Brentwood City Council
May 28, 2024

MAY 28, 2024, 5:30 PM

SPECIAL CITY COUNCIL AGENDA
CITY COUNCIL CHAMBERS, 150 CITY PARK WAY
*IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING PARTICIPATION* City Council Members will be participating from the Council Chamber. Members of the public are invited to attend and participate at: the Council Chambers, 150 City Park Way, Brentwood CA As a courtesy and technology permitting, members of the public may provide remote public comment during public hearings and on business items via the City’s Zoom Platform. However, the City cannot guarantee that the public’s access to teleconferencing technology will be uninterrupted, and technical difficulties may occur from time to time. In those instances, so long as the public may still attend the meeting in person, the meeting will continue. In addition, the Zoom participation option is provided to the public as a courtesy in order to facilitate participation. If Zoom participation is not enabled, the meeting will continue with public attendance in person only. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.

HOW PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:

1. IN PERSON:
a. Members of the public can provide in-person comments in the Council Chambers.

Members of the public are encouraged, but not required, to fill out a speaker card. The Council Chambers will have seating available for members of the public to attend in person up to full seating capacity.

2. REMOTE (if enabled): Remarks by members of the public participating via Zoom are limited to speaking on items listed under public hearings; business items; and requests for future agendas items, existing requests. Zoom participation during the general public comment period will not be accepted, except in the event a City Council Member is participating remotely under the provisions of Government Code § 54953 (f). a. Zoom: www.brentwoodca.gov/vcc or Zoom Webinar ID: 760 1397 0037 b. Zoom Phone Numbers. Dial Toll Free: (833) 548-0276 or (833) 548-0282 or (877) 853-5247.
c. During the meeting, each period for public comment will be announced, and participants may use the “Raise Hand” feature on Zoom to request to speak. (If you need instructions on how to use this feature, please contact the City Clerk by noon of the meeting date at [email protected] or 925.516.5182.)

3. E-MAIL
a. Public comments can also be submitted via e-mail to [email protected].

Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council via email before the meeting,

2. posted online for public inspection at www.brentwoodca.gov/meetings and

3. later summarized in the meeting minutes.
b. As e-mails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your e-mail.

4. TO WATCH OR LISTEN ONLY:
a. The public may view the meeting via one-way video feed by selecting the video option at the City Council Agendas’ link on the City webpage at www.brentwoodca.gov or via the City’s YouTube Channel: https://www.youtube.com/c/cityofbrentwoodca

CITY COUNCIL SPECIAL MEETING AGENDA
Zoom Webinar ID: 760 1397 0037

May 28, 2024, 5:30 p.m.

City Council Chambers
150 City Park Way
Brentwood, CA 94513
City Council Zoom Link
A. CALL TO ORDER & ROLL CALL
B. PLEDGE OF ALLEGIANCE
C. BUSINESS ITEMS
Following the staff presentation of Agenda Item C.1, and before direction is provided, public comment will be taken on this agenda item.

C.1 Conduct a Workshop on the Draft FY 2024/25 - 2025/26 Operating Budget and provide direction, if any, to staff.

D. ADJOURNMENT
Any disclosable public records related to an agenda item for the open session of this meeting distributed to all or a majority of the City Council less than 72 hours before this meeting is available for inspection at City Hall, located at 150 City Park Way, during normal business hours.

These writings will also be available for review at the City Council meeting in the public access binder in the entrance of the City Council Chambers.

Public comments received after 3:00 p.m. of the meeting date, but prior to the start of the meeting, will be emailed to the City Council, posted online at www.brentwoodca.gov/councilmeetingonline within one day following the meeting, and will be summarized in the meeting minutes.

The Closed Captioning provided via Zoom is auto generated. It is not the official record and is provided as a convenience.

NOTICE
In compliance with the Americans with Disabilities Act, the meeting room is wheelchair accessible and disabled parking is available at the City Hall parking lot. If you are a person with a disability and you need disability-related modifications or accommodations to participate in this meeting, please contact the City Clerk's Office at (925) 516-5440 or fax (925) 516-5441. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. {28 CFR 35.102-35, 104 ADA Title II}

POSTING STATEMENT
On May 23, 2024, a true and correct copy of this agenda was posted on the City Hall Bulletin Board, outside City Hall, 150 City Park Way, Brentwood, CA 94513 and at our website www.brentwoodca.gov
A complete packet of information is available for public review at City Hall or on our website at www.brentwoodca.gov
2024/25 ‐ 2025/26 Operating
Budget Workshop
• Operating Budget Overview
• General Fund Ten‐Year Fiscal Model
• New and Significant Costs• Budget Watch and Next Steps 1

Two–Year
Budget Process
• Budget Ad Hoc Committee
• CIP Workshop• Operating Budget Workshop
• CIP Budget Adoption• Operating Budget Adoption
2

FY 2024/25 Citywide Revenues
$305.9 Million
3

FY 2024/25 Citywide Expenditures
$378.8 Million
4 Citywide Expenditures are larger than Citywide Revenues as several significant
capital projects are
planned in FY 2024/25 that are
funded by balances
that have been built
up over prior years
for this purpose.

FY 2023/24 General Fund Year End
Projection
5 $800,000 Surplus• 50% used for Pension Paydown• 50% to Budget Stabilization Fund

General Fund 2024/25 ‐ 2025/26
6 Potential Two‐Year
Cumulative Surplus
$1.6 Million

FY 2024/25 General Fund Revenues
$76.9 Million
7

FY 2024/25 General Fund Expenditures
$78.1 Million
8

General Fund Reserves
9 Projected Budget Budget
6/30/2024 6/30/2025 6/30/2026
30% Reserve $ 22,523,201 $ 23,413,904 $ 24,512,165Other BalancesPolice Department 5th Beat 2,363,275 2,363,275 1,363,275 Successor Agency Payment Plan 2,087,999           ‐ 687,303 Future Capital Projects 1,000,000 1,000,000 1,000,000
Brentwood Blvd                 ‐ 678,000                    ‐ General Plan Update 428,700 740,600 1,055,900
Carryover Strategic Plan Initiatives 374,616                 ‐                    ‐City Council Redistricting in 2030 100,000 125,000 150,000 Subtotal 7,032,590 4,916,178 3,569,175
Total $ 29,555,791 $ 28,330,082 $ 28,081,340

General Fund Ten‐Year Fiscal Model
• Ensure Long‐term Financial Sustainability
• Assists in Developing the Operating Budget
• Indicate General Financial Direction• Conservative Forecast 10 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2023/24
Operating
Budget
Projection
2024/25 ‐ 2025/26
Draft Operating
Budget
Fiscal Model

General Fund Ten‐Year Fiscal Model
11

Proposed
New Costs
12

General Fund
13 • New Position
• Community Development
Code Enforcement Officer
• Strategic Plan Budget
Carryovers
Strategic Initiative Budget CarryoversEconomic Development Brentwood Boulevard and Downtown Incentives $110,000 City-Owned Parcel Plan 79,616 Community Development
General Plan Conservation and Open Space Policies 115,000General Plan Implementation Status Update 70,000 Total Carryover $374,616

General Fund
14 • Special Events
• One‐time $30,000, Ongoing $45,000‐Juneteenth
• Sidewalk Repair Program Expansion
• One‐time $110,000, Ongoing $100,000
• Utilities
• $127,000 in first budget year
• Parks and Recreation
• One‐time $38,000, Ongoing $106,000

General Fund
15 • Permit Center Safety Project
• One‐time $75,000
• County Services
• Animal Services, Library Services, Election Costs
• Contractual Services and Recruitment Advertising
• One‐time $48,000, Ongoing $72,000
• Contribution to Other Agencies
• Family Justice Center
• Ongoing $28,000

Enterprise Funds
16 RevenuesNew Positions• 5 Wastewater Operations• 2 Solid Waste Operations• 1  Wastewater/Water/Solid Waste

Enterprise Funds
17 Water Enterprise Fund
• Regulatory Reporting Software – One‐time $196,000, Ongoing $79,000 • Urban Water Plan – One‐time $85,000• Storage Structure – One‐time $275,000 • Budget Carryover for Vehicle Upgrade ‐ One‐time $170,000 • Water/Wastewater/Solid Waste
• Utility Billing Lobby Safety Project ‐ One‐time $21,000

Other Funds
18 Agricultural Land and Administration Funds• Contractual Services – one‐time $100,000 • Carryforward Strategic Initiative Budget – One‐time
$175,000
Capital Infrastructure Fund• Carryforward Economic Incentive Program Budget ‐ $2.2 million

Other Funds
19 Vehicle and Equipment Replacement Fund• Carryover Replacement Budget – One‐time $115,000Fleet Maintenance Fund• Maintenance Software – One‐Time $77,000 , Ongoing $18,000
Budget Stabilization Fund• Pension Paydown – One‐Time $4.0 million

Budget Watch
• Economic Uncertainty
• Inflation• Labor Contracts
• Costco Timing• CalPERS Investment Returns
• Taxpayer Protection and
Government Accountability Act Ballot Measure
20

CIP Adoption
• On Tonight’s Agenda
Operating Budget Adoption
• June 2024
Mid‐Year 2024/25 Operating Budget Review
• January 2025
21

Questions?
22

MEMORANDUM

Date: May 21, 2024
To: Honorable Mayor and City Council
Tim Ogden, City Manager
Department Heads
From: Kerry Breen, Director of Finance and Information Systems Christine Andrews, Assistant Director of Finance and Information Systems
Subject: 2024/25 – 2025/26 Operating Budget Workshop
_________________________________________________
The City’s 2024/25 – 2025/26 Operating Budget Workshop is scheduled for May 28, 2024 at 5:30 p.m. The workshop will include a presentation on the draft 2024/25 – 2025/26 Operating Budget (“Budget”) followed by time for City Council questions, public input and Council direction. In addition to discussing the upcoming two-year Budget, staff will also present the City Council with a year-end projection for fiscal year (FY) 2023/24, along with an updated ten-year General Fund Fiscal Model (“Fiscal Model”), which incorporates all of the programs, activities, projects and revenues from the proposed Budget.

The draft Budget generally carries over existing City services and programs and provides the funding necessary to maintain established City services levels. Detail regarding the City’s ongoing operations and their associated costs can be found in the accompanying draft Budget document. Rather than discussing the continuation of existing services, the purpose of this memo is to provide the City Council and the public with a high-level overview of the draft Budget with a focus on significant changes, cost increases and new budgetary requests up for consideration. In addition, the memo also summarizes the City’s financial condition and its long-term fiscal outlook, and how the proposed Budget fits within the long-term fiscal sustainability plan.

On April 4, 2024, the FY 2024/25 – 2025/26 Budget Review Committee (“Committee”) held a meeting with Finance Department staff and reviewed the proposed draft Budget, General Fund FY 2023/24 year-end projection, two-year General Fund Budget projection, General Fund Reserves, and significant changes, cost increases and new budgetary requests. The Committee conducted a thorough review of all topics, asked detailed questions and provided staff with the recommendation to present the Budget at the workshop for full City Council consideration.

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Any direction given by the City Council at the workshop will be incorporated into the final Budget, which is scheduled to be presented to the City Council for consideration of approval on June 25, 2024. Following adoption, the Budget will be reviewed at a City Council meeting at least twice per year. The City Council, by majority vote, may also amend the Budget at any time during the year.

This memo consists of the following sections:

I. General Fund:

A. Current Year - 2023/24 Year End Projection
B. 2024/25 – 2025/26 Budget Summary
C. Ten-Year General Fund Fiscal Model Outlook
D. General Fund Expenditures
E. General Fund Reserves

II. Other Funds:

A. Staffing Requests
B. Enterprise Funds
C. Other Funds
III. Budget Watch
A. Economic Uncertainty
B. Labor Contracts
C. CalPERS Investment Returns
D. Costco
Exhibit:

A. Ten-Year General Fund Fiscal Model Summary

I. General Fund
A. Current Year – 2023/24 Year End Projection
At the January 2024 mid-year budget update, staff projected a FY 2023/24 General Fund surplus of approximately $0.5 million, after setting aside the required 30% reserve and not including the potential impact of favorable year-end fair market value investment gains. At that time, the City Council directed staff to establish a $1.1 million reserve for a General Plan Update project expected to commence in the two-year budget timeframe.

After establishing the reserve, the General Fund result was projected to be approximately break-even for the fiscal year when including likely investment gains.

Subsequently, at the April 2024 Capital Improvement Program (CIP) workshop, City Council gave direction to postpone the Comprehensive General Plan Update project to future years and repurpose $1.0 million of the General Fund reserve for future capital projects. A reservation of about $300,000 a year will be set aside for an update that is now planned for FY 2028/29.

After setting aside the $1.0 million for future capital projects, and applying the latest financial data available, the projected FY 2023/24 General Fund surplus is expected to be approximately $0.8 million. The estimated surplus is after ensuring that the General Fund 30% reserve requirement continues to be met. In accordance with City

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Council policy, half of any actual surplus would be used to paydown unfunded pension obligations and half would be transferred to the City’s Budget Stabilization Fund.

B. 2024/25 – 2025/26 Budget Summary
The City’s financial forecast continues to show stability as the U.S. economy remains resilient. The largest General Fund revenue sources are property and sales tax. Property taxes are forecast to grow at a slow pace in the first year of the budget, as the housing market has cooled following rapid price and interest rate increases. Sales tax growth is also expected to slow next fiscal year, as price inflation dampens consumer demand.

The Budget does include expected revenue from the opening of a new Costco location in Brentwood, but only in the second fiscal year. Development revenue projections in the two-year Budget period include a moderate number of single-family permits and a more robust number of commercial, office and industrial permits, mainly from the new Costco location. Interest income is expected to remain elevated in the two Budget years.

On the expenditure side, the Budget includes the funding necessary to complete carryover initiatives adopted by the City Council in the 2022/23 – 2023/24 Strategic Plan.

With City Council direction, any budgetary impacts of a new Strategic Plan contemplated in 2025 would be incorporated into the Budget in the Mid-Term or Mid-Year Budget review process.

The draft Budget also carries over existing programs and service levels for the community. New programs or cost increases in excess of typical inflation are summarized later in this memo. All of the City’s contracts with labor bargaining units expire on June 30, 2024 and new contracts are currently under negotiation. The Budget includes a placeholder for cost of living increases for personnel salaries of 3% per year.

Historically, the City’s adopted Operating Budgets have included a budgetary deficit of about 4% (around $3 million per year). However, budgetary deficits have always been closed by year-end through savings from positions remaining unfilled and savings at the departmental level, as not every planned activity can be completed. As such, despite the initial adoption of budgetary deficits, the General Fund has typically provided year-end surplus amounts. These surplus amounts have resulted in continued growth in the Budget Stabilization Fund.

After factoring in a modest budget savings estimate, staff conservatively projects that the actual results from the upcoming two fiscal years will be a cumulative General Fund surplus of $1.6 million.

C. Ten-Year General Fund Fiscal Model Outlook
In looking ahead to the seven fiscal years beyond this draft Budget (FY 2026/27 – 2032/33), the Fiscal Model projects annual revenues exceeding annual expenditures by an average of approximately $0.8 million per fiscal year, although this surplus is largely needed to maintain the General Fund’s 30% reserve, which requires a larger balance as expenses increase.

If surpluses above the 30% reserve requirement are realized, half of each fiscal year’s surplus would be used to pay down unfunded pension and retiree medical obligations and half would be transferred into the Budget Stabilization Fund. The Budget Stabilization Fund plays a key role in balancing the City’s forecast. This Fund consists

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of prior year’s General Fund surpluses and was established to offset rising Pension and Retiree Medical costs over the next decade, while allowing the General Fund to maintain its 30% reserve as expenditures increase. As a result of prefunding strategies and modified employee benefit tier levels, pension and retiree medical costs will come down over the longer term.

The balance in the Budget Stabilization Fund is projected to be $18.2 million at the end of the ten-year Fiscal Model forecast. As discussed later in this memo in Section II, the draft Budget includes using $1.5 million per year from the Budget Stabilization Fund to further pay down unfunded obligations.

The Fiscal Model is an analysis of a specific point in time and there are many variables that could change the forecast significantly. The Fiscal Model provides a general financial direction resulting from current budgetary decisions and is not a precise prediction of future results. It aims to identify long-term trends and potential financial challenges so that course corrections can be made well in advance of potential financial problems becoming reality.

Key assumptions in the current version of the Fiscal Model include:
 All new proposed staffing, new services/programs and increasing costs as detailed in Section D. below
 Sales tax revenue from a new Costco location beginning in FY 2025/26  No new revenue from potential major developments at the Streets of Brentwood or the Innovation Center @ Brentwood
 Placeholder cost of living increases for personnel salaries of 3% per year  Short-term inflation at elevated levels, with a decline to an average rate of 3% for the longer term
 Future estimated annual operational costs for Sand Creek Sports Complex and the Vineyards Amphitheater
 Continuation of modest single-family housing development over the next five years along with an increase in multi-family housing development  Funds to support the Affordable Housing program required once existing Affordable Housing In-Lieu funds are exhausted (estimated FY 2027/28) D. General Fund Expenditures
(Budgets for these items are currently included in the draft General Fund Operating Budget.) Staffing
The Community Development Department is requesting one new Code Enforcement Officer I/II (1.0 FTE) in the Community Enrichment Division. This officer is being requested to assist with the current workload, add capacity to increase enforcement activities in the evenings and on weekends, and anticipated enforcement activities from new sidewalk vending, mobile vending and tobacco retailer licensing ordinances. The estimated annual cost for this position is $157,000, with an additional one-time vehicle and equipment cost of $43,000.

Staff will pursue grant funding from sources such as the State of California Department of Justice Tobacco Grant Program that may be used to enforce local tobacco ordinances. Lest the grant not be approved, potential grant revenue is not included in the draft Budget.

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Strategic Plan Budget Carryover
Staff is recommending the carryover of the following FY 2022/23 – FY 2023/24 Strategic Plan unspent budgets, allowing these prior initiatives to be completed in the upcoming fiscal year:

Budget Carryover FY 2024/25
Focus Area 3: Economic Development
Brentwood Boulevard and Downtown Incentives $110,000
City-Owned Parcel Plan 79,616
Focus Area 4: Community Development
General Plan Conservation and Open Space Policies 115,000 General Plan Implementation Status Update 70,000
Total $374,616
These Strategic Plan initiatives were not completed in the prior two Budget years.

If approved for carryover, the budget for Brentwood Boulevard and Downtown Incentives will be used in the upcoming fiscal year to incentivize higher tier, unique businesses and development of the Brentwood Blvd. and Downtown areas. The City-Owned Parcel Plan budget would be used for the disposition of both City and Successor Agency properties.

Staff is also recommending the carryover of unspent funds for the development of an implementation plan for the General Plan Conservation and Open Space policies minimizing impacts on the environment. Finally, funds to produce a General Plan implementation status update every two years are recommended for carryover into the next fiscal year to more effectively engage the community.

Special Events
The Parks and Recreation Department Special Events Division budget includes proposed funding for the Juneteenth holiday celebration of $25,000 in each fiscal year. The General Fund portion of the budget for the Juneteenth holiday is augmented by $20,000 per year in priority event funding by the Economic Development Grant Fund, in accordance with previous City Council direction. The Special Events Division budget also includes a proposed one-time expenditure of $30,000 to replace the 30-foot holiday tree displayed in City Park during the winter holiday season.

Diversity Equity and Inclusion (DEI) Recruitment
The Human Resources Department is requesting approximately $48,000 annually to provide dedicated resources and centralize efforts of DEI recruitment advertising for all vacant City positions expected to be filled during the two-year Budget period.

Expansion of the Sidewalk Repair Program
The Streets Division is proposing the expansion of the ongoing citywide sidewalk repair program at an additional annual cost of about $100,000. The proposed increase in the Budget would provide funding for implementation of a sidewalk inspection program to identify hazards requiring maintenance and provide supplies for City crews to make repairs.

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In addition, the Streets Division is requesting a one-time equipment budget of $110,000 for a sidewalk repair skid steer. The skid steer would primarily be used for smaller sidewalk removal and replacement projects completed by City crews.

Use of the skid steer in residential areas will reduce noise and be less invasive than the use of other larger equipment options such as backhoes.

Utilities
Proposed budgets for utilities in all divisions have increased by just over 7% (or approximately $127,000) in the first year, mainly driven by an expected 10% increase in rates by PG&E. This increase would apply to all General Fund facilities, such as the Civic Center, Library, Brentwood Family Aquatic Center and Brentwood Senior Activity Center (“Senior Center”).

Parks and Recreation
The Parks and Recreation Department is requesting an annual funding increase of about $26,000 for contractual services for new technology classes for seniors at the Senior Center. In addition, the proposed budget for contractual services has increased by $80,000, mainly for landscaping services.

Included in the FY 2023/24 Budget was the purchase of one Ford Ranger. Due to supply chain issues, the purchase of this truck will not occur by the end of the fiscal year. Staff is proposing that the unspent budget of $32,000 be rolled over into the first Budget year and the amount increased to $38,000 to accommodate inflationary cost increases that may occur.

Permit Center Safety Project
The Building and Planning Divisions are proposing a one-time total capital cost of $75,000 to improve City Hall Permit Center safety. This project would place clear barriers at workstations and along the public counter and replace portions of glass in the conference room with a solid door and walls. These improvements are proposed in consultation with the Police Department and consistent with measures in effect at other City facilities.

County Services
The City contracts with Contra Costa County for animal services. After the County’s contribution to the County Animal Services Department, the remaining cost of the services provided is allocated to all cities based on population. For FY 2024/25, the original cost request from the County was $781,000, however, responding to feedback the County agreed to reduce its request down to $703,000, which is still a 24% increase from the prior year.

The County provides funding for most of the operational costs of the Brentwood Library. The City has an agreement with the County to contribute funding for additional operating hours beyond those funded by the County. The cost for these additional hours increased about 26% over the prior year to approximately $127,000. Under the agreement, the City will also contribute about $11,000 per year for Library technology costs.

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Finally, the County invoices the City for election services based on a rate per registered voter. Included in the first fiscal year of the proposed Budget in the City Clerk’s Division is an estimated cost of $137,000 for these services.

Contractual Services
The following increases in contractual services budgets across several divisions are proposed:
 The City Clerk’s Division is requesting ongoing contractual services of $10,000 per year to process updates to the Brentwood Municipal Code; one-time contractual services of $20,000 to update the Citywide document retention schedule; and one-time contractual services of $18,000 to scan historical paper records to allow for electronic access.  The Streets Division is proposing the continuation of the Downtown Sidewalk Cleaning program with a proposed annual contractual services cost of $14,000.
 One-time contractual services of $10,000 is being proposed in the NonDepartmental Division for the cost of fencing to close off sensitive areas not open to the public.

Contributions to Other Agencies
The Budget draft includes the proposed renewal of an annual contribution of $28,000 to the Family Justice Center (FJC). While this contribution is not a new cost or cost increase, it is included in this memo for transparency. The FJC provides a variety of resources and services to victims of crime. The FJC has a working partnership with the District Attorney's Office, Family Law, STAND!, Community Violence Solutions, and Bay Area Legal Aid, providing a “one-stop shop" for victims to reduce the stress of navigating the justice system and available resources on their own.

E. General Fund Reserves
In addition to the 30% reserve established by City Council policy, the FY 2023/24 yearend General Fund reserves are proposed to include the following: $1.0 million for future capital projects as directed by the City Council earlier this year; $2.4 million for future Police Department 5th beat costs; $2.1 million for the Successor Agency payment plan; $0.7 million for future Brentwood Boulevard improvements; and $0.9 million for a combination of carryover Strategic Plan initiative costs, future General Plan updates and future election redistricting costs.

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II. Other Funds
A. Staffing Requests
Staff is proposing eight (8.0 FTE) new Enterprise Fund positions in the Budget. The new positions are as follows:

Enterprise Position FTE Annual Cost
Wastewater Wastewater Collection System Worker I/II 2.0 $299,000 Wastewater Wastewater Collection Supervisor 1.0 181,000 Wastewater Street Maintenance Worker I/II 2.0 253,000
Solid Waste Solid Waste Equipment Operator I/II 2.0 296,000 Water/Wastewater/Solid Waste GIS Technician 1.0 165,000 Total Estimated Annual Cost (FY
2024/25)
$1,194,000

The staff increase in the Wastewater Enterprise Fund would enable a new wastewater lateral repair program. The lateral repair program is designed to ensure that aging connections from residences and businesses to the sewer system are maintained, preventing sewer backups. The Budget request also includes approximately $597,000 in one-time equipment and technology costs for this program. The new equipment would include a dump truck, a backhoe, one Ford F-150 truck and one Ford F-350 truck.

An increase of two positions is proposed in the Solid Waste Enterprise Fund. One position is the result of growth in residential, front load and roll-off routes and the other position would allow the City to reduce the number of limited-service equipment operator positions. The reduction in limited-service positions will benefit the City by reducing the loss of training costs when limited-service employees move to full-time positions outside of the City and supervisory time coordinating work schedules.

The Geographic Information System (GIS) Technician position would be divided among the Water, Wastewater and Solid Waste Enterprise Funds. This position will provide support for new State regulatory reporting requirements discussed in B., below, and maintenance of the City’s GIS data infrastructure.

The majority of the personnel costs for the new positions were included as placeholder costs in the new 5-year rate study approved by the City Council in June of 2023. No adjustment to rates would be necessary as a result of this requested action.

B. Enterprise Funds
Water/Wastewater/Solid Waste Revenues
Water, Wastewater and Solid Waste revenues included in the draft Budget are based on user fees set in accordance with Proposition 218. Rate studies are conducted periodically to ensure the enterprise rates are sufficient to cover: operating expenses, capital improvements, upgrades and costs associated with meeting both State and Federal guidelines and regulations.

In June 2023, a new 5-year rate study “Study” was approved by the City Council, covering FY 2023/24 through FY 2027/28. Staff has analyzed and compared current year revenues (through April 2024) to the same time period in the prior year to ensure that the revenue projections in the rate study are holding true. After accounting for increased

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water and dumpster usage, revenues in all three Enterprise Funds are tracking to within 1% of the approved rate adjustments. Staff will continue to monitor Enterprise revenues and expenditures and provide updates as a part of the Mid-Term budget review process.

Water Enterprise Fund
The Water Enterprise Fund is proposing an increased budget for regulatory reporting software in response to new requirements. The software is needed to comply with new U.S. EPA Lead and Copper Rule Revisions regulation to develop service line inventories and reporting. In addition, new State Water Board regulation requires urban water suppliers to develop indoor and outdoor water use, and water loss standards, as mandated by SB 606 and SB 1868. In the first budget year, software and implementation costs for both programs are estimated to be $275,000, followed by subsequent annual ongoing costs of $79,000.

In the second Budget year, contractual services costs of $85,000 are proposed to produce the California Department of Water Resources Urban Water Management Plan.

This plan is required to be updated every five years and is due for an update in FY 2025/26.

One-time capital costs of $275,000 over the two Budget years are proposed to construct a metal 60x100 structure to house equipment for water distribution and production.

Contractual services would be used for the foundation in the first Budget year and City staff would complete construction of the structure in the second Budget year.

Included in the FY 2023/24 Water Enterprise Fund Budget was $103,000 for an upgrade to equip a valve-turning truck scheduled for replacement (discussed in C., below). Due to supply chain issues, the purchase of this replacement valve-turning truck will not occur by the end of this fiscal year. Staff is proposing that the unspent budget of $103,000 be rolled over into the first Budget year, with an increase to $170,000 to accommodate supply chain and inflationary cost increases that may occur. The upgrade to the articulated arm on the truck will allow multiple valves to be exercised at the same time at each location, rather than one valve at a time. It will also increase operator efficiency and safety and assist with ensuring compliance with regulatory requirements of the valveexercising program.

City Hall Utility Billing Lobby Safety Project
Concurrent with the City Hall Permit Center safety project discussed above, new cameras are proposed to be installed in the Utility Billing lobby. The estimated cost for the new cameras is $21,000 and the cost would be shared equally among the Water, Wastewater and Solid Waste Enterprise Funds.

C. Other Funds
Agricultural Administration and Land Funds
In the Agricultural Administration Fund, one-time contractual service costs of $25,000 are requested for potential tree removal on the proposed Agricultural Innovation Center property. In addition, one-time costs of $75,000 for legal services related to a potential Agricultural Innovation Center agreement are requested.

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In the Agricultural Land Fund, a carryover of unspent budget of $175,000 is proposed for the Agricultural Business Program Strategic Initiative. The carryover would allow for the completion of the Directional Wayfinding and Signage for Local Farmers Project and the continuation of the Farm-to-Fork Program, which was included in the City’s Economic Development Strategy, adopted in 2018.

After including all of the above-proposed expenditures, the $2.24 million for the Agricultural Innovation Center previously identified by the City Council, and funding for the City Council approved Harvest Time staff and marketing plan, the combined remaining available balance in the Agricultural Administration and Land Funds is estimated to be $920,000.

Capital Infrastructure Fund
The Capital Infrastructure Fund accounts for funds for use for non-residential development related infrastructure projects with a focus on projects that may promote economic development. Included in the Budget draft in the Capital Infrastructure Fund is a proposed budget for economic development policy/program incentives of $2.2 million, representing the estimated total balance available in the fund. Of the available balance, $1.4 million is carryover of unspent Economic Incentive Policy/Program strategic initiative budget. It is proposed that the budget move from the strategic initiative budget category to an ongoing expenditure budget category. Although the $2.2 million available fund balance is included in the draft Budget, any individual economic incentive greater than $100,000 would require City Council approval, in accordance Council/Administrative Policy No. 80-03, Economic Development Incentives. Any unspent available balance at the end of the first budget year would be proposed to roll over to the next fiscal year as a budget amendment in the Mid-Term process.

Vehicle and Equipment Replacement
Included in the FY 2023/24 Vehicle and Equipment Replacement Fund Budget was $84,000 for the purchase of one Ford F-150 truck and one Ford F-250 valve-turning truck, both for use in the Water Enterprise. Due to supply chain issues, the purchase of these trucks will not occur by the end of this fiscal year. Staff is proposing that the unspent budget of $84,000 be rolled over into the first Budget year and the amount increased to $115,000 to accommodate supply chain and inflationary cost increases that may occur.

Fleet Maintenance Fund
One-time costs of $95,000 in the first year of the Budget, followed by annual ongoing costs of $18,000 are being proposed for new fleet maintenance management software.

Currently, the fleet maintenance is using software that cannot track the maintenance requirements for vehicles and equipment. The new software will allow for compliance with new regulatory reporting and more efficient and effective maintenance of the fleet.

Budget Stabilization Fund
Consistent with the prior two-year Budget, staff is also recommending supplemental onetime lump sum payments of $1.5 million in both FY 2024/25 and FY 2025/26 from the Budget Stabilization Fund. In FY 2024/25, an additional $1.0 million payment (for a total of $2.5 million) would also be made from other City funds with personnel allocations, as a fair share contribution. These payments would reduce unfunded Pension obligations, resulting in reduced costs over the long term. This would not be a new City cost or employee benefit; rather the payment would serve to reduce future interest costs on the

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unfunded obligations and free up funds in the coming years for other City services. This strategy has worked extremely well for the City over the years. The City’s June 30, 2022 pension actuarial report showed the City’s pension funding percentage at 80.3%, while the average percentage funding for CalPERS overall was just 71%.

V. Budget Watch
There are several budget watch items that staff are monitoring and will include in future City financial condition updates.

