Clayton City Council
June 20, 2023

STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: Bret Prebula, City Manager
DATE: June 20, 2023
SUBJECT: Cancellation of August 1, 2023 City Council meeting ___________________________________________________________________________

RECOMMENDATION
It is recommended the City Council, by minute motion, cancel its regular public meeting scheduled to be held on Tuesday, August 1, 2023.

BACKGROUND
Clayton Municipal Code Section 2.04.010 specifies the regular public meetings of the Clayton City Council shall be held on the first and third Tuesdays of each and every month.

SUGGESTED CANCELLATION OF August 1, 2023 MEETING
As of this writing there are no critical items that would need to be heard at the August 1, 2023 meeting.

To provide optimum notice of meeting cancellation to interested members of the public and to our community as well as to arrange scheduling of agenda matters for the August 15th City Council meeting, the matter has been placed on this Agenda for advance notice, consideration, and action.

FISCAL IMPACT
There is no adverse financial impact to the City for cancellation of City Council meetings.

Nominal savings occur for expenses incurred in the preparation, publication, and holding of a Council meeting (e.g. staff time, paper and copying expenses, meeting room utilities, video-taping of the meetings for livestreaming and cable television re-broadcast).

Agenda Item: 6(g)
1 STAFF REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Dana Ayers, AICP, Community Development Director
DATE: June 20, 2023
SUBJECT: Approve by Minute Order: 1) Amendment to the Professional Services Agreement with Precision Civil Engineering for Preparation of PreReviewed Accessory Dwelling Unit (ADU) Plans and an ADU Guidebook, to Extend the Term of the Agreement to December 31, 2023 and Increase the Amount Paid for Services to $65,000; and 2) Appropriation of an Additional $10,500 in Reimbursable Funds from the Senate Bill 2 Planning Grants Program to the Project
___________________________________________________________________________

RECOMMENDATION
It is recommended that the City Council approve by minute order the attached amendment extending the term of the professional services agreement with Precision Civil Engineering (PCE) for their consulting services to prepare pre-reviewed ADU plans and an ADU guidebook for residents interested in building an ADU in Clayton. The amendment would increase the not-toexceed amount for services from $54,500 to $$65,000, to cover additional design costs, and it would extend the term of the professional services agreement to December 31, 2023. Staff also recommends that the Council approve by minute order the appropriation of an additional $10,500 in reimbursable funds from the Senate Bill 2 Planning Grants Program related to the amendment.

BACKGROUND
On December 17, 2019, the City Council adopted Resolution No. 50-2019 authorizing City staff to submit an application for funding through the Senate Bill (SB) 2 Planning Grants Program (PGP) implemented by the California Department of Housing and Development (HCD). The scope of the planning efforts to which the grant funds were to be applied included revision of the City’s ADU ordinance to align with state law, and creation of prereviewed architectural plans for ADUs. The intent of the program was to streamline the permitting process for construction of ADUs by eliminating the time and cost a property owner would have to spend on preparation and plan check of individual plans for a new ADU on a residential property.
2 On March 1, 2022, the Council adopted Resolution No. 18-2022 approving a professional services agreement with PCE for PCE to provide up to six unique ADU floor plans, each with three unique elevations, and a guidebook with narrative instructions for property owners interested in building an ADU on their properties in Clayton. The not-to-exceed cost specified in the agreement was $54,500, and the work was projected to be completed within roughly eight months in alignment with funding and reimbursement deadlines of the SB2 PGP grant program.

DISCUSSION
To date, PCE has prepared a draft guidebook for ADU construction, and they have completed their work supporting City staff in drafting the ADU ordinance update, which the Council adopted on April 4, 2023. The attached amendment to the professional services agreement with PCE would increase the not-to-exceed amount of the agreement from $54,500 to $65,000 and extend its term through the end of this calendar year to cover additional costs and time necessary for finalization of the pre-reviewed ADU plans.

PCE has designed each of the six ADU plans and their respective elevations, in accordance with the scope of the agreement. The additional budget is being requested to address necessary revisions to the plans to address changes to the California Building Code that became effective on January 1, 2023. PCE created a pre-reviewed ADU plan program for the City of Oakley that the Oakley City Council adopted in October 2021. Four of the plans scoped for Clayton’s ADU plan program are taken from the Oakley’s ADU plan program and were designed and plan checked under the prior building code. The two additional plans to be added for Clayton’s program were also designed last year under the prior building code.

Plans for one of the ADU models went through check in the Contra Costa County Building Department (the City’s contracted plan check, permitting and inspections office) in March/April this year. PCE is incorporating the comments that staff received from the plan check of the first ADU plan across the complete set of six plans, and all six plans will be resubmitted to the County for plan check in July. PCE has requested an increase in the notto-exceed amount from $54,500 to $65,000 to update all six plans to comply with current building code.

Additionally, on December 2, 2022, HCD approved an extension on the term of the City’s SB2 PGP grant through December 31, 2023. Staff recommends that the term of the contract with PCE be extended through the end of the calendar year to align with the current term of the grant program deadline, though it is anticipated that the remaining work authorized under the contract will be completed by fall of this year.

FISCAL IMPACTS
The contract costs for PCE’s work are eligible expenses under the SB2 PGP. SB2 PGP is a reimbursable grant, meaning that the City must expend the funds and submit documentation for reimbursement from HCD. Thus, there could be a delay of six or more months where the City must front the full cost of the contract as amended, while waiting for reimbursement. 3 The SB 2 PGP does not require a local financial commitment or “match” from the local jurisdiction.

ENVIRONMENTAL
The scope of PCE’s work to support creation of a pre-reviewed ADU plan program is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15262 (Feasibility and Planning Studies). Upon implementation of the pre-reviewed ADU plan program, future construction of ADUs would be exempt from CEQA under CEQA Guidelines section 15303, Class 3, New Construction or Conversion of Small Structures.

ATTACHMENT
First Amendment to the Professional Services Agreement between the City of Clayton, California, and Precision Civil Engineering

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF CLAYTON, CALIFORNIA, AND MIG, INC.

This First Amendment to the Professional Services Agreement (“First Amendment”) is entered into on June 20, 2023, by and amongst the City of Clayton, California ("City''), a municipal corporation, and Precision Civil Engineering, Inc., a California Corporation ("Consultant").

RECITALS
A. WHEREAS, on March 1, 2022, the City and Consultant entered into that certain Professional Services Agreement to perform all necessary professional planning services for the City ("Agreement");
B. WHEREAS, the City and Consultant mutually desire to amend certain provisions of the Agreement which the parties hereby acknowledge and agree as follows:

AGREEMENT
Now therefore, in exchange for goods and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Section 2. Compensation, subsection b, is amended to read as follows:

In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $54,500.00 $65,000.00. This amount is to cover all printing and related costs, and the City will not pay additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.

2. Section 5. Time of Performance, is amended to read as follows:

Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). Consultant shall complete the services required hereunder within 240 calendar days of receipt of the Notice to Proceed. This Agreement will expire on December 31, 2023, unless there is a mutually agreed to extension. The Notice to Proceed shall set forth the date of commencement of work.

3. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement dated March 1, 2022, shall remain in full force and effect.

SIGNATURE PAGE FOR THE FIRST AMENDMENT TO PROFESSIONAL SERVICES

AGREEMENT BETWEEN CITY OF CLAYTON, CALIFORNIA,
AND PRECISION CIVIL ENGINEERING, INC.

IN WITNESS WHEREOF, the parties have executed this First Amendment to the Professional Services Agreement on the date above written.

CITY OF CLAYTON, CALIFORNIA
By:

Bret Prebula
City Manager
PRECISION CIVIL ENGINEERING, INC.

By: __________________________
Printed Name: ____________________
Title: ____________________________
ATTEST:

Janet Calderon, CityClerk
This is to certify that Kate McSherry has honorably served as Mayor for a Night and successfully led the Clayton City Council in opening the meeting and leading the Pledge of Allegiance. Therefore, I, Jeff Wan, Mayor of Clayton do hereby declare Wednesday, June 21, 2023 as Kate McSherry Day in Clayton. ___________________________________________
Jeff Wan, Mayor
Mayor for the Day
KATE McSHERRY
This is to certify that Alex McSherry has honorably served as Mayor for a Night and successfully led the Clayton City Council in opening the meeting and leading the Pledge of Allegiance. Therefore, I, Jeff Wan, Mayor of Clayton do hereby declare Thursday, June 22, 2023 as Alex McSherry Day in Clayton. ___________________________________________
Jeff Wan, Mayor
Mayor for the Day
ALEX McSHERRY
Agenda Item: 9(a)
1 STAFF REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: William Tarbox, Director of Public Works, City of Concord Bret Prebula, City Manager, City of Clayton
DATE: June 20, 2023
SUBJECT: Consider Adoption of Resolution Updating the City’s Annual Sewer Service Charges
___________________________________________________________________________

RECOMMENDATION
Open the public hearing, receive public testimony, close the public hearing, determine if there is a majority protest, and if there is not a majority protest, adopt the above referenced Resolution.

BACKGROUND
City of Concord Staff and Bartle Wells Associates met with the Infrastructure and Franchise Committee in March 2023. After consideration of materials, public comment and discussion with staff, the Committee proposed an annual revenue increase of 6% per year for the next four years. In April, notices of proposed sewer service charges were mailed pursuant to Article XIII-D, Section 6 of the California Constitution (Proposition 218).

The City of Concord administers a Sewer Enterprise to provide for maintenance, repair, and operation of the sanitary sewer collection systems in the cities of Concord and Clayton, and some unincorporated county properties. The Sewer Enterprise contracts with the Central Contra Costa Sanitary District (CCCSD) to provide wastewater treatment and disposal of both cities’ sewage at CCCSD’s treatment plant by paying a proportionate share of the maintenance, operation, and capital improvement costs at the treatment plant, and at the Household Hazardous Waste Facility. Currently, that share is approximately 31.2%.
2 In FY 2022-23, the City of Concord budgeted $5.2 million for collection system capital.

BWA’s financial projections are designed to gradually phase in $20 million of City collection system project cash funding each year by FY 2031-32. This size of capital improvements is estimated to be necessary given the total estimated replacement cost of the City’s collection system is approximately $1 billion, and the useful life on the collection system is estimated to be 50 to 60 years.

In 2022, staff initiated a rate study to evaluate the City’s operational and maintenance needs and necessary rate increases to allow for a sustainable Sewer Enterprise program. BWA drafted a Sewer Rate Study ("Study" or “Sewer Rate Study”), dated May 2023, which provided a cost of service analysis that determined the sewer service charges necessary to fund the City’s sewer system (attached as Exhibit A to Attachment 1). The Study concluded that existing sewer rates will not produce sufficient revenue to fund the revenue requirements in future years. The conclusions of the report included the need to increase annual sewer revenues to maintain solvency and long-term financial health of the sewer fund and the need to increase the investment in the repair and replacement of the collection system. Exhibit B to Attachment 1 ((Amendment to Master Fee Schedule (Exhibit A to Resolution 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord), referred as the “Updated Annual Sewer Service Charges”) reflects the proposed updated rates.

DISCUSSION
Based upon the committee’s recommendations, the City’s 10-Year Sewer Enterprise Financial Forecast (Forecast) includes scheduled rate increases every year to fund additional anticipated requirements for operations, maintenance, and capital improvements for both Concord and Clayton sewer facilities and CCCSD. The Budget currently proposes annual rate increases of 6% per year for Fiscal Years 2023-24 through 2026-27 (for which Council is being asked to consider and act on).

The proposed rate increases for the next four fiscal years are requested for the following reasons:
• Cover rate increases by CCCSD to the City of Concord
• Maintain the system reserve funds
• Allow for needed capital improvements
• Properly staff the maintenance operations team
As mentioned earlier in this report, the City pays CCCSD for 31.2% of both the treatment plant operations and the treatment plant capital improvements based on the City’s volume of sewer waste processed at the plant. CCCSD updated their financial model for cost of services using financial assumptions that include capital investment in infrastructure and operating and maintenance expenses. The proposed rates are calculated to include costs identified in CCCSD”s updated financial model. 3 The proposed Resolution sets forth annual sewer service charges based upon the proposed rates calculated in the Study. Adoption of the proposed Resolution would increase the current service charge of $717 to $760 for FY 2023-24, $806 for FY 2024- 25, $854 for FY 2025-26, and to $905 for FY 2026-27. The proposed increase was expressed in a Proposition 218 notification that was mailed to all property owners in the Cities of Concord and Clayton, whose properties benefit from the sewer collection system. The proposed increase represents a 6% increase per year over the next four years. The other sewer service charges will also increase as detailed in the Study and set forth in the proposed Resolution.

FISCAL IMPACTS
To pay for the obligations discussed above and maintain a positive Sewer Enterprise fund balance, the annual sewer service charges need to be increased by 6% per year for Fiscal Years 2023-24 through 2026-27. Further periodic increases in the annual sewer service charge will be necessary in the future to continue operations and capital improvements for sewer service while maintaining a positive fund balance in the Sewer Enterprise fund.

ATTACHMENTS

1. Resolution Approving and Imposing Annual Sewer Service Charges on Real Properties within the City of Clayton Commencing Fiscal year 2023-24 Through Fiscal Year 2026-

27. (19 pages)

2. Clayton Mailer (2 pages)

3. Public Hearing Notice (1 page)

4. Clayton PowerPoint Presentation

5. Supporting Documents presented to the Concord City Council on June 6, 2023 (33 pages)
RESOLUTION NO. XX-2023

A RESOLUTION APPROVING AND IMPOSING ANNUAL SEWER SERVICE

CHARGES ON REAL PROPERTIES WITHIN THE CITY OF CLAYTON
COMMENCING FISCAL YEAR 2023-24 THROUGH FISCAL YEAR 2026-27

THE CITY COUNCIL
City of Clayton, California
WHEREAS, since its incorporation in 1964, the City of Clayton has owned and has a municipal sewerage system of collection and transmission gravity-flow lines which ultimately result in the treatment and lawful discharge of effluent through the off-site permitted treatment plant of Contra Costa Sanitary Sewer District; and WHEREAS, since 1966 the City of Clayton has contracted with the City of Concord for connection to its sewerage transmission line system for connection to the off-site treatment plant, and all residents of Clayton and Concord who use Concord’s sanitary sewer system will share equally in the operation and maintenance of that system on a self-sustaining basis; and
WHEREAS, in 1991 a new Sewer Services Agreement was approved between the cities of Clayton and Concord in which Concord agreed to furnish all sewer services to Clayton after construction of any new municipal sewer lines, mains, and laterals by Clayton, and all portions of the sewerage system within Clayton shall be maintained and repaired by Concord in the same manner and extent to similar conditions as the sewerage system within Concord, and which Agreement further stipulated that all connection fees and annual service charges imposed by the City of Concord within Clayton shall be identical to those rates imposed within the City of Concord; and WHEREAS, Chapter 13.08 of the Clayton Municipal Code provides among other matters that Clayton residents receiving sewer services from Concord shall pay all fees and charges lawfully imposed by Concord for such services; and WHEREAS, in 2014 the San Francisco Regional Water Quality Control Board declared Clayton is a separate municipal sewerage system from the City of Concord and for the first time assigned Clayton a distinct CIWQS WDID number thereby holding Clayton accountable and responsible for its own system; and WHEREAS, over these years the City of Concord periodically calculates the annual sewer service rates it requires to operate and maintain both sewerage systems, and to contract for and pay for combined sewage influent treatment and lawful discharge through the Contra Costa Sanitary Sewer District; and
WHEREAS, the revenues derived from the sewer service charges will not exceed the funds required to provide the services for which the sewer service charges are imposed, and will be used exclusively for the operation and maintenance of the City’s sewer systems, as applicable; and
WHEREAS, the sewer service charges are equitable to all customer classes; and WHEREAS, the amount of the sewer service charges will not exceed the proportional ______________________________________________________________________________ Resolution No. XX- 2023 Page 2 June 20, 2023
cost of the service attributable to each parcel upon which they are proposed for imposition;
WHEREAS, the sewer service charges will not be imposed on a parcel unless the service for which such charge is imposed, is actually used by, or immediately available to, the owner of the parcel;
WHEREAS, article XIII D, section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing any increase to the Charges, the City shall provide written notice (the “Notice”) by mail of the new or increased Charges to the record owner of each parcel upon which the Charges are proposed for imposition and any tenant directly liable for payment of the Charges, the amount of the Charges proposed to be imposed on each parcel, the basis upon which the Charges were calculated, the reason for the Charges, and the date time and location of a public hearing (the “Hearing”) on the proposed Charges;
WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenant directly liable for the payment of the Charges not less than forty-five days prior to the Hearing on the proposed Charges; WHEREAS, in its contracted fiduciary responsibility the City of Concord has performed the incumbent work to determine the annual sewer service charges by occupancy in Clayton and in Concord for the next four (4) fiscal years, and did mail the Notice to all real property owners in Clayton on April 21, 2023 informing a Public Hearing under Proposition 218 will be held in Clayton on Tuesday, June 20, 2023 at 7:00 p.m. in Hoyer Hall of the Clayton Community Library and via Zoom; and WHEREAS, on June 6, 2023 the City of Concord conducted a public hearing, considered testimony, at the conclusion of the hearing determined that a majority protest did not exist, and adopted a Resolution Updating the City’s Annual Sewer Service Charges and Amending the Master Fee Schedule (Exhibit A to Resolution No. 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord; and
WHEREAS, the duly-noticed Public Hearing under the provisions of Proposition 218 was held June 20, 2023 in the place, manner and time duly noticed and at which an oral and written staff presentation was made to the Clayton City Council on the proposed annual increase in the various annual sewer service charges over the next four (4) fiscal years, as specifically listed in Attachment A to this Resolution as if fully set forth herein; and
WHEREAS, at the time of this writing the City of Clayton did not receive written protest to the proposed annual increase to the various annual sewer service charges it does intend to impose, ande will continue to receive any opposition through the time of the Public Hearing; and
WHEREAS, at the conclusion of the Proposition 218 Public Hearing the Clayton City Council will determine the number of protests received to the proposed four-year annual sewer rate increases. If said protests are insufficient in number to override the ______________________________________________________________________________ Resolution No. XX- 2023 Page 3 June 20, 2023
City Council’s necessity to impose the proposed annual sewer rate increases in the interest of public health, safety and welfare. Council shall approve the propsoed rate increases; and
WHEREAS, for reference the documents approved by the City of Concord are attached to this agenda item.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Clayton, California does hereby find, determine and approve as follows:

Section 1. The above Recitals are true and correct facts pertaining to this matter before the Clayton City Council and were relied upon in part as to its determination in this matter.

Section 2. The four (4) fiscal years’ annual sewer service rates as listed in Attachment A, a true and correct copy of which is attached hereto as if fully incorporated herein, are hereby approved and herein authorized for annual levy upon each real property within the city of Clayton according to its occupancy. In the event the sewer service rates included in Attachment A hereto are inconsistent with any other fee or charge of the City, it is the express intent of the City Council that the sewer service rates listed in Attachment A shall supersede.

Section 3. The City of Concord is hereby requested and duly authorized to implement the levy of each respective annual sewer service rate upon each real property within the city of Clayton and to manage said annual revenues pursuant to terms and provisions of the existing Sewer Services Agreement between the two cities.

PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California at a regular public meeting thereof held on the 20th day of June 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

THE CITY COUNCIL OF CLAYTON, CA
_________________________________
Jeff Wan, Mayor
ATTEST:
___________________________________
Janet Calderon, City Clerk
______________________________________________________________________________ Resolution No. XX- 2023 Page 4 June 20, 2023
Attachment:

A. Four (4) Fiscal Year Annual Sewer Service Charges
NoƟce to Property Owners of a Proposed Four-Year
Increase in the Annual Sewer Service Charge
Charge Classification Existing Charge Proposed Charge (per year) FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27
Residential Owners Minimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Each single-family dwelling unit $717.00 $760.00 $806.00 $854.00 $905.00 Each dwelling unit in a multiple dwelling structure $717.00 (per unit) $760.00 $806.00 $854.00 $905.00 Mobile Home Park $717.00 (per space) $760.00 $806.00 $854.00 $905.00 Commercial Owners - Charge based upon quantity of water used in hundred cubic feet (HCF)Minimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Bowling Alleys (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Car Washes (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Health Studios and Gymnasiums (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Hospitals - Convalescent (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Multiple Lodging Structures (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Laundromats and Laundries (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Restaurants (per HCF) $12.61 $13.38 $14.18 $15.03 $15.93 Restaurants w/ pretreatment (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05 Bakeries (Determined Individually) N/A N/A N/A N/A N/A All others (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05 Institutional OwnersMinimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 As defined in Section 13.05.010 of the Concord Municipal Code (except for Convalescent Hospitals noted above) (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05
Industrial OwnersMinimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Flow (per million gallons) $5,563.00 $5,893.00 $6,247.00 $6,622.00 $7,019.00 Biochemical Oxygen Demand (BOD) (per thousand pounds) $1,307.00 $1,382.00 $1,465.00 $1,553.00 $1,646.00 Suspended Solid (SS) (per thousand pounds) $1,113.00 $1,217.00 $1,290.00 $1,367.00 $1,449.00

PRSRT STD
U.S. POSTAGE
PAID

CONCORD, CA
PERMIT NO. 207
The City of Clayton owns its sanitary sewer system, but has always contracted with the City of Concord for
operaƟon and maintenance of the system, including the
calculaƟon of operaƟon and maintenance fees. Central
San then treats Concord and Clayton’s sewage.

The City of Concord is proposing an increase to the
fees that property owners pay for sewer service. The
fee is proposed to increase each year over the next
four years. Since your property is connected to
Clayton’s sanitary sewer system, this increase will
affect you.

The current annual Sewer Service Charge for residenƟal
properƟes is $717 per year which is insufficient to cover the increasing operaƟonal costs of conveying and
treaƟng sewage. Your sewage is collected by the City of Concord and treated by Central San. New regulaƟons
and aging infrastructure are driving up operaƟonal
costs. Therefore, the Sewer Service Charge for
residenƟal properƟes is proposed to increase to: $760
for Fiscal Year (FY) 2023/24; $806 for FY 2024/25; $854 for FY 2025/26; and $905 for FY 2026/27.

Commercial rates are proposed to increase as well
but are based upon water usage and may vary from
these amounts.

The amount of the fee is calculated by the City of
Concord to fairly apporƟon applicable costs amongst
sewer users according to the cost of providing service
to that user; a detailed rate study was prepared to
calculate the proposed charges.

New rates will commence on July 1 of each year.

Services Covered by the Sewer Service Charge
www.claytonca.gov
Most of the Sewer Fund’s expenses are aƩributed to
the daily treatment of Concord and Clayton’s sewage at
the Central Contra Costa Sanitary District’s (Central San) treatment plant. The costs include the maintenance,
operaƟon, and capital improvements at the treatment
plant; and a proporƟonal share (based upon
populaƟon), of the cost to operate the Household
Hazardous Waste Facility (HHWF). 72% of the amount
you pay for sewer services goes to Central San for these items.

The remaining expenses include the cost of operaƟng the city’s sanitary sewer system, rouƟne maintenance,
replacement and repair, and emergency reserves.

The Sewer Service Charge is collected annually via your property taxes. It appears in the “Special Taxes &
Assessments” porƟon of the Property Tax Bill as either“Concord Res Sewer,” “Clayton Res Sewer,” “Concord Com Sewer” or “Clayton Com Sewer.” system.

NoƟce of Proposed Rate Increases &
Public Hearing on
Tuesday June 20, 2023
at 7:00 p.m.

Clayton Community Library - Hoyer Hall
6125 Clayton Road
NoƟce to Clayton Property Owners
Annual Sewer Charges by Occupancy Sewer Service Charge
City of Clayton
6000 Heritage Trail
Clayton, CA 94517
www.claytonca.gov
Annual Sewer Charge Regional Bill Comparison (does not capture neighboring agency increases effecƟve July 1, 2023) NOTICE IS HEREBY GIVEN, that the City Council of the City of Clayton will hold a PUBLIC HEARING on this maƩer in Hoyer Hall, Clayton Community Library, 6125 Clayton Road, on June 20, 2023 (or as soon thereaŌer as the maƩer can be heard), at which Ɵme and place interested persons may appear and be heard. WriƩen protests on the proposed increase in the annual sewer service charge may be mailed or delivered to the City Clerk at 6000 Heritage Trail, Clayton, CA 94517. Your leƩer must idenƟfy the real property you own by the service address or assessor’s parcel number. Your leƩer must be legibly signed by any one of the current property owners or customers on record and must be received prior to the close of the Public Hearing on June 20, 2023. Only one protest per parcel will be counted. The sewer service charge cannot be increased if a majority protest is received before the close of the public hearing. There is a 120-day statute of limitaƟons for challenging any new, increased, or extended fee or charge.

For further informaƟon on the proposed increase, please email the City of Concord Public Works Department at [email protected]
Reasons for the Proposed Increase NoƟce of Public Hearing in Clayton It is necessary to increase the Sewer Service Charge due to several factors:
 Central San is compleƟng upgrades to its treatment plant, of which the Sewer Fund must pay its proporƟonal share. The upgrades are necessary to comply with regulaƟons and are increasing your rates.  Central San’s cost to treat sewage is increasing. There are several items related to this, such as chemicals, energy (electricity and natural gas), labor and disposal. The proporƟonal share of these costs is passed onto the City of Concord by Central San.  The cost to operate the Household Hazardous Waste Facility (a State mandated requirement).  PorƟons of the sanitary sewer system are reaching the end of their useful life and need to be replaced. The City of Concord is planning several rehabilitaƟon projects over the next four years, including structural repairs and capacity upgrades of the sanitary sewer system.
 The Sewer Reserve Fund needs to be increased so that money is available in the event of an emergency, such as a catastrophic sewer line failure.
$342.00
$495.72
$520.20
$530.21
$540.24
$243.00
$615.77
$638.23
$641.35
$657.00
$711.00
$717.00
$738.60
$760.00
$769.44
$779.76
$814.20
$690.00
$676.50
$916.32
$1,041.80
$1,048.00
$455.16
$318.96
$1,113.84
$364.63
$237.60
$647.28
$830.52
$514.08
$130
Average $781
$342
$496 $520 $530 $540 $608 $616 $638 $641 $657 $711 $717 $739 $760 $769 $780 $814 $820 $914 $916
$1,042 $1,048 $1,102 $1,149
$1,628
$0
$200$400$600$800
$1,000$1,200$1,400$1,600
Single Family Residence Annual Wastewater Bills July 1, 2022 (6 HCF/Month Winter Water Usage)
Fixed Rates Variable Rates Ad Valorem Taxes Average
Concord/Clayton
Current
*Agency charges additional ad valorem taxes for sewerenterprise costs.

Concord/Clayton
Proposed
FY23/24

NOTICE OF PUBLIC HEARING RESOLUTION

AUTHORIZING COLLECTION OF ANNUAL

SEWER SERVICE FEES AND CHARGES
NOTICE IS HEREBY GIVEN
that
the
City
Council
of
the
City
of
Clayton
will
hold
a
PUBLIC HEARING
to
consider
adoption
of
a
resolution
authorizing
collection
of
annual
sewer
service fees
and
charges.

The PUBLIC HEARING
will
be
held
in
the
Council
Chamber,
located
at
Hoyer
Hall,
Clayton Community
Library,
6125
Clayton
Road,
on
Tuesday, June 20, 2023, at 7:00 p.m.
(or
as
soon
thereafter
as
the
matter
can
be
heard)
at
which
time
and
place
interested
persons
may
appear
and
be
heard.
All
information
regarding
the
increased
fees
is
publicly
available
for review
at
the
City
at
6000
Heritage
Trail,
Clayton,
CA
94517
and/or
on
the
City's
website
at https://claytonca.gov/fc/maintenance/84535
%20Sewer%20Mailer_Clayton.pdf

Further
details
for
viewing
and
participating
in
the
June 20,
2023
City
Council
meeting
will
be
published
in
the
meeting
agenda.

For
further
information
on
the
above
matter,
please
contact
the
Concord
Public
Works
Department
at
(925)
671-3448.
If
you
require
this notice
in
an
appropriate
alternative
format,
or
seek
any
other
disability
accommodation,
please
contact
the
City
Clerk
at
(925)
673-7304.

Janet
Calderon
City
Clerk
DATED:

June
8,
2023
June
15,
2023
CCT# 6757091 June 8, 15, 2023

Staff Report
Date: June 6, 2023
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: William Tarbox, Director of Public Works
Prepared by: Craig Blythe, Administrative Services Manager [email protected]
(925) 671-3141
Subject: Considering adoption of resolution updating the City’s Annual Sewer Service Charges and amending the Master Fee
Schedule (Exhibit A to Resolution No. 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord).

CEQA: Exempt/not a project per Public Resources Code
Section 21065, 14 Cal Code Reg. Sections 15060(c)(2),
15060(c)(3), 15273, 15378 and/or 15061(b)(3).

Report in Brief
Increases in projected expenditures necessitate an increase in the City’s annual sewer service charges. Increases in the sewer service charges require a Proposition 218 notification1 and are subject to a majority protest process. Proposition 218 notification of Public Hearing was mailed to all customers and property owners.

The City recently engaged the services of Bartle Wells Associates (BWA), a consulting firm that specializes in sewer rate studies. BWA conducted a full evaluation of the City’s sewer rates and developed recommendations for consideration. Staff and the Infrastructure and Franchise Committee (Obringer & Hoffmeister) recommend that the City Council open the public hearing, receive public testimony, and upon determination that no majority protest exists, adopt a Resolution increasing the minimum annual sewer 1 A Proposition 218 Notice is a document mailed to all affected property owners providing notice of the date, time and place of a public hearing scheduled for the purpose of considering increases to rates.

City Council Agenda Report
Agenda Item No. 10.a
June 6, 2023
service charge from $717 to $760 for FY 2023-24, $806 for FY 2024-25, $854 for FY 2025-26, and to $905 for FY 2026-27 (Attachment 1). All other sewer service charges will also be increased as shown in Attachment 1.

Recommended Action
Open the public hearing, receive public testimony, close the public hearing, determine if there is a majority protest, and if there is not a majority protest, adopt the above referenced Resolution.

Background
Staff and Bartle Wells Associates met with the Infrastructure and Franchise Committee in March 2023. After consideration of materials, public comment and discussion with staff, the Committee proposed an annual rate revenue increase of 6% per year for the next four years. In April, notices of proposed sewer service charges were mailed pursuant to Article XIII-D, Section 6 of the California Constitution (Proposition 218).

The City administers a Sewer Enterprise to provide for maintenance, repair, and operation of the sanitary sewer collection systems in the cities of Concord and Clayton, and some unincorporated county properties. The Sewer Enterprise contracts with the Central Contra Costa Sanitary District (CCCSD) to provide wastewater treatment and disposal of both cities’ sewage at CCCSD’s treatment plant by paying a proportionate share of the maintenance, operation, and capital improvement costs at the treatment plant, and at the Household Hazardous Waste Facility. Currently, that share is approximately 31.2%.

In FY 2022-23, the City budgeted $5.2 million for collection system capital. BWA’s financial projections are designed to gradually phase in $20 million of City collection system project cash funding each year by FY 2031-32. This size of capital improvements is estimated to be necessary given the total estimated replacement cost of the City’s collection system is approximately $1 billion, and the useful life on the collection system is estimated to be 50 to 60 years.

In 2022, staff initiated a rate study to evaluate the City’s operational and maintenance needs and necessary rate increases to allow for a sustainable Sewer Enterprise program. BWA drafted a Sewer Rate Study ("Study" or “Sewer Rate Study”), dated May 2023, which provided a cost of service analysis that determined the sewer service charges necessary to fund the City’s sewer system (attached as Exhibit A to Attachment 1). The Study concluded that existing sewer rates will not produce sufficient revenue to fund the revenue requirements in future years. The conclusions of the report included the need to increase annual sewer revenues to maintain solvency and long-term financial health of the sewer fund and the need to increase the investment in the repair and replacement of the collection system. Exhibit B to Attachment 1 ((Amendment to Master Fee Schedule (Exhibit A to Resolution 78-6042 Establishing Fees and Charges City Council Agenda Report
Agenda Item No. 10.a
June 6, 2023
for Various Municipal Services in the City of Concord), referred as the “Updated Annual Sewer Service Charges”) reflects the proposed updated rates.

Analysis
BWA conducted a comprehensive financial analysis of the City's Sewer Enterprise, including a review of the current rate structure and an assessment of the costs associated with maintaining and operating the system. The analysis also included projected cost increases for the City's collection system operations (including new personnel, please see Attachment 2 which the Council will consider adding when it adopts the City’s Operating Budget on June 13, 2023), capital improvement program costs, estimated treatment plant operation cost increases, and the projected capital improvement program for CCCSD’s wastewater treatment plant.

Based upon the committee’s recommendations, the City’s 10-Year Sewer Enterprise Financial Forecast (Forecast) includes scheduled rate increases every year to fund additional anticipated requirements for operations, maintenance, and capital improvements for both Concord and Clayton sewer facilities and CCCSD. The Budget currently proposes annual rate increases of 6% per year for Fiscal Years 2023-24 through 2026-27 (for which Council is being asked to consider and act on).

The proposed rate increases for the next four fiscal years are requested for the following reasons:
 Cover rate increases by CCCSD to the City of Concord
 Maintain the system reserve funds
 Allow for needed capital improvements
 Properly staff the maintenance operations team
As mentioned earlier in this report, the City pays CCCSD for 31.2% of both the treatment plant operations and the treatment plant capital improvements based on the City’s volume of sewer waste processed at the plant. CCCSD updated their financial model for cost of services using financial assumptions that include capital investment in infrastructure and operating and maintenance expenses. The proposed rates are calculated to include costs identified in CCCSD”s updated financial model.

