Special City Council
May 17, 2022

City of Fort Bragg
Proposed Budget
Fiscal Year 2022 / 23

CITY COUNCIL
Mayor
Bernie Norvell
Vice Mayor
Jessica Morsell-Haye
Councilmember
Tess Albin-Smith
Councilmember
Marcia Rafanan
Councilmember
Lindy Peters
Interim City Manager
David Spaur
FY 2022/23

OPERATIONS & MAINTENANCE PROPOSED BUDGET

ABOUT THE COVER
Glass Beach at sunset.

Redwood Street business signs. Police Department cruiser with rainbow.

Budget Document Producers

Budget Team Isaac Whippy Assistant Finance Director
Laura Bianchi-Limbird Government Accountant I
Adriana Moreno Ramos Finance Technician I
Department Budget Coordinators John Smith Public Works/CIP/Water/Wastewater Chief Naulty Police Department Chantell O’Neal Community Development/CIP Streets/Grants Isaac Whippy Finance/Non-Departmental/IT
David Spaur Administration/City Council
June Lemos City Clerk/HR
Sarah McCormick Grants/Visit Fort Bragg/Administration

TRANSMITTAL LETTER Letter from David Spaur, Interim City Manager ......................................................... i

INTRODUCTION
User's Guide to the Budget ...................................................................................... 1 City of Fort Bragg – Overview .................................................................................. 7 Directory of Elected and Appointed City Officials ..................................................... 11 Organizational Chart ............................................................................................... 12 Budget Guidelines .................................................................................................. 13 Fiscal Policies ......................................................................................................... 15 Investment Policy.................................................................................................... 22

SUMMARY
Summary of Revenue, Expenditures and Fund Balance ............................................ 29 Budget Summary – All Funds..................................................................................... 32 Budget Summary – General Fund............................................................................. 40 Operating Transfers .................................................................................................. 58 Cost Allocation Plan...………………………………………………………………………. 60
Ten Year City Authorized Position Staffing Comparison............................................ 67 Ten Year Authorized Staffing Comparison Graph ..................................................... 69 Appropriations Limit .................................................................................................. 70 OPERATING BUDGET DETAIL City Council............................................................................................................... 73 Administration ........................................................................................................... 79 Administrative Services Office
City Attorney's Office
City Clerk's Office
Fort Bragg Tourism Marketing & Promotions ............................................................ 87 Finance..................................................................................................................... 91 Non-Departmental..................................................................................................... 99 Community Organizations
Caspar Closure & Landfill
Other Non-Departmental
Public Safety........................................................................................................... 103 Police Department
Fire Protection District
Community Development Department .................................................................... 115 Public Works........................................................................................................... 121 Internal Service Funds ............................................................................................ 131 Facilities Repair & Maintenance
Technology Maintenance & Replacement
Fleet & Equipment Services
Debt Service Policy & Summary ............................................................................... 143 Interfund Loan Policy & Summary

TABLE OF CONTENTS

ENTERPRISE FUNDS DETAIL
Water Enterprise....................................................................................................... 153 Wastewater Enterprise............................................................................................... 116

SPECIAL REVENUE FUNDS
Grants........................................................................................................................ 169 Special Revenue Funds ............................................................................................. 173 Fort Bragg Redevelopment Successor Agency.......................................................... 177 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Overview.................................................................... 181 FY 2021/22 to FY 2025/26 Projects by Category ....................................................... 183 FY 2021/22 to FY 2025/26 Projects by Funding Source............................................. 184 Detail ......................................................................................................................... 186 GLOSSARY GLOSSARY............................................................................................................... 191

CITY OF FORT BRAGG
Incorporated August 5, 1889
416 N. Franklin Street
Fort Bragg, CA 95437
Phone: (707) 961-2823
Fax: (707) 961-2802
June 13, 2022
Honorable Mayor and Members of the City Council, Residents, and Business Owners:

I am pleased to present the Fiscal Year (FY) 2022-23 Budget for the City of Fort Bragg, the Fort Bragg Municipal Improvement District No.1, and the Fort Bragg Redevelopment Successor Agency. The overall budget document may appear smaller than past documents with the use of smart technology and the lack of growth in revenues, staff, programs and projects. While not a robust year in revenue growth, we are proud to present to you a Balanced Budget through a COVID year that witnessed a high vacancy rate in the downtown central business district that indicates the closure of many small business operations and the loss of sales tax and diminished visitor experience. The drought had a significant effect on the community’s ability to expand and provide services for restaurants and hotels and our residents all pitched in to curtail water use and conserve water along the Mendocino Coast.

I would like to take this opportunity to share some positive news with our residents of how hard our Public Works Department works to provide clean drinking water to our residents. The team was able to purchase a package desalination plant to provide emergency water from the Noyo River that typically has a high salinity rate during very low flows. The Desal-Plant is operational and on stand-by for future service. COVID restrictions have lessened visitor tourists' travel during the beginning of the pandemic but over the winter months we have witnessed a slow return on weekends to Fort Bragg due in large part to our Visit Fort Bragg partners who have helped increase visitor traffic to Fort Bragg and the Mendocino Coast. To help our small business owners, our Economic Development and Finance staff were able to push out the news of a small business Revolving Loan Fund (RLF) and as a result of our recent workshop we have received four loan applications and four to five businesses are now interested in locating in the vacant buildings along Franklin Street and Laurel Street.

Our Police Department received grants this year that positively offset our budget to help with the homeless and provide 193 room nights. Through Community Policing they created a partnership with the County Health Department and a state agency that has yielded another $220,000 to help with homeless and mental health. The Police Department has since been able to rebuild their staff levels by hiring new officers and patrolling our neighborhoods more often.

Cyber security risks have increased dramatically this year not only for our city but across the nation and as a result, risk management insurance costs have increased by 20%.

According to Avenu Insights, our financial and tax consultant, we could expect to see signs of a recession in late 2023 and early 2024. As a result, you will see a conservative but balanced budget for this year, FY 2022/23.