A. Economic Uncertainty
As a result of a strong labor market and consumer spending, real United States Gross Domestic Product (GDP) increased by 2.5% in 2023 and is on track for similar growth in 2024. However, the economy is expected to transition to a lower GDP growth rate in late 2024 and early 2025, as consumer demand fades and higher interest rates limit business and residential investment. This weaker growth would cause the demand for labor to fall, with an expected uptick in unemployment. Locally, the Bay Area has suffered a disproportionate number of job losses, and the unemployment rate in California is currently the highest in the nation. While economic indicators do not currently predict a recession, there remains considerable uncertainty, which may be exacerbated by rising geopolitical tensions and the upcoming election cycle.

After reaching a four-decade high of just under 8% in 2022, inflation has moderated in recent months to a rate of 3.5%. This rate is well above the Federal Reserve long-term target for inflation of 2%. Economic forecasts indicate that the annual inflation rate should eventually end up closer to the 2% target; however, higher inflation has been hard to tame. While the City’s Budget includes capital, supplies and services expenditure increases including a factor for inflation, persistently high long-term inflation would have a significant impact on the City, as it has very little control over revenue increases.

B. Labor Contracts
The City’s contracts with all of its labor bargaining units expire on June 30, 2024 and successor contracts are currently under negotiation. The Budget includes a placeholder for cost of living increases for personnel salaries of 3% per year. In the General Fund, salary and benefit costs make up approximately 67% of expenditures. If labor negotiations result in cost of living increases above the placeholder amounts, budgets would need to increase and the projected General Fund surpluses in the two-year Budget and Fiscal Model would be reduced or eliminated.

C. CalPERS Investment Returns
The City’s future pension and retiree medical costs are heavily dependent upon the investment returns earned by CalPERS. As of early May, staff estimates that CalPERS annual earnings are near the target rate of 6.8%. Annual investment returns in past years have missed the 6.8% target and CalPERS has had to increase the City’s contributions to make up for investment shortfalls. The variability of rates of return are another factor that adds to City’s overall economic uncertainty.

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D. Costco
While the first year of the Budget does not include sales tax revenue from the new Costco location, the second Budget year includes the anticipated revenue for the full year. If there were delays to the opening of Costco, General Fund revenues and the second year surplus would be reduced. In addition, the Fiscal Model would have to be updated and the City would be facing a much more challenging economic future.

E. Taxpayer Protection and Governmental Accountability Act The California Business Roundtable, the Howard Jarvis Taxpayers Association, and other business associations and taxpayer advocates qualified the “Taxpayer Protection and Government Accountability Act” (“Act”) for inclusion on the November 2024 general election ballot.

The Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, may make it more difficult to impose fines and penalties for violation of state and local laws, and would make it more difficult to defend those revenues in court.

Governor Gavin Newsom and the Legislature filed a legal challenge with the California Supreme Court in fall of 2023, arguing that the measure should be removed, because it unlawfully revises the State constitution and would impair essential public services. The court is expected to issue a decision by the end of June 2024.

Should the measure remain on the ballot and passed by the voters, there would be significant negative impacts to the City’s operations and core service delivery.

Specific impacts would require further assessment, however, it is reasonable to expect increased legal costs associated with fee/tax challenges, increased staff workload due to stringent cost allocation requirements, decreased revenues from more limited revenue sources, and loss of future flexibility in raising revenues.

150 City Park Way
Brentwood, CA 94513

OPERATING
BUDGET
2024/25 - 2025/26
DRAFT

2 2024/25 – 2025/26 Operating Budget
Introduction

TABLE OF CONTENTS

INTRODUCTION
Table of Contents ............................................................................................................................................................... 2 City Council and Executive Team ................................................................................................................................. 4 City Organization Chart ................................................................................................................................................... 5 Brentwood at a Glance ..................................................................................................................................................... 6 Budget Awards .................................................................................................................................................................. 14 Accomplishments ............................................................................................................................................................. 15 City Manager’s Message .............................................................................................................................................. 16 Executive Summary ........................................................................................................................................................ 18 Strategic Plan .................................................................................................................................................................... 27 Budget Process ................................................................................................................................................................. 31 Fund Structure .................................................................................................................................................................. 34 Long-Term Debt .............................................................................................................................................................. 37 Capital Improvement Program Overview .............................................................................................................. 43

CITYWIDE SUMMARIES
Fund Balance Summary ................................................................................................................................................ 49 Operating Budget Summary ....................................................................................................................................... 50 FY 2024/25 Summary of Activities by Fund Type ............................................................................................... 51 FY 2024/25 Fund Balance by Fund ........................................................................................................................... 52 Summary of Revenues and Expenditures by Fund Type .................................................................................. 55 Detail of Expenditures by Category ......................................................................................................................... 56 Summary of Expenditures by Category .................................................................................................................. 57 Summary of Expenditures by Category and Fund Type ................................................................................... 58

TEN-YEAR PROJECTIONS
General Fund ..................................................................................................................................................................... 60 Solid Waste Enterprise Fund ....................................................................................................................................... 61 Water Enterprise Fund ................................................................................................................................................... 62 Wastewater Enterprise Fund ....................................................................................................................................... 63 City Rentals Enterprise Fund ....................................................................................................................................... 64 Housing Enterprise Fund .............................................................................................................................................. 65

FUND BALANCES
Fund Balances ................................................................................................................................................................... 66 General Fund ..................................................................................................................................................................... 68 Other Funds ....................................................................................................................................................................... 69 Summary of Changes in Fund Balance ................................................................................................................... 71

REVENUES
FY 2024/25 General Fund Revenue by Category ................................................................................................ 72 General Fund Revenue Summary .............................................................................................................................. 73

3 2024/25 – 2025/26 Operating Budget
Introduction
General Fund Schedule of Interfund Transfers In ............................................................................................... 74 Major General Fund Recurring Revenue Sources ............................................................................................... 75 Other City Revenue Sources ....................................................................................................................................... 82 FY 2024/25 Citywide Revenue by Fund Type ....................................................................................................... 85 Revenue Summary by Fund ........................................................................................................................................ 86

EXPENDITURES
FY 2024/25 General Fund Expenditure Summary ............................................................................................... 89 General Fund Expenditure Summary ....................................................................................................................... 90 General Fund Schedule of Interfund Transfers Out ........................................................................................... 91 General Fund Expenditures by Category ............................................................................................................... 92 General Fund Expenditures ......................................................................................................................................... 93 FY 2024/25 Citywide Expenditures by Fund Type .............................................................................................. 96 Citywide Expenditures ................................................................................................................................................... 97 Expenditure Summary by Fund .................................................................................................................................. 99

PERFORMANCE BUDGETS
Introduction to Department and Performance Budgets ................................................................................102 Legislative .........................................................................................................................................................................103 City Manager ...................................................................................................................................................................106 City Attorney ...................................................................................................................................................................112 Community Development ..........................................................................................................................................117 Engineering ......................................................................................................................................................................123 Finance and Information Systems ...........................................................................................................................129 Human Resources .........................................................................................................................................................135 Parks and Recreation ...................................................................................................................................................141 Police ..................................................................................................................................................................................148 Public Works ...................................................................................................................................................................154

FIDUCIARY FUNDS
Special Assessment Districts .....................................................................................................................................162 Successor Agency ..........................................................................................................................................................163

APPENDIX
2024/25 – 2025/26 Operating Budget, Resolution No. XXXX-XX ..............................................................164 2024/25 Proposition 4 Appropriations Limit, Resolution No. XXXX-XX ..................................................166 Constitutional Spending Limits ................................................................................................................................167 Personnel Summary Allocations by Department ..............................................................................................169 Fund Expenditure Summary by Division ..............................................................................................................182 Vehicle Replacement Schedule (Fund 702) .........................................................................................................193 Glossary of Terms ..........................................................................................................................................................195 Acronyms ..........................................................................................................................................................................210 Guide to Funds – Description of Funds ................................................................................................................212

4 2024/25 – 2025/26 Operating Budget
Introduction
City Council
Joel Bryant................................................................................................................................................................... Mayor Susannah Meyer .............................................................................................................................................Vice Mayor Jovita Mendoza ....................................................................................................................................Council Member Tony Oerlemans ..................................................................................................................................Council Member Pa’tanisha Pierson................................................................................................................................Council Member Executive Team
Tim Ogden....................................................................................................................................................City Manager Katherine Wisinski.......................................................................................................................Interim City Attorney Allen Baquilar...............................................................................................Director of Engineering/City Engineer Sukari Beshears ..............................................................................Director of Human Resources/Risk Manager Kerry Breen.......................................................City Treasurer/Director of Finance and Information Systems Darin Gale ..................................................................................................................................Assistant City Manager Tim Herbert ................................................................................................................................................ Chief of Police Alexis Morris................................................................................................. Director of Community Development Bruce Mulder .........................................................................................................Director of Parks and Recreation Casey Wichert........................................................................................................................Director of Public Works Boards and Commissions
Arts Commission
Brentwood Neighborhood Committee
Parks and Recreation Commission
Planning Commission
Triad
Youth Commission

5 2024/25 – 2025/26 Operating Budget
Introduction

CITY ORGANIZATIONAL CHART

6 2024/25 – 2025/26 Operating Budget
Introduction

BRENTWOOD AT A GLANCE

7 2024/25 – 2025/26 Operating Budget
Introduction

8 2024/25 – 2025/26 Operating Budget
Introduction
History
The modern history of Brentwood can be traced back to 1837, when Dr. John Marsh purchased the 13,316 acre Rancho Los Meganos land grant from Jose Noriega. Dr. Marsh was one of the wealthiest men in California and among the first non-Native Americans to inhabit the region. Brentwood was named after Marsh's ancestral home, the town of Brentwood in the County of Essex, England. Dr.

Marsh built a stone mansion in the hills on the southern border of Brentwood, now the cornerstone of the Marsh Creek State Historic Park.

Following the murder of Dr. Marsh, Rancho Los Meganos was sold to the Brentwood Coal Mining Corporation. The opening of the Brentwood Coal Mines and plans for a future railroad in the area led to the initial layout of Brentwood.

Balfour, Guthrie & Co., a British investment company, purchased Rancho Los Meganos in 1910. This led to farming development in Brentwood, as land was subdivided and the first irrigation system built.

Balfour Guthrie also built the Brentwood Hotel at Oak Street and Brentwood Boulevard, across from the railroad station. This replaced an earlier hotel on the same site that had burned down in 1903.

The hotel, which was demolished in 1967, served as the inspiration for the Civic Center buildings built in 2011.

Today Brentwood is bordered by the Contra Costa County Agricultural Core which consists of 11,000 acres of preserved and still actively productive farm land. The landscape to the west is marked by rolling hills, oak trees, fruit orchards and vineyards.

Brentwood experienced a significant development phase
from the mid 1990’s to the mid 2000’s, but is still known throughout the Bay Area for its agricultural products and Upick farms, primarily cherries, corn and peaches. Typically, the U-pick farm experience generates over 500,000 visitors to Brentwood each year.

Recreation
Brentwood is part of the East Bay Regional Park District, a San Francisco Bay Area special district operating in the East Bay counties of Alameda and Contra Costa. In addition, Brentwood has its own Parks and Recreation Department. The City currently has 267 developed acres of parkland, 100 award winning parks and facilities, 20 miles of trails and 63 miles of bike lanes. Over 150 recreational activities and events are offered each year for people of all ages and interests.

Development
The housing market has been one of the stronger sectors of economic growth over the last decade.

The City’s affordable prices by Bay Area standards, along with Brentwood’s reputation as a family community, have typically resulted in new single-family building permits exceeding projections.

During two year period of FY 2020/21 and FY 2021/22 the City issued over 560 single-family building permits and over 450 multi-family unit permits. However, a slow-down in activity occurred in FY

9 2024/25 – 2025/26 Operating Budget
Introduction
2022/23 as potential buyers faced high mortgage rates alongside elevated housing prices. Facing these headwinds, only 76 single-family and zero multi-family permits were issued in FY 2022/23. As the City moves closer to build-out, residential development is expected to continue at a slow pace, while multi-family permitting is expected to increase, in accordance with the City’s General Plan. Nonresidential development in the two-year Budget period has been forecasted to include an increased number of commercial, office and industrial permits, mainly from the addition of a new Costco location. Below are the two-year budget building permit projections.

FY 2024/25 FY 2025/26
Single-Family Units Per Year 75 100
Multi-Family Units Per Year 0 75
Commercial, Office, Industrial Sq. Ft. Per Year 250,000 50,000 Cumulative Citywide Housing Unit Total 22,366 22,541
Brentwood is home to a diverse retail sector and a variety of office, flex-office, and light-industrial businesses. A key objective in the upcoming two-year period is job creation and business development. The Innovation Center @ Brentwood (“Innovation Center”) is a 373-acre project site located in the northwest corner of Brentwood and a projected focal point for jobs and mixed-use development. The City Council has authorized the construction of both roadway and utility infrastructure at the Innovation Center and the extension of Sand Creek Road through the area is currently underway to spur business development. It is expected that a new Costco will be opened in the two-year budget period in the Innovation Center area.

Employment
Brentwood is part of Contra Costa County, one of nine counties which comprise the San Francisco Bay area. As reported for the April 2024 period, Brentwood had a labor force of 29,200 and 4.6% unemployment rate, while Contra Costa County had a labor force of 546,700 with an unemployment rate of 4.4%.

Information Sources for Brentwood at a Glance
History: Footprints in the Sand by Kathy Leighton
Population Data: U.S. Census Bureau
Employment: California Employment Development Department Sales Tax/Principal Employers: HdL
All Other Information: City of Brentwood/Applied Geographical Solutions, 2022

10 2024/25 – 2025/26 Operating Budget
Introduction
From the mid 1990’s to the mid 2000’s, the City’s population more than tripled, transforming Brentwood from a historically agricultural community to a suburban community. Brentwood’s location near significant employment centers of the greater Bay Area has allowed the City to experience robust growth over the last decade.

Future population increases are anticipated to slow, as the housing market cools as a result of increases in mortgage rates and housing values. In May 2024, the California Department of Finance released the January 1, 2024 Brentwood population estimate of 64,811. Based on projected new development activity, Brentwood’s population is expected to increase 0.5% to 65,130 by the end of FY 2024/25.
* Non-Hispanic

11 2024/25 – 2025/26 Operating Budget
Introduction
2023 Top 25 Sales/Use Tax Producers – 4th Quarter
(In Alphabetical Order)
Principal Employers for 2023
(In Alphabetical Order)
7 Eleven Ace Hardware Arco AM PM Arco AM PM
(Sunset) Bill Brandt Ford
BJ’s Restaurant &
Brewhouse
Brentwood Ready
Mix Chevron Chipotle Dallas Shanks Services
Home Depot Home Goods In N Out Burger Kohl’s Marshalls
Power Market Ross Safeway Sportsman’s
Warehouse TJ Maxx
Trident
Environmental &
Engineering
Ulta Beauty Verizon
Wireless Walgreens Co. WinCo Foods, Inc.

Ace Hardware Bill Brandt
Ford BJ’s Brewhouse Black Angus Brentwood Union School District Capital Builders Building
Supply
City of
Brentwood Home Depot John Muir Health Kohl’s
Liberty Union High
School District
Precision
Cabinets Raley’s Red Robin Gourmet Burgers Rodda Electric, Inc.

Safeway Stores, Inc.

Save Mart
Supermarket
(FoodMaxx)
Thorpe Design,
Inc.

Town & Country
Roofing Winco Foods, Inc.

12 2024/25 – 2025/26 Operating Budget
Introduction
(1) The City receives fire protection services from the Contra Costa County Fire Protection District (CCCFPD). CCCFPD has plans to open an additional fire station in Brentwood.
(2) The Brentwood Union School District has plans to open an additional elementary school in FY 2024/25.

Infrastructure and Utilities (FY 2023)
Streets 192 miles
Sanitary Sewers 249 miles
Water Mains 354 miles
Street Lights 7,741
Wastewater Lift Stations 3
Wastewater Connections 20,890
Average Daily Wastewater Flow 4.29 MGD
Water Wells 6
Water Reservoirs 6
Water Connections 21,607
Water Storage Capacity 19 MG
Average Daily Water Production 9 MGD
Peak Daily Water Production 16 MGD
Residential Solid Waste Services 20,634
Commercial Solid Waste Services 524
Public Safety (FY 2023)
Police
Sworn Officers 72
Vehicles 45
Motorcycles 5
Contra Costa County Fire Protection District (1)
Stations Located in Brentwood 1
Firefighters in Brentwood 21
Public Schools (FY 2023) (2)
Elementary Schools 8
Intermediate Schools 3
High Schools 2
Alternative High Schools 2

13 2024/25 – 2025/26 Operating Budget
Introduction
Vision and Culture
We are an organization of dedicated professionals working together to make Brentwood the very best, preserving its rich heritage and keeping Brentwood in the hearts of the people.

Mission Statement
Bringing Brentwood’s Vision to Reality

CORE VALUES
Integrity
Passion
Accountability
Respect
Quality

14 2024/25 – 2025/26 Operating Budget
Introduction

BUDGET AWARDS
The Government Finance Officers Association
(GFOA) and the California Society of
Municipal Finance Officers (CSMFO) offer a
recognition program for public entities to
determine whether the City conforms to the
highest level of governmental accounting
and financial reporting standards.

Both GFOA and CSMFO awarded a
Distinguished Budget Presentation Award to
the City of Brentwood for its Fiscal Year
2022/23 budget. Its attainment represents a
significant accomplishment by a government
and its management.

15 2024/25 – 2025/26 Operating Budget
Introduction

ACCOMPLISHMENTS
The City prides itself on providing quality services to the community. Following is a list of awards acknowledging these achievements in quality.

The City received the “2023 American Water Works Association (AWWA) Directors Award” for the Partnership for Safe Water.

The City was recognized as the “2023 Pipe Tapping Champions” by the AWWA.

The City was recognized as the “2022 Pipe Tapping and Hydrant Hysteria Champions” by the AWWA.

The City maintained designation as a Tree City USA Community in 2023 as recognized by the Arbor Day Foundation.

The City received the California Park and Recreation Society Outstanding Recreation Special Event Award – City of Brentwood 75th Birthday Party.

The City received the following Best of Brentwood awards from ThePress.net:
• Place for Family Fun – Brentwood Family Aquatic Complex (2023 Gold) • Event Center – Brentwood Community Center (2023 Gold) and Brentwood Family Aquatic Center (2023 Bronze)
• Place for Live Music – Concerts in the Park (2023 Silver) • Place for Swim Lessons – Brentwood Family Aquatic Complex (2023 Bronze) • Place for Community Event – Concerts in the Park (2023 Bronze) • Favorite Park – Creekside Park (2023 Gold)¸Veterans Park (2023 Silver) and City Park (2023 Bronze)
The City received the following GFOA awards:
• “Certificate of Achievement for Excellence in Financial Reporting Fiscal Year 2022/23”
• “Distinguished Budget Presentation Award” for the two-year Operating Budget beginning July 1, 2022
The City received the CSMFO awards for the following:
• “Excellence in Operating Budgeting Award Fiscal Year
2022/23”
• “Capital Budget Excellence Award Fiscal Year 2022/23 and Fiscal Year 2023/24”

The Transmittal Letter, pages 16 through
17, is currently not included in this Draft
document.  It will be included in the Final
document scheduled to be brought
forward for consideration of adoption at
the June 25, 2024 City Council meeting.

18 2024/25 – 2025/26 Operating Budget
Introduction

EXECUTIVE SUMMARY
The Operating Budget is a flexible spending plan, which serves as the legal authority granted by the City Council to commit financial resources. The total Operating Budget expenditures for fiscal year (FY) 2024/25 is $378.8 million. The City of Brentwood provides a full range of services, including police; parks and recreation; public works; economic development; planning; building; community enrichment; engineering and inspection; housing and general administrative services. Brentwood operates public water and wastewater utilities and provides refuse collection and disposal. The City receives fire protection services from the Contra Costa County Fire Protection District (CCCFPD).

The General Fund is the primary operating fund for the City. The General Fund pays for many of the critical services offered to the City’s residents including police, streets and transportation, and parks and recreation. The majority of Community Development services and a significant portion of Engineering services are funded through development revenue (permit fees), while parks and recreation user fees help offset the operational costs of the Parks and Recreation Department. The majority of the remainder of services included in the General Fund are funded through tax revenues.

General Fund revenues are generally considered unrestricted and are allocated by the City Council through this budget.

The shortfall between revenues and expenditures is a result of the use of General Fund balances that were committed in FY 2023/24 for remaining Strategic Initiative costs, a capital project on Brentwood Boulevard and the Successor Agency Payment Plan in FY 2024/25.

Other
Successor Agency – 2%
Community Services – 2%
Transfers Out – 1%
Other
Other Taxes and Fines – 5%
Gas Tax – 3%
Other – 3%
Transfers In – 2%

19 2024/25 – 2025/26 Operating Budget
Introduction
Enterprise Overview
The City provides residents with Solid Waste, Water and Wastewater services. The charges for these services (user fees), along with the costs for providing the services, are accounted for in the individual Enterprise Funds. These funds do not receive any General Fund support and must be selfsupporting.

The City’s user fees are set in accordance with Proposition 218. Rate studies are conducted periodically to ensure the enterprise rates are sufficient to cover: operating expenses; capital improvements; upgrades and costs associated with meeting both State and Federal guidelines and regulations.

Key Budget Factors
In addition to the Budget Policies and Guidelines, found on page 31, the following budget items were key factors in the development of this budget.

• Personnel Costs
With personnel costs comprising approximately two-thirds of the General Fund budget, the status of the City’s labor contracts and the costs of providing negotiated benefits such as health care, retiree medical and pension benefits, will always play a significant role in the development of the budget.

Labor Contracts
The City’s contracts with all of its labor bargaining units expire on June 30, 2024 and successor contracts are currently under negotiation. This budget includes estimated personnel costs for the City’s non-sworn and sworn labor groups, including a placeholder cost of living increase of 3% per fiscal year. If labor negotiations result in cost of living increases above this placeholder amount, personnel budgets would be amended after the conclusion of negotiations with City Council approval.

New Positions
The General Fund budget includes one new Code Enforcement Officer position. This position is included in the budget to assist with current workload and to add capacity to increase enforcement activities during evenings and weekends. The position is also necessary for anticipated enforcement activities from new sidewalk vending, mobile vending ordinances and a tobacco retailer licensing ordinance. Including this new position, the total number of General Fund employees has remained consistent at about three employees per 1,000 population for several years.

The budget also includes eight new positions allocated to the City’s Enterprise Funds.

Five positions allocated to the Wastewater Enterprise Fund will facilitate the launch of a new wastewater lateral repair program. The lateral repair program is designed to ensure that aging connections from residences and businesses to the sewer system are maintained. Two new Equipment Operator positions are included in the Solid Waste Enterprise Fund to address growth in waste collection routes and to reduce the number

20 2024/25 – 2025/26 Operating Budget
Introduction
of limited-service positions increasing operational efficiency. Finally, one new Geographic Information System (GIS) Technician position is allocated among the Water, Wastewater and Solid Waste Enterprise Funds. This position will provide support for new State regulatory reporting requirements and maintenance of GIS data.

Other Post-Employment Benefits (OPEB)
To address the City’s unfunded OPEB obligation, the City switched from a pay-as-you-go plan to a prefunding retiree medical benefits, ramping up contributions over a ten-year period ending in FY 2018/19. The City incrementally increased the payments toward the unfunded obligation each fiscal year, culminating in an annual payment equal to 85% of the annual Actuarial Determined Contribution (ADC). Once the City has achieved a status where 85% of the unfunded obligation has been paid, the City will continue contributions at a level percentage of payroll until the unfunded obligation is eliminated.

As of June 30, 2023, the latest valuation available, the OPEB unfunded actuarial accrued liability for the City increased to $33.8 million from $28.0 million as of June 30, 2022. This increase was due to less favorable actual asset performance compared to expectations, combined with slightly less favorable demographic changes. While this prefunding plan is a fiscally responsible strategy, the annual funding commitment reduces the availability of funds for other purposes. As a result of the prefunding strategy, future OPEB costs are expected to remain relatively level for the next decade, followed by substantially declining costs in the long-term.

Pensions
The City contracts with the California Public Employees’ Retirement System (CalPERS) for pension benefits. Pensions are funded through a combination of employee contributions, employer contributions and investment returns. When shortfalls in the investment returns occur, the liability is typically borne by the employer. Most pension plans, including Brentwood’s, are underfunded as a result of CalPERS lowered investment return projections. CalPERS FY 2022/23 investment returns were slightly less than target, but an improvement over negative rate of return from the prior year. To mitigate the impacts of increasing contribution requirements in the intermediate to long-term, the City has made pension prepayments of $5.6 million in the last two fiscal years that were applied to the City’s unfunded pension obligations. This budget includes $4.0 million in additional unfunded obligation prepayments.
• Pension/OPEB Obligation Fund
The Pension/OPEB Obligation Fund is a funding source to be used to help offset the rising cost of pensions and OPEB in the General Fund. A total of approximately $13.3 million has been set aside in the fund to help mitigate budgetary challenges in the General Fund.

Approximately $3.4 million is budgeted to be transferred to the General Fund in FY 2024/25 and $2.6 million in FY 2025/26; however, budgetary expenditure savings have significantly reduced or eliminated the need for such a transfer in past fiscal years.

21 2024/25 – 2025/26 Operating Budget
Introduction
• New Costco Location
It is anticipated that a new Costco location will complete construction and open in the twoyear budget period. This new retailer will provide the City with a significant new sales tax source. Although the first year of the budget does not include an increase in sales tax revenue from the new Costco, the second budget year includes the anticipated revenue for the full fiscal year in the General Fund.
• Sand Creek Sports Complex
This project consists of the design and construction of a sports complex located on 14.5 acres of City-owned property (Site I) and about 20.0 acres on the adjacent Contra Costa County Flood Control detention basin (Site II) at Sand Creek Road and Fairview Avenue. Site I will include three full size multi-use sports fields, parking lot, restrooms, picnic area and other park amenities. Site II will potentially add two more sports fields. The funding and cost for this project is included in the Capital Project Funds sections of the budget. • Enterprise Rate Studies
Charges for the Water, Wastewater and Solid Waste Enterprise services are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are developed that include future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period ending in FY 2027/28 provides the basis for the Enterprise budgets.
• Innovation Center @ Brentwood Infrastructure
This $11.8 million Strategic Plan project will construct infrastructure improvements within the Innovation Center @ Brentwood, a 373-acre project site located in the northwest corner of Brentwood and a projected focal point for jobs and mixed-use development. This project includes roadway improvements through the area and construction of utility infrastructure to spur business development. The utility infrastructure construction is expected to occur in FY 2024/25 and is pending right-of-way acquisitions in progress with affected private properties owners. The funding and cost for this project is included in the Capital Project Funds sections of the budget.
• Wastewater Treatment Plant Expansion – Phase II
A capital project for the expansion of the wastewater treatment plant with a total cost of $93.6 million is included in the budget to ensure capacity for service to the City’s final buildout population. The project is also required to keep the system in compliance with increasingly stringent water discharge requirements. The City has secured a low interest rate State Water Resources Control Board Revolving Fund (“SRF”) loan to fund the majority of this project with a 30-year term. In addition, this project includes a biosolids dryer component funded by wastewater operations revenue, wastewater replacement funds and wastewater development impact fees. The cost of this expansion is included in the Capital Project Funds sections of the budget. Loan repayments will be funded from a combination of wastewater development impact fees and wastewater operations revenue.

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Introduction
• Roadway Projects
There are two significant roadway improvement capital projects included in the budget. First, the Lone Tree Way Roadway Improvements project will construct infrastructure improvements along a portion of Lone Tree Way from O’Hara Avenue to Tilton Lane and include a new traffic signal at Smith Road and Lone Tree Way. This project will address transportation infrastructure needs ad anticipated traffic increases from construction of a new K-8 school on Smith Road. Second, the Brentwood Boulevard Widening North – Phase I project will complete widening of Brentwood Boulevard, underground existing overhead utilities and construct a new bridge over Marsh Creek to the extent of available funding. The funding and costs of these projects are included in the Capital Project Funds sections of the budget.
• Vineyards at Marsh Creek - Event Center/Amphitheater
Included in the FY 2022/23 – 2023/24 Strategic Plan is a capital project with a total cost of $9.4 million that will construct an outdoor amphitheater and event center at the Vineyards at Marsh Creek development. Current cost estimates are exceeding the available budget and the City is researching various alternatives and options for this project. The cost of this project is included in the Capital Project Funds sections of the budget. • Legislative Issues
On January 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” (“Act”). On February 1, 2023, The California Business Roundtable, the Howard Jarvis Taxpayers Association, and other business associations and taxpayer advocates qualified the measure for the November 2024 general election ballot.

The Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, may make it more difficult to impose fines and penalties for violation of state and local laws, and would make it more difficult to defend those revenues in court. The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. Local government revenue-raising authority is currently substantially restricted by state statute and constitutional provisions, including the voter approved provisions of Proposition 13 of 1978, Proposition 218 of 1996, and Proposition 26 of 2010. The Act adds and expands restrictions on voters and local government tax and fee authority.

Governor Gavin Newsom and the Legislature filed a legal challenge with the California Supreme Court in fall of 2023, arguing that the measure should be removed because it unlawfully revises the State constitution and would impair essential public services. Oral arguments on the challenge heard before the Supreme Court in early May 2024 could result in a decision to remove the Act from the November 2024 ballot. The court is expected to issue a decision by the end of June 2024.

Should the measure remain on the ballot and be passed by the voters, the measure would have significant negative impacts on City operations and core service delivery. Specific impacts would require further assessment, however, it is reasonable to expect increased legal

23 2024/25 – 2025/26 Operating Budget
Introduction
costs associated with fee/tax challenges, increased staff workload due to stringent cost allocation requirements, decreased revenues from more limited revenue sources, and loss of future flexibility in raising revenues.

In 2016, the State Legislature Passed Senate Bill (SB) 1383 which requires the separation of food waste and organics from garbage collection. The regulations associated with SB 1383 began on January 1, 2022, with compliance requirements being phased in. By 2025, SB 1383 requires a 75% reduction in the disposal of organic waste. The City has been preparing for the implementation of SB 1383 regulation and the City Council approved a Strategic Initiative (Organics Management) as a part of the FY 2022/23 – FY 2023/24 Strategic Plan. The Solid Waste Organics Diversion (CIP #542-54021) project details the City’s proposal to comply with these regulatory requirements and the associated costs. Compliance with SB 1383 will increase the City’s cost to provide Solid Waste service.

In September 2020, the State of California, by Executive Order N-79-20, set a goal for all operations where feasible that 100 percent of in-state sales of new passenger cars and trucks be zero-emission by 2035; as well as medium and heavy-duty trucks by 2045. In April 2023, the California Air Resources Board approved the Advanced Clean Fleets regulation, which is incorporated into the California Government Code. The regulation requires 50% of fleet vehicles purchased with a gross vehicular weight rating of >8,500 pounds beginning in 2024 to be zero emission vehicles (ZEV), with 100% of purchases being ZEV beginning in 2027.

The City’s Fleet Electrification project has been incorporated into the City’s CIP to begin the necessary infrastructure improvements to comply with this regulation.

