The City is developing educational materials to pro mote the code enforcement process, aimed at ensuring residential compliance w ith city codes. Once completed, this information will be distributed in multiple languages and accessible at various locations throughout the City. Additiona lly, the City will provide annual updates on code enforcement cases received and acti ons taken through the APR.
H16: Housing
Rehabilitation
Prevent displacement of lower-income
homeowners, particularly seniors and
mobile home park residents, by providing
housing rehabilitation loans and grants to
250 lower-income households including
50 very-low and 50 extremely low-income
households during the planning period.
•Apply annually, or as
NOFAs are released, for
CalHome and CDBG funds
•Distribute program
information annually.
City Council annually receives federal Community De velopment Block Grant (CDBG) funds from the U.S. Department of Housing an d Urban Development, through its Annual Action Plan. A portion of the fu nds are utilized to fund the Home Rehabilitation and Repair Program. The CDBG Program provides up to $8,000 in grant funds to low-income homeowners to provide hom e repairs. The CDBG funded program is administered together with the Ca lHome Loan Program for those project that require additional funding.
In the 2023-2024 fiscal year, the City assisted 19 homeowners repair their homes through the Home Repair and Rehabilitation Program.
Program information is distributed at city-wide res ource fairs, at mobile home park offices and also online via the City’s Affordable H ousing webpage.
H17: Replacement
Housing Program
To mitigate the loss of affordable housing
units, require new housing developments
to replace all affordable housing units lost
due to new development.
•The replacement
requirement will be
implemented immediately
upon adoption of the
Housing Element and
applied as applications on
identified sites are received
and processed.
•Local policy shall be
adopted by June 30, 2025.
The replacement requirement went into effect upon a doption of the Housing Element. The City has not yet codified the requirem ent.
H18: Energy
Conservation
Improve quality of housing throughout the
city and support the State’s energy goals
by reducing energy consumption in
residential development, while helping
residents save money on housing costs.
The City’s CDBG and CalHome funded owner occupied h ousing repair programs both assist in providing Energy Efficiency Improvem ents for low-income households. During the reporting period 19 househol ds were assisted with money saving improvements such as: installation of energy -efficient windows, improvements to electrical systems, replacement of older air conditioning with newer energy-efficient models, and replacement of o lder water heather with newer energy-efficient models, among other repairs.
H19: Resources for
Special Needs
Households
Assist 100 extremely low-income
households to reduce displacement risk,
target outreach efforts in areas and
neighborhoods with higher rates of
poverty.
•Distribute outreach and
educational materials by
December 2024.
•
Provide annual updates on
code enforcements
received and actions taken
to abate through the
Housing Element Annual
Report.
The City has provided financial support in the amou nt of $1,481,281 through its Clovis Permanent Local Housing Allocation Fund to t he Clovis 135 Osmun affordable housing development for seniors. The de velopment also received a set- aside of $1,000,000 in Clovis Housing Trust Funds t o assist in the construction of the project. The project is intended to assist 46 h ouseholds.
The City provided $51,061 in CDBG Program funds to the Marjaree Mason Center, a local non-profit that provides services and housi ng to domestic violence survivors. Funding will assist up to 150 households with services, safety plans and group sessions; additionally, MMC would provide 75 case management sessions to clients seeking assistance with home stability a nd self-sufficiency.
The City also actively provides referrals for low i ncome households experiencing possible displacement through various networks incl uding the Fresno-Madera Continuum of Care’s Multi-Agency Access Point, a on e stop resource for those at risk of becoming homeless, as well as other local n on-profits that can provide housing and legal resources such as: Central Califo rnia Legal Services, Centro La Familia, Fresno Madera Area Agency on Aging and the Fair Housing Council of Central California.
H20: Housing Choice
Vouchers
Increase Housing Choice Voucher
participation and usage by 10 households
in highest resource neighborhoods.
#REF! In process.
H21: Analysis of
Impediments to Fair
Housing
Assess the City’s efforts to reduce
discrimination and enforce fair housing
laws throughout the city.
•Support expediting
applications on an ongoing
basis
•Review budget annually
•Provide financial support
annually, as available.
City staff will prepare an Analysis of Impediments to Fair Housing Choice as part of its regular Consolidated Plan renewal process for t he U.S. Department of Housing and Urban Development. The Consolidated Plan, and A nalysis, will be drafted in 2025 and published in early 2026.
H22: Distribute Fair
Housing Information
Distribute fair housing information
annually to all prospective home sellers,
landlords, buyers, and renters throughout
the city.
•Offer translated materials
by December 2024
•Continue to provide
information and refer fair
housing complaints on an
ongoing basis.
Fair Housing information is distributed at city-wid e resource fairs, at mobile home park offices and also online via the City’s Afforda ble Housing webpage. Housing Program information is provided in three languages: English, Spanish and Hmong.
The City actively provides information and referral s for low-income households experiencing housing discrimination to the followin g local non-profits: Central California Legal Services, Centro La Familia, Fresn o Madera Area Agency on Aging and the Fair Housing Council of Central Calif ornia. 552
AGENDA ITEM NO. 10.
H23: Fair Housing
Testing
Encourage FHCCC to conduct 8-10 fair
housing tests to understand local issues
of housing discrimination and ensure
compliance with fair housing laws, and
provide fair housing training
meetings/conferences.
•Conduct fair housing
testing in 2024
•Coordinate fair housing
training annually.
Fair Housing Testing is undertaken by the Fair Hous ing Council of Central California. In November 2024, City staff participat ed in the annual fair housing training provided by the Fair Housing Council of Ce ntral California and presented to attendees on programs provided by the City of Clovi s. Additionally, City staff regularly attends in person and online Fair Housing training to provide additional support to Clovis area residents. City staff will c ontinue to partner with the FHCCC to encourage fair housing testing in Clovis and pro vide assistance to FHCCC staff in the process as needed.
H24: Homebuyer
Assistance Program
Assist five households per year with
homebuyer assistance to support stability
and wealth building for lower-income
households.
•Annually pursue CDBG,
HOME, and other funding
opportunities to maintain
the Homebuyer Assistance
program.
•Begin work with HUD and
HCD to revise the program
limits annually if needed
due to local market
conditions.
The City administers a Homebuyer Assistance Program funded by $415,600 in CalHome Program funds. These funds are set aside sp ecifically for the purchase of mobile homes by low income residents, per HCD requi rements. The City also currently has HOME Program available which it inten ds to use for Homebuyer Assistance upon approval by HCD. The City received several applications for the CalHome program, during the reporting period, thoug h no loans were made due to applicants being over the income limits. Program li mits currently do not need to be updated.
H25: Multilingual
Outreach on Affordable
Housing Opportunities
Increase availability of information about
affordable housing opportunities and
programs. Conduct 8 workshops during
the planning period.
•Prepare outreach
materials in 2025
•Update annually as
necessary.
Housing Program information and outreach materials are distributed at city-wide resource fairs, at mobile home park offices and als o online via the City’s Affordable Housing webpage. Housing Program information is pro vided in three languages:
English, Spanish and Hmong. One workshop was held i n the reporting year in regards to funding opportunities.
H26: Actions to Address
Homelessness
Provide supportive services to the City’s
most vulnerable populations by providing
shelter, services and/or temporary
housing assistance for at least 76
persons.
•2023-2031
In the 2024-2025 fiscal year, the City provided $51 ,061 in CDBG Program funds to the Marjaree Mason Center, a local non-profit that provides services and housing to domestic violence survivors. Funding will assist up to 150 households with services, safety plans and group sessions; addition ally, MMC would provide 75 case management sessions to clients seeking assista nce with home stability and self-sufficiency.
H27: Neighborhood
Revitalization
Establish a capital-planning prioritization
process to optimize the use of available
resources for projects and guide an
objective methodology used to produce
equal and equitable outcomes,
particularly in relatively lower-income
neighborhoods and areas of higher
concentrations of persons with
disabilities. Aim to allocate about
$450,000 in CDBG funds for projects that
improve infrastructure, provide amenities,
or improve housing conditions in areas of
greatest need and target 1-2
improvements per year in relatively lower-
income areas.
•Annually review and
identify capital
improvement projects and
funding priorities.
•Pursue state and federal
grant funds annually.
In the 2024-2025 fiscal year, the City set aside CD BG funds for capital projects as follows: Santa Ana Avenue Sidewalk Improvements ($1 24,000) and the Holland/Richert Alley Improvements ($163,538). Thes e projects are located in low- income areas.
H28: Zoning Code
Amendments for Special
Needs Housing
Compliance with State law. •
Amend the zoning code by
December 2024.
This commitment was identified prior to the certifi cation of the Housing Element in December 2024, therefore, the City has yet to have a zoning code update to address these changes. The City has plans to retain the housing consultant to assist with this task in updating the code to be co mpleted within the 2025 calendar year.
H29: Farmworker
Housing
Support and incentivize development of
80 lower-income units for farmworkers
and their families. Particular focus will be
given to encouraging housing mobility by
facilitating development of farmworker
units in higher resource neighborhoods.
•Meet with farmworker
housing owners,
developers, and advocates
every two years starting in
Spring 2025 to discuss
their needs and offer
assistance in the form of
letters of recommendation
for grant applications,
assistance with site
identification and grant
opportunities, and discuss
incentives for constructing
farmworker housing.
•Annually review the
availability of funding
opportunities to provide
housing vouchers or other
forms of rental assistance
for farmworkers, and apply
for funding as opportunities
arise.
•Identify development
opportunities for
farmworker housing at
least twice in the planning
There are no farmworker housing developments in the City of Clovis. Regardless, the City will continue to seek out housing develope rs to develop farmworker housing as needed in the area, and assist them with identifying funding opportunities.City staff plans on holding an afford able housing programs workshop in Spring 2025 to discuss the housing needs of Farm workers and offer assistance for the development of affordable farmworker housin g.
553
AGENDA ITEM NO. 10.
Jurisdiction Clovis ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2024
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning 6th Cycle 12/31/2023 - 12/31/2031
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name +
Local
Jurisdiction
Tracking ID +
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
Table E - Commercial Development Bonus
554
AGENDA ITEM NO. 10.
Jurisdiction Clovis ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2024
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 12/31/2023 - 12/31/2031
The description should adequately
document how each unit complies with
subsection (c) of Government Code Section
65583.1
+.
For detailed reporting requirements, see the
chcklist here:
Extremely Low-
Income +
Very Low-
Income + Low-Income + TOTAL UNITS +
Extremely Low-
Income +
Very Low-
Income + Low-Income +
TOTAL
UNITS
+
https://www.hcd.ca.gov/community-
development/docs/adequate-sites-checklist.pdf
Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park
Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.
Activity Type
Units that Do Not Count Towards RHNA +
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at
[email protected] and we will unlock the form which enable you to populate these fields.
Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
Table F - Rehabilitated Units
555
AGENDA ITEM NO. 10.
Jurisdiction Clovis ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an
optional field
Reporting
Period 2024 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 12/31/2023 - 12/31/2031
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very Low-
Income Deed
Restricted
Very Low-
Income
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
Table F2 - Converted Units
556
AGENDA ITEM NO. 10.
Jurisdiction Clovis
Reporting
Period 2024
(Jan. 1 - Dec.
31)
Period 6th Cycle
12/31/2023 - 12/31/2031 ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in
the Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
Table G - Locally Owned Lands Sold, Leased, or Disposed of 557
AGENDA ITEM NO. 10.
Jurisdiction Clovis Note: "+" indicates an optional field Reporting
Period 2024
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
NOTE: This table must contain an invenory of
ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
For Fresno County jurisdictions, please format the APN's as follows:999-999-99XX Table H - Surplus Sites
558
AGENDA ITEM NO. 10.
Jurisdiction Clovis ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2024
(Jan. 1 - Dec.
31)
Housing Element Implementation
Planning
Period 6th Cycle
12/31/2023 - 12/31/2031
Project Type Date
2 3
APN Street Address Project Name +
Local
Jurisdiction
Tracking ID +
Unit Category
(SH - Student
Housing)
Date
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) App roved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government
Code65915(b)(1)(F)
Annual Progress Report January 2020
Table J - Density Bonus Student Housing
559
AGENDA ITEM NO. 10.
Jurisdiction Clovis ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2024 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 12/31/2023 - 12/31/2031
No
Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.
Notes
Table K
Tenant Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational.
Table K - Tenant Preference Policy
560
AGENDA ITEM NO. 10.
Jurisdiction Clovis
Reporting Year 2024 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.
Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes
Sixth Cycle Housing Element
Update $235,000.00 $241,250.00 None
The 6th Cycle Housing Element has received
conditional acceptance from HCD, the environmental
documentation has been completed, final public
hearings were conducted in October, and was
adopted by City Council on November 4, 2024. The
Housing Element identifies sufficient inventory to
meet and exceed the 6th Cycle RHNA requirement of
8,977 total units, which reflects an increase of
approximately 41% over the 5th Cyle. The Housing
Element includes quantified objectives for 8,977
units of new construction, 400 units of rehabilitated
housing, and 1,617 conserved/preserved units.
Affordable Housing Development
Project/ Strategy $70,000.00 $70,000.00 None
The City executed a contract with local non-profit
group Innovative Development and Living Solutions
of California – “IDLS” to develop strategies for
encouraging and accelerating affordable housing
projects. An analysis of housing needs and available
sites for affordable housing has been completed by
IDLS. Two opportunity sites were selected, and a
more detailed site analysis, program design, and
financial feasibility was completed for potential
affordable housing projects on these sites. Pre-
development planning has been completed for
approximately 291 affordable housing units. The next
steps are to evaluate the potential to transition the
analysis into actual projects and to format the
information to facilitate its use as a model for the
City and affordable housing partners relative to
evaluation of affordable housing project types and
feasibility.
Mixed Use District Designations $7,500.00 $7,500.00 None The City has amended its general plan and
development code to add student and faculty
housing in the mixed-use business campus general
plan designation and related zone district(s).
Amendments to the general plan and development
code resulted in the allowance of up to 1,750
campus-affiliated housing units to be developed
within area otherwise designated for a research and
technology park. To aid this process, neighborhood
meetings and public hearings were completed in the
spring. The stakeholders for Activity 3 ended up
being property owners within the area affected by
the existing mixed-use land use designation covering
the City’s planned research and technology park. A
second stakeholder group was comprised of owners
within the surrounding area that were concerned
about housing going in. A medical school desiring
campus-affiliated housing in the research and
technology park area was also a stakeholder. Two
meetings focused on the owners within the research
and technology park area were held, and four
additional community meetings were conducted to
hear concerns from the owners in the adjacent
neighborhood about housing going in. Comments
were considered during the preparation of the
General Plan and Development Code amendments
and, where appropriate, standards were modified to
address concerns. The City will review development
General Plan Consistency
Rezoning Program $12,500.00 $0.00 None
Activity 4 was intended to implement a rezoning
program to eliminate inconsistency between the
existing general plan designations and existing zone
districts for properties which are otherwise ready to
accommodate residential development. The
rezoning program would have removed the
requirement for owners and/or developers to go
through the rezoning process, reducing the time and
expense necessary to approve new residential
development projects. The changes to housing and
land use-law that were introduced through SB-330
removed the need for projects to undertake rezoning
applications when the residential project was
otherwise consistent with objective general plan
criteria. Therefore, the rezoning program
contemplated in conjunction with Activity 4 became
unnecessary. (The $12,500 budget for this activity
was redistributed to Activities 1 and 5, with final
costs for those activities being within 5% of their
original totals.)
VMT Implementation Guidelines $175,000.00 $181,250.00 None VMT implementation guidelines have been adopted.
During the preparation of the VMT guidelines, it
became apparent that amendments to the General
Plan circulation element to incorporate VMT
provisions would be appropriate, and that a
supplemental environmental impact report to
address these changes should be completed. This
work was done and has further helped to streamline
the City’s implementation of SB 743. At least 9
residential projects, creating at least 1300 residential lots, have been approved in reliance on VMT
evaluations based on the VMT implementation
guidelines. Projects proposing more than 2000
additional lots were considered at public hearings in
late 2024 or are scheduled for the first part of 2025.
Residential developers were the primary
stakeholders. Stakeholders were invited to review
draft work products and to participate in public
meetings to review the draft and final VMT
guidelines.
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Completed Entitlement Issued by Affordability Summary
Income Level
Completed
Completed
ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Completed
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable. 500,000.00$
Task Status
Completed
Completed
LEAP Reporting
561
AGENDA ITEM NO. 10.
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Current Year
Deed Restricted 0
Non-Deed Restricted 13
Deed Restricted 0
Non-Deed Restricted 13
Deed Restricted 0
Non-Deed Restricted 16
612
654
Current Year
Deed Restricted 0
Non-Deed Restricted 14
Deed Restricted 0
Non-Deed Restricted 9
Deed Restricted 0
Non-Deed Restricted 317
787
1127
Moderate
Above Moderate
Total Units
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
562
AGENDA ITEM NO. 10.
Attachment 3
Clovis 2024 APR: Assumptions on Affordability
Market Rate Multifamily
Table 1 shows the income limits and affordable monthly rents for moderate -income households in Clovis based on the 2024 Area Median Income (AMI) for Fresno County. Affordable rents are assumed to be 30 percent of monthly income. One- and two-person moderate-income households can generally occupy a one-bedroom unit, three-person households can generally occupy a two-bedroom unit, and four-person households can generally occupy a three-bedroom unit.
City staff researched rental listings that were available for multi-family rental units to determine if they are being rented at rates generally affordable to moderate-income households earning 120 percent AMI.
However, rental rates were not available for most multi-family rental units. Information was only available for one property, 1491 Alluvial Avenue, which had a rent of $2,591 for a 2 bedroom unit in an online listing, which is higher than the $2,374 maximum monthly gross rent. Where information was not available the City assigned multi-family units as moderate income, consistent with the assumptions in the City’s Sixth Cycle Housing Element.
Table 1 Affordable Rents for Moderate-income Households (120% AMI), Fresno County (2024) Household Size (Number of Persons)
1 2 3 4
Income Level $73,850 $84,400 $94,950 $105,500
Max. Monthly Gross Rent 1 $1,846 $2,110 $2,374 $2,638 1 Assumed as 30 percent of monthly income.
Source: CA Department of Housing and Community Development (HCD), 2024 Accessory Dwelling Units
Accessory dwelling units (ADUs) are small, often detached living quarters built on the same property as existing homes that are most often used as rental housing. ADUs tend to be smaller and therefore rented at lower prices. City staff assigned the affordability of ADUs to income categories consistent with following affordability assumptions are used in the City’s Sixth Cycle Housing Element:
30% Very low-income
30% Low-income
30% Moderate-income
10% Above moderate-income
The table below shows how City staff applied these affordability assumptions to the 44 ADUs that were issued building permits in 2024.
Table 2: Affordability Assumptions for ADUs
Income Level Building Permits Issued
Count Percentage
Very Low Income (0-50% AMI) 13 30%
Low Income (51-80% AMI) 13 30%
Moderate Income (81-120% AMI) 13 30%
563
AGENDA ITEM NO. 10.
Above Moderate Income (120+
AMI) 5
10%
TOTAL 44 100%
Single Family Homes
Building permits for single family homes in 2024 were assigned to the above moderate income RHNA based on the assumption that sale prices of new single family homes are generally only affordable to above moderate income households given the current interest rates.
564
AGENDA ITEM NO. 10.
TO: Mayor and City Council
FROM: Finance Department
DATE: March 17, 2025
SUBJECT: Provide Direction – 2025/26 Budget Priorities – Measure Y
Staff: Andrew Haussler, City Manager
Recommendation: Provide Direction
ATTACHMENTS: 1. Five-Year Financial Forecast through 2029/30
RECOMMENDATION
That the City Council provides direction on the 2025/26 Budget priorities and the use of projected Measure Y funds.
EXECUTIVE SUMMARY
The Five-Year Financial Forecast for the 2025/26 through 2029/30 period was presented to City Council on March 10, 2025. This management tool is updated and prepared each year to provide the City Council and City management with information on tre nds for the City’s long - term financial condition and is used as a basis for the development of the 2025/26 City Budget.
Staff is seeking input on budgeting priorities to allow staff to develop the 2025 /26 City Budget that aligns with the Community’s needs and expectations. Specifically, staff is seeking feedback on:
1. Service Levels
2. Staffing to Achieve Service Levels
3. Capital Investment (Facilities and Fleet)
4. Fiscal Sustainability Investments (Emergency Reserve and Fund Balance)
BACKGROUND
The Five-Year Financial Forecast for the 2025/26 through 2029/30 period was presented to City Council on March 10, 2025. This management tool is updated and prepared each year to provide the City Council and City management with information on trends for the City’s lon g- term financial condition and is used as a basis for the development of the 2025/26 City Budget.
Staff is seeking input on budgeting priorities to allow staff to develop the 2025 /26 City Budget that aligns with the Community’s needs and expectations. 565
AGENDA ITEM NO. 11.
With the passage of Measure Y , the City has a unique opportunity to invest in the Community .
Previous to this, the City was not afforded the opportunity to maintain the quality of life at a level the citizens desire and deserve, and service cuts would have been needed. Measure Y’s ballot language serves as a guiding principle in staff’s effort to meet community expectations in the 2025/26 budgeting process. The City estimates it will receive $26 million annually from Measure Y; however, this is approximate and subject to change should inflationary pressures continue to make resident s’ discretionary spending more restricted , creating major fluctuations in this revenue.
The Measure Y ballot language included the following goals:
1. Maintaining Public Safety
2. Keeping Clovis Safe & Clean
3. Retaining Small Businesses & Jobs
4. Protecting Local Drinking Water Sources
5. Repairing Streets & Roads
6. Addressing Homelessness
7. Maintaining Youth & Parks Programs
8. Other General Services
9. Spending Disclosure/Spent Locally
Staff would appreciate feedback on the following areas:
1. Service Level Priorities : Which city services should be prioritized in the 2025 /26 City Budget? Many of the goals of Measure Y were addressed in the scenario staff presented in the Five-Year Forecast. Are these the right goals for the first year of implementation?
The following services are areas that were previously presented by City Departments that proposed investing Measure Y funding for the 2025/26 Budget and included in the Five-Year Forecast:
GOAL 1: Maintaining Public Safety
GOAL 6: Addressing Homelessness
• Police – Restored Services, Proactive Policing
• Restoring Patrol/Specialty Units:
• Code Enforcement/Animal Services/Youth
Programs/Investigations/Traffic/Homelessness/Specialty Teams • Restoring Support Team
• Fire – Reduced Response Times, Improved Medical Care
• 1 Squad -or- 1 Engine Crew – Reduced Response Times
• Truck Replacement
• Restoring Support Team
• EMS Set-up/Implementation – Improved Medical Care
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GOAL 2: Keeping Clovis Safe & Clean
• Parks – A Doubling of Care
• Additional Tree Crew for Parks (Enhancing tree maintenance and care) • Project Funds for Repairs (Allocating funds for parks and facility repairs) GOAL 5: Repairing Streets & Roads
• Roads – Faster Maintenance & Safer Streets
• Additional Road M aintenance Crew (Expanding the team for more efficient repairs)
• Additional Investment in Traffic Units (Traffic Lights, Street Lights & Design) GOAL 7: Maintaining Youth & Parks Programs
• Supporting Youth & Senior Programs – Stronger Community • Increasing Programs/Classes to meet demand
GOAL 9: Spending Disclosure/Spent Locally
• Financial Accountability
• Providing for expense reviews and oversight
ALL GOALS: Support For All of the Above
• Facilities Assessment/Planning
• Support Services (IT, Personnel, Facilities, Fleet)
• Adequately funding critical reserves – Facilities/Fleet/Emergency Reserve
It is proposed that not all goals are being addressed with Measure Y funds at this time.
However, these categories have significant support from non-Measure Y resources.
2. Staffing Levels : Are there specific departments or services where staffing adjustments should be considered?
The following indicate the positions, and related equipment needs Staff recommended in the Five-Year Forecast. The objective is to begin implementation of the goals of Measure Y either directly, or as part of a city-wide system, to make the City the safest City in the Valley.
All costs indicated and proposed positions are sub ject to the budgeting process to determining fiscal cost and feasibility. The focus of this discussion is the FY25 -26 Budget year:
GOAL 1: Maintaining Public Safety
GOAL 6: Addressing Homelessness
Police Department Details:
Non-Sworn Professional Positions:
1 Animal Services Officer $130,000
2 Community Services Officers $260,000
1 Police Records Assistant $90,000
1 IT Technician (PD) $100,000
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Sworn Officer Positions
1 Youth Services Officer $230,000
1 Investigations Officer $230,000
1 SET Officer $230,000
1 Traffic Officer $230,000
2 Homeless Liaison Officers $460,000
1 FORT Team Officer $230,000
Police Department Total Cost: 5 Non-Sworn Professional positions, 7 Sworn Officer positions, and related vehicles/equipment. $2,000,000 also allotted for Radio Replacements. Total is $6,820,000
Note:
Alternate Dispatch Center Development ($2,050,000) is part of Development Impact Fee Account.
