GENERAL
FUND
Fiscal Year 2024/25City of CotatiSession Date : April 2, 2024 1 Study Session
OverviewTentative ScheduleBudget Study
General Fund
ConclusionPacket Provided Schedules
City Council Revised Goals and
Objectives
General Fund Workbook
General Fund Revenues and Expenses
Reports
Allocated Contract Services Detail Budgetary Staffing 2 Tentative
Schedule
3 Strategic Planning Session•Developed City
Objectives/Goals
Budget Focus•Strategic ProjectsFeb. 20, 2024
City Objectives RevisitBudget Study Session•General Fund •Revenues•Expenditures By
Departments
•Allocated Contracts•Budgeted Staffing
April 2, 2024
Budget Study Session•Enterprise Funds•Capital Projects•Special Revenues•Transfers In and OutsMay 13, 2024 (Monday) Budget AdoptionJune 11, 2024
Forecast Assumptions
RevenuesBased on best available information
Continued impacts of inflation/supply issues? Legislative Impacts from Federal, State & Regional Government
Estimates are prudently conservative
Cotati’s Revenue Base is Different
Sales tax & Measure S relatively secure
Slowly Growing Cannabis Business Tax
No current hospitality industry or related taxes like Transient Occupancy Tax (TOT)
4 Forecast Assumptions
ExpensesFinding a Balance• Revenues• Service Level/Operating Expense • Contract Services
• Liabilities Management (Capital, UAL )
• Proposed Budget Includes ADP $335K total
and $273K for General Fund
Outstanding Items• Insurance Costs (Estimates)• CPOA and CPMA in Negotiation 5 GENERAL FUND
Proposed Budget for FY 2024/25
6 What is a
General
Fund?
• A general fund is the primary fund used by a
government entity.
• Used to record all resource inflows and outflows
that are not associated with special-purpose funds.
• Activities being paid constitute the core
administrative and operational tasks of the government entity. • For the City of Cotati these Core Services are
• Police• Public Works• Recreation• Community Development• City Management• Administrative Services• City-Wide (Non-Utility) Infrastructure Funding – Next Study Session
7 General
Fund
Budget
Highlights
8 Minimum reserve of 25% of operating expenses, per Resolution 2009-50Revenues Increase from 2023/24 Adopted Budget • 2021/22 Estimate - Increase 2.31%• 2022/23 Proposed – Increase 2.96% ADP to CalPERS in FY 2021/22, and Minor ADP in 2023/24 and 2024/252024/25 - Staffing Costs Flat with 1% Increase • Budgeted Full Employment• Salaries Increased 4%
• Negotiated MOU’s and Step Increases
• Continued Lump Sum Payment of PERS• Increased Health Benefit Other Cost Changes
• Insurance cost is still uncertain.• Capital Outlay Increase for Replacement Equipment for Public Works• Utilities Increase Primarily Related to PG&E Rates• Contract Services increase of 6%• Increased Legal Based on Other Special Legal Services as Needed.
General Fund
Operating In-Flows (Revenues)
9 %
Change
Increase/
(Decrease)
FY 2024/25
Proposed Budget
FY 2023/24
Operating Revenue Source by Type Estimate
601- PROPERTY TAX $ 1,941,190 $ 2,123,996 $182,806 9.4%
0.6% 603- SALES TAX 5,990,807 6,027,000 $ 36,193
604- OTHER TAX 740,715 752,500 $ 11,785 1.6%
606- LICENSE & FRANCHISE 652,079 597,400 $ (54,679) -8.4%607- RENTS 133,135 114,000 $ (19,135) -14.4%608- REVENUE - OTHER AGENCIES 237,415 218,870 $ (18,545) -7.8% -23.8% 609- OTHER REVENUE 127,365 97,050 $ (30,315)
620- CHARGES FOR SVS 459,417 417,526 $ (41,891) -9.1%
650- INVESTMENT EARNINGS: 200,895 200,000 $ (895) -0.4% 660- CONTRIBUTIONS 2,780 6,300 $ 3,520 126.6%
670- TRANSFR IN & OTHR SOURCES 202,720 202,000 $ (720) -0.4% 680- SPECIAL REVENUES 96,600 98,700 $ 2,100 2.2%
999- INTERFUND DEBT SERVICE 155,742 155,741 $ (1) 0.0%
$ 10,940,860 $11,011,083 $ 70,223 0.6% Total General Fund Revenue/Sources * Includes cannabis business tax
COMPARATIVE IN-FLOWS
10 $0 $1 $2 $3 $4 $5 $6 $7
601- PROPERTY TAX
603- SALES TAX
604- OTHER TAX
606- LICENSE & FRANCHISE
607- RENTS
608- REVENUE - OTHER AGENCIES
609- OTHER REVENUE
620- CHARGES FOR SVS
650- INVESTMENT EARNINGS:
660- CONTRIBUTIONS
670- TRANSFR IN & OTHR SOURCES
680- SPECIAL REVENUES
999- INTERFUND DEBT SERVICE
Millions
Propsoed Budget FY 2024/25 Estimated Ending FY 2023/24
IN-FLOWS
FOR BUDGET YEAR 2024/25
11 Major
In-Flows
Highlights
12 Property Tax Projected Revenue includes:
•2% Assessor’s applied CPI•No New Adjustments Considered for New Development•Estimate for 2023/24 Reduced Based on Consultant Estimate and Conservatism•Total change of around 9% Sales Tax Projected Revenue:
•Minor increase in 2024/25 – 0.6%
•Increased Sales (Inflation?)
