735 Transportation Partnership
4401 Investment Earnings City Pool (2) (2) - -
4404 Change in Fair Value of Invts - 3 - -
735 Transportation Partnership Total (2) 2 - -
736 Other Transportation Program
4611 Federal Grant - Other (3,265,995) (327,187) - (12,772,000) 4701 Grant - Other Agency (1,985) - - -
5999 Transfers In (960) - - -
736 Other Transportation Program Total (3,268,939) (327,187) - (12,772,000)
741 Prop 1B Highway Safety
4401 Investment Earnings City Pool (21) (18) - - 4404 Change in Fair Value of Invts - 30 - -
741 Prop 1B Highway Safety Total (21) 12 - -
Grand Total, All Funds (764,773,005) (573,527,677) (522,007,689) (548,300,569)
AUTHORIZED
POSITIONS BY
DEPARTMENT
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
301
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Administration – General Fund
Asst City Manager/Admin 1.00 0.00 0.00 1.00
City Manager 1.00 0.00 0.00 1.00
Communications/Special Events Coordinator 1.00 0.00 0.00 1.00 Community Engagement Specialist 0.00 1.00 0.00 1.00 Deputy City Manager 2.00 0.00 0.00 2.00
Executive Secretary 1.00 0.00 0.00 1.00
Marketing & Communications Mgr 1.00 0.00 0.00 1.00 Public Information Specialist 1.00 0.00 0.00 1.00 Special Projects Manager 1.00 1.00 0.00 2.00
Sr Management Analyst 1.00 (1.00) 0.00 0.00
Administration – General Fund Total 10.00 1.00 0.00 11.00
Animal Care Facility – General Fund
Animal Care Facility Manager 1.00 0.00 0.00 1.00 Animal Care Facility Supervisor 1.00 0.00 0.00 1.00 Animal Care Specialist 4.00 0.00 0.00 4.00
Animal Care Supervisor 1.00 0.00 0.00 1.00
Animal Control Officer 3.00 0.00 0.00 3.00
Animal Ctrl Officer Supervisor 1.00 0.00 0.00 1.00 Animal Services Specialist 2.00 0.00 0.00 2.00
Director of Animal Services 1.00 0.00 0.00 1.00 Management Analyst II 1.00 0.00 0.00 1.00
Office Specialist 2.00 0.00 0.00 2.00
Registered Veterinary Tech 4.50 0.00 0.00 4.50
Sr Animal Care Specialist 2.00 0.00 0.00 2.00
Sr Fiscal Office Specialist 1.00 0.00 0.00 1.00 Sr Office Specialist 1.00 0.00 0.00 1.00
Veterinarian (Permitted) 1.75 0.00 0.00 1.75
Animal Care Facility – General Fund Total 27.25 0.00 0.00 27.25
City Attorney – General Fund
Asst City Attorney 1.00 0.00 0.00 1.00
City Attorney (Elected) 1.00 0.00 0.00 1.00
City Attorney Investigator 1.00 0.00 0.00 1.00
Deputy City Attorney II 2.00 0.00 0.00 2.00
Deputy City Attorney III 5.00 0.00 0.00 5.00
Executive Secretary 1.00 0.00 0.00 1.00
Law Office Manager 1.00 0.00 0.00 1.00
Legal Assistant 1.00 0.00 0.00 1.00
Paralegal 1.00 0.00 0.00 1.00
Sr Asst City Attorney 1.00 0.00 0.00 1.00
Sr Legal Assistant 1.00 0.00 0.00 1.00
Sr Risk Management Specialist 1.00 0.00 0.00 1.00 City Attorney – General Fund Total 17.00 0.00 0.00 17.00
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
302
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
City Clerk – General Fund
Assistant City Clerk 1.00 0.00 (1.00) 0.00
City Clerk 1.00 0.00 0.00 1.00
City Clerk Analyst 1.00 0.00 (1.00) 0.00
Deputy City Clerk II 2.00 1.00 0.00 3.00
Deputy Director, City Clerk Services 0.00 0.00 2.00 2.00 Fiscal Office Specialist 1.00 0.00 0.00 1.00
Records Manager 0.00 0.00 1.00 1.00
Sr Records Specialist 1.00 0.00 0.00 1.00
City Clerk – General Fund Total 7.00 1.00 1.00 9.00
City Council – General Fund
Admin Secretary (Mayor, At Will) - Frozen/Unfunded 1.00 0.00 0.00 1.00 Chief of Staff 1.00 0.00 0.00 1.00
Councilperson 4.00 0.00 0.00 4.00
Executive Secretary 1.00 0.00 0.00 1.00
Mayor 1.00 0.00 0.00 1.00
Policy Aide 1.00 0.00 0.00 1.00
Sr Council Asst 5.00 0.00 0.00 5.00
City Council – General Fund Total 14.00 0.00 0.00 14.00
Development Services – General Fund
Assistant Dir Development Srvcs 1.00 0.00 0.00 1.00 Associate Planner 2.00 0.00 0.00 2.00
Code Enforcement Manager 0.00 0.00 1.00 1.00
Code Enforcement Officer II 7.00 1.00 (1.00) 7.00 Development Srvcs Dept Director 1.00 0.00 0.00 1.00 Development Srvcs Tech II 1.00 0.00 0.00 1.00
Office Specialist 1.00 0.00 0.00 1.00
Principal Management Analyst 1.00 0.00 0.00 1.00 Principal Planner 1.00 0.00 0.00 1.00
Sr Administrative Secretary 1.00 0.00 0.00 1.00 Sr Code Enforcement Officer 2.00 0.00 0.00 2.00 Sr Office Specialist 1.00 0.00 0.00 1.00
Sr Planning Technician 1.00 0.00 0.00 1.00
Development Services – General Fund Total 20.00 1.00 0.00 21.00
CV Housing Authority Fund
Housing Manager 1.00 (1.00) 0.00 0.00
Management Analyst II 3.00 (3.00) 0.00 0.00
Principal Management Analyst 1.00 (1.00) 0.00 0.00 Sr Management Analyst 1.00 (1.00) 0.00 0.00
Sr Planner 1.00 (1.00) 0.00 0.00
CV Housing Authority Fund Total 7.00 (7.00) 0.00 0.00
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
303
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Development Services Fund
Assistant Planner 1.00 0.00 0.00 1.00
Assoc Engineer 5.00 0.00 0.00 5.00
Assoc Plan Check Engineer 4.00 0.00 0.00 4.00
Associate Planner 5.00 0.00 0.00 5.00
Building Inspection Mgr 1.00 0.00 0.00 1.00
Building Inspector II 7.00 0.00 0.00 7.00
Building Inspector III 2.00 0.00 0.00 2.00
Building Off/Code Enf Mgr 1.00 0.00 0.00 1.00
Development Automation Spec 1.00 0.00 0.00 1.00 Development Project Manager 0.00 1.00 0.00 1.00 Development Services Counter Mgr 1.00 0.00 0.00 1.00 Development Services Tech I 1.00 0.00 0.00 1.00 Development Services Tech II 5.00 0.00 0.00 5.00 Development Services Tech III 3.00 0.00 0.00 3.00 Facilities Financing Manager 1.00 0.00 0.00 1.00 Landscape Architect 4.00 0.00 0.00 4.00
Landscape Inspector 1.00 0.00 0.00 1.00
Management Analyst II 1.00 0.00 0.00 1.00
Plan Check Supervisor 1.00 0.00 0.00 1.00
Planning Manager 1.00 0.00 0.00 1.00
Principal Civil Engineer 1.00 0.00 0.00 1.00
Principal Landscape Architect 1.00 0.00 0.00 1.00 Principal Planner 1.00 0.00 0.00 1.00
Secretary 1.00 0.00 0.00 1.00
Sr Building Inspector 1.00 0.00 0.00 1.00
Sr Civil Engineer 2.00 0.00 0.00 2.00
Sr Engineering Technician 1.00 0.00 0.00 1.00
Sr Landscape Inspector 1.00 0.00 0.00 1.00
Sr Plan Check Technician 1.00 0.00 0.00 1.00
Sr Planner 5.00 0.00 0.00 5.00
Sr Project Coordinator 1.00 0.00 0.00 1.00
Sr Secretary 1.00 0.00 0.00 1.00
Transportation Engineer W/Cert 1.00 0.00 0.00 1.00 Development Services Fund Total 64.00 1.00 0.00 65.00
Development Services – General Fund Total 20.00 1.00 0.00 21.00
Development Services – Non-General Fund Total 71.00 (6.00) 0.00 65.00
Economic Development – General Fund
Administrative Technician 1.00 0.00 0.00 1.00
Chief Sustainability Officer 1.00 0.00 0.00 1.00 Conservation Specialist II 5.00 0.00 (2.00) 3.00 Director of Econ Development - Frozen/Unfunded 1.00 (1.00) 0.00 0.00 Economic Development Manager 0.00 1.00 0.00 1.00 Environmental Sustainability Mgr 1.00 0.00 0.00 1.00 City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
304
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Principal Economic Development Specialist 1.00 0.00 0.00 1.00 Sr Economic Dev Specialist 1.00 0.00 0.00 1.00
Economic Development – General Fund Total 11.00 0.00 (2.00) 9.00
Environmental Services Fund
Conservation Specialist II 0.00 0.00 2.00 2.00
Environmental Services Mgr 1.00 0.00 0.00 1.00
Recycling Specialist I 1.00 0.00 (1.00) 0.00
Recycling Specialist II 5.00 0.00 0.00 5.00
Sr Recycling Specialist 1.00 0.00 0.00 1.00
Environmental Services Fund Total 8.00 0.00 1.00 9.00
Economic Development – General Fund Total 11.00 0.00 (2.00) 9.00
Economic Development – Non-General Fund Total 8.00 0.00 1.00 9.00
Engineering and Capital Projects – General Fund
Administrative Services Manager 1.00 0.00 0.00 1.00 Assoc Engineer 19.00 4.00 0.00 23.00
Assoc Land Surveyor 1.00 0.00 0.00 1.00
Director of Engineering 1.00 0.00 0.00 1.00
Management Analyst II 1.00 0.00 0.00 1.00
Principal Civil Engineer 3.00 0.00 0.00 3.00
Principal Traffic Engineer 1.00 0.00 0.00 1.00
Public Works Insp II 7.00 (3.00) 0.00 4.00
Sr Administrative Secretary 1.00 0.00 0.00 1.00 Sr Building Inspector 1.00 (1.00) 0.00 0.00
Sr Civil Engineer 7.00 0.00 0.00 7.00
Sr Engineering Technician 2.00 0.00 0.00 2.00
Sr Fiscal Office Spec 1.00 0.00 0.00 1.00
Sr Land Surveyor 0.00 1.00 0.00 1.00
Sr Management Analyst 1.00 0.00 0.00 1.00
Sr Public Works Insp 2.00 (1.00) 0.00 1.00
Stormwater Environmental Specialist II 2.00 0.00 0.00 2.00 Stormwater Compliance Inspector II 1.00 0.00 0.00 1.00 Stormwater Program Manager 1.00 0.00 0.00 1.00
Survey Technician II 1.00 0.00 0.00 1.00
Traffic Signal & Lighting Supervisor 1.00 0.00 0.00 1.00 Traffic Signal & Lighting Technician II 4.00 0.00 0.00 4.00 Engineering and Capital Projects – General Fund Total 59.00 0.00 0.00 59.00
Sewer Funds
Assoc Engineer 1.00 0.00 0.00 1.00
Engineering Tech II 2.00 0.00 0.00 2.00
Sr Civil Engineer 1.00 0.00 0.00 1.00
Sr Fiscal Office Specialist 1.00 0.00 0.00 1.00 Sewer Funds Total 5.00 0.00 0.00 5.00
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
305
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Engineering and Capital Projects – General Fund Total 59.00 0.00 0.00 59.00
Engineering and Capital Projects – Non-General Fund Total 5.00 0.00 0.00 5.00
Finance – General Fund
Accountant 1.00 0.00 0.00 1.00
Accounting Assistant 5.00 0.00 0.00 5.00
Accounting Technician 5.00 (2.00) 0.00 3.00
Accounts Payable Supervisor 1.00 0.00 0.00 1.00 Associate Accountant 1.00 (1.00) 0.00 0.00
Asst Dir of Finance 1.00 0.00 0.00 1.00
Budget & Analysis Manager 1.00 0.00 0.00 1.00
Business License Rep 1.00 0.00 0.00 1.00
Director of Finance 1.00 0.00 0.00 1.00
Finance Manager 1.00 0.00 0.00 1.00
Fiscal & Management Analyst 4.00 (1.00) 0.00 3.00 Fiscal Debt Mgmt Analyst 1.00 0.00 0.00 1.00
Fiscal Office Specialist 1.00 0.00 0.00 1.00
Fiscal Services Analyst 0.00 1.00 0.00 1.00
Payroll Specialist 0.00 2.00 0.00 2.00
Payroll Supervisor 0.00 1.00 0.00 1.00
Principal Accountant 1.00 0.00 0.00 1.00
Procurement Services Analyst 1.00 0.00 (1.00) 0.00 Procurement Specialist 1.00 0.00 0.00 1.00
Purchasing Agent 0.00 0.00 1.00 1.00
Revenue Manager 1.00 0.00 0.00 1.00
Sr Accountant 1.00 1.00 0.00 2.00
Sr Management Analyst 3.00 0.00 0.00 3.00
Sr Procurement Specialist 0.00 1.00 0.00 1.00
Finance – General Fund Total 32.00 2.00 0.00 34.00
Sewer Funds
Collections Supervisor 0.00 1.00 0.00 1.00
Management Analyst II 1.00 (1.00) 0.00 0.00
Sewer Funds Total 1.00 0.00 0.00 1.00
Finance – General Fund Total 32.00 2.00 0.00 34.00
Finance – Non-General Fund Total 1.00 0.00 0.00 1.00
Fire – General Fund
Deputy Fire Chief 1.00 1.00 0.00 2.00
EMS Inventory Specialist 1.00 (1.00) 0.00 0.00
Fire Battalion Chief - A (112 hr) 6.00 0.00 0.00 6.00 Fire Battalion Chief - C (80 hr) 1.00 (1.00) 0.00 0.00 Fire Captain - A (112 hr) 36.00 0.00 3.00 39.00 City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
306
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Fire Captain - C (80 hr) 2.00 1.00 0.00 3.00
Fire Chief 1.00 0.00 0.00 1.00
Fire Division Chief 1.00 0.00 0.00 1.00
Fire Engineer - A (112 hr) 36.00 0.00 3.00 39.00 Fire Engineer - C (80 hr) 1.00 0.00 0.00 1.00
