summary of Revenues and Attachment 2 is a Summary of Expenditures. Staff will review each attachment.
Fund and Reserve Balances
The General Fund is the Town’s primary operating fund and maintains reserve balances for emergencies, operating reserves, capital reserves and unallocated reserves. A portion of the Town’s General is set aside an Emergency Reserve. Emergency Reserves represent 15% of the actual annual General Fund operating expenditures each year.
The Town also has an Operating Reserve set aside at 15% of the actual annual General Fund operating expenditures each year. There is no defined use for the Operating Reserve other than set aside funding. These Reserves provided financial assurance to the Town’s lender for the COP. The City Manager does not have the discretion to utilize the Emergency Reserve or the Operational Reserve without specific City Council direction. Any remaining fund balance not reserved or
Budget Study Session FY 2024/25
March 6, 2024
committed is designated as Unallocated Fund Balance. This Unallocated Fund Balance represents funds that have not yet been assigned.
Budget Process and Policy Discussions
The budget process is done in stages to allow the City Council and public time to review the General Fund Operations Budget, the Capital Improvement Budget, Special Revenues, and Internal Service Funds. The budget process provides staff the opportunity to examine programs, propose changes in current Town services, outline operational needs and recommend capital outlay items to the City Council.
Budget Goals
As staff prepares the budget, staff will set goals for each department that continue to maintain or enhance the level of service throughout the community, while ensuring that the Town maintains its core strategy of fiscal stability. These goals are based on the overall Council Policy Goals.
POLICY FOCUS
The policy focus for this item is discussion and overview of the budget process, philosophy, and assumptions. There are policy areas for Council discussion and direction. Discussion includes budget revenue and expenditure assumptions, the use of excess ERAF, reserve policies, and a policy focus on the reduction of long-term liabilities.
GOAL ALIGNMENT
This report and its contents are in alignment with the following Council Policy Goals:
• Goal A – Maintain Fiscal Transparency
• Goal F – Be Forward-Thinking, Well-Managed, and Well-Planned
FISCAL IMPACT
None.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
The Town maintains a Fiscal Transparency web portal and includes all budget information on its website. Links to these various areas are below:
Budget Study Session FY 2024/25
March 6, 2024
Fiscal Transparency Web Page: http://www.ci.atherton.ca.us/index.aspx?NID=269 Archive of Town Budgets: http://www.ci.atherton.ca.us/index.aspx?nid=273 Financial Data Portal (OpenGov): http://www.ci.atherton.ca.us/index.aspx?nid=361 Financial Audit Archive: http://www.ci.atherton.ca.us/Archive.aspx?AMID=39&Type=&ADID= Actuarial Valuations Archive:
http://www.ci.atherton.ca.us/Archive.aspx?AMID=61&Type=&ADID= Labor Contracts, Agreements, and Salary/Benefit Information:
http://www.ci.atherton.ca.us/index.aspx?nid=192
ATTACHMENTS
1. Revenues
2. Expenditures
3. FY 2024/25 General Fund Five Year Forecast
ATTACHMENT 1
REVENUES
The FY 2023/24 Budget projected Total Property Tax Revenue at $15,126,271 – a slight decrease over projected revenues ($2,593).
• Secured and Unsecured Property
Tax increased $181,900 for the
fiscal year.
• Property Tax in lieu of VLF
decreased ($184,493). (VLF
Shortfall)
The VLF shortfall has become
serious concern as the County and
local agencies look to the State
Legislature to include these funds
in the State Budget. The Town has
solicited our legislative lobbyist Joe
A. Gonsalves and team to assist with
legislative efforts.
Mid-Year Budget adjustments were made in the amount of $440,00. These were identified as onetime expenditures related to operations and maintenance needs that included IT Support services, Police overtime, Building contract services, park event management services, and survey consultant services.
• FY 2023/24 General Fund revenues are projected at $25.2m (inclusive of ERAF $2.63m). • FY 2023/24 General Fund expenditures are projected at $20.24m. • Net mid-year adjustments included $440,000.
• Transfers Out of $6.751m for CIP and Annual COP Debt Service.
The projected year-end fund balance for FY 2023/24 is $11,997,543, well above the Town’s reserve requirements for FY 2023/24.
Projected FY 2023/24 Ending Fund Balance $11,997,543
Required 15% Emergency Reserve ($3,037,291)
Required 20% Contingency Reserve ($3,037,291)
TOTAL RESERVE REQUIREMENT ($6,074,582)
General Fund Unallocated Balance $5,922,960
ATTACHMENT 1
Major Revenue Sources and 5-Year Forecasts
Property Tax Revenue
Property Taxes comprise about 70% of the total General Fund Revenues. Since FY 2011/12, the Town has seen an Assessed Property Value growth of ~7.63% per year. The highest growth year was FY 2015/16 at 9.0% and the lowest growth year of FY 2021/22 at 5.68%. In 2022 there were 92 full-value sales in Atherton, whereas in 2023, the Town saw 57 full-value sales. The median price for homes is down 4.75% from the previous year.
Tax Year Assessed Property Value Growth Year over Year
2011/12 $6,373,832,577
2012/13 $6,949,217,818 9.03%
2013/14 $7,575,935,532 9.02%
2014/15 $8,068,565,397 6.50%
2015/16 $8,791,201,962 9.00%
2016/17 $9,512,555,665 8.21%
2017/18 $10,220,091,841 7.44%
2018/19 $10,941,160,453 7.06%
2019/20 $11,664,530,505 6.61%
2020/21 $12,376,059,220 6.10%
2021/22 $13,078,821,692 5.68%
2022/23 $14,227,857,062 8.79%
2023/24 $15,386,937,386 8.15%
Atherton’s changes in property values are based mainly on CPI growth, prior year transfer of ownership, residential remodels, and new construction on razed properties. The Town’s Property Tax Consultant HdL Companies suggests that the Town use a conservative projection of 4.5%-
5.5% increase in Property Tax revenues. This is a combination of the projected CPI growth plus a review of sales, and construction activity that will come online in the next assessment period. For the 5-year forecast, staff projected a 4.5% increase in FY 2024/25 and FY 2025/26; a 5% increase in FY 2026/27; and 5.5% increase in FY 2027/28 and FY 2028/29. These are conservation projections that can be adjusted year over year based assessed value growth.
Building Permit & Planning Revenues
Building permit revenue is another major revenue source for the Town. Total revenue includes the basic building permit fee (calculated based a valuation per square foot); various flat fees for plumbing, mechanical and electrical permits; grading and drainage permits; and plan check fees.
Building Permit and Plan Check Fees are valuation-driven fees. Valuation-driven fees, such as Building Permit fees and Plan Check fees are based on building construction activity.
The Town completed its comprehensive fee study and adopted updates to the Town’s Master Fee Schedule. The new fees have an effective date of March 23, 2024. It is anticipated that there will be revenue increases across the community development departments. Most of the fees were set at full cost recovery. The FY 2024/25 Budget will include revenue projections based on the proposed Master Fee Schedule updates and on projected work volume, where feasible.
