GENERAL
FUND &
SPECIAL
REVENUES
FUNDS
Fiscal Year
2022/23
City of Cotati
Session Date :
April 19, 2022
1 Study Session
Overview
Tentative Schedule
City Economic Overview/Forecasting
Assumptions
Budget Study
General Fund
Special Revenues
Conclusion
Packet Provided Schedules
City Council Revised Goals and
Objectives
General Fund Workbook with Allocated
Contract Services Detail
Special Revenue Funds Workbook
2 Tentative
Schedule
3 Strategic Planning
Session
•Developed City
Objectives/Goals
Budget Focus
•Strategic Projects
Feb. 15, 2022
City Objectives Revisit
Budget Study Session
•General Fund
•Revenues
•Expenditures By
Departments
•Special Revenues
April 19, 2022
Budget Study Session
•Enterprise Funds
•Capital Projects
•Transfers In and Outs
May 17, 2022
Budget Adoption
June 14, 2022
Forecast Assumptions
Revenues
Based on best available information
Continued impacts of inflation/supply issues?
Legislative Impacts from Federal, State &
Regional Government
Estimates are prudently conservative
Cotati’s Revenue Base is Different
Sales tax & Measure S relatively secure
Reduction for Amazon Distribution Centers
Slowly Growing Cannabis Business Tax
No current hospitality industry or related taxes like Transient Occupancy Tax (TOT)
4 General Fund Growth Over Time
5 $-
$2
$4
$6
$8
$10
$12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Millions
DOT COM-9/11 SARS GREAT RECESSION CDTFA SARS Covid-19
Forecast Assumptions
Expenses
Finding a Balance
• Revenues
• Service Level/Operating Expense
• Contract Services
• Liabilities Management (Capital, UAL )
• Issued Bonds
Outstanding Items
• Insurance Costs (Estimates)
• Non-Rep in Negotiation
6 General
Fund
Budget
Highlights
7 Minimum reserve of 25% of operating expenses, per
Resolution 2009-50
Revenues Increase from 2021/22 Adopted
Budget (Excluding ARP)
•2021/22 Estimate - Increase 7.5%
•2022/23 Proposed – Increase 7.2%
ADP to CalPERS in FY 2021/22
2022/23 - Staffing Costs Increase 10%
•Budgeted Full Employment
•Salaries Increased 4%
•Negotiated MOU’s and Step Increases
•Continued Lump Sum Payment of PERS
•ADP Adjusted for in 2024 Fiscal Year Payment
•Increased Health Benefit
Other Cost Changes
•Insurance Estimate increase 52%
•Contract Services increase of 6%
GENERAL FUND
Proposed Budget for FY 2022/23
8 What is a
General
Fund?
• A general fund is the primary fund used by a
government entity.
• Used to record all resource inflows and outflows
that are not associated with special-purpose funds.
• Activities being paid constitute the core
administrative and operational tasks of the
government entity.
• For the City of Cotati these Core Services are
• Police
• Public Works
• Recreation
• Community Development
• City Management
• Administrative Services
• City-Wide (Non-Utility) Infrastructure Funding –
Next Study Session
9 General Fund
Operating In-Flows (Revenues)
10 Operating Revenue Source by Type
FY 2021/22
Estimate
FY 2022/23 Proposed
Budget
Increase/
(Decrease)
%
Change
Property Tax $ 1,895,397 $ 2,012,395 $ 116,998 6.2%
Sales Tax 5,960,000 6,070,000 110,000 1.8%
Other Tax* 660,300 751,700 91,400 13.8%
Licenses, Permits & Franchises 538,800 537,900 (900) -0.2% Rents 96,000 77,400 (18,600) -19.4%
Revenue From Other Agencies 193,908 203,600 9,692 5.0%
Other Revenues 313,394 52,400 (260,994) -83.3%
Charges For Services 462,485 371,550 (90,935) -54.2%
Investment Earnings 13,300 26,500 13,200 99.2%
Contributions 11,300 6,300 (5,000) -44.2%
Total General Fund
Revenue/Sources $ 10,144,884 $10,109,745 $ (35,139) -0.3% * Includes cannabis business tax
COMPARATIVE IN-FLOWS
11 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
PROPERTY TAX
SALES TAX
OTHER TAX
LICENSES, PERMITS & FRANCHISES
RENTS
OTHER AGENCIES
COMMUNITY DEVELOPMENT CHARGES
PUBLIC WORKS CHARGES
POLICE CHARGES
OTHER REVENUES
INVESTMENT EARNINGS
CONTRIBUTIONS
Thousands
FY 2022/23 PROPOSED
BUDGET
FY 2021/22 ESTIMATE
IN-FLOWS
FOR BUDGET YEAR 2022/23
12 Major
In-Flows
Highlights
13 Property Tax Projected Revenue includes:
•2% Assessor’s applied CPI
•Increase primarily due to New Development
•Total change of around 6%
Sales Tax Projected Revenue:
•Minor increase in 2022/23 – 2%
•Increased Sales (Inflation?)