The proposed Resolution sets forth annual sewer service charges based upon the proposed rates calculated in the Study. Adoption of the proposed Resolution would increase the current service charge of $717 to $760 for FY 2023-24, $806 for FY 2024- 25, $854 for FY 2025-26, and to $905 for FY 2026-27. The proposed increase was expressed in a Proposition 218 notification that was mailed to all property owners in the Cities of Concord and Clayton, whose properties benefit from the sewer collection system. The proposed increase represents a 6% increase per year over the next four City Council Agenda Report
Agenda Item No. 10.a
June 6, 2023
years. The other sewer service charges will also increase as detailed in the Study and set forth in the proposed Resolution.

Many local agencies within the Bay Area are proposing sewer service rate increases.

As referenced in Attachment 3, many agencies already equal or exceed Concord’s proposed FY 2023-24 minimum service charge. Currently, the City’s annual sewer service charge is in the lower tier of rates in neighboring communities and would remain so after the proposed FY 2023-24 increase.

Alternatives
The City Council can choose not to approve a rate increase at this time. With this option, the sewer fund balance will need to cover expenses, and by FY 2027-28 there will not be a reserve available to cover the expenditures of future years.

Financial Impact
To pay for the obligations discussed above and maintain a positive Sewer Enterprise fund balance, the annual sewer service charges need to be increased by 6% per year for Fiscal Years 2023-24 through 2026-27. Further periodic increases in the annual sewer service charge will be necessary in the future to continue operations and capital improvements for sewer service while maintaining a positive fund balance in the Sewer Enterprise fund.

Public Contact
In addition to posting the City Council Agenda, Proposition 218 requires that the City notify by mail all property owners of record for parcels that would be subject to a potential increase in the annual sewer service charge. Notices were mailed to all record owners of parcels subject to the sewer service charges and to users of the sewer system within the City of Concord and portions of Contra Costa County on April 21, 2023 (Attachment 4). The mailing of the notices was completed by Prestige Printing and Graphics and a description of the process that was followed is included in Attachment 5.

The sewer service charge increase is subject to a majority protest process. Notices were mailed to all users of the sewer system within the City of Concord and portions of Contra Costa County on April 21, 2023. A separate notice was mailed to property owners in the City of Clayton, and a separate public hearing will be held in Clayton by the Clayton City Council on June 20, 2023. The notices advised property owners of the Council public hearing date and stated that all written protests must be received by the City Clerk prior to the closing of this public hearing. The notices indicated that the City Council would be considering approval of a maximum increase to $760 for FY 2023-24, to $806 for FY 2024-25, to $854 in FY 2025-26 and to $905 in FY 2026-27. As of the writing of this report, nine (9) written protests have been received by the City Clerk. Staff will update the City Council at the public hearing as to the total number of written protests received.

City Council Agenda Report
Agenda Item No. 10.a
June 6, 2023
Environmental Determination
Pursuant to the California Environmental Quality Act of 1970, Public Resources Code §21000, et seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively, “CEQA”), increasing the minimum annual sewer service charge and other corresponding charges does not constitute a “project” within the meaning of Public Resources Code Section 21065, 14 Cal Code Reg. Section 15060(c)(2), 15060(c)(3), 15273, or 15378 because it relates to fees and charges, and/or has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. In addition, this activity is categorically exempt pursuant to Section 15061(b)(3), “Review for Exemptions” of the CEQA Guidelines because there is no possibility that this activity may have a significant effect on the environment, and no further environmental review is required. No unusual circumstances are present. This determination reflects the City’s independent judgment and analysis.

Attachments

1. Resolution Updating the City’s Annual Sewer Service Charges and Amending the Master Fee Schedule (Exhibit A to Resolution No. 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord) Exhibit A – Sewer Rate Study
Exhibit B – Updated Annual Sewer Service Charges

2. Collection System Operations Personnel

3. Residential Sewer Service Charge Comparison

4. Proposition 218 Notice of Public Hearing

5. Memo Describing Process of Mailing Notice of Public Hearing Res. No. 23-XX 1

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
A Resolution Updating the City’s Annual Sewer
Service Charges and Amending the Master Fee
Schedule (Exhibit A to Resolution No. 78-6042
Establishing Fees and Charges for Various Municipal
Services in the City of Concord)
Resolution No. 23-XX
/
WHEREAS, the City Council provides a variety of municipal services, including sewer services; and
WHEREAS, the City Council adopted Resolution No. 78-6042 on October 9, 1978, establishing a master resolution within which various municipal fees and charges would be located; and
WHEREAS, the City hired Bartle Wells Associates (“BWA”) to evaluate the City’s operational and maintenance needs and any necessary sewer service charge increases to allow for a sustainable sewer enterprise program; and
WHEREAS, BWA submitted a Sewer Rate Study, dated May 2023 (“Sewer Rate Study”), which is attached hereto as Exhibit A and incorporated by reference and recommends a revised sewer service charge schedule for Fiscal Years 2023-24 through 2026-27; and WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Staff Report and attachments thereto:
(1) Revenues derived from the proposed sewer rates will not exceed the funds required to provide sewer service, respectively; and
(2) Revenues derived from the proposed sewer rates will not be used for any purpose other than that for they were imposed; and
(3) The amount of the sewer rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel; and (4) The sewer rates are imposed for a service for services that are actually used by, or immediately available to, the owner of the property in question; and Attachment 1
Res. No. 23-XX 2
(5) The sewer rates are not being imposed for general government services; and WHEREAS, pursuant to the provisions of Article XIIID, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing sewer rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the sewer rates together with an explanation of: (1) the amount of the proposed rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and
WHEREAS, Notice of the public hearing to consider proposed adjustments to the sewer rates was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons.

Art. XIIID, §6); and
WHEREAS, On June 6, 2023, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and WHEREAS, Government Code section 57356 allows public utility providers to adopt a schedule for inflation provided they do not apply for more than five-years and that the utility provider gives 30 days written notice to ratepayers each time a pass-through is implemented; and WHEREAS, to the extent that this resolution is determined to have resulted in the imposition of any fees, rates, or charges for services or facilities in connection with the sewer system providing services within the City’s territorial limits, those charges are adopted pursuant to California Health and Safety Code section 5471; and
WHEREAS, the City Council adopted Ordinance No. 19-3 on May 28, 2019, establishing Annual Sewer Service Charges; and
WHEREAS, Subdivision (f) of Section 13.05.020 of the Concord Municipal Code authorizes the City Council to change or update the City’s annual sewer service charges by resolution amending the Master Resolution Establishing Fees and Charges for Various Municipal Services; and Res. No. 23-XX 3
WHEREAS, the Director of Public Works has recommended that the City Council approve collection of established Annual Sewer Service Charges at updated rates, which are currently set forth in Exhibit B to this Resolution No. 23-XX (Amendment to Master Fee Schedule (Exhibit A to Resolution 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord), referred to as the “Updated Annual Sewer Service Charges”); and WHEREAS, the City Council, at its meeting of June 6, 2023, received a report from the Director of Public Works identifying the need for such changes.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 1. The foregoing recitals are incorporated by reference. Pursuant to the California Environmental Quality Act of 1970, Public Resources Code §21000, et seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively, “CEQA”), the update of Annual Sewer Fees and Charges does not constitute a “project” within the meaning of Public Resources Code Section 21065, 14 Cal Code Reg. Section 15060(c)(2), 15060(c)(3), 15273, or 15378 because it relates to fees and charges and/or has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. In addition, the Amendment is categorically exempt pursuant to Section 15061(b)(3), “Review for Exemptions” of the CEQA Guidelines because there is no possibility that updating established Annual Sewer Fees and Charges may have a significant effect on the environment, and no further environmental review is required. No unusual circumstances are present. This determination reflects the City’s independent judgement and analysis.

Section 2. The City Council accepts and approves the Sewer Rate Study (Exhibit A) setting forth the basis for the adopted sewer service charges.

Section 3. The sewer service charges established by this resolution for Fiscal Year 2023-24 shall become effective on July 1, 2023, as indicated in Exhibit B to this Resolution. The sewer service charges for Fiscal Years 2023-24, 2024-25, 2025-26, and 2026-27 will be effective as of July 1 of each such year, unless the Council determines otherwise by separate resolution.

Section 4. The Master Fee Schedule (Exhibit A to Resolution 78-6042) is hereby amended to Res. No. 23-XX 4
replace the existing Annual Sewer Service Charges with the Updated Annual Sewer Service Charges set forth in Exhibit B to this Resolution.

Section 5. This resolution shall become effective immediately upon its passage and adoption.

PASSED AND ADOPTED by the City Council of the City of Concord on June 6, 2023 by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly and regularly adopted at a regular meeting of the City Council of the City of Concord on June 6, 2023.

Joelle Fockler, MMC
City Clerk
APPROVED AS TO FORM:

Susanne Meyer Brown
City Attorney
Attachments: Exhibit A – Sewer Rate Study
Exhibit B – Updated Annual Sewer Service Charges
City of Concord
Sewer Rate Study
May 2023
Exhibit A to Attachment 1
Bartle Wells Associates
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel: 510.653.3399
www.bartlewells.com
Sewer Rate Study
May 2023
City of Concord
Prepared by:

May 25, 2023
Craig Blythe, Administration and Fleet Services Manager City of Concord
1455 Gasoline Alley
Concord, CA 94520
RE: Concord Sewer Rate Study
Bartle Wells Associates is pleased to submit the attached Sewer Rate Study. The study develops longterm financial projections and calculates new sewer rates designed to equitably recover the costs of providing service. The recommended rates are designed to meet the City’s operational and capital funding needs, comply with legal requirements, and be fair to all customers.

The proposed rates incorporate both overall rate increases needed to maintain the sewer enterprise’s financial stability and meet future funding needs. Rate increases are phased in over four years, with consistent annual increases.

We enjoyed working with the City on this assignment and appreciate the ongoing assistance and input received throughout the project. Please contact us anytime if you have questions about the recommendations in this report or other related issues.

Sincerely,

BARTLE WELLS ASSOCIATES
Douglas Dove, PE, CIPFA Michael DeGroot
Principal/President Vice President
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
4 CONTENTS

1. Executive Summary .......................................................................................................... 5

2. Current Sewer Rates ........................................................................................................ 7

3. Sewer Financial Plan ........................................................................................................ 8

4. Wastewater Strength Factors ......................................................................................... 12

5. Proposed Sewer Rates ................................................................................................... 13

6. Bill Impacts & Rate Survey ............................................................................................. 15 Tables
Table 1 – Historical and Current Rates
Table 2 – Sewer Enterprise Financial Projections
Table 3 – Wastewater Strength Factors
Table 4 – Proposed Rates
Table 5 – Residential Annual Bill Impacts
Charts
Chart A – 8-Year Financial Plan
Chart B – Rate Survey
Figures
Figure 1 – SP Global 2021 U.S. Municipal Water and Sewer Sector Medians 5 1. Executive Summary
Purpose
The City of Concord (“City”) retained Bartle Wells Associates (“BWA”) to develop a financial plan and cost of service study for the City’s sewer rates to ensure financial stability over the next four years (FY 2023/24 to FY 2026/27). The City last completed a rate study and Proposition 218 process in 2019 resulting in approved minimum rate increases from FY 2019/20 to FY 2022/23. The final increase was implemented July 1, 2022, resulting in the City reaching the end of the 4- year rate increase plan. The minimum annual sewer service charge increased from $592 to $717, however the implemented rates were below the maximum approved sewer service charges ($772 in FY 2022/23).

The City administers a Sewer Enterprise to provide for maintenance, repair, and operation of the sanitary sewer collection systems in the cities of Concord and Clayton, and some unincorporated county properties. The Sewer Enterprise contracts with the Central Contra Costa Sanitary District (CCCSD) to provide wastewater treatment and disposal of both cities’ sewage at CCCSD’s treatment plant by paying a proportionate share of the maintenance, operation, and capital improvement costs at the treatment plant, and at the Household Hazardous Waste Facility.

Currently, Concord’s share of CCCSD operating costs is approximately 31.2%.

Concord is projecting cost increases over the next eight years related to its share of the operating and maintenance and capital costs of Central San’s Treatment Plant (“WWTP”) and the ongoing operation and rehabilitation of its own sewer collection system.

Legal Authority
The statutory authority for levying sewer rates is included in Health and Safety Code section 5471 which states:
“…any entity shall have power, by an ordinance or resolution approved by a two-thirds vote of the members of the legislative body thereof, to prescribe, revise and collect, fees, tolls, rates, rentals, or other charges for services and facilities furnished by it, either within or without its territorial limits, in connection with its water, sanitation, storm drainage, or sewerage system.”
(California Health and Safety Code 5471)
Proposition 218
Proposition 218, the “Right to Vote on Taxes Act”, was approved by California voters in November 1996 and is codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 establishes requirements for imposing any new or increasing any existing property-related fees and charges. 6 The City must follow the procedural requirements of Proposition 218 for all sewer rate increases. These requirements include:

1. Noticing Requirement: The City must mail a notice of the proposed rate increases to all affected property owners. The notice must specify the amount of the fee, the basis upon which it was calculated, the reason for the fee, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.

2. Public Hearing: The City must hold a public hearing prior to adopting the proposed rate increases. The hearing must be held not less than 45 days after the required notices are mailed.

3. Rate Increases Subject to Majority Protest: At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners submit written protests against the proposed rate increases, the increases cannot be adopted.

Proposition 218 also established several substantive requirements that apply to sewer rates and charges, including:

1. Cost of Service: Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the “cost of service.” Agencies are allowed to carry a prudent level of reserves and to save cash for future projects or emergencies.

2. Intended Purpose: Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

3. Proportional Cost Recovery: The amount of the fee or charge levied on any customer shall not exceed the proportional cost of service attributable to that customer.

4. Availability of Service: No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property.

5. General Government Services: No fee or charge may be imposed for general governmental services where the service is available to the public at large.

Charges for water, sewer, and refuse collection are exempt from additional voting requirements of Proposition 218, provided the charges do not exceed the cost of providing service and are adopted pursuant to procedural requirements of Proposition 218.
7 2. Current Sewer Rates
Table 1 shows a summary of the current and historical City of Concord annual sewer rates. The City’s last rate increase went into effect July 1, 2022. Residential customers are billed a flat rate per equivalent dwelling unit (EDU), while nonresidential customers are charged based on annualized winter water usage, per hundred cubic feet (hcf), subject to a minimum charge. Industrial customers pay based on their actual flow and loadings, however there are currently no industrial customers charged in Concord. The charges are placed on the tax roll.

Table 1
City of Concord - Sewer Enterprise
Historical and Current Rates
FISCAL YEAR Units FY 2020/21 FY 2021/22 FY 2022/23

RESIDENTIAL OWNERS

1. Minimum rate for any premises $647 $672 $717

2. Each single-family dwelling unit # of dwellings $647 $672 $717

3. Each dwelling unit in a multiple dwelling structure # of dwellings $647 $672 $717

4. Mobile Home Park # of dwellings $647 $672 $717
COMMERCIAL OWNERS*

1. Minimum rate for any premises $647 $672 $717

2. Bowling Alleys (per HCF) Winter Usage (HCF) $5.72 $5.94 $6.34

3. Car Washes (per HCF) Winter Usage (HCF) $5.72 $5.94 $6.34

4. Health Studios and Gymnasiums Winter Usage (HCF) $5.72 $5.94 $6.34

5. Hospitals - Convalescent (per HCF) Winter Usage (HCF) $5.72 $5.94 $6.34

6. Multiple Lodging Structures (per HCF) Winter Usage (HCF) $5.72 $5.94 $6.34

7. Laundromats and Laundries (per HCF) Winter Usage (HCF) $5.72 $5.94 $6.34

8. Restaurants (per HCF) Winter Usage (HCF) $11.38 $11.82 $12.61 Restaurants with pretreatment facilities (per HCF) Winter Usage (HCF) $6.47 $6.72 $7.17

9. Bakeries Determined Individually Winter Usage (HCF) N/A N/A N/A

10. All others (per HCF) Winter Usage (HCF) $6.47 $6.72 $7.17 INSTITUTIONAL OWNERS*

1. Minimum rate for any premises $647 $672 $717

2. As defined in Section 110-31 (per HCF) Winter Usage (HCF) $6.47 $6.72 $7.17

INDUSTRIAL OWNERS

1. Minimum rate for any premises $647 $672 $717

2. Flow (per million gallons) MG $5,020 $5,214 $5,563

3. Biochemical Oxygen Demand (B.O.D.) (per thousand pound 1k pounds of bod $1,179 $1,225 $1,307

4. Suspended Solid (S.S.) (per thousand pounds) 1k pounds of ss $1,004 $1,043 $1,113 *Rate per Hundred Cubic Feet (HCF) of Winter Water Usage 8 3. Sewer Financial Plan
In Table 2, BWA developed an 8-year financial plan for the City’s sewer enterprise designed to fund operating and capital needs, maintain adequate fund reserves, and meet debt service coverage requirements. The financial plan serves as a roadmap for funding operating and capital programs and maintaining long-term financial health and determines the revenue requirement for the sewer rates.

Cash Fund Reserves
Figure 1 shows the SP Global 2021 U.S. Municipal Water and Sewer Sector Medians. 180 days of unrestricted cash reserves is a recommended minimum target to ensure adequate liquidity in case of unexpected expenditures. Sewer utilities typically carry between 90 days and 2 years of cash on hand. Concord’s wastewater utility cash on hand ranks in the middle of the ratings scale (348 days as of July 1, 2022).

Figure 1 – SP Global 2021 U.S. Municipal Water and Sewer Sector Medians Table 2 shows the Sewer Enterprise Financial Projections from FY 2023/24 to 2030/31. BWA projects that rate increases of 6% per year are required each year for the next 4 years (FY 2023/24 to FY 2026/27) to meet the City’s sewer expenses. Ongoing 6% increases in the next four-year rate period are estimated to be required. These rate increases will align the credit rating of the Sewer Enterprise fund balance of AA in Year 1 and AA in Year 4.

The financial projections are designed to meet a minimum operating reserve target of 180 days to ensure adequate liquidity in case of emergencies. The City is projected to meet a strong operating reserve amount of at least 400 days throughout the projection period. These financial targets are based on industry standard metrics to obtain a good credit rating. While the sewer enterprise financial projection does not anticipate additional borrowings at the current time, the sewer enterprise may need to do so in the future.

Outstanding Debt Service
The City’s outstanding debt is attributed to its 2012 and 2018 wastewater revenue refunding bonds.

Rating* AAA AA+ AA AA- A+ A A- BBB+ BBB BBBDays’
cash on
hand,
three-year
avg
670 600 566 493 438 360 334 198 160 90
*SP Global 2021 U.S. Municipal Water And Sewer Sector Medians 9 2012 Wastewater Revenue Refunding Bonds
 Refunded the City of Concord Certificates of Participation (2004 Wastewater System Improvement Project).  2004 Issuance was for $12,605,000.
 15 separate wastewater system capital improvement projects were funded by the 2004 COP.  Funded four phases of trunk sewer rehabilitation with three priority levels. 2018 Wastewater Revenue Refunding Bonds
 Refunded the City of Concord Certificates of Participation (2007 Wastewater System Improvement Project).  2007 issuance was for $12,820,000.
 2007 issuance funded the next phase of the Trunk Sewer Rehabilitation Project, initially financed from the 2004 Certificates.
 Installation of approximately 1,455 linear feet of 48-inch and 72-inch pipelines from the Concord Pump Station to a proposed A-Line Relief Interceptor pipeline constructed by CCCSD.

Capital Improvement Program
BWA’s financial projections are designed to gradually phase in $20 MM of City collection system project cash funding each year by FY 2031/32. This size of capital improvements is estimated to be necessary given the total estimated replacement cost of the City’s collection system is approximately $1 billion, and the useful life on the collection system is estimated to be 50 to 60 years. The City faces substantial capital improvements from CCCSD, which were inputted from CCCSD projections.

Operating Expenses
City operating costs are projected to increase by 5% per year based on estimated cost inflation. The City operating expenses include the addition of four new personnel. The new personnel include Lead Collection System Workers and Collection System Workers classification. CCCSD Sewer Operations and Household Hazard Waste were inputted from CCCSD projections.
10 Table 2
City of Concord - Sewer Enterprise
Sewer Enterprise Financial Projections - 6% Annual Increase ACCOUNT Budget
TITLE 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Beginning Unrestricted Balance $23,478,690 $27,003,336 $38,997,503 $39,749,915 $43,073,420 $43,355,144 $41,124,752 $40,239,241 $38,828,789 Rate Adjustments 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Rate, Effective July 1st $717.00 $760.00 $806.00 $854.00 $905.00 $959.00 $1,017.00 $1,078.00 $1,143.00 Estimated ERUs (0.5% Growth) 59,408 59,705 60,004 60,304 60,605 60,908 61,213 61,519 61,827 Budget
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31

SEWER - OPERATING REVENUES

1. Annual Sewer Service Charges $42,595,691 $45,375,996 $48,363,050 $51,499,447 $54,847,816 $58,411,106 $62,253,509 $66,317,433 $70,667,746 SUBTOTAL $42,595,691 $45,375,996 $48,363,050 $51,499,447 $54,847,816 $58,411,106 $62,253,509 $66,317,433 $70,667,746

SEWER - NON-OPERATING REVENUES

1. Interest on Reserves $111,506 $270,033 $389,975 $397,499 $430,734 $433,551 $411,248 $402,392 $388,288

2. Interfund Transfer In 151,420 0 0000000

3. Pavilion Loan Repayment 627,773 625,652 219,462 0 0 0 0 0 0 SUBTOTAL $890,699 $895,686 $609,438 $397,499 $430,734 $433,551 $411,248 $402,392 $388,288 Total Revenue $43,486,390 $46,271,681 $48,972,487 $51,896,947 $55,278,550 $58,844,657 $62,664,757 $66,719,825 $71,056,034 ACCOUNT Budget
TITLE 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 SEWER - INTERAGENCY OPERATING EXPENSES Costs sent from CCCSD

1. Interagency CCC Sewer Operations $18,587,172 $17,587,922 $18,321,043 $19,282,156 $20,104,733 $20,753,331 $19,611,296 $19,340,770 $20,157,846

2. Interagency Household Hazard Waste 823,253 864,416 907,637 953,019 1,000,670 1,050,703 1,103,238 1,158,400 1,216,320

3. Miscellaneous 584,179 613,388 644,057 676,260 710,073 745,577 782,856 821,999 863,098 SUBTOTAL $19,994,604 $19,065,726 $19,872,737 $20,911,435 $21,815,476 $22,549,611 $21,497,390 $21,321,169 $22,237,264 SEWER - CONCORD OPERATING EXPENSES 5% annual escalation New Positions (4) $250,860 $526,806 $553,146 $580,804 $609,844 $640,336 $672,353 $705,970 $741,269

1. Full Time Pay 1,159,516 1,217,492 1,278,367 1,342,285 1,409,399 1,479,869 1,553,863 1,631,556 1,713,134

2. Overtime 42,000 44,100 46,305 48,620 51,051 53,604 56,284 59,098 62,053

3. Benefits 1,144,854 1,202,096 1,262,201 1,325,311 1,391,577 1,461,155 1,534,213 1,610,924 1,691,470

4. Dues, Memberships, Subscriptions 3,000 3,150 3,308 3,473 3,647 3,829 4,020 4,221 4,432

5. Fees & Charges - County Collection Fees 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873

6. Meetings & Training 11,000 11,550 12,128 12,734 13,371 14,039 14,741 15,478 16,252

7. Office Expenses & Supplies 124,200 130,410 136,931 143,777 150,966 158,514 166,440 174,762 183,500

8. Insurance 72,218 75,829 79,620 83,601 87,781 92,170 96,779 101,618 106,699

9. Utilities 19,400 20,370 21,389 22,458 23,581 24,760 25,998 27,298 28,663

10. Administration - General Fund 1,170,478 1,229,002 1,290,452 1,354,975 1,422,723 1,493,859 1,568,552 1,646,980 1,729,329

11. Computer Expenses 109,611 115,092 120,846 126,889 133,233 139,895 146,889 154,234 161,945

12. Fleet Expenses 315,686 331,470 348,044 365,446 383,718 402,904 423,050 444,202 466,412

13. Purch of Fixed Assets - Real Property 140,000 147,000 154,350 162,068 170,171 178,679 187,613 196,994 206,844 SUBTOTAL $4,612,823 $5,106,867 $5,362,211 $5,630,321 $5,911,837 $6,207,429 $6,517,800 $6,843,691 $7,185,875 Total Operating Expenses $24,607,427 $24,172,593 $25,234,948 $26,541,756 $27,727,313 $28,757,040 $28,015,190 $28,164,859 $29,423,139 Net Revenue Before Capital (Loss) $18,878,963 $22,099,088 $23,737,539 $25,355,190 $27,551,237 $30,087,617 $34,649,566 $38,554,966 $41,632,894 Debt Service
2012 Wastewater Refunding $752,356 $751,856 $755,188 $752,175 $753,750 $748,050 $751,900 $0 $0 2018 Wastewater Refunding 766,950 762,450 766,950 764,950 761,700 767,200 760,950 764,950 765,950 SUBTOTAL $1,519,306 $1,514,306 $1,522,138 $1,517,125 $1,515,450 $1,515,250 $1,512,850 $764,950 $765,950 Debt Service Coverage 12.28 14.44 15.71 16.98 18.44 20.12 23.17 50.92 54.88

CAPITAL
CCC Capital Program $8,615,010 $2,925,615 $12,312,989 $10,364,561 $13,604,062 $16,652,760 $15,872,227 $20,142,968 $23,401,110 City Capital Improvement Program 5,220,000 5,665,000 9,150,000 10,150,000 12,150,000 14,150,000 18,150,000 19,057,500 19,687,500 SUBTOTAL $13,835,010 $8,590,615 $21,462,989 $20,514,561 $25,754,062 $30,802,760 $34,022,227 $39,200,468 $43,088,610 Total Exp & CIP $39,961,744 $34,277,515 $48,220,075 $48,573,442 $54,996,825 $61,075,050 $63,550,267 $68,130,277 $73,277,699 Net Revenue (Loss) $3,524,646 $11,994,167 $752,412 $3,323,504 $281,725 ($2,230,393) ($885,511) ($1,410,452) ($2,221,666) Ending Unrestricted Balance $27,003,336 $38,997,503 $39,749,915 $43,073,420 $43,355,144 $41,124,752 $40,239,241 $38,828,789 $36,607,123 Minimum Fund Target >180 Days 401 589 575 592 571 522 524 503 454 Recommended Minimum O&M Reserve (180 Days) $12,135,170 $11,920,731 $12,444,632 $13,089,085 $13,673,744 $14,181,554 $13,815,710 $13,889,520 $14,510,041 Projections
Projections
Projections
11 Chart A shows a graphical presentation of the 8-year financial projections. $0
$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Chart A: 8-Year Financial Plan - 6% Annual Increase for 4 Years, 6% For Next Four Years
City of Concord/Clayton Costs Debt ServiceConcord/Clayton Capital CCCSD CostsRate Revenues Under Proposed Rates Unrestricted Cash ReservesRecommended Minimum O&M Reserve (180 Days) 12 4. Wastewater Strength Factors
Table 3 shows the derivation of the wastewater strength factors. Based on a detailed review of sewer enterprise costs, system costs are allocated 58% to flow, 21% to biological oxygen demand (BOD) and 21% total suspended solids (TSS).

BWA uses this formula to calculate the strength factors for each customer class based on their estimated wastewater strength characteristics in milligrams per liter (mg/l).

Table 3
City of Concord
Wastewater Strength Factors
Strength Class
Examples: Residential High Strength Low Strength Medium Strength Flow (gpd) 205 205 205 205
BOD1
(mg/l) 185 600 150 185
TSS2
(mg/l) 210 500 135 210
Strength Factor 1.00 1.76 0.89 1.00
Strength Factor Formula SF=(Flow(gpd)/205)*(0.58+(0.21*BOD(mg/l)/185)+(0.21*TSS(mg/l)/210)) WW flows and strengths based on State Water Resources Control Board's Revenue Program Guidelines 1 "BOD" stands for Biochemical Oxygen Demand
2 "TSS" stands for Total Suspended Solids
13 5. Proposed Sewer Rates Table 4 shows a summary of BWA’s proposed rates from FY 2023/24 to 2026/27. BWA recalculated the rates for FY 2022/23 based on the wastewater strength factors from Table 3, which resulted in minor changes to the rates. The proposed rates were then escalated by 6% per year to meet the sewer enterprise revenue requirements.

Table 4City of Concord - Sewer EnterpriseProposed RatesFISCAL YEAR Units FY 2022/23
Rate Recalculated
Based on Strength
Factors
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27

6.0% 6.0% 6.0% 6.0%
RESIDENTIAL OWNERS 1. Minimum rate for any premises $717 $717 $760 $806 $854 $9052. Each single-family dwelling unit # of dwellings $717 $717 $760 $806 $854 $9053. Each dwelling unit in a multiple dwelling structure # of dwellings $717 $717 $760 $806 $854 $9054. Mobile Home Park # of dwellings $717 $717 $760 $806 $854 $905COMMERCIAL OWNERS*1. Minimum rate for any premises $717 $717 $760 $806 $854 $9052. Bowling Alleys (per HCF) Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

3. Car Washes (per HCF) Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

4. Health Studios and Gymnasiums Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

5. Hospitals - Convalescent (per HCF) Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

6. Multiple Lodging Structures (per HCF) Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

7. Laundromats and Laundries (per HCF) Winter Usage (HCF) $6.34 $6.35 $6.73 $7.13 $7.56 $8.01

8. Restaurants (per HCF) Winter Usage (HCF) $12.61 $12.63 $13.38 $14.18 $15.03 $15.93 Restaurants with pretreatment facilities (per HCF) Winter Usage (HCF) $7.17 $7.17 $7.60 $8.06 $8.54 $9.05

9. Bakeries Determined Individually Winter Usage (HCF) N/A N/A N/A N/A N/A N/A10. All others (per HCF) Winter Usage (HCF) $7.17 $7.17 $7.60 $8.06 $8.54 $9.05 INSTITUTIONAL OWNERS*1. Minimum rate for any premises $717 $717 $760 $806 $854 $9052. As defined in Section 110-31 (per HCF) Winter Usage (HCF) $7.17 $7.17 $7.60 $8.06 $8.54 $9.05 INDUSTRIAL OWNERS 1. Minimum rate for any premises $717 $717 $760 $806 $854 $9052. Flow (per million gallons) MG $5,563 $5,559 $5,893 $6,247 $6,622 $7,019

3. Biochemical Oxygen Demand (B.O.D.) (per thousand pounds) 1k pounds of bod $1,307 $1,304 $1,382 $1,465 $1,553 $1,6464. Suspended Solid (S.S.) (per thousand pounds) 1k pounds of ss $1,113 $1,149 $1,217 $1,290 $1,367 $1,449 *Rate per Hundred Cubic Feet (HCF) of Winter Water Usage % Increase
14 Chart B shows a regional sewer rate survey for FY 2022/23. The surveyed average annual sewer bill for a single family home using 6 hcf per month is $781. The City’s sewer rates compare favorably with regional agencies and are in the average range of $781. $342.00
$495.72
$520.20
$530.21
$540.24
$243.00
$615.77
$638.23
$641.35
$657.00
$711.00
$717.00
$738.60
$760.00
$769.44
$779.76
$814.20
$690.00
$676.50
$916.32
$1,041.80
$1,048.00
$455.16
$318.96
$1,113.84
$364.63
$237.60
$647.28
$830.52
$514.08
Average $781
$342
$496 $520 $530 $540
$608 $616 $638 $641 $657
$711 $717 $739 $760 $769 $780 $814 $820
$914 $916
$1,042
$1,048$1,102$1,149
$1,628
$0
$200$400$600$800
$1,000$1,200$1,400$1,600
Chart B: Rate Survey
Single Family Residence Annual Wastewater Bills July 1, 2022 (6 HCF/Month Winter Water Usage)
Fixed Rates Variable Rates Ad Valorem Taxes Average
Concord/Clayton, Current
*Agency charges additional ad valorem taxes for sewer enterprise costs.

Concord/Clayton, Proposed FY 2023/24
15 6. Bill Impacts & Rate Survey
Table 5 shows the annual impacts of the rate increase on residential customers.

Table 5
City of Concord - Sewer Enterprise
Current % Increase $717
FY 2023/24 6% $760 FY 2023/24 $43
FY 2024/25 6% $806 FY 2024/25 $46
FY 2025/26 6% $854 FY 2025/26 $48
FY 2026/27 6% $905 FY 2026/27 $51
Residential Annual Bill Impacts
$ INCREASE OVER PRIOR YEAR
$ INCREASE OVER CURRENT
$ INCREASE OVER PRIOR YEAR
$ INCREASE OVER PRIOR YEAR
Exhibit B to RESOLUTION NO. 23-XX
Amendment to Master Fee Schedule (Exhibit A to Resolution 78-6042 Establishing Fees and Charges for Various Municipal Services in the City of Concord) Also Referred to as the “Updated Annual Sewer Service Charges” FISCAL YEAR FY 2023 FY 2024 FY 2025 FY 2026 FY 2027

RESIDENTIAL OWNERS

1. Minimum rate for any premises $717 $760 $806 $854 $905

2. Each single-family dwelling unit $717 $760 $806 $854 $905

3. Each dwelling unit in a multiple dwelling structure $717 $760 $806 $854 $905

4. Mobile Home Park $717 $760 $806 $854 $905

COMMERCIAL OWNERS

1. Minimum rate for any premises $717 $760 $806 $854 $905

2. Bowling Alleys (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01

3. Car Washes (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01

4. Health Studios and Gymnasiums $6.34 $6.73 $7.13 $7.56 $8.01

5. Hospitals - Convalescent (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01

6. Multiple Lodging Structures (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01

7. Laundromats and Laundries (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01

8. Restaurants (per HCF) $12.61 $13.38 $14.18 $15.03 $15.93 Restaurants with pretreatment facilities (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05

9. Bakeries Determined Individually N/A N/A N/A N/A N/A

10. All others (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05

INSTITUTIONAL OWNERS

1. Minimum rate for any premises $717 $760 $806 $854 $905

2. As defined in Section 110-31 (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05

INDUSTRIAL OWNERS

1. Minimum rate for any premises $717 $760 $806 $854 $905

2. Flow (per million gallons) $5,563 $5,893 $6,247 $6,622 $7,019

3. Biochemical Oxygen Demand (B.O.D.) (per thousand pounds) $1,307 $1,382 $1,465 $1,553 $1,646

4. Suspended Solid (S.S.) (per thousand pounds) $1,113 $1,217 $1,290 $1,367 $1,449 Exhibit B to Attachment 1
Attachment 2
Memorandum
Date: January 18, 2023
To: William Tarbox, Public Works Director
From: Jesse Crawford, Maintenance Superintendent
Prepared by: Jesse Crawford, Maintenance Superintendent [email protected]
(925) 671-3002
Subject: Addition of two Lead Collection System Workers (LCSMW) and two Collection System Workers (CSMW)
Report in Brief
Public Works is requesting to increase capability and coverage of the sewer maintenance program by adding four positions to form two additional crews. Adding these positions will increase productivity and decrease the amount of deferred maintenance in the sewer maintenance program.