Fire Department Details:
Non-Sworn Professional Positions:
½ GIS Specialist $60,000
Sworn Positions:
Squad Option: (In Forecast)
6 Firefighters $1,230,000 and related Promotions
Engine Crew Option:
9 Firefighters $1,845,000
3 Captain Promotions $20,000
3 Engineer Promotions $30,000
Fire Department Total Cost:
Squad Option: $1,790,000 for above position s, vehicle s, and ALS set -up costs. Also includes Truck 41 Replacement for $1,800,000. Squad Option total is $3,920,000.
Engine Crew Option: $2,785,000 for above positions, vehicles, ALS set -up costs. Also includes, Truck 41 Replacement for $1,800,000. The new Engine Crew would u tilize a reserve fleet engine, in the future an additional engine purchase is needed and is estimated at $1,200,000. Engine Crew option total is $4,585,000, without the future additional engine purchase.
Note: Funds to purchase Fire Station 7 land is included in the Development Impact Fee Account.
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GOAL 2: Keeping Clovis Safe & Clean
GOAL 5: Repairing Streets & Roads
Public Utilities Department Details:
Parks – Additional Tree Crew
1 Senior Maintenance Worker $130,000
1 Maintenance Worker $100,000
Streets – Pavement/Pothole Crew
1 Senior Maintenance Worker $130,000
1 Maintenance Worker $100,000
Street Lighting & Traffic Signals
1 Senior Maintenance Worker $130,000
Information Technology Support
½ Information Technology Specialist $60,000 (other half to be Enterprise funded)
Public Utilities Department total cost: $ 760,000 for above positions and corresponding vehicles.
Planning and Development Services Department Details:
1 Engineering Technician $100,000 - Support Traffic Enforcement/Design 1 Staff Analyst $100,000 - Grant Writer for streets projects
Planning & Development Services total cost: $200,000 for above positions.
GOAL 7: Maintaining Youth & Parks Programs
General Services Department - Community Services Details:
1 Recreation Coordinator (Senior Services) $107,500
1 Recreation Specialist (Recreation) $107,500
General Services Department - Community Services total cost: $ 215,000 for above positions.
GOAL 9: Spending Disclosure/Spent Locally
Finance Department Details:
2 Accountants (1/2 Measure Y=1 Position) $125,000
1 Accounting Systems Technician (1/2 Measure Y=.5 Position) $50,000
Finance Department - total cost: $175,000 for above positions.
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ALL GOALS: Support Services
Provide needed support staff/services to achieve the above Measure Y goals.
Facilities – Maintain City Facilities
3 Assistant Building Technicians (1/2 Measure Y=1.5 positions) $165,000
Personnel & Risk Management - Support additional staffing 1 Personnel Technician (1/2 Measure Y=.5 position) $50,000
Information Technology - Support additional staffing
1 IT Manager (1/2 Measure Y=.5 Position) $100,000
Support Services in Various Departments – total cost $315,000 for above positions.
3. Capital Investment Level: Are the levels proposed below appropriate?
Facilities:
A facility assessment is underway which will result in a plan on addressing critical and long - term facility needs for the City to address Public Safety needs and related support services.
The Five-Year Forecast included reserving $5.0 million in Measure Y funding to address those needs in 2025/26, and it is proposed to continue this investment in future years.
Fleet:
The City has not been able to adequately fund fleet replacements for Public Safety vehicles for many years. It is now proposed that fleet replacements be fully funded, with a f ocus on Public Safety vehicles. The Five-Year Forecast included $5.15 million in Measure Y funding in 2025/26, and it is proposed to continue the investment in future years.
4. Emergency Reserves and Fiscal Sustainability: Are the levels of Reserves and General Fund Balance appropriate?
Emergency Reserve:
City Council has established a goal of maintaining an emergency reserve of 25% of General Fund expenditures. This fund is critical in managing significant economic disruptions and/or unexpected events. It also provides a critical foundation for the City to maintain borrowing capacity. The Five-Year Forecast included $3 million investment to reach 19.3% of General Fund Expenditures in 2025/26 and it is proposed to continue this investment in future yea rs to maintain at least a 20% emergency reserve.
Fiscal Sustainability/General Fund Balance:
This is the amount of funds available in the General Fund that is not allocated for use. This is critical to allow for cash flow management and ensuring the Ci ty can manage relatively small unexpected fiscal needs or revenue shortfalls. The Five-Year Forecast included $5.56 million General Fund Balance; this is 4.4% of General Fund expenditures in 2025/26 . It is proposed to maintain a similar percentage in future years. 570
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FISCAL IMPACT
The forecast and subsequent feedback provides a basis for staff to develop the 2025/26 Budget for City Council consideration.
REASON FOR RECOMMENDATION
Given the implementation of Measure Y , this process is of extreme importance and requires significant engagement from the Council, staff, and the community to reach the community’s goals.
ACTIONS FOLLOWING APPROVAL
Staff will gather comments from the Council to guide the preparation of the 2025/26 City Budget.
CONFLICT OF INTEREST
None.
Prepared by: Andrew Haussler, City Manager
Reviewed by: City Manager AH
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Five-Year
Financial Forecast
Through Fiscal Year 2029/30
Prepared March 2025
City of Clovis
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CITY OF CLOVIS
Five-Year Financial Forecast
Through Fiscal Year 2029/30
PREPARED BY:
Andrew Haussler, City Manager
Paul Armendariz, Interim Assistant City Manager
Jay Schengel, Finance Director
Susan Evans, Deputy Finance Director
Jose Cortez, Accounting Supervisor
Jose Reynoso, Senior Accountant
Ran Chan, Accountant
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CITY OF CLOVIS
FIVE-YEAR FINANCIAL FORECAST
TABLE OF CONTENTS
I. INTRODUCTION
A. Introduction, Executive Summa ry
& Analysis of Funds ............. 1-5
II. GENERAL FUND
A. Summary ................................................................................. 7-10 B. Financial Summary Spreadsheet ............................................... 11 C. Revenue Sp readsheets ......................................................... 12-13 D. Expenditure Sp readsheets .................................................... 14-15 III. ENTERPRISE, INTERNAL SERVICE & DEBT SERVICE FUNDS
A. Water Ente rprise.................................................................... 17-19 B. Sewer Ente rprise ................................................................... 21-23 C. Community Sanitati on Enterprise .......................................... 25-27 D. Transit Ente rprise .................................................................. 29-31 E. Planning and Development Services Enterprise ................... 33-35 F. Internal Service & Debt Service ................................................. 36 575
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INTRODUCTION
The Five-Year Financial Forecast through 2029/30 represents a continuing effort to analyze the City’s long-term fiscal condition based upon a reasonable set of economic and operational assumptions. It is an import ant management tool used by both the City Council and senior management to identify fiscal trends and issues which must be addressed to assure continued financial stability. The set of forecasts contained in this report is not a prediction of what will occur. Rather, this forecast is a snapshot in time and an approximate view of what could occur in the future if all the assumptions are realized. As with any foreca st or prediction, the assump tions and projections for the nearer years carry more certainty and confidence than for the years further into the future.
While the forecast has become a valuable management tool to examine the ever- changing fiscal conditions the City is faced with, we have also learned of its limitations.
The first few years of the forecast are a fa irly good indicator of coming events while the later years are subject to less certainty as actual economic conditions become known.
Also, the many financial and regulatory changes by the Federal and State governments, which require new program s and other unanticipated expenses and adjustments can have a dramatic financial impact to the City’s revenue and expenditures. Despite these challenges, staff is committed to providing the best projections for these years based upon what is known at the time in order to reveal trends in both revenue and expenditure growth or decline, while staying abreast of local, state and national economic conditions and policies that will impact the City’s financial health.
The report reviews actual financial performance over the past three years, determines an estimated financial performance for the current year, and projects financial performance for the next five years. All the forecasts are based upon a specific set of assumptions that are utilized throughout t he report and identified with each forecast. In addition, the report contains a mid-year review for the current fiscal year.
The report is presented to initiate discussion that will ultimately result in policy guidelines for the development of the 2025-26 Annual City Budget a nd the Five-Year Community Investment Program and budgetary planning for future years. This forecasting tool has proven useful for examining spending policies which have resulted in the City’s ability to live within its means, provide for important programs and adequate service levels for the growing community, and begin to set aside re serve funding for major capital investment in public facilities.
On November 5, 2024, the voters of Clovis approved Measure Y, a 1¢ sales and use tax to be implemented on April 1, 2025. It is estimated that the measure will provide $26 million annually in revenue to the General F und in the Forecast. This amount has been reduced from the Measure’s original estimate of $28 million due to more recent 1 578
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information that shows a softening in taxable sales. The measure shall maintain:
9-1-1 emergency medical, police, fire and paramedic response, fire protection, police patrols;
keep public areas safe and clean;
retain local small businesses and jobs;
protect local drinking water sources;
accelerate repairs to streets and roads;
address homelessness;
maintain youth, parks and other general services.
At present, staff is working on an investment plan that will meet these needs and ensuring an oversight committee is established for accountability and transparency. The forecast includes estimated revenues and expenditures to begin the initial investments in meeting the top funding priorities set out by several community input surveys.
In 1986, Fresno County voters passed Measure C, a half-cent sales tax that improves the overall quality of Fresno County’s transportation system, including the County and all its 15 cities. In November 2006, Fresno County voters chose to extend Measure C for an additional 20 years through 2027. At present, Fresno County’s current half-cent sales tax Measure C will expire in 2027 resulting in a si gnificant loss of revenue which will impact several City departments. These funds help to fund the design and construction of many street, pedestrian, and bicycle improvements throughout the City each year. Additionally, the funds are used to leverage grant funding, including grant match requirements. Finally, the funds sustain the operation of the City’s Transit program. If the Measure C renewal effort is unsuccessful, the City will have to make some very hard decisions regarding the projects and services currently being completed and provided. The impact of the loss of Measure C sales tax would be significant to Clovis but the loss of revenue has not been reflected in this year’s Forecast in fiscal year’s 2027/28 and beyond, as there is still time for Fresno County voters to pass an extension on Measure C.
EXECUTIVE SUMMARY
The current Five-Year Financial Forecast is a shift from recent years in the General Fund.
Last year’s forecast projections indicated th at there may not be sufficient resources to maintain current operations or increase staffing to meet the growing demand for services at established levels, even if revenues meet expectations. With the passage of Measure Y on November 5, 2024, this additional 1¢ sales tax has provided an enormous opportunity to the City from our citizens, to ensure that we not only remain financially stable, but maintain services to meet the community’s needs and key priorities.
The City’s Staffing for Adequate Fire and Emergency Response (SAFER) grant, which funded the hiring of additional fire fighters in May 2021 for Fire Station 6, ended last year.
From that point forward, the General Fund has incurred t he additional cost of the nine firefighters – approximately $1.5 million annually. In December 2023, the City partnered 2 579
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with the City of Fresno to apply for the Organi zed Retail Theft Prevention grant from the Board of State and Community Corrections (BSCC). Clovis received approximately $6.0 million for a three-year period to cover five police officers and one police service officer to address increasing retail theft crime in the City. The BSCC grant will end in 2026/27.
From that point forward, the General Fund will incur the additional cost of the six new police positions – approximately $1.2 million annually.
The Five-Year Forecast for the General Fund shows that revenues are growing faster than expenditures over the five-year period. This is largely attributable to the Measure Y sales tax to be implemented on Ap ril 1, 2025. It is estimated to come in annually at approximately $26 million per fiscal year in addition to the City’s Bradley Burns sales tax.
As a result of this new revenue source, each forecasted year ends with a positive fund balance. Additional items that were not able to be funded last year are receiving transfers such as Housing, Government Capital Facilities, Fleet and building the Emergency Reserve to 20% of expenditures. This is a significant reversal of what the City was faced with this time last year when the potential for cutting services was a reality in the near future with deficits forecasted.
The Budget Hearing process begin with a thorough review of the Departments and needs to maintain the Clovis Way of Life. The process will continue with additional input hearings to build the investment plan for the City. This will be a critical process as there is only one opportunity to set up the use of Measure Y Funds to reach the previous mentioned goals and ensure fiscal sustainability.