Budget Overview
The City has three major operating funds: General Fund, Water Enterprise, and Wastewater Enterprise. In addition, the City’s chart of accounts includes the C.V. Starr Center Enterprise, special revenue funds, grant funds, capital project funds and internal service funds. The General Fund is the principal operating fund of the City and is supported primarily by taxes and fees that generally do not have restrictions on their use. Because of the lack of restrictions on use of funds, the General Fund has the most demands on its limited dollars. The Enterprise funds – Water and Wastewater – are fully supported by user fees. Special revenue funds and accounts are used to account for proceeds of a specific revenue source that has legal restrictions on how the funds may be spent.

The City’s total proposed expenditure budget (excluding transfers) for FY 2022/23 is $38.1 million. This is a decrease of 2% from the amended FY 2021/22 Budget of $38.8 million. The $704k decrease is primarily due to the expected completion of the $18 million Wastewater Treatment Facility Upgrade in FY 2020/21 and the Water Meter Replacement Project, which will be expended in FY 2021/22. The chart below shows that capital expenditures for FY 2020-21 are budgeted at $1.7 million less than the prior year.

Salaries and Wages budget increased by $744k as the proposed budget includes a full-time Chief of Police position, City Manager salary, two Social Service Liaison Officers, an Engineering Technician, and cost of living adjustments across the departments.

On the other hand, benefits decreased by $418k due to the issuance of the 2021 Lease Revenue Bonds that reduced the annual contributions towards the unfunded liability. Conversely, this increases the General Fund’s annual debt payment by $599k. Also proposed is paying off the Water Enterprise Loan early, amounting to $350k, saving $53k in interest payments. This would place the Enterprise Fund in a stronger position to acquire financing for some large Capital projects as identified in the Capital Improvement Plan (CIP).

The proposed budget continues to allocate funds towards the Section 115 trust to act as a cushion for any future declines in CalPERS Discount Rate which will further increase the Unfunded Liability.

FY 2021/22 FY 2022/23

AMENDED PROPOSED
ALL FUNDS BUDGET BUDGET Variance
Salaries & Wages $ 5,708,181 $ 6,451,929 743,748.36
Benefits 3,194,292 2,775,590 (418,702.04)
Materials & Services 12,773,447 12,477,733 (295,713.31) Capital 13,792,494 12,093,078 (1,699,416.18)
Debt Service 675,067 1,573,485 898,418.05
Indirect Expenses $ 2,327,121 2,394,080 66,958.87
Fiduciary Funds $ 382,426 383,375 949.11
Subtotal 38,853,028 38,149,271 (703,757.14)
Projected Fund Balances
The year-end fund balances and the changes over time provide a narrative about the financial condition of each fund or fund group. Fund balance is the difference between assets and liabilities and reflects the cumulative annual financial surpluses and deficits. One-time declining balances are generally not bad and typically reflect one-time capital or other large expenditures. Oftentimes these are planned for expenditures such as the upgrade to the City’s Wastewater Treatment Plant last year. Frequently, revenues will be accumulated to cover the cost or a portion of the cost of these capital projects. Fund balances that continue to decline each year from operating deficits or unplanned expenses may be a cause for concern or indicate a long-term structural deficit. Until the COVID-19 pandemic and economic shutdown, the City’s fund balances reflected strong operating and capital reserves.

Some funds are in better financial condition than others. The decline in the General Fund balance in FY 2016/17 was the result of the new cost allocation plan and repayment of prior year overallocations made by the Water and Wastewater Enterprise funds. The General Fund is certainly the most impacted by the COVID-19 pandemic and economic shutdown. This is largely because of its heavy reliance on TOT and sales tax, which in turn is tied to the tourist-based economy.

Changes in the Special Revenue, Capital and Internal Service funds are typically tied to capital projects, and expenditures can fluctuate accordingly. The drop in Water Fund Balance in FY 2022/23 is directly related to increasing spending on Water Capital improvements. With the completion of the Wastewater Treatment Facility Upgrade and four Lift Station Rehabilitations, staff resources will focus on capital improvements to the City’s water system in FY 2022/23.

The chart and graph on the next page provide a six-year “picture” of the City’s fund balances. *Enterprise and Internal Service funds do not include fixed assets, restricted for debt service or depreciation expense.

FUNDS
06/30/2016
Audited
06/30/2017
Audited
06/30/2018
Audited
06/30/19
Audited
06/30/2020
Audited
06/30/2021
Audited
06/30/2022
Projected
06/30/2023
Projected
General Fund 5,388,494 3,106,934 2,959,473 3,141,626 2,691,242 4,184,215 3,449,677 3,647,488 Special Revenue Funds 4,430,343 3,528,495 4,955,492 2,533,468 3,157,762 3,772,584 3,891,255 4,371,972 Capital Projects Funds 675,031 1,227,204 (374,490) 1,748,733 (454,381) (220,812) (5,267) (5,267) Internal Service Funds 1,255,766 377,150 360,416 806,683 914,449 866,297 580,338 172,461 CV Starr Enterprise 622,651 735,611 874,690 702,390 645,608 1,489,006 1,962,092 1,587,725 Water Enterprise 2,567,432 3,120,650 3,178,033 4,953,535 6,220,235 7,478,579 6,836,239 4,378,729 Wastewater Enterprise 168,822 3,615,944 3,462,700 2,438,019 1,838,526 3,309,329 3,203,632 3,123,974 15,108,539 15,711,988 15,416,314 16,324,454 15,013,441 20,879,199 19,917,966 17,277,082 General Fund Budget
The General Fund is projected to have $11,130,495 of revenues in FY 2022/23 and expenditures of $10,932,684, a balance budget.