Background
The City of Concord currently provides sanitary sewer service to residents and businesses in both Concord and Clayton that lie within the sewer collection area. The sewer collection system includes more than 39,000 service connections 7,895 manholes, approximately 377 miles of 6-inch to 54-inch diameter collector and trunk sewer mains. Concord manages the sewer maintenance program with 9 front line staff and 1 Supervisor.

To meet the operational requirements of the sewer maintenance program and proper equipment operation crews are dispatched to work locations with a minimum staff level of two. This minimum staff level does not allow for flexible staffing of the work plan assignments when faced with un-planned events like service emergencies, on-the-job injury, or sickness. Unplanned events cause delays in the maintenance program and, adds inefficiency in work planning, and creates a maintenance back log. Adding additional staff to the sewer maintenance program will allow for sufficient staff levels and efficient completion of work plan assignments during unplanned events 2 Analysis
Proposed is the creation of four positions in the Sewer group of the infrastructure Division. The four additional positions will be responsible for the following:
 Lead CSMW and CSMW to perform sewer maintenance cleaning for our Annual Maintenance Program
 Perform special maintenance programs weekly, bi weekly, monthly, quarterly and/or semi-annually
 Operate camera system and collect data for our CCTV and Manhole Inspections Program per the NASSCO structural rating requirement
 Perform repairs as identified in the CCTV and Manhole Inspections Program  Plan and prioritize cleanings based on schedule
 Assist with emergency service calls when special maintenance crew have multiple calls
 Other duties as assigned
Summary of Specific Metrics:

Operation Goal
Current
Performance
Goal
(additional
personel)
Notes
Cleaning
Collection
Segments
4,992 2,048 4,165
Increase cleaning
frequency, avoid crews
pulled off of cleaning to
respond to service calls.

CCTV Line
Inspections
1,470 277 1,470
Additional staff will add
to program consistency
Manhole
Inspections
5,880 0
Once every 2
years
Last performed 2019,
Additional staff will
stand-up the program
Detail of Specific Metrics
Cleaning
Based on collection system characteristics, we should be cleaning:
• 4,992 segments per year
• Each segment cleaned every two years
Currently Cleaning: (Crews are receiving service calls and being pulled off normal maintenance work)
• 2,048 Segments per year
• Each segment cleaned once every four years.

An additional crew uninterrupted by service calls will average 17 segments per day. (2 People)
• 4,165 additional segments per year.
3 • Each segment cleaned once every 1.5 years.

CCTV
Based on collection system characteristics we should be inspecting:
• 1,470 Segment per year.
• Each segment inspected once every 8 years.

Currently Inspecting:
• 277 segment per year.
• Each segment inspected once every 29 years.

An additional crew member will keep this program running more consistently. (1 Person) • Reach base goal of 1,470 segments.
• Each segment inspected once every 8 years.

Manhole Inspections:

Based on collection system characteristics we should be inspecting:
• 5,880 Manholes per year.
• Each manhole inspected once every 2 years.

Currently Inspecting:
• 0 Manholes per year.

An additional crew member will get this program running. (1 Person) Financial Impact
Additional funding for these four positions is included in the current sewer service rate study. If approved the additional funding will be accounted for in the sewer enterprise budget.

Attachment 3
$342.00$495.72$520.20$530.21$540.24$243.00$615.77$638.23$641.35$657.00$711.00$717.00$738.60$760.00$769.44$779.76$814.20$690.00$676.50$916.32 $1,041.80$1,048.00
$455.16$318.96
$1,113.84
$364.63
$237.60
$647.28
$830.52
$514.08
$130
Oro Loma Sanitary District
Dublin San Ramon Services
Oakland
Union Sanitary District
Fairfield
City of Brentwood
Bay Point
Pittsburg
City of Antioch
Novato Sanitary District*
West County Wastewater District
City of Concord/Clayton
Napa
City of Concord/Clayton (Proposed)
Vallejo Flood and Wastewater District
Livermore
Mountain View Sanitary District*
CCCSD*
Benicia
Ironhouse Sanitary District*
Rodeo Sanitary District*
City of Richmond
City of Petaluma
City of Santa Rosa
City of Berkeley
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Average [VALUE]
$342
$496 $520 $530 $540
$608 $616 $638 $641 $657
$711 $717 $739 $760 $769 $780 $814 $820
$914 $916
$1,042$1,048 $1,102 $1,149
$1,628
Fixed Rates Variable Rates Ad Valorem Taxes Average
Single Family Residence Annual Wastewater Bills July 1, 2022 (6 HCF/Month Winter Water Usage)
Concord/
Clayton
Current
*Agency charges additional ad valorem taxes
for sewer enterprise costs.

Concord/
Clayton
Proposed
FY23/24
City of Concord
1950 Parkside DriveConcord, CA 94519cityofconcord.org
NoƟce to Property Owners of a Proposed Four-Year
Increase in the Annual Sewer Service Charge
Charge Classification Existing Charge Proposed Charge (per year) FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27
Residential Owners Minimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Each single-family dwelling unit $717.00 $760.00 $806.00 $854.00 $905.00 Each dwelling unit in a multiple dwelling structure $717.00 (per unit) $760.00 $806.00 $854.00 $905.00 Mobile Home Park $717.00 (per space) $760.00 $806.00 $854.00 $905.00 Commercial Owners - Charge based upon quantity of water used in hundred cubic feet (HCF)Minimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Bowling Alleys (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Car Washes (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Health Studios and Gymnasiums (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Hospitals - Convalescent (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Multiple Lodging Structures (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Laundromats and Laundries (per HCF) $6.34 $6.73 $7.13 $7.56 $8.01 Restaurants (per HCF) $12.61 $13.38 $14.18 $15.03 $15.93 Restaurants w/ pretreatment (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05 Bakeries (Determined Individually) N/A N/A N/A N/A N/A All others (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05 Institutional OwnersMinimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 As defined in Section 13.05.010 of the Concord Municipal Code (except for Convalescent Hospitals noted above) (per HCF) $7.17 $7.60 $8.06 $8.54 $9.05
Industrial OwnersMinimum rate for any premises $717.00 $760.00 $806.00 $854.00 $905.00 Flow (per million gallons) $5,563.00 $5,893.00 $6,247.00 $6,622.00 $7,019.00 Biochemical Oxygen Demand (BOD) (per thousand pounds) $1,307.00 $1,382.00 $1,465.00 $1,553.00 $1,646.00 Suspended Solid (SS) (per thousand pounds) $1,113.00 $1,217.00 $1,290.00 $1,367.00 $1,449.00

PRSRT STD
U.S. POSTAGE
PAID

CONCORD, CA
PERMIT NO. 207
The City of Concord is proposing an increase to the fees that property owners pay for sewer service. The fee is
proposed to increase each year over the next four
years.

Since your property is in the City of Concord and is
connected to the sanitary sewer system, this increase
will affect you.

The current annual Sewer Service Charge for residenƟal
properƟes is $717 per year which is insufficient to cover the increasing operaƟonal costs of conveying and
treaƟng sewage. Your sewage is collected by the City of Concord and treated by Central San. New regulaƟons
and aging infrastructure are driving up operaƟonalcosts. Therefore, the Sewer Service Charge for residenƟal properƟes is proposed to increase to: $760
for Fiscal Year (FY) 2023/24; $806 for FY 2024/25; $854 for FY 2025/26; and $905 for FY 2026/27.

Commercial rates are proposed to increase as well
but are based upon water usage and may vary from
these amounts.

The amount of the fee is calculated by the City to
fairly apporƟon applicable costs amongst sewer users
according to the cost of providing service to that
user; a detailed rate study was prepared to calculate
the proposed charges.

New rates will commence on July 1 of each year.

Services Covered by the Sewer Service Charge
www.cityofconcord.org
Most of the Sewer Fund’s expenses are aƩributed to
the daily treatment of Concord’s sewage at the Central
Contra Costa Sanitary District’s (Central San) treatment plant. The costs include the maintenance, operaƟon,
and capital improvements at the treatment plant; and a
proporƟonal share (based upon populaƟon), of the cost
to operate the Household Hazardous Waste Facility
(HHWF). 72% of the amount you pay for sewer services
goes to Central San for these items.

The remaining expenses include the cost of operaƟng the city’s sanitary sewer system, rouƟne maintenance,
replacement and repair, and emergency reserves.

The Sewer Service Charge is collected annually via your property taxes. It appears in the “Special Taxes &
Assessments” porƟon of the Property Tax Bill as either“Concord Res Sewer,” “Clayton Res Sewer,” “Concord Com Sewer” or “Clayton Com Sewer.” system.

NoƟce of Proposed Rate Increases &
Public Hearing on
Tuesday June 6, 2023
at 6:30 p.m.

City of Concord Council Chambers
1950 Parkside Dr., Concord, CA 94519
NoƟce to Concord Property Owners
Annual Sewer Charges by Occupancy Sewer Service Charge
Attachment 4
Annual Sewer Charge Regional Bill Comparison (does not capture neighboring agency increases effecƟve July 1, 2023) NOTICE IS HEREBY GIVEN, that the City Council of the City of Concord will hold a PUBLIC HEARING on this maƩer in the Council Chamber, 1950 Parkside Drive, on Tuesday, June 6, 2023, at 6:30 p.m. (or as soon thereaŌer as the maƩer can be heard), at which Ɵme and place interested persons may appear and be heard. WriƩen protests on the proposed increase in the annual sewer service charge may be mailed or delivered to the City Clerk at 1950 Parkside Drive, M/S 03, Concord, CA 94519-2578. Your leƩer must idenƟfy the real property you own by the service address or assessor’s parcel number.

Your leƩer must be legibly signed by any one of the current property owners or customers on record and must be received prior to the close of the Public Hearing on June 6, 2023. Only one protest per parcel will be counted. The sewer service charge cannot be increased if a majority protest is received before the close of the public hearing. There is a 120- day statute of limitaƟons for challenging any new, increased, or extended fee or charge.

For further informaƟon on the proposed increase, please email the City of Concord Public Works Department at [email protected]
Reasons for the Proposed Increase NoƟce of Public Hearing in Concord It is necessary to increase the Sewer Service Charge due to several factors:
 Central San is compleƟng upgrades to its treatment plant, of which the Sewer Fund must pay its proporƟonal share. The upgrades are necessary to comply with regulaƟons and are increasing your rates.  Central San’s cost to treat sewage is increasing. There are several items related to this, such as chemicals, energy (electricity and natural gas), labor and disposal. The proporƟonal share of these costs is passed onto the City of Concord by Central San.  The cost to operate the Household Hazardous Waste Facility (a State mandated requirement).  PorƟons of the sanitary sewer system are reaching the end of their useful life and need to be replaced. The City is planning several rehabilitaƟon projects over the next four years, including structural repairs and capacity upgrades of the sanitary sewer system.
 The Sewer Reserve Fund needs to be increased so that money is available in the event of an emergency, such as a catastrophic sewer line failure.
$342.00
$495.72
$520.20
$530.21
$540.24
$243.00
$615.77
$638.23
$641.35
$657.00
$711.00
$717.00
$738.60
$760.00
$769.44
$779.76
$814.20
$690.00
$676.50
$916.32
$1,041.80
$1,048.00
$455.16
$318.96
$1,113.84
$364.63
$237.60
$647.28
$830.52
$514.08
$130
Average $781
$342
$496 $520 $530 $540 $608 $616 $638 $641 $657 $711 $717 $739 $760 $769 $780 $814 $820 $914 $916
$1,042 $1,048 $1,102 $1,149
$1,628
$0
$200$400$600$800
$1,000$1,200$1,400$1,600
Single Family Residence Annual Wastewater Bills July 1, 2022 (6 HCF/Month Winter Water Usage)
Fixed Rates Variable Rates Ad Valorem Taxes Average
Concord
Current
*Agency charges additional ad valorem taxes for sewer
enterprise costs.

Concord
Proposed
FY23/24
Attachment 5
Memorandum
Date: May 30, 2023
To: William Tarbox, Public Works Director
From: Craig Blythe, Administrative Services Manager
Subject: Declaration of Proposition 218 Process for Mailing Notice of Public Hearing on Proposed Sewer Rate Increases
The purpose of this memo is to outline the steps taken to mail the Notice of Public Hearing on proposed sewer rate increases to each customer in City of Concord and City of Clayton in accordance with Proposition 218 requirements.

Step 1: Obtain Addresses
 On March 27, 2023, I requested that Francisco and Associates prepare and provide an electronic mailing list utilizing the March 2023 Contra Costa County Assessor data. The mailing list included all addresses of property owners and customers within the City of Concord, the City of Clayton, and unincorporated areas that are connected to the City of Concord’s sewer system. I received the requested mailing list on March 28, 2023.

Step 2: Mailing Service
 I hired Prestige Printing & Graphics for mail merge, printing, and mailing of the notice.

Step 3: Proof/Print/Mail Notice of Public Hearing
 I sent Prestige Printing & Graphics the mailing list of City of Concord and City of Clayton sewer customers and property owners March 28, 2023.  Prestige Printing & Graphics received the Art files FINAL 4.12.23 Clayton Prop 218 Notice.pdf and FINAL 4.12.23 Concord Prop 218 Notice.pdf on April 12, 2023.
 The mailing list was processed through Coding Accuracy Support System (CASS) to standardize addresses.
 Prestige Printing & Graphics printed the Notice and the envelopes on April 13 & 14, 2023.
 Prestige Printing & Graphics mailed 44,482 for Concord and 4,480 for Clayton (Total 48,962) on April 21, 2023.

Agenda Item: 10(a)

AGENDA REPORT
TO: The City Council
FROM: Bret Prebula, City Manager
Nitish Sharma, Finance Director (Consultant)
DATE: June 20, 2023
SUBJECT: Adoption of the Fiscal Year 2023-24 Budget and Appropriations Limit

RECOMMENDATION
Adopt a Resolution for the following:

1. Approve the Fiscal Year 2023/24 Budget; and

2. Approve the Appropriations Limit for Fiscal Year 2023/24

BACKGROUND
The budget is the primary policy document adopted by the City Council that establishes the service levels and capital projects to be provided to the community by its city government. It establishes the financial and human resources devoted to accomplishing community goals and objectives as reflected by the City Council. It provides a logical structure to organize its various programs, projects, and other expenses. It provides a system for control of its revenues and expenses. Finally, the budget document is widely available to the public and others interested in the operations of the city government.

DISCUSSION
Cities across California continue to face mounting short and long-term budgetary challenges. Local contributions to California Public Employee Retirement System (CalPERS) costs are escalating because of lower-than-expected returns on investment and retirees living longer; costs of providing municipal services have outpaced revenue growth; the emergence of online retail has introduced uncertainty for local sales tax projections; deferred maintenance of aging infrastructure looms on the horizon; and instability at the federal level threatens to undermine both longstanding and new local funding sources.

Clayton is not immune to these and other financial challenges, but the City is fortunate to have a solid budgetary foundation that should allow it to better withstand the impacts.

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

This budget aims to be in alignment with the City’s Mission Statement and Values of being dedicated to serving the needs and desires of our citizens:
• Mission Statement: Enhance the City of Clayton by providing quality of service through:
o Responsible Stewardship
o Effective Collaboration
o Continuous Progress
• Values
o Excellence
o Integrity
o Respect
o Teamwork
On April 24, 2023, staff presented the first draft of the Fiscal Year 2023-24 Proposed Maintenance and Operations budget to the Budget and Audit Committee. The Committee members provided directions on the proposed budget that staff incorporated in this report.

On May 30, 2023, staff presented the second draft of the Fiscal Year 2023-24 Proposed Maintenance and Operations budget to the Budget and Audit Committee. The Committee members provided directions on the proposed budget that staff incorporated in this report.

Essentially, moving the budget closer to a balanced level although it was not able to reach that threshold.

On June 6, 2023, staff presented the budget for the first time to the full City Council. In short, the General Fund was presented with the need to utilize $150,000 in pension reserve funds to fill the initial budget deficit. After discussion at City Council some changes were made to the budget plan to bring the budget slightly closer to balance, knowing additional funding would be required later in the fiscal year when specific technology projects would be approved. To that end, the changes to the budget essentially lowered the need for pension reserve funds to approximately $70,000 to fill the General Fund budget deficit. This “effective” deficit will be managed throughout the budget year. Since a budget is a working document staff will continue to monitor and evaluate the budget to see how revenue and expense levels are performing relative to adopted budget levels. Ultimately, as the new fiscal year moves through until its close on June 30th will determine if the City ended the fiscal year with the adopted deficit or if changes to that figure have occurred.

General Fund
General Fund Revenues
Based on Council direction received on June 6, 2023, staff has revised the proposed budget. The total General Fund revenue budget proposed for the Fiscal Year 2023-24 of $5,570,253 plus a transfer of $113,663 from the pension reserve for total resources of $5,683,916. The proposed summary of the General Fund for the Fiscal Year 2023-24 is illustrated in Table A below for the Fiscal Year 2023-24.

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

The total General Fund revenues appropriated included four key revenue sources: (1) property tax in-lieu of vehicle license fees (VLF); (2) local secured ad valorem property taxes (secured property taxes); (3) sales and use taxes; and (4) franchise fees. Each of these revenue sources is described in detail below. Table 1 illustrates the proposed revenue budget for the Fiscal Year 2023-24.

Table 1: Proposed General Fund Revenues for Fiscal Year 2023-24

A B C D E
FYE 2022-23
Revised
Adopted
Budget ($)
FYE 2023-24
Proposed
Budget ($)
April 24, 2023
FYE 2023-24
Proposed
Budget ($)
June 20, 2023
Changes ($)
C-D
Revenues
Property Taxes 1,220,800 1,316,214 1,316,214 0
Sales Taxes 571,816 583,824 571,831 (11,993)
Other Taxes 747,518 763,002 763,002 0
Vehicle In-Lieu Fees 1,211,369 1,272,180 1,272,180 0
Franchise Fees 575,004 583,000 607,443 24,443
Other Revenues 966,721 1,001,642 1,039,583 37,941
Transfers In (ARPA Fund) 1,547,688 -
Transfers In: Pension Fund 113,663 113,663
Total Revenues 6,840,916 5,519,862 5,683,916 164,054
Note: This table highlights the material General Fund revenue categories.

1. Property Taxes: Property tax is an ad valorem tax imposed on real property, such as land, buildings, and tangible personal property. Property tax revenue is collected by the County and allocated according to state law among cities, counties, school districts and special districts. Clayton property owners pay a basic tax equal to 1% of the assessed value on real property. The City receives approximately 6.6¢ of every dollar collected with larger shares going to local schools, community colleges and Contra Costa County.

For Fiscal Year 2023-24, the total assessed valuation of property values within the Contra Costa County increased by 7.8%, which results in $95,414 increase in the City’s share of the property tax revenues from the Fiscal Year 2022-23. The City works with a Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

property tax consultant, HDL Coren & Cone, in projecting property tax revenue, an estimate made with five factors in mind: property turnover rate, pricing and appeals exposure, new construction activity, Proposition 8 administrative reductions and Proposition 13’s annual inflation adjustment. The estimates for property taxes include the secured portion and the unsecured potion.

2. Vehicle License Fee (VLF): The largest revenue source, making up 23.1% of General Fund budgeted revenues for FY 2023-24, is property tax in-lieu of vehicle license fees (VLF). The VLF is an annual value tax on the ownership of registered vehicles. It is collected by the California Department of Motor Vehicles and then distributed to cities and counties. As part of the State Budget Act of 2004, the legislature reduced VLF revenue allocations to cities, replacing this funding with additional property tax allocations that change proportionately with the City’s annual assessed valuation (property tax in-lieu of VLF revenue). Total VLF estimated for the Fiscal Year 2023-24 are projected to increase by $60,811, or 5.02% from the approved budget.

3. Sales Tax: California sales tax is imposed on the total retail price of any tangible personal property (excluding a variety of state mandated exemptions), while use tax is imposed on the purchaser for eligible transactions when sales tax has not been collected. Although the unadjusted general state-wide sales tax rate applied to transactions is 7.25%, the basic local rate (aka “Bradley-Burns” rate) returned to local agencies (i.e., City of Clayton) is only one percent (1%). This local share is unrestricted and must be received into the General Fund. In the City of Clayton, the applicable sales tax rate is currently 8.75% due to a combination of other additional local and regional voter-approved measures. The City to-date has received $312,000 or 55% of the budgeted sales tax for the current fiscal year. The sales tax receipts are two months in arrears. The City staff received a sales tax projection report from the City’s consultant, HDL Coren & Cone, for the Fiscal Year 2023-24. HDL projects the City’s sales tax revenues will be slightly over the approved budget with an increase of $12,008 or 2.1% when compared to revised budget estimate for the Fiscal Year 2022-23. As of May 22, 2023, the City staff met with the team from HDL and received the most current version of the sales tax forecast. Staff revised the revenue projection downwards by $20,993.

4. Franchise Fees: The third largest revenue source, making up 10.6% of General Fund budgeted revenues for FY 2022/23, is franchise fees. Franchise fees are rents paid by utilities or other businesses for the privilege of using the City’s right-of-way (i.e., streets, sidewalks, etc.) to locate utility lines, operate vehicles, and/or conduct private business for profit. The City currently collects a 1% franchise fee from Pacific Gas & Electric and a 5% franchise fee from cable operators (i.e., Comcast and AT&T/Pacific Bell). In addition, the City collects a 10% franchise fee from Republic Services for its collection, transportation, disposal and diversion of solid waste and recyclable materials. For Fiscal Year 2023-24, the Franchise Fee revenues are projected to increase by a total of $7,996 when compared to the current year budget. This revenue source can fluctuate for the cable television franchise fees due to a shift from customers to change to digital Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

streaming. As of May 22, 2023, the revenues from franchise fees related to refuse collections were adjusted based on the new refuse contract. The projected revenue for the franchise fee from refuse services are estimated to be an additional $24,443 than reported on April 24,2023.

5. Redevelopment Property Tax Trust Fund (RPTTF): The State of California passed AB 1x26 to dissolve the Redevelopment Agencies in the State. The City of Clayton is projected to receive a higher portion of the tax distribution from the RPTTF after the approval of the Recognized Payment Obligation Schedule for all the cities in the County of Contra Costa. The total revenues expected from the RPTTF in the proposed budget for the Fiscal Year 2023-24 is $476,530.

6. Transfer In: A transfer in of $113,663 is being budgeted from the Pension Stabilization Fund to fund the increase in pension costs, retiree health costs and unfunded accrued liabilities. The funds were originally transferred from the General Fund to the Pension Stabilization Fund. This transfer will close the budget deficit gap in operating revenue versus operating expenses.

7. Book of Fees: As part of the proposed budget, the City staff and consultant updated the City’s Book of Fees. The update to the Book of Fees is necessary to ensure that proper costs are allocated and charge to individuals/organizations receiving a direct benefit from the City’s program and services that are non-general revenue base. The fee study discussed with the Council will result in some new recovered revenues to offset the costs. Staff is estimating a total of $36,000 in new revenues based on the activities in the current year.

General Fund Expenditures
Total General Fund expenditures proposed for the Fiscal Year 2023-24 is $5,683,916. Table 2 below illustrates the General Fund proposed expenditures for the Fiscal Year 2023-24:

Table 2: General Fund Operational Expenditures2
FYE 2022-23
Revised Adopted
Budget ($)
FYE 2023-24
Proposed
Budget ($)
April 24, 2023
FYE 2023-24
Proposed
Budget ($)
May 22, 2023
FYE 2023-24
Proposed
Budget ($)
June 20, 2023
Expenditures A B C
Salaries and Benefits $2,893,516 $3,366,222 $3,416,718 $3,416,718 Operating Expenditures 2,124,412 2,264,569 2,307,197 2,267,198 Transfers Out 1,467,024
Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

TOTAL $6,484,951 $5,630,791 $5,723,916 $5,683,916
2Note: This table does not include all General Fund expenditure categories.

1. Personnel Costs: Mandatory personnel expenses, such as salaries, overtime, retirement, retiree health, and group insurance, make up approximately 57% of the City’s total operating budget. The proposed budget for the salaries and benefits categories are projected to increase by $472,706, or 16.3%, when compared to the current year adopted budget. Increase in salaries and benefits costs can be attributable to the following factors:
• Pension Costs: The pension costs are expected to increase in Fiscal Year 2023-24 due to the substantial loss of investment earnings. The CalPERS reported a net loss of approximately 6.1% for the year. The increase in the unfunded accrued liability for the City of Clayton is $35,877 or 8.1% with a total estimated payment of $480,000. The second increase for the pension costs is related to the normal cost which is expected to increase from 10.32% to 11.84% for Miscellaneous Employees Tier 1
(https://www.calpers.ca.gov/docs/actuarial-reports/2021/clayton-citymiscellaneous-first-tier-2021.pdf ). The Safety Tier 1 employee’s normal costs are expected to increase from 20.64% to 22.83 ( https://www.calpers.ca.gov/docs/actuarial-reports/2021/clayton-citysafety-first-tier-2021.pdf ).

Salaries/Wages:
• Benefits Insurance Costs: The City is expected to pay an additional 9% in health care benefit costs for the employees covered under the City’s plan. Increase in the benefits costs are due to several factors including the increase in the life expectancy, increase in medical process and the increase in the labor costs.
• Police Department Increase: Increase in the Police Department budget is due to a combination of factors including the following:
• $7,0000 Reclass of a Sergeant: New costs from the
Reclass of the Sergeant
• $36,000 MOU Adjustment: New costs from the approval of the labor contract with the police association.
• $40,000: Added increase in the overtime cost for the police department.
• $7,000: Cost increase from the new salary adjustment for the Police Chief for the Fiscal Year 2023-24.

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

• $81,280: Increase due to the increase in salary steps and other persable benefit for the police officers and other employees in the Police Department.
• $10,313: Increase in pension cost for the staff in the Police Department.
• $22,645: Increase in medical benefit costs for the police department.
• $15,645: Costs related to the shift differential in the Police Department and the field training officer costs.
• $20,000: Costs related to the reclass of a Police Sergeant to Lieutenant.
• $62,000: The City budget were revised to reflect the savings from the full-time equivalent position of the Police Chief.

These savings are projected to be one-time for the current fiscal year. The proposed budget for Fiscal Year 2023-24 includes all budgeted position in accordance of the
Authorize Position List.

2. Operations and Maintenance: Increase in Operations and Maintenance for FY 2023-24 is expected to increase by $140,157 or 6.6%. The proposed budget for operations and maintenance expenditures total $2.3 million. The increase in the operations and maintenance expenditures are due to increase in contract services (labor cost increase), increase due to the price of products due to inflation, and the shortage of products due to production and supply chain issues. Some of the major changes in the proposed budget in this category are described below for the Fiscal Year 2023-24:
• Dues and Subscriptions (Community Development) $14,000: Increase in proposed budget year due to an increase in the cost for subscription of software. The City currently uses Parcel Quest for property record data; ESRI Arc GIS and Permit Management Software are proposed to be added for more efficient development services/community development activities.
• HVAC Maintenance Repairs -$16,553; Decrease is due to the work that was completed in the prior year. The proposed budget of $21,000 correctly reflects the anticipated repair costs related to the City heating, ventilation, and air conditioning (HVAC) systems. • Risk Liability Insurance Premium $47,850: Increase in the premium from the City’s insurance pool. It is important to note that this increase has impacted almost all government agencies in many different insurance risk pools due to the severe storm damages, fire damages and actual loss sustained over the years.
• School Crossing Guard Services $8,710: Increase in the costs for providing the services to the school.
• Dispatch Services $16,157: Increase in costs estimates the City Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

received for the dispatch services. This is a mandatory cost increase. • Crime Lab and Call ID $23,279: Increase in costs related to the crime lab and call id services.
• Animal Control Services $9,154: Increase in contract costs related to the animal services received by the City.

3. Supplemental Budget Considerations: Supplemental budget items in the amounts of $36,000 contingent upon approval of the new Book of Fees is being proposed for Fiscal Year 2023-24.

The net change in the General Fund after accounting for the proposed changes to the revenues and expenditures for the Fiscal Year 2023-24 is $11,337. It is important to note that the net deficit presented on June 6, 2023 Council meeting was -$28,663. Staff adjusted the Professional Services line item in the Admin/Legal/Finance department related to the technology upgrades based on the Council’s direction. Table 3 below highlights the total proposed general fund for the Fiscal Year 2023-24.

Table 3
Fiscal Year 2023-24 Proposed Budget
April 24,
2023
June 20, 2023
Proposed Budget FY 2023-2024:

Operating Revenues $5,519,862 $5,534,253
Transfer from Pension Reserve (to fill expected
budget deficit)
$113, 663
Operating Expenditures $5,630,791 $5,683,916
Operating Surplus (Deficit) ($110,929) ($36,000)
Supplemental Considerations:

Senior Accountant 0
Book of Fees- Contingent upon Council Approval $36,000
New Positions (PW Manager, Sr Maint. Worker,
Accountant, Associate Planner)
$481,000
Oakhurst GHAD Fund Deficit $265,478
Street Lighting Fund Deficit $55,000
Landscape Maintenance CFD $383,778
Stormwater Assessment $30,320
Total Supplemental Considerations $1,215,576 $36,000
Surplus (Deficit) ($1,326,505) $0
Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

Other Non-Major Governmental Funds
The City’s Non-Major Governmental Funds are reported as Special Revenue Funds (SRF); whereby, the revenues collected are for specific expenditures. These funds should be selfbalanced with the appropriate receipts and expenditures. The City of Clayton has a number of SRF’s that are operating in a deficit spending each year. The City staff will evaluate the deficit spending funds in the fall of 2023 to provide the Council with some of the mitigating measure to addresses the budget shortfall. Below is a summary of some of the Non-Major Governmental Funds that will requires additional revenues or a reduction in expenditures in order to be balanced in future years.

1. Rainy Day Fund (Fund 110): The estimated fund balance in the Rainy-Day Fund as of June 30, 2024, is approximately $69,867. There is no proposed appropriation in this fund except for the distribution of the interest earning estimated at $1,500 for the Fiscal Year 2023-24.

2. State Gas Tax Fund (Fund 201): The projected receipts in the state gasoline tax for the proposed budget for the Fiscal Year 2023-24 is estimated at $385,250, consistent with the current year budget. The operating expenditure for the proposed budget is approximately $337,199, an increase of $77,491 or 29.0%, when compared to the current year budget. Increase is primarily due to the increase in the materials and supplies cost related to inflation, increase in labor costs, and challenges to the supply chain. A transfer of $82,000 ($50,000 to Streetlight Fund and $32,000 to Stormwater Fund) has been budgeted for the Fiscal Year 2023-24. This transfer was not included in the budget workshop to the Council on April 24, 2023. The Gas Tax receipts are eligible for these expenditures. The net fund balance in this fund at the end of the Fiscal Year 2023-23 with a surplus of $48,050. The ending fund balance is projected to end the Fiscal Year 2023- 24 with an estimated ending fund balance of $292,543.

3. Landscaping Maintenance Fund (Fund 210):

On April 24, 2023, the proposed budget for this fund had a deficit spending and is described below:
• The proposed revenue budget for the Fiscal Year 2023-24 is $1,278,284, while the total proposed expenditures appropriations are at $1,932,209, including CIP and resulting a net deficit of -$653,925. The assessments operating expenditure are projected to increase by $117,620, or 8.09% in the Fiscal Year 2023-24. It is important to note that the current year budget (Fiscal Year 2022-23) approved a net deficit spending of -$245,041. The total fund balance projected at the end of FY 2023-24 is estimated at -$260,432. The fund balance deficit requires additional property tax assessments or a reduction in services provided to be balance and self- Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

supported.

Below are the adjustments staff has made to present a balanced budget to the Committee:
• Tree Trimming Contract: Reduce from $200,000 to $175,000 • Trail, Fixture Repairs and Replacement: Reduce from $250,000 to $75,000. Staff will seek grant revenues and other funding sources to complete the trail projects including the Road Maintenance Rehabilitation Act Funds.

The revised budget proposed will end in a net deficit of -$388,925. This deficit will be offset by the fund balance carryover from the current year of $393,492, resulting in a net fund balance of $4,568. Staff will continue to monitor the expenditures in this fund to ensure the fund is balanced at the end of the Fiscal Year 2023-24.

At the June 6, 2023, City Council meeting staff was directed to bring back the Landscape Maintenance District Budget working from a “bottom up” approach balancing the budget without or limited use of reserves. Staff attempted to do so, but was only able to reduce the budget to a level that utilized approximately $73,000 in Landscape Maintenance District Reserves. Staff is concerned that any additional reductions could create larger impacts that identifiable on the surface, thus further review and discussion will need to occur on future funding levels.

