Brentwood City Council
June 25, 2024

Attachment 2B
Brentwood and Bay Area region are classified within the -2 to 4 range of the Palmer Drought Severity Index (PDSI), where a value of -6 represents “extreme drought.”10 Drought can lead to reductions in the quality and quantity of water, degradation of air quality, increase in agricultural vectors and disease, and decreases in crop yield.11 According to the California Department of Public Health, health consequences of drought may impact the following vulnerable/sensitive populations most: “the elderly, children, individuals of low socioeconomic status, rural communities, populations living in nursing homes, hospitalized patients, those who rely on electrical equipment to survive, farmers, and agricultural workers.”12

1.3. Flooding
The accumulation of excess water due to increase precipitation or natural water flows has the potential to result in the flooding of nearby floodplains or low-lying valleys. Floodplains, or areas adjacent to water bodies, are especially susceptible to flooding hazards. The severity of flooding within a floodplain is directly related to the capacity and volume of the neighboring body of water or waterway. Flooding within larger, flatter floodplains occurs more predictably for longer durations.

Although CalAdapt does not provide emissions-based flooding projections, the County has produced a Local Hazard Mitigation Plan (LHMP), which outlines the existing flooding risks present in the City.13 According to the County’s LHMP, historically, areas within the City that are vulnerable to flooding include central areas of the City, including areas near tributaries of the Marsh Creek Watershed, Dry Creek, Sand Creek, and Deer Creek. Major roads that pass through the 100-year floodplain and thus are exposed to flooding include Brentwood Boulevard and State Highway 4. However, in the region, some roads are built above the flood level, and others function as levees to prevent flooding.14 Since precipitation is expected to remain fairly consistent, increased flood hazards due to annual average precipitation is unlikely.

However, the increase in the frequency and intensity of severe rainstorms in the future may result in increased risk of localized flooding events.

1.4. Severe Storms and Extreme Weather
California’s Fourth Climate Change Assessment explains that, despite model predictions of only small changes in average precipitation in the Bay Area region, overall, precipitation in the Bay Area will continue to exhibit high year-to-year variability with very wet and very dry years. Please refer to the discussion of precipitation changes and droughts in Section 1.2 above. This section also addresses land and mudslides that may result from severe rain events.

10 WestWideDroughtTracker, California – PDSI. Available at https://wrcc.dri.edu/wwdt/index.php?region=ca.

Accessed January 31, 2024.
11 California Department of Public Health (CDPH), California Building Resilience Against Climate Effects (CalBRACE) Project. Available at
https://www.cdph.ca.gov/Programs/OHE/CDPH%20Document%20Library/CHVIs/Drought_802_Narrative_11-8- 2016.pdf. Accessed January 31, 2024.
12 CDPH, CalBRACE Project, page 1.
13 Contra Costa County Local Hazard Mitigation Plan, 2018. Available at https://www.contracosta.ca.gov/DocumentCenter/View/48893/Contra-Costa-County-Draft-Local-HazardMitigation-Plan-Volume-1-January-31-2018?bidId=. Accessed January 31, 2024. 14 Contra Costa County Local Hazard Mitigation Plan, 2018, page 9-34.

Attachment 2B

1.4.1. Severe Rainstorms
In the Bay Area, extreme precipitation often arrives via so called “atmospheric rivers,” which the National Oceanic and Atmospheric Administration (NOAA) defines as “a flowing column of condensed water vapor in the atmosphere responsible for producing significant levels of rain and snow, especially in the Western United States.”15 Further, the NOAA recognizes that atmospheric rivers “that contain the largest amounts of water vapor and the strongest winds can create extreme rainfall and floods.”16 Data presented in California’s Fourth Climate Change Assessment suggests that little change is projected for summer and fall precipitation, but larger changes may occur in winter and spring. In general, precipitation in northern regions of California is projected to increase. The data also suggests that the frequency of atmospheric river events may increase in the future. Please refer to Section 1.3 for discussion of the change in potential flooding impacts that could affect the City.

1.4.2. Extreme Weather
In addition to extreme rain events, other severe weather phenomena, including strong winds, hail, and lightning, may occur with increased frequency. Severe weather can pose direct hazards resulting in injury or death, damage to buildings, structures, infrastructure, and trees, fires, and diminished or blocked transportation access. Extreme weather can lead to secondary effects, such as wildfires, and can lead to increased fire spread and intensity. According to the County’s LHMP, changes in climate pattern “may impact the distribution and perseverance of insect outbreaks that create dead trees (increase fuel). When climate alters fuel loads and fuel moisture, forest susceptibility to wildfires changes. Climate change also may increase winds that spread fires.”17

1.4.3. Diablo Winds
During the spring and fall, hot and dry winds, known as the Diablo winds, from the northeast occur in the Bay Area. Diablo winds occur below canyons in the East Bay Hills (Diablo range) and in extreme cases can exceed 60 miles per hour (mph). The winds blow into the inner Bay Area from the direction of Mount Diablo and are created by a combination of strong inland high pressure at the surface, strongly sinking air aloft, and lower pressure off the California coast. Brentwood and Contra Costa County is subject to high winds from thunderstorms and other severe weather events. Contra Costa County is located in Federal Emergency Management Agency (FEMA)’s Wind Zone I, where wind speeds can reach up to 130 mph.

California’s Fourth Climate Change Assessment recognizes the uncertainty in predicted changes to the patterns of winds due to global climate change. Hot and dry conditions, combined with offshore winds (Diablo winds) in autumn create high risk conditions that spread fires.

The Bay Area electrical grid is vulnerable to power outages during wind and wildfire events. Under scenarios of climate change, extreme storm events with stronger winds may become more frequent. The electrical grid may face more frequent and severe threats in the coming decades.18 To prevent wildfires, PG&E may need to turn off power during high winds. This is called a Public Safety Power Shutoff (PSPS).

A future PSPS is more likely to occur where it has happened before. This may be in or near high fire-risk areas. To learn more, visit the PSPS webpage.

15 National Oceanic and Atmospheric Administration (NOAA), What are atmospheric rivers?. Available at https://www.noaa.gov/stories/what-are-atmospheric-rivers. Accessed February 1, 2024. 16 NOAA, What are atmospheric rivers?
17 Contra Costa Local Hazard Mitigation Plan, page 14-14. 18 California’s Fourth Climate Change Assessment, San Francisco Bay Area Region, page 46.

Attachment 2B
Figure 4: PG&E Public Safety Power Shutoff Map
Source: PG&E

1.4.4. Landslides
Weather-induced landslides occur when a hillside becomes unstable, caused by severe or persistent rain events, causing soil and rocks to slide downslope. In some cases, the hillsides can become so saturated that slope failures result in a mudslide, a mixture of soil and water moving downslope. Unstable hillsides, such as those denuded of vegetation by wildfires or drought, are at greater risk of land- and mudslides.

The climate change-induced increase in rainfall, especially severe rain events, may result in an increase in landslides and mudslides.

As discussed in the LHMP, “climate change may impact storm patterns, increasing the probability of more frequent, intense storms with varying duration. Increase in global temperature is likely to affect the

Attachment 2B
snowpack and its ability to hold and store water. Warming temperatures also could increase the occurrence and duration of droughts, which would increase the probability of wildfire, reducing the vegetation that helps to support steep slopes. All of these factors would increase the probability for landslide occurrences.”19 The LHMP ranks landslides with a high hazard risk ranking for Contra Costa County; however, most of Brentwood is rated as low to moderate landslide susceptibility with a few pockets of high to very high/existing susceptibility, as shown in Figure 5. The majority of landslide zones are located in areas of higher topography, such as Marsh Creek State Park. Given the relatively level slopes throughout the majority of the City, the landslide potential is low. The landslide potential increases in hilly terrain towards the west and south. The LHMP details historical landslide events in the City, including the event in 2017 in which a slow moving mudslide closed the 3100 block of Morgan Territory Road, causing Contra Costa Water District’s waterline to break.20
Figure 5: Landslide Zones
Source: Contra Costa County, Local Hazard Mitigation Plan.

19 Contra Costa Local Hazard Mitigation Plan, page 14-12. 20 Ibid.

Attachment 2B

1.5. Temperature Changes
A rise in temperature has been observed in many California communities, including those in Contra Costa County. According to the long-term historical data (1950 to 2005) presented in the LHMP, trends in annual average, maximum, and minimum temperatures show an increase of 0.7-degree Fahrenheit when comparing 1950 to 1990 and 1990 to 2005 records. Average temperatures are expected to continue to rise. Overall, the Bay Area average annual temperature increased by 1.7°F from 1950 to 2005. Warming is expected to increase across the region in the coming decades, with the “average hottest day of year is projected to increase a minimum of 6.3°F near the coast and up to 10°F further inland under RCP8.5.

According to CalAdapt, the average maximum temperature observed for the City in the years 1950 to 2004 was 73.5°F.

In the projections based on the RCP8.5 scenario, Brentwood could experience an average maximum temperature of 77.0°F during the years 2022 to 2050. Through 2099, the projections for Brentwood include an average maximum temperature of 80.7°F. Figure 6 provides the estimated annual average maximum temperatures for Brentwood in an RCP8.5 scenario. According to the California Office of Environmental Health Hazard Assessment (OEHHA) and California Department of Public Health (CDPH), disruptions in weather patterns due to global climate change, such as warmer spring temperatures and overall increases in temperatures will “likely alter the distribution and occurrence of West Nile virus, Lyme disease, hantavirus, and other insect or animal transmitted diseases in California.”21 Figure 6: Annual Average Maximum Temperature
Source: Cal-Adapt, Annual Average Maximum Temperature.

1.5.1. Extreme Heat Days
According to California’s Fourth Climate Change Assessment, “while all parts of the Bay Area are projected to get warmer, inland areas will heat up more than coastal areas.” Extreme heat days are defined as a day in a year when the daily maximum temperature on any day in April through October exceeds the 98th historical percentile of maximum temperatures between 1961 and 1990. According to CalAdapt, the extreme heat temperature threshold is 101.3°F for Brentwood. The average number of extreme heat days observed for the City in the years 1950 to 2004 was 5 days per year. In the RCP8.5 high emissions scenario, Brentwood is projected to experience 15 extreme heat days per year between the years 2022 and 2050.

Figure 7 provides an estimated number of extreme heat days for the City in an RCP8.5 scenario. This is a 10-day increase from the annual extreme heat days observed during the years 1950 and 2004. Models

21 Vicki Kramer, PhD, Impact of Climate Change on Vector-Borne Diseases.

Attachment 2B
predict the number of extreme heat days in Brentwood may rise to 33 days per year in the second half of this century.

An increase in extreme heat days can correlate with an overall increase in temperature. Further, the heightened frequency of extreme heat days can pose a risk to sensitive communities such as persons with homelessness, senior citizens, and persons with disabilities. This would create a greater reliance on high energy demand electrical equipment, such as air conditioning. The increased use of equipment may impact the demands in the State’s power grid and could increase the risk of blackout events. Heat waves pose increased health risks due to urban heat islands and lack of local experience and cooling infrastructure (air conditioning) in bayside cities. These risks are compounded for low-income communities.22
Figure 7: Number of Extreme Heat Days by Year
Source: Cal-Adapt, Extreme Heat Days.

1.6. Wildfire
Across California, wildfire season typically runs between late summer to early spring, but the California Department of Forestry and Fire Protection (CalFire) reports that fires are starting earlier and ending later with each passing year. Intense dry seasons, warmer spring and summer temperatures, reduced snowpack, and earlier snowmelt make forests and vegetation more susceptible to wildfires. CalFire estimates the length of the fire season has increased by 75 days in 2020. Natural events, such as warm and dry Diablo winds, which typically occur in the spring and fall, further increase the growth of fires and threat to the region. According to the LHMP, the geography, weather patterns, and vegetation in the East Bay area provide ideal conditions for recurring wildfires.

The Contra Costa County Fire Protection District (CCCFPD) is a professional, full-service fire department and is among the 13 largest metropolitan fire agencies in the State of California. It provides fire prevention, suppression and emergency medical services (EMS) to 12 cities and the unincorporated areas of Contra Costa County with 34 fire stations.

Its telecommunications center provides dispatch services via contract to three (3) other fire agencies in the County. Staffing includes 420 uniformed personnel and 87 civilian personnel. All responding engines and trucks include a minimum of one (1) paramedic. Additional capabilities and resources include training, certification/personnel development, vehicle rescue, trench rescue, water rescue, hazardous material, high and low-angle rescue, building collapse, confined space rescue, fire/rescue boats, fire and arson

22 California’s Fourth Climate Change Assessment, San Francisco Bay Area Region Report, page 8.

Attachment 2B
investigations, code enforcement, building plan review, and public education, as well as Community Emergency Response Training (CERT).

As of 2023, CCCFPD experienced a 33% increase in call volume since 2021 and this trend is expected to continue (49,929 in 2021, 61,133 in 2022, and 66,406 in 2023). Approximately 30,561 (46%) were for rescue and EMS. According to the Association of Bay Area Governments (ABAG), which conducted longterm forecasts of population growth in the region, the population will grow by 9% each decade between 2010 and 2040, or approximately 716,120 new residents per decade. Between 2010 and 2040, the ABAG anticipates that the region will grow 25% to a population of over 9.5 million people.

