Cotati City Council
May 23, 2023

City of Cotati
Fiscal Year 2023/24
Preliminary Version 5/15/2023
Last updated 05/19/23
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City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 1

TABLE OF CONTENTS
Introduction 4
Transmittal Letter 5
History of City 7
Elected Officials 13
Demographics 17
Organization Chart 22
Fund Structure 23
Budget Process 26
Basis of Budgeting 32
Financial Policies 33
GFOA/CSMFO Budget Awards 34
Budget Overview 35
Executive Overview 36
Strategic Goals/Objectives 44
Short-term Factors 46
Priorities & Issues 48
Long Range Financial Plans 49
Personnel Changes 52
Appropriations Limit 56
Funding Sources 60
Property Taxes 61
Sales Taxes 63
Other Taxes Including Cannabis Business Tax 65
Licenses, Permits, Rents and Other Agency Fees 68
Departments 70
City Council 71
City Manager 75
Administrative Services 81
Community Development 86
Public Works 92
Police 101
Recreation 108
Fund Summaries 113
All Funds 114
General Fund 120
Enterprise Funds (Water/Sewer) 134
Sewer Operating 140
Sewer Capital 145
Special Revenue Funds 149
Grants Fund 155
CDBG 159
MTC Street 161
Gas Tax 165
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 2 Traffic Mitigation 169
Park In-Lieu 173
PEG Fees 177
Public Safety 181
K-9 Program 185
In-Lieu Inclusionary Housing 189
Excess Bond Proceeds 193
Community Facilities District 196
Road Maintenance Rehabilitation Administration 199
Bed Tax 203
Parks Measure M 207
Linkage Afforable Housing 211
Disability Access & Education Revolving Fund 213
ARPA 2021 217
South Sonoma Business Park Assessment District 219
Successor Agency to The Cotati Community Redevelopment Agency 223 Internal Service Funds 227
Vehicle Maintenance and Replacement 228
Compensated Absences 232
Capital Project/Grants Funds 235
Capital Outlay 242
Capital Projects Fund 245
2022A Streets Projects 249
Capital Improvements 250
One year plan 251
Multi-year plan 256
Debt 264
Government-wide Debt 265
Supplemental Statistical Information 268
Sales Tax Statistics 269
Property Tax Statistics 271
Demographic and Economic Statistics 275
Appendix 276
Glossary 277
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 3

INTRODUCTION
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 4

CITY MANAGER'S MESSAGE
Damien O'Bid - City Manager
May 23, 2023
Mayor, Councilmembers, Residents, Community Organizations and Business Owners, Attached is the City of Cotati’s Fiscal Year 2023/24 budget. The budget is the primary policy document adopted by the City Council each year. This budget is developed in accordance with the City’s financial management policies and guidelines and reflects the City Council’s goals and objectives and how resources are allocated to achieve these goals. In addition, the budget serves as the annual financial plan, an operational guide, and a communication tool.

The Fiscal Year 2023/24 General Fund budget was prepared using a conservative approach on operations, while continuing to push hard to reduce deferred maintenance and improve the community through capital projects . Despite heavy cost cutting, it wasn't that long ago that the City's ability to fund basic operations, even without any capital projects, was in question. However, thanks to the community's overwhelming support of Measure S, the City has some breathing room. Therefore, this budget focuses on providing excellent core City services and continuing the aggressive push to reduce medium and long-term costs through infrastructure repair before this window of opportunity exists. In Fiscal Year 2022/23, the City Council continued heavy investment in the road system to reduce future maintenance costs, as well as a major renovation of Kotate Park. Long term risk continues to be operating costs consuming the budget and displacing the capacity for infrastructure repair and maintenance. Therefore, in this budget, the City continues to strategically fund projects that lower future costs (roads), improve the quality of life (parks), and promote economic development that will provide residents with jobs and services and the City with future revenue growth to stay ahead of cost pressures to provide excellent services and infrastructure.

In preparing departmental budgets for the new fiscal year, department directors were instructed to analyze their department expenditures for potential savings with the goal of keeping operational expenses flat.

Each department went through a detailed budget review focusing on the Council’s goals and priorities and evaluating departmental needs assessments. However, we are continuing to experience increased operating costs, including large increases in insurance costs across the cities that we pool risk with. We need to stay cognizant of those trends, remain fiscally prudent, and make selective and pragmatic decisions through this budget year.

Finally, this budget continues to move forward on City Council initiatives and priorities. The City Council has clearly communicated the need for many years to maintain core City services and invest heavily in repairing and maintaining our infrastructure. With the housing affordability crisis in the State, the City Council has been focused on housing development across income levels, as well as implementing equity in hiring, greater transparency in policing, and polices to mitigate and adapt to the continuing effects of climate change.

Highlights of the Fiscal Year 2023/24 budget include:

Strategic focus on economic development to ensure the long-term vitality of the City.

Improving core services while striving to expand services with increased efficiencies.

Meeting or exceeding the General Fund reserve policy target of 25%.

Meeting or exceeding the Enterprise Fund (Water & Sewer) reserve policy target of 33%.

Significant investments in improving our streets, parks and buildings.

Continued development of policy for new housing development across a range of income levels.

Continuing to look for opportunities to promote equity, transparency in policing and measures to mitigate and adapt to climate change.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 5 We have presented a balanced budget in conformance with California State legislation (California Constitution Section 18 of Article XVI) that requires anticipated revenues plus any use of fund balance to not exceed appropriations for expenditures. The goals, objectives, long-term planning, and departmental needs have guided the City staff in their recommendations for the Fiscal Year 2023/24 budget.

Sincerely,
Damien O’Bid
City Manager
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 6

A HISTORY OF COTATI
Dedication - most of the photos and information provided within this Historical Perspective were made possible by contributions by Lloyd and Prue Draper. Lloyd and Prue worked to create a comprehensive archive to preserve the history of Cotati for future generations. Thank you to the Cotati Historical Society for providing this perspective. 19th CENTURY
Long before the Europeans came to California; the fertile valley had been the home of Coastal Miwoks, a clan of Native Americans who lived well on the nuts, grains and tubers, berries, fish and game that abounded in this temperate climate. The Indian name of their village, Kota'ti, produced the legend of Chief Cotati, whose visage is featured in the City's logo.

In 1837, the Mexican government established a system of land grants, including the 17,234-acre Rancho Cotate, which encompassed what is now Cotati, Rohnert Park and Penngrove. At that time, the Sonoma County region marked the northernmost frontier of Mexican territory. The Mexican government was anxious to establish its hold on the area, since it was being eyed for takeover by several nations. In 1846, the  Bear Flag Rebellion, which led to the takeover of the Sonoma Fort, succeeded in displacing the Mexican domination of the region and the loss of the original papers deeding the Rancho Cotate.

Dr. Thomas Stokes Page
Dr. Thomas Page  purchased the Rancho in 1849, receiving a clear title seven years later, since the original deed had been lost. Dr. Page and his family continued to occupy the lands from 1849-1929, and left an indelible imprint on the very shape of the town. Dr. Page and most of the family members actually spent very little time living on the ranch. Two of the seven Page sons developed the land into a cattle and sheep concern, and until the early 1890's it remained largely unchanged.

Page Ranch - Hexagonal Barn
By 1895, the county road was built between Santa Rosa and Petaluma, passing directly through the hexagonally laidout heart of the new town. In 1909, this road would be incorporated into what was then called  California Route One, running from San Francisco to Crescent City. It was this road, along with the train station, which opened up the new town of Cotati as a convenient place to stop for travelers.  The construction of the center of the town in the hexagonal motif allowed the Page family to name each of the six peripheral streets after one of the seven Page sons. Wilfred, who supervised the project, named a train station and another street to the north after himself.

The exact source of the design for the city center remains a mystery, but there are at least two very good possibilities.

First is that it was patterned after the hexagonal barn at the Page ranch, which in turn may have been built along lines that were in fashion at the time of its construction. Another possibility is that it was fashioned after the radiating star plan which is prevalent in the layout of many European cities, as well as Washington, D.C. and Detroit, Michigan.

Whatever the reason for its design, it was deemed unique enough to gain State Historical Landmark status in 1973.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 7 EARLY 20th CENTURY
By the turn of the century, many parcels of Cotati land had been sold as small farms. The freight transportation offered by the railroad through town, the development of the new county road, and the sudden need for businesses serving a growing agricultural community, all combined to make Cotati something of a boom town. During the first decade of the century, churches, schools, meeting halls and homes by the score were built. By 1911, the town could boast that a thousand people had celebrated the Fourth of July there. Around the Plaza, businesses sprang up, including the Cotati Hotel. The November 1911 edition of The Northern Crown, a Petaluma journal, extolled the virtues of Cotati and its public-spirited inhabitants. The citizens of Cotati built and maintained their own public parks, built churches, schools and meeting halls. The trees they planted still stand.

Cotati Hotel
During the 20's, Cotatians had banded together to fight their own fires or else relied on the Santa Rosa department. The combination of high winds and tinder-dry summertime grasses helped to make parts of Cotati subject to frequent grass-fires. In an area where everyone knew, or knew of everyone else, it was natural to join together in saving one another's property and, in some cases, lives. By 1927, the number of structures and the size of the area needing fire protection necessitated the organization of the Cotati Volunteer Fire Department.

Cotati Volunteer Fire Dept.

During the 30's and 40's, agriculture continued as the most important influence in the Cotati Valley, and the town changed more slowly. In the 40's and 50's, small family farms were having a hard time surviving, and some of Cotati's agricultural lands began to develop as residential and commercial areas. The opening of the 101 freeway in the mid1950's made it feasible for San Francisco workers to commute to homes in Cotati.

BIRTH OF A CITY
"Incorporation will preserve the unity and pride of Cotati as well as its individuality." That was the heading on handbills urging voters to turn out at the polls on July 2, 1963.

The Cotatian Newspaper – Thursday July 4 1963
The town had developed by fits and starts since the turn of the century, and by the end of the 50's had become a closeknit community that clung fiercely to its claim of being "the Hub of Sonoma County." The  Cotati Chamber of Commerce was well known throughout the NorthBay Area for its vigor and enthusiasm. It had led a successful fight to get state approval of a local site for the new state college. The little town was proud to have its own water and sewer system and its top rated fire department. It seemed destined to continue its pattern of gradual growth, well insulated by green pastures from its metropolitan neighbors.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 8 By the fall of 1961, citizens of semi-rural Cotati and infant Rohnert Park, discontented with the level of services provided by the county, were exploring the possibility of merging their interests and incorporating as one city. A joint citizens' committee was formed, and a municipal expert, William Zion, was hired to conduct a feasibility study. By January 1962, however, a contingent in Rohnert Park had decided that a combined city wasn't to their liking, and filed notice of their intention to incorporate independently.

The election was held on August 21, 1962, and incorporation was approved. Rohnert Park was the name favored by 398 voters, while 128 diehards, still hoping that the neighboring communities might someday merge, voted to name the city "Cotati Park."
Cotatians, having studied incorporation, realized that incorporated cities had jurisdiction over development adjacent to their boundaries. It seemed inevitable that the new City of Rohnert Park would seek to extend its boundaries to take in the parts of Cotati that it found most desirable, gradually eradicating the close-knit pride-filled "Hub of Sonoma County." Facing the fact that one week after Rohnert Park's election the new city would become official, Cotati citizens swung into high gear. A citizens' committee spearheaded by Lloyd Draper, publisher of the Cotatian weekly newspaper, Dr. Bill Kortum, president of the Chamber of Commerce; real estate broker Joe Dorfman and county tax appraiser Sam Houser began gathering signatures on a petition stating Cotati's intention to form its own city.

On August 27, one day before Rohnert Park was to be officially declared a city, the Cotati committee filed its notice of intention to circulate incorporation petitions. Boundaries of the proposed city were roughly the same as the  Cotati Public Utility District. Thirty-seven citizens signed the petition which Draper presented to the Board of Supervisors, stating that incorporation "seemed necessary to retain the character of the town, preserve its name and guide its future growth."  The citizens agreed, and  on July 2, 1963, 83.9% of the registered voters, a total of 331, went to the polls and approved incorporation by an 84% majority - 284 yes to 49 no.

Candidates for the first City Council were Oliver Chadwick, Al Falletti, Harold Groom, Bernhard Grutgen, Sam Houser, Bud Howard, Tom Murphy, Stanley Olsson, Lyle Short, Russ Williams and Herb Winter. Top vote getter was Houser, who was subsequently chosen as Cotati's first mayor. Also winning seats on the first council were Olsson, Chadwick, Groom and Falletti, the latter two also continuing as directors of the Cotati Public Utility District.

A week after the election, Cotati was certified as Sonoma County's newest city. The City Council began conducting its business in the anteroom of Ed Lewitter's accounting office while hosting public meetings at the fire station.

One of the Council's first actions, on August 1, was to refuse salaries, stating that Cotati had been planned as a lowbudget city with volunteer workers, and the councilmen were sticking by their plans. "None of us wanted public office," Mayor Houser told a newspaper reporter. "We just wanted to keep Cotati the way it was."

THE SIXTIES
The year 1968 saw the birth of the counterculture influence on Cotati. The Inn of the Beginning came alive and brought nationally and internationally recognized musicians to Sonoma County. The major forms of music played were rhythm and blues, rock and roll, country and western, and folk.

The Inn of the Beginning
Hotbeds of Dissent
Coffeehouses have played a significant role as gathering places for the "Cotati counterculture" since the 70's. The Last Great Hiding Place  was popular in the mid-70's, with couches and armchairs in front and a theater in back. Many significant dramatic events and much political planning took place here.

When the Hiding Place closed, coffeehouse habitues found a new, if somewhat isolated, home at the Cotati Donut Shop in the Rancho Cotate Shopping Center.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 9 Soon after the Cotati Donut Shop closed, Lindy's New and Delicious opened, and the caffeine faithful flocked in, glad to be back in the central part of town and grateful for the couch, the art on the walls - and especially the typewriter.

The Freestore
The Freestore was a large shed from which many Cotati citizens outfitted themselves without charge. Vito Paulekas and others constantly organized the steady flow of cast-off clothes, shoes and accessories that were left there, creating a treasure trove of "finds" for indigent browsers. The "store" burned down and was rebuilt, vandalized and cleaned up again, surviving until 1983 when it was crushed flat by a semi-truck. Its influence was great on that peculiar style of dress known as the "Cotati look."
The Free Store
Cotati Company No. 2
In 1969, Irving and Irene Lipton closed their downtown variety store, and Brad and Liza Loop leased the building, delving into local history for its name: Cotati Company No. 2. They rented space as small as 12 square feet for as little as $10 a month to youthful entrepreneurs.

People built booths, clothes racks, or whatever they wanted, and went into business selling everything from  comic books and rolling papers  to candles, jewelry and clothing. The enterprise bustled along with ten or more merchants under one roof for almost two years until a fire closed it down.

The Bandstand and the Rebirth of La Plaza Park
Vito Paulekas and Karl Franzoni were  threatened with arrest while building the bandstand  in the Plaza - an "illegal structure" not sanctioned by the City - but they prevailed, and the bandstand, born to controversy, began its stormy life.

It immediately became the center for new energy in town. Large crowds began to gather on weekends, lured by free electrified rock 'n' roll. City Council meetings played hosts to two disparate factions: one wanted more music, facilities, sandboxes for the kids, the other demanded user fees, permits, an end to amplified music.

Picnic tables, benches and swings were built and installed by concerned citizens - often for free - and gradually La Plaza Park became the comfortable gathering place it is today.

The George and Arthur Streets Barricade
Residents of George and Arthur Streets by 1978 had had enough of the 3,000-plus cars per day which were using their residential neighborhood as a high-speed shortcut. They organized and descended upon the City Council, convincing them to block Arthur Street at East Cotati Avenue, stopping through traffic.

Many people who didn't live in the neighborhood took strong exception to the street closure, and a long, fierce battle began.  The barricade became a major political issue, and source of battles before the Council, Planning Commission and in the courts. Finally, in June, 1983, the City Council took the final legal step to declare the barricade permanent.

The George-Arthur Streets neighborhood has changed dramatically since the barricade was installed.  Children now abound, and the streets with their open ditches, free-form parking and sparse, slow-moving traffic, are reminiscent of a quieter Cotati of years ago.

Sonoma State University
Sonoma State University, located just outside Cotati's city limits, has played a significant role in the City's history since it moved onto its 220 acre East Cotati Avenue campus in 1966. Originally a state college, Sonoma State was granted university status in 1978. Having a major university nearby is certainly a cultural asset, but there has never been a shortage of culture in Cotati.

COTATI TODAY
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 10 For the past two decades, Sonoma County has been growing at a rapid pace, welcoming vast numbers of new residents to the area. Many of these transplants have moved to the area in an effort to escape the crowded city life of the larger Bay Area cities to the south such as San Francisco and San Jose. In 1990, the citizens of Cotati overwhelmingly voted to curtail the growth of the city by forbidding any annexation of land beyond a fixed urban boundary line. This highly popular self-imposed limit on annexation turned the focus on development inwards.

This rapid growth has provided a significant challenge to the City and to the preservation of its unique charm as a modern residential-focused community with strong historical roots in agriculture and music. Managing this growth has become one of the prominent issues facing the City. While many feared that too much growth would spoil the city's small town character, others felt that too little growth would cause more and more city residents to leave Cotati to shop at neighboring City shopping centers in Santa Rosa, Rohnert Park and Petaluma. They feared that this would cause the city's share of the sales tax revenue to wither, leaving the city unable to provide adequate city services. However, with the growth of a few key businesses that draw customers from those same neighboring cities plus the growth of online sales and the voter approved 1% sales tax, this concern has flipped to stabilizing revenues with more revenue diversification with economic development.

The City continues to work to enhance the downtown area, such as the new Information Kiosks for both locals and tourists, and to encourage business development. The City also has worked towards significant developments outside the downtown, including a successful industrial section and on a plan for mixed residential and commercial use developments on E. Cotati Avenue by the SMART train station. The City has also recently added Wayfinding Signage to enhance pedestrian and cycling routes, and is continuing development on the Gateway Project at the approach to the City on Highway 116.

The City is home to the Cotati Music Festival each June, the annual Kid's Day Parade and the internationally renowned Cotati Accordion Festival in late August.

If you would like to learn more about the City and its historical importance, please visit the Cotati Historical Society online at http://cotatihistoricalsociety.org/ (http://cotatihistoricalsociety.org/) or at the Historical Society Museum located in City Hall and open on Saturdays from 1 p.m. to 4 p.m. and also on the second Tuesday of each month from 5 p.m. to 7 p.m.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 11 Historical Society Video Walking Tour of Cotati
Visit the Digital Cotati Historical Museum Walking Tour online here .

City of Cotati Map
For a detailed map, visit: https://tinyurl.com/2p8tzej3 (https://tinyurl.com/2p8tzej3) City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 12 Your Elected Officials
Mayor Susan Harvey
Email: [email protected] Phone: (707) 792-4600 Ext. 193 Susan Harvey was elected to the City Council in November 2009 and re-elected in 2012, 2016 and 2020. She was appointed as Vice Mayor in 2011, 2016 and 2022 and served as Mayor in 2012, 2017 and 2023. She served on the Planning Commission from November 2008 to November 2009.

Councilmember Harvey currently serves as Cotati's representative on the Sonoma County Waste Management Agency (SCWMA), Santa Rosa Plain Groundwater Sustainability Agency, Sonoma County Transportation Authority/Regional Climate Protection Agency, Association of Bay Area Governments (ABAG) and Marin/Sonoma Mosquito Vector Control District. She serves on the Board of Directors of the Northbay Division of the League of California Cities and Sonoma Local Agency Formation Commission (LAFCO) representing Sonoma County. She serves as an alternative representative for REMIF/CIRA Board of Directors and Cotati Chamber of Commerce liaison.

A long-time volunteer, Susan has worked on behalf of community activities such as the Cotati Accordion Festival, the Jazz Festival, Oktoberfest and Cotati Historical Society. In 2011, Susan was selected as Cotati’s “Citizen of the Year”.

Susan and her husband have resided in Cotati since 1978, where they have raised their three children. She enjoys sharing our community and its events with her grandchildren. Having lived 45 years in Cotati, Susan brings a deep knowledge and familiarity of the uniqueness of our community. Susan brings over 30 years of management experience from a major local employer. Difficult budgets, painful decisions and working through differences of opinion are all common occurrences when working in such an environment. She brings skills in team work and consensus building for the betterment of the community and its long-term sustainability.

Councilmember Harvey is devoting her energy to preserving community police, maintaining essential city services, recreational opportunities for our youth and seniors, fiscal responsibility, working to increase volunteerism, supporting policies that enhance existing business and attract new business. Additionally, Councilmember Harvey has seized the opportunity for our community to be well represented in Sonoma County efforts for sustainability of water, waste management, education for all and improving health outcomes.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 13 Vice Mayor Laura Sparks
Email: [email protected] Phone: (707) 792-4600 Ext. 194 Council member Laura Sparks was elected to City Council in November 2020 for a four-year term.

Laura Sparks has lived in Cotati since 2016. After earning a B.S. in physics from Arizona State University and a master’s degree in Physics at the University of Massachusetts, Amherst, she relocated to Livermore, California in 2006 to pursue a career teaching at the community college level. She had been able to attend state schools thanks to publicly-funded financial aid programs, and she wanted to work giving students the same opportunity to get an education and excel regardless of economic background. She was drawn to the California Community College system because its low tuition and support programs make it truly accessible to all. In 2009 she moved to Sonoma County to teach astronomy full-time at Santa Rosa Junior College (SRJC), where she continues to teach today. During her time at SRJC, Council member Sparks has taken on a variety of leadership roles, including Academic Senate parliamentarian and department chair of Earth and Space Sciences.

Council member Sparks has been a frequent volunteer at science outreach events throughout Sonoma County, and served as a board member of the Sonoma County Astronomical Society. She is an educational affiliate member of the American Astronomical Society and a member of Astronomers for Planet Earth, an organization of professional astronomers, educators, and students who advocate for climate action.

Her priorities include transparent, inclusive, and participatory local government, working to combat and mitigate the effects of climate change, promoting affordable and attainable housing, anti-racism, and helping local residents and businesses to survive and thrive in a time of unprecedented challenges.

Council Member Ben Ford
Email: [email protected] Phone: (707) 792-4600 Ext. 196 Ben Ford was elected to City Council in 2020. He earlier served on Cotati’s Planning Commission (2011-19) and Design Review Committee (2009-10). Some of his favorite organizations to volunteer with over the years have been Cotati Creek Critters, Transition Cotati, Daily Acts, and the North Bay Organizing Project.

Ford represents Cotati on the Boards of the Russian River Watershed Association and the Sonoma Clean Power Authority.

Councilmember Ford moved to Cotati in 2003 with his wife and their two kids. He teaches mathematics at Sonoma State University, where he has served as Chair of the Mathematics and Statistics Department and on two occasions as Chair of the University Faculty. He serves on professional bodies that help shape math education guidelines for the State of California. He tries to get outdoors on his bike or in his hiking boots whenever possible.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 14 Council Member Sylvia Lemus
Email: [email protected]  Phone: (707) 792-4600 ex. 201 Councilmember Sylvia Lemus was appointed to the City Council in 2022 for a full four-year term, ending in December 2026.

Prior to her appointment to City Council, Lemus served as a Cotati Planning Commissioner starting in February 2020 and was the Chair of the Planning Commission in 2022.

Sylvia Lemus has been a resident of Cotati since 2008 and has been a lifelong resident of Sonoma County. Councilmember Lemus has been a founding member of community organizations including Los Cien Sonoma County and Santa Rosa Cinco de Mayo organizations. She has also served on several boards and task forces and volunteered for numerous organizations including Hispanic Chamber of Commerce, LandPaths, Community and Law Enforcement Task Force, Latino Alliance of Rohnert Park/Cotati, and the Sonoma Speedway Children’s Charity.

Councilmember Lemus has been in local county government for over 33 years, specializing in human resources and communications, and looks forward to retirement at the end of 2022. Her long career gave her a diverse and in-depth experience into how government works at all levels. Councilmember Lemus was also instrumental in the county’s racial equity efforts and was involved on related committees and provided input to the development of ongoing policies at the county level. Sylvia Lemus has also embarked on a new wine business startup in partnership with family. Through her appointment, Lemus has become the first Latina Councilmember in Cotati’s history, a source of great pride to Lemus, her family, and her entire community.

Councilmember Lemus’ primary goals include engaging our diverse community, anti-racist policies, climate issues, housing affordability, community safety, small business support, interjurisdictional collaboration, and keeping Cotati as a place where all residents can live and thrive.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 15 Council Member Kay Rivers Ph.D.

Email: [email protected] Phone: (707) 792-4600 ex. 202 Councilwoman Kathleen (Kay) Rivers, Ph.D. was appointed to the City Council in 2022 for a four-year term.

Kay has served on multiple Boards in the local area, including Petaluma Pride, the Unitarian Universalists of Petaluma, and is a proud member of the Cotati Historical Society. Before joining the Cotati community, she served many progressive causes including: the San José City Library and Education Commission, Billy DeFrank LGBT Community Center Board of Directors, and the Santa Clara County CEDAW Taskforce.

Professionally, Kay works as a public-school teacher at a continuation high school. She holds a doctorate in Psychology, a Master’s degree in Organizational Management, and a Bachelor’s in Spanish. Kay has authored, The Weight of Abuse: Releasing Fear and Feeling Safe in Your Body and contributed the chapter, "Lesbian Teacher Believes in You" to the best-selling book, It Gets Better: Coming Out, Overcoming Bullying, and Creating a Life Worth Living. She recently completed her first novel, titled, After The Flash.

Personally, Kay is an out-lesbian mother of three, who's been married since 2000. She's raising chickens, cultivating herb and vegetable gardens, and researching how best to restore Cotati’s native flora and fauna. Kay's wife works for a local meditation center; her daughter graduated from UCSB in 2022; her older son is an active-duty United States Marine; and her youngest is attending Santa Rosa Junior College. Having grown up in a small town, Kay is dedicated to building community, promoting conservation, supporting local small business, advocating for anti-racism, balancing affordable housing with maintaining a small-town feel, and serving as a listening member of our community.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 16 Population Overview

TOTAL POPULATION
7,584 1.7%
vs. 2019

GROWTH RANK
212 out of 493
Municipalities in California

DAYTIME POPULATION
6,357
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses 1990
1991
19921993
1994
1995
1996
1997
19981999
2000
2001
20022003
2004
2005
2006
2007
20082009
2010
2011
20122013
2014
2015
2016
2017
20182019
2020
5500
6000
6500
7000
7500
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 17 Household Analysis

TOTAL HOUSEHOLDS
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
* Data Source: Cotati, CA 2020
12%
lower than state average
Family Households
44%
57%
higher than state average
Senior Living Alone
21%
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 18 Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.

HOUSEHOLD INCOME
Above $200,000
13%
6%
lower than state average
Median Income
$86,982
11%
higher than state average
Below $25,000
16%
3%
higher than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
B elow $25,000
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 19 Housing Overview
2023 MEDIAN HOME VALUE
$620,000
* Data Source: Cotati, CA 2023

HOME VALUE DISTRIBUTION
* Data Source: 2020 US Census Bureau
(http://www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS RENTERS
Cotati
44%
Rent
56%
Own
State Avg.
45%
Rent
55%
Own
* Data Source: 2020 US Census Bureau
(http://www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
201520162017
2018
2019
2020
2021
20222023
300k
400k
500k
600k
700k
800k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 20 Cotati Provided Demographic Data
City staff have provided updated data points for the following graphic data provided herein:
- Household Analysis - using the 2020 US Census data recalculated the percentage of each household type. - Housing Overview - staff obtained the April 2021, April 2022, and March 2023 median home values for the City from Redfin https://www.redfin.com/city/4316/CA/Cotati/housing-market   City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 21 Organizational Chart
The citizens of our community are the start of our City government. Citizens elect and have the power to recall the City Council. City Council independently hire both the City Attorney and City Manager. The City Attorney, John Bakker, works for an outside third party legal firm that focuses on municipal law. The City Manager, Damien O'Bid, then manages the operations of the City including the 4 bargaining units; (1) Non-Rep, (2) CEA, (3) CPOA, and (4) CPOA.

Those individuals highlighted in green are outside consultants and not employed by the City.

Staffing for each department, including the positions and names, are included within the detailed department pages within the budget.

Cotati Citizens
City Council
City Manager
City Manager's Department
Recreation Department
Administrative Services DepartmentCommunity DevelopmentPublic Works and Engineering
Police Department
City Attorney
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 22 Fund Descriptions and Structure
The operating budget document includes City-wide information as well as information specific to each fund and each department. The City receives revenue from numerous sources, many of which have restrictions on how they can be used. Separate funds are established to account for the different types of revenues and the allowable uses of those revenues. The annual budget information is available after the publication of the annual Adopted Budget.

Accounting Basis
Governmental funds, such as the General Fund, are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, revenues are considered available if they are expected to be collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Proprietary funds, such as the Water and Sewer Enterprise Funds, distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations.  The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. Operating expenses for the enterprise funds include the costs of providing services, administration costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Fiduciary funds, such as the Successor Agency Fund, track assets held by the City in trust which are presented using the economic resources measurement focus and the accrual basis of accounting.  Economic resources measurement focus is a method of financial reporting where statements report all inflows, outflows, and balances affecting or reflecting an entity's net position including all assets that are available to the entity, not just cash or soon to be cash assets.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 23 Descriptions & Structure of City Funds
General Fund
One of the most commonly heard terms in municipal budget discussions is the General Fund. The General Fund is the largest fund that the City of Cotati maintains. The two major revenue sources for the General Fund are Sales Tax, and to a lesser degree, Property Tax. These revenue sources are dependent on the economic environment and can fluctuate from year to year.

Sales Tax - Cities and counties administered local sales tax ordinances with varying tax rates and exemptions until 1955 when the California Legislature passed the Bradley-Burns Uniform Local Sales and Use Tax Law. This law laid the groundwork for a sales tax system that authorizes the State Board of Equalization to collect all sales and use taxes and distribute 1% of the sales tax to cities and counties.  In November 2020, Cotati voters also approved Measure S, a 1% transactions and use tax. With Measure S, the total sales tax rate in the city of Cotati is 9.50%.

Therefore, the city receives a total of 2% of the 9.50% in sales tax, with Bradley Burns and Measure S.

Property Tax - State statutes provide that the property tax rate be limited generally to 1% of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt.

Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the "Teeter Plan". Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

Other Revenue - Other General Fund revenue sources are impacted by the economic environment, but not to the same degree as sales, property, and transaction and use taxes. These other sources include; Business License Tax, Permits and Franchises, Rents; Revenue from Other Agencies, Charges for Services, Transfers from Other Funds, and Other Revenues.

Enterprise Funds
Enterprise Funds are for specific services that are funded directly through user fees. As the second-largest fund type in the City, the Enterprise Funds are fully self-supporting and are not subsidized by tax money from the General Fund.

Cotati’s Enterprise Funds include Water Operating and Capital Funds (401 & 402) and Sewer Operating and Capital funds (404 & 405).

Special Revenue Funds
Special revenues are monies received for a specifically identified purpose. Examples are Community Development Block Grants (202), Gas Tax (203), and MTC Streets (204) funds.

Capital Projects
Capital project funds are financial accounts that are used to track the building, renovating, or purchase of equipment, property, facilities, parks, and other infrastructure or information technology systems which are to be used as a public asset or to benefit the public. Examples of these funds for the City are Grants Fund (201), Capital Outlay (604), and Capital Projects (605).

Debt Service Fund
Projects This is a new fund for the City which records the accumulation of resources and payment of principal and interest on general long-term obligations and payments on contractual obligations. These debt service payments are supported by operating transfers from the General Fund and Enterprise Funds.

Internal Service Funds
Internal Service Funds account for activities that provide goods and services to other departments or funds on a costreimbursement basis.

Fiduciary Funds
The City fiduciary funds are made up of the private purpose trust fund as well as the Custodial Fund.  The private purpose trust fund that accounts for all the assets, liabilities, and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012.  The Custodial Fund is the South Sonoma Business Park Assessment District which facilitates a special assessment debt service charged to landowners for the financing provided to develop the business park.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 24 Identification of Major Funds
In line with GASB 34, the City defines major funds as funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of the corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that the fund is particularly important to financial statement users.

City's Budget Major Funds
The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The City Capital Projects Fund consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, facilities, including buildings, parks, information technology systems and non water/sewer infrastructure and which are to be used to benefit the public.

The 2022A Streets Projects consists of special lease bond funds to be used on streets improvement projects.

The Lease Debt Service Fund is a new debt service fund established to refund the unfunded pension liabilities.

The City reports the following major proprietary funds:

The Water Fund accounts for the operations of the City's water treatment and distribution system.

The Sewer Fund accounts for the operation of the City's wastewater collection activities.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 25 Budget Development
The budget is the City’s financial plan for delivering effective services and efficiently managing the revenues which support those services. It is an essential component of the City’s process for financial planning, management, and control. The budget is a plan of revenue and expense activities for the fiscal year and is intended to provide a clear, concise, and coordinated financial program to attain the City’s goals and objectives. Revenue estimates are derived using historical and economic data on the state and local levels.

The budget is also developed based on the following:

The community and City Council’s priorities are identified through annual strategic planning and budget workshops.

Service level prioritization, as identified by the City Manager Availability and sustainability of revenues
Legal mandates
Prioritized capital projects
Responsibilities
The Director of Administrative Services has the overall administrative responsibility for planning, coordinating, analyzing, preparing, and issuing the budget.

Each Department Director is responsible for preparing and submitting the budget for the department and its subsidiary divisions in accordance with the budget instructions.