4. The Grove Park CFD Fund (Fund 211): The projected fund balance for this fund at the end of the Fiscal Year 2023-24 is estimated at $423,687. The fund balance proposed for Fiscal Year 2023-24 includes the total revenue budget of $159,515 and the expenditure budget of $174,316; a net deficit of -$14,801. The deficit will be offset by the carryover fund balance from the current fiscal year. The estimated fund balance in this fund at the end of Fiscal Year 2023-24 is projected at $423,678.

5. Oakhurst GHAD Fund (Fund 212):

On April 24, 2023, the proposed budget for this fund had a deficit spending and is described below:
• The projected fund balance for the proposed budget for the Fiscal Year 2023-24 is estimated at a deficit of approximately -$198,548. The total assessment revenues for this District are projected at $49,500. There is a transfer in of $52,851 from the Fund 213, Presley GHAD Settlement to fund the total proposed expenditure budget of $300,900 in FY 2023-24. The expenditure budget is approximately $171,000 more than the current fiscal year. The increase in expenditures is primarily due to a combination of factors including an installation of inclinometers ($47,000) and professional services expense related to the field monitoring (monitoring, management, and other costs) that is new in the Fiscal Year 2023-24 ($125,000).

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

Below are the adjustments staff has made to present a balanced budget to the Committee:
• Engineering/Inspection Services: Reduce from $35,000 to $25,000 • Project Costs: Reduce from $100,000 to $58,000. Staff will seek grant revenues and other funding sources to complete the projects.
• Other Professional Services: Reduce from $125,000 to $25,000. • Weed Abatement Services; Reduce from $30,000 to $15,000. The City will seek reimbursement from the non-city owned properties for weed abatement. • Transfer In: Adjust the transfer in from the Presley GHAD Settlement from $52,851 to $49,991.
• Oakhurst GHAD Assessments: Increase an assessment fee revenue of $49,500 that was previously not included.

The revised budget proposed will end in a net deficit of -$34,409. This deficit will be offset by the fund balance carryover from the current year of $34,612, resulting in a net fund balance of $203. Staff will continue to monitor the expenditures in this fund to ensure the fund is balanced at the end of the Fiscal Year 2023-24.

6. Streetlight Maintenance Fund (Fund 214):

On April 24, 2023, the proposed budget for this fund had a deficit spending and is described below:
• The net operating deficit proposed for this fund at the end of the Fiscal Year 2023-24 is estimated at -$43,440. The revenue projected from the streetlight assessments is $126,500. The revenues each year do not have any inflationary increases to support the increases in the operating expenditures. The total expenditure budget is $169,940 for the Fiscal Year 2023-24. The projected fund balance in this fund at the end of the Fiscal Year 2023-24 is approximately -$48,376.

Below are the adjustments staff has made to present a balanced budget to the Committee:
• Transfer In: An allocation of $50,000 from the Gas Tax Fund (Fund 214) to cover cost to maintain and operate the streetlights within the City limits.

The revised budget proposed will end in a net positive of $6,560. This positive fund balance will be offset the Fiscal Year 2022-23 fund balance deficit of -$4,937, resulting in a net fund balance of $1,623. Staff will continue to monitor the expenditures in this fund to ensure the fund is balanced at the end of the Fiscal Year 2023-24.

7. Stormwater Assessment Fund (Fund 216): On April 24, 2023, the proposed budget for this fund had a deficit spending and is described below:
• The fund balance projected for this fund at the end of the Fiscal Year 2023-24 is estimated at -$132,577. It is important to note that the current year budget deficit Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

spending in this fund is projected at -$53,962; however, the current fund balance of $69,534 will offset the deficit spending. For the Fiscal Year 2023-24, total receipts from the Storm Water Assessment are approximately $77,000 while total appropriations are approximately $225,000, resulting in a net deficit of -$148,150.

Below are the adjustments staff has made to present a balanced budget to the Committee:
• Transfer In: An allocation of $32,000 from the Gas Tax Fund (Fund 214) to cover cost to fund the street sweeping costs paid by the stormwater fund. • Engineering Services: Reduce from $35,000 to $18,000. Staff will monitor and deliver the services based on the available resources.
• Other Professional Services: Reduce from $50,000 to $25,000. The City will monitor and manage professional services rendered based on the available resources.

The revised budget proposed will end in a net deficit of -$14,942. This deficit will be offset by the fund balance carryover from the current year of $15,572, resulting in a net fund balance of $630. Staff will continue to monitor the expenditures in this fund to ensure the fund is balanced at the end of the Fiscal Year 2023-24.

All other funds not described above are included as part of the Non-Major Governmental Funds as part of this report (Attachment 2).

American Rescue Plan Act Fund – Pandemic Reserve Fund (Fund 111) Signed into law on March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA”) provides $350 billion in additional funding for state and local governments. The state funding portion is approximately $195 billion with $25.5 billion distributed equally among the 50 states and the District of Columbia, and the remaining amount distributed according to a formula based on unemployment.

Eligible uses of these funds include:
• Revenue replacement for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to the emergency,
• COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, and hard-hit industries, and economic recovery,
• Premium pay for essential workers,
• Investments in water, sewer, and broadband infrastructure.

The following table illustrates the status of the ARPA Fund for the Fiscal Year 2022-23.

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

Table 4: ARPA Fund Analysis for Fiscal Year 2022-23
Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

Note 1: The City has encumbered funds for the projects that were approved by the Council in Fiscal Year 2022-23. These costs will likely occur in Fiscal Year 2023-24 and will not require additional funding request.

Subject: Receive the Report and Provide Direction on the FY 2023-24 Proposed Operations and Maintenance Budget
Date: June 6, 2023

ATTACHMENTS
Attachment 1 : Budget and Appropriation Limit Resolution Attachment 2 Budget Book
RESOLUTION NO. xx-2023

A RESOLUTION ADOPTING THE ANNUAL BUDGET FOR THE CITY
OF CLAYTON FOR THE 2023/24 FISCAL YEAR COMMENCING
JULY 1, 2023 AND ENDING JUNE 30, 2024, ADOPTING THE FY2023/24

APPROPRIATIONS LIMIT

THE CITY COUNCIL
City of Clayton, California
WHEREAS, on June 6, 2023 and June 20, 2023 the City Council did receive presentations on the proposed budgets for operation of the City of Clayton in Fiscal Year 2023/24 commencing July 1, 2023; and
WHEREAS, on June 20, 2023, a Public Hearing was set and duly held on the proposed budgets whereat opportunities were provided accordingly for members of the public to offer comments and provide input on the fiscal plans presented; and WHEREAS, after due consideration and review, the Clayton City Council finds it is in the best interest of the general health, welfare and safety of this City, its citizens and businesspersons, to formally adopt a financial plan governing the receipt and expenditure of public monies in Fiscal Year 2023/24; and
WHEREAS, Section 7910 of the California Government Code and Article XIIIB of the California Constitution, established by Proposition 4, requires the adoption of an annual Appropriations Limit for each fiscal year; and
WHEREAS, this Appropriations Limit fixes the amount of general tax revenue that can be appropriated in a given fiscal year; and
WHEREAS, the Fiscal Year 2023/24 Appropriations Limit is based upon the prior year’s City Council adopted Appropriation Limit adjusted for the change in County population and the change in State per capita income; and
WHEREAS, the City’s consultant has calculated the fiscal year 2023/24 Appropriations Limit to be $14,104,258 with $4,032,727 In appropriations subject to said limit.

NOW, THEREFORE, BE IT RESOLVED the City Council of Clayton, California does hereby adopt the budget revenue by fund for the City of Clayton for the Fiscal Year commencing July 1, 2023 and ending June 30, 2024 as outlined in the fund level attachments, Exhibit “B”.

Resolution No. xx-2023 FY24 Budget Adoption 2 June 20, 2023 BE IT FURTHER RESOLVED the budget appropriations by fund for the City of Clayton for the Fiscal Year beginning July 1, 2023 and ending June 30, 2024 are adopted as outlined in the fund level attachments, Exhibit “B”.

BE IT FURTHER RESOLVED the appropriations listed above constitute the budget for the Fiscal Year 2022/23 and the City Manager is herein authorized to transfer appropriations within the control accounts as deemed necessary, provided no change is made in the total amount designated for any one fund; and
BE IT FURTHER RESOLVED the City Council of Clayton does hereby find and determine it has complied with all of the provisions of Article XIII B of the California Constitution in determining the annual Appropriations Limit for Fiscal Year 2023/24; and BE IT FURTHER RESOLVED pursuant to Government Code Section 7910 and Article XIIIB of the California Constitution the approved Appropriations Limit for fiscal year 2023/24 is hereby established at $14,104,258 as shown in “Exhibit A”.

PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California during a public hearing at a special public meeting thereof held on the June 20, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

THE CITY COUNCIL OF CLAYTON, CA
Resolution No. xx-2023 FY24 Budget Adoption 3 June 20, 2023 ________________________________
Jeff Wan, Mayor
ATTEST:
____________________________
Janet Calderon, City Clerk
Resolution No. xx-2023 FY24 Budget Adoption 4 June 20, 2023 Exhibit “A”
Prior Year Appropriation Limit- Fiscal Year 2022-23 $ 13,553,444 Changes in Per Capital Cost of Living and Population
A Change in California Per Capita Cost of Living (Converted to a Ratio) 1.0444 B Greater of the Change in Population (Converted to a Ratio) City of Clayton (-0.36) 0.9892
County of Contra Costa 0.9964
Greater of the Change in Population (Converted to a Ratio) Larger of Two 0.9964 Compound Adjustment Factor (A multiplied by B) 1.04064
Current Year Appropriation Limit- Fiscal Year 2023-24 14,104,258 Current Year Appropriations Subject to Appropriation Limit 4,032,727 Current Year Appropriations Under the Appropriation Limit (3) $ (10,071,531) City of Clayton
Appropriations Limit Calculation Summary
Fiscal Year 23-24 Adopted Budget
Resolution No. xx-2023 FY24 Budget Adoption 5 June 20, 2023 Exhibit “B”

Adopted Version
City of Clayton, California
Fiscal Year 2023-24 Budget
Adopted on June 20, 2023

Directory of Officials and Advisory Bodies
The City of Clayton operates under the Council-Manager form of government. Under this system, the City Council hires a professional City Manager responsible for translating council policy into action and the daily administration and management of all City departments. The strength of the Council-Manager form of government lies in the City Council's political leadership and the City Manager's managerial expertise.

The City Council
Jeff Wan, Mayor
Jim Diaz, Vice-Mayor
Letecia "Holly" Tillman, Councilmember
Peter Cloven, Councilmember
Kim Trupiano, Councilmember
Commissions
Planning Commission
Committees
Trails and Landscape Committee
Appointed Officials and Department Heads
City Manager, Bret Prebula
City Attorney (contract), Malathy Subramanian
Director of Finance (Interim), Nitish Sharma
Chief of Police, Richard McEachin
City Clerk/HR Manager, Janet Calderon
City Treasurer (appointed), Hank Stratford
Community Development Director, Dana Ayers
City Engineer (contract), Larry Theis
Maintenance Supervisor, Jim Warburton
(contract)

CITY OF CLAYTON ORGANIZATIONAL CHART

CITIZENS
City Council (5)
Trails and Landscaping
Committee (11)
Planning
Commission (5)
City Treasurer
(appointed) City Manager City Attorney
Executive Assist to
CM/ HR
Manager
City Engineer
(contract)
City Clerk Community Dev.

Director Police Chief Finance Director Maintenance Supervisor Code Enforcement
(30% time)
Assistant Planner
(80% part time)
Admin Assist./ Bus.

License (70%)
Acctg. Technician
(80% part time)
Senior Maintenance
Worker
Sergeants (4) Police Office
Coordinator
Maintenance
Workers (4)
Police Admin Clerk Police Officers (6)
Mission, Vision, Values
Mission
Enhance the City of Clayton by providing quality of service through:

Responsible Stewardship
Effective Collaboration
Continuous Progress
Our Vision
The City of Clayton organization will be recognized as a premier small city. Customer service will be our hallmark; organizational processes will be a model of efficiency and effectiveness; innovation will be commonplace; and excellence of work product will be the norm. The employees will enjoy their work environment, and each will be a valued and respected member in his or her field of work. All residents and the City Council will be proud of their City government.

Our Values
Excellence
Integrity
Respect
Teamwork
(Updated 2020)
History of Clayton
~
The Incorporation of Clayton
by Eldora Hoyer and Julie Pierce
A California voting record was established when ninety-one percent of Clayton’s 364 registered voters approved incorporation of Contra Costa County’s 13th city on March 3, 1964, in Endeavor Hall. Clayton residents wanted local control of planning and development. They worried about development quality and density and the commercial strip zoning racing their way. They did not oppose development, but after many futile hearings in Martinez and elsewhere, they wanted to retain the semi-rural ambience of the Upper Clayton Valley.

In 1959, some leading Clayton citizens discussed incorporating Clayton to retain its historic identity and rural atmosphere through local control of land use planning and zoning. They were Randall “Chubby” Humble, owner of the Pioneer Inn; George Murchio, land owner; M. F Ohman, general manager of Pittsburg’s Dow Chemical plant; Judge Wroy Renaghan; and Lawrence Wallace, real estate appraiser. Appointed to their committee were Henry White, Martinez Hospital administrator; Thomas Grundy, Eldora Hoyer and Robert Kuntz.

Although an initial incorporation attempt failed in 1960, when two quarry properties requested exclusion, the Clayton Revolution was rekindled in 1963 by an impending annexation that would divide the town and forever prevent incorporation of historic Clayton.

News of a cherry stem annexation using streets and the Clayton home of Concord’s city attorney to access Cardinet Glen [the subdivision of homes near City Hall on Wallace and Cardinet] was seen in an obscure paragraph of the Oakland Tribune by Clayton’s Nan Wallace on March 3, 1963, who alerted Clayton residents and formed an incorporation study committee.

To delay the Concord annexation long enough to explore alternatives, shocked Claytonians immediately filed notice of intention to begin incorporation proceedings. Many residents circulated petitions and Eldora had the honor of delivering the papers to the county offices in Martinez to place it on the ballot. James Conley walked house to house collecting contributions for election expenses and ended up with enough extra money to buy a flag for city meetings. This time, the proposed incorporation area excluded large properties whose owners, wanting Concord sewers, could be expected to withdraw their lands and defeat the attempt to bring incorporation to a vote. It was hoped that future residents would annex to Clayton later.

While exploring alternatives to incorporation, the Clayton Incorporation Committee managed to have the Concord annexation attempt withdrawn because of irregularities, but it seemed evident that annexation attempts would continue. Clayton residents decided to bring incorporation to a vote feeling that it must be done now or probably never.

At 8:00 pm on March 3, 1964, Sigrid Frank, a 69-year-old Clayton old-timer who was the poll inspector, stepped onto the front porch of Endeavor Hall, rang a brass bell, and in traditional style proclaimed, “Hear Ye! Hear Ye! Hear Ye! The polls are closed.” The incorporation workers were tired but hopeful and euphoria built as the votes were tallied, with community “watchdogs” looking on. On top of the hill above town, Ken Byrd and Richard Hamb began ringing victory news across the valley with Clayton’s old school bell. The community had successfully declared its independence on March 3, 1964 in that historic vote.

Clayton’s first official meeting was March 18, 1964, when the council was sworn into office by Judge Wroy Renaghan with a large crowd in attendance. George Abbott and Al Liming drove to Sacramento to file the incorporation papers directly with the Secretary of State, to ensure prompt processing.

Maurice Huguet, Jr. was hired as city attorney and Marguerite Ellingson became the city’s part-time clerk. Huguet was then the youngest city attorney in Contra Costa County.

Our inaugural Planning Commission consisted of Joe Wallace, chairman, Joe Swicegood, Beth Laurence, Charles Levine and Howard Sumerlin. William Walker, a professional accountant, was appointed the first City Treasurer. Clayton’s city letterhead, still in use today, was designed in 1964 by Bob Hoyer with art by Ray Hare, a Clayton Valley High School art student.

Clayton’s standing among other jurisdictions grew with its activity on county, district, and regional boards and commissions and in the League of California Cities. In 1966-67 Clayton’s mayor chaired the Contra Costa Mayors’ Conference, and Clayton’s part-time clerk was Conference secretary. Clayton was represented at the 1967 National Mayors’ Conference in Honolulu (at no expense to Clayton). Clayton councilmen and appointees filled many key roles and influenced regional decisions affecting Clayton.

On Clayton’s first anniversary, the City received a resolution from the County Board of Supervisors commending the City on its first year and its efforts to comply with the wishes of its citizens in terms of community life, and for its forward-looking actions related to balanced development. The resolution noted that Clayton was incorporated to maintain a careful balance between progressive development and preservation of one of the most scenic landscapes in the central part of Contra Costa County.

Incorporation Facts:

Election Day: March 3, 1964
Number of Registered: Voters in Clayton 364
Number of Voters who cast ballots in election: 312
Turnout 91% of Registered Voters cast ballots, the largest percentage in the history of California for a municipal election.

Votes in Favor of Incorporation: 251
Votes Against Incorporation: 61
Clayton became the 13th City in Contra Costa County
Results of Council Election: Robert Hoyer-183; Henry Wagner-179; George Abbott-151; David Cook-147; Alvin Liming-140; Clyde Baker-113; Richard Hamb-104; Kenneth Byrd-90; Jack Leue-68; Gloria Patten-56.

City’s First Treasurer: William Walker
City’s First Clerk: Marguerite Ellingson
Police Services Contracted with the City of Concord
Public Works/Engineering Services Contracted with County City Attorney Maurice Huguet, Jr.

Population Approximately: 600
Clayton City Limits consisted of ½ square mile
City Boundaries: Clayton Road and Mt. Diablo Creek on the north, Marsh Creek Road on the east, Mitchell Canyon Road on the west and certain properties on the east.

Assessed Land Valuation: $1,200,000
City’s Budget: $23,517.00
Year-end Surplus: $2,589.00
Partial List of Expenses: City Attorney, $2,000; City Clerk, $1,500; Police Services, $8,875.00; Accounting Services, $250; Insurance and Bonding, $425; Utilities, $48; Telephone, $160; Supplies, $250; Rent, $175.

One year after incorporating, the City of Clayton was recognized by the Contra Costa County Board of Supervisors for their superb effort. In 1966, just two years following cityhood, Clayton hosted the Mayor’s Conference. Robert Hoyer served the City of Clayton for 16 years, and chaired the Bay Area Air District in 1971 after being appointed in 1968 to the District.

Fund Structure
According to the Government Finance Officers Association (GFOA), fund accounting is used to meet the reporting objective of providing information as to whether resources were obtained and used in accordance with the budget and other finance related requirements by accounting for financial transactions and balances through several separate funds, each accounting for designated assets, liabilities and equity. The City of Clayton reviews our fund structures annually to ensure appropriate and relevant data is reflected in our financial reporting. Additionally, all new funds must be reviewed and approved by the City Council. Healthy fund balances are essential to making good long-term decisions for any government organization. Our funds are broken into four different types: General Government (General fund with 9 different departments and 2 reserve accounts), Proprietary (business-like activities), Fiduciary (held in trust) and Special Revenue Funds (used for specific projects or uses).

Fund Categories
General Government 36
Fiduciary 22
Proprietary 7
Special Revenue 7
Listing of Funds
General Fund Fund
General Fund 101
Rainy Day Fund 110
Pandemic Recovery Reserve Fund 111
Special Revenue Funds
HUTA Gas Tax 201
RMRA Gas Tax 202
Landscape Maintenance District 210
The Grove Park 211
Geological Hazard & Abatement District 212
Presley GHAD Settlement Fund 213
Neighborhood Street Lights 214
Stormwater 216
Measure J 220
Restricted Grants 230
American Rescue Plan Act Fund 232
Development Impact Fees 304
Successor Housing Agency 616
Proprietary Funds
Self Insurance 501
Capital Equipment Replacement 502
Pension Rate Stabilization 503
Endeavor Hall 702
Fiduciary Funds
High Street Bridge Benefit Assessment District 217
Oak Street Bridge Benefit Assessment District 218
Lydia Lane Sewer Benefit Assessment District 222
Oak Street Sewer Benefit Assessment District 223
Diablo Estates Benefit Assessment District 231
Clayton Financing Authority 405
Middle School Community Facilities District No.1990-1 420 Clayton Financing Authority 2007 Refunding 422
Successor Agency 615
Basis of Budgeting
Basis of budgeting - the basis of accounting utilized throughout the budget process. The City of Clayton is required by law to pass an annual balanced budget.

Basis of accounting - a term used to refer to when revenues and obligations are recognized in the accounts and reported in the financial statements. The City of Clayton's budgets for the General, Special Revenue, and Fiduciary funds are prepared on essentially the same as a modified accrual basis of accounting. This method is also used for the City’s financial reporting and financial statements. Although the City of Clayton utilizes Modified Accrual that does not require budgeting for depreciation, the City still budgets for depreciation for Endeavor Hall, the main enterprise fund.

Overall Financial Structure
Budget Timeline
The graphic below illustrates key milestones in the development and approval process for the FY2022/23 Budget. Between each of the dates shown, staff is working to analyze, evaluate and develop recommendations that ultimately become part of the Proposed and Adopted budgets.

Mar 13, 2023
City Council Goal-Setting Session
Apr 24, 2023
Budget/Audit Council Subcommittee Meeting
May 30, 2023
Budget/Audit Council Subcommittee Meeting
Jun 6, 2023
City Council Budget Workshop
Jun 20, 2023
City Council Budget Adoption
Policy and Process Improvement Opportunities
Comprehensive Review and development of a Fiscal Management Policy which will include:

Pension and OPEB Policy
Reserve Policy
Investment Policy and Investment Management
Pension and OPEB Policy
The Pension policy will provide goals for funding the pension debt, a clear structure for sustainability, risk tolerance, funding status and funding plans and clearly defined oversight.

The Other Post-Employment Benefits (OPEB) Policy will be a separate policy from the Pension Policy and will provide ways to invest funds to pay for these benefits as well as to reduce overall liabilities and increase overall net position of the City as well as manage this debt with a plan that maximizes the use of the City's resources.

Reserve Policy
One of the key components of a financially stable municipality is the adherence to a policy of maintaining an appropriate level of reserves. Establishing a target minimum General Fund reserve is a mechanism that governments can implement to help ensure adequate levels of fund balance are available to help mitigate current and future risks. A minimum General Fund reserve is generally considered a prudent and conservative fiscal policy to deal with unforeseen situations. Some examples of unforeseen situations include, but are not limited to: extreme events, economic downturns, reduced revenues, Federal/State/County Budget Cuts, unfunded legislative or judicial mandates, capital obligations, one-time City Council approved expenditures, and innovative opportunities for the betterment of the community. To provide guidelines for establishing, maintaining, and reviewing minimum target General Fund reserves for the City of Clayton. This policy is developed to consider the minimum level necessary to:

Maintain creditworthiness;
Ensure cash availability during times of economic uncertainties and other financial hardships or downturns in the local or national economy or extreme events;
Provide for long-range planning, especially around future debt or capital obligations; Deciding when to use reserves, define what the minimum level is and how to replenish this if it should fall below the defined minimum threshold.

Investment Policy and Investment Management/Oversight
The objective of the investment portfolio is to meet the short and long-term cash flow demands of the City. To achieve this objective, the portfolio will be structured to provide Safety of Principal, Liquidity and Return on Investments.

It is the policy of the City of Clayton to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal monies with sufficient liquidity, while providing a reasonable investment return. The purpose of this Investment Policy is to identify and outline various methods and procedures for the prudent and systematic investment of public funds. This Investment Policy applies to all investment activities and financial assets of the City. The following Funds are covered by this Investment Policy and are accounted for in the City’s Comprehensive Annual Financial Report:

A. General Fund
B. Special Revenue Fund
C. Debt Service Fund
D. Capital Project Funds
E. Enterprise Funds
F. Internal Services Funds
G. Trust and Agency Funds
H. Any new funds created by the City Council.

Financial Policies - Looking towards the future
The City of Clayton's accounting policies and procedures are built on the foundation of strong internal controls. We have an important responsibility to the citizens of Clayton to carefully account for public funds, to manage the finances wisely, and to plan for adequate funding of services desired by the public, including: public safety services, public parks and facilities, community development, the library facility, public works, legal services, engineering services, streetlighting, 5 special assessment districts, the landscape and maintenance district, and the Clayton Financing Authority. Ultimately, the City’s reputation and success will depend on the public's awareness and engagement in the short and long term financial planning for the City.

Our goal is to provide excellent financial management through transparency, having the utmost integrity, and accountability, in order to gain the trust of the public we serve. During the FY2023 we plan to complete a comprehensive Fiscal Management Policy (that will update and/or replace current policies) including the following areas:

Policy 1 - Fiscal Planning and Budgeting
Fiscal planning refers to the process of identifying resources and allocating those resources for numerous and complex competing purposes. The primary vehicle for this planning is the preparation, monitoring and analysis of the City’s budget. It is increasingly important to incorporate a long-term perspective and to monitor the performance of the programs competing to receive funding.

Policy 2 - Fund Balance
Fund balance is an important indicator of the City’s financial position. Maintaining reserves is considered a prudent management practice. Adequate fund balances are maintained to allow the City to continue providing services to the community in case of unexpected emergencies or requirements and/or economic downturns.

Policy 3 - Expenditure Control
Expenditures will be controlled by an annual budget at the department/fund level. Management must ensure compliance with the legally adopted budget. In addition, purchases and expenditures must comply with legal requirements and policies and procedures set forth by the City.

Policy 4 - Revenues and Collections
In order to provide funding for service delivery, the City must have reliable revenue sources. These revenues must be assessed and collected equitably, timely, and efficiently.

Policy 5 - Grants
Many grants require the Council's approval of funds, either for the original grant or to continue programs after the grant funding has expired. Council should review these grant opportunities prior to determining whether an application should be made for these grant funds.

Policy 6 - Cost of Service and User Fees
User fees and charges are payments for voluntarily purchased, publicly provided services that benefit specific individuals. The City relies on certain fees and charges to supplement other revenue sources in order to provide public services. Indirect cost charges will be assessed to reflect the full cost of identified services.

Policy 7 - Capital Asset Accounting and Replacement
An effective asset accounting system is an important tool in managing the City’s capital investments. The purpose of using this system allows us to identify, plan, schedule, finance, track and monitor capital assets to ensure proper replacement of depreciated assets. The performance and continued use of capital infrastructure is essential to delivering public services.

Deferring essential maintenance and/or asset replacement can negatively impact service delivery and increase long-term costs.

Policy 8 - Investment Policy
The objective of the investment portfolio is to meet the short and long-term cash flow demands of the City. To achieve this objective, the portfolio will be structured to provide Safety of Principal, Liquidity and Return on Investments.

It is the policy of the City of Clayton to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal monies with sufficient liquidity, while providing a reasonable investment return. The purpose of this Investment Policy is to identify and outline various methods and procedures for the prudent and systematic investment of public funds.

This Investment Policy applies to all investment activities and financial assets of the City. The following Funds are covered by this Investment Policy and are accounted for in the City’s Comprehensive Annual Financial Report:

A. General Fund
B. Special Revenue Fund
C. Debt Service Fund
D. Capital Project Funds
E. Enterprise Funds
F. Internal Services Funds
G. Trust and Agency Funds
H. Any new funds created by the City Council.

Policy 9 - Reserve Policy
One of the key components of a financially stable municipality is the adherence to a policy of maintaining an appropriate level of reserves. Establishing a target minimum General Fund reserve is a mechanism that governments can implement to help ensure adequate levels of fund balance are available to help mitigate current and future risks. A minimum General Fund reserve is generally considered a prudent and conservative fiscal policy to deal with unforeseen situations. Some examples of unforeseen situations include, but are not limited to: extreme events, economic downturns, reduced revenues, Federal/State/County Budget Cuts, unfunded legislative or judicial mandates, capital obligations, one-time City Council approved expenditures, and innovative opportunities for the betterment of the community. To provide guidelines for establishing, maintaining, and reviewing minimum target General Fund reserves for the City of Clayton. This policy is developed to consider the minimum level necessary to:

Maintain creditworthiness;
Ensure cash availability during times of economic uncertainties and other financial hardships or downturns in the local or national economy or extreme events;
Provide for long-range planning, especially around future debt or capital obligations; Deciding when to use reserves, define what the minimum level is and how to replenish this if it should fall below the defined minimum threshold.

Policy 10 - Pension/OBEB Management Policy
The Pension policy will provide goals for funding the pension debt, a clear structure for sustainability, risk tolerance, funding status and funding plans and clearly defined oversight.

The Other Post-Employment Benefits (OPEB) Policy will be a separate policy from the Pension Policy and will provide ways to invest funds to pay for these benefits as well as to reduce overall liabilities and increase the overall net position of the City as well as manage this debt with a plan that maximizes the use of the City'sresources.

Roles and Responsibilities of the Finance/Accounting Function The Finance Department is made up of a team of 3 staff (one full time finance director, a 60% time accounting technician and a 70% time front desk administrative assistant), and covers all areas of accounts receivable, accounts payable, payroll, project accounting management, grant management, sales tax reporting, financial reporting, annual audits, budgeting, cash management and investments. Additionally, Finance staff act as liaisons to all other departments to help foster crossdepartmental collaboration.

Below is a summary of the duties of each position in the finance department - all of which play a role in our accounting policies and procedures.

1. Finance Director (Interim) - Nitish Sharma, [email protected]  a. Responsibilities include:
i. Internal control development, oversight and management ii. Budget preparation, interim monitoring and reporting (mid-year and adoption) iii. Overall general ledger management (modified accrual GAAP accounting) iv. Accounting related internal control monitoring and implementation v. City of Clayton Financial statement and audit preparation vi. Clayton Financing Authority Financial statement and audit preparation vii. RDA Successor Agency semi-annual ROPS preparation and reporting viii. Other periodic regulatory reporting including:

1. Annual SCO reports

2. Annual SCO gas tax report

3. AB1600 Report

4. Federal / State audits and requests for information

5. Quarterly and Annual Payroll tax reporting and oversight ix. Banking and cash management
x. Investment portfolio and related reports
xi. Billing / Accounts Receivable
xii. Ensuring cash and checks are deposited in a timely manner with propert oversight xiii. Oversee payroll, labor allocations, and timesheet management xiv. Oversee AP disbursements
xv. Oversee timely fiscal closing
xvi. Plan to report financials to the public on a quarterly basis xvii. Oversee business license process
xviii. Oversee facility rental management
xix. Oversee grant and project accounting
xx. Complete a succession plan for the city's financial function

2. Accounting Technician – Jennifer Giantvalley, [email protected]  a. Part time position – Monday, Wednesday, and Friday - 60% time b. Responsibilities include:
i. Payroll processing (HR functions are segregated and the responsibility of City Clerk/HR Manager) ii. Accounts payable / disbursements processing and preparation of obligations reports iii. Project accounting work
iv. Assist in general ledger entries
v. Assist in project accounting work
vi. Coordinate with engineering on projects and coding
vii. Employee benefits calculations and payments
viii. Cash receipts processing
ix. Annual 1099/W-9 processing
x. Grant and project accounting
xi. Assisting Finance Manager with accounting/finance projects xii. Assisting in answering the front phone line in the absence of the Admin Assistant

3. Administrative Assistant (70% Finance/30% Code Enforcement) a. Finance-related Responsibilities include:
i. Answer phones and help public as this position is the first point of contact for the public. ii. Business license interim and annual management
iii. Scheduling and managing City Facility rentals for:

1. Endeavor Hall

2. Hoyer Hall (library)

3. Clayton Community Park picnic areas

4. Grove park picnic areas
iv. Front desk customer support
v. Answering front phone line
vi. Closing office at day’s end
vii. Receiving and distributing daily mail
viii. Assisting Finance Manager with accounting/finance projects as time permits 8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]

PUBLIC EMPLOYEES RETIREMENT PENSION SYSTEM
A Brief History
Eleven years after its incorporation as a municipality in 1964, the City of Clayton joined the California Public Employees Retirement System (CalPERS) to establish a pension system for its public employees (June 1975). At that time, it contracted for a retirement system plan of 2% at age 55 for its sworn law enforcement officers and 2% at age 60 for its general (miscellaneous) employees. Each enrolled plan was the least costly “defined benefit” plan offered by CalPERS.

For the next 40 years and continuing today, permanent employees of the City are members of CalPERS for retirement pension purposes. The City organization does not belong to Social Security; therefore, its employees rely on this public pension system as the primary retirement program.

A plan change occurred in 1997 when the City moved its law enforcement employees from the CalPERS 2% at age 55 Plan to a 2% at age 50 Plan; miscellaneous employees were kept on the 2% at age 60 Plan. Presumably at that time the City elevated the retirement benefits of its Police Department in order to attract and retain quality sworn personnel in the competitive public sector market. In early 2001 the retirement plans were again modified (through the collective bargaining process) to the existing “Classic” contracts of 3% at age 55 for Public Safety (sworn law enforcement) and 2% at age 55 for the Miscellaneous Unit (civilian). CalPERS also initiated unilateral action to eliminate small-employer public agency members from consideration as independent agencies and “pooled” them together to share some of the pension risk. These new pooled plans (in effect today) are referred to as Multiple-Employer “Cost-Sharing” Defined Benefit Plans. Although cost sharing plans are designed to bundle employer pension expenses of several employer plans that provide identical benefits, plans that had super- or under-funded statuses carried forward their positive or negative balances into the new plan in what is referred to as a “Side-Fund”. Thus, this CalPERS action caused several of the small employers (including Clayton) to report separate side-fund “unfunded liabilities” which the City of Clayton has been reducing over time within its annual employer contribution pension rates as analyzed in greater detail later.