In 2022, CCCFPD responded to 2,080 exterior fires throughout the county. Of those responses, 56 were located in the City of Brentwood (last 6 months of the year). In 2023, CCCFPD responded to 2,072 exterior fires throughout the county. Of those responses, 82 were located in the City of Brentwood (12 months).

According to the National Fire Protection Association (NFPA), during 2011-2015, fire departments throughout the United States responded to an estimated average of 306,000 brush, grass, and forest fires per year.23 State and County codes provide building and landscaping standards to mitigate wildfire hazard risk:
 California Building Code Chapter 7A (Materials and Construction Methods for Exterior Wildfire Exposure): provides standards intended to prevent the ignition of structures from wildland fire exposure, including building standards related to roof assemblies and materials, windows, siding, decks, and eave vents.
 Contra Costa County Ordinance 2016-23, Chapter 3 (General Precautions Against Fires):
provides for landscaping/vegetation management requirements to reduce and/or prevent the spread of wildland fires.
 Contra Costa County Ordinance 2019-37, Chapter 6 (Building Services and Systems): provides for use of spark arresters on chimneys when utilizing solid or liquid fuel in a fireplace or heating appliances.

According to the Global Institute of Sustainable Forestry at Yale University, taxpayers spent more than $1.6 billion to combat more than 88,400 fires nationwide.24 Many of these fires burned in wildland urban interface (WUI) areas and exceeded the fire suppression capabilities of those areas. According to CalFire’s Very High Fire Hazard Severity Zone (VHFHSZ) Map, there are no parcels within the City that are located in a VHFHSZ. However, areas to the west of Brentwood have Moderate, High, or Very High designations.

Areas such as Deer Valley, Black Diamond Mines Regional Park, and Mt Diablo are regions in proximity to the City that feature vegetation, slopes, and terrain that could lead to potential fire hazards for Brentwood residents. Even though the City does not have any VHFHSZs, the General Plan includes goals, policies, and actions related to fire hazards and protection. An example of a policy is the Fuel Modification Ordinance in which the City would work with the Fire Protection District to prepare a Fuel Modification Ordinance

23 National Fire Protection Assocation (NFPA), Brush, Grass, and Forest Fires, September 2018. Available at https://www.nfpa.org//-/media/Files/News-and-Research/Fire-statistics-andreports/WUI/osbrushgrassforest.pdf. Accessed December 27, 2021. 24 Morton et al, Assessing the Environmental, Social, and Economic Impacts of Wildfire, May 2003. Available at https://yff.yale.edu/sites/default/files/files/wildfire_report(1).pdf. Accessed December 27, 2021.

Attachment 2B
and require fire-resistant, native vegetation as buffers for developments in hillside, open space, and rural areas with moderate to high fire risk.

Figure 8: Very High Fire Severity Zones
Source: City of Brentwood Safety Element, CAL FIRE Very High Fire Hazard Severity Zones.

2. Conclusion
The long-term climate effects predicted to be experienced by Brentwood include changes in precipitation amounts and patterns, increase in flooding, increased temperature, and wildfires. Local annual levels of precipitation in Brentwood are not anticipated to change drastically with slight increases in the latter decades of this century. The City’s flood risk due to annual average precipitation is not projected to be substantially impacted by climate change as precipitation is expected to remain fairly consistent.

However, the increase in the frequency and intensity of severe rainstorms in the future may result in increased risk of localized flooding events. In general, precipitation in northern regions of California is projected to increase. Temperature changes in Brentwood are projected to change in terms of extreme heat days, with a resultant increase on the reliance of climate modifying appliances such as air conditioning. An increase of extreme heat days poses a greater risk to sensitive communities such as homeless residents, senior citizens, and people with disabilities. In terms of wildfire, no areas within the City were identified in a VHFHSZ, and the City’s vulnerability to wildfire is likely to remain the same even with a changing climate. The Safety Element will be updated in accordance with recently adopted changes in state law.

CITY COUNCIL AGENDA ITEM NO. G.2
06/25/2024
SUBJECT: Sidewalk Vending Permit Application Fee and Permit Fee and Administrative Fines for BMC Chapter 5.64, Sidewalk Vending DEPARTMENT: Finance and Information Systems
Community Development
STAFF: Kerry Breen, Director of Finance and Information Systems Alexis Morris, Director of Community Development
Michelle Morey, Accounting Manager
Roberta Portillo-Bienemann, Code Enforcement Supervisor

TITLE/RECOMMENDATION
Adopt a Resolution amending the FY 2023/24 Cost Allocation Plan and Schedule of City Fees to implement a new Sidewalk Vending Permit Application Fee, Sidewalk Vending Permit Fee and Administrative Fines for sidewalk vending violations per Brentwood Municipal Code Section 5.64.130, Sidewalk Vending Violations – Penalties.

FISCAL IMPACT
The proposed Sidewalk Vending Permit Application Fee and associated Permit Fee are calculated to cover reasonable costs associated with processing a Sidewalk Vending Permit Application. Community Development estimates ten (10) Sidewalk Vending Permit applications may be submitted, which would provide annual revenue to the General Fund of $1,600.00 (at the recommended fees of $25.00 per application and $135.00 per permit issued). Revenue generated by Administrative Fines for enforcement of sidewalk vending would also be included in the General Fund.

Community Development staff will perform outreach and provide education to sidewalk vendors before enforcement of the ordinance.

BACKGROUND
On March 12, 2024, the City Council approved Ordinance No. 1069, amending the definition of “peddler” in Brentwood Municipal Code Section 5.48.020, added Chapter

5.64 imposing regulations on sidewalk vending in compliance with Senate Bill 946, and amended Section 7.020210 regarding vendors in parks. Chapter 5.64 outlines the application requirements.

Application Fee and Permit Fee

CITY COUNCIL AGENDA ITEM NO. G.2
06/25/2024
Finance staff, in coordination with Community Development staff, estimated the staff time to 1) intake the application (“Application Fee”) and 2) process the application (“Permit Fee”) utilizing the current hourly rates by staff classification in the Cost Allocation Plan to calculate the cost recovery fees.

The Application Fee is proposed to be non-refundable and staff determined a 15- minute review of the application, to ensure all required documents are attached and the application is signed, would be sufficient. The current cost of the review is calculated at $29.32 and staff is proposing a $25.00 Application Fee. Staff does not recommend annual increases applied to the Application Fee.

A more detailed review of the application and required documents will require more staff time, and the current cost to process the application and issue the permit is calculated at $136.50. Staff is proposing a $135.00 Permit Fee for a total fee of $160.00 annually, including the Application Fee. The applicant would pay the $135.00 Permit Fee after the application has been approved and the permit is ready to be issued. Staff recommends annual increases be applied to the Permit Fee.

Below is a summary of Sidewalk Vending Permit Fees currently imposed by other Contra Costa County agencies. Note that not all of the agencies have adopted a Sidewalk Vending ordinance at this time. Amounts do not include Business Tax Certificate fees.

The City reviews and updates its fees on an annual basis. Fees are adjusted at the beginning of each fiscal year by the annual changes to the April San Francisco – Oakland – Hayward, California Consumer Price Index (CPI) Urban Wage Earners and Clerical Workers, unless a fee is tied to an alternative index.

CITY COUNCIL AGENDA ITEM NO. G.2
06/25/2024
Staff is proposing to adjust the Sidewalk Vending Permit Fee on July 1, beginning July 1, 2025, by the same index; however, the City Council has the discretion to direct that the Permit Fee not be subject to an annual increase.

Administrative Fines
Brentwood Municipal Code Section 5.64.130, Violations – Penalties, outlines the administrative fine amounts proposed to be added to the Cost Allocation Plan.

Although these fees are included in the Brentwood Municipal Code, before they can be utilized, City Council action is required to include the amounts in the Cost Allocation Plan.

Violation by a Vendor with a Valid Sidewalk Vendor Permit o First Violation – One Hundred Dollars ($100)
o Second Violation within one (1) year of first violation – Two Hundred Dollars ($200)
o Third and subsequent Violations within one (1) year of first violation – Five Hundred Dollars ($500)
o The City may rescind a permit issued to a sidewalk vendor upon the fourth or any subsequent violation
Violation by a Person Engaging in Sidewalk Vending without a Valid Sidewalk Vendor Permit
o First Violation – Two Hundred Fifty Dollars ($250)
o Second Violation within one (1) year of first violation – Five Hundred Dollars ($500)
o Third and subsequent Violations within one (1) year of first violation – One Thousand Dollars ($1,000)
o Upon proof of a valid Sidewalk Vending Permit issued by the City, the administrative fines shall be reduced to the amounts set for Violation by a Vendor with a Valid Sidewalk Vendor Permit above

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

CITY COUNCIL AGENDA ITEM NO. G.2
06/25/2024

DATE OF NOTICE
The City of Brentwood published a Notice of Public Hearing on June 14, 2024 and June 21, 2024. Prior to publication of the June 25, 2024 City Council Agenda, staff received no public comments related to this item.

ENVIRONMENTAL DETERMINATION
This action has been found to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061, 15273, and 15378 of the State CEQA Guidelines.

ALTERNATIVE OPTION(S)

1. Do not approve proposed amounts and do not adopt the resolution.

2. Modify proposed amounts and adopt a revised resolution. The City Council has the discretion to set the application/permit fee at an amount less than the estimated cost.

3. Continue item with direction for staff to return with additional information.

ATTACHMENT(S)

1. Previous Action

2. Resolution

ATTACHMENT 1
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On July 12, 1994, the City Council adopted Urgency Ordinance No. 590, establishing a temporary moratorium on use permits for vending operations.

On August 23, 1994, the City Council adopted Ordinance No. 544, extending the moratorium on the processing of new use permits for mobile vending operations for an additional ten months and fifteen days.

On April 25, 1995, the City Council conducted a public hearing on the introduction of Ordinance No. 551, Mobile-Vending, which was proposed by the Planning Commission to establish processing procedures, design and location guidelines for mobile vendors. The City Council declined to adopt Ordinance No. 551, and directed staff to develop an alternate ordinance restricting motorized vending to two hours per day per location.

On May 30, 1995, the City Council approved the introduction and waived the first reading of Mobile Vending Ordinance No. 554.

On June 13, 1995, the City Council adopted Ordinance 554, establishing business license requirements and standards for mobile vending with an effective date of October 1, 1995.

On September 12, 2023, the City Council adopted Resolution No. 2023 – 113, 1) adopting the FY 2023/24 Cost Allocation Plan and Schedule of City Fees; 2) making certain supporting findings, including the inapplicability of the California Environmental Quality Act to the actions; 3) imposing said fees; 4) establishing a process for waiving or adjusting certain fees; 5) adding certain new Community Development, Police and Public Works Fees; and 6) repealing Resolution 2022-122, which adopted the FY 2022/23 Cost Allocation Plan and Schedule of City Fees.

On March 12, 2024, the City Council adopted Ordinance No. 1069, amending the definition of “Peddler” in Section 5.48.020 and adding Chapter 5.64 to the Brentwood Municipal Code; imposing regulations on sidewalk vending in compliance with Senate Bill 946; amending Section 7.02.210 regarding vendors in parks; and determining the Ordinance is exempt from CEQA.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD 1) AMENDING THE FY 2023/24 COST ALLOCATION PLAN AND
SCHEDULE OF CITY FEES; 2) MAKING CERTAIN SUPPORTING

FINDINGS, INCLUDING THE INAPPLICABILITY OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT TO THESE ACTIONS; 3)

IMPLEMENTING NEW SIDEWALK VENDING PERMIT APPLICATION FEE 4) IMPLEMENTING A NEW SIDEWALK VENDING PERMIT FEE; AND 5)

IMPLEMENTING ADMINISTRATIVE FINES FOR VIOLATIONS OF
BRENTWOOD MUNICIPAL CODE CHAPTER 5.64, SIDEWALK VENDING WHEREAS, Article XI, section 7 of the California Constitution allows the City to impose fees and charges that are not in conflict with the general laws of the State; and
WHEREAS, the City Finance and Information Systems Department researched and developed a Cost Allocation Plan and Schedule of City Fees, which develops a model for computing fees to cover the City’s direct and indirect (overhead) administrative costs incurred in response to requests for permits, maps, licenses and entitlements, and which proposes a revised schedule of such fees; and WHEREAS, on September 12, 2023, the City Council adopted Resolution No. 2023–113, 1) adopting the FY 2023/24 Cost Allocation Plan and Schedule of City Fees; 2) making certain supporting findings, including the inapplicability of the California Environmental Quality Act to the actions; 3) imposing said fees; 4) establishing a process for waiving or adjusting certain fees; 5) adding certain new Community Development, Police and Public Works Fees; and 6) repealing Resolution 2022-122, which adopted the FY 2022/23 Cost Allocation Plan and Schedule of City Fees; and
WHEREAS, on March 12, 2024, the City Council adopted Ordinance No. 1069, amending the definition of “Peddler” in Section 5.48.020 and adding Chapter 5.64 to the Brentwood Municipal Code; imposing regulations on sidewalk vending in compliance with Senate Bill 946; amending Section 7.02.210 regarding vendors in parks; and determining the Ordinance is exempt from CEQA; and WHEREAS, two new cost recovery fees are proposed which are not currently included in the FY 2023/24 Cost Allocation Plan and Schedule of City Fees:

1. The first proposed fee is for the Sidewalk Vending Permit Application Fee. This fee is non-refundable and is proposed to be Twenty-Five Dollars ($25.00). The proposed Application Fee will be reviewed each year but will not be subject to an annual increase.