Personnel costs are the largest class of expenditures in the General Fund, representing nearly 62% of the FY 2022/23 Budget. Personnel Service cuts were implemented in FY 2019/20 as part of the City’s COVID-19 Budget reduction plan. Since then, the General Fund has filled back vacant positions, and personnel costs are projected to be higher than pre-pandemic numbers as cost of living adjustments and the emphasis on attracting and retaining employees will continue to increase the personnel costs in future years. The proposed budget includes a cost of living adjustment for employees, excluding the Police Department staff who receive annual increases on January 1 each year, based on a legally mandated (Chapter 2.68 Fort Bragg Municipal Code) salary survey of local law enforcement agencies. -1000000
0 1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
06/30/2016
Audited
06/30/2017
Audited
06/30/2018
Audited
06/30/19
Audited
06/30/2020
Audited
06/30/2021
Audited
06/30/2022
Projected
06/30/2023
Projected
Actual and Estimated Major Funds- Balance
General Fund Special Revenue Capital Project Internal Service Funds CV Starr Enterprise Water Enterprise Wastewater Enterprise FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
Salaries & Wages $ 3,762,405 $ 3,271,863 $ 3,738,211 $ 3,773,057 $ 4,192,886 11% Benefits 2,622,230 2,489,172 2,911,246 2,772,027 2,616,939 -6% Materials & Services 2,028,570 1,979,891 3,075,215 2,895,723 2,630,193 -9% Other Expenditures 83,337 110,022 278,712 230,061 206,832 -10% Debt Service 185,533 37,964 37,964 37,964 599,703 1480% Subtotal 8,682,075 7,888,911 10,041,349 9,708,831 10,246,553 6% Allocations 633,474 478,497 686,131 681,042 686,132 1%
Subtotal with Allocations 9,315,549 8,367,408 10,727,480 10,389,873 10,932,685 5% Net Transfers - - - - - 0%
TOTAL $ 9,315,549 $ 8,367,408 $ 10,727,480 $ 10,389,873 $ 10,932,685 5% Additionally, the proposed Budget also includes the replacement of the interim Police Chief and the interim City Manager with a permanent position that provides benefits which will increase the personnel services Budget. The City hopes to fill the positions by the new fiscal year.

Benefits recorded a decrease of 6%, primarily due to the issuance of $11.4 million in taxable Lease Revenue Bonds. Proceeds in the amount of $7.5 million were used to reduce the City’s unfunded pension liability, with an additional $3.5 million set aside for costs associated with the acquisition of the southern portion of the former Timber Mill property. The California Public Employees’ Retirement System (CalPERS) recognized a record 21.3% investment return for the fiscal year ending June 30, 2021. The record CalPERS investment return and the $7.5 million liability payment place the City better positioned to manage pension obligations going forward.

The reduction in Unfunded liability reduced the annual CALPERS UAL Payments benefits budget by $389k annually, which was offset by increased benefit costs.

FY 2022/23, medical, dental, and vision rates did not change for active employees, but retiree medical costs are estimated to increase by 2.3%. Under current labor agreements, premium costs are shared 80% by the City and 20% by the employee. In addition, the City has 29 covered retirees, 23 of whom receive full health insurance coverage from the City. The remaining retirees pay a portion of the retiree and spousal coverage, depending on the date of hire. Retiree health benefits have been phased out through collective bargaining agreements. There are a number of current employees who are eligible for such benefits based on their date of hire.

The increased pension costs for the City will be substantial and will put significant pressure on the General Fund’s financial performance for years to come. The reduction in the CalPERS rate from 7% to 6.75% percent is not expected to be the last one. CalPERS has failed to meet the 7% percent targeted return in the prior fiscal years except for FY 20/21, where it recognized a 21.3% investment return (6.7% in FY 2018/19 and 4.7% in FY 2019/20). Over 20 years, the overall fund performance has averaged just 5.5%. As part of the Pension policy, the City is currently setting up a Section 115 Trust that will absorb some of the future fluctuations in the CALPERS discount rate, adding to the Unfunded Liability. The City Council had adopted a $1M contribution to the trust in FY 2021/22.

Public Works, 1,274,721 ,
12%
Community Dev, 436,639 ,
4%
General Gov't, 2,070,578 ,
19%
Marketing & Promotions,
220,500 , 2%
Community Contributions,
152,962 , 1%
Police, 3,805,179 , 35%
Non-Dept, 1,158,450 , 11%
Debt, 687,563 , 6%
Fire, 439,962 , 4%
Indirect Charges, 686,131 ,
6%

GENERAL FUND EXPENDITURES BY FUNCTION
Conclusion and Acknowledgements
As public servants, it is important for us to remember who we work for and what we are here to do for our citizens and visitors. Our job is to make Fort Bragg a safe and healthy place to live and visit. Fortunately, the City Council has laid out their top four priorities moving forward which include:

1. Broadband Communication and Jobs

2. Public Safety

3. Water Resiliency

4. Work-Force housing
While the four top priorities identify important issues to focus on, each Council Member has their one or two priorities that they are passionate about and I want to point out emergency response and the need to increase our communication systems between our Hospital and Schools. We see the future of Broadband communications coming to Fort Bragg as an opportunity that will increase jobs and commerce allowing for more remote work and more business opportunities to grow here locally. The City is looking to add a 3/8 cents sales tax for Work Force housing to help with the housing shortage for our nurses, teachers and trades people. Parks and recreation including the performing arts are all very important aspects of having a well-rounded community and youth opportunities for sports and opportunity to grow.

All of this would not be possible if it were not for dedicated workers who are your public servants. Please take a moment when you can to thank them and respect them because they work very hard and most the time with limited staff available, and limited resources, to assist them, hence we rely on grants and support from our State and Federal Government. Without each and every one of them, the City of Fort Bragg would not be the unique and amazing place where we live and work. I must also acknowledge our elected officials, who are also public servants with very little pay for what essentially amounts to many hours of volunteer work.

Each Council member serves on two or three Ad-Hoc Committees who do the majority of volunteer work that helps our citizens keep in touch with us, finish projects, set priorities and direction for the city. It is their leadership that provides the structure for what we do each day.

This budget is the product of much work by the management team and supporting staff. However, it is the Finance Department who produces this document, which creates our guide and work plan for the next year. I would like to thank Isaac Whippy our Assistant Finance Director and his staff who working tirelessly on City’s Finances, who put the budget together.

I look forward welcoming a new and permanent city Manager in June to the City of Fort Bragg.

Respectfully Submitted,
David Spaur
Interim City Manager
USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The functions of local government stem from three levels of policy direction: federal, state and local.

Within this intergovernmental system, local government is responsible for providing basic public services such as maintaining streets and roadways, providing traffic management systems, maintaining parks, providing community services, and ensuring public safety. Local government must also fulfill certain state and national policy objectives such as transportation and environmental protection while addressing the expectations and values of its citizens. For local governments, the primary tool used to coordinate the provision of governmental services and to provide legal authorization for the expenditure of funds is the annual budget. A local government budget is a financial plan that matches existing resources with the needs of the community.