Fire Insp/Invest I 1.00 0.00 0.00 1.00
Fire Insp/Invest II 6.00 0.00 0.00 6.00
Fire Inventory Specialist 0.00 1.00 0.00 1.00
Fire Prev Eng/Invest 1.00 (1.00) 0.00 0.00
Fire Prevention Specialist - Frozen/Unfunded 1.00 0.00 0.00 1.00 Firefighter - A (112 hr) 9.00 0.00 0.00 9.00
Firefighter/Paramedic - A (112 hr) 36.00 0.00 3.00 39.00 Public Safety Analyst 1.00 0.00 0.00 1.00
Sr Administrative Secretary 1.00 0.00 0.00 1.00 Sr Fire Insp/Invest 1.00 1.00 0.00 2.00
Sr Management Analyst 1.00 0.00 0.00 1.00
Sr Office Specialist 1.00 0.00 0.00 1.00
Training Programs Spec 1.00 0.00 0.00 1.00
Fire – General Fund Total 146.00 1.00 9.00 156.00
Advanced Life Support Fund
Deputy Fire Chief 1.00 0.00 0.00 1.00
EMS Educator 1.00 0.00 0.00 1.00
Management Analyst II 0.00 0.00 1.00 1.00
Multimedia Designer 0.00 1.00 0.00 1.00
Multimedia Production Specialist 1.00 (1.00) 0.00 0.00 Principal Management Analyst 1.00 0.00 0.00 1.00 Advanced Life Support Fund Total 4.00 0.00 1.00 5.00
Grant Funds
Emergency Svcs Manager 1.00 0.00 0.00 1.00
Grant Funds Total 1.00 0.00 0.00 1.00
Measure A Fund
Deputy Fire Chief 1.00 0.00 0.00 1.00
Fire Captain - C (80 hr) 2.00 2.00 2.00 6.00
Fire Engineer 0.00 2.00 0.00 2.00
Fire Inventory Specialist 0.00 1.00 0.00 1.00
Firefighter - A (112 hr) 27.00 0.00 3.00 30.00
Firefighter/Paramedic 0.00 3.00 0.00 3.00
Sr Application Support Specialist 0.00 1.00 0.00 1.00 Measure A Fund Total 30.00 9.00 5.00 44.00
Transport Enterprise Fund
Delivery Driver 1.00 0.00 0.00 1.00
Emergency Medical Tech (Non-Safety) 23.00 (2.00) 0.00 21.00 Fire Battalion Chief - A (112 hr) 3.00 0.00 0.00 3.00 City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
307
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Management Analyst II 1.00 0.00 (1.00) 0.00
Paramedic (Non-Safety) 35.00 2.00 0.00 37.00
Transport Enterprise Fund Total 63.00 0.00 (1.00) 62.00
Fire – General Fund Total 146.00 1.00 9.00 156.00
Fire – Non-General Fund Total 98.00 9.00 5.00 112.00
Housing and Homeless Services - CV Housing Authority Fund Director of Housing and Homeless Services 0.00 1.00 0.00 1.00 Homeless Solutions Manager 0.00 1.00 0.00 1.00
Housing Manager 0.00 1.00 0.00 1.00
Management Analyst II 0.00 4.00 0.00 4.00
Principal Management Analyst 0.00 1.00 0.00 1.00 Sr Fiscal Office Specialist 0.00 1.00 0.00 1.00 Sr Planner 0.00 1.00 0.00 1.00
Housing and Homeless Services – Non-General Fund Total 0.00 10.00 0.00 10.00
Human Resources – General Fund
Benefits Manager 1.00 0.00 0.00 1.00
Dir of Human Resources/Risk Management 1.00 0.00 0.00 1.00 Fiscal Office Specialist 0.50 0.00 0.00 0.50
Hr Analyst 2.00 0.00 0.00 2.00
Hr Technician 4.00 0.00 0.00 4.00
Human Resources Manager 2.00 0.00 0.00 2.00
Risk Management Specialist 0.50 0.00 0.00 0.50
Sr Fiscal Office Specialist 2.00 0.00 0.00 2.00 Sr Hr Analyst 6.00 0.00 0.00 6.00
Sr Hr Tech 0.00 1.00 0.00 1.00
Sr Risk Management Specialist 2.00 0.00 0.00 2.00 Human Resources – General Fund Total 21.00 1.00 0.00 22.00
Information Technology Srvcs – General Fund
Application Support Manager 0.00 1.00 0.00 1.00 Application Support Specialist 0.00 1.00 0.00 1.00 Chief Info Security Officer 1.00 0.00 0.00 1.00 Director of Info Tech Srvcs 1.00 0.00 0.00 1.00 GIS Analyst 0.00 2.00 0.00 2.00
GIS Manager 1.00 0.00 0.00 1.00
GIS Specialist 2.00 (2.00) 0.00 0.00
Info Tech Support Specialist 1.00 0.00 0.00 1.00 Info Technology Technician 1.00 0.00 0.00 1.00
Information Technology Manager 1.00 0.00 0.00 1.00 Information Technology Project Manager 0.00 1.00 0.00 1.00 Ops & Telecom Mgr 1.00 (1.00) 0.00 0.00
Sr Application Support Spec 1.00 1.00 0.00 2.00 Sr Info Tech Support Spec II/Sr Police Tech Spec 4.00 0.00 0.00 4.00 City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
308
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Sr Network Engineer 1.00 0.00 0.00 1.00
Sr Programmer Analyst 2.00 (1.00) 0.00 1.00
Sr Webmaster 1.00 0.00 0.00 1.00
VolP/Video Conf Specialist 0.00 1.00 0.00 1.00
Information Technology Srvcs – General Fund Total 18.00 3.00 0.00 21.00
Library – General Fund
City Librarian 1.00 0.00 0.00 1.00
Director Of Community Services 0.50 0.00 0.00 0.50 Librarian II 6.00 0.00 0.00 6.00
Librarian III 2.00 0.00 0.00 2.00
Library Associate 7.50 0.00 0.00 7.50
Management Analyst II 1.00 0.00 0.00 1.00
Principal Librarian 2.00 0.00 0.00 2.00
Sr Librarian 3.00 0.00 0.00 3.00
Library – General Fund Total 23.00 0.00 0.00 23.00
Parks And Recreation – General Fund
Director of Community Services 0.50 0.00 0.00 0.50 Administrative Secretary 1.00 0.00 0.00 1.00
Administrative Technician 1.00 0.00 0.00 1.00
Aquatic Supv I 0.00 0.00 1.00 1.00
Aquatic Supv II 2.00 0.00 0.00 2.00
Aquatic Supv III 1.00 0.00 0.00 1.00
Fiscal Office Specialist 1.00 0.00 0.00 1.00
Park Ranger Program Manager 1.00 (1.00) 0.00 0.00 Park Ranger Supervisor 1.00 (1.00) 0.00 0.00
Parks & Recreation Administrator 1.00 0.00 0.00 1.00 Parks Manager 1.00 (1.00) 0.00 0.00
Parks Maint Worker II 24.00 (24.00) 0.00 0.00
Parks Supervisor 4.00 (4.00) 0.00 0.00
Principal Recreation Manager 2.00 0.00 0.00 2.00 Recreation Supervisor II 0.00 0.00 1.00 1.00
Recreation Supervisor III 8.00 0.00 0.00 8.00
Sr Management Analyst 1.00 (1.00) 0.00 0.00
Sr Park Ranger 1.00 (1.00) 0.00 0.00
Sr Parks Maint Worker 10.00 (10.00) 0.00 0.00
Parks And Recreation – General Fund Total 60.50 (43.00) 2.00 19.50
Police – General Fund
Assistant Chief of Police 0.00 1.00 0.00 1.00
Automated Fingerprint Tech 1.00 0.00 0.00 1.00
Chief of Police 1.00 0.00 0.00 1.00
Civilian Background Investigator 1.00 0.00 0.00 1.00 Community Service Officer 8.00 0.00 0.00 8.00
Crime Laboratory Manager 1.00 0.00 0.00 1.00
Detention Facility Manager 0.00 1.00 0.00 1.00
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
309
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Detention Officer 0.00 8.00 0.00 8.00
Forensics Specialist 2.00 0.00 0.00 2.00
Latent Print Examiner 2.00 0.00 0.00 2.00
Management Analyst I 1.00 0.00 0.00 1.00
Parking Enforcement Officer 1.00 0.00 0.00 1.00 Peace Officer 148.00 1.00 6.00 155.00
Peace Officer - Frozen/Unfunded 6.00 0.00 (6.00) 0.00 Police Admin Svcs Administrator 1.00 0.00 0.00 1.00 Police Agent 48.00 0.00 0.00 48.00
Police Captain 3.00 (1.00) 0.00 2.00
Police Dispatcher 21.00 0.00 0.00 21.00
Police Dispatcher Supervisor 5.00 0.00 0.00 5.00 Police Facility & Supply Coordinator 1.00 0.00 0.00 1.00 Police Lieutenant 10.00 0.00 0.00 10.00
Police Records Specialist 10.00 0.00 0.00 10.00 Police Records & Support Supervisor 2.00 0.00 0.00 2.00 Police Sergeant 25.00 0.00 0.00 25.00
Police Support Services Mgr 1.00 0.00 0.00 1.00 Police Technology Manager 1.00 0.00 0.00 1.00
Police Technology Specialist 1.00 0.00 0.00 1.00 Principal Management Analyst 1.00 0.00 0.00 1.00 Public Safety Analyst 1.00 0.00 0.00 1.00
Secretary 2.00 0.00 0.00 2.00
Sr Administrative Secretary 1.00 0.00 0.00 1.00 Sr Fiscal Office Specialist 1.00 0.00 0.00 1.00 Sr Latent Print Examiner 1.00 0.00 0.00 1.00
Sr Office Specialist 3.00 0.00 (1.00) 2.00
Sr Parking Enforcement Officer 1.00 0.00 0.00 1.00 Sr Police Records Specialist 0.00 0.00 1.00 1.00 Sr Prop & Evidence Specialist 2.00 0.00 0.00 2.00 Sr Public Safety Analyst 2.00 0.00 0.00 2.00
Sr Records Specialist 1.00 0.00 0.00 1.00
Supv Public Safety Analyst 1.00 0.00 0.00 1.00
Training Programs Spec 1.00 0.00 0.00 1.00
Police – General Fund Total 319.00 10.00 0.00 329.00
City Jail Fund
Detention Facility Manager 1.00 (1.00) 0.00 0.00 Detention Officer 12.00 (12.00) 0.00 0.00
Detention Supervisor 2.00 (2.00) 0.00 0.00
City Jail Fund Total 15.00 (15.00) 0.00 0.00
Grant Funds
FA Cyber Security Program Manager 1.00 0.00 0.00 1.00 FA Deputy Director LECC 3.00 0.00 0.00 3.00
FA Deputy Executive Director 1.00 0.00 0.00 1.00 FA Director of SD LECC 1.00 0.00 0.00 1.00
City of Chula Vista
Proposed Budget FY 2024
summary Tables → AUTHORIZED POSITIONS BY DEPARTMENT
310
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
FA Finance Manager 1.00 0.00 0.00 1.00
FA Geospatial Intel Analyst 1.00 0.00 0.00 1.00 FA Graphic Designer/Webmaster 1.00 0.00 0.00 1.00 FA Intelligence Analyst 3.00 0.00 0.00 3.00
FA IVDC - LECC Exec Director 1.00 0.00 0.00 1.00 FA LECC IT Manager 1.00 0.00 0.00 1.00
FA Network Administrator II 3.00 0.00 0.00 3.00 FA Network Administrator III 1.00 0.00 0.00 1.00 FA Prog Asst Supervisor 1.00 1.00 0.00 2.00
FA Pub Prvt Part Exer Prg Mgr 1.00 0.00 0.00 1.00 FA RCFL Network Engineer 2.00 0.00 0.00 2.00
FA Sr Intelligence Analyst 8.00 0.00 0.00 8.00
FA Sr Program Assistant 2.00 0.00 0.00 2.00
FA Supv Intelligence Analyst 3.00 (3.00) 0.00 0.00 FA Supv Intelligence Analyst I 0.00 1.00 0.00 1.00 FA Supv Intelligence Analyst II 0.00 2.00 0.00 2.00 Peace Officer 4.00 1.00 0.00 5.00
Police Comm Relations Spec 1.00 0.00 0.00 1.00
Police Sergeant 1.00 0.00 0.00 1.00
Grant Funds Total 41.00 2.00 0.00 43.00
Measure A Fund
Civilian Background Investigator 1.00 0.00 0.00 1.00 Community Services Officer 2.00 2.00 0.00 4.00
Digital Forensics Analyst II 0.00 0.00 2.00 2.00 Digital Forensics Tech II 2.00 0.00 (2.00) 0.00 Forensics Specialist 1.00 0.00 0.00 1.00
Information Technology Tech 1.00 0.00 0.00 1.00 Peace Officer 24.00 0.00 0.00 24.00
Police Agent 8.00 0.00 0.00 8.00
Police Captain 1.00 0.00 0.00 1.00
Police Comm Systems Manager 1.00 0.00 0.00 1.00 Police Dispatcher 7.00 0.00 0.00 7.00
Police Lieutenant 1.00 0.00 0.00 1.00
Police Sergeant 7.00 0.00 0.00 7.00
Police Technology Specialist 1.00 0.00 0.00 1.00 Property & Evidence Specialist 3.00 0.00 0.00 3.00 Property & Evidence Supervisor 1.00 0.00 0.00 1.00 Public Information Specialist 1.00 0.00 0.00 1.00 Sr Police Records Specialist 3.00 0.00 0.00 3.00 Measure A Fund Total 65.00 2.00 0.00 67.00
Police – General Fund Total 319.00 10.00 0.00 329.00
Police – Non-General Fund Total 121.00 (11.00) 0.00 110.00
City of Chula Vista
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311
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Public Works General Fund
Administrative Secretary 1.00 0.00 0.00 1.00
Asst Dir of Public Works 1.00 0.00 0.00 1.00
Building Project Manager 2.00 0.00 0.00 2.00
Building Services Manager 1.00 0.00 0.00 1.00
Building Services Supervisor 1.00 0.00 0.00 1.00 Carpenter 1.00 0.00 0.00 1.00
Construction & Repair Supervisor 1.00 0.00 0.00 1.00 Custodial Supervisor 1.00 0.00 0.00 1.00
Custodian 8.00 0.00 (1.00) 7.00
Director of Public Works 1.00 0.00 0.00 1.00
Electrician 2.00 0.00 0.00 2.00
Equipment Operator 3.00 0.00 0.00 3.00
Facilities Manager 1.00 0.00 0.00 1.00
HVAC Technician 2.00 0.00 0.00 2.00
Lead Custodian 4.00 0.00 (2.00) 2.00
Locksmith 1.00 0.00 0.00 1.00
Maintenance Worker II 10.00 0.00 0.00 10.00
Management Analyst II 2.00 0.00 0.00 2.00
Open Space Inspector 5.00 0.00 0.00 5.00
Open Space Manager 1.00 0.00 0.00 1.00
Parks Maintenance Worker II 0.00 24.00 0.00 24.00 Parks Manager 0.00 1.00 0.00 1.00