2. The second proposed fee is the Sidewalk Vending Permit Fee and is proposed to be One Hundred Thirty-Five Dollars ($135.00). This fee will only be charged after the Sidewalk Vending Permit application has been approved. The proposed Permit Fee would be adjusted at the beginning of the fiscal year based on the

April CPI with the annual Cost Allocation Plan preparation process to ensure cost recovery and consistency with the fees charged by other local agencies. Should the CPI be negative, the fees would remain unchanged pending review of the cost to provide the services by staff; and
WHEREAS, new Administrative Fines are proposed, as outlined in Brentwood Municipal Code Section 5.64.130, Violations – Penalties. These fines will not be subject to an annual increases; and
WHEREAS, the Cost Allocation Plan and Schedule of City Fees, as well as the proposed fees, were available for public inspection and review for ten (10) days prior to this public hearing; and
WHEREAS, a public hearing has been noticed and held in accordance with Government Code Section 66018; and
WHEREAS, the City Council has considered the information provided to it by those testifying; has reviewed and considered the information provided in the staff report and staff presentation; and has read and considered the report and supporting data.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brentwood:

Section 1. Findings:

The Council makes each of the following findings:

A. That CEQA does not apply to the adoption of this Resolution, pursuant to Sections 15061, 15273, and 15378 of the State CEQA Guidelines because:

1. The fees established by this Resolution will be collected for the purposes of meeting operational expenses and maintaining service to those that request it; and

2. Because the fees authorized by this Resolution will be collected at the application stage of the project, CEQA review will take place during the processing of the project. Therefore, it can be seen with certainty that the adoption of this Resolution establishing processing fees will not have a significant effect on the environment; and

3. The adoption of this Resolution is not a project because it is a fiscal activity that does not commit the City to any specific project that may result in a potentially significant impact on the environment.

B. The purpose of the processing fees is to support those City services that are undertaken as a direct or indirect result of members of the public using the

services of the City, in particular the services of permits, licenses, subdivision maps and entitlements.

C. After considering the Cost Allocation Plan and Schedule of City Fees and supporting data and the testimony received at this public hearing, the City Council finds that future development in the City will generate a continued need for the services specified in the Report.

D. The Report and the testimony establish:

1. That there is a reasonable relationship between the need for the fee and the type of service, product, benefit, privilege, or regulatory activity for which the fee is imposed; and

2. That there is a reasonable relationship between the amount of the fee and the estimated reasonable cost of providing the type of service, product, benefit, privilege, or regulatory activity for which the fee is imposed; and

3. The amount of service provided does not exceed what is reasonably necessary in order to process the requested service; and

4. That the cost estimates set forth in the FY 2023/24 Cost Allocation Plan and the Schedule of City Fees are reasonable and best approximate the direct and indirect (overhead) costs of City staff and consultants for providing the service, product, benefit, privilege, or regulatory activity.

E. The method of allocating the City’s administrative costs bears a fair and reasonable relationship to each fee payer’s burden on, and benefit from, the services, product, benefit, or privilege requested by that fee payer.

F. The fees do not exceed the estimated reasonable cost of providing the service, product, benefit, privilege, or regulatory activity for which the fee is charged.

Section 2. Fees Imposed:

A. Each person requesting a service in the City of Brentwood for which a fee is imposed pursuant to the Cost Allocation Plan and Schedule of City Fees shall pay the fee set forth in the Cost Allocation Plan and Schedule of City Fees.

B. On July 1 of each year, all fees not tied to an alternate index, and/or requirement, or authorized not to increase annually, will be automatically adjusted by an amount equal to the percentage of increase or decrease in

the April Consumer Price Index Urban Wage Earners and Clerical Workers for San Francisco-Oakland-Hayward California. Should the CPI be negative, the fees would remain unchanged pending review of the cost to provide the services by staff. A recommendation would be brought before City Council prior to adjustments being made.

C. The fees may also be adjusted if the City updates or modifies the Cost Allocation Plan or the Report and conducts a public hearing to implement a new or revised fee or fees based upon such update or modification.

D. The applicable fee shall be determined based on the fee schedule in effect at the time the application is submitted to the City for the requested service. The fee shall be payable in full at the time the application is submitted.

E. The adoption of this Resolution does not affect the ability of the City to request an agreement between the applicant and the City to pay extraordinary processing costs and to establish deposit accounts.

Section 3. Use of Fee Revenues:

The revenues raised by payment of these fees, along with any interest earned, shall be used to pay for the City’s costs detailed in the Report, including without limitation the capital costs and labor and contract costs directly or indirectly associated with providing the service, product, benefit, privilege, or regulatory activity for which the fee is charged.

Section 4. Effective Date of New Fees:

The new fees provided in this Resolution shall become effective July 1, 2024.

Section 5. Severability:

Each component of the fees and all portions of this Resolution are severable.

Should any individual component of the fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining provisions shall be and continue to be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid.

Section 6. Cost Allocation Plan and Schedule of City Fees Amendment:

The City of Brentwood FY 2023/24 Cost Allocation Plan and Schedule of City Fees is hereby amended to add:

1. Sidewalk Vending Permit Application Fee – Twenty-Five Dollars ($25.00)
Not subject to an annual increase.

2. Sidewalk Vending Permit Fee – One Hundred Thirty-Five Dollars ($135.00)
Subject to annual increase on 7/1, beginning 7/1/2025,
automatically adjusted by an amount equal to the percentage of increase in the April Consumer Price Index Urban Wage Earners and Clerical Workers for San Francisco-Oakland-Hayward California.

Should the CPI be negative, the fees would remain unchanged pending review of the cost to provide the services by staff. A recommendation would be brought before City Council prior to adjustments being made.

3. Administrative Fines as outlined in Brentwood Municipal Code Section

5.64.130, Violations – Penalties and below. These fines will not be subject to an annual increase.

Violation by a Vendor with a Valid Sidewalk Vendor Permit  First Violation – One Hundred Dollars ($100)
 Second Violation within one (1) year of first violation – Two Hundred Dollars ($200)
 Third and subsequent Violations within one (1) year of first violation – Five Hundred Dollars ($500)
 The City may rescind a permit issued to a sidewalk vendor upon the fourth or any subsequent violation
Violation by a Person Engaging in Sidewalk Vending without a Valid Sidewalk Vendor Permit
 First Violation – Two Hundred Fifty Dollars ($250)
 Second Violation within one (1) year of first violation – Five Hundred Dollars ($500)
 Third and subsequent Violations within one (1) year of first violation – One Thousand Dollars ($1,000)
 Upon proof of a valid Sidewalk Vending Permit issued by the City, the Administrative Fines shall be reduced to the amounts set for Violation by a Vendor with a Valid Sidewalk Vendor Permit above PASSED, APPROVED, AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on June 25, 2024 by the following vote:

CITY COUNCIL AGENDA ITEM NO. G.3
06/25/2024
SUBJECT: 2024/25 – 2025/26 Operating Budget Adoption
DEPARTMENT: Finance and Information Systems
STAFF: Kerry Breen, Director of Finance and Information Systems Christine Andrews, Assistant Director of Finance and Information Systems
Sonia Agostini, Accounting Manager

TITLE/RECOMMENDATION
Adopt two resolutions:

1. The City Council will consider a Resolution 1) amending the 2023/24 Operating Budget; 2) adopting the 2024/25 – 2025/26 Operating Budget; 3) amending the 2024/25 – 2028/29 Capital Improvement Program (CIP); 4) approving the addition of ten (10) new full-time positions to the City staff; 5) amending the 2023/24 Fund Balance Restrictions and Commitments in the General Fund; and

2. The Governing Board of the Successor Agency to the Redevelopment Agency of the City of Brentwood will consider a Resolution adopting the 2024/25 – 2025/26 Operating Budget for the former Brentwood Redevelopment Agency Funds.

Council/Administrative Policy No. 10-5, Budget and Fiscal Policies, (“Policy”) requires the City Council adopt a two-year operating budget for the ensuing two fiscal years no later than June 30th. This draft 2024/25 – 2025/26 Operating Budget (“Budget”) meets the criteria defined in the Policy that the City maintain a balanced General Fund budget over the two-year operating budget period and that the Budget presented maintains a 30% General Fund Unassigned Fund Balance (“30% Reserve”). Adoption of this draft Budget will ensure the City Council meets the budget adoption timeline defined in the Policy.

FISCAL IMPACT
The City Council has provided strong guidance for the preparation of this Budget by adopting sound fiscal policies and providing clear direction. Ensuring the availability and stability of the ongoing financial resources necessary to continue to provide high quality services to the citizens remains a top priority.

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Staff will continuously monitor the financial condition of the City and report to the City Council any significant differences between the assumptions used in this Budget and actual results, if they occur. Staff will provide a Mid-Year update to the Budget in January 2025 and every six months thereafter during the two-year Budget period.

Should economic conditions warrant, more frequent financial updates will be provided.

The proposed two-year Operating Budget supports ongoing operational service levels for residents and provides the resources to complete carryover Strategic Plan projects and initiatives. Additionally, the Operating Budget provides for the necessary capital funding for infrastructure projects to meet the needs of the community and upgrades and/or replacement of existing infrastructure.

A draft of the ten-year General Fund Fiscal Model (“Fiscal Model”) was reviewed by the City Council at the Budget workshop in May. Including the budget direction provided by the City Council at the workshop, the updated summary of the Fiscal Model shows that revenues are about break-even with expenditures (including maintaining increased 30% requirements). The Fiscal Model projects a Budget Stabilization balance of $13.7 million at the end of FY 2025/26, prior to any pension prefunding contributions and a $13.2 million balance at the tenth year of the Fiscal Model.

The 2024/25 – 2025/26 Operating Budget for the former Brentwood Redevelopment Agency funds now operated by the City as Successor Agency (SA) will allow the SA to meet the debt obligations of the former Brentwood Redevelopment Agency and continue with the task of winding down the former agency.

BACKGROUND
The Finance and Information Systems Department is responsible for the preparation of the City’s 2024/25 – 2025/26 Operating Budget (“Budget”). The final Budget brought for City Council consideration tonight reflects the collaborative efforts of all City departments and incorporates the policy direction and guidance received from the City Council. Additionally, the Budget includes costs to carryover certain FY 2022/23 – FY 2023/24 Strategic Plan (“Strategic Plan”) initiatives and projects. Due to the change in the timing of the strategic plan cycle, a new strategic plan and accompanying initiative and project costs have not yet been considered for this Budget.

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The Budget process began in late 2023, with every City Department participating in creating the Budget draft. Another critical step in the process was staff’s development of the 2024/25 – 2028/29 Capital Improvement Program (CIP).

Concurrent with the development of the CIP, each City Department reviewed their individual operational and funding needs and submitted proposed budgets to the Finance Department and City Manager. The Departmental budget requests necessary to maintain established service levels were incorporated into the draft Budget, while requests for additional staff and funding were highlighted for further review.

The FY 2023/24 – 2025/26 Budget Review Committee (“Committee”) held meetings with Finance Department staff to review both the draft CIP and draft Budget, including all requests for additional staff and funding, prior to their presentation to the full City Council.

A CIP workshop was held on April 9, 2024, where the City Council reviewed the draft CIP and provided direction on the capital project plan. The CIP was adopted by the City Council on May 28, 2024, and all of the 2024/25 and 2025/26 capital project expenditures and funding from the CIP, including changes made that night, have been incorporated into this draft Budget.

Also on May 28, 2024, the draft Budget was presented for City Council consideration and discussion at an Operating Budget workshop. At that workshop, the City Council reviewed the draft Budget and provided input and direction that has been incorporated into the final Budget being considered for adoption tonight.

1. 2024/25 – 2025/26 Operating Budget Overview
The Budget presented tonight includes costs for carryover Strategic Plan initiatives and projects in addition to the ongoing costs of City operations. These projects will maintain and enhance the high standards of living for all residents and include:
 Sand Creek Sports Complex – phased construction of a sports complex located at Sand Creek Road and Fairview Avenue that will include up to six full size multi-use sports fields, parking lot, restrooms, picnic area and other park amenities
 Sand Creek Road Extension - construction of an extension of Sand Creek Road from the existing State Route 4 on/off ramp to Heidorn Ranch Road  Innovation Center @ Brentwood Infrastructure – construction of 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

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 Parking Garage Security and Safety Enhancements – installation of vehicle and pedestrian gate access points and provision of security enhancements to the City Hall parking structure
 Vineyards at Marsh Creek - Event Center/Amphitheater – phased construction of an open air stage and event space, with future phasing of an amphitheater and a future event center at the Vineyards at Marsh Creek development

2. 2024/25 – 2025/26 General Fund Overview
In the presentation at the Budget workshop on May 28, 2024, after expected budget savings, staff projected a current year General Fund surplus of $800,000 for FY 2023/24 and a two-year Budget surplus of about $1.6 million. At the workshop, staff also projected that in the tenth year of the Fiscal Model, $18.0 million would remain in the City’s Budget Stabilization Fund (BSF). After incorporating direction from the Budget workshop, the balance in the BSF is now projected to be $13.2 million. The BSF is comprised of prior fiscal years’ General Fund budget savings and was established to offset rising Pension and Retiree Medical costs over the next decade. This fund provides flexibility for any unfavorable economic conditions and uncertainty that may occur in the coming fiscal years.