In 2008, coinciding with the abrupt downturn in the national and local economies and the wave of retiring Baby Boomers (born 1946 - 1964), the press and the public waged a vigorous debate concerning the amount and scope of unfunded liabilities of governments [taxpayers] for the CalPERS defined benefit retirement plan. Public pension policies have been modified, reformed and threatened over the course of this examination and it continues today in the form of state legislation reform bills, statewide initiatives and court cases. Resulting from this, the State of California legislature enacted the Public Employee Pension Reform Act (PEPRA) effective January 2013 creating a new defined benefit pension tier for any newly-enrolled CalPERScovered employees.

However, even in advance of PEPRA and most other public agencies, the City of Clayton established a 2nd Tier Plan effective January 2011 for all new “Classic” hires. To further mitigate its unfunded liability exposure, the Clayton City Council took action in March 2012 to prohibit all future local elected officials (e.g., city council members) from becoming members of the CalPERS pension plan.
8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]
In regards to action taken to address the reasonableness of actuarial assumptions, the 2016 Annual Review of Funding Levels and Risks published by CalPERS on September 20, 2016 concluded economic conditions at that time increased the risk associated with achieving a 7.5% rate of return over the medium term (10 years or so). With this in mind, action was taken by the CalPERS Board to re-address the viability of the actuarially assumed discount rate for future years with the goal of increasing funded status of pension plans. Accordingly, on December 21, 2016 the CalPERS Board voted to lower its discount rate from 7.5% to 7.0% over a three-year timeframe with the hope the incremental lowering of the rate would give employers more time to prepare for the changes in contribution costs. The first year of pension contribution increases resulting from lowering the discount rate was FY 2018/19.

Various Pension Plan Groups and Composition
As a consequence of the actions taken as described previously the City of Clayton now has three (3) separate CalPERS pension plan tiers for its employees for both the Public Safety and Miscellaneous employee groups:

1. Tier I “Classic” – This plan covers existing City employees hired prior to January 2011. No future employee of the City can ever enroll into the Tier I Plan and accordingly this pool of existing employees will shrink in number as these employees move to other employment or retire from the City. The benefit formula for Public Safety Tier I members is 3% @ 55 and the benefit formula for Miscellaneous Tier I members is 2% @ 55.

Previously, the City made the required employee contributions on behalf of all Tier I employees, which is defined as “Employer Paid Member Contributions” (EPMC) by CalPERS. As part of threeyear Police Officers Association (POA) labor agreement approved on July 7, 2015, the previous 9% EPMC for Public Safety Tier I members has now been entirely phased out, with members of this group paying the full required employee contribution rate. While beneficial for future pension obligations, this phase-out did come at a cost and was offset by a negotiated 4% annual cost of living adjustment for all sworn officers for the three- year period ending June 30, 2018.

Commencing FY 2018/19, as part of the current three (3) year labor agreement with the POA, Tier I Public Safety members of the POA were required to help contribute towards the escalating normal cost employer rate. Referred to as “cost-sharing”, these member-paid employer contribution sharing rates were 0.5%, 1.25%, and 2.25% for FY 2018/19, FY 2019/20, and FY 2020/21, respectively. In FY 2021/22, net of any member-paid employer contributions, employer contribution rates for Tier I employees will be 20.64% and 10.34% for Public Safety and Miscellaneous Plan Members, respectively.

2. Tier II “Classic” – This plan covers City employees hired during the timeframe January 2011 through December 2012, plus any new hire of the City that comes from an employer previously enrolled in a CalPERS pension system (without a break in service longer than six months). The benefit formula for Public Safety Tier II members is 2% @ 50 and the benefit formula for Miscellaneous Tier II members is 2% @ 60. There is no EPMC provision, making employees responsible for the entire employee pension contribution rate, which is 9% for Public Safety plan members and 7% for Miscellaneous Plan members.
8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]

3. Tier III “PEPRA” – This plan automatically covers any new employee of the City not previously a member of CalPERS or with a break in service longer than six months. The benefit formula for Public Safety Tier III members is 2.7% @ 57 and the benefit formula for Miscellaneous Tier III members is 2% @ 62. Under PEPRA law, members are required to pay at least 50% of the normal cost of benefits, essentially splitting the pension contribution rate requirement with some exceptions.

Status of the City’s Unfunded Actuarial Liability
An unfunded actuarial liability (UAL) is the difference between the estimated current liability to pay future benefits and the current market value of assets accumulated to pay those benefits. If assets are greater, a plan is overfunded and if the liability is greater, a plan is underfunded, creating an unfunded liability. The unfunded liability is an estimated figure changing with each actuarial valuation pursuant to changes in market value of assets, investment earnings and actual results of the plan as compared to actuarial assumptions. Unfunded liabilities are not amounts that are actually due today but are estimates of what pension actuaries believe will be needed to pay future benefits. The funding policies established by CalPERS are intended to provide for full funding of the pension plan by the time employees retire. The following is a line chart summarizing the City’s UALs for both the Public Safety Tier I and Miscellaneous Tier I employee plans for the past two (2) years and estimates for the next ten (10) fiscal years:

As depicted in the chart above, when considering the current funded status of the City’s pension plans, the most recently issued actuarial reports (annual valuation report as of June 30, 2021/contributions for FY2023/24) reflect increases to both the Safety and Miscellaneous Tier I Plan UALs. As of the June 30, 2021 valuation, the Safety Tier I Plan UAL decreased by approximately 28.6% to $2,323,394 reflecting a funded status of 81.1%. Similarly, the $1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 As of July 1
Tier 1 Unfunded Accrued Liability Historical and
Projected Trend
Miscellaneous Public Safety
8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]
Miscellaneous Tier I Plan UAL decreased by 30.1% to $1,659,643, reflecting a funded status of

81.8%.

CalPERS reported a -6.1% investment return in FY 2021/22, which is substantially lower than the assumed 6.8% discount rate benchmark that was in place at the time. We see the impact of this negative return reflected in a dramatically increased unfunded liability from the 2021 fiscal year to the 2022 fiscal year, represented in the previous graph. As a result, the latest projections expect employer UAL pension contributions for the two “Classic” Tier I plans to gradually increase until reaching their ceiling in FY 2031/32, after which they steadily reduce until both plan UALs are fully paid off in FY 2044/45 (under present value calculations and CalPERS methodologies).

Impacts of Statutory Pension Reform – Short and Long-Term Since the adoption of PEPRA and due to measures taken by the City Council in 2011 to create second retirement tiers, noteworthy savings were realized by the City in the three-year timeframe from FY 2012/13 to FY 2014/15. Ultimately, these savings were realized by the City through the gradual attrition of several Tier I “Classic” employees with those positions subsequently filled by less expensive Tier II and PEPRA enrolled employees. However, commencing in FY 2015/16, in an aggressive and deliberate measure to recapture these savings realized by participating agencies, CalPERS began billing for the unfunded portion of the City’s Tier 1 pension liabilities as a fixed dollar amount as opposed to the “percentage of payroll” method used in all prior years leading up to FY 2015/16. Therefore, to understand and better prepare for fluctuations in employer pension costs, a city must monitor both the percentage of payroll (“Normal Cost”) rate as well as the relatively new fixed dollar UAL contribution components.

The latest CalPERS actuarial reports for the year ended June 30, 2021 established the City’s normal cost contribution rates as well as the fixed dollar UAL contribution requirements for the upcoming fiscal year. The City’s FY 2023/2024 contribution requirements relative to the prior year are as follows:

Normal
Cost
Normal
Cost
2022-23 2023-24
Miscellaneous Tier 1 10.32% 11.84%
Miscellaneous Tier 2 8.63% 10.10%
PEPRA
Miscellaneous 7.47% 7.68%
Safety Tier 1 20.64% 22.83%
Safety Tier 2 18.17% 19.95%
PEPRA Safety 12.78% 13.54%
8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]
Changes in legislation, employee workforce attrition, and volatility of CalPERS estimates (i.e., investment returns), make it challenging to predict future pension costs as well as the status of the UAL with absolute certainty. However, the following chart provides a summary of historical City-wide employer pension contributions over the past two (2) years as well as a projection for the current fiscal year still underway (FY 2022/23) and the following ten future years thereafter using employment and actuarial information known at this time. As noted previously, the unpredictability of workforce and market factors makes these future year projections subject to change prospectively.

In all, the total amount of monies in the proposed budget projected to be required to pay CalPERS retirement contributions in FY 2023/24 is approximately $836,343 across all City funds, representing an increase of $72,462 or 8.7%. The significant increase in FY2023/24 comes after a year in which the City already had a significant increase of over $80,000 in PERS costs in FY2022/23. It should be noted as well that it appears the statewide pension reform that was enacted a decade ago, PEPRA, does seem to be having an impact on reducing at least the annual "normal" cost of the City's PERS requirements. It does not, however, yet have an impact on the unfunded accrued liability which continues to increase each year. This year it represents more than 75% of the City's total PERS costs for FY2023/24. This means for every one dollar spent on employer pension contributions, 75¢ is used to address the buildup of the unfunded liability reported by CalPERS actuaries and not to address future retirement benefits of the current workforce. $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Fiscal Year End June 30
Employer Pension Cost Trend
8605 Santa Monica Blvd PMB 52465
West Hollywood, CA 90069
[email protected]
Summary of Pension Analysis
The purpose of this information published annually is not to marginalize the seriousness of the unfunded pension plan debate, but to provide transparency and context to a story often sensationalized by the media. Acknowledging the importance of addressing the City’s exposure to the growth of unfunded pension liabilities, several actions outlined in detail previously have been taken by the City Council, CalPERS, and the state legislature. These actions were designed to address the issue in the long run, without causing immediate and detrimental setbacks to the City’s current ability to provide public services. Considering the already scarce local resources available, it is encouraging to see the City appears to be headed in the right fiscal direction on this matter. Nevertheless, prudent and regular monitoring of the City’s progress will be essential to achieving sustainable and sensible budgets well into the future.

American Rescue Plan Act
On March 11, 2021, President Biden signed into law HR 1319, the American Rescue Plan Act of 2021 (“ARPA”), which provides a total of $1.9 trillion in financial assistance to individuals, businesses, and state and local government agencies to assist in the economic recovery from the COVID-19 pandemic. ARPA included a provision entitled “Coronavirus State and Local Fiscal Recovery Funds” (“SLFRF”) that includes $350 billion in funding for state and local governments, of which $65 billion was dedicated to local government agencies.

ARPA provided flexibility for each government to meet local needs in four areas: 1) supporting public health in response to and economic impacts from the pandemic; 2) providing premium pay for essential workers; 3) replacing lost public sector revenues; and 4) investing in water, wastewater and broadband infrastructure; and The City is classified as a non-entitlement unit within the provisions of SLFRF and will receive a total of $2,934,049 in federal relief funds divided into two equal payments (or “tranches”) of approximately $1,467,025. The City received its first payment in July 2021 and the second in July 2022.

In the fall of 2021, the City Council embarked on a process to identify investment opportunities of the one-time ARPA funds. It approved an agreement with Management Partners to engage the community and analyze such investment opportunities for Council consideration. As a result of that outreach and analysis, the City Council has approved a series of programs related to COVID recovery.

The programs approved by the City Council included appropriating the initial tranche of $1,467,025 for the Clayton Cares program to provide relief to businesses and community members and related administrative expenses. Subsequently, in January 2022, the City Council reappropriated $242,000 of these funds to provide one-time essential worker premium pay to City employees. Additionally, in March, the City Council approved the use of $49,500 in ARPA funding to purchase and implement a 3-year license of the ClearGov budget software platform. The City Council also recently approved the creation of the American Rescue Plan Act special revenue fund (#232) to track revenues and expenditures associated with ARPA funds.

The US Treasury Department (“Treasury”) is responsible for administering the provisions of the SLFRF. They issued an Interim Final Rule (IFR) on the use and reporting of SLFRF funds in May 2021, and issued their Final Ruling (FR) on January 6, 2022, the latter of which becomes effective April 1, 2022. Treasury also issued compliance and reporting guidelines on February 28, 2022 that assist local agencies in understanding the reporting requirements under the legislation.

One of the key changes that occurred in the FR is that Treasury determined that they would allow a standard revenue loss allowance for each agency of up to $10 million, rather than having to rely on the formula originally contained in the Interim Rule. Under this category, known as the “Revenue Replacement” category, any agency can stipulate to this $10 million revenue loss amount and claim up to that amount based on the funds they received. In practice, agencies that received less than $10 million (like Clayton) are allowed to report their use of ARPA funds entirely as revenue replacement to streamline reporting of the use of the funds to the Treasury Department.

By assigning the use of ARPA funds for the purpose of reporting to Treasury under this category, the City has chosen to use the funds for the provision of general government services”, which the FR defines as any service normally provided by the local government. The City has been able to report use of all of its ARPA funds under this revenue replacement category based on the expenditures incurred in the City’s General Fund (which well exceed the ARPA funds received in any fiscal year).

The replenishment/inflow of these one-time revenues in the General Fund has allowed the City Council to designate the resulting unanticipated surplus from these funds as a “Pandemic Recovery Reserve Fund” (Fund 111) which then captures the ultimate use of the ARPA funds. The City Council approve ARPA fund expenditures through the current fiscal year is illustrated below:

Job Classification FY 2019/20 FY2020/21 FY2021/22 FY 2022/23 FY 2023/24 Accounting Technician 0.6 0.6 0.6 0.6 0.8
Executive Assistant to the City
Manager/ HR Manager

1.0 1.0 1.0 1.0 1.0
City Clerk 1.0 1.0 1.0 1.0 1.0
City Manager 1.0 1.0 1.0 1.0 1.0
Finance Director 1.0 1.0 1.0 1.0 1.0
Office Assistant 0.7 0.7 0.7 0.7 0.7
Senior Accountant (new) 0.0 0.0 0.0 1.0 1.0
Public Works Maintenance Senior 1.0 1.0 1.0 1.0 1.0
Maintenance Supervisor 1.0 1.0 1.0 1.0 1.0
Maintenance Worker I 3.0 3.0 3.0 3.0 3.0
Maintenance Worker II 1.0 1.0 1.0 1.0 1.0
Community Development
Assistant Planner

0.6 0.6 0.6 0.8 0.8
Community Development Director 1.0 1.0 1.0 1.0 1.0
Office Assistant 0.3 0.3 0.3 0.3 0.3
Chief of Police 1.0 1.0 1.0 1.0 1.0
Police Sergeant 3.0 3.0 3.0 3.0 4.0
Police Officer 7.0 7.0 7.0 7.0 6.0
Police Office Coordinator 1.0 1.0 1.0 1.0 1.0
Police Admin Clerk 1.0 1.0 1.0 1.0 1.0
Total Authorized Positions 26.2 26.2 26.2 27.4 27.6
Authorized Position Listing
How to Read the Budget Document
The most significant value of a Budget document is to communicate to the City Council, employees and the public the City's priorities and plans for allocating scarce resources. This section of the budget document describes the sections of the document, the purpose of each and how the information is presented. The budget document includes the following sections:

Introduction
This section of the document provides an overview of the City organization, its elected officials, mission and vision and some history and current statistics.

Budget Overview
This section provides a broad overview of the context and challenges addressed in the Proposed Budget. It includes a Budget Message transmitting the document to the City Council; a discussion of priorities and issues including the City's economic recovery related to the COVID19 pandemic, the ongoing significant impact of pension obligations as well as a look forward to improvement opportunities in the coming years.

Fund Summaries
This section provides financial information regarding each of the City's funds including anticipated revenues and expenditures as well as information on the anticipated fund balances.

Departments
This section provides an overview of each of the City's operating departments, including goals and proposed spending for FY2022/23.

Capital Improvement Program
This section includes the City's proposed spending on capital projects. It includes information on the projects, the proposed spending for FY2022/23 as well as a look at future funding needs for each of the projects.

Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
Revenues
101-4100-00 Property Tax In-Lieu of VLF $ 1,132,352 $ 1,198,595 $1,211,369 $ 1,272,180 101-4101-00 Property Taxes - Secured $ 998,842 $ 1,118,781 $1,160,070 $ 1,255,214 101-4102-00 Property Taxes - Unsecured $ 41,495 $ 30,748 $ 43,090 $ 44,551 101-4103-00 Property Taxes - Unitary Tax $ 16,449 $ 14,413 $ 17,040 $ 16,449 101-4104-00 Property Taxes - Supplemental $ 50,459 $ 30,000 $ 8,269 $ 10,000 101-4106-00 Property Taxes - Other $ 8,924 $ 9,100 $ 9,000 $ 9,000 101-4108-00 Redevelopment Property Tax Trust Fund - Distribution $ 468,772 $ 471,390 $ 457,570 $ 476,530 101-4301-00 Sales and Use Tax $ 563,908 $ 571,816 $ 549,975 $ 571,831 101-4502-00 Real Property Transfer Tax $ 129,473 $ 114,240 $ 82,114 $ 80,472 101-5101-00 Business Licenses $ 162,881 $ 154,500 $ 171,631 $ 158,147 101-5103-00 Building Permit Remit Fees (Surcharge) $ 114,994 $ 80,000 $ 75,000 $ 75,000 101-5106-00 Engineering Service Fees $ 12,170 $ 5,566 $ 6,000 $ 6,000 101-5201-00 Public Safety Allocation $ 118,317 $ 103,531 $ 90,562 $ 100,000 101-5202-00 Abandoned Veh Abate (AVA) $ 1,352 $ 5,712 $ 2,628 $ 3,000 101-5203-00 Motor Vehicle In Lieu $ 13,017 $ 12,000 $ 11,341 $ 12,000 101-5205-00 Other In Lieu $ 174,443 $ 174,389 $ 181,493 $ 175,000 101-5214-00 POST Reimbursements $ 2,315 $ 6,120 $ 6,598 $ 6,500 101-5217-00 State Mandated Cost Reimbursement $ 2,547 $ - $ - $ - 101-5301-00 Planning Permits/Fees $ 16,765 $ 15,000 $ 10,000 $ 10,000 101-5302-00 Police Permits/Fees $ 10,526 $ 12,500 $ 9,030 $ 10,000 101-5303-00 City Hall Rental Fees $ - $ 204 $ - $ -
101-5304-00 Planning Service Charges $ 10,540 $ 35,000 $ 5,000 $ 10,000 101-5306-00 Well Water Usage Charge $ 5,804 $ 6,000 $ - $ - 101-5319-00 Miscellaneous City Services $ 399 $ 100 $ 154 $ 100 101-5322-00 Fiduciary Funds Administration $ 272,151 $ 220,878 $ 220,878 $ 220,878 101-5401-00 Franchises - Comcast Cable $ 208,276 $ 208,488 $ 200,000 $ 195,000 101-5402-00 Franchises - Garbage Fees $ 214,016 $ 214,000 $ 215,000 $ 229,344 101-5403-00 Franchises - PG&E $ 138,001 $ 140,000 $ 161,484 $ 163,099 101-5404-00 Franchises - Equilon Pipe $ 27,446 $ 17,892 $ 20,000 $ 20,000 101-5405-00 AT&T Mobility Francise Fees $ - $ - $ 4 $ - 101-5501-00 Fines and Forfeitures $ 34,100 $ 25,000 $ 22,219 $ 20,000 101-5601-00 Interest $ 59,898 $ 86,000 $ 117,693 $ 133,795 101-5602-00 Park Use Fee $ 35,940 $ 32,000 $ 22,981 $ 35,000 101-5603-00 Meeting Room Fee $ 3,275 $ - $ 4,406 $ 3,000 101-5605-00 Inv. Premium/Discount $ - $ - $ - $ -
101-5606-00 Unrealized Inv. Gain/Loss $ (252,674) $ - $ - $ - 101-5608-00 Cattle Grazing Lease Rent $ 10,710 $ 10,710 $ 10,895 $ 10,900 101-5609-00 Cell Tower Lease Rent $ 37,901 $ 37,587 $ 37,587 $ 38,000 101-5610-00 Fountain Use Fee $ 1,290 $ - $ - $ -
101-5613-00 Clayton Community Gymnasium Rent $ 2,200 $ 18,600 $ 24,200 $ 26,400 101-5701-00 Reimbursements/Refunds $ 18,361 $ 8,000 $ 19,000 $ 15,000 101-5703-00 Clayton Community Library Foundation Contributions $ - $ - $ - $ - 101-5789-00 Other Financing Sources $ 22,168 $ - $ - $ - 101-5790-00 Other Revenues $ 11,491 $ 8,000 $ 4,152 $ 5,000 101-5791-00 Overhead Cost Recovery $ 10,993 $ 11,000 $ 30,009 $ 20,000 101-6002-00 Admin Exp Rec - Measure J Fund $ 5,076 $ 5,330 $ 5,330 $ 5,543 General Fund (101)

RECEIPTS DETAIL
Budget Unit: 00 - General Operating Revenues
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
General Fund (101)

RECEIPTS DETAIL
Budget Unit: 00 - General Operating Revenues
101-6004-00 Admin Exp Rec - HUTA Gas Tax Fund $ 8,460 $ 8,883 $ 8,883 $ 9,238 101-6005-00 Admin Exp Rec - Neighborhood Street Lights Fund $ 13,006 $ 13,656 $ 13,006 $ 13,526 101-6006-00 Admin Exp Rec - GHAD Fund $ 8,160 $ 8,577 $ 8,169 $ 8,496 101-6007-00 Admin Exp Rec - Landscape Maint CFD Fund $ 40,679 $ 42,713 $ 41,713 $ 43,381 101-6011-00 Admin Exp Rec - The Grove Park CFD Fund $ 8,273 $ 8,687 $ 8,687 $ 9,034 101-6016-00 Admin Exp Rec - Stormwater Assessment Fund$ 41,966 $ 44,064 $ 41,966 $ 43,645 101-6019-00 Trx. From Grant Fund $ 1,472,060 $ 1,510,549 $1,477,024 $ - 101-6033-00 Transfer from Fund 503 Pension Fund $ - $ 37,139 $ 70,664 $ 113,663 Total: $ 6,509,967 $ 6,887,459 $6,893,882 $ 5,683,916
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
01 Legislative/Council $61,917 $96,621 $68,777 $70,486
02 Admin/Finance/Legal/Public Works - Building $1,108,236 $1,109,133 $1,050,424 $1,202,622 03 Parks $172,661 $219,718 $261,950 $222,890
04 Community Development $299,175 $381,717 $351,531 $419,504 05 General Services $277,547 $298,885 $279,091 $342,227 06 Police $2,706,489 $2,738,617 $2,456,826 $2,881,736
07 Library $107,865 $131,104 $157,438 $137,093
08 Engineering Department $160,762 $167,148 $161,462 $162,089 09 Clayton Community Park $228,727 $277,492 $230,939 $245,269 Total: $5,123,378 $5,420,435 $5,018,436 $5,683,916
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 01 - Summary
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7115-01 Council/Commission Compensatio $31,418 $28,200 $28,200 $28,200 101-7220-01 PERS Retirement-Normal Cost $0 $0 $0 $0
101-7221-01 PERS Retirement - Unfunded Liability $0 $0 $0 $0 101-7231-01 Workers' Compensation $1,582 $956 $2,015 $1,272 101-7232-01 Unemployment Compensation $637 $1,748 $0 $1,956 101-7233-01 FICA Taxes $2,337 $2,157 $1,629 $2,157
Subtotal: $ 35,974 $ 33,061 $ 31,844 $ 33,586
101-7321-01 Printing and Binding $496 $500 $493 $700
101-7324-01 Dues and Subscriptions $11,528 $13,660 $13,660 $14,000 101-7362-01 City Promotional Activity $6,843 $4,500 $5,000 $4,500 101-7363-01 Business Meeting Expense $1,152 $500 $0 $500 101-7364-01 Employee Recognition $0 $0 $160 $200
101-7372-01 Conferences/Meetings $600 $2,000 $2,218 $2,000 101-7373-01 Education & Training $0 $5,000 $0 $0
101-7382-01 Election Services $0 $20,000 $0 $0
101-7413-01 Legal Services $0 $0 $2,142 $0
101-7419-01 Other Professional Services $5,324 $17,400 $13,260 $15,000 Subtotal: $ 25,943 $ 63,560 $ 36,933 $ 36,900
Total: $ 61,917 $ 96,621 $ 68,777 $ 70,486
Personnel Services
Operations & Maintenance
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 01 - Legislative/Council
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111-02 Regular Salaries $630,343 $635,808 $584,956 $689,644 101-7218-02 Long/Short Term Disability Insurance $4,675 $6,255 $2,898 $6,110 101-7219-02 Deferred Compensation Retirement $6,462 $9,600 $8,862 $14,600 101-7220-02 PERS Retirement-Normal Cost $60,544 $62,775 $40,268 $71,307 101-7221-02 PERS Retirement - Unfunded Liability $74,794 $78,415 $72,461 $86,702 101-7231-02 Workers' Compensation $19,103 $27,354 $31,629 $29,420 101-7232-02 Unemployment Compensation $949 $867 $80 $0
101-7233-02 FICA Taxes $9,810 $9,252 $10,489 $9,455
Subtotal: $ 806,679 $ 830,327 $ 751,643 $ 907,238
Operations & Maintenance
101-7241-02 Auto Allowance/Mileage $ 8,940 $ 8,940 $ 4,000 $ 8,940 101-7246-02 Benefit Insurance $ 87,217 $ 98,327 $ 63,365 $ 103,128 101-7324-02 Dues and Subscriptions $ 4,244 $ 2,800 $ 897 $ 2,800 101-7332-02 Telecommunications $ 7,075 $ 7,460 $ 7,460 $ 7,400 101-7371-02 Travel $ - $ 100 $ 208 $ 100
101-7372-02 Conferences/Meetings $ 2,679 $ 1,250 $ 899 $ 1,000 101-7373-02 Education & Training $ (12) $ 5,000 $ 1,949 $ 5,000 101-7389-02 Misc. Expense $ 518 $ 500 $ 1,560 $ 2,000
101-7411-02 Legal Services Retainer $ 89,016 $ 76,999 $ 76,999 $ 82,833 101-7413-02 Legal Services $ 7,474 $ 6,000 $ 5,000 $ 5,000 101-7414-02 Audit & Financial Reporting Services $ 36,722 $ 40,531 $ 40,000 $ 44,584 101-7415-02 Computer/IT Services $ 7,649 $ 7,600 $ 7,600 $ 7,600 101-7419-02 Other Professional Services $ 50,035 $ 23,300 $ 88,844 $ 25,000 101-7481-02 Bank Service Charge $ - $ - $ - $ -
Subtotal: $ 301,556 $ 278,806 $ 298,781 $ 295,385
Total: $ 1,108,236 $ 1,109,133 $ 1,050,424 $ 1,202,622
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 02 Admin/Finance/Legal/Public Works - Building Personnel Services
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111-03 Regular Salaries $6,967 $32,026 $35,950 $31,102 101-7112-03 Temporary Salaries $0 $0 $0 $0
101-7113-03 Overtime $323 $1,030 $1,000 $1,000
101-7218-03 Long/Short Term Disability Insurance $52 $1,126 $448 $305 101-7220-03 PERS Retirement-Normal Cost $1,013 $2,745 $8,693 $2,742 101-7221-03 PERS Retirement - Unfunded Liability $904 $2,914 $2,693 $5,328 101-7231-03 Workers' Compensation $953 $1,370 $1,300 $1,469 101-7232-03 Unemployment Compensation $124 $71 $0 $0
101-7233-03 FICA Taxes $113 $1,957 $199 $472
Subtotal: $ 10,449 $ 43,239 $ 50,283 $ 42,419
101-7246-03 Benefit Insurance $ 381 $ 10,425 $ 26,174 $ 6,457 101-7301-03 Recruitment/Pre-employment $ 363 $ 500 $ - $ - 101-7311-03 General Supplies $ 5,545 $ 7,500 $ 6,676 $ 7,000 101-7324-03 Dues and Subscriptions $ - $ 139 $ - $ 100
101-7331-03 Rentals/Leases $ - $ - $ - $ -
101-7332-03 Telecommunications $ 3,068 $ 4,010 $ 3,009 $ 3,600 101-7335-03 Gas & Electricity $ 54,424 $ 51,700 $ 51,700 $ 55,000 101-7338-03 Water Services $ 17,666 $ 21,000 $ 21,000 $ 20,000 101-7341-03 Buildings/Grounds Maintenance $ 23,659 $ 19,433 $ 19,107 $ 19,000 101-7342-03 Machinery/Equipment Maintenanc $ 1,396 $ 1,750 $ 1,750 $ 1,750 101-7343-03 Vehicle Maintenance $ 1,166 $ 1,500 $ 1,500 $ 1,500 101-7344-03 Vehicles: Gas, Oil & Supplies $ 436 $ 1,100 $ 1,100 $ 1,000 101-7346-03 HVAC Mtn & Repairs $ 15,093 $ 12,360 $ 37,553 $ 21,000 101-7373-03 Education & Training $ 2,280 $ 2,000 $ 195 $ 1,000 101-7411-03 Legal Services Retainer $ 155 $ 1,222 $ 63 $ 1,315 101-7417-03 Janitorial Service $ 18,045 $ 13,900 $ 13,900 $ 13,900 101-7429-03 Animal/Pest Control Services $ 1,670 $ 1,700 $ 1,700 $ 1,700 101-7435-03 Contract Seasonal Labor $ 3,805 $ 3,090 $ 3,090 $ 3,000 101-7440-03 Tree Trimming Services $ 3,060 $ 5,150 $ 5,150 $ 5,150 101-7441-03 Dog Park Operating Costs $ - $ 8,000 $ 8,000 $ 8,000 101-7486-03 CERF Charges $ 10,000 $ 10,000 $ 10,000 $ 10,000 Subtotal: $ 162,211 $ 176,479 $ 211,666 $ 180,471
Total: $ 172,661 $ 219,718 $ 261,950 $ 222,890
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 03 Parks
Personnel Services
Operations & Maintenance
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111-04 Regular Salaries $188,138 $223,947 $211,987 $240,530 101-7113-04 Overtime $0 $0 $0 $0
101-7115-04 Council/Commission Compensatio $4,440 $7,200 $4,500 $7,200 101-7218-04 Long/Short Term Disability Insurance $1,245 $2,074 $1,346 $2,254 101-7220-04 PERS Retirement-Normal Cost $19,229 $21,210 $21,069 $20,926 101-7221-04 PERS Retirement - Unfunded Liability $23,935 $26,406 $24,401 $28,186 101-7231-04 Workers' Compensation $6,114 $8,914 $10,123 $10,853 101-7232-04 Unemployment Compensation $316 $353 $0 $0
101-7233-04 FICA Taxes $2,513 $3,015 $3,081 $3,934
Subtotal: $ 245,931 $ 293,119 $ 276,507 $ 313,883
101-7241-04 Auto Allowance/Mileage $3,397 $4,140 $4,140 $4,140 101-7246-04 Benefit Insurance $24,353 $42,314 $32,175 $42,285 101-7311-04 General Supplies $0 $0 $308 $500
101-7323-04 Books/Periodicals $0 $200 $200 $200
101-7324-04 Dues and Subscriptions $0 $1,800 $2,500 $13,500 101-7332-04 Telecommunications $675 $700 $700 $700
101-7371-04 Travel $0 $500 $1,000 $2,000
101-7372-04 Conferences/Meetings $652 $1,500 $750 $500
101-7373-04 Education & Training $0 $2,000 $250 $3,000
101-7380-04 Recording Fees $0 $4,000 $4,000 $500
101-7384-04 Legal Notices $1,171 $2,000 $2,000 $2,000
101-7411-04 Legal Services Retainer $9,181 $24,444 $20,000 $26,296 101-7413-04 Legal Services $13,816 $5,000 $5,000 $5,000 101-7419-04 Other Professional Services $0 $0 $2,000 $5,000 Subtotal: $ 53,245 $ 88,598 $ 75,024 $ 105,621
Total: $ 299,175 $ 381,717 $ 351,531 $ 419,504
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 04 Community Development
Personnel Services
Operations & Maintenance
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7232-05 Unemployment Compensation $ - $ - $ 4,807 $ - 101-7247-05 OPEB Contributions (Health Plan) $ 15,768 $ 17,000 $ 17,919 $ 18,700 Subtotal: $ 15,768 $ 17,000 $ 22,726 $ 18,700
Operations & Maintenance
101-7301-05 Recruitment/Pre-employment $ 21,460 $ 5,000 $ 4,234 $ 5,000 101-7312-05 Office Supplies/Expense $ 11,303 $ 8,000 $ 3,869 $ 8,000 101-7314-05 Postage $ 3,395 $ 4,500 $ 1,503 $ 4,500
101-7321-05 Printing and Binding $ 1,469 $ 1,500 $ 768 $ 1,000 101-7331-05 Rentals/Leases $ 10,001 $ 17,591 $ 17,591 $ 17,000 101-7332-05 Telecommunications $ 5,155 $ 4,700 $ 5,398 $ 5,500 101-7351-05 Insurance Premiums $ 150,410 $ 199,172 $ 199,172 $ 247,022 101-7364-05 Employee Recognition $ 1,514 $ 1,500 $ 850 $ 1,000 101-7381-05 Property Tax Admin. Costs $ 8,748 $ 9,319 $ 140 $ 9,505 101-7413-05 Legal Services $ - $ - $ - $ -
101-7415-05 Computer/IT Services $ - $ - $ - $ -
101-7417-05 Janitorial Service $ - $ - $ - $ -
101-7419-05 Other Professional Services $ 23,360 $ 13,954 $ 16,853 $ 15,000 101-7420-05 Merchant Fees $ 13,879 $ 16,649 $ 5,986 $ 10,000 101-7487-05 Lease Principal & Interest $ 11,084 $ - $ - $ - Subtotal: $ 261,779 $ 281,885 $ 256,365 $ 323,527
Total: $ 277,547 $ 298,885 $ 279,091 $ 342,227
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 05 General Services
Personnel Services
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111- Regular Salaries $ 1,167,113 $ 1,250,688 $ 1,010,912 $ 1,315,042 101-7113- Overtime $ 200,043 $ 100,000 $ 140,000 $ 140,000 101-7116- Part-time Salaries $ 2,801 $ 6,125 $ - $ -
101-7218- Long/Short Term Disability Insurance $ 8,961 $ 11,381 $ 6,747 $ 11,178 101-7219- Deferred Compensation Retirement $ 2,326 $ 2,700 $ 2,700 $ 2,700 101-7220- PERS Retirement-Normal Cost $ 160,495 $ 158,116 $ 149,114 $ 193,565 101-7221- PERS Retirement - Unfunded Liability $ 235,850 $ 289,629 $ 287,006 $ 250,537 101-7231- Workers' Compensation $ 37,182 $ 48,948 $ 61,263 $ 53,828 101-7232- Unemployment Compensation $ 2,036 $ 1,808 $ - $ - 101-7233-06 FICA Taxes $ 19,498 $ 16,555 $ 16,555 $ 17,298 Subtotal: $ 1,836,306 $ 1,885,949 $ 1,674,297 $ 1,984,148 101-7241- Auto Allowance/Mileage $ 4,135 $ 4,800 $ 4,800 $ 4,800 101-7242- Uniform Allowance $ 11,400 $ 12,000 $ 5,400 $ 12,000 101-7246- Benefit Insurance $ 148,373 $ 152,054 $ 159,908 $ 174,800 101-7301- Recruitment/Pre-employment $ 11,626 $ 5,150 $ 3,605 $ 5,000 101-7311- General Supplies $ 29,867 $ 17,000 $ 10,144 $ 17,000 101-7312- Office Supplies/Expense $ 4,889 $ 5,000 $ 5,000 $ 5,000 101-7314- Postage $ 478 $ 500 $ 300 $ 300
101-7321- Printing and Binding $ - $ 100 $ 236 $ 250
101-7323- Books/Periodicals $ 225 $ 250 $ - $ -
101-7324- Dues and Subscriptions $ 11,207 $ 10,506 $ 10,543 $ 11,000 101-7325- EBRCSA System Subscription $ 10,620 $ 11,000 $ 12,240 $ 12,500 101-7331- Rentals/Leases (Trfr from Rainy Day fund) $ 1,010 $ 33,525 $ 1,796 $ 10,000 101-7332- Telecommunications $ 13,731 $ 15,000 $ 10,000 $ 10,000 101-7342- Machinery/Equipment Maintenanc $ 314 $ 500 $ 594 $ 500 101-7343- Vehicle Maintenance $ 15,401 $ 30,000 $ 30,000 $ 30,000 101-7344- Vehicles: Gas, Oil & Supplies $ 36,993 $ 41,200 $ 34,090 $ 41,200 101-7345- Office Equip-Maint/Repairs $ 1,470 $ 3,200 $ - $ 3,200 101-7363- Business Meeting Expense $ 826 $ 206 $ - $ 200 101-7364- Employee Recognition $ - $ 206 $ - $ 200
101-7371- Travel $ - $ - $ 259 $ -
101-7372- Conferences/Meetings $ - $ - $ 1,250 $ -
101-7373- Education & Training $ 7,447 $ 10,000 $ 10,482 $ 10,000 101-7389- Misc. Expense $ 247 $ - $ - $ -
101-7408- Crossing guard services $ 31,932 $ 29,400 $ 40,790 $ 55,129 101-7411- Legal Services Retainer $ 8,416 $ 12,222 $ 2,726 $ 13,148 101-7413- Legal Services $ 11,089 $ 5,000 $ 5,145 $ -
101-7417- Janitorial Service $ 2,925 $ 3,090 $ 3,090 $ 3,500 101-7419- Other Professional Services $ 3,075 $ 1,600 $ 2,526 $ 1,600 101-7424- Dispatch Services $ 307,678 $ 323,143 $ 323,143 $ 339,300 General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 06 Police
Personnel Services
Operations & Maintenance
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 06 Police
101-7425- Crime Lab $ 13,892 $ 14,000 $ 3,720 $ 14,000
101-7427- CAL ID $ 13,000 $ 13,000 $ - $ 13,000
101-7429- Animal/Pest Control Services $ 76,978 $ 89,807 $ 89,807 $ 98,961 101-7433- Integrated Justice System $ 8,770 $ 9,209 $ 10,936 $ 11,000 101-7438- Parking Enforcement-Regency Drive $ - $ - $ - $ - 101-7485- Capital Outlay - Machinery, Vehicles & Equipment $ 22,168 $ - $ - $ - 101-7486- CERF Charges $ 60,000 $ - $ - $ -
Subtotal: $ 870,183 $ 852,668 $ 782,530 $ 897,588
Total: $ 2,706,489 $ 2,738,617 $ 2,456,826 $ 2,881,736
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111-07 Regular Salaries $2,422 $8,007 $4,511 $6,914 101-7113-07 Overtime $0 $0 $0 $0
101-7218-07 Long/Short Term Disability Insurance $19 $80 $29 $65 101-7220-07 PERS Retirement-Normal Cost $225 $750 $265 $536 101-7221-07 PERS Retirement - Unfunded Liability $328 $975 $901 $1,041 101-7231-07 Workers' Compensation $243 $342 $403 $315
101-7232-07 Unemployment Compensation $19 $18 $0 $0
101-7233-07 FICA Taxes $35 $118 $67 $101
Subtotal: $ 3,292 $ 10,290 $ 6,176 $ 8,972
101-7246-07 Benefit Insurance $ 448 $ 2,943 $ 432 $ 1,256 101-7311-07 General Supplies $ - $ - $ - $ -
101-7332-07 Telecommunications $ 3,600 $ 2,700 $ 2,700 $ 2,700 101-7335-07 Gas & Electricity $ 54,078 $ 63,800 $ 63,800 $ 65,000 101-7338-07 Water Services $ 2,591 $ 2,415 $ 2,415 $ 2,415 101-7341-07 Buildings/Grounds Maintenance $ 10,399 $ 10,150 $ 15,000 $ 15,000 101-7343-07 Vehicle Maintenance $ 466 $ 450 $ 450 $ 450 101-7344-07 Vehicles: Gas, Oil & Supplies $ 158 $ 500 $ 500 $ 500 101-7346-07 HVAC Mtn & Repairs $ 4,300 $ 8,755 $ 33,629 $ 10,000 101-7417-07 Janitorial Service $ 25,495 $ 23,394 $ 23,394 $ 24,000 101-7423-07 Library Additional Hours $ - $ - $ - $ -
101-7429-07 Animal/Pest Control Services $ 1,688 $ 1,846 $ 1,846 $ 1,800 101-7435-07 Contract Seasonal Labor $ 1,351 $ 2,060 $ 3,097 $ 2,000 101-7440-07 Tree Trimming Services $ - $ 1,800 $ 4,000 $ 3,000 Subtotal: $ 104,573 $ 120,813 $ 151,262 $ 128,121
Total: $ 107,865 $ 131,104 $ 157,438 $ 137,093
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 07 Library
Personnel Services
Operations & Maintenance
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7324-08 Dues and Subscriptions $ 3,127 $ 3,300 $ 304 $ 3,000 101-7410-08 Professional Engineering Services $ 145,147 $ 156,000 $ 156,000 $ 151,200 101-7411-08 Legal Services Retainer $ 12,488 $ 7,333 $ 5,157 $ 7,889 101-7412-08 Engineering Inspection Service $ - $ 515 $ - $ - 101-7413-08 Legal Services $ - $ - $ - $ -
101-7419-08 Other Professional Services $ - $ - $ - $ - Total: $ 160,762 $ 167,148 $ 161,462 $ 162,089
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 08 Engineering Department
Personnel Services
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
101-7111-09 Regular Salaries $35,871 $52,042 $29,312 $54,483 101-7112-09 Temporary Salaries $0 $4,097 $0 $0
101-7113-09 Overtime $1,076 $2,060 $3,327 $2,000
101-7218-09 Long/Short Term Disability Insurance $288 $519 $172 $515 101-7220-09 PERS Retirement-Normal Cost $3,423 $4,620 $1,606 $4,627 101-7221-09 PERS Retirement - Unfunded Liability $5,055 $5,343 $4,937 $5,703 101-7231-09 Workers' Compensation $2,017 $2,226 $3,212 $2,749 101-7232-09 Unemployment Compensation $336 $115 $0 $0
101-7233-09 FICA Taxes $623 $1,172 $542 $797
Subtotal: $ 48,690 $ 72,195 $ 43,108 $ 70,873
101-7246-09 Benefit Insurance $ 7,479 $ 17,783 $ 3,033 $ 10,895 101-7307-09 Irrigation Supplies and Materials $ 3,612 $ 5,150 $ 6,500 $ 6,500 101-7311-09 General Supplies $ 1,154 $ 9,579 $ 509 $ 5,000 101-7335-09 Gas & Electricity $ 2,700 $ 3,080 $ 3,080 $ 3,000 101-7338-09 Water Services $ 98,000 $ 110,000 $ 125,000 $ 100,000 101-7341-09 Buildings/Grounds Maintenance $ 11,058 $ 10,000 $ 2,647 $ 2,000 101-7342-09 Machinery/Equipment Maintenanc $ 543 $ 5,000 $ 2,000 $ 2,000 101-7343-09 Vehicle Maintenance $ 5,609 $ 3,800 $ 3,800 $ 4,000 101-7344-09 Vehicles: Gas, Oil & Supplies $ 2,372 $ 3,605 $ 3,605 $ 3,000 101-7417-09 Janitorial Service $ 14,278 $ 13,200 $ 13,200 $ 13,000 101-7419-09 Other Professional Services $ - $ - $ 55 $ - 101-7429-09 Animal/Pest Control Services $ 9,917 $ 740 $ 1,043 $ 1,000 101-7435-09 Contract Seasonal Labor $ 11,315 $ 11,000 $ 11,000 $ 11,000 101-7440-09 Tree Trimming Services $ 12,000 $ 12,360 $ 12,360 $ 13,000 Subtotal: $ 180,037 $ 205,297 $ 187,832 $ 174,395
Total: $ 228,727 $ 277,492 $ 230,939 $ 245,269
General Fund (101)