In August 2022, the United States Congress passed the Inflation Reduction Act (IRA) which represents significant legislation to invest in clean energy and climate change, a majority of which will be delivered through tax incentives. The IRA extends the Investment Tax Credit (ITC) in which qualified projects can receive a tax credit of 30%. For non-taxable entities, the ITC provides for a direct pay option which allows the credit to be refundable. The City is actively pursuing ITC refundable credits for the Solid Waste Organics Diversion project and the Fleet Electrification project, to help offset a portion of the costs.

Long-Range Planning
The General Fund Fiscal Model (“Fiscal Model”), which provides detailed analysis and projections of the next ten years of revenues, expenses and fund balance of the General Fund, offers the City Council a tool to help determine the financial feasibility of any priorities or goals they may wish to consider. The Fiscal Model also alerts management and the City Council to potential shortfalls and allows the time to develop practical solutions with minimal impacts to the City’s residents. Balancing the needs of the community and the vision of the City Council with the City's capacity to fund and maintain specific programs must be carefully considered.

The Fiscal Model is continually updated to reflect the most current economic conditions. Over the past two years, there have been significant economic trends that have directly impacted the Fiscal Model. Recent high inflation rates will have an impact in the short-term on ongoing operating costs

24 2024/25 – 2025/26 Operating Budget
Introduction
in the forecast. Property taxes are forecast to grow at a more moderate pace, as the housing market has cooled following rapid price gains and interest rate increases. Sales tax growth is also expected to slow in the first year of the model as price inflation dampens consumer demand.

The goal of a long-term forecast is not to “predict the future”, but rather illustrate long-term trends and determine the long-term sustainability of current spending plans. With this type of planning year-to-year economic cycles do not necessarily require immediate operational reactions. Rather, the Fiscal Model ensures the City has sufficient resources and flexibility to navigate economic cycles, while highlighting structural changes that would be necessary if economic conditions remain challenging over a longer time frame. In this way, the Fiscal Model, the General Fund 30% reserve and the City’s Pension/OPEB Obligation Fund work in conjunction to ensure fiscal continuity of operations during varying economic cycles.

The current draft of the Fiscal Model has been built using the following assumptions and impacts:
• Continuation of modest single-family housing development over the next five years with an increase in multi-family housing development.
• Pension and retiree medical costs increases in the short-term, followed by a longer-term plateau, with decreases not occurring until after the 10-year projection. These projections are based on the most current actuarial estimates and are updated annually. The projected increases would be far more significant if not for the City’s continued efforts to prefund these obligations.
• Placeholder cost of living increases for personnel salaries of 3% per year. The City’s contracts with all labor bargaining groups expire on June 30, 2024 and successor contracts are currently under negotiation.
• Health care cost increases are projected to remain elevated and exceed inflation projections over the long-term.
• Short-term inflation remains at elevated levels, with a decline towards the Federal Reserve’s 2% target for the longer term.
• Projected investment income returns remain relatively high in the short-term, reflecting increased bond and treasury yields. Average annual returns are projected to fall from 3.75% in the short-term to 2.5% over the last half of the model. • Costs are included for State fleet electrification regulation and future updates to the City’s General Plan to ensure conformance with recent housing legislation. • Future estimate operational cost for the Sand Creek Sports Complex and Vineyards at Marsh Creek - Event Center/Amphitheater to be constructed in upcoming fiscal years.

The Fiscal Model also incorporates State, national and global economic factors which may impact the City’s financial outlook. The State has a history of mitigating budget shortfalls with solutions that affect local governments. Any changes in the State’s economic outlook, or proposed solutions to potential budget shortfalls, will be included in the Fiscal Model to assess impacts to the City and afford time to develop strategies to minimize impacts. Impacts from favorable legislation, such as funding allocations for projects or services, would also be included.

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Introduction
In addition to the General Fund Fiscal Model, the City utilizes ten-year Enterprise fiscal models to provide detailed analysis of revenues, expenditures and fund balance for the Water, Wastewater and Solid Waste Enterprise Funds. The charges for these services are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Rate studies are developed to include future enterprise operating expenditures and capital budgets used as a basis to project revenues and expenditures during the ten-year period. These models are used to assess the impacts of higher or lower population growth trends, impacts of drought water conservation and other factors, which may affect the financial future of the Enterprise operations. Long-term employee cost projections are imported from the General Fund Fiscal Model to further aid these projections.

Long-Term Concerns and Issues
The City is continually identifying and assessing long-term challenges and developing strategies to ensure that the high quality of life our residents expect is sustained. Following are some of the more significant of these challenges.
• Unfunded Obligations
While the City has taken aggressive steps to reduce its unfunded pension and retiree medical obligations, future contributions are heavily influenced by the annual investment returns generated by CalPERS. With the City offering defined benefit plans, any shortfall in investment earnings must be made up by the City. As such, the City cannot truly control or fully plan for future benefit costs. Due to the poor investment returns generated by CalPERS in 2022, the City’s required annual pension contributions will increase, beginning in FY 2024/25. Discretionary prefunding contributions included in this budget are an important strategy to mitigate the risk of future variability in CalPERS rate of return on investments. • Inflation Rates
After reaching a four-decade high of just under 8% in 2022, inflation has moderated in recent months to a rate of 3.5%. This rate is well above the Federal Reserve long-term target for inflation of 2%. Economic forecasts indicate that the annual inflation rate should eventually end up closer to the 2% target; however, higher inflation has been hard to tame. While the budget includes capital, supplies and services expenditure increases including a factor for inflation, persistently high long-term inflation would have a significant impact on the City, as it has very little control over revenue increases.
• Jobs/Housing Ratio
Job creation within the City has historically not kept pace with the growth of the population. To assist in achieving the goal of a jobs/housing balance, the City completed a specific plan for development in an area identified as the Innovation Center @ Brentwood. The Innovation Center @ Brentwood, a 373-acre project site located in the northwest corner of Brentwood, is a projected focal point for jobs and mixed-use development. A recently updated specific plan for the area includes economic development strategies, goals and policies, with a focus on economic growth in a wide range of businesses to support job growth. This is one of the strategies designed to generate economic

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Introduction
development and achieve the balanced jobs/housing ratio of 1.5 as dictated in the City’s General Plan.
• State Laws
An increasing number of State laws related to housing and land use are anticipated every legislative session. It is anticipated that these laws will trend towards increasing State oversight over housing and land use issues and reducing local control. The City will explore options to manage the workload related to updating policies and practices in accordance with new State requirements.
• Regional Transportation Improvements
Growth associated with development continues to strain local and regional transportation infrastructure. Existing roadways need increased funding to maintain their overall health and, to accommodate increasingly diverse transportation, means utilizing new technologies.

Long-term regional projects include the State Route 239 project, currently in the environmental clearance phase, and possible Bay Area Rapid transit eBART extension into Brentwood. Consistent with the City’s General Plan, the City will continue to engage with regional transportation agencies to tackle these challenges. • Water Supply
Increasing water demand due to growth, periods of drought, challenges to delta water quality, and regulatory requirements necessitate that the City explore options for expansion of water supply for the buildout of the City. Consistent with the City’s General Plan, several programs and projects will be explored to protect and expand the supply and quality of water in the City.
• Securing Alternative Infrastructure Funding
The dissolution of redevelopment left the City without the estimated $156.0 million future redevelopment tax increment and bond issuances, which would have provided funding for several capital improvements in the former redevelopment area. Most significant of these are improvements along the Brentwood Boulevard corridor. Although funding for smaller projects in this area has been identified, at this time a viable alternative funding source for completing the desired infrastructure has yet to be developed.

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Introduction

STRATEGIC PLAN
Overview
Throughout the history of Brentwood, investments in infrastructure and strong fiscal management have helped to establish a quality of life which sets Brentwood apart from other cities in the region.

Maintaining this quality of life is a high priority for the City Council and requires significant planning and strategic allocation of resources. In addition to the two-year Operating Budget, five-year Capital Improvement Program (CIP), the Fiscal Model and numerous master plans, the City’s Strategic Plan strengthens both the City’s planning efforts and the identification of high priorities for the City Council. These priorities are reflected in the Strategic Plan’s six focus areas shown below.

Strategic Plan Process
The City’s strategic planning process generally begins during the year before the adoption of a new two-year Operating Budget. Historically, in December, the City Council held a public planning workshop to discuss a draft Strategic Plan. City Council direction on various initiatives was provided at the workshop and the City’s financial capacity to fund the Strategic Plan was considered.

After the Strategic Plan workshop and through the month of January, departments evaluated the draft Strategic Plan Initiatives and used a People, Time and Money (PTM) process to ensure the initiatives had the funding, staff and schedule for successful completion in the upcoming two fiscal years.

Following that analysis, an updated Strategic Plan was presented to the City Council including: 1) the Strategic Plan document, 2) a detailed work plan for each initiative and 3) an updated financial summary from the completion of the PTM process. The City Council would then adopt the Strategic Plan, with modifications as needed, and direct staff to include the costs in the Operating and CIP budgets, as well as the Fiscal Model. The City’s current FY 2022/23 – 2023/24 Strategic Plan was adopted by the City Council in February 2022. This Budget includes the funding necessary to complete carryover initiatives from the current Strategic Plan.

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A new Strategic Plan and accompanying Strategic Plan initiative costs have not yet been considered for the current budget. With City Council direction, any budgetary impacts of a new Strategic Plan contemplated in 2025 would be incorporated into the budget in the review process that takes place every six months.

Every six months, City staff will prepare a report for the City Council of actual work progress on each initiative, including financial and budget reporting, as part of the City’s performance-based budget process. Please refer to the Department and Performance Budgets section, beginning on page 102, for information on the specific initiatives defined for each goal.

The approved City of Brentwood Strategic Plan FY 2022/23 – FY 2023/24 can be found on the City’s website.

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Strategic Plan Focus Areas and Goals
The City’s Strategic Plan consists of six focus areas. The goals referenced under each focus area are from the FY 2022/23 – 2023/24 Strategic Plan.

Focus Area 3: Economic Development
Mission Statement: Maintain and enhance Brentwood’s quality of life by developing an economy that is vibrant and diverse.

Goal 1 – Implement strategic actions identified in the Downtown and Brentwood Boulevard Specific Plan Updates Goal 2 – Enhance the City’s marketing and economic development programs capturing retail leakage, promoting local businesses and key investments
Focus Area 4: Community Development
Mission Statement: Develop Brentwood as a high quality, diverse and balanced community while protecting natural and agricultural resources.

Goal 1 – Implement Zoning Ordinance update to maintain compliance with State law, including developing objective design standards (SB 330 compliance)
Goal 2 – Protect natural and agricultural resources
Goal 3 – More effectively engage and educate the community Goal 4 – Provide a diversity of housing opportunities, including equitable distribution of affordable housing for all socioeconomic segments of the Brentwood community Focus Area 1: Public Works
Mission Statement: Provide a safe, efficient, sustainable and environmentally sound infrastructure system that delivers economic opportunity and enhances the quality of life in Brentwood.

Goal 1 – Transportation: Proactively engage and collaborate with regional transportation agencies and stakeholders to facilitate the safe and efficient movement of people and goods Goal 2 – Water, Wastewater and Solid Waste Services: Provide safe and sustainable water, wastewater and solid waste services for the build-out of the City per the City’s General Plan Focus Area 2: Police Services
Mission Statement: To protect and enhance the quality of life in our community through uncompromised dedication, professionalism, integrity, and innovative police services.

Goal 1 – Enhance Community Engagement by strengthening connections with underrepresented community groups, youth, seniors, mentally ill, and the unsheltered

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Focus Area 5: Parks and Recreation Services
Mission Statement: Provide community and neighborhood services to enrich lives and to maintain facilities, infrastructure and resources, to maximize Brentwood’s high quality of life.

Goal 1 – Implement short-term high priority Parks and Recreation Master Plan projects Goal 2 – Develop a plan to implement long-term high priority Parks and Recreation Master Plan projects Goal 3 – Enhance cultural and performing arts opportunities for Brentwood Goal 4 – Expand and enhance recreation opportunities by increasing programming for seniors, youth, and teens; implementing adaptive recreation
Focus Area 6: Fiscal Sustainability and Operational Management Mission Statement: Provide high quality services that are cost efficient in a fiscally responsible and transparent manner.

Goal 1 – Classification & Compensation Study
Goal 2 – IT Master Plan implementation

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Introduction

BUDGET PROCESS
The City of Brentwood has adopted a number of fiscal management policies which help guide it through budget preparation and fiscal decision-making. In addition to these policies, the Finance and Information Systems Department utilized the Strategic Plan, the Fiscal Model, internal Enterprise and Replacement fiscal models and the CIP during the preparation of the two-year Operating Budget.

This method of budgeting has served the City well by delivering both relatively balanced budgets and capital improvements that have provided well-planned infrastructure throughout the City’s history. In addition, it allows for long-term planning, quick analysis of impacts of proposed changes and memorializes year-to-year fiscal decision making of City Council priorities.

In addition to the documents discussed above, the Finance and Information Systems Department also prepares a “snapshot” Budget-in-Brief document which provides a condensed version of key information from both the Operating Budget and the CIP. The Budget-in-Brief offers readers an overview of the City’s fiscal position for the current year and is an important part of the City’s public information and outreach objective. Additionally, quarterly financial reports are available on the City’s web page to ensure the community has ongoing access to financial information in a graphical, interactive way. All of these documents are readily available on the City’s website at the following location: www.brentwoodca.gov.

Budget Policies and Guidelines
The City has adopted several financial policies that serve as a guide in the development, administration and management of the Operating Budget. These include: setting the City’s user fee cost recovery goals; directing the use of capital financing; and guiding debt management. They can be found on the City website at Council/Administrative Policies (Finance). • Budget and Fiscal Policies
The purpose of this policy (Council/Administrative Policy 10-5) is to establish guidelines for budget development, financial reporting and budget administration and management, as well as outline the City’s fiscal policies in regard to user fee cost recovery goals, fund balance, reserves, internal service funds, OPEB funding, appropriations limitation, capital improvement and human resource management.
• Capital Financing and Debt Management Policy
The purpose of this policy (Council/Administrative Policy 10-23) is to establish guidelines for the use of capital financing and set practices for prudent debt management. • Investment Policy
The purpose of this policy (Council/Administrative Policy 10-4) is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment policy and to organize and formalize investment-related activities. This policy is based on State law and prudent money management and all City funds will be invested in accordance with the policy and all applicable California Government Codes. Bond proceeds will be invested pursuant to the relevant bond documents.

32 2024/25 – 2025/26 Operating Budget
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Following are some key budgetary principles that guided the City in preparation of this budget:
• The City will strive to maintain a balanced budget, with revenues (including transfers from the Pension/OPEB Obligation Fund, used for budget stabilization purposes) covering ongoing expenditures, for the duration of the two-year budget
• Revenues are conservatively estimated
• The General Fund maintains a 30% unassigned fund balance • For capital projects, all associated costs are identified in order to properly consider future financial impacts
• Each Enterprise and Internal Service Fund reflects the true cost of operation, including direct and indirect costs of services provided by the General Fund • Activities supported by user fees should be fully cost recoverable unless City Council direction calls for less than full recovery (e.g. certain Parks programs) • The City will incorporate all budgetary decisions into its fiscal models in order to ensure responsible, long-range financial planning
The two-year Operating Budget is adopted no later than June 30th for the ensuing fiscal year. Every six months after the adoption of the budget, the City Council formally reviews the City’s fiscal condition and amends appropriations as needed. The City Council may, by majority vote, amend or supplement the budget at any time after its adoption.

The City Manager and the Director of Finance and Information Systems both have the authority to make administrative adjustments to appropriations as long as there is no funding source incompatibility and provided those changes do not increase the overall appropriations except as allowed in the Budget and Fiscal Policies. All budget transfers require the approval of the Director of Finance and Information Systems, except those affecting personnel which must be approved by the City Manager.

Budget Development
The Finance and Information Systems Department is responsible for both preparing and monitoring the City’s Operating Budget. The Finance and Information Systems Department begins the budget process with the development of the Operating Budget project schedule approximately nine months prior to the start of the fiscal year. The project schedule ensures the City meets the mandatory June budget adoption deadline.

Development of the Operating Budget is also dependent upon the Strategic Plan process, which is described in detail beginning on page 27. As discussed earlier, this Budget includes the funding necessary to complete carryover initiatives from the 2022/23 – 2023/24 Strategic Plan. A new Strategic Plan and accompanying Strategic Plan initiative costs have not yet been considered for this Budget, due to the change in the timing of the Strategic Plan cycle.

The budget development process begins in December when the Operating Budget is launched and important information, due dates and budget process changes are provided by the Finance and Information Systems Department to all City departments. In addition, budget documentation is provided to the departments with instructions for the current budget process to ensure the Operating Budget is prepared in a manner consistent with current policies and guidelines. The

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budget documentation includes all instructions, forms and information specific to the current budget cycle.

Between December and March, all departments enter, review and adjust budgets as needed to ensure the proposed two-year budget meets all of the defined guidelines. Departments are responsible for entering budgets for supplies and services and preparing personnel requests and reallocations, required to both achieve the assigned strategic initiatives and maintain quality service levels for the community. The Finance and Information Systems Department is responsible for preparing revenue, internal service, debt service, transfer and personnel related budgets.

Budget reports are prepared for the Director of Finance and Information Systems, the City Manager and department directors to review. Once the reviews are completed and all revisions have been incorporated into the draft budget, the Finance and Information Systems Department schedules a meeting with the City Council Budget Review Ad Hoc Committee (“Ad Hoc Committee”). The Ad Hoc Committee is provided both detailed and summarized budget reports, along with information on new personnel, programs and costs proposed in the draft budget prior to the presentation of the budget to the full City Council.

The Finance and Information Systems Department then prepares the Operating Budget document for presentation and review at an Operating Budget/Fiscal Model Workshop, usually held in May. This workshop gives the City Council the opportunity to give their direction on the proposed budget, but also provides a way for the community to be involved in the budgeting process. Notification of the workshop time and date is provided to the public in advance on the City website and on social media.

At the workshop, public input is welcomed through in-person or call-in public comment options. The proposed budget is incorporated into the City’s ten-year General Fund Fiscal Model projection. The projection is presented at the workshop for City Council consideration of the long-term General Fund impacts of the proposed budget. The Finance and Information Systems Department incorporates changes from the Workshop into the draft budget and the final Operating Budget document is presented to City Council for adoption in June. The legal level of budgetary control is established at the fund level and on a basis consistent with generally accepted accounting principles. Once adopted, the budget can be amended or supplemented at any time by a City Council majority vote.

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FUND STRUCTURE
Below is a graphic illustrating the City’s fund structure. See the Guide to Funds – Description of Funds, beginning on page 212, for a complete description of individual funds. (1) The General Fund, Water Enterprise Fund and Solid Waste Improvements Fund are major budgetary funds in both budget years. (2) Due to immateriality, the City’s Permanent fund is included with Special Revenue Funds for budget presentation.

Fund Accounting
The City uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities. A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific activity. The City maintains the following fund types which are all subject to appropriation.

Governmental Fund Types
• General Fund is the primary operating fund of the City and accounts for all financial resources, except those required to be accounted for in another fund. • Special Revenue Funds account for specific revenues that are restricted by law or administrative action to expenditures for specified purposes. • Permanent Funds account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs for the benefit of the City and its citizens.

All Funds
Governmental Fund Types
General
Fund (1)
Special
Revenue
Funds
Permanent
Funds (2)
Debt
Service
Funds
Capital
Project
Funds (1)
Proprietary Fund
Types
Enterprise
Funds (1)
Internal
Service
Funds
Fiduciary Fund
Types
Custodial
Funds
PrivatePurpose
Trust
Funds

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• Debt Service Funds account for the accumulation of resources for and payment of, interest, principal and related costs on long-term debt.
• Capital Project Funds account for financial resources segregated for the acquisition and construction of major capital facilities or infrastructure.

Proprietary Fund Types
• Enterprise Funds account for operations in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is to be financed or recovered primarily through user charges.
• Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City or to other governmental units on a cost-reimbursement basis.

Fiduciary Fund Types
The financial activities of these fund types are generally excluded from the City’s Operating Budget, as they are not resources or obligations of the City. However, budgets are presented for Special Assessment District Bonds for informational purposes in a separate Fiduciary Fund section of the document.
• Custodial Funds account for assets held by the City as trustee or agent for individuals, private organizations, other governmental units and/or other funds. These funds are custodial in nature (assets correspond with liabilities) and do not involve measurement of results of operations. Two of the City’s custodial funds that are used as pass-through funds and an Other Employee Benefit Trust Fund - Variable Annuity Life Insurance Company (VALIC), which includes assets and activities of the City’s single-employer deferred compensation plan held by a third-party administrator are included in the City’s Annual Comprehensive Financial Report (ACFR), but not appropriated in this Operating Budget. • Private-Purpose Trust Funds account for the activities and financial position of the Successor Agency to the former Brentwood Redevelopment Agency (RDA). These funds are held in a trust arrangement for the benefit of local taxing entities, including the City of Brentwood. The budget for the Successor Agency to the RDA is adopted separately by the Successor Agency.

Major Budgetary Fund
A fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget are considered major budgetary funds. The General Fund meets the criteria for classification as a major budgetary fund each fiscal year. In this budget cycle, two additional funds meet this criteria, the Water Enterprise Fund and the Solid Waste Improvements Fund.

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Basis of Accounting
The financial statements for the City of Brentwood are prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

Governmental fund and fiduciary fund types use the modified accrual basis of accounting which recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “Available” means collectible within the current period, or soon enough thereafter, to be used to pay liabilities of the current period. The accrual basis of accounting is utilized by proprietary fund types. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

Basis of Budgeting
The budget for governmental and fiduciary fund types has been prepared using a modified accrual basis. The accrual basis of accounting has been used to prepare the budgets for the propriety funds.

The budget is prepared on the basis of GAAP and is in conformity with the City’s audited ACFR.

During development of the budget, cost allocations are utilized. Personnel costs are allocated to one or more department or division depending on the assigned scope of work. Supplies, services and capital outlay costs are budgeted on a line-item basis with shared costs allocated across the benefitting departments or divisions. In addition, internal service funds, such as those that provide vehicle maintenance, recover costs of operation from departments based on the proportionate share of service received. For internal service funds that provide replacement funding for assets, funding is recovered in a proportionate share from the departments based on replacement value and useful lives of the assets within the department.

Investments
The investment policies and practices of the City of Brentwood are based on State law and prudent money management. All funds are invested in accordance with the City’s Investment Policy and California Government Code Sections 53601 and 53646. The investment of bond proceeds is further restricted by the provisions of relevant bond documents. The City's primary objectives for investments, in order, are safety, liquidity and return on investment. The City apportions interest earnings to all funds based on their average quarterly cash balance in accordance with GASB Statement No. 31. Information regarding the City’s Investment Policy can be found on page 31.

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LONG-TERM DEBT
Debt Policy and Limits
The debt management policies contain guidelines that outline the restrictions that affect the amount and type of debt issued by the City, the issuance process and debt portfolio management. Debt management policies improve the quality of decisions, provide justification for the structure of debt issuance, identify policy goals and demonstrate a commitment to long-term financial planning, including a multi-year capital plan. Adherence to debt management policies signal to rating agencies, and the capital markets, a government is well managed and should meet its obligations in a timely manner. Information regarding the City’s Capital Financing and Debt Management Policy can be found on page 31.

Pursuant to State of California Government Code Section 43605, the City’s legal bonded indebtedness shall not exceed 3.75% of the assessed value of all real and personal property in the City. In accordance with this, only the City’s 2002 General Obligation bonds are subject to the legal limit. The 2002 General Obligation bonds were used to finance a portion of a new police facility and the debt is serviced from tax assessments. As of June 30, 2023, the outstanding indebtedness was $4,773,990 with a debt limit of $482,604,431, leaving a legal debt margin of $477,830,441.

There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. The City’s general purpose debt level is minimal and does not have a significant impact on the ability of the government to provide general services. The City’s Enterprise Fund rates are set at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs.

City Debt Obligations
• General Obligation Bonds Series 2002
On February 28, 2002, the City issued $5,999,976 in
General Obligation Bonds Series 2002 to finance
the construction, acquisition and improvement of a
new police station. The interest rates on these
bonds range from 3.625% to 5.68%. The General
Obligation Bonds Series 2002 shall accrete in value
by the accumulation of earned interest from its
initial denominational (principal) amount with such
interest compounded semiannually on January 1
and July 1.

Year Ending
June 30 Principal Total
2024 $ 655,000 $ 655,000
2025 690,000 690,000
2026 725,000 725,000
2027 760,000 760,000
2028 800,000 800,000
2029-2031 2,645,000 2,645,000
Subtotal 6,275,000 $ 6,275,000
Future Accretion (1,425,972)
Total $ 4,849,028
General Obligation Bonds Series 2002

38 2024/25 – 2025/26 Operating Budget
Introduction
• 2015 Lease Financing
On December 17, 2015 the Authority issued $11,515,000 in a direct placement with Capital One Public Funding, LLC to finance the acquisition and construction of a new Library and a Municipal Service Center, along
with other public capital
improvements. The City’s Police
Department building is pledged as
collateral for this debt issuance.

Debt service payments will be
made over 20 years at an interest
rate of 3.25%. Debt service will
primarily be funded by utilizing
prior bond refinancing savings
with the balance funded by
various sources, including the
Solid Waste, Water and
Wastewater Enterprises and Community Facilities Development Impact Fees. • 2019 Civic Center Project Lease Revenue Refunding Bonds On April 2, 2019, the Authority issued $32,210,000 in Civic Center Project Lease Revenue Refunding Bonds, Series 2019, to refinance the 2009 Civic Center Project Lease Revenue Bonds. The City’s Civic Center is pledged as collateral for this debt issuance. Annual debt service payments, including interest at 4.00% to 5.00%, range from $852,800 to $2,715,650.

The refunding resulted in overall debt service savings of $17,856,031. The net present value of the debt service savings is called an economic gain and amounted to $8,988,082. If an event of default occurs, as defined in the indenture of trust, the bond trustee, or not less than a majority of owners of the bonds outstanding at that time, are entitled to declare the principal and accrued interest for all bonds outstanding to be due and payable immediately.

The 2009 Civic Center Project Lease Revenue Bonds were issued to finance the construction of a new city hall, community center and senior center, plus library improvements and other public capital improvements.

The Civic Center Project Lease
Revenue Refunding Bonds, Series
2019, are secured by a lien on, and
pledge of, revenues under a Trust
Agreement. “Revenues” means all
amounts received by the Trustee,
U.S. Bank, as payment on principal
and interest. The City’s revenue
sources, as described in the
Official Statement, are pledged
payments from the Brentwood
Year Ending
June 30 Principal Interest Total
2024 $ 525,000 $ 262,681 $ 787,681
2025 545,000 245,294 790,294
2026 560,000 227,338 787,338
2027 580,000 208,813 788,813
2028 600,000 189,638 789,638
2029-2033 3,290,000 639,113 3,929,113
2034-2036 2,245,000 110,905 2,355,905
Total $ 8,345,000 $ 1,883,782 $ 10,228,782
2015 Lease Financing
Year Ending
June 30 Principal Interest Total
2024 $ 1,405,000 $ 1,264,275 $ 2,669,275
2025 1,475,000 1,192,275 2,667,275
2026 1,550,000 1,116,650 2,666,650
2027 1,630,000 1,037,150 2,667,150
2028 1,715,000 953,525 2,668,525
2029-2033 8,835,000 3,433,125 12,268,125
2034-2038 7,985,000 1,381,550 9,366,550
2039-2040 2,560,000 84,000 2,644,000
Total $ 27,155,000 $ 10,462,550 $ 37,617,550
2019 Civic Center Project Lease Revenue Refunding Bonds

39 2024/25 – 2025/26 Operating Budget
Introduction
Redevelopment Agency (now Successor Agency) pursuant to the reimbursement agreement, pledged payments from the Community Facilities Districts (CFD) local obligations and pledged payments from the Capital Improvement Financing Program (CIFP) revenues.

As mentioned previously, the Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the Successor Agency’s Recognized Obligation Payment Schedule (ROPS) and approved by the California State Department of Finance (“DOF”). As of June 30, 2023, the Successor Agency listed this debt obligation on its ROPS and the DOF has approved its inclusion for each applicable ROPS period through June 30, 2025.
• Capital Improvement Revenue Refunding Bonds Series 2021 A & B On November 2, 2021, the Authority issued $14,450,491 in Capital Improvement Revenue Refunding Bonds Series 2021A and 2021B in a direct purchase with City National Bank to finance the refunding of the
2012 Capital Improvement
Revenue Refunding Bonds.

The Brentwood Family
Aquatic Complex is pledged
as collateral for this debt
issuance and the interest
rates on these bonds range
from 0.63% to 1.35%. The
refunding resulted in overall
debt service savings of
$2,943,607.

The refunded 2012 bonds were issued to: 1) finance the refund of the 2001 CIP Bonds under a facilities lease and 2) refund a series of tax allocation bonds issued by the Brentwood Redevelopment Agency.

The Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the Successor Agency’s ROPS and approved by the DOF. This pledge ends upon repayment of the Successor Agency’s $12,157,125 remaining share of debt service on the bonds, as of June 30, 2023, which is scheduled to occur in 2032. For FY 2022/23, gross tax revenue available to be distributed to the Successor Agency totaled $10,823,811, which represented coverage of 7.98 times the Successor Agency’s $1,355,875 debt service. The remaining portion of the bonds is repayable from any source of the City’s available funds and will primarily be funded from the Roadway Development Impact Fee Fund and prior bond refinance savings.

Year Ending
June 30 Principal Interest Total
2024 $ 1,548,899 $ 161,673 $ 1,710,572
2025 1,557,891 142,938 1,700,829
2026 1,581,671 121,746 1,703,417
2027 1,609,209 100,207 1,709,416
2028 1,288,904 80,645 1,369,549
2029-2032 5,329,252 145,024 5,474,276
Total $ 12,915,826 $ 752,233 $ 13,668,059
Capital Improvement Revenue Refunding Bonds Series 2021 A & B

40 2024/25 – 2025/26 Operating Budget
Introduction
• Successor Agency Payment Plan
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by Assembly Bill 1484 (AB 1484) on June 27, 2012. This legislation suspended all new redevelopment activities and dissolved redevelopment agencies as of February 1, 2012.

The City of Brentwood elected to become the Successor Agency to the former Brentwood Redevelopment Agency on January 10, 2012.

Section 34179.5 of AB 1484 required all successor agencies to hire a licensed accountant, approved by the county Auditor-Controller, to conduct two Due Diligence Reviews (DDRs) to determine the balances available to be redistributed to other taxing entities. The two DDRs were focused on 1) the Low and Moderate Income Housing Fund, and 2) Other Funds and Accounts.

The Low and Moderate
Income Housing Fund DDR
determined that an
unobligated balance of
$4,072,553 was available for
redistribution and the
Successor Agency remitted
this amount to the Contra
Costa County Auditor
Controller in February 2013. The Other Funds and Accounts DDR determined that the unobligated balance was $0, and the Successor Agency filed the DDR report with the DOF.

The DOF, during their review of the DDR, determined that transfers made pursuant to preexisting contracts and construction commitments were invalid and adjusted the DDR accordingly, issuing a DDR demand of $14,955,931.