The Water Enterprise Fund forecast maintains adequate but declining reserves with annual 3% rate increases that have been adopted and are included in each year of the forecast. The forecast also includes continued contributions to the reserves for drought contingency and for the Sustainable Groundw ater Management Act (SGMA) through 2029/30. In 2020/21, there was a $5 million down payment as required by the Firm Water Supply Agreement with the Fresno Irrigation District (FID). The remaining balance of $30 million will be paid by development impact fees in future years. The forecast includes an interfund loan of $7.5 million in 2021/22 from the Trichloropropane (TCP) reserves to General Services to fund the construction of Fire Station 6, and annual loan repayments for ten years that began in 2022/23. This loan will not affect t he City’s ability to treat for TCP during the term of the loan. A water rate study is currently in progress and is expected to be completed in the 2025 cale ndar year with a goal of ensuring adequate revenues to operate the water system.
The Sewer Enterprise Fund forecast maintain s stable reserves throughout the forecast period. Beginning in 2025/26, a 3% rate increase is included in each year of the forecast period to keep up with rising operating, maint enance, and capital costs, and to maintain a sufficient fund balance for future bonding capacity. An interfund loan is shown beginning in 2026/27 of the fo recast because it is projec ted that the collection of development impact fees for Sewer Major Faci lities will be insufficient to cover the debt service payments. However, there are sufficient funds in the bond charge fund balance collected in prior years to continue the fu ll $7.30 per month rebate to customers until 3 580
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2028/29. The ability to continue to rebate funds back to ratepayers will be monitored closely throughout the forecast period.
The Community Sanitation Fund will experience a decline in reserves in this forecast due to increased personnel costs, fleet renewal charges and anticipated adjustments to the recycling and organic contracts. A 4% annual increase, or portion thereof, was approved by City Council in November 2004 to be impl emented as necessary. For Refuse, a 4% rate increase is projected annually for the forecast period. To keep pace with the recycling and green waste contract incr eases, the approved 4% annual in crease is projected for these operations. Additionally, a 4% rate incr ease is projected annually for the forecast period for street cleaning.
The Transit Fund reflects enough revenues throughout the forecast period to support its operational and capital needs because of incr eased revenues from the Transportation Development Act, which includes Local Tr ansportation Funds (LTF) and State Transit Assistance (STA) funds allocated to Trans it based on population, taxable sales, and transit performance. Project- specific funding, including SB1 and various cap-and-trade grants, are used for capital expenses for e nhancement of rider amen ities. The State’s Transit and Intercity Rail Capital Program (TIRCP) will assist in funding for land purchase to build a Transit Operations Center, which will include infrastructure to support zero- emissions mandates. Transit began receiving federal funding in 2024/25, which will provide further support for operations. With funding for Transit constantly in flux, and the Measure C sales tax due to expire after 20 27, the types and levels of funding will be closely monitored to make any necessary adj ustments to current service levels should the need arise. Beginning with the 2017/18 fiscal year, the Transit Fund was required to defer revenue that it had received but not yet spent. Any working capital that is required to be deferred can be seen on the Transit F und forecast on the line labeled “Deferred Revenue.”
The Planning and Development Services Ente rprise Fund forecast maintains stable reserves throughout the forecast period. The reserves are included in case of a slow- down and prudent funding is ma intained to absorb developm ent declines. There have been several years of relatively high numbers of residential unit s per year; however, starting in 2021/22, those numbers have declined from the most recent three-year average of 709 units. As a result, the prior th ree fiscal years have drawn from the fund’s working capital but will increase working c apital in the current and projection years beginning in 2024/25, with an anticipated steady increase in residential units. The fund maintains a healthy working capital balance annually through 2029/30.
Internal Service Funds are projected to be self-balancing throughout the forecast period.
Each of the Internal Service Funds is co ntinually monitored, and more cost-effective programs are implemented wherever possible to reduce costs to all other City operations.
Debt Service Funds will be fully funded to make all debt payments and meet all legal obligations.
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ANALYSIS OF FUNDS
The purpose of this forecast is to prov ide the City Council and senior management with an early identification of financial trends. With early detec tion, financial trends identified as possible problems can be dealt with in a reasonable manner rather than waiting for a crisis to occur.
The City’s Annual Budget represents a total financing plan for all City operations and must be analyzed by its component par ts to make any meaningful adjustments. Unlike a private holding company, the City cannot remove cash from any one enterprise operation to help support general tax funded operations. Although there is certainly some financial interdependence between the funds, such as inte rnal service fund charges to allocate common costs, each fund represented in the budget must stand alone.
When analyzing City operations, it is appropriat e to look at the budget department by department. However, when reviewing long range fina ncial policies, it is best to look at the fund structure rather than the department structure. The major fund groups reviewed in this forecast are the operating funds of the City, including:
General Fund - This fund includes the functions of general government, including elected officials, administration and finance, public safety, and some field maintenance activities, such as parks, street lighting, and street maintenance.
Enterprise Funds - These funds include operations for water, sewer, solid waste, street cleaning, transit, and planning and development services.
Internal Service Funds - These funds include property and liability insurance, employee benefits, fleet maintenance, and general services.
Debt Service Funds - These funds include all debt servic e activity for which the City is responsible.
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GENERAL FUND
Current Year – 2024/25
The 2024/25 Annual Budget was not able to meet the operational needs of the City and address backlogs from previous years. This put into question if the City could maintain the service levels residents deserve, and have come to expect, as the 5-year Financial Forecast showed General Fund deficits in the near term. This prompted th e consideration of a revenue measure to address the funding shortfall and enable the City to maintain the Clovis Way of Life. Measure Y was passed in the 2024 General Election and provides a tool to enable the City to maintain the Clovis Way of Life. Bas ed on current estimates, revenues are currently projected to be approximately $2. 4 million above expenditures for fiscal year 2024/25. This is attributable to Measure Y, otherwise, the General Fund would have been operating at a deficit.
General Fund revenues are projected to exceed t he current fiscal year’s working budget by $6.3 million. This significant increase in revenues is due to the additional sales tax from the passage of Measure Y on November 5, 2024. This additional lo cal 1¢ sales tax is to be implemented on April 1, 2025 and estimated at $26 million annually. The additional sales tax for 2024/25 will be for one quarter at an estimat ed $6.3 million. Althou gh there was other revenue increases projected for this current year, most of those increases are being offset by a significant decrease to the original Statewide Bradley Burns sales tax receipts received from the State’s 7.25% base, of whic h 1% is allocated to the City’s General Fund. Since the quarter ending June 2022, Bradley Burns sales tax revenue has been declining 8 out of the last 10 quarters compared to the same period in the prior year. Sales tax revenues for fiscal year 2024/25 are currently 4.5% less than the prior year’s receipts. Bradley Burns sales tax revenues have been reduced by $2.1 million in the current year based on this trend. State reimbursements for wildfires are coming in with an additional $1.7 million over working budget largely due to the Los Angeles wildfires. Proper ty taxes are projected to be flat from working budget along with card room and franchise fees. The City was awarded a Police grant for $6.0 million to fund five police officers and a police se rvice officer. $2.2 million of this grant was projected for the current year. All additional grant revenues projected are offset with corresponding additional expenditure increases in salaries, benefits, and overtime.
General Fund expenditures are proj ected to exceed the current fi scal year’s council approved budget by approximately $3.5 milli on. These increases are due to the addition of a Senior Services Supervisor position along with several other budget amendments in the category of services, materials, and supplies. Of the serv ices, materials, and supplies, $1.6 million is for attorney fees related to the housing settlement agreement, which was covered by the City’s emergency reserve. In addition, the Fire Departm ent’s callout overtime has increased by $1.2 million due to their increased partici pation in the State’s wildfires. In summary, this leaves the General Fund operating budget projected at a surplus of $2.4 million for the current fiscal year.
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Forecast Years – 2025/26 through 2029/30
Revenues
Property taxes and sales taxes are the two largest sources of discretionary revenue making up 85% of the total discretionary revenues on av erage; franchise fees, business licenses, and transient occupancy taxes make up most of the remainder. Property tax growth is largely driven by growth in the City. When residential, commercial, or industrial growth occurs, there is a corresponding increase in the demand for servic es. However, the in crease in property tax revenues to support the additional demand for serv ices will not be received by the City until potentially two years after the gr owth occurs. In addition, the pr operty tax rate cannot exceed 2% growth annually due to Proposition 13 statutory limitations. Property tax growth during the forecast period is projected to increase at a rate corresponding to the 15-year average of approximately 800 single and multi-fa mily residential units. The forecast does not project a prolonged housing downturn because t hose are difficult to anticipat e. However, if one was to occur, this would result in property tax growth being lower than forecasted.
Sales Tax is projected to experience an al most doubling of funds due to the passage of Measure Y on November 5, 2024 which will be impl emented on April 1, 2025. This additional local sales tax will supplement the Statewide 1% Bradley Burns sales tax. The City’s Bradley Burns was experiencing the first reduction in growth in 2022/23 since the Great Recession.
Prior to the 2022/23 fiscal year, the City experienced robust growth in 2020/21 and 2021/22 totaling 36%, which is unprecedented. Sales tax is now declining due to inflationary pressures on households, shifting household dollars away from discretionary spending as a larger portion of income goes to essentials such as non-tax able food, transportation, and housing costs. For the remaining projected years, and with the additional revenue fr om Measure Y, sales tax is expected to experience normalized growth at 3% annually with population growth at 750-800 residential units per year.
Growth in franchise taxes is largely due to el ectricity rate increases. As more households move away from traditional hard-wired phone and cable TV service towards cellular and satellite services which are not taxed, there is a decline in franchise taxes for these services.
All other discretionary revenues are forecast to increase at average growth plus inflation based on the Pacific Cities Consumer Price Index for December 2024 of 2.5%.
Expenditures
With the passage of the City’s local sales tax Measure Y, several departments are expected to grow significantly, for all projected five years, to continue supporting the Clovis Way of Life and address top priorities surveyed fr om our residents. These priori ties include maintaining 9-1-1 emergency medical, police, fi re and paramedic response, fire protection, police patrols; keeping public areas safe and clean; retaining local small businesses and jobs; protecting local drinking water sources; accelerating repairs to streets and roads; addressing homelessness; maintaining youth, parks and other general services. This includes remaining financially stable by increasing our emergency reserve, building a stable fund balance, and setting aside funds for future fleet and facility needs. Department s will see considerable allocations over the projected five-year period in the specific cat egories of Staff, Fleet, and Capital purchases.
These estimated expenditures have been allocated to the following departments as follows for the forecasted years: Public Sa fety is anticipated to receive 65 new positions at an estimated 8 587
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cost of $48 million over the five-year projected period, Fleet - $18 million, Capital - $5.5 million; Public Utilities is expected to receive 16 new positions at an estimated cost of $9 million; Fleet - $550,000 and other General Gove rnment Departments will receiv e approximately $8 million over the five-year projected period.
Measure Y sales tax begins im plementation on April 1, 2025. The City has estimated to receive $26 million annually, however, these f unding amounts are approximate and subject to change should inflationary pressures continue to make resident’s discretionary spending more restricted creating major fluctuat ions in this revenue. The Cit y will continually monitor these funds and make changes to our spending plan, as the need arises.
Public Employment Retirement System (PERS)
PERS costs are projected to continue to rise signi ficantly during the forecast period due to the market volatility of investment returns for the PERS investment portfolio. PERS did outperform its expected rate of return of 6.8% (discount rate) for its 2023/ 24 investments with a 9.3% rate of return, a notable improvement from the two most recent years of -6.1% and 5.8% in 2021/22 and 2022/23, respectively. Like all investments, they are influenced by a variety of economic and geopolitical challenges. At this point, the full impact of t he investment fluctuations has not been determined, however. The following chart shows the expected General Fund PERS costs, both as a percentage of salary and in dollars, for the forecast period.
As can be seen in the chart, annual General Fund PER S costs are projected to rise by approximately $5 million bet ween the current year and the end of the forecast period. The impact of the PERS costs associated with salaries is significant; those costs as a percentage of Miscellaneous salaries remain fairly constant at about 30%, while the percentage of costs for Safety continue to increase from the current 58%.
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Approach to the Forecast
The Five-Year Financial Forecast represents staff’s best estimate of the City’s finances for the next five years and will be the basis on which the budget is developed. The forecast is structurally sound. Major increases to revenues such as extraordinary commercial growth, are not currently realized at this time so they were not considered in the development of the forecast. Measure Y will begin being collected on Ap ril 1, 2025. The Departments developed their 5-year implementation pl ans for the use of Measure Y funds. These investments are included in the forecast but not everythi ng was able to be included to maintain fiscal sustainability. This required so me identified needs to be excluded in the forecast but remain as goals to achieve if funding becomes available.