APPROPRIATION DETAIL
Budget Unit: 09 Clayton Community Park
Personnel Services
Operations & Maintenance
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
111-5601-00 Interest $ - $ - $ - $ -
111-5606-00 Unrealized Inv. Gain/Loss $ - $ - $ - $ -
111-6019-00 Transfer From Grant Fund $ 1,467,024 $ 1,467,024 $ 1,467,024 $ - Total: $ 1,467,024 $ 1,467,024 $ 1,467,024 $ -
110-7382-00 Election Services $ - $ - $ 12,510 $ -
110-7408-00 Crossing guard services $ - $ - $ - $ -
110-7419-00 Other Professional Services $ 26,000 $ - $ 31,218 $ - 110-8101-00 Transfer To General Fund $ - $ 33,525 $ 33,525 $ - 110-8111-00 Transfer to CIP Fund $ - $ - $ - $ -
110-7111-02 Regular Salaries $ - $ - $ -
110-7417-05 Janitorial Service $ - $ - $ - $ -
110-7486-06 CERF Charges $ - $ - $ - $ -
Total: $ 26,000 $ 33,525 $ 77,253 $ -
Expenses
Rainy Day Fund (110)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
111-5601-00 Interest $0 $0 $0 $0
111-5606-00 Unrealized Inv. Gain/Loss $0 $0 $0 $0
111-6019-00 Transfer From Grant Fund $1,467,024 $1,467,024 $1,467,024 $0 Total: $1,467,024 $1,467,024 $1,467,024 $0
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
111-7111-00 Regular Salaries $247,082 $90,608 $48,027 $0 111-7220-00 PERS Retirement $0 $8,000 $0 $0
111-7232-00 Unemployment Compensation $0 $0 $0 $0
111-7233-00 FICA Taxes $0 $17,042 $0 $0
111-7246-00 Benefit Insurance $0 $19,698 $0 $0
111-7311-00 General Supplies $3,683 $0 $0 $0
111-7312-00 Office Supplies/Expense $0 $0 $0 $0
111-7324-00 Dues and Subscriptions $0 $0 $0 $0
111-7415-00 Computer/IT Support $42,052 $35,000 $0 $0
111-7419-00 Other Professional Services $41,744 $35,000 $35,000 $0 111-7520-00 Project Expenses $800,000 $136,090 $16,820 $0 111-8101-00 Transfer To General Fund $37,139 $0 $0 $0
111-8102-00 Transfer to CERF $70,000 $0 $0 $0
111-8103-00 Transfer to Street Lighting $20,403 $0 $0 $0 Total: $1,262,103 $341,438 $99,847 $0
Expenses
Pandemic Reserve Fund (111)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
201-4101-00Property Taxes - Secured $40,878 $0 $41,000 $41,000 201-4102-00Property Taxes - Unsecured $1,314 $0 $1,389 $1,400 201-4103-00Property Taxes - Unitary Tax $553 $0 $525 $550 201-4104-00Property Taxes - Supplemental $1,603 $0 $1,000 $1,000 201-4106-00Property Taxes - Other $285 $0 $285 $300
201-5209-00State Gasoline 2105 $62,420 $72,699 $73,000 $73,000 201-5210-00State Gasoline 2106 $42,992 $48,025 $50,000 $50,000 201-5211-00State Gasoline 2107 $74,613 $99,319 $100,000 $100,000 201-5212-00State Gasoline 2107.5 $3,000 $3,000 $3,000 $3,000 201-5216-00State Gasoline 2103 $88,965 $110,978 $115,000 $115,000 201-5219-00State Gasoline Loan Repayments $0 $0 $0 $0
201-5601-00 Interest $1,585 $0 $0 $0
201-5606-00Unrealized Inv. Gain/Loss ($5,735) $0 $0 $0
201-5790-00Other Revenues $0 $0 $0 $0
Total: $ 312,474 $ 334,021 $ 385,199 $ 385,250
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
201-7111-00Regular Salaries 5,448 11,949 11,949 13,413
201-7112-00Temporary Salaries - 500 500 500
201-7113-00Overtime - - 305
201-7218-00 Long/Short Term Disability Insurance 47 118 8 127 201-7220-00PERS Retirement-Normal Cost 544 991 75 1,146 201-7221-00PERS Retirement - Unfunded Liability 821 2,462 2,462 2,107 201-7231-00Workers' Compensation 640 511 815 612
201-7232-00Unemployment Compensation 73 24 24 -
201-7233-00FICA Taxes 79 326 326 197
201-7246-00Benefit Insurance 1,296 5,044 5,044 2,698
201-7311-00General Supplies 43 1,000 1,000 1,000
201-7324-00Dues and Subscriptions 7,847 - - -
201-7326-00Pavement Repair Supplies 351 1,000 5,050 5,000 201-7327-00Arterial Street Light Supplies - 1,000 1,000 1,000 201-7335-00Gas & Electricity 51,273 48,000 48,000 50,000 201-7340-00Traffic Safety Supplies 16,732 9,000 9,000 10,000 201-7342-00 Machinery/Equipment Maintenance - - - 500
201-7343-00Vehicle Maintenance 842 1,000 1,000 1,000
201-7344-00Vehicles: Gas, Oil & Supplies 375 1,000 1,000 1,000 Expenses
State Gas Tax (Fund 201)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
State Gas Tax (Fund 201)
201-7349-00Traffic Signal Maintenance 31,148 35,000 35,000 40,000 201-7350-00Pavement Repairs/Maintenance - 30,000 30,000 75,000 201-7381-00Property Tax Admin. Costs 312 400 400 400
201-7419-00Other Professional Services 3,000 35,000 35,000 40,000 201-7435-00Contract Seasonal Labor - - -
201-7450-00Street Light Maintenance 120 4,000 5,994 5,000 201-7485-00Capital Outlay - Machinery, Vehicles & Equipment - - - 201-7486-00CERF Charges 4,500 4,500 4,500 4,500
201-8101-00Transfer To General Fund 8,460 8,883
Tranfer to Streetlight Fund - Fund 214 50,000
Transfer to Storm Water Fund - Fund 216 32,000
201-8111-00Transfer to CIP Fund 630,549 58,000
Total: $ 764,500 $ 259,708 $ 198,452 $ 337,199
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
202-5218-00 State Gasoline 2030 (RMRA) $225,214 $256,850 $225,000 $235,000 202-5601-00 Interest $8,704 $4,200 $0 $0
202-5606-00 Unrealized Inv. Gain/Loss -$12,656 $0 $0 $0 Transfer from CIP Fund $0 $0 $584,883 $0
Total: $221,262 $261,050 $809,883 $235,000
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
202-8111-00 Transfer to CIP Fund 584,883 143,000 584,883 Transfer to Streetlight Fund
CIP Project 2024 Paving #10456
Total: 584,883 143,000 584,883 $0
Expenses
Road Maintenance Rehab. Act Fund (202)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
210-4604-00 LMD Special Parcel Tax $1,204,882 $1,241,053 $1,245,576 $1,278,285 210-5601-00 Interest $7,560 $15,000
210-5606-00 Unrealized Inv. Gain/Loss ($31,943) $0
210-5702-00 Donations/Contributions $0 $0
Total: $1,180,500 $1,256,053 $1,245,576 $1,278,285
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
210-7111-00 Regular Salaries $ 264,082 $ 238,989 $ 277,484 $ 257,302 210-7112-00 Temporary Salaries $ - $ - $ -
210-7113-00 Overtime $ 1,440 $ 2,000 $ 6,380 $ 2,000
210-7218-00 Long/Short Term Disability Insurance $ 2,106 $ 4,254 $ 1,933 $ 2,542 210-7220-00 PERS Retirement-Normal Cost $ 25,313 $ 23,439 $ 18,096 $ 23,601 210-7221-00 PERS Retirement - Unfunded Liability $ 36,903 $ 33,031 $ 30,523 $ 42,142 210-7231-00 Workers' Compensation $ 8,677 $ 10,223 $ 13,814 $ 11,581 210-7232-00 Unemployment Compensation $ 1,626 $ 529 $ - $ - 210-7233-00 FICA Taxes $ 3,849 $ 3,815 $ 4,162 $ 3,933
210-7246-00 Benefit Insurance $ 52,638 $ 47,291 $ 36,027 $ 53,946 210-7301-00 Recruitment/Pre-employment $ - $ 250 $ - $ 250 210-7306-00 Trail Fixture Repairs/Replacement $ - $ 290,000 $ 25,000 210-7307-00 Irrigation Supplies and Materials $ 7,645 $ 10,000 $ 10,000 $ 10,000 210-7308-00 Weed Abatement Supplies and Materials $ 9,609 $ 15,000 $ 10,000 $ 10,000 210-7309-00 Plant Nutrition Supplies and Materials $ 398 $ 12,500 $ 12,500 $ 10,000 210-7311-00 General Supplies $ 3,874 $ 4,500 $ 4,000 $ 4,000 210-7316-00 Landscape Replacement Plants (Shrubs, Trees, Etc.)$ - $ - $ - $ 30,000 210-7335-00 Gas & Electric Services $ 26,342 $ 30,000 $ 30,000 $ 30,000 210-7338-00 Water Services $ 240,648 $ 230,000 $ 230,000 $ 200,000 210-7340-00 Traffic Safety Supplies $ 1,159 $ 1,000 $ 500 $ 1,000 210-7341-00 Buildings/Grounds Maintenance $ 19,046 $ 26,200 $ 27,737 $ 20,000 210-7342-00 Machinery/Equipment Maintenanc $ 24,321 $ 26,550 $ 26,550 $ 20,000 210-7343-00 Vehicle Maintenance $ 37,771 $ 20,000 $ 20,000 $ 20,000 210-7344-00 Vehicle Gas, Oil, and Supplies $ 17,418 $ 14,000 $ 16,000 $ 20,000 210-7381-00 Property Tax Admin. Costs $ 3,743 $ 4,100 $ 4,100 $ 4,500 210-7389-00 Misc. Expense $ - $ - $ - $ -
210-7419-00 Other Professional Services $ 6,174 $ 37,500 $ 37,500 $ 25,000 210-7429-00 Animal/Pest Control Services $ 13,025 $ 51,000 $ 51,000 $ 51,000 210-7435-00 Contract Seasonal Labor $ 125,764 $ 125,000 $ 160,000 $ 140,000 210-7440-00 Tree Trimming Services $ 326,340 $ 200,000 $ 236,944 $ 125,000 210-7445-00 Weed Abatement Services $ 131,682 $ 212,000 $ 212,000 $ 125,000 210-7486-00 CERF Charges/Depreciation $ 30,000 $ 30,000 $ - $ 30,000 210-7520-00 Project Program Costs $ 161,367 $ 112,000 $ 10,192 $ 50,000 210-7615-00 CCC Property Tax $3,083.30 $3,030.00 $3,175.82 $3,500.00 210-8101-00 Transfer To General Fund $40,679.00 $42,713.00 $0.00 $0.00 210-8113-00 Transfer to Stormwater Fund $1,130.00 $1,164.00 $0.00 $0.00 Total: $1,627,853 $1,862,077 $1,490,617 $1,351,297
Expenses
Lighting & Maintenance District Fund (210)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
211-4613-00 Downtown Park Special Parcel Tax - O&M $ 143,775 $ 148,110 $ 148,525 $ 155,515 211-5601-00 Interest $ 4,246 $ 6,400
211-5602-00 Park Use Fee $ 4,763 $ 1,000 $ 3,805 $ 4,000 211-5606-00 Unrealized Inv. Gain/Loss $ (17,735) $ -
211-5702-00 Donations/Contributions $ 648 $ -
211-6019-00 Transfer From Grant Fund $ - $ 23,606
Total: $ 135,696 $ 179,116 $ 152,330 $ 159,515
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
211-7111-00 Regular Salaries $ 20,359 $ 27,882 $ 10,330 $ 31,299 211-7112-00 Temporary Salaries $ - $ - $ - $ -
211-7113-00 Overtime $ 1,370 $ - $ 3,552 $ -
211-7218-00 Long/Short Term Disability Insurance $ 164 $ 274 $ 92 $ 297 211-7220-00 PERS Retirement-Normal Cost $ 1,947 $ 2,487 $ 869 $ 2,673 211-7221-00 PERS Retirement - Unfunded Liability $ 2,883 $ 3,762 $ 4,345 $ 4,917 211-7231-00 Workers' Compensation $ 873 $ 1,193 $ 1,390 $ 1,428 211-7232-00 Unemployment Compensation $ 299 $ 62 $ - $ - 211-7233-00 FICA Taxes $ 299 $ - $ 157 $ 459
211-7246-00 Benefit Insurance $ 4,307 $ 9,458 $ 1,998 $ 6,295 211-7311-00 General Supplies $ 1,386 $ 2,800 $ - $ 2,800 211-7331-00 Rentals/leases $ 707 $ 1,500 $ 1,500 $ 3,000 211-7332-00 Telecommunications $ 666 $ 1,500 $ 2,000 $ 2,000 211-7335-00 Gas & Electric Services $ 1,775 $ 1,800 $ 1,800 $ 1,800 211-7338-00 Water Services $ 19,053 $ 20,000 $ 20,000 $ 20,000 211-7341-00 Buildings/Grounds Maintenance $ 16,251 $ 10,000 $ 10,000 $ 10,000 211-7342-00 Machinery/Equipt Maintenance $ - $ 500 $ 500 $ 500 211-7343-00 Vehicle Maintenance $ 3,152 $ 2,400 $ 1,000 $ 1,000 211-7344-00 Vehicle Gas, Oil and Supplies $ 1,349 $ 1,500 $ 15,000 $ 15,000 211-7381-00 Property Tax Admin. Costs $ 3,740 $ 4,000 $ 4,000 $ 4,000 211-7417-00 Janitorial Services $ 16,032 $ 1,500 $ 11,528 $ 10,000 211-7419-00 Other Professional Services $ 5,041 $ 5,275 $ 10,410 $ 10,000 211-7429-00 Animal/Pest Control Services $ 67 $ 750 $ 750 $ 750 211-7435-00 Contract Seasonal Labor $ 8,146 $ 12,500 $ 12,500 $ 12,500 211-7440-00 Tree Trimming Services $ 16,020 $ 15,000 $ 15,000 $ 15,000 211-7484-00 Capital Outlay - Structures and Improvements $ 11,670 $ 15,000 $ 7,573 $ 15,000 211-7485-00 Capital Outlay - Machinery, Vehicles & Equipment$ 28,653 $ - $ - $ - 211-7486-00 CERF Charges/Depreciation $ 2,700 $ 3,000 $ - $ 3,000 211-7615-00 CCC Property Tax $ 549 $ 560 $ 565 $ 600
211-8101-00 Transfer To General Fund $ 8,273 $ 8,687 $ - $ - Total: $177,731 $153,389 $136,858 $174,317
Expenses
Grove Park Comm. Facilities District (211)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
212-4606-00 Oakhurst GHAD Assessment $44,814 $47,108 $47,108 $49,500 212-5601-00 Interest $653 $210
212-5606-00 Unrealized Inv. Gain/Loss ($2,935) $0
212-6020-00 Trx from Presley Settlement $20,084 $40,478 $40,478 $49,991 Total: $ 62,615 $ 87,796 $ 87,586 $ 99,491
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
212-7111-00 Regular Salaries $0 $0 $151 $0
212-7314-00 Postage $861 $850 $0 $800
212-7351-00 Liability Insurance $5,944 $7,000 $7,000 $7,500 212-7381-00 Property Tax Admin. Costs $1,038 $1,550 $1,100 $1,200 212-7384-00 Legal Notices $0 $100 $0 $100
212-7389-00 Misc. Expense $0 $300 $0 $300
212-7411-00 Legal Services Retainer $0 $0 $0 $0
212-7412-00 Engineering/Inspection Service $1,970 $25,000 $67,000 $25,000 212-7413-00 Special Legal Services $0 $1,000 $1,000 $1,000 212-7520-00 Project Costs $0 $95,000 $53,017 $58,000
212-7419-00 Other Professional Services $0 $25,000
212-7445-00 Weed Abatement Services $0 $0 $15,000
212-8101-00 Transfer To General Fund $8,160 $8,169
Total: $17,972 $138,969 $129,268 $133,900
Expenses
Oakhurst GHAD (212)

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
213-5601-00 Interest $ 933 $ 1,000 $ - $ -
213-5606-00 Unrealized Inv. Gain/Loss $ (3,852) $ -
Total: $ (2,919) $ 1,000 $ - $ -
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
212-7111-00 Regular Salaries $ - $ - $ 151 $ -
212-7314-00 Postage $ 861 $ 850 $ - $ 800
212-7351-00 Liability Insurance $ 5,944 $ 7,000 $ 7,000 $ 7,500 212-7381-00 Property Tax Admin. Costs $ 1,038 $ 1,550 $ 1,100 $ 1,200 212-7384-00 Legal Notices $ - $ 100 $ - $ 100
212-7389-00 Misc. Expense $ - $ 300 $ - $ 300
212-7411-00 Legal Services Retainer $ - $ - $ - $ -
212-7412-00 Engineering/Inspection Service $ 1,970 $ 25,000 $ 67,000 $ 25,000 212-7413-00 Special Legal Services $ - $ 1,000 $ 1,000 $ 1,000 212-7520-00 Project Costs $ - $ 95,000 $ 53,017 $ 58,000 212-7419-00 Other Professional Services $ - $ 25,000
212-7445-00 Weed Abatement Services $ - $ - $ 15,000
212-8101-00 Transfer To General Fund $ 8,160 $ 8,169
Total: $ 17,972 $ 138,969 $ 129,268 $ 133,900
Expenses
Presley Fund 213

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
214-4607-00 Neighborhood Street Light Assessment $ 125,991 $ 126,122 $ 126,122 $ 126,500 214-5601-00 Interest $ 296 $ 200
214-5606-00 Unrealized Inv. Gain/Loss $ (1,340) $ -
214-6002-00 Transfer From Gas Tax Fund ( Fund 201) $ - $ 20,403 $ 20,403 $ 50,000 Total: $ 124,947 $ 146,725 $ 146,525 $ 176,500
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
214-7111-00 Regular Salaries $ - $ - $ - $ -
214-7113-00 Overtime $ 104 $ - $ 824 $ -
214-7311-00 General Supplies $ - $ - $ - $ -
214-7335-00 Gas & Electric Services $ 116,587 $ 135,000 $ 141,000 $ 145,000 214-7381-00 Property Tax Admin. Costs $ 3,680 $ 5,000 $ 3,680 $ 3,700 214-7412-00 Engineering/Inspection Service $ 2,450 $ - $ 3,545 $ 6,240 214-7419-00 Other Professional Services $ - $ - $ - $ - 214-7450-00 Street Light Maintenance $ 16,669 $ 17,000 $ 12,728 $ 15,000 214-8101-00 Transfer To General Fund $ 13,006 $ 13,006 $ 13,006 $ - Total: $ 152,495 $ 170,006 $ 174,783 $ 169,940
Expenses
Street Lighting Fund 214

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
216-4602-00 Stormwater Assessment $ 83,017 $ - $ 76,433 $ 77,017 216-4603-00 Stormwater O&M Annual Fee $ - $ -
216-5324-00 Street Sweeping Fees $ 59,423 $ 59,200 $ 59,708 $ 59,708 216-5601-00 Interest $ 196 $ 600
216-5606-00 Unrealized Inv. Gain/Loss $ (1,115) $ -
216-6007-00 Trx. From Gas Tax Fund $ 1,130 $ 1,130 $ 1,164 $ 32,000 Total: $ 142,650 $ 60,930 $ 137,305 $ 168,725
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
216-7111-00 Regular Salaries $ 2,246 $ 27,882 $ 41,459 $ 31,299 216-7112-00 Temporary Salaries $ - $ - $ - $ -
216-7113-00 Overtime $ - $ - $ 869 $ -
216-7218-00 Long/Short Term Disability Insurance $ 18 $ 274 $ 77 $ 297 216-7220-00 PERS Retirement-Normal Cost $ 221 $ 2,359 $ 706 $ 2,673 216-7221-00 PERS Retirement - Unfunded Liability $ 311 $ 5,016 $ 4,635 $ 4,917 216-7231-00 Workers' Compensation $ 898 $ 1,193 $ 1,429 $ 1,428 216-7232-00 Unemployment Compensation $ 192 $ 62 $ - $ - 216-7233-00 FICA Taxes $ 32 $ - $ 381 $ 459
216-7246-00 Benefit Insurance $ 367 $ 10,822 $ 990 $ 6,295 216-7311-00 General Supplies $ 3,368 $ 2,500 $ 2,500 $ 1,000 216-7341-00 Buildings/Grounds Maintenance $ - $ 1,200 $ 2,000 $ 2,000 216-7343-00 Vehicle Maintenance $ 355 $ 1,000 $ 1,000 $ 1,000 216-7344-00 Vehicles: Gas, Oil & Supplies $ 151 $ 1,000 $ 1,000 $ 1,000 216-7409-00 Street Sweeping $ 54,000 $ 57,200 $ 57,200 $ 60,000 216-7412-00 Engineering Services $ - $ 2,000 $ 10,000 $ 20,000 216-7419-00 Other Professional Services $ - $ 1,720 $ - $ 25,000 216-7435-00 Contract Seasonal Labor $ 2,752 $ 6,000 $ 6,000 $ 6,000 216-7481-00 State Regional Annual Discharge Fee $ 10,602 $ 11,000 $ 14,055 $ 15,000 216-7486-00 CERF Charges/Depreciation $ 4,700 $ 4,700 $ 4,700 $ 4,800 216-7520-00 Project/Program Costs - Outreach $ - $ 300 $ 300 $ 500 216-8101-00 Transfer To General Fund $ 41,966 $ 41,966 $ 41,966 $ - Total: $ 122,178 $ 178,193 $ 191,267 $ 183,667
Expenses
Stormwater Fund 216

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
217-4611-00 High Street Bridge Assessment $ 1,754 $ 1,754 $ 1,754 $ 1,754 217-5601-00 Interest $ 50 $ 90
217-5606-00 Unrealized Inv Gain/Loss $ (294) $ -
Total: $ 1,510 $ 1,844 $ 1,754 $ 1,754
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
217-7412-00 Engineering/Inspection Service $ 350 $ - $ 165 $ - 217-7611-00 Principal (RDA Successor Agency) $ 915 $ 915 $ 970 $ 1,028 217-7612-00 Interest Expense $ 539 $ 539 $ 484 $ 426
Total: $ 1,804 $ 1,454 $ 1,619 $ 1,454
Expenses
Highstreet Bridge Fund 217

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
218-4611-00Oak Street Bridge Assessment $ 1,760 $ 1,760 $ 1,760 $ 1,760 218-5601-00 Interest $ 205 $ 100
218-5606-00Unrealied Inv. Gain/Loss $ (868) $ -
Total: $ 1,098 $ 1,860 $ 1,760 $ 1,760
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
218-7381-00Property Tax Admin. Costs $ 258 $ 258 $ 142 $ 260 218-7412-00Engineering/Inspection Service $ 350 $ - $ 165 $ 165 218-7420-00Administrative Costs $ - $ -
218-7611-00Principal $ - $ - $ - $ -
218-7612-00 Interest Expense $ - $ - $ - $ -
Total: $ 608 $ 258 $ 307 $ 425
Expenses
Oak Street Bridge Fund 218

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
219-5601-00 Interest $ 249 $ - $ - $ -
219-5606-00 Unrealized Inv. Gain/Loss $ (8) $ -
219-6001-00 Transfer From General Fund $ - $ -
Total: $ 241 $ - $ - $ -
Stormwater Assessment Fund 219