Park Ranger Program Manager 0.00 1.00 0.00 1.00 Park Ranger Supervisor 0.00 1.00 0.00 1.00
Parks Supervisor 0.00 4.00 0.00 4.00
Plumber 1.00 1.00 0.00 2.00
Principal Management Analyst 1.00 0.00 0.00 1.00 Public Works Manager 2.00 0.00 0.00 2.00
Public Works Specialist 1.00 0.00 0.00 1.00
Public Works Superintendent 1.00 0.00 0.00 1.00 Public Works Supervisor 4.00 0.00 0.00 4.00
Pump Maintenance Supervisor 1.00 0.00 0.00 1.00 Pump Maintenance Technician 5.00 0.00 0.00 5.00 Secretary 1.00 (1.00) 0.00 0.00
Sr Electronics Technician 1.00 0.00 0.00 1.00
Sr Fiscal Office Specialist 2.00 1.00 0.00 3.00 Sr HVAC Technician 1.00 0.00 0.00 1.00
Sr Maintenance Worker 9.00 0.00 0.00 9.00
Sr Management Analyst 1.00 1.00 0.00 2.00
Sr Office Specialist 1.00 0.00 0.00 1.00
Sr Open Space Inspector 1.00 0.00 0.00 1.00
Sr Park Ranger 0.00 1.00 0.00 1.00
Sr Parks Maintenance Worker 0.00 10.00 0.00 10.00 Tree Trimmer Supervisor 1.00 0.00 0.00 1.00
Public Works General Fund Total 83.00 44.00 (3.00) 124.00 City of Chula Vista
Proposed Budget FY 2024
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312
Classification
FY 2023
Adopted
Budget
FY 2023
Midyear
Changes
FY 2024
Proposed
Changes
FY 2024
Proposed
Budget
Fleet Management Fund
Equipment Mechanic 6.00 0.00 0.00 6.00
Fire Apparatus Mechanic 1.00 0.00 0.00 1.00
Fleet Inventory Control Specialist 1.00 0.00 0.00 1.00 Fleet Manager 1.00 0.00 0.00 1.00
Fleet Supervisor 0.00 1.00 0.00 1.00
Sr Equipment Mechanic 1.00 0.00 0.00 1.00
Sr Management Analyst 1.00 0.00 0.00 1.00
Fleet Management Fund Total 11.00 1.00 0.00 12.00
Gas Tax Fund
Maintenance Worker II 1.00 0.00 0.00 1.00
Sr Maintenance Worker 1.00 0.00 0.00 1.00
Gas Tax Fund Total 2.00 0.00 0.00 2.00
Sewer Funds
Equipment Operator 3.00 0.00 0.00 3.00
Maintenance Worker II 19.00 0.00 0.00 19.00
Public Works Specialist 1.00 0.00 0.00 1.00
Public Works Supervisor 4.00 0.00 0.00 4.00
Sr Maintenance Worker 15.00 0.00 0.00 15.00
Sewer Funds Total 42.00 0.00 0.00 42.00
Public Works – General Fund Total 83.00 44.00 (3.00) 124.00
Public Works – Non-General Fund Total 55.00 1.00 0.00 56.00
General Fund Subtotal 867.75 21.00 7.00 895.75
Non-General Fund Subtotal 359.00 3.00 6.00 368.00
Total Authorized Positions 1,226.75 24.00 13.00 1,263.75
APPENDIX
Fiscal Policies
Investment Policies
General Fund Reserve Policy
Measure A Fund Reserve Policy
Pension Reserve Policy
Debt Administration
Accounting Systems and Budgetary Control
List of Acronyms
Glossary
FISCAL POLICIES
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Fiscal Policies
This section of the budget document reiterates the fiscal policies that were reviewed, acknowledged, or approved/ adopted by the City Council. These policies form the overall framework within which the operating budget was formulated. The fiscal policies, most of which are already codified in one form or another, are not considered new or controversial, but are summarized here to assist you to better understand the basis for the resource allocation decisions that were made.
General
1. The City’s financial assets will be managed in a sound and prudent manner in order to ensure the continued viability of the organization.
2. A comprehensive operating and capital budget for all City funds will be developed annually and presented to the City Council for approval. The purpose of the annual budget will be to:
a) Identify community needs for essential services.
b) Identify the programs and specific activities required to provide these essential services. c) Establish program policies and goals that define the nature and level of program services required. d) Identify alternatives for improving the delivery of program services. e) Identify the resources required to fund identified programs and activities and enable accomplishment of program objectives.
f) Set standards to facilitate the measurement and evaluation of program performance.
3. The City’s annual operating budget will be balanced whereby planned expenditures do not exceed anticipated revenues.
4. Recurring revenues will fund recurring expenditures. One-time revenues will be used for capital, reserve augmentation, or other non-recurring expenditures.
5. Accounting systems will be maintained in accordance with Generally Accepted Accounting Principles.
6. Investment policy and practice will be in accordance with State statues that emphasize safety and liquidity over yield, including quarterly status reports to the City Council. (Council Policy)
7. City operations will be managed, and budgets prepared with the goal of maintaining an available fund balance in the General Fund of no less than fifteen percent of the General Fund operating budget. (Council Policy)
8. General Fund fiscal status reports reflecting comparisons of actual and projected performance with budget allocations for both revenue and expenditures will be presented to the City Council on a quarterly basis. (City Charter)
Revenue
1. The City will endeavor to maintain a diversified and stable revenue base in order to minimize the impact to programs from short-term economic fluctuations.
2. Revenue projections will be maintained for the current year and four future fiscal years, and estimates will be based on a conservative, analytical, and objective process.
3. In order to maintain flexibility, except as required by law or funding source, the City will avoid earmarking any restricted revenues for specific purpose or program.
4. The City has established user fees to best ensure that those who use a proprietary service pay for that service in proportion to the benefits received. With few exceptions, such as those services provided for low-income residents, fees have been set to enable the City to recover the full cost of providing those services. (Citywide Cost Recovery Policy, Council Policy Number 159-03)
5. User fees will be reviewed and updated on an ongoing basis to ensure that program costs continue to be recovered and that the fees reflect changes in levels of service delivery. (Master Fee Schedule) City of Chula Vista
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6. The City will recover the cost of new facilities and infrastructure necessitated by new development consistent with State law and the City’s Growth Management Program. Development Impact Fees will be closely monitored and updated to ensure that they are maintained at a level adequate to recover costs. (GMOC Ordinance)
7. When considering new development alternatives, the City will attempt to determine the fiscal impact of proposed projects, annexations, etc. and ensure that mechanisms are put in place to provide funding for any projected negative impacts on City operations. (GMOC Ordinance)
Expenditures
1. Budgetary control will be exercised at the Department/category level, meaning that each department is authorized to spend up to the total amount appropriated for that department within the expenditure categories of Personnel Costs, Supplies & Services, Other Charges, Utilities, and Capital. Transfers of appropriations between expenditure categories of up to $75,000 may be approved by the City Manager. Transfers of appropriations between expenditure categories in excess of $75,000, between departments, and transfers from CIP projects require City Council approval. (City Charter & Council Policy)
2. Appropriations, other than for capital projects, remaining unspent at the end of any fiscal year will be canceled and returned to Available Fund Balance with the exception of any appropriations encumbered as the result of a valid purchase order or as approved for a specific project or purpose by the City Council or the City Manager.
Appropriations for capital projects will necessarily be carried over from year to year until the project is deemed to be complete. (Council Policy)
3. The City will establish and maintain equipment replacement and facility maintenance funds as deemed necessary to ensure that monies are set aside and available to fund ongoing replacement needs.
4. The City will attempt to compensate non-safety employees at rates above the middle of the labor market as measured by the median rate for similar jurisdictions. (Council Policy) Capital Improvement Program (CIP)
1. Major capital projects will be included in a CIP Budget reflecting a five-year period. The CIP budget will be updated annually and presented to City Council for approval. Resources will be formally appropriated (budgeted) for the various projects on an annual basis in accordance with the five-year plan.
City Debt Policy & Debt Management
1. The City will consider the use of debt financing primarily for capital improvement projects (CIP) when the project’s useful life will exceed the term of the financing and when resources are identified sufficient to fund the debt service requirements. Some exceptions to this CIP driven focus are the issuance of debt such as Pension Obligation Bonds, where the financial benefits are significantly greater than the costs and where the benefits are determined to be a financially prudent option; and short-term instruments such as tax and revenue anticipation notes, which are to be used for prudent cash management purposes. Bonded debt should not be issued for projects with minimal public benefit or support, or to finance normal operating expenses. (Council Policy) If a department has any project which is expected to use debt financing, the department director is responsible for expeditiously providing the Finance Department with reasonable cost estimates, including specific revenue accounts that will provide payment for the debt service. This will allow the Finance Department to do an analysis of the project’s potential impact on the City’s debt capacity and limitations. (Council Policy)
2. Debt capacity and affordability will be determined by conducting various analyses prior to the issuance of bonds.
The analysis of debt capacity should cover a broad range of factors including but limited to the following:
● Statutory or constitutional limitations affecting the amount that can be issued, such as legally authorized debt limits and tax or expenditure ceilings
● Other legal limitations, such as coverage requirements or additional bonds tests imposed by bond covenants City of Chula Vista
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● Evaluation of trends relating to the government’s financial performance, such as revenues and expenditures, net revenues available after meeting operating requirements, reliability of revenues expected to pay debt service and unreserved fund balance levels
● Debt service as a percentage of total General Fund Revenues The City will attempt to limit the total amount of annual debt service payments payable by the General Fund to no more than 10% of estimated total General Fund revenues. Under State Law, general obligation bonds shall not exceed 15% of total assessed valuation within the City.