Growing Demands
The City continues to grow, and in recent year s, it has grown fast er than the long-term average. The growth drives some revenue growth, but it also drives a growing demand for services. Last fiscal year, Police and Fire comp rised the largest expenditures in the General Fund at 87% of the City’s discretionary rev enues and are most impacted by this growing demand. Measure Y will allow for the City to grow services back to a level residents deserve and have come to expect. In order to be as effect ive as possible, staff will continue to evaluate different ways of delivering services using technology, social media, and best practices. Failure to grow these departments, as well as other General Fund departments at a rate corresponding to the growth of the City, will dimi nish the Clovis Way of Life we have all come to enjoy and expect.
The Forecast shows that Clovis is on a sustainab le fiscal path with substantial opportunities to invest wisely to build up the foundation for main taining a high-quality co mmunity. This is a significant shift from just a year ago wher e the City was facing forecasted deficits and corresponding service cuts. It is imperative that the City invests all resources wisely and not return to the previous precarious fiscal condi tion that threatened the Clo vis Way of Life. The City’s revenue streams have varying degrees of dependency on economic conditions, with sales tax including Measure Y, currently being the most exposed to this dependency and volatility. Preparing for downturns and implement ing strategic investment plans with strong fiscal support is crucial for the City to we ather an economic downturn or disruption and maintain the Clovis Way of Life as the community grows.
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AGENDA ITEM NO. 11.
CITY OF CLOVIS
General Fund Financial Forecast - Summary
(dollars in thousands)
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Beginning Available Fund Balance 1,280 8,420 8,060 4,460 5,340 5,560 6,750 4,260 3,330 Reappropriation/Encumbrances (790) 230 (450) (1,620)
REVENUES
Discretionary 73,630 76,290 79,840 88,260 112,000 115,770 120,010 124,390 128,930 Non-Discretionary 30,170 23, 340 24,880 29,020 27,670 27,000 26,710 27,450 28,200 Total Revenues 103,800 99,630 104,720 117,280 139,670 142,770 146,720 151,840 157,130
EXPENDITURES
Public Safety 63,300 72, 210 77,460 84,580 92,520 97,500 104,330 107,550 110,910 Public Utilities 11,000 12,400 13,060 14,870 15,930 16,990 17,690 18,210 18,680 General Government 9,660 10,700 11,800 15,480 15,500 15,850 16,120 16,740 17,020 Total Expenditures 83,960 95,310 102, 320 114,930 123,950 130,340 138,140 142,500 146,610 Resources Above/(Below) Operating Expenditures 19,840 4,320 2,400 2,350 15,720 12,430 8,580 9,340 10,520
ADDITIONAL ITEMS
Transfers Out to Housing Trust 0 0 0 0 (2,000) (100) (100) (100) (100) Transfers Out to General Government Facilities Fund (5,550) (2,020) (2,580) (1,130) 00 (1,000) (1,000) (1,000) Transfers Out to PDS/Projects (310) (300) (370) (350) (350) (350) (350) (350) (350) Transfers Out to Fleet Fund (3,010) (990) (1,000) 0 (5,150) (3,690) (3,020) (3,920) (2,350) Total Additional Items (8,870) (3,310) (3,950) (1,480) (7, 500) (4,140) (4,470) (5,370) (3,800) Net Increase/(Decrease) to Fund Balance 10,970 1,010 (1,550) 870 8,220 8,290 4,110 3,970 6,720
OTHER ITEMS
(Use of)/Addition to Measure Y Balance (Capital Needs) 0 0 0 0 5,000 5,000 5,000 4,000 4,000 (Use of)/Addition to Emergency Reserve 3,040 1,600 1,600 (1,630) 3,000 2,100 1,600 900 800 Total Other Items 3,040 1,600 1,600 (1,630) 8,000 7,100 6,600 4,900 4,800 Ending Available Fund Balance 8,420 8,060 4,460 5,340 5,560 6,750 4,260 3,330 5,250 Measure Y Balance 000 0 5,000 10,000 15,000 19,000 23,000 Emergency Reserve Balance 19,400 21, 000 22,600 20,970 23,970 26,070 27,670 28,570 29,370 Emergency Reserve as a % of Expenditures 23.10% 22.00% 22.10% 18.20% 19.30% 20.00% 20.00% 20.00% 20.00%
PROJECTEDESTIMATEDACTUALS
General Fund Summary 3/3/2025 3:14 PM
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AGENDA ITEM NO. 11.
CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)
REVENUES ESTIMATED
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Residential Units (SF + MF) 859 658 610 700 750 800 800 800 800 Discretionary
Property Taxes
18,230 19,890 21,510 23,010 24,780 25,470 26,510 27,560 28,630 Property Tax In Lieu-VLF 11,900 12,910 13,880 14,680 15,310 15,980 16,680 17,410 18,180 Sales Tax - Bradley Burns 30,640 29,720 29,020 28,260 29,110 29,980 30,880 31,820 32,770 Sales Tax - Measure Y 0 0 0 6,360 26,190 26,980 27,790 28,620 29,480 Franchise Fee 2,770 2,950 2,950 3,100 3,180 3,290 3,400 3,510 3,630 Business License Tax 4,000 4,120 4,680 5,060 5,460 5,900 6,370 6,880 7,430 Other Taxes 5,780 6,040 7,020 7,090 7,270 7,450 7,640 7,830 8,030 Interest 40 400 510 450 450 460 470 480 490
Other Revenues-Discretionary 270 260 270 250 250 260 270 280 290 Total Discretionary 73,630 76,290 79,840 88,260 112,000 115,770 120,010 124,390 128,930 Non-Discretionary
Community Facility Fees 2,170 2,680 3,230 3,520 3,760 4,020 4,290 4,560 4,840 Sales Tax-Public Safety 470 520 500 470 480 490 500 520 530 Licenses & Permits 60 70 60 80 80 80 80 80 80
Fines & Forfeitures 190 260 190 200 200 200 200 200 200 Building Rentals 50 50 80 100 100 100 100 100 100
State Subventions-Gas Tax 1,580 1,780 2,020 2,850 2,890 2,920 2,950 2,980 3,010 Grants 3,900 3,110 3,390 5,080 3,030 1,670 660 660 660
From Other Agencies 620 880 850 840 860 880 900 920 940 Current Services 1,640 2,280 2,070 2,500 2,570 2,630 2,700 2,770 2,840 Landscape Maintenance Charges 4,270 4,650 4,960 5,790 5,940 6,090 6,240 6,400 6,560 Other Revenues-Non Discretionary 8,780 410 550 450 470 480 490 500 510 Impact/Rental Fees 1,830 1,870 1,960 2,040 2,090 2,140 2,190 2,240 2,300 Admin Charges 4,610 4,780 5,020 5,100 5,200 5,300 5,410 5,520 5,630 Total Non-Discretionary 30,170 23,340 24,880 29,020 27,670 27,000 26,710 27,450 28,200 Total Revenues 103,800 99,630 104,720 117,280 139,670 142,770 146,720 151,840 157,130
ACTUALS PROJECTED
General Fund 3/4/2025 4:46 PM
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AGENDA ITEM NO. 11.
Revenue Assumptions (dollars in dollars)
PROPERTY TAXES:
2.00% $352,000,000 18.81% of 1%
Increase in Assessed Value above is based on 750 residential units Nonresidential Units based on % of Residential Units is 23%
PROPERTY TAX IN LIEU-
VEHICLE LICENSE FEES (VLF): INCREASE BY ASSESSED VALUE GROWTH 4.30% (Based on 750 units) SALES TAX: CURRENT CPI
2.50% 1.00% 2,000 PER YEAR $242
COUNTY SHARE: 5.00% OF GROSS SALES TAX (Based on 750 units) 2025/26
SALES TAX GROWTH %: PROJECTED 3.0%
FRANCHISE FEE: CURRENT NEW RES UNITS FEE PARTICIPATION % P G & E CPI PER YEAR OF GROSS 50.00% Comcast/AT&T $250 Per Unit per Mo
2.50% 750 1.00% $90 Per Unit per Month
Note: 5 year average for residential units is 900, 10 year average is 927, 15 year average is 808 units BUSINESS LICENSE TAX: 2.50% INCREASE BY CURRENT CPI NEW BUSINESSES 5.50% OTHER TAXES: Includes Transient Occupancy Tax, Cardroom Fees, and Real Property Transfer Tax
2.50% INCREASE BY CURRENT CPI
INTEREST RATE: 3.00% ON PRIOR YEAR'S BALANCE
OTHER REVENUES: 2.50% INCREASE BY CURRENT CPI
COMMUNITY FACILITY FEE: 500 ANNUAL FEE: $294 CURRENT CPI: 2.50% SALES TAX-PUBLIC SAFETY: PROPOSITION 172 - HALF CENT SALES TAX FOR PUBLIC SAFETY - ESTIMATES PROVIDED BY CONSULTANT LICENSES & PERMITS: 2.50% INCREASE BY CURRENT CPI
FINES AND FORFEITURES: PARKING AND VEHICLE $213,000 BASED ON THREE YEAR AVERAGE BUILDING RENTALS: 2.00% ANNUAL INCREASE
STATE SUBVENTIONS: GAS TAX
PER CAPITA $16.00 2,000 PER YEAR (Based on 750 units)
Gas Tax Per Capita based on last year actuals
GRANTS: $660,000 CURRENT AVERAGE OF ONGOING GRANTS
FROM OTHER AGENCIES: 2.50% INCREASE BY CURRENT CPI
CURRENT SERVICES: 2.50% INCREASE BY CURRENT CPI
LANDSCAPE MAINTENANCE
CHARGES: 2.50% INCREASE BY CURRENT CPI
IMPACT/RENTAL FEES: BASED ON ADD'L ROUTES PROJECTED IN THE ENTERPRISE FUND AND INCREASE BY CURRENT CPI ADMIN CHARGES: 2.00% ANNUAL INCREASE
CITY TAX RATE (Before reductions)
SALES TAX RATE POPULATION GROWTH PER CAPITA PER YEAR
ANNUAL INCREASE INCREASE IN ASSESSED VALUE
POPULATION GROWTH
2/3 OF NEW RESIDENTIAL UNITS:
General Fund 3/3/2025 3:16 PM
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AGENDA ITEM NO. 11.
CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)
EXPENDITURES ESTIMATED
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
PUBLIC SAFETY
Salaries
Police - Sworn 9,820 11,720 12,880 14,380 15,490 16,900 17,810 18,760 19,740 Fire 6,810 7,640 7,350 7,670 8,430 9,470 9,660 9,860 10,060 Public Safety - Management 3,860 4,330 4,340 4,150 4,250 4,340 4,430 4,520 4,610 Police - Non Sworn 3,890 4,250 4,240 5,040 5,440 5,970 6,440 6,720 6,930 Fire - Non Firefighters 300 340 360 440 520 660 820 840 920 Overtime
Overtime - Police 3,090 3,340 3,670 3,740 3,830 3,930 4,030 4,130 4,230 Overtime - Fire 2,800 2,620 2,870 3,370 2,190 2,240 2,300 2,360 2,420 Extra Help 820 1,130 1,470 1,440 1,440 1,440 1,440 1,440 1,440 Benefits
Health 3,640 3,830 4,220 4,670 5,280 6,060 6,650 7,230 7,830 Retirement 10,510 12,400 13,270 15,070 15,330 16,900 17,750 19,170 19,600 Other 3,650 4,300 4,610 5,050 5,200 5,300 5,410 5,520 5,630 Services, Materials & Supplies 13,490 15,530 16,890 18,550 24,170 23,310 26,590 25,970 26,450 Capital Outlay 620 780 1,290 1,010 950 980 1,000 1,030 1,050 Total Public Safety 63,300 72,210 77,460 84,580 92,520 97,500 104,330 107,550 110,910
PUBLIC UTILITIES
Salaries 2,400 2,780 2,940 3,300 3,750 4,250 4,480 4,570 4,660 Overtime 130 130 130 130 130 130 130 130 130
Extra Help 30 40 0 0 0 0000
Benefits
Health 530 550 640 750 900 1,080 1,200 1,280 1,370
Retirement 510 540 580 710 790 860 920 990 1,000
Other 320 280 270 300 350 410 440 450 460
Services, Materials & Supplies 7,020 8,040 8,430 9,600 9,950 10,200 10,460 10,720 10,990 Capital Outlay 60 40 70 80 60 60 60 70 70
Total Public Utilities 11,000 12,400 13,060 14,870 15,930 16,990 17,690 18,210 18,680
GENERAL GOVERNMENT
Salaries 3,730 3,830 4,080 4,490 5,040 5,140 5,240 5,340 5,450 Overtime 50 10 10 20 20 20 20 20 20
Extra Help 440 610 650 780 860 860 860 860 860
Benefits
Health 660 660 670 750 870 930 1,000 1,070 1,140
Retirement 830 850 940 1,110 1,350 1,210 1,250 1,350 1,350 Other 270 290 310 340 380 400 420 450 500
Services, Materials & Supplies 3,680 4,420 4,930 7,910 6,890 7,200 7,240 7,560 7,610 Capital Outlay 0 30 210 80 90 90 90 90 90
Total General Government 9,660 10,700 11,800 15,480 15,500 15,850 16,120 16,740 17,020 Total Expenditures 83,960 95,310 102,320 114,930 123,950 130,340 138,140 142,500 146,610
ACTUALS PROJECTED
General Fund 3/3/2025 3:16 PM
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AGENDA ITEM NO. 11.