In response to the $14,955,931 DDR demand, the City and Successor Agency filed suit against the DOF claiming, among other things, that 1) the DOF’s DDR determination violated Proposition 22, which added Article XIII, Sections 24(b) and 25(a)(7) to the California Constitution and prohibits the Legislature from reallocating tax increment; 2) at the time the transfers were made by the former Redevelopment Agency the transfers were legally valid and made pursuant to enforceable obligations and third party contracts; 3) the transfers were for the payment of goods and services which were broadly exempted from reversal as defined in California Health and Safety Code Section 34179.5(b)(3); and 4) the DOF’s enforcement of its final determination was unconstitutional. The City and Successor Agency’s legal challenge was ultimately unsuccessful and legal remedies were exhausted when the California Supreme Court declined to hear the case on September 16, 2015.

On December 9, 2015, the City, as Successor Agency, entered into a ten-year interest free payment plan with the DOF to pay the DDR demand of $14,955,931. The annual payments range from $357,796 to $1,826,938.

Year Ending
June 30 Principal Interest Total
2024 $ 1,826,938 $ 0 $ 1,826,938
2025 1,679,948 0 1,679,948
2026 824,328 0 824,328
Total $ 4,331,214 $ 0 $ 4,331,214
Successor Agency Payment Plan

41 2024/25 – 2025/26 Operating Budget
Introduction
Enterprise Debt Obligations
• State Water Resources Loan (Recycled Water Projects)
In July 2017, the City entered into a loan and grant agreement with the State of California’s State Water Resources Control Board for a not-to-exceed amount of $20,802,000 to fund the City’s Water Recycling Projects, which consisted of two City projects: the Non-Potable Storage Facility, and Citywide Non-Potable Water Distribution System. Project financing includes a State Revolving Fund loan and grant funding in the amounts of $14,596,500 and $6,205,500, respectively.

Certain terms of the agreement were amended in September 2018, under which the City was to start construction no later than June 25, 2018, and amended again in March 2021, under which the construction was to be completed by June 30, 2022 and final disbursement request completed by December 30,
2022. Construction on the
project began December, 2017
and final disbursements were
received during FY 2022/23.

The loan bears annual interest
of 1.0%, which began accruing
with each financing
disbursement. During FY
2022/23 accrued construction
period interest, in the amount
of $235,434, was recorded as
principal, resulting in total
principal due to the State of
$14,831,934. Upon violation of
any material provision of the loan agreement, the State Water Resources Control Board has the option to demand immediate repayment of the current loan balance plus accrued interest and penalties.
• State Water Resources Loan (Wastewater Treatment Plant Expansion – Phase II Project) In December 2019, the City entered into a loan agreement with the State of California’s State Water Resources Control Board for a not-to-exceed amount of $65,102,000 to fund the City’s Wastewater Treatment Plant Expansion – Phase II Project. Project financing will consist of a State Revolving Fund loan of a not-to-exceed amount of $61,246,000 and a principal forgiveness component of $3,856,000. Certain terms of the agreement were amended in April 2021, under which the City was to have construction completed by December 31, 2024.

Construction on the project began in September 2020. The loan bears annual interest of

1.3%, which begins accruing with each financing disbursement. Beginning one year after completion of construction, repayment of the loan principal plus interest will be made annually according to the final payment schedule provided by the State. Upon violation of any material provision of the loan agreement, the State Water Resources Control Board has Year Ending
June 30 Principal Interest Total
2024 $ 430,178 $ 143,897 $ 574,075
2025 434,480 139,595 574,075
2026 438,825 135,250 574,075
2027 443,213 130,862 574,075
2028 447,645 126,430 574,075
2029-2033 2,306,275 564,098 2,870,373
2034-2038 2,423,918 446,455 2,870,373
2039-2043 2,547,563 322,811 2,870,374
2044-2048 2,677,513 192,858 2,870,371
2049-2052 2,240,019 56,279 2,296,298
Total $ 14,389,629 $ 2,258,535 $ 16,648,164
State Water Resources Loan (Recycled Water Projects)

42 2024/25 – 2025/26 Operating Budget
Introduction
the option to demand immediate repayment of the current loan balance plus accrued interest and penalties.

As of June 30, 2023, the City has incurred $44,149,639 of eligible project costs and financing disbursement requests have been submitted to the State. During FY 2022/23 accrued construction period interest, in the amount of $406,790, was recorded as principal, resulting in total principal due to the State of $44,556,429. Of this amount, $3,856,000 was allocated by the State as loan forgiveness in FY 2020/21, and the net amount of the principal due is $40,700,429.
• Water Revenue Refunding Bonds Series 2014
On December 4, 2014, the Authority issued $42,810,000 in Water Revenue Refunding Bonds Series 2014 (”2014 Water Bonds”), with
interest rates ranging from 3.0% to

5.0%, to refund a portion, $43,335,000,
of the Water Revenue Bonds, Series
2008.

The Authority has pledged future
water customer revenues, net of
specified operating expenses, through
2038 to repay the 2014 Water Bonds.

Below is a schedule of payments by fund for the fiscal years 2024/25 and 2025/26 for all long-term debt obligations discussed in this section.

Year Ending
June 30 Principal Interest Total
2024 $ 2,050,000 $ 1,459,850 $ 3,509,850
2025 2,160,000 1,357,350 3,517,350
2026 2,260,000 1,249,350 3,509,350
2027 1,715,000 1,136,350 2,851,350
2028 1,800,000 1,050,600 2,850,600
2029-2033 10,040,000 4,210,800 14,250,800
2034-2038 12,350,000 1,888,000 14,238,000
Total $ 32,375,000 $ 12,352,300 $ 44,727,300
Water Revenue Refunding Bonds Series 2014
Description Fund Principal Interest Total Principal Interest Total City Debt Obligations
General Obligation Bonds Series 2002 448 $ 690,000 $ 0 $ 690,000 $ 725,000 $ 0 $ 725,000 2019 Civic Center Project Lease Revenue Refunding Bonds 461 1,475,000 1,192,275 2,667,275 1,550,000 1,116,650 2,666,650 Capital Improvement Revenue Refunding Bonds Series 2021 A & B 445 1,557,891 142,938 1,700,829 1,581,671 121,746 1,703,417 2015 Lease Financing 466 545,000 245,294 790,294 560,000 227,338 787,338 Successor Agency Payment Plan 100 1,679,948 0 1,679,948 824,328 0 824,328 Enterprise Debt Obligations
State Water Resources Loan (Recycled Water Projects) 255 217,240 69,797 287,037 219,412 67,625 287,037 State Water Resources Loan (Recycled Water Projects) 590 217,240 69,798 287,038 219,413 67,625 287,038 State Water Resources Loan (Wastewater Treatment Plant Expansion) 1 255 0 0 0 1,160,932 549,241 1,710,173 State Water Resources Loan (Wastewater Treatment Plant Expansion) 1 590 0 0 0 521,578 246,760 768,338 Water Revenue Refunding Bonds Series 2014 250 612,904 61,290 674,194 612,904 61,290 674,194 Water Revenue Refunding Bonds Series 2014 560 1,547,096 1,296,060 2,843,156 1,647,096 1,188,060 2,835,156 Totals $ 8,542,319 $ 3,077,452 $ 11,619,771 $ 9,622,334 $ 3,646,335 $ 13,268,669 (1) Schedule includes estimate of debt obligations budgeted. Amortization schedule will be finalized by the State Water Resources Control Board after project completion.

FY 2024/25 FY 2025/26
Long-Term Debt Schedule of Payments by Fund
Fiscal Years 2024/25 and 2025/26

43 2024/25 – 2025/26 Operating Budget
Introduction
Assessment Districts (Non-City Funded Obligations)
There are various assessment districts in the City that have issued Special Assessment District Bonds, pursuant to the Municipal Improvement Act of 1915, and are not reported in the City’s long-term debt. These are special obligations payable from, and secured by, specific revenue sources described in the bond resolutions and official statements of the respective issues. The City acts merely as the collecting and paying agent for the debt issued by these districts and, as such, these bonds are not considered obligations of the City and are not reflected in the schedules in the previous pages.

CAPITAL IMPROVEMENT PROGRAM OVERVIEW
The City of Brentwood prepares an annual Capital Budget document that is separate from the Operating Budget document, although the two are closely linked. The CIP, as distinguished from the Operating Budget, is used as a planning tool for the City to identify the capital improvement needs of the City and align those needs with the appropriate timing and financing in a way that assures the most responsible and efficient use of resources. The Capital Budget is part of the Operating Budget, which appropriates funds for specific programs and projects. The five-year CIP is reviewed annually to enable the City Council to reassess projects in the program.

A capital project typically involves the purchase or construction of major fixed assets such as land, infrastructure, buildings and any permanent improvement including additions, replacements and major alterations having a long life expectancy. Additionally, capital projects may apply to: 1) expenditures, which take place over two or more years and require continuing appropriations beyond a single fiscal year, 2) systematic acquisitions over an extended period of time or 3) scheduled replacement or maintenance of specific elements of physical assets. Generally, items costing $10,000 or more are considered as capital purchases, although not all capital purchases are included in the CIP. Some capital purchases are budgeted directly in the Operating Budget, such as routine vehicle and equipment replacement purchases. For informational purposes, capital projects may also referred to as capital facilities, CIP projects and capital improvement projects.

For more information on the City’s CIP, please refer to the 2024/25 – 2028/29 Capital Improvement Program located on the City’s website: www.brentwoodca.gov. The information provided in this section is from the original adopted 2024/25 – 2028/29 CIP.

44 2024/25 – 2025/26 Operating Budget
Introduction
Capital Improvement Program Summary
The 2024/25 – 2028/29 CIP includes 52 City capital improvement projects with a total projected cost of $389.0 million. The charts below show the capital expenditures, by category, included in the Operating Budget for FY 2024/25 and FY 2025/26.

45 2024/25 – 2025/26 Operating Budget
Introduction
The FY 2024/25 and FY 2025/26 CIP funding sources are shown in the chart below.

(1) Excludes Other funding for the Solid Waste Organics Diversion project.

Significant CIP Projects
There are several notable, non-routine, capital expenditures included in the 2024/25 – 2028/29 CIP.

The table below lists these projects including: 1) budgeted expenditures for FY 2024/25 and FY 2025/26 and 2) future annual operating and maintenance (O & M) impact, in current dollars. The O & M impact costs include additional ongoing personnel, janitorial, maintenance or utility costs, which are included in the Operating Budget once a project is completed. Project descriptions are listed after the chart.

Project # Project Title 2024/25 2025/26
Future Annual
O & M Impact
31620 Brentwood Boulevard Widening North - Phase I $ 678,700 $ 2,822,000 $ 30,000 31695 Innovation Center @ Brentwood Infrastructure 9,591,102 0 50,000 31340 Lone Tree Way Roadway Improvements 2,843,300 1,851,700 12,000 52446 Sand Creek Sports Complex 18,606,669 0 128,125
56419 Brentwood Manor Water and Wastewater Rehabilitation 700,000 5,787,000 2,500 56414 Downtown Alley Rehabilitation - Midway and Park Way 1,897,100 0 1,500 59140 Wastewater Treatment Plant Expansion - Phase II 12,500,000 0 600,000 59207 Water and Wastewater Laboratory 2,150,000 0 10,000 Fleet Electrification 800,000 100,000 5,000
54021 Solid Waste Organics Diversion 46,625,000 42,175,000 TBD 37231 Vineyards at Marsh Creek - Event Center/Amphitheater Phase I 4,712,000 4,120,000 TBD $ 101,103,871 $ 56,855,700 $ 839,125

46 2024/25 – 2025/26 Operating Budget
Introduction
Project Descriptions
• Brentwood Boulevard Widening North - Phase I (CIP #336-31620) This project will continue the widening of Brentwood Boulevard (120' right-of-way) with two lanes in each direction (approximately 500') and will include two bike lanes, curb and gutter, medians, sidewalk on the east side, streetlights and landscaping on each side of the roadway. This project will also include a new parallel bridge over Marsh Creek, utility upgrades, and undergrounding of existing overhead utilities. In order to widen the road and construct the improvements, the first phase of this project is to demolish an existing building located on the corner of Brentwood Boulevard and Sunset Road. This project will improve safety and traffic flow, and facilitate development. • Innovation Center @ Brentwood Infrastructure (CIP #336-31695) This project, formerly named Priority Area 1 Infrastructure Improvements, will construct infrastructure improvements within Priority Area 1. The improvements include Jeffery Way roadway extension from Amber Lane to Empire Avenue, the extension of wet utilities (water, sewer, and non-potable water) on Empire Avenue under State Route 4 to Heidorn Ranch Road, widening Lone Tree Plaza Drive between Heidorn Ranch Road and Canada Valley Road, and all associated improvements and land acquisition. • Lone Tree Way Roadway Improvements (CIP #336-31701)
This project will construct the following infrastructure improvements: widening the existing Lone Tree Way from O’Hara Avenue to Tilton Lane including extension of wet and dry utilities, conversion of overhead utility lines to underground, relocation of PG&E high voltage transmission electrical lines, and a new traffic signal at Smith Road and Lone Tree Way. Improvements may also include some portions of Smith Road, O’Hara Lane and a traffic signal at the O’Hara Avenue/O’Hara Lane intersection as right of way acquisition becomes available. This project is mandatory to support a new K-8 school anticipated to open in July 2024. The construction phase of this project is anticipated to begin in FY 2023/24.
• Sand Creek Sports Complex (CIP #352-52446)
Sand Creek Sports Complex Site I consists of the design and construction of the 14.50 acres of City owned property identified as the future Sand Creek Sports Complex. It is anticipated that the park will include 3 full size sports fields (soccer/ multi-use to be determined), parking lot, restrooms, picnic area and other possible park amenities like pickle ball courts, basketball courts, exercise equipment, playground etc. Site II is made up of the Contra Costa County Flood Control detention basin, which consists of 19.24 acres, will potentially add 2-3 sports fields.
• Brentwood Manor Water and Wastewater Rehabilitation (CIP #562-56419) This project includes the replacement of 3,200 LF of water, sewer and storm drain facilities to correct existing operations and maintenance constraints due to the age of the facilities.

This project will allow the City to accommodate the anticipated development around the surrounding area and bring the aging facilities up to current standards.

47 2024/25 – 2025/26 Operating Budget
Introduction
• Downtown Alley Rehabilitation - Midway and Park Way (CIP #562-56414) This project, previously named Downtown Alley Rehabilitation – Midway, now includes the Park Way alley section. This project consists of the installation of new water, sewer and storm drain facilities and either the removal or replacement of existing infrastructure to correct existing operations and maintenance constraints due to the age of the facilities. This project will allow the City to accommodate the anticipated development of the Downtown area and, where feasible, bring the aging facilities up to current standards. • Wastewater Treatment Plant Expansion - Phase II (CIP #592-59140) The existing 5 MGD tertiary treatment facility was planned and constructed to accommodate future expansions, of up to 10 MGD. The original facility was designed based on 100 GPD per capita flow but the average flow in the last several years has been 69 GPD per capita. The Phase II Expansion is designed to treat 6.4 MGD flow based on 69 GPD per capita, which will service the final buildout population of the City per the current General Plan. The project includes the addition of one diffused air oxidation basin, retrofit of existing oxidation ditches to diffused air, secondary clarifiers, converting chlorine contact facilities to free chlorine disinfection, solids dryer and pyrolysis system, Electrical Distribution System Upgrade and all related appurtenances. This project is necessary to keep the City in compliance with more stringent discharge requirements. The expansion will also accommodate the planned and approved development within the City. • Water and Wastewater Laboratory (CIP #592-59207)
This project will provide a new, larger laboratory for the water and wastewater systems. The existing laboratory which was constructed in 2002 is outdated and has outgrown its footprint, and the building is not readily expandable. Constructing a new, larger laboratory and converting the existing laboratory to office space will provide laboratory space adequate for build-out conditions, and has the added benefit of eliminating the need to build additional office space.
• Fleet Electrification
In September 2020, the State of California, by Executive Order N-79-20, set the goal that 100 percent of in-state sales of new passenger cars and trucks will be zero-emission by 2035, as well as medium and heavy-duty trucks by 2045 for all operations where feasible.

Then in November 2021, the State signed the Under2 Climate Coalitions ZEV Pledge for Public Fleets that sets aggressive goals to transition fleet composition where feasible to 100 percent for ZEV’s by 2030. These regulations, requiring public fleets to be converted to electric vehicles, make it necessary to design and install charging stations and other related infrastructure at City facilities for the charging of government-owned electric and plug in hybrid vehicles. This project will install improvements and infrastructure related to the utilities (electricity) and equipment required at the Corporation Yard. • Solid Waste Organics Diversion (CIP #542-54021)
In order to comply with regulatory requirements associated with the passage of AB 1826 and SB 1383, the City will be required to recycle organic wastes and divert them away from landfills. In particular, SB 1383 requires a 75% reduction in the disposal of organic waste by 2025. In order to comply with SB 1383 requirements, the City will construct a facility to

48 2024/25 – 2025/26 Operating Budget
Introduction
mechanically separate and recover organic material, digest the organic material to produce biogas, and capture the biogas to generate renewable natural gas which will be sold to generate revenue.
• Vineyards at Marsh Creek Event Center/Amphitheater Phase I (CIP #337-37231) The project site is within the Vineyards at Marsh Creek development. Consistent with a development agreement between the City and the developer of the Vineyards at Marsh Creek, the developer has submitted a total of $3.5 million, plus interest, to the City for the design and construction of the project. Phase I will consist of a 750-seat Amphitheater, box office with amenities and a parking lot. Design of the Amphitheater has commenced to 30% design drawings and a Subsequent Environmental Impact Report (SEIR) will be completed in summer 2024.

49 2024/25 – 2025/26 Operating Budget
Citywide Summaries

FUND BALANCE SUMMARY
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
at 6/30/2023 Revenues Expenditures at 6/30/2024 Revenues Expenditures at 6/30/2025 Revenues Expenditures at 6/30/2026 General Fund $ 31,785,920 $ 69,975,665 $ 72,205,794 $ 29,555,791 $ 76,914,825 $ 78,140,534 $ 28,330,082 $ 79,733,244 $ 78,981,986 $ 29,081,340 Solid Waste Enterprise 26,510,862 19,517,301 18,029,256 27,998,907 20,603,543 20,283,336 28,319,114 21,318,928 20,586,196 29,051,846 Water Enterprise 163,799,125 30,119,894 33,067,264 160,851,755 32,416,943 38,382,942 154,885,756 34,511,552 39,712,037 149,685,271 Wastewater Enterprise 164,208,507 17,609,333 18,683,073 163,134,767 18,075,214 20,065,123 161,144,858 18,458,645 23,825,825 155,777,678 City Rentals Enterprise (1) 235,285 0 235,285 0 0 0 0 0 0 0 Housing Enterprise 4,904,216 1,023,249 919,117 5,008,348 1,249,868 1,227,273 5,030,943 1,285,558 1,236,463 5,080,038 Internal Service Funds (2) 71,468,242 24,103,032 30,443,748 65,127,526 24,811,950 33,020,931 56,918,545 23,887,081 30,244,195 50,561,431 Special Revenue Funds (3) 62,445,521 53,977,303 69,553,198 46,869,626 58,991,957 63,354,221 42,507,362 62,966,847 73,598,825 31,875,384 Debt Service Funds 21,164,576 6,913,402 6,963,220 21,114,758 6,959,305 6,996,635 21,077,428 6,991,334 7,022,382 21,046,380 Capital Project Funds 77,853,558 56,976,221 55,336,723 79,493,056 65,901,942 117,374,486 28,020,512 66,887,132 80,237,162 14,670,482 $ 624,375,812 $ 280,215,400 $ 305,436,678 $ 599,154,534 $ 305,925,547 $ 378,845,481 $ 526,234,600 $ 316,040,321 $ 355,445,071 $ 486,829,850 purchases included in expenditures are not yet capitalized or included in fund balances. (3) Certain Special Revenue Funds are presented utilizing cash balance. (2) Expenditures include discretionary unfunded pension/OPEB obligation paydowns of $3.1M in FY 2023/24, $2.5M in FY 2024/25, and $1.5M in FY 2025/26. Additionally, $8.5M of vehicle and equipment 2023/24 Projected 2024/25 Budget 2025/26 Budget
(1) The City Rentals Fund is projected to be closed at the end of FY 2023/24.

Note: The June 30, 2026 fund balances detailed above do not include the capitalization of approximately $51 million of certain Solid Waste, Water and Wastewater Improvement projects, and as such are understated in the chart.

After adjusting for the future capitalized assets above, the City is still expecting Fund Balance drawdowns of approximately $65 million for certain significant Roadway, Parks and Trails and Community Facilities Improvement projects expected to be completed by the end of FY 2025/26. These balances represent funds accumulated over many years for capital project purposes. These projects create public assets for governmental activities but do not increase fund balances in accordance with governmental accounting standards. The projects are detailed on page 66.

50 2024/25 – 2025/26 Operating Budget
Citywide Summaries

OPERATING BUDGET SUMMARY
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Beginning Fund Balances $ 625,901,291 $ 624,375,812 $ 624,375,812 $ 599,154,534 $ 526,234,600 Revenues and Other Financing Sources
Taxes $ 39,837,769 $ 41,274,798 $ 40,790,350 $ 42,015,437 $ 45,077,400 Licenses 978,854 950,575 999,950 1,020,771 1,042,029
Charges for Other Services 81,064,642 85,628,598 85,198,831 89,970,968 92,789,193 Use of Money and Property 3,323,575 2,786,908 7,433,056 8,270,426 6,820,847 Assessment Districts 13,625,039 14,122,279 14,141,492 14,826,352 15,415,336 Intergovernmental 18,291,186 24,620,942 11,625,464 11,663,696 11,961,640 Charges to Other Funds 8,731,791 9,064,279 8,915,522 9,722,054 10,060,054 Permits and Fines 4,556,138 3,977,177 4,472,248 5,621,730 6,090,229 Development Impact Fees 2,695,773 3,683,814 3,328,854 5,600,803 7,463,574 Franchise Fees 1,649,986 1,682,497 1,679,459 1,747,121 1,819,519 Fees and Other Revenues 9,296,442 5,917,764 6,122,629 5,973,913 5,932,320 Transfers In 117,965,671 69,538,400 95,507,545 109,492,276 111,568,180 Total Revenues and Other Financing Sources 302,016,866 263,248,031 280,215,400 305,925,547 316,040,321 Expenditures and Other Financing Uses
General Government 9,904,196 12,242,325 10,790,887 12,698,576 12,922,820 Public Safety 28,898,714 33,097,328 30,911,814 33,601,812 35,037,422 Community Development 6,557,172 8,109,313 6,904,059 8,459,084 8,332,349 Engineering 3,593,515 4,132,116 3,780,419 4,289,056 4,476,604 Streets 4,106,366 4,792,708 4,683,426 5,060,859 5,183,533 Parks and Recreation 14,871,122 16,673,916 15,177,134 17,400,403 18,227,283 Enterprise Funds 53,270,529 65,207,123 60,756,587 71,003,113 74,448,381 Community Services 8,220,186 10,425,007 9,661,533 11,117,063 11,437,383 Internal Service 18,865,076 30,604,152 27,723,289 27,065,151 25,704,384 Debt Service - Principal 10,374,616 8,427,771 8,441,018 8,542,323 10,143,915 Debt Service - Interest 4,132,490 3,293,512 3,292,380 3,077,454 3,646,337 Capital Outlay 24,644,137 85,145,238 50,442,200 115,378,897 78,218,954 Transfers Out 116,104,226 78,903,167 72,871,932 61,151,690 67,665,706 Total Expenditures and Other Financing Uses 303,542,345 361,053,676 305,436,678 378,845,481 355,445,071 Ending Fund Balances $ 624,375,812 $ 526,570,167 $ 599,154,534 $ 526,234,600 $ 486,829,850

51 2024/25 – 2025/26 Operating Budget
Citywide Summaries
FY 2024/25 SUMMARY OF ACTIVITIES BY FUND TYPE
General Enterprise Internal Service Special Revenue Debt Service Capital Project Total Fund Funds Funds Funds Funds Funds All Funds
Revenues
Taxes $ 32,548,327 $ 50,338 $ 0 $ 8,745,072 $ 671,700 $ 0 $ 42,015,437 Licenses 815,450 0 0 205,321 0 0 1,020,771
Charges for Other Services 373,721 67,463,030 22,134,217 0 0 0 89,970,968 Use of Money and Property 1,453,457 2,663,432 2,173,647 1,759,163 96,974 123,753 8,270,426 Assessment Districts 0 0 0 14,826,352 0 0 14,826,352
Intergovernmental 6,523,105 0 0 5,140,591 0 0 11,663,696 Charges to Other Funds 9,686,460 35,594 0 0 0 0 9,722,054 Permits and Fines 5,621,730 0 0 0 0 0 5,621,730
Development Impact Fees 0 0 0 5,600,803 0 0 5,600,803
Franchise Fees 1,747,121 0 0 0 0 0 1,747,121
Fees and Other Revenues 2,425,392 944,677 0 172,807 2,431,037 0 5,973,913 Total Revenues 61,194,763 71,157,071 24,307,864 36,450,109 3,199,711 123,753 196,433,271 Transfers In 15,720,062 1,188,497 504,086 22,541,848 3,759,594 65,778,189 109,492,276 Total Revenues and Transfers In 76,914,825 72,345,568 24,811,950 58,991,957 6,959,305 65,901,942 305,925,547 Expenditures
General Government 10,955,697 0 0 1,742,879 0 0 12,698,576 Public Safety 33,276,812 0 0 325,000 0 0 33,601,812
Community Development 8,040,017 0 0 314,595 104,472 0 8,459,084 Engineering 4,289,056 0 0 0 0 0 4,289,056
Streets 5,060,859 0 0 0 0 0 5,060,859
Parks and Recreation 9,503,070 0 0 7,897,333 0 0 17,400,403 Enterprise Funds
Solid Waste 0 20,001,217 0 0 0 0 20,001,217
Water 0 31,029,074 0 566,735 0 0 31,595,809
Wastewater 0 17,916,044 0 297,770 0 0 18,213,814
City Rentals 0 0 0 0 0 0 0
Housing 0 1,192,273 0 0 0 0 1,192,273
Community Services 1,298,193 0 0 9,818,870 0 0 11,117,063 Internal Service 0 0 27,065,151 0 0 0 27,065,151
Debt Service 1,679,949 3,130,196 0 961,234 5,848,398 0 11,619,777 Capital Outlay 0 0 0 0 0 115,378,897 115,378,897
Total Expenditures 74,103,653 73,268,804 27,065,151 21,924,416 5,952,870 115,378,897 317,693,791 Transfers Out 4,036,881 6,689,870 5,955,780 41,429,805 1,043,765 1,995,589 61,151,690 Total Expenditures and Transfers Out 78,140,534 79,958,674 33,020,931 63,354,221 6,996,635 117,374,486 378,845,481 Net Result of Operations (1,225,709) (7,613,106) (8,208,981) (4,362,264) (37,330) (51,472,544) (72,919,934) Beginning Balance - 7/01/24 29,555,791 356,993,777 65,127,526 46,869,626 21,114,758 79,493,056 599,154,534 Fund Balance - 6/30/25 $ 28,330,082 $ 349,380,671 $ 56,918,545 $ 42,507,362 $ 21,077,428 $ 28,020,512 $ 526,234,600

52 2024/25 – 2025/26 Operating Budget
Citywide Summaries
FY 2024/25 FUND BALANCE BY FUND
Estimated Estimated
7/1/2024 6/30/2025
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance 100 General Fund $ 29,555,791 $ 61,194,763 $ 15,720,062 $ 74,103,653 $ 4,036,881 $ 28,330,082 Enterprise Funds
540,543 Solid Waste Enterprise 27,998,907 20,603,543 0 20,001,217 282,119 28,319,114 560,563 Water Enterprise 160,851,755 32,066,943 350,000 33,872,231 4,510,711 154,885,756 590,593 Wastewater Enterprise 163,134,767 18,075,214 0 18,203,083 1,862,040 161,144,858 510,511,513 Housing Enterprise 5,008,348 411,371 838,497 1,192,273 35,000 5,030,943 Total Enterprise Funds 356,993,777 71,157,071 1,188,497 73,268,804 6,689,870 349,380,671 Internal Service Funds
701 Information Systems (1) (495,496) 4,298,772 0 4,549,944 0 (746,668) 702 Vehicle and Equipment Replacement (2) 13,077,580 2,469,025 0 4,993,074 0 10,553,531 703 Information Systems Replacement 3,797,937 1,252,983 0 835,564 142,000 4,073,356 704 Facilities Replacement 10,002,531 1,444,756 0 1,023,604 440,000 9,983,683 705 Tuition 76,040 17,570 0 31,654 0 61,956
706 Fleet Maintenance Services (1) (234,101) 2,632,011 0 2,649,173 0 (251,263) 707 Facilities Maintenance Services 441,797 2,072,933 0 2,253,016 0 261,714 708 Parks and LLAD Replacement 25,640,965 1,721,152 222,248 1,213,449 1,518,243 24,852,673 709 Insurance 388,337 4,127,121 0 4,127,121 0 388,337
710 Pension/OPEB Obligation 12,431,936 4,271,541 281,838 5,388,552 3,855,537 7,741,226 Total Internal Service Funds 65,127,526 24,307,864 504,086 27,065,151 5,955,780 56,918,545 Budget Budget
(1) These Internal Service Funds include OPEB obligation accruals, which result in a negative fund balance. These funds maintain positive cash balances. (2) The fiscal year-end cash balance of this fund is projected to be $7.1M for FY 2023/24, $6.8M for FY 2024/25 and $5.4M for FY 2025/26.

53 2024/25 – 2025/26 Operating Budget
Citywide Summaries
FY 2024/25 FUND BALANCE BY FUND (Continued)
Estimated Estimated
7/1/2024 6/30/2025
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance Special Revenue Funds
203-209 Gas Tax $ 2,432,924 $ 3,519,099 $ 0 $ 3,462 $ 3,727,766 $ 2,220,795 214 SB1186 Disability Access 148,607 28,220 0 21,695 0 155,132 216 Police Grants 220,635 333,660 0 325,000 0 229,295
217 Grants 372,815 175,700 0 175,000 309,847 63,668
219 Economic Development Grant 297,543 216,179 0 292,900 0 220,822 230 Citywide Park Assessment District 4,337,952 3,978,916 3,800,631 7,365,889 0 4,751,610 231 Community Facilities District #2 54,969 725,095 0 15,066 713,710 51,288 232 Community Facilities District #3 603,506 1,836,622 574,159 15,706 2,414,825 583,756 233,235 Community Facilities District #4 781,194 3,236,841 137,771 15,902 3,409,835 730,069 234 Community Facilities District #5 670,848 3,017,764 42,154 15,811 3,090,857 624,098 250 Water Development Impact Fee (1) 3,719,266 1,775,419 0 1,240,930 1,296,589 2,957,166 251 Roadway Development Impact Fee 4,548,435 2,414,123 0 711,585 4,557,952 1,693,021 252 Parks and Trails Development Impact Fee (731,943) 811,273 0 531,444 0 (452,114) 255 Wastewater Development Impact Fee (1) 3,288,167 967,362 0 584,809 0 3,670,720 256 Community Facilities Development Impact Fee (118,508) 69,086 0 37,133 140,557 (227,112) 261 Development Impact Fee Administration 222,858 189,892 0 251,453 0 161,297 262 Agriculture Land Administration 668,473 23,158 0 139,637 0 551,994 263 Agriculture Land Acquisition 2,882,876 90,735 0 259,158 0 2,714,453 264 First-Time Homebuyer 1,937,301 41,250 0 101,439 30,000 1,847,112 265 Affordable Housing In-Lieu Fee 3,914,040 127,500 0 25,048 773,497 3,242,995 267 Public Art Administration 960,445 35,600 0 1,242 0 994,803 268 Public Art Acquisition 2,978,958 110,163 0 6,438 1,063 3,081,620 269 Parking In-Lieu 433 51 0 2 0 482
272 Riparian Mitigation Site Maintenance 82,716 2,800 0 0 5,516 80,000 280 Asset Forfeiture 13,597 429 0 0 0 14,026
281 Abandoned Vehicle Abatement 56,354 44,700 0 0 75,000 26,054 285 PEG Media 544,013 19,099 0 3,714 0 559,398
293 Measure J 2,035,432 1,292,410 0 22,568 1,400,000 1,905,274 302 City Low Income Housing 528,573 525 0 5,000 0 524,098 6xx Landscape and Lighting Assessment Districts 9,417,147 11,366,438 17,987,133 9,756,385 19,482,791 9,531,542 Total Special Revenue Funds 46,869,626 36,450,109 22,541,848 21,924,416 41,429,805 42,507,362 (1) Certain Special Revenue Funds are presented utilizing cash balance.