An analysis using current market rates and conservative projections showing compliance with the debt affordability limitations included in this Debt Policy shall be conducted before the issuance of any debt with a maturity longer than two years from date of issue.
Data showing direct and overlapping debt levels for the City of Chula Vista and surrounding agencies that affect the residents of the City shall be compiled for inclusion in the Comprehensive Annual Financial Report of the City. (Council Policy)
3. In order to maximize the financial options available to benefit the public, it is the policy of the City of Chula Vista to allow for the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following:
● General Obligation (GO) Bonds: General Obligation Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. Examples of projects include libraries, parks, and public safety facilities. All GO bonds require a 2/3 vote in order to pass. ● Revenue Bonds: Revenue Bonds are limited-liability obligations tied to a specific enterprise revenue stream where the projects financed clearly benefit or relate to the enterprise. An example of projects that would be financed by a Revenue Bond would be improvements to the sewer system, which would be paid back with money raised from the property owner’s sewer bills. Generally, no voter approval is required to issue this type of obligation but must comply with proposition 218 regarding rate adjustments. ● Lease-Backed Debt/Certificates of Participation (COP): Issuance of COP debt is a commonly used form of debt that allows a City to finance projects where the debt service is secured via a lease or installment agreement and where the payments are budgeted in the annual budget appropriation by the City from the general fund. Lease-Backed debt does not constitute indebtedness under the state or the City’s constitutional debt limit and does not require voter approval.
● Special Assessment/Special District Debt: the City will consider requests from developers for the use of debt financing secured by property based assessments or special taxes in order to provide for necessary infrastructure for new development only under strict guidelines adopted by City Council, which may include minimum value-to-lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (AD) and Community Facilities Districts (CFD) or more commonly known as Mello-Roos Districts. In order to protect bondholders as well as the City’s credit rating, all Rate and Method of Apportionment (RMA) documents must include the provision that the maximum projected annual special tax revenues must equal 110% of the projected annual gross debt service on any bonds of the community facilities district. The City will also comply with all State guidelines regarding the issuance of special district or special assessment debt. For further information, refer to the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facility Districts.
● Industrial Development Bonds – Industrial Development Bonds (IDBs) are tax-exempt securities which can fund manufacturing businesses or energy development projects which provides a public benefit. While the authorization to issue IDBs is provided by a state statute, the tax-exempt status of these bonds is derived from federal law (IRS Code Section 103(b) (2).
● Tax Allocation Bonds – Tax Allocation Bonds are special obligations that are secured by the allocation of tax increment revenues that were generated by increased property taxes in the designated redevelopment area.
Tax Allocation Bonds are not debt of the City. Due to changes in the law affecting California Redevelopment City of Chula Vista
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agencies with the passage of ABX1 26 as codified in the California Health and Safety Code, the City of Chula Vista Redevelopment Agency (RDA) was dissolved as of February 1, 2012, and its operations substantially eliminated but for the continuation of certain enforceable RDA obligations to be administered by the City of Chula Vista Successor Agency. The terms of ABX1 26 requires successor agencies perform all obligations with respect to enforceable debt obligations, which include Tax Allocation Bonds. ● Multi-Family Mortgage Revenue Bonds – The City Housing Authority is authorized to issue mortgage revenue bonds to finance the development, acquisition and rehabilitation of multi-family rental projects. The interest on the bonds can be exempt from Federal and State taxation. As a result, bonds provide below market financing for qualified rental projects. In addition, the bonds issued can qualify projects for allocations of Federal low-income housing tax credits, which can provide a significant portion of the funding necessary to develop affordable housing. For further information, refer to the Chula Vista Housing Authority – Multi-Family Administrative Bond Policies.
● HUD Section 108 Loan Guarantee Program – The U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program allows cities to use their annual Community Development Block Grant (CDBG) entitlement grants to obtain federally guaranteed funds large enough to stimulate or pay for major community development and economic development projects. The program does not require a pledge of the City’s General Fund, only of future CDBG entitlements. By pledging future CDBG entitlement grants as security, the City can borrow at favorable interest rates because of HUD’s guarantee of repayment to investors. (Council Policy)
4. The City will strive to minimize borrowing costs by:
● Seeking the highest credit rating possible;
● Maintaining transparency and excellent communications with credit rating agencies regarding the City’s fiscal condition;
● Purchasing bond insurance or taking action to upgrade the City’s current credit rating (Council Policy)
5. The City will comply with Rule 15(c) 2-12 of the Securities Exchange Commission (SEC) and provide timely disclosure of relevant information on an annual basis as well as any material event notices as required. (Council Policy)
6. In addition to externally financed debt, the City utilizes inter-fund loans whenever possible to reduce borrowing costs or provide for shorter term loans. When interest is charged on internal loans, it is done at the same rate the City earns from its pooled investments.
Sewer Service Revenue Fund Reserve Policy
1. Working Capital and Rate Stabilization Reserve
Working Capital and Rate Stabilization reserves in the Sewer Service Revenue Fund will be restricted to maintaining operating the wastewater collection system and paying treatment charges to City of San Diego Metropolitan Wastewater (“Metro”). The reserve will be funded from revenues accumulated in the Sewer Service Revenue Fund. It is intended to accommodate any natural variability in revenues and expenditures, including potential disruptions of cash flows due to varied billing methodology, short term fluctuations and annual cycles. The reserve will also assist in addressing shortfalls which may occur due to unanticipated cost increases in labor or energy and other consumption based goods and services, such as wastewater treatment services provided by Metro. The reserves represent unrestricted resources available for appropriation by the City Council addressing unforeseen needs for sewer services.
The Working Capital and Rate Stabilization Reserves will assist the City in addressing the following items:
● Rate Stabilization – the reserves will allow the City the flexibility to “smooth” rates and phase increases in over multiple years, which is prudent given the potential variability in the City’s payments to Metro.
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● Revenue Collection Fluctuations – the reserves will be used to protect the City from natural fluctuations in revenue and expenditure cycles which is prudent given that the City bills customers at different points in time but incurs expenses continuously throughout the year.
● Rates of delinquencies – delays in collection of outstanding revenues. ● Payroll cycles – the timing of fixed cash requirement for payroll, as related to the timing of revenue cycles. ● Unanticipated expenses – expenses whose characteristics make accurate estimation difficult, such as increases in wastewater treatment services provided by the City of San Diego, energy costs, labor benefits and other consumption based goods and services.
The City shall maintain a Sewer Revenue reserve equivalent to 90 days of operating expenditures and a Rate Stabilization reserve equivalent to 90 days of operating expenditures for a minimum combined total of 180 days and a maximum reserve balance of 125% of the minimum balance.
If funds are appropriated from the Sewer Revenue Working Capital and Rate Stabilization Reserves, the funds should be replenished in the budget process during subsequent fiscal years to the minimum reserve balance. If the magnitude of the event caused the Sewer Revenue Working Capital and a Stabilization Reserves to be less than 30 days of operating and maintenance budget, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the 180 days minimum reserve balance. (Council Policy)
2. Emergency Reserve
The Sewer Service Revenue Fund Emergency Reserve is necessary to secure funding for insurance deductibles, unforeseen liabilities/litigation and settlement costs related to the City’s wastewater system.
The City shall maintain a minimum Sewer Service Revenue Fund Emergency Reserve target level of 5% of the operating and maintenance budget and a maximum reserve balance of 125% of the minimum balance. If the funds are appropriated from the Sewer Revenue Emergency Reserves due to unanticipated needs, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the minimum reserve balance. (Council Policy)
3. Vehicle Replacement Reserve
The Sewer Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund the replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer Service Revenue Fund.
The City shall maintain a minimum Sewer Services Fund Vehicle Replacement Reserve target of 2% of the operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer operations are replaced as scheduled and available to deploy as needed.
To achieve a minimum impact to cost of services and rates, funds will be included in the proposed budget on an annual basis as identified in the City’s Vehicle Replacement schedule. The cost of replacing all vehicles will be averaged over the lifespan of the existing fleet. This will generate a more normalized cost of services by evenly distributing revenue requirements on a year-to year-basis offsetting temporary cash flow deficiencies and avoid significant increases in rate charges to customers in the years the replacement costs are incurred. (Council Policy)
INVESTMENT
POLICIES
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Investment Policies
1.0 Purpose
This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City.
2.0 Policy
The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management.
3.0 Scope
This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report.
3.1 Funds
The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include:
■ General Fund
■ Special Revenue Funds
■ Capital Project Funds
■ Enterprise Funds
■ Trust and Agency Funds
■ Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds.
Bond proceeds shall be invested in the investments permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed elsewhere in this Policy do not apply to bond proceeds.
4.0 Prudence
The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”.
This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part:
“… all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…”
4.1 Personal Responsibility
The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, City of Chula Vista
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provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments.
5.0 Objective
Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are:
5.1 Safety
Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
5.2 Liquidity
The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal.
5.3 Return on Investments
The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0.
6.0 Delegation of Authority
The City Council delegates responsibility for the investment program to the Director of Finance/Treasurer for a period of one year. Subject to review, the City Council may renew the delegation of authority each year. The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/ Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor.
The advisor shall follow the Investment Policy and such other written instructions as are provided.
7.0 Ethics and Conflicts of Interest
In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)].
8.0 Authorized Financial Dealers and Institutions
For any transactions executed by the City, the City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of their financial condition. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City.
As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than City of Chula Vista
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“satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods.
To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i) the broker/dealer must be a “primary” dealer or regional broker/dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the broker/dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iii) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit documents relative to eligibility including U4 form for the broker, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e., minimum capital requirements of $10,000,000 and five years of operation).
If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and broker/ dealers to conduct transactions on behalf of the City.
9.0 Authorized & Suitable Investments
The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities.
Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment.
Investments not specifically listed below are deemed inappropriate and prohibited:
A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. No more than 30% of the agency’s moneys may be invested in the bankers’ acceptances of any one commercial bank. See Government Code Section 53601(g).
B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD’s) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. See Government Code Section 53601(i).
C. COMMERCIAL PAPER. Per Government Code Section 53601(h), a maximum of 25% of the portfolio may be invested in commercial paper. No more than 10% of the outstanding commercial paper of any single issuer may be purchased. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):
a) The entity meets the following criteria:
i. Is organized and operating in the United States as a general corporation. ii. Has total assets in excess of five hundred million dollars ($500,000,000). iii. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO.
b) The entity meets the following criteria:
i. Is organized within the United States as a special purpose corporation, trust, or limited liability company. ii. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond.
iii. Has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO.
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D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(a) and 53601(e).
E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category.
See Government Code Section 53601(b).
F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(f).
G. REPURCHASE AGREEMENT, maximum term 1 year. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 1 year. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City.
There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(j).
H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Per Government Code Section 53601(j), reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio. c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
e) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. f) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank:
i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness.
ii. Financing of a local agency’s activities.
iii. Acceptance of a local agency’s securities or funds as deposits.
I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. See Government Code Section 53601(k). No more than 10% of the City’s total investment assets may be invested in the commercial paper and the medium- term notes of any single issuer.
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J. NON-NEGOTIABLE CERTIFICATES OF DEPOSIT. The maximum maturity is 5 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. There is no limit on the percentage of the portfolio that can be invested in this category.
K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(d).
L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(d).
M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money market funds. No more than 10% of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest in the securities and obligations as authorized by California Government Code Section 53601, subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission.
See Government Code Section 53601(l).
N. San Diego County Treasurer’s Pooled Money Fund. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid, and the City may invest with no portfolio percentage limit. See Government Code Section 27133.
O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $75 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. See Government Code Section 16429.1.
P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). Per Government Code Section 53601(p), there is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria:
● The adviser is registered or exempt from registration with the Securities and Exchange Commission. ● The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive. ● The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. See Government Code Section 53601(o).
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R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. See Government Code Section 53601(q).
S. PLACEMENT SERVICE DEPOSITS. A maximum of 30% of the portfolio may be invested in placement service deposits. The maximum maturity is 5 years. Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8 and 53635.8. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance.
T. COLLATERALIZED BANK DEPOSITS. Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation. The maximum maturity is 5 years. There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code Section 53601(n) and 53630 et seq.
9.1 Investment Pools
The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency.