The City Manager, in close consultation with the department directors, is responsible for making the final determination of the proposed budget to be submitted for approval to the City Council.

The City Council is responsible for setting the City’s priorities and approving the annual operating budget.

Budget Adoption - Resolution 2023-XX
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 26 Budget Timeline
From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. The schedule below is the summary of the public planning and reporting meetings for the current budget cycle.

Mar 7, 2023
Public Strategic Planning Session
- Develop Objectives
- Budget Focus
- Strategic Projects
Apr 4, 2023
Public Budget Study Session
- General Funds
- Revenues/Expenditures
- City Council Goals
- Departmental Special Projects
Apr 18, 2023
Public Budget Study Session
- Enterprise Funds
- Water and Wastewater
- Capital Projects
- General Fund Transfers for Capital Projects Impacts
- Special Revenues
- Internal Service Funds
May 23, 2023
Tentative Budget Adoption
Jul 1, 2023
Budget Installed for Fiscal Year 2023/24
Estimated Budget revised for Fiscal Year 2022/23
Oct 24, 2023
First Quarter of Fiscal Year 2023/24 Financial Reporting Jan 23, 2024
Mid-Year Budget Evaluation and Financial Reporting
Feb 13, 2024
Strategic Planning for Fiscal Year 2024/25
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 27 Apr 9, 2024
Third Quarter of Fiscal Year 2023/24 Financial Reporting Cotati's Budgeting Process Video
Check out our video on What is a
City Budget ?
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 28 Budget Development Process
Preparing the Budget
The budget development process is the formal method through which the City establishes its program priorities, goals, and service levels for the upcoming fiscal year. Through the budget development process, programs are established, service levels are expressed, performance measures are articulated, and resources are identified.

The City of Cotati prepares a "line item budget." The intent of this format is to provide the City Council with summarized yet detailed budget information by department. At the same time, the overall focus of the budget is on policy direction and departmental activities, with emphasis on the level and cost of each City service, what services are being proposed, and the effect of these activities on general public welfare.

From October to December, the City Manager and Director of Administrative Services hold a series of planning meetings to analyze financial performance as of Mid-Year as well as determine preliminary budget guidelines for the upcoming fiscal year. Following these planning meetings, the budget calendar is developed. The budget calendar provides a time frame for the planning and preparing of the City budget.

From January through February, the Administrative Services Department drafts the budget guidelines, instructions, supporting materials, and establishes and assigns digital department budget workbooks within the ERP system. These budget guidelines include; new budget policies for the upcoming fiscal year, department digital reports with historical actual and proposed operating revenue and expenses, and departmental variance analysis (actual year to date versus budgeted financial activity) and forecast analyses. Based on policy direction provided by the City Council through the City Manager, departments prepare their budget requests for the City Manager's review. As needed, the Administrative Services Department provides technical assistance to the department staff involved in preparing budgets for their departments.  When the department budgets are completed, the department director reviews them and digitally submits them for review to the Administrative Services Department.

Simultaneously, the Administrative Services Department generates budgets for non-departmental budget items including all personnel salaries and benefits as well as nondepartmental contract services. Additionally, the Department of Public Works and Engineering updates their projections and timing of the multi-year capital project program.

The Administrative Services Department compiles the departmental budgets and adds the non-departmental budget items and salaries and benefits costs into a draft line item budget rolling up to a single City-wide budget. With the departmental input, the Administrative Services Department performs an initial analysis comparing all revenue and expenditure projections for reasonability and to ensure that they adhere to the budget guidelines and that no category has been overlooked.  Using the consolidated budget, the Administrative Services Director, City Manager and Director of Public Works and Engineering run capital project funding scenarios based on the proposed multi-year capital project program. Once a scenario is reached that allows for appropriate fund reserves and compliance with City objectives, the proposed transfers of funds for meeting the funding needs for capital projects is then added to the compiled City-wide budget.

The City Manager, Director of Administrative Services, and Department Directors meet between March and the end of April to review the draft digital budget, make necessary adjustments, and determine which of the proposed new programs will be presented to the City Council for adoption. These meetings are an opportunity for each department and division to present their proposed budget and their justifications for new programs, and to enhance the City Council's knowledge of operational needs to meet City objectives. The Administrative Services Department confirms the results of the digital budget workbooks and recommendations for the City Manager's approval.

From May through June, the City Manager presents the final recommendations to the City Council as the Proposed Budget. The City Council's review includes citizen's input at public hearings and budget workshops. Upon completion of the review and all budget modifications, the budget is adopted by resolution of the City Council. The Council also adopts the City's appropriations limit in conformance with the California Constitution, Article XIIIb.

Continuous Budget Monitoring
Once in place, the adopted budget becomes the main internal control document used to monitor and manage the City’s financial position. Monthly Revenue and Expenditures Reports are provided to department directors indicating revenue and expenditures for the month and year to date. This data is intended to help department directors control expenditures and track revenue. Department directors review the reports and investigate significant variances between actual revenues and expenditures and the budget projections. During this review, additional fund requirements may be City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 29 identified for specific items or projects that were unforeseen at the time of initial budget adoption. Accordingly, recommendations for additional appropriations are considered by the City Manager, submitted for approval to the City Council, and adjusted within the budgetary software by the Administrative Services Department.

Generally, the budget is formally amended at mid-year and at year-end. Additional appropriations, which were approved during the year, are added to the Adopted Budget and presented to the City Council as the Amended Budget. After Council's review, the Amended Budget is adopted by resolution.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 30 Budgeting 101 FAQ's
WHAT IS A MUNICIPAL BUDGET?
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal year. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.

WHO DEVELOPS THE CITY BUDGET?
Each year the City Council and City staff work together to develop an Annual Budget with public input through a series of public strategic planning and budget workshops in the spring. While the Budget is being created, all parties must make decisions on how to utilize the finite amount of revenue that the City receives in order to produce the greatest benefits for the citizens.

WHAT DOES THE CITY BUDGET DO?
The Budget serves as a guide and an outline of how the funds should be spent to provide, maintain, and improve services to the City. The City Council, City staff, and the public all serve as participants in its creation and execution. The City is limited by the number of resources available, and as such, the Budget aids officials in determining which objectives have the highest priority and will produce the greatest positive impact on the community. Budgets are also created for linking near-term goals with available resources while keeping in mind long-term goals and resources.

HOW IS THE BUDGET CREATED?
The budget is created by first establishing the goals and priorities for the City as determined by the Council during annual strategic planning meetings with City staff and the public. Once these goals are determined, a draft is created to accomplish those goals and priorities. Actual expenses and revenues from past years are also analyzed and reviewed to aid in forecasting expenses and revenues. The draft Budget is then discussed in a series of public workshops to receive additional input from the City Council and the public. The Budget must be formally adopted by the City Council by June 30th each year. Once the City’s budget is adopted by the Council, the budget becomes an essential oversight tool in the city’s operations.

WHAT IS A CAPITAL IMPROVEMENT PLAN?
A multi-year capital improvement plan is a plan created by the City to identify needed construction projects and equipment purchases. This plan provides a timetable for construction phases as well as requirements for funding sources. The multi-year capital improvement plan includes City projects such as park improvements, street pavement maintenance, sewer and water system improvements, traffic signal and street lighting installations, and City facility construction or improvement.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 31 Basis of Budgeting
A municipal budget is a legally required management and planning tool to forecast expenditures and revenues the City will incur in the upcoming fiscal year. It is neither actual revenue nor actual expenditures, but a tool to plan for the desired level of expenditures with the expected level of revenue. The budget is constantly monitored throughout the year to make adjustments so that at the end of the year the budget is in balance.

The budget is prepared in accordance with Generally Accepted Accounting Principles. The budgets for all funds have been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures at the point in time when the related fund liability is incurred, not necessarily when the liability is actually paid. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Each fund is estimated prior to the end of the fiscal year utilizing the same basis of accounting that is used for the same fund within the final audited financial statements once the Fiscal Year is closed.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 32 Financial Policies Summary
Financial policies are essential and central to a strategic, long-term approach to financial management of the City by the elected officials and staff.  Financial policies also create and define a shared understanding of how the City will develop its financial practices and manage its resources to provide the best value to the community and provide structure, boundaries and limits on the actions City staff may take. The formal adoption of financial principles and policies promotes public confidence, enhances transparency and provides continuity over time.

The financial policies provide a structured, central repository for a variety of fiscal policies and are organized into the following categories including; General Financial Principles, Annual Operating Budget Policy, Capital Improvement Program, Revenues, Expenditures, Cash Management, Debt Management, Fund Balances, Financial Reporting, and Review and Updates. Additional financial policies that are approved separately from the financial policies include; the Reserve Policy, Investment Policy, Unfunded Accrued Liability Management Policy, Purchasing Policy and Capital Asset Policy. Please see the full financial policies attached below or on our city website here .

Reserve Policy
The Government Finance Officers Association (GFOA) recommends that city governments maintain an unrestricted General Fund balance of no less than 2 months of regular General Fund operating revenues or regular General Fund operating expenditures. This amounts to 16.7% of either General Fund operating revenues or regular General Fund operating expenditures. The reserve policy adopted by the Cotati City Council maintains a minimum of 25% of the annual operating expenses, thus exceeding the GFOA recommendations. This policy ensures there are funds available for significant, unanticipated events since these reserve funds can only be used with a majority vote of the City Council, and for specific circumstances (see Cotati Financial Policies attachment below, pdf pages 15-17).

Investment Policy
The Investment Policy of the City guides investment of public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City, while conforming to all state and local statutes governing the investment of public funds (see Cotati Financial Policies attachment below, pdf pages 18-33).

Unfunded Accrued Liability Management Policy
The Unfunded Accrued Liability Management Policy was added to the City in order to add fiscal discipline and promote future financial stability. This policy developed budgetary actions to facilitate accelerated payoff of future Unfunded Accrued Liabilities (UAL) and is structured to ensure that all pension funding decisions are structured to protect both current and future taxpayers, ratepayers, employees and residents of the City (see Cotati Financial Policies attachment below, pdf pages 34-35).

Purchasing Policy
The City Purchasing Policy outlines the purchasing procedures that apply to all City purchases, including proper procurement, competitive bidding, contract services, recycled products and local vendor preference, credit card management, and emergency exemptions (see Cotati Financial Policies attachment below, pages pdf 45-70).

Capital Asset Policy
The Capital Asset Policy conveys the proper and approved financial treatment of expenditures for assets, and establishes thresholds in financial reporting. In addition, the asset policy defines specific controls over the safeguarding and maintenance of all assets in order to reduce the risks of loss through theft or mismanagement (see Cotati Financial Policies attachment below, pages pdf 71-83).

Summary
These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing longterm strategies to deliver efficient services to the public. See the attachment below for copies of the adopted financial policies and financial procedures in place for the City of Cotati as of May 23, 2023.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 33 GFOA Budget Award
The City of Cotati staff are the proud recipients of their fifth consecutive Distinguished Budget Awards from the Government Finance Officer Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO).

This represents a significant achievement by the City and reflects the commitment of the City Council and staff to meet the highest principles of governmental budgeting. In order to receive the budget awards, the City had to satisfy nationally recognized guidelines. These guidelines are designed to assess how well an entity's budget serves as:
• a policy document
• a financial plan
• an operations guide
• a communications device

PENDING NEW CERTIFICATE
CSMFO Operating Budget Excellence Award
California Society of Municipal Finance Officers (CSMFO) is California’s premier statewide association that promotes excellence in financial management through innovation, continuing education and the professional development of its members. The CSMFO Budget Awards Program is designed to recognize those agencies that have prepared a budget document that meets the highest criteria and standards applied to municipal budgeting.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 34

BUDGET OVERVIEW
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 35 Executive Overview
This overview provides a summary of the significant budgetary items and trends for the City of Cotati as of budget adoption.

As this is a summary, users of the budget should also refer to detailed information as provided within the fund and department summary pages. The City additionally provides a budget in brief document as a very high level summary of what is going on in our City right now and the financial implications.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 36 Economic Outlook & Intergovernmental Considerations
Just over three years ago, the World Health Organization declared the COVID-19 outbreak a pandemic. Subsequently, in 2022, the economic environment was significantly impacted by the start of the Russia-Ukraine war and global inflation.  Now in 2023, the US has seen the collapse of three large banks, First Republic Bank, Silicon Valley Bank and Signature Bank, which were the largest banking failures since Washington Mutual in 2007-2008. Additionally, as of May 23, 2023, the US Treasury Curve remains inverted with the short term rates increasing and long term rates declining do to uncertainty around the debt celing and looming potential default of the Treasury Bonds. All these factors continue to dominate the ongoing uncertainty surrounding the global, national, and local economic outlook.

Global
The World Economic Outlook  provided in April 2023 builds on expectations that are highly uncertain with high inflation and the on-going invasion of Ukraine. The baseline projections include a growth decline of 0.6% to 2.8% in 2023 from 3.4% in 2022, followed by a minor increase of 0.2% to 3.0% in 2024. However, due to the uncertainty and financial sector stressors, there could be a much more significant decline. A piece of this is do to global inflation, which is set to fall in 2023 based on normalization of commodity prices. However, core inflation will decrease more slowly. Finally, on the global scale, the international monetary fund report points out that due to the worldwide Covid-19 crisis, public debt ratio as a part of gross domestic product (GDP) increased significantly as governments injected cash into their national economies to avoid financial crisis during shutdowns and to spur development and distribution of vaccines to help end the pandemic crisis. These significant portions of GDP are not anticipated to decline. Overall, the outlook warns that national financial policy makers, "need to remain steady with their tighter anti-inflation stance, but also be ready to adjust and use their full set of policy instruments-including to address financial stability concerns - as developments demand."  National
According to the non-partisan Congressional Budget Office (CBO) economic outlook for 2023-2033 , the national economy for 2023 is projected to remain static with increasing unemployment but decreasing inflation. In 2022, the GDP increased by

2.1% compared to the increase of 5.9% in 2021. Primary changes in the GDP were increases in consumer spending and exports and offset by residential investment and federal government spending. As mentioned in the last years budget summary, 2022 had pent-up consumer demand meeting the highest pace of inflation in the United States in 40 years. To address these points,  the Federal Reserve initiated fiscal policy to increase interest rates. Due to this fiscal policy, the interest rates are projected to continue to remain higher through 2023, then gradually decrease in the next few years as inflation continues to slow. Historically, interest rates in the United States averaged 5.42% from 1971 until 2023, reaching an all-time high of 20.0% in March of 1980 and a record low of 0.25% in December of 2008. As of May 2023 the national interest rate is 5.25% . As stated by Governor Lisa D. Cook at the 2023 Midwest Economics Association annual Meeting on March 31, 2023, "As energy prices have moderated and supply disruptions have eased, inflation has started to abate. However, the process of returning inflation to 2 percent has a long way to go and is likely to be uneven and bumpy." Nationally, the unemployment rate continues to hover just over its pre-pandemic level of 3.4% in April of 2023.  According to the CBO, reflecting the expected slowdown in economic growth, the overall rate of unemployment is projected to rise to 5.1% by the end of 2023, averaging 4.7% for 2023 as a whole. Thereafter, the unemployment rate is projected to decline gradually beginning in the second quarter of 2024, falling to 4.5% by the end of 2027. According to the US Bureau of Labor Statistics in the month of April 2023,  employment continued to trend up in professional and business services, health care, leisure and hospitality, and social assistance . So far, in 2023 average hourly earnings have increased by 4.4% and average weekly hours for all employees are consistent at 34.4 hours.

Due to increased inflation, U.S. households' real disposable income fell 1.4% in 2022, and households relied on savings that had been accumulated during the pandemic as well as higher wealth to fund continued consumption. These activities lead to the personal savings rate falling to 3.2%, it's the lowest level since the Great Recession in 2008.  Projections for 2023 show that households appear to be pulling back on spending in large part due to anxiety around jobs and inflation. According to an Article by McKinsey & Company, A monthly update on the state of the US consumer: April 2023, " Still, more than one in five consumers are expecting darker days ahead: 22 percent are predicting a US recession and long-term economic pain. And nearly half of survey respondents report having a “mixed” outlook: they expect the economy to recover but not for another six to 12 months." 
State
Consistent with the global and national economic projections, California's economy is projected to weaken in 2023.  Specific contributing factors for California include the decline in tech sector growth with connections to the failure of Slicon Valley Bank and the impacts of high inflation and rising interest rates on capital investments needed specifically in housing development.
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City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 37 As of January 2023, there are 1.25 million job openings in California, but only 800,000 unemployed workers. Given the labor shortage, in terms of percentage increase, California’s job growth has been about five times slower than states such as Florida and Texas. Additionally, the state’s overall has added jobs since the pandemic started, but with fewer workers active in the California economy. This is contradictory statistics which point to an possibility of an increased number of individuals holding multiple jobs  . One area that can help stabilize this factor is the correction of increasing immigration flows in 2023 both from international sectors post pandemic and throughout the nation as job growth in other states decline.

For Californian homeowners, the cost of a mortgage for a median priced home jumped from around $2,400 a month in February 2020 to around $4,100 as of January 2023, a 73% increase. This higher interest rate environment has caused some limited home price depreciation, and it is projected to continue through 2023 as California continues to be housingconstrained. House prices are forecast to fall 6.3% this year. However, due to offsetting increased inflation, real wages in the state were negligible. In order to also support the increasing demand for workers, California has focused on addressing the housing scarcity.  During 2021, the median home price increased by over 20% to above $650,000, double the national figure.

With increased inventory and increasing interest rates being implemented to combat inflation, it is expected the housing prices appreciation will start to contract.

County
According to the Sonoma County Economic Development Board,  though Sonoma County has similarities to the National and State economic factors, there are specific micro-economic factors which differentiate the overall expectations for 2023. Of these are the reliance on the tourism industry, the demographics of the population, and the limited affordable housing market.

For Sonoma County, consumer spending related to tourism is critical to the regional economy and has continued to increase during the post-pandemic. While overall consumer spending is expected to decline, the types of spending are expected to continue to shift from goods to experiences which were postponed during Covid-19, including travel. Sonoma County finds itself in an advantageous position to be able to provide easy weekend getaways for regional high-end travelers, as well as those international travelers who are coming back to the United States and California.

Unfortunately, the region suffers from demographic trends, specifically in housing and the aging population. Both factors are expected to contribute to a contraction in the growth. Our county continues to see an impact on the diversity of potential residents due to a combined lack of housing supply and unaffordability. Migration out of the county has been greater than migration into the county for the past five consecutive years. As the population ages and baby boomers move into retirement, there will be fewer prime-age workers to fill their jobs. Proximity to the Bay Area and economic powerhouses play to Sonoma County’s advantage. However, costs in Sonoma County are high relative to other emerging tech hubs, making it a less desirable location for expansion.

As summarized by Moddy's Analysis , "Unfortunately, weak population growth will out muscle the advantages of a high quality of life and educated workforce, relegating the county to a slightly below-average performer relative to California." Cotati
Our city was not unaffected by the significant economic impacts both at the regional and statewide levels. While revenues increased for the City during the Covid-19 crisis, we anticipate to remain stagnant for fiscal year 2023/24. This status quo is due to decreased consumer spending leading to reduction in sales tax as well as reduced water consumption continuing due to the surplus rainfall achieved during fiscal year 2022/23. Cotati is differentiated from the region due to lack of access to tourism spending to offset losses in other spending. The City is continuing to work strategically on economic development, including (1) supporting hotel development in order to create meaningful Transient Occupancy Taxes (TOT) income and bring visitors into local Cotati businesses to support our existing business community, (2) supporting the continued development of the cannabis industry in Cotati, which will provide new revenue through the local cannabis business tax, and (3) focusing on economic development in key areas of the City to support existing businesses and promote new development in the Northern Gateway and Highway 116. This will make the city more resilient and aligned to the regional balance of economic factors as well as provide new services for residents. With this economic strategy in place, the City will be able to better serve its residents through resiliency gained with diversified stable revenue into the future.

This estimate for our budget year is consistent with our projection as presented within the prior years budget where we noted an estimated swing in consumer behavior in a return to normal. The City continues to focus on maintaining sufficient operating reserves, while securing and diversifying revenues to ensure revenue stability and to provide long term funding for priority community services and infrastructure, and debt repayments. Fiscal Year 2024/25 estimates a 2.6% increase in Citywide revenues as we rebound from this normalization in 2023-2024. For more information, see the funding sources section of the budget document.
8 1
9 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 38 Alternatively, City expenditures have been more directly impacted by the global inflation crisis. Overall, the City is projecting continued significant increases in costs related to insurance, materials, and other professional contract services. For more information, see fund summaries pages and department summaries pages.

In order to better evaluate the City's financial position, in spring 2023 City Staff prepared and presented projections over the next 10 years for the Cities General Fund with a Long-Range Financial Forecast which is available on the City Website here .

City Government Highlights & Trends
General Funds Highlights and Trends
Total Operating Revenues for Fiscal Year 2023/24 are budgeted at $10.3M; a 2.2% increase over the Fiscal Year 2022/23 adopted budget and a 1.2% increase over the Fiscal Year 2022/23 estimated actual revenues. The increase from the adopted budget is primarily due to increased property taxes and charges for services. The difference between operating revenues and total revenues are primarily related to revenues from other sources including interfund debt service and transfers-in from other special revenues.

For operating revenues, most activities are static with slight increases in charges for services and property taxes with declines in other taxes which is primarily related to declines in cannabis business tax.

As Sales Tax and Property Tax are critical revenue streams, generating almost 80% of the total General Fund revenues, the City collaborates with third party consultants who monitor the market to generate projections.

The City employs conservative estimates for all revenues and specifically service fees in both public works and community development, as future development projects are uncertain at this time.

Further details on major revenues for the General Fund are detailed within the Funding Sources Section of the budget book.

Total Operating Expenses for Fiscal Year 2023/24 are budgeted at $9.4M, a 12.0% increase over Fiscal Year 2022/23 estimated actual and a 7.9% increase from the adopted budget.

Adjusting for the one-time contribution, the budgetary increase is primarily due to:

General City-Wide Insurance is estimated to increase 13% Staffing costs increased 12% based on budgeting for (1) Full Employment, (2) Negotiated MOU COLAs, (3) Scheduled Step Increases, (4) Continued Lump Sum payments to CalPERS, The average increased cost of all other contract services is 11.2%.

Utilities, including electrical, water, the Internet and phone are budgeted with an increase of about 15% due to increased rates for these services.

Other changes included in the historical balances include the increase in the 2021/22 actual was due to the $4.8M Additional Discretionary Payment (ADP) to CalPERS for the City's unfunded pension liability. It is estimated that the refunding of this debt could ultimately save the City Approximately $2.3 million over the next 23 years.

For more information on the General Fund Revenues, Expenditures, and Fund Balances, please see the detailed fund summary page.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 39 Enterprise Funds Highlights and Trends
Water Operating Fund
Revenues for Fiscal Year 2023/24 are estimated to increase by approximately 5.8% over the Fiscal Year 2022/23 estimated actual results, and a 4.3% increase from the adopted budget for the same 2022/23 year. Expected changes to the revenues are the following:

Increased rates for both consumption and base fees as proposed to the City for approval as part of the multi-year rate study program. 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.

The city estimated consistent water consumption for the Fiscal Year 2022/23 which was a decrease from prior years due to conservation and continued rainfall (thus reducing irrigation).

Reduced development impact fees for connections to City Services as development projects have uncertain timeframes for completion currently.

Total Expenses for Fiscal Year 2023/24 are estimated to decrease by approximately 24.0% over the Fiscal Year 2022/23 estimated actual and 19.4% from the adopted budget for the same 2022/23 year. The primary change between years was the one-time interfund debt service payment made from the Water fund to the Sewer Capital fund of approximately $500,000. Other budget changes include:

Reduced expenses related to other expense charges, specifically small tools and equipment, as well as capital costs for fixed assets.

Approximately 11% reduced costs for Aqueduct Water Usage due to blended use of consumption from local wells and continued customer conservation. This decrease takes into account the agencies' 6.8% rate increase.

Increases in allocated costs for utilities, specifically; electricity, internet, phones as well as contract services.

Continued investment in conservation programs, including water audit services.

Capital and Other Uses for the proposed budget year 2023/24 include:

New Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements:

SCADA Server Upgrade & Relocation - $115,000
Water Hydrant ATM - $75,000
Well 1A Maintenance Improvements - $42,500
Differences from the Rate Study Projections
Revenues, expenses, and fund balance are substantially inline with the rate study but with a fund balance that is approximately $220K higher. This increased balance is primarily due to managed expenditures in Fiscal Year 2021/22.

Sewer Operating Fund
Revenues for Fiscal Year 2023/24 are estimated to increase by approximately 7.6% over the Fiscal Year 2022/23 estimated actual budget and 1.4% from the adopted budget for the same 2022/23 year. Expected changes to the revenues are the following:

Increased rates for both usage and base fees as proposed to the City for approval as part of the multi-year rate study programs. Wastewater rates are determined by the cost of processing wastewater and maintaining infrastructure and equipment.

The city estimated consistent wastewater consumption in prior years.

Reduced development impact fees for connections to City Services as development projects are uncertain at this time.

Total Expenses for Fiscal Year 2023/24 are estimated to decrease by approximately 2.7% over the Fiscal Year 2022/23 estimated actual expenditures and increase by less than 0.8% from the adopted budget for the same 2022/23 year.

Expected changes for the expenditures compared to the prior year budget are primarily due to change in allocated expenses like insurance and tech and data contract services as well as increased costs for wastewater treatment and subregional debt service paid to the wastewater treatment plant.

Capital and Other Uses for the proposed budget year 2023/24 include:

Continuing Interfund Debt Service Back to General Fund for UAL Contribution Proposed Capital Project and Equipment Improvements:

Design for Cypress Ave. Sewer - $580,000
SCADA Server Upgrade & Relocation - $115,000
Differences from the Rate Study Projections
Budgeted revenues are anticipated to be 3.7% less in Fiscal Year 2022/23 and 5.2% less in Fiscal Year 2023/24. These decreased revenues are due to significantly decreased water consumption.

Budgeted expenses are also being budgeted, aligned with the decrease in revenues.  Expenses for Fiscal Year 2022/23 are 2.9% less than the projections within the rate study and 2.4% less for Fiscal Year 2023/24.

Due to the decreased budgeted revenues and expenses, the overall fund balance remains approximately $200K less than the Rate Study.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 40 The City will continue to monitor the trends for both the Water and Sewer Funds against the rate study and look to updating the study if the fund balance for continued operations is projected to not meet the required 30%.

For more information on the Enterprise Funds Revenues, Expenditures, and Fund Balances, please see the detailed funds summary pages. Additionally, attached below the graphics, is the Cotati 2022 Water and Sewer Rate Study, Internal Service Funds Highlights and Trends
Vehicle Replacement Fund - For Fiscal Year 2023/24, the vehicle replacement fund schedules replacements to be funded by  other funds in order to cover maintenance costs as well as fleet replacement. This is calculated per the vehicle replacement schedule. The City is dedicated to environmentally conscious procurement and as such will continue evaluation of appropriate fleet purchases with possible cost equivalent electric vehicles in place of the standard gas combustion replacements.

Compensated Absences Fund – This fund was established for Fiscal Year 2019/20 to fund the payouts for compensated absences (primarily accrued employee leave and vacation time). For Fiscal Year 2023/24 we are continuing to use this fund to reduce outstanding deferred compensation unfunded liability, as well as removing this episodic expense from the annual operating budgets.

For more information please see the detailed funds summary pages.

Capital Projects Funds Highlights and Trends
Continue to Prioritize City Infrastructure Projects
Street Improvements and Safety for $4.5M
Park Improvements for $1.6M
Buildings Revitalization $250K
Maximize Possible Grant Funding
See multi-year capital improvements plan for
more details.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 41 Overview of Significant Fund Balance Changes
Overview of funds with Fund Balance Changes greater than 10% and $20,000 in Fiscal Year 2023/24 General Fund balance has a decrease of approximately $3.8M or 51%, primarily due to increased investment in capital projects with $5.0M in transfers out for Capital Projects.

Traffic Mitigation Fund balance (Fund 205) is anticipated to decrease approximately $146K or 91% as these development impact fees are utilized towards relevant traffic mitigation capital/streets improvements.

Park In-Lieu Fund balance (Fund 206) is anticipated to decrease $60K or 932% due to required transfers of funds to capital projects scheduled at City parks.

Excess Bond Proceeds balance (Fund 219) is anticipated to decrease $128K or 100%, based on usage for strategic investments and the Park and Ride Lot Replacement Project and other economic development projects as needed.

Parks Measure M balance (Fund 225) is anticipated to decrease $175K or 99%  based on the use of funds for parks improvement projects.

Compensated Absences (Fund 502) is anticipated to decrease $44K or 5% based on the use of funds for employee compensated absences payouts.

Water Funds 401-403 balances are anticipated to have a net decrease of approximately $93K or 5% over the prior year.

This is primarily due to capital infrastructure projects lower anticipated connection fees to be received from development projects.

Sewer Funds 404-405 balances are anticipated to have a net decrease of approximately $980K or 45%. This is primarily due to lower  anticipated connection fees to be received from development projects, increased sewer treatment costs, and continued capital infrastructure improvements.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 42 Fiscal Year Comparisons
For Fiscal Year 2019/20, the short term goals of the City were focused on improving its operations and transparency through a host of initiatives for the community, including a Popular Annual Financial Report  (PAFR), the cable broadcasting of City meetings, and neighborhood police beats. The City Council also focused on improving its services by investing in technology like the Incode Water and Sewer billing Notifications systems, as well as other professional services contracts to create efficient building inspections and permit checks. A significant effort was also placed on improvement of vital City infrastructure, with an estimated $4.3M in capital improvement projects, including $3.6M in Street Construction & Improvements. This was all while maneuvering through multiple significant emergencies, including the PG&E Power Outrages in October 2019 which had the City’s power out for more than 5 days during the Kincade fire, and the continuing emergency of COVID-19.

For Fiscal Year 2020/21, we continued to focus on strategic improvements to City services to reach the community and assist during these times of extreme uncertainty.  We looked for ways to strategically invest in infrastructure all while focusing on a first tier of projects that have grant matching programs, improve safety, or are relatively low cost with high benefit.  Using this strategy, we were able to bid a major street project and save approximately $1.3M compared to engineer estimates. We also continued to push forward key development and housing agenda items, including ADU ordinances and a housing survey for the City. Completion of these objectives as well as continued work on a cottage housing ordinance will place the City in a strong position for appropriate growth and development going into the future.

For Fiscal Year 2021/22, the City continued pushing forward on projects delayed during the COVID-19 crisis. Major Projects the City completed included over $4 million in both a full rehabilitation project on the West Side of the city and street preservation programs through the 'birds' section. By focusing on reinvestment in streets over the next 5 years, the City can then transition to a maintenance program for City streets, thus reducing future costs for infrastructure significantly. The investments in these improvements would not have been accessible for the future if it weren't for another major accomplishment for the City, the significant financing strategy that was implemented in obtaining new financing for streets as well as refinancing the outstanding UAL pension debt with CalPERS. This has led to estimated future cost savings of over $6 million. For the enterprise funds, the City performed the rate analysis which includes recommendations for adjusting the water and sewer rate schedules that are designed to provide necessary revenues to meet each utility’s needs to cover operating and maintenance costs, meet debt service obligations, and support the capital projects necessary to rehabilitate and upgrade the water and sewer systems, and maintaining prudent financial reserves.

For Fiscal Year 2022/23, the City continued working on major capital projects, including over $5 million in street rehabilitation projects and street preservation programs. Along with the major investments in streets, the City initiated its first major park revitalization program in over 10 years at our Kotate Park. City General funds were matched with over $260K in Parks Measure M funding in Local Special Parks Sales Taxes and $178K in Prop 68 funds from the State Grants. The City also invested $1.0 million in Civic Center improvements, including window replacement, insulation replacement, and re-stuccoing for half of City Hall plus window replacement at the Civic Center. We are all excited about seeing the final painting of the Civic Center. For the enterprise funds, the City replaced over 1,000 liner feet which repaired defective and undersized sewer pipe on West Sierra Avenue from Olof Street to Water Road. The project is one of many identified in the City's detailed Inflow and Infiltration Study.

This project was also prioritized over other repairs because of the City's Quick Strike road paving project scheduled for 2023.

The City is continuing to move forward with the water line replacement on Cypress Ave, in advance of that street refurbishment project scheduled for 2023/24.

For Fiscal Year 2023/24, the City is going to continue focusing on the strategic objectives as set out by the City Council to support a beautiful, safe, and stable City with a transparent government.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 43 City General Plan Mission
To create a healthy, livable and sustainable community that offers a high quality of life, while maintaining Cotati's small town identity.

Our Vision
Vision 1 - QUALITY OF LIFE: To preserve Cotati's rural heritage and small-town atmosphere while ensuring new development reinforces both the quality and economic vitality of the community. To maintain Cotati's urban growth boundaries.

Vision 2 - ECONOMIC DEVELOPMENT: To provide a climate that promotes existing business and encourages new businesses to locate in our community.

Vision 3 - FINANCIAL STABILITY: To become a self-reliant community with a sound economic base. To have a balanced City budget that prudently manages the City's financial resources and provides for appropriate reserves.

Vision 4 - COMMUNITY SAFETY: To protect the health and well-being of the community by partnering with our citizens to provide a safe and secure environment.

Vision 5 - INFRASTRUCTURE: To provide adequate streets, sidewalks, sewer and water systems, parks, bike paths, and public buildings and ensure they are maintained at the highest possible level.

Vision 6 - CITY BEAUTIFICATION: To enhance City Gateways and remove blighted conditions. To encourage development which reflects the City's commitment to quality design, preservation of trees and generous use of landscaping Vision 7 - ENVIRONMENTAL CONCERNS: To work with developers and citizens to incorporate environmentally "friendly" materials and "green" building techniques in all new construction, as well as renovation projects. To continue to encourage the community to reduce, reuse and recycle.