RECEIPTS DETAIL
Revenues
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
220-5223-00 Measure J Funds (Local Streets) $ 306,715 $ 334,140 $ 44,218 $ 45,000 220-5225-00 Measure J Program 28a (Co-op) $ 68,170 $ 29,680 $ 37,663 $ 35,000 220-5601-00 Interest $ 70 $ 900
220-5606-00 Unrealized Inv. Gain/Loss $ (1,051) $ -
Total: $ 373,904 $ 364,720 $ 81,881 $ 80,000
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
220-7324-00 Dues and Subscriptions $ 1,199 $ 2,000 $ 1,200 $ - 220-7385-00 TRANSPAC Fees $ 27,150 $ 30,000 $ 30,372 $ 33,000 220-8101-00 Transfer To General Fund $ 5,076 $ 5,330
220-8111-00 Transfer to CIP Fund $ 417,178 $ -
Total: $ 450,603 $ 37,330 $ 31,572 $ 33,000
Expenses
Measure J Fund 220

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
222-4612-00 Lydia Lane Sewer Assessment $ 25,214 $ 18,498 $ 18,498 $ 17,937 222-5601-00 Interest $ 638 $ 100
222-5606-00 Unrealized Inv. Gain/Loss $ (2,769) $ -
Total: $ 23,082 $ 18,598 $ 18,498 $ 17,937
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
222-7381-00 Property Tax Admin. Costs $ 264 $ 264 $ 264 $ 264 222-7412-00 Engineering/Inspection Service $ 350 $ - $ 165 $ - 222-7419-00 Other Professional Services $ 220 $ 1,000 $ - 222-7420-00 Other Outside Services $ 2,400 $ 2,400 $ -
222-7611-00 Principal $ 10,000 $ 10,000 $ 10,000 $ 10,000 222-7612-00 Interest Expense $ 8,099 $ 6,850 $ 7,549 $ 6,800 222-7613-00 Paying Agent Fee $ 500 $ 500
Total: $ 21,833 $ 21,014 $ 17,978 $ 17,064
Expenses
Lydia Lane Sewer Fund 222

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
223-4612-00 Oak Street Sewer Assessment $ 11,309 $ - $ 11,309 $ 11,655 223-5601-00 Interest $ 30 $ -
223-5606-00 Unrealized Inv. Gain/Loss $ (121) $ -
Total: $ 11,218 $ - $ 11,309 $ 11,655
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
223-7381-00 Property Tax Admin. Costs $ 259 $ - $ 259 $ 259 223-7412-00 Engineering/Inspection Service $ 350 $ - $ 165 $ 350 223-7420-00 Other Outside Services $ 1,241 $ - $ - $ -
223-7611-00 Principal $ 8,182 $ - $ 9,091 $ 9,091
223-7612-00 Interest Expense $ 2,695 $ - $ 1,336 $ 1,064 Total: $ 12,727 $ - $ 10,851 $ 10,763
Expenses
Oak Street Sewer Fund 223

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
230-5223-00 Measure J Funds $ - $ 300,000 $ -
230-5240-00 CalRecycle Grant $ 5,000 $ 5,000 $ 20,000 $ 5,000 230-5250-00 Public Education Government (PEG) Fees $ 13,808 $ 12,000 $ 8,555 $ 10,000 230-5260-00 Supplemental Law Enforcement Services Fund (SLESF) $ 226,556 $ 150,000 $ 165,271 $ 160,000 230-5262-00 Officer Wellness & Mental Health Grant $ - $ - $ 15,000 $ - 230-5275-00 Sewer System Management Plan Reimbursement (Concord)$ - $ - 230-5285-00 Federal Grant - FEMA $ 52,588 $ -
230-5286-00 Cares Grant $ - $ -
230-5288-00 REAP Grant - Housing Element Update $ - $ 20,000 230-5289-00 LEAP Grant - Housing Element Update $ - $ 65,000 230-5290-00 SB2 Grant - ADU $ - $ 160,000
230-5291-00 Prop 68 - Per Capita $ - $ 378,074
230-5292-00 Prop 68 - RIRE $ - $ 250,000
230-5601-00 Interest $ 4,712 $ -
230-5606-00 Unrealized Inv. Gain/Loss $ (8,736) $ -
230-6023-00 Transfer from Dev Impact Fund $ - $ -
Total: $ 293,928 $ 1,340,074 $ 208,826 $ 175,000
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
230-7111-00 Regular Salaries $ 78,384 $ 78,913 $ 81,240 $ 93,294 230-7113-00 Overtime $ 567 $ 25,000 $ - $ -
230-7218-00 Long/Short Term Disability Insurance $ 104 $ 579 $ - $ 833 230-7220-00 PERS Retirement-Normal Cost $ 10,485 $ 7,337 $ 9,237 $ 12,119 230-7221-00 PERS Retirement - Unfunded Liability $ - $ 9,280 $ 8,575 $ 9,906 230-7231-00 Workers' Compensation $ 2,560 $ 2,461 $ 4,075 $ 4,009 230-7232-00 Unemployment Compensation $ - $ 103 $ - $ - 230-7233-00 FICA Taxes $ 1,294 $ 832 $ 1,199 $ 1,288
230-7242-00 Uniform Allowance $ 1,200 $ - $ 600 $ 1,200 230-7246-00 Benefit Insurance $ 18 $ 9,484 $ - $ 1,965
230-7311-00 General Supplies $ 1,335 $ - $ -
230-7312-00 Office Supplies/Expense $ - $ - $ -
230-7313-00 Small Tools and Equipment $ - $ - $ -
230-7314-00 Postage $ 107 $ - $ -
230-7324-00 Dues and Subscriptions $ 16,880 $ - $ 8,613 $ 10,000 230-7331-00 Rentals/Leases $ - $ - $ 33,525 $ -
230-7332-00 Telecommunications $ 17,714 $ 11,300 $ 9,644 $ 11,300 230-7341-00 Buildings/Grounds Maintenance $ - $ - $ - $ - 230-7411-00 Professional Services Retainer (Legal) $ - $ - $ 5,481 $ - 230-7415-00 Computer/IT Support $ 89,431 $ 55,000 $ 55,000 $ 55,000 230-7417-00 Janitorial Service $ - $ - $ -
230-7419-00 Other Professional Services $ 21,775 $ 28,242 $ 2,400 $ 25,000 230-7420-00 Administrative Costs $ 105 $ - $ -
Expenses
Restricted Grants 230

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
Restricted Grants 230
230-7422-00 PEG Grant Channel Share $ 315 $ - $ -
230-7424-00 Dispatch Services $ - $ - $ -
230-7427-00 CAL ID $ 1,559 $ - $ -
230-7484-00 Capital Outlay - Structures and Improvements $ - $ 526,468 $ - 230-7485-00 Capital Outlay - Equipment & Machinery $ 20,236 $ - $ 8,788 $ 10,000 230-7520-00 Project/Program Costs $ 13,358 $ 158,100 $ 38,338 $ 40,000 230-8101-00 Transfer To General Fund $ 5,036 $ 10,000 $ - $ - 230-8111-00 Transfer to CIP Fund $ - $ 357,000
230-8126-00 Transfer to Grove Park $ - $ 23,606
Total: $ 282,461 $ 1,303,707 $ 266,714 $ 275,914
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
231-4611-00 Diablo Estates Fiduciary Fund Assessment $ 93,711 $ 93,712 $ 93,712 $96,000 231-5601-00 Interest $ 2,123 $ 2,400 $ 2,288 $ 2,300
231-5606-00 Unrealized Inv. Gain/Loss $ (8,998) $ -
Total: $ 86,836 $ 96,112 $ 96,000 $98,300
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
231-7335-00 Gas & Electric Services $ 611 $ 650 $ 265 $ 650 231-7338-00 Water Services $ 6,019 $ 8,600 $ 7,067 $ 7,000 231-7381-00 Property Tax Admin. Costs $ 270 $ 270 $ 1,100 $ 300 231-7384-00 Legal Notices $ - $ 100 $ - $ 100
231-7412-00 Engineering/Inspection Service $ 3,787 $ - $ 1,155 $ 500 231-7419-00 Other Professional Services $ 20,893 $ 59,390 $ 17,143 $ 30,000 231-7420-00 Administrative Costs $ - $ 2,389 $ 11,118 $ 15,000 231-7440-00 Tree Trimming Services $ - $ - $ - $ -
231-7445-00 Weed Abatement Services $ 10,120 $ - $ - $ 11,000 Total: $ 41,699 $ 71,399 $ 37,848 $64,550
Expenses
Diablo Estates Fund 231

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
240-5702-00 Donations/Contributions $ - $ - $ 32,000 $ - Total: $ - $ - $ 32,000 $ -
Account Code Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
240-7111-00 Regular Salaries $ - $ - $ - $ -
240-7113-00 Overtime
240-7130-00 Concert Performer $ 43,900 $ 43,900
240-7321-00 Printing and Binding $ 3,765 $ 3,765
240-7328-00 Park Services
240-7360-00 Advertising & Promotion $ 650 $ 650
240-7363-00 Business Meeting Expense $ - $ - $ - $ -
Total: $ - $ - $ 48,315 $ 48,315
Expenses
Concerts Fund 240

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
303-5230-00 Measure J Grant $ - $ 92,000
303-5240-00 CalRecycle Grant $ - $ -
303-5281-00 Federal Grant - Local Streets & Roads Shortfall $ - $ 180,000 303-5601-00 Interest $ 17,936 $ -
303-5606-00 Unrealized Inv. Gain/Loss $ (98,922) $ -
303-5805-00 Project Revenue $ - $ 48,000
303-6001-00 Trx. From GF $ - $ -
303-6002-00 Trx. From Measure J Fund $ 417,178 $ -
303-6003-00 Trx. From CIP Fund $ 37,912 $ -
303-6004-00 Trx. From HUTA Gas Tax Fund $ 630,549 $ 58,000 303-6019-00 Transfer From Grant Fund $ - $ 85,000
303-6031-00 Transfer from RMRA Gas Tax Fund $ 584,883 $ 143,000 $ 584,883 303-6032-00 Transfer from Rainy Day Fund $ - $ -
303-6100-00 Intergovernmental Capital Contributions (Sewer) $ - $ - Total: $ 1,589,536 $ 606,000 $ 584,883 $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
303-7520-00 Project Expenses $ 2,707 $ - $ 11,289 $ -
303-7551-00 Project Costs-Planning/Design $ 53,677 $ 161,800 $ 55,000 303-7552-00 Project Costs-Construction/Execution $ 792,667 $ 1,090,487 $ 1,044,695 303-7553-00 Project Costs-Monitoring/Inspections $ - $ 110,210 $ 1,897 303-7554-00 Project Costs-Close-out/Punch List $ 20,874 $ - $ 37,854 303-8111-00 Transfer to CIP Fund $ 37,912 $ -
Total: $ 907,838 $ 1,362,497 $ 1,150,734 $ -
Expenses
Capital Improvement Fund 303

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
304-5307-00 Childcare Facility Fees $ 3,690 $ -
304-5313-00 Parkland Dedication Fees $ 46,242 $ -
304-5314-00 Off Site Improvement Fees $ 26,208 $ -
304-5317-00 Fire Protection Fees $ - $ -
304-5601-00 Interest $ 5,990 $ 4,000
304-5606-00 Unrealized Inv. Gain/Loss $ (24,963) $ -
Total: $ 57,166 $ 4,000 $ - $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
304-7520-00 Projects $ - $ - $ 8,913 $ -
304-8108-00 Transfer to Grants Fund $ - $ - $ 173,074 $ - 304-8111-00 Transfer to CIP Fund $ - $ 48,000 $ - $ -
304-8113-00 Transfer to Stormwater Fund $ - $ 173,074 $ - $ - Total: $ - $ 221,074 $ 181,987 $ -
Expenses
Clayton Development Impact Fee Fund 304

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
405-5601-00 Interest $ 5,652 $ 9,200
405-5606-00 Unrealized Inv. Gain/Loss $ (13,196) $ -
Total: $ (7,544) $ 9,200 $ - $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
405-7414-00 Audit & Financial Reporting Services $ 3,250 $ - $ - $ - 405-7482-00 Capital Contribution $ - $ 80,000 $ 30,190 $ - Total: $ 3,250 $ 80,000 $ 30,190 $ -
Expenses
Clayton Financing Auth. Fund 405

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
420-4609-00 Middle School CFD 1990-1 Parcel Tax Assessment $ 187,924 $ 574,542 $ 109,517 $ 109,517 420-5601-00 Interest $ 14,320 $ 4,600
420-5606-00Unrealized Inv. Gain/Loss $ (6,978) $ -
420-5790-00Other Revenues $ - $ -
Total: $ 195,266 $ 579,142 $ 109,517 $ 109,517
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
420-7381-00Property Tax Admin. Costs $ 1,404 $ 1,404 $ 772 $ - 420-7419-00Other Professional Services $ 2,649 $ 19,450 $ - $ 12,500 420-7420-00Other Outside Services $ 18,510 $ 18,510 $ 18,510 $ - 420-7611-00Principal $ 434,000 $ 470,000 $ - $ -
420-7612-00 Interest Expense $ 54,864 $ 15,282 $ (1,526) $ - 420-7613-00Paying Agent Fee $ 787 $ 2,200 $ -
420-7615-00CCC Property Tax $ 603 $ 650 $ 603 $ -
Total: $ 512,817 $ 527,496 $ 18,360 $ 12,500
Expenses
Middle School Comm. Facilities District Fund 420

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
422-5601-00 Interest $ 20,878 $ 800 $ 5,159 $ -
422-5606-00Unrealized Inv. Gain/Loss $ (4,795) $ -
422-5815-00 Interest on Loans/Bonds $ - $ -
Total: $ 16,083 $ 800 $ 5,159 $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
422-7419-00Other Professional Services $ 11,561 $ 7,050 $ 14,698 $ 700 422-7612-00 Interest Expense $ 19,960 $ 8,663 $ 9,507 $ 10,000 422-7613-00Paying Agent Fee $ 2,541 $ 2,600 $ 2,860 $ 2,900 Total: $ 34,062 $ 18,313 $ 27,065 $ 13,600
Expenses
Clayton Financing Auth. 2007 Fund 422

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
501-5601-00 Interest $ 262 $ 400 $ - $ -
501-5606-00Unrealized Inv. Gain/Loss $ (1,088) $ -
501-5790-00Other Revenues $ 20 $ -
Total: $ (806) $ 400 $ - $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
501-7351-00 Insurance Premiums (EAP Plan) $ 899 $ 1,300 $ 934 $ 1,300 501-7352-00 Insurance Claims Deductibles $ 3,684 $ 5,000 $ (35,919) $ 5,000 501-7413-00 Legal Services $ - $ - $ - $ -
Total: $ 4,583 $ 6,300 $ (34,986) $ 6,300
Expenses
Self Insurance Fund 501

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
502-5328-00CERF Charges to Depts. $ 111,900 $ 52,200
502-5601-00 Interest $ 1,600 $ 1,000
502-5606-00Unrealized Inv. Gain/Loss $ (6,803) $ -
502-5702-00Donations/Contributions $ - $ -
502-5801-00Sale of Assets $ 6,958 $ -
502-6033-00Transfer from Fund 111 Pandemic Recovery Reserve $ - $ 70,000 $ 70,000 $ - Total: $ 113,656 $ 123,200 $ 70,000 $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
502-7390-00Depreciation Expense $ 100,425 $ -
502-7485-00Capital Outlay - Machinery, Vehicles & Equipment $ 4,001 $ 117,000 $ 72,543 $ 75,000 Total: $ 104,426 $ 117,000 $ 72,543 $ 75,000
Expenses
Capital Replacement Fund 502

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
503-5601-00 Interest $ 2,742 $ 4,000
503-5606-00Unrealized Inv. Gain/Loss $ (11,389) $ -
503-6001-00Trx. From GF $ - $ -
Total: $ (8,647) $ 4,000 $ - $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
Transfer to General Fund $ - $ - $ - $ 113,663
Total: $ - $ - $ - $ 113,663
Expenses
Pension Fund 503

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
615-4108-00Redevelopment Property Tax Trust Fund - Distribution$ 618,554 $ 560,579 615-5601-00 Interest $ 4,262 $ 2,000
615-5606-00Unrealized Inv. Gain/Loss $ (19,448) $ -
615-5790-00Other Revenues-RDA Successor Agency $ 2,121 $ 1,500 Total: $ 605,488 $ 564,079 $ - $ -
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
615-7420-00Administrative Costs $ 252,178 $ 196,338
615-7612-00 Interest Expense $ 24,141 $ 22,023 $ 22,023 615-7613-00Paying Agent Fee $ - $ 2,600 $ 2,398
Total: $ 276,319 $ 220,961 $ 24,421 $ -
Expenses
Redevelopment Trust Fund 615

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
616-4110-00 Program Revenue-Successor Housing Agency $ 111,400 $ 110,000 $ 116,400 $ 119,892 616-5601-00 Interest $ 17,961 $ 15,000
616-5606-00 Unrealized Inv. Gain/Loss $ 58,092 $ -
Total: $ 187,453 $ 125,000 $ 116,400 $ 119,892
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
616-7389-00 Misc. Expense $ - $ 27,000
616-7413-00 Special Legal Services $ - $ 5,000
616-7419-00 Other Professional Services $ - $ 10,000 $ - 616-7420-00 Administrative Costs $ - $ 5,000 $ -
Total: $ - $ 47,000 $ - $ -
Expenses
Housing Successor Agency Fund 616

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
702-5601-00 Interest $ - $ -
702-5606-00Unrealized Inv. Gain/Loss $ - $ -
702-5607-00Endeavor Hall Rental Fee $ 16,847 $ 10,000 $ 27,414 $ 25,000 Total: $ 16,847 $ 10,000 $ 27,414 $ 25,000
Account Codes Account Description 2021-22 2022-23 2022-23 2023-24 Actual Budget Projected Request
702-7111-00Regular Salaries $ 2,761 $ 7,925 $ 2,329 $ 8,896 702-7113-00Overtime $ 474 $ 200 $ 1,276 $ 1,000
702-7116-00Part-time Salaries $ - $ 2,262 $ - $ -
702-7218-00 Long/Short Term Disability Insurance $ 22 $ 69 $ 17 $ 84 702-7220-00PERS Retirement-Normal Cost $ 274 $ 732 $ 159 $ 760 702-7221-00PERS Retirement - Unfunded Liability $ 390 $ 985 $ 910 $ 1,397 702-7231-00Workers' Compensation $ 319 $ 352 $ 507 $ 406 702-7232-00Unemployment Compensation $ 70 $ 192 $ - $ - 702-7233-00FICA Taxes $ 41 $ 291 $ 35 $ 130
702-7246-00Benefit Insurance $ 483 $ 1,434 $ 329 $ 1,789 702-7311-00General Supplies $ 21 $ 200 $ 200 $ 200
702-7332-00Telecommunications $ 1,027 $ 1,100 $ 1,100 $ 1,100 702-7335-00Gas & Electric Services $ 2,764 $ 3,000 $ 3,000 $ 3,000 702-7338-00Water Services $ 11,731 $ 4,500 $ 7,870 $ 5,000 702-7341-00Buildings/Grounds Maintenance $ 6,169 $ 7,070 $ 5,943 $ 6,000 702-7343-00Vehicle Maintenance $ 525 $ 400 $ 400 $ 400
702-7344-00Vehicles: Gas, Oil & Supplies $ 190 $ 200 $ 200 $ 300 702-7346-00HVAC Mtn & Repairs $ 1,181 $ 1,500 $ 1,532 $ 1,500 702-7390-00Depreciation Expense $ 28,872 $ 37,500 $ 37,500 $ 37,500 702-7417-00 Janitorial Service $ 1,473 $ 2,620 $ 1,138 $ 2,600 702-7429-00Animal/Pest Control Services $ 1,538 $ 1,500 $ 1,500 $ 1,500 702-7435-00Contract Seasonal Labor $ 369 $ 1,000 $ 1,000 $ 1,000 Total: $ 60,693 $ 75,032 $ 66,945 $ 74,563
Expenses
Endeavor Hall Fund 702

RECEIPTS DETAIL
Revenues

APPROPRIATION DETAIL
Glossary
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit.

Accounting System: The total structure of records and procedures that identify record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components.

Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule.

Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specific public purposes.

An appropriation is usually limited in amount and as to the time period within which it may be expended.

Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher yielding, taxable securities. Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires (beyond certain limits) that earnings be rebated (paid) to the IRS.

Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes.

Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool in evaluating the fiscal performance of a community.

Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) findings and opinions. It is almost always accompanied by a management letter which contains supplementary comments and recommendations.

Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs.

Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specified date.

Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred. Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid.

Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note) Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue.

Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by the community's legislative body to be removed from community's books.

Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.

Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating.

Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget)
Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets) Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits.

Cash Management: The process of monitoring the ebb and flow of money in an out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short- term borrowing and investment of idle cash.

Certificate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specified interest payable to a bearer or to any specified person on a certain specified date, at the expiration of a certain specified time, or upon notice in writing.

Classification of Real Property: Assessors are required to classify all real property according to use into one of four classes: residential, open space, commercial, and industrial. Having classified its real properties, local officials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by personal property owners.

Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union. regarding wages, hours and working conditions.

Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index."
Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives.

Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget.

Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that are chargeable to, but not yet paid from, a specific appropriation account.

Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery-- direct, indirect, and capital costs—are identified. This allows the community to recover total service costs through user fees if it chooses.

Enterprise accounting also enables communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.

Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject to local taxation.

Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.

Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds.

Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances.

Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans.

Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day. The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float.

Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations.

Fund Accounting: Organizing financial records into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds.

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's financial performance, trends and prospects for the future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account for and report other postemployment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service.

General Fund: The fund used to account for most financial resources and activities governed by the normal appropriation process.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.

Governing Body: A board, committee, commission, or other executive or policymaking bodyof a municipality or school district.

Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include fixed assets used in governmental operations.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget.

Local Aid: Revenue allocated by the state or counties to municipalities and school districts.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, counties but also bonds of the state and agencies of the state.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.”
Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer.

The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus.

Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year.

Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc.

Performance Budget: A budget that stresses output both in terms of economy and efficiency.

Principal: The face amount of a bond, exclusive of accrued interest.

Program: A combination of activities to accomplish an end.

Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output.

Purchased Services: The cost of services that are provided by a vendor.

Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer.

Reserve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or unforeseen expenditures.

Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.

Revenue Anticipation Note (RAN): A short-term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations.

Revenue Bond: A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation.

Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service.

Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure.

Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose.

Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves.

Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property.

Tax Title Foreclosure: The procedure initiated by a municipality to obtain legal title to real property already in tax title and on which property taxes are overdue.

Trust Fund: In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by the community's legislative body. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed.

Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves and they are not available for disbursement.)
Undesignated Fund Balance: Monies in the various government funds as of the end of the fiscal year that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash.

Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash) Valuation (100 Percent): The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value.

Agenda Item: 10(b)

AGENDA REPORT
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: Larry Theis, City Engineer
DATE: June 20, 2023
SUBJECT: Adopt a Resolution to Approve the City of Clayton FY 2023-2027 Capital Improvement Plan and related FY 2023/24 CIP appropriations ______________________________________________________________________

RECOMMENDATION
Adopt a Resolution to Approve the City of Clayton Fiscal Year 2023 – 2027 Capital Improvement Plan (CIP) and incorporate the proposed FY24 Capital Improvement project allocations into the Fiscal 2023-2024 Operation and Maintenance Budget.

DISCUSSION
The main purpose of developing a capital improvement plan is to plan for one-time or ongoing expenditures for planned one-time capital projects to be constructed or to fund long term/continuous programs such as ADA improvements and regular paving projects. A typical five-year CIP includes the most recent past fiscal year (FY 2022-2023) to estimate the ending year balance going into the upcoming current fiscal year (FY 2023-2024) and then three more years thereafter for long term planning purposes. The intention is to bring the CIP each May/June with the overall city budget for Council approval for the upcoming fiscal year. The benefit of having a five-year CIP is that it can plan for future projects beyond the current fiscal year since it is sometimes necessary to save funds over multiple fiscal years to perform a large project and to benefit from economies of scale. The Council is still approving the capital expenditures on a year-to-year basis and the planned expenditures in future years (FY 2024/25, 2025/26, 2026/27) are for informational and planning purposes only and are subject to change in future CIPs.

Staff is currently proposing six capital improvement projects/programs for FY24 as listed below:

Project Name FY24 Total Budgeted Expenditure

1. ADA Transition Compliance Program $185,000

2. Neighborhood Paving Program $1,202,029 ($705,179 from grants)

3. Downtown Pedestrian Improvements $387,421 ($272,421 from grants)

4. GIS Program/Database $40,000 ($40,000 from grants)

5. Local Road Safety Plan $56,000 ($16,000 from grants)

6. CCTA Smart Signal Upgrades $506,813 ($430,813 from grants) Total $2,377,263
Subject: Approve the City of Clayton FY 2023-2027 Capital Improvement Plan Date: June 20, 2023

Project numbers 1, 2, and 4 are multiyear programs and there are proposed allocations of funds in future FYs beyond 2024.

The primary on-going fund sources for the capital improvement plan are gas tax collected by the State (Highway Users Tax Account-HUTA and Roadway Maintenance and Rehabilitation Program-RMRA) and the Contra Costa Transportation Authority 1% add-on sales tax (Measure J, passed in 2004 through 2029) for transportation improvements. These are restricted funds for primarily road and transportation related improvements. The City has also been able to obtain one-time grants from the State, County, CCTA, and MTC to supplement its paving, bike/pedestrian related, park, and planning projects.

It should be noted that the City’s HUTA gas tax allocation is approximately $385,000 per year.

Due to deficiencies in other budgets such as streetlights and stormwater, increasingly these gas tax funds are being reallocated to cover the annual operation and maintenance costs of roadway related expenditures such that roughly 85%-90% of the annual revenue is being used on maintenance activities essentially leaving any capital improvements or roadway rehabilitation projects in the future to be funded solely out of one-time grants, RMRA, and Measure J funds.

On June 13, 2023, the Planning Commission reviewed and adopted Resolution 04-2023 finding that the projects/programs included in the FY2023-2027 CIP conform with the City of Clayton’s General Plan (GP-01-2023) in accordance with Section 65401 of the California Government Code.

FISCAL IMPACT
The City Council will be authorizing proposed expenditures for capital projects/programs for Fiscal Year 2023-2024 for the following amounts in the listed fund sources:

Fund #Fund Source FY24 Capital Costs FY24 O&M Costs Total FY24 Fund 201 Gas Tax (HUTA) $20,000 $337,199 $357,199
Fund 202 Gas Tax (RMRA) $496,850 $30,000 $526,850
Fund 220 Measure J (CCTA) $0 $0 $0
Fund 230 Grants (various) $1,464,413 $0 $1,464,413
Fund 303 Capital Fund $396,000 $12,500 $408,500
$2,377,263 $379,699 $2,756,962

ATTACHMENT
City of Clayton FY 2023-2027 Capital Improvement Plan
Resolution – Adopt FY 2023-2027 CIP

CAPITAL IMPROVEMENT PLAN
Fiscal Year 2022/2023 – 2026/2027

ELECTED OFFICIALS
Jeff Wan, Mayor
Jim Diaz, Vice Mayor
Peter Cloven, Councilmember
Holly Tillman, Councilmember
Kim Trupiano, Councilmember
Bret Prebula, City Manager
Prepared by: Larry Theis, City Engineer
With the cooperation, input, and assistance of the following Staff:

Finance Staff
Jennifer Giantvalley, Accounting Technician
Dana Ayers, Community Development Director
Jim Warburton, Maintenance Supervisor
Adopted by the City Council of Clayton on June 20, 2023 Table of Contents
Capital Projects
ADA Transition Compliance Program ........................................................................................................ 1 Neighborhood Paving Program ................................................................................................................. 2 Downtown Pedestrian Improvements ...................................................................................................... 3 Geographic Information System Program/Database ................................................................................ 4 Local Road Safety Plan .............................................................................................................................. 5 CCTA Smart Signal Upgrades ..................................................................................................................... 6 Funding Sources
Fund 201 Gas Tax (HUTA) Fund ................................................................................................................ 7 Fund 202 RMRA Fund ............................................................................................................................... 8 Fund 220 Measure J Fund(CCTA Countywide Transportation Sales Tax) ................................................. 9 Fund 230 Restricted Grant Fund ............................................................................................................. 10 Fund 303 Capital Projects Fund .............................................................................................................. 11 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
This is an ongoing program which removes barriers to accessibility in the public right of way by replacing curbs with curb ramps at crosswalks and other public roadway locations and upgrading curb ramps to current standards. The annual funding is $50,000. The City plans to combine funds from two years to proceed with larger projects for economics of scale in project costs.

Project # CIP#10394A
Justification
This program will remove barriers to accessibility in the right of way.

Useful Life 15
Project Name ADA Transition Compliance Program
Category Transportation/Drainage
Type Bike/Ped
Contact Engineering
Department Engineering
Total Project Cost: $285,000
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 50,000 15,000 65,000
Construction Management 35,000 15,000 50,000
Construction 100,000 70,000 170,000
Total 185,000 100,000 285,000
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 201 Gas Tax (HUTA) 100,000 100,000
Fund
Fund 303 Capital Projects 185,000 185,000
Total 185,000 100,000 285,000
2022-2023 CIP
1 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
Perform pavement rehabilitation to elevate neighbordhood streets to a Pavement Condition Index (PCI) of 80 or greater (where PCI score of 100 is equivalent to a brand new street). Citywide public street PCI is 79 in 2022.

Justification
Roadway pavement rehabilitation work is necessary to prevent the pavement condition to fall into the "Poor" condition rating. Research has shown it would cost more to repair a roadway that deteriorated to the point where major rehabilitaiton or reconstruction is necessary.

Useful Life 15
Project # CIP#10449
Project Name Neighborhood Paving Program
Category Transportation/Drainage
Type Roads
Contact Engineering
Department Engineering
Total Project Cost: $5,684,281
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 164,513 195,000 166,000 145,000 670,513 Construction Management 74,757 154,879 150,000 130,000 509,636 Construction 757,074 852,150 1,435,000 1,459,908 4,504,132 Total 996,344 1,202,029 1,751,000 1,734,908 5,684,281
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 201 Gas Tax (HUTA) 16,000 295,000 311,000
Fund
Fund 202 RMRA Fund 496,850 250,000 680,000 1,426,850
Fund 220 Measure J 600,000 550,000 1,150,000
Fund 230 Restricted Grant 705,179 705,179
Fund 303 Capital Projects 996,344 885,000 209,908 2,091,252 Total 996,344 1,202,029 1,751,000 1,734,908 5,684,281
2022-2023 CIP
2 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
This project is comprised of three elements:
- Raised and lighted crosswalk system to be located on Oak Street In the east/west direction at Center Street. - An additional raised and lighted crosswalk system to be located on Center Street in the north/south direction at Oak Street. - A Tabletop or raised intersection at Marsh Creek Road and Main Street Project # CIP#10450
Justification
This project is to improve pedestrian safety in the Town Center of Clayton.

Useful Life 15
Project Name Downtown Pedestrian Improvements
Category Transportation/Drainage
Type Bike/Ped
Contact Engineering
Department Engineering
Total Project Cost: $415,615
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 28,194 40,000 68,194
Construction Management 35,000 35,000
Construction 312,421 312,421
Total 28,194 387,421 415,615
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 230 Restricted Grant 272,421 272,421
Fund 303 Capital Projects 28,194 115,000 143,194
Total 28,194 387,421 415,615
2022-2023 CIP
3 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
Geographic Information System (GIS) is a standard format/platform used by the private and public agencies. The City intends to develop a basic platform using an ArcGIS account to organize multile layers/maps of different information such as zoning, storm drain system, special district boundaries, etc.

Project # CIP#T2303
Justification
The database will benefit City Staff and the general public.

Useful Life 15
Project Name Geographic Information System Program/Database Category Transportation/Drainage
Type Roads
Contact Engineering
Department Engineering
Total Project Cost: $90,000
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 40,000 15,000 15,000 20,000 90,000
Total 40,000 15,000 15,000 20,000 90,000
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 201 Gas Tax (HUTA) 13,106 15,000 20,000 48,106
Fund
Fund 230 Restricted Grant 40,000 40,000
Fund 303 Capital Projects 1,894 1,894
Total 40,000 15,000 15,000 20,000 90,000
2022-2023 CIP
4 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
The process of preparing a Local Roadway Safety Plan (LRSP) creates a framework to systematically identify and analyze safety problems and recommend safety improvements.

Project # CIP#T2304
Justification
Preparing an LRSP facilitates the development of local agency partnerships and collaboration, resulting in a prioritized list of improvements and actions that can demonstrate defined needs. More and more grants are transitioning to requiring the City to have a LRSP before the City can apply for those grants. An adopted LRSP will allow the City to apply to those grants.

Useful Life 15
Project Name Local Road Safety Plan
Category Transportation/Drainage
Type Roads
Contact Engineering
Department Engineering
Total Project Cost: $56,000
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 56,000 56,000
Total 56,000 56,000
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 230 Restricted Grant 16,000 16,000
Fund 303 Capital Projects 40,000 40,000
Total 56,000 56,000
2022-2023 CIP
5 Capital Improvement Plan
City of Clayton, California
'22/'23 '26/'27 thru
Description
CCTA led project - coordination with all cities/town within the county. Each City must provide 11.47% local match toward the design and construction fo these signal upgrades which include cellular connectivity, video camers, emergency preemption, improved detection.

Project # CIP#T2305
Justification
Improve smart technology at signalized intersection to improve efficiency and real time responsiveness.