Staff incorporated the City Council’s direction from the Budget workshop into the draft Budget and updated the General Fund projection. The projected surplus for FY 2023/24 presented at the workshop was about $800,000, after incorporating the changes from the workshop, the projection is now an approximately breakeven result.

In addition, the two-year projected Budget surplus has been reduced from about $1.6 million to $763,000:
2024/25 – 2025/26 Estimated Surplus at Budget
Workshop
$1,630,000
Basketball Court Lighting est. – Homecoming & Windsor Parks (702,000) New Equity Analyst position (two-year cost) (395,000)
Equity Strategic Plan contractual services (50,000)
Juneteenth funding increase from General Fund (two-year cost) (40,000) Economic Development Micro Business Launch program (10,000) Updates to budget savings, General Plan/30% reserves 330,000 Updated 2024/25 – 2025/26 Estimated Surplus $763,000

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Over the two-year budget period, after expected budget savings, the General Fund is projected to produce an estimated cumulative $0.8 million surplus – about ½ of 1 percent of revenues as a surplus per year. This surplus includes setting aside funds for the 30% Reserve, which is projected to increase about $890,000 each Budget year as expenditures grow.

3. Budget Watch
Economic Outlook
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 slower growth rates in late 2024 and early 2025, as consumer demand fades and higher interest rates limit business and residential investment. 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 moderated in recent months to a rate of 3.5% and is expected to decrease over time to the Federal Reserve target of 2%. 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.

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. If labor negotiations result in cost of living increases above the placeholder amounts, the projected General Fund surplus would likely be eliminated, or become a deficit.

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 mid-June, 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.

To help mitigate this risk, and consistent with the prior two-year Budget, this Budget includes one-time lump sum payments totaling $4.0 million to 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

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serve to reduce future interest costs on the unfunded obligations and free up funds in the coming years for other City services.

Taxpayer Protection and Governmental Accountability Act The Taxpayer Protection and Government Accountability Act ballot measure secured enough signatures for inclusion on the November 2024 general election ballot. The Act would have adopted new and stricter rules for raising revenues and fees, and make it more difficult to defend these revenues in court. The Governor and Legislature filed a challenge with the California Supreme Court in the fall of 2023, and argued that the measure should be removed from the 2024 ballot. On June 20, 2024, the Court found that the changes proposed in the measure would substantially alter the basic plan of government and directed that the measure be removed from the ballot. Staff will continue to monitor this issue and provide updates in the future if necessary.

4. Operating Budget Workshop Updates
A Budget workshop was held on May 28, 2024, to receive City Council direction and public input on the draft Budget. During the workshop, the City Council provided direction to staff to update both the Budget and CIP. These updates have been incorporated into the final draft of the Budget presented tonight.

Budget Updates
The following updates have been incorporated into the Budget draft at City Council direction:
 A new General Fund position, Equity Analyst, was requested by the City Council, and would be assigned to the Human Resources Department at an ongoing salary and benefit cost of about $196,000 per year and one-time equipment cost of $3,000.
 Increase in the FY 2024/25 General Fund budget of $50,000 in the Human Resources Department for one-time contractual services to develop an Equity Strategic Plan.
 Increase in annual funding for the Juneteenth celebration of $20,000 in the FY 2024/25 and FY 2025/26 General Fund Special Events division budget.  Increase in the FY 2024/25 General Fund Budget of $10,000 in the Economic Development Division for one-time contractual services for a Micro Business Launch program.
 Increase in the Parks and LLAD Replacement Fund expense projection of $25,000 in FY 2023/24 and $15,000 in FY 2024/25 budget for basketball court resurfacing at the Homecoming and Windsor Way Parks. (Costs

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06/25/2024
related to the City Council basketball courts lighting is reflected below as budgeted in the Parks & LLAD Replacement Fund.)
Since the workshop, staff included, and recommends, the following revisions to the draft Budget for updated financial information and estimates:
 Addition of about $122,000 in FY 2024/25 in both revenues and expenditures in the Other Grants Fund for a U.S. Department of Energy grant awarded in FY 2023/24
 Increase in FY 2023/24 projected transfers in of about $3.5 million to the Water Development Impact Fee Fund for the return of excess funding for the Pump Station 2.4 Installation CIP Project
 Reduction in FY 2023/24 projected expenditures of $50,000 and increase in FY 2024/25 budget of $90,000 in the Facilities Maintenance Fund for the timing change for purchase of equipment. The increase in budget of $40,000 over FY 2023/24 is for inflationary and supply chain cost increases that may occur
 Reduction in FY 2023/24 Water, Wastewater and Solid Waste Enterprise Fund estimated depreciation expense (non-cash) of about $490,000  Increase in FY 2023/24 projected revenue of about $175,000 in the Solid Waste Enterprise Fund for Organics-related State grant revenue  Reduction in estimated investment income of about $105,000 in the Vineyards Projects Capital Fund
 Updated transfer amounts from the Pension/OPEB Obligation Fund to the General Fund to ensure a balanced General Fund budget
CIP Updates
Following is a list of CIP project updates that have been incorporated into the draft Budget based on City Council direction at the Budget workshop and during CIP adoption. Updated CIP project sheets for the projects listed below are included in Attachment 6 – Exhibit C to this staff report.
 Comprehensive General Plan Update – At City Council direction, the cost of the project is proposed to be reserved in the General Fund at the end of FY 2023/24. The project timing was adjusted to occur earlier, with the project now set to begin in FY 2025/26. The funding source for this project is the General Fund.
 Basketball Court Lighting – Homecoming & Windsor Parks – At City Council direction, this project is proposed to be added to the 2024/25 – 2028/29 CIP. This project, scheduled to begin in FY 2024/25, will explore the feasibility of adding basketball court lighting at the Windsor Way and

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Homecoming Parks. The funding source for this project is the General Fund with an estimated cost of $702,000. This cost includes estimates for design, PG&E connection and adding utility infrastructure, LED lighting and poles, cost for permits and CEQA analysis. In light of recent issues with the new Creekside Park pickleball courts resulting in neighborhood complaints about lighting, traffic, and noise, staff proposes to do significant neighborhood outreach with the two communities before constructing these improvements.
 Windsor Way Park Playground Replacement – The project timing was adjusted to occur earlier, with the project now set to begin in FY 2024/25.

The funding source for this project is the Parks and LLAD Replacement Fund.
 Aquatic Complex Locker Rooms Remodeling – The project timing was adjusted to occur later, with the project now set to begin in FY 2025/26.

The funding source for this project is the Facilities Replacement Fund.

Since the workshop, staff included, and recommends, the following CIP update:
 Solid Waste Organics Diversion (CIP #542-54021) – Funding and expenditure budgets increase of $259,000 in FY 2024/25 due to updated cost assumptions and making this a multi-year project. The funding source for this project is the Solid Waste and Wastewater Enterprise Funds.

5. General Fund Restrictions and Commitments
Recommended fund balance restrictions and commitments in the General Fund at June 30, 2024 are summarized in Attachment 4 - Exhibit A.  As directed by the City Council at the Budget workshop, increase in the commitment to make funds available for the full cost of the Comprehensive General Plan Update CIP Project to commence in FY 2025/26.  As directed by the City Council at the Budget workshop, establishment of a Future Capital Projects commitment of $800,000
 The Police Department 5th Beat amount reflects funds that have been set aside for one-time and the first two years of ongoing costs of the 5th Beat  Brentwood Boulevard Improvements restricted reserve to be used for funding of the Brentwood Boulevard Widening North – Phase 1 project in FY 2024/25
 The Future Strategic Initiatives amount reflects the costs to complete certain 2022/23 – 2023/24 Strategic Plan Initiatives funded by the General Fund

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 Successor Agency Payment Plan commitment for annual debt service payments which will sunset in FY 2024/25
 City Council Redistricting balance is for funds set aside for the cost of future redistricting activities that will be required after the 2030 U.S. Census

6. Operating Budget Policies and Guidelines
The City Council has adopted several financial policies that serve as a guide in the development, administration and management of the Budget. These include the Budget and Fiscal Policies (Council/Administrative Policy 10-5), the Capital Financing and Debt Management Policy (Council/Administrative Policy 10-23) and the Investment Policy (Council/Administrative Policy 10-4). They can be found on the City website at Council / Administrative Policies (Finance) | Brentwood, CA (brentwoodca.gov)
This Budget was also prepared in accordance with the following City Council direction and key budgetary principles:
 Includes funding and appropriations from the CIP adopted on May 28, 2024 and City Council direction received at the May 28, 2024 Budget workshop  Maintains a General Fund 30% reserve
 Appropriates resources to complete carryover 2022/23 – 2023/24 Strategic Plan initiatives
 Continues the plan to fund its retiree medical benefit obligation at 85% of the annual actuarial required contribution, proactively addressing the unfunded liability for these benefits
 Budgets for the Internal Service Replacement Funds at appropriate levels to ensure operational stability and that adequate replacement funds are available when necessary
 Impacts of the proposed Budget and CIP on the Fiscal Model were analyzed by staff with the following results:
o Over the ten-year period, the Fiscal Model shows annual revenues exceeding expenses and increasing 30% reserve requirements by about $200,000 per year
o Budget Stabilization balance at $13.2 million at the end of the tenyear projection down from $18 million previously projected o General Fund reserve maintained at 30% of operating expenditures A copy of the Budget is included as Attachment 5 - Exhibit B to this staff report and available for public review on the City’s website using the following link:

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Operating Budgets | Brentwood, CA (brentwoodca.gov)
For a hard copy of the Operating Budget, please contact the Finance and Information Systems Department via email at [email protected] or by calling 925-516-5460.

7. FY 2023/24 Operating Budget Amendments
A budget adjustment totaling $71,709 is being proposed to increase the expenditure budget in seven Special Revenue Landscape and Lighting Assessment District Funds to account for utilities and other maintenance costs that are higher than anticipated in the original budget.

8. 2024/25 – 2025/26 Successor Agency Operating Budget
The City of Brentwood elected to serve as the Successor Agency to the Brentwood Redevelopment Agency (SA). As part of its duties, a successor agency must perform the administrative functions necessary to facilitate the orderly wind down of the former redevelopment agency.

The SA budget is comprised of two funds: Fund 303 – Successor Agency Administration and Debt Service and Fund 304 – Successor Agency RDA Obligation Retirement.

The SA Administration and Debt Services Fund is under the control of the SA, with any actions taken regarding these funds being subject to approval by the Oversight Board and by the State of California. The legislation governing the dissolution of redevelopment also required successor agencies to establish a fund to account for all future tax increment allocations made by the County AuditorController’s Office from their County Redevelopment Property Tax Trust Fund (“RPTTF”). The City of Brentwood, as SA, established Fund 304, the SA RDA Obligation Retirement Fund, for this purpose.

Staff is requesting approval of the 2024/25 – 2025/26 SA Operating Budget which allows for payment of the items listed on the approved Recognized Obligation Payment Schedule (“ROPS”) for the period of July 2024 – June 2025. It should be noted that regardless of the approved operating budget, no funds can be expended by the SA without first securing approval on the ROPS via the Oversight Board and ultimately the State Department of Finance. For 2024/25, the expenses in Fund 303 consist of $2,431,037 of debt service costs, $250,000 of administrative costs and $1,600 of investment fees. For 2025/26, the expenses

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in Fund 303 consist of $2,421,415 of debt service costs, $250,000 of administrative costs and $1,600 of investment fees.

Staff is recommending budgeted expense transfers from the SA RDA Obligation Retirement Fund to cover the expenses detailed above for a transfer authorization of $2,682,637 and $2,673,015 in fiscal years 2024/25 and 2025/26, respectively.

The proposed SA budgets can be found in the Fiduciary Funds section of the 2024/25 – 20256 Operating Budget, Attachment 5 - Exhibit B, on page 163.

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

DATE OF NOTICE
The City of Brentwood published a public hearing notice in the Brentwood Press and a draft of the 2024/25 – 2025/26 Operating Budget was made available on the City’s website on June 14, 2024.

ENVIRONMENTAL DETERMINATION
This action has been found to be exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b)(4), as it relates to the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

ALTERNATIVE OPTIONS

1. Do not approve staff’s recommended draft 2024/25 – 2025/26 Operating Budget and/or updates to the 2024/25 – 2028/29 Capital Improvement Program. If the draft 2024/25 – 2025/26 Operating Budget is not adopted, the City would not be able to make payments on any obligations, as there would be no legal budget appropriations.