Expenditure Assumptions (dollars in thousands)
SALARIES: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 POLICE-CPOA 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00% SALARY BASE $14,380 $14,740 $16,080 $17,940 $19,230 $20,350 Additional Officers-Salary $0 $1,020 $1,510 $910 $720 $660 Number of Additional Officers 3 7 10 5 5 5
Additional Non-Sworn Positions 0 4 6 5 2 1
Total Sworn Officer Positions 125 132 142 147 152 157
FIRE 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00% SALARY BASE $7,670 $7,860 $8,670 $9,860 $10,210 $10,410 Additional Firefighter-Salary $0 $640 $1,000 $150 $0 $60 Number of Addl Firefighters 0 6 9 0 0 0
Total Sworn Positions 67 73 82 82 82 82
PUBLIC UTILITIES 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00% SALARY BASE $3,300 $3,380 $3,830 $4,340 $4,570 $4,660
Additional Salaries-Park/Street $0 $370 $420 $140 $0 $0 Addl Park/Street employees 0 6 7 3 0 0
GENERAL GOVT 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00% MANAGEMENT 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00% OVERTIME: INCREASE BY CPI 2.50% 2.50% 2.50% 2.50% 2.50% EXTRA HELP: FLAT FOR NEXT FIVE YEARS
HEALTH: INCREASE PER YEAR 7.0%
RETIREMENT: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 POLICE-SAFETY 58.98% 58.08% 58.90% 59.20% 61.10% 60.30% FIRE 58.98% 58.08% 58.90% 59.20% 61.10% 60.30%
PUBLIC UTILITIES 30.00% 29.37% 28.60% 28.90% 30.10% 29.80% GENERAL GOVERNMENT 30.00% 29.37% 28.60% 28.90% 30.10% 29.80% MANAGEMENT 30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS EE COST SHARING -MISC -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% PERS EE COST SHARING -SAFETY -8.00% -8.00% -8.00% -8.00% -8.00% -8.00% WORKERS COMP: Police-CPOA 16.55% 17.00% 17.00% 17.00% 17.00% 17.00% (included in other benefits) Fire 3.47% 3.00% 3.00% 3.00% 3.00% 3.00% Mgmt & Admin 1.91% 2.00% 2.00% 2.00% 2.00% 2.00%
Public Utility 3.71% 4.00% 4.00% 4.00% 4.00% 4.00%
OTHER BENEFITS: Previous year's amount increased by contracted and estimated salary increases. Includes 2% of non-safety salaries for deferred comp, 1% of total salaries for sick leave incentive, 1.45% for medicare and 1% for other benefits.
OTHER SMS: INCREASE BY CPI 2.50% 2.50% 2.50% 2.50% 2.50% CAPITAL OUTLAY: INCREASE BY CPI 2.50% 2.50% 2.50% 2.50% 2.50% FOUR YEAR AVERAGE-PUBLIC SAFETY $930
FOUR YEAR AVERAGE-PUBLIC UTILITIES $60 + ADDITIONAL EQUIP FOR NEW EMPLOYEES FOUR YEAR AVERAGE-GEN GOVT $80
EMERGENCY RESERVE: Maintain not less than 15% with a goal to reach 25% of total expenditures. See the Summary Sheet for reserve amounts. (PERS ESTIMATE)
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ENTERPRISE FUNDS
The purpose of the forecast for the Enterprise Funds is to provide the City Council and the City Manager with an early identificati on of financial trends, along with the future financial costs of legislative and regulatory require ments, and the ability to res pond appropriately. Enterprise Funds, by definition, are supported by rates set to recover the full cost of services, including capital outlays and debt service. The rate setting process requires advance planning, preparation of rate studies, a public hearing process, and a final decision to implement new rates if approved. This process can take up to six months to complete. For this reason, the forecast is a critical management tool for the City.
Further detail regarding each Enterprise Fund is discussed in the following pages. Annually, staff re-evaluates all enterprise operations to determine if any adjustments to rates are needed. At this time, water, sewer, and community sanitation enterprise operations have increases approved s
ufficient to carry the operat ions through the forecast period, barring any unforeseen or catastrophic event. Once these rate increases meet their objectives, staff will begin to evaluate implementing smaller, more measured increases on an annual basis to avoid large one-time increases.
Water Enterprise
The Water Enterprise Fund is projected to have a wo
rking capital balance of approximately
$19.4 million at June 30, 2025. The City Council approved adjusted water rates in the Water Enterprise Fund beginning in June 2016 to comp ly with state legal r equirements regarding a tiered water rate structure. The rate adjustment was revenue neutral. Council also approved a 3% annual increase that can be implemented when necessary to fund the increased cost to treat and distribute potable wate r, for capital improvements, and to provide debt service coverage for the 2013 Surface Water Treatment Plant bonds. A 3% rate increase to water rates is included in each of the five years of the projected forecast. In 2020/21, there was a $5 million down payment as required by the Fi rm Water Supply Agreement with the Fresno Irrigation District (FID). The remaining balance of $30 million is anticipated to be paid by development impact fees in future years. In 2016/17, the Water Enterprise Fund received a legal settlement for Trichloropr opane (TCP) treatment. The Water Enterprise Fund is required to treat potable water for any TCP present , and a reserve for TCP treatment has been established for the treatment costs. Included in 2023/24 is a $1.7 million transf er from the Parks Development Fund to reimburse the Water Enterprise Fund for its share of a property purchase for a future basin and park site. Beginni ng in 2024/25, the capital outlay includes an expenditure of $2.5 million per year for five years to fund an Advanced Metering Infrastructure (AMI) project. Contributions to the reserves for the Sustainable Gr oundwater Management Act (SGMA) and for drought contingency are included during the forecast period. A water rate study is currently in progress and is expected to be completed in the 2025 Calendar Year. It is anticipated that a Proposition 218 protest hearing to increase wate r charges will be needed to generate funds for high-cost ma intenance projects and to sustain a revenue neutral budget with rising operation and maintenance costs.
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AGENDA ITEM NO. 11.
Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 BEGINNING WORKING CAPITAL 22,510 22,060 20,210 22,730 19,440 15,440 12,710 9,630 7,710
REVENUES
WATER CHARGES 19,190 19,980 20,840 22,460 23,270 24,100 24,970 25,860 26,780 DBCP-LEGAL SETTLEMENTS 130 210 210 170 180 190 190 190 190 TOTAL REVENUES 19,320 20,190 21,050 22,630 23,450 24,290 25,160 26,050 26,970
EXPENDITURES
SALARIES 3,190 3,630 3,680 4,040 4,260 4,480 4,660 4,750 4,850 EXTRA HELP 0 20 0 10 10 10 10 10 10
OVERTIME 130 140 150 150 150 150 150 150 150
BENEFITS
RETIREMENT 680 710 750 920 920 900 960 1,030 1,040
HEALTH 570 590 620 770 830 890 950 1,020 1,090
OTHER 390 410 360 380 440 460 480 490 500
SERVICES, MATERIALS & SUPPLIES 12,050 10,950 12,910 16,280 17,730 17,000 16,180 16,350 16,530 MEMBRANE REPLACEMENT 300 45 0000 1 ,100000
TCP TREATMENT 100 100 150 150 150 150 150 150 150
CAPITAL OUTLAY 910 3,720 1,990 3,910 4,060 4,060 4,060 4,060 3,060 TOTAL EXPENDITURES 18,320 20,720 20,610 26,610 28,550 29,200 27,600 28,010 27,380
OTHER REVENUE AND EXPENSE
INTEREST/RENTAL/GRANTS 1,250 760 2,080 1,370 1,280 1,160 1,040 990 980 1,250 760 2,080 1,370 1,280 1,160 1,040 990 980
TRANSFERS-OUT (CAPITAL) (1,000) (500) (500) (500) (250) (250) (250) (250) (250) WATER BANKING LOAN TO DEV FUND 000000000
PARK DEV PAYBACK - BASIN/PARK 0 0 1,70 0000000
INTERFUND LOAN TO GENERAL SERVICES (7,500) 770 770 770 770 770 770 770 770 CONTRIBUTION-SURFACE WTP (750) (750) (750) (730) (730) (730) (730) 0 0 MEMBRANE REPLACEMENT RESERVE 450 (100) (100) (100) (100) 1,100 (100) (100) (100) RESERVE FOR DROUGHT CONTINGENCY (500) (500) (500) 500 1,000 1,000 (500) (500) (500) RESERVE FOR SGMA (1,000) (1,000) 0 0 (250) (250) (250) (250) (250) RESERVE FOR TCP TREATMENT 7,600 0 (620) (620) (620) (620) (620) (620) (620) ENDING WORKING CAPITAL 22,060 20,210 22,730 19,440 15,440 12,710 9,630 7,710 7,330 RESERVE FOR MEMBRANE REPLACEMENT 980 1,080 1,180 1,280 1,380 280 380 480 580 RESERVE FOR DROUGHT CONTINGENCY 6,500 7,000 7,500 7,000 6,000 5,000 5,500 6,000 6,500 RESERVE FOR SGMA 4,000 5,000 5,000 5,000 5,250 5,500 5,750 6,000 6,250 RESERVE FOR TCP TREATMENT 7,650 7,650 8,270 8,890 9,510 10,130 10,750 11,370 11,990
CITY OF CLOVIS
Water Enterprise - Financial Forecast (dollars in thousands) Water 3/3/2025 8:15 AM
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AGENDA ITEM NO. 11.
Bi-monthly Meter Charges: Residential - $26.90 Commercial - $21.65 Residential Usage Rates: $1.10 per 1,000 gallons for 0 to 23,000 gallons, $1.83 per 1,000 gallons for 23,000 - 40,000 gallons, $2.26 per 1,000 gallons above 40,000 gallons. Dwelling unit charge $13.45 per month ($26.90 bi-monthly).
Commercial Usage Rates: $1.10 per 1,000 gallons 0 to 23,000 gallons, $1.49 per 1,000 gallons over 23,000 gallons. Monthly charge from $10.83 (1") to $1,097.43 (10").
Current Charges: INCREASED EACH YEAR BY THE AVERAGE INCREASE OF THE PREVIOUS THREE YEARS 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Rate Increase: 7/1 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Rate Increase: 3% Based on Council approved annual rate increase unless not necessary.
Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL OR A MINIMUM OF $10,000 Salaries: CPWEA 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00%
Salary Base $4,040 $4,140 $4,370 $4,570 $4,750 $4,850
Additional Employee $150 $110 $90
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 4.00% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY CPI FOR FUTURE YEARS 2.50%
(Increase energy cost by 50% for the Surface Water Treatment Plant operation beginning in 2004/05) Rental of the New Corp Yard-beginning 2002/03 $320 per year Capital Outlay: CURRENT CPI 2.50%
Transfers Out: FOR CAPITAL CONTRIBUTIONS FOR DISTRIBUTION SYSTEM IMPROVEMENTS FOR LAND ACQUISITION DESIGN AND CONSTRUCTION OF RECHARGE FACILITIES-100% Reserves: WELLHEAD TREATMENT CONTINGENCY ESTABLISHED FOR CLEANUP OF DBCP CONTAMINATION
MEMBRANE REPLACEMENT RESERVE ESTABLISHED FOR NEW MEMBRANE COSTS
DROUGHT CONTINGENCY ESTABLISHED FOR WATER PURCHASE DURING POSSIBLE DROUGHT
TCP TREATMENT RESERVE FOR TREATMENT CAPITAL AND O&M
SUSTAINABLE GROUNDWATER MANAGEMENT ACT RESERVE
(PERS ESTIMATE)
Water Enterprise- Revenue Assumptions (dollars in dollars) Water Enterprise - Expense Assumptions (dollars in thousands) Water 3/3/2025 8:15 AM
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Sewer Enterprise
The Sewer Enterprise Fund is projected to hav e a working capital bal ance of approximately
$27.2 million at June 30, 2025. The City Council approved a series of rate increases for the Sewer Enterprise Fund beginning August 1, 2010. Rate increases are driven by the rising cost of treatment and capital improv ements at the Regional Treatment facility as well as the increase in the costs to operate new pump stations, the Sewer Treatment Water Reuse Facility (ST-WRF), and to meet bond covenants normally borne by development fees which are projected to be insufficient to meet the City’s ob ligations in a portion of the forecast period. A 3% rate increase is included in each year of the forecast period to keep up with rising operating, maintenance, and capital costs, and to maintain a sufficient fund balance for future bonding capacity. An interfund loan is shown beg inning in 2026/27 of the forecast because it is projected that the collecti on of development impact fees for Sewer Major Facilities will be insufficient to cover the debt service payments. However, there are sufficient funds in the bond charge fund balance collected in prior years to continue the full $7.30 per month rebate to customers until 2028/29. The ability to continue to rebate funds back to ratepayers will be monitored closely throughout the forecast period.
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AGENDA ITEM NO. 11.
Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 BEGINNING WORKING CAPITAL 26,260 26,720 28,270 28,750 27,200 23,680 20,240 18,500 19,160
REVENUES
SEWER CHARGES 13,780 14,510 15,000 16,010 16,720 17,460 18,220 19,000 19,810 PRETREATMENT CHARGES 50 50 50 50 50 50 50 50 50
TOTAL REVENUES 13,830 14,560 15,050 16,060 16,770 17,510 18,270 19,050 19,860
EXPENDITURES
SALARIES 1,090 1,280 1,300 1,660 1,790 1,820 1,860 1,900 2,060 EXTRA HELP 0 0 0 10 10 10 10 10 10
OVERTIME 20 20 10 20 20 20 20 20 20
BENEFITS
RETIREMENT 230 250 270 360 360 370 380 410 440
HEALTH 190 200 210 300 320 340 360 390 420
OTHER 120 130 140 150 140 190 190 200 220
SERVICES, MATERIALS & SUPPLIES 5,090 4,840 5,100 6,510 6,670 6,830 6,990 6,840 7,010 FRESNO TREATMENT PLANT 3,180 3, 770 4,730 4,870 4,990 5,110 5,240 5,370 5,500 CLOVIS TRMT/REUSE PLANT (ST-WRF) 2,460 2,380 2,510 2,700 2,790 2,890 2,990 3,090 3,200 DEBT SERVICE 1,220 1 ,220 1 ,220 1 0 1 00000
CAPITAL 110 440 40 650 2,150 1,710 220 220 230
CAPITAL-FRESNO PLANT IMPROVEMENTS 460 1,080 2,210 2,250 2,000 500 500 500 500 TOTAL EXPENDITURES 14,170 15,610 17, 740 19,490 21,250 19,790 18,760 18,950 19,610
OTHER REVENUE AND EXPENSE
INTEREST 500 860 1,670 950 1,130 1,020 930 890 930
GRANTS/MISC/SALE OF ASSETS/REFUNDS 350 40 190 660 60 50 50 50 50 BOND COVERAGE CHARGES/(REBATE) 0000 00 0 1 ,850 1,850 850 900 1,860 1,610 1,190 1,070 980 2,790 2,830
TRANSFERS IN-DEBT SERVICE 430 4 30 4 300 00000
TRANSFERS OUT-CAPITAL 0 0 0 (500) (500) (500) (500) (500) (500) FROM DEVELOPER-PLANT CAPITAL IMPROV 270 270 270 270 270 270 270 270 270 INTERFUND (LOANS)/REPAYMENT 0 0 ( 390) 0 0 (1,500) (1,500) (1,500) (1,500) (INC)/USE OF FRESNO PLANT CAP RESERVE (750) 1,000 1,000 500 0 (500) (500) (500) (500) ENDING WORKING CAPITAL 26,720 28,270 28,750 27,200 23,680 20,240 18,500 19,160 20,010 RESERVE FOR FRESNO PLANT CAPITAL 2,750 1,750 750 250 250 750 1,250 1,750 2,250 RESERVE FOR RATE STABILIZATION 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
CITY OF CLOVIS
Sewer Enterprise - Financial Forecast (dollars in thousands) Water 3/3/2025 11:14 AM
22 603
AGENDA ITEM NO. 11.
Current Charges: Population New Units Additional Residential: 2024/25 Per Unit Bond Charge Per Pretreatment Per Increase Per Year Commercial Per Month Unit Per Month Unit Per Month 2,000 750 $42,000 $24.16 $7.30 $0.06
Rate Rebate: ($7.30) Beginning FY 20/21
Rate Increase:* 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Percentage 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Revised Monthly Rate $24.16 $24.88 $25.63 $26.40 $27.19 $28.01 Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
* R
ate Increase: Note: The Council can approve up to a 3% annual rate increase if deemed necessary.
Salaries: (CPWEA) 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00%
SALARY BASE $1,660 $1,700 $1,820 $1,860 $1,900 $1,940
Additional employee $90 $120
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -RETIREMENT 30.00% OF EXTRA HELP
-WORKERS COMP 4.00% FOR CPWEA 2.00% FOR ADMIN
-MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 2.50% Rental of the New Corp Yard-Beginning in 2002/03 $320
Clovis Treatment/Reuse Plant Operations-Beginning 1/1/2009 $1,000 Regional Treatment Plant: Annual payment for original plant buy-in plus O&M costs.
Adjusted for average 3 year CPI and per capita amount 2.50% Capital Outlay: FUTURE YEARS @ $200
- AD
JUSTED BY 3 YEAR AVERAGE CPI 2.50%
Cap-Plant Improvements: Based on estimates from the City of Fresno for sewer main and plant refurbishments Transfers In-Debt Service: In from Major Facilities-34.57% of debt service for 1993 WWTP Renovation $427 Transfers Out: Out for on-going capital improvements-per Five Year CIP Interfund Loans: Temporary cash loans to conform with various bond covenants (PERS ESTIMATE)
Sewer Enterprise - Revenue Assumptions (dollars in dollars) Sewer Enterprise - Expense Assumptions (dollars in thousands) Water 3/3/2025 11:14 AM
23 604
AGENDA ITEM NO. 11.
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24 605
AGENDA ITEM NO. 11.
Community Sanitation Enterprise
The Community Sanitation Enterprise Fund is projected to finish the current fis cal year with a working capital balance of approximately $11.3 million at June 30, 2025. The fund will experience a decline in reserves over the next few years due to increased adm inistration and personnel costs, fleet renew al charges and anticipated adj ustments to the recycling and organic contracts. Reserves are expected to stabilize towards the end of the five-year forecast.
A 4% annual incr ease, or portion thereof, for Solid Waste wa s approved by City Council in November 2004, and a 4% annual increase for s treet sweeping was approved by City Council in 2021. The annual incr eases c an be implemented by Council as necessary. A 4% annual increase is projected in the for ecast period for Solid Waste, Street Sweeping, Recycling and Organics operations. These annual inc reases will assist in stabilizing reser ves toward the end of the five-year forecast. Staff will continue to monitor fund levels to deter mine if an increase greater than the 4% is warranted.
25 606
AGENDA ITEM NO. 11.
Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 BEGINNING WORKING CAPITAL 13,520 13, 390 13,100 12,820 11,310 9,020 7,440 6,330 6,130
REVENUES
REFUSE CHARGES 17,770 18,100 18,890 19,900 20,860 21,870 22,930 24,040 25,200 RECYCLING CHARGES 2,110 2,210 2,320 2,420 2,640 2,770 2,900 3,040 3,180 GREEN WASTE CHARGES 2,540 2,680 2,820 2,910 3,060 3,220 3,380 3,550 3,730 STREET SWEEPING CHARGES 1,280 1,570 1,660 1,730 1,740 1,820 1,910 2,000 2,090 TOTAL REVENUES 23,700 24,560 25,690 26,960 28,300 29,680 31,120 32,630 34,200
EXPENDITURES
SALARIES 3,900 4,400 4,440 4,900 5,440 5,550 5,740 5,850 5,970 EXTRA HELP 70 9 0 1 0 8 0 00000
OVERTIME 400 390 440 460 460 460 460 460 460
BENEFITS
RETIREMENT 840 870 930 1,150 1,140 1,120 1,180 1,270 1,280 HEALTH 790 810 870 1,050 1,130 1,210 1,290 1,380 1,480
OTHER 610 530 360 500 570 580 600 610 630
SERVICES, MATERIALS & SUPPLIES 10, 350 10,600 11,790 12,850 13,690 14,030 14,380 14,420 14,780 RECYCLING 1,640 1,610 1,790 1,910 2,410 2,480 2,550 2,620 2,700 GREEN WASTE PROGRAM 2,010 2,010 2,200 2,170 3,030 3,130 3,230 3,330 3,430 STREET SWEEPING 1,770 1,810 2,110 2,080 2,130 2,180 2,230 2,290 2,350 LANDFILL CLOSURE 380 340 350 390 400 410 420 430 440
CAPITAL 1,390 1,190 600 1,180 880 600 600 600 600
LANDFILL IMPROVEMENTS 30 720 1,020 770 100 300 300 300 1,000 TOTAL EXPENDITURES 24,180 25,370 26,910 29,490 31,380 32,050 32,980 33,560 35,120
OTHER REVENUE AND EXPENSE
INTEREST 170 270 530 450 550 500 460 440 450
GRANTS/MISC/SALE OF ASSETS 30 100 260 420 90 90 90 90 90 200 370 790 870 640 590 550 530 540
TRANSFERS 150 150 150 150 150 200 200 200 200
ENDING WORKING CAPITAL 13,390 13,100 12,820 11,310 9,020 7,440 6,330 6,130 5,950 RESERVE FOR CLOSURE 5,000 5,340 5,690 6,080 6,480 6,890 7,310 7,740 8,180 RESERVE FOR LIABILITY INS 1,000 1, 000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Note: Maintain minimum ending working capital at 15% of expenditures or the bond covenant requirements.
CITY OF CLOVIS
Community Sanitation - Financial Forecast (dollars in thousands) Refuse and Street Cleaning 3/3/2025 11:18 AM
26 607
AGENDA ITEM NO. 11.
Current Charges: New Units 24/25 Avg Unit Recycling Green Waste Street Cleaning Per Year Per Month Per Month Per Month Per Month
750 $27.50 $4.79 $7.03 $2.97
Additional Commercial Annual Revenue ----------------------------> $35,000 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Rate Increase/(Decrease): 7/1 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Adjusted Monthly Rate: $27.50 $28.60 $29.74 $30.93 $32.17 $33.46 Rate Increase: Based on Council approved 4% annual rate increase unless not necessary.
Green Waste/Recycling: Based on current year charges, increased by new unit growth and projected rate increases of 4% per year.
Street Cleaning: Based on current year charges, increased by new unit growth and projected rate increases of 4% per year.
Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Salaries: (CPWEA) 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00%
Salary Base: $4,900 $5,320 $5,550 $5,660 $5,850 $5,970
Additional Personnel: Res/Comm $120 $75
Extra Help: $150 for Operations per year
Overtime: FLAT FOR FUTURE YEARS
Retirement: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 4.00% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 2.50% Capital Outlay: Flat for future years $600
Adjusted by 3 year average CPI 2.50%
Transfers: In-For Toters $200 /year
Reserve For Closure: FROM 98/99, INCREASE BY 3 YEAR AVERAGE CPI 2.50% (PERS ESTIMATE)
Community Sanitation - Revenue Assumptions (dollars in dollars) Community Sanitation - Expense Assumptions (dollars in thousands) Refuse and Street Cleaning 3/3/2025 11:18 AM
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AGENDA ITEM NO. 11.
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AGENDA ITEM NO. 11.
Transit Enterprise
The Transit Fund is projected to have suffici ent revenues throughout the forecast period to meet its operational and capital needs. Revenue from the Tr ansportation Development Act, which includes Local Transportation Funds (LTF) and State Transit Assistance (STA) funds, is allocated to Transit based on factors like populat ion, taxable sales, and transit performance.
Recently, these funds have been used to suppor t operational costs an d the purchase of vehicles for the route r edesign project. Transit is als o working toward securing land to build a Transit Operations Center, which will incl ude infrastructure to support zero-emissions mandates. The land for this project will be funded by the state’s Trans it and Intercity Rail Capital Program (TIRCP) . Additionally, Clovis Transit began receiving federal funding in 2024/25, which will provide further support for operations and enable competition for capital grants. Given that transit funding is often subjec t to change, and with the Measure C sales tax set to expire after 2027, the types and levels of funding will be c losely monitored to ensure any necessary adjustments to service levels are made. The Transit Fund must defer LTF and STA revenue that has been received but not yet spent. This deferred r evenue is reflected in the Trans it Fund forecast under "Deferred Revenue." 29 610
AGENDA ITEM NO. 11.
Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 BEGINNING WORKING CAPITAL 3 20 6 50 3 40 4 4000000
REVENUES
MEASURE C FUNDS * 2,130 2,190 2,170 2,160 2,210 2,270 2,330 2,390 2,450 LOCAL TRANSPORTATION FUNDS (LTF) 5,050 5,340 6,780 5,010 5,450 4,660 4,760 4,880 4,940 STATE TRANSIT ASSISTANCE (STA) ** 1,020 200 2,190 5,160 4,760 5,750 5,850 2,210 2,320 FEDERAL TRANSIT ADMINISTRATION (FTA) 0 0 0 3,270 3,430 3,520 3,610 3,700 3,790 OTHER (Fares, Advertising, Trolley Rents) 5 0 7 0 1 10 4 000000 TOTAL REVENUES 8,250 7,800 11,250 15,640 15,850 16,200 16,550 13,180 13,500
EXPENDITURES
SALARIES 1,690 1,890 2,050 2,550 2,810 2,870 2,930 2,990 3,050 EXTRA HELP 1,050 1,540 1,760 1,930 2,030 2,130 2,240 2,350 2,470 OVERTIME 80 60 70 100 100 110 120 130 140
BENEFITS
RETIREMENT 360 380 410 550 630 580 600 650 650
HEALTH 330 350 430 550 620 660 710 760 810
OTHER 520 560 620 890 740 790 830 890 920
SERVICES, MATERIALS & SUPPLIES 2,900 3,100 3,730 4,460 4,660 4,780 4,900 5,020 5,150 CAPITAL-OTHER 160 170 450 740 200 200 200 200 200
CAPITAL-BUSES 110 110 2,100 1,500 1,000 1,000 1,000 1,000 1,000 TOTAL EXPENDITURES 7,200 8,160 11,620 13,270 12,790 13,120 13,530 13,990 14,390
OTHER REVENUE AND EXPENSE
INTEREST/GRANTS/MISC 180 50 470 940 690 670 730 810 890 180 50 470 940 690 670 730 810 890
TRANSFERS (TRANSIT STATION) (900) 00 (3,750) (3,750) (3,750) (3,750) 00 ENDING WORKING CAPITAL 650 3 40 4 40000000
DEFERRED REVENUE 5,740 10,820 12,490 13,870 16,690 18,620 21,220 24,060 27,230
CITY OF CLOVIS
Transit - Financial Forecast (dollars in thousands)
Transit 3/3/2025 3:01 PM
30 611
AGENDA ITEM NO. 11.
Transit Revenue: Measure C revenue is projected to grow by its historical average increase 2.50% * Subject to availability for FY 2027/28 through FY 2029/30 * LTF revenue is projected to grow by its historical average increase 5.00% Other revenue is projected to grow by the Current CPI 2.50% Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Deferred Revenue: REVENUE RECEIVED AND NOT SPENT
Salaries: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00%
Salary Base: $2,550 $2,620 $2,870 $2,930 $2,990 $3,050
Additional Personnel: $190
Extra Help: INCREASE PER YEAR FOR ADDITIONAL DEMAND IN ROUNDUP TRANSIT SERVICES 5.00% Overtime: INCREASE BY CURRENT CPI 2.50%
Retirement: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 4.00% OF SALARIES 2.00% FOR ADMIN -MEDICARE 1.45% OF SALARIES and EXTRA HELP
-DEFERRED COMP/SICK LEAVE/OTHER 5.25% OF SALARIES
Other SMS: INCREASE BY CURRENT CPI 2.50%
Capital Outlay: BASED ON BEST ESTIMATES FOR BUSES AND OTHER ADJUSTED BY CURRENT CPI 2.50%
(PERS ESTIMATE)
** State Transit Assistance, for fiscal years 2019/20 through 2025/26, a transit agency may expend funds apportioned on any operating or capital costs to maintain transit service levels.
For fiscal years 2024/25 through 2027/28, significant increase is due to one-time funds from the Transit and Intercity Rail Capital Program TIRCP **
Transit- Revenue Assumptions
Transit- Expense Assumptions
Transit 3/3/2025 3:01 PM
31 612
AGENDA ITEM NO. 11.
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32 613
AGENDA ITEM NO. 11.
Planning and Development Services Enterprise
The Planning and Dev elopment S ervices (PDS) Department transitioned into an Enterprise Fund in 2012/13. This allows for services to be adjusted as demand fluctuates. The 2025/26 forecast estimates 750 residential units to be constr ucted; this is shy of our historical average of 800 units per year for the past 20 years. The 2024/25 forecast estimates that 700 residential units (380 single-family, 320 multi-family) are projected to be issued this fiscal y ear.
This is primarily due to high interest rates, which continue to lower consumer housing demand.
Revenues fluctuate based on construction valuation for different project types; c ensus housing unit numbers are just one indicator. Com mercial activity performed better this year than our historical average, with fewer permits but higher valuation. Over the past ten years, the 10- year moving average for commercial valuation ro se from $35 million to $48 million per year.
This year, we antic ipate finishing at a $50 million valuation, $2 M illion higher than the 10-year moving average.
The PDS Department is projec ted to finish 2024/25 with a working capital balance of approximately $9.7 m illion. The forecast reflects that the PDS Department will maintain a prudent reserve that allows for immediate adjustments, should they become necessary. 33 614
AGENDA ITEM NO. 11.
CITY OF CLOVI
S
Planning & Development Services - Financial Forecast (dollars in thousands) RESIDENTIAL UNITS PER YEAR 859 658 610 700 750 800 800 800 800 Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 BEGINNING WORKING CAPITAL 10,080 9,890 9,520 9,080 9,720 9,720 10,260 10,550 10,770
REVENUES
BUILDING PERMITS 3,390 3,650 3,580 4,950 4,890 5,120 5,120 5,220 5,130 PLANNING FEES 1,310 1,300 2,120 1,730 1,640 1,890 1,830 1,910 1,990 GENERAL PLAN CONSULTANT 180 320 360 1,660 2,410 1,470 670 670 670 ENGINEERING FEES 2,700 2,410 1,720 2,160 2,050 2,100 2,150 2,200 2,260 CAPITAL IMPROVEMENT CHARGES 2,690 3,840 4,000 4,070 4,850 4,970 5,090 5,220 5,350 TOTAL REVENUES 10,270 11,520 11,780 14,570 15,840 15,550 14,860 15,220 15,400
EXPENDITURES
SALARIES 5,060 5,990 6,050 6,370 7,020 7,270 7,420 7,570 7,720 EXTRA HELP 70 120 150 110 100 100 100 100 100
OVERTIME 80 80 40 140 310 150 150 150 150
BENEFITS
RETIREMENT 1,050 1,150 1,210 1,280 1,430 1,490 1,540 1,660 1,670 HEALTH 790 870 850 870 900 960 1,030 1,100 1,180
OTHER 420 440 450 560 570 580 590 600 620
SERVICES, MATERIALS & SUPPLIES 3,460 3,840 3,970 3,750 3,630 3,680 3,770 3,860 3,960 GENERAL PLAN CONSULTANT 180 320 360 1,430 2,090 1,400 600 600 600 CAPITAL 40 10 160 70 420 10 10 10 10
TOTAL EXPENDITURES 11,150 12,820 13,240 14,580 16,470 15,640 15,210 15,650 16,010
ADDITIONAL ITEMS
INTEREST 180 260 510 600 300 300 310 320 320
OTHER REVENUES/GRANTS 200 370 140 120 80 80 80 80 80
TRANSFERS FROM GENERAL FUND 310 300 370 350 350 350 350 350 350 TOTAL ADDITIONAL ITEMS 690 930 1,020 1,070 730 730 740 750 750 NET INC/(DEC) TO WORKING CAPITAL (190) (370) (440) 1,060 100 640 390 320 140
OTHER ITEMS
(USE OF)/ADDITION TO EMERGENCY RESERVE 0 0 0 420 100 100 100 100 100 ENDING WORKING CAPITAL 9,890 9,520 9,080 9,720 9,720 10,260 10,550 10,770 10,810 Emergency Reserve - (Dollars) 2,500 2,500 2,500 2,920 3,020 3,120 3,220 3,320 3,420 Emergency Reserve as a % of Expenditures 22.4% 19.5% 18.9% 20.0% 18.3% 19.9% 21.2% 21.2% 21.4% Planning Development Services 3/3/2025 2:56 PM
34 615
AGENDA ITEM NO. 11.
Planning & Development Services - Revenue Assumptions (dollars in dollars ) 2023/24 (Act.) 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Residential Units Per Year: 610 700 750 800 800 800 800 Non-Residential Valuation %: 19% 20% 20% 20% 20% 20% 20% Averages based on two years actuals and estimate to close Average Permit Fees Per Unit: Building Planning Engineering International Code Council 2% Increase:
$5,200 $2,200 $2,700 2022/23 2025/26 2028/29
Current CPI: 2.50%
2023/24 (Act.) 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Planning Program Fee (Staff): $970,000 $1,070,000 $1,110,000 $1,140,000 $1,170,000 $1,210,000 $1,250,000 Gen. Plan Consultant Admin Fee: $0 $230,000 $310,000 $70,000 $70,000 $70,000 $70,000 Plan. Prgm. Fee (Consultant): $360,000 $1,430,000 $2,100,000 $1,400,000 $600,000 $600,000 $600,000 Other Planning Fees: $1,150,000 $660,000 $530,000 $750,000 $660,000 $700,000 $740,000 Total FY $2,480,000 $3,390,000 $4,050,000 $3,360,000 $2,500,000 $2,580,000 $2,660,000 Capital Improvement Charges: BASED ON HOURLY RATE CHANGES (AS NEEDED) Interest: 3.00% OF PREVIOUS YEAR'S WORKING CAPITAL
Other Revenues: INCREASE BY CURRENT CPI 2.50%
Grants: BASED ON AWARDED GRANTS
Planning & Development Services - Expense Assumptions (dollars in thousands) Salaries: (CPTA) 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 7/1 3.00% 2.50% 2.00% 2.00% 2.00% 2.00%
Salary Base: $6,840 $7,010 $7,270 $7,420 $7,570 $7,720
Additional Personnel: $120
Extra Help: $110 $100 $100 $100 $100 $100
Overtime: WILL REMAIN FLAT THROUGHOUT PROJECTION YEARS
Retirement: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
30.00% 29.37% 28.60% 28.90% 30.10% 29.80%
PERS Cost Sharing: -8.40% -8.40% -8.40% -8.40% -8.40% -8.40% Health: INCREASE PER YEAR 7.00%
Other Benefits: INCREASE BY CURRENT CPI 2.50%
Other SMS: INCREASE BY CURRENT CPI 2.50%
General Plan Consultant: 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 General Plan Update & Housing Element $1,000 $1,600 $900 $100 $100 $100 Misc. Services (Legal, Housing, Design, Engr) $230 $230 $230 $230 $230 $230 Specific Plan/Master Plan Prep/Updates $0 $0 $0 $0 $0 $0 Utility Plans & Engineering Studies $100 $100 $100 $100 $100 $100 Planning Studies Guidelines $40 $100 $100 $100 $100 $100 LAFCO Budget Contribution $60 $70 $70 $70 $70 $70
Total FY $1,430 $2,100 $1,400 $600 $600 $600
Capital Outlay: BASED ON CAPITAL NEEDS PROJECTED FOR DEPARTMENT Transfers: GENERAL FUND DISCRETIONARY FUNDING $350 PER YEAR (PERS ESTIMATE)
Planning Development Services 3/3/2025 2:56 PM
35 616
AGENDA ITEM NO. 11.
INTERNAL SERVICE FUNDS
The Internal Service Fund group is projected to be self-balanc ing throughout the Five-Year Forecast. Since the Internal Service Fund group is funded by charges to the operating funds,
issues that will affect the Internal Service F unds are dealt with in conjunction with analysis of the impact on the operating funds. Each of the funds within the Internal Service Fund group is continually reviewed to determine where more cost-effective programs and services can be utilized, and expenditure reductions have been made in recent years to reduce the impact of cost sharing on all other City operations.
DEBT SERVICE FUNDS
The Debt Service Fund group, out of necessity and legal obligation, will be fully funded in order
to make the required debt payments.
36 617
AGENDA ITEM NO. 11.