Vision 8 - CITIZEN PARTICIPATION: To encourage citizens to become actively involved in the decision-making process and serve on City boards and commissions. To include the participation of volunteers in our community festivals and events.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 44 Strategic Objectives
At the strategic planning sessions on March 7, 2023 as well as the Budget Study session on April 4th and April 18th 2023 the City Council finalized the following Strategic Objectives.  These goals and objectives were then utilized to focus on departmental goals and projects.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 45 Short-term Factors
City staff continue to be cautious and responsible in developing a budget that strives to improve service levels, while developing a phased capital project plan, and  preserving appropriate operating reserves.  In preparing departmental budgets for the new fiscal year, department directors are instructed to analyze their departmental goals and their correlating expenditures. This process includes an evaluation of each department for possible cost savings, cost sharing, or possibilities for grants/donations.

The Administrative Services Department assisted each department with calculations of key factors that were assumed to affect each individual department’s budget, including but not limited to:

Assist in revenue estimations based on known or anticipated developments and economic factors Human Resources adjustments due to labor agreements, pension payments, employee turnover due to retirements, and internal position changes.

Determining if new or ongoing contract services will have Citywide benefit, and therefore be allocated using a reasonable basis, or if the service is exclusively for a certain department and will therefore be charged directly to the lead department.

Estimating unknown expenditures for utilities, general insurance, or legal counsel.

Debt payments and tentative investment earnings
The 2023/24 City budget continues to recognize the need for a conservative approach to managing expenditures while providing a balance of maintaining existing high-quality programs, services and infrastructure, to best meet the goals and priorities of the City and its community partners. Additional service level changes for the individual departments are described within the departmental summary sheets and the service level changes for capital project evaluations are included within the capital improvements section.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 46 Strengths ,Weaknesses, Opportunities, and Threats
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 47 Priorities & Issues
The budget continues to meet the prudent financial reserve goals of City Council, which calls for a General Fund operating contingency reserve of not less than 25% of the total General Fund operating budget for the fiscal year (Resolution 2009-50). The adopted budget includes a reserve level that continues to exceed this goal set by City Council.

Although the current year budget continues to meet the City Council reserve policy, the City still faces some medium and longer term challenges:

Cotati's Issues
Although the current year budget continues to meet the City Council reserve policy, and Measure S was approved by voters, thus securing a vital City revenue source, the City still faces some medium and longer term challenges:

Economic Development: Due to anticipated growth slowdown for Property Taxes due to the Proposition 8 recapture and insufficient diversification of revenue, the City is focused on diversifying the current sources of revenue to provide a more stable and resilient general fund. Economic development also continues to grow the local economy, adds new goods and services locally, creates new jobs and contributes taxes to support services for our community. This is complemented by General Fund reserves, which provide financial stability and allow the City to respond to changes in revenue projections, expenditure needs, and unforeseen economic erosion or expansion. Both the City Managers Department and the Community Development department are continuing to develop ongoing strategies to diversify the revenues and continue to expand the appropriate growth in line with the City's character.

Staffing Continuity and Succession Planning:  The City, like most local governments, struggles to obtain full employment for all positions. The issue is twofold, with first the loss of current staff, including senior employees retiring from the City or staff being recruited to move to other outside agencies. Secondly, the current hiring practices for local governments do not seem to be enough to meet the expectations of potential candidates. While full staffing is always a desire for the City, it is expected to become even more difficult to fill positions as unemployment numbers decrease. The City Managers Office continues to work with each Department Director to provide enticing promotional position information for recruiting.

Disaster Response: The City has been lucky over the last decade to have not been subject to the significant losses and destruction that impacted other major areas within Sonoma County. This does not mean that we are immune.  While we have made significant investments in backup systems, we must make strategic plans to address possible future catastrophic impacts from public safety power shutoffs, fire, earthquake, ongoing drought, or even technology data breaches.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 48 Long Range Financial Plans
Although the adopted budget is an annual budget, the City is implementing tools to look beyond the one year, to make sure it can sustain operations and meet the long-term goals established in the comprehensive plan.  To ensure long-term sustainability, the City's  budgets follow these financial-related goals:

Maintain an operating reserve of at least 25 percent for the General Fund and 33% for the Enterprise Funds Continue implementing best financial practices
Use technology to streamline and automate business practices to help keep up with the demand for services Contribute full funding for annual UAL pension funding and will evaluate and fully implement the unfunded liability management policy in Fiscal Year 2023/24
To make sure the City is on the right financial track, the city has an objective of formalizing the Long-Term Financial Outlook that forecasts operating expenses and revenue for the next 10 years for the General Fund to correlate with the currently implemented  5 year outlook for the capital expenditures plan (CIP Schedules) for both the General and Enterprise Funds. This report was presented to the council and the public during the sbudgettudy session on April 4, 2023. This meetings video and presentations are available for viewing on the city website here .  Additionally, the City Long Range Financial Forecast Report is attached below.

In addition to the operational outlook, a capital plan has been developed to address the needed infrastructure for the next five years. The summary of the long term capital plan summary can be found in the section after the long-term financial planning as well as within the Multi-Year Capital Improvements Section. Funding for these projects is also forecasted to make sure that the projects can be completed with no General Fund debt.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 49 Long-term Financial Planning
Long-term financial planning is the process of aligning financial capacity with long-term service objectives.

With this planning, the City can use simple forecasts to provide insight into future financial capacity in order to meet future objectives, including capital planning, as well as secure operations of core services in case of future instability. Generated a Long-Range Financial Forecast that evaluated  three scenarios for developing plans to mitigate possible future threats to our financial standing.

Within Scenario 1 the City generated a "Baseline" status quo forecast.  The second scenario was a projection of results for what it would be like if the City expanded its revenue stream with the development of a Hotel.  The last scenario was a projection of the City's fund if a recession similar to the Great Recession were to recur next year. Below is a graphical summary of the effects on the General Fund under each scenario.  Additionally, with the Baseline trend, we also have detail on the availability of funds to meet the five year planned capital improvement plan.

This report is primarily a planning tool to be used by the City in order to stimulate discussion making and provide focus for a long-range perspectives. Below is a snapshot of the estimated revenue and expenditure projections for 5-years for the General Fund, as well as the combined Enterprise Funds.

Graphic Depictions of the Long Range Financial Forcast Scenarios 2 and 3.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 50 Long Term Capital Planning
The first step in long range capital planning is identifying community needs and desires. The City is continuing to develop ongoing  capital asset life cycle replacement schedules including the vehicle & equipment replacement fund as well as preparation of the 5-year capital improvement program for both government and enterprise major infrastructure. City staff also analyze the assets that are noted for possible aging to determine when or if replacements are required.  These schedules assist programing funds needed for the replacement or refurbishment of these major assets. Within the multi-year plan for capital improvements there is additional information to identify future service needs and maintenance, possible cost savings due to project implementation, as well as possible increases in revenue.

Other items that are considered when initiating major capital expenditures include the following:

Do these infrastructure improvements meet economic development needs or provide great public benefit? Does it meet City policy within the General Plan?
Did we incorporate input and participation from major stakeholders and the public? Will this project provide additional revenue-generating potential? What are the non-financial impacts of the project, including local and global environmental impacts? City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 51 Personnel Changes
For the Fiscal Year 2023/24 the budget continues to reflect full staffing with possible changes to staffing including:

Advancement of the City Manager Administrative Analyst to a Senior Management Analyst.

Addition of City Manager Administrative Assistant to assist in continued City Operations due to the loss of City Clerk.

Addition of a second Accountant in the Administrative Services Department.

Replacement of the Community Development Limited Term Senior Planner with a part-time Associate Planner, and the addition of a part-time Planning Technician to replace the Administrative Analyst position.

Replacement of the Public Works Administrative Analyst with a part-time Engineering Technician.

Increased Police Officers numbers in part to replace the Community Services Officer who is retiring at mid-year.

Comparative Staffing Summary

FUNCTION / DEPARTMENTS
FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 22/23 FY 23/24
BUDGET
FY 23/24

BUDGET BUDGET BUDGET BUDGET
EST.

ACTUALS
CHANGE
Elected Officials 2.5 2.5 2.5 2.5 2.5 2.5 0.0
Staff Positions
City Manager 4.5 4.5 4.5 4.5 4.0 4.5 0.5
Administrative Services 4.5 4.5 4.5 5.5 5.0 5.5 0.5
Planning & Building 3.4 3.4 3.7 4.5 4.0 4.5 0.5
Public Works 9.1 9.1 9.1 9.0 7.5 8.5 1.0
Police Services 20.5 20.5 20.6 22.2 18.9 22.4 3.5
Recreation 2.7 2.7 2.8 2.7 2.8 2.7 -0.1
Total Staff 44.7 44.7 45.2 48.3 42.2 48.1 5.9
Total City Officials and Staff 47.2 47.2 47.7 50.8 44.7 50.6 5.9 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 52 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 53 Staffing Detail by Department

FUNCTION / DEPARTMENT
FY 19/20
BUDGET
FY 20/21
BUDGET
FY 21/22
BUDGET
FY 22/23
BUDGET
FY 22/23
EST.

ACTUALS
FY 23/24
BUDGET
FY 23/24
CHANGE
Elected Officials *
Mayor 0.5 0.5 0.5 0.5 0.5 0.5 0.0
Vice Mayor 0.5 0.5 0.5 0.5 0.5 0.5 0.0
Council Members 1.5 1.5 1.5 1.5 1.5 1.5 0.0
Total 2.5 2.5 2.5 2.5 2.5 2.5 0.0
Staff
City Manager *
City Manager 1.0 1.0 1.0 1.0 1.0 1.0 0.0
City Clerk 1.0 1.0 1.0 0.0 0.0 0.0 0.0
Deputy City Clerk 0.0 0.0 0.0 1.0 1.0 1.0 0.0
Administrative Analyst 1.0 1.0 1.0 0.0 0.0 0.0 0.0
Senior Management Analyst 0.0 0.0 0.0 1.0 1.0 1.0 0.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Intern 0.5 0.5 0.5 0.5 0.0 0.5 0.0
Total 4.5 4.5 4.5 4.5 4.0 4.5 0.0
Administrative Services *
Director of Admin. Services 1.0 1.0 1.0 1.0 1.0 1.0 0.0 Senior Accountant 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Accountant 0.0 1.0 1.0 2.0 2.0 2.0 0.0
Accounting Clerk-Senior 1.0 0.0 0.0 0.0 0.0 0.0 0.0
Accounting Specialist 1.0 0.0 0.0 0.0 0.0 0.0 0.0
Account Clerk 0.0 1.0 1.0 1.0 1.0 1.0 0.0
Intern 0.5 0.5 0.5 0.5 0.0 0.5 0.0
Total 4.5 4.5 4.5 5.5 5.0 5.5 0.0
Planning & Building *
Community Development Director 1.0 1.0 1.0 1.0 1.0 1.0 0.0 Senior Planner 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Limited Term Senior Planner (PT) 0.0 0.0 0.3 0.0 0.0 0.0 0.0 Associate Planner (PT) 0.0 0.0 0.0 0.5 0.5 0.5 0.0
Administrative Analyst 0.4 0.4 0.4 0.0 0.0 0.0 0.0
Permit Tech 0.0 1.0 1.0 1.0 1.0 1.0 0.0
Administrative Assistant 1.0 0.0 0.0 0.0 0.0 0.0 0.0
Planning Technician 0.0 0.0 0.0 0.5 0.5 0.5 0.0
Intern 0.0 0.0 0.0 0.5 0.0 0.5 0.0
Total 3.4 3.4 3.7 4.5 4.0 4.5 0.0
Public Works *
Director of Public Works 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Civil Engineer 1.0 1.0 1.0 1.0 0.5 0.0 -1.0
Administrative Analyst 0.6 0.6 0.6 0.0 0.0 0.0 0.0
Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 1.0 0.0 Maintenance Worker III 0.0 0.0 0.0 0.0 0.0 1.0 1.0
Maintenance Worker II 2.0 2.0 3.0 2.0 2.0 1.0 -1.0
Maintenance Worker I 3.0 3.0 1.0 2.0 2.0 2.0 0.0
Laborer 0.0 0.0 1.0 1.0 0.0 1.0 1.0
Engineering Technician 0.0 0.0 0.0 0.5 1.0 1.0 0.5
Intern 0.5 0.5 0.5 0.5 0.0 0.5 0.0
Total 9.1 9.1 9.1 9.0 7.5 8.5 -0.5
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 54 Police Services
Chief of Police 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Lieutenant 1.0 1.0 1.0 0.0 0.0 1.0 1.0
Sergeant 2.0 2.0 2.0 3.0 3.0 2.0 -1.0
Corporal 2.0 2.0 2.0 2.0 1.0 2.0 0.0
Officer 6.0 6.0 6.0 7.8 7.0 8.0 0.3
Community Services Officer 1.0 1.0 1.0 0.5 0.0 0.0 -0.5 Police Service Aide 0.5 0.5 0.5 0.8 0.8 0.8 0.0
Dispatcher/Clerk 5.5 5.5 5.6 5.6 5.6 6.6 1.0
Reserve Officer I 1.5 1.5 1.5 1.5 0.5 1.5 -0.5
Total 20.5 20.5 20.6 22.2 18.9 22.2 0.3
Recreation
Facilities/Recreation Manager 1.0 1.0 1.0 1.0 1.0 1.0 0.0 Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 1.0 0.0
Recreation Leader 0.1 0.1 0.8 0.7 0.8 0.7 0.0
Camp Director 0.2 0.2 0.0 0.0 0.0 0.0 0.0
Assistant Camp Director 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Camp Staff 0.4 0.4 0.0 0.0 0.0 0.0 0.0
Total 2.7 2.7 2.8 2.7 2.8 2.7 0.0
Total City Staff 44.7 44.7 45.2 48.3 42.2 48.1 -0.3
Total City Officials and Staff 47.2 47.2 47.7 50.8 44.7 50.6 -0.3 * Subject to allocation of labor to Enterprise and Fiduciary Funds.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 55 Appropriations Limit
Proposition 4, approved by the voters in November 1979, added the California Constitution, Article XIIIB. This article limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost-of-living and population plus other various adjustments as required. The first year in which appropriations limits applied to state and local governments in California was Fiscal Year (FY) 1980/81.

Establishing Appropriations Limits
"The City's limitation is calculated every year and is established by resolution of the City Council as part of the Annual Operating Budget. A City Resolution was proposed for approval May 23, 2023, establishing the City of Cotati's appropriations limit.

The City's appropriations subject to the Gann Limit total $8,868,058, which is well below the authorized spending limit of $19,069,191. Additional appropriations to the budget funded by non-tax sources such as beginning fund balances, grants or service charges are unaffected by the appropriations limit. Historically, the City's Annual Appropriations Limit has exceeded annual appropriations and the City projects the trend to continue into the future. As supported by historically trended data, the margin between the proceeds of taxes and an appropriations limit shows that there is little concern for the City exceeding the limit in the near future.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 56 Calculations
State of California Fiscal Year 2023/24 Population Change Per Capita Personal Income Sonoma County City of Cotati Fiscal Year
Percentage Change over
Prior Year (1)
Percentage Change over
Prior Year (1)
Percentage
Change over
Prior Year (1)
2023/24 4.44% -0.53% -0.67%
Per Capita Cost of Living Converted to Ratio:  4.44+100 = 1.0444 100
City of Cotati Population Converted to Ratio:  -0.53+100 = 0.9947 100
Calculation Factor for FY 2022/2023:

1.0444 x

0.9947 = 1.0389
Fiscal Year 2022/2023 Appropriations Limit  $18,355,175 Fiscal Year 2022/2023 Factor  1.0389
Fiscal Year 2023/2024 Appropriations Limit  $19,069,191 It should be noted that the Appropriations Limit applies only to proceeds of taxes, as defined by the law and statewide reporting guidelines.

Tax Appropriations Subject to the Tax Appropriations Limit Tax Appropriations Total Budget for 2023/24
Property Tax $2,131,758
Sales Tax 6,084,000
Other Tax 652,300
Total Appropriations Subject to Limit $8,868,058
Appropriations Subject to Limit $8,868,058
Fiscal Year 2023/2024 Appropriations Limit 19,069,191
Over/(Under) Appropriations Limit $(10,201,133)
Percentage Over/(Under) Limit (53%)
(1) Department of Finance-Budgeting Resource Price and Population Factors Used For Appropriations Limit at:
http://www.dof.ca.gov/wp-content/uploads/Forecasting/Demographics/Documents/PriceandPopulation2023.pdf or here DOF Factors  City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 57 Historical & Estimated Future Limits
Fiscal Year
Personal Income
Change
Population
Change Growth Factor Annual Adjustment Appropriations Limit Historical Appropriations Limits
2022/23 1.0755 0.9847 1.0590 $1,022,621 $18,355,174
2021/21 1.0573 0.9899 1.0466 $771,734 $17,332,554
2020/21 1.0373 0.9875 1.0243 $392,881 $16,560,820
2019/20 1.0385 0.9960 1.0343 $536,170 $16,167,939
2018/19 1.0367 0.9978 1.0344 $519,851 $15,631,769
2017/18 1.0369 1.0050 1.0421 $610,292 $15,111,919
2016/17 1.0537 1.0053 1.0593 $811,607 $14,501,625
2015/16 1.0382 1.0084 1.0469 $613,559 $13,690,018
2014/15 0.9977 1.0039 1.0016 $20,775 $13,076,459
2013/14 1.0512 1.0057 1.0572 $706,285 $13,055,686
Future Year Estimates Appropriations Limit
2024/25 1.0483 0.9912 1.0390 $744,413 $19,813,604
2025/26 1.0502 0.9899 1.0396 $783,836 $20,597,440
(2) Estimates calculated based on changes to both personal income and population change following a trending 5-year average. (2)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 58 GANN Limit Calculation Establishment - Resolution 2022-29 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 59

FUNDING SOURCES
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 60 Property Taxes Summary
$2,131,758 $119,363
(5.93% vs. prior year)
These projected revenues are estimated to change based on the following factors. 2% Assessor’s applied CPI
Consistent change in the assessed value due to transfer of ownership Increases due to sales of new developments since Fiscal Year 2019/20.

Total change of around 6%
Property Taxes Proposed and Historical Budget vs. Actual Actual Budgeted
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 0 500k
1,000k
1,500k
2,000k
2,500k
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 61 Property Tax Dollar Distribution
A property tax is a levy on the assessed value of a property. The general property tax is levied by the county equal to 1% of the assessed value, often called the 1 percent general tax levy or countywide rate. Under Proposition 13, a law approved by California voters in 1978, general property taxes (not including those collected for special purposes) are limited to 1% of a property’s market value and increases in assessed value are restricted to 2% per year.

For example, for a home with an assessed value of $500,000, the property owner would be assessed approximately $5,000 a year in property taxes (1% of assessed value). Of the $5,000, the city would only receive a total of $532.50 (10.65% of the 1% assessed value) from the County. California's property taxes are collected by the County Tax Collector and are then transferred to the County Auditor for distribution to the multiple local governments.

The graphic below shows where each property tax dollar paid by City property owners is allocated.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 62 Sales Taxes Summary
$6,084,000 $14,000
(0.23% vs. prior year)
The City is projecting almost status quo revenue from Sales Taxes for Fiscal Year 2023/24 with less than a 0.3% increase.

This change is a conservative estimate based on evaluated potential economic impacts of slowing consumer confidence leading to decreased spending but increased dollar sales due to inflation. The city also anticipates decreased volume of transactions generated through the County Pool due to the Amazon Distribution Center re-allocation of funding as well as less online purchasing post Covid-19.

Major industry groups within the City are Building/Construction, Fuel and Service Stations, Food and Drug, and the County Pool.

Sales Taxes Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 0 1M
2M
3M
4M
5M
6M
7M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 63 Revenues by Source
Revenue Source
Taxes
Sales Tax
SALES TAX $2,442,951 $2,883,312 $3,041,885 $3,020,000 $2,900,000 $2,969,000 2.4% SALES TAXMEAS. A $0 $64 $3,809 $0 $0 $0 0%
SALES TAXMEAS. G/S $2,558,612 $2,954,366 $3,184,731 $3,050,000 $3,140,000 $3,115,000 1.3% Total Sales Tax: $5,001,563 $5,837,741 $6,230,425 $6,070,000 $6,040,000 $6,084,000 1.8% Total Taxes: $5,001,563 $5,837,741 $6,230,425 $6,070,000 $6,040,000 $6,084,000 1.8% Total Revenue Source: $5,001,563 $5,837,741 $6,230,425 $6,070,000 $6,040,000 $6,084,000 1.8% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
Sales Tax Dollar Distribution
Sales tax is a tax paid on the sales of certain goods and services. Currently, the total sales tax rate in the City of Cotati is 9.50%.

The City receives 2% in sales tax, with 1% Bradley‐ Burns and 1% Measure S. Sales tax from the Bradley‐Burns levy is allocated back to the City where the sale was negotiated or the order was taken. On the other hand, the transactions and use tax, or Measure S, is allocated to the City where the goods are delivered or placed into use.

The graphics below show the breakdown of the City’s sales tax:

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 64 Other Taxes Including Cannabis Business Tax Summary
$652,300 -$99,400
(-13.22% vs. prior year)
Other Taxes including Cannabis Business tax are estimated to decrease due to slowdown in consumer spending on Cannabis pending new retail operations commencing in 2022/23.

Other Taxes Including Cannabis Business Tax Proposed and Historical Budget vs.

Actual
Actual Budgeted
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 0 200k
400k
600k
800k
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 65 Revenues by Source
Other Taxes
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. The total transfer tax for the County and City is $1.10 ($0.55 County / $0.55 City) per $1,000 of property value, minus any loans assumed in the sale.

Cannabis Business Tax is a local voter approved business tax for recreational cannabis businesses. These tax rates are based on several factors, including gross receipts, license type and business segment.

Transient occupancy tax (TOT) is a levy placed on tourists to the City, which is intended to compensate local government for the increased public service costs incurred by serving tourists. This tax is common in most of the United States, including California, and is applied to travelers when they rent accommodations (a room, rooms, entire home, or other living space) in a hotel, inn, tourist home or house, motel, or other lodging. At this time, Cotati is the only City in Sonoma County without TOT funding, due to the absence of lodging facilities.

Budgeted and Historical Revenues by Source
Millions
Other Tax
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.2
$0.4
$0.6
$0.8
Revenue Source
Taxes
Other Tax
TRANSFER TAX $32,701 $54,440 $76,429 $41,000 $41,000 $52,000 26.8%

CANNABIS-BUSINESS
TAX $485,777 $592,014 $644,490 $710,000 $570,000 $600,000 5.3%

CANNABIS-LICENSE
FEE $0 $1,500 $2,750 $700 $3,050 $300 -90.2%
CANNABISAPPLICATION FEE $0 $21,000 $0 $0 $12,400 $0 -100%

CANNABIS-CASH TAX
PYMNT CHRG $174 $0 $0 $0 $0 $0 0%
Total Other Tax: $518,653 $668,954 $723,670 $751,700 $626,450 $652,300 4.1% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 66 Total Taxes: $518,653 $668,954 $723,670 $751,700 $626,450 $652,300 4.1% Total Revenue Source: $518,653 $668,954 $723,670 $751,700 $626,450 $652,300 4.1% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 67 Licenses, Permits, Rents and Other Agency Fees Summary
$841,650 $22,750
(2.78% vs. prior year)
The City is projecting a slight decrease in revenue from these sources. With the completion of the Kessing Ranch project, there are now fewer building permits being issued, and a consequent reduction in this revenue type.

Licenses, Permits, Rents and Other Agency Fees Proposed and Historical Budget vs.

Actual
Actual Budgeted
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 0 200k
400k
600k
800k
1,000k
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 68 Revenues by Source
Licenses, Permits and Franchises
A business license is a tax payment to the city for doing business in that city. Cities collect fees from the business license applicants and place the majority of the fees into its general fund for the administration of city services, such as police, road work, parks and recreation and other community services that benefit citizens and businesses.

A utility franchise is a contract between a city and a utility or garbage company that outlines certain requirements for the utility to use the city’s public rights of way and for the garbage company to have exclusive rights to provide garbage service. The establishment of franchise agreements between cities and utilities or garbage companies is a customary business practice and legal process outlined by the state constitution.

Rent
Revenue received from the rental of City-owned facilities.

Revenue from Other Agencies
These revenues are amounts received from other local and state agencies.

Budgeted and Historical Revenues by Source
Millions
Rents
Other Agency
Licenses, Permits & Franchises
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.2
$0.4
$0.6
$0.8
$1
Revenue Source
Licenses, Permits &
Franchises $546,010 $623,563 $686,807 $537,900 $561,000 $556,500 -0.8% Rents $101,474 $71,712 $80,114 $77,400 $90,550 $78,000 -13.9% Other Agency $189,454 $200,751 $107,218 $203,600 $203,665 $207,150 1.7% Total Revenue Source: $836,938 $896,025 $874,138 $818,900 $855,215 $841,650 -1.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 69

DEPARTMENTS
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 70 City Council
Susan Harvey (she/her)
Mayor
Department Description
The City Council is the five-member policy and legislative body of the City. The City Council of Cotati operates under the Council-Manager form of government, with five Council members elected at-large for staggered four-year terms.

The City Council, through the administrative authority of the City Manager, is responsible for the operation of the City, by setting policies and adopting City-wide goals and priorities. The City Council formulates policies in the form of motions, resolutions, and ordinances, which reflect the interests, needs, and priorities of the citizens and businesses of Cotati, as well as the visitors to the City of Cotati.

The City Council meets twice a month in regular session, conducts special meetings and study sessions as needed, and attends regional coordination meetings with other local government agencies.

Please find more information on City Council Public Meetings Here .

Expenditures Summary
The City Council budget reflects the costs associated with supporting the Council’s activities and providing for the operations of the City. The increase in expenditures for Fiscal Year 2023/24 is primarily derived from increases in allocated contract services including insurance.
$170,457 $17,768
(11.64% vs. prior year)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 71 City Council Proposed and Historical Budget vs. Actual
Actual Budgeted
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 0 50k
100k
150k
200k
Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (41.4%)
Contract Services (27.5%)
Contributions (14.7%)
Other Expense (6.3%)
Utilities (5.1%)
Capital Outlay (2.9%)
Repairs and Maintenance (1.8%)
Materials and Supplies (0.4%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 72 Budgeted and Historical Expenditures by Expense Type
Millions
Materials and Supplies
Repairs and Maintenance
Capital Outlay
Utilities
Other Expense
Contributions
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
Expense Objects
Personnel Services
Benefits $44,840 $41,967 $46,192 $45,450 $49,650 $61,200 23.3% Salaries $9,232 $8,667 $10,437 $9,360 $9,360 $9,360 0%
Total Personnel
Services: $54,073 $50,633 $56,629 $54,810 $59,010 $70,560 19.6% Materials and Supplies $377 $1,173 $517 $751 $751 $668 -11.1% Total Materials and
Supplies: $377 $1,173 $517 $751 $751 $668 -11.1%
Contract Services $24,390 $28,506 $27,696 $50,210 $65,610 $46,848 -28.6% Total Contract
Services: $24,390 $28,506 $27,696 $50,210 $65,610 $46,848 -28.6% Repairs and
Maintenance $6,211 $5,685 $0 $321 $300 $3,000 900%
Total Repairs and
Maintenance: $6,211 $5,685 $0 $321 $300 $3,000 900%
Utilities $3,222 $4,438 $3,472 $3,450 $4,700 $8,738 85.9% Total Utilities: $3,222 $4,438 $3,472 $3,450 $4,700 $8,738 85.9% Other Expense $10,659 $4,488 $11,635 $10,992 $21,935 $10,743 -51% Total Other Expense: $10,659 $4,488 $11,635 $10,992 $21,935 $10,743 -51% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 73 Capital Outlay $0 $0 $0 $7,155 $7,155 $4,900 -31.5%
Total Capital Outlay: $0 $0 $0 $7,155 $7,155 $4,900 -31.5% Contributions $24,214 $24,735 $74,684 $25,000 $25,000 $25,000 0% Total Contributions: $24,214 $24,735 $74,684 $25,000 $25,000 $25,000 0% Total Expense Objects: $123,145 $119,658 $174,632 $152,689 $184,461 $170,457 -7.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Organizational Chart
The City Council are elected by the voters of Cotati to serve four year terms. The mayor and vice mayor is selected annually from among the City Council Members. The Mayor is charged with running the City Council meetings and the Vice Mayor will act as Presiding Officer in the absence of the Mayor. City Council adoptedpolicy that estiblishes the adopted The City Council appoints the City Manager and the City Attorney, who report directly to the City Council. The City Council also appoints the members of the City’s advisory commissions and committees.

City Councilmembers serve on various Boards and Commissions for the City. They also serve on outside agency boards or commissions. A list of the  different city boards as well as the outside agencies that council members may serve on is located here .

Susan Harvey
Mayor
[email protected]
/ (707) 792-4600 ex.
192
Laura Sparks
Vice Mayor
[email protected]
/ (707) 792-4600 ex.
194
Ben Ford
Councilmember
[email protected]
/ (707) 792-4600 ex.
196
Sylvia Lemus
Councilmember
[email protected]
/ (707) 792-4600 ex.
201
Kay Rivers, Ph.D
Councilmember
[email protected]
/ (707) 792-4600 ex.
202
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 74 City Manager's Department
Damien O'Bid (he/him)
City Manager
Department Descriptions
The City Manager/City Clerk Office provides for the
efficient and effective administration of the affairs of the City of Cotati including the following; support to the City Council including implementation and enforcement of
the policies of the City Council, supervises all City
Departments, manages human resources, maintains
official City files including records of Council proceedings, disseminates public information, conducts municipal
elections in accordance with California State Government Codes, negotiates and manages franchise agreements,
administers the City’s mobile home rent stabilization
ordinance, and oversees Economic Development,
Recreation and Successor Agency.

Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (67.7%)
Contract Services (19.6%)
Other Expense (4.1%)
Payout (3%)
Utilities (2.9%)
Repairs and Maintenance (1.7%)
Materials and Supplies (0.6%)
Debt Service (0.4%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 75 Budgeted and Historical Expenditures by Expense Type
Millions
Capital Outlay
Debt Service
Materials and Supplies
Repairs and Maintenance
Utilities
Payout
Other Expense
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$1
$-0.25
$0.25
$0.5
$0.75
$1.25
Expense Objects
Personnel Services
Benefits $157,165 $133,992 $475,516 $112,360 $111,960 $119,040 6.3% Salaries $252,669 $277,360 $341,886 $335,480 $351,859 $383,240 8.9% Total Personnel
Services: $409,833 $411,351 $817,402 $447,840 $463,819 $502,280 8.3% Payout $5,778 $13,095 $43,738 $23,030 $47,300 $22,620 -52.2% Total Payout: $5,778 $13,095 $43,738 $23,030 $47,300 $22,620 -52.2% Materials and Supplies $5,331 $4,977 $4,037 $894 $3,394 $4,432 30.6% Total Materials and
Supplies: $5,331 $4,977 $4,037 $894 $3,394 $4,432 30.6% Contract Services $61,839 $181,176 $77,996 $85,604 $83,405 $145,184 74.1% Total Contract
Services: $61,839 $181,176 $77,996 $85,604 $83,405 $145,184 74.1% Repairs and
Maintenance $13,238 $12,469 $381 $1,781 $1,000 $12,600 1,160% Total Repairs and
Maintenance: $13,238 $12,469 $381 $1,781 $1,000 $12,600 1,160% Utilities $7,237 $8,690 $8,412 $8,900 $8,900 $21,662 143.4% Total Utilities: $7,237 $8,690 $8,412 $8,900 $8,900 $21,662 143.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 76 Other Expense $34,119 $137,339 $22,614 $60,331 $48,168 $30,383 -36.9% Total Other Expense: $34,119 $137,339 $22,614 $60,331 $48,168 $30,383 -36.9% Debt Service $0 $3,287 $3,287 $0 $0 $2,650 N/A
Total Debt Service: $0 $3,287 $3,287 $0 $0 $2,650 N/A
Capital Outlay $0 $0 $17,395 $17,395 $0 -100%
Total Capital Outlay: $0 $0 $17,395 $17,395 $0 -100%
Total Expense Objects: $537,374 $772,383 $977,867 $645,775 $673,381 $741,811 10.2% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Organizational Chart
The City Manager is hired by the City Council and manages the day to day operations of the City, including oversight of all other departments and department managers. The Recreation Department is included under the City Managers Department.

For more information on the other departments, please see their department-specific budget pages.