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2. Modify staff’s recommended draft 2024/25 – 2025/26 Operating Budget and/or updates to the 2024/25 – 2028/29 Capital Improvement Program.

3. Continue the item with direction for staff to return with additional information. A continuation of the adoption of the 2024/25 – 2025/26 Operating Budget would not allow City to make payments on any obligations, as there would be no legal budget appropriations.

ATTACHMENTS

1. Previous Action

2. Resolution

3. Successor Agency Resolution

4. Exhibit A – FY 2023/24 Budget Amendments and General Fund - Fund Balance Restrictions and Commitments

5. Exhibit B – 2024/25 – 2025/26 Operating Budget Draft

6. Exhibit C – Updated CIP Project Sheets

ATTACHMENT “1”
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On January 10, 2012, the City Council of the City of Brentwood adopted Resolution No. 2012-07, determining that the City Council would serve as the successor agency to the Brentwood Redevelopment Agency.

On February 22, 2022, the City Council adopted resolution 2022-25 to 1) Receive the people, time and financial analysis of the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 2) Adopt the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 3) Direct staff to incorporate City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 costs into the Operating and CIP Budgets and the City's ten-year General Fund Fiscal Model; and 4) Approve the addition of six (6) new full-time positions and incorporate the costs associated with the new positions into the FY 2022/23 and FY 2023/24 Operating Budget and direct staff to incorporate strategic plan costs into the Operating and CIP Budgets and the City’s ten-year General Fund Fiscal Model.

On January 10, 2023, the Successor Agency adopted Resolution 2023-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, Approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2023 – June 2024, and authorizing the Director of Finance and Information Systems and/or his designee, in consultation with General Counsel, to make minor adjustments thereto as necessary to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of the resolution.

On January 9, 2024, the Successor Agency adopted Resolution 2024-01-SA approving the ROPS and Administrative Budget for July 2024 – June 2025, and authorizing the Director of Finance and Information Systems and/or his designee, in consultation with the General Counsel, to make minor adjustments thereto as necessary to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of the resolution.

On May 28, 2024, the City Council adopted Resolution 2024-56, adopting the 2024/25 – 2028/29 Capital Improvement Program (CIP).

RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BRENTWOOD AMENDING THE 2023/24 OPERATING BUDGET;
ADOPTING THE 2024/25 – 2025/26 OPERATING BUDGET;
AMENDING THE 2024/25 – 2028/29 CAPITAL IMPROVEMENT
PROGRAM (CIP); APPROVING THE ADDITION OF TEN (10) NEW
FULL-TIME POSITIONS TO THE CITY STAFF; AND AMENDING THE 2023/24 FUND BALANCE RESTRICTIONS AND COMMITMENTS IN

THE GENERAL FUND
WHEREAS, on November 9, 2021, the City Council received an update on the City of Brentwood Strategic Plan FY 2020/21 - FY 2021/22, an overview of the fiscal status of the City's finances, suggested focus area titles, as well as new initiatives for the FY 2022/23 - 2023/24 Strategic Plan; and
WHEREAS, on December 1, 2021, the City Council participated in a strategic plan workshop to further discuss the framework for the City of Brentwood Strategic Plan FY 2022/23 and FY 2023/24; and
WHEREAS, on February 22, 2022, the City Council adopted Resolution 2022- 25 to 1) Receive the people, time and financial analysis of the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 2) Adopt the draft City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24; and 3) Direct staff to incorporate City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 costs into the Operating and CIP Budgets and the City's ten-year General Fund Fiscal Model; and 4) Approve the addition of six (6) new full-time positions and incorporate the costs associated with the new positions into the FY 2022/23 and FY 2023/24 Operating Budget and direct staff to incorporate strategic plan costs into the Operating and CIP Budgets and the City’s ten-year General Fund Fiscal Model; and
WHEREAS, on March 4, 2024, the FY 2024/25 – 2025/26 Budget Review Committee held a meeting with Finance Department staff and reviewed the proposed draft 2024/25 – 2028/29 Capital Improvement Program; and WHEREAS, on April 4, 2024, the FY 2024/25 – 2025/26 Budget Review 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; and
WHEREAS, on April 9, 2024, the City Council conducted a workshop on the draft 2024/25 – 2028/29 Capital Improvement Program and, by motion, directed staff to include the Fleet Electrification project in the final draft of the CIP to be brought forward for City Council consideration of adoption on May 28, 2024; and WHEREAS, on May 28, 2024, the City Council was presented a draft of the proposed 2024/25 - 2025/26 Operating Budget and conducted a workshop for review

comment and direction on the Operating Budget and draft ten-year General Fund Fiscal Model; and
WHEREAS, the City departments have submitted requests for appropriations to fund the departmental programs to provide services for the City of Brentwood; and
WHEREAS, the City Council reviewed these specific departmental requests and discussed City priorities for the expenditure of City funds at the City Council workshop on May 28, 2024; and
WHEREAS, on May 28, 2024, the City Council adopted Resolution 2024-56, adopting the 2024/25 – 2028/29 Capital Improvement Program (CIP); and WHEREAS, the City Council of the City of Brentwood has reviewed the financial condition of the City of Brentwood; and
WHEREAS, the two year Operating Budget does not commit to spending more than a realistic estimate of revenues; and
WHEREAS, the budgets for the addition of ten (10) new positions is incorporated into the 2024/25 -2025/26 Operating Budget; and WHEREAS, the General Fund is budgeted to maintain 30% undesignated reserves for each year of the Operating Budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby:

1. Finds this action to be exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b)(4), as it relates to the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and

2. Amends the FY 2023/24 Operating Budget as detailed in Exhibit A, which is incorporated herein by reference; and

3. Amends the 2023/24 fund balance restrictions and commitments in the General Fund, as detailed in Exhibit A, which is incorporated herein by reference; and

4. Adopts the revenues and appropriations as detailed in the 2024/25 – 2025/26 Operating Budget as detailed in Exhibit B, which is incorporated herein by reference; and

5. Amends the 2024/25 – 2028/29 Capital Improvement Program (CIP) as detailed in the updated CIP project sheets in Exhibit C, which is incorporated herein by reference; and

6. Approves the addition of ten (10) new positions to the City staff commencing in FY 2024/25, as follows:

One (1) Code Enforcement Officer I/II
One (1) Equity Analyst
Two (2) Solid Waste Equipment Operator I/II
Two (2) Wastewater Collection System Worker I/II
One (1) Wastewater Collection Supervisor
Two (2) Street Maintenance Worker I/II
One (1) Geographic Information System (GIS) Technician
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Brentwood at its regular meeting on June 25, 2024 by the following vote:

SUCCESSOR AGENCY RESOLUTION NO. 2024-XX

A RESOLUTION OF THE GOVERNING BOARD OF THE SUCCESSOR

AGENCY TO THE CITY OF BRENTWOOD REDEVELOPMENT
AGENCY, ADOPTING THE 2024/25 – 2025/26 OPERATING

BUDGET FOR THE FORMER BRENTWOOD REDEVELOPMENT

AGENCY FUNDS NOW ADMINISTERED BY THE SUCCESSOR
AGENCY
WHEREAS, on January 10, 2012, the City Council of the City of Brentwood adopted Resolution No. 2012-07 determining that the City of Brentwood would serve as the successor agency to the Brentwood Redevelopment Agency and; WHEREAS, the legislation governing the dissolution of redevelopment required the establishment of a Redevelopment Obligation Retirement Trust Fund; and
WHEREAS, on January 10, 2023, the Successor Agency adopted Resolution 2023-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, Approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2023 – June 2024, and authorizing the Director of Finance and Information Systems and/or his designee, in consultation with General Counsel, to make minor adjustments thereto as necessary to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of this resolution; and WHEREAS, on January 9, 2024, the Successor Agency adopted Resolution 2024-01-SA of the Successor Agency to the Brentwood Redevelopment Agency, Approving the Recognized Obligation Payment Schedule (“ROPS”) and Administrative Budget for July 2024 – June 2025, and authorizing the Director of Finance and Information Systems and/or his designee, in consultation with General Counsel, to make minor adjustments thereto as necessary to secure approval of the ROPS and/or the Administrative Budget by the State Department of Finance; and to undertake other actions necessary to carry out the purposes of this resolution; and WHEREAS, the appropriations requested will allow the Successor Agency to fulfill its legal duties and responsibilities.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood as the Successor Agency Board, hereby adopts the 2024/25 – 2025/26 Operating Budget for former Brentwood Redevelopment Agency Funds now administered by the Successor Agency as further specified in the attached Exhibit B, which is incorporated herein by reference.

PASSED, APPROVED AND ADOPTED by the Governing Board of the Successor Agency to the City of Brentwood Redevelopment Agency at a regular meeting held on the 25
th day of June 2024 by the following vote:

Fund Name Revenue Expenditure Net Effect on Fund
Other Funds:

Landscape and Lighting Assessment Districts (LLAD) - $ 71,709 $ (71,709) $ Total 2023/24 Amendments - $ 71,709 $ (71,709) $
FY 2022/23
Final Original Amended
Restricted:

Brentwood Blvd Improvements 678,000 $ - $ 678,000 $
Total Restricted - 678,000 - 678,000
Committed:

General Plan Update 261,200 $ 475,200 $ 1,482,700 $
City Council Redistricting 75,000 100,000 100,000
Future Capital Projects - - 800,000
Future Strategic Initiatives 2,415,489 - 374,616
75th Anniversary 51,469 - -
Police Department 5th Beat 2,363,275 663,275 2,363,275
Successor Agency Payment Plan 3,611,252 2,087,999 2,087,999 Total Committed - 8,777,685 3,326,474 7,208,590
Total Restricted and Committed 9,455,685 $ 3,326,474 $ 7,886,590 $ FY 2023/24
Exhibit A
Appropriation Amendments to the 2023/24 Operating Budget of the City of Brentwood and Amendments to the 2023/24 General Fund Fund Balance Restrictions and Commitments Fiscal Year 2023/24 Budget Amendments
Increase (Decrease)
General Fund - Fund Balance Restrictions and Commitments

City of Brentwood 2024/25 – 2028/29 Capital Improvement Program Project Title: Project #:

Comprehensive General Plan Update
Description/Justification:

This project involves a comprehensive update to the City’s General Plan, adopted July 22, 2014. This project will require a coordinated effort among all City departments, as well as extensive community engagement. Once updated, the General Plan will function as the community’s vision for future development. An Environmental Impact Report will be prepared to comply with the California Environmental Quality Act.

Project Status:

This planning phase of this project is anticipated to begin in FY 2025/26.

Supplemental Information:

This project will be facilitated by the Community Development Department, with input from other City departments, and will include assistance from a professional planning consultant.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 70239 Legal 3,000 50,000 40,000 $ 93,000
90040 Planning and Design 625,000 525,000 $ 1,150,000
90070 Project Administration 12,000 50,000 45,000 $ 107,000 TOTAL $ 15,000 $ 725,000 $ 610,000 $ 1,350,000
PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 47100 General Fund 1,350,000 $ 1,350,000
TOTAL $ 1,350,000 $ 1,350,000

PROJECT FINANCING CURRENT PROPOSED
Project Category: Community Facilities Improvements
Location: Citywide
Project Manager: A. Morris
Project Priority: 1E - Mandatory
Est. Completion Date: 2026/27
Future Annual
O & M Impact: $0
Public Art
Requirement: Exempt
General Plan Policy: CIR 1-1, CIR 1-2, CIR-4, CSF 2-1, CSF 2-2, CSF 3-1, ED 1-2, ED 1-5, FI 1-1, FI
1-2, FI 1-3, IF 1-1, IF 2-1, IF 3-1, LU 1-
3, LU 1-4, LU 3-1, LU 4-1, LU 5-1, N 1-
1 Exhibit C

1 City of Brentwood 2024/25 – 2028/29 Capital Improvement Program Project Title: Project #:

Windsor Way Park Playground Replacement
Description/Justification:

Replace play equipment in Windsor Way Park to meet current ADA accessibility guidelines and Consumer Product Safety Commission guidelines. Resilient safety surfacing in playground areas will be renovated. Replacement play equipment parts can become unavailable and may create a situation where the playgrounds no longer meet either the current Consumer Product Safety Commission guidelines on safety or the current ADA guidelines. The play equipment at Windsor Way Park was constructed in 1999.

Project Status:

The design and construction phase of this project is anticipated to begin in FY 2024/25.

Supplemental Information:

The City's goal is to bring older park play equipment up to current requirements and standards.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 70239 Legal 3,000 $ 3,000
90040 Planning and Design 500 $ 500
90050 Construction 207,500 $ 207,500
TOTAL 211,000 $ 211,000 $
PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 47708 Replacement - Parks and LLAD 211,000 $ 211,000
TOTAL 211,000 $ 211,000 $

PROJECT FINANCING CURRENT PROPOSED

Project Category: Parks and Trails Improvements
Location: Windsor Way
Project Manager: B. Johnson
Project Priority: 1C – Mandatory
Est. Completion Date: 2024/25
Future Annual
O & M Impact: $0
Public Art
Requirement: Exempt
General Plan Policy: CSF 2-7

City of Brentwood 2024/25 – 2028/29 Capital Improvement Program Project Title: Project #:

Aquatic Complex Locker Rooms Remodeling
Description/Justification:

Remodel locker rooms at the Brentwood Family Aquatic Complex (BFAC). The locker rooms were constructed in 1999.