10.0 Portfolio Adjustments
Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified.
11.0 Collateralization
Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco with a value of 105% of the principal and accrued interest, government securities with a value of 110% of principal and accrued interest or first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will be handled as required by the California Government Code. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day.
Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted.
12.0 Safekeeping and Custody
All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and City of Chula Vista
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statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All deliverable securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery.
13.0 Diversification
The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions.
No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S.
Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s).
A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow.
B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
14.0 Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements.
The City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment.
15.0 Internal Control
The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer.
The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following six designated City staff:
1. Director of Finance/Treasurer
2. Assistant Director of Finance
3. Treasury Manager
4. Finance Manager
5. Revenue Manager
6. Budget and Analysis Manager
16.0 Performance Standards
The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the City of Chula Vista
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performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark.
17.0 Reporting
The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements:
■ Type of investment
■ Institutional issuer
■ Purchase date
■ Date of maturity
■ Amount of deposit or cost of the investment
■ Face value of the investment
■ Current market value of securities and source of valuation ■ Rate of interest
■ Interest earnings
■ Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance
■ Statement on availability of funds to meet the next six month’s obligations ■ Monthly and year-to-date budget amounts for interest income ■ Percentage of portfolio by investment type
■ Days to maturity for all investments
■ Comparative report on interest yields
■ Monthly transactions
■ Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report.
18.0 Investment Policy Review and Adoption
This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year.
Council Policy 220-01, Last updated March 7, 2023 via Council Resolution 2023-024
GENERAL FUND
RESERVE POLICY
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General Fund Reserve Policy
The City Council specifically amended this policy on November 3, 2020 with the adoption of Pension & Other Post- Employment Benefits (OPEB) Reserve Fund Policy No. 220-09, which provides, in relevant part, that:
1. Allocations for the Pension Reserve Fund (“PRF”) will only occur after the full funding of the 15% General Fund Operating Reserves; and
2. Upon meeting the 15% General Fund Operating Reserves, 75% of all future surplus funds will be transferred to the PRF, and the remaining 25% will be allocated to the Economic Contingency Reserves and Catastrophic Event Reserves in accordance with this Policy; and
3. In the event all three General fund reserve accounts are fully funded at the stated policy percentage, 100% of surplus funds will be transferred to the PRF until it reaches 15% of General Fund Expenses (excluding Measure A & P , identical dollar amount to the General Fund Operating Reserves).
The City Council amended this policy on November 5, 2009 with the acknowledgement that the reserve level established by this policy is a long-term goal.
Purpose:
Public entities purposely accumulate and then maintain adequate reserves to help ensure both financial stability and the continued ability to provide core services in difficult times. Sufficient reserves create financial stability, improve credit quality, and allow the public entity to better weather downturns in the economy and the impacts of negative events, both major and minor. Properly funded reserves allow for the continued maintenance of property, the replenishment of vehicles and equipment, and payment of expenses beyond the amount of the funds available for a single fiscal year.
Background:
The General Fund Reserve policy is established to ensure that the City’s finances are managed in a manner which will (1) continue to provide for the delivery of quality services, (2) maintain and enhance service delivery as the community grows in accordance with the General Plan, (3) minimize or eliminate the need to raise taxes and fees because of temporary revenue shortfalls, and (4) establish the reserves necessary to meet known and unknown future obligations and ability to respond to unexpected opportunities.
Fiscal stability is an important factor in operating a City. Establishing certain financial reserves would protect the City against unexpected interruptions in revenues, vulnerability to Federal or State actions, adverse economic conditions, unpredictable one-time costs, and exposure to natural disasters and emergencies.
There are additional benefits to establishing a minimum General Fund reserve. Credit rating agencies carefully monitor levels of reserves in a government’s General Fund to evaluate a government’s continued creditworthiness.
A higher credit rating results in savings to the taxpayer when the City issues debt or participates in short-term borrowing. Finally, reserve levels are a crucial consideration in long-term financial planning.
The Government Finance Officers Association (GFOA), an international organization that promotes the professional financial management of governments for the public interest, recommends maintaining a minimum unreserved fund balance (reserves) in the General Fund of no less than 5% to 15% of general fund operating revenues, or no less than one to two months of regular general fund operating expenditures. A government’s particular situation may require levels of unreserved fund balance in the general fund significantly in excess of these recommended minimum levels. Cities with higher reserve levels are better positioned to protect public services during economic downturns.
GFOA recommends that in establishing a policy governing the level of unreserved fund balance in the general fund, a government should consider a variety of factors, including:
■ The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of unreserved fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile.)
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■ The availability of resources in other funds as well as the potential drain upon general fund resources from other funds (i.e., the availability of resources in other funds may reduce the amount of reserves needed in the general fund, just as deficits in other funds may require that a higher level of reserves be maintained in the general fund). ■ Liquidity (i.e., a disparity between when financial resources actually become available to make payments and the average maturity of related liabilities may require that a higher level of resources be maintained). ■ Designations (i.e., governments may wish to maintain higher levels of unreserved fund balance to compensate for any portion of unreserved fund balance already designated for a specific purpose).
Policy:
This Policy establishes three (3) distinct General Fund Reserves:
1. General Fund Operating Reserves – minimum 15% total General Fund operating expenditures
2. Economic Contingency Reserves – minimum 5% total General Fund operating expenditures
3. Catastrophic Event Reserves – 3% total General Fund operating expenditures The total recommended minimum reserve level for the three categories combined is 23% of total General Fund operating expenditures.
General Fund Operating Reserves
The General Fund Operating Reserves represent unrestricted resources available for appropriations by the City Council to address extraordinary needs of an emergency nature.
The City shall maintain General Fund Operating Reserve levels of no less than 15% of the annual operating budget.
This level of reserves represents approximately 1.8 months of General Fund operating expenditures. The reserves may be used to provide temporary financing for unanticipated extraordinary needs of an emergency nature, such as major storm drain repairs, litigation or settlement costs or an unexpected liability created by Federal or State legislative action.
If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be replenished in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If the magnitude of the event caused the General Fund Operating Reserves to be deeply reduced, the City Manager and Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the minimum 15% level.
Authorized use (mid-year appropriations) of the General Fund Operating Reserves will require approval by at least four of five votes of the City Council.
Economic Contingency Reserve
The Economic Contingency Reserve represents monies set aside to mitigate service impacts during a significant downturn in the economy which impacts City revenues such as sales tax, property tax, business license tax, etc.
The City shall maintain General Fund Economic Contingency Reserve levels of no less than 5% of the annual operating budget to provide for unexpected financial impacts related to a significant economic slowdown.
Funds may be appropriated from the Economic Contingency Reserves only after the City Manager and the Finance Director have prepared an analysis providing sufficient evidence that the remaining reserves are adequate to offset potential downturns in revenue sources and provide sufficient cash balance for the daily financial needs of the City for the remainder of the fiscal year. Once the analysis has been presented to the City Council, action to appropriate from the reserves will require a declaration that a fiscal emergency or extraordinary need exists through an affirmative vote by at least four of five votes of the City Council.
If the Economic Contingency Reserves should ever drop below the minimum reserve level, the City Manager and Finance Director will develop a plan to replenish the reserves. The plan will be included in the adoption of the City’s annual operating budget and Long-Term Financial Plan.
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Catastrophic Event Reserves
The Catastrophic Event Reserves are monies set aside to fund unanticipated expenses related to a major natural disaster in the City.
A reserve level of 3% of the General Fund operating budget should be maintained as Catastrophic Event Reserves.
These funds are associated with the City’s Disaster Preparedness Program. The City is susceptible to earthquakes, fires, floods, and terrorist threats. In the event that the City Council proclaims a local emergency, the Catastrophic Event Reserves can be utilized to fund recovery costs until reimbursements from federal and/or state agencies can be recovered.
Authorized use of the Catastrophic Event Reserves will require a Proclamation of a Local Emergency by the City Council or Director of Emergency Services. In addition, authorized use (mid-year appropriations) of the Catastrophic Event Reserves will require approval by at least four of five votes of the City Council.
Calculation of Reserves
The reserves will be calculated using the following year’s Adopted General Fund budgeted operating expenditures.
Reserves will be evaluated annually in conjunction with the development of the City’s 10-Year General Fund Long- Term Financial Plan and Annual Operating Budget process. There is no maximum reserve level as any additional reserves would provide a greater level of fiscal security.
Council Policy 220-03, Last updated November 3, 2020 via Council Resolution 2020-254
MEASURE A
RESERVE FUND
POLICY
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Measure A Reserve Fund Policy
Background
On June 15, 2018, Chula Vista voters approved Measure A Sales and Use Tax, a one-half (½) cent Public Safety General Transactions and Use Tax (Sales Tax) in the City of Chula Vista. The Measure A Reserve Fund policy is established to avoid any impacts to the General Fund due to temporary sales tax revenue shortfalls, and to establish the reserves necessary to meet known and unknown future obligations for the City’s Police and Fire Departments.
Purpose
To establish a formal Measure A Sales Tax Reserve Fund Policy.
Policy
This policy establishes s Measure A Fund Economic Contingency Reserve:
Measure A Fund Economic Contingency Reserve
The City shall maintain a Measure A Fund Economic Contingency Reserve levels of no less than 60 days (approximately 16% of the annual operating budget) of operations to provide for unexpected financial impacts related to a significant economic slowdown. The reserve level is defined as the number of days of operation in its normal course of business and shall be calculated based on the annual operating budget for the fiscal year, less any budgeted debt service.
If funds are appropriated (spent) from the operating reserves due to unanticipated needs, the funds should be replenished by that department in the budget process during the subsequent fiscal year to maintain the minimum reserve balance. If the magnitude of the event caused the Measure A Fund Economic Contingency Reserve to be deeply reduced, the City Manager and Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the minimum level.
Authorized use (mid-year appropriations) of the Measure A Economic Contingency Reserve will require approval by a (4/5) vote of the City Council.
Calculation of Reserves
The reserves will be calculated using the following year’s Adopted Measure A Fund budgeted operating expenditures.
Reserves will be evaluated annually in conjunction with the development of the Annual Budget process. There is no maximum reserve level as any reserves above the required minimum would provide a greater level of fiscal security in the case of an unexpected economic slowdown. Any reserves above the required minimum could also be used to support public safety, consistent with the Measure A Public Safety Expenditure Plan through the application of Measure A sales tax revenues that will ensure the best return on investment in terms of staffing improvements for the improved deployment of resources and include the uses of these non-recurring funds for one-time essential public safety purchases (i.e., capital, consulting, software, etc.).
Council Policy 220-10, Last updated May 24, 2022 via Council Resolution 2022-130
PENSION RESERVE
POLICY
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Pension Reserve Policy
Background
The following policy has been developed in response to large annual pension cost increases as a result of current and retired employees living longer, lower than anticipated investment returns by CalPERS over the last several years, and CalPERS policies which require all cities to pay for the existing unfunded liability over a thirty-year period, and for any new unfunded liabilities to be paid over a twenty-year period. The CalPERS valuation utilized for the pension obligation bonds issuance was for the period June 30, 2019: the total Miscellaneous plan Unfunded Actuarial Liability (UAL) was $190,478,272 and the total Safety plan UAL was $163,766,889. This policy will formalize a funding mechanism for the establishment of a Pension Reserve Fund (PRF) to be used at the City’s discretion to help offset future pension cost increases.
The City also provides certain Other Pension Employment Benefits (OPEB) in the form of subsidized health care rates for Tier 1 retirees. As of June 30, 2019, the total OPEB liability for the City is $15,938,213. The City budgets the implied subsidy amounts on an annual basis.
Purpose
To establish a formal City Pension Reserve Fund Policy and OPEB Reserve Fund Policy.
Policy
Allocation Methodology
This policy amends the General Fund Reserve Policy – Fiscal Health Plan, all allocations for the PRF will only occur after the full funding of the 15% General Fund Operating Reserves.
Upon meeting the 15% General Fund Operating Reserves 75% (seventy-five percent) of all future surplus funds shall be transferred to the PRF for the purposes of that fund while the remaining 25% (twenty-five percent) is allocated to the Economic Contingency Reserves and Catastrophic Event Reserves in accordance with the General Fund Reserve Policy- Fiscal Health Plan. In the event all three General fund reserve accounts are fully funded at the stated policy percentage, 100% of surplus funds will be transferred to the PRF until it reaches 15% of General Fund Expenses (excluding Measure A & P , identical dollar amount to the General Fund Operating Reserves).
Ongoing surplus funds are determined upon the close of the fiscal year if revenues exceed actual expenditures within the General Fund. Special consideration shall be made by the Finance Director each year when determining potential Surplus Funds so as not to leave any General Fund supported funds (Workers Compensation, Public Liability, Insurance Fund) with a negative fund balance.