The City of Fort Bragg's budget is developed and adopted by the City Council and provides Fort Bragg residents and City staff with a plan for implementation of the services, goals and objectives specified by the City Council. The City's Wastewater Enterprise is operated by the Municipal Improvement District No. 1 (MID) Board. The City Council serves concurrently as the MID Board of Directors. The budget for the Wastewater Enterprise is included in this budget document.

The Operating Budget is a guide for the receipt and disbursement of funds used to provide daily, routine public services to the community. The Five-Year Capital Improvement Program (CIP) and Capital Projects Budget provide citizens and City officials with detailed information about capital projects that are planned for near- or mid-term implementation.

This budget outlines the many municipal services, programs, and projects provided by the City of Fort Bragg over the course of the fiscal year. It identifies revenue projections and specific expenditures necessary to deliver services to the community. The budget is intended to provide transparency to City residents about programs and services as well as the policies underlying the City Council's spending decisions.

DISTINGUISHED BUDGET PRESENTATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Distinguished Budget Presentation Award to the City for its Fiscal Year 2019/20 Budget. This was the third year that the government has achieved this prestigious award. Achievement of the award reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the City had to satisfy nationally-recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity's budget serves as:
• A Policy Document – to describe financial and operating policies, goals, and priorities for the organization.
• A Financial Plan – to provide revenue and expenditure information by fund, department, division, and category.
• An Operations Guide – to describe activities and objectives for the fiscal year. • A Communications Tool – to provide information on budgetary trends, planning processes, and integration of the operating and capital budgets.

The Distinguished Budget Presentation Award is valid for one year. Our Fiscal Year 2019/20budget will again be submitted to the GFOA and we are confident that we will once again achieve the award.

GUIDE TO THE DOCUMENT
USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

GOVERNMENT FINANCEOFFICERS ASSOCIATION
Distinguished Budget Presentation Award

PRESENTED TO
City of Fort Bragg
California
For the Fiscal Year Beginning
July 01, 2021
Executive Director
USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET ORGANIZATION
The FY 2021/22 Budget includes eight basic sections as follows:

1. City Manager's Transmittal. Provides an introduction to the budget including a summary of critical economic issues, Council-directed core services, and basic operational and strategic goals for FY 2021/22.

2. Introduction. Includes this Users' Guide, a directory of elected and appointed City officials, a Citywide organization chart, an overview of the City of Fort Bragg, a definition of the funds included in the financial reporting model of the City, and the City's budget guidelines and fiscal policies. This section provides the reader with the policies and documents that guide the City's financial practices.

3. Summary. Includes a comprehensive overview of fund balance projections and individual summaries of revenues and expenditures for all funds and the General Fund. Also included are interfund transfers, interfund cost reimbursements and the City's cost allocation plan. Summaries for the Water, Wastewater and C.V. Starr Enterprise Funds are included in the detail section for each fund.

4. Fund Detail - Departmental Summaries. Presents detailed information on the City's operating departments and Enterprise funds as follows:

City Council Public Works
Administration Internal Services
Tourism Marketing & Promotions Debt Service
Finance Water Enterprise
Non-Departmental Wastewater Enterprise
Public Safety
C.V. Starr Center Enterprise
Community Development

Additional information about services provided by the City is included in each departmental section.

Department summary information includes organizational charts, departmental services description, summaries of accomplishments and goals, a comparison of the total adopted budget to the prior fiscal year, and a summary of expenditures over the last three fiscal years. More specific information about the current year appropriations is provided in the budget detail section. With the FY 2017/18 Budget the presentation was expanded to include a summary of revenue generated by each department.

5. Grants and Special Revenue Funds. Provides an overview of each of the City's Special Revenue Funds, including fund descriptions, revenues and expenditures. Special Revenue Funds are classified into one of four categories: Revenue, Grants, Internal Service Funds, and Trust and Agency.

6. Capital Improvement Program (CIP) and Capital Projects Budget. The Multi-Year CIP includes descriptions of individual projects and details the acquisition, construction or rehabilitation of major capital facilities and infrastructure. The Capital Projects Budget is used to account for the receipt and disbursement of funds for specific CIP projects. For many projects, revenue resources and expenditures may extend over several years.

USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

7. Statistical Data. Presents historical information for the past 10 years regarding the City's finances, operations, constituents and the local economy.

8. Glossary. A list of specialized words and acronyms used in the budget document and their definitions.

USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET PROCESS & ADOPTION
The City develops an annual budget according to legal and policy direction which includes:
• Prepare a budget for all funds of the City.
• Strive to adopt a budget that is balanced as to resources and appropriations. • Adopt a budget that does not exceed State constitutional limits. • Adopt a budget prior to the beginning of the fiscal year in which it is to take effect. • Allow for adjustments to the budget with proper approvals. • Strive to maintain reserves in accordance with established Council policies. • Utilize encumbrances of appropriations as a budgetary control technique. • Adopt the budget through City Council and Municipal Improvement District Board resolutions. • Exercise budgetary controls at the department level.

The City of Fort Bragg operates on a fiscal year basis, starting July 1 and ending June 30. The budget is prepared by the Finance Department under the supervision of the City Manager. The budget process typically begins in January once the audit reports for the prior fiscal year are complete. The Finance Department prepares a Mid-Year Performance Report and the City Council conducts a Mid-Year Budget Workshop (typically in March). At that workshop, revenue and expense projections are presented for the current fiscal year and the Council provides policy direction to staff regarding preparation of the budget for the coming fiscal year. Following the mid-year workshop, an Adopted budget is assembled for the next fiscal year and it is reviewed by the Council and the public at a budget workshop (typically in May).

Following the budget workshop, a revised budget is prepared and transmitted to the City Council in June for further review, public input, deliberation and adoption prior to the beginning of each new fiscal year (July 1).

Copies of the Adopted budget are made available to the general public prior to the City Council's budget workshop. After providing opportunities for public review and discussion at the budget workshop(s), the budget is adopted by the City Council prior to June 30 at either a regular or special City Council meeting.