Damien O'Bid
City Manager
[email protected]
Kevin Patterson
Deputy City Clerk
[email protected]
Sonia Sanchez
Administrative Assistant
[email protected]
City Mangers Office
Intern
(Vacant)
Katie Duran
Sr. Management Analyst
[email protected]
Recreation Department
-See separate org. chart in
the Rec. Dept.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 77 Fiscal Year 2022/23 Project Accomplishments
Completed Projects
Lead City Website Transition
City Seal Redesign
Waste Franchise Negotiations
Election 2022
Evaluate New Legislative Management Systems
Noise Ordinance
St. Joseph Relinquishment
On-Going COVID Response Measures
City Council Team Building
Fee Schedule Update
Lead Sonoma County Mayors & Councilmembers and Draft New Bylaws Veronda Falletti Ranch License Agreement Update
SB1383 Implementation
On-Going Projects
Lead Digital File Management Program
Veronda-Falletti Barn Design/Fundraising
Economic Development 2.0 (Co-Lead with CD)
Putnam Park (Intial Design)
Ad Hoc Committee Projects as Needed
Countywide Broadband Improvement - Broadband assessment, including current service providers (in ground. cellular, satellite), locations of current copper/fiber infrastructure, speeds offered, and cellular coverage in Cotati -
Fiscal Year 2023/24 Project Objectives
Continuation of all projects listed above as On-Going
New Projects
Sunflower Park Preliminary Design
Personnel Rules Update
CPOA/CPMA Negotiations
Dogs in Parks Ordinance Update
Improve FIGR Coordination
Update Public Safety Messaging Procedures Including Translation of Public Safety/Health/Emergency Web Pages into Spanish
Update Community Survey on Equity
Emergency Operations Update
Investigate Models of Civilian Oversight for Police
Analyze RIPA Data/Recommendations
Investigating an E-bike/Scooter Share Program
Joint Procurement Coordination/Policy Update (including exploring DBE criteria) Coordinate on Feasibility of Joint Housing JPA/Bond
Countywide Broadband Improvement
Evaluate Feisability of Cotati Library
Roundabout Ban Appeal Review
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 78 Departmental Goal #1: Economic Development to Enhance
Community Services
Along with joint City departments,  continue
Economic Development work, including (1) strategy that
attracts or retains businesses by removing unnecessary
barriers that the City can affect and (2) continue short to medium term revenue enhancements by developing
TOT  and improving cannabis business taxes and (3)
working with the City Council to develop longer term
policies to grow and broaden the business community.

The goal of this work is to provide the community with
the needed resources for critical services and
infrastructure.

Department Goal #2: Provide Efficient and Responsive Core Services
Maintain efficient and responsive core services in
all departments. Continue to adjust or build new  systems and services to meet community needs.  Continue to look for opportunities to adapt and mitigate the impacts of climate change and    improve emergency preparedness and
resiliency, including wildfire preparedness.

Departmental Goal #3: Community Engagement
Continue to improve engagement between the City
and residents so that the community has timely information about City programs and projects and can readily engage with the City on issues that they care about.  This requires using multiple platforms and communication channels to
meet people where they are.

To meet this objective, the City Manger coordinates manager level messages out to the community including the City
Manager Message YouTube Videos located on the City You
Tube Channel here .

Actual
FY 20/21
Actual
FY 21/22
Actual
Expected
FY 22/23
Goal
FY 23/24
Public Media
Messages
7 14 13 24
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 79 Department Goal #4: Promote Equity and Inclusivity
Ensure that City operations are inclusive and
equitable.  Advance equity and health in partnership with Cotati residents and stakeholders, other jurisdictions, and non-governmental organizations.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 80 Administrative Services Department
Angela Courter (she/her)
Director of Administrative Services
Department Description
The Administrative Services Department serves to
support the financial management and reporting of the
City, including: collection and disbursement of all City funds; processing payroll disbursements as well as related reporting, withholding and payroll benefits management; accounts payable processing; billing and collection of
water, sewer, business license, and developmental user
fees; maintenance of general ledgers and journals;
investments of the City’s idle funds; purchasing;
information systems oversight and support; development
and maintenance of long term economic impact
analyses; budget preparation and administration;
financial reporting; audit liaison and coordination, and oversight of the City Risk Management Program.

Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (54.2%)
Contract Services (26.3%)
Administrative Fee (9.5%)
Other Expense (3.7%)
Utilities (2.7%)
Payout (2%)
Repairs and Maintenance (1.5%)
Materials and Supplies (0.3%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 81 Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Capital Outlay
Materials and Supplies
Repairs and Maintenance
Payout
Utilities
Other Expense
Administrative Fee
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$-0.1
$0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
Expense Objects
Personnel Services
Benefits $21,733 $40,213 $200,466 $58,300 $57,600 $57,850 0.4% Salaries $64,489 $97,155 $125,486 $188,650 $182,075 $217,710 19.6% Total Personnel
Services: $86,222 $137,368 $325,952 $246,950 $239,675 $275,560 15% Payout $1,186 $1,788 $2,757 $8,770 $8,770 $10,220 16.5% Total Payout: $1,186 $1,788 $2,757 $8,770 $8,770 $10,220 16.5% Materials and Supplies $835 $964 $2,528 $1,140 $2,240 $1,344 -40% Total Materials and
Supplies: $835 $964 $2,528 $1,140 $2,240 $1,344 -40%
Contract Services $76,218 $100,205 $89,301 $95,835 $107,163 $133,516 24.6% Total Contract
Services: $76,218 $100,205 $89,301 $95,835 $107,163 $133,516 24.6% Repairs and
Maintenance $7,717 $7,235 $135 $567 $0 $7,500 N/A
Total Repairs and
Maintenance: $7,717 $7,235 $135 $567 $0 $7,500 N/A
Utilities $3,065 $3,493 $3,797 $4,000 $4,000 $13,510 237.8% Total Utilities: $3,065 $3,493 $3,797 $4,000 $4,000 $13,510 237.8% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 82 Other Expense $11,192 $16,471 $10,641 $23,500 $19,720 $18,560 -5.9% Total Other Expense: $11,192 $16,471 $10,641 $23,500 $19,720 $18,560 -5.9% Administrative Fee $37,068 $39,714 $46,674 $48,080 $49,080 $48,080 -2% Total Administrative
Fee: $37,068 $39,714 $46,674 $48,080 $49,080 $48,080 -2% Debt Service -$1,911 $3,723 $360 $1,600 $0 $0 0%
Total Debt Service: -$1,911 $3,723 $360 $1,600 $0 $0 0% Capital Outlay $0 $0 $0 $12,626 $12,626 $0 -100%
Total Capital Outlay: $0 $0 $0 $12,626 $12,626 $0 -100% Total Expense Objects: $221,593 $310,961 $482,146 $443,068 $443,274 $508,290 14.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Organizational Chart
- Angela Courter is the current Director of Administrative Services and reports directly to the City Manager. She has served the City in this position since August 2019, and has been with the City of Cotati since 2016 when she originally joined as the Senior Accountant, after almost 10 years in public accounting. - Neil Tomlinson is now the Senior Accountant and has been with the City since 2013. - Accountant, Rosie Speranza joined us in February 2021. - Accountant, Paola Conde-Frendo joined us in October 2022. - Account Clerk, Cassandra Rivera joined us in August 2020, and is separating with the City on May 1, 2023. - the Department brought on or first Intern since before the Covid-19 outbreak. We look forward to continue using this position to engage with local students and inspire trust and appreciation for local government.

Angela Courter
Director of Administrative
Services
[email protected]
Neil Tomlinson
Sr. Accountant
[email protected]
Rosie Speranza
Accountant
[email protected]
Paola Conde-Frendo
Accountant
[email protected]
Vacant
Account Clerk
[email protected]
Daniel Blackwell
Administrative Services
Intern (PT)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 83 Fiscal Year 2022/23 Project Accomplishments
Complete
Financial Forecasting
Payroll RFP
Dog Licensing
Purchasing Consolidation - Contract Routing and Digital Payables Processing Copier Machines RFP/Replacement
Admin Service Office Reconfiguration
Reinstituted Utility Shutoff Program (Including Payment Plans and Extensions) Fiber Connectivity Project - City Hall
On-Going
Investment Planning
Fixed Asset/Work Order Processes
Digital Records Workflow
Backflow Program/Code Review
IT Special Projects (AD, Licensing, Security, Itron, Etc.) Hydrant ATM Meter Process Update
IBS Payroll System Update
TOT Taxation Process/Documentation
Business License Audit/Process Review
Fiber Connectivity Projects - La Plaza Park
City Hall - IT Systems Consolidation and Updates (Network Infrastructure/SCADA) Fiscal Year 2023/24 Project Objectives
Continuation of All Projects Listed Above as On-Going
New Projects
Monthly Utility Billing
Website Dept. Page Update/New Social Media Content
Deposit Account Process Review
Financial Policy Update Review
New Policy on Financial Emergency Preparedness
Unit Goals & Performance Measures
Departmental Goal #1: Maintaining Required Reserves
Budgeting efforts to meet or exceed both the
General Fund reserve policy target of 25% and
Enterprise Fund (Water & Sewer) reserve policy
target of 33%.

Actual
FY
20/21
Actual
FY
21/22
Actual
FY
22/23
Goal
FY
23/24
General Fund Compliance Yes Yes Yes Yes
Water Operating Fund
Compliance Yes Yes Yes Yes
Sewer Operating Fund
Compliance Yes Yes Yes Yes
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 84 Departmental Goal #2: Compliance
Keep data and related regulations updated for
compliance with law on an ongoing basis, including:

Payroll compliance with labor laws
Utility compliance with State and Local Legislation
including emergency resolutions.

Financial reporting compliance with GASB Standards
Actual
FY
20/21
Actual
FY
21/22
Actual
FY
22/23
Goal
FY
23/24
Clean Audit Opinions Yes Yes Yes Yes
Payroll System Compliance Yes Yes Yes Yes
Water Agency Reporting No
Comments
Yes Yes Yes Yes
Departmental Goal #3: Internship Program
Coordinate an accountant internship program with
the Sonoma State Business Administration Department.

Actual
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Goal
FY 23/24
Interns Employed  0 0 1-tenative 1
Departmental Goal #4: Multilingual Availability for Utility Customers
In order to make online utility access more accessible
to more residents we will evaluate and develop multilingual availability on the City Website and Utility Billing portal.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 85 Community Development
Noah Housh (he/him)
Director of Community Development
Department Description
The Community Development Department is responsible for managing the Planning, Building, Housing and Code Enforcement Divisions for the City, while also supporting the Economic Development efforts of the City Manager's Office. The Planning Division provides staff and technical support toward developing and implementing land-use, planning and zoning policies and programs that guide City growth, as well as ensuring all City actions are compliant with the California Environmental Quality Act. The Building Division provides for public health and safety, promoting code compliance and improvements in the community through building inspections and plan review. The Housing Division assists with the management of the City's affordable housing stock and ensuring on-going compliance with the City's affordable housing programs. Finally, Code Enforcement works with the citizens of Cotati to maintain a safe, attractive and high-quality community environment by ensuring compliance with all adopted City codes and standards.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 86 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (45.9%)
Contract Services (38.7%)
Other Expense (11.7%)
Utilities (1.7%)
Payout (0.8%)
Repairs and Maintenance (0.6%)
Materials and Supplies (0.4%)
Capital Outlay (0.3%)
Budgeted and Historical Expenditures by Expense Type
Millions
Administrative Fee
Contributions
Debt Service
Capital Outlay
Materials and Supplies
Repairs and Maintenance
Payout
Utilities
Other Expense
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
Expense Objects
Personnel Services
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 87 Benefits $117,933 $143,520 $534,322 $145,090 $134,590 $108,570 -19.3% Salaries $284,564 $311,126 $376,321 $387,980 $395,060 $423,590 7.2% Total Personnel
Services: $402,497 $454,646 $910,643 $533,070 $529,650 $532,160 0.5% Payout $0 $4,175 $60 $10,160 $1,805 $9,080 403%
Total Payout: $0 $4,175 $60 $10,160 $1,805 $9,080 403%
Materials and Supplies $4,373 $3,553 $4,114 $5,155 $5,155 $4,384 -15% Total Materials and
Supplies: $4,373 $3,553 $4,114 $5,155 $5,155 $4,384 -15% Contract Services $161,503 $233,172 $237,276 $451,505 $288,606 $448,314 55.3% Total Contract
Services: $161,503 $233,172 $237,276 $451,505 $288,606 $448,314 55.3% Repairs and
Maintenance $12,787 $12,609 $0 $976 $0 $7,500 N/A
Total Repairs and
Maintenance: $12,787 $12,609 $0 $976 $0 $7,500 N/A
Utilities $7,236 $8,809 $8,583 $8,900 $10,300 $19,214 86.5% Total Utilities: $7,236 $8,809 $8,583 $8,900 $10,300 $19,214 86.5% Other Expense $87,952 $63,448 $46,002 $78,859 $77,969 $135,508 73.8% Total Other Expense: $87,952 $63,448 $46,002 $78,859 $77,969 $135,508 73.8% Administrative Fee $0 $0 $728 $0 $1,200 $0 -100%
Total Administrative
Fee: $0 $0 $728 $0 $1,200 $0 -100%
Debt Service $0 $541 $541 $200 $200 $600 200%
Total Debt Service: $0 $541 $541 $200 $200 $600 200%
Capital Outlay $0 $0 $0 $21,744 $21,744 $2,975 -86.3%
Total Capital Outlay: $0 $0 $0 $21,744 $21,744 $2,975 -86.3% Total Expense Objects: $676,349 $780,954 $1,207,946 $1,110,569 $936,629 $1,159,735 23.8% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 88 Organizational Chart
The Community Development staffing is a unique structure based on the distinct needs of Cotati, as a relatively small fullservice City. To  address these needs, and remain flexible and responsive to changes in the economy, the Community Development Department is currently supported by a number of part-time and/or contract employees to augment the fulltime Department staff.  These additional contractor functions are included in grey below while part time are indicated with the (Part-Time) subsequent to the title.

Noah Housh
Director of Community
Development
[email protected]
J.P. Harries
Sr. Planner
[email protected]
Autumn Buss
Associate Planner (PT)
[email protected]
Pratik Thapa
Planning Tech (PT)
[email protected]
Building Official
(Outside Consultant)
Building Inspector
(Outside Consultant)
Code Enforcement
Officer
(Outside Consultant)
Carla Duncan
Permit Technician
[email protected]
Fiscal Year 2022/23 Project Accomplishments
Complete
6th Cycle Housing Element Update
5th Cycle Housing Element Program Implementation
2023 Building Code Update (+GHG Measures)
Economic Development 2.0-DSP Amendments (Co-Lead with CM) Woonerf Ordinance
Urban Ag + Veronda Falleti Ranch Re-Zone
Grand Jury Response-Affordable Housing Monitoring
Fossil Fuel Station Ban
REACH Code Ordinance + Implementation
ADU Marketing and Support Program-Pre-Approved Plans
Land Use 101 Presentation to new Council and Commission 950 E. Cotati Ave Sales Agreement
Recruit, Hire and Train New Permit Technician + Software Implementation Parklet/Outdoor Dining Standards
General Plan Annual Production Reports 2019-2021
Enhanced Public Engagement-Neighborhood Meeting and On-Site Public Hearing Sign Requirement Codified
$160,000 SB 2 Grant Close Out
$65,000 LEAP Grant Close Out
On-Going
Bike and Pedestrian Master Plan Update
Santero Way Specific Plan Update
Housing Administration
Implement New State Housing Legislation
Update Planning Permit Applications
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 89 Fiscal Year 2023/24 Project Objectives
Continuation of All Projects Listed Above as On-Going
New Projects
Develop Objective Design Guidelines, "Plex"/SFD (SB9)
Post-Covid Economic Development Program
General Plan Safety Element Update
Departmental Goal #1: Prioritize Development Review and Housing Policy
The Community Development Department provides
for the long-term viability of the City by providing prompt and responsive services to customers seeking development review and land use input for  their properties.  Continue to explore policy recommendations to expand affordability of housing across all income ranges.

Housing Units
Produced
Actual
2020
Actual
2021
Estimated
Actual 2022
Goal*
2023
Very Low 2 4 14 8
Low 1 2 0 4
Moderate 1 8 1 5
Above
Moderate 16 22 4 13
* Based on 1/8 of the CA Regional Housing Needs Allocation (RHNA) to the City for the next 8 years.

Check out how the City plans to address the housing
needs for the next eight years in the 6 Cycle Housing
Element available at the following link.
https://www.cotaticity.org/215/Cotati-2023-HousingElement-Update  th
Departmental Goal #2: Expanded Services
The Community Development
Department  continues to leverage opportunities for
citizens to engage directly though the Department
website, including by implementing a fully electronic
permit application and review process, expanding access to affordable housing information and sharing
information via the Housing Interest List and by fully
automating the review process for solar photo voltaic
system permits.

Departmental Goal #3: Policy and Development Project
Community Engagement
The Community Development Department will
continue to seek and expand  efforts to engage with
members of the community on both long-term policy
projects such as the Santero Way Specific Plan Update,
Bicycle and Pedestrian Master Plan Update as well
during the review of individual development projects. These City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 90 efforts will include direct notices to property owners
adjacent to site proposed for development, on-site public hearing signs, expanded information being made
available on the City’s “Projects in Progress” webpage
and through the use of social media posts and
notifications.

Actual
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Department
Website Updated  Yes Yes Yes
Social Media
Posts
1 1
17 (12 Facebook, 4
Instagram, & 1
Nextdoor)
Departmental Goal #4: Provide Equitable Access to Information and Services
The Community Development Department is
committed to ensuring the provision of information and
services is equitable, and engages all populations within the community of Cotati. These efforts will seek to ensure every citizen of Cotati is considered through  Department
engagement efforts, the provision of Department services and in the goals and policies promoted by Department staff in long-range planning documents.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 91 Engineering and Public Works
Craig Scott (he/him)
Director of Engineering and Public Works
Contact: [email protected]
phone: 707 665-3620
Address:  201 West Sierra Avenue, Cotati, CA. 94931-4217 Department Description
The Public Works department operates and maintains
the water, sewer, and storm water systems, roadways,
City parks and buildings, and provides a wide range of
engineering services including managing a Capital
Improvement Program, issuing permits for construction
in the public right-of-way, conditioning and inspecting private development projects, and being the
clearinghouse for questions on City infrastructure,
procedures and responding and dispatching work
requests. Engineering provides technical support to the various City departments, responds to citizen’s inquiries and requests regarding public infrastructure, performs
development review and plan check, performs
engineering and construction management of capital
improvement projects and provides mapping and
engineering records support.

Expenditures by Function
Budgeted Expenditures by Function
Public Works - Streets (36%)
Public Works - Parks (34.2%)
Public Works - Govt. Buildings (11.5%)
Public Works - Engineering (10.7%)
Public Works - Storm Water Mgnt. (7.7%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 92 Budgeted and Historical Expenditures by Function
Millions
Public Works - Storm Water Mgnt.

Public Works - Engineering
Public Works - Govt. Buildings
Public Works - Parks
Public Works - Streets
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
$1.75
Expenditures
Public Works
Public Works - Engineering
Personnel Services $80,990 $86,036 $138,587 $131,750 $96,855 $88,460 -8.7% Payout $0 $321 $1,817 $3,670 $3,670 $3,780 3%
Materials and Supplies $1,232 $2,791 $1,824 $1,332 $1,332 $1,342 0.8% Contract Services $25,944 $18,141 $29,819 $67,092 $101,173 $41,256 -59.2% Repairs and Maintenance $2,650 $2,170 $0 $201 $0 $5,000 N/A Utilities $1,415 $1,537 $1,741 $1,950 $2,450 $2,824 15.3% Other Expense $5,379 $20,583 $20,507 $6,703 $8,773 $6,465 -26.3% Debt Service $0 $53 $53 $30 $30 $30 0%
Capital Outlay $0 $0 $0 $4,490 $4,490 $0 -100%
Total Public Works -
Engineering: $117,609 $131,634 $194,349 $217,218 $218,773 $149,157 -31.8% Public Works - Streets
Personnel Services $125,048 $126,902 $276,771 $139,640 $132,840 $154,780 16.5% Payout $1,077 $10,581 $5,738 $6,480 $6,480 $6,850 5.7%
Materials and Supplies $16,835 $19,814 $17,781 $21,245 $15,245 $12,153 -20.3% Contract Services $125,233 $91,805 $144,479 $173,568 $136,737 $182,980 33.8% Repairs and Maintenance $27,769 $12,924 $31,314 $26,406 $25,000 $20,000 -20% Utilities $73,584 $80,593 $51,722 $53,700 $91,350 $106,515 16.6% Other Expense $18,429 $21,831 $40,425 $19,204 $32,069 $20,673 -35.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024
Proposed Budget
FY2023 Estimate
vs. FY2024
Proposed Budget
(% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 93 Capital Outlay $0 $0 $0 $4,360 $4,360 $0 -100%
Total Public Works -
Streets: $387,974 $364,450 $568,230 $444,603 $444,081 $503,951 13.5% Public Works - Storm Water
Mgnt.

Personnel Services $33,424 $35,151 $57,521 $44,630 $33,723 $33,570 -0.5% Payout $277 $3,238 $2,839 $1,570 $4,200 $1,900 -54.8%
Materials and Supplies $3,396 $494 $1,098 $511 $511 $515 0.8% Contract Services $35,497 $24,527 $30,765 $50,197 $32,399 $56,380 74% Repairs and Maintenance $3,479 $1,131 $9,710 $3,344 $5,810 $1,700 -70.7% Utilities $413 $466 $512 $800 $800 $1,103 37.9%
Other Expense $13,687 $11,258 $15,928 $13,404 $17,701 $12,451 -29.7% Capital Outlay $0 $0 $0 $1,065 $1,065 $0 -100%
Total Public Works - Storm
Water Mgnt.: $90,173 $76,266 $118,372 $115,521 $96,209 $107,619 11.9% Public Works - Govt.

Buildings
Personnel Services $53,560 $53,646 $106,056 $59,690 $56,140 $67,000 19.3% Payout $451 $4,559 $2,811 $2,390 $3,200 $3,160 -1.2%
Materials and Supplies $9,102 $6,045 $7,475 $6,818 $9,818 $6,854 -30.2% Contract Services $26,582 $37,957 $29,357 $31,379 $31,311 $39,547 26.3% Repairs and Maintenance $12,984 $4,359 $20,393 $11,562 $11,750 $12,000 2.1% Utilities $25,400 $28,630 $26,501 $27,750 $29,150 $28,014 -3.9% Other Expense $22,354 $6,162 $9,420 $21,350 $5,405 $4,116 -23.8% Capital Outlay $0 $0 $0 $1,743 $1,743 $0 -100%
Total Public Works - Govt.

Buildings: $150,432 $141,356 $202,013 $162,682 $148,517 $160,691 8.2% Public Works - Parks
Personnel Services $87,554 $91,722 $206,275 $112,910 $96,210 $125,025 30% Payout $903 $9,105 $5,257 $5,310 $5,310 $5,800 9.2%
Materials and Supplies $17,175 $10,531 $13,547 $8,038 $15,798 $15,126 -4.3% Contract Services $60,319 $70,257 $166,638 $237,563 $254,553 $307,509 20.8% Repairs and Maintenance $16,256 $12,024 $3,973 $6,187 $9,160 $6,000 -34.5% Utilities $73,845 $86,286 $69,604 $80,850 $82,650 $14,553 -82.4% Other Expense $5,802 $5,186 $7,239 $4,716 $4,981 $4,750 -4.6% Capital Outlay $0 $0 $0 $3,681 $3,681 $0 -100%
Total Public Works - Parks: $261,855 $285,111 $472,534 $459,255 $472,343 $478,763 1.4% Total Public Works: $1,008,043 $998,817 $1,555,498 $1,399,279 $1,379,923 $1,400,181 1.5% Total Expenditures: $1,008,043 $998,817 $1,555,498 $1,399,279 $1,379,923 $1,400,181 1.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024
Proposed Budget
FY2023 Estimate
vs. FY2024
Proposed Budget
(% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 94 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Contract Services (44.8%)
Personnel Services (33.5%)
Utilities (10.9%)
Other Expense (3.5%)
Repairs and Maintenance (3.2%)
Materials and Supplies (2.6%)
Payout (1.5%)
Debt Service (0.002%)
Budgeted and Historical Expenditures by Expense Type
Millions
Capital Outlay
Debt Service
Payout
Materials and Supplies
Repairs and Maintenance
Other Expense
Utilities
Personnel Services
Contract Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
$1.75
Expense Objects
Personnel Services
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 95 Benefits $126,945 $149,649 $541,468 $160,950 $132,515 $129,640 -2.2% Salaries $253,631 $243,808 $243,741 $327,670 $283,253 $339,195 19.7% Total Personnel
Services: $380,576 $393,457 $785,210 $488,620 $415,768 $468,835 12.8% Payout $2,708 $27,804 $18,462 $19,420 $22,860 $21,490 -6% Total Payout: $2,708 $27,804 $18,462 $19,420 $22,860 $21,490 -6% Materials and Supplies $47,740 $39,676 $41,726 $37,944 $42,704 $35,990 -15.7% Total Materials and
Supplies: $47,740 $39,676 $41,726 $37,944 $42,704 $35,990 -15.7% Contract Services $273,574 $242,686 $401,058 $559,799 $556,173 $627,672 12.9% Total Contract
Services: $273,574 $242,686 $401,058 $559,799 $556,173 $627,672 12.9% Repairs and
Maintenance $63,138 $32,608 $65,390 $47,700 $51,720 $44,700 -13.6% Total Repairs and
Maintenance: $63,138 $32,608 $65,390 $47,700 $51,720 $44,700 -13.6% Utilities $174,657 $197,512 $150,080 $165,050 $206,400 $153,009 -25.9% Total Utilities: $174,657 $197,512 $150,080 $165,050 $206,400 $153,009 -25.9% Other Expense $65,650 $65,020 $93,520 $65,377 $68,929 $48,455 -29.7% Total Other Expense: $65,650 $65,020 $93,520 $65,377 $68,929 $48,455 -29.7% Debt Service $0 $53 $53 $30 $30 $30 0%
Total Debt Service: $0 $53 $53 $30 $30 $30 0%
Capital Outlay $0 $0 $0 $15,339 $15,339 $0 -100%
Total Capital Outlay: $0 $0 $0 $15,339 $15,339 $0 -100% Total Expense Objects: $1,008,043 $998,817 $1,555,498 $1,399,279 $1,379,923 $1,400,181 1.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 96 Organizational Chart
The chart below shows the organizational structure of the Public Works and Engineering Department.

Craig Scott
Director of Public Works
and Engineering
[email protected]
Al Martinnoni
Public Works Supervisor
Trevor Brown
Maintenance II
Grant Comini
Maintenance I
Susan Wise
Maintenance II
Colin Devlin
Maintenance I
Brianna Steel
PT Engineering Tech
Henry Babits
PT Engineering Tech
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 97 Fiscal Year 2022/23 Project Accomplishments
Complete
2023 Pavement Rehabilitation
2023 Pavement Preservation
Old Redwood Highway Traffic Flow Improvements Project
Loretto & Marsh to McGinnis Pathway Resurfacing
Pocket Park Improvements
Bicycle Pedestrian Safety Improvements
Bench Installation at ORH and 116 Pedestrian Plaza
Altman Acres LLAD Streetscape Refurbishment
2020 Street Construction and Improvements (aka Quickstrike) West Sierra Ave Sewer Replacement
Annual Main Flushing
Commerce Blvd Emergency Sewer Replacement
Well 1a/Well 3 Treatment Renewal and Replacement
Dance Studio Water Damage Repairs
Police/City Hall Station Fleet EV Charging Station
Tree removals City ROW near Vets Park, Cypress Tank
Traffic Signal Upgrades at E Cotati and Lancaster, Adrian Dr, Santero Wy Replaced Mast Arm S/E Corner Hwy 116 and ORH
Replaced Failed Booster pump motor Well 1a
Replaced City Hall Sewer Lateral
Repair of Athena Statue base
On-Going
Kotate Park Improvements
Park and Ride Replacement
City Hall/Civic Center Window Replacement & Paint
Commerce Gateway Signage
Putnam Park Improvements
Highway 116/West Cotati Ave Intersection Safety Improvements Redwood Drive and Cypress Avenue Pavement Rehabilitation SCADA Water and Sewer
EV Stations La Plaza Park
Veronda Falletti Ranch Barn
Unified Request Tracking
Fiscal Year 2023/24 Project Objectives
Continuation of All Projects Listed Above as On-Going
New Projects
2024 Street Preservation
Sunflower Park (Design)
Civic Center Parking Lot Improvements
Annual Bicycle Pedestrian Safety Improvements Project
Wastewater System Emergency Generator Project
Water "ATM" Project
Cypress Avenue Sewer Replacement
Asset Management, Unified Request Tracking
Departmental Goal #1: Provide safe and reliable water and sewer service
Provide safe and reliable water and sewer service,
operate and maintain the infrastructure proactively, and continue to meet or exceed all State and Federal regulatory requirements.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 98 Enhance operational reliability by using automation to
provide daily water production and equipment run-time
reports and  improve accessibility to the data by moving away from paper records.

Actual
FY
20/21
Actual
FY
21/22
Actual
FY
22/23
Goal
FY
22/23
Water Sewer Service Orders 649 752 563 500
State Agency Reporting
Without Comments Yes Yes Yes Yes
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 99 Departmental Goal #2: Lower the future annual cost of street maintenance
Invest in strategic infrastructure to meet community
desires while lowering the future annual cost of street maintenance by rehabilitating roads in poor condition and maintaining those in fair to good condition.

Pavement Condition Index
(PCI)
Actual
2021
Actual
2022
Actual
2023 2
Actual PCI(a) 60 68 66
Target PCI(b) 65 66 66
Met Target? No Yes Yes
(a) StreetSaver Report March 2023.
(b) Source: Draft 5-Year Pavement CIP 2020-2024 10/1/2019 Departmental Goal #3: Provide excellent customer service to the public and development community
Provide excellent customer service to the public and
development community by maintaining City infrastructure records, providing clear instructions for Public Works
processes and permitting, and involving the public in
significant public works projects with effective public outreach.
37 Permits have been completed in the past 12 months to 4/13/2023 with an average duration between application and permit issuance of 27 days. The target is 21 days. Target was not met.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 100 Police Department
Michael Parish (he/him)
Chief of Police
Welcome to the Cotati Police Department. I am honored to be your Chief of Police.

Department Description
The women and men of our Police Department are committed to providing quality public safety services to our community. I am very proud of our dedicated employees and volunteers who, through our daily activities, are making a positive difference by enhancing police services and continuing the great quality of life in the City of Cotati. Our members of the Cotati Police Department are committed to being responsive to our community in the delivery of quality services. Recognizing our responsibility to maintain order, while affording dignity and respect to every individual. Our objective is to provide contemporary police services through a community partnership which promotes safe, secure neighborhoods, parks, roadways, recreation, shopping and commercial areas visited by all.

Moving forward, we will continue our focus on (1) being fair in processes, (2) being transparent in actions, (3) providing opportunity for voice, and (4) being impartial in decision making.

We will continue our community policing philosophy through personal outreach to stakeholders to remain proactive in reducing crime, increasing traffic safety, enhancing citizen and business engagement and overall wellbeing of the City. We will continue our focus of training on employee health and wellness, effective ways to engage people who are in mental health crisis, continue understanding implicit bias, enhance de-escalation tactics through equipment and training and collect Racial and Identity Profiling Act data. The Cotati Police Department will continue to become a progressive department looking for unconventional ways to build Trust and Legitimacy in our City.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 101 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (69.1%)
Contract Services (20.1%)
Other Expense (3.5%)
Utilities (2.9%)
Repairs and Maintenance (2.7%)
Payout (0.8%)
Materials and Supplies (0.5%)
Administrative Fee (0.3%)
Budgeted and Historical Expenditures by Expense Type
Millions
Capital Outlay
Debt Service
Administrative Fee
Materials and Supplies
Payout
Repairs and Maintenance
Utilities
Other Expense
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$2
$4
$6
$8
Expense Objects
Personnel Services
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 102 Benefits $898,244 $943,392 $4,517,196 $936,200 $893,200 $928,330 3.9% Salaries $1,823,360 $1,975,365 $1,908,812 $2,297,370 $2,080,300 $2,539,130 22.1% Total Personnel
Services: $2,721,604 $2,918,757 $6,426,009 $3,233,570 $2,973,500 $3,467,460 16.6% Payout $37,708 $36,844 $62,726 $39,000 $68,565 $39,000 -43.1% Total Payout: $37,708 $36,844 $62,726 $39,000 $68,565 $39,000 -43.1% Materials and Supplies $30,540 $12,400 $23,227 $37,872 $29,972 $24,602 -17.9% Total Materials and
Supplies: $30,540 $12,400 $23,227 $37,872 $29,972 $24,602 -17.9% Contract Services $562,170 $660,787 $753,310 $884,549 $837,501 $1,010,482 20.7% Total Contract
Services: $562,170 $660,787 $753,310 $884,549 $837,501 $1,010,482 20.7% Repairs and
Maintenance $121,180 $151,765 $49,465 $65,000 $67,500 $133,900 98.4% Total Repairs and
Maintenance: $121,180 $151,765 $49,465 $65,000 $67,500 $133,900 98.4% Utilities $61,631 $69,242 $65,792 $68,550 $91,150 $148,025 62.4% Total Utilities: $61,631 $69,242 $65,792 $68,550 $91,150 $148,025 62.4% Other Expense $79,809 $91,245 $120,774 $167,184 $207,285 $176,853 -14.7% Total Other Expense: $79,809 $91,245 $120,774 $167,184 $207,285 $176,853 -14.7% Administrative Fee $7,067 $2,140 $9,559 $15,400 $4,100 $12,900 214.6% Total Administrative
Fee: $7,067 $2,140 $9,559 $15,400 $4,100 $12,900 214.6% Debt Service $0 $4,065 $4,065 $4,600 $4,600 $4,600 0%
Total Debt Service: $0 $4,065 $4,065 $4,600 $4,600 $4,600 0% Capital Outlay $14,160 $16,646 $55,456 $137,000 $137,000 $0 -100% Total Capital Outlay: $14,160 $16,646 $55,456 $137,000 $137,000 $0 -100% Total Expense Objects: $3,635,869 $3,963,892 $7,570,383 $4,652,725 $4,421,173 $5,017,822 13.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 103 Organizational Chart
Current staffing at the police department consists of the following staff.  The Chief of Police reports directly to the City Manager, Damien O'Bid.