In addition, if Pension Obligation Bonds are issued, the City shall budget a minimum of 75% of the net annual savings (determined at bond issuance for years 1-10, not adjusted annually for any new unfunded liability or change in actuarial assumptions) for bond fiscal years 1 through 10 to be transferred to the Pension Reserve Fund on an annual basis. This fund will take the form of a Section 115 Trust and will replace the Pension Reserve Fund described above. Upon full funding of the 15% Pension Reserve Fund in the 115 Trust, all surplus funds will be allocated 50% to an OPEB Reserve Fund and 50% to an POB Bond Call Fund. Once 75% funding of outstanding OPEB liability is achieved, all remaining surplus funds will be deposited into the POB Bond Call Fund. The Finance Department shall provide a comprehensive reserve fund status report, including five-year reserve fund balance projections, annually to the City Council along with the Comprehensive Annual Financial Report.
In the event of an economic hardship, or other unanticipated fiscal emergency, the City Council may make an emergency declaration to reduce the annual transfer to the PRF, only if all funds in the Emergency Reserve and Economic Contingency Reserve have been depleted. This declaration will only apply to the fiscal year in which it was made. Ongoing fiscal challenges will require a second or third emergency declaration.
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Other Provisions
PRF funds may be used toward: repayment of future CalPERS unfunded liability in part or whole; the issuance of debt for the purposes of refinancing or issuing pension obligation bonds or other similar debt instruments; establishment of an OPEB reserve fund; to pay off any outstanding POB’s; and any other unanticipated pension related cost or charge. The Finance Department shall create the PRF in the fiscal year in which the first scheduled transfer is to occur.
It is anticipated that pension fund contributions will eventually stabilize around the year 2030 and will slowly be reduced until the outstanding unfunded pension liability is paid in full by the year 2045. Pension Obligation Bonds may be considered to smooth the impacts over that twenty-four-year period. This PRF will remain in place until such time pension contributions have stabilized and the City has no remaining unfunded liability or projected liability in the future.
If any part of this Policy conflicts with Federal or State laws, or the City of Chula Vista Municipal Code, or Charter, those laws will take precedence over this Pension Reserve Fund Policy.
Definitions:
Surplus Funds – Actual revenues exceeding expenditures, if applicable, for each fiscal year. The surplus funds determination is typically made around October of each year for the prior fiscal year.
Bond Fiscal Year – Begins the first fiscal year immediately following the issuance of pension obligation bonds.
Council Policy 220-09, Last updated November 3, 2020 via Council Resolution 2020-254 DEBT
ADMINISTRATION
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Debt Administration
Debt Portfolio
The City of Chula Vista periodically utilizes various mechanisms for borrowing to finance large capital assets such as infrastructure, buildings, and large equipment. The City’s Debt Portfolio is a summary of its outstanding bonded indebtedness by issuance. The purpose of this report is to provide Chula Vista citizens, investors, and the general public information on the City’s bonded indebtedness. Also included within the report are Redevelopment Agency/ Successor Agency obligations, and other City debt such as Special Tax District liabilities and HUD Section 108 Loan repayments.
The City’s debt portfolio can be accessed at the following link:
www.chulavistaca.gov/departments/finance/financial-reports Based on the estimated balances for the year ending June 30, 2023, the City and the former Redevelopment Agency (Agency) borrowed funds through several long-term debt issues and held other obligations which are to be funded for a period of time exceeding one year. A summary of the City’s current debt obligations is categorized in the following table.
Long Term Debt
Description Principal Interest Total
Outstanding
Principal
Balance
Final
Maturity Purpose
General Fund Obligations
2014 Refunding COP 45,920,000 22,832,196 68,752,196 29,425,000 2032 Police Facility Project 2015 Refunding COP 34,330,000 13,315,468 47,645,468 20,930,000 2034 Civic Center Project 2016 Refunding COP 8,600,000 4,309,945 12,909,945 8,600,000 2036 Civic Center Project 2016 Lease Revenue Refunding
Bonds 25,885,000 8,128,865 34,013,865 16,040,000 2033 Capital Lease Refunding
Project
2017 Lease Revenue Bonds 61,355,000 16,879,834 78,234,834 26,620,000 2027 Measure P Projects Lease Revenue Bonds Series 2017A 12,045,000 10,966,567 23,011,567 11,955,000 2049 CREBs (Taxable) Lease Revenue Bonds Series 2017B 1,085,000 279,747 1,364,747 660,000 2029 CREBs (Tax-Exempt) 2021 Taxable Pension Obligation
Bonds 350,025,000 134,166,096 484,191,096 334,725,000 2045 CalPERS UAL Subtotal 539,245,000 210,878,718 750,123,718 448,955,000 RDA/Successor Agency Bonded
Indebtedness
2016 Tax Allocation Refunding Bonds 29,315,000 12,279,980 41,594,980 19,010,000 2036 Refinance Tax Allocation
Bonds
Subtotal 29,315,000 12,279,980 41,594,980 19,010,000 Other Debt
HUD Section 108 Loan 5,886,000 862,631 6,748,631 3,868,000 2029 CDBG CIP Financed Purchases * 12,190,070 1,504,004 13,694,074 6,661,097 Financed purchases Notes/Loan Payable ** 4,229,995 Various
Miscellaneous Claims Payable 31,232,407 Various Compensated Absences 10,244,609 Employee leave Subtotal 12,190,070 1,504,004 13,694,074 52,368,108 Total Long Term Debt 586,636,070 225,525,333 812,161,403 524,201,108
* Capital Leases were reclassified into two new categories in FY 2022. One of the categories is now known as GASB 87 Leases, while the other category is known as Financed Purchases. Financed Purchases will continue to be reported as long-term debt, while GASB 87 Leases are not reported as long-term debt per GASB 87. For more information on GASB 87 Leases, please refer to Note 12 of the FY 2022 ACFR. ** DHCD ERAP Loan (Note) was issued in FY2022 totaling $3,426,935.00 City of Chula Vista
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Bond Ratings
Description Rating Agency Bond Rating
2014 Refunding COP Moody’s Aa3
2015 Refunding COP Moody’s Aa3
2016 Refunding COP Moody’s Aa3
2016 Lease Revenue Refunding Bonds Standard & Poor’s AA- 2017 Lease Revenue Bonds Standard & Poor’s AA-
Lease Revenue Bonds Series 2D17A Standard & Poor’s AA- Lease Revenue Bonds Series 2D17B Standard & Poor’s AA- 2021 Taxable Pension Obligation Bonds Standard & Poor’s AA 2016 Tax Allocation Refunding Bonds Standard & Poor’s A+ This section discusses the various types of long-term debt that the City has incurred. Bond financings, notes payable, capital leases and advances from other funds are the traditional forms of long-term debt that the City has incurred. However, also captured in this section are professional estimates derived from actuarial studies for workers compensation and general liability claims. In addition, the Finance Department provides an estimate of the City’s liability for compensated absences as of the end of each fiscal year. The following sections discuss the details of the City’s long-term debt.
Tax Allocation Bonds ($19.0 million)
Tax Allocation Bonds (TABS) are issued by the Agency and utilize tax increment revenue for debt service. The 2016 Tax Allocation Refunding Bonds were issued to refund the 2006 Senior Tax Allocation Refunding Bonds, Series A, the 2006 Subordinate Tax Allocation Refunding Bonds, Series B and the 2008 Tax Allocation Refunding Bonds.
Certificates of Participation / Lease Revenue Bonds ($114.2 million) As of June 30, 2023, the City currently has three outstanding Certificates of Participation and four outstanding Lease Revenue Bonds. In February 2014, the Chula Vista Public Financing Authority (CVPFA) issued the 2014 COP to refund the 2002 COP (Police Facility Project), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. In September 2015, the CVPFA issued the 2015 COP to refund the 2004 COP (Civic Center Project Phase I) and partially refund the 2006 COP (Civic Center Project Phase II), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. In July 2016, the CVPFA issued the 2016 COP to refund the remaining 2006 COP (Civic Center Project Phase II), fund a reserve fund and to pay the costs incurred in connection with the execution and delivery of the Certificates. In July 2016, the Chula Vista Municipal Financing Authority (CVMFA) issued the 2016 Lease Revenue Refunding Bonds (LRRB) to refund the 2010 COP (Capital Facilities Refunding Projects) and to fund a reserve fund. In July 2017, the CVMFA issued the 2017 Lease Revenue Bonds (LRB) to finance infrastructure, facilities and equipment and pay the costs incurred in connection with the issuance of the Bonds using Measure P Sales Tax as the dedicated revenue source for the debt service payments. In December 2017, the CVMFA issued the Lease Revenue Bonds Series 2017A and the Lease Revenue Bonds Series 2017B to finance photovoltaic energy systems at various City facilities, capitalize interest on the Bonds and pay the costs incurred in connection with the issuance of the Bonds.
Pension Obligation Bonds ($334.7 million)
In February 2021, the City of Chula Vista issued the Series 2021 Taxable Pension Obligation Bonds to pay all of the City’s currently unamortized, unfunded accrued actuarial liability to the California Public Employees Retirement System with respect to the City’s defined benefit retirement plans for City employees, to pay the premium for a municipal bond insurance policy for the Insured Bonds, and to pay costs of issuance of the Bonds.
Bond Premium ($111.9 million)
The premium is composed of seven bond issuances. One premium is in connection with the 2014 COP refunding bonds. The original amount of the premium is $3,537,111 and will be amortized over the life of the bonds. The City of Chula Vista
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second premium is related to the 2015 COP refunding bonds. The original amount of the premium is $2,262,493 and will be amortized over the life of the bonds. The third premium is related to the 2016 COP refunding bonds. The original amount of the premium is $319,652 and will be amortized over the life of the bonds. The fourth premium is related to the 2016 LRRB. The original amount of the premium is $2,516,621 and will be amortized over the life of the bonds. The fifth premium is related to the 2016 TARBs. The original amount of the premium is $4,687,799 and will be amortized over the life of the bonds. The sixth premium is related to the 2017 LRB. The original amount of the premium is $10,008,509 and will be amortized over the life of the bonds. The seventh premium is related to the Lease Revenue Bonds Series 2017B. The original amount of the premium is $135,516 and will be amortized over the life of the bonds.
Financed Purchases ($6.7 million)
In July 2013, the City Council authorized a 16-year lease purchase agreement with Banc of America to fund various solar energy projects for City facilities. The original amount of the loan was $2,121,500 and will be repaid through future energy savings.
In August 2016, the City entered into a 10-year capital lease agreement with JPMorgan Chase Bank for the acquisition of one Pierce Aerial Ladder Truck. The original amount of the lease is $1,229,470.
In June 2017, the City entered into a 10-year Capital Lease Agreement with Motorola Solutions, Inc. for the acquisition of a PSA System. The original amount of the lease is $1,351,409.
In September 2018, the City entered into a 10-year Capital Lease Agreement with JP Morgan Chase Bank N.A. for one Pierce Arrow XT Triple Combination Pumper/Fire Engine. The original amount of the loan was $720,785.92 In July 2020, the City entered into a 5-year Capital Lease Agreement with Banc of America Public Capital Corporation for one Pierce Aerial Ladder Truck and one Pierce Arrow XT Triple Combination Pumper/Fire Engine. The original amount of the loan was $2,273,805.24
In July 2020, the City entered into a 5-year Capital Lease Agreement with Banc of America Public Capital Corporation for additional equipment related to the $2,273,805.24 lease agreement above. The original amount of the loan was $4,493,100.00.
Notes/Loans Payable ($4.2 million)
In September 2007, the City Council authorized the City’s participation in the California Energy Commission and San Diego Gas and Electric On-Bill Financing program. The loans were to bridge the financial gap between energy conservation project capital costs and available rebates for energy conservation equipment. The original loan amount, which is paid in full, was $665,884 for the On-Bill Financing program. In fiscal year 2012 additional loans, totaling $3.7 million were entered into with the California Energy Commission.
In December 2012, the City entered into a lease purchase agreement with Banc of America to purchase certain energy conservation equipment. The agreement would bridge the financial gap between the Municipal Streetlight Retrofit Project capital costs and the available rebates for energy conservation equipment. The original loan amount was $2.7 million.
CDBG Section 108 Loan ($3.9 million)
The City entered into a contract for Loan Guarantee Assistance with the U.S. Department of Housing and Urban Development (HUD) as part of the Section 108 Loan Program in the amount of $9,500,000 in June 2008. The Section 108 Loan is an “advance” of future CDBG entitlement funds and as such is repaid with a portion of the City’s annual entitlement. Proceeds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for 20 years.
On November 27, 2018, the City received notice from HUD regarding the opportunity to refinance the existing loan with a lower interest rate. On December 6, 2018, the City notified HUD of its election to redeem the current note. The City signed the agreement for the refinancing on January 23, 2019. This refinancing will result in cost savings to the City from lower interest rates received during the remaining life of the loan.
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Miscellaneous Claims Payable ($31 million)
The Miscellaneous Claims Payable represents the probable amount of loss as estimated by legal counsel and risk management staff due to worker’s compensation and general liability claims filed against the City.