After adoption, the budget may be amended by City Council resolution.

BASIS OF ACCOUNTING AND FUND DEFINITIONS
The modified accrual basis of accounting is used by all General, Special Revenue and Capital Projects Funds. This means that 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.

Expenditures are recorded when liabilities are incurred, except that principal and interest payments on long-term debt are recognized as expenditures when due. The accrual basis of accounting is utilized by all Enterprise and Internal Service Funds. This means that revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

To demonstrate fiscal accountability, various funds are established in accordance with objectives of special regulations, restrictions, and/or limitations. Each fund is considered a separate accounting entity with a self-balancing set of accounts. The funds that are used in the financial reporting model for the City of Fort Bragg as follows:

The General Fund is the City's primary operating fund. It is used to account for resources traditionally associated with general government activities which are not required (legally or by sound fiscal management) to be accounted for in another fund.

USER’S GUIDE TO THE BUDGET
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Special Revenue Funds are used to account for revenues that are legally restricted for a particular purpose. The City has several Special Revenue Funds including the Special Sales Tax for Street Repairs, Asset Forfeiture, General Plan Maintenance Fee, Gas Taxes and Fire Equipment Tax.

Special Revenue Funds are also used to account for grants obtained to fund City projects and activities.

Capital Project Funds are used to account for financial resources to be used for construction or acquisition of fixed assets, such as buildings, equipment, or roads. A Capital Project Fund exists only until completion of the project.

Internal Service Funds are used by the City to account for the financing of goods and services provided by one department to other departments within a government organization on a costreimbursement basis. They are set up to take advantage of economies of scale, to avoid duplication of effort, and to accurately identify costs of specific governmental services. The City utilizes three Internal Service Funds: Facilities Repair & Maintenance, Technology Replacement & Maintenance and Fleet & Equipment Services.

Enterprise Funds are used to account for operations that are supported by a fee charged to external users for services, similar to a private business. The City has three Enterprise Funds: Water, Wastewater, and C. V. Starr Center.

Fiduciary Funds are used to account for resources that a government holds as a trustee or agent on behalf of an outside party and therefore cannot be used to support the government's own programs.

The City has one fiduciary fund: Successor Agency to Fort Bragg Redevelopment Agency.

COST ALLOCATION PLAN AND DIRECT CHARGES The City employs a multi-step process for distributing the indirect costs of central service departments (City Council, Administration, Finance, Non-Departmental and Public Works Administration) and the City's Internal Service Funds to various departments and funds.

Costs of the City's central service departments are allocated through the City's Cost Allocation Plan (CAP). The CAP allocates costs that originate in one department but benefit one or more other departments. By way of example, the Administrative Services Department (City Clerk) performs the function of "Records Management" which benefits multiple other departments within the City organization. The costs associated with "Records Management" are allocated from the Administrative Services Department to the multiple other departments that benefit from the service. Each year a yearend true-up is performed so that allocations are based on actual results rather than budgeted forecasts.

For example, if actual administrative costs end the year less than budgeted, then allocated costs will be revised down.

The City's Cost Allocation Plan is presented in detail beginning on Pages 61-73.

CONCLUSION
Financial forecasting is, at best, an inexact science. Many experts and studies offer varied opinions and forecasts, each completely logical and reasonable. Staff has developed revenue and expenditure estimates based on trends and forecasts available as of May 2021. These estimates take into account what has happened in the local economy, current revenue and expenditure experiences, and, to the extent possible, what is projected to happen over the next 14 months.

City of Fort Bragg ~ FY 2022/23 Proposed Budget

HISTORY OF FORT BRAGG
The north coast of Mendocino County was inhabited by Native Americans of the Pomo tribe for approximately 10,000 years. The Pomo people were hunter-gatherers with a close relationship to the land and the sea. Seasonal Pomo villages were located along the coast with permanent villages located north of the Ten Mile River.

In 1855, an exploration party from the Bureau of Indian Affairs visited the area in search of a site on which to create a reservation and, the following year, the Mendocino Indian Reservation was established. It spanned an area from the south side of the Noyo River to north of the Ten Mile River and east to Little Valley and Glen Blair. In 1857, the Fort Bragg military post was installed on the Mendocino Indian Reservation approximately 1½ miles north of the Noyo River and its purpose was to maintain order on the reservation. During the same year, a lumber mill was established on the Noyo River starting what would become the major industry of the region. The military post was short-lived and records show that November 23, 1861 was the last date on which army units occupied the fort. In 1865, after 300 Native Americans were marched forcibly from the Mendocino Indian Reservation to a reservation in Round Valley, Fort Bragg as a military post was abandoned.

On August 5, 1889, Fort Bragg was incorporated as a city. C.R. Johnson, president of the Fort Bragg Redwood Company, was the first mayor and his company laid out the town much as it exists today– with a uniform street grid and mid-block alleys. In 1893, the Union Lumber Company was created when the Fort Bragg Redwood Company absorbed some of the smaller lumber companies in the area. In 1901, the Union Lumber Company incorporated the National Steamship Company to carry lumber, passengers and supplies. The steamships provided Fort Bragg's only link to manufactured comforts and staples like sugar and coffee. In 1905, the California Western Railroad was formed and a rail line was established from Fort Bragg to Willits where train connections could be made to San Francisco. The 1906 Earthquake resulted in a fire at the lumber mill that threatened the entire City. Brick buildings throughout the City were damaged, if not destroyed completely, and many frame homes were knocked off their piers. The fire burned the downtown area bordered by Franklin Street, Redwood Avenue and McPherson Street. Within 12 months following the earthquake, all downtown reconstruction was completed.

The earthquake brought prosperity to Fort Bragg as the mills furnished lumber for the rebuilding of San Francisco. By 1916, Fort Bragg had become a popular place to visit – and to settle.

Commercial fishing also played an important role in the formation of the economic base of Fort Bragg. Noyo Harbor was once a major commercial fishing port known for its quality fish products that were distributed to major metropolitan markets. In recent years, the fishing industry has declined and Fort Bragg's economic base has transitioned from "resource extraction" (i.e., timber and fishing industries) to a more service-oriented economy serving a regional coastal population of approximately 20,000 residents as well as hundreds of thousands of visitors each year.