Michael Parish
Chief of Police [email protected]
Lieutenant
(Vacant)
Sergeants (3)
Baudelia Gallo,
Paul Goodin, Tyler Wardle
Detective
Anthony Garber
Corporal (2)
Brian Deaton (K/9),
(Vacant)
Officers (6)
Ryan Sullivan, Jerry
Cunningham,
Casey Perry, Kai Parker
(Vacant 2)
Reserve Officers (1.5 FTE)
Michael Iturbe , (Vacant 2)
K-9 Officer
Remo
Motor Officer
Ryan Reinke
Volunteers / Cadets
Part Time and Seasonal 4
Dispatchers (5.6 FTE)
Kristen Ott, Christina
Montoya, Renee Harris
Michael Callen, Kristen
Abbott, Adrien McGoon
(PT)
Dispatcher/Data Analyst
(Vacant)
Katie Huldermann
Police Services Aide
[email protected]
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 104 Fiscal Year 2022/23 Accomplishments
Completed
Robust training on de-escalation, implicit bias, people in mental health crisis Regional participation in Response Program for people in mental health crisis (SAFE Team extended to 24/7 Service) and added SSUPD
Improved PD building cameras and storage of media
New intercom for dispatch to lobby
Pedestrian Safety Education and Enforcement
Public Safety Blood Drive
Vehicle, Pedestrian and Bicycle Safety Enforcement-LRSP - Developed Projects are On-Going Thomas Page Academy School Supply Drive
Coordinate Hi-Lo Evacuation Drill with RPDPS and SSUPD
Crime and Vehicle Accident Scene Mapping
Mid-Year Police Report
Deployed First Patrol All Electric Vehicle
CopLogic (Citizen Reporting Tool)
AB481 Equipment Resolution
SSU Dispatch Contract Extension
On-Going
Bola Wrap Upgrade with Training
5 Agency Mutual Aid Crime Scene/Investigation Training
Noise Abatement with Registered Meter (Coordinated with City Manager and Code Enforcement) Handheld Narcotics Detector (Fentanyl) with Training
Vehicle, Pedestrian and Bicycle Safety Enforcement
Fiscal Year 2023/24 Objectives
Continuation of all projects listed above as On-Going
New Projects
Electric Patrol Car In Car Camera paired with BWC
K9 Retirement and Replacement (Scent Tracking/Non-Attack) Hi-Lo Evacuation Drill with Scenario
Full Deployment BOLA Wrap
New Electric Patrol Cars and Systems Deployment
Pedestrian/Vehicle/Beat Focused Enforcement
Continued Training for De-Escalation, Implicit Bias, recognizing people in mental health crisis New FTE Dispatch Records/Data Analysis Support
SSU Internships/Equity Focus on Recruiting
PSAP (Dispatch) Equipment Upgrade
Continued community outreach (Beats Meetings, Thomas Page Academy, National Night Out, Coffee with a Cop etc.)
Support Research on Models of Civilian Oversight for Police RIPA Data Analysis with Recommendations
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 105 Departmental Goal #1: Regional Collaboration to Address Mental Health and Unsheltered Crisis
Specialized Assistance For Everyone (SAFE)
Team
The SAFE Team provides three main services
to the community

1. Response to issues relating to mental health,
addiction and homelessness

2. Non-emergency response for people in need

3. Proactive and continued community outreach
Cotati, Rohnert Park and Sonoma State University
have partnered with a mobile mental health crisis
response team for our cities and the University. The
SAFE team began service November 1, 2021 starting
with twelve hour daily coverage from noon to
midnight. In January 2023, SAFE began a 24/7
response. SAFE modeled after the successful
Cahoots program in Eugene Oregon consists of a
mental health professional, resource advocate and
medic (nurse, paramedic or EMT).

SAFE works proactively to address low level issues
and provides preventative outreach to help ensure
individuals don’t end up needing a higher level of
care. SAFE can identify shelter options for the
homeless, mental health services for people in crisis,
resources to address addiction and provide health
care that does not meet the threshold of an
ambulance response.

When SAFE is not responding to calls-for-service they
conduct outreach to the homeless triaging their
medical status and providing shelter and counseling
information.

SAFE is intended to benefit everyone by keeping
police officers, firefighters and paramedics available
for appropriate emergencies.

If you observe someone experiencing mental health
issues or homelessness and you think SAFE is an
appropriate response call 707-792-4611 for nonemergencies or 911 for emergencies.

Departmental Goal #2: Engage to Improve Communication, Build Trust, and Reduce Racism
The Police Department, in conjunction with all City
Departments, will strive to seek community engagement to improve communication, build trust, and  reduce racism in Cotati.

The Police Department will continue community
engagement through Coffee with a Cop, National Night Out, Thomas Page Academy outreach and other platforms.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 106 The Police Department will continue its Public Information efforts through social media and on the City Website. We will incorporate Neighborhood Level Programming through our
Officer Assigned Areas consisting of six (6) designated "beats" in our City.

Departmental Goal #3: Support Safe Roads and Neighborhoods, including Inviting Park Space, for the Community
The Police Department, in conjunction with all City
Departments, will continue to provide safe roads and
neighborhoods, including inviting parks and open spaces for the community to learn, play, and promote a healthy and active lifestyle.

During Fiscal Year 2020/21 the City initiated the Local Road Safety Plan (LRSP).  The LRSP identified the top systemic collision patterns throughout the City and top collision locations. The LRSP was a joint effort by City Traffic
Engineers, Police and the public. This safety plan provides the City with a toolbox of countermeasures to address systemic collisions through future traffic designs and projects and directed traffic enforcement by our officers. The City will use the LRSP to make Cotati a safer community for vehicles, pedestrians and cyclists.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 107 Recreation
Ashley Wilson (she/her)
Recreation Manager
Department Description
This department is used for funding recreation activities including, but not limited to, year-round classes and
programs, camps, trips and tours and special events.

Recreation staff also manages rentals and services for
City facilities, including City parks and City-owned
buildings.

Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (57.6%)
Contract Services (31%)
Other Expense (4.4%)
Utilities (3.9%)
Payout (1.2%)
Materials and Supplies (1.2%)
Repairs and Maintenance (0.4%)
Contributions (0.2%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 108 Budgeted and Historical Expenditures by Expense Type
Millions
Capital Outlay
Debt Service
Contributions
Repairs and Maintenance
Materials and Supplies
Payout
Utilities
Other Expense
Contract Services
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
The FY 21/22 increase is primarily due to the additional CalPERS Unfunded Liability payment that was made in January of 2022.

This department is fully funded with the use of Measure S Sales taxes and has been in development since the Citizens of Cotati brought it back to the Community when they overwhelmingly voted for Measure G the precursor to Measure S.

Expense Objects
Personnel Services
Benefits $29,605 $61,346 $300,240 $50,200 $49,610 $51,220 3.2% Salaries $156,045 $149,243 $179,940 $182,660 $212,680 $207,630 -2.4% Total Personnel
Services: $185,650 $210,589 $480,180 $232,860 $262,290 $258,850 -1.3% Payout $0 $12,171 $0 $5,100 $5,500 $5,360 -2.5%
Total Payout: $0 $12,171 $0 $5,100 $5,500 $5,360 -2.5%
Materials and Supplies $5,128 $4,304 $5,475 $5,104 $5,104 $5,342 4.7% Total Materials and
Supplies: $5,128 $4,304 $5,475 $5,104 $5,104 $5,342 4.7% Contract Services $73,153 $62,469 $99,190 $107,094 $116,912 $139,378 19.2% Total Contract
Services: $73,153 $62,469 $99,190 $107,094 $116,912 $139,378 19.2% Repairs and
Maintenance $12,346 $11,576 $0 $655 $0 $2,000 N/A
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 109 Total Repairs and
Maintenance: $12,346 $11,576 $0 $655 $0 $2,000 N/A
Utilities $4,341 $4,968 $5,533 $5,700 $7,760 $17,659 127.6% Total Utilities: $4,341 $4,968 $5,533 $5,700 $7,760 $17,659 127.6% Other Expense $20,618 $9,697 $10,674 $17,386 $17,801 $19,641 10.3% Total Other Expense: $20,618 $9,697 $10,674 $17,386 $17,801 $19,641 10.3% Debt Service $0 $186 $186 $0 $0 $300 N/A
Total Debt Service: $0 $186 $186 $0 $0 $300 N/A
Capital Outlay $0 $0 $0 $14,590 $14,590 $0 -100%
Total Capital Outlay: $0 $0 $0 $14,590 $14,590 $0 -100% Contributions $0 $0 $0 $0 $0 $1,000 N/A
Total Contributions: $0 $0 $0 $0 $0 $1,000 N/A
Total Expense Objects: $301,236 $315,960 $601,239 $388,489 $429,957 $449,530 4.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 110 Organizational Chart
The Recreation Department is managed by the City Managers Department and the Recreation Manager reports directly to the City Manager, Damien O'Bid. Most part-time seasonal staff are local high school students that are responsible for assisting with the implementation Camp Cotati. Camp activities include games, crafts, science, cooking, drama, and sports with an emphasis on skill development, cooperation, and promoting enthusiasm in camp activities.

Ashley Wilson
Recreation Manager
[email protected]
Kelly Patterson
Recreation Coordinator
[email protected]
Recreation Leaders
Seasonal PT (3-4)
Camp Director
Seasonal PT (Vacant)
Assistant Camp Director
Seasonal PT (Vacant)
Fiscal Year 2022/23 Project Accomplishments
Completed
Cotati Veteran's Hall Use Negotiations
Kotate Park Upgrade
On-Going
Veronda-Falletti Ranch Barn Design
Dogs on Leash Ordinance
Ad Hoc Committee Projects as Needed
Fiscal Year 2023/24 Project Objectives
Continuation of All Projects Listed Above as On-Going
New Projects
Veterans Hall Operations
Veronda-Falletti Barn Fundraising
Sunflower Park Preliminary Design
Departmental Goal #1: Expand Programing
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 111 Expand affordable and accessible programming and
events to increase community engagement, visitation to the City, and support local businesses.

Departmental Goal #2: Provide Safe and Inviting Parks
Provide safe and inviting park and open spaces for the
community to learn, play, and promote a  healthy and
active lifestyle.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 112

FUND SUMMARIES
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 113 All Funds
This page is a summary of all of the City Operations as included within the budget book including enterprise funds like Water and Sewer. This is provided for informational purposes only as these funds are properly segregated and maintained.

Summary
The City of Cotati is projecting $31.93M of revenue (including transfers in and other sources)  in FY2023, which represents a

30.6% increase over the prior year. Budgeted expenditures (including transfers out and other uses) are projected to increase by 54.5% or $14.95M to $43.92M in FY2023.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$10M
$20M
$30M
$40M
$50M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 114 Budget Summary by Fund
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 115 Revenue by Fund
2024 Revenue by Fund
General (39.9%)
Capital Projects (28%)
Enterprise Funds (20.6%)
Special Revenue Funds (3.8%)
Debt Service (3%)
Internal Service Funds (1.7%)
Private Purpose Trust (1.5%)
Agency Fund (1.4%)
Bed Tax (0.01%)
Budgeted and Historical Revenue by Fund
Millions
Bed Tax
Agency Fund
Private Purpose Trust
Internal Service Funds
Debt Service
Special Revenue Funds
Enterprise Funds
Capital Projects
General
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$10
$20
$30
$40
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 116 Revenues by Source
The City Wide revenues and sources are developed using a combination of consulting support for Property Tax and Sales Tax forecasts, State governmental Detail Reports/Projections for certain  special funds, as well as trend analysis based on historical and anticipated future factors, such as developments under construction or grant awards.

Projected 2024 Revenues by Source
Taxes (34.7%)
Transfers In (22.9%)
Charges for Services (21.3%)
Other Revenues (7.6%)
Grants (6.4%)
COPS GRANT-SLESA (2.2%)
Licenses, Permits & Franchises (2.1%)
Interfund Loan Payments (0.8%)
Other Agency (0.8%)
Debt Service (0.5%)
Budgeted and Historical Revenues by Source
Millions
Grey background indicates budgeted figures.

CDBG Grant Development Fees
Impact Fees Other Financing Sources
Other Income Recognized Obligation Payment Schedule (ROPS) Contributions Franchise Fees
Customer Fees PSAF PROP 172
Rents Debt Service
1/3
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
0 10
20 30
40 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 117 Expenditures by Fund
Significant expenditures across funds for Fiscal Year 2022/23 are investments in capital projects which is approximately $18.6M or a 198% increase from the Prior Year.
2024 Expenditures by Fund
General (44.5%)
Capital Projects (23%)
Enterprise Funds (20.5%)
Special Revenue Funds (5.6%)
Debt Service (2.5%)
Internal Service Funds (1.5%)
Private Purpose Trust (1.2%)
Agency Fund (1.1%)
Bed Tax (0.09%)
Budgeted and Historical Expenditures by Fund
Millions
Bed Tax
Agency Fund
Private Purpose Trust
Internal Service Funds
Debt Service
Special Revenue Funds
Enterprise Funds
Capital Projects
General
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$10
$20
$30
$40
$50
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 118 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Personnel Services (21.8%)
Transfer Out (21.1%)
Capital Project (16%)
Contract Services (10.5%)
Debt Service (7.2%)
Wastewater Treatment (4.7%)
Capital Improvement Project (4.3%)
Capital Outlay (3.9%)
Other Expense (2%)
Economic Development (1.8%)
Water Usage (1.6%)
Utilities (1.6%)
Repairs and Maintenance (1.1%)
Budgeted and Historical Expenditures by Expense Type
Millions
Depreciation
Housing Subsidy
Housing Project
Disclosure Reports
Landscaping
Backflow
Bond Discount
Agency Fees
GSA Fees
Conservation
Contributions
Obligations
Administrative Fee
Materials and Supplies
Payout
Repairs and Maintenance
Utilities
Water Usage
Economic Development
Other Expense
Capital Outlay
Capital Improvement Project
Wastewater Treatment
Debt Service
Contract Services
1/2 FY2017
FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$-10
$0
$10
$20
$30
$40
$50
Please see digital budget book here  for expanded key of expense types included above.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 119 General Fund
The General Fund is the City’s unrestricted source of revenues and expenditures; it is the largest government-type fund with a Fiscal Year  2022/23 year-end  reserve estimated at $4.6 million.

The General Fund supports all non-enterprise departments and more than 50% of the City’s total personnel service costs. Elected and  appointed officials, Recreation and Facilities, Planning  and  Community  Development,  Public  Works (except water and sewer), and  the  Police  Department  are  all  dependent  on  the  General Fund for  their operations.

General Funds can be used for any municipal purpose, including the general operations of the City, and to fund basic City services such as police, park and street maintenance, and  recreational services. Examples of revenue  sources for General Funds include: property  taxes,  sales  taxes, licenses and permits, rents, charges for services, investment earnings, and payments received  from other governmental agencies.

This is a major fund for the City as it accounts for more than 10% of the City-Wide Revenues and Expenses during a Fiscal Year.

Summary
Total  Operating Revenues  for Fiscal Year 2023/24 are budgeted at $10.6M; a 2.4% increase  over the fiscal Year 2022/23  adopted  budget  and  a 5.1% decrease  over  the  estimated actual revenues for Fiscal Year 2022/23.  Comparing the adopted budget to the proposed budget, the increase is primarily due to moderate growth in tax revenues and other revenues. Comparing the proposed 2023/24 budget to the estimated actual for Fiscal Year 2022/23 the increase is primarily due to moderate growth in tax revenues and other revenues.

Total Operating  Expenses  for Fiscal Year 2022/23  are  budgeted  at  $8.8M,a 3.4%  increase over Fiscal Year 2021/22  adopted  budget  and a 31.7% decrease from the estimated  actual.    These  increased  costs  are  primarily due to increased staffing costs such as workers' comp insurance, health benefits, and pensions, as well as the increase in liability insurance due to large catastrophic claims hitting the global insurance market. Decreases from estimated actual are primarily due to a one time funding for the CalPERS unfunded pension liability.

Total Sources and Uses are primarily funding debt payments for the new debt service fund as well as interfund debt service receipts from the enterprise funds.

Transfers In to the General Fund are primarily for the Cops Grant's Fund to contribute back to the Police Department related activities.  Transfers Out primarily fund government capital projects including streets and parks. The total transfers out for Fiscal Year 2022/23 are budgeted at $3.6M, a 1.5% decrease over Fiscal Year 2021/22 adopted budget, and a 37.2% decrease over the estimated Fiscal Year 2021/22 actual. We are proud to be able to fund significant projects in the upcoming year, so please refer to the capital improvement section of the budget book for the details on the projects that are planned near you.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 120 Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$5M
$10M
$15M
$20M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 121

REVENUES
2019-2020
Total Activity
2020-2021
Total Activity
2021-2022
Total Activity
601- PROPERTY TAX $ 1,813,280 $ 1,773,535 $ 1,873,5
603- SALES TAX 5,001,563 5,837,741 6,230,4
604- OTHER TAX 509,572 668,954 723,6
606- LICENSE & FRANCHISE 546,010 623,563 686,8
607- RENTS 101,474 71,712 80
608- REVENUE - OTHER AGENCIES 189,454 200,751 107,
609- OTHER REVENUE 105,644 245,908 326,3
620- CHARGES FOR SVS 415,922 1,026,339 563,
650- INVESTMENT EARNINGS: 103,797 56,654 19,
660- CONTRIBUTIONS 16,986 10,643 19,
680- SPECIAL REVENUES 42,149 32,237 80,8
Total Operating Revenues $ 8,845,850 $ 10,548,036 $ 10,711,5

EXPENSES
CITY COUNCIL $ 123,145 $ 119,672 $ 174,6
CITY MANAGER 537,374 780,611 977,8
ADMINISTRATIVE SERVICES 221,593 314,145 482,
COMMUNITY DEVELOPMENT 674,085 730,836 1,143,7
PUB WORKS-COMBINED 1,008,043 1,030,107 1,555,4
POLICE 3,637,336 4,022,444 7,570,3
RECREATION 301,236 323,186 601,2
CODE COMPLIANCE 2,264 60,793 64,
Total Operating Expenses $ 6,505,077 $ 7,381,794 $ 12,569 Net Operating Revenues/(Expenses) $ 2,340,774 $ 3,166,243 $ (1,858,1 Other Sources/(Uses)
999- INTERFUND DEBT SERVICE $ - $ -
Transfers In/(Out)
670- TRANSFR IN & OTHR SOURCES $ 339,236 $ 219,431 $ 5,936,6 810-TRANSFERS OUT (2,630,461) (1,567,550) (4,144,4
Net Transfers In/Out $ (2,291,225) $ (1,348,119) $ 1,792, Net Fund Surplus/(Deficit) $ 49,549 $ 1,818,124 $ (65,9 Ending Fund Balance/Deficit: 7,302,014 9,120,138 9,054
Required Reserve: 1,626,269 1,845,448 3,142,4
Reserves in Excess: 5,675,745 7,274,689 5,911,7
Total Reserve % of Operating Expenses
112% 124% 72%
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 122 Revenues by Source
This chart and supporting detail include the balance of  transfers in from other funds in combination with other revenue sources.  These funds are usually included after other sources and uses and not relied upon as direct receipts for general funds use and as such are not a part of managements evaluation for operating revenues.

Projected 2024 Revenues by Source
Taxes (82.9%)
Licenses, Permits & Franchises (5.2%)
Charges for Services (3.1%)
Other Revenues (2.6%)
Other Agency (1.9%)
Transfers In (1.9%)
Interfund Loan Payments (1.5%)
Budgeted and Historical Revenues by Source
Millions
Debt Service
Other Financing Sources
Contributions
Rents
Interfund Loan Payments
Transfers In
Other Agency
Other Revenues
Charges for Services
Licenses, Permits & Franchises
Taxes
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 123 Revenue Source
Taxes
Property Tax
PROP. TAX-CURRENT $559,887 $585,646 $622,186 $669,611 $669,611 $696,300 4% PROP. TAX-CURR YR
SUPPLEMENT $25,499 $21,010 $38,343 $0 $15,000 $15,200 1.3% PROP. TAX-UNSECURED $42,980 $42,842 $45,328 $20,354 $52,000 $55,000 5.8% PROP. TAX-PY SUPPLEMENTAL -$24 -$19 -$46 $0 $0 $0 0%
PROP. TAX-PY SEC/UNSEC $668 $700 $846 $0 $0 $0 0%
PROP. TAX-HOMEOWNER
EXEMP $8,229 $8,042 $7,955 $0 $1,158 $0 -100%
PROP. TAX-INCR RESID $460,357 $373,031 $392,894 $510,000 $510,000 $510,000 0% PROP. TAX-IN-LIEU OF VLF $715,055 $742,251 $764,208 $812,430 $818,270 $855,258 4.5% PROP TAX - OTHER $627 $30 $1,793 $0 $0 $0 0%
Total Property Tax: $1,813,280 $1,773,535 $1,873,508 $2,012,395 $2,066,039 $2,131,758 3.2% Sales Tax
SALES TAX $2,442,951 $2,883,312 $3,041,885 $3,020,000 $2,900,000 $2,969,000 2.4% SALES TAX-MEAS. A $0 $64 $3,809 $0 $0 $0 0%
SALES TAX-MEAS. G/S $2,558,612 $2,954,366 $3,184,731 $3,050,000 $3,140,000 $3,115,000 -0.8% Total Sales Tax: $5,001,563 $5,837,741 $6,230,425 $6,070,000 $6,040,000 $6,084,000 0.7% Other Tax
TRANSFER TAX $32,701 $54,440 $76,429 $41,000 $41,000 $52,000 26.8% CANNABIS-BUSINESS TAX $485,777 $592,014 $644,490 $710,000 $570,000 $600,000 5.3% CANNABIS-LICENSE FEE $0 $1,500 $2,750 $700 $3,050 $300 -90.2% CANNABIS-APPLICATION FEE $0 $21,000 $0 $0 $12,400 $0 -100%

CANNABIS-CASH TAX PYMNT
CHRG $174 $0 $0 $0 $0 $0 0%
Total Other Tax: $518,653 $668,954 $723,670 $751,700 $626,450 $652,300 4.1% Total Taxes: $7,333,496 $8,280,230 $8,827,602 $8,834,095 $8,732,489 $8,868,058 1.6% Interfund Loan Payments

INTERFUND LOAN PMTS
RECEIVED $0 $0 $0 $155,742 $155,742 $155,741 0%
Total Interfund Loan Payments: $0 $0 $0 $155,742 $155,742 $155,741 0% Licenses, Permits & Franchises
BUSINESS LICENSE $77,870 $82,873 $79,042 $82,000 $82,000 $80,000 -2.4% BUSINESS LICENSE LATE CHRG $2,844 $5,208 $3,793 $3,000 $7,000 $1,000 -85.7% FRANCHISE-ELECTRIC $63,486 $67,387 $69,734 $62,000 $71,000 $71,000 0% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 124 FRANCHISE-GAS $19,988 $20,826 $24,004 $18,000 $25,000 $20,000 -20% FRANCHISE-CABLE TV $91,037 $88,644 $96,166 $86,000 $89,100 $89,000 -0.1% FRANCHISE-VIDEO SERVICE $7,764 $6,999 $2,966 $6,900 $6,900 $8,000 15.9% FRANCHISE-GARBAGE $283,021 $351,626 $411,100 $280,000 $280,000 $287,500 2.7% Total Licenses, Permits & Franchises: $546,010 $623,563 $686,807 $537,900 $561,000 $556,500 -0.8% Rents
RENTS-FACILITIES / PARKS $43,119 $5,360 $34,433 $30,000 $42,000 $30,000 -28.6% SPECIAL EVENT FEE $0 $0 $1,842 $0 $1,150 $0 -100%
RENTS-OTHER $38,356 $46,352 $43,839 $47,400 $47,400 $48,000 1.3% RENTS-SMART TRAIN $20,000 $20,000 $0 $0 $0 $0 0%
Total Rents: $101,474 $71,712 $80,114 $77,400 $90,550 $78,000 -13.9% Other Agency

DEPT OF TRANS HIGHWAY
RENTAL $216 $0 $0 $0 $0 $0 0%
MOTOR VEHICLE IN-LIEU $6,267 $5,525 $8,582 $5,800 $5,800 $6,500 12.1% STATE MANDATED COSTS SB90 -$1,566 $8,844 $4,981 $4,000 $4,000 $0 -100% SSU SAFETY CONTRACT SVCS. $184,536 $186,381 $93,654 $193,800 $193,865 $200,650 3.5% Total Other Agency: $189,454 $200,751 $107,218 $203,600 $203,665 $207,150 1.7% Other Revenues
CASH OVER / UNDER $14 $839 $168 $0 $0 $0 0%
REIMB $311 -$134 $583 $0 $90 $0 -100%
REIMB-RTRND CHECK FEE $25 $25 $0 $0 $0 $0 0%
REIMB-REMIF $0 $0 $6,145 $0 $15,000 $0 -100%
REV. OTHER $2,873 $18,696 $195,330 $0 $9,000 $0 -100%
REV. OTHER-BAD DEBT
RECOVERY $279 $0 $0 $0 $0 $0 0%
REV. OTHER-DAMAGE TO CITY
PROP $9,320 $19,268 $9,349 $0 $20,815 $0 -100%
REV. OTHER-DOC
RETRIEVAL/REPRO $53 $95 $1,245 $0 $1,500 $0 -100%
REV. OTHER-SALE OF FIXED
ASSET $450 $0 $0 $0 $0 $0 0%
REV. OTHER-GRATON
MITIGATION $15,282 $11,702 $16,048 $14,400 $12,808 $12,808 0% REV. OTHER -
REBATE/INCENTIVE $0 $0 $0 $0 $3,096 $0 -100%
REV. OTHER-EV CHARGING
STATION $3,897 $2,072 $4,313 $3,000 $2,400 $2,500 4.2%
INVESTMENT EARNINGS $88,741 $45,187 $19,298 $26,500 $30,000 $45,600 52% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 125 INVESTMENT EARNINGS-FMV $0 $60 $0 $0 $0 $0 0%
REIMB-ADMIN COSTS $4,727 $135,887 $8,036 $5,000 $17,000 $5,000 -70.6%

REIMB-MHP RENT
STABILIZATION $0 $562 $1,474 $0 $0 $0 0%
REIMBURSE ADMIN COSTS $26,529 $54,123 $16,419 $0 $7,000 $0 -100% REIMB-ADMIN COSTS $33,150 $20,380 $39,884 $20,000 $20,000 $20,000 0% VETS PARK LANDSCAPE REIMB $750 -$550 $250 $500 $2,300 $2,300 0% REIMB-ADMIN COSTS $26,920 $35,905 $66,923 $0 $15,000 $27,450 83% PLAN RECOVERY FEE $0 $0 $0 $0 $0 $15,740 N/A

REIMB-ADMIN COSTS -
ENTITLEMENTS $31,901 $56,298 $87,060 $20,000 $40,500 $91,500 125.9% REIMB-ADMIN COSTS $0 $93,011 $0 $0 $0 $0 0%
REIMB $0 $0 $0 $0 $275 $0 -100%
RECREATION - REV. OTHER -$75 $2,120 $0 $0 $0 $0 0%
CONTRACT CLASS REVENUE $42,149 $32,237 $80,885 $30,000 $62,000 $45,000 -27.4% CODE ENFORCEMENT $0 $54,750 -$6,426 $6,000 $500 $10,000 1,900% Total Other Revenues: $287,296 $582,535 $546,983 $125,400 $259,284 $277,898 7.2% Charges for Services

ENG PLN CHK-BLDG PERMIT
REV $3,734 $10,870 $19,176 $0 $15,500 $14,000 -9.7%
GRADING PLAN CHECK $1,150 $0 $640 $0 $1,500 $0 -100%

MAJOR ENCROACHMENT
PERMIT $0 $20,000 $0 $0 $15,000 $5,000 -66.7%
MINOR ENCROACH-NON-CONST. $765 $2,238 $6,049 $0 $1,570 $1,500 -4.5% MINR ENCROACH-CONST. $22,400 $50,560 $18,146 $25,000 $22,375 $20,000 -10.6% PROP. OWNR CONTR $27,439 $0 $0 $0 $0 $0 0%
REIMB-ADMIN COSTS $19,016 $8,735 $9,580 $5,000 $2,000 $5,000 150%

BLUEPRINT/MAP
REPRODUCTION $11 $78 $1,580 $50 $50 $50 0%
BUILDING PERMIT REVENUE $139,137 $413,526 $217,909 $165,000 $165,000 $165,000 0% BUILDING PLAN CHECK $1,870 $27,272 $31,439 $10,000 $10,000 $20,000 100% CBSC BUILDING STDS SB 1473 $43 $169 $36 $200 $200 $200 0% CERTIFICATE OF COMPLIANCE $0 $0 $670 $0 $0 $0 0%

CONDITIONAL USE PERMIT
REVIEW $750 $0 $0 $0 $0 $0 0%
ENERGY/TITLE 24 FEE $5,951 $27,413 $2,943 $10,000 $10,000 $3,000 -70% ENVIRO CTGRCL EXEMPTION $0 $0 $0 $2,000 $2,000 $0 -100%

GROWTH MANAGEMENT
REVIEW $175 $0 $1,200 $0 $0 $0 0%
INCREMENTAL FEE $7,399 $18,757 $7,508 $5,000 $5,000 $5,000 0% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 126 MISCELLANEOUS FEES $630 $150 $525 $0 $0 $0 0%
OUTSIDE PLAN REVIEW $32,823 $57,469 $23,869 $25,000 $25,000 $25,000 0% PLAN REVISION CHECKING $0 $690 $1,635 $0 $1,150 $0 -100% PRE/FINAL DESIGN REVIEW $6,512 $8,761 $8,762 $2,000 $6,200 $5,000 -19.4% SIGN PERMIT $40 $325 $1,000 $0 $0 $0 0%
STRONG MOTION FEE -$23 -$1,144 $42 $1,000 $500 $250 -50% TECHNOLOGY FEE $7,385 $23,136 $7,394 $5,000 $5,000 $5,000 0% TEMPORARY USE REVIEW $0 $0 $0 $2,000 $0 $0 0%
TREE REPLACEMENT FEE $370 $36,065 $1,325 $500 $1,050 $500 -52.4% ZONING RESEARCH LETTER $90 $135 $0 $0 $360 $200 -44.4%
Concept/Preliminary Development
Review $0 $0 $2,406 $2,500 $0 $3,986 N/A
POST REIMBURSEMENT $479 $0 $5,951 $1,000 $7,500 $3,500 -53.3% PERMIT-ALARM $2,301 $2,490 $2,560 $3,000 $2,200 $3,000 36.4% PERMIT-OTHER $545 $0 $0 $300 $300 $0 -100%
ANIMAL CONTROL $4,465 $7,095 $5,800 $4,500 $4,500 $5,000 11.1% IMPOUND/ABATEMENT/RELEASE $10,566 $6,440 $6,641 $9,000 $6,700 $6,000 -10.4% REPOSSESSION FEE $90 $190 $0 $0 $270 $0 -100%
SUBPOENA FEES $165 $0 $0 $0 $0 $0 0%
POLICECOPIES/REPRO/REPORTS $6,504 $2,451 $3,982 $6,000 $1,500 $1,500 0% FINGERPRINT REQUEST $884 $0 $0 $1,000 $0 $500 N/A
PARKING ENFORCEMENT $17,790 $6,055 $16,995 $10,000 $8,000 $8,500 6.3% DISTURBANCE-NOISE $500 $1,400 $0 $0 $0 $0 0%
TRAFFIC/CRIMINAL CODE FINES $39,425 $33,427 $36,735 $30,000 $30,000 $30,000 0% FINES & FORFEITURES $4,278 $1,666 $19 $0 $0 $0 0%
REV. OTHER $250 $777 $750 $0 $380 $0 -100%
Total Charges for Services: $365,909 $767,196 $443,266 $325,050 $350,805 $336,686 -4% Debt Service
OTHER INTEREST $15,056 $11,407 $419 $0 $0 $0 0%
Total Debt Service: $15,056 $11,407 $419 $0 $0 $0 0%
Contributions
CONTRIBUTIONS $6,805 $0 $1,732 $1,000 $500 $1,000 100%
CONTRIBUTIONS $3,795 $270 $0 $1,000 $0 $0 0%
CONTRIBUTIONS $1,500 -$304 $7,885 $1,000 $2,500 $2,500 0% SCHOLARSHIP FUNDING $297 $1,485 $671 $300 $300 $300 0%
SCHOLARSHIP AWARDS $0 $0 -$57 $0 -$300 -$300 0%
SPECIAL EVENTS REVENUE $4,589 $9,192 $8,953 $3,000 $9,000 $8,500 -5.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 127 Total Contributions: $16,986 $10,643 $19,184 $6,300 $12,000 $12,000 0% Transfers In
OPER TRANS IN-GENL $339,236 $219,431 $5,936,630 $179,322 $906,493 $202,000 -77.7% Total Transfers In: $339,236 $219,431 $5,936,630 $179,322 $906,493 $202,000 -77.7% Total Revenue Source: $9,194,917 $10,767,467 $16,648,222 $10,444,809 $11,272,028 $10,694,033 -5.1% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2023
Estimate
vs.

FY2024
Proposed
Budget
(%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 128 Expenditures by Function
For all departments, increases for the FY 21/22 Estimate compared to the FY 21/22 Adopted Budget are primarily due to the additional CalPERS UAL payment that was made in January 2022.

Recreation Department — Increase in overall expenditure continues to follow historical trends since FY 18/19.

Police Department — Primary increase is due to increased insurance costs.

Public Works Department — Primary increases in budget are due to increased staffing and increased insurance costs.

Community Development Department — Primary increase is due to increased insurance costs, and to adjustments for personnel and contract services to meet both the code enforcement and building inspection services, which the department supports.