Compensated Absences ($11 million)
The obligation for Compensated Absences represents the estimated dollar value of accumulated leave balances, primarily vacation leave, for employees that would have to be paid off if all permanent employees were terminated as of June 30, 2022.
Advances From Other Funds ($38.2 million)
Per Resolution 2015-035 of the City Council, interfund loans from the Transportation Development Impact Fee to the Fire Suppression System expansion component of the Public Development Impact Fee were consolidated into one loan totaling $10,500,000. The principal balance for the loan was $8,150,862 as of June 30, 2022. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City’s pooled investment earning rate on a quarterly basis.
City Council authorized a loan to Western PAD from Eastern PAD in the amount of $9,630,000 to acquire the 14.41 acre site located in the lower Sweetwater Valley owned by the Redevelopment Agency and $310,000 to acquire the 1.89 acre site located at Auto Park Place, Chula Vista. Per Resolution 2015-035 of the City Council, these loans were consolidated. The loan will be repaid as funds become available, either as a result of credit acquisitions by the Agency or the payment of PAD fees by developers in western Chula Vista; in conjunction with Council Policy No 200-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City’s pooled investment earning rate on a quarterly basis. The principal balance was $9,219,238 as of June 30, 2022. The Agency will ensure that PAD funds are repaid to fully fund the development of the park for which they were originally collected.
The City Council authorized and set terms for loans from the Trunk Sewer fund to Salt Creek for $16,848,381, to the Storm Drain fund for $744,612, and $803,331 from the Sewer Facility fund for capital improvement projects, via Resolution 2015-035. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City’s pooled investment earning rate on a quarterly basis. The principal balance was $18,001,404 on June 30, 2022, of which all $18,001,404 is outstanding from the Sewer Fund to the Sewer Development Impact Fees Fund and the portion due from the Sewer Fund to the Storm Drain Fund has been paid in full.
On June 23, 2020, The City Council authorized a loan from the Measure A Fund to the Enterprise Transport Program Fund to cover start-up costs related to the new Ambulance Transport Services Program in the amount of $4,881,710, via Resolution 2020-152. The total loan utilized was only $3,209,317.49. The loan will be repaid from the final reimbursement under the City’s expiring ambulance services contract plus revenues generated from the initial years of the Fire Department’s Ambulance Services Operations, but no later than after 5 years of ambulance service operations. The principal balance was $2,783,148.65 as of June 30, 2022.
General Fund Long-Term Debt for Fiscal Year 2023
The General Fund’s annual debt service “commitment” for the Certificates of Participation and the Lease Revenue Bonds and Pension Obligation Bonds in fiscal year 2024 is approximately $33.8 million, or 13.1% of the General Fund operating budget. However, it must be noted that although this amount is truly a General Fund commitment, only $23.6 million will actually be paid from General Fund resources, with the remaining amount paid from available development impact fees and residential construction tax. The $23.6 million represents approximately 9.1% of the General Fund operating budget. The $33.8 million represents ongoing level debt service payments as depicted in the following chart.
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Millions
Fiscal Years 2024 through 2044
Notes:
(1) Actual payments are funded by the General Fund, Development Impact Fee Funds, Residential Construction Tax, Gas Tax, City Jail, Advance Life Support Program, Federal Grants, Environmental Services, Chula Vista Housing Authority, Central Garage Fund, Development Services Fund and Sewer Service Fund, however all debt service obligations are backed by the General Fund. (2) The 2002 COP was refunded in FY2013 and became the 2014 Refunding COP. The 2004 COP was refunded and the 2006 was partially refunded and became the 2015 Refunding COP. The 2006 COP was refunded and became the 2016 Refunding COP. The 2010 COP was refunded and became the 2016 Lease Revenue Refunding Bonds.
Annual Debt Service Obligation of the General Fund
2014 Ref COP 2015 Ref COP 2016 Ref COP 2016 LRBB 2017 LRB 2017A LRB 2017B LRB 2021 POB
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
FY 2030
FY 2031
FY 2032
FY 2033
FY 2034
FY 2035
FY 2036
FY 2037
FY 2038
FY 2039
FY 2040
FY 2041
FY 2042
FY 2043
FY 2044
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
SERVICE IMPACTS
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Service Impacts
The service level impacts of an annual operating budget are the changes in the quantity and quality of the services provided by a City year over year. As economic cycles occur and City revenues rise and fall, it becomes a challenge to maintain service levels and implement a sustainable budget. In accordance with the City of Chula Vista’s budget priorities and Strategic Plan, the fiscal year 2024 Proposed Budget includes various changes in how services are funded and delivered. Departmental service impacts are highlighted in the Department Summary Reports section of this document under Significant Budget Adjustments & Service Impacts . Highlights of changes in services funding are described below.
Services Funding
In general, local governments provide many services to the general population at no charge, such as public safety, libraries, and roadways and park maintenance. These services are paid for with general revenues that the City receives, including taxes, charges for services, user fees and a variety of other smaller types of general revenues.
Tax Changes
Tax revenue is generally unrestricted and allocated to the City’s General Fund for programming expenditures. The City collects several types of tax revenue, such as property tax, sales tax, utility users’ tax, business license tax and transient occupancy tax. A discussion on the City’s major revenue sources, legislative factors and trends impacting these revenues is provided in the General Fund Revenue Summary section of this document.
There are no changes in tax rates planned for Fiscal Year 2024.
Fees Changes
Cities also offer many services that provide a specific benefit to the requesting party, for which a fee is assessed.
Development plans review, building inspections, golf greens, and public park space rentals are examples of some of the services the City provides that are paid for directly by the public—residents, non-residents, businesses, developers, etc.–based on receiving a specific benefit.
The City’s Master Fee Schedule was adopted to set the fees for a variety of services the City provides directly to the public. Fees levels are generally regulated by state laws (Propositions 13, 26 and 218) and the Citywide Cost Recovery Policy 159-03. City fees may not exceed the reasonable cost of providing a service/benefit (with exceptions) and are to be periodically reviewed in order to keep pace with changes in the cost of living (Consumer Price Index) and methods or levels of service delivery. All changes to the Master Fee Schedule are approved by City Council.
The full Master Fee Schedule can be accessed at the following link: www.chulavistaca.gov/departments/finance/ master-fee-schedule.
A summary of the changes made to the Master Fee Schedule during the Fiscal year 2023 and during the development of the Fiscal Year 2024 Proposed Budget is outlined below.
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Description Change Fund Impact Justification
Development & In-Lieu
Fees
Varies; See Master
Fee Schedule
- Chapter 16:
Development & In-
Lieu Fees
The City of Chula Vista has
experienced tremendous growth
in recent decades that brings
demand for additional public
facilities to meet the needs of
residents, workers, consumers,
and all those who visit our
beautiful City. To ensure new
growth pays its proportionate
share of needed expansions
and upgrades to infrastructure
and facilities, the City assesses
Development Impact Fees (DIFs)
and in-lieu fees on building
permits for new development in
the City.
In California, the Mitigation Fee Act (Government Code
§§66000-66025) and the Quimby Act (Government
Code §66477) allow the City to assess development
impact fees (DIFs) and in-lieu fees. The fee rates
are calculated to ensure that they are assessed
proportional to the impact created by new development,
and the proceeds from these fees can only be spent on
expanding or upgrading infrastructure that can be used
by the occupants of the new development in the DIF’s
“area of benefit.”
Several City administered DIF and in-lieu fees are
subject to an annual automatic rate increase, as
determined by a given published index. Fees are
calculated by identifying a connection between the need for the new or expanded public facilities paid for by the DIF and the forecasted impact of growth in that DIF’s
area of benefit. Fees are adjusted annually, effective
October 1, usually using Engineering News Record’s
(ENR) Historical Construction Cost Indices (CCI). DIFs
may be periodically reviewed and updated by City
Council to accommodate rising construction costs and
changes in growth or need for facilities.
Sewer Service Charge
(Sewer Rates)
Rate increase of 5%
starting July 1, 2023,
an increase of 5%
starting July 1, 2024,
and an increase of
5.5% starting July 1,
2025.
Sewer Service Revenue and
Trunk Sewer Capital Funds will
increase revenues for FY 2022-
23 through FY 2025-26 to ensure
sewer expenses are covered and
reserves met.
Based on an independent financial rate study of the
City’s sewer services, rate increases are needed to fund the cost of operating and maintaining the City’s sewer
collection system, investment in the infrastructure
needed to provide the service consistent with applicable federal, state, and local laws, and to ensure adequate
financial reserves.
ACCOUNTING
SYSTEMS AND
BUDGETARY
CONTROL
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Each fund is considered an autonomous accounting entity. Funds are used to separate the various financial activities of the City and to demonstrate compliance with specific regulations, restrictions, or limitations. This may include demonstrating that restricted revenues are spent only for allowable purposes.
Budgetary Funds
Proprietary FundsGovernmental Funds
Enterprise
Funds
Internal
Service Funds
Debt Service
Funds
Capital Project
Funds
Special
Revenue FundsGeneral Fund
Sewer Funds
Development
Services Fund
Transport
Enterprise
Accounting Systems and Budgetary Control
The City of Chula Vista’s budget provides an overview of the fiscal and operational status of the City, highlighting policy issues, decisions, and changes in service levels. The budget is comprised of a series of funds used to account for revenues and expenditures. These funds are generally categorized as governmental or proprietary funds.
Funds Structure
Governmental funds include activities associated with the operations of the City such as the provision of library, recreation, and public safety services. Special revenue funds, capital project funds, debt service funds, and the City’s general fund are different types of governmental funds.
Proprietary funds are used to account for activities often found in the private sector including two fund types:
enterprise funds and internal service funds. Operations of the development service and sewer systems are accounted for as enterprise funds. Examples of functions accounted for by internal service funds include fleet management and worker’s compensation.
Budget Book Organization
The budget document is organized around the following major funds – General Fund, Development Services Fund, Redevelopment Retirement Obligation Fund and Successor Agency to the Redevelopment Agency Funds, Sewer Funds, Fleet Service Funds, Capital Projects Funds, Debt Service Funds, and Other Funds. Details about each of these funds can be found in the corresponding sections of the document.
City of Chula Vista Fund Structure
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Basis of Accounting & Budgeting
The City’s accounting records and budget are prepared and maintained using a modified accrual basis of accounting– less unrealized gains or losses resulting from the change in fair value of investments–which follows the accounting practices for governmental units as recommended by the Governmental Accounting Standards Board. Basic City operations are accounted for in the City’s General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion. Generally, revenues are recorded when measurable and available, and liabilities are recorded when incurred.
Internal Controls
In administering the City’s accounting systems, primary consideration is given to the adequacy of internal accounting controls, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation necessarily involves estimates and judgments by management.
It is believed that the City’s internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions.
Budgetary Control
The City Charter charges the Director of Finance with the responsibility to supervise and be responsible for the disbursement of all monies and have control over all expenditures to ensure that budget appropriations are not exceeded. The level of budgetary control, that is the level at which expenditures are not to exceed Council approved appropriations, is established at the department and expenditure category level (e.g., personnel services, supplies and services, capital).
Budget Modifications
Any budget modification that would result in an appropriation increase requires City Council approval. The City Manager and Finance Director are jointly authorized to transfer up to $75,000 of appropriations between expenditure categories within a departmental budget. Any appropriations transfer between departments, in excess of $75,000, and transfers from CIP projects, require City Council approval.
Encumbrances
An encumbrance (commitment) accounting system is utilized as a technique to enhance budgetary control during the fiscal year. Appropriations encumbered (committed) at year-end may be carried forward with City Manager approval and are available to be used for those commitments during the subsequent fiscal year. Unspent and unencumbered appropriations lapse at year-end and become generally available for re-appropriation the following fiscal year.