CITY OF FORT BRAGG OVERVIEW
City of Fort Bragg ~ FY 2022/23 Proposed Budget

CITY GEOGRAPHY
The City of Fort Bragg is located approximately 165 miles north of San Francisco and 185 miles west of Sacramento on the scenic coast of Mendocino County. The City occupies 2.7 square miles. Census 2010 places the City's population at 7,273. Although it is quite small, Fort Bragg is the largest City on the coast between San Francisco and Eureka. The largest employment categories in the City include services, wholesale and retail trade, local government, public education, health care, tourism, and fishing. The mild climate and picturesque coastline make Fort Bragg a popular tourist and recreational area.

CITY AUTHORITY
Fort Bragg is a general law city under California state law and its rights, powers, privileges, authority, and functions are established through the State constitution. These statutory rights include the power to: sue and be sued; purchase, receive by gift or bequest and hold land, make contracts and purchases and hold personal property necessary to the exercise of its powers; manage, sell, lease, or otherwise dispose of its property as the interest of its inhabitants require; levy and collect taxes authorized by law and exercise such other and further powers as may be especially conferred by law or as may be necessarily implied from those expressed.

CITY COUNCIL
The voters elect members of the Fort Bragg City Council to serve overlapping four-year terms.

The Mayor is elected by and from the City Council for a two-year term. The Council sets policy and exercises the legislative authority of the City. The Council holds meetings on the second and fourth Mondays of each month and at such other times as necessary. Current City Council members and the dates upon which their respective terms expire are as follows:

Mayor Bernie Norvell December 2024
Vice Mayor Jessica Morsell-Haye December 2022
Councilmember Tess Albin-Smith December 2022
Councilmember Marcia Rafanan December 2022
Councilmember Lindy Peters December 2022

ADMINISTRATION AND MANAGEMENT
Fort Bragg operates under the Council-Manager form of government. The City Council appoints the City Manager who appoints other City staff and is charged with overseeing the City's daily operations. Several boards, commissions, and committees assist the City Council and administration in carrying out various aspects and functions of city government.

CITY SERVICES
The City provides a wide range of services to its residents including public safety services, construction and maintenance of streets and infrastructure, water service, community development, financial management and administrative services. Special Districts and Joint Power Authorities (JPAs) under the jurisdiction of the City provide emergency services, fire protection and wastewater treatment services. Other entities, not under the City's jurisdiction, that City of Fort Bragg ~ FY 2022/23 Proposed Budget

provide services to the City's population include the school district, hospital district, recreation district, harbor district, and other special districts.

FORT BRAGG MUNICIPAL IMPROVEMENT DISTRICT NO. 1
The members of the City Council serve concurrently as the Fort Bragg Municipal Improvement District No. 1 (MID) Board of Directors. The MID was formed in 1969 for the purpose of acquiring and constructing wastewater system improvements including construction of a wastewater treatment plant. The wastewater system serves approximately 3,000 residential and commercial connections in an area that includes the City of Fort Bragg and small areas of unincorporated territory on the periphery of the City. The MID Board of Directors meets on the same schedule as the City Council and can schedule special meetings as necessary. The MID is referred to within the Budget as the "Wastewater Enterprise Fund."

SUCCESSOR AGENCY TO FORT BRAGG REDEVELOPMENT AGENCY
From 1986 to 2012, the Fort Bragg Redevelopment Agency carried out redevelopment projects and promoted and supported economic development and affordable housing development in the redevelopment project area, an area which generally included properties within the Central Business District, commercial and industrial lands along Main Street, and the former Georgia Pacific mill site. In early 2012, the Redevelopment Agency was dissolved (as required by A.B. 1X26) and the City Council opted to serve as the Successor Agency to the Fort Bragg Redevelopment Agency. The Successor Agency is the legal entity tasked with winding down the affairs of the former Redevelopment Agency under the supervision of an Oversight Board. The Successor Agency plays a key day-to-day role in assuring that the existing debt service and other enforceable obligations of the former Redevelopment Agency are properly paid based upon a Recognized Obligation Payment Schedule (ROPS) approved by the Oversight Board and the State Department of Finance.

C. V. STARR COMMUNITY CENTER The C.V. Starr Community Center and Sigrid & Harry Spath Aquatic Facility (the "C.V. Starr Center") is a 43,000 square foot recreation and aquatic facility that was built by the Mendocino Coast Recreation and Parks District (MCRPD), a special district providing recreational services to residents of the Mendocino Coast. The facility includes an indoor water park with an eight-lane competition pool and diving board, a leisure pool with a water-slide and a 'lazy river', a cardiofitness center and weight room, and facilities for other fitness classes and enrichment activities.

In addition, the C.V. Starr Center has meeting rooms for parties and community events, and the grounds include a dog park, a skateboard park, petanque courts and picnic/BBQ facilities.

After opening the C.V. Starr Center in 2009, the MCRPD found itself challenged by insufficient operating revenues. In March 2012, the voters of Fort Bragg approved a special sales tax to provide funding for operation, maintenance and capital improvements at the C.V. Starr Center facility. The ballot measure required that ownership of the C.V. Starr Center be transferred to the City of Fort Bragg and that the MCRPD assign a portion of its property tax revenues to the City.

The facility reopened under City ownership in July 2012. The MCRPD now operates the facility under a contract with the City and the City provides continued financial and operational oversight.

City of Fort Bragg ~ FY 2022/23 Proposed Budget

City of Fort Bragg ~ FY 2022/23 Proposed Budget

As of June 30, 2022
Bernie Norvell Jessica Morsell-Haye
Mayor Vice Mayor

Tess Albin-Smith Marcia Rafanan Lindy Peters
Councilmember Councilmember Councilmember

David Spaur
Interim City Manager

DIRECTORY OF

ELECTED AND APPOINTED CITY OFFICIALS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

As of June 30, 2022

CITY COUNCIL
City Council Committees
Planning Commission

RESIDENTS OF CITY OF FORT BRAGG

ADMINISTRATION
• City Manager
• City Attorney
• Administrative Services
• City Clerk
• Information Technology
• Marketing & Promotions

PUBLIC WORKS
• Public Works
• Water
• Wastewater
• Facilities
• Fleet

FINANCE

COMMUNITY

DEVELOPMENT POLICE

MASTER ORANIZATIONAL CHART
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The annual operating budget is the primary short-term financial plan for the City and the Municipal Improvement District No. 1. The operating budget serves as the policy document to implement City Council goals and objectives. It sets forth estimates of resources available to fund services consistent with Council directives. Since no budget is an absolutely accurate predictor of future events, there must be some flexibility to make adjustments during the year, provided these adjustments do not materially alter the general intent of the City Council when adopting the budget. These guidelines are intended to provide that flexibility and to establish adequate controls through budget monitoring and periodic reporting to ensure that the overall distribution of resources achieves the results intended by the City Council.