Useful Life
Project Name CCTA Smart Signal Upgrades
Category Transportation/Drainage
Type Unassigned
Contact Engineering
Department Engineering
Total Project Cost: $506,813
Expenditures '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Planning/Design 20,000 20,000
Construction 486,813 486,813
Total 506,813 506,813
Funding Sources '22/'23 '23/'24 '24/'25 '25/'26 '26/'27 Total Fund 201 Gas Tax (HUTA) 20,000 20,000
Fund
Fund 230 Restricted Grant 430,813 430,813
Fund 303 Capital Projects 56,000 56,000
Total 506,813 506,813
2022-2023 CIP
6 Capital Improvement Plan
City of Clayton, California

SOURCES AND USES OF FUNDS
'22/'23 '26/'27 thru
Fund 201 Gas Tax (HUTA) Fund
Source '22/'23 '23/'24 '24/'25 '25/'26 '26/'27
Beginning Balance 57,745 244,492 272,543 312,437 259,437 Revenues and Other Fund Sources
Revenue
Gas Tax Revenue 385,199 385,250 390,000 395,000 400,000 Total 385,199 385,250 390,000 395,000 400,000
Total Funds Available 442,944 629,742 662,543 707,437 659,437 Total Revenues and Other Fund Sources 385,199 385,250 390,000 395,000 400,000 Expenditures and Uses
Capital Projects & Equipment
CIP#10394A 0 0 0 (100,000) 0
0 0 (16,000) 0 (295,000)
Engineering
ADA Transition Compliance Program
Neighborhood Paving Program CIP#10449
Geographic Information System Program/Database CIP#T2303 0 0 (13,106) (15,000) (20,000) CCTA Smart Signal Upgrades CIP#T2305 0 (20,000) 0 0 0
Total 0 (20,000) (29,106) (115,000) (315,000)
Other Uses
Operation (198,452) (337,199) (321,000) (333,000) (344,000) Total (198,452) (337,199) (321,000) (333,000) (344,000) Total Expenditures and Uses (198,452) (357,199) (350,106) (448,000) (659,000) Ending Balance 244,492 272,543 312,437 259,437 437
Change in Fund Balance 186,747 28,051 39,894 (53,000) (259,000) 2022-2023 CIP
7 Fund 202 RMRA Fund
Source '22/'23 '23/'24 '24/'25 '25/'26 '26/'27
Beginning Balance 257,296 482,296 190,446 180,446 425,446 Revenues and Other Fund Sources
Revenue
RMRA Distribution 225,000 235,000 240,000 245,000 255,000 Total 225,000 235,000 240,000 245,000 255,000
Total Funds Available 482,296 717,296 430,446 425,446 680,446 Total Revenues and Other Fund Sources 225,000 235,000 240,000 245,000 255,000 Expenditures and Uses
Capital Projects & Equipment
0 (496,850) (250,000) 0 (680,000)
Engineering
Neighborhood Paving Program CIP#10449
Total 0 (496,850) (250,000) 0 (680,000)
Other Uses
Operation 0 (30,000) 0 0 0
Total 0 (30,000) 0 0 0
Total Expenditures and Uses 0 (526,850) (250,000) 0 (680,000) Ending Balance 482,296 190,446 180,446 425,446 446
Change in Fund Balance 225,000 (291,850) (10,000) 245,000 (425,000) 2022-2023 CIP
8 Fund 220 Measure J
Source '22/'23 '23/'24 '24/'25 '25/'26 '26/'27
Beginning Balance 9,544 59,853 139,853 139,853 439,853
Revenues and Other Fund Sources
Revenue
Measure J Distribution 81,881 80,000 600,000 300,000 300,000 Total 81,881 80,000 600,000 300,000 300,000
Total Funds Available 91,425 139,853 739,853 439,853 739,853 Total Revenues and Other Fund Sources 81,881 80,000 600,000 300,000 300,000 Expenditures and Uses
Capital Projects & Equipment
0 0 (600,000) 0 (550,000)
Engineering
Neighborhood Paving Program CIP#10449
Total 0 0 (600,000) 0 (550,000)
Other Uses
Operation (31,572) 0 0 0 0
Total (31,572) 0 0 0 0
Total Expenditures and Uses (31,572) 0 (600,000) 0 (550,000) Ending Balance 59,853 139,853 139,853 439,853 189,853
Change in Fund Balance 50,309 80,000 0 300,000 (250,000) 2022-2023 CIP
9 Fund 230 Restricted Grant
Source '22/'23 '23/'24 '24/'25 '25/'26 '26/'27
Beginning Balance 0 00 0 0
Revenues and Other Fund Sources
Revenue
CCTA Smart Signal (OBAG 3) 0 430,813 0 0 0
Clayton Community Park (Prop 68 RIRE) 250,000 0 0 0 0
Downtown Pedestrian Improvements (CCTA TLC 0 252,000 0 0 0 Grant)
Downtown Pedestrian Improvements (MTC TDA 0 20,421 0 0 0 Grant)
Geographic Information System 0 40,000 0 0 0
Program/Database (SB2 Grant)
Local Road Safety Plan (CCTA/MTC OBAG3) 0 16,000 0 0 0
Neighborhood Paving Program (Measure J 0 397,179 0 0 0
Measure Street Project Grant)
Neighborhood Paving Program (OBAG 2) 0 308,000 0 0 0
The Grove Park Improvements (Prop 68 per 378,074 0 0 0 0 population)
Total 628,074 1,464,413 0 0 0
Total Funds Available 628,074 1,464,413 0 0 0
Total Revenues and Other Fund Sources 628,074 1,464,413 0 0 0 Expenditures and Uses
Capital Projects & Equipment
Engineering
Neighborhood Paving Program CIP#10449 0 (705,179) 0 0 0 Downtown Pedestrian Improvements CIP#10450 0 (272,421) 0 0 0 Clayton Community Park Improvemets CIP#10454 (250,000) 0 0 0 0 The Grove Park Improvements CIP#T2302 (378,074) 0 0 0 0 Geographic Information System Program/Database CIP#T2303 0 (40,000) 0 0 0 Local Road Safety Plan CIP#T2304 0 (16,000) 0 0 0
CCTA Smart Signal Upgrades CIP#T2305 0 (430,813) 0 0 0
Total (628,074) (1,464,413) 0 0 0
Total Expenditures and Uses (628,074) (1,464,413) 0 0 0 Ending Balance 0 00 0 0
Change in Fund Balance 0 00 0 0
2022-2023 CIP
10 Fund 303 Capital Projects
Source '22/'23 '23/'24 '24/'25 '25/'26 '26/'27
Beginning Balance 2,606,445 1,505,302 1,096,802 209,908 209,908 Revenues and Other Fund Sources
Revenue
No Funds 0 00 0 0
Total 0 00 0 0
Total Funds Available 2,606,445 1,505,302 1,096,802 209,908 209,908 Total Revenues and Other Fund Sources 0 00 0 0
Expenditures and Uses
Capital Projects & Equipment
Engineering
ADA Transition Compliance Program CIP#10394A 0 (185,000) 0 0 0 North Valley Park Rehabilitation CIP#10422 (62,282) 0 0 0 0 Neighbordhood Paving Program CIP#10449 (996,344) 0 (885,000) 0 (209,908) Downtown Pedestrian Improvements CIP#10450 (28,194) (115,000) 0 0 0 Clayton Community Park Improvemets CIP#10454 (1,823) 0 0 0 0 Geographic Information System Program/Database CIP#T2303 0 0 (1,894) 0 0 Local Road Safety Plan CIP#T2304 0 (40,000) 0 0 0
CCTA Smart Signal Upgrades CIP#T2305 0 (56,000) 0 0 0
Total (1,088,643) (396,000) (886,894) 0 (209,908)
Other Uses
Operation (12,500) (12,500) 0 0 0
Total (12,500) (12,500) 0 0 0
Total Expenditures and Uses (1,101,143) (408,500) (886,894) 0 (209,908) Ending Balance 1,505,302 1,096,802 209,908 209,908 0
Change in Fund Balance (1,101,143) (408,500) (886,894) 0 (209,908) 2022-2023 CIP
11 RESOLUTION NO. XX-2023

A RESOLUTION ADOPTING THE
5-YEAR CAPITAL IMPROVEMENT PLAN (CIP)
FOR FISCAL YEARS 2022/23 THROUGH 2026/27 AND APPROVAL OF THE APPROPRTIAITONS TO FUND THE FY 2023/24 PORTION OF THE PLAN

THE CITY COUNCIL
City of Clayton, California
WHEREAS, the Capital Improvement Plan was prepared in accordance with the guidelines and input provided by the City Council;
WHEREAS, on April 24, 2023, a public meeting was held with the Budget/Audit Committee for the purpose of receiving citizen input and comments on the proposed projects in the 5- Year Capital Improvement Plan for Fiscal Years 2022/23 through 2026/27; and WHEREAS, on June 13, 2023, a public meeting was held with the Planning Commission where they reviewed and adopted Resolution 04-2023 finding that the projects/programs included in the FY2023-2027 CIP conform with the City of Clayton’s General Plan (GP-01- 2023) in accordance with Section 65401 of the California Government Code; and WHEREAS, the recommended six (6) capital improvement projects recommended for FY 2023/24 require a total appropriation of $2,377,263. The Finance Director will create individual program budgets for each project.

NOW, THEREFORE, BE IT RESOLVED the City Council of Clayton, California does hereby adopt the 5-Year Capital Improvement Plan for Fiscal Years 2022/23 through 2026/27.

BE IT FURTHER RESOLVED that the final published CIP document shall incorporate revisions if any, as directed by the City Council on June 20, 2023.

BE IT FURTHER RESOLVED that the City Council approves the total CIP budget of $2,377,263 for FY 2023/24.

PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California during a public hearing at a regular public meeting thereof held on the June 20, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

THE CITY COUNCIL OF CLAYTON, CA
________________________________
Jeff Wan, Mayor
Resolution No. XX-2023 FY23-27 CIP Adoption 2 June 20, 2023 ATTEST:
____________________________
Janet Calderon, City Clerk
Agenda Item: 10(c)

STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: Bret Prebula, CITY MANAGER
DATE: June 20, 2023
SUBJECT: Adopt a Resolution Approving an Addendum to the Terms and Conditions of Employment for Clayton’s Miscellaneous Employees and the Employment Agreement with Police Chief Richard McEachin. ______________________________________________________________________

RECOMMENDATION
Adopt a Resolution approving the following:

1. Addendum to the existing terms and conditions of employment with the City’s Undesignated Miscellaneous City Employees Unit, making changes to cost of living adjustments, employee retention, and other terms and condition including extending the agreement to June 30, 2025; and

2. Approving an employment agreement with Police Chief Richard McEachin with a term ending June 30, 2024.

BACKGROUND
The City Council has been in negotiations with the City’s Undesignated Miscellaneous Employees group as the current agreement ends June 30, 2023. The City Council and undesignated employees have reached agreement on the terms and conditions of their new agreement.

Police Chief
As part of the negotiations, it was determined by both parties that it was in the best interest of the City, Police Chief, and the remaining undesignated employees if the Police Chief had his own employment agreement so his specific public safety related interests could be addressed.

The agenda item creates this separation and requests approval of the Police Chief’s employment agreement.

DISCUSSION
The City Council has been in negotiations with the City’s Undesignated Miscellaneous Employees group and has reached an agreement with the following major terms:

Subject: Adopt a Resolution Approving an Addendum to the Terms and Conditions of Employment for Clayton’s Miscellaneous Employees and the Employment Agreement with Police Chief Richard McEachin.

Date: June 20, 2023

• Term of the agreement- July 1, 2023-June 30, 2025
• Cost of Living Increase of 5% effective July 1, 2023
• Cost of Living Increase of (3%-5%) depending on CPI effective July 1, 2024 • 5% Non-Persable one-time retention payment for employees retained from June 1, 2023 through June 9, 2024
• Car allowances have been removed from the compensation plan The major terms of the Police Chief’s employment agreement are as follows:
• Term of the agreement- July 1, 2023-June 30, 2024
• $1,200 per year in uniform allowance
• $400 automobile allowance
• Longevity Pay percentages
• 3-month severance
• COLA increase of 4% effective July 1, 2023

FISCAL IMPACT
The cost of the agreement between the City and the City’s undesignated miscellaneous employees is as follows:
• FY 2023/24 total cost inclusive of COLA, benefits, 5% retention payment, and reduction from removal of car allowance is approximately $146,000 with $79,000 of that total is related to the one-time retention payment. • FY 2024/25 total cost inclusive of the COLA, benefits, compounded from the increase from the previous fiscal year will ultimately depend on the CPI with a minimum increase of another 3% and a maximum increase of 5%. The range of cost increases from the minimum to the maximum will be approximately $50,000 to a maximum increase of $84,000 from the FY 2023/24 adjusted totals.

Police Chief
Although the Police Chief’s contract is a new approach as the Police Chief was previously part of the Miscellaneous Employee Agreement, the actual increase in cost is primarily the 4% COLA. The cost of that COLA is approximately $7,800 in FY 2023/24 (the term of the agreement ends June 30, 2024).

Attachments: 1. City Resolution

2. Miscellaneous Employees Terms & Conditions of Employment July 1, 2023 through June 30, 2025

3. Employment Agreement with Richard McEachin, Police Chief Subject: Adopt a Resolution Approving an Addendum to the Terms and Conditions of Employment for Clayton’s Miscellaneous Employees and the Employment Agreement with Police Chief Richard McEachin.

Date: June 20, 2023

Reso XX-2023 Misc EEs Addendum 1 June 20, 2023
RESOLUTION NO. XX-2023
A RESOLUTION APPROVING ADDENDUM NO. 2 TO
THE TERMS & CONDITIONS OF EMPLOYMENT FOR THE CITY OF CLAYTON’S UNDESIGNATED MISCELLANEOUS EMPLOYEES EFFECTIVE JULY 1, 2023 – JUNE 30, 2025 AND APPROVAL OF THE EMPLOYMENT AGREEMENT WITH

POLICE CHIEF RICHARD MCEACHIN

THE CITY COUNCIL
City of Clayton, California
WHEREAS, the current Terms and Conditions of Employment for the City of Clayton’s Undesignated Miscellaneous City Employees (Terms & Conditions) covered the period from July 1, 2023 through June 30, 2025; and
WHEREAS, the City Council and the Miscellaneous City Employees wish to enter into a new agreement; and
WHEREAS, the City Council and the Miscellaneous City Employees agree to the following terms and conditions outlined in the agreement, Exhibit “A”; and WHEREAS, the City Council, Miscellaneous City Employees, and Police Chief, agree that it is in the best interest of all parties that the Police Chief has his own employment agreement, separate from the Miscellaneous City Employes; and WHEREAS, the City Council and Police Chief Richard McEachin agree to the terms and conditions of the employment agreement, Exhibit “B”.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Clayton, California does hereby accept and approve Addendum 2 (“Exhibit A”) to the Terms and Conditions for the City of Clayton’s Undesignated Miscellaneous City Employees agreeing to the terms and conditions of the agreement through June 30, 2025 and does hereby authorize and instruct the City Manager to implement the agreed-upon terms and conditions accordingly.

NOW, THEREFORE BE IT FURTHER RESOLVED that the City Council of Clayton, California and Richard McEachin, Police Chief, agree to the employment contract with the term of the agreement ending June 30, 2024, and does hereby authorize and instruct the City Manager to implement the agreed-upon terms and conditions accordingly.

PASSED, APPROVED AND ADOPTED by the City Council of Clayton, California at a regular public meeting thereof held on the 20th day of June 2023:

Reso XX-2023 Misc EEs Addendum 2 June 20, 2023
AYES:

NOES:

ABSTAIN:

ABSENT:

THE CITY COUNCIL OF CLAYTON, CA
________________________________
Jeff Wan, Mayor
ATTEST:
___________________________________
Janet Calderon, City Clerk

EMPLOYMENT AGREEMENT BETWEEN

THE CITY OF CLAYTON AND CLAYTON
POLICE CHIEF RICHARD McEACHIN
ARTICLE 1: PREAMBLE
This employment agreement, pursuant to the State of California Government Code Section 3500 et seq., entered into by the City of Clayton, hereinafter referred to as “City”, and Clayton Police Chief Richard McEachin, hereinafter referred to as “employee”, is hereby effective 01 July 2023 through 30 June 2024.

It is the intent and purpose of the employment agreement, hereinafter referred to as “agreement”, to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to wages, hours, and terms and conditions of employment.

ARTICLE 2: SAVINGS CLAUSE
If any section, subsection, subdivision, sentence, clause or phrase of this agreement is, for any reason, held to be illegal or unconstitutional, such holding shall not affect the validity of the remaining portions of this agreement.

ARTICLE 3: MANAGEMENT RIGHTS
Section 3.1
Except as otherwise specifically provided and subject to applicable laws, the City has and retains sole and exclusive rights and functions of management, including, but not limited to, the following:

A. To determine the nature, standards, and extent of services to be performed, as well as the right to determine and implement its public function responsibility.

B. To manage all facilities and operations of the City, including the methods, means, and numbers and kinds of personnel by which the City operations are to be conducted.

C. To direct the working forces, including the right to hire, assign, promote, demote, or transfer any employee.

D. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments upon reasonable notice.

E. To discharge, suspend, demote, reprimand, withhold merit increases or otherwise discipline employees in accordance with applicable law.

F. To determine policies, procedures, and standards affecting the selection, training, and promotion of employees.

G. To establish, assess, and implement employee performance standards, including, but not limited to, quality and quantity standards, the assessment of employee performances, and the procedures for said assessment.

ARTICLE 4: EMPLOYEE RIGHTS
Section 4.1 Personnel Files
The City’s secured personnel files, maintained in the City offices, are not subject to public inspection. Any employee has the right to inspect their own personnel file. An employee has the right, in accordance with law, to respond in writing to anything contained or placed in their own personnel file and any such response(s) shall become part of their personnel file.

Section 4.2 Peace Officers Procedural Bill of Rights
The City shall observe statutory rights conferred on the Chief of Police in accordance with California law.

This classification is considered “at will”. The City Manager may terminate employment at any time. Because this position works at the will of the City Manager, they do not serve a probationary period. This paragraph is declaratory of existing rights and status, as has been previously memorialized in the City’s Employee Handbook for many years.

ARTICLE 5: COMPENSATION
Section 5.1 Wages
Effective the first full pay period after June 30, 2023, the salary schedule for Police Chief shall be increased by four percent (4%).

Section 5.2 Salary Advancement
Assigned salary ranges normally contain five (5) steps, A through E. Employees move through these salary steps subject to satisfactory performance.

Regular employees shall be eligible for step salary advancement consideration as follows:

1. To the “B” rate of the salary step schedule after successful completion of one (1) year at the “A” rate.

2. To the “C” rate of the salary step schedule after successful completion of one (1) year at the “B” rate.

3. To the “D” rate of the salary step schedule after successful completion of one (1) year at the “C” rate.

4. To the “E” rate of the salary step schedule after successful completion of one (1) year at the “D” rate.

When an employee is hired at a salary rate other than Step “A” of the salary step schedule assigned to the classification, the employee shall be eligible for a step increase twelve (12) months from the date of employment, and this date shall become the employee’s salary review date for the purposes of eligibility for future merit increases. Thereafter, the above merit pay procedure shall be followed.

Salary advancements are granted for continued meritorious and efficient service, and after continued improvements in assigned tasks, in conjunction with performance appraisal procedures. Recommendations for salary advancement are initiated by the City Manager.

Salary step advancements are not guaranteed. When an employee is denied a merit step increase, the employee shall be informed of such and the reasons therefore in writing. The employee shall be reconsidered for advancement within six (6) months, and if still denied at that time, may be reconsidered for advancement at any subsequent time recommended by the City Manager.

Employees who have received internal promotions, if assigned to a salary step in the new classification salary range offering a minimum five percent (5%) salary increase, shall be eligible for a step increase upon successful completion of twelve (12) months in the new position. If employees are placed on a higher salary step than this, based upon the recommendation and approval of the City Manager, they shall be eligible to advance to the next step of the new classification salary range one (1) year from the date of promotion. This promotion date shall also become the employee’s new salary review date for purposes of eligibility for future merit salary increases.

Section 5.3 Uniform Program
A. Sworn Police Personnel
Sworn police personnel shall receive a uniform allowance of twelve hundred dollars ($1,200.00) per year payable in two equal increments of six hundred dollars ($600.00) each according to the following payment schedule:
$600.00 in the first pay period of the fiscal year; and $600.00 in the final pay period of the calendar year.

New employees shall receive one uniform allowance increment initially upon appointment and unless the new employee commences employment on the start of a fiscal year, the uniform allowance for that initial increment shall be pro-rated.

Uniform pay shall be reported as special compensation for eligible employees in accordance with CalPERS regulations and guidance.

Section 5.4 Deferred Compensation
At least one (1) deferred compensation plan shall be offered by the City and made available to all employees in this unit, which provides for tax-deferred savings and/or a retirement supplement. Employee deposits into such plan(s) shall be made by payroll deduction and at monetary levels of the employee’s choice, subject to the maximum(s) allowed according to Internal Revenue Service (IRS) regulations and laws.

Section 5.5 Automobile
Employee shall receive a monthly vehicle allowance of Four Hundred Dollars ($400.00) per month. The parties intend for this taxable allowance to be in lieu of reimbursement on an itemized basis for mileage, gas, maintenance of a vehicle, etc. Employee shall not be separately reimbursed for mileage driven in a personal vehicle.

Section 5.6 Longevity Pay
Members who have achieved the following years of service shall receive the Longevity Pay Incentive applied to base pay as shown. Percentages are not cumulative. • Five Years 2%
• Ten Years 3%
• Twenty Years 5%
Section 5.7 Severance Provisions
If the Chief of Police is asked to resign or otherwise separated involuntarily, then in exchange for full releases and waivers of all claims (in a form prepared by the City Attorney), the Chief of Police is eligible for and the City Manager may provide the Chief of Police with severance benefits not to exceed three (3) months’ salary.

ARTICLE 6: MEDICAL, DENTAL, AND LIFE/ACCIDENTAL DEATH/DISMEMBERMENT

INSURANCE
Section 6.1 City Contribution to Medical and Dental Insurance Premiums The maximum monthly City premium contribution for medical and/or dental insurance coverage for regular, full-time members of this unit shall be paid by the City in accord with the following employee subscription enrollment schedule.

A. The City’s maximum premium contribution to employee-enrolled medical and dental insurance coverage shall be as follows:

1. Medical Insurance (through CalPERS’ Public Employees’ Medical and Hospital Care Act). The City’s maximum monthly co-pay contribution specified below is benchmarked to the least costly medical insurance premium offered between Blue Shield Net Value HMO or Kaiser Permanente plans. Should a member of this unit elect to enroll in a CalPERS medical insurance plan with a corresponding monthly premium higher than the least costly premium between the two medical plans listed above, the employee is responsible for 100% of the added premium cost above the least costly plan’s premium for each of the enrollment options noted below:

1. Employee Only enrollment: City pays 100% of the selected Plan premium.

2. Employee + 1 Dependent enrollment: City pays 100% of the selected Plan premium for the Employee Only and 50% of additional premium expense for the one (1) Dependent.

3. Employee + Family enrollment: City pays 100% of the selected Plan premium for the Employee Only and 59.375% additional premium expense for the Family.

2. Dental Insurance (through the Municipal Pooling Authority’s Delta Dental Health Care Employees/Employers Dental Trust):

1. Employee Only enrollment: City pays 100% of the Plan premium.

2. Employee +1 Dependent: City pays 100% of the Plan premium for the Employee Only and 46.8% of additional premium expense for the one (1) Dependent.

3. Employee + Family: City pays 100% of the Plan premium for the Employee Only and 60.94% of additional premium expense for the Family.

Section 6.2 Life/Accidental Death/Dismemberment Insurance The City will contract and pay the full premium to enroll employee in a $50,000 face amount life insurance policy and a $50,000 Accidental Death and Dismemberment Insurance coverage.

Section 6.3 Short Term and Long Term Disability Insurance The City shall provide and pay for the short term (STD) and long-term disability (LTD) insurance(s) on behalf of employee for the purpose of providing contracted levels of continued compensation in the event of an off-duty illness or injury.

Section 6.4 In-lieu Health Benefits
In lieu of enrollment in the City’s Medical and Dental plans, and upon providing proof of coverage, the City will contribute and deposit two-hundred and twenty-five dollars ($225.00) per month to and into a deferred compensation plan of employee’s choice provided said deferred compensation plan is presently offered by and available through the City. Should the employee elect at any time during City employment to enroll in a City medical or dental plan or if the City employment is terminated, this in-lieu amount ceases on that date of participation or employment event.

ARTICLE 7: RETIREMENT SYSTEM
The City is a member of the California Public Employee’s Retirement System, hereinafter referred to as “CalPERS”. All regular full and part time employees of this Unit are compulsory members of this retirement system.

Section 7.1 Classic Tier I Employees
All regular full-time and regular part-time employees of this Unit hired before 01 July 2010 are considered “Classic Tier I” participating members of CalPERS. By contract, the City and employee are participating members of the “3% at age 55” Safety Retirement System. The applicable employee contribution paid in full by Classic Tier I employees, pursuant to pre-tax payroll deductions, is nine percent (9%).

A. Cost-Sharing of City CalPERS Contributions
Upon ratification of this agreement, the City shall implement cost-sharing pursuant to the terms set forth below to offset a portion of the City’s employer contribution to CalPERS for retirement benefits as authorized under Section 20516(f) of the Government Code.

The employee cost-sharing contribution will be accomplished pursuant to Section 20516(f) of the Government Code. Cost-sharing contributions made pursuant to Section 20516(f) remain characterized as employer contributions by CalPERS and therefore, will not be allocated to the employee’s retirement account. Cost-sharing contributions will be deducted from wages on a pre-tax basis during the term of this Agreement.

The cost-sharing contribution amount is as follows:

Effective July 1, 2021, Classic Tier I employees shall contribute, through payroll deduction, an additional two and one quarter percent (2.25%) for a total of eleven and one-quarter (11.25%) of PERSable compensation towards CalPERS retirement.

Section 7.2 Classic Tier II Employees
Employees hired on or after 01 July 2010, plus any new employee of this Unit that was a participating member with an employer enrolled in a CalPERS “Classic” pension system and whom did not experience a break in employment service longer than six (6) months, are each considered City “Classic Tier II” employees and are compulsory participating members in Cal PERS. The City shall contract with Cal PERS and enroll said eligible employees in this hiring category in the CalPERS “2% at age 50” Local Public Safety retirement plan. The applicable employee contribution paid in full by Classic Tier II employees, pursuant to pre-tax payroll deductions, is nine percent (9%).

A. Cost-Sharing of City CalPERS Contribution
Upon ratification of this Agreement, the City shall implement cost-sharing pursuant to the terms set forth below to offset a portion of the City’s employer contribution to CalPERS for retirement benefits as authorized under Section 20516(f) of the Government Code.

The employee cost-sharing contribution will be accomplished pursuant to Section 20516(f) of the Government Code. Cost-sharing contributions made pursuant to Section 20516(f) remain characterized as employer contributions by CalPERS and therefore, will not be allocated to the employee’s retirement account. Cost-sharing contributions will be deducted from wages on a pre-tax basis during the term of this Agreement.

The cost-sharing contribution amount is as follows:

Effective July 1, 2021, Classic Tier II employees shall contribute, through payroll deduction, an additional two and one quarter percent (2.25%) for a total of eleven and one-quarter (11.25%) of PERSable compensation towards CalPERS retirement.

Section 7.3 PEPRA Tier III Employees
A Public Employee Pension Reform Act (“PEPRA”) or City “Tier III” employee for retirement purposes is any new member of this Unit who becomes a member of CalPERS for the first time on or after 01 January 2013, and who was not a member of another California public retirement system prior to that date, and who is not subject to reciprocity with another California public retirement system. Eligible employees of the City’s “Tier III” Retirement Plan are enrolled as members of the Local Public Safety retirement plan of “2.7% at age 57”.

Under PEPRA, members of the Tier III Retirement Plan must contribute fifty percent (50%) of the total Normal Cost, as defined and calculated by CalPERS, as the Employee Share.

Section 7.4 Survivor Benefit Program
The City agrees to contract for the CalPERS 1959 Survivor Benefit Program – Fourth Level, and provide the annual employer cost for this contracted retirement benefit. Employees of this Unit shall be solely responsible for the employee monthly cost for this added contractual benefit, payable through mandatory City payroll deductions.

ARTICLE 8: HOLIDAYS AND LEAVES
Section 8.1 Holiday Leave
Permanent employees shall receive the following eleven (11) 8-hour days of paid holiday leave each calendar year:

New Year’s Day Martin Luther King, Jr. Day
President’s Day Memorial Day
Independence Day Labor Day
Veteran’s Day Thanksgiving Day
Friday after Thanksgiving Christmas Eve
Christmas Day
Holidays falling on non-work days will be observed on the nearest regular work day. Nonexempt employees must be in a paid status the day before or the day following a paid holiday (or be on a pre-approved paid leave) in order to earn the paid holiday.

Section 8.2 Personal or “Floating” Leave
In addition to the holidays listed under Section 8.1, employee shall receive twenty-four (24) hours of Personal Leave for each fiscal year. Said leave hours shall be taken at the employee’s discretion, with the consent of the City Manager. If Personal Leave hours are not taken or exhausted by the end of the fiscal year (June 30th), the remaining hours are forfeited.

Section 8.3 Vacation Leave
Employee shall be entitled to annual vacation leave with pay as earned.

A. Vacation leave credit for an 80-hour biweekly work week employee shall be accrued on the following basis, subject to a not-to-exceed accrual cap of twenty-four (24) times one’s current monthly accrual rate (“the cap”):

1. 6.67 hours per month from the date of initial hire through month 24.

2. 8.00 hours per month from month 25 through month 48.

3. 10.00 hours per month from month 49 through month 96.

4. 13.33 hours per month from month 97 through month 180.

5. 16.67 hours per month from month 181 and beyond.

B. Vacation leave credit for regular full-time employees working less than an eighty (80) hour biweekly work week shall be credited as in paragraph “A” above on a pro-rata basis based on the number of hours worked per week.

C. Vacation leave must be used in increments of one-quarter (0.25) hour or more.

D. Vacation leave may be taken as earned but must be requested in writing as far in advance as possible. Vacation leave scheduling is subject to approval of the City Manager, based on labor deployment requirements.

E. Upon leave of City employment, an employee will be paid for all accrued, unused vacation leave hours.

F. An employee may elect to convert 40 hours of accrued vacation leave per calendar year in accordance with the “Leave Sell Back” Administrative Policy. Election for participation in the program shall occur no later 60 days prior to the start of the new calendar year.

The cash out period shall generally occur 12 months after the election. At the time of cash out, the employee’s vacation leave may not fall below 40 hours after participation in this program.

Section 8.4 Sick Leave
Sick leave is earned at a rate of eight (8) hours for each month worked. Maximum accrual will be nine hundred sixty (960) hours. Unused sick leave will not be paid upon separation from City employment.

Sick leave may generally be used for any illness, injury, medical or dental appointment/treatment, or disability (including pregnancy and childbirth) of the employee. Sick leave may also be used for illness or injury of the employee’s immediate family; however, absences for family leave purposes in excess of one (1) week (or a cumulative two (2) weeks in any calendar year) must be approved by the City Manager. A physician’s report may be required for extended periods of sick leave usage, or if in the determination of the City manager, the employee exhibits greater than average, or unusual patterns or circumstances in the use of sick leave.

Up to three (3) days of sick leave may be used to attend funerals of close family members, with the approval of the City manager.

Members of this unit are entitled to certain disability benefits as defined by state law, and may not therefore use sick leave for on-the-job injuries or illnesses. Further, any unused sick leave shall not extend the retirement date of an employee who has been granted a disability retirement, notwithstanding the provisions of CA Government Code Section 21025.2.

Employee may use accrued sick leave for non work-related disabilities up to the effective or commencement date of short-term or long-term disability benefits.

Employees unable to return to work within six (6) months of the date of disability (non workrelated) may be separated from City employment, unless an extension is approved by the City Manager, and except as otherwise restricted by state law.

Section 8.5 Management Leave
In lieu of earning overtime or compensatory time off, employee will be granted one-hundred twenty (120) hours of paid management leave each fiscal year. Management leave hours will be credited to the leave time account at the commencement of each fiscal year. Management leave must be used within the fiscal year in which it was earned, and unused leave will not be paid in cash or any other form of compensation upon separation from City employment.

ARTICLE 9: HOURS OF WORK, WORK PERIODS AND PAY PERIODS
Section 9.1 Standard Work Hours
The standard work assignment shall be eighty (80) hours in a two week pay period.

Section 9.2 Pay Periods
The work period (hours) for classifications and corresponding compensation will be 40 work hours in a 7-day work period, paid bi-weekly every 14 days. Time sheets are due to Payroll at the start of the day work shift the Monday following the close of the pay period on Sunday. City pay checks are available and distributed on the Friday following the close of a pay period.

Note: From time to time, Payroll deadlines for submittal of time sheets and actual pay day may be altered due to designated City holidays. Payroll will notify all employees in advance when these circumstances arise. The time sheet deadline may be adjusted as needed to meet City payroll deadlines. Employees required to estimate hours worked due to an early time sheet deadline shall do so based on an employee’s normally-assigned work schedule.

ARTICLE 10: SCOPE OF AGREEMENT
Except as otherwise specifically provided herein, this agreement fully and completely incorporates the understanding of the parties hereto and constitutes the sole and entire agreement between the parties on any and all matters subject to meeting and conferring laws.

Neither party shall, during the term of this agreement, demand any change therein nor shall either party be required to negotiate with respect to any other matter, provided that nothing herein shall prohibit the parties from changing the terms and conditions of this agreement by mutual consent agreement.

ARTICLE 11: TERM
Except as indicated herein, this agreement shall be effective commencing 01 July 2023 and continue through 30 June 2024.

IN WITNESS THEREOF, this agreement is entered into by the following authorized representatives this ___ day of ____________ pursuant to the provisions of CA Government Code Section 3500, et. Seq. for presentation to and adoption by the City Council of Clayton, California.

By:______________________________________
Richard McEachin, Police Chief

CITY OF CLAYTON, CA (CITY)
By:_______________________________________

# # # # # # # # #