•Decreased by Amazon Distribution Center Re-Allocation
•Major Industry Groups in Cotati
Building/Construction
Fuel/Service Stations
Food/Drug
State/County Pool
Other General Fund
In-Flows Highlights
14 Other Tax
• Cannabis Business Tax
• Estimated at $710K for 2022/23
• Pending new Retail Operations
Licenses, Permits & Franchises
• No significant change except a small increase in
Business License Taxes
End S.M.A.R.T. Train Station Depot Lease
Other General Fund
In-Flows Highlights
15 Other Agencies
•Public Safety Contract Services with SSU
•Estimated as Contract Renewal Pending
Charges for Services
•Development/Public Works Charges
•Decreased Revenues in 2022/23 due to Completion of Development at Kessing Ranch
•Police Charges
•Fiscal Year 2022/23 – Continue to normal Post-Covid
Other Revenues
•Moved ARPA $1.4M To Special Fund
•Administrative Reimbursements (?)
Out-Flow
Highlights
16 •2021-22 - ADDITIONAL DISCRETIONARY PAYMENT
OF $6M PROCESSED ($4.8M FOR GENERAL FUND),
PLUS LUMP SUM
•2022-23 - FULL LUMP SUM PAYMENT OF THE PERS
UNFUNDED LIABILITY IN THE AMOUNT OF
APPROXIMATELY $1.2M
CALPERS
•ALLOCATED CONTRACT SERVICES
•SHARED INDIRECT COSTS SUCH AS AUDIT FEES,
JANITORIAL COSTS, UTILITIES, ETC.
•BASED ON FULL FTE
CONTRACT
SERVICES
EVALUATION
•USING ESTIMATES RECEIVED
•MARKET UNCERTAINTY
INSURANCE
INCREASES
•ESTIMATES ARE BASED ON EXISTING STAFFING
•INCLUDES ALL NEGOTIATED MOU CHANGES
•ONE MOU CURRENTLY BEING NEGOTIATED
•EVALUATING STAFFING LEVELS
ALL
DEPARTMENTS
ARE BUDGETED
AT FULL
STAFFING
GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
17 FY 2021/22 FY 2021/22 FY 2022/23
ADOPTED ESTIMATE
PROPOSED
BUDGET
CITY COUNCIL $ 135,907 $ 140,827 $ 135,027 $ (5,800) -4% CITY MANAGER 676,848 897,872 543,199 (354,673) -65%
ADMINISTRATIVE SERVICES 386,670 488,565 453,640 (34,925) -8% COMMUNITY DEVELOPMENT 940,337 1,191,337 1,065,193 (126,144) -12% PUBLIC WORKS 1,403,287 1,753,522 1,386,007 (367,515) -27% POLICE 4,499,245 7,714,370 4,587,399 (3,126,971) -68%
RECREATION 421,135 616,950 378,089 (238,861) -63%
CODE COMPLIANCE 41,000 41,000 46,000 5,000 11%
$ 10,848,053 $ 12,844,443 $ 8,594,554 $ (4,249,889) -33%
EXPENDITURES
SUMMARY BY DEPARTMENT
INCREASE/
(DECREASE)
% CHANGE
TOTAL GENERAL FUND
EXPENDITURES
GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
ADJUSTED FOR UAL- ADP
FY 2021/22 FY 2021/22 FY 2022/23
ADOPTED ESTIMATE
PROPOSED
