Enterprise
Funds &
Capital
Funds
Fiscal Year 2023-24
City of Cotati
Session Date: April 18, 2023
> Tentative Schedule
> Budget Study
> Enterprise Funds
> Water/Sewer
> Capital Project Funds
Study > General Fund Update
Session
•Conclusion
Overview
•Packet Provided Schedules
> Enterprise Funds Proposed Budget Workbook
> Capital Project Funds Budget Workbook
> Multi-Year Capital Projects Plan
> General Funds - Updated Workbook with Transfers
and Other Sources/Uses
Feb. 20, 2025 April 15, 2025
Strategic Planning Session Budget Study Session
• Developed City Objectives/Goals • Enterprise Funds
Budget Focus •Capital Projects
•Special Revenues
• Strategic Projects
• Transfers In and Outs
Tentative
City Vision, Mission Schedule
Summary
Budget Study Session
•General Fund
• Revenues
•Expenditures By Departments
•Allocated Contracts
•Budgeted Staffing Budget Adoption
April 1, 2025 June 10, 2025
Goals and Objectives
Enterprise Funds are used
to account for operations
that are financed and
operated in a similar
manner as a private
Enterprise business enterprises.
The intent is that the costs
Funds of providing goods or
services to the community
on a continuing basis are
financed or recovered
primarily through user
charges.
Maintains a reserve of 33% of operating
expenses
Proposed rate change per the proposed
rate study for water & sewer
Budget
Highlights Conservative Revenue and
Expenditures Estimates
Continued focus on infrastructure
improvements and preservation
WATER FUNDS
BUDGET ASSUMPTIONS
• Water rate adjustment in FY 2025-26:
• Water rates are determined by the cost of delivering
water and maintaining infrastructure and equipment in
order to properly treat and distribute water to our
customers.
• Rate Study presented to council February 25, 2025, Prop Water 218 Notices Mailed March 2025, Public Hearing May 27, 2025, Rates Implemented June 15, 2025.
Funds • Interfund Debt Service Back to General Fund for UAL Contribution.
Overview • Proposed Capital Project and Equipment Improvements:
• Well 2 Renewal/Remediation
• Water Renewal and Replacement Master Plan
• Distribution System Monitoring
• Well 1A/Well 3 Treatment Renewal and Replacement
• P-3, 4: Cypress Tank New Water Main
Changes in Operating Expenditures:
• One Time UAL ADP in FY 2021/22 $989,900
• Personnel budgeting full staffing
• Allocated Contract Services
• Estimated Increasing Insurance
• Continued water conservation programs
Water • Cost of Water Procurement -
• Water Agency Increased Rate of 11.0%
Funds • Slight Increased Water Consumption
Overview
Change in Revenues:
• Based on mix of rate increases offset by stable
consumption
• Reduced investment earnings
• No estimated so in connection fees for development
SEWER FUNDS
BUDGET ASSUMPTIONS
•Proposed rate adjustment in FY 2025-26
• Sewer rates are determined by the cost of
treatment of wastewater and maintenance of
related infrastructure and equipment.