Each year, as the budget is prepared, the City Council identifies priorities to provide guidance to management in preparing the budget. Through its legislative authority, the Council approves and adopts the budget by resolution. The City Manager is responsible for proposing to the City Council an annual operating budget and a capital projects budget which are consistent with the Council's service level priorities and sound business practices. The City Manager is also responsible for establishing a system for the preparation, execution, and control of the budget which provides reasonable assurances that the intent of Council policies is met. The Finance Director is responsible for providing periodic budget status reports to the City Manager, the City Council and Department Heads to facilitate control and compliance with the budget. Department Heads are responsible for monitoring their respective budgets for compliance with the intent of Council priorities and for ensuring that appropriations for their departments are not exceeded.

1. Basis of Budgeting. The City's operating and capital projects budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are considered budgetary expenditures in the year of the commitment to purchase, and capital project expenditures are budgeted on a project length basis rather than a fiscal year. For all governmental funds, revenues and expenditures are budgeted on a modified accrual basis. For all proprietary funds, revenues and expenditures are budgeted on an accrual basis.

2. Budget Calendar. A budget preparation calendar is provided to Department Heads and to the City Council at the beginning of the budget process each year. The calendar sets forth dates for the review of service level priorities by the City Council at a mid-year budget workshop and a presentation of the City Manager's Adopted budget to the City Council, which should be adopted no later than the end of June.

3. Form and Content of the Adopted and Adopted Budget. The Adopted and adopted Budget should be presented in a form which is sufficient to allow the City Council to determine and review:
• Provision of City Council priorities;
• Projected revenues by major category;
• Operating expenditures by department or program, and by fund; • Staffing by department;
• Service levels;
• Statements of objectives and accomplishments;
• Recommendations for policy changes;
• Capital improvement appropriations by project.

BUDGET GUIDELINES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The Adopted and adopted Budget should provide a comparison with the preceding year's actual results and current year's projected results for each category of revenue and expenditure shown in the budget. Descriptions of service levels to be provided under the Adopted and adopted Budget will be included along with statements of services reduced or eliminated and services improved or added, as compared to the current year.

4. City Council's Budget Principles. Each year, the Adopted and adopted Budget is developed in accordance with the Council's established budget principles:
• Most likely revenue projections should be incorporated into the budget. • The City strives to balance the operating budgets of each of the City's three major funds (General Fund, Water Enterprise, and Wastewater Enterprise) such that anticipated revenues meet projected expenditure obligations.
• Recurring annual expenditures (e.g., personnel costs, supplies, equipment, operating and maintenance costs, debt service, legal costs, audit costs, etc.) should be funded with on-going annual revenues and should not rely upon one-time revenues, reserves, or the use of unassigned fund balances.
• If unassigned fund balances are expended, uses should be restricted to funding onetime expenditures, not on-going operations. • Expenditures should be contained to the maximum extent possible. To the extent that line item cost increases occur, they should be limited to purchases necessary to support existing operations, essential capital improvement projects, mandated costs, and the City's contractual obligations.
• Each year, the budget should be prepared in accordance with the City's Fund Balance & Reserve policies and the Council should allocate specific amounts to each of the City's established reserves.

5. Adoption of the Budget. The City Council should adopt the budget by resolution no later than June 30 of the previous fiscal year, setting forth the amount of appropriations and authority of the City Manager to administer the adopted budget. Unless otherwise directed, all funds that are presented in the operating budget document are subject to appropriation.

6. Budget Amendments by the City Council. The City Council may from time to time approve expenditures and identify funding sources not provided for in the adopted budget including those expenditures funded through unassigned fund balances.

7. Automatic Adjustments and Re-appropriations. Outstanding encumbrances at prior fiscal year-end will automatically be carried over to current year's budgets. Unspent appropriations that are authorized and funded by grant revenues from prior fiscal year will automatically be carried over to current year's budget. Incomplete multiple year project balances will be automatically carried over to the current year's budget.

8. Budget Monitoring and Reporting. The Finance Department will prepare a monthly budget report including actual expenditures and encumbrances for distribution to the City Manager and Department Heads to facilitate monitoring of the budget. The Finance Department will prepare a first-quarter and mid-year budget status report for presentation to the City Council.

At a minimum, the report will include the status of General Fund revenues and expenditures, and Water, Wastewater, and C.V. Starr enterprise fund revenues and expenditures.

9. Reserves. Various unallocated reserves are established in the City's funds to protect the City in emergencies and times of economic uncertainty, and to finance unforeseen opportunities and/or requirements. Reserve policies for various funds are described in detail in the section entitled "Fiscal Policies."

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The City of Fort Bragg's fiscal policies are established to ensure that the finances of the City and the Municipal Improvement District No. 1 (collectively referred to as "the City") are managed in a manner that will:
 Maintain a financially viable local government that provides adequate levels of municipal services to its citizens.
 Provide for financial flexibility in order to adapt to local and regional economic changes.  Preserve and enhance the sound fiscal condition of the City.

1. Operating Budget Policies
a. The City Council/MID Board should adopt a balanced budget by June 30 of each year. The base operating budget will be developed by realistically projecting revenues and expenditures for the current and forthcoming fiscal year. During the annual budget development process, the existing base budget will be thoroughly examined to assure cost effectiveness of the services or programs provided. The annual operating budget will include the cost of operations of new capital projects. The City's operating budget will be prepared on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are considered budgetary expenditures in the year of the commitment to purchase and expenditures for multi-year capital projects are budgeted in their entirety in the year construction commences. Remaining expenditures are carried forward in subsequent years. b. The City will avoid balancing the current budget at the expense of future budgets unless the use of unassigned fund balance and/or reserves is expressly authorized by the City Council. c. The City will develop and maintain financial management programs to assure its long-term ability to pay the costs necessary to provide the services required by its citizens.