Budget Budget

54 2024/25 – 2025/26 Operating Budget
Citywide Summaries
FY 2024/25 FUND BALANCE BY FUND (Continued)
Estimated Estimated
7/1/2024 6/30/2025
Fund # Fund Name Fund Balance Revenues Transfers In Expenditures Transfer Out Fund Balance Debt Service Funds
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 11,449,151 $ 1,438,848 $ 615,275 $ 1,788,362 $ 289,681 $ 11,425,231 448 General Obligation Bonds Series 2002 43,952 681,381 0 695,239 0 30,094 461 2019 Civic Center Project Lease Revenue Refunding Bonds 9,621,655 1,079,482 2,353,523 2,678,475 754,084 9,622,101 466 2015 Lease Financing 0 0 790,796 790,794 0 2
Total Debt Service Funds 21,114,758 3,199,711 3,759,594 5,952,870 1,043,765 21,077,428 Capital Project Funds
336 Roadway Improvements $ 18,821,783 $ 0 $ 7,687,760 $ 16,127,148 $ 0 $ 10,382,395 337 Community Facilities Improvements 12,188,256 0 1,252,000 7,611,241 0 5,829,015 352 Parks and Trails Improvements 19,119,957 0 1,484,191 11,932,911 0 8,671,237 380 Civic Center Capital Improvement Financing Program 18,870 1,125 1,179,479 39 1,184,992 14,443 381 City Capital Improvement Financing Program 240,894 37,500 825,787 1,308 810,597 292,276 392 Capital Infrastructure 2,114,596 85,128 0 1,809,046 0 390,678 393 Vineyards Projects 105,393 0 0 0 0 105,393
542 Solid Waste Improvements 0 0 46,625,000 46,625,000 0 0 562 Water Improvements 13,677,632 0 4,573,972 16,422,204 0 1,829,400 592 Wastewater Improvements 13,205,675 0 2,150,000 14,850,000 0 505,675 Total Capital Project Funds 79,493,056 123,753 65,778,189 115,378,897 1,995,589 28,020,512 Total All Funds $ 599,154,534 $ 196,433,271 $ 109,492,276 $ 317,693,791 $ 61,151,690 $ 526,234,600 Budget Budget

55 2024/25 – 2025/26 Operating Budget
Citywide Summaries

SUMMARY OF REVENUES AND EXPENDITURES BY FUND TYPE
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Revenues Actual Budget Projected Budget % Change Budget % Change General Fund $ 75,432,657 $ 70,872,627 $ 69,975,665 $ 76,914,825 8.53% $ 79,733,244 3.66% Enterprise Funds
Solid Waste Enterprise 18,706,211 18,941,097 19,517,301 20,603,543 8.78% 21,318,928 3.47% Water Enterprise 34,312,806 30,343,788 30,119,894 32,416,943 6.83% 34,511,552 6.46% Wastewater Enterprise 20,147,263 16,852,982 17,609,333 18,075,214 7.25% 18,458,645 2.12% City Rentals Enterprise (1) 209,210 0 0 0 0.00% 0 0.00% Housing Enterprise 1,025,922 1,111,715 1,023,249 1,249,868 12.43% 1,285,558 2.86% Internal Service Funds 23,310,751 22,450,770 24,103,032 24,811,950 10.52% 23,887,081 -3.73% Special Revenue Funds 59,383,480 56,804,165 53,977,303 58,991,957 3.85% 62,966,847 6.74% Debt Service Funds 5,470,883 6,939,834 6,913,402 6,959,305 0.28% 6,991,334 0.46% Capital Project Funds 64,017,683 38,931,053 56,976,221 65,901,942 69.28% 66,887,132 1.49% Total Revenues $ 302,016,866 $ 263,248,031 $ 280,215,400 $ 305,925,547 16.21% $ 316,040,321 3.31% 2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Expenditures Actual Budget Projected Budget % Change Budget % Change General Fund $ 75,184,202 $ 77,255,326 $ 72,205,794 $ 78,140,534 1.15% $ 78,981,986 1.08% Enterprise Funds
Solid Waste Enterprise 15,099,508 20,654,531 18,029,256 20,283,336 -1.80% 20,586,196 1.49% Water Enterprise 35,175,109 34,136,050 33,067,264 38,382,942 12.44% 39,712,037 3.46% Wastewater Enterprise 31,346,654 20,049,510 18,683,073 20,065,123 0.08% 23,825,825 18.74% City Rentals Enterprise (1) 308,982 235,285 235,285 0 -100.00% 0 0.00% Housing Enterprise 918,266 1,192,775 919,117 1,227,273 2.89% 1,236,463 0.75% Internal Service Funds 21,442,821 35,192,541 30,443,748 33,020,931 -6.17% 30,244,195 -8.41% Special Revenue Funds 90,483,589 75,322,103 69,553,198 63,354,221 -15.89% 73,598,825 16.17% Debt Service Funds 6,681,915 6,975,301 6,963,220 6,996,635 0.31% 7,022,382 0.37% Capital Project Funds 26,901,299 90,040,254 55,336,723 117,374,486 30.36% 80,237,162 -31.64% Total Expenditures $ 303,542,345 $ 361,053,676 $ 305,436,678 $ 378,845,481 4.93% $ 355,445,071 -6.18% (1) The City Rentals Fund is projected to be closed at the end of FY 2023/24.

56 2024/25 – 2025/26 Operating Budget
Citywide Summaries

DETAIL OF EXPENDITURES BY CATEGORY
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Actual Budget Projected Budget % Change Budget % Change Personnel Services
Salaries $ 36,990,709 $ 42,132,769 $ 37,563,524 $ 43,642,791 3.58% $ 45,630,125 4.55% Overtime 1,634,948 1,555,692 1,640,114 1,653,212 6.27% 1,701,846 2.94% Part-time 1,763,013 1,949,393 2,029,577 1,810,083 -7.15% 1,871,569 3.40% Benefits (1) 18,951,040 22,588,862 21,175,276 24,769,173 9.65% 25,237,190 1.89% Total Personnel Services 59,339,710 68,226,716 62,408,491 71,875,259 5.35% 74,440,730 3.57% Supplies and Services
Operating Supplies 1,849,213 2,603,600 2,338,227 2,832,455 8.79% 2,908,606 2.69% Utilities 5,625,624 6,692,829 6,669,227 7,525,972 12.45% 7,800,047 3.64% Repairs and Maintenance 4,453,619 6,836,824 5,931,785 6,777,995 -0.86% 7,593,276 12.03% Rentals 61,787 112,232 92,722 89,286 -20.45% 90,926 1.84% Insurance 3,053,310 3,627,057 3,573,410 4,081,075 12.52% 4,282,478 4.94% Special Services 4,320,104 4,974,885 4,465,419 5,408,496 8.72% 5,487,635 1.46% Communications 441,546 445,946 436,909 465,306 4.34% 482,075 3.60% Advertising 108,373 148,625 96,224 166,667 12.14% 172,207 3.32% Training and Conferences 357,443 600,614 488,460 620,048 3.24% 639,273 3.10% Purchased Water 12,374,669 13,564,132 13,310,089 15,636,265 15.28% 16,428,973 5.07% Contributions 244,983 630,563 447,198 495,645 -21.40% 502,423 1.37% Legal Services 701,215 1,115,441 955,824 1,153,822 3.44% 1,062,587 -7.91% Contractual Services 10,078,348 14,533,218 12,852,104 15,156,788 4.29% 15,688,683 3.51% Interfund Services 9,321,021 9,721,673 9,547,343 10,521,979 8.23% 10,917,347 3.76% Interest Expense 4,132,490 3,293,512 3,292,380 3,077,454 -6.56% 3,646,337 18.49% Depreciation/Amortization 8,146,589 8,121,271 8,512,542 9,282,396 14.30% 11,139,530 20.01% Developer Reimbursement 569,259 142,398 59,788 238,135 67.23% 591,861 148.54% Other 6,681,387 12,290,610 8,171,327 11,599,356 -5.62% 9,742,039 -16.01% Total Supplies and Services 72,520,980 89,455,430 81,240,978 95,129,140 6.34% 99,176,303 4.25% Internal Services
Internal Service 20,246,858 20,614,397 20,614,397 22,134,217 7.37% 21,424,358 -3.21% Total Internal Services 20,246,858 20,614,397 20,614,397 22,134,217 7.37% 21,424,358 -3.21% Capital Outlay and Transfers Out
Capital Outlay/CIP 24,955,955 95,426,195 59,859,862 120,012,852 25.77% 82,594,059 -31.18% Debt Service 10,374,616 8,427,771 8,441,018 8,542,323 1.36% 10,143,915 18.75% Transfers 116,104,226 78,903,167 72,871,932 61,151,690 -22.50% 67,665,706 10.65% Total Capital Outlay and Transfers Out 151,434,797 182,757,133 141,172,812 189,706,865 3.80% 160,403,680 -15.45% Total Expenditures $ 303,542,345 $ 361,053,676 $ 305,436,678 $ 378,845,481 4.93% $ 355,445,071 -6.18% (1) Includes PERS Paydown of $2.6M in FY 2022/23, $3.1M in FY 2023/24, $2.5M in FY 2024/25, and $1.5M in FY 2025/26.

57 2024/25 – 2025/26 Operating Budget
Citywide Summaries

SUMMARY OF EXPENDITURES BY CATEGORY

58 2024/25 – 2025/26 Operating Budget
Citywide Summaries

SUMMARY OF EXPENDITURES BY CATEGORY AND FUND TYPE
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services
General Fund $ 39,437,324 $ 44,662,158 $ 41,205,340 $ 47,004,269 $ 49,401,239 Enterprise Funds
Solid Waste Enterprise 4,179,091 4,899,270 4,556,076 5,431,317 5,705,523 Water Enterprise 4,153,206 4,895,452 4,244,151 5,113,743 5,383,865 Wastewater Enterprise 3,852,738 4,369,583 3,805,932 5,364,647 5,668,839 Housing Enterprise 411,344 480,312 443,554 517,541 538,575 Internal Service Funds 5,861,189 7,294,316 6,697,474 6,882,625 6,082,740 Special Revenue Funds 1,444,818 1,625,625 1,455,964 1,561,117 1,659,949 Total Personnel Services $ 59,339,710 $ 68,226,716 $ 62,408,491 $ 71,875,259 $ 74,440,730 Annual Percentage Change 5.17% 5.35% 3.57%
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Supplies and Services
General Fund $ 9,604,628 $ 13,119,319 $ 11,427,724 $ 13,068,225 $ 12,881,582 Enterprise Funds
Solid Waste Enterprise 7,624,131 10,477,818 8,538,287 10,397,377 10,841,775 Water Enterprise 19,974,826 21,369,550 21,043,641 24,406,151 25,407,085 Wastewater Enterprise 7,865,145 8,995,190 9,183,321 9,893,490 12,515,853 City Rentals Enterprise 60,636 0 0 0 0
Housing Enterprise 319,955 535,997 312,285 526,309 537,497 Internal Service Funds 11,782,351 14,916,985 14,091,105 15,174,482 15,903,509 Special Revenue Funds 13,366,078 16,870,787 14,846,380 18,167,734 19,513,820 Debt Service Funds 1,865,413 1,803,335 1,791,254 1,684,979 1,574,798 Capital Project Funds 57,817 1,366,449 6,981 1,810,393 384 Total Supplies and Services $ 72,520,980 $ 89,455,430 $ 81,240,978 $ 95,129,140 $ 99,176,303 Annual Percentage Change 12.02% 6.34% 4.25%

59 2024/25 – 2025/26 Operating Budget
Citywide Summaries
SUMMARY OF EXPENDITURES BY CATEGORY AND FUND TYPE (Continued) 2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Internal Services
General Fund $ 11,358,141 $ 11,781,222 $ 11,781,222 $ 12,035,983 $ 12,272,647 Enterprise Funds
Solid Waste Enterprise 2,860,777 3,053,461 3,053,461 3,689,305 3,458,899 Water Enterprise 1,502,975 1,744,977 1,744,977 1,919,725 1,681,912 Wastewater Enterprise 1,342,008 1,576,247 1,576,247 1,873,205 1,667,567 City Rentals Enterprise 41,409 0 0 0 0
Housing Enterprise 108,111 133,278 133,278 145,139 120,008 Internal Service Funds 961,240 1,127,036 1,127,036 1,105,440 895,818 Special Revenue Funds 2,072,197 1,198,176 1,198,176 1,365,420 1,327,507 Total Internal Services $ 20,246,858 $ 20,614,397 $ 20,614,397 $ 22,134,217 $ 21,424,358 Annual Percentage Change 1.82% 7.37% -3.21%
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Capital Outlay and Transfers Out
General Fund $ 14,784,109 $ 7,692,627 $ 7,791,508 $ 6,032,057 $ 4,426,518 Enterprise Funds
Solid Waste Enterprise 435,509 2,223,982 1,881,432 765,337 579,999 Water Enterprise 9,544,102 6,126,071 6,034,495 6,943,323 7,239,175 Wastewater Enterprise 18,286,763 5,108,490 4,117,573 2,933,781 3,973,566 City Rentals Enterprise 206,937 235,285 235,285 0 0
Housing Enterprise 78,856 43,188 30,000 38,284 40,383
Internal Service Funds 2,838,041 11,854,204 8,528,133 9,858,384 7,362,128 Special Revenue Funds 73,600,496 55,627,515 52,052,678 42,259,950 51,097,549 Debt Service Funds 4,816,502 5,171,966 5,171,966 5,311,656 5,447,584 Capital Project Funds 26,843,482 88,673,805 55,329,742 115,564,093 80,236,778 Total Capital Outlay and Transfers Out $ 151,434,797 $ 182,757,133 $ 141,172,812 $ 189,706,865 $ 160,403,680 Annual Percentage Change -6.78% 3.80% -15.45%

60 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

GENERAL FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Fund Balance 7/1 $ 31,785,920 $ 29,555,791 $ 28,330,082 $ 29,081,340 $ 29,416,340 $ 30,171,340 $ 29,254,340 $ 29,748,340 $ 29,832,340 $ 30,938,340 Add:

Revenues 58,291,577 61,194,763 64,662,831 65,940,000 67,765,000 70,109,000 72,142,000 74,633,000 77,265,000 79,923,000 Transfers In 11,684,088 15,720,062 15,070,413 12,893,000 13,271,000 13,660,000 13,941,000 14,572,000 15,050,000 15,381,000 Total Revenue 69,975,665 76,914,825 79,733,244 78,833,000 81,036,000 83,769,000 86,083,000 89,205,000 92,315,000 95,304,000 Less:

Expenditures 66,457,562 74,103,653 75,398,365 72,738,000 74,901,000 77,719,000 79,712,000 82,129,000 84,376,000 86,939,000 Operating Transfers Out 3,132,802 3,108,248 3,552,311 4,217,000 4,917,000 5,303,000 5,468,000 5,632,000 5,801,000 5,975,000 Total Appropriations 69,590,364 77,211,901 78,950,676 76,955,000 79,818,000 83,022,000 85,180,000 87,761,000 90,177,000 92,914,000 Revenue Over (Under) Appropriations 385,301 (297,076) 782,568 1,878,000 1,218,000 747,000 903,000 1,444,000 2,138,000 2,390,000 Non-Operating Transfers Out 2,615,430 928,633 31,310 1,543,000 463,000 1,664,000 409,000 1,360,000 1,032,000 1,290,000 Revenue Over (Under) Appropriations (2,230,129) (1,225,709) 751,258 335,000 755,000 (917,000) 494,000 84,000 1,106,000 1,100,000 Fund Balance 6/30 $ 29,555,791 $ 28,330,082 $ 29,081,340 $ 29,416,340 $ 30,171,340 $ 29,254,340 $ 29,748,340 $ 29,832,340 $ 30,938,340 $ 32,038,340 Please see the Executive Summary - Long-Range Planning discussion for details on how this schedule is developed.

61 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

SOLID WASTE ENTERPRISE FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 26,510,862 $ 29,880,339 $ 30,965,883 $ 32,278,614 $ 32,106,242 $ 32,085,852 $ 32,224,178 $ 32,526,778 $ 32,989,718 $ 33,624,099 $ Add:

Operating Revenues 19,517,301 20,603,543 21,318,928 22,221,579 22,977,452 23,744,153 24,541,163 25,371,792 26,236,930 27,137,990 Total Operating Revenue 19,517,301 20,603,543 21,318,928 22,221,579 22,977,452 23,744,153 24,541,163 25,371,792 26,236,930 27,137,990 Less:

Operations 17,398,145 20,001,217 20,492,110 23,561,642 24,195,168 24,833,956 25,498,432 26,201,443 26,928,874 27,438,189 Total Operating Appropriations 17,398,145 20,001,217 20,492,110 23,561,642 24,195,168 24,833,956 25,498,432 26,201,443 26,928,874 27,438,189 Revenue Over (Under)Operating Appropriations 2,119,156 602,326 826,818 (1,340,063) (1,217,716) (1,089,803) (957,269) (829,651) (691,944) (300,199) Non-Operating Revenuesand Appropriations (631,111) (282,119) (94,086) (60,061) (60,061) (60,061) (60,061) (60,061) (60,061) (60,061) Revenue Over (Under)Appropriations 1,488,045 320,207 732,732 (1,400,124) (1,277,777) (1,149,864) (1,017,330) (889,712) (752,005) (360,260) Adjustments to Net Assets (1) 765,337 1,881,432 579,999 1,227,752 1,257,387 1,288,190 1,319,930 1,352,652 1,386,386 1,421,164 Net Assets 6/30 (1) $ 30,965,883 29,880,339 $ 32,278,614 $ 32,106,242 $ 32,085,852 $ 32,224,178 $ 32,526,778 $ 32,989,718 $ 33,624,099 $ 34,685,003 $ Please see the Executive Summary - Long-Range Planning discussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets presented here may differ from Fund Balance.

62 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

WATER ENTERPRISE FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 163,799,125 $ 166,891,572 $ 167,841,774 $ 169,796,464 $ 173,875,366 $ 179,559,492 $ 185,030,313 $ 189,717,442 $ 194,120,348 $ 198,185,890 Add:

Operating Revenues 29,769,894 32,066,943 34,161,552 36,382,693 39,038,779 39,944,885 40,841,349 41,726,074 42,601,235 43,463,829 Total Operating Revenue 29,769,894 32,066,943 34,161,552 36,382,693 39,038,779 39,944,885 40,841,349 41,726,074 42,601,235 43,463,829 Less:

Operations 29,702,205 33,872,231 34,912,767 34,352,123 35,491,447 36,660,636 38,640,844 39,891,022 41,189,845 42,547,386 Total Operating Appropriations 29,702,205 33,872,231 34,912,767 34,352,123 35,491,447 36,660,636 38,640,844 39,891,022 41,189,845 42,547,386 Revenue Over (Under)
Operating Appropriations 67,689 (1,805,288) (751,215) 2,030,570 3,547,332 3,284,249 2,200,505 1,835,052 1,411,390 916,443 Non-Operating Revenues
and Appropriations (3,015,059) (4,160,711) (4,449,270) (1,101,745) (1,085,652) (1,087,623) (381,506) (353,557) (326,230) (326,230) Revenue Over (Under)
Appropriations (2,947,370) (5,965,999) (5,200,485) 928,825 2,461,680 2,196,626 1,818,999 1,481,495 1,085,160 590,213 Adjustments to Net Assets (1) 6,039,817 6,916,201 7,155,175 3,150,077 3,222,446 3,274,195 2,868,130 2,921,411 2,980,382 2,980,382 Net Assets 6/30 (1) $ 166,891,572 $ 167,841,774 $ 169,796,464 $ 173,875,366 $ 179,559,492 $ 185,030,313 $ 189,717,442 $ 194,120,348 $ 198,185,890 $ 201,756,485 Please see the Executive Summary - Long-Range Planning discussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets may differ from Fund Balance.

63 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

WASTEWATER ENTERPRISE FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 164,208,507 $ 167,256,063 $ 168,199,935 $ 166,806,321 $ 164,229,071 $ 161,430,290 $ 159,160,600 $ 157,577,606 $ 156,780,001 $ 157,008,511 Add:

Operating Revenues 17,609,333 18,075,214 18,458,645 18,838,842 19,297,938 20,416,344 21,704,637 23,130,225 24,581,858 26,241,040 Total Operating Revenue 17,609,333 18,075,214 18,458,645 18,838,842 19,297,938 20,416,344 21,704,637 23,130,225 24,581,858 26,241,040 Less:

Operations 15,145,661 18,203,083 20,845,750 22,491,525 23,183,915 23,785,190 24,398,949 25,051,515 25,482,750 26,196,078 Total Operating Appropriations 15,145,661 18,203,083 20,845,750 22,491,525 23,183,915 23,785,190 24,398,949 25,051,515 25,482,750 26,196,078 Revenue Over (Under)
Operating Appropriations 2,463,672 (127,869) (2,387,105) (3,652,683) (3,885,977) (3,368,846) (2,694,312) (1,921,290) (900,892) 44,962 Non-Operating Revenues
and Appropriations (3,537,412) (1,862,040) (2,980,075) (314,385) (4,398,171) (1,714,464) (486,440) (3,232,958) (288,458) (288,458) Revenue Over (Under)
Appropriations (1,073,740) (1,989,909) (5,367,180) (3,967,068) (8,284,148) (5,083,310) (3,180,752) (5,154,248) (1,189,350) (243,496) Adjustments to Net Assets (1) 4,121,296 2,933,781 3,973,566 1,389,818 5,485,367 2,813,620 1,597,758 4,356,643 1,417,860 1,423,703 Net Assets 6/30 (1) $ 167,256,063 $ 168,199,935 $ 166,806,321 $ 164,229,071 $ 161,430,290 $ 159,160,600 $ 157,577,606 $ 156,780,001 $ 157,008,511 $ 158,188,718 Please see the Executive Summary - Long-Range Planning disussion for details on how this schedule is developed. (1) Some capital expenditures and transfers to fund capital projects are presented as an adjustment as these expenditures are eliminated in the calculation of Net Assets. For this reason, Net Assets presented here may differ from Fund Balance.

64 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

CITY RENTALS ENTERPRISE FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 235,285 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Add:

Revenues 0 0 0 0 0 0 0 0 0 0
Total Revenue 0 0 0 0 0 0 0 0 0 0
Less:

Operations 235,285 0 0 0 0 0 0 0 0 0
Total Appropriations 235,285 0 0 0 0 0 0 0 0 0
Revenue Over (Under)
Appropriations (235,285) 0 0 0 0 0 0 0 0 0
Net Assets 6/30 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 The City Rentals Fund is projected to be closed at the end of FY 2023/24.

65 2024/25 – 2025/26 Operating Budget
Ten-Year Projections

HOUSING ENTERPRISE FUND
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 Projected Budget Budget Projected Projected Projected Projected Projected Projected Projected Net Assets 7/1 $ 4,904,216 $ 5,008,348 $ 5,030,943 $ 5,080,038 $ 5,130,606 $ 5,182,691 $ 5,236,338 $ 5,291,595 $ 5,348,510 $ 5,407,132 Add:

Revenues 1,023,249 1,249,868 1,285,558 1,324,125 1,363,848 1,404,764 1,446,907 1,490,314 1,535,023 1,581,074 Total Revenue 1,023,249 1,249,868 1,285,558 1,324,125 1,363,848 1,404,764 1,446,907 1,490,314 1,535,023 1,581,074 Less:

Operations 919,117 1,227,273 1,236,463 1,273,557 1,311,764 1,351,117 1,391,650 1,433,399 1,476,401 1,520,694 Total Appropriations 919,117 1,227,273 1,236,463 1,273,557 1,311,764 1,351,117 1,391,650 1,433,399 1,476,401 1,520,694 Revenue Over (Under)
Operating Appropriations 104,132 22,595 49,095 50,568 52,085 53,647 55,257 56,915 58,622 60,381 Net Assets 6/30 $ 5,008,348 $ 5,030,943 $ 5,080,038 $ 5,130,606 $ 5,182,691 $ 5,236,338 $ 5,291,595 $ 5,348,510 $ 5,407,132 $ 5,467,512 Projected revenues and operating appropriations are increased annually by a 3% CPI for FY 2026/27 through FY 2032/33.

66 2024/25 – 2025/26 Operating Budget
Fund Balances

FUND BALANCES
The City’s Fund Balances represent accumulated funds available to be spent in the future. The majority of the City’s fund balances are restricted for specific purposes and are not available for general purposes.

FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Actuals Projected Budget Budget
General Fund $ 31,785,920 $ 29,555,791 $ 28,330,082 $ 29,081,340 Enterprise Funds 359,657,995 356,993,777 349,380,671 339,594,833 Internal Service Funds 71,468,242 65,127,526 56,918,545 50,561,431 Special Revenue Funds 62,445,521 46,869,626 42,507,362 31,875,384 Debt Service Funds 21,164,576 21,114,758 21,077,428 21,046,380 Capital Project Funds 77,853,558 79,493,056 28,020,512 14,670,482 Total Fund Balance $ 624,375,812 $ 599,154,534 $ 526,234,600 $ 486,829,850 • The General Fund balance is decreasing in FY 2024/25 due to the use of fund balance committed in FY 2023/24 for remaining Strategic Initiative costs, a capital project on Brentwood Boulevard and the Successor Agency Payment Plan. In FY 2025/26, the fund balance is projected to increase in order to meet the 30% reserve requirement. • The Internal Service Funds balance is decreasing largely due to the budgeted use of $8.5 million for citywide vehicle and equipment replacements in FY 2024/25 through FY 2025/26. These purchases are included in expenditures but not yet capitalized or included in fund balance. Once purchased these new vehicles will be added back to the fund balance total. Additionally, the Pension/OPEB Obligation Fund is budgeted to prefund a total of $7.1 million of pension and retiree medical costs over the three fiscal years presented.
• Development Impact Fee revenues are collected to pay for infrastructure necessary from growth and development. The revenues are accounted for in Special Revenue Funds and several significant projects are being funding from development impact fee funds in FY 2023/24 and the two upcoming budget years. These projects include the Sand Creek Road Extension, Lone Tree Way Roadway Improvements, Brentwood Boulevard Widening North - Phase I, Sand Creek Sports Complex, Pump Station 2.4 Installation, Wastewater Treatment Plant Expansion - Phase II and Wastewater Treatment Plant Tertiary Filter Expansion. • Capital Project Funds balance is projected to decrease as resources are used to construct capital projects, including the Lone Tree Way Roadway Improvements, Sand Creek Sports Complex, Vineyards at Marsh Creek - Event Center/Amphitheater and several water and wastewater projects. Funds were previously accumulated in the Capital Project Funds for this purpose.

67 2024/25 – 2025/26 Operating Budget
Fund Balances
• The FY2025/26 Citywide fund balances detailed above do not include the capitalization of approximately $51 million of certain Solid Waste, Water and Wastewater Improvement projects, and as such are understated. After adjusting for the future capitalized assets, the City is still expecting Fund Balance drawdowns of approximately $65 million for certain significant Roadway, Parks and Trails and Community Facilities Improvement projects expected to be completed by the end of FY 2025/26. These balances represent funds accumulated over many years for capital project purposes. These projects, detailed above, create public assets for governmental activities but do not increase fund balances in accordance with governmental accounting standards.