ATTACHMENT 1
With the increase in fees and projected building activity slowing, the forecast is set at 4% for FY 2024/25; 3% in FY 2025/26 and FY 2026/27; and 2% in FY 2027/28 and FY 2028/29.
Educational Revenue Augmentation Fund (ERAF)
The Town does not include ERAF revenues as operational revenue. Instead, the Town uses ERAF to help reduce long-term liabilities and fund one-time capital project needs. Over the years, ERAF has been used for the Town Center Project, debt service, the reduction of other long-term pension obligations, and recently as an allocation to the Town’s Capital Improvement programs. The use of ERAF is a year-to-year decision by the City Council as part of the budget process.
From FYs 2013/14 to FY 2015/16, the Town allocated $3,211,958 of ERAF funds toward Council priorities related to retiree healthcare and pension liabilities. ERAF revenues received from FYs 2016/17 to FY 2021/22 were directed to the Town Center Project – a total of $10,002,346.
Fiscal Year Budget Amount Actual Amount Use of Funds
FY 2013/14 $700,000 $1,020,000 OPEB Liabilities
FY 2014/15 $700,000 $1,125,000 $680,684 – OPEB Liabilities $444,316 – Workers’ Comp
FY 2015/16 $1,200,000 $1,066,958 $112,998- WC Equity
$548,950- CalPERS UAL
$405,010- Additional CIP
FY 2016/17 $1,033,000 $1,103,185 Town Center
FY 2017/18 $1,066,958 $1,280,172 Town Center
FY 2018/19 $1,025,000 $1,691,772 Town Center
FY 2019/20 $1,300,000 $1,784,091 Town Center
FY 2020/21 $1,312,500 $1,863,658 Town Center
FY 2021/22 $1,100,000 $2,279,468 Town Center
FY 2022/23 $2,316,000 $2,339,064 Additional allocation CIP ERAF revenue for FY 2023/24 was $2,633,605. This is an increase of $333,605 over the budget amount of $2,300,000. This is the highest ERAF that the Town has ever received. ERAF is a product of State legislative tax shifts (related to property tax and school guaranteed revenue levels).
The State Legislature is making changes to its methodology and changing the minimum guaranteed funding level for schools. It is anticipated that the State will introduce legislation that requires jurisdictions to backfill the State’s VLF obligations using Excess ERAF. It is anticipated that if the State is successful in this shift that schools will be made whole with VLF obligated funds, the State will reimburse the VLF shortfall with ERAF funds and the ERAF funds will ultimately be reduced or eliminated. Staff recommends that for projection purposes, FY 2024/25 ERAF revenue be estimated at $2.5m. This is a slight increase from the previous $2.3 estimate for FY2023/24.
ATTACHMENT 1
These three major revenues represent the primary revenues for the Town. Below is a table that reflects 5-year projections for these three revenue sources.
Major Revenues
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Property Taxes $15,804,583 $16,515,789 $17,341,579 $18,295,366 $19,301,611 Building Fees $2,203,280 $,2,269,018 $2,334,729 $2,381,224 $2,428,648 Excess ERAF $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Total Revenues $20,507,863 $21,284,807 $22,176,308 $23,176,590 $24,230,259 During the budget process staff reviews and projects other significant revenues to ensure there is adequate funding to meet operational service levels. Except for Planning Revenue (4%), these revenues reflect projected increases of 1% to 2%; and/or projections based on historical amounts received in the 5-year forecast. The following table reflects the projections of other significant revenue sources.
Other Significant Revenues
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Sales & Use Tax $417,282 $425,628 $434,140 $442,823 $451,679 Franchise Fees $1,077,120 $1,093,277 $1,104,210 $1,115,252 $1,126,404 Business License $289,272 $293,611 $296,547 $299,513 $302,508 Planning Revenue $871,312 $897,451 $924,375 $942,862 $961,720 DPW Revenue $664,700 $683,420 $702,702 $715,942 $729,446 Park
Program Revenue $114,870 $116,593 $117,759 $118,937 $120,126 Other Revenue $1,699,896 $1,715,923 $1,732,036 $1,748,527 $1,765,407 Total Revenues $5,134,452 $5,225,903 $5,311,769 $5,383,856 $5,457,290
ATTACHMENT 2
EXPENDITURES
The 5-Year Projections for Salaries and Benefits are shown below. The Town has one bargaining unit, the Atherton Police Officers Association. There are annual adjustments associated with this Memorandum of Understanding based on an agreed upon CPI range. The amounts below do not represent any assumed contractual labor adjustment (i.e. CPI or negotiated benefit increases). For purposes of the forecast, staff used assumptions between 3% and 4%.
Salaries & Benefits
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Administration $923,409 $960,345 $993,957 $1,023,776 $1,054,489 Finance $625,456 $650,474 $673,241 $693,438 $714,241
Building $254,524 $264,705 $273,970 $282,189 $290,655
Police $7,149,963 $7,435,961 $7,696,220 $7,927,106 $8,164,919 DPW $655,682 $681,909 $705,776 $726,949 $748,757
Total $9,609,034 $9,993,394 $10,343,164 $10,653,458 $10,973,061 Because the Town uses a wide variety of contract services, the most significant portion of expenditures within the department budgets are Professional Services and Other Technical Services. These expenditure categories represent a variety of contract services, software licensing, and basic operational costs. These are built into the projection table below and represent services such as building and safety services, maintenance services, park event services, tree maintenance, legal services, planning services, IT services, and animal control services. Services provided under contract are not Town staff. Basic budget assumptions for the General Operations expenditure budgets are 3% to 4.5% year to year in the forecast. FY 2024/25 and FY 2025/26 forecast 4.5% increases; FY 2026/27 projects 3.5%; and FY 2027/28 and FY 2028/29 projects 3%.
Operational Expenditures
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Council 72,121 75,366 78,004 80,344 82,754
Administration 408,158 426,525 441,454 454,697 468,338
Attorney 323,950 338,528 350,376 360,888 371,714
Finance 229,722 240,214 248,187 255,633 263,302
Planning 1,426,813 $1,168,886 1,215,642 1,264,267 1,314,838 Building 1,312,997 1,372,081 1,420,104 1,462,707 1,506,589 Inter-department 1,152,156 1,204,003 1,246,144 1,279,622 1,311,379 Police 1,908,571 1,994,457 2,064,263 2,126,191 2,189,977 DPW 3,026,045 3,162,217 3,272,895 3,371,082 3,465,582
Total Amount $9,860,420 $9,982,277 $10,337,069 $10,655,431 $10,974,473 Pension Liabilities
In November 2021 the CalPERS Board adopted a new investment return assumption of 6.8%. This was triggered by CalPERS Funding Risk Mitigation Policy (FRMP) which sets thresholds to be used when investment returns outperform the discount rate. In FY 2020/21 the investment return of the pension funds was 21.3%. It was during this time the CalPERS Board selected a portfolio
ATTACHMENT 2
that would provide a projected rate of return of 6.8% while balancing risk and reward on investments. The new discount rate took effect July 2022 and is set for the next several years at
6.8%. The effect of these changes is a gradual increase in the required contributions for UAL and Normal Cost increases. In FY 2023/24 the Normal Cost increased 1.57% for Miscellaneous Employees (non-sworn) and 3.45% for Public Safety Employees (sworn). There was a reduction in the UAL for FY 2023/24 that also reflected the 21.3% investment return in FY 2020/21. The FY 2023/24 UAL decreased $45,242.