Project Status:

The design and construction phase of this project is anticipated to begin in FY 2025/26.

Supplemental Information:

None.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 70239 Legal 3,000 $ 3,000
90040 Planning and Design 5,000 $ 5,000
90050 Construction 432,000 $ 432,000
TOTAL 440,000 $ 440,000 $
PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 47704 Replacement - Facilities 440,000 $ 440,000
TOTAL 440,000 $ 440,000 $

PROJECT FINANCING CURRENT PROPOSED
Project Category: Parks and Trails Improvements
Location: 195 Griffith Lane
Project Manager: C. Lopes
Project Priority: 2C - Necessary
Est. Completion Date: 2025/26
Future Annual
O & M Impact: $0
Public Art
Requirement: Exempt
General Plan Policy: CSF 2-7

City of Brentwood 2024/25 – 2028/29 Capital Improvement Program Project Title: Project #:

Basketball Court Lighting – Homecoming & Windsor Parks
Description/Justification:

Based on City Council direction, explore the feasibility of adding court lighting on the Windsor Way Park and Homecoming Park basketball courts. Analysis will include a review of the neighborhood park and community park guidelines, Municipal Code guidelines, available parking, estimated cost, environmental review process and any other neighborhood considerations that will help the City Council assess the feasibility of adding lights to the basketball courts.

Project Status:

City Council is exploring the consideration of lights at the parks and a placeholder for cost is being added for lights to move forward with Council approval.

Supplemental Information:

Municipal Code 7.02.090 states that all parks within the city shall be open from sunrise until sunset unless otherwise posted. There is currently no infrastructure for lighting at the two park locations.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 70239 Legal 5,000 $ 5,000
90040 Planning and Design 84,600 $ 84,600
90050 Construction 306,000 306,000 $ 612,000
TOTAL 395,600 $ 306,000 $ 701,600 $
PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 47100 General Fund 395,600 306,000 $ 701,600
TOTAL 395,600 $ 306,000 $ 701,600 $

PROJECT FINANCING CURRENT PROPOSED

Project Category: Parks and Trails Improvements
Location: Homecoming Way & Windsor Way
Project Manager: B. Johnson
Project Priority: 3C - Desirable
Est. Completion Date: 2025/26
Future Annual
O & M Impact: $0
Public Art
Requirement: Exempt
General Plan Policy: CSF 2-7

City of Brentwood 2024/25 – 2028/29 Capital Improvement Program Project Title: * MULTI-YEAR * Project #:

Solid Waste Organics Diversion 542-54021
Description/Justification:

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, SB1383 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 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.

Project Status:

A design-build contract for this project has been finalized and approved by City Council on 01/23/24, by Resolution 2024-08.

Design is expected to take approximately 8 months and construction is planned to begin December 2024.

Supplemental Information:

SB 1383 was passed as a means to reduce climate pollution caused by the decomposition of organic waste in landfills. Organic waste includes yard and food waste and wastewater biosolids, among other things. Currently, the City’s organic waste is disposed of in local landfills. In order to comply with SB 1383 requirements, the City will have to find alternative means of disposal by 2025. Several options to meet this requirement will be explored, including composting, and extraction, digestion, and energy recovery. Some compliance alternatives have the added benefit of generating energy that can be harnessed and used in various ways. The initial planning and design work is proposed to begin in FY 2023/24 and will be funded by the Solid Waste Enterprise ($1,167,200) and Wastewater Enterprise ($291,800). Future funding for this project will come from the Solid Waste and Wastewater Enterprise Funds and the City will actively pursue any grant funding for this project if it becomes available. It is anticipated future funding for this project will come through loan or bond financing, to be repaid with future Solid Waste and Wastewater Enterprise revenues. Renewable energy could generate annual revenue up to $5.6M from the sale of renewable natural gas; and an additional revenue source estimated at $1M-$2M annually may also be available from tipping fees generated by the acceptance of high strength organic waste. This project was included in the City’s Strategic Plan for FY 2022/23 - FY 2023/24.

PROJECT EXPENDITURES Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 70239 Legal 20,000 $ 20,000
90040 Planning and Design 1,200,000 1,164,000 $ 2,364,000 90050 Construction 44,200,000 40,675,000 $ 84,875,000
90070 Project Administration 1,500,000 1,500,000 $ 3,000,000 TOTAL 1,200,000 $ 46,884,000 $ 42,175,000 $ 90,259,000 $ PROJECT FUNDING Prior 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 47-Var Enterprise 1,200,000 259,000 $ 1,459,000
Other 46,625,000 42,175,000 $ 88,800,000
TOTAL 1,200,000 $ 46,884,000 $ 42,175,000 $ 90,259,000 $

PROJECT FINANCING CURRENT PROPOSED

Project Category: Community Facilities Improvements
Location: Solid Waste Transfer Station, 2301
Elkins Way
Project Manager: C. Wichert
Project Priority: 1B - Mandatory
Est. Completion Date: 2025/26
Future Annual
O & M Impact: TBD
Public Art
Requirement: Exempt
General Plan Policy: IF 1-1, IF 5-2, IF 5-3, IF 5-4

150 City Park Way
Brentwood, CA 94513

OPERATING
BUDGET
2024/25 - 2025/26

EXHIBIT B

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 and Equipment 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.......................................................................................................................................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
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”

16 2024/25 – 2025/26 Operating Budget
Introduction
June 2024
The Honorable Mayor, Members of the City Council and Citizens of Brentwood Brentwood, California 94513
Dear Mayor Bryant, Members of the City Council and Citizens of Brentwood:

I am pleased to submit to you a balanced two-year budget for the City of Brentwood covering fiscal years 2024/25 and 2025/26. This budget prioritizes quality of life for our citizens and continues to support the delivery of high quality and essential services to our residents while maintaining appropriate levels of reserves and fiscal responsibility.

Increasing housing values and increased consumer demand for goods and services have been positive factors in strengthening the City’s financial position over the past several years. However, property taxes are projected to grow more moderately in the coming years as higher interest rates have resulted in slower sales activity and price appreciation. Sales tax revenues are expected to be almost flat in the first year of the budget, as inflation has an impact on consumer demand, but are expected to rise considerably in the second year of the budget from the anticipated opening of a new Costco location in Brentwood.

Through this budget, the City is also able to expand everyday services offered to our community.

Funding for ten new positions, eight of which will be added in the City’s Enterprise funds, will allow for additional services, including a new sewer infrastructure maintenance program, additional staff for solid waste operations due to growth, additional resources for the enforcement of new and existing ordinances, along with resources for maintaining technology infrastructure and administering a diversity, equity and inclusion program.

The City Council’s strategic planning process focuses on our ability to continue providing great quality of life to our residents, businesses and visitors. The City of Brentwood Strategic Plan FY 2022/23 – FY 2023/24 (“Strategic Plan”), adopted in February 2022, is the most recent Strategic Plan and includes numerous initiatives and capital projects in support of the Council’s vision for the future of the City. This Budget includes the funding and appropriations necessary to complete several carryover initiatives from the current Strategic Plan, including work leading to the construction of the Solid Waste Organics Diversion project, the Sand Creek Sports Complex, the Vineyards at Marsh Creek - Event Center/Amphitheater, and the Innovation Center @ Brentwood Infrastructure project with the goal of bringing a significant number of jobs to the City.

Despite the strong economic recovery currently in place, there are signs that the economy may be slowing. Although the expectations about a recession in 2023 did not arise, the 2024 economic outlook is uncertain and there is a good possibility of a general economic slowdown, as the higher cost of both government and personal borrowing may crowd out consumer spending, which is the primary driver of the US economy. Although inflationary pressures appear to be cooling, the recent period of persistently high inflation has led to a higher cost to provide services to the public and the cost to build infrastructure has risen at an unprecedented pace. With limitations on revenue

17 2024/25 – 2025/26 Operating Budget
Introduction
generation, the City’s revenue growth may not keep pace if inflation remains high. The City’s contracts with labor groups are expiring on June 30, 2024 and although placeholder costs for increases in compensation with these groups have been included in the budget, any contracts which settle above this placeholder would have a negative impact on the budget.

Adding to the uncertainty, the State continues to pass regulatory requirements without accompanying necessary funding. Costs for compliance in the area of solid waste organics processing has already had impacts on the budget, but additional regulation like mandating electric vehicle fleets is among the many factors that could add significant infrastructure and ongoing costs to City operations.

In recognition of potential future economic challenges, this budget ensures the City is positioned for a strong fiscal future. The City’s General Fund 30% reserve is maintained, not only through this twoyear budget, but also for the entirety of the Ten-Year General Fund Fiscal Model projections. The City Council policy of continually paying down pension and retiree medical obligations has led to the City’s funded pension percentage being well above the average in California. The funded retiree medical percentage is also trending upwards. This budget continues the strategy of paying down City liabilities with an additional $4.0 million payment over the two-year budget period to further reduce the City’s pension liabilities.

I would like to thank the City Council for their vision for the future and attention to financial management policies that will assure long-term sustainability. I would especially like to express my appreciation to all of the City of Brentwood staff members who have taken the time to develop this budget. A great deal of effort and attention to detail has gone into the preparation of this document, representing many hours of work throughout the organization. A special thanks to the staff in the Finance and Information Systems Department for their work in preparing this budget which will serve as the City’s fiscal blueprint for the next two years.

It is my pleasure and honor to serve the City Council, staff and this community.

Sincerely,
Tim Ogden
City Manager

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 $382.0 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, the Comprehensive General Plan Update project, a capital project on Brentwood Boulevard and the Successor Agency Payment Plan in FY 2024/25.

Other
Transfers Out – 3%
Community Services – 2%
Successor Agency – 2%
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 and one new Equity Analyst position. The Code Enforcement Officer 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. The Equity Analyst position is included in the budget to assist in creating and maintaining diversity, equity, belonging and inclusion programs citywide. Including these new positions, 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

20 2024/25 – 2025/26 Operating Budget
Introduction
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 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 $3.9 million is budgeted to be transferred to the General Fund in FY 2024/25

21 2024/25 – 2025/26 Operating Budget
Introduction
and $3.0 million in FY 2025/26; however, budgetary expenditure savings have significantly reduced or eliminated the need for such a transfer in past fiscal years. • 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.

22 2024/25 – 2025/26 Operating Budget
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 cost 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.

25 2024/25 – 2025/26 Operating Budget
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

26 2024/25 – 2025/26 Operating Budget
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.

27 2024/25 – 2025/26 Operating Budget
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.

28 2024/25 – 2025/26 Operating Budget
Introduction
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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Introduction
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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Introduction
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

31 2024/25 – 2025/26 Operating Budget
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
Introduction
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

33 2024/25 – 2025/26 Operating Budget
Introduction
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.

34 2024/25 – 2025/26 Operating Budget
Introduction

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

35 2024/25 – 2025/26 Operating Budget
Introduction
• 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.

36 2024/25 – 2025/26 Operating Budget
Introduction
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.

37 2024/25 – 2025/26 Operating Budget
Introduction

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 $ 70,048,683 $ 71,343,323 $ 30,491,280 $ 77,365,510 $ 80,157,764 $ 27,699,026 $ 80,174,954 $ 79,511,133 $ 28,362,847 Solid Waste Enterprise 26,510,862 19,692,440 17,992,132 28,211,170 20,603,543 20,490,536 28,324,177 21,318,928 20,586,196 29,056,909 Water Enterprise 163,799,125 30,119,894 32,839,788 161,079,231 32,416,943 38,382,942 155,113,232 34,511,552 39,712,037 149,912,747 Wastewater Enterprise 164,208,507 17,609,333 18,456,023 163,361,817 18,075,214 20,116,923 161,320,108 18,458,645 23,825,825 155,952,928 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 23,240,561 30,491,766 64,217,037 24,811,950 33,347,616 55,681,371 23,887,081 31,125,905 48,442,547 Special Revenue Funds (3) 62,445,521 57,480,103 69,553,198 50,372,426 59,113,507 63,475,771 46,010,162 62,966,847 73,598,825 35,378,184 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 56,870,828 55,336,723 79,387,663 67,677,542 117,815,086 29,250,119 67,633,132 81,708,162 15,175,089 $ 624,375,812 $ 282,998,493 $ 304,130,575 $ 603,243,730 $ 308,273,382 $ 382,010,546 $ 529,506,566 $ 317,228,031 $ 358,326,928 $ 488,407,669 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 $ 603,243,730 $ 529,506,566 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 7,327,663 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 11,800,603 11,785,246 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 98,220,892 111,718,561 112,755,890 Total Revenues and Other Financing Sources 302,016,866 263,248,031 282,998,493 308,273,382 317,228,031 Expenditures and Other Financing Uses
General Government 9,904,196 12,240,325 10,790,887 13,061,756 13,125,967 Public Safety 28,898,714 33,097,328 30,911,814 33,601,812 35,037,422 Community Development 6,557,172 8,111,313 6,904,059 8,469,084 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 17,420,403 18,247,283 Enterprise Funds 53,270,529 65,207,123 60,264,938 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 27,698,289 27,170,151 25,704,384 Debt Service - Principal 10,374,616 8,441,017 8,441,017 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 50,442,200 115,819,497 79,689,954 Transfers Out 116,104,226 78,903,167 72,082,479 63,377,975 68,853,416 Total Expenditures and Other Financing Uses 303,542,345 361,066,922 304,130,575 382,010,546 358,326,928 Ending Fund Balances $ 624,375,812 $ 526,556,921 $ 603,243,730 $ 529,506,566 $ 488,407,669