68 2024/25 – 2025/26 Operating Budget
Fund Balances

GENERAL FUND
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Fund Balance, Beginning of Year $ 31,537,464 $ 31,785,920 $ 31,785,920 $ 29,555,791 $ 28,330,082 Revenues 58,006,709 57,634,994 58,291,577 61,194,763 64,662,831 Transfers In 17,425,949 13,237,633 11,684,088 15,720,062 15,070,413 Expenditures (62,203,616) (71,782,077) (66,457,562) (74,103,653) (75,398,365) Transfers Out (12,980,586) (5,473,249) (5,748,232) (4,036,881) (3,583,621) Revenues Over (Under) Expenditures 248,456 (6,382,699) (2,230,129) (1,225,709) 751,258 Fund Balance, End of Year $ 31,785,920 $ 25,403,221 $ 29,555,791 $ 28,330,082 $ 29,081,340 Fund Balance:

Committed
General Plan Update $ 261,200 $ 475,200 $ 428,700 $ 740,600 $ 1,055,900 City Council Redistricting 75,000 100,000 100,000 125,000 150,000 Brentwood Boulevard Improvements 678,000 0 678,000 0 0
Future Capital Projects 0 0 1,000,000 1,000,000 1,000,000 Future Strategic Initiatives 2,415,489 0 374,616 0 0
75th Anniversary 51,469 0 0 0 0
Police Department 5th Beat 2,363,275 663,275 2,363,275 2,363,275 2,363,275 Successor Agency Payment Plan 3,611,252 2,087,999 2,087,999 687,303 0 Total Committed 9,455,685 3,326,474 7,032,590 4,916,178 4,569,175 Total Restricted and Committed 9,455,685 3,326,474 7,032,590 4,916,178 4,569,175 Unassigned
Undesignated 22,330,235 22,076,747 22,523,201 23,413,904 24,512,165 Total Unassigned 22,330,235 22,076,747 22,523,201 23,413,904 24,512,165 Percent of Operating Appropriations 30.47% 29.41% 30.00% 30.00% 30.00% Total Fund Balance, End of Year $ 31,785,920 $ 25,403,221 $ 29,555,791 $ 28,330,082 $ 29,081,340

69 2024/25 – 2025/26 Operating Budget
Fund Balances
OTHER FUNDS Fund Balance Fund Balance Fund Balance Fund Balance & Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2023 Revenues Expenditures at 6/30/2024 Revenues Expenditures at 6/30/2025 Revenues Expenditures at 6/30/2026

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise $ 26,510,862 $ 19,517,301 $ 18,029,256 $ 27,998,907 $ 20,603,543 $ 20,283,336 $ 28,319,114 $ 21,318,928 $ 20,586,196 $ 29,051,846 560,563 Water Enterprise 163,799,125 30,119,894 33,067,264 160,851,755 32,416,943 38,382,942 154,885,756 34,511,552 39,712,037 149,685,271 590,593 Wastewater Enterprise 164,208,507 17,609,333 18,683,073 163,134,767 18,075,214 20,065,123 161,144,858 18,458,645 23,825,825 155,777,678 501 City Rentals Enterprise (1) 235,285 0 235,285 0 0 0 0 0 0 0 510,511,513 Housing Enterprise 4,904,216 1,023,249 919,117 5,008,348 1,249,868 1,227,273 5,030,943 1,285,558 1,236,463 5,080,038 Total Enterprise Funds 359,657,995 68,269,777 70,933,995 356,993,777 72,345,568 79,958,674 349,380,671 75,574,683 85,360,521 339,594,833

INTERNAL SERVICE FUNDS
701 Information Systems (2) (417,351) 4,300,237 4,378,382 (495,496) 4,298,772 4,549,944 (746,668) 4,543,359 4,682,074 (885,383) 702 Vehicle and Equipment Replacement (3) 17,586,016 1,894,940 6,403,376 13,077,580 2,469,025 4,993,074 10,553,531 2,444,599 4,222,505 8,775,625 703 Information Systems Replacement 3,181,052 1,174,748 557,863 3,797,937 1,252,983 977,564 4,073,356 925,303 919,952 4,078,707 704 Facilities Replacement 9,747,320 1,296,095 1,040,884 10,002,531 1,444,756 1,463,604 9,983,683 1,438,431 1,000,366 10,421,748 705 Tuition 77,781 16,847 18,588 76,040 17,570 31,654 61,956 16,782 31,685 47,053 706 Fleet Maintenance Services (2) (224,103) 2,178,265 2,188,263 (234,101) 2,632,011 2,649,173 (251,263) 2,645,849 2,630,916 (236,330) 707 Facilities Maintenance Services 644,531 1,924,384 2,127,118 441,797 2,072,933 2,253,016 261,714 2,199,456 2,301,234 159,936 708 Parks and LLAD Replacement 25,140,456 2,209,373 1,708,864 25,640,965 1,943,400 2,731,692 24,852,673 1,784,242 2,764,792 23,872,123 709 Insurance 426,234 3,528,390 3,566,287 388,337 4,127,121 4,127,121 388,337 4,329,667 4,329,667 388,337 710 Pension/OPEB Obligation 15,306,306 5,579,753 8,454,123 12,431,936 4,553,379 9,244,089 7,741,226 3,559,393 7,361,004 3,939,615 Total Internal Service Funds 71,468,242 24,103,032 30,443,748 65,127,526 24,811,950 33,020,931 56,918,545 23,887,081 30,244,195 50,561,431

SPECIAL REVENUE FUNDS
203-209 Gas Tax 2,366,252 3,403,568 3,336,896 2,432,924 3,519,099 3,731,228 2,220,795 3,545,054 3,593,393 2,172,456 214 SB1186 Disability Access 120,037 29,886 1,316 148,607 28,220 21,695 155,132 27,512 22,270 160,374 216 Police Grants 512,461 341,262 633,088 220,635 333,660 325,000 229,295 334,122 325,000 238,417 217 Grants 637,019 436,921 701,125 372,815 175,700 484,847 63,668 175,550 175,000 64,218 219 Economic Development Grant 347,534 217,664 267,655 297,543 216,179 292,900 220,822 216,609 292,925 144,506 230 Citywide Park Assessment District 3,048,327 7,412,808 6,123,183 4,337,952 7,779,547 7,365,889 4,751,610 8,180,214 7,811,346 5,120,478 231 Community Facilities District #2 46,242 709,723 700,996 54,969 725,095 728,776 51,288 743,384 747,380 47,292 232 Community Facilities District #3 590,939 2,360,101 2,347,534 603,506 2,410,781 2,430,531 583,756 2,435,745 2,461,120 558,381 233,235 Community Facilities District #4 763,610 3,239,840 3,222,256 781,194 3,374,612 3,425,737 730,069 3,491,709 3,549,859 671,919 234 Community Facilities District #5 654,662 2,908,802 2,892,616 670,848 3,059,918 3,106,668 624,098 3,181,931 3,234,056 571,973 250 Water Development Impact Fee (4) 3,817,944 2,097,245 2,195,923 3,719,266 1,775,419 2,537,519 2,957,166 2,321,187 6,315,849 (1,037,496) 251 Roadway Development Impact Fee 14,015,259 419,400 9,886,224 4,548,435 2,414,123 5,269,537 1,693,021 2,224,687 4,261,939 (344,231) 252 Parks and Trails Development Impact Fee 667,920 807,931 2,207,794 (731,943) 811,273 531,444 (452,114) 1,746,830 579,548 715,168 255 Wastewater Development Impact Fee (4) 8,744,070 341,908 5,797,811 3,288,167 967,362 584,809 3,670,720 1,262,122 6,325,210 (1,392,368) 256 Community Facilities Development Impact Fee (8,059) 57,298 167,747 (118,508) 69,086 177,690 (227,112) 130,596 173,130 (269,646) 261 Development Impact Fee Administration 352,145 121,495 250,782 222,858 189,892 251,453 161,297 161,072 226,521 95,848 262 Agriculture Land Administration 681,431 44,337 57,295 668,473 23,158 139,637 551,994 18,839 52,755 518,078 263 Agriculture Land Acquisition 2,743,676 179,258 40,058 2,882,876 90,735 259,158 2,714,453 80,788 84,809 2,710,432 264 First-Time Homebuyer 1,915,925 22,457 1,081 1,937,301 41,250 131,439 1,847,112 35,750 131,509 1,751,353 265 Affordable Housing In-Lieu Fee 4,408,444 144,989 639,393 3,914,040 127,500 798,545 3,242,995 87,750 825,378 2,505,367 267 Public Art Administration 920,930 40,382 867 960,445 35,600 1,242 994,803 31,805 1,342 1,025,266 268 Public Art Acquisition 2,855,268 145,022 21,332 2,978,958 110,163 7,501 3,081,620 98,597 7,899 3,172,318 269 Parking In-Lieu 425 8 0 433 51 2 482 44 2 524
272 Riparian Mitigation Site Maintenance 80,014 4,002 1,300 82,716 2,800 5,516 80,000 2,200 2,200 80,000 280 Asset Forfeiture 184,108 3,489 174,000 13,597 429 0 14,026 338 0 14,364 281 Abandoned Vehicle Abatement 101,999 34,355 80,000 56,354 44,700 75,000 26,054 45,186 70,000 1,240 285 PEG Media 533,173 13,344 2,504 544,013 19,099 3,714 559,398 15,441 3,770 571,069 293 Measure J 2,066,041 1,279,967 1,310,576 2,035,432 1,292,410 1,422,568 1,905,274 1,301,709 1,522,469 1,684,514 302 City Low Income Housing 527,800 773 0 528,573 525 5,000 524,098 413 5,000 519,511 6xx Landscape and Lighting Assessment Districts 8,749,925 27,159,068 26,491,846 9,417,147 29,353,571 29,239,176 9,531,542 31,069,663 30,797,146 9,804,059 Total Special Revenue Funds 62,445,521 53,977,303 69,553,198 46,869,626 58,991,957 63,354,221 42,507,362 62,966,847 73,598,825 31,875,384 (1) The City Rentals Fund is projected to be closed at the end of FY 2023/24. (2) These Internal Service Funds include OPEB obligation accruals, which result in a negative fund balance. These funds maintain a positive cash balance. (3) The fiscal year-end cash balance of this fund is projected to be $7.1M for FY 2023/24, $6.8M for FY 2024/25 and $5.4M for FY 2025/26. (4) Certain Special Revenue Funds are presented utilizing cash balances. 2023/24 Projected 2024/25 Budget 2025/26 Budget

70 2024/25 – 2025/26 Operating Budget
Fund Balances
OTHER FUNDS (Continued)
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2023 Revenues Expenditures at 6/30/2024 Revenues Expenditures at 6/30/2025 Revenues Expenditures at 6/30/2026

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 11,473,425 $ 2,051,146 $ 2,075,420 $ 11,449,151 $ 2,054,123 $ 2,078,043 $ 11,425,231 $ 2,049,204 $ 2,075,315 $ 11,399,120 448 General Obligation Bonds Series 2002 75,038 629,053 660,139 43,952 681,381 695,239 30,094 725,007 730,296 24,805 461 2019 Civic Center Project Lease Revenue Refunding Bonds 9,616,113 3,445,521 3,439,979 9,621,655 3,433,005 3,432,559 9,622,101 3,425,007 3,424,658 9,622,450 466 2015 Lease Financing 0 787,682 787,682 0 790,796 790,794 2 792,116 792,113 5 Total Debt Service Funds 21,164,576 6,913,402 6,963,220 21,114,758 6,959,305 6,996,635 21,077,428 6,991,334 7,022,382 21,046,380

CAPITAL PROJECT FUNDS
336 Roadway Improvements 13,392,045 14,711,041 9,281,303 18,821,783 7,687,760 16,127,148 10,382,395 5,832,596 8,261,320 7,953,671 337 Community Facilities Improvements 12,208,965 672,370 693,079 12,188,256 1,252,000 7,611,241 5,829,015 155,500 5,218,775 765,740 352 Parks and Trails Improvements 14,264,950 5,804,576 949,569 19,119,957 1,484,191 11,932,911 8,671,237 1,004,598 9,549,975 125,860 366 2015 Lease Financing 0 388,930 388,930 0 0 0 0 0 0 0 380 Civic Center Capital Improvement Financing Program 21,362 1,185,917 1,188,409 18,870 1,180,604 1,185,031 14,443 1,179,314 1,184,065 9,692 381 City Capital Improvement Financing Program 669,455 2,889,405 3,317,965 240,895 863,287 811,905 292,277 841,624 834,527 299,374 392 Capital Infrastructure 1,815,246 305,550 6,200 2,114,596 85,128 1,809,046 390,678 0 0 390,678 393 Vineyards Projects (322,549) 427,942 0 105,393 0 0 105,393 0 0 105,393 542 Solid Waste Improvements 400,000 800,000 1,200,000 0 46,625,000 46,625,000 0 42,175,000 42,175,000 0 562 Water Improvements 18,983,078 4,045 5,309,491 13,677,632 4,573,972 16,422,204 1,829,400 12,198,500 9,513,500 4,514,400 592 Wastewater Improvements 16,421,006 29,786,445 33,001,777 13,205,674 2,150,000 14,850,000 505,674 3,500,000 3,500,000 505,674 Total Capital Project Funds 77,853,558 56,976,221 55,336,723 79,493,056 65,901,942 117,374,486 28,020,512 66,887,132 80,237,162 14,670,482 TOTAL OTHER FUNDS $ 592,589,892 $ 210,239,735 $ 233,230,884 $ 569,598,743 $ 229,010,722 $ 300,704,947 $ 497,904,518 $ 236,307,077 $ 276,463,085 $ 457,748,510 2023/24 Projected 2024/25 Budget 2025/26 Budget

71 2024/25 – 2025/26 Operating Budget
Fund Balances

SUMMARY OF CHANGES IN FUND BALANCE
Major Funds The General Fund, Water Enterprise Fund and Solid Waste Improvements Fund are classified as major budgetary funds in both FY 2024/25 and FY 2025/26. The method used for determining a Major Budgetary Fund can be found on page 35. The General Fund projects a reduction in fund balance of just over 4% in FY 2024/25 due primarily to utilizing FY 2023/24 fund balance previously committed for the purpose of funding remaining Strategic Initiative costs, a capital project on Brentwood Boulevard and the Successor Agency Payment Plan. The FY 2025/26 General Fund balance increases as needed to meet the 30% reserve requirement. The Water Enterprise projects a reduction in fund balance of just under 4% each budget year as a result of funding capital expenditures not yet recognized as capitalized assets. The Solid Waste Improvement Fund projects no changes in fund balance as revenues and expenditures are equivalent in both FY 2024/25 and FY 2025/26. The large revenue and expenditures that qualify the fund for Major Fund classification are related to the Solid Waste Organics Diversion project. Non-Major Funds (in Aggregate) The change in fund balance for all other non-major budgetary funds in the aggregate is projected to be a decrease of approximately 16% for FY 2024/25 and 10% for FY 2025/26. The decreases are primarily in Capital Project Fund balances as resources are used to construct various capital projects. The decline in Capital Project Funds has been anticipated for this purpose.

Projected Budget Budget Budget
Fund Balance Fund Balance Fund Balance Fund Balance
& Reserves & Reserves & Reserves & Reserves
Fund # Fund Name at 6/30/2024 at 6/30/2025 Change % Change Fund # Fund Name at 6/30/2025 at 6/30/2026 Change % ChangeGENERAL FUND GENERAL FUND 100 General Fund 29,555,791 $ 28,330,082 $ (1,225,709) $ -4.15% 100 General Fund 28,330,082 $ 29,081,340 $ 751,258 $ 2.65%

ENTERPRISE FUNDS ENTERPRISE FUNDS
560, 563 Water Enterprise 160,851,755 154,885,756 (5,965,999) -3.71% 560, 563 Water Enterprise 154,885,756 149,685,271 (5,200,485) -3.36%

CAPITAL PROJECT FUNDS CAPITAL PROJECT FUNDS
542 Solid Waste Improvements 0 0 0 0.00% 542 Solid Waste Improvements 0 0 0 0.00%

ALL OTHER NON-MAJOR FUNDS ALL OTHER NON-MAJOR FUNDS
xxx All Other Non-Major Funds 408,746,988 343,018,762 (65,728,226) -16.08% xxx All Other Non-Major Funds 343,018,762 308,063,239 (34,955,523) -10.19%

72 2024/25 – 2025/26 Operating Budget
Revenues
FY 2024/25 GENERAL FUND REVENUE BY CATEGORY
$76.9 Million

73 2024/25 – 2025/26 Operating Budget
Revenues

GENERAL FUND REVENUE SUMMARY
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget % Change Budget % Change Taxes and Fines $ 30,563,133 $ 31,172,187 $ 31,040,046 $ 31,914,331 2.38% $ 34,579,826 8.35% Use of Money and Property 749,103 1,061,332 1,394,803 1,438,227 35.51% 1,147,857 -20.19% Community Development 2,457,219 2,072,102 2,250,047 2,625,265 26.70% 2,809,187 7.01% Engineering 1,987,664 1,851,887 2,052,175 2,791,037 50.71% 3,058,917 9.60% Parks and Recreation 4,982,884 5,377,799 5,099,807 5,276,464 -1.88% 5,431,670 2.94% Intergovernmental Agencies 6,040,426 6,391,055 6,399,183 6,523,105 2.07% 6,748,590 3.46% Current Services 348,475 264,070 303,619 311,798 18.07% 317,887 1.95% Charges for Services 8,607,900 8,915,428 8,890,449 9,636,476 8.09% 9,963,496 3.39% Other Revenue 2,269,906 529,134 861,448 678,060 28.15% 605,401 -10.72% Transfers In 17,425,949 13,237,633 11,684,088 15,720,062 18.75% 15,070,413 -4.13% TOTAL GENERAL FUND REVENUE $ 75,432,659 $ 70,872,627 $ 69,975,665 $ 76,914,825 $ 79,733,244 Annual Percentage Change -7.23% 8.53% 3.66%

74 2024/25 – 2025/26 Operating Budget
Revenues

GENERAL FUND SCHEDULE OF INTERFUND TRANSFERS IN
2023/24 2024/25 2025/26
From Fund Purpose Projected Budget Budget
Gas Tax Street Operations $ 1,736,004 $ 1,927,766 $ 1,789,845 Community Facilities District #2 Public Safety 693,952 713,710 732,314 Community Facilities District #3 Public Safety 1,454,958 1,525,091 1,552,009 Community Facilities District #4 Public Safety 3,001,243 3,196,371 3,319,698 Community Facilities District #5 Public Safety 2,819,109 3,025,524 3,152,693 Public Art Acquisition Art Commission 1,029 1,063 1,099 Abandoned Vehicle Abatement Vehicle Abatement 80,000 75,000 70,000 Measure J Street Operations 1,294,146 1,400,000 1,500,000 Community Facility Projects Return of Excess CIP Funding 108,050 0 0 Parks and Trails Projects Return of Excess CIP Funding 8,641 0 0 City Rentals Fund Closure 235,285 0 0
Pension/OPEB Obligation Interest 251,671 396,831 377,387 Pension/OPEB Obligation Pension/OPEB Funding Contribution 0 3,458,706 2,575,368 Total Transfers In $ 11,684,088 $ 15,720,062 $ 15,070,413

75 2024/25 – 2025/26 Operating Budget
Revenues

MAJOR GENERAL FUND RECURRING REVENUE SOURCES
2022/23 % of General 2023/24 % of General 2024/25 % of General 2025/26 % of General Actual Fund Revenue Projected Fund Revenue Budget Fund Revenue Budget Fund Revenue Property Tax $ 15,498,492 20.55% 15,990,626 $ 22.85% $ 16,404,824 21.33% $ 17,069,676 21.41% Sales Tax 11,191,139 14.84% 11,234,935 16.06% 11,553,212 15.02% 13,296,409 16.68% Community Facilities District Assessments 7,467,616 9.90% 7,969,262 11.39% 8,460,696 11.00% 8,756,714 10.98% Motor Vehicle In-Lieu Tax 5,969,216 7.91% 6,285,149 8.98% 6,436,105 8.37% 6,659,790 8.35% Development Fees 4,444,883 5.89% 4,302,222 6.15% 5,416,302 7.04% 5,868,104 7.36% Parks and Recreation Property Tax 3,261,794 4.32% 3,377,583 4.83% 3,404,323 4.43% 3,507,123 4.40% Gas Tax 1,683,819 2.23% 1,736,004 2.48% 1,927,766 2.51% 1,789,845 2.24% Parks and Recreation Program Fees 1,701,766 2.26% 1,690,219 2.42% 1,842,572 2.40% 1,894,094 2.38% Franchise Fees 1,649,986 2.19% 1,679,459 2.40% 1,747,121 2.27% 1,819,519 2.28% Major Recurring Revenue Sources
The City of Brentwood has several recurring revenue sources that support the General Fund operational budget. In FY 2024/25, the most significant of these revenue sources, based on the percentage of the total revenue budget, are: 1) Property Tax; 2) Sales Tax; 3) CFD Assessments; 4) Motor Vehicle In-Lieu Tax; 5) Development Fees; 6) Parks and Recreation Property Tax; 7) Gas Tax; 8) Parks and Recreation Program Fees and 9) Franchise Fees. Detailed below are the assumptions used for estimating the major revenue sources for FY 2024/25 and FY 2025/26.

Property Tax
Contra Costa County levies a tax of 1% on the assessed valuation of property within the county. The City of Brentwood receives approximately a

12.1% share of this 1% levy for property located within the City limits. In recent years, the City has experienced strong increases in property tax revenues. In FY 2022/23, the City’s property tax base increased by 9.3%, followed by an additional increase of 5.6% in FY 2023/24. These escalations were a direct result of rising property values combined with moderate new housing development.

76 2024/25 – 2025/26 Operating Budget
Revenues
Property tax revenues are expected to increase from $240 per capita in FY 2022/23 to $260 per capita in the FY 2025/26 budget. The FY 2024/25 estimate of property tax revenue of $16.4 million represents 21.3% of General Fund revenues and is a 2.6% increase from FY 2023/24 projection. This modest increase reflects a cooling of the housing market, following a period of rapid price and interest rate increases.

The budgeted revenues for FY 2024/25 and FY 2025/26 are based on the estimates of new housing and non-residential development, increased taxable values from turnover during the year and by a change in the California Consumer Price Index (CPI) of 2%.

Typically, locally assessed real property subject to taxation is adjusted each year by 2% as noted in Proposition 13. This increase was compared to estimates from the City’s property tax revenue consultant’s projections for FY 2024/25 and FY 2025/26 for reasonableness.

A comparison of the City’s General Fund property tax per capita revenue to other local cities has been included to provide further understanding of the City’s revenue base and its ability to provide services to the City’s residents. The comparable cities were selected from neighboring counties, based on available data from the City’s property tax consultant.

Every city receives a different percentage of each property tax dollar levied by the county. This fact, along with differing property values and land use, can cause significant variances in the per capita property tax amount among cities (e.g.

Pleasanton has significant office and commercial property tax revenues which raise their per capita receipts). The chart to the right demonstrates that Brentwood receives less property tax revenue per capita than the average comparison city.

City 1/1/2023
Population
2023/24 Est.

Revenue Per
Capita
Pleasanton 76,459 $ 1,021.38
Dublin 71,750 732.70
Benicia 26,180 719.50
Oakland 419,556 600.99
Livermore 84,793 518.34
Fremont 229,467 462.88
Walnut Creek 69,245 322.31
Martinez 36,543 308.38
Danville 42,823 300.26
Union City 66,754 248.57
San Ramon 82,870 236.94
Brentwood (1) 64,513 223.15
Vallejo 121,658 200.48
Tracy 95,615 195.32
Vacaville 100,806 192.44
Concord 122,074 158.00
Fairfield 119,526 143.30
Antioch 115,442 133.37
Pleasant Hill 33,397 122.53
Stockton 319,731 109.18
Oakley 44,995 88.10
Average Comparison City 111,628 $ 335.15

PROPERTY TAX
(1) Excludes payments received from the county for the Agency's share of the Redevelopment Property Tax Trust Fund residual distribution.

77 2024/25 – 2025/26 Operating Budget
Revenues
Sales Tax
Sales tax revenue is the General Fund’s second largest individual revenue source and varies depending upon economic conditions and activity. The City of Brentwood receives a 1% share of all taxable sales generated within its borders. In addition to this 1% share, the City receives a small portion of an additional, statewide voter-approved 1/2% sales tax amount which is dedicated for public safety purposes.

Not including the public safety portion, the sales tax budget for FY 2024/25 is $11.6 million and represents 15.0% of General Fund revenues. This budgeted amount is a

0.4% increase from the FY 2023/24 projection.

In FY 2019/20, sales tax revenue declined by 4.3% as a result of the economic impacts of pandemic restrictions. A
rebound in sales tax revenue
was experienced in FY 2020/21
and FY 2021/22 with increases
in sales tax revenue of 9.6%
and 17.6%, respectively. This
rebound was driven by the
impact of Federal and State
economic stimulus along with
a high demand for tangible
goods. The FY 2023/24
projection and FY 2024/25
budget reflects a flattening of
revenue as price inflation dampens consumer demand. The FY 2025/26 budget reflects a larger increase in revenue primarily due to the anticipated opening of a new Costco location.

The sales tax revenue budgets for FY 2024/25 and FY 2025/26 were compared to estimates from the City’s sales tax revenue consultants for reasonableness. The multi-city comparison of calendar year 2023 sales tax revenue, shown above, illustrates the City has had room for additional economic development to increase per capita revenue. However, the potential increase in revenue from the new Costco is anticipated to move the City’s ranking higher.

City 1/1/2023
Population
2023 Calendar
Revenue
Per Capita
Tracy 95,615 690.77 $
Livermore 84,793 373.02
Walnut Creek 69,245 369.59
Dublin 71,750 343.66
Fremont 229,467 293.47
Concord 122,074 277.49
Pleasanton 76,459 271.44
Pleasant Hill 33,397 264.39
Vacaville 100,806 235.42
Benicia 26,180 214.08
Fairfield 119,526 211.66
Stockton 319,731 204.04
Union City 66,754 149.69
Brentwood 64,513 142.34
Danville 42,823 134.34
Vallejo 121,658 132.14
Martinez 36,543 130.14
Antioch 115,442 127.81
San Ramon 82,870 127.61
Oakland 419,556 119.05
Oakley 44,995 53.72
Average Comparison City 111,628 $ 231.71

SALES TAX

78 2024/25 – 2025/26 Operating Budget
Revenues
Community Facilities District Assessments
All new developments in the City are required to be included in a CFD. The City uses a Special Revenue Fund to account for special benefit assessments levied on property owners within the CFD. Assessment revenue is restricted to the following allowable uses: public safety services; joint use school facilities; community facilities; and construction, acquisition and maintenance of open spaces, flood drains and storm drains. On an annual basis, the City transfers the majority of this revenue to the General Fund to fund public safety services.

Budgeted growth in this revenue source is driven by new development in the City combined with an annual inflation increase (approximately 2%) in existing CFD assessment rates. CFD assessments are levied on parcels for which a building permit has been issued before January 1 of the prior fiscal year. This timing results in a lag between permit issuance and the generation of CFD revenue. Revenue budgets are based on the previous fiscal year’s budgeted revenue, plus revenue generated from estimates of the new taxable parcels that will be added in the year. For FY 2024/25 and FY 2025/26, new taxable parcel assumptions are based on FY 2022/23 actual permit activity and FY 2023/24 budgeted permits, respectively.

79 2024/25 – 2025/26 Operating Budget
Revenues
Motor Vehicle In-Lieu Tax
The State Revenue and Taxation code imposes an annual license fee of 0.65% of the market value of motor vehicles in-lieu of a local motor vehicle property tax.

Additionally, the City receives Property Tax In-Lieu of Vehicle License Fee (VLF) revenue which is considered Motor Vehicle In-Lieu Tax revenue for reporting purposes and makes up the majority of this revenue category.

As a result of the State Budget Act of 2014, allocation of the Motor Vehicle In-Lieu Tax is driven by the change in the City’s property tax values, not by population. Due to increases in the City’s assessed valuations, revenue from the Motor Vehicle In-Lieu Tax has increased an average of 6.5% per year from FY 2021/22 through FY 2023/24. The budget for FY 2024/25 includes a 2.4% increase in revenue to a total of $6.4 million, followed by an increase in FY 2025/26 of 3.5% to $6.7 million. These increases are based on the analysis utilized in projecting property tax, discussed in the Property Tax section above.

Development Revenue
Development fees are collected to offset the cost of inspection; plan retention and review; record keeping; materials investigation; special inspection management and overhead of the Building, Planning and Engineering divisions. The largest sources of development revenue for FY 2024/25 and FY 2025/26 are building permits, building plan checking fees, engineering inspection fees and plan check administration. There were 326 single-family and 358 multi-family residential permits issued in FY 2021/22 and 76 single-family and no multi-family residential permits issued in FY 2022/23. In FY 2023/24, a total of 50 single-family and no multi-family permits are expected to be issued by year-end. Projected revenue of $5.4 million for FY 2024/25 is based on new development estimates of 75 single-family residential and 250,000 square feet of commercial, office and industrial permits. Revenue projections of $5.9 million in FY 2025/26 is based on 100 single-family residential, 75 multi-family residential and 50,000 square feet of commercial, office and industrial permits.

In addition to estimated revenues for permits issued for new development, estimated revenues from all other permits and services provided by the Building, Planning and Engineering divisions are included in the budget.

80 2024/25 – 2025/26 Operating Budget
Revenues
Parks and Recreation Property Tax
Contra Costa County levies a tax of 1% on the assessed valuation of property within the county. The City of Brentwood Parks and Recreation Department receives approximately 2.4% of the City’s share of the 1% levy for property located within the City limits. These revenues are used to support the Parks and Recreation Department programs and services. The FY 2024/25 budget of $3.4 million and FY 2025/26 budget of $3.5 million both represent 4.4% of General Fund total revenue. The budgeted amounts for Parks and Recreation property taxes are estimated consistent with the analysis utilized in projecting property tax, discussed in the Property Tax section above.

Gas Tax
The State of California imposes a tax on motor vehicle and aircraft fuel, with a portion of these funds being allocated to cities to help fund street improvements and maintenance. These funds are commonly referred to as “Gas Tax” revenues.

The City transfers Gas Tax revenues into the General Fund to support street maintenance.

Gas tax revenues in FY 2021/22 were adversely affected by the impacts of pandemic restrictions, with activity returning to pre-pandemic levels in FY 2022/23.

The FY 2023/24 revenue estimate of $1.7 million and the budget of $1.9 million for FY 2024/25 and $1.8 million for FY 2025/26 are all based on projections provided by the California Local Government Finance Almanac (CLGFA). The FY 2024/25 budget includes an additional one-time transfer in of $0.2 million from an accumulation of prior year’s revenues.

Additional taxes collected under the authority of SB 1 – Road Maintenance and Rehabilitation Account (RMRA) will be used to directly fund road maintenance capital projects and are not currently budgeted as a revenue source for the General Fund.

81 2024/25 – 2025/26 Operating Budget
Revenues
Parks and Recreation Program Fees
The Parks and Recreation department offers a variety of sports and recreation programs and rental of various parks facilities. Fees are collected for facility rental and programs according to a cost recovery policy set by the City Council. FY 2019/20 and FY 2020/21 revenues were adversely affected by pandemic restrictions, however FY 2021/22 revenues rebounded to pre-pandemic levels. The budget for program fees for FY 2024/25 is expected to be $1.7 million and rise slightly to $1.8 million in FY 2025/26.

Franchise Fees
The City charges local wireless, cable, telephone and electric utilities for their use of City owned streets and right-of-way. Franchise fees have posted moderate average annual increases of 2.8% from FY 2021/22 through FY 2023/24 and are budgeted to increase 4% per year in FY 2024/25 and FY 2025/26. In general, franchise fee revenue budgets are estimated based on an analysis of existing contracts, changes to the terms expected in the budget period, and the effects on revenue of service demand trends, development and population growth.

82 2024/25 – 2025/26 Operating Budget
Revenues

OTHER CITY REVENUE SOURCES
Solid Waste User Fees
Charges for Solid Waste Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses and capital improvements costs of the Enterprise. Five-year rate studies are developed that include the future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Solid Waste revenue budget.

Water User Fees
Charges for Water Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are developed that include the future enterprise operating expenditures, debt and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Water revenue budget.

83 2024/25 – 2025/26 Operating Budget
Revenues
Wastewater User Fees
Charges for Wastewater Enterprise services provided by the City are set in accordance with Proposition 218 and are required to be sufficient to cover the necessary operating expenses, debt service and capital improvements costs of the Enterprises. Five-year rate studies are developed that include the future enterprise operating expenditures and capital budgets. City Council's approval of the enterprise rates for the five-year period provide the basis for the Wastewater revenue budget.

84 2024/25 – 2025/26 Operating Budget
Revenues
Development Impact Fee Revenue
Water, Wastewater, Roadway, Community Facilities, and Parks and Trails development impact fees are collected for all new development in the City of Brentwood. These fees are collected for the purpose of constructing or expanding Master Planned City infrastructure. The current Development Impact Fee Program was adopted in 2021.

The budgeted revenue of $5.4 million in FY 2024/25 and $7.3 million in FY 2025/26, is calculated based on the estimated number of single-family and multi-family dwelling units and commercial/office/industrial development permits projected to be issued in the respective fiscal years.

Building Permit Projections Growth within the City is a major factor in determining future General Fund revenue, as virtually all of the largest General Fund revenue sources are impacted by development. Revenue is impacted directly through permit fees, or indirectly from a larger property and sales tax base from which to support operations and capital projects. Development impact fee revenue is also directly related to the volume of development within the City. The following permit projections represent currently known development projects. As future projects are identified, annual permit projections will be updated.

Fiscal Year 2019/20 2020/21 2021/22 2022/23 2023/24
Projected
2024/25
Budget
2025/26
Budget
Single-Family Units Per Year 274 241 326 76 50 75 100
Multi-Family Units Per Year 0 97 358 0 0 0 75
Sq. Ft. Per Year (1) 203,827 104,042 46,461 17,865 30,000 250,000 50,000 (1) Sq. Ft. refers to the square footage of Commercial, Office and Industrial development.

