ENTERPRISE FUNDS
& CAPITAL FUNDS
Fiscal Year 2023-24
City of Cotati
Session Date : April 18, 2023
Study Session
Overview Tentative Schedule Budget Study Enterprise Funds Water/Sewer/Internal Service Capital Project Funds General Fund Update Conclusion Packet Provided Schedules Enterprise Funds Proposed Budget Workbook Capital Project Funds Budget Workbook Multi-Year Capital Projects Plan General Funds – Updated Workbook with Transfers and Other Sources/Uses
City Council Revised Department Projects
2 Tentative Schedule
3 Strategic Planning Session
•Developed City Objectives/Goals
Budget Focus
•Strategic Projects
March 7, 2023
City Objectives Revisit
Budget Study Session
•General Fund
•Revenues
•Expenditures By Departments
April 4, 2023
Budget Study Session
•Special Revenues
•Internal Service Funds
•Enterprise Funds
•Capital Projects
•Transfers In and Outs
April 18, 2023
Budget Adoption
May 25, 2023
Goals & Objectives
(Summarized)
Long Term Vitality
•Balanced Budget
•Economic Development
•Affordable & Proper Development
•Infrastructure Preservation
•Pursue Grant Opportunities
Climate Change
•Implementing the local goals in the adopted
“Climate Action 2020 and Beyond
•Community Communications
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 FUNDS
Enterprise Funds are used to account for operations
that 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 2023-24:
◦ 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, 2022, and adopted June 14, 2022.
◦ Interfund Debt Service Back to General Fund for UAL Contribution. ◦ Proposed Capital Project and Equipment Improvements:
◦ SCADA Server Upgrade & Relocation - $100,000 (Extended FY 2022/23 ◦ Well 1A Maintenance Improvements - $42,500
◦ Water Hydrant ATM - $75,000
•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 9.50%
•Consistent Water Consumption/Conservation
Changes in Operating Expenditures:
•Increased Rates per Study
•Reduced Consumption Conservation/Rain
•Reduced Connection Fees - Continuing
Change in Revenues:
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2019-2020
Total Activity
2020-2021
Total Activity
2021-2022
Total Activity
2022-2023
Adopted
2022-2023
EST Actuals
2023-2024
Proposed
Millions
Water Operating Funds - Revenues and
Expenses
Operating Revenues Operating Expenses
Water
Capital
Fund
◦ Continuing Projects ◦ Water Scada System ◦ Well 1A Maintenance ◦ Hydrant ATM
SEWER FUNDS
Sewer Funds Overview
◦ BUDGET ASSUMPTIONS
◦ Rate adjustment in FY 2023-24
◦ 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, 2022, and adopted June 14, 2022.
◦ Proposed Capital Project Improvements:
◦ Design for Cypress Ave. Sewer - $640,000
◦ SCADA Server Upgrade & Relocation - $100,000
• 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% in
2022/23 level in 2023/24.
Operating Expenditures:
• Increased Rates per Study
• Reduced consumption due to
reaveraging. (multiple years of
conservation)
• Reduced Connection Fees
• Conservative Reduction
Change in Revenues: $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
2019-2020
Total Activity
2020-2021
Total Activity
2021-2022
Total Activity
2022-2023
Adopted
2022-2023
EST Actuals
2023-2024
Proposed
Millions
Sewer Operating Funds - Revenues
and Expenses
Operating Revenues Operating Expenses
Sewer
Capital
Fund
◦ Continuing Projects ◦ Water Sewer System ◦ Continued Lateral Repairs ◦ Cypress Ave. Sewer Replacement (Advance of Street Project)
QUESTIONS?
CAPITAL PROJECTS
PROPOSED BUDGET FOR FY 2022-23
NOTE: MULTI-YEAR PLAN PRESENTED TO PLANNING COMMISSION MAY 16, 2023 Streets Capital
Projects
◦ 2023-24 Streets Construction & Improvements
◦ Street Paving Improvements and Maintenance
◦ 2024 Street Improvements - Budget
$601,000
◦ Redwood Drive & Cypress – Budget
$2,996,253
◦ Hwy 116/W. Cotai Ave Intersection Design
$544,000
◦ Continued Bicycle Pedestrian Traffic Safety
Improvements
◦ Gateway La Plaza Marquee– Budget $83,000
◦ Sidewalk Gap Closure projects $220,000
Parks Capital
Projects
◦ 2023-24 Park Improvements - $1,556,211
◦ Kotate Park Improvements Completion
◦ Implements Park Capital Plan improvements for Kotate
Park, including replacement of park play equipment,
relandscaping planter areas, new bollard lights, and
restroom.
◦ Budget $166,211
◦ 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.
◦ Budget $185,000
◦ Sunflower Park
◦ The project includes rebuilding the tennis/pickleball court, walkways, correcting site drainage, and desiring and installation of a play structure.
◦ Budget $1,055,000
◦ Veronda-Falletti Ranch Barns
◦ Initial design and studies on rebuild of the barns to expand the potential community programs and events
centered on agricultural themes.
◦ Budget $150,000
Building
Capital
Projects
◦ Civic Center Parking Lot
Improvements
◦ Project is to reconfigure the
Civic Center Complex parking
lot to comply with City and
State codes, for pedestrian
safety, add parking spots and
add Level 2 EV chargers.
◦ Budget $250,000
QUESTIONS?
Updates for General Fund
◦ Other Sources/Uses
◦ Interfund Loans with to Water
and Sewer for their
Proportionate Allocation of
Pension Obligation Bond
◦ Transfers In
◦ 2022/23 Transfers In
◦ $215 K from Public Safety Fund
◦ $605 K from Streets Improvement
Fund for Reimbursement for PY
General Fund Transfers for West
Side Street Improvements Project
◦ 2023/24 Transfers In
◦ $164 K from Public Safety Fund
Transfers Out
2022/23 Transfers Out
$ 187K to Grants Funds
$ 1,730K To Capital Projects
$ 809K for Debt Service
$ 91K for Successor Agency Coverage
and K-9 Fund Coverage
2022/23 Transfers Out
$2,589K To Grants Funds
$712K to Capital Projects
$810K to Debt Service
$30K to K-9 Fund
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?