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 5,262,141 0 0 11,785,246 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 36,571,659 3,199,711 123,753 196,554,821 Transfers In 16,170,747 1,188,497 504,086 22,541,848 3,759,594 67,553,789 111,718,561 Total Revenues and Transfers In 77,365,510 72,345,568 24,811,950 59,113,507 6,959,305 67,677,542 308,273,382 Expenditures
General Government 11,197,327 0 0 1,864,429 0 0 13,061,756 Public Safety 33,276,812 0 0 325,000 0 0 33,601,812
Community Development 8,050,017 0 0 314,595 104,472 0 8,469,084 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 9,523,070 0 0 7,897,333 0 0 17,420,403 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 27,170,151 0 0 0 27,170,151
Debt Service 1,679,949 3,130,196 0 961,234 5,848,398 0 11,619,777 Capital Outlay 0 0 0 0 0 115,819,497 115,819,497
Total Expenditures 74,375,283 73,268,804 27,170,151 22,045,966 5,952,870 115,819,497 318,632,571 Transfers Out 5,782,481 6,948,870 6,177,465 41,429,805 1,043,765 1,995,589 63,377,975 Total Expenditures and Transfers Out 80,157,764 80,217,674 33,347,616 63,475,771 6,996,635 117,815,086 382,010,546 Net Result of Operations (2,792,254) (7,872,106) (8,535,666) (4,362,264) (37,330) (50,137,544) (73,737,164) Beginning Balance - 7/01/24 30,491,280 357,660,566 64,217,037 50,372,426 21,114,758 79,387,663 603,243,730 Fund Balance - 6/30/25 $ 27,699,026 $ 349,788,460 $ 55,681,371 $ 46,010,162 $ 21,077,428 $ 29,250,119 $ 529,506,566

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 $ 30,491,280 $ 61,194,763 $ 16,170,747 $ 74,375,283 $ 5,782,481 $ 27,699,026 Enterprise Funds
540,543 Solid Waste Enterprise 28,211,170 20,603,543 0 20,001,217 489,319 28,324,177 560,563 Water Enterprise 161,079,231 32,066,943 350,000 33,872,231 4,510,711 155,113,232 590,593 Wastewater Enterprise 163,361,817 18,075,214 0 18,203,083 1,913,840 161,320,108 510,511,513 Housing Enterprise 5,008,348 411,371 838,497 1,192,273 35,000 5,030,943 Total Enterprise Funds 357,660,566 71,157,071 1,188,497 73,268,804 6,948,870 349,788,460 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 0 10,423,683 705 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 491,797 2,072,933 0 2,343,016 0 221,714 708 Parks and LLAD Replacement 25,615,965 1,721,152 222,248 1,228,449 1,729,243 24,601,673 709 Insurance 388,337 4,127,121 0 4,127,121 0 388,337
710 Pension/OPEB Obligation 11,496,447 4,271,541 281,838 5,388,552 4,306,222 6,355,052 Total Internal Service Funds 64,217,037 24,307,864 504,086 27,170,151 6,177,465 55,681,371 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 372,815 297,250 0 296,550 309,847 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) 7,222,066 1,775,419 0 1,240,930 1,296,589 6,459,966 251 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 50,372,426 36,571,659 22,541,848 22,045,966 41,429,805 46,010,162 (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 2,602,000 7,626,241 0 7,164,015 352 Parks and Trails Improvements 19,119,957 0 1,650,791 12,099,511 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 0 0 0 0 0 0
542 Solid Waste Improvements 0 0 46,884,000 46,884,000 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 79,387,663 123,753 67,553,789 115,819,497 1,995,589 29,250,119 Total All Funds $ 603,243,730 $ 196,554,821 $ 111,718,561 $ 318,632,571 $ 63,377,975 $ 529,506,566 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 $ 70,048,683 $ 77,365,510 9.16% $ 80,174,954 3.63% Enterprise Funds
Solid Waste Enterprise 18,706,211 18,941,097 19,692,440 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 23,240,561 24,811,950 10.52% 23,887,081 -3.73% Special Revenue Funds 59,383,480 56,804,165 57,480,103 59,113,507 4.07% 62,966,847 6.52% 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 56,870,828 67,677,542 73.84% 67,633,132 -0.07% Total Revenues $ 302,016,866 $ 263,248,031 $ 282,998,493 $ 308,273,382 17.10% $ 317,228,031 2.90% 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 $ 71,343,323 $ 80,157,764 3.76% $ 79,511,133 -0.81% Enterprise Funds
Solid Waste Enterprise 15,099,508 20,654,531 17,992,132 20,490,536 -0.79% 20,586,196 0.47% Water Enterprise 35,175,109 34,136,050 32,839,788 38,382,942 12.44% 39,712,037 3.46% Wastewater Enterprise 31,346,654 20,056,133 18,456,023 20,116,923 0.30% 23,825,825 18.44% 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 30,491,766 33,347,616 -5.24% 31,125,905 -6.66% Special Revenue Funds 90,483,589 75,328,726 69,553,198 63,475,771 -15.73% 73,598,825 15.95% 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 55,336,723 117,815,086 30.85% 81,708,162 -30.65% Total Expenditures $ 303,542,345 $ 361,066,922 $ 304,130,575 $ 382,010,546 5.80% $ 358,326,928 -6.20% (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 $ 43,770,996 3.89% $ 45,768,779 4.56% Overtime (1) 1,634,948 1,555,692 1,640,114 1,653,212 6.27% 1,701,846 2.94% Part-time (1) 1,763,013 1,949,393 2,029,577 1,810,083 -7.15% 1,871,569 3.40% Benefits (2) 18,951,040 22,584,662 21,175,276 24,829,598 9.94% 25,301,683 1.90% Total Personnel Services 59,339,710 68,222,516 62,408,491 72,063,889 5.63% 74,643,877 3.58% 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 6,778,327 5,920,752 6,899,545 1.79% 7,593,276 10.05% Rentals 61,787 112,232 92,722 72,486 -35.41% 74,126 2.26% Insurance 3,053,310 3,627,057 3,575,105 4,081,075 12.52% 4,282,478 4.94% Special Services 4,320,104 4,974,883 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 108,373 150,625 96,224 166,667 10.65% 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 14,535,420 12,852,104 15,233,588 4.80% 15,705,483 3.10% 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 8,020,893 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 12,314,610 8,171,327 11,619,356 -5.65% 9,762,039 -15.98% Total Supplies and Services 72,520,980 89,425,133 80,739,991 95,330,690 6.60% 99,196,303 4.05% 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 95,460,692 59,844,200 120,561,452 26.29% 84,065,059 -30.27% Debt Service 10,374,616 8,441,017 8,441,017 8,542,323 1.20% 10,143,915 18.75% Transfers 116,104,226 78,903,167 72,082,479 63,377,975 -19.68% 68,853,416 8.64% Total Capital Outlay and Transfers Out 151,434,797 182,804,876 140,367,696 192,481,750 5.29% 163,062,390 -15.28% Total Expenditures $ 303,542,345 $ 361,066,922 $ 304,130,575 $ 382,010,546 5.80% $ 358,326,928 -6.20% (1) Due to record-high personnel vacancies, overtime and part-time costs are projected to exceed budget, however there will be significant savings in regular salaries. Total Personnel Services projections will come in well below budget. (2) 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 $ 44,657,958 $ 41,205,340 $ 47,192,899 $ 49,604,386 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 $ 68,222,516 $ 62,408,491 $ 72,063,889 $ 74,643,877 Annual Percentage Change 5.17% 5.63% 3.58%
2022/23 2023/24 2023/24 2024/25 2025/26
Actual Budget Projected Budget Budget
Supplies and Services
General Fund $ 9,604,628 $ 13,123,519 $ 11,427,724 $ 13,148,225 $ 12,901,582 Enterprise Funds
Solid Waste Enterprise 7,624,131 10,477,818 8,501,163 10,397,377 10,841,775 Water Enterprise 19,974,826 21,369,550 20,816,166 24,406,151 25,407,085 Wastewater Enterprise 7,865,145 8,995,190 8,956,271 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 14,882,488 14,081,767 15,174,482 15,903,509 Special Revenue Funds 13,366,078 16,870,787 14,846,380 18,289,284 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 $ 89,425,133 $ 80,739,991 $ 95,330,690 $ 99,196,303 Annual Percentage Change 11.33% 6.60% 4.05%

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 $ 6,929,037 $ 7,780,657 $ 4,732,518 Enterprise Funds
Solid Waste Enterprise 435,509 2,223,982 1,881,432 972,537 579,999 Water Enterprise 9,544,102 6,126,071 6,034,494 6,943,323 7,239,175 Wastewater Enterprise 18,286,763 5,115,113 4,117,573 2,985,581 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 11,888,701 8,585,489 10,185,069 8,243,838 Special Revenue Funds 73,600,496 55,634,138 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 55,329,742 116,004,693 81,707,778 Total Capital Outlay and Transfers Out $ 151,434,797 $ 182,804,876 $ 140,367,696 $ 192,481,750 $ 163,062,390 Annual Percentage Change -7.31% 5.29% -15.28%

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 $ 30,491,280 $ 27,699,026 $ 28,362,847 $ 28,621,847 $ 29,297,847 $ 29,651,847 $ 30,186,847 $ 30,313,847 $ 31,465,847 Add:

Revenues 58,291,577 61,194,763 64,662,831 65,765,000 67,500,000 69,765,000 71,823,000 74,302,000 76,928,000 79,574,000 Transfers In 11,757,106 16,170,747 15,512,123 12,842,000 13,266,000 15,246,000 14,133,000 14,760,000 14,899,000 15,211,000 Total Revenue 70,048,683 77,365,510 80,174,954 78,607,000 80,766,000 85,011,000 85,956,000 89,062,000 91,827,000 94,785,000 Less:

Expenditures 66,457,562 74,375,283 75,621,512 72,956,000 75,126,000 77,953,000 79,953,000 82,377,000 84,631,000 87,202,000 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 77,483,531 79,173,823 77,173,000 80,043,000 83,256,000 85,421,000 88,009,000 90,432,000 93,177,000 Revenue Over (Under) Appropriations 458,319 (118,021) 1,001,131 1,434,000 723,000 1,755,000 535,000 1,053,000 1,395,000 1,608,000 Non-Operating Transfers Out 1,752,959 2,674,233 337,310 1,175,000 47,000 1,401,000 0 926,000 243,000 860,000 Revenue Over (Under) Appropriations (1,294,640) (2,792,254) 663,821 259,000 676,000 354,000 535,000 127,000 1,152,000 748,000 Fund Balance 6/30 $ 30,491,280 $ 27,699,026 $ 28,362,847 $ 28,621,847 $ 29,297,847 $ 29,651,847 $ 30,186,847 $ 30,313,847 $ 31,465,847 $ 32,213,847 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 $ 30,092,602 $ 30,970,946 $ 32,283,677 $ 32,111,305 $ 32,090,915 $ 32,229,241 $ 32,531,841 $ 32,994,781 $ 33,629,162 Add:

Operating Revenues 19,692,440 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 19,692,440 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 17,361,021 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 17,361,021 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 2,331,419 602,326 826,818 (1,340,063) (1,217,716) (1,089,803) (957,269) (829,651) (691,944) (300,199) Non-Operating Revenues
and Appropriations (631,111) (489,319) (94,086) (60,061) (60,061) (60,061) (60,061) (60,061) (60,061) (60,061) Revenue Over (Under)
Appropriations 1,700,308 113,007 732,732 (1,400,124) (1,277,777) (1,149,864) (1,017,330) (889,712) (752,005) (360,260) Adjustments to Net Assets (1) 1,881,432 765,337 579,999 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) $ 30,092,602 $ 30,970,946 $ 32,283,677 $ 32,111,305 $ 32,090,915 $ 32,229,241 $ 32,531,841 $ 32,994,781 $ 33,629,162 $ 34,690,066 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 $ 167,119,048 $ 168,069,250 $ 170,023,940 $ 174,102,842 $ 179,786,968 $ 185,257,789 $ 189,944,918 $ 194,347,824 $ 198,413,366 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 29,474,729 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 29,474,729 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 295,165 (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 (2,719,894) (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) $ 167,119,048 $ 168,069,250 $ 170,023,940 $ 174,102,842 $ 179,786,968 $ 185,257,789 $ 189,944,918 $ 194,347,824 $ 198,413,366 $ 201,983,961 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 $ 167,483,113 $ 168,375,185 $ 166,981,571 $ 164,404,321 $ 161,605,540 $ 159,335,850 $ 157,752,856 $ 156,955,251 $ 157,183,761 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 14,918,611 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 14,918,611 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 2,690,722 (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) (1,913,840) (2,980,075) (314,385) (4,398,171) (1,714,464) (486,440) (3,232,958) (288,458) (288,458) Revenue Over (Under)
Appropriations (846,690) (2,041,709) (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) $ 167,483,113 $ 168,375,185 $ 166,981,571 $ 164,404,321 $ 161,605,540 $ 159,335,850 $ 157,752,856 $ 156,955,251 $ 157,183,761 $ 158,363,968 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 $ 30,491,280 $ 27,699,026 $ 28,362,847 Enterprise Funds 359,657,995 357,660,566 349,788,460 340,002,622 Internal Service Funds 71,468,242 64,217,037 55,681,371 48,442,547 Special Revenue Funds 62,445,521 50,372,426 46,010,162 35,378,184 Debt Service Funds 21,164,576 21,114,758 21,077,428 21,046,380 Capital Project Funds 77,853,558 79,387,663 29,250,119 15,175,089 Total Fund Balance $ 624,375,812 $ 603,243,730 $ 529,506,566 $ 488,407,669 • 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, the Comprehensive General Plan Update project, 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.