BUDGET
CITY COUNCIL $ 135,907 $ 140,827 $ 135,027 $ (5,800) -4% CITY MANAGER 676,848 608,702 543,199 (65,503) -12%
ADMINISTRATIVE SERVICES 386,670 358,155 453,640 95,485 21% COMMUNITY DEVELOPMENT 940,337 862,477 1,065,193 202,716 19% PUBLIC WORKS 1,403,287 1,379,302 1,386,007 6,705 0%
POLICE 4,499,245 4,209,170 4,587,399 378,229 8%
RECREATION 421,135 390,150 378,089 (12,061) -3%
CODE COMPLIANCE 41,000 41,000 46,000 5,000 11%
UAL - ADP - 4,854,660 - - -100%
$ 10,848,053 $ 12,844,443 $ 8,594,554 $ (4,249,889) -33%
EXPENDITURES
SUMMARY BY DEPARTMENT
INCREASE/
(DECREASE)
% CHANGE
TOTAL GENERAL FUND
EXPENDITURES
18 DEPARTMENTAL OUT-FLOWS
FOR PROPOSED BUDGET YEAR 2022/23
19 CITY COUNCIL,
$135,027
CITY MANAGER,
$518,199
ADMINISTRATIVE SERVICES,
$453,640
COMMUNITY
DEVELOPMENT, $1,065,193
PUBLIC WORKS, $1,386,007
POLICE, $4,587,399
RECREATION, $378,089
CODE COMPLIANCE,
$46,000
Allocated
Contract
Services
20 Classification Of Contracts
Sum of
Contracts
General Contract Services $85,500
Insurance 640,450
Legal & General Council 163,045
Professional Services 148,760
Technology & Data Management 280,990
Estimated Total $1,318,745
Descriptions of Contract Service Classifications:
1) Professional Services – includes services provided by certified professionals for business purposes (example auditors, actuary, etc.) 2) Legal and General Counsel Contracts – legal services 3) Technology and Data Management Services – includes all computer and systems management, website hosting, phone, record mgmt 4) Insurance Contracts
5) Project Consultants – Specialty consultants for projects 6) General Contract Services – tree services, janitorial, landscaping and categorize by the PW Departments Departmental Contract
Services
21 CONTRACT
SERVICES
Admin.
Services
Comm.
Develop.
Public
Works Police Recreation
Code
Enforce. Total
Professional
Services $ 51,500 $ 180,000 $ 187,600 $ 25,000 $ - $ 46,000 $ 490,100 Tech and Data
Management
$ - $ 3,500 $ 125 $ 200,000 $ 4,500 $ - $ 208,125
Special Project
Consultants
$ - $ 110,000 $ 45,000 $ 15,000 $ - $ - $ 170,000
General
Services $ 25,000 $ 200 $ - $ 78,370 $ 31,000 $ - $ 134,570 Total $ 103,000 $ 298,700 $ 244,693 $ 400,440 $ 44,304 $ 86,000 $1,177,137 Community Development
– Professional Services are Primarily for Landscape Review ($25K), Plan Check ($100K), Planning and CEQA Support ($30K) and Design Review ($25K).