2. Budgetary Controls
a. Adopted budget appropriations should not be adjusted subsequently unless specifically authorized by a Council/District resolution identifying the fund from which the appropriation is to be made, the amount of the appropriation and an account number. b. The City Manager has the authority to approve transfers of budget appropriations within any fund budget provided:
• Both line items are budgeted; and
• Transfers from salary accounts and benefit accounts to non-personnel accounts are not allowed.
c. Interfund transfers require Council/District approval. d. The City Manager may review and approve change orders in accordance with established purchasing procedures. The City Manager may approve purchase orders for budgeted expenditures and un-budgeted purchase orders in accordance with established purchasing procedures.
e. Annually, a report estimating the year-end results will be presented to the Council following the close of the fiscal year being reported. The report will compare revenue estimates with actual collections, appropriations budgets with actual expenditures and revenues to

FISCAL POLICIES

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

expenditures in major budgetary funds. This report will be followed by a presentation of the Comprehensive Annual Financial Report to the Council before January 31. f. Semi-annually, at a mid-year budget session, there will be a comprehensive review of the operations to date in comparison to the existing budget. Projections of revenues and expenditures through the end of the fiscal year will be submitted to the City Council at the midyear budget session.

3. Revenue Policies
a. The City strives to maintain a diversified and stable revenue stream to avoid over-reliance on any one revenue source.
b. The City estimates its annual revenues by an objective, analytical process utilizing trends, judgment, and statistical analysis as appropriate. Revenue estimates are to be realistic and sensitive to both local and regional economic conditions. c. The City maximizes the availability of revenue proceeds through responsible collection and auditing of amounts owed to the City.
d. The City actively pursues federal, State, and other grant opportunities when deemed appropriate. Before accepting any grant, the City should consider the implications in terms of on-going obligations that will be required in connection with acceptance of the grant. e. The City seeks reimbursements for mandated costs whenever possible. f. User fees are reviewed annually for potential adjustments to recover the full cost of services provided, except when the City Council determines that a subsidy is in the public interest. The City's user fee policy:
• Imposes user fees when appropriate to capture the cost for the delivery of services and goods; and
• Attempts to establish levels of cost recovery that support all costs including administrative overhead and depreciation; and
• Determines the minimum frequency of user fee reviews. g. General Fund revenues are pooled and allocated according to Council goals and established policy.
h. Grant revenue is recognized when eligible expenditures have been incurred against a fully executed grant agreement. Such accrued revenue is considered available even if it is not received within 60 days of year-end. This method provides improved reporting and control at the program level because it appropriately matches funding sources and uses. i. Enterprise funds and other legally-restricted sources are allocated according to their respective special purpose.
j. One-time revenues should be used for one-time expenditures only, including capital outlay and reserves.

4. Expenditure Policies
a. The City strives to maintain levels of service, as determined by the City Council, to provide for the public well-being and safety of the residents of the community. b. The City strives to maintain employee benefits and salaries at competitive levels with local labor markets.
c. Fixed assets should be maintained and replaced as necessary and deferred maintenance should be minimized. A facilities maintenance reserve is maintained to provide for timely maintenance and replacement of fixed assets.
d. The City should use technology and productivity enhancements that are cost effective and help to reduce or avoid increased personnel costs.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

e. Surplus fund balances (and working capital in enterprise funds) may be used to increase reserves, fund Capital Improvement Projects, fund capital outlay or be carried forward to fund one-time special project/program expenses.

5. Utility Rates and Fees
a. Water and sewer utility customer rates and fees are reviewed and adjusted annually, if necessary.
b. All utility enterprise funds are operated in a manner similar to private enterprise. As such, the City Council sets fees and user charges for each utility fund at a level that fully supports the total direct and indirect cost of the activity, including depreciation of assets, overhead charges, and reserves for unanticipated expenses and capital projects.

6. Capital Budget Policies
a. The City has a Five-Year Capital Improvement Program (CIP) that is designed to construct and maintain infrastructure to support existing residences and businesses and future development. The CIP identifies the estimated cost of each project including administration, design, development and implementation, and operating costs once the projects are completed. The CIP identifies potential funding sources for each Adopted capital project.

When appropriate, the CIP identifies outside funding sources such as State and federal funds and leverages these funding sources with public money to help meet the highest priority community needs.
b. The funding for the first year of each five-year CIP is appropriated as a component of the annual operating budget.
c. Funding for future projects identified in the five-year CIP which has not been secured or legally authorized is subject to change.

7. Debt Management Policy
a. The City Council has adopted guidelines and policies intended to guide decisions related to debt issued by the City. Debt issuance should be evaluated on a case-by-case basis and considered within the context of the City's overall capital structure and policy objectives.

Adherence to the debt management policy is essential to ensure that the City maintains a sound debt position and to protect the credit quality of its debt obligations. The full text of the City's Debt Management Policy is presented in the Debt Service section of the budget. Key components of the City's Debt Management Policy are:
• The City will limit long-term debt to only those capital improvements or long-term liabilities that cannot be financed from current revenue sources.
• The City will utilize debt financing for projects which have a useful life that can reasonably be expected to exceed the period of debt service for the project. • The City will strive to maintain or improve the City's bond rating. b. The City may utilize interfund loans rather than outside debt to meet short-term cash flow needs. If interfund loans are undertaken, formal promissory notes are prepared and interest charged as required by the City's Interfund Loan Policy.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

8. Interfund Loan Policy
a. City Council approval by resolution is required for any interfund loan. All interfund loans must be documented by formal agreements that specify the terms and conditions. b. All interfund loans are interest bearing and the amount of interest to be paid on the loan must be at least equal to the investment earnings the fund making the loan would have received had the loan not occurred.
c. The term of an interfund loan is established by the City Council and typically should not exceed five years.
d. The interfund loan is callable by the lending fund if needed to ensure that the lending fund has sufficient