• The employer contribution rate set by CalPERS for Miscellaneous Employees (non-sworn) is 12.63% in FY 2023/24 and in FY 2024/25 the rate changes to 12.67%. • The employer contribution rate set by CalPERS for Public Safety Employees (sworn) is
29.09% in FY 2023/24 and in FY 2024/25 the rate changes to 29.30% in FY 2024/25.
The UAL for the Town in FY 2024/25 increased $330,084 compared to last year’s estimates. It is important to note that rates of return are reflective in CalPERS actuary reports two years after occurrence. The 2022/23 investment return was 6.2% and will first impact employer contribution rates for public agencies in fiscal Year 2025/26.
In April 2022, the City Council directed staff to allocate $5 million toward the Town’s Unfunded Accrued Liability (UAL) for the Public Safety Classic Plan. CalPERS allows employers to make Additional Discretionary Payments (ADP’s) at any time and any amount. Optional ADP payments serve to reduce the Town’s UAL and future required contributions. This can result in significant long-term savings. Prior to the ADP of $5 million, the FY 2022/23 current minimum required employer contribution towards the UAL for this plan was $1,172,082. The estimated UAL was as follows:
CalPERS UAL Contribution UAL FY
2022/23
UAL FY
2023/24
UAL FY
2024/25
UAL FY
2025/26
UAL FY
2026/27
Public Safety UAL $1,172,082 $1,235,697 $1,323,634 $1,380,442 $1,434,332 Public Safety UAL w/$5m ADP $815,591 $817,530 $797,300 $748,300 $696,300 Difference – Savings $356,491 $418,167 $526,334 $632,142 $738,032 Making the $5m contribution reduced the Public Safety UAL for FY 2022/23 to $815,591 and a net savings of $356,491. The updated UAL payments at the time showed that the savings over time were estimated at $2.67m. CalPERS’ updated Actuarial Report (6/30/2022) reflects a different savings projection.
CalPERS UAL Contribution UAL FY
2022/23
UAL FY
2023/24
UAL FY
2024/25
UAL FY
2025/26
UAL FY
2026/27
Public Safety UAL $1,172,082 $1,235,697 $1,323,634 $1,380,442 $1,434,332 Public Safety UAL w/$5m ADP Actual &
Projection Updated
$815,591 $813,210 $1,019,974 $1,116,000 $1,208,000
Difference – Savings $356,491 $422,487 $303,660 $264,442 $226,332 This recent CalPERS Actuary report as of June 30, 2022, reveals updated UAL payments showing above that the savings are now estimated at $1.57 million over time. The reduction is due to CalPERS Actuarial changes to the rate of return and CalPERS’ actual returns. While the contribution to the Town’s UAL was a prudent financial decision, the impact was not as significant
ATTACHMENT 2
as anticipated due to actuarial changes by CalPERS. The investment return was a negative 6.1% FY 2021/22 and in FY 2022/23 the return was 6.2% combined with a reduction of discount rate from 7.0% to 6.8%. The Town’s estimated Unfunded Actuarial Liability (UAL) payments (minimum annual payments to CalPERS) for Classic and PEPRA members combined look as follows:
Unfunded Accrued Liability Payments
Plans FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Miscellaneous $536,074 $578,600 $620,200 $654,000 $728,000 Public Safety $1,034,310 $1,137,000 $1,236,000 $1,317,000 $1,495,000 Total $1,570,384 $1,715,600 $1,856,200 $1,971,000 $2,223,000 With CalPERS’ discount rate of 6.8% and this year’s preliminary return of 6.2%, the estimated overall funded status CalPERS Pension stands at 72%. The Town’s FY 2022/23 net pension liability is $17.8m (local miscellaneous and public safety). This is an increase of $5.62m from the previous year. Staff will continue to present the CalPERS Actuarial Reports to the Finance Committee and work with CalPERS actuary to continue to review and discuss pension liabilities.
Debt Service Lease Payments
The Town issued COP Lease Financing of $7.68m for cash flow purposes for the Town Center Project. The COP is a ten (10) year financing tool with a five (5) year call option and average annual debt service of approximately $861,871. The first semi-annual payment began in December 2020. Including FY 2023/24 the Town has made $3.42m in payments on the COP Lease. If desired, the Town can exercise the call option in June 2025 and pay off the COP. However, current Council direction is to retain the 2.1% interest rate on the lease payments and continue making the semiannual payments until conclusion in FY 2029/2030. The call option estimated payment amount is $4.3m. Through term, the total lease financing payments is $8.6m of which includes interest of $915k.
Capital Projects
Capital Projects will be addressed in detail at Meeting #3 – May 1. Capital projects focus on streets & transportation, drainage, and Town Buildings & Park Facilities. Staff is still reviewing priority projects from the various Master plans for Council review and discussion. Master plans were last completed approximately ten years ago and some of the priority projects have been completed.
Funding sources for capital projects are the following:
General Fund Library Funds
Capital Improvement Fund Channel Funds
Measure A, Measure W, & Measure M Surface Transportation Funds Gas Tax Donations (Town Center)
MTC transportation Funds Remaining Parcel Tax
Revised
Town of Atherton Factor Table FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund 101 Factor-Property 0.045 0.045 0.050 0.055 0.055 Revenue & Expenditures 5-Yr Proj Factor-Building 0.040 0.030 0.030 0.020 0.020 Factor-Oth-Low 0.020 0.020 0.020 0.020 0.020
Factor-Oth-High 0.020 0.015 0.010 0.010 0.010
Salary+Benefits 0.040 0.040 0.040 0.040 0.040
Other Admin 0.040 0.040 0.040 0.040 0.040
Planning 0.030 0.030 0.030 0.030 0.030
Property Tax W/O ERAF 6.25% 4.50% 4.50% 5.00% 5.50% 5.50% Revised
Account Description Actual Actual Actual Actual Actual Actual Budget 2023-2024
2017-2018 2018-2019 2019-20 2020-21 2021-22 2022-23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Revenues
101-00-40001-000 Secured 8,080,982 8,662,522 9,269,350 9,834,557 10,480,500 11,000,972 12,246,530 12,797,624 13,373,517 14,042,193 14,814,513 15,629,312 101-00-40002-000 Unsecured 434,767 433,425 455,718 437,101 410,649 451,071 467,641 488,685 510,676 536,209 565,701 596,815 101-00-40004-000 SB 813 Redemption (supplementa 255,995 299,345 244,902 324,085 328,318 406,915 332,325 347,280 362,907 381,053 402,010 424,121 101-00-40006-000 Property Tax In Lieu of VLF 1,096,821 1,174,444 1,196,646 751,425 1,264,027 1,873,858 1,371,507 1,433,225 1,497,720 1,572,606 1,659,099 1,750,350 101-00-40008-000 ERAF Subvention - 0 0 0
101-00-40010-000 Unsecured SB813 Redemp/Suppl 4,246 6,276 565 669 3,468 - - - - 0 101-00-42005-000 Property Transfer Tax 447,096 440,871 444,416 702,515 748,980 506,554 706,000 737,770 770,970 809,518 854,042 901,014 Total Property Taxes 10,319,908 11,016,883 11,611,597 12,050,352 13,232,475 14,242,837 15,124,003 15,804,583 16,515,789 17,341,579 18,295,366 19,301,611 101-00-41001-000 Sales & Use Tax General 225,389 250,391 260,617 128,929 196,263 186,270 289,100 294,882 300,780 306,795 312,931 319,190 101-00-41002-040 Prop 172 Sales Tax for Police 87,766 92,919 92,773 98,406 108,747 113,868 120,000 122,400 124,848 127,345 129,892 132,490 101-00-41004-000 In Lieu Sales Tax/Trip Flip - 0 0 0 0
Total Sales Taxes 313,155 343,309 353,389 227,335 305,011 300,138 409,100 417,282 425,628 434,140 442,823 451,679
92.1% 109.6% 102.9% 64.3% 134.2% 98.4% 136.3% 102.0% 102.0% 102.0% 102.0% 102.0% 101-00-42001-000 Franchise Taxes-PG&E 240,215 237,574 255,629 266,694 262,941 299,959 305,000 311,100 315,767 318,924 322,113 325,335 101-00-42002-000 Franchise Tax-Cal Water 142,588 149,310 149,353 167,916 169,099 185,997 189,000 192,780 195,672 197,628 199,605 201,601 101-00-42003-000 Franchise Tax-Garbage 309,812 328,957 351,889 341,303 434,648 408,432 415,000 423,300 429,650 433,946 438,285 442,668 101-00-42004-000 Franchise Taxes-Cable 140,845 103,702 165,641 132,467 102,734 169,021 147,000 149,940 152,189 153,711 155,248 156,801 Total Franchise Fees 833,461 819,542 922,513 908,381 969,422 1,063,409 1,056,000 1,077,120 1,093,277 1,104,210 1,115,252 1,126,404 100.1% 98.3% 112.6% 98.5% 106.7% 109.7% 99.3% 102.0% 101.5% 101.0% 101.0% 101.0% 101-00-40005-000 Homeowners Exemption 35,227 34,661 34,012 33,785 34,008 33,988 35,000 35,700 36,414 37,142 37,885 38,643 101-00-40007-000 Motor Veh. Lic Fees (MVLF) 3,763 3,425 5,596 5,157 7,988 7,156 5,700 5,814 5,930 6,049 6,170 6,293 Total Intergovernmental 38,990 38,086 39,608 38,942 41,996 41,143 40,700 41,514 42,344 43,191 44,055 44,936
99.8% 97.7% 104.0% 98.3% 107.8% 98.0% 98.9% 102.0% 102.0% 102.0% 102.0% 102.0% 101-00-43001-000 Business Licenses 240,031 227,679 261,350 264,162 253,779 269,739 283,600 289,272 293,611 296,547 299,513 302,508 Total Business License Tax 240,031 227,679 261,350 264,162 253,779 269,739 283,600 289,272 293,611 296,547 299,513 302,508
99.7% 94.9% 114.8% 101.1% 96.1% 106.3% 105.1% 102.0% 101.5% 101.0% 101.0% 101.0% 101-00-47001-000 Home Occupation Permit 600 300 300 200 300 300 312 321 331 338 344 101-00-47019-020 Zoning & Planning Fees 230,129 191,067 219,237 231,510 288,979 321,042 405,000 871,000 897,130 924,044 942,525 961,375 Total Planning Revenue 230,729 191,367 219,537 231,710 289,279 321,042 405,300 871,312 897,451 924,375 942,862 961,720
93.0% 82.9% 114.7% 105.5% 124.8% 111.0% 126.2% 215.0% 103.0% 103.0% 102.0% 102.0% 5-Year Projection
ATTACHMENT 3
Town of Atherton Factor Table FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund 101 Factor-Property 0.045 0.045 0.050 0.055 0.055 Revenue & Expenditures 5-Yr Proj Factor-Building 0.040 0.030 0.030 0.020 0.020 Factor-Oth-Low 0.020 0.020 0.020 0.020 0.020
Factor-Oth-High 0.020 0.015 0.010 0.010 0.010
Salary+Benefits 0.040 0.040 0.040 0.040 0.040
Other Admin 0.040 0.040 0.040 0.040 0.040
Planning 0.030 0.030 0.030 0.030 0.030
Property Tax W/O ERAF 6.25% 4.50% 4.50% 5.00% 5.50% 5.50% Revised
Account Description Actual Actual Actual Actual Actual Actual Budget 2023-2024
2017-2018 2018-2019 2019-20 2020-21 2021-22 2022-23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 5-Year Projection
101-00-47002-025 Building Permit Fee 1,165,834 1,090,343 832,533 1,185,419 1,141,371 961,859 1,340,000 1,393,600 1,435,408 1,478,470 1,508,040 1,538,200 101-00-47004-025 Grading & Drainage 67,340 58,936 59,128 80,054 59,281 60,562 130,000 135,200 139,256 143,434 146,302 149,228 101-00-47021-025 Plan Check Fee 553,541 391,289 386,144 438,926 408,671 389,786 510,000 530,400 546,312 562,701 573,955 585,434 101-00-47030-025 Tree Removal Plan Check 66,079 55,503 47,129 61,540 61,043 84,574 127,000 132,080 136,042 140,124 142,926 145,785 101-00-47050-025 Penalty No Building Permit 5,509 31,894 10,394 10,207 12,000 12,000 12,000 10,000 10,000 10,000 Total Building Revenue 1,852,795 1,596,071 1,330,443 1,797,832 1,680,760 1,506,988 2,119,000 2,203,280 2,269,018 2,334,729 2,381,224 2,428,648 106.0% 86.1% 83.4% 135.1% 93.5% 89.7% 140.6% 104.0% 103.0% 102.9% 102.0% 102.0% 101-00-44001-040 Municipal & Vehicle Code Fines 16,779 11,289 4,335 1,822 6,331 8,944 6,100 6,222 6,346 6,473 6,603 6,735 101-00-44002-040 Other Fines & Forfeiture (County) 38,354 48,280 30,459 44,118 55,349 56,449 56,000 57,120 58,262 59,428 60,616 61,829 101-00-45007-040 POST Reimb 12,218 16,750 32,571 9,127 10,292 26,145 17,300 17,646 17,999 18,359 18,726 19,101 101-00-47005-040 Other Licenses & Permit 5,246 5,480 6,297 3,255 6,431 2,382 4,140 4,223 4,307 4,393 4,481 4,571 101-00-47009-040 Photocopy Fee 362 178 212 204 130 184 150 153 156 159 162 166 101-00-47011-040 Alarm Sign Fees 1,363 3,917 1,400 1,440 2,660 1,280 1,500 1,530 1,561 1,592 1,624 1,656 101-00-47012-040 Vehicle Release 1,240 1,075 741 2,176 2,498 473 1,000 1,020 1,040 1,061 1,082 1,104 101-00-47013-040 Police Report 1 1 15 - - - - -
101-00-47014-040 Fingerprinting Fee 75 - 160 - - - - -
101-00-47016-040 Special Service Fee 10,712 7,058 2,742 8,788 9,797 10,000 10,200 10,404 10,612 10,824 11,041 101-00-47017-040 Solicitor's Permit 124 31 - - - - -
101-00-47046-040 Alarm Permit Fee 20,141 5,100 5,100 48,350 122,500 122,500 122,500 122,500 122,500 122,500 101-00-47049-040 False Alarm Fees 32,700 8,100 8,000 8,160 8,323 8,490 8,659 8,833 101-00-48501-040 Donation/Contribution - 306 306 235,000 235,000 235,000 235,000 235,000 235,000 101-00-48502-040 Miscellaneous Income 117 1,961 2,620 386 657 132 - - - - - 101-00-48505-040 SRO Reimbursement 80,000 75,000 100,000 100,000 100,000 100,000 100,000 100,000 Total Police Revenue 87,350 181,983 176,519 67,934 131,110 162,541 561,690 563,774 565,899 568,067 570,279 572,534 # 122.5% 208.3% 97.0% 38.5% 193.0% 124.0% 345.6% 100.4% 100.4% 100.4% 100.4% 100.4% 101-00-45005-050 C/CAG AB 1546-vehicle regst fee - 7,859 - - - - - 101-00-45016-058 DOC-Cal Recylce Grant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 101-00-45019-050 ABAG Grant - - - - - -
101-00-45021-053 Highway Maint Reimbursement 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 101-00-47003-050 Encroachment 437,971 622,526 424,393 654,992 591,210 422,281 600,000 624,000 642,720 662,002 675,242 688,746 101-00-47052-050 Chargepoint Charging Stations 1,748
Total DPW Revenue 473,671 658,226 432,252 695,692 631,910 464,730 640,700 664,700 683,420 702,702 715,942 729,446 ATTACHMENT 3
Town of Atherton Factor Table FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund 101 Factor-Property 0.045 0.045 0.050 0.055 0.055 Revenue & Expenditures 5-Yr Proj Factor-Building 0.040 0.030 0.030 0.020 0.020 Factor-Oth-Low 0.020 0.020 0.020 0.020 0.020
Factor-Oth-High 0.020 0.015 0.010 0.010 0.010
Salary+Benefits 0.040 0.040 0.040 0.040 0.040
Other Admin 0.040 0.040 0.040 0.040 0.040
Planning 0.030 0.030 0.030 0.030 0.030
Property Tax W/O ERAF 6.25% 4.50% 4.50% 5.00% 5.50% 5.50% Revised
Account Description Actual Actual Actual Actual Actual Actual Budget 2023-2024
2017-2018 2018-2019 2019-20 2020-21 2021-22 2022-23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 5-Year Projection
117.5% 139.0% 65.7% 160.9% 90.8% 73.5% 137.9% 103.7% 102.8% 102.8% 101.9% 101.9% 101-00-47022-058 Social Fees 84,298 93,275 85,074 14,581 89,026 85,487 35,000 60,700 61,611 62,227 62,849 63,477 101-00-47023-058 Meeting Fees 36,854 21,677 7,830 478 - - - - - - 101-00-47025-058 Class Fees 26,860 19,995 20,166 - 7,260 8,278 15,000 15,300 15,530 15,685 15,842 16,000 101-00-47028-058 Weddings 27,000 29,487 30,500 19,573 19,499 22,186 10,000 20,200 20,503 20,708 20,915 21,124 101-00-47029-058 Park Day Use Fee 10,375 12,375 6,280 11,288 16,327 15,234 8,500 18,670 18,950 19,140 19,331 19,524 101-00-47033-058 Catering Service Fee 7,139 34,839 6,000 - - - - - 101-00-47039-058 Park Rev-Admin 30% Non-Resident 28,944 33,120 30,182 9,346 19,171 8,784 - - - - - 101-00-47040-058 Park Rev-Admin 15% Resident 6,705 2,925 2,526 338 5,970 1,515 - - - - - Total Park Program Revenue 221,036 212,854 182,558 55,603 164,391 176,322 74,500 114,870 116,593 117,759 118,937 120,126
98.3% 96.3% 85.8% 30.5% 295.7% 107.3% 42.3% 154.2% 101.5% 101.0% 101.0% 101.0% 101-00-44003-000 Heritage Tree Damage Fee 6,400 48,870 95,820 37,313 136,260 35,400 40,000 40,800 41,616 42,448 43,297 44,163 101-00-40004-000 C & D Deposit Forfeited 268,113 601,547 27,600 322,600 655,900 874,200 1,250,000 500,000 500,000 500,000 500,000 500,000 101-00-45016-000 DOC Grant 20,678 .
101-00-45016-025 DOC Grant 5,000 5,000 - - - -
101-00-45019-000 Grant - 10,000 25,000 - - - - -
101-00-45020-000 Other Reimbursements 17 5,006 2,599 23,916 - - - - - 101-00-47005-000 Other Licenses & Permit - 6,141 - - - - - 101-00-47005-012 Other Licenses & Permit 2,100 1,950 2,325 974 2,100 1,800 1,200 1,500 1,500 1,500 1,500 1,500 101-00-47009-000 Photocopy Fee - 652 - - - - -
101-00-47031-030 Tree Inspection Fee 26,532 28,396 36,541 39,780 36,442 32,159 44,000 65,560 66,871 68,209 69,573 70,964 101-00-47036-030 Admin Citation (code enforcement) 44,900 84,200 76,700 114,850 10,300 113,100 98,000 99,960 101,959 103,998 106,078 108,200 101-00-47038-000 Banner Permit Fee 2,663 1,875 2,400 1,763 2,025 1,725 2,200 2,244 2,289 2,335 2,381 2,429 101-00-47045-000 Drone Application Fee 5,550 150 250 750 765 780 796 812 828 101-00-48001-000 Interest Income 190,679 726,088 570,793 (89,438) (518,658) 323,053 240,000 244,800 249,696 254,690 259,784 264,979 101-00-48002-000 Cell Antenna Lease 55,858 58,651 56,390 64,663 67,896 70,775 73,606 74,816 77,809 80,921 84,158 87,525 101-00-48003-000 Property Rental - Playschool 82,153 85,512 73,303 41,668 67,154 53,420 50,533 55,000 55,825 56,383 56,947 57,516 101-00-48004-000 Sale of Property 350 - - - - -
101-00-48005-000 Post Office 7,207 6,751 2,127 2,628 1,690 1,852 2,700 2,754 2,809 2,865 2,923 2,981 101-00-48501-000 Donations/Contributions 3,377 100 1,000 - - - - - 101-00-48502-000 Miscellaneous Income 5,786 10,104 10,164 45,027 7,747 2,300 2,346 2,381 2,405 2,429 2,453 101-00-48507-000 Settlement/Claims - 6,638 4,619 13,423 28,721 3,983 4,063 4,144 4,227 4,311 4,398 101-00-48508-000 COVID-19 RELIEF FUND 297 86,813
101-00-48510-000 Atherton 2020 Lease COP 7,680,000 169 - - - - - 101-00-48515-000 Rule 20A Funds 642,521
Total Misc. Revenues 706,965 1,660,748 8,638,723 1,304,142 527,064 1,550,092 1,858,188 1,094,608 1,107,679 1,120,777 1,134,193 1,147,937 173.7% 234.9% 520.2% 15.1% 40.4% 294.1% 119.9% 58.9% 101.2% 101.2% 101.2% 101.2% Total Operating Revenues 15,318,089 16,946,749 24,168,488 17,642,085 18,227,196 20,098,982 22,572,781 23,142,315 24,010,711 24,988,076 26,060,444 27,187,549 ATTACHMENT 3
Town of Atherton Factor Table FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund 101 Factor-Property 0.045 0.045 0.050 0.055 0.055 Revenue & Expenditures 5-Yr Proj Factor-Building 0.040 0.030 0.030 0.020 0.020 Factor-Oth-Low 0.020 0.020 0.020 0.020 0.020
Factor-Oth-High 0.020 0.015 0.010 0.010 0.010
Salary+Benefits 0.040 0.040 0.040 0.040 0.040
Other Admin 0.040 0.040 0.040 0.040 0.040
Planning 0.030 0.030 0.030 0.030 0.030
Property Tax W/O ERAF 6.25% 4.50% 4.50% 5.00% 5.50% 5.50% Revised
Account Description Actual Actual Actual Actual Actual Actual Budget 2023-2024
2017-2018 2018-2019 2019-20 2020-21 2021-22 2022-23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 5-Year Projection
Expenditures
FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 City Council Department 111,327 43,638 27,116 50,108 48,972 58,211 69,015 72,121 75,366 78,004 80,344 82,754 Administration Department 774,241 795,819 875,808 854,155 1,086,144 1,362,821 1,354,479 1,331,567 1,386,870 1,435,411 1,478,473 1,522,827 City Attorney Department 167,712 225,011 388,662 252,020 242,338 282,725 310,000 323,950 338,528 350,376 360,888 371,714 Finance Department 666,077 701,754 768,780 805,458 835,390 842,674 866,652 855,065 890,688 921,428 949,071 977,543 Planning Department 281,801 266,525 296,502 453,479 402,922 937,248 1,674,819 1,426,813 1,168,886 1,215,642 1,264,267 1,314,838 Building Department 1,275,633 1,191,448 1,095,558 1,331,719 1,284,442 1,171,569 1,604,829 1,567,521 1,636,787 1,694,074 1,744,897 1,797,243 Inter-dept 461,119 624,018 892,801 800,379 816,792 942,222 1,102,542 1,688,230 1,782,603 1,866,344 1,933,622 2,039,379 Police Department 6,796,760 7,494,480 7,621,569 8,309,741 14,055,499 9,021,928 9,584,827 10,092,844 10,567,418 10,996,483 11,370,297 11,849,896 Public Works Department (adj) 1,518,890 1,649,833 1,666,529 1,641,026 1,881,250 2,221,437 3,681,445 3,681,727 3,844,126 3,978,670 4,098,030 4,214,339 Total Operating Expenditures 12,053,559 12,992,527 13,633,325 14,498,085 20,653,749 16,840,834 20,248,608 21,039,838 21,691,273 22,536,432 23,279,889 24,170,535
0.0% 0.0% 0.0% 0.0% 120.2% 103.9% 103.1% 103.9% 103.3% 103.8% Excess (Deficiency) of
Revenues Over Expenditures 3,264,530 3,954,222 10,535,163 3,144,001 (2,426,554) 3,258,148 2,324,173 2,102,477 2,319,438 2,451,644 2,780,555 3,017,013 Other Financing Sources/(Uses)
Special Parcel Tax Fund Support Saf 372,000 - - - - -
Trsfr in/(out) Tennis Fund - - - - - -
Trsfr in/(out) OPEB
Trsfr in/(out) CIP (165,000) (2,532) (1,350,000) (3,340,000) (5,890,000) Trsfr in/(out) Road Impact Fee Fund -
ERAF 1,280,172 1,691,772 1,784,091 1,863,658 2,488,713 2,339,065 2,633,605 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Trsfr in/(out) COP DEBT SERVICE (92,118)
COVID-AMERICA RESCUE PLAN 1,707,322
Bayfront Canal Leaseback Funds 1,350,000
Trsfr in/(out) Workers Compensation (357,140) (235,397) (110,000) 2020 COP Lease Payment (837,930) (861,871) (861,871) (861,871) (861,871) (861,871) (861,871) (861,871) (861,871) Transfer out Const.406-COP Funds (1,551,164) (5,965,635) (3,640,557) (1,189,037) Trsfr in/(out) Facilities Construction F - (6,192,783) (8,924,190) Total Transfers In/(Out) 1,037,914 1,453,844 (6,069,856) (13,864,098) (306,393) (3,051,844) (4,118,266) 1,638,129 1,638,129 1,638,129 1,638,129 1,638,129 -33.9% 140.1% -417.5% 228.4% 2.2% 996.1% 134.9% -39.8% 100.0% 100.0% 100.0% 100.0% ATTACHMENT 3
Town of Atherton Factor Table FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 General Fund 101 Factor-Property 0.045 0.045 0.050 0.055 0.055 Revenue & Expenditures 5-Yr Proj Factor-Building 0.040 0.030 0.030 0.020 0.020 Factor-Oth-Low 0.020 0.020 0.020 0.020 0.020
Factor-Oth-High 0.020 0.015 0.010 0.010 0.010
Salary+Benefits 0.040 0.040 0.040 0.040 0.040
Other Admin 0.040 0.040 0.040 0.040 0.040
Planning 0.030 0.030 0.030 0.030 0.030
Property Tax W/O ERAF 6.25% 4.50% 4.50% 5.00% 5.50% 5.50% Revised
Account Description Actual Actual Actual Actual Actual Actual Budget 2023-2024
2017-2018 2018-2019 2019-20 2020-21 2021-22 2022-23 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 5-Year Projection
Incr/(Decr) of Bldg Dept Operating Reserve - - - - - -
Incr/(Decr) of General Fund Reserve 4,302,444 5,408,066 4,465,308 (10,720,097) (2,732,947) 206,304 (1,794,093) 3,740,606 3,957,567 4,089,773 4,418,684 4,655,144 Net Change in Fund Balance 4,302,444 5,408,066 4,465,308 (10,720,097) (2,732,947) 206,304 (1,794,093) 3,740,606 3,957,567 4,089,773 4,418,684 4,655,144 Beginning Fund Balance 12,862,560 17,165,004 22,573,069 27,038,377 16,318,280 13,585,333 13,791,637 11,997,544 15,738,150 19,695,717 23,785,490 28,204,174 Ending Fund Balance 17,165,004 22,573,069 27,038,377 16,318,280 13,585,333 13,791,637 11,997,544 15,738,150 19,695,717 23,785,490 28,204,174 32,859,317
87.0% 131.2% 125.1% 120.8% 118.6% 116.5%
Fund Balance Schedule
Building Reserve 505,000 505,000 505,000 - - - - - -
15% Emergency Reserve 1,808,034 1,948,879 2,044,999 2,174,713 3,098,062 2,526,125 3,037,291 3,155,976 3,253,691 3,380,465 3,491,983 3,625,580 Reserve to pay off side funds
15% Reserve 2,410,712 2,598,505 2,726,665 2,899,617 3,098,062 2,526,125 3,037,291 3,155,976 3,253,691 3,380,465 3,491,983 3,625,580 Reserved for ARP -
Available Fund Balance 12,441,258 17,520,685 21,761,713 11,243,950 7,389,209 8,739,387 5,922,962 9,426,199 13,188,335 17,024,560 21,220,207 25,608,157 Ending Fund Balance 17,165,004 22,573,069 27,038,377 16,318,280 13,585,333 13,791,637 11,997,544 15,738,150 19,695,717 23,785,490 28,204,174 32,859,317
87.0% 131.2% 125.1% 120.8% 118.6% 116.5%
ATTACHMENT 3
Item No. 2
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: ROBERT OVADIA, PUBLIC WORKS DIRECTOR
DATE: MARCH 6, 2024
SUBJECT: CONSIDERATION OF APPROVAL OF A TASK ORDER
AGREEMENT WITH INTERWEST CONSULTING GROUP FOR A
FEASIBILITY ANALYSIS OF ROUNDABOUTS ON ALAMEDA DE
LAS PULGAS
RECOMMENDATION
It is recommended that the Council consider approval of a task order agreement with Interwest Consulting Group in an amount up to $34,830 for feasibility analysis of the installation of roundabouts on Alameda de las Pulgas at Atherton Avenue and at Stockbridge Avenue.
BACKGROUND
The Alameda de las Pulgas corridor which connects Redwood City to Menlo Park and Palo Alto, through the Town of Atherton, and unincorporated San Mateo County is a high traffic corridor that serves as a north-south alternate to El Camino Real. Pass-through traffic has been measured to be between 60% to 89% of the overall traffic volume. Residential streets are impacted as commuters attempt to find alternative routes around congested roadways during peak hours, particularly around the Atherton Avenue intersection which is four-way stop controlled.
The Alameda de las Pulgas corridor was evaluated in two separate studies in 2019. The Alameda de las Pulgas Corridor Traffic Study reviewed existing conditions along Alameda de las Pulgas and recommended several improvements, both within and outside of Town limits. The Local Traffic Flow/Long Range Planning Solutions Study evaluated existing traffic operations and origin-designation patterns and recommended short- and long-term measures for efficient circulation. Additionally, it has been determined through these studies that the all-way stop intersection of Atherton Ave and ADLP currently operates at a level of service (LOS) F with delays up to 92 seconds during the peak hours and that signalizing this intersection will improve operations to LOS B with projected delays less than 18 seconds. The corridor study also advised that a roundabout at the Atherton Avenue intersection would also significantly reduce vehicle delays. Though a full analysis was not completed, in consideration of the limited right-of-way at
Alameda de las Pulgas Roundabout Feasibility Study
MARCH 6, 2024
the intersection, the study recommended the installation of a traffic signal rather than a roundabout at the intersection.
In one-on-one discussions related to the Alameda de las Pulgas Traffic and Safety Improvements project, the City Council expressed an interest in further evaluating the feasibility of a traffic circle or mini-roundabout at both Atherton Avenue and Stockbridge Avenue.
ANALYSIS
Staff solicited a cost proposal from Interwest Consulting Group to evaluate the feasibility of installing full size and mini roundabouts at the Alameda de la Pulgas / Atherton Avenue intersection and the Alameda de la Pulgas / Stockbridge Avenue intersection. The analysis would account for the existing bikeway on Alameda de las Pulgas, the proposed bikeway on Atherton Avenue as outlined in the Bicycle and Pedestrian Master Plan, as well as pedestrian facilities at both intersections.
The cost to analyze both intersections with both options was proposed at $34,830. Should the Council desire to analyze only one intersection, the cost would be $22,640. If the desire is to only evaluate one option at each intersection, the estimated cost would be $38,260, and approximately $18,370, if only one option were evaluated at one intersection.
FISCAL IMPACT
The cost of the feasibility study for both intersections is $34,830.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal Area A – Maintain Fiscal Responsibility
• Goal Area B – Preserve Small Town Character and Quality of Life • Goal Area D – Manage Circulation and Improve Safety
POLICY FOCUS
The Council policy focus should be on the desire to improve public, pedestrian, and bicycle safety, and traffic flow along the Alameda de las Pulgas corridor.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo
Alameda de las Pulgas Roundabout Feasibility Study
MARCH 6, 2024
Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. Interwest Consulting Group Cost Proposal
Scope of Services
Roundabout Feasibility Study
in the City of Atherton, CA
This Cost Proposal is submitted to the City of Atherton for a feasibility study to convert two existing intersections to roundabouts as an option to improve traffic flow and safety. The two study intersections are listed as follows:
• Alameda de las Pulgas & Atherton Avenue
• Alameda de las Pulgas & Stockbridge Avenue
Intersection A: Alameda de las Pulgas / Atherton Avenue
Intersection B: Alameda de las Pulgas / Stockbridge Avenue Detailed tasks for both intersections are noted below:
Task 1 – Project Management and Site Visit
• Conduct kick off conference call with City staff.
• Prepare monthly invoices and progress reports.
• Attend virtual meetings as needed.
• Conduct site visit to the study intersections.
• Coordinate with County for the shared Stockbridge intersection.
Task 2 – Data Collection
• Obtain turning movement counts and crash data for the study intersections.
Task 3 – Traffic Operations and Crash Data Review
• Conduct traffic operations analysis and identify appropriate lane configurations for roundabout traffic control at the study intersections.
Consideration of multi-modes (Bike, Walk, Truck) will be incorporated. • Conduct sensitivity analysis to evaluate roundabout traffic operations performance at both study intersections as traffic demand increases in the future.
• Review crash data to identify crash patterns or trends. • Document findings and review with city staff.
Task 4 – Conceptual Exhibits Preparation (2 Options each) • Prepare a concept sketch for each study intersection depicting a mini-roundabout and neighborhood traffic circle type configuration. The conceptual design will include accommodation of bicycle and pedestrian traffic at each intersection based off the City’s Pedestrian and Bicycle Masterplan
• Show travel paths and key channelization.
• Review findings and concept with city staff.
Task 5 – Right-of-Way (ROW) Needs Assessment
• Obtain right of way maps to establish approximate right of way constraints. • Prepare exhibits showing right-of-way needs for the various options.
Task 6 – Utility Relocation Assessment
• Obtain Utility maps from the Agency to determine the possibility of any utility relocation due to the proposed geometrics of the Roundabout at each intersection.
Task 7 – Full Project Cost Estimation
• Using latest market data, create bill of quantities and corresponding cost estimates for each intersection option.
• Include estimated full project costs (Design, PM, CM, Testing etc.).
PROJECT BUDGET
Task Labor Expenses Total
Task 1
Project
Management
$5,850 $5,850
Task 2 Data
Collection $1,220 $1,000 $2,220
Task 3
Traffic
Operations
and Crash
Data Review
$5,560 $500 $6,060
Task 4
Conceptual
Exhibits
Preparation
(2 Options
each)
$13,200 $500 $13,700
Task 5 ROW
Needs
Assessment
$2,000 $2,000
Task 6 Utility
Relocation
Assessment
$2,000 $2,000
Task 7 Full
Project Cost
Estimation
$3,000 $3,000
Totals $32,830 $2,000 $34,830
Notes:
The above is a Not To Exceed (NTE) cost proposal for 2 study intersections with 2 options each (mini-roundabout and neighborhood traffic circle). If the City chooses to proceed with only one of the intersection, then the cost would be $22,640 NTE.
Item No. 3
Town of Atherton
CITY COUNCIL STAFF REPORT – STUDY SESSION
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: STEVEN D. MCCULLEY, CHIEF OF POLICE
DATE: MARCH 6, 2024
SUBJECT: DEPARTMENT OF POLICE INTERNAL AUDIT AND
INSPECTION REPORTS
RECOMMENDATION
Review the annual audit and inspection reports and provide staff with feedback.
BACKGROUND/ANALYSIS
The purpose of police department annual audits is to ensure transparency, accountability, and the effective functioning of law enforcement agencies. These audits serve several important reasons:
Ensure Adherence to Policies and Procedures:
• Annual audits verify that the police department is operating in accordance with established policies, procedures, and legal standards.
Identify Non-Compliance:
• Identify any instances of non-compliance and take corrective actions to address any deviations from established protocols.
Enhance Accountability:
• Audits provide an external review mechanism to hold the police department accountable for its actions and decisions.
Prevent Abuse of Power:
• Regular audits help prevent the misuse or abuse of law enforcement powers by ensuring adherence to ethical and legal standards.
Identify Training Needs:
PD Annual Internal Audits/Inspections
03-06-2024
• Identify areas where additional training or development may be necessary for personnel.
Evaluate Operational Efficiency and Readiness:
• Assess the efficiency and effectiveness of police operations to ensure the department is adequately addressing public safety concerns and is ready to respond to all hazards.
Identify Areas for Improvement:
• Identify operational areas that may require improvement or optimization.
Build Community Trust:
• Demonstrates a commitment to transparency, fostering trust between the police department and the community.
Identify Areas for Enhancement:
• Audits highlight areas where the police department can improve its operations, policies, and procedures.
Facilitate Continuous Learning:
• Encourage a culture of continuous improvement by learning from audit findings and implementing necessary changes.
Ensure Legal Compliance:
• Confirm that the police department operates within the legal framework and complies with federal, state, and local laws.
Risk Mitigation:
• Identify and mitigate legal risks associated with law enforcement activities.
In summary, police department annual audits serve as a proactive measure to uphold the highest standards of professionalism, ethics, and accountability. They contribute to the overall goal of maintaining public safety while building and maintaining trust between law enforcement and the residents of Atherton. These include:
● Automated License Plate Reader (ALPR) Camera Audit
● ALPR System Analysis Report
PD Annual Internal Audits/Inspections
03-06-2024
● Body Worn Camera Audit
● Evidence and Property Audit
● Firearms Audit and Weapons Inspections
● K-9 Program Audit
● Officer Inspections
● Reserve Officer Unit Audit
● Taser Audit
● Vehicle Inspection Audit
● Administrative Investigations Review
● Racial and Identity Profiling Act (RIPA) Compliance Audit ● Residential Alarm Monitoring Program Report
● Video Surveillance System Audit
● Unmanned Aerial System (Drone) Audit
FISCAL IMPACT
There is no fiscal impact related to this staff report.
GOAL ALIGNMENT
Goal E – Strengthen Community Engagement and Transparency Goal F – Be a Forward-Thinking, Well-Managed, Well-Planned Town
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
PD Annual Internal Audits/Inspections
03-06-2024
This item ____ has or __X___ has not been before a Town Committee or Commission. ____ Audit/Finance Committee (meets every other month)
____ Bicycle/Pedestrian Committee (meets as needed)
____ Civic Center Advisory Committee (meets as needed)
____ Environmental Programs Committee (meets every other month) ____ Park and Recreation Committee (meets each month)
____ Planning Commission (meets each month)
____ Rail Committee (meets every other month)
____ Transportation Committee (meets every other month) ____ Tree Committee (meets each month)
ATTACHMENTS
1. Automated License Plate Reader (ALPR) Camera Audit [Will be provided with PD Annual Report]
2. ALPR System Analysis Report [Will be shared separately]
3. Body Worn Camera Audit
4. Evidence and Property Audit
5. Firearms Audit and Weapons Inspections
6. K-9 Program Audit
7. Officer Inspections
8. Reserve Officer Unit Audit
9. Taser Audit
10. Vehicle Inspection Audit [Will be shared separately]
11. Administrative Investigations Review [Will be shared separately]
12. Racial and Identity Profiling Act (RIPA) Compliance Audit
13. Residential Alarm Monitoring Program Report
14. Video Surveillance System Audit
15. Unmanned Aerial System (Drone) System Audit