Sewer • Rate Study In Process
Funds •Proposed Capital Project Improvements:
•FY 25/26 - Sewer Master Plan - $70K
Overview •FY 26/27 - Sewer Lift Station Renewal -
$110K
•Other projects on hold
• Lift Station Generators
• Collection system Renewal & Replacement
Operating Expenditures:
• One Time UAL ADP in FY 2021/22 $948, 220
• Personnel budgeting full staffing
• Allocated Contract Services
• Estimated Increasing Insurance
• Increased wastewater treatment costs of
Sewer approximately
Funds • 1 % in 25/26
• 3% in 26/27
Overview
Change in Revenues:
• Based on mix of rate increases offset by stable
consumption
• Reduced investment earnings
• No estimated so in connection fees for development
Capital
Projects
Proposed Budget for FY 2025-26 &
2026-27
NOTE: Multi-Year Plan Presented to
Planning Commission May 17, 2025
Streets Capital Projects
2025/26
2025-26 Streets Construction & Improvements - $3,108,000 Street Paving Improvements and Maintenance
Hwy 116/W. Coati Ave. Intersection Safety - Budget $1,468,000 2026 Street Preservation Project - Budget $1,065,000
2027 Street Preservation Project - Design - Budget $100,000 Class 1 Pathway Maintenance - $150,000
Continued Traffic Safety and Landscaping Improvements
Various projects as needed - Budgeted $85,000
Trash Implementation Plan - Phase 1 of Project - Budget $240,000 B Projects - Not Included in Budget Due to Funding Constraints ADA Transition Plan & Redwood Drive - Desired Funding $287,500 Streets Capital Projects
2026/27
2026-27 Streets Construction & Improvements - $2,626,760 Continuing:
Hwy 116/W. Cotati Ave Intersection Safety - Budget $1,376,760 Annual Landscaping and Bicycle & Pedestrian Safety Projects - Budget $85,000
2027 Street Preservation Project
SCOTATI
Preservation treatments (slurry seal, crack seal, dugouts) of the Bird
TRUSTION
Streets, Aquirre Way, Keppel Way, Hahn Way, Keyt Way, and Veronda from ROAD Aquirre Way east to the end, the outer hub streets except for Arthur Street, WORK E. Cotati Ave, Old Redwood Hwy between W Sierra and Myrtle, and SAD oetween Lasker Lane and Eucalyptus Ave., and Eucalyptus Ave. Project also includes preservation of Lipton Ct, Lancaster Drive, and Dyquisto Way.
Budgeted $1,165,000
B Projects - Not Included in Budget Due to Funding Constraints Traffic Signal at William George- Desired Funding $1,370,000 032025-26 Park Improvements - $3,245,000
os Sunflower Park Improvements
The project includes walkways, new play
structure, picnic area near restrooms, reroofing
Parks and painting the existing restroom, new lighting
and landscaping.
Capital Budget $2,995,000 ($531,250 Grant)
osCator Basketball Ct. Resurfacing - Budget $50,000
Projects oVeronda-Faletti Ranch Barns
2025/26 osContinued design and environmental work towards rebuild barn and brooder house to expand the potential
community programs and events centered on
agricultural themes.
O3Budget $200,000
Parks
032026-27 Park Improvements - All on B List Pending Funding Capital
sVeronda Faletti Ranch Barn Construction - $2,000,000 (Est.) Projects osPutnam Park Improvements - Phase 2 - $3,400,000 2026/27
Building Capital Projects
Reroof of Police Building
The Police Building roofing material was installed in
2003 and is 22 years old, which is the expected life
expectancy of a composite tile roof. Increased leaks
have been experienced over the past 5 years. Project
is to prepare plans, formally bid, award and construct
the replacement roofing.
Budget $693,000
Microgrid City Hall Complex- Potential Funding $110,000 General Fund
Summary of Revenues, Operating Expenditures, & Fund Balance $10
$8
$2
2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Total Activity Total Activity Total Activity 2024-25 EST 2025-2026 2026-2027
PROP PROP
— Total Revenue: •Total Operating Expense - Ending Fund Balance:
Estimated Actual Proposed Fiscal Proposed Fiscal
Fund Balances 2024/25 = $7.0M 2025/26 = $3.9M 2026/27 = $4.2M Decrease of $3.1M Increase of $0.3M
General Fund Decrease of $1.9M
from FY 23/24 from Est. 2024/25 from Prop. 2025/26
74% as a % of OpEx 37% as a % of OpEx 39% as a % of OpEx A balanced budget maintaining prudent
fund balance levels. We will continue to
closely monitor the operating funds to
ensure that we stay on track to stabilize Operating reserve requirements meet for and begin growing fund balances while both Water and Sewer Funds also undertaking the necessary
infrastructure maintenance and
City staff are committed to exercise
City staff will continue to update the prudence and integrity in the Council on any significant budgetary nanagement of public funds and provide changes prior budget adoption. transparency and accountability in its Use.
Conclusion
QUESTIONS?
io cotati