•Major Industry Groups in Cotati
Building/ConstructionFuel/Service StationsFood/DrugState/County Pool Other General Fund
In-Flows Highlights
13 Other Tax
•Cannabis Business Tax
•Estimated at $700K for 2024/25
•Stable Existing Businesses
Licenses, Permits & Franchises
•No significant change except a small
increase in Franchise Taxes
Other General Fund
In-Flows Highlights
14 Other Agencies
• Public Safety Contract Services with SSU
Charges for Services
• Development/Public Works
• Decreased Revenues in 2024/25 due uncertainty of Projects • Police Charges
• Constant Revenues as uncertain
Other Revenues
• Investment Earnings – Increased but Subject to Rate Risk in Pool• Contract Class Revenues for Recreation - Continued Slow Increases Out-Flow
Highlights
15 •2024-25 - FULL LUMP SUM PAYMENT OF THE PERS
UNFUNDED LIABILITY IN THE AMOUNT OF APPROXIMATELY $X.XM •2024-25 - Additional Discretionary Payment of $326K
processed ($273K For General Fund), plus Lump Sum
CALPERS
•ALLOCATED CONTRACT SERVICES
•SHARED INDIRECT COSTS SUCH AS AUDIT FEES,
JANITORIAL COSTS, UTILITIES, ETC.
•BASED ON FULL FTE
CONTRACT
SERVICES
EVALUATION
•USING ESTIMATES RECEIVED•MARKET UNCERTAINTY
INSURANCE
INCREASES
•ESTIMATES ARE BASED ON EXISTING STAFFING•INCLUDES ONLY NEGOTIATED MOU CHANGES•TWO MOU CURRENTLY BEING NEGOTIATED ALL
DEPARTMENTS
ARE BUDGETED
AT FULL
STAFFING
GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
BY CATEGORY
16 Expense by Category
2023-2024
Adopted Budget
2023-2024
Estimated Budget
2023-2024
Proposed Budget $ Change % Change
700 - SALARY AND BENEFITS $ 5,035,373 5,575,705 $ 5,627,720 $ 592,347 $ 12% 707 - PAYOUTS 107,770.00 99,325.00 117,170.00 17,845.00 18%800 - MATERIAL & SUPPLY 106,815 76,762 73,416 (33,399) -31% 801 - CONTRACT SERVICES 1,668,155 1,770,397 1,688,126 19,971 1%802 - LEGAL 137,940 111,064 202,893 64,953 47% 803 - UTILITIES 403,591 381,817 435,700 32,109 8%
804 - OTHER INSURANCE 633,249 669,933 695,045 61,796 10% 805 - REPAIR & MAINTENANCE 271,495 211,200 203,700 (67,795) -25% 806 - OTHER EXPENSES 331,362 331,393 327,146 (4,216) -1% 807 - FISCAL FEES 59,430 60,980 56,180 (3,250) -5%
808 - DEBT SERVICE 2,650 8,180 4,630 1,980 75%
809 - CAPITAL OUTLAY 279,900 7,875 225,610 (54,290) -19% 811 - MISCELLANEOUS EXPENSE 32,000 32,000 31,550 (450) -1% 812 - COMM. DEV.-PERMIT EXPENSE 65,500 100,750 100,750 35,250 54% 813 - PUBLIC WORKS.-PERMIT EXPENSE 1,000 2,000 1,000 - 0%Grand Total 9,447,826 $ 9,127,785 $ 9,790,636 $ 662,851 $ 7%
GENERAL FUND
OPERATING OUT-FLOWS (EXPENDITURES)
BY DEPARTMENT
17 Expense by Department
2023-2024
Adopted Budget
2023-2024
Estimated Budget
2023-2024
Proposed Budget $ Change % Change
Department: 10 - CITY COUNCIL 170,457 $ 156,313 $ 183,606 $ 27,293 $ 17% Department: 11 - CITY MANAGER 741,811 701,472 935,990 234,518 $ 33%Department: 12 - ADMINISTRATIVE SERVICE 508,290 483,941 527,880 43,939 $ 9% Department: 17 - COMMUNITY DEVELOPME 1,115,760 923,073 901,168 (21,905) $ -2% Department: 18-22 - PUB WORKS-COMBINED 1,400,181 1,498,411 1,738,486 240,075 $ 16%Department: 23 - POLICE 5,017,822 4,830,279 4,960,074 129,795 $ 3%Department: 24 - RECREATION 449,530 412,586 502,432 89,846 $ 22%Department: 25 - CODE COMPLIANCE 43,975 121,710 41,000 (80,710) $ -66%Total Operating Expenses 9,447,826 $ 9,127,785 $ 9,790,636 $ 662,851 $ 7%
DEPARTMENTAL OUT-FLOWS