67 2024/25 – 2025/26 Operating Budget
Fund Balances
• 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. • 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 $ 30,491,280 $ 27,699,026 $ Revenues 58,006,709 57,634,994 58,291,577 64,662,831 61,194,763 Transfers In 17,425,949 13,237,633 11,757,106 15,512,123 16,170,747Expenditures (62,203,616) (71,782,077) (66,457,562) (75,621,512) (74,375,283) Transfers Out (12,980,586) (5,473,249) (4,885,761) (3,889,621) (5,782,481) Revenues Over (Under) Expenditures 248,456 (6,382,699) (1,294,640) 663,821 (2,792,254) Fund Balance, End of Year 31,785,920 $ 25,403,221 $ 30,491,280 $ 27,699,026 $ 28,362,847 $ Fund Balance:Restricted
Brentwood Boulevard Improvements 678,000 $ 0 $ 678,000 $ $ 0 0 $ Total Restricted 678,000 0 678,000 0 0
Committed
General Plan Update 261,200 475,200 1,482,700 466,100 242,600 City Council Redistricting 75,000 100,000 100,000 150,000 125,000 Future Capital Projects 0 0 800,000 800,000 800,000
Future Strategic Initiatives 2,415,489 0 374,616 0 075th Anniversary 51,469 0 0 0 0Police Department 5th Beat 2,363,275 663,275 2,363,275 2,363,275 2,363,275Successor Agency Payment Plan 3,611,252 2,087,999 2,087,999 0 687,303 Total Committed 8,777,685 3,326,474 7,208,590 3,779,375 4,218,178 Total Restricted and Committed 3,326,474 9,455,685 7,886,590 3,779,375 4,218,178 Unassigned
Undesignated 22,330,235 22,076,747 22,604,690 24,583,472 23,480,848 Total Unassigned 22,076,747 22,330,235 22,604,690 24,583,472 23,480,848 Percent of Operating Appropriations 30.47% 29.30% 30.00% 30.00% 30.00% Total Fund Balance, End of Year 31,785,920 $ 25,403,221 $ 30,491,280 $ 27,699,026 $ 28,362,847 $

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 $ 19,692,440 $ 17,992,132 $ 28,211,170 $ 20,603,543 $ 20,490,536 $ 28,324,177 $ 21,318,928 $ 20,586,196 $ 29,056,909 560,563 Water Enterprise 163,799,125 30,119,894 32,839,788 161,079,231 32,416,943 38,382,942 155,113,232 34,511,552 39,712,037 149,912,747 590,593 Wastewater Enterprise 164,208,507 17,609,333 18,456,023 163,361,817 18,075,214 20,116,923 161,320,108 18,458,645 23,825,825 155,952,928 501 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 68,444,916 70,442,345 357,660,566 72,345,568 80,217,674 349,788,460 75,574,683 85,360,521 340,002,622

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 1,023,604 10,423,683 1,438,431 1,440,366 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 2,077,118 491,797 2,072,933 2,343,016 221,714 2,199,456 2,301,234 119,936 708 Parks and LLAD Replacement 25,140,456 2,209,373 1,733,864 25,615,965 1,943,400 2,957,692 24,601,673 1,784,242 2,764,792 23,621,123 709 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 4,717,282 8,527,141 11,496,447 4,553,379 9,694,774 6,355,052 3,559,393 7,802,714 2,111,731 Total Internal Service Funds 71,468,242 23,240,561 30,491,766 64,217,037 24,811,950 33,347,616 55,681,371 23,887,081 31,125,905 48,442,547

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 637,019 436,921 701,125 372,815 297,250 606,397 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 5,600,045 2,195,923 7,222,066 1,775,419 2,537,519 6,459,966 2,321,187 6,315,849 2,465,304 251 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 57,480,103 69,553,198 50,372,426 59,113,507 63,475,771 46,010,162 62,966,847 73,598,825 35,378,184 (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 2,602,000 7,626,241 7,164,015 155,500 5,943,775 1,375,740 352 Parks and Trails Improvements 14,264,950 5,804,576 949,569 19,119,957 1,650,791 12,099,511 8,671,237 1,750,598 10,295,975 125,860 366 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) 322,549 0 0 0 0 0 0 0 0 542 Solid Waste Improvements 400,000 800,000 1,200,000 0 46,884,000 46,884,000 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 56,870,828 55,336,723 79,387,663 67,677,542 117,815,086 29,250,119 67,633,132 81,708,162 15,175,089 TOTAL OTHER FUNDS $ 592,589,892 $ 212,949,810 $ 232,787,252 $ 572,752,450 $ 230,907,872 $ 301,852,782 $ 501,807,540 $ 237,053,077 $ 278,815,795 $ 460,044,822 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 9% in FY 2024/25 due primarily to utilizing FY 2023/24 fund balance previously committed for the purpose of funding remaining Strategic Initiative costs, the Comprehensive General Plan Update project, 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 15.8% for FY 2024/25 and

10.6% 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 % Change

GENERAL FUND GENERAL FUND
100 General Fund $ 30,491,280 $ 27,699,026 $ (2,792,254) -9.16% 100 General Fund $ 27,699,026 $ 28,362,847 $ 663,821 2.40%

ENTERPRISE FUNDS ENTERPRISE FUNDS
560, 563 Water Enterprise 161,079,231 155,113,232 (5,965,999) -3.70% 560, 563 Water Enterprise 155,113,232 149,912,747 (5,200,485) -3.35%

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 411,673,219 346,694,308 (64,978,911) -15.78% xxx All Other Non-Major Funds 346,694,308 310,132,075 (36,562,233) -10.55%

72 2024/25 – 2025/26 Operating Budget
Revenues
FY 2024/25 GENERAL FUND REVENUE BY CATEGORY
$77.4 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 11,757,106 16,170,747 22.16% 15,512,123 -4.07% TOTAL GENERAL FUND REVENUE $ 75,432,659 $ 70,872,627 $ 70,048,683 $ 77,365,510 $ 80,174,954 Annual Percentage Change -7.14% 9.16% 3.63%

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 73,018 3,909,391 3,017,078 Total Transfers In $ 11,757,106 $ 16,170,747 $ 15,512,123

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 $ 22.83% $ 16,404,824 21.20% $ 17,069,676 21.29% Sales Tax 11,191,139 14.84% 11,234,935 16.04% 11,553,212 14.93% 13,296,409 16.58% Community Facilities District Assessments 7,467,616 9.90% 7,969,262 11.38% 8,460,696 10.94% 8,756,714 10.92% Motor Vehicle In-Lieu Tax 5,969,216 7.91% 6,285,149 8.97% 6,436,105 8.32% 6,659,790 8.31% Development Fees 4,444,883 5.89% 4,302,222 6.14% 5,416,302 7.00% 5,868,104 7.32% Parks and Recreation Property Tax 3,261,794 4.32% 3,377,583 4.82% 3,404,323 4.40% 3,507,123 4.37% Gas Tax 1,683,819 2.23% 1,736,004 2.48% 1,927,766 2.49% 1,789,845 2.23% Parks and Recreation Program Fees 1,701,766 2.26% 1,690,219 2.41% 1,842,572 2.38% 1,894,094 2.36% Franchise Fees 1,649,986 2.19% 1,679,459 2.40% 1,747,121 2.26% 1,819,519 2.27% 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
$308.3 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 $ 70,048,683 $ 77,365,510 9.16% $ 80,174,954 3.63% Total General Fund 75,432,657 70,872,627 70,048,683 77,365,510 9.16% 80,174,954 3.63%

ENTERPRISE FUNDS
540,543 Solid Waste Enterprise 18,706,211 18,941,097 19,692,440 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 68,444,916 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 4,717,282 4,553,379 -5.68% 3,559,393 -21.83% Total Internal Service Funds 23,310,751 22,450,770 23,240,561 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 688,123 285,006 436,921 297,250 4.30% 175,550 -40.94% 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 5,600,045 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 57,480,103 59,113,507 4.07% 62,966,847 6.52%

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 2,602,000 87.14% 155,500 -94.02% 352 Parks and Trails Improvements 13,945,297 6,437,685 5,804,576 1,650,791 -74.36% 1,750,598 6.05% 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 0 322,549 0 0.00% 0 0.00% 542 Solid Waste Improvements 3,145 800,000 800,000 46,884,000 5760.50% 42,175,000 -10.04% 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 56,870,828 67,677,542 73.84% 67,633,132 -0.07% TOTAL FUNDS $ 302,016,866 $ 263,248,031 $ 282,998,493 $ 308,273,382 17.10% $ 317,228,031 2.90%

89 2024/25 – 2025/26 Operating Budget
Expenditures
FY 2024/25 GENERAL FUND EXPENDITURE SUMMARY
$80.2 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 3,340,014 4.46% 3,111,128 -6.85% 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 2,261,337 13.74% 2,331,790 3.12% Parks and Recreation 7,847,360 9,265,248 8,585,457 9,506,542 2.60% 9,839,546 3.50% 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 4,885,761 5,782,481 5.65% 3,889,621 -32.73% TOTAL GENERAL FUND EXPENDITURES $ 75,184,202 $ 77,255,326 $ 71,343,323 $ 80,157,764 $ 79,511,133 Annual Percentage Change -5.11% 3.76% -0.81%

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 Comprehensive General Plan Update 0 1,350,000 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 Basketball Court Lighting – Homecoming & Windsor Parks 0 395,600 306,000 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 Total Transfers Out $ 4,885,761 $ 5,782,481 $ 3,889,621

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 $ 44,657,958 $ 41,205,340 $ 47,192,899 5.68% $ 49,604,386 5.11% Supplies and Services 9,604,628 13,123,519 11,427,724 13,148,225 0.19% 12,901,582 -1.88% 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 1,998,176 -9.97% 842,897 -57.82% SUBTOTAL GENERAL FUND OPERATIONS 62,203,616 71,782,077 66,457,562 74,375,283 3.61% 75,621,512 1.68% Transfers Out 12,980,586 5,473,249 4,885,761 5,782,481 5.65% 3,889,621 -32.73% TOTAL GENERAL FUND EXPENDITURES $ 75,184,202 $ 77,255,326 $ 71,343,323 $ 80,157,764 $ 79,511,133 Annual Percentage Change -5.11% 3.76% -0.81%
Total General Fund Budgeted Employee Allocation 211.93 211.93 211.93 214.23 214.23 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 $47.2 million, which is a 5.7% 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 two new full-time employees. In FY 2025/26, personnel expenditures increase to $49.6 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, two new full-time employees have been added: 1) a Code Enforcement Officer position 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 and 2) an Equity Analyst position to assist in creating and maintaining diversity, equity, belonging and inclusion programs citywide.

94 2024/25 – 2025/26 Operating Budget
Expenditures
Supplies and Services
The FY 2024/25 budget for supplies and services increases 0.2% from the FY 2023/24 budget. Increases in costs related to on-going City operations of $0.4 million (or 3.6%), due to higher utilities costs, escalating software services costs from technology shifting to cloud-based subscriptions and general inflationary pressures, are offset by a $0.4 million reduction in other supplies and services from the completion of certain FY 2022/23 – FY 2023/24 Strategic Plan initiatives in the prior year. The FY 2025/26 budget for supplies and services decreases $0.2 million (or 1.9%) primarily due to the completion of carryover strategic initiatives in FY 2024/25, not recurring in FY 2025/26.

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 $1,191 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 two full-time employees. 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
$382.0 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 $ 71,343,323 $ 80,157,764 $ 79,511,133 Enterprise Funds 82,848,520 70,442,345 80,217,674 85,360,521 Internal Service Funds 21,442,820 30,491,766 33,347,616 31,125,905 Special Revenue Funds 90,483,589 69,553,198 63,475,771 73,598,825 Debt Service Funds 6,681,915 6,963,220 6,996,635 7,022,382 Capital Project Funds 26,901,299 55,336,723 117,815,086 81,708,162 Total Expenditures $ 303,542,345 $ 304,130,575 $ 382,010,546 $ 358,326,928 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 $46.9 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.