Administrative Services Department — Expenditures have increased compared with the prior year’s budget.

Increases are primarily due to additional staffing, insurance and allocated contract services.

City Manager Department — Projected staffing changes have reduced expenditures for personnel services.

These decreases are partially offset by increased other expenses related continued Economic Development and Public Information Services Initiatives.

City Council — Expenditures have remained consistent with prior year’s budget with the main increase due to the funding of retiree Healthcare, but offset by reductions in other expenses.

Budgeted Expenditures by Function
General Government (35%)
Police (34.5%)
Public Works (9.6%)
Community Development (7.7%)
City Manager (5.1%)
Administrative Services (3.5%)
Recreation (3.1%)
City Council (1.2%)
Code Enforcement (0.3%)
Allocated Departmental Expenditures:

Historically, Legal Services and Non-Departmental expenses were reported within separate departments within the general fund. However, as these services are utilized by all departments, these costs have now been reallocated to all departments using the proportional FTE. As such, there is no budgetary schedule provided herein.

General Government Expenditures represent the
General Fund Transfers to Other Governmental Funds:

There are various types of transfers related to other sources and uses of funds.  For the budget presented, these transfers are not allocated to a department but rather shown as the general governmental expenditures.  See the Capital Improvements section of the budget for further detail on the specific projects proposed within the City General Funds contributions.  Most of the funding to be provided for Fiscal Year 2022/23 is only possible due to Measure S.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 129 Budgeted and Historical Expenditures by Function
Millions
Legal Services
Non-Departmental
Public Information
Economic Development
Code Enforcement
City Council
Recreation
Administrative Services
City Manager
Community Development
Public Works
Police
General Government
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
Expenditures
General
Government $2,646,134 $1,577,751 $4,206,540 $3,696,655 $4,276,658 $5,081,236 18.8% City Council $123,145 $119,658 $174,632 $152,689 $184,461 $170,457 -7.6% City Manager $537,374 $772,383 $977,867 $645,775 $673,381 $741,811 10.2% Administrative
Services $221,593 $310,961 $482,146 $443,068 $443,274 $508,290 14.7% Non-Departmental $0 $0 $0 $809,974 $0 $0 0%
Community
Development $674,085 $720,162 $1,143,788 $1,064,569 $858,539 $1,115,760 30% Public Works $1,008,043 $998,817 $1,555,498 $1,399,279 $1,379,923 $1,400,181 1.5% Police $3,635,869 $3,963,892 $7,570,383 $4,652,725 $4,421,173 $5,017,822 13.5% Recreation $301,236 $315,960 $601,239 $388,489 $429,957 $449,530 4.6% Code Enforcement $2,264 $60,793 $64,157 $46,000 $78,090 $43,975 -43.7% Total Expenditures: $9,149,744 $8,840,375 $16,776,251 $13,299,223 $12,745,456 $14,529,062 14% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 130 Expenditures by Expense Type
This chart and supporting detail include the balance of transfers out from the general fund as an expenditure. These funds are usually included after other sources and uses and not included within operating expenditures. Please see capital projects detail for more information on the use of these funds.

Budgeted Expenditures by Expense Type
Personnel Services (38.4%)
Transfer Out (35%)
Contract Services (17.6%)
Other Expense (2.9%)
Utilities (2.6%)
Repairs and Maintenance (1.5%)
Payout (0.7%)
Materials and Supplies (0.5%)
Budgeted and Historical Expenditures by Expense Type
Millions
Agency Fees
Capital Outlay
Debt Service
Contributions
Administrative Fee
Materials and Supplies
Payout
Repairs and Maintenance
Utilities
Other Expense
Contract Services
Transfer Out
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
$-5
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
% Change
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 131 Expense Objects
Personnel Services
Benefits $1,396,465 $1,514,079 $6,615,400 $1,508,550 $1,429,125 $1,455,850 -76.9% Salaries $2,843,989 $3,062,723 $3,186,624 $3,729,170 $3,514,587 $4,119,855 19.4% Total Personnel Services: $4,240,454 $4,576,802 $9,802,024 $5,237,720 $4,943,712 $5,575,705 -45.8% Payout $47,380 $95,876 $127,743 $105,480 $154,800 $107,770 -1.6% Total Payout: $47,380 $95,876 $127,743 $105,480 $154,800 $107,770 -1.6% Materials and Supplies $109,997 $77,248 $81,625 $88,860 $89,320 $76,762 -1.8% Total Materials and
Supplies: $109,997 $77,248 $81,625 $88,860 $89,320 $76,762 -1.8% Contract Services $1,232,847 $1,509,002 $1,685,827 $2,234,596 $2,055,370 $2,551,394 10.8% Total Contract Services: $1,232,847 $1,509,002 $1,685,827 $2,234,596 $2,055,370 $2,551,394 10.8% Repairs and Maintenance $236,618 $233,947 $115,371 $117,000 $120,520 $211,200 -56.3% Total Repairs and
Maintenance: $236,618 $233,947 $115,371 $117,000 $120,520 $211,200 -56.3% Utilities $261,389 $297,152 $245,669 $264,550 $333,210 $381,817 -15.1% Total Utilities: $261,389 $297,152 $245,669 $264,550 $333,210 $381,817 -15.1% Other Expense $297,250 $375,887 $301,689 $423,629 $461,807 $425,843 37.2% Total Other Expense: $297,250 $375,887 $301,689 $423,629 $461,807 $425,843 37.2% Administrative Fee $56,886 $53,674 $71,130 $63,480 $54,380 $75,280 -18.4% Total Administrative Fee: $56,886 $53,674 $71,130 $63,480 $54,380 $75,280 -18.4% Debt Service -$1,911 $11,855 $70,554 $816,404 $4,830 $8,180 8,603.7% Total Debt Service: -$1,911 $11,855 $70,554 $816,404 $4,830 $8,180 8,603.7% Capital Outlay $14,160 $16,646 $55,456 $225,849 $225,849 $7,875 N/A Total Capital Outlay: $14,160 $16,646 $55,456 $225,849 $225,849 $7,875 N/A Transfer Out $2,630,461 $1,567,550 $4,144,478 $3,696,655 $4,276,658 $5,081,236 204.4% Total Transfer Out: $2,630,461 $1,567,550 $4,144,478 $3,696,655 $4,276,658 $5,081,236 204.4% Contributions $24,214 $24,735 $74,684 $25,000 $25,000 $26,000 -3.8% Total Contributions: $24,214 $24,735 $74,684 $25,000 $25,000 $26,000 -3.8% Total Expense Objects: $9,149,744 $8,840,375 $16,776,251 $13,299,223 $12,745,456 $14,529,062 -5.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
% Change
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 132 Fund Balance
The fund balance for Fiscal Year 2022/23 is projected to decrease due to use of funds to stimulate significant capital projects during the year with over $4.5M in transfers out for said projects. The City will continue to maintain the required reserve of 25% of operating expenses.

Projections
Assigned Unassigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$2M
$4M
$6M
$8M
$10M
FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Fund Balance — — — — —
Unassigned $5,595,806 $5,391,045 $7,018,952 $4,264,059 $2,431,381 -43% $-1,832,678 Assigned $1,654,384 $1,910,969 $1,818,206 $3,219,883 $2,198,149 -31.7% $-1,021,734 Total Fund Balance: $7,250,190 $7,302,014 $8,837,158 $7,483,942 $4,629,530 -38.1% $-2,854,412 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 133 Enterprise
Funds
(Water/Sewer)
This page is provided as a summary of the enterprise funds for the City, which includes both the Operating and Capital Funds for both Water and Sewer Services provided to the Community. This is for presentational purposes only and the funds are strictly segregated within the financial system.

Summary
The City of Cotati is projecting $5.52M of revenue in FY2024, which represents a 11.3% increase over the prior year. Budgeted expenditures are projected to decrease by 13.5% to $6.67M in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$2.5M
$5M
$7.5M
$10M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 134 Revenue by Fund
Revenues are primarily derived from fees for services.  These fees are subject to independent evaluations with Rate Studies.

The City was engaged in a new rate study during Fiscal Year 2021/22 to evaluate the appropriate rates to be applied for services. The rates will be in effect for the next 5 years. 2024 Revenue by Fund
Sewer Operating Fund (56.3%)
Water Operating (41.4%)
Sewer Capital Reserve (2.2%)
Water Capital Fund (0.1%)
Budgeted and Historical Revenue by Fund
Millions
Water Capital Fund
Sewer Capital Reserve
Water Operating
Sewer Operating Fund
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$2
$4
$6
$8
Sewer Operating
Fund $2,602,763 $2,667,644 $2,831,090 $3,067,000 $2,890,300 $3,109,270 10% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 135 Sewer Capital
Reserve $721,808 $192,562 $299,486 $641,787 $593,787 $122,569 423.6% Water Operating $1,929,407 $2,137,127 $1,995,039 $2,198,000 $2,166,000 $2,288,800 6.2% Water Capital
Fund $234,555 $92,732 $335,409 $6,700 $5,000 $6,700 -98% Total: $5,488,533 $5,090,065 $5,461,024 $5,913,487 $5,655,087 $5,527,339 11.3% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
Expenditures by Fund
Expenditures within the operating funds include all the cost to provide services to the utility users including personnel, insurance, cost of water/wastewater treatment, equipment, technological systems, bank fees, etc. Capital Funds are used to support infrastructure improvements and maintenance.  See the detail under the expenditure by expense type below. 2024 Expenditures by Fund
Sewer Operating Fund (53.8%)
Water Operating (32.3%)
Sewer Capital Reserve (10.4%)
Water Capital Fund (3.5%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 136 Budgeted and Historical Expenditures by Fund
Millions
Water Capital Fund
Sewer Capital Reserve
Water Operating
Sewer Operating Fund
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$2
$4
$6
$8
$10
Sewer Operating
Fund $2,679,484 $3,098,568 $3,262,577 $3,562,353 $3,500,660 $3,593,524 6.2% Sewer Capital
Reserve $252,243 $341,312 $388,345 $1,250,000 $1,185,000 $695,000 537.8% Water Operating $1,685,804 $1,993,792 $1,761,769 $2,672,636 $2,834,406 $2,156,666 25.3% Water Capital
Fund $400,817 $306,254 $304,999 $808,900 $196,105 $232,500 276.2% Total: $5,018,348 $5,739,926 $5,717,689 $8,293,888 $7,716,171 $6,677,690 40.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 137 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Wastewater Treatment (22.9%)
Personnel Services (20.9%)
Debt Service (16%)
Capital Outlay (13.9%)
Contract Services (9.5%)
Water Usage (8%)
Other Expense (3%)
Utilities (2%)
Repairs and Maintenance (1.9%)
Payout (0.8%)
Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Depreciation
Administrative Fee
Backflow
GSA Fees
Conservation
Materials and Supplies
Payout
Repairs and Maintenance
Utilities
Other Expense
Water Usage
Contract Services
Capital Outlay
Debt Service
Personnel Services
Wastewater Treatment
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$-5
$-2.5
$0
$2.5
$5
$7.5
$10
Expense Objects
Personnel Services $1,308,111 $1,426,942 $1,607,213 $1,337,950 $1,295,179 $1,395,460 7.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 138 Payout $12,333 $76,172 $64,134 $55,290 $67,150 $53,140 -20.9% Materials and
Supplies $54,386 $25,575 $25,530 $29,428 $25,928 $30,236 16.6% Contract Services $320,106 $348,512 $368,904 $475,336 $588,394 $635,254 8% Repairs and
Maintenance $86,991 $125,174 $73,839 $137,750 $117,750 $123,800 5.1% Utilities $104,334 $113,397 $90,072 $91,350 $115,700 $131,439 13.6% Other Expense $72,305 -$342,338 $40,520 $168,884 $239,854 $203,616 -15.1% Administrative Fee $27 -$4,211 $650 $30 $30 $30 0%
Debt Service $904,210 $901,391 $989,337 $1,718,571 $1,718,571 $1,065,474 -38% Capital Outlay $83,131 $736,086 $109,597 $2,200,050 $1,434,680 $927,500 -35.4% Depreciation $650,346 $541,597 $564,975 $0 $0 $0 0%
Water Usage $475,192 $602,082 $453,872 $600,000 $580,000 $531,300 -8.4% Backflow $11,418 $12,406 $16,580 $17,000 $3,605 $5,000 38.7% GSA Fees $0 $0 $5,252 $0 $12,700 $15,000 18.1%
Wastewater
Treatment $885,435 $1,142,028 $1,250,570 $1,420,000 $1,482,840 $1,531,641 3.3% Conservation $50,023 $35,113 $56,644 $42,250 $33,790 $28,800 -14.8% Total Expense
Objects: $5,018,348 $5,739,926 $5,717,689 $8,293,888 $7,716,171 $6,677,690 -13.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 139 Sewer
Operating
Fund 404
The goal of the Sewer Division is to: Protect the health and welfare of the community by insuring the continuous, uninterrupted operation of the wastewater collection and transmission system. Provide appropriate maintenance and repair of wastewater collection and transmission systems and appurtenances.

This is a major fund for the City, as it accounts for more than 10% of the City-wide Revenues and Expenses during a fiscal year.

Summary
The City of Cotati is projecting $3.10M of revenue in FY2024, which represents a 7.6% increase over the prior year. Budgeted expenditures are projected to increase by 2.7% or $3.50 K to $3.59M in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$1M
$2M
$3M
$4M
Revenues by Source
Revenues are generated based on the sewer usage as multiplied by the sewer usage rate as well as the base service charges.

Projections for revenues are based on the known rate increases as well as historical trends for usage.

The City's multiyear rate study was adopted and put into place during FY2022. For more information please see our City website here .

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 140 Budgeted and Historical Revenues by Source
Millions
Impact Fees
Debt Service
Other Revenues
Charges for Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.5
$1
$1.5
$2
$2.5
$3
$3.5
Revenue Source
Other Revenues $141,530 $25,059 $27,314 $5,000 $5,300 $5,000 -5.7% Charges for
Services $2,393,211 $2,569,085 $2,778,779 $3,062,000 $2,885,000 $3,104,270 7.6% Impact Fees $19,250 $73,500 $17,750 $0 $0 $0 0%
Debt Service $48,772 $0 $7,247 $0 $0 $0 0%
Total Revenue
Source: $2,602,763 $2,667,644 $2,831,090 $3,067,000 $2,890,300 $3,109,270 7.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 141 Expenditures by Expense Type
Increases in Operating Expenses are primarily due to the increasing cost of treatment charges.

Budgeted Expenditures by Expense Type
Wastewater Treatment (42.6%)
Debt Service (26.7%)
Personnel Services (19.4%)
Contract Services (6.3%)
Other Expense (2%)
Repairs and Maintenance (1.3%)
Utilities (0.8%)
Payout (0.7%)
Materials and Supplies (0.2%)
Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Administrative Fee
Capital Outlay
Conservation
Materials and Supplies
Payout
Utilities
Repairs and Maintenance
Other Expense
Contract Services
Personnel Services
Debt Service
Wastewater Treatment
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$1
$2
$3
$4
Expense Objects
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 142 Personnel Services $628,053 $702,373 $793,654 $667,690 $636,649 $696,370 9.4% Payout $6,167 $37,848 $31,781 $27,180 $33,575 $26,150 -22.1% Materials and
Supplies $6,089 $11,700 $7,496 $7,212 $7,212 $7,612 5.5% Contract Services $133,876 $131,416 $150,219 $181,602 $178,900 $224,938 25.7% Repairs and
Maintenance $45,879 $48,152 $30,733 $45,000 $25,000 $45,300 81.2% Utilities $13,207 $15,407 $15,271 $14,850 $19,200 $27,376 42.6% Other Expense $69,996 $99,002 $35,257 $79,142 $85,182 $73,132 -14.1% Administrative Fee $6 $146 $607 $0 $0 $0 0%
Debt Service $890,776 $890,082 $946,989 $1,032,102 $1,032,102 $961,005 -6.9% Capital Outlay $0 $20,415 $0 $87,575 $0 $0 0%
Wastewater
Treatment $885,435 $1,142,028 $1,250,570 $1,420,000 $1,482,840 $1,531,641 3.3% Total Expense
Objects: $2,679,484 $3,098,568 $3,262,577 $3,562,353 $3,500,660 $3,593,524 2.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Fund Balance
The fund balance continues to exceed the required 33% reserve requirement as set out by council resolution. We will continue to monitor the reserves to ensure the stability of this fund for our community into the future.

Projections
Unassigned Assigned
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$1M
$2M
$3M
$4M
FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Fund Balance — — — — —
Total Fund Balance: $3,266,926 $3,154,927 $2,813,586 $2,258,113 $1,734,000 -23.2% $-524,113 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 143 FY2019 FY2020 FY2021 FY2022 FY2023 % Change $ Change
Unassigned $2,436,439 $2,269,429 $1,842,895 $1,174,347 $596,351 -49.2% $-577,996 Assigned $830,487 $885,498 $970,691 $1,083,766 $1,137,649 5% $53,883 Total Fund Balance: $3,266,926 $3,154,927 $2,813,586 $2,258,113 $1,734,000 -23.2% $-524,113 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 144 Sewer
Capital
Fund 405
This fund is used to account for capital projects and infrastructure needs to support the ongoing operations for our sewer customers.

Summary
The City of Cotati is projecting $122.69K of revenue in FY2024, which represents a 79.4% decrease over the prior year.

Budgeted expenditures are projected to decrease by 41.4% or $1.19M to $0.67M in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$250K
$500K
$750K
$1M
$1.25M
$1.5M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 145 Revenues by Source
Revenues for FY2023 were calculated assuming (1) Charges for Services have a 5% increase (calculation of the rate increases offset by reduced usage), (2) Connection Fees follow the change consistent with the historical average and (3) Debt proceeds are significantly higher due to the full payoff of the remaining $552K interfund loan from the Water Fund.

Budgeted and Historical Revenues by Source
Millions
Impact Fees
Transfers In
Other Revenues
Charges for Services
Debt Service
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.2
$0.4
$0.6
$0.8
$1
$1.2
Revenue Source
Other Revenues $5,290 $1,431 $1,318 $3,000 $5,000 $3,000 -40% Charges for
Services $36,567 $36,567 $36,567 $36,567 $36,567 $15,100 -58.7% Impact Fees $666,517 $143,256 $252,455 $50,000 $0 $0 0% Debt Service $13,434 $11,309 $9,147 $552,220 $552,220 $104,469 -81.1% Total Revenue
Source: $721,808 $192,562 $299,486 $641,787 $593,787 $122,569 -79.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 146 Expenditures by Expense Type
The Sewer Fund continues strategic capital projects after the major investment in the Laguna Bypass Sewer Replacement Project in FY2019. For FY2023, the City is planning to focus on the West Sierra Avenue Sewer Replacement, system repairs and maintenance, including inflow and infiltration (I&I) reduction projects, as well as investments in Phase 2 of the Sewer SCADA system.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
Contract Services
Other Expense
Depreciation
Wastewater Treatment
Capital Outlay
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$-6
$-4
$-2
$0
$2
$4
$6
Expense Objects
Other Expense -$68,267 -$609,702 $0 $0 $0 $0 0%
Debt Service $0 $0 $6,589 $0 $0 $0 0%
Capital Outlay $70,981 $702,232 $109,597 $1,250,000 $1,185,000 $695,000 -41.4% Depreciation $249,529 $248,782 $272,160 $0 $0 $0 0%
Total Expense
Objects: $252,243 $341,312 $388,345 $1,250,000 $1,185,000 $695,000 -41.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 147 Fund Balance
This fund balance will fluctuate based on usage of funds for strategic capital projects.  We will continue to evaluate and maintain the fund to meet future needs.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$-1000000
$0
$1M
$2M
$3M
$4M
$5M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 148 Special
Revenue
Funds
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.

Departmental Oversight of Special Revenue Funds
Each special revenue fund is managed by departments within the City. Below is the summary of the special revenue funds by their managing department.

Summary
The City of Cotati is projecting approximately $0.88M of revenue in FY2023, which represents a 66.6% decrease over the prior year. Budgeted expenditures are projected to decrease by 59.7% or $1.57M to $1.47M in FY2023.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$1M
$2M
$3M
$4M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 149 Revenue by Fund
2024 Revenue by Fund
Gas Tax (21.4%)
Public Safety (16.8%)
RMRA (16.1%)
In-Lieu-Inclusionary Hsng (10.8%)
Parks Measure M (8.7%)
MTC Street (7.8%)
Traffic Mitigation (5.5%)
Community Facilities Dist (3.9%)
K-9 Program (3.1%)
Park In Lieu (3.1%)
PEG (2%)
Bed Tax (0.4%)
Disability Access And Education
Revolving Fund (0.3%)
Disability Access And Education
Budgeted and Historical 2024 Revenue by Fund
Millions
CDBG
Lmd Assessment Districts
Linkage - Affordable Hsng
ARPA 2021
Disability Access And Education Revolving Fund
Bed Tax
PEG
Park In Lieu
K-9 Program
Community Facilities Dist
Traffic Mitigation
MTC Street
Parks Measure M
In-Lieu-Inclusionary Hsng
RMRA
Public Safety
Gas Tax
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.5
$1
$1.5
$2
$2.5
$3
$3.5
CDBG $240,000 $26,425 $331,464 $0 $0 $0 $0 0%
Gas Tax $207,998 $187,715 $171,601 $182,575 $219,200 $201,276 $208,620 5.1% MTC Street $60,000 $63,543 $70,584 $78,823 $79,700 $80,770 $76,500 -1.4% Traffic Mitigation $247,920 $14,939 $58,092 $357,980 $54,000 $1,000 $54,000 8% Name FY2020
Budgeted
FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2022 Est.
vs. FY2023
Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 150 Park In Lieu -$136,200 $22,030 $73,287 $27,742 $26,000 $150 $30,000 -13.3% PEG $19,100 $20,021 $19,263 $19,930 $20,000 $20,050 $20,000 0% Public Safety $166,000 $175,995 $171,159 $199,514 $164,000 $172,120 $164,000 0% K-9 Program $5,000 $1,487 $4,851 $72 $13,840 $14,390 $30,340 88.6% In-Lieu-Inclusionary Hsng $110,000 $83,041 $69,389 $31,225 $67,499 $100,624 $105,568 0% Bed Tax $4,000 $2,775 $18,863 $2,084 $4,000 $500 $4,000 0% Parks Measure M $0 $90,269 $96,579 $109,948 $85,000 $85,400 $85,000 0% Community Facilities Dist $0 $0 $1,415 $28,511 $10,400 $36,780 $37,800 30% RMRA $127,700 $138,624 $139,093 $149,632 $135,000 $155,100 $157,500 0% Linkage - Affordable Hsng $0 $1,451 $770 $110,734 $0 $350 $0 -100% Disability Access And
Education Revolving Fund $2,500 $76,479 $3,068 $2,745 $2,500 $2,500 $2,500 0% Lmd Assessment Districts $0 $49,878 $0 $0 $0 $0 $0 0%
ARPA 2021 $0 $0 $0 $1,772,630 $0 $0 $0 -100%
Total: $1,054,018 $954,674 $1,229,478 $3,074,146 $881,139 $871,010 $975,828 -66.6% Name FY2020
Budgeted
FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted
Budget
FY2023
Estimate
FY2024
Proposed
Budget
FY2022 Est.
vs. FY2023
Adop. (%
Change)
Revenues by Source
Projected 2024 Revenues by Source
Taxes (42.2%)
Other Revenues (26.3%)
COPS GRANT-SLESA (10.2%)
Interfund Loan Payments (6.9%)
PSAF PROP 172 (6.6%)
Transfers In (3.1%)
Debt Service (2.4%)
Franchise Fees (2%)
Charges for Services (0.3%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 151 Budgeted and Historical Revenues by Source
Millions
CDBG Grant
Development Fees
Contributions
Other Income
Charges for Services
Franchise Fees
Debt Service
Transfers In
PSAF PROP 172
Interfund Loan Payments

COPS GRANT-SLESA
Other Revenues
Taxes
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.5
$1
$1.5
$2
$2.5
$3
$3.5
Revenue Source
Taxes $406,518 $356,962 $401,324 $398,000 $403,856 $411,620 3.1% Interfund Loan
Payments $0 $0 $0 $67,499 $67,499 $67,499 0%
Franchise Fees $19,877 $19,177 $19,882 $20,000 $20,000 $20,000 0% PSAF PROP 172 $60,057 $62,866 $75,848 $64,000 $72,000 $64,000 0% Other Revenues $288,185 $292,502 $542,218 $215,300 $167,640 $256,800 0% Charges for
Services $3,007 $2,971 $2,706 $2,500 $2,500 $2,500 0%
CDBG Grant $11,450 $331,464 $1,772,630 $0 $0 $0 -100%
COPS GRANTSLESA $115,492 $107,807 $123,539 $100,000 $100,000 $100,000 0% Development Fees $0 $0 $110,410 $0 $0 $0 -100%
Debt Service $33,677 $50,878 $25,517 $0 $23,125 $23,069 0% Contributions $1,437 $238 $72 $0 $550 $0 0%
Transfers In $14,975 $4,612 $0 $13,840 $13,840 $30,340 88.6% Total Revenue
Source: $954,674 $1,229,478 $3,074,146 $881,139 $871,010 $975,828 -66.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 152 Expenditures by Expense Type
Budgeted Expenditures by Expense Type

89.3%

9.3%
1%

0.3%

0.05%

0.03%
Transfer Out
Contract Services
Other Expense
Contributions
Materials and Supplies
Administrative Fee
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Personnel Services
Repairs and Maintenance
Utilities
Landscaping
Capital Outlay
Housing Subsidy
Capital Project
Housing Project
Administrative Fee
Materials and Supplies
Contributions
Other Expense
Contract Services
Transfer Out
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.5
$1
$1.5
$2
$2.5
$3
$3.5
Expense Objects
Materials and
Supplies $677 $868 $767 $840 $840 $840 0%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 153 Total Materials and
Supplies: $677 $868 $767 $840 $840 $840 0%
Contract Services $273,336 $49,144 $117,311 $116,578 $62,619 $164,000 -39.4% Total Contract
Services: $273,336 $49,144 $117,311 $116,578 $62,619 $164,000 -39.4% Utilities $10,489 $0 $0 $0 $0 $0 0%
Total Utilities: $10,489 $0 $0 $0 $0 $0 0%
Other Expense $28,848 $17,053 $17,203 $15,500 $15,500 $18,500 -38% Total Other Expense: $28,848 $17,053 $17,203 $15,500 $15,500 $18,500 -38% Landscaping $8,357 $0 $0 $0 $0 $0 0%
Total Landscaping: $8,357 $0 $0 $0 $0 $0 0%
Administrative Fee $412 $12 $245 $0 $500 $500 0%
Total Administrative
Fee: $412 $12 $245 $0 $500 $500 0%
Debt Service $0 $0 $37,118 $0 $0 $0 0%
Total Debt Service: $0 $0 $37,118 $0 $0 $0 0%
Transfer Out $812,902 $750,254 $2,592,596 $1,329,122 $1,451,800 $1,580,193 -61.1% Total Transfer Out: $812,902 $750,254 $2,592,596 $1,329,122 $1,451,800 $1,580,193 -61.1% Contributions $4,789 $4,882 $12,980 $5,200 $5,240 $5,600 15.6% Total Contributions: $4,789 $4,882 $12,980 $5,200 $5,240 $5,600 15.6% Housing Subsidy $0 $0 $250,000 $0 $0 $0 0%
Total Housing
Subsidy: $0 $0 $250,000 $0 $0 $0 0%
Capital Project $26,425 $290,583 $0 $0 $0 $0 0%
Total Capital Project: $26,425 $290,583 $0 $0 $0 $0 0%
Housing Project $62,204 $27,208 $8,878 $0 $0 $0 0%
Total Housing Project: $62,204 $27,208 $8,878 $0 $0 $0 0% Total Expense Objects: $1,228,438 $1,140,005 $3,037,098 $1,467,240 $1,536,499 $1,769,633 -59.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 154 Grants Fund
Fund 201
This fund is designed to account for the construction of projects that utilize Federal, State, regional, and local grants funds other than CDBG. City Staff applies for and receives competitive funding grants for various City projects that meet specific criteria.

Summary
The City of Cotati is projecting $5.85M of revenue in FY2024, which represents a 5.3% increase over the prior year. Budgeted expenditures are projected to increase by 6.7% to $5.48M  in FY2024. For more detail please see the Capital Improvements section, and the Appendix.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$2M
$4M
$6M
$8M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 155 Revenues by Source
Projected 2024 Revenues by Source
Transfers In (62%)
Grants (29.4%)
COPS GRANT-SLESA (8.5%)
Budgeted and Historical Revenues by Source
Millions
Other Revenues
CDBG Grant

COPS GRANT-SLESA
Grants
Transfers In
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$1
$2
$3
$4
$5
$6
$7
Revenue Source
Other Revenues $38,489 $66,584 $23,321 $0 $0 $0 0%
CDBG Grant $675,000 $500,891 $0 $1,277,900 $1,077,900 $0 -100% COPS GRANTSLESA $29,833 $171,368 $147,157 $50,000 $0 $500,000 N/A Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 156 Transfers In $384,778 $202,232 $102,492 $4,110,000 $4,310,000 $3,629,214 -15.8% Grants $0 $0 $0 $0 $164,601 $1,719,914 944.9%
Total Revenue
Source: $1,128,100 $941,074 $272,970 $5,437,900 $5,552,501 $5,849,128 5.3% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Expenditures by Expense Type
The City has elevated the priority of investments in streets infrastructure as well as City buildings and parks. See the Capital Improvements section of the budget for more detailed information about specific projects programed in Fiscal Year 2022/23.

Budgeted Expenditures by Expense Type
Capital Project (89.5%)
Economic Development (10.3%)
Other Expense (0.2%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 157 Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Capital Improvement Project
Other Expense
Economic Development
Capital Project
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$1
$2
$3
$4
$5
$6
$7
Expense Objects
Other Expense $0 $0 $0 $0 $112,421 $11,464 -89.8%
Economic
Development $29,833 $312,749 $142,569 $160,000 $90,000 $600,000 566.7% Capital Project $1,098,267 $36,527 $74,446 $5,277,900 $5,277,900 $5,237,664 -0.8% Capital Improvement
Project $0 $123,678 $55,955 $0 $0 $0 0%
Total Expense Objects: $1,128,100 $472,954 $272,970 $5,437,900 $5,480,321 $5,849,128 6.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 158 CDBG
Fund 202
Community Development Block Grant funds are administered by the County and may be used for projects that  benefit low and moderate income residents or increase accessibility. The funding is used to improve accessibility  or remove barriers to accessibility in public facilities, streets, and parks.

Summary
The City of Cotati has completed the grants projects for this fund and as such is not budgeting any revenue or expenditures for FY2024. We will continue to look for more CDBG grant opportunities for projects within the City.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
$400K
Fund Balance
The fund balance remains constant at $76 as the capital projects supported by this grant have now completed.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$20
$40
$60
$80
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 159 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 160 MTC Street
Fund 204
This fund is utilized for revenues received for transportation and streets programs and funded by the Metropolitan Transportation Commission (MTC) or the Sonoma County Transportation Authority (SCTA). The MTC is the transportation planning, financing, and coordinating agency for the nine-county San Francisco Bay Area. In November of 2004, Sonoma County passed the Traffic Relief Act (Measure M) which provides 0.25% sales tax that is used to maintain local streets, accelerate the widening of Hwy 101, restore and enhance transit services, support the development of passenger rail services and build safe bicycle and pedestrian routes. The Sonoma County Transportation Authority (SCTA) administers the sales tax receipts and distributions of the Sonoma County Measure M revenue.

Summary
The City of Cotati is projecting $76,500 of revenue in FY2024, which represents a 5.3% decrease over the prior year.

Budgeted expenditures are projected to be $75,000, as the City will be utilizing funds towards streets projects during FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 161 Revenues by Source
Measure M Streets is derived from a regional sales tax and as such the revenue projections are generated based on sales tax trends and known economic factors that are impacting regional sales or tax law.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
FY2017
FY2018
FY2019FY2020
FY2021
FY2022FY2023FY2024
$0
$0.02
$0.04
$0.06
$0.08
$0.1
Revenue Source
Taxes $62,862 $70,455 $78,778 $79,700 $80,700 $76,500 -5.2% Other
Revenues $681 $129 $45 $0 $70 $0 -100%
Total Revenue
Source: $63,543 $70,584 $78,823 $79,700 $80,770 $76,500 -5.3% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 162 Expenditures by Expense Type
Measure M Streets is utilized for the maintenance and refurbishment of our local roads and bicycle safety projects. As such, all expenditures are related to transfers out to the capital projects funds that account for the expenditures for such projects.

There are no projected expenditures for FY2023
Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
FY2018FY2019FY2020FY2021FY2022FY2024
$0
$0.05
$0.1
$0.15
$0.2
Expense Objects
Transfer Out $104,970 $65,000 $80,000 $0 $0 $75,000 N/A Total Expense
Objects: $104,970 $65,000 $80,000 $0 $0 $75,000 N/A
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 163 Fund Balance
The fund balance for FY2023 is to be increased to $79,700 as the City will be utilizing funds from the bond issuance to support new and existing streets projects.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 164 Gas Tax
Fund 203
Funds are received from City of Cotati's share of the Highway User Tax collected by the State from gasoline sales. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax" and "Gasoline Excise Tax". Proceeds are restricted to the operation and maintenance of city streets.

Summary
The City of Cotati is projecting $208.6K of revenue in FY2024, which represents a 3.6% increase over the prior year.