- Special Projects Include Bike Ped Master Plan and Santero Way Specific Plan
PUBLIC WORKS
- Professional Services Primarily include Impacts of AB4 and General Project Consulting ($50K)and Falletti Ranch Management ($125K)
- Special Project includes support of replacement video system at PD POLICE
- Primarily Public Safety Consortium Costs
Comparative
Insurance
Costs
22 -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
INSURANCE
Expenditure Highlights
Departments Detail
23 City Council includes the following changes:
• Continued allocation of shared indirect costs; primarily city utilities and other contract services
•Significant other expenses include dues and subscriptions and allocated insurance
City Manager includes the following changes:
• Continued inclusion of Public Information Services under the City Manager Department
• Other Expense - Election Expense of $25,000
• One-time Covid expenses in 2019/20 funded from the City Manager department
Expenditure Highlights
Departments Detail
24 Admin. Services includes the following changes:
•One additional staff accountant and Recruiting for Intern •Increased Fiscal Fees incurred by the City for General Fund revenues received
Community Development change is primarily due to:
•Increased one part-time staff
•Contract Services - Continuing New Housing Element Projects, Update BikePed Master Plan, and Santero Way Specific Plan Projects Public Works includes the following changes:
•Significant other expenses include dues and subscriptions and allocated insurance
•Operational Funding for Veronda-Falletti Ranch
Expenditure Highlights
Departments Detail
25 Police Services includes the following changes:
• Continued investment in technology services through the public safety consortium
• Additional Costs for Training and Correlated Overtime. • Significant other expenses include allocated insurance, recruiting, small tools and equipment, and vehicle fuel.
Recreation includes the following changes:
• RecDesk Annual software contract renewal
• Significant other expenses include allocated insurance and bank fees Code Compliance
• No significant changes
SPECIAL
REVENUES
Proposed Budget for FY 2022/23
26 What are Special
Revenue Funds?
• Special Revenue Funds are a
group of accounts established
by a government for restricted
use to ensure that certain
revenue sources are used or
earmarked only for their
specific purpose.
• This Special Revenue Fund
type may be used to account
for the proceeds of specific
revenue sources that are
legally restricted or restricted
by City Council policy for a
specified purpose.
27 What are Cotati’s Special Revenue Funds COMMUNITY DEVELOPMENT • In-LieuInclusionary
Housing
• Bed Tax
• Linkage -
Affordable
Housing
• Special
Fund
PIUBLIC WORKS • Traffic
Mitigation
• Park In Lieu
• Comm. Dev.
Block Grants
• Gas Taxes
• MTC Street
• Community
Facilities Dist.
• RMRA
• Parks
Measure M
POLICE DEPARTMENT
•Public
Safety
•K9
Program
CITY MANAGER
•PEG Grant
•So.
Sonoma
Business
Park
•Excess
Bond
Proceeds
28 Special Revenue Fund
Highlights
All Special Revenue Funds revenues are considered consistent with prior years with the following exceptions:
CDBG - No Current Projects
Gas Tax - Revenues are still uncertain due to volatility in gas pricing. Traffic Mitigation Fund - Contributions Reduced for Estimated and Pending Updated from Rohnert Park for balance of remaining ($340,000) K-9 Program - is fully funded by Contributions from Measure S/General Fund. South Sonoma Business Park - refunding in early 2019/20 and requires transfer out balance due to General Fund.
Inclusionary Housing - Pending estimate numbers for Jaime Lane Housing Project.
Community Facilities District – Receive $322 transfer from General Fund in 2021/22 to cover expenses and then repay balance back in 2022/23. Bed Tax and Parks Measure M - Delayed Parks Project deferred transfer to Capital Project.
29 30
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Adopted
FY 21-22
Estimated
FY 22-23
Proposed
Millions
Special Revenues Funds Trends
Budgeted Revenues and Expenditures
REVENUES EXPENDITURES & TRANSFERS OUT FUND BALANCE
Conclusion
31 A balanced budget
maintaining prudent fund
balance levels
We will continue to closely
monitor the operating
revenues to ensure sufficient
fund balance and cash flows
for continued operations
Operating reserve
requirements continue to be
exceeded for General Fund
City staff will continue to
update the Council on any
significant budgetary changes
prior to budget adoption.
City staff are committed to
exercise prudence and
integrity in the management
of public funds and provide
transparency and
accountability in its use.
32