FOR PROPOSED BUDGET YEAR 2024/25 18
Department: 10 - CITY
COUNCIL
$183,606
2%
Department: 11 - CITY
MANAGER
935,990
10%
Department: 12 -
ADMINISTRATIVE SERVICES
527,880
5%
Department: 17 -
COMMUNITY DEVELOPMENT
901,168
9%
Department: 18-22 - PUB
WORKS-COMBINED
1,738,486
18%
Department: 23 - POLICE
4,960,074
51%
Department: 24 -
RECREATION
502,432…
Department: 25 - CODE
COMPLIANCE
41,000
0%
Allocated
Contract Services
19 Sum of
Classification Of Contracts Contracts
General Contract Services $139,545
Insurance 941,750Legal & General Council 181,000Professional Services 121.922Technology & Data Management 408,978 Estimated Total $1,7,3,195
Descriptions of Contract Service Classifications: 1) Professional Services – includes services provided by certified professionals for business purposes (example auditors, actuary, etc.)2) Legal and General Counsel Contracts – legal services3) Technology and Data Management Services – includes all computer and systems management, website hosting, phone, record mgmt4) Insurance Contracts5) Project Consultants – Specialty consultants for projects6) General Contract Services – tree services, janitorial, landscaping and categorize by the PW Departments Expenditure Highlights
Departments Detail
20 City Council includes the following changes:
• Continued allocation of shared indirect costs; primarily city utilities and other contract services
• Significant other expenses include dues and subscriptions, travel, and allocated insurance.
City Manager includes the following changes:
• Continued inclusion of Public Information Services under the City Manager Department
• Inclusion of Economic Development Work and Impact Fee Studies
• Other Expense - Election Expense of $20,000
Expenditure Highlights
Departments Detail
21 Admin. Services includes the following changes:
• Increased Fiscal Fees incurred by the City for General Fund revenues received
Community Development change is primarily due to:
• Removal of Development Funded Professional Contracts
Public Works includes the following changes:
• Increased Utilities with PG&E, Water Services, Redundant Internet, Wi-Fi Service At La Plaza
• Capital Outlay with Equipment and Vehicle Replacements Expenditure Highlights
Departments Detail
22 Police Services includes the following changes:
• Continued investment in technology services through the public safety consortium
• Additional Costs for Training and Correlated Overtime.• Significant other expenses include allocated insurance and legal, recruiting, small tools and equipment.
Recreation includes the following changes:
• RecDesk Annual software contract renewal • Significant other expenses include allocated insurance and bank fees Code Compliance
• Anticipated return to normal code compliance activity Conclusion
23 A balanced budget maintaining prudent fund balance levels We will continue to closely monitor the operating revenues to ensure sufficient fund balance and cash flows for continued operations Operating reserve requirements continue to be exceeded for General Fund City staff will continue to update the Council on any significant budgetary changes prior to budget adoption.
City staff are committed to exercise prudence and integrity in the management of public funds and provide transparency and accountability in its use. 24