LIST OF ACRONYMS
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List of Acronyms
A
ACFR: Annual Comprehensive Financial Report
ADA: Americans with Disabilities Act
ADR: Alternative Dispute Resolution
ALS: Advanced Life Support
AMP: Asset Management Plan
AMS: Asset Management System
ARRA: American Recovery and Reinvestment Act
ARPA: American Rescue Plan Act of 2021
ATP: Active Transportation Program
B
BIG: Business Improvement Grant
BFDIF: Bayfront Development Impact Fee
BMS: Building Management System
BRT: Bus Rapid Transit
BTA: Bicycle Transportation Account
C
CAD: Computer Aided Dispatch
CalPERS: California Public Employees Retirement System CAL TRUST: Investment Trust of California
CAPPO: California Association of Public Purchasing Officers CBAG: California Border Alliance Group
CDBG: Community Development Block Grant
CEC: California Energy Commission
CES: Conservation Environmental Services
CFD: Community Facility District
CIP: Capital Improvement Plan/Project/Program
CLSA: California Library Services Act
CMP: Corrugated Metal Pipe
CMT: Constant Maturity Treasury
CONF: Confidential
COP: Certificate of Participation
CPI: Consumer Price Index
CREBS: Clean Renewable Energy Bonds
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CTC: California Transportation Commission
CVBMP: Chula Vista Bayfront Master Plan
CVACF: Chula Vista Animal Care Facility
CVEA: Chula Vista Employee’s Association
CVPD: Chula Vista Police Department
CVT: Chula Vista Transit
D
DAR: Direct Access Ramp
DASH: Dynamic After School Hours
DIF: Development Impact Fee
DMS: Drainage Management System
DVP: Delivery Versus Payment
E
EEBG: Energy Efficiency Block Grant
EOC: Emergency Operation Center
ERAF: Educational Revenue Augmentation Fund
ESL: English as a Second Language
EUC: Eastern Urban Center
F
FCIP: Fire Company Inspection Program
FDIC: Federal Deposit Insurance Corporation
FF: Firefighters
FHLB: Federal Home Loan Bank
FHLMC: Federal Home Loan Mortgage Corporation
FHWA: Federal Highway Administration
FICB: Federal Intermediate Credit Bank
FLB: Federal Land Bank
FLSA: Fair Labor Standards Act
FMS: Fleet Management System
FNMA: Federal National Mortgage Association
FPPC: Fair Political Practices Commission
FREBE: Free Resource Energy Business Evaluation
FSE: Fire Safety Engineering
FTA: Federal Transit Administration
FTE: Full-Time Equivalent
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FY: Fiscal Year
G
GAAP: Generally Accepted Accounting Principles
GDP: Gross Domestic Product
GFOA: Government Finance Officers of America
GGMS: General Government Management System
GIS: Geographic Information System
GMOC: Growth Management Oversight Committee
GNMA: Government National Mortgage Association
GUC: General Use Certificates
H
HBP: Highway Bridge Program
HOV: High Occupancy Vehicle
HR: Human Resources
HRIS: Human Resources Information System
HSIP: Highway Safety Improvement Program
HUD: Housing and Urban Development
HVAC: Heating\Ventilation\Air Conditioning
I
IAFF: International Association of Firefighters
ITS: Information Technology Services
L
LAIF: Local Agency Investment Fund
LAN: Local Area Network
LRT: Light Rail Trolley
M
MGD: Million Gallons per Day
MHZ: Megahertz
MLA: Master Lease Agreement
MOU: Memorandum of Understanding
MSCP: Multiple Species Conservation Plan
MTDB: Metropolitan Transit Development Board
MTS: Metropolitan Transit System
City of Chula Vista
Proposed Budget FY 2024
Appendix → LIST OF ACRONYMS
354
N
NCD: Negotiable Certificate of Deposit
NEP: Neighborhood Reinvestment Program
NFPA: National Fire Protection Association
O
OPEB: Other Post-Employment Benefits
OSMS: Open Space Management System
P
PACE: Parcel Assessed Clean Energy
PAD: Park Acquisition and Development
PCI: Pavement Condition Index
PFDIF: Public Facilities Development Impact Fees
PLF: Public Library Foundation Act
PL TP: Point Loma Treatment Plant
PMS: Parks Management System
POA: Police Officers Association
POB: Pension Obligation Bond
PUC: Public Utilities Commission
R
RCS: Regional Communications System
RCT: Residential Construction Tax
RDA: Redevelopment Agency
RFP: Request for Proposals
RMS: Roadway Management System
ROI: Return on Investment
RTIP: Regional Transportation Improvement Program
RWQCB: Regional Water Quality Control Board
S
SANDAG: San Diego Association of Governments
SANDPIPA: San Diego Pooled Insurance Policy Association SBA: Small Business Association
SBBRT: South Bay Bus Rapid Transit
SDAR: San Diego Association of Realtors
SGIP: Smart Growth Initiative Program
SHOPP: State Highway Operations and Protection Program
City of Chula Vista
Proposed Budget FY 2024
Appendix → LIST OF ACRONYMS
355
SLMA: Student Loan Marketing Association
SLFRF: State and Local Fiscal Recovery Funds
SR2s: Safe Routes to School
SRO: School Resource Officer
STRETCH: Safe Time For Recreation, Enrichment And Tutoring SWBAMLA: Southwest Border Anti-Money Laundering Alliance T
TABS: Tax Allocation Bonds
TARBS: Tax Allocation Refunding Bonds
TDA: Transportation Development Act
TDIF: Transportation Development Impact Fee
TOT: Transient Occupancy Tax
TUT: Telephone Users’ Tax
TVA: Tennessee Valley Authorities
U
UUT: Utility Users’ Tax
V
VLF: Vehicle License Fee
W
WCE: Western Council of Engineers
WWMP: Wastewater Master Plan
WMS: Wastewater Management System
W-TDIF: Western Transportation Development Impact Fee
GLOSSARY
City of Chula Vista
Proposed Budget FY 2024
Appendix → GLOSSARY
357
Glossary
A
Accrual Basis of Accounting – A method of accounting by which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements.
Accounting System – The collective set of records and procedures used to record, classify, and report information on the financial status and operations of the City.
Accounts Payable – Amounts owed by the City to external entities for goods and services received.
Accounts Receivable – Amounts due to the City from external entities for goods and services furnished.
Adopted Budget – The title of the budget following its formal adoption by resolution of the City Council.
Ad Valorem – In proportion to value, a basis for levy of taxes on property.
Amended Budget – The title of the budget version that includes all amendments to the Adopted Budget approved by Council throughout the fiscal year.
Amortization – Accounting technique used to spread out the costs for the use of a long-term asset over the expected period the long-term asset will provide value. Amortization schedules are used to present a repayment schedule on a specific maturity (due) date.
Appropriation – A legislative act by the City Council authorizing the expenditure of a designated amount of public funds for a specific purpose.
Audit – An examination of City records and accounts by an external source to check their validity and accuracy.
B
Balanced Budget – The amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. For budgeting purposes, the use of contingency reserves or use of fund balance will be considered revenue in defining a balanced budget.
Bond – A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Bond Premium – Occurs when the interest rate on the bond (“coupon rate”) is more than the market interest rate.
Investors are willing to pay more for the bond than its face value, creating a premium. The excess investors pay for the bond is classified as a premium and is amortized over the life of the bond.
Budget – A spending plan and policy guide comprising an itemized summary of the City’s probable expenditures and revenues for a given fiscal year.
C
Calendar Year (CY) – The 12-month period from January through December.
Capital Expenditures – A specific undertaking involving procurement, construction or installation of facilities or related equipment which improves, preserves, enhances or modernizes the City’s provision of municipal services, has a useful life of at least five years, and costs in excess of $10,000.
Capital Improvement Program – An ongoing five-year plan of single and multiple-year capital expenditures which is updated annually.
Capital Improvement Project (CIP) – Any major capital investment with a value of $50,000 or more and a minimum useful life of five years at a fixed location. CIPs may include construction or major repair of City buildings and facilities such as streets, roads, storm drains, traffic signals, parks, community centers, etc.
City of Chula Vista
Proposed Budget FY 2024
Appendix → GLOSSARY
358
Capital Project Funds – Funds that are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds.
Clean Renewable Energy Bonds (CREBs) – A certificate of debt issued by a government to finance renewable energy projects.
Community Development Block Grant (CDBG) Funds – Funds received from the federal government and expenditures as prescribed under the Community Development Grant Program.
D
Debt Service Funds – Funds used for payment of interest and principal to holders of the City’s various debt instruments.
Deferred Maintenance – A backlog of needed repairs to City facilities including facility maintenance, painting and structural repairs.
Depreciation – The expense incurred with the expiration of a capital asset.
Direct Costs – Operational expenditures exclusive to a specific service or program.
Discretionary Revenue – Revenues that are generated by general or specific taxing authority such as Property or Sales Taxes.
E
Encumbrance – The designation or reserving of funds to buy an item or service.
Enterprise Funds – Funds established to account for specific services funded directly by fees and charges to users such as sewer services. These funds are intended to be self-supporting.
Expenditure – The actual outlay of monies set aside by appropriation for identified goods and services.
F
Fiscal Year (FY) – The twelve-month period beginning July 1st and ending June 30th of the subsequent calendar year.
Fixed Assets – An asset with a useful life greater than three years.
Fringe Benefits – This consists of the costs to provide employee benefits that include the flexible benefit program, insurance, and retirement.
Full-time Equivalent Positions (FTE) – The conversion of part-time, temporary, or volunteer positions to a decimal equivalent of a full-time position based on an annual amount of 2,080 hours worked.
Fund – A set of interrelated accounts to record revenues and expenditures.
Fund Balance – The excess of an entity’s assets over its liabilities. A negative fund balance is sometimes referred to as a fund deficit.
G
Generally Accepted Accounting Principles – A uniform set of minimum standards for external financial accounting and reporting.
Gann Appropriation Limit – A State of California mandated appropriation limit imposed on local jurisdictions.
General Fund – The City’s main operating fund that is used to pay for City services.
General Plan – The fundamental policy document that guides the City’s future growth and development.
General Revenue – See Discretionary Revenue.
City of Chula Vista
Proposed Budget FY 2024
Appendix → GLOSSARY
359
Governmental Funds – Funds that are typically used to account for tax-supported activities. These include the general fund, special revenue funds, debt service funds, and capital project funds.
Grants – A contribution by a government or other organization to provide funding for a specific project. Grants can either be classified as capital projects or programmatic, depending on the grant.
I
Indirect Cost – Costs that are essential to the operation of the City but not exclusive to any specific service or program.
Indirect costs are primarily associated with support departments such as City Clerk, City Attorney, Administration, Information Technology Services (ITS), Human Resources, and Finance.
Infrastructure – Basic physical assets such as buildings, streets, sewers, and parks.
Interest Expense – Interest costs paid by the City of Chula Vista on loans and bonds.
Internal Service Funds – Funds that are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis.
L
Levy – To impose or collect a tax, special assessments, or charges for the support of City services.
Liability – Debt or other legal obligations arising out of past transactions that will be liquidated, renewed, or refunded at some future date.
M
Major Fund – Funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of the total for their fund category (governmental or enterprise) and 5% of the aggregate of all governmental and enterprise funds in total. The general fund is always considered a major fund.
Memorandum of Understanding (MOU) – A document detailing the outcomes of labor negotiations between the City and its various bargaining units.
Modified Accrual Basis of Accounting – A method of accounting in which revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred.
Municipal Code – A collection of ordinances approved by City Council.
N
Non-Capital Improvement Project Expenditures – Expenditures in this category are for large maintenance costs, studies, and various community outreach programs. By their nature, these maintenance upkeeps and programs are expended beyond a one-year period. Recording these types of expenditures in an operating type budget would skew the comparison of budgets from year to year, because of this, the City finds it more efficient to record these types of expenditures in the Non-Capital Improvement Project category.
Non-Major Fund – All funds which do not meet the criteria for a major fund. Major funds are funds where revenues, expenditures/expenses, assets or liabilities are at least 10% of the total for their fund category (governmental or enterprise) and 5% of the aggregate of all governmental and enterprise funds in total.
O
Operating Budget – Costs associated with the ongoing municipal services.
Ordinance – A formal legislative enactment by the City Council.
Other Expenditures – All budgeted expenditures that do not fall into one of the following primary expenditure categories: Personnel, Supplies and Services, Utilities, Transfers Out, CIP and Non-CIP Projects, and Capital.
City of Chula Vista
Proposed Budget FY 2024
Appendix → GLOSSARY
360
P
Personnel Services Expenditures – Expenses related to employee compensation including salaries, wages, and benefits.
Program Revenue – Revenues generated by a given activity.
Proposed Budget – The title of the budget prior to its formal adoption by resolution of the City Council.
Proprietary Funds – Funds used to account for a government’s business-type activities, which are supported, at least in part, by fees or charges.
R
Reserves – The portion of the General Fund balance set aside for contingencies.
Resolution – A special order of the City Council that requires less legal formality than an Ordinance.
Revenue – Funds received from various sources to finance expenditures.
S
Salary Savings – A budgeting tool, shown as negative expenses, which lowers the total Personnel Services budget based on the likelihood of unfilled positions during the year. The target amount varies based on vacancy trends, normal attrition, leaves of absence and under-filled positions.
Sewer Funds – Funds that account for revenues and expenditures related to the City’s sewer programs, including maintenance and expansion of the City’s conveyance system and payment of Metro Sewer treatment costs.
Special Revenue Funds – Funds that are used to account for proceeds derived from specific revenues sources, which are legally restricted to expenditures for special purposes. (e.g., Transportation Funds, Parking Funds, Public Safety Funds)
Spending Plan – A preliminary budget approved by Council contingent upon subsequent adoption of appropriations.
Supplies and Services Expenditures – Expenditures for supplies required for the daily operation of the City and for contractual and professional services.
T
Transfers Out Expenditures – Expenditures in this category are the authorized exchanges of cash, positions, or other resources between organizational units.
U
Utilities Expenditures – Expenses related to the consumption of services including electricity, natural gas, water, and telephone services.
Y
Yield – The rate of return earned on an investment based on the price paid.