Budgeted expenditures are projected to increase by 46.6% from $140.2K to $205.6K in FY2024 in support of funding local streets projects.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 165 Revenues by Source
The revenues for this fund are derived from add-on Highway User Taxes collected by the State from gasoline sales. The rates for the add-on taxes are disclosed on the Californian department of tax and fee administration site here . Estimates for revenues are derived using the California Local Government Finance Almanac.  This consulting firm provides a useful summary of the local streets and road estimates and how they are derived here . Historically the estimates provided by this firm have been deemed fairly accurate and reliable for budgeting purposes.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
FY2017
FY2018
FY2019FY2020
FY2021
FY2022FY2023
FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
Revenue Source
Taxes $177,781 $171,276 $182,518 $218,900 $200,976 $208,320 3.7% Other
Revenues $9,934 $325 $56 $300 $300 $300 0%
Total Revenue
Source: $187,715 $171,601 $182,575 $219,200 $201,276 $208,620 3.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 166 Expenditures by Expense Type
These funds are to be used for road maintenance and rehabilitation and as such, the expenditures are primarily made up of transfers to the capital projects funds that hold the total cost of the capital projects being built during a fiscal year. Other expenditures include the annual contributions to the SCTA.

Budgeted and Historical Expenditures by Expense Type
Millions
Contract Services
Contributions
Transfer Out
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
$0.3
Expense Objects
Transfer Out $211,088 $163,819 $171,151 $135,000 $135,000 $200,000 48.1% Contributions $4,789 $4,882 $12,980 $5,200 $5,240 $5,600 6.9% Total Expense
Objects: $215,877 $168,701 $184,131 $140,200 $140,240 $205,600 46.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 167 Fund Balance
The fund balance for FY2023 is to be increased to about $89K as the City builds up reserves through increased anticipated revenues, which will then be used  to support future streets projects as intended for these special revenues funds.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 168 Traffic
Mitigation
Fund 205
Funds are received from development and used for street improvements, as specified in the fee program. The fees collected in this program allow the City to construct transportation impacts identified in its Capital Improvement Program (CIP).

Summary
The City of Cotati is projecting $54K of revenue in FY2024, which represents a 5,300% increase over the prior year. Budgeted expenditures are projected to increase by 69% from $434.8K to approximately $735K in FY2024, as it is strategically utilized for streets and pedestrian safety projects around the City.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$200K
$400K
$600K
$800K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 169 Revenues by Source
These funds are derived from developments based on the projected impact on our roads caused by additional traffic flows.

Budgeted and Historical Revenues by Source
Millions
Other Income
Other Revenues
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
Revenue Source
Other
Revenues $14,939 $58,092 $357,980 $54,000 $1,000 $54,000 5,300% Total Revenue
Source: $14,939 $58,092 $357,980 $54,000 $1,000 $54,000 5,300% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 170 Expenditures by Expense Type
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Contract Services
Transfer Out
FY2017FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.2
$0.4
$0.6
$0.8
Expense Objects
Debt Service $0 $0 $6,253 $0 $0 $0 0%
Transfer Out $19,052 $142,581 $180,345 $434,800 $434,800 $735,000 69% Total Expense
Objects: $19,052 $142,581 $186,598 $434,800 $434,800 $735,000 69% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 171 Fund Balance
The fund balance for FY2023 is anticipated to be reduced by $380.8K or 68.5% as the retained fund balance is being utilized to support the Old Redwood Highway Traffic Flow program as well as other traffic safety projects along Highway 116 in the City.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$200K
$300K
$400K
$500K
$600K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 172 Park In-Lieu Fund 206
Funds are received from development permits, and used for park improvements and development, as specified in the fee program.

Summary
The City of Cotati is projecting $30K of revenue in FY2024, which represents an increase over the prior year  estimated actuals. Budgeted expenditures are projected to decrease by 37.9% from $145K to $90K in FY2024 due to use of funds in FY2023 towards the Kotate Park Project.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 173 Revenues by Source
Revenues for the Park In-Lieu funds are derived from development and are projected based on existing development projects that have started construction, and as such revenues are more certain, they can be reasonably calculated.  The revenues projected for FY2023 represent the remaining expected balance from Kessing Ranch as development nears completion.

Budgeted and Historical Revenues by Source
Millions
Other Income
Other Revenues
FY2017
FY2018
FY2019FY2020
FY2021
FY2022FY2023
FY2024
$0
$0.02
$0.04
$0.06
$0.08
Revenue Source
Other
Revenues $22,030 $73,287 $27,742 $26,000 $150 $30,000 19,900% Total Revenue
Source: $22,030 $73,287 $27,742 $26,000 $150 $30,000 19,900% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 174 Expenditures by Expense Type
Expenditures for this fund are transfers out to the Capital Projects Funds where the parks projects are expended.  For FY2023 funds are expected to be utilized for the Kotate Park Improvement Project.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
FY2017FY2018FY2019FY2020FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
Expense Objects
Debt Service $0 $907 $0 $0 $0 0%
Transfer Out $181,830 $31,584 $145,000 $145,000 $90,000 -37.9% Total Expense
Objects: $181,830 $32,491 $145,000 $145,000 $90,000 -37.9% Name FY2020
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed Budget
(% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 175 Fund Balance
The fund balance for FY2023 is anticipated to be reduced by $119K or 98.3% as the retained reserves are utilized for parks projects within the City.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$200K
$300K
$400K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 176 PEG Fees
Fund 208
Public Education and Government Access (PEG) grant funding are special funds received by the City to support public, educational and government transparency by broadcasting public meetings.

Summary
The City of Cotati is projecting $20K of revenue in FY2024, which is a decrease of 2% compared to the prior year. Budgeted expenditures are projected to stay consistent with the prior year.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$10K
$20K
$30K
$40K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 177 Revenues by Source
PEG revenues are derived from Franchise Fees collected from video service providers holding state-issued franchises to operate within the City.  These estimated revenues are derived based on historical trends.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Franchise Fees
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.005
$0.01
$0.015
$0.02
$0.025
Revenue Source
Franchise Fees $19,877 $19,177 $19,882 $20,000 $20,000 $20,000 0% Other
Revenues $144 $86 $48 $0 $50 $0 -100%
Total Revenue
Source: $20,021 $19,263 $19,930 $20,000 $20,050 $20,000 -0.2% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 178 Expenditures by Expense Type
Expenditures for this fund are typically for equipment upgrades or replacement as well as contract services for local broadcasting of meetings and other public information.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Capital Outlay
Other Expense
Contract Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.01
$0.02
$0.03
$0.04
Expense Objects
Contract
Services $2,415 $1,333 $0 $16,000 $16,000 $16,000 0%
Other Expense $13,218 $12,553 $12,553 $4,000 $4,000 $4,000 0% Debt Service $0 $0 $233 $0 $0 $0 0%
Total Expense
Objects: $15,633 $13,887 $12,787 $20,000 $20,000 $20,000 0% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 179 Fund Balance
The fund balance for FY2023 is projected to remain unchanged from the FY2022 fund balance..

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$10K
$20K
$30K
$40K
$50K
$60K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 180 Public Safety
Fund 211
The Citizens Option for Public Safety (COPS) program provides funding to local agencies for the purpose of public safety. The funds are to supplement and not supplant existing funding for front line services. This fund also includes other Public Safety related grants.

Summary
The City of Cotati is projecting $164K of revenue in FY2024, which is consistent with the prior years adopted budget.

Budgeted expenditures are projected to decrease by 4.7% to $164K in FY2024. All funds are transfered to the General Fund to support police operations ni line with the special revenues.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$50K
$100K
$150K
$200K
$250K
$300K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 181 Revenues by Source
The Public Safety Fund receives revenues from both Prop 172 and well as the Citizens Option for Public Safety (COPS) Supplemental Law Enforcement Services Account (SLESA) Grants. Proposition 172 is a 1/2 cent sales that is in support of local public safety functions across all of California's cities and counties. As this is sales tax derived, we utilize our sales tax consultants to assist in estimate creation for the anticipated receipts for each fiscal year.  The COPS grant is provided from State General Funds to local counties and cities in order to support local law enforcement.  A summary of these special revenues is available here . Estimates on the annual funding available are calculated based on historical trends as well as projections received by the State.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
PSAF PROP 172

COPS GRANT-SLESA
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
Revenue Source
PSAF PROP 172 $60,057 $62,866 $75,848 $64,000 $72,000 $64,000 -11.1% Other Revenues $447 $485 $128 $0 $120 $0 -100%
COPS GRANTSLESA $115,492 $107,807 $123,539 $100,000 $100,000 $100,000 0% Total Revenue
Source: $175,995 $171,159 $199,514 $164,000 $172,120 $164,000 -4.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 182 Expenditures by Expense Type
These special revenues are intended to support the operations of the local police safety program and as such are included within the budget as transfers out to the General Fund which maintains the full costs of operations for the Police Department.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Personnel Services
Materials and Supplies
Transfer Out
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
$0.3
Expense Objects
Debt Service $0 $0 $218 $0 $0 $0 0%
Transfer Out $160,000 $190,000 $164,000 $179,000 $215,000 $170,000 -20.9% Total Expense
Objects: $160,000 $190,000 $164,218 $179,000 $215,000 $170,000 -20.9% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 183 Fund Balance
The fund balance for FY2023 is estimated to be $307. This fund balance is expected to remain low as the funding is to be used to support current police services.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$25K
$50K
$75K
$125K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 184 K-9 Program
Fund 212
This fund accounts for funds received from private donations that are utilized for the Police Department K-9 program that provides for police officers safety, narcotics enforcement, and community relations.

Summary
The City of Cotati is projecting $30.3K of revenue needs in FY2024, which represents a 88.6% increase over the prior year.

These revenues are derived primarily from general fund transfers-in of Measure S to support the K-9 program. For fiscal year 2024 the City is looking to train and deploy its first scent hound.  Budgeted expenditures are also projected to increase by 111.92% to $30.3K to purcahse and train the new K-9 in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$10K
$20K
$30K
$40K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 185 Revenues by Source
This fund is primarily funded by contributions from local businesses and citizens in order to support the K-9 program at the Police Department. Due to the passing of Measure G and now it's replacement, Measure S, there are now transfer balances from the general fund that supplement funds needed to pay for the training and supplies needed for our current K-9 Remo, and our future scent tracking dog.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Contributions
Transfers In
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.005
$0.01
$0.015
$0.02
$0.025
$0.03
$0.035
Revenue Source
Other
Revenues $50 $0 $0 $0 $0 $0 0%
Contributions $1,437 $238 $72 $0 $550 $0 0%
Transfers In $0 $4,612 $0 $13,840 $13,840 $30,340 88.6% Total Revenue
Source: $1,487 $4,851 $72 $13,840 $14,390 $30,340 88.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 186 Expenditures by Expense Type
This fund pays for the expense related to the K-9 program including ongoing training, veterinarian visits and supplies.

Budgeted and Historical Expenditures by Expense Type
Millions
Materials and Supplies
Other Expense
Contract Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.005
$0.01
$0.015
$0.02
$0.025
$0.03
$0.035
Expense Objects
Materials and
Supplies $556 $868 $767 $840 $840 $840 0%
Contract Services $613 $663 $897 $1,500 $1,500 $15,000 900% Other Expense $4,230 $4,500 $4,650 $11,500 $11,500 $14,500 26.1% Total Expense
Objects: $5,399 $6,031 $6,314 $13,840 $13,840 $30,340 119.2% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 187 Fund Balance
As contributions to the fund decreased during COVID-19, so too has the fund balance. We will continue to maintain this fund for those who wish to make supporting donations to the program in support of Remo our K-9 Officer.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$10K
$2.5K
$5K
$7.5K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 188 In-Lieu
Inclusionary
Housing
Fund 216
Funds are received from development and used for providing affordable housing.

This fund continues to be a major fund as the Assets held by the fund are significant and will be utilized for funding appropriate housing projects going forward.

Summary
The City of Cotati is projecting $105.5K of revenue in FY2024, which is a 4.5% increase from the prior year. The City is not projecting any budgeted expenditures for FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
$400K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 189 Revenues by Source
Revenues for the Inclusionary Housing Fund are primarily derived from developments in order to support more affordable housing projects/development. Additionally, the fund supported an inter-fund loan to the Sewer Fund and, as such, has increased revenues based on interest earnings on that loan. The projected revenues for FY2024 are estimated based on known development projects as well as the debt service of the interfund loan.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Debt Service
Interfund Loan Payments
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.025
$0.05
$0.075
$0.1
$0.125
$0.15
Revenue Source
Interfund Loan
Payments $0 $0 $0 $67,499 $67,499 $67,499 0%
Other Revenues $49,363 $18,510 $5,708 $0 $10,000 $15,000 50% Debt Service $33,677 $50,878 $25,517 $0 $23,125 $23,069 -0.2% Total Revenue
Source: $83,041 $69,389 $31,225 $67,499 $100,624 $105,568 4.9% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 190 Expenditures by Expense Type
Expenditures for this fund are primarily for supporting affordable housing development projects as well as housing subsidy costs.

Budgeted and Historical Expenditures by Expense Type
Millions
Transfer Out
Contract Services
Housing Project
Debt Service
Housing Subsidy
FY2017FY2019FY2020FY2021FY2022
$-0.05
$0
$0.05
$0.1
$0.15
$0.2
$0.25
$0.3
$0.35
Expense Objects
Contract
Services $0 $11,463 $6,075 $0 $0 $0 0%
Debt Service $0 $0 $22,619 $0 $0 $0 0%
Housing
Subsidy $0 $0 $250,000 $0 $0 $0 0%
Housing Project $62,204 $27,208 $8,878 $0 $0 $0 0%
Total Expense
Objects: $62,204 $38,671 $287,572 $0 $0 $0 0%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 191 Fund Balance
The fund balance for this fund makes it a significant fund for the City. No significant change is anticipated for FY2023, but it is subject to change based on strategic projects that may develop over the coming fiscal year.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$1M
$2M
$3M
$4M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 192 Excess Bond
Proceeds
Fund 219
This Fund is used to account for excess funds available from previously issued bonds.

It is used for strategic one-time investments for economic development.

Summary
The City of Cotati is not projecting any revenues as this fund was generated based on historical one-time receipts.  As funding continues to be used for strategic economic development projects the expenditures are projected to increase by 209% or $39K to $128K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$50K
$100K
$150K
$200K
$250K
$300K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 193 Expenditures by Expense Type
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Other Expense
Contract Services
FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
$0.3
Expense Objects
Contract
Services $242,139 $33,006 $104,202 $89,000 $41,419 $128,000 209% Debt Service $0 $0 $1,783 $0 $0 $0 0%
Total Expense
Objects: $242,139 $33,006 $105,985 $89,000 $41,419 $128,000 209% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 194 Fund Balance
The fund balance for FY2023 is estimated to be $405. This fund balance is expected to remain low as the funding is to be used for strategic economic development projects.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$200K
$400K
$600K
$800K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 195 Community
Facilities
District
Fund 220
To account for funds received to provide enhanced services to designated Community Facilities Districts (CFDs) in the City.

Summary
This fund represents new assessment fees on new developments to be used to supplement the additional funding requirements for maintaining services.  As new development projects are completed, additional revenues are anticipated to increase as well as the correlating expenditures for transfers out to the general funds departments supporting the additional needs of the community. Current budgeted expenditures relate to the contract services used to maintain the assessment districts information and calculations of appropriate independent costs modeling for collections.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$10K
$20K
$30K
$40K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 196 Expenditures by Expense Type
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Administrative Fee
Contract Services
Transfer Out
FY2020FY2021FY2022FY2023FY2024
$0
$0.01
$0.02
$0.03
$0.04
Expense Objects
Contract
Services $2,045 $2,679 $6,137 $10,078 $3,700 $5,000 35.1% Administrative
Fee $0 $12 $245 $0 $500 $500 0%
Debt Service $0 $0 $191 $0 $0 $0 0%
Transfer Out $0 $0 $0 $322 $50,000 $32,000 -36%
Total Expense
Objects: $2,045 $2,691 $6,574 $10,400 $54,200 $37,500 -30.8% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 197 Fund Balance
The fund balance is anticipated to remain at zero as revenues are provided to recover the initial costs for setting up these districts.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$-6000
$-5000
$-4000
$-3000
$-2000
$-1000
$0
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 198 Road
Maintenance
Rehabilitation
Administration
Fund 221
The Road Maintenance & Rehabilitation Administration (RMRA) is a fund used to account for funding received from the State related to Senate Bill 1 - The Road Repair and Accountability Act of 2017. This new fuel tax, which began on November 1, 2017, is to be used to fund local street and road maintenance and rehabilitation projects including traffic signals, and drainage improvements.

Summary
The City of Cotati is projecting $157.5K of revenue in FY2024, which is a 1.5% increase from the prior year. Budgeted expenditures are also projected to remain constant with revenues and increase to $157.5K to fund specific sections of street improvement projects within the City in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 199 Revenues by Source
Revenue for this fund is represents additional new gas excise tax as well as vehicle registration tax for electric vehicles.

Expectations on the revenues available from these funds are projected based on the same criteria as the Gas Tax Fund with additional support provided here .

Budgeted and Historical Revenues by Source
Millions
Other Revenues
FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.025
$0.05
$0.075
$0.1
$0.125
$0.15
$0.175
Revenue Source
Other
Revenues $138,624 $139,093 $149,632 $135,000 $155,100 $157,500 1.5% Total Revenue
Source: $138,624 $139,093 $149,632 $135,000 $155,100 $157,500 1.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 200 Expenditures by Expense Type
This fund is used for a specific streets project as approved by the State Department of Finance in advance of each budget year. As the City receives a minimal amount of funding it is typically included within the scope of work for a more significant streets improvement project, and therefore the expenditures are noted as a transfer out to the capital project fund where the project is being completed.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.025
$0.05
$0.075
$0.1
$0.125
$0.15
$0.175
Expense Objects
Debt Service $0 $0 $146 $0 $0 $0 0%
Transfer Out $127,701 $150,001 $135,000 $135,000 $182,000 $158,193 -13.1% Total Expense
Objects: $127,701 $150,001 $135,146 $135,000 $182,000 $158,193 -13.1% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 201 Fund Balance
The fund balance for FY2023 is anticipated to remain constant at $13,108, as the funding is to be used for ongoing current streets projects.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$10K
$20K
$30K
$40K
$50K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 202 Bed Tax
Fund 222
Bed Tax is a building permit fee which is required to be used for the acquisition, improvement, expansion and maintenance of public parks, playgrounds, open spaces, recreation facilities and community facilities.

Summary
The City of Cotati is projecting $4K of revenue in FY2024, which is consistent with the prior year adopted budget. Budgeted expenditures are projected to decrease from the adopted budget for the prior year but remain conssitant with the estimated final expenses at $30K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$10K
$20K
$30K
$40K
$50K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 203 Revenues by Source
Revenue generation for this fund is created based on permit fees paid for residential development and, as such, is projected based on estimates of developments in process.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.005
$0.01
$0.015
$0.02
Revenue Source
Taxes $2,600 $18,700 $2,000 $4,000 $400 $4,000 900%
Other
Revenues $175 $163 $84 $0 $100 $0 -100%
Total Revenue
Source: $2,775 $18,863 $2,084 $4,000 $500 $4,000 700%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 204 Expenditures by Expense Type
Expenses for this fund are primarily transfers out for capital projects for the improvements of local public parks, open space, or community facilities.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
FY2022FY2023FY2024
$0
$0.01
$0.02
$0.03
$0.04
$0.05
Expense Objects
Debt Service $336 $0 $0 $0 0%
Transfer Out $2,000 $40,000 $30,000 $30,000 0%
Total Expense Objects: $2,336 $40,000 $30,000 $30,000 0% Name FY2022 Actual FY2023 Adopted Budget FY2023 Estimate FY2024 Proposed Budget FY2023 Estimate vs. FY2024 Proposed Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 205 Fund Balance
The fund balance is projected to decrease $36K or 99.4% as it is being used to fund part of the Kotate Park Improvement Project.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$10K
$20K
$30K
$40K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 206 Parks
Measure M
Fund 225
Parks Measure M funds account for a one eighth cent sales tax that will support Sonoma County’s regional and city parks, and went into effect April 2019. It will provide dedicated funding for parks for 10 years.

Summary
The City of Cotati is projecting $85K of revenue in FY2024, which is consistent with the prior year. Budgeted expenditures are projected to decrease by 65.4% or $95K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2020 FY2021 FY2022 FY2023 FY2024
$0
$50K
$100K
$150K
$200K
$250K
$300K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 207 Revenues by Source
The revenues projections for FY2023 are derived based on projections obtained from the County of Sonoma.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.025
$0.05
$0.075
$0.125
Revenue Source
Taxes $90,260 $95,823 $109,530 $85,000 $85,000 $85,000 0% Other
Revenues $9 $756 $418 $0 $400 $0 -100%
Total Revenue
Source: $90,269 $96,579 $109,948 $85,000 $85,400 $85,000 -0.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 208 Expenditures by Expense Type
The City has accumulated funding for multiple years in order to invest those contributions towards a parks capital project.

In FY2023, the City anticipates using all funding received to date for the Kotate Park improvement project. New funds received in 2024 are to be used for the Sunflower Park Grant supported project.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
$0.25
$0.3
Expense Objects
Debt Service $0 $0 $2,081 $0 $0 $0 0%
Transfer Out $8,261 $9,423 $55,887 $260,000 $260,000 $90,000 -65.4% Total Expense
Objects: $8,261 $9,423 $57,968 $260,000 $260,000 $90,000 -65.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 209 Fund Balance
Fund balance is decreasing due to use of funds for the capital projects.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$50K
$100K
$150K
$200K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 210 Linkage
Afforable
Housing
Fund 223
A linkage fee is a fee levied by the City of Cotati on real estate developments to raise funds to help pay for the additional needs of the community that result from the additional development.

Summary
The City of Cotati is not projecting revenue for FY2024 as the receipts for these special revenues are generated based on significant new commercial development projects, of which there are none currently scheduled for the next fiscal year.

Additionally, there are no  expenditures budgeted for  FY2024.  The City will continue to identify projects that can utilize these affordable housing funds.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$25K
$50K
$75K
$100K
$125K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 211 Fund Balance
The fund balance remains consistent with prior years as there are not significant revenues or expenditures scheduled for the up coming fiscal year.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$25K
$50K
$75K
$125K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 212 Disability
Access &
Education
Revolving
Fund
Fund 250
The Disability Access & Education Revolving Fund is a legislation backed fund that is designed to allow the City of Cotati to improve accessibility for all of its residents.

Summary
The City of Cotati is projecting $2.5K of revenue in FY2024, which is consistent with the prior year. There are no budgeted expenditures in FY2024
Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$20K
$40K
$60K
$80K
$100K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 213 Revenues by Source
The revenues for this fund are primarily California Disability Access and Education Fees, which are mandated by California Assembly Bill 1379. These fees are assessed on local business licenses and are used to increase disability access and compliance with construction-related accessibility requirements. Additionally, the fee assists local jurisdictions in supporting the Certified Access Specialist (CASp) Program and provides the Division of the State Architect (DSA) with funds to maintain oversight of the CASp program. See additional detail about SB1186 fees here .

Previously, revenues for the Parks Measure M were also coded to this fund, but have now been separately reported within their own Special Revenue Fund 225. See therein for details.

Budgeted and Historical Revenues by Source
Millions
Other Revenues
Taxes
Charges for Services
FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.02
$0.04
$0.06
$0.08
$0.1
Revenue Source
Taxes $73,014 $0 $0 $0 $0 $0 0%
Other Revenues $459 $97 $40 $0 $0 $0 0%
Charges for
Services $3,007 $2,971 $2,706 $2,500 $2,500 $2,500 0%
Total Revenue
Source: $76,479 $3,068 $2,745 $2,500 $2,500 $2,500 0%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 214 Expenditures by Expense Type
The City will continue to evaluate the best use of these funds in line with the intent of the program.

Budgeted and Historical Expenditures by Expense Type
Millions
Other Expense
Debt Service
FY2020FY2022
$0
$0.0025
$0.005
$0.0075
$0.01
$0.0125
Expense Objects
Other Expense $11,400 $0 $0 $0 $0 0%
Debt Service $0 $176 $0 $0 $0 0%
Total Expense
Objects: $11,400 $176 $0 $0 $0 0%
Name FY2020
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed Budget
(% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 215 Fund Balance
The overall fund balance for FY2023 is projected to increase by 18.4% to $16.1K. The remaining fund balance for CASp programs will continue to accumulate to provide support for the disability access programs and development training.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$5K
$10K
$15K
$20K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 216 ARPA 2021
Fund 226
On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law making available $350 billion through the State and Local Fiscal Recovery Funds (SLFRF) to assist states, tribal governments and local governments.  The City became eligible for $1.7 million for Fiscal Year 2022/23 and applied all funds to replace lost public sector revenue according to the program.

Check out the Treasury website here  for more information on the Federal Coronavirus State and Local Fiscal Recovery Funds.

Summary
The City of Cotati is projecting N/A of revenue in FY2024, which represents a 0% increase over the prior year. Budgeted expenditures are projected to increase by 0% or N/A to N/A in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2022 FY2023 FY2024
$0
$500K
$1M
$1.5M
$2M
Revenue by Fund
ARPA 2021
CDBG Grant
Fed-Coronavirus Local Fiscal
Recovery Fund $1,772,630 $0 $0 $0 -100%
Total CDBG Grant: $1,772,630 $0 $0 $0 -100%
Total ARPA 2021: $1,772,630 $0 $0 $0 -100%
Name FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs. FY2023
Adop. (% Change)
Expenditures by Fund
Expenditures for this one time grant are to be applied as a replacement of lost revenue due to COVID-19 impacts.

ARPA 2021
Name FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs. FY2023
Adop. (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 217 Transfer Out
Operating Transfer Out-ARPA
2021 $1,772,630 $0 $0 $0 -100%
Total Transfer Out: $1,772,630 $0 $0 $0 -100%
Total ARPA 2021: $1,772,630 $0 $0 $0 -100%
Name FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs. FY2023
Adop. (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 218 South
Sonoma
Business
Park
Assessment
District
Fund 215/224
This Agency fund is used to facilitate a special assessment debt service charged to land owners for the financing provided to develop the business park. In 2019, the City assisted in the refunding of the debt in order to leverage better interest rates for the community.

Summary
The City of Cotati is projecting $384K of revenue in FY2024, which is consistent with the prior year. Budgeted expenditures are projected to remain constant at $373K in FY2024. Revenues and expenditures are pass-through with the exception of the administrative cost reimbursements for the City.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$200K
$400K
$600K
$800K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 219 Revenues by Source
These revenues are generated based on property tax assessments needed to pay off the debt service. Calculations of the assessments are managed by an outside third party as coordinated with the administrative services department. No significant changes are anticipated for FY2023.

Budgeted and Historical Revenues by Source
Millions
Transfers In
Other Revenues
FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
Revenue Source
Other
Revenues $378,547 $369,913 $368,537 $373,006 $373,056 $384,000 2.9% Transfers In $269,820 $0 $0 $0 $0 $0 0%
Total Revenue
Source: $648,368 $369,913 $368,537 $373,006 $373,056 $384,000 2.9% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 220 Expenditures by Expense Type
Budgeted and Historical Expenditures by Expense Type
Millions
Other Expense
Agency Fees
Administrative Fee
Contract Services
Debt Service
FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
Expense Objects
Contract
Services $2,000 $2,650 $2,350 $8,300 $8,300 $8,300 0%
Other Expense $0 $0 $926 $0 $0 $0 0%
Administrative
Fee $0 $3,750 $0 $3,750 $5,318 $5,651 6.3%
Debt Service $69,299 $114,823 $111,089 $356,456 $355,988 $355,878 0% Agency Fees $1,839 $5,007 $4,875 $4,500 $3,450 $3,700 7.2% Total Expense
Objects: $73,138 $126,230 $119,240 $373,006 $373,056 $373,529 0.1% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 221 Fund Balance
Fund balance is anticipated to be zero, as both revenues and expenditures are pass-through.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$200K
$300K
$400K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 222 Successor
Agency to The
Cotati
Community
Redevelopment
Agency
Fund 301
This fiduciary fund accounts for all of the assets, liabilities and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012.

Summary
The City of Cotati is projecting $388.4K of revenue in FY2024, which represents a 19.9% increase over the prior year.

Budgeted expenditures are projected to decrease by 10.6% to $389.6K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$250K
$500K
$750K
$1M
$1.25M
$1.5M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 223 Revenues by Source
The revenues are derived based on Annual Recognized Obligation Payment schedules (ROPS) as submitted to the California State Department of Finance after approval by the County Oversight Board. These schedules include the outstanding bond payments, other debt service to the Cotati-Rohnert Park Unified School District and the Long Range Property Management Plan for the residual parcels managed by the former redevelopment agency.

Budgeted and Historical Revenues by Source
Millions
Debt Service
Transfers In
Recognized Obligation Payment Schedule (ROPS)
Other Revenues
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.25
$0.5
$0.75
$1
$1.25
$1.5
Revenue Source
Other Revenues $383,292 $362,932 $31,774 $388,424 $330,292 $388,424 17.6% Transfers In $0 $0 $0 $77,314 $77,314 $0 -100%
Recognized Obligation Payment
Schedule (ROPS) $800,288 $206,405 $455,911 $0 $0 $0 0%
Total Revenue Source: $1,183,580 $569,337 $487,685 $465,738 $407,606 $388,424 -4.7% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023
Adopted Budget
FY2023
Estimate
FY2024
Proposed Budget
FY2023 Estimate
vs. FY2024
Proposed Budget
(% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 224 Expenditures by Expense Type
The tax allocation bonds held within the fund were refinanced after Department of Finance approval in 2020.

Budgeted Expenditures by Expense Type
Personnel Services (37.9%)
Debt Service (25%)
Obligations (15.5%)
Contract Services (15.2%)
Agency Fees (2.3%)
Utilities (1.3%)
Bond Discount (1.3%)
Payout (0.7%)
Disclosure Reports (0.6%)
Budgeted and Historical Expenditures by Expense Type
Millions
Repairs and Maintenance
Materials and Supplies
Other Expense
Disclosure Reports
Payout
Bond Discount
Utilities
Agency Fees
Contract Services
Obligations
Debt Service
Personnel Services
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.2
$0.4
$0.6
$0.8
Expense Objects
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 225 Personnel Services $215,620 $213,418 $37,569 $131,280 $135,890 $151,450 11.5% Payout $3,813 $6,514 $1,223 $2,730 $8,400 $2,800 -66.7% Materials and
Supplies $0 $0 $149 $32 $47 $102 117%
Contract Services $22,569 $22,334 $27,396 $54,592 $21,473 $60,690 182.6% Repairs and
Maintenance $5,002 $5,000 $0 $0 $0 $0 0%
Utilities $1,934 $2,361 $2,242 $2,400 $3,650 $5,154 41.2% Other Expense $5,339 $409 $4,672 $873 $1,368 $1,010 -26.2% Debt Service $407,301 $100,655 $122,878 $100,036 $195,419 $100,036 -48.8% Bond Discount $5,124 $180,001 $0 $5,124 $5,124 $5,124 0% Agency Fees $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 0% Disclosure Reports $2,500 $2,500 $2,850 $2,500 $2,500 $2,500 0% Obligations $56,707 $59,222 $61,788 $61,788 $64,405 $61,788 -4.1% Total Expense
Objects: $734,909 $601,415 $269,766 $370,355 $447,276 $399,654 -10.6% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Fund Balance
As this is a management fund for the recognized obligation payments, there are no expected fund balances retained.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 226 Internal
Service
Funds
What is an Internal Service Fund?
According to the Government Finance Officers Association (GFOA), 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 two such funds for these purposes. The Vehicle Replacement Fund (501) and the Compensated Absences Fund (502).

Summary
The City of Cotati is projecting $456.48K of revenue in FY2024, which represents a 12.3% increase over the prior year.

Budgeted expenditures are projected to decrease by 2.9% or $14K to $500.7K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$200K
$400K
$600K
$800K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 227 Vehicle
Maintenance
and
Replacement
Fund 501
This is a City established fund to provide an ongoing funding source for scheduled replacement and ongoing maintenance of the City vehicles and equipment. It is funded from billings to other government wide funds based on their usage of vehicles and a set vehicle replacement schedule.

Summary
The City of Cotati is projecting $337K of revenue through funding provided by the General Fund and Enterprise Funds in FY2024. This revenue represents a 16% decrease over the prior year. Budgeted expenditures are projected to also decrease by 14.9% to $337K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
$400K
$500K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 228 Revenues by Source
Revenues are derived based on the calculation of replacement needs as allocated to the fund usage of said equipment over a fiscal year period. These revenues are subject to fluctuation when a council approved need arises that includes charging additional amounts to the related funds for additional procurement or rehabilitation needs for the vehicles or equipment in a given year.

Budgeted and Historical Revenues by Source
Millions
Transfers In
Other Revenues
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
$0.5
Revenue Source
Other
Revenues $208,714 $247,862 $58,122 $401,000 $401,000 $337,000 -16% Total Revenue
Source: $208,714 $247,862 $58,122 $401,000 $401,000 $337,000 -16% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 229 Expenditures by Expense Type
Expenditures for this fund are directly related to the purchase or repairs of equipment and vehicles within the City managed fleet. Currently, the City is evaluating the possible replacement of internal combustion vehicles with all electric.  As such future expenditures for replacements may shift to increase purchase price while decreasing future maintenance and fuel costs.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Other Expense
Depreciation
Repairs and Maintenance
Capital Outlay
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$-0.2
$-0.1
$0
$0.1
$0.2
$0.3
$0.4
$0.5
Expense Objects
Repairs and
Maintenance $9,092 $2,775 $2,356 $35,000 $35,000 $35,000 0% Other Expense -$160,018 $0 $4,422 $0 $0 $0 0%
Debt Service $0 $0 $2,144 $0 $0 $0 0%
Capital Outlay $160,018 $0 $0 $361,000 $361,000 $302,000 -16.3% Depreciation $105,849 $110,160 $124,983 $0 $0 $0 0%
Total Expense
Objects: $114,941 $112,936 $133,906 $396,000 $396,000 $337,000 -14.9% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 230 Fund Balance
The City is taking proactive efforts to develop the fund balance to address future equipment and vehicle replacement needs in order to allow for better expense stability across all operating funds.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$100K
$200K
$300K
$400K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 231 Compensated
Absences
Fund 502
This fund is designed to maintain the government wide compensated absences liability by billing out proportionate usage and balance to the appropriate funds and departments.

Summary
The City of Cotati is projecting $119.48K of revenue in FY2024, which is consistent with the prior year. Budgeted expenditures are also projected to increase by 37% to $163.48K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
$400K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 232 Expenditures by Expense Type
For FY2023, we are continuing to use this fund to reduce outstanding deferred compensation unfunded liability, as well as removing this episodic expense from the annual operating budgets. In the near term, as long-standing employees approach retirement, we anticipate an increase in payouts for their unused compensated absence hours.

However, newer employees, and those who are hired to replace the retirees will have much lower accrual limits than longer-standing employees, and this will have the effect of further reducing this liability in the longer term.

Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Payout
FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
Expense Objects
Payout $103,447 $168,423 $170,114 $119,480 $119,480 $163,710 37% Debt Service $0 $0 $4,982 $0 $0 $0 0%
Total Expense
Objects: $103,447 $168,423 $175,096 $119,480 $119,480 $163,710 37% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 233 Fund Balance
The City is taking proactive efforts to develop the fund balance to address future personal payouts in order to allow for better expense stability across all operating funds.

Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$0
$25K
$50K
$75K
$100K
$125K
$150K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 234 Capital
Project/Grants
Funds
This page is provided as a summary of the Capital and Grants funds for the City. The primary purpose of these funds are to move city capital or other operating grants projects forward. This summary section is for presentational purposes only and the funds are strictly segregated within the financial system.

Summary
The City of Cotati is projecting $7.5M of revenue in FY2024, which represents a 40.0% decrease over the prior year.

Budgeted expenditures are projected to decrease by 59.3% to $7.5M in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$5M
$10M
$15M
$20M
Revenue by Fund
2024 Revenue by Fund
Capital Projects (100%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 235 Budgeted and Historical Revenue by Fund
Millions
Capital Projects
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
Capital Projects
Grants $1,128,100 $941,074 $272,970 $5,437,900 $5,552,501 $5,849,128 5.3% Capital Outlay $169,543 $174,590 $160,908 $179,100 $179,500 $184,500 2.8% Capital Projects $3,024,595 $2,091,706 $5,342,345 $6,845,300 $6,745,219 $1,454,000 -78.4% 2022A Project
Fund $0 $0 $2,002,210 $6,030,000 $0 $0 0%
Total Capital
Projects: $4,322,238 $3,207,369 $7,778,434 $18,492,300 $12,477,220 $7,487,628 -40% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 236 Revenues by Source
Projected 2024 Revenues by Source
Transfers In (67.7%)
Grants (23.1%)
COPS GRANT-SLESA (6.7%)
Other Revenues (2.5%)
Budgeted and Historical Revenues by Source
Millions
CDBG Grant
Other Revenues

COPS GRANT-SLESA
Grants
Transfers In
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
Revenue Source
Other Revenues $208,233 $241,350 $187,126 $6,209,100 $180,250 $184,500 2.4% CDBG Grant $675,000 $500,891 $0 $1,277,900 $1,077,900 $0 -100% COPS GRANTSLESA $29,833 $171,368 $147,157 $50,000 $0 $500,000 N/A Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 237 Transfers In $3,409,172 $2,293,761 $7,444,151 $10,955,300 $11,054,469 $5,083,214 -54% Grants $0 $0 $0 $0 $164,601 $1,719,914 944.9%
Total Revenue
Source: $4,322,238 $3,207,369 $7,778,434 $18,492,300 $12,477,220 $7,487,628 -40% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Expenditures by Fund
2024 Expenditures by Fund
Capital Projects (100%)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 238 Budgeted and Historical Expenditures by Fund
Millions
Capital Projects
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
Capital Projects
Grants $1,128,100 $472,954 $272,970 $5,437,900 $5,480,321 $5,849,128 6.7% Capital Outlay $140,784 $200,000 $350,738 $150,000 $150,000 $200,000 33.3% Capital Projects $3,024,394 $2,089,773 $5,323,289 $6,944,800 $6,759,719 $1,454,000 -78.5% 2022A Project
Fund $0 $0 $311,480 $6,030,000 $6,030,000 $0 -100%
Total Capital
Projects: $4,293,278 $2,762,727 $6,258,476 $18,562,700 $18,420,040 $7,503,128 -59.3% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 239 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
Capital Project (69.8%)
Capital Improvement Project (18.7%)
Economic Development (8%)
Transfer Out (2.7%)
Capital Outlay (0.7%)
Other Expense (0.2%)
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Other Expense
Capital Outlay
Transfer Out
Economic Development
Capital Improvement Project
Capital Project
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$5
$10
$15
$20
Expense Objects
Other Expense $0 $0 $0 $0 $112,421 $11,464 0%
Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 240 Debt Service $0 $0 $18,511 $0 $0 $0 0%
Capital Outlay $6,194 $215,689 $81,574 $596,000 $501,169 $50,000 585.1% Transfer Out $140,784 $200,000 $643,707 $6,180,000 $6,180,000 $200,000 197.7% Economic
Development $29,833 $312,749 $142,569 $160,000 $90,000 $600,000 128% Capital Project $1,098,267 $36,527 $74,446 $5,277,900 $5,277,900 $5,237,664 654% Capital Improvement
Project $3,018,200 $1,997,762 $5,297,669 $6,348,800 $6,258,550 $1,404,000 44.3% Total Expense Objects: $4,293,278 $2,762,727 $6,258,476 $18,562,700 $18,420,040 $7,503,128 153.2% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2022 Est. vs.

FY2023 Adop. (%
Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 241 Capital
Outlay
Fund 604
This fund is designed to account for the road impact fees and their use for streets capital improvement projects.

Summary
The City of Cotati is projecting $184.5K of revenue in FY2024, which is a 2.8% increase  from the prior year. Budgeted expenditures are projected to increase by 33.3%  to $200K in FY2024.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$100K
$200K
$300K
$400K
Revenue by Department
Budgeted and Historical Revenue by Department
Millions
General Government
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.05
$0.1
$0.15
$0.2
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 242 Revenue
General
Government $169,543 $174,590 $160,908 $179,100 $179,500 $184,500 2.8% Total Revenue: $169,543 $174,590 $160,908 $179,100 $179,500 $184,500 2.8% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Expenditures by Expense Type
Budgeted and Historical Expenditures by Expense Type
Millions
Debt Service
Transfer Out
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$0.1
$0.2
$0.3
$0.4
Expense Objects
Debt Service $0 $0 $738 $0 $0 $0 0%
Transfer Out $140,784 $200,000 $350,000 $150,000 $150,000 $200,000 33.3% Total Expense
Objects: $140,784 $200,000 $350,738 $150,000 $150,000 $200,000 33.3% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 243 Fund Balance
Projections
Fund Balance
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
$-100000
$0
$100K
$200K
$300K
$400K
$500K
$600K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 244 Capital
Projects
Fund
Fund 605
This fund consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, or facilities, including buildings, parks, information technology systems, and non water/sewer infrastructure and which are to be used to benefit the public.

Summary
The City of Cotati is projecting $1.41M of revenue in FY2024, which represents a 78.4% decrease over the prior year.

Budgeted expenditures are projected to decrease by 78.5% to $1.454M in FY2024.  For more detail please see the Capital Improvements section, and the Appendix.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 $0
$2M
$4M
$6M
$8M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 245 Revenues by Source
Projected 2024 Revenues by Source
Transfers In (100%)
Budgeted and Historical Revenues by Source
Millions
Other Revenues
Transfers In
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$2
$4
$6
$8
Revenue Source
Other
Revenues $201 $177 $686 $0 $750 $0 -100%
Transfers In $3,024,394 $2,091,529 $5,341,659 $6,845,300 $6,744,469 $1,454,000 -78.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 246 Total Revenue
Source: $3,024,595 $2,091,706 $5,342,345 $6,845,300 $6,745,219 $1,454,000 -78.4% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
Expenditures by Fund
2024 Expenditures by Fund
Capital Projects (100%)
Budgeted and Historical Expenditures by Fund
Millions
Capital Projects
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024
$0
$2
$4
$6
$8
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 247 Capital Projects $3,024,394 $2,089,773 $5,323,289 $6,944,800 $6,759,719 $1,454,000 -78.5% Total Capital
Projects: $3,024,394 $2,089,773 $5,323,289 $6,944,800 $6,759,719 $1,454,000 -78.5% Name FY2020
Actual
FY2021
Actual
FY2022
Actual
FY2023 Adopted
Budget
FY2023
Estimate
FY2024 Proposed
Budget
FY2023 Estimate vs.

FY2024 Proposed
Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 248 2022A
Streets
Projects
Fund 610
This fund is designed to account for the construction of streets projects using the funding obtained from the 2022 Street debt service.

Summary
The City of Cotati receipted approximately $7M in tax-exempt debt for street improvements, which is included within the estimated actual budget for FY2022 and continued funding for projects through FY2023. These funds are to be fully expended within FY2023.  See the Capital Improvements section of the budget for more details.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2022 FY2023 FY2024
$0
$2M
$4M
$6M
$8M
Revenue by Department
Revenue
General Government $2,002,210 $6,030,000 $0 $0 0%
Total Revenue: $2,002,210 $6,030,000 $0 $0 0%
Name FY2022 Actual FY2023 Adopted Budget FY2023 Estimate FY2024 Proposed Budget FY2023 Estimate vs. FY2024 Proposed Budget (% Change)
Expenditures by Expense Type
Expense Objects
Debt Service $17,773 $0 $0 $0 0%
Transfer Out $293,707 $6,030,000 $6,030,000 $0 -100%
Total Expense Objects: $311,480 $6,030,000 $6,030,000 $0 -100% Name FY2022 Actual FY2023 Adopted Budget FY2023 Estimate FY2024 Proposed Budget FY2023 Estimate vs. FY2024 Proposed Budget (% Change)
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 249

CAPITAL IMPROVEMENTS
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 250 Capital Improvements: One-year Plan
Total Capital Requested
$7,762,864
19 Capital Improvement Projects
Total Funding Requested by Department
TOTAL $7,762,864.00
Public Works - Govt. Buildings (3%) $250,000.00
Public Works - Parks (21%) $1,656,211.00
Public Works - Streets (58%) $4,529,253.00
Sewer (14%) $1,109,900.00
Water (3%) $217,500.00
Total Funding Requested by Source
TOTAL $7,687,864.00
Capital Outlay Funds (3%) $200,000.00
Enterprise - Sewer Capital (0%) $35,000.00
Enterprise - Sewer Capital Funds (11%) $853,700.00
Enterprise - Water Capital Funds (3%) $217,500.00
General Fund (55%) $4,240,021.00
Grants - Federal (15%) $1,177,200.00
Grants - State (7%) $531,250.00
Special Revenue - Streets Gas Tax (3%) $200,000.00
Special Revenue - Streets Measure M (1%) $75,000.00
Special Revenue - Streets RMRA (2%) $158,193.00
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 251 Capital Costs Breakdown
TOTAL $7,780,264.00
Capital Costs (100%) $7,762,864.00
Operational Costs (0%) $17,400.00
Cost Savings & Revenue Breakdown
TOTAL $1,000.00
Cost Savings (100%) $1,000.00
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 252 Public Works - Streets Requests
Itemized Requests for 2024
2024 Street Improvements Project $601,000
The Project includes rehabilitation and preservation of streets consisting of Ahlstrom Circle, Chritensen Court, Clothier Lane, Dorfman Drive, East School Street, Forno Way, Gilbert Court, Gilbert Way, Gilman Ranch Road, Gravenstein Way, Honor...

Bicycle Pedestrian Safety Improvements $50,000
Installation of bicycle, pedestrian, and vehicle safety improvements, to be completed by City Public Works staff or through minor construction contracts. Safety improvements will be informed by ongoing community input and recommendations of the...

Gateway Signage $83,000
This effort will focus on enhancing the City’s monuments at entrance points as well as converting the La Plaza marquee to digital.  The marquee and post-mounted entry signs at minor streets entering Cotati will be designed and installed...

Highway 116/West Cotati Avenue Intersection Safety Improvements $544,000 The Project will realign and signalize the intrersection 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...

Landscaping Improvements Projects $35,000
Annual planned landscaping improvements along roadways throughout the City. Projects are planned to coordinate with street paving improvement projects, but can vary depending on needs.

Redwood Drive and Cypress Avenue Pavement Rehabilitation $2,996,253 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...

Sidewalk Gap Closures $220,000
The Project constructs sidewalks to close gaps throughout the City and upgrades ADA ramps. The sections of roadways for the new sidewalks include portions of West Cotati Avenue and along West School Street between Clifford and Maple, to complete...

Total: $4,529,253
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 253 Public Works - Parks Requests
Itemized Requests for 2024
Cator Field/Park Improvements $100,000
To initiate design and implement improvements at Cator Park, including installation of a new dog park and volleyball courts.

Kotate Park Improvements $166,211
Implements Park Capital Plan improvements for Kotate Park,including replacement of park play equipment, relandscaping planter areas, new bollard lights, and restrooms.

Putnam Park Improvements $185,000
This project includes the design and construction of a Dog park, perimeter pathway and pedestrian bridge across the Laguna de Santa Rosa, baseball field fencing, and various related park amenities.

Sunflower Park Improvements Project $1,055,000
The project includes rebuilding the tennis/pickleball court, walkways, correcting site drainage, and design and installation of a play structure.

Veronda-Falletti Ranch Barns $150,000
Rebuild barns to expand the potential community programs and events centered on agricultural themes.

Total: $1,656,211
Public Works - Govt. Buildings Requests
Itemized Requests for 2024
Civic Center Parking Lot Improvements $250,000
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.

Total: $250,000
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 254 Water Requests
Itemized Requests for 2024
Construction Water ATM Project $75,000
This project consists of building a remote water dispensing station near Alder and Helman Lane to allow contractors building projects within Cotati to self-serve for construction water and remotely pay at the time of dispensing.  The current...

SCADA Water $100,000
Upgrades the SCADA server at the Corporation Yard and installs redundant server at City Hall.

Well 1A/Well 3 Treatment Renewal and Replacement $42,500 This Project is to address the highest priority renewal and replacement needs for treatment systems at the Well 1a and 3 sites.

Total: $217,500
Sewer Requests
Itemized Requests for 2024
Cypress Avenue Sewer Replacement $753,700
Replaces the aging pipeline in Cypress Avenue from W Sierra Ave to Nelson Lane. Timing is to have this work completed before Cypress gets repaved in Spring 2024.

SCADA Sewer $100,000
Replaces the SCADA server at the Corp Yard and provides for a redundant server at City Hall.

Wastewater System Emergency Generator Project $256,200
The City is seeking funding to purchase and install two fixed place generators to provide back-up power to two wastewater lift stations that serve critical functions in the City's ability to treat and convey wastewater. Both locations do not...

Total: $1,109,900
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 255 Capital Improvements: Multi-year Plan
Total Capital Requested
$57,702,068
41 Capital Improvement Projects
Total Funding Requested by Department
Public Works - Govt. Buildings Public Works - Parks
Public Works - Streets Sewer
Water
2024
2025
2026
2027
2028
$7,762,864.00
$19,445,704.00
$4,961,500.00
$5,587,000.00
$19,945,000.00
$0 $5M $10M $15M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 256 Total Funding Requested by Source
Capital Outlay Funds Enterprise - Sewer Capital
Enterprise - Sewer Capital Funds Enterprise - Water Capital Funds External Loan General Fund
Grants - Federal Grants - State
Special Revenue - Parks Measure M Special Revenue - Regional Traffic Mitigation Special Revenue - Sale Proceeds Special Revenue - Streets Gas Tax Special Revenue - Streets Measure M Special Revenue - Streets RMRA Special Revenue - Streets Traffic Impact Fee
2024
2025
2026
2027
2028
$7,687,864.00
$19,435,704.00
$5,061,500.00
$5,487,000.00
$19,945,000.00
$0 $5M $10M $15M
Capital Costs Breakdown
Capital Costs Operational Costs
2024
2025
2026
2027
2028
$7,780,264.00
$19,515,686.00
$5,087,709.00
$5,747,439.00
$20,164,844.00
$0 $5M $10M $15M $20M
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 257 Cost Savings & Revenues
Cost Savings Revenue
2024
2025
2026
2027
2028
$2,500.00
$136,812.00
$197,556.00
$284,026.00
$311,479.00
$0 $80K $160K $240K
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 258 Public Works - Streets Requests
Itemized Requests for 2024-2029
2024 Street Improvements Project $601,000
The Project includes rehabilitation and preservation of streets consisting of Ahlstrom Circle, Chritensen Court, Clothier Lane, Dorfman Drive, East School Street, Forno Way, Gilbert Court, Gilbert Way, Gilman Ranch Road, Gravenstein Way, Honor...
2025 Street Improvements Project $2,885,800
The Project includes rehabilitation of streets consisting of Amber Lane, Lasker Lane, Oretsky Way, Water Road, West Cotati Ave, Wilford Circle, Wilford Lane, Ahlstrom Drive, Marsh Way, Wilfornd Lane, and Locust Avenue. The Project consists of... 2027 Streets Improvements Project $2,400,000
The Project includes rehabilitation and preservation treatments of streets in the industrial area consisting of Aaron Street, Houser Street, Mercantile Drive, Portal Street, and Primero Court and are shown in the attached figure. The Project... 2028 Streets Improvements Project $500,000
The Project includes rehabilitation and preservation treatments of Saint Josephs Way and Santero Way and totals about a quarter mile.

Bicycle Pedestrian Safety Improvements $250,000
Installation of bicycle, pedestrian, and vehicle safety improvements, to be completed by City Public Works staff or through minor construction contracts. Safety improvements will be informed by ongoing community input and recommendations of the...

Class 1 Pathway Maintenance Project $555,000
Maintain and repair the Class 1 pathways along the Laguna de Santa Rosa and along West Cotati Avenue, between Maple and Richardson.

East Sierra EV Charging Station $1,050,000
Provides Level 3 (Fast Charging) electrical vehicle charging stations in the City's public parking lot on East Sierra Avenue (behind the fire station).

Gateway Signage $838,000
This effort will focus on enhancing the City’s monuments at entrance points as well as converting the La Plaza marquee to digital.  The marquee and post-mounted entry signs at minor streets entering Cotati will be designed and installed...

Highway 116/West Cotati Avenue Intersection Safety Improvements $6,099,000 The Project will realign and signalize the intrersection 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...

Landscaping Improvements Projects $175,000
Annual planned landscaping improvements along roadways throughout the City. Projects are planned to coordinate with street paving improvement projects, but can vary depending on needs.

Park and Ride Replacement Project $3,914,904
The City entered into a "Functional Replacement and Exchange Agreement Cotati Park and Ride" with Caltrans for the City to purchase the Park and Ride lot at the corner of Highway 116 and Old Redwood Highway providing the City construct...

Redwood Drive and Cypress Avenue Pavement Rehabilitation $4,496,253 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...

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 259 Sidewalk Gap Closures $955,000
The Project constructs sidewalks to close gaps throughout the City and upgrades ADA ramps. The sections of roadways for the new sidewalks include portions of West Cotati Avenue and along West School Street between Clifford and Maple, to complete...

Traffic Signal At William/George and Old Redwood Highway $980,000 This is a traffic impact fee study capital project and consists of installing a new traffic signal at the intersection of William Street/George Street and Old Redwood Highway. The project design was completed to a 65% level as part of the Traffic...

Valparaiso Avenue and Helman Lane Pavement Rehabilitation $2,000,000 Project rehabilitates Valparaiso Avenue from Cotati Creek to Fehler Lane and Helman Lane between Redwood Drive and the City Limits. Valparaiso Avenue has existing paving index ranging from 16 to 28 and is proposed for edge grind, dig outs, fabric...

Total: $27,699,957
Public Works - Parks Requests
Itemized Requests for 2024-2029
Cator Basketball Court Resurfacing $38,000
Project is to maintain Cator basketball courts by resurfacing them.

Cator Field/Park Improvements $100,000
To initiate design and implement improvements at Cator Park, including installation of a new dog park and volleyball courts.

Civic Center Park Capital Improvements - Phase 1 $1,133,000 The 2019 Parks Capital Plan presents a concept proposal for improvements and has them depicted in 3 phases: Phase 1 is the ball field, grass area behind the police station, and the basketball courts, Phase 2 is the paved area between the Community...

Kotate Park Improvements $166,211
Implements Park Capital Plan improvements for Kotate Park,including replacement of park play equipment, relandscaping planter areas, new bollard lights, and restrooms.

La Plaza Reunification $15,655,000
The Project is to meet a core objective of the City’s Downtown Specific Plan, to transform La Plaza Park “into a substantial and highly noticeable community focal point”. Key to this transformation is to reunify the park by...

Putnam Park Improvements $1,138,000
This project includes the design and construction of a Dog park, perimeter pathway and pedestrian bridge across the Laguna de Santa Rosa, baseball field fencing, and various related park amenities.

Sunflower Park Improvements Project $1,055,000
The project includes rebuilding the tennis/pickleball court, walkways, correcting site drainage, and design and installation of a play structure.

Veronda-Falletti Ranch Barns $1,502,000
Rebuild barns to expand the potential community programs and events centered on agricultural themes.

Total: $20,787,211
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 260 Public Works - Govt. Buildings Requests
Itemized Requests for 2024-2029
Civic Center Parking Lot Improvements $250,000
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.

Total: $250,000
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 261 Water Requests
Itemized Requests for 2024-2029
BP-1: Cypress Tank Booster Pumps $645,000
This project will add booster pumps for the new Cypress Pressure Zone.

Construction Water ATM Project $75,000
This project consists of building a remote water dispensing station near Alder and Helman Lane to allow contractors building projects within Cotati to self-serve for construction water and remotely pay at the time of dispensing.  The current...

Distribution System Monitoring $130,000
This project adds telemetry points on all distribution system production inputs (Sonoma Water Turnouts, City wells), as well as potentially some nodes within the distribution system zones.  The instrumentation is intended to measure realtime...

P-1: Portal Street, Mercantile, Aaron Main Replacement $1,465,500 This project replaces approximately 2,100 feet of existing undersized mains in the industrial area to improve fire flows.

P-3, 4: Cypress Tank New Water Main $1,080,000
This project involves the construction of approximately 2,100 feet of new main at locations to improve pressure by creating a new pressure zone.

P-5: Sycamore Lane Water Main Replacement $485,000
This project replaces approximately 600 feet of existing undersized main at this location to improve fire flows.

SCADA Water $100,000
Upgrades the SCADA server at the Corporation Yard and installs redundant server at City Hall.

T-1: New Cypress Storage Tank $2,320,000
Replaces the Cypress Water Storage Tank. The old Cypress tank was taken out of service when the W Sierra tank was brought on-line due to different water operating levels. The new tank will increase the 100k gallon capacity to approximately 700k...

Well 1A/Well 3 Treatment Renewal and Replacement $42,500 This Project is to address the highest priority renewal and replacement needs for treatment systems at the Well 1a and 3 sites.

Well No. 4 $50,000
Concept design and preliminary exploration for a new 4th groundwater well. Does not include well installation.

West Sierra Tank Recoating $762,000
This project will recoat the interior and exterior of the existing West Sierra Tank.

Total: $7,155,000
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 262 Sewer Requests
Itemized Requests for 2024-2029
Cypress Avenue Sewer Replacement $753,700
Replaces the aging pipeline in Cypress Avenue from W Sierra Ave to Nelson Lane. Timing is to have this work completed before Cypress gets repaved in Spring 2024.

Manhole Lateral Repair/Improvement $200,000
Continued repair of manholes and lateral connections in sewer lines to limit excess storm water flowing into system.

SCADA Sewer $100,000
Replaces the SCADA server at the Corp Yard and provides for a redundant server at City Hall.

Sewer Pipeline Repairs $500,000
Project is to address sewer defects identified in the sewer videos conducted for the Inflow and Infiltration Reduction Project. The order of the repairs is to be determined at a later date to coordinate with street paving projects.

Wastewater System Emergency Generator Project $256,200
The City is seeking funding to purchase and install two fixed place generators to provide back-up power to two wastewater lift stations that serve critical functions in the City's ability to treat and convey wastewater. Both locations do not...

Total: $1,809,900
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 263 DEBT
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 264 Government-wide Debt Overview
The City has the following types of debt:

Direct Debt
Streets Improvements Tax Exempt Lease Obligation Bonds 2022A represents a tax-exempt bond issuance of an amount up to $7,700,000 used to fund critical city street improvement projects at a low interest rate of 2.45% per annum and matures in 2041.

Pension Taxable Lease Obligation Bonds 2022B represents a $4,000,000 unfunded pension obligation refunding debt whereby the City paid down the CalPERS obligations with a locked 3.33% interest per annum. and matures in 2036.

Pass-through Debt
Assessment District Debt with No City Commitment totaling $5.7M and maturing in 2034 Successor Agency Debt Service for Recognized Obligation Payment Schedules Cotati-RP Unified School District payments total debt of $864K maturing in 2033.

Tax allocation refunding bond, Series 2020 with total Debt Service of $7.7M maturing in 2036 Inter-Government Loans
In-Lieu Housing Loan to Sewer total debt service $826K maturing in 2039 General Fund Loans to Water and Sewer for their portion of the Unfunded Pension Liability Additional Discretionary Payment. Total payment for each fund is approximately Pension Obligations
Unfunded Liability Pension Obligations with a net pension liability of $10.5M as of June 30, 2021 $1,902,584
$577,113 (43.54% vs. 2023 year)
The City records and disburses monies used to repay annual principal and interest, fees, anticipated new debt, and administrative fees on City issued debt through debt service types of funds.

The General Long-Term Debt accounts for the payment of debt service on the City's General Obligation. The utility funds account for all debt associated with the Water and Sewer utilities activity. These debts account for the accumulation of resources and payment of general long-term debt principal.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 265 Debt by Fund
Private Purpose Trust (43.6%)
Debt Service (42.6%)
Agency Fund (13.8%)
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 % Change All Funds Actual Proposed
Budget
Forecasted Forecasted Forecasted Forecasted Forecasted FY2023 vs FY2024
General $3,993 $0 $0 $0 $0 $0 $0 0%
Agency Fund $248,349 $255,675 $263,218 $278,977 $278,977 $287,207 $295,679 3% Private Purpose
Trust
$161,825 $259,822 $829,392 $827,921 $848,571 $853,413 $856,933 219.2% Debt Service $0 $809,974 $809,974 $809,974 $809,979 $699,970 $809,965 0% Total All Funds: $414,167 $1,325,471 $1,902,584 $1,916,872 $1,937,527 $1,840,590 $1,962,577 43.5% Debt Service
F…
FY2025FY2027FY2029FY2031FY2033FY2035FY2037FY2039
FY2041
FY2023 FY2024 FY2025 FY2026 FY2027 FY2042
Debt Service — — — — — —
Lease Debt Service Fund $809,974 $809,974 $809,974 $809,979 $699,970 $484,048 Total Debt Service: $809,974 $809,974 $809,974 $809,979 $699,970 $484,048 City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 266 Private Purpose Trust
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 % Change Private Purpose Trust — — — — — — — FY2023 vs FY2024
Successor Agency $161,825 $259,822 $829,392 $827,921 $848,571 $853,413 $856,933 219.2% Total Private Purpose Trust: $161,825 $259,822 $829,392 $827,921 $848,571 $853,413 $856,933 219.2% Agency Fund
F…
FY2022FY2024FY2026FY2028FY2030FY2032FY2034
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 % Change Agency Fund — — — — — — — FY2023 vs FY2024
SSBP Series 2019 $248,349 $255,675 $263,218 $278,977 $278,977 $287,207 $295,679 3% Total Agency Fund: $248,349 $255,675 $263,218 $278,977 $278,977 $287,207 $295,679 3% Debt Limits
The City Council has approved a debt policy contained in the appendix of the City's adopted budget, which includes parameters for entering into debt obligations. State law sets the bonded debt limit for General Obligation bonds at 15% of the total assessed valuation of all the real and personal property within the City. As of June 30, 2022, the City's total debt limit capacity was $6.6 million, of which the City has no General Obligation bonds.

Long-term Obligations
Special Assessment Bonds with Governmental Commitment ‐ South Sonoma Business Park The special assessment bonds were issued in an original amount of $5,875,000 for the purpose of facilitating a wetlands mitigation project. The bonds are secured solely by assessments levied against property owners within the assessment district and from monies on deposit in a reserve fund. The City has no obligation to advance funds for payment of bond debt service. Due to the decrease in bond interest rates the City assisted in the bond refunding which was completed in July 2019 reducing the interest rate from 6.5% to 2.95%, reducing the total debt service paid by property owners within the District by approximately $1,340,000 over the remaining life of the bonds.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 267

SUPPLEMENTAL STATISTICAL

INFORMATION
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 268

TAXABLE SALES BY CATEGORY
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

FISCAL YEAR 2021-2022 - TOP 25 SALES TAX PRODUCERS
* Firms Listed Alphabetically
Period: July 2021 – March 2022
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 269 COMPARATIVE FISCAL YEAR 2011-2012 - TOP 25 SALES TAX

PRODUCERS
Firms Listed Alphabetically
Period: July 2011 - June 2012
Sources: State Board of Equalization, California Department of Taxes and Fees Administration , State Controller's Office, The HdL Companies City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 270 PROPERTY TAX USE CATEGORY SUMMARY - FISCAL YEAR 2021-2022

PROPERTY TAX DOLLAR BREAKDOWN
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 271 2021-2022 ROLL SUMMARY - Taxable Property Values

NET TAXABLE ASSESSED VALUE HISTORY
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 272

ASSESSED VALUE OF TAXABLE PROPERTY
Notes:

Exempt values are not included in Total. In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

FISCAL YEAR 2021-22 - TOP TEN PROPERTY TAXPAYERS
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 273 COMPARATIVE FISCAL YEAR 2011-2012 - TOP TEN PROPERTY

TAXPAYERS

DIRECT & OVERLAPPING PROPERTY TAX RATES
Notes:
¹In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. ³City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.
⁴Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
⁵Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 274

HISTORICAL CITY STATISTICS
Notes and Data Sources:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all the prior census data released to date.

Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey

PERSONAL INCOME AND UNEMPLOYMENT

EDUCATION LEVEL
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 275

APPENDIX
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 276 Acronyms Table
Below is a list of general acronyms used by the City. Please see the full definition of any term within the Glossary of Budget Terms.

ABBREVIATED
FORM

FULL NAME

ACFR ANNUAL COMPREHENSIVE FINANCIAL REPORT

ACH AUTOMATED CLEARING HOUSE

ADA AMERICANS WITH DISABILITIES ACT
CalPERS CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

COLA COST OF LIVING ADJUSTMENT

CPI CONSUMER PRICE INDEX

ERAF EDUCATIONAL REVENUE AUGMENTATION FUND

FPPC FAIR POLITICAL PRACTICES COMMISSION

FTE FULL-TIME EQUIVALENT

FY FISCAL YEAR

GAAP GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

GASB GOVERNMENTAL ACCOUNTING STANDARDS BOARD

GFOA GOVERNMENT FINANCE OFFICERS ASSOCIATION

ICMA INTERNATIONAL CITY MANAGEMENT ASSOCIATION

LTP LAGUNA TREATMENT PLANT

LOCC LEAGUE OF CALIFORNIA CITIES

MOU MEMORANDUM OF UNDERSTANDING

MTC METROPOLITAN TRANSPORTATION COMMISSION

OPEB OTHER POST-EMPLOYMENT BENEFITS

PCI PAVEMENT CONDITION INDEX

PERS PUBLIC EMPLOYEES RETIREMENT SYSTEM

RPTT REAL PROPERTY TRANSFER TAX

RPTTF REDEVELOPMENT PROPERTY TAX TRUST FUND

RFP REQUEST FOR PROPOSAL

SCTA SONOMA COUNTY TRANSPORTATION AUTHORITY

SMART SONOMA MARIN AREA RAIL TRANSIT PROJECT

TOT TRANSIENT OCCUPANCY TAX
City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 277 Glossary of Budget Terms
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit.

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

Accrual: Are the recording of revenues earned or expenses incurred which impact net income, although cash has not yet exchanged hands.

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

Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended.

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

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

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

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

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

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

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

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

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

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 278 Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.

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

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

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

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

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

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

Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services.

The index is often called the "cost-of-living index."
Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives.

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

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

Depreciation: The expiration in the service life of capital assets attributable to wear and tear, deterioration, action of physical elements, inadequacy or obsolescence.

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

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 279 Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of the total cost of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery--direct, indirect, and capital costs—are identified. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.

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

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

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

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

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

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

Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day.

The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float.

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

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

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

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

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

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

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 280 General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.

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

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

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

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

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

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

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

Major Funds: governmental or enterprise funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of the corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that the fund is particularly important to financial statement users.

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

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

Nonmajor Funds: All governmental or enterprise funds that do not meet the criteria to be defined as a major fund.

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

Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.”
Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus.

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

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

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

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

Program: A combination of activities to accomplish an end.

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

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 281 Purchased Services: The cost of services that are provided by a vendor.

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

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

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

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

RANs are full faith and credit obligations.

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

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

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

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

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

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

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

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

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

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

City of Cotati | Fiscal Year 2023/24 Preliminary Budget Page 282