ENTERPRISE
FUNDS & CAPITAL
FUNDS
Fiscal Year 2022-23
City of Cotati
Session Date : May 17, 2022
Study Session
Overview Ø Tentative Schedule Ø Goals and Objectives Ø Budget Study Ø Enterprise Funds Ø Water/Sewer/Internal Service Ø Capital Project Funds Ø General Fund & Special Revenues Update Ø Conclusion Ø Packet Provided Schedules Ø City Council Revised Department Projects Ø Enterprise Funds Proposed Budget Workbook Ø Capital Project Funds Budget Workbook Ø Multi-Year Capital Projects Plan Ø General Funds – Updated Workbook with Transfers and Other Sources/Uses
Ø 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
Goals and Objectives
Long Term Vitality
•Balanced Budget
•Economic Development
•Affordable & Proper Development
•Infrastructure Preservation
•Pursue Grant Opportunities
Climate Change
•Mitigate and Adapt to Impacts
•Wildfire Preparation & Adaptation
Community Engagement
•Inclusive and Equitable Practices
•Advance Equity to Community Partners
Equitable, Compassionate & Healthy
Community
•Diversity Source of Strength
•Equity in Hiring/ Promoting/ Contracting
•Advance equity & health partnerships
Best in Class Community Services
• Community Safety & Quality
•Support High Level Core Services
•Emergency Preparedness
•Update Regulations
•Development Services
•Regional Participation
•Improve Service Delivery
ENTERPRISE
Enterprise Funds are used to account for operations that FUNDS
are financed and operated in a similar manner as a
private business enterprises, where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.
Budget Highlights
Maintains a reserve
of 33% of operating
expenses
Proposed rate
change per the
proposed rate study
for water & sewer
Conservative
Revenue and
Expenditures
Estimates
Continued focus on
infrastructure
improvements and
preservation
WATER
FUNDS
Water Funds Overview
◦ BUDGET ASSUMPTIONS
◦ Water rate adjustment in FY 2022-23:
◦ Water rates are determined by the cost of delivering water and maintaining infrastructure and equipment in order to properly treat and distribute water to our customers.
◦ Rate Study presented to council April 12. Currently in Prop 218 notice, pending public hearing anticipated on June 14, 2022, meeting.
◦ Interfund Debt Service Back to General Fund for UAL Contribution. ◦ Proposed Capital Project and Equipment Improvements:
◦ Water Meter Replacements
◦ SCADA Server Upgrade & Relocation - $150,000
◦ P-1: Portal, Mercantile, Aaron Replacement - $608,900 • One Time UAL ADP in FY 2021/22 $989,900
• Personnel budgeting full staffing
• Allocated Contract Services
• Estimated Increasing Insurance
• Continued water conservation programs
• Cost of Water Procurement -
• Water Agency Increased Rate of 6.0%
• Consistent Water Consumption
• Repairs & Maintenance Increase to address
Water Main Flushing Services
Changes in Operating Expenditures:
• Primarily Connection Fees
• Fiscal Year 2017/18 $218K
• Village Walk
• Fiscal Year 2019/20, 2020/21,and est. 2022/23
$210K, $71K, $248K respectively.
• Kessing Ranch Developments
Change in Revenues:
Millions
FY 18/19
Actual
FY 19/20
Actual
FY 20/21
Actual
FY 21/22
Estimate
FY 22/23
Proposed
$3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0
Combined Water Funds
Revenue and Expenses
Revenues Operating Expenses
Water Study Projections
Contract Services
◦ Professional Services
◦ Continued Rate Study Review $ 15,000
◦ General Engineering Services $ 7,000
◦ Technology & Data
◦ SCADA/EMASS/ITRON Maintenance $ 38,200
◦ Tyler Incode (Billing/Notification) Fees $ 7,440
◦ General Services
◦ Water Sample Testing $ 15,840
◦ Water Systems Support $ 12,100
◦ Uniform Maintenance Service $ 744
SEWER FUNDS
Sewer Funds Overview
◦ BUDGET ASSUMPTIONS
◦ Proposed rate adjustment in FY 2022-23
◦ Sewer rates are determined by the cost of treatment of wastewater and maintenance of related infrastructure and equipment.