Building Permits

85 2024/25 – 2025/26 Operating Budget
Revenues
FY 2024/25 CITYWIDE REVENUE BY FUND TYPE
$305.9 Million

86 2024/25 – 2025/26 Operating Budget
Revenues

REVENUE SUMMARY BY FUND
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

GENERAL FUND
100 General Fund $ 75,432,657 $ 70,872,627 $ 69,975,665 $ 76,914,825 8.53% $ 79,733,244 3.66% Total General Fund 75,432,657 70,872,627 69,975,665 76,914,825 8.53% 79,733,244 3.66%

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 18,706,211 18,941,097 19,517,301 20,603,543 8.78% 21,318,928 3.47% 560,563 Water Enterprise 34,312,806 30,343,788 30,119,894 32,416,943 6.83% 34,511,552 6.46% 590,593 Wastewater Enterprise 20,147,263 16,852,982 17,609,333 18,075,214 7.25% 18,458,645 2.12% 501 City Rentals Enterprise 209,210 0 0 0 0.00% 0 0.00% 510,511,513 Housing Enterprise 1,025,922 1,111,715 1,023,249 1,249,868 12.43% 1,285,558 2.86% Total Enterprise Funds 74,401,412 67,249,582 68,269,777 72,345,568 7.58% 75,574,683 4.46%

INTERNAL SERVICE FUNDS
701 Information Systems 3,937,166 4,279,106 4,300,237 4,298,772 0.46% 4,543,359 5.69% 702 Vehicle and Equipment Replacement 2,436,685 1,771,636 1,894,940 2,469,025 39.36% 2,444,599 -0.99% 703 Information Systems Replacement 1,137,804 1,104,928 1,174,748 1,252,983 13.40% 925,303 -26.15% 704 Facilities Replacement 1,187,734 1,157,087 1,296,095 1,444,756 24.86% 1,438,431 -0.44% 705 Tuition 16,094 15,995 16,847 17,570 9.85% 16,782 -4.48% 706 Fleet Maintenance Services 2,196,740 2,166,657 2,178,265 2,632,011 21.48% 2,645,849 0.53% 707 Facilities Maintenance Services 1,898,864 1,896,922 1,924,384 2,072,933 9.28% 2,199,456 6.10% 708 Parks and LLAD Replacement 2,625,550 1,702,284 2,209,373 1,943,400 14.16% 1,784,242 -8.19% 709 Insurance 3,194,658 3,528,390 3,528,390 4,127,121 16.97% 4,329,667 4.91% 710 Pension/OPEB Obligation 4,679,456 4,827,765 5,579,753 4,553,379 -5.68% 3,559,393 -21.83% Total Internal Service Funds 23,310,751 22,450,770 24,103,032 24,811,950 10.52% 23,887,081 -3.73%

87 2024/25 – 2025/26 Operating Budget
Revenues
REVENUE SUMMARY BY FUND (Continued)
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

SPECIAL REVENUE FUNDS
203-209 Gas Tax $ 3,648,924 $ 3,332,449 $ 3,403,568 $ 3,519,099 5.60% $ 3,545,054 0.74% 214 SB1186 Disability Access 24,448 23,009 29,886 28,220 22.65% 27,512 -2.51% 216 Police Grants 299,636 325,599 341,262 333,660 2.48% 334,122 0.14% 217 Grants 688,123 285,006 436,921 175,700 -38.35% 175,550 -0.09% 219 Economic Development Grant 199,604 157,867 217,664 216,179 36.94% 216,609 0.20% 229 American Rescue Plan Act of 2021 6,923,339 2,983,339 0 0 -100.00% 0 0.00% 230 Citywide Park Assessment District 7,327,708 7,657,333 7,412,808 7,779,547 1.60% 8,180,214 5.15% 231 Community Facilities District #2 694,838 709,132 709,723 725,095 2.25% 743,384 2.52% 232 Community Facilities District #3 2,143,348 2,361,871 2,360,101 2,410,781 2.07% 2,435,745 1.04% 233,235 Community Facilities District #4 3,070,658 3,176,812 3,239,840 3,374,612 6.23% 3,491,709 3.47% 234 Community Facilities District #5 2,555,582 3,099,956 2,908,802 3,059,918 -1.29% 3,181,931 3.99% 250 Water Development Impact Fee 797,607 1,668,246 2,097,245 1,775,419 6.42% 2,321,187 30.74% 251 Roadway Development Impact Fee 1,066,831 1,154,017 419,400 2,414,123 109.19% 2,224,687 -7.85% 252 Parks and Trails Development Impact Fee 829,930 423,632 807,931 811,273 91.50% 1,746,830 115.32% 255 Wastewater Development Impact Fee 404,438 446,797 341,908 967,362 116.51% 1,262,122 30.47% 256 Community Facilities Development Impact Fee 208,911 45,898 57,298 69,086 50.52% 130,596 89.03% 261 Development Impact Fee Administration 72,155 200,881 121,495 189,892 -5.47% 161,072 -15.18% 262 Agriculture Land Administration 6,428 5,641 44,337 23,158 310.53% 18,839 -18.65% 263 Agriculture Land Acquisition 25,444 20,327 179,258 90,735 346.38% 80,788 -10.96% 264 First-Time Homebuyer 28,180 9,645 22,457 41,250 327.68% 35,750 -13.33% 265 Affordable Housing In-Lieu Fee 277,873 33,561 144,989 127,500 279.91% 87,750 -31.18% 267 Public Art Administration 28,693 6,475 40,382 35,600 449.81% 31,805 -10.66% 268 Public Art Acquisition 97,456 21,474 145,022 110,163 413.01% 98,597 -10.50% 269 Parking In-Lieu 4 4 8 51 1175.00% 44 -13.73%
272 Riparian Mitigation Site Maintenance 745 402 4,002 2,800 596.52% 2,200 -21.43% 280 Asset Forfeiture 8,460 1,082 3,489 429 -60.35% 338 -21.21% 281 Abandoned Vehicle Abatement 23,344 40,671 34,355 44,700 9.91% 45,186 1.09% 285 PEG Media 5,818 4,386 13,344 19,099 335.45% 15,441 -19.15% 286 Parks Advertising 149 0 0 0 0.00% 0 0.00%
293 Measure J 1,320,947 1,237,066 1,279,967 1,292,410 4.47% 1,301,709 0.72% 302 City Low Income Housing 143 121 773 525 333.88% 413 -21.33% 6xx Landscape and Lighting Assessment Districts 26,603,716 27,371,466 27,159,068 29,353,571 7.24% 31,069,663 5.85% Total Special Revenue Funds 59,383,480 56,804,165 53,977,303 58,991,957 3.85% 62,966,847 6.74%

88 2024/25 – 2025/26 Operating Budget
Revenues
REVENUE SUMMARY BY FUND (Continued)
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 1,199,185 $ 2,053,129 $ 2,051,146 $ 2,054,123 0.05% $ 2,049,204 -0.24% 448 General Obligation Bonds Series 2002 644,588 658,143 629,053 681,381 3.53% 725,007 6.40% 461 2019 Civic Center Project Lease Revenue Refunding Bonds 2,837,610 3,440,380 3,445,521 3,433,005 -0.21% 3,425,007 -0.23% 466 2015 Lease Financing 789,500 788,182 787,682 790,796 0.33% 792,116 0.17% Total Debt Service Funds 5,470,883 6,939,834 6,913,402 6,959,305 0.28% 6,991,334 0.46% 2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

CAPITAL PROJECT FUNDS
336 Roadway Improvements $ 2,028,225 $ 11,486,432 $ 14,711,041 $ 7,687,760 -33.07% $ 5,832,596 -24.13% 337 Community Facilities Improvements 3,067,726 1,390,419 672,370 1,252,000 -9.96% 155,500 -87.58% 352 Parks and Trails Improvements 13,945,297 6,437,685 5,804,576 1,484,191 -76.95% 1,004,598 -32.31% 366 2015 Lease Financing 30,659 0 388,930 0 0.00% 0 0.00% 380 Civic Center Capital Improvement Financing Program 1,170,282 1,181,626 1,185,917 1,180,604 -0.09% 1,179,314 -0.11% 381 City Capital Improvement Financing Program 816,040 2,822,759 2,889,405 863,287 -69.42% 841,624 -2.51% 392 Capital Infrastructure 59,815 5,287 305,550 85,128 1510.14% 0 -100.00% 393 Vineyards Projects 83,143 0 427,942 0 0.00% 0 0.00% 542 Solid Waste Improvements 3,145 800,000 800,000 46,625,000 5728.13% 42,175,000 -9.54% 562 Water Improvements 4,199,774 3,506,845 4,045 4,573,972 30.43% 12,198,500 166.69% 592 Wastewater Improvements 38,613,577 11,300,000 29,786,445 2,150,000 -80.97% 3,500,000 62.79% Total Capital Project Funds 64,017,683 38,931,053 56,976,221 65,901,942 69.28% 66,887,132 1.49% TOTAL FUNDS $ 302,016,866 $ 263,248,031 $ 280,215,400 $ 305,925,547 16.21% $ 316,040,321 3.31%

89 2024/25 – 2025/26 Operating Budget
Expenditures
FY 2024/25 GENERAL FUND EXPENDITURE SUMMARY
$78.1 Million

90 2024/25 – 2025/26 Operating Budget
Expenditures

GENERAL FUND EXPENDITURE SUMMARY
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Actual Budget Projected Budget % Change Budget % Change Legislative $ 422,006 $ 502,104 $ 454,303 $ 499,652 -0.49% $ 513,921 2.86% City Manager 2,757,984 3,197,529 2,855,873 3,330,014 4.14% 3,111,128 -6.57% City Attorney 1,865,822 2,259,607 1,860,133 2,483,917 9.93% 2,514,543 1.23% Community Development 5,079,096 6,106,396 5,240,167 6,564,015 7.49% 6,548,400 -0.24% Engineering 3,593,515 4,132,116 3,780,419 4,289,056 3.80% 4,476,604 4.37% Finance and Information Systems 2,658,012 2,985,206 2,898,809 3,054,668 2.33% 3,178,824 4.06% Human Resources 1,464,980 1,988,076 1,851,227 2,019,707 1.59% 2,128,643 5.39% Parks and Recreation 7,847,360 9,265,248 8,585,457 9,486,542 2.39% 9,819,546 3.51% Police Department 28,746,187 32,413,781 30,278,726 33,276,812 2.66% 34,712,422 4.31% Streets 4,106,366 4,792,708 4,683,426 5,060,859 5.59% 5,183,533 2.42% Successor Agency 1,736,555 1,848,046 1,827,498 1,697,556 -8.14% 824,329 -51.44% Community Services 1,005,141 1,176,542 1,174,887 1,298,193 10.34% 1,315,069 1.30% Non-Departmental 920,592 1,114,718 966,637 1,042,662 -6.46% 1,071,403 2.76% Transfers Out 12,980,586 5,473,249 5,748,232 4,036,881 -26.24% 3,583,621 -11.23% TOTAL GENERAL FUND EXPENDITURES $ 75,184,202 $ 77,255,326 $ 72,205,794 $ 78,140,534 $ 78,981,986 Annual Percentage Change -3.96% 1.15% 1.08%

91 2024/25 – 2025/26 Operating Budget
Expenditures

GENERAL FUND SCHEDULE OF INTERFUND TRANSFERS OUT
2023/24 2024/25 2025/26
To Fund Purpose Projected Budget Budget
Transfers Out
Roadway Improvements Brentwood Boulevard Widening North - Phase I $ 0 $ 678,000 $ 0 Roadway Improvements Pavement Management Program 910,596 1,060,596 1,210,596 Community Facilities Improvements Brentwood Boulevard Specific Plan and EIFD 15,000 0 0 Community Facilities Improvements Downtown Specific Plan Update and EIFD 15,000 0 0 Community Facilities Improvements Fleet Electrification 0 250,480 31,310 Community Facilities Improvements Housing Element Update and Safety Element Update 0 (300,584) 0 Community Facilities Improvements Zoning Ordinance Update 0 300,737 0 Parks and Trails Improvements Creekside Pickleball Courts 101,868 0 0 Parks and Trails Improvements Sand Creek Sports Complex 1,621,091 0 0 Parks and LLAD Transfers Contribution to Citywide Parks and LLADs 1,485,849 1,897,652 2,187,215 Parks and LLAD Replacement Park Replacement 736,357 150,000 154,500 Pension/OPEB Obligation Anticipated Excess Fund Balance 862,471 0 0 Total Transfers Out $ 5,748,232 $ 4,036,881 $ 3,583,621

92 2024/25 – 2025/26 Operating Budget
Expenditures

GENERAL FUND EXPENDITURES BY CATEGORY
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget % Change Budget % Change Personnel Services $ 39,437,324 $ 44,662,158 $ 41,205,340 $ 47,004,269 5.24% $ 49,401,239 5.10% Supplies and Services 9,604,628 13,119,319 11,427,724 13,068,225 -0.39% 12,881,582 -1.43% Internal Services 11,358,141 11,781,222 11,781,222 12,035,983 2.16% 12,272,647 1.97% Capital Outlay 1,803,523 2,219,378 2,043,276 1,995,176 -10.10% 842,897 -57.75% SUBTOTAL GENERAL FUND OPERATIONS 62,203,616 71,782,077 66,457,562 74,103,653 3.23% 75,398,365 1.75% Transfers Out 12,980,586 5,473,249 5,748,232 4,036,881 -26.24% 3,583,621 -11.23% TOTAL GENERAL FUND EXPENDITURES $ 75,184,202 $ 77,255,326 $ 72,205,794 $ 78,140,534 $ 78,981,986 Annual Percentage Change -3.96% 1.15% 1.08%
Total General Fund Budgeted Employee Allocation 211.93 211.93 211.93 213.23 213.23 Total General Fund Elected and Appointed Positions 40.00 40.00 40.00 40.00 40.00

93 2024/25 – 2025/26 Operating Budget
Expenditures

GENERAL FUND EXPENDITURES
Personnel Services
Personnel expenditures comprise the majority of General Fund appropriations, representing approximately 64% of General Fund operating expenses, including transfers out of $2.0 million for retiree medical benefits.. The total budgeted personnel expenditures for FY 2024/25 are $47.0 million, which is a 5.2% increase from the FY 2023/24 budget of $44.7 million. The increase is due to a combination placeholder cost of living increase of 3%, increases in health insurance costs, workers’ compensation rates, annual pension contributions, and the addition of one new full-time employee. In FY 2025/26, personnel expenditures increase to $49.4 million, or 5.1%, due to a placeholder cost of living increase, and anticipated increases to health insurance costs and pension contributions.

As illustrated in the chart, personnel costs will increase in the upcoming two budget years. FY 2023/24 projected personnel costs are substantially below the budgeted amount, mainly due to vacancies in the Police Department. Although five Police Officer positions were authorized in FY 2021/22 to form a new 5th geographic beat, these positions have not yet been filled and additional Police department vacancies have resulted in significant budget savings. Turnover and retirements in other City departments have added to the vacancy savings being projected.

For FY 2024/25, one additional Code Enforcement Officer position, has been added to assist with the current workload, add capacity to increase enforcement activities during evenings and weekends, and for anticipated enforcement activities from new sidewalk vending, mobile vending ordinances and a tobacco retailer licensing ordinance.

94 2024/25 – 2025/26 Operating Budget
Expenditures
Supplies and Services
The FY 2024/25 budget for supplies and services increased 1.3% from the FY 2023/24 budget. The budget for supplies and services related to ongoing City operations is increasing by $0.6 million (or 4.8%) in FY 2024/25 and $0.2 million (or 1.4%) in FY 2025/26. The increase in FY 2024/25 is due to higher utilities costs, escalating software services costs from technology shifting to cloud-based subscriptions and general inflationary pressures.

Other supplies and services are expected to decrease by $0.4 million (or

38.6%) as the majority of strategic initiatives from the FY 2022/23 – FY 2023/24 Strategic Plan are expected to be completed in FY 2024/25.

Internal Services
Internal Service costs of $12.0 million are budgeted for FY 2024/25, an increase of 2.2% from the FY 2023/24 budget of $11.8 million. The increase is from a combination of the rising cost of insurance coverage and increased facility maintenance and replacement needs, offset by minor reductions in other internal service costs due to reallocations related to staffing. In FY 2025/26, internal service costs will increase 2.0% mainly due to insurance coverage costs.

95 2024/25 – 2025/26 Operating Budget
Expenditures
Total General Fund Expenditures
Total General Fund expenditures include personnel services, supplies and services and internal services, as well as operational transfers. Non-operating transfers, including funding for CIP projects, are not included in these totals, as the variation from one year to the next would diminish any value derived from analyzing the trends.

Total expenditures on a per capita basis will increase from the FY 2023/24 projected actual of $1,074 to $1,187 per capita in FY 2024/25. This increase over FY 2023/24 projected actual is due mainly to personnel expenditure increases as the City expects to see a reduction in the current historically high 10% vacancy rate. Personnel costs are also increasing from cost of living, health insurance, workers’ compensation and annual pension contributions increases along with the addition of one full-time employee. In addition, supplies and services costs increase in FY 2024/25, mainly from inflationary pressures, higher contractual services, software service and utilities costs.

In FY 2025/26, increases in personnel costs, from annual cost of living and benefit cost increases, are partially offset by reductions in spending on carryover Strategic Initiatives and other one-time costs.

96 2024/25 – 2025/26 Operating Budget
Expenditures
FY 2024/25 CITYWIDE EXPENDITURES BY FUND TYPE
$378.8 Million

97 2024/25 – 2025/26 Operating Budget
Expenditures

CITYWIDE EXPENDITURES
The table below is a summary of the City’s expenditures by fund type. General Fund expenditures are discussed in detail beginning on page

93. The expenditure increase in the Enterprise Funds in FY 2024/25 is due to increases in Water Enterprise operating and capital costs, as well as increases in Wastewater Enterprise personnel costs and capital costs. The expenditure increase in FY 2025/26 is due to funding Wastewater capital projects.

FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Actual Projected Budget Budget
General Fund $ 75,184,202 $ 72,205,794 $ 78,140,534 $ 78,981,986 Enterprise Funds 82,848,520 70,933,995 79,958,674 85,360,521 Internal Service Funds 21,442,820 30,443,748 33,020,931 30,244,195 Special Revenue Funds 90,483,589 69,553,198 63,354,221 73,598,825 Debt Service Funds 6,681,915 6,963,220 6,996,635 7,022,382 Capital Project Funds 26,901,299 55,336,723 117,374,486 80,237,162 Total Expenditures $ 303,542,345 $ 305,436,678 $ 378,845,481 $ 355,445,071 Several of the City’s Internal Service funds accumulate resources for replacement of City assets and expenditures can vary greatly from year to year due to the timing of the City’s replacement needs. The increase in projected expenditures in FY 2023/24 is due primarily to higher levels of vehicle and equipment replacement purchases, facilities replacement projects and a one-time transfer out of the Pension/OPEB Obligation Fund for a loan to partially fund the Sand Creek Sports Complex project, which will be repaid from existing bond refinance savings over the next ten years. The increase in FY 2024/25 is primarily due to increases in insurance costs and parks, LLAD and facilities replacements, partially offset by decreases in vehicle and equipment replacements. Internal Service Fund expenditures decrease in FY 2025/26 mainly due to the prior year loan transfer from Pension/OPEB Obligation Fund not recurring and lower budget for one-time pension paydowns.

Special Revenue Funds include the Citywide Park Assessment District and Landscape and Lighting Assessment Districts. These funds budget expenditure increases in FY 2024/25 due to higher utility costs and maintenance costs for new infrastructure. In addition, various grant funds and Development Impact Fee funds are considered Special Revenue Funds. Grant funding is variable and dependent upon timing of projects receiving grant funding. Development Impact Fee revenues are collected to pay for the infrastructure capital projects necessary from growth and development. As the timing of funding capital projects varies, the Development Impact Fee funds show decreased expenditures in FY 2024/25 and then large increases in FY 2025/26. The most significant project being funded by these fees in FY 2024/25 is

98 2024/25 – 2025/26 Operating Budget
Expenditures
the Lone Tree Way Roadway Improvements project. Additionally, three key projects being funded in FY 2025/26 are the Brentwood Boulevard Widening North - Phase I, Pump Station 2.4 Installation and Wastewater Treatment Plant Tertiary Filter Expansion projects.

Expenditures in the Capital Project Funds are highly variable from one year to the next, depending upon the volume and type of projects currently under construction. For example, the FY 2024/25 budget includes $46.6 million for the Solid Waste Organics Diversion project, $16.4 million for various water improvement projects, and $9.6 million for the Innovation Center @ Brentwood Infrastructure project. FY 2025/26 budget includes $42.2 million for the Solid Waste Organics Diversion project, $8.5 million for the Sand Creek Sports Complex project, $9.5 million for various water improvement projects, and $4.6 million for the Brentwood Boulevard Widening North – Phase I project.

99 2024/25 – 2025/26 Operating Budget
Expenditures

EXPENDITURE SUMMARY BY FUND
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

GENERAL FUND
100 General Fund $ 75,184,202 $ 77,255,326 $ 72,205,794 $ 78,140,534 1.15% $ 78,981,986 1.08% Total General Fund 75,184,202 77,255,326 72,205,794 78,140,534 1.15% 78,981,986 1.08%

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 15,099,508 20,654,531 18,029,256 20,283,336 -1.80% 20,586,196 1.49% 560,563 Water Enterprise 35,175,109 34,136,050 33,067,264 38,382,942 12.44% 39,712,037 3.46% 590,593 Wastewater Enterprise 31,346,654 20,049,510 18,683,073 20,065,123 0.08% 23,825,825 18.74% 501 City Rentals Enterprise 308,982 235,285 235,285 0 -100.00% 0 0.00% 510,511,513 Housing Enterprise 918,266 1,192,775 919,117 1,227,273 2.89% 1,236,463 0.75% Total Enterprise Funds 82,848,519 76,268,151 70,933,995 79,958,674 4.84% 85,360,521 6.76%

INTERNAL SERVICE FUNDS
701 Information Systems 3,377,729 4,718,679 4,378,382 4,549,944 -3.58% 4,682,074 2.90% 702 Vehicle and Equipment Replacement 1,835,538 7,362,524 6,403,376 4,993,074 -32.18% 4,222,505 -15.43% 703 Information Systems Replacement 1,558,784 1,695,005 557,863 977,564 -42.33% 919,952 -5.89% 704 Facilities Replacement 133,409 1,469,206 1,040,884 1,463,604 -0.38% 1,000,366 -31.65% 705 Tuition 12,846 31,103 18,588 31,654 1.77% 31,685 0.10% 706 Fleet Maintenance Services 2,087,102 2,392,924 2,188,263 2,649,173 10.71% 2,630,916 -0.69% 707 Facilities Maintenance Services 1,691,734 2,202,766 2,127,118 2,253,016 2.28% 2,301,234 2.14% 708 Parks and LLAD Replacement 1,886,820 2,041,218 1,708,864 2,731,692 33.83% 2,764,792 1.21% 709 Insurance 3,143,140 3,675,965 3,566,287 4,127,121 12.27% 4,329,667 4.91% 710 Pension/OPEB Obligation 5,715,719 9,603,151 8,454,123 9,244,089 -3.74% 7,361,004 -20.37% Total Internal Service Funds 21,442,821 35,192,541 30,443,748 33,020,931 -6.17% 30,244,195 -8.41%

100
2024/25 – 2025/26 Operating Budget
Expenditures
EXPENDITURE SUMMARY BY FUND (Continued)
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

SPECIAL REVENUE FUNDS
203-209 Gas Tax $ 3,186,273 $ 3,337,947 $ 3,336,896 $ 3,731,228 11.78% $ 3,593,393 -3.69% 214 SB1186 Disability Access 2,912 21,186 1,316 21,695 2.40% 22,270 2.65% 216 Police Grants 207,545 683,457 633,088 325,000 -52.45% 325,000 0.00% 217 Grants 768,530 1,448,275 701,125 484,847 -66.52% 175,000 -63.91% 219 Economic Development Grant 220,520 278,055 267,655 292,900 5.34% 292,925 0.01% 229 American Rescue Plan Act of 2021 6,923,339 0 0 0 0.00% 0 0.00% 230 Citywide Park Assessment District 6,032,921 6,844,234 6,123,183 7,365,889 7.62% 7,811,346 6.05% 231 Community Facilities District #2 686,321 714,921 700,996 728,776 1.94% 747,380 2.55% 232 Community Facilities District #3 2,131,312 2,441,536 2,347,534 2,430,531 -0.45% 2,461,120 1.26% 233,235 Community Facilities District #4 3,059,119 3,315,163 3,222,256 3,425,737 3.34% 3,549,859 3.62% 234 Community Facilities District #5 2,544,144 3,233,978 2,892,616 3,106,668 -3.94% 3,234,056 4.10% 250 Water Development Impact Fee 2,937,416 2,253,324 2,195,923 2,537,519 12.61% 6,315,849 148.90% 251 Roadway Development Impact Fee 1,066,214 9,977,061 9,886,224 5,269,537 -47.18% 4,261,939 -19.12% 252 Parks and Trails Development Impact Fee 7,040,830 2,301,200 2,207,794 531,444 -76.91% 579,548 9.05% 255 Wastewater Development Impact Fee 25,736,354 8,060,585 5,797,811 584,809 -92.74% 6,325,210 981.59% 256 Community Facilities Development Impact Fee 170,497 179,157 167,747 177,690 -0.82% 173,130 -2.57% 261 Development Impact Fee Administration 300,389 251,604 250,782 251,453 -0.06% 226,521 -9.92% 262 Agriculture Land Administration 44,944 57,420 57,295 139,637 143.19% 52,755 -62.22% 263 Agriculture Land Acquisition 17,406 224,447 40,058 259,158 15.47% 84,809 -67.28% 264 First-Time Homebuyer 10,748 121,291 1,081 131,439 8.37% 131,509 0.05% 265 Affordable Housing In-Lieu Fee 579,211 735,338 639,393 798,545 8.60% 825,378 3.36% 267 Public Art Administration 851 867 867 1,242 43.25% 1,342 8.05% 268 Public Art Acquisition 377,791 41,521 21,332 7,501 -81.93% 7,899 5.31% 269 Parking In-Lieu 0 50 0 2 -96.00% 2 0.00%
272 Riparian Mitigation Site Maintenance 756 1,381 1,300 5,516 299.42% 2,200 -60.12% 280 Asset Forfeiture 0 174,145 174,000 0 -100.00% 0 0.00% 281 Abandoned Vehicle Abatement 76 80,090 80,000 75,000 -6.36% 70,000 -6.67% 285 PEG Media 581 5,588 2,504 3,714 -33.54% 3,770 1.51% 286 Parks Advertising 24,850 0 0 0 0.00% 0 0.00%
293 Measure J 1,336,213 1,311,511 1,310,576 1,422,568 8.47% 1,522,469 7.02% 302 City Low Income Housing 13 5,050 0 5,000 -0.99% 5,000 0.00% 6xx Landscape and Lighting Assessment Districts 25,075,513 27,221,721 26,491,846 29,239,176 7.41% 30,797,146 5.33% Total Special Revenue Funds 90,483,589 75,322,103 69,553,198 63,354,221 -15.89% 73,598,825 16.17%

101
2024/25 – 2025/26 Operating Budget
Expenditures
EXPENDITURE SUMMARY BY FUND (Continued)
2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

DEBT SERVICE FUNDS
445 Capital Improvement Revenue Refunding Bonds Series 2021 A & B $ 2,066,250 $ 2,085,676 $ 2,075,420 $ 2,078,043 -0.37% $ 2,075,315 -0.13% 448 General Obligation Bonds Series 2002 630,373 661,064 660,139 695,239 5.17% 730,296 5.04% 461 2019 Civic Center Project Lease Revenue Refunding Bonds 3,195,792 3,440,379 3,439,979 3,432,559 -0.23% 3,424,658 -0.23% 466 2015 Lease Financing 789,500 788,182 787,682 790,794 0.33% 792,113 0.17% Total Debt Service Funds 6,681,915 6,975,301 6,963,220 6,996,635 0.31% 7,022,382 0.37% 2022/23 2023/24 2023/24 2024/25 Budget 2025/26 Budget
Fund # Fund Name Actual Budget Projected Budget % Change Budget % Change

CAPITAL PROJECT FUNDS
336 Roadway Improvements $ 4,086,954 $ 18,317,689 $ 9,281,303 $ 16,127,148 -11.96% $ 8,261,320 -48.77% 337 Community Facilities Improvements 636,700 5,938,795 693,079 7,611,241 28.16% 5,218,775 -31.43% 352 Parks and Trails Improvements 1,951,841 5,960,202 949,569 11,932,911 100.21% 9,549,975 -19.97% 366 2015 Lease Financing 30,659 388,931 388,930 0 -100.00% 0 0.00% 380 Civic Center Capital Improvement Financing Program 1,174,269 1,188,854 1,188,409 1,185,031 -0.32% 1,184,065 -0.08% 381 City Capital Improvement Financing Program 516,693 3,317,965 3,317,965 811,905 -75.53% 834,527 2.79% 392 Capital Infrastructure 59,447 1,365,715 6,200 1,809,046 32.46% 0 -100.00% 393 Vineyards Projects 357,871 0 0 0 0.00% 0 0.00%
542 Solid Waste Improvements 3,145 1,200,000 1,200,000 46,625,000 3785.42% 42,175,000 -9.54% 562 Water Improvements 3,233,364 15,562,103 5,309,491 16,422,204 5.53% 9,513,500 -42.07% 592 Wastewater Improvements 14,850,356 36,800,000 33,001,777 14,850,000 -59.65% 3,500,000 -76.43% Total Capital Project Funds 26,901,299 90,040,254 55,336,723 117,374,486 30.36% 80,237,162 -31.64% TOTAL FUNDS $ 303,542,345 $ 361,053,676 $ 305,436,678 $ 378,845,481 4.93% $ 355,445,071 -6.18%

102
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

INTRODUCTION TO DEPARTMENT AND PERFORMANCE BUDGETS
The City of Brentwood Strategic Plan incorporates six focus areas that represent elements from the City’s General Plan – 1) Public Works; 2) Police Services; 3) Economic Development; 4) Community Development; 5) Parks & Recreation Services and 6) Fiscal Sustainability and Operational Management. The City’s current FY 2022/23 – 2023/24 Strategic Plan was adopted by the City Council in February 2022. This Budget includes the funding necessary to complete carryover initiatives from the current Strategic Plan.

The Strategic Plan consists of six focus areas, goals for each of those areas and specific initiatives to achieve the goals. The department budgets in this section provide status updates on initiatives included in the FY 2022/23 - 2023/24 Strategic Plan. Please refer to the Strategic Plan section, beginning on page 27, for information on the focus areas and goals. In addition, department Performance Measures reference applicable Strategic Plan focus areas.

The table below represents the performance budgets funding sources, by City department, for FY 2024/25 as well as the total employee allocation.

Total Employee
Department General Fund Enterprise Special Revenue Internal Service Total Allocation Legislative $ 499,652 $ 0 $ 0 $ 0 $ 499,652 0.50
City Manager 3,330,014 0 0 0 3,330,014 8.50
City Attorney 2,483,917 0 0 0 2,483,917 6.00
Community Development 6,564,015 867,925 0 0 7,431,940 26.00 Engineering 4,289,056 0 0 0 4,289,056 14.22
Finance and Information Systems 3,054,668 3,695,921 0 4,549,944 11,300,533 35.00 Human Resources 2,019,707 0 0 0 2,019,707 6.00
Parks and Recreation 9,486,542 0 3,179,695 0 12,666,237 28.60 Police 33,276,812 0 0 0 33,276,812 107.00
Public Works 5,060,859 72,111,825 0 3,866,879 81,039,563 107.18 Total $ 70,065,242 $ 76,675,671 $ 3,179,695 $ 8,416,823 $ 158,337,431 339.00 Total Employee Allocation 213.23 93.20 9.42 23.15 339.00 2024/25 Fund Type

103
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

LEGISLATIVE
Joel R. Bryant
Term Expires
November 2024
Susannah Meyer
Term Expires
November 2024
Jovita Mendoza
Term Expires
November 2024
Tony Oerlemans
Term Expires
November 2026
Pa’tanisha Pierson
Term Expires
November 2026

104
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

LEGISLATIVE
The Legislative budget section is comprised of the members of the City Council, as well as the City’s Commissions and Committees. The City Council is composed of a directly elected Mayor and four City Council members elected by district.

Implementation of City Council policy is accomplished through the adoption of ordinances, policies, and resolutions; the approval of contracts and agreements; and adoption of the City budget. The City Council is also responsible for appointing members to all City Commissions and Committees.

Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-1201 City Council $ 394,988 $ 453,825 $ 409,784 $ 447,624 $ 461,108 100-1414 Brentwood Neighborhood Committee 0 2,122 1,381 0 0 100-2202 Planning Commission 17,096 30,370 29,804 35,500 35,970 100-5106 Park and Recreation Commission 6,399 9,811 7,488 10,385 10,497 100-5107 Youth Commission 2,989 4,947 4,817 5,080 5,247 100-5109 Arts Commission 534 1,029 1,029 1,063 1,099
Total $ 422,006 $ 502,104 $ 454,303 $ 499,652 $ 513,921 Annual Percentage Change 7.65% -0.49% 2.86%

DEPARTMENT BUDGET SUMMARY
Division #

105
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

LEGISLATIVE
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 208,507 $ 264,605 $ 223,769 $ 267,190 $ 277,452 Supplies and Services 70,391 88,493 81,528 90,935 93,751 Internal Services 143,108 149,006 149,006 141,527 142,718 Total $ 422,006 $ 502,104 $ 454,303 $ 499,652 $ 513,921 Total Employee Allocation 0.50 0.50 0.50 0.50 0.50
Expenditures by Category
Personnel No employee allocation changes.

Supplies and
Services
There was not a significant increase or decrease in supplies and services Internal Services Decreases in Internal Services are primarily due to lower OPEB expenditures which are partially offset by increases in insurance costs.

Expenditure Analysis

106
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
9 Total Positions (1)
(1) Total positions may differ from department total allocation. (2) The Public Information Officer position is not projected to be filled in the two-year budget period. (2)

107
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
The City of Brentwood operates under the Council-Manager form of government. Under policy direction of the City Council, the City Manager serves as the Chief Administrative Officer of the City; assumes full responsibility for planning, administering, directing, overseeing and evaluating the activities and operations of all City departments. The City Manager Department directly performs the following functions:

Economic Development, Legislative Affairs, Public Information and City Clerk.

The City Manager carries out City Council direction for and oversees all City Departments: Community Development; Finance and Information Systems; Human Resources; Parks and Recreation; Police; Engineering; and Public Works.

Economic Development provides the following services: City Marketing Programs/Partnerships, Public Information Office, Business Attraction/Retention Programs, Economic Development Grant Program, Agricultural Preservation and Tourism Program, and Real Estate Acquisitions and Dispositions.

The City Clerk is responsible for preparation of agendas and minutes; ensuring compliance with legal noticing requirements; serving as the Elections Official for the conduct of general municipal and special elections; responding to requests for public records; maintenance of the City's Municipal Code and management of the Citywide records management program. The City Clerk is also the filing officer for Political Reform Act documents.

Mission Statement
Provide exceptional service to the citizens of Brentwood while implementing Brentwood’s vision and values as determined by the City Council and the community.

108
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-1202 City Manager $ 890,867 $ 1,021,862 $ 981,176 $ 1,051,745 $ 1,087,229 100-1204 Economic Development 1,152,671 1,558,602 1,262,494 1,440,502 1,323,720 100-1205 City Clerk 714,446 617,065 612,203 837,767 700,179 Total $ 2,757,984 $ 3,197,529 $ 2,855,873 $ 3,330,014 $ 3,111,128 Annual Percentage Change 3.55% 4.14% -6.57%

DEPARTMENT BUDGET SUMMARY
Division #
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 1,711,075 $ 1,902,571 $ 1,853,623 $ 1,970,553 $ 2,046,961 Supplies and Services 681,599 916,638 623,930 1,011,803 706,793 Internal Services 363,833 378,320 378,320 347,658 357,374 Capital Outlay and Transfers Out 1,477 0 0 0 0
Total $ 2,757,984 $ 3,197,529 $ 2,855,873 $ 3,330,014 $ 3,111,128 Total Employee Allocation 8.50 8.50 8.50 8.50 8.50
Expenditures by Category

109
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
Personnel No employee allocation changes.

Supplies and
Services
The increase in the Supplies and Services budget for FY 2024/25 reflects costs associated with the General Municipal Election to be held in November 2024. The decrease in FY 2025/26 is due to the carryover Strategic Initiative costs and election costs non-recurring.

Internal Services Decreases in Internal Services are primarily due to lower OPEB expenditures and allocations to facilities replacement which are partially offset by increases in insurance costs.

Expenditure Analysis

110
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
5, 6 Noticed and Published City Council Agendas Workload # 29 30 30 30 5, 6 Political Reform Act Filings (Form 700) Workload # 178 195 200 200 3 Sale of Successor Agency Real Properties Effectiveness # of Properties 1 0 3 5 (1)
3 Participation in Trade Shows to Promote and
Attract New Commercial Investment into the
City
Effectiveness # of Trade
Shows 6 8 10 10
3 Outreach Meetings, In-Person and Virtual, to
Attract New Commercial Investment into the
City
Workload # of
Meetings 55 100+ 70 70
3, 5 Small Business Spotlights and Highlights by
Better in Brentwood Workload
# of
business
highlights/
spotlights
28 36 36 36
3, 5 Promotion of Small Businesses on the
www.BetterinBrentwood.com platform Effectiveness
# of Unique
Users to
Website
37,000 42,000 45,000 50,000
(1) Revenue from the projected sale of the properties is not included in the Operating Budget to be conservative.

111
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY MANAGER
FY 2022/23 - FY 2023/24 Strategic Initiatives
FY 2022/23 FY 2023/24
Goal Strategic Initiatives Target Actual Target Actual

3.1.a. Encourage private re-investment through the sale of Successor Agency and City owned real properties
50% 25% 100% 35%
The City continues to work through the state mandated Surplus Land Act which has extended the timeframe of disposing of Successor Agency and City owner real properties.

This project will carry over into FY 2024/25 – 2025/26.

3.1.b. Incentivize higher tier, unique businesses and development to the Brentwood Boulevard and Downtown areas
50% 50% 100% 75%
The City worked with landowners to see the successful development of Sciortino Ranch, bringing much needed services to an underserved neighborhood and attracted a new high end restaurant to downtown.

3.2.a. Enhance retail recruitment awareness and prioritize activities that display the City’s efforts inducing new retail-commercial development
75% 75% 100% 100%
Staff completed a retail market analysis of the City and is using data from the study to attract new and expanding retailers to the community.

112
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY ATTORNEY
6 Total Positions

113
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY ATTORNEY
The City Attorney serves as the City government’s legal counsel, under the direction of the City Council. Among other duties, the City Attorney’s Office provides legal advice to the Mayor, City Council, City commissions, and employees; reviews and prepares ordinances, resolutions, contracts, leases, and other legal documents; provides legal assistance concerning City operations and procedures; represents the City in litigation, administrative hearings, and other legal matters; oversees work done by outside counsel on behalf of the City; and prosecutes violations of the Municipal Code.

Specific areas of the law that are addressed by the attorneys in the City Attorney’s Office include: administrative, contractual, City code enforcement, constitutional, employment, environmental, and land use/real estate.

Mission Statement
To provide ethical and effective legal counsel to City officials and employees for the benefit of the people of Brentwood.

114
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY ATTORNEY
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-1203 City Attorney $ 1,865,822 $ 2,259,607 $ 1,860,133 $ 2,483,917 $ 2,514,543 Total $ 1,865,822 $ 2,259,607 $ 1,860,133 $ 2,483,917 $ 2,514,543 Annual Percentage Change -0.30% 9.93% 1.23%

DEPARTMENT BUDGET SUMMARY
Division #
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 1,153,973 $ 1,408,439 $ 1,053,013 $ 1,496,319 $ 1,561,510 Supplies and Services 435,627 584,885 540,837 734,738 692,686 Internal Services 257,152 266,283 266,283 252,860 260,347 Capital Outlay and Transfers Out 19,070 0 0 0 0
Total $ 1,865,822 $ 2,259,607 $ 1,860,133 $ 2,483,917 $ 2,514,543 Total Employee Allocation 6.00 6.00 6.00 6.00 6.00
Expenditures by Category

115
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY ATTORNEY
Personnel Due to vacancies, $40,000 of salary budget was transferred to contractual services in FY 2023/24. After factoring in the budget transfer, the personnel services budget was up just over 3% in FY 2024/25 and there were no employee allocation changes.

Supplies and
Services
The increase in supplies and services in FY 2024/25 is due mainly to a change in the method of budgeting for General Fund legal expenditures. Legal services budgets previously accounted for in various General Fund divisions were consolidated into the City Attorney’s office budget for efficiency and effectiveness of managing the expenditures.

Internal Services Decreases in Internal Services are primarily due to lower allocations for facilities replacement and decreases in OPEB expenditures partially offset by increases in insurance costs.

Expenditure Analysis

116
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

CITY ATTORNEY
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
6 Contracts Reviewed/Drafted Workload # 389 388 400 415 6 City Council/Planning Commission Staff Reports
Reviewed/Drafted Workload # 373 500 450 473
6 City Council/Planning Commission
Ordinances/Resolutions Reviewed Workload # 225 148 225 230

117
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
26 Total Positions

118
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
The Community Development Department is responsible for implementing City Council policies related to planning, zoning, community enrichment, building and housing. The department also oversees the building and development of residential and non‐residential projects, ensuring that these projects protect and meet the requirements of public health and safety.

The four components of Community Development provide the following services:
• Development Services – One-Stop Permit Center; Building Permits; and Plan Review • Housing – Affordable Housing Programs; First-Time Homebuyer Programs • Neighborhood Services – Building Inspections; and Community Enrichment • Planning – General Plan; Specific Plans; Zoning Ordinance; Environmental Review; Design Review and Land Development Mission Statement
Develop Brentwood as a high quality, diverse and balanced community while protecting natural and agricultural resources.

119
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-2101 Building $ 2,401,186 $ 2,969,048 $ 2,409,299 $ 2,848,101 $ 2,919,022 100-2102 Community Enrichment 983,280 1,079,135 1,048,896 1,381,125 1,411,022 100-2201 Planning 1,694,630 2,058,213 1,781,972 2,334,789 2,218,356 Enterprise Funds
510-5010 Housing Administration 610,247 833,299 665,889 867,925 869,132 Total $ 5,689,343 $ 6,939,695 $ 5,906,056 $ 7,431,940 $ 7,417,532 Annual Percentage Change 3.81% 7.09% -0.19%

DEPARTMENT BUDGET SUMMARY
Division #
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 4,102,897 $ 4,597,428 $ 4,199,759 $ 5,110,220 $ 5,376,475 Supplies and Services 511,760 1,221,342 593,191 1,090,086 926,074 Internal Services 1,053,181 1,110,187 1,110,187 1,104,345 1,105,842 Capital Outlay and Transfers Out 21,505 10,738 2,919 127,289 9,141 Total $ 5,689,343 $ 6,939,695 $ 5,906,056 $ 7,431,940 $ 7,417,532 Total Employee Allocation 25.00 25.00 25.00 26.00 26.00 Expenditures by Category

120
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
Personnel The increase in the personnel budget is due to the addition of one Code Enforcement Officer position in the Community Enrichment division, combined with an increase in health benefit costs from changes in the mix of enrollment benefit levels and rate increases.

Supplies and
Services
The FY 2024/25 decrease in supplies and services is primarily due to one-time contractual services costs for a fee study budgeted in FY 2023/24. The FY 2025/26 decrease is due to planned completion of one-time contractual services during FY 2024/25.

Internal Services Internal Services decreases, due to lower allocations for facilities replacement and information systems and decreases in OPEB expenditures, are being offset by increases in insurance costs.

Capital Outlay
and Transfers Out
FY 2024/25 budget includes purchase of a vehicle for the new Code Enforcement Officer position and Permit Center security upgrades.

Expenditure Analysis

121
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
4, 5 Affordable Housing Eligibility Wait List Workload # 166 150 300 280 4, 5 Preferred Lenders List Workload # 2 4 6 6
4, 5 Review and Respond to Brentwood 24/7
Connect Application Requests Within 48 Hours
(Business Days)
Efficiency % 95% 95% 97% 97%
4, 5 Respond to all Inspection Request Within 24
Hours (Business Days) Efficiency % 95% 98% 98% 98%
4, 5 Plan Reviews Completed/Facilitated Workload # 3,321 2,000 2,400 2,800 4, 5 Permit Turn-Around (Application to Approval)
(Business Days) Efficiency # of Days 9 13 12 11
4, 5 Publish Planning Commission Agenda Packet on
Time Efficiency Yes/No Yes Yes Yes Yes
4, 5 Discretionary Applications Processed Workload # 28 34 36 38

122
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

COMMUNITY DEVELOPMENT
FY 2022/23 – FY 2023/24 Strategic Initiatives
FY 2022/23 FY 2023/24
Goal Strategic Initiatives Target Actual Target Actual

4.1. Implement Zoning Ordinance update to maintain compliance with State law, including developing objective design standards (SB 330 compliance) 75% 75% 100% 95%
In progress. The project will be substantially complete mid-calendar 2024, with a few items related to the Housing Element completed in the following fiscal year.

4.2.a. Develop implementation plan for General Plan Conservation and Open Space policies to minimize impacts on the environment
75% 50% 100% 50%
In progress.

4.3.a. Implement General Plan implementation status updates every two years 25% 25% 100% 25% The project is underway and will be complete by the end of 2024.

4.4.a. Update the City’s Housing Element including: an evaluation of the 2015 Housing Element; assessment of housing needs, resources, constraints; approval of an updated Regional Housing Needs Allocation; and adoption of housing goals, policies, and actions 50% 50% 100% 90%
The Housing Element was completed early 2024, and several implementation actions will be completed in 2025.

123
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
19 Total Positions (1)
(1) Total positions may differ from department total allocation.

124
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
The Engineering Department is responsible for the implementation of the Capital Improvement Program, Private Land Development Review, Management of the City’s Traffic and Transportation Network, and the City’s Geographic Information System (GIS).

The Engineering Department provides the following services: Infrastructure Master Planning; Design and Construction Project Management and Administration; Engineering Designs and Estimating; Construction Inspection; Private Land Development Review; Grading and Encroachment Permits; Stormwater Permit Coordination and Inspections; Geographic Information System Mapping (GIS); Traffic Alerts; Transportation Permits; Traffic Control Plan Review; and Traffic Control Measures (i.e. Traffic Signals and Traffic Calming).

Mission Statement
To foster sustainable and resilient communities through innovative and responsible engineering solutions. Our mission is to provide exemplary service in planning, designing, and managing the City's infrastructure with a focus on safety, efficiency, and environmental stewardship. We are driven by a passion for community development and a commitment to delivering projects that stand the test of time, contributing to the enduring vitality and prosperity of the City of Brentwood.

125
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-2301 Engineering Division 1,810,335 2,010,287 1,874,278 2,102,679 2,188,716 100-2303 Transportation 548,648 595,080 587,032 621,931 646,564 100-3601 CIP Administration 1,234,532 1,526,749 1,319,109 1,564,446 1,641,324 Total $ 3,593,515 $ 4,132,116 $ 3,780,419 $ 4,289,056 $ 4,476,604 Annual Percentage Change 5.20% 3.80% 4.37%
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 2,556,824 $ 2,870,738 $ 2,611,752 $ 3,002,961 $ 3,149,834 Supplies and Services 467,736 671,141 579,605 669,926 695,159 Internal Services 567,094 587,262 587,262 613,194 628,636 Capital Outlay and Transfers Out 1,861 2,975 1,800 2,975 2,975 Total $ 3,593,515 $ 4,132,116 $ 3,780,419 $ 4,289,056 $ 4,476,604 Total Employee Allocation 14.22 14.22 14.22 14.22 14.22 Expenditures by Category

DEPARTMENT BUDGET SUMMARY
Division #

126
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
Personnel No employee allocation changes.

Supplies and
Services
There was not a significant increase or decrease in supplies and services.

Internal Services Increases in Internal Services are primarily due to increases in information systems insurance costs partially offset by lower allocations for facilities replacement and decreases in OPEB expenditures.

Expenditure Analysis

127
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
1, 5 Number of CIP projects completed Workload # 6 5 7 6 1, 5 Transportation Permits Issued Workload # 133 199 150 150 1, 4, 5 Percent of land development projects reviewed
on time Effectiveness % 95% 95% 90% 90%
1, 4, 5 Percent of minor encroachment permits
reviewed by target date Effectiveness % 95% 95% 90% 90% 1, 4, 5 Number of encroachment permits reviewed,
issued and inspected Workload # 398 350 350 350
1, 4, 5 Percent of inspection requests responded within one business day Effectiveness % 97% 90% 90% 90%

128
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

ENGINEERING
FY 2022/23 – FY 2023/24 Strategic Initiatives
FY 2022/23 FY 2023/24
Goal Strategic Initiatives Target Actual Target Actual

1.1.a. Construct Innovation Center infrastructure 50% 10% 100% 30% Innovation Center Infrastructure is reliant on pending Right-of-Way negotiations. The City is currently in negotiations with property owners and anticipates construction of utilities from Empire Avenue across State Route 4 to begin in fall 2024. The Sand Creek Road Extension CIP project is currently underway and scheduled for completion in September 2024.

1.1.b. Pursue additional funding to preserve our streets 50% 50% 100% 100% Received Measure J funds of approximately $1.2 million, per fiscal year, from Contra Costa Transportation Authority.

Transportation Development Act funding is applied for each fiscal year. A new sidewalk was added along Fairview Avenue in FY 2022/23 and in FY 2023/24 additional funding was approved to install sidewalk along Spruce Street adjacent to Liberty High School.

Staff continues to submit a list of qualified projects to the California Transportation Commission every year to maintain the City’s RMRA funding.

1.1.c. Pursue grant funding to improve the Brentwood Boulevard corridor (e.g. underground existing utility lines, widen portion of Brentwood Boulevard, etc.) 100% 100% 100% 100%
Staff continues to pursue grant funding.

1.1.d. Explore State Route 4 sound study mitigation measures, including raising the lower portion of the existing sound wall adjacent to Livorno Street south of Carrara Street 50% 50% 100% 100%
The sound wall project was completed in FY 2023/24.

1.1.e. Improve safety in Parking Garage 50% 10% 100% 75% Design is 95% complete with construction to begin in Summer 2024.

129
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
34 Total Positions (1)
(1) Total positions may differ from department total allocation.

130
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
The Finance and Information Systems Department oversees the financial aspects of the City, including budgeting, accounting, cash management, utility billing, purchasing, accounts payable, payroll, as well as the information technology needs of the City. The department consists of three divisions, Business Services, Financial Services and Information Systems.

The divisions provide the following services:
• Business Services – Assessment District; Asset Management; Bond Administration; Budget in Brief; Capital Improvement Program; Cash Management; Combined Community Facilities District Report; Annual Comprehensive Financial Report (ACFR); Debt Service; Development Impact Fee Report; Financial Snapshot, Financial Dashboard; General Fund Fiscal Model; Grant Accounting; Independent Financial Audit; Investments; and Operating Budget
• Financial Services – Accounts Payable; Accounts Receivable; Business Licenses; Cash Receipts; Cost Allocation Plan (CAP); Payroll; Purchasing; Utility Billing and Council/Administrative Policies • Information Systems – Client‐Server Management; Desktop Support; Network Management; Systems and Programming; Voice Over Internet Protocol (VOIP) and Phone Systems Support; Web Administration; Cellular Management; 911 Systems; System Security Management and Wi-Fi
Mission Statement
Provides timely and accurate fiscal information and a full range of technology-based resources and services in support of City officials, departments and the community.

131
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-1303 Business Services $ 1,305,772 $ 1,411,870 $ 1,350,210 $ 1,443,081 $ 1,504,566 100-1304 Financial Services 1,352,240 1,573,336 1,548,599 1,611,587 1,674,258 Enterprise Funds
540-5302 Solid Waste Utility Billing 990,575 1,449,895 1,424,239 1,209,819 1,222,279 560-5502 Water Utility Billing 717,653 1,216,110 1,155,027 1,269,850 1,281,994 590-5802 Wastewater Utility Billing 793,962 1,166,560 1,110,464 1,216,252 1,231,320 Internal Service Fund
701-7101 Information Systems 3,377,729 4,718,679 4,378,382 4,549,944 4,682,074 Total $ 8,537,931 $ 11,536,450 $ 10,966,921 $ 11,300,533 $ 11,596,491 Annual Percentage Change 28.45% -2.04% 2.62%

DEPARTMENT BUDGET SUMMARY
Division #
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 5,167,834 $ 6,142,729 $ 5,767,016 $ 6,487,625 $ 6,783,779 Supplies and Services 1,946,336 3,788,576 3,595,010 3,315,654 3,525,105 Internal Services 1,419,948 1,599,895 1,599,895 1,471,054 1,282,199 Capital Outlay and Transfers Out 3,813 5,250 5,000 26,200 5,408 Total $ 8,537,931 $ 11,536,450 $ 10,966,921 $ 11,300,533 $ 11,596,491 Total Employee Allocation 35.00 35.00 35.00 35.00 35.00 Expenditures by Category

133
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
Personnel No allocation changes. Supplies and Services
The FY 2024/25 decrease in Supplies and Services is primarily due to a one-time utility receivable write-off included in the budget in FY 2023/24. This decrease was partially offset by a rise in bank processing charges. FY 2025/26 increases are a result of higher expected costs for contractual services for the Information Systems division for software licensing and cloud-based services.

Internal Services Decreases in Internal Services are primarily due to lower allocations for facilities replacement and decreases in OPEB expenditures partially offset by increases in insurance costs. Additional decreases in FY 2025/26 are primarily due to pension paydown funding budgeted in FY 2024/25 by the Enterprise and Internal Service funds.

Capital Outlay and Transfers Out
FY 2024/25 budget includes one-time costs for security upgrades in the Utility Billing lobby.

Expenditure Analysis

133
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
6 Clean Audit Opinion for Fiscal Year Financial
Statements
Effectiveness Yes/No Yes Yes Yes Yes
5, 6 Go Green Utility Billing Online Applications Efficiency # 1,854 1,551 1,542 1,557 5, 6 Go Green Utility Billing Average Monthly
Statements Efficiency # 7,250 7,735 7,909 7,988
6 Business Tax Certificates Issued Workload # 6,336 6,451 6,483 6,515 5, 6 Website Visits Effectiveness # 1,493,761 794,371 849,977 909,475

134
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

FINANCE AND INFORMATION SYSTEMS
FY 2022/23 – FY 2023/24 Strategic Initiatives
FY 2022/23 FY 2023/24
Goal Strategic Initiatives Target Actual Target Actual

6.2. Information Technology Master Plan implementation:

6.2.a. Enhanced Cybersecurity Plan 50% 50% 100% 70%
The Information Systems division is continually assessing the City’s cybersecurity posture and implementing strategies, tools and mitigation measures to better protect the City’s infrastructure and data. The Information Systems division has engaged with a cybersecurity consultant to perform a formal assessment of the City’s cybersecurity level as measured against the standards and framework set by the National Institute of Standards and Technology (NIST). The results of the assessment will then be used to develop a list of additional strategies and mitigation measures to improve the City’s overall cybersecurity maturity and ensure alignment with industry best practices.

6.2.b. Business Continuity Plan 50% 50% 100% 60%
The Information Systems division is working with various technology consultants to assess the current technology infrastructure and develop a list of strategies and mitigation measures to help improve the overall resiliency of the City’s technology infrastructure. The assessment will also work in conjunction with the Enhanced Cybersecurity Plan to review and assess the City’s Disaster Recovery plans and make recommendations for improvements including strategies for regular review and testing to help ensure that the plans are effective and up-to-date.

135
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
6 Total Positions

136
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
The Human Resources Department strives to create a diverse and inclusive workforce of innovative and forward-thinking employees who are customer-focused and committed to excellence. Dedicated to fostering a continuous learning environment for employees enriched with career development opportunities, Human Resources serves as a strategic business partner with City departments. The Department provides citywide support in employer-employee and labor relations, recruitment and selection, classification and compensation, risk management, benefits administration, and workforce training and development.

Mission Statement
To deliver exceptional service and support to the organization.

137
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-1206 Human Resources $ 1,464,980 $ 1,988,076 $ 1,851,227 $ 2,019,707 $ 2,128,643 Total $ 1,464,980 $ 1,988,076 $ 1,851,227 $ 2,019,707 $ 2,128,643 Annual Percentage Change 26.37% 1.59% 5.39%

DEPARTMENT BUDGET SUMMARY
Division #
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 893,968 $ 1,112,215 $ 1,003,282 $ 1,288,614 $ 1,370,305 Supplies and Services 347,091 648,739 620,823 488,921 507,683 Internal Services 218,708 227,122 227,122 242,172 250,655 Capital Outlay and Transfers Out 5,213 0 0 0 0
Total $ 1,464,980 $ 1,988,076 $ 1,851,227 $ 2,019,707 $ 2,128,643 Total Employee Allocation 5.25 5.25 5.25 6.00 6.00
Expenditures by Category

138
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
Personnel Increase in Personnel Services costs was due to an increase in an employee allocation to the division.

Supplies and
Services
The decrease in Supplies and Services is due mainly to the elimination of completed Strategic Initiative costs, offset by an increase in advertising costs for recruitment.

Internal Services Increases in Internal Services are primarily due to new personnel and increases in insurance costs which are partially offset by decreases in OPEB expenditures and allocations to facilities replacement.

Expenditure Analysis

139
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
FY 2024/25 - FY 2025/26 Performance Measures
Strategic
Plan
Focus Area Measurement
Type of
Indicator
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Estimate
FY 2024/25
Projection
FY 2025/26
Projection
6 Workforce Completed Citywide Required
Training Effectiveness % 67%-70% 94% 97% 99%
6 Average Number of Days From Recruitment to
Referral for Career Positions Efficiency # 50 46 40 35
6 Employees On-boarded for Career Positions Workload # 42 51 50 50 6 Employee Promotions Workload # 26 30 30 30
6 Employee Participation in City engagement
programs (Diversity, Equity and Inclusion) Effectiveness % 0% 34% 50% 65% 6 Employee Participation in City engagement
programs (Wellness) Effectiveness % 65% 70% 75% 80%
6 Employee Status Changes (Personnel Actions) Workload # 191 314 329 345

140
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

HUMAN RESOURCES
FY 2022/23 – FY 2023/24 Strategic Initiatives
FY 2022/23 FY 2023/24
Goal Strategic Initiatives Target Actual Target Actual

6.1. Classification and Compensation Study 50% 30% 100% 100% The goal is to develop an equitable, reliable, and competitive classification and compensation system that supports the City’s mission; promotes equity by accurately aligning classifications, assignments, and pay; fosters the attraction and retention of qualified individuals; and provides opportunities for employee growth and development. As of May 2024, the classification and compensation phases of the study are at 90% completion.

141
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

PARKS AND RECREATION
29 Total Positions (1)
(1) Total positions may differ from department total allocation.

142
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

PARKS AND RECREATION
The Parks and Recreation Department is dedicated to the wellbeing and quality of life in Brentwood. The department provides the best in programs, parks and services at a great value to residents. Brentwood has 267 developed acres of parkland, 100 award winning parks and facilities, approximately 20 miles of beautiful trails and 63 miles of bike lanes. There are over 150 recreational activities and events offered for people of all ages and interests.

The three components of Parks and Recreation provide the following services:
• Recreation – Recreation Administration; Youth Commission; Arts Commission; Family Aquatic Center; Community Center; Senior Center; Special Events; Concerts in the Park Series; Special Classes; Youth and Adult Sports Programs; Special Event Permits and Athletic Field and Picnic Area Rentals.
• Parks/Maintenance – Park and Recreation Commission; Landscape; Park Planning and Development; Lighting and Landscape Assessment District Management; Irrigation Control; Play Structures; Open Space Weed Abatement; Tree Inventory Program; Trail Management and Sport Field/Court Maintenance.
• Administration – Parks and Recreation Administration.

Mission Statement
Creating joyful community experiences through people, parks and programs.

143
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

PARKS AND RECREATION
Expenditures by Division 2022/23 2023/24 2023/24 2024/25 2025/26 Division Name Actual Budget Projected Budget Budget
General Fund
100-5101 Parks and Recreation Administration $ 2,503,070 $ 2,899,635 $ 2,611,646 $ 2,879,505 $ 3,007,315 100-5102 City Pool 1,182,399 1,362,609 1,362,609 1,450,883 1,499,578 100-5108 Parks Planning 189,452 331,970 281,042 323,820 326,550 100-5110 Community Center 814,151 855,740 855,740 931,064 964,950 100-5111 Senior Programs 326,116 394,838 309,375 424,857 448,254 100-5112 Brentwood Senior Activity Center 504,272 541,423 541,423 611,423 643,014 100-62xx Sports Programs 319,544 457,472 384,066 384,295 400,259 100-63xx Recreation Programs 630,133 889,746 771,106 838,586 829,939 100-1602 Landscape Operations 1,378,223 1,531,815 1,468,450 1,642,109 1,699,687 Special Revenue Fund
230-2501 Citywide Park Assessment District 3,400,802 2,992,939 2,815,083 3,179,695 3,331,945 Total $ 11,248,162 $ 12,258,187 $ 11,400,540 $ 12,666,237 $ 13,151,491 Annual Percentage Change 1.35% 3.33% 3.83%

DEPARTMENT BUDGET SUMMARY
Division #

144
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

PARKS AND RECREATION
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Personnel Services $ 5,541,921 $ 6,283,071 $ 5,717,451 $ 6,444,288 $ 6,804,353 Supplies and Services 2,637,530 3,447,666 3,219,410 3,574,371 3,695,857 Internal Services 3,059,915 2,350,101 2,350,101 2,579,578 2,651,281 Capital Outlay and Transfers Out 8,796 177,349 113,578 68,000 0 Total $ 11,248,162 $ 12,258,187 $ 11,400,540 $ 12,666,237 $ 13,151,491 Total Employee Allocation 28.60 28.60 28.60 28.60 28.60 Expenditures by Category

145
2024/25 – 2025/26 Operating Budget
Department and Performance Budgets

PARKS AND RECREATION
Personnel No employee allocation changes.

Supplies and
Services
The increase in the FY 2023/24 Supplies and Services budget is due to an escalation in utility costs for both the recreation and parks divisions and increases in purchased water costs.

Internal Services Increases in Internal Services are primarily due to increases in facilities replacement, facilities maintenance and insurance costs which are partially offset by decreases in OPEB expenditures.

Capital Outlay
and Transfers Out
FY 2023/24 projection includes costs for one new vehicle for use by the Parks Planner and Recreation services and a tree chipper. FY 2024/25 budget includes costs for an additional new vehicle for use by the Parks Planner and Recreation services and replacement of the City’s large holiday tree for use in City Park special events.

Expenditure Analysis