Auburn City Council
May 9, 2022

1 AUBURN CITY COUNCIL

WORKSHOP

SPECIAL SESSION AGENDA
City Hall, Council Chambers
1225 Lincoln Way, Auburn, CA 95603
May 9, 2022
Special Session 5:00 p.m.

Meeting facilities are accessible to persons with disabilities. Requests for Assistive Listening Devices or other considerations should be made through the City Clerk’s Office at (530) 823-4211, Ext. #112 Note: This is a Workshop. No Authority action will be taken.

This Workshop of the City Council is being held pursuant to Government Code section 54953(e) related to teleconferencing of meetings. The Governor’s Proclamation of a State Emergency is still in effect and the City Council has made or will make the necessary findings under the law to hold teleconference meetings in this manner.

Proper notice was given for this meeting, all persons are permitted to join remotely and address the City Council directly, and the meeting will be delayed in the event of a Citycaused disruption. This meeting will be held in all respects according to the requirements of Government Code section 54953(e).
2 ways to participate: In person or on Zoom: https://us02web.zoom.us/j/81345650869 Telephone: US: +1 669 900 6833 Webinar ID: 813 4565 0869 3 ways to watch this meeting live: In person at City Hall, on our website under “Meetings & Agendas”, or on the City’s YouTube page:
https://www.youtube.com/channel/UCmZkDGdt8ce1ckCRgcX-15A/live Public comments are being accepted at [email protected] or 530-823- 4211 x112. You must indicate it is a public comment for this meeting.

CALL TO ORDER

ROLL CALL
Public Comment
This is the time provided so that persons may speak to the Council on any item on this agenda.

1. FISCAL YEARS 2022-23 & 2023-24 GENERAL FUND AND ARPA FUNDING

BUDGET WORKSHOP
Presentation on the proposed Fiscal Years 2022-23 and 2023-24 General Fund Budget and proposed American Rescue Plan Act (ARPA) Funding Strategy and provide feedback.
2 ADJOURNMENT
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office, 1225 Lincoln Way, Room 9, Auburn, CA 95603 during normal business hours.

To: Honorable Mayor and City Council Members
From: Nathan Bagwill, Administrative Services Director
Meeting Date: May 9, 2022
Business Type: Council Business
Subject: FISCAL YEARS 2022-23 & 2023-24 GENERAL FUND AND ARPA FUNDING BUDGET WORKSHOP.

The Issue
Budget workshop for the upcoming Fiscal Years 2022-23 and 2023-24 General Fund Budget and proposed American Rescue Plan Act (ARPA) Funding Strategy.

Conclusion and Recommendation
It is recommended the City Council hear a presentation on the proposed Fiscal Years 2022-23 and 2023- 24 General Fund Budget and proposed American Rescue Plan Act (ARPA) Funding Strategy and provide feedback.

Background
Staff is bringing forward an overview and proposal of the General Fund and ARPA funding strategy for the upcoming biennial budget for Fiscal Years 2022-23 and 2023-24.

The presentation was not available at the time of agenda publication.

City of Auburn
Fiscal Years 2022
‐23 and 23
‐24
Budget Overview
Key themes for investment
 Modernization of key processes and business practice.  One Time Revenues for One Time Expenses
 Investment Planning for our future
 Infrastructure Funding
A Visionary Budget with Strategic Focus
 Key Planning Updates Infrastructure and transportation Our business community Sustainability- Fiscal, economic and environmentalAuburn Airport Budget Synopsis
 Updates key general plan, zoning, circulation, services and utility planning documents
 Modernizes City financial, permitting, licensing, leasing, records, fee and data business practice
 Huge emphasis on Infrastructure management and implementation  Funds key public safety elements
 Pursuit of grant funding to leverage planning dollars, enhance public safety, fund airport projects, expand public safety
 Funds all Committee and Commission Projects
Planning
 General Plan Zoning Code Municipal Code Update Form Based Planning Downtown and Old Town Circulation Element/Pedestrian and Bike Plans Updates to key environmental documents Annexation Review Municipal Services Review Infrastructure
 Asset Management System
• Pavement Management System• Wastewater Collection• Storm Drains• Transportation• Facilities  Key Infrastructure Projects
• Major Storm Drain Project (Sunrise Ridge Circle/Crimson Court)• Police and Fire Capital improvements, new equipment for Fire Department.• $500k set-aside for both the Old Town Business Association and the Midtown Business Association
Modernization
 Data driven asset Management Updated Financial, Personnel and Interface Systems • Permitting• Licensing• Online• Project Management
 Scanning Project Traffic Data Collection (Police)
New Positions and Reclassification
Director of Community and Economic Development (Reclassification)Administrative Assistant – Economic Development/AirportPlanning Manager- City Engineering and Asset ManagementManagement Analyst- Airport Management/FAA GrantsManagement Analyst- Strategic Initiatives and Grants Proposed staffing enhancements are in support and development of revenue generating activity for the City and Community.

City of Auburn
Fiscal Years 2022-23 & 2023-24
Proposed Budget
City Council Budget Workshop
May 9, 2022 1
FY 2022-23 & 2023-24 Budget Workshop
- Discussion Outline -

1. Overview of Budget Development Process to Date2. Citywide Budget Strategic Priorities3. Budget Methodology4. General Fund Budget Summary/Forecast5. Strategic Use of One-Time ARPA Funding6. General Fund Reserves/Proposed Utilization of Fund Balance/Surpluses for One-Time Projects and Deferred Maintenance

7. Proposed Changes to Staffing Levels8. General Fund Revenue and Expenditure Summary9. Discretionary Support 2 FY’s 22-23 & 23-24 Proposed Budget
- Budget Development Process -
Budget Development Process to Date:
 Review and update of FY 2021-22 financial activity – mid-year report and budget development overview to City Council – March 14, 2022  Work with department heads to determine overall operating and capital / outlay needs consistent with citywide priorities / goals
 Preparation of a “baseline” budget based on recovery from COVID-19 Pandemic and citywide strategic priorities / goals
 General Fund/ARPA Funding Budget workshop with City Council and public – May 9, 2022
 General Fund Updates (as needed), Non-General Funds, Capital Improvement Plan – May 23, 2022
 Consider Citywide Budget for adoption for Fiscal Year 2022-23 & 2023-24 – June 13, 2022
3 FY 2022-23 & 2023-24 Proposed Budget
- Citywide Strategic Plan Budget Development
Priorities / Key Issues -
❖ High performing government with valued and effective employees. ❖ Fiscal Sustainability through revenues and economic prosperity. ❖ Maintaining a safe community, protecting health and welfare with a strong emphasis on fire prevention (community risk reduction). ❖ Quality Infrastructure and transportation. ❖ Preservation of Auburn- Small town charm ❖ Sustainability through environmental, planning, transit and economic programs ❖ Culture and entertainment ❖ A thriving Auburn Airport 4 FY’s 2022-23 & 23-24 Proposed Budget
Methodology
 Proposed budget maintains current levels of services for the community
 Incremental Budget Approach
 Start with baseline budget from PY Analyze trends & consider Dept requests for increases or decreases
 All positions are considered funded at 100% throughout the entirety of forecast unless otherwise noted
 Implement changes to baseline budget based on data-driven process and consistent with community and organizational needs/priorities. 5 FY’s 2022-23 & 23-24 Proposed General
Fund Budget Summary
 $33.7 Million in General Fund Expenditures
 FY22-23 $17M & FY23-24 $16.7M $4.3M Pension Costs over both FY’s  Debt Service/Normal Pension Costs/UAL
 $2M Proposed Use of GF Fund Balance for OneTime Projects 6 General Fund Forecast
7 U.S. Treasury Final Rule on ARPA Funds
 The final ruling from the United State Treasury that took effect on April 1, 2022 provided greater clarify and flexibility with regards to the allowable uses of American Rescue Plan Act (ARPA) funding.  The City of Auburn’s total ARPA allocation is well below the ten million designation and is able to utilize the one-time election for the entirety of the approx. $3.4M ARPA allocation.
8 Proposed ARPA Funding
Total ARPA Funding: $3.4M
FY2022-23: $1.6M * FY2023-24: $769K * FY2024-25: $100K
Amounts utilized/designated for one-time Staff bonuses: $340K *ARPA funds need to be programmed by FYE 2024 & Utilized by FYE 2026*Total proposed funding appropriations for one-time expenses: $2.8M*Remaining ARPA funding needing to be appropriated by FYE 2024: $600K 9 FY’s 2022-23 & 23-24 Proposed ARPA
Funding Summary
 ARPA Strategic Priorities aligned with Strategic Plan:
10 ❖ High performing government with valued and effective employees. ❖ Fiscal Sustainability through revenues and economic prosperity. ❖ Sustainability through environmental, planning, transit and economic programs ❖ Maintaining a safe community, protecting health and welfare with a strong emphasis on fire prevention (community risk reduction). ❖ Quality Infrastructure and transportation. ❖ Preservation of Auburn- Small town charm  Modernize and update workforce technology, workspace
and environment.
 Form-based code update, Records Management Program,
Municipal Code Update, Updates to Rates and Fee Structures  Improvements and updates to Traffic Collection data,
Police and Fire Capital improvements, new equipment for Fire Department.  Focus on Planning – Environmental Impact Review,
General Plan Update, Focus on Business Corridors
 $500k Capital for each the Old Town Business
Association and the Downtown Business Association
FY’s 2022-23 & 23-24 Proposed ARPA
Funding Summary
11 General Fund Forecast
12 - General Fund Reserve Levels -
 Total Projected General Fund – Fund Balance at Fiscal YearEnd 2022 (June 30, 2022: $7.11M (factors in CY carryover) Economic Contingency $2.7M Pension Stability Fund $1M Pre-Paid Insurance $300K  Of the $7.11 projected Fund Balance, $4M is set aside $3.1M Available for use.  Proposed use of General Fund – Fund Balance: $2M  Unassigned Fund Balance: $1.1M 13 FY 2021-22 Proposed Budget
- One-time Expenses -
 $1.4M – Sunrise Ridge Cir / Crimson Ct. Storm Drain Project ($700k in both FY’s of proposed budget)
 $157K – Fire Capital
Martin Park Fire Station UpgradesMaidu Fire Station HVAC Replacement/RepairGietzen Fire Station Improvements  $250k – Deferred Maintenance – Fire – SCBA $150K – Fire Truck Lease 14 General Fund Forecast
15 Staffing Levels
FY 2021-22 Staffing Changes
• 8.0 FTE Firefighters added to base• 2.0 FTE Administrative Assistants – City Manager / Public Safety
• 1.0 FTE Economic Development & Planning
Manager (shared cost)
• 1.0 FTE Human Resources Technician in
Administrative Services
• 1.0 FTE Dispatcher• 1.0 FTE Maintenance Worker (PW)• Reclassification of Public Works / Planning Director to Public Works Manager
• Reclassification of Transit Manager /
Analyst to Administrative Analyst
• Addition of 3.0 Limited Term Firefighters 16
FY 2022-23 Proposed Staffing
Changes
• 1.0 FTE Administrative Assistants –
Economic Development/Airport (shared cost)
• Reclassification of Economic Development
& Planning Manager to Director of Community and Economic Development (shared cost) • 1.0 FTE Management Analyst – City
Manager’s Office
• 1.0 FTE Public Works Manager – Engineer
(shared cost)
• 1.0 FTE Management Analyst – Airport
(Non-General Fund)
• Elimination of 3.0 Limited Term Firefighter
Positions
FY’s 2022-23 & 23-24 Proposed
Staffing Changes
17  Reclassification of Economic Development & Planning Manager to Director of Community and Economic Development (shared cost) - $19K  Focus on Economic Development/Long-Term Planning for City  1.0 FTE Administrative Assistants – Economic Development/Airport (shared cost between General and Airport Funds) - $41K
 Provide assistance/support to Economic Development and Airport operations  1.0 FTE Management Analyst – City Manager’s Office (shared cost) - $24K  Focus on Grants, Fee Analysis and Updates (City Services/Fees)  1.0 FTE Public Works Manager – Engineer (shared cost) – Non-General Fund  1.0 FTE Management Analyst – Airport – Non-General Fund  Elimination of 3.0 Limited Term Firefighter Positions FY’s 2022-23 & 23-24
Proposed Staffing Changes - Horizon
18  1.0 FTE Planning Technician
- $96K
 Proposed: Hire new position contingent upon new, sustainable revenue stream associated with increased rates/fees for permitting/building  2.0 FTE Police Department – Problem Orientated Policing - $206K  Proposed: Hire new positions contingent upon new, sustainable revenue stream.
 Possible Grant Funding Review at Mid-Year Budget Update and/or Bi-annual Update for implementation/fiscal feasibility
19 Type Amount Dept. Amount
Taxes 13,170,297 $ City Council 82,983 $
Franchises 678,720 Police 5,243,984Licenses 182,400 Fire 3,808,378Permits 217,700 Discretionary Support 177,290Fines & Forfeiture 72,100 Economic Dvlpmt 226,424Fees 126,000 Building Inspections 256,752Grants 110,474 Information Tech 448,407Interest & Rentals 349,000 Public Works 2,898,883Other Agencies 441,674 City Manager 393,041Other Revenues 21,250 City Clerk 146,069Transfers In 1,474,091 Admin Services 707,218 Planning 176,399City Attorney 275,500Insurance Program 971,493CalPERS Bonds/UAL 1,210,311 Total Revenues: 16,843,706 $ Total Expenditures: 17,023,131 $ General Fund Base Surplus - FY 2022-23: (179,425) $

GENERAL FUND
FY 2022-23 Revenue & Expenditure Base
Revenues Expenditures
20 Type Amount Dept. Amount
Taxes 13,454,016 $ City Council 84,740 $
Franchises 685,507 Police 5,245,729Licenses 183,305 Fire 3,444,710Permits 217,700 Discretionar y Sup 186,190
Fines & Forfeitures 72,100 Economic Dvlpm 227,994Fees 126,000 Building Ins pecti 253,055
Grants 110,474 Information Tec
h 452,246
Interest & Rentals 349,000 Public Works 2,829,093Other Agencies 441,674 City Manager 394,863Other Revenues 21,250 City Clerk 133,140Transfers In 1,087,091 Admin Services 732,608 Planning 175,608City Attorney 281,010Insurance Pro
gra
m 988,172
CalPERS Bonds
/ 1,343,682
Total Revenues: 16,748,116 $ Total Expendit
u $ 16,772,841
General Fund Base Surplus - FY 2023-24: (24,725) $

GENERAL FUND
FY 2023-24 Revenue & Expenditure Base
Revenues Expenditures
21 Type Amount Dept. Amount
Taxes 26,624,313 $ City Council 167,723 $
Franchises 1,364,227 $ Police 10,489,713 $ Licenses 365,705 $ Fire 7,253,088 $ Permits 435,400 $ Discretionary Support 363,480 $ Fines & Forfeiture 144,200 $ Economic Dvlpmt 454,418 $ Fees 252,000 $ Building Inspections 509,807 $ Grants 220,948 $ Information Tech 900,653 $ Interest & Rentals 698,000 $ Public Works 5,727,976 $ Other Agencies 883,348 $ City Manager 787,903 $ Other Revenues 42,500 $ City Clerk 279,209 $ Transfers In 2,561,181 $ Admin Services 1,439,826 $ Planning 352,007 $ City Attorney 556,510 $ Insurance Program 1,959,665 $ CalPERS Bonds/UAL 2,553,993 $ Total Revenues: 33,591,822 $ Total Expenditures: 33,795,972 $ Combined FY's 22-23 & 23-24 General Fund Base Surplus: (204,150) $

GENERAL FUND
COMBINED FY 2022-23 & 2023-24 Revenue & Expenditure Base Revenues Expenditures
22 $26,624,313
$1,364,227
$365,705
$435,400
$144,200
$252,000
$220,948
$698,000
$883,348
$42,500
$2,561,181
Taxes
Franchises
Licenses
Permits
Fines &…
Fees
Grants
Interest…
Other…Other…
Transfers…
General Fund Revenues FY's 20232‐23 & 2023‐24 Combined
Taxes Represent 79% of General Fund Income
Sales Tax is 48% of General Fund Income
General Fund Forecast
23 General Fund – CalPERS Costs
24 FY 2021-22 General Fund City Council Discretionary Support:
• Committees and Commissions; Community Contributions –• FY 2022: $135K FY2023: $177K FY2024: $ 186K  City Historian – Current Year: $500, FY23 & FY24 – No Change Arts Commission – Current Year: $36,500, FY23 $48,350, FY24 $58,750 Economic Development Commission – Current Year: $45,000, FY23 & FY24 $60k Annually
 Sustainability Advisory Committee – Current Year:$10K, FY23 & FY24 $19K Annually  Endurance Capital Committee – Current Year: $9,500, FY23 $14,500, FY24 $12,500  SHAAC – Current Year: $2,500, FY23 & FY24 – No Change Undesignated Sponsorships – Current Year: $7,500, FY23 & FY24 $8,900 Annually  ACTV and Library Contributions – Current Year: $12K each, FY23 & FY24 – No Change General Fund Discretionary Support
25 FY 2021-22 General Fund City Council Discretionary Support:
• Arts Commission – FY2023 Budget Request - $48,350
 School Park Preserve – Concerts, theater and dance Mosaic Mural for School Park Reserve Installation for Sculpture Art Park decorations and venue maintenance/improvements City Hall Gallery, Council Chambers Stage Events, Public Art Fund General Fund Discretionary Support
26 FY 2021-22 General Fund City Council Discretionary Support:
• Economic Development Commission – FY2023 Budget Request - $60,000  Market and Economic Development Study, Analysis & Data-driven Solutions • Sustainability Advisory Committee – FY2023 Budget Request - $19,000  Website Maintenance & Design Solid Waste Reduction and Organic Waste Stream Reduction Auburn Master Plan Support • Endurance Capital Committee – FY2023 Budget Request - $14,000  Event presence and promotional materials Central Square “Endurance Zone” Recognition Tile Water Bottle Filling Stations Marketing and Website Support General Fund Discretionary Support
27 Summary
28  Two-Year Proposed Budget for General Plan - $33.4M Expenditures ARPA Funding Strategy - $2.8M Proposed Programming, $600k flexibility for future/other use.
 Historically significant investment in Community, Critical Infrastructure and Foundational Enhancements/Updates to City’s General Plan, Municipal Code, Technology and Records Management  Aligned with City’s Strategic Plan Priorities as outlined by City Council Proposed Staffing enhancements designed to generate revenues and increase overall efficiency of operations and fiscal sustainability  Next Workshop – May 23, 2022
o General Fund Updates (as needed), Non-General Funds, Capital Improvement Plan
Questions?
29