◦ Rate Study presented to council April 12. Currently in Prop 218 notice, pending public hearing anticipated on June 14, 2022, meeting. ◦ Proposed Capital Project Improvements:
◦ West Sierra Sewer Line Replacement - $1,100,000
◦ Manhole Lateral Repair & Improvements - $96,000
◦ SCADA Server Upgrade & Relocation - $150,000
• One Time UAL ADP in FY
2021/22 $948,220
• Personnel budgeting full staffing
• Allocated Contract Services
• Estimated Increasing Insurance
• Increased wastewater treatment
costs of approximately 6.8%
Operating Expenditures:
• Primarily Connection Fees
• Fiscal Year 2019/20 $703K
• SCIP Financed Connection
Fees
Change in Revenues:
Thousands
FY 17/18
Actual
FY 18/19
Actual
FY 19/20
Actual
FY 21/22
Estimate
FY 22/23
Proposed
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Combined Sewer Funds
Trends
Revenues and Expenses
Revenues Operating Expenses
Wastewater Study Projections
- If Rates Change
Contract Services
◦ Professional Services
◦ General Engineering Services $ 7,500
◦ Technology & Data
◦ TESCO Systems Maintenance $ 9,000
◦ Tyler Incode (Billing/Notification) Fees $ 3,500
◦ Special Project
◦ Engineering Project - $ 4,000
◦ General Services
◦ Sewer Systems Support $ 10,000
◦ Uniform Maintenance Service $ 650
QUESTIONS
?
INTERNAL
SERVICE FUNDS
An internal service fund is any fund that is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost reimbursement basis.
Currently the City utilizes a Vehicle Replacement Fund and a Compensated Absences Fund for these purposes.
Internal Service Funds
Budget Highlights
Maintains appropriate
reserve to meet expenses
and build limited reserves
for future fund resiliency
Proposed schedule for
vehicle replacement
includes replacement of
aged equipment and
purchase new equipment
Compensated absences
for Fiscal Year 22/23
proposed based on
meeting current payout
expectations
Compensated Absences
Expenditures and
Revenue are allocated
Based on General FTE of
Liability
Vehicle Replacement
Continued Investment of $361K includes
◦ Replacement of :
◦ Two Police Interceptor SUV’s
◦ Evaluating fuel efficient/environmentally friendly
vehicles
◦ Pending Public Works Flatbed Dump Truck Replacement
◦ New Equipment- Various as needed
◦ Repairs & Maintenance of Existing Fleet
COMPENSATE
D ABSENCES
FUND
Designed to maintain the
government wide
compensated absences
liability by billing out
proportionate usage and
balance to the appropriate
funds and departments.
Balances are changed to
address estimated annual
charges
QUESTIONS?
CAPITAL PROJECTS
PROPOSED BUDGET FOR FY 2022-23
NOTE: MULTI-YEAR PLAN PRESENTED TO PLANNING COMMISSION MAY 16, 2022
Streets Capital Projects
◦ 2021-22 Streets Construction & Improvements
◦ Street Paving Improvements and Maintenance
◦ West Side - Budget $3,439,000
◦ Bird Section – Budget $880,000
◦ Old Redwood Highway Traffic Flow – Budget
$615,000
◦ Continued Traffic Safety Improvements
◦ Various projects as needed including the
crosswalk improvement at Laguna and
Commerce.
◦ Budgeted $87,000
◦ Wayfinding Phase 2 of Kiosks – Budget $250.000
◦ Storm Drain Improvements – Budget $20,000
◦ Design of Projects for 2022/23 Forward (Quick
Strike & Redwood Drive) Total Budget $350,000
Streets Capital Projects
◦ 2022-23 Streets Construction & Improvements - $10,661,245 ◦ 2020 Street Construction and Improvements - Part 2 (Quick Strike) ◦ This project completes the 2020 Street Construction and Improvements Project and consists of rehabilitating La Plaza and West Sierra Avenue and bicycle and pedestrian safety improvements. Consists of rehabilitating 1 mile of streets
◦ Budget $2,890,000
◦ 2023 Pavement Rehabilitation
◦ This Project is to rehabilitate approximately 2 miles of streets. ◦ Budgeted $3,210,000
◦ 2023 Pavement Preservation
◦ Low-cost street maintenance project consisting of dig-outs and slurry seal treatments on streets in medium to good condition to maintain these streets in good condition. The streets in this project total approximately 5.4 miles. ◦ Budgeted $940,382
◦ Highway 116/West Cotati Avenue Intersection Safety Improvements ◦ The Project will realign and signalize the intersection of State Highway 116 and West Cotati Avenue. The Project will widen Highway 116 east and west of the proposed signalized intersection and create turn lanes and install bicycle and pedestrian features to improve safety and community connectivity. Design only.
◦ Budgeted $500,000
◦ 2022-23 Streets Construction & Improvements - $10,661,245 ◦ Redwood Drive and Cypress Avenue Pavement Rehabilitation ◦ Project will rehabilitate Redwood Drive and Cypress Avenue and include replacing faded and worn signage, upgrade bike lanes, enhance traffic calming features including striping to narrow lanes and create bike lane buffer, and upgrade noncompliant ADA ramps. Design Only. ◦ Budgeted $282,000
◦ Gateway Signage
◦ This effort will focus on enhancing the City’s monuments at entrance points as well as converting the La Plaza bulletin board to digital. In FY22/23, the Gateway monument areas will be designed. In FY22/23, the Gateway monument areas will be designed. Post-mounted entry signs at minor streets entering Cotati will be installed in FY 22/23. The major gateways into Cotati will be constructed in subsequent years.
◦ Budgeted $100,000
◦ Design and other Misc. Projects under $100K –
◦ Bicycle Pedestrian Safety Improvements $50,000,
◦ Loretto & Marsh to McGinnis Pathway Resurfacing $ 61,000 (carryover) ◦ Bench Installation at ORH and 116 Pedestrian Plaza $46,000 Streets Capital Projects
Parks Capital Projects
◦ 2022-23 Park Improvements - $2,326,500
◦ Kotate Park Improvements
◦ Implements Park Capital Plan improvements
for Kotate Park, including replacement of
park play equipment, relandscaping planter
areas, new bollard lights, and restroom.
◦ Budget $2,210,000
◦ Putnam Park
◦ This project includes the design of a Dog
park, perimeter pathway and pedestrian
bridge across the Laguna de Santa Rosa,
baseball field fencing, and various related
park amenities. Design Only.
◦ Budget $35,500
◦ Pocket Park
◦ Design and construction of pathways, bollard
lights, and benches in the pocket park food
forest.
◦ Budget $81,000 (carryover)
Building Capital Projects
Civic Center Windows & Exterior
Repairs:
• Replacement of City Hall windows
and trim along West. Sierra Avenue,
Civic Center Windows, as well as
trim replacement and repainting of
City Hall, Civic Center, and the
Cotati Room.
• Budget $1,038,000
Lighting & Landscaping Districts
◦ Funded by Zone Specific Property Tax Assessments.
◦ ZONE 10
◦ Altman Acres LLAD Streetscape Refurbishment
◦ Refurbishes the streetscape along Old Redwood Highway.
The project consists of removing and replacing the frayed and worn weed barrier, removing worn and broken drip
irrigation tubing and emitters, and removing and replacing dead or frail and dying shrubs and trees.
◦ Budget $25,000
◦ ZONE 8
◦ Loretto & Marsh to McGinnis Pathway Resurfacing
◦ Budget $ 20,000 (carryover)
QUESTIONS
?
Updates for General Fund
◦ Other Sources/Uses
◦ Bond Issuance Source -
$4,000,000 for Pension
Obligation ADP
◦ Interfund Loans to Water and
Sewer for their Proportionate
Allocation of Pension
Obligation Bond
◦ 2022/23 - Debt Payment for
Pension Obligation Bond
◦ Transfers In/Out
◦ 2021/22 Transfers In
◦ $170 K from Public Safety
Fund
◦ $1,772 K from ARPA 2021
Fund
◦ 2022/23 Transfers In
◦ $156 K from Public Safety
Fund
◦ 2021/22 Transfers Out
◦ $400 K to Grants Funds
◦ $2,272 K To Capital Projects
◦ 2022/23 Transfers Out
◦ $1,587 K To Grants Funds
◦ $1,580 K to Capital Projects
Other General Fund Updates
◦ City Managers Office
◦ FY 2021/22
◦ Onetime adjustment for Payout
◦ Increased Other Expense for Additional Newsletter Mailings for Non-Utility Residents ◦ FY 2022/23
◦ Adjusted Staffing FTE Removing City Clerk and Adding Admin. Assistant ◦ Adjusted Other Expense to include $25,000 for election expenditures ◦ Increased Other Expense for Additional Newsletter Mailings for Non-Utility Residents ◦ Fund Balance in Excess of 25% required
◦ 2021/22 – Estimated at 58% of Operating Expenses
◦ 2022/23 – Estimated at 61% of Operating Expenses
Conclusion
A balanced budget
maintaining prudent fund
balance levels. We will
continue to closely monitor
the operating funds to ensure
that we stay on track to
stabilize and begin growing
fund balances while also
undertaking the necessary
infrastructure maintenance
and upgrades
Operating reserve
requirements meet for both
Water and Sewer Funds
City staff will continue to
update the Council on any
significant budgetary
changes prior 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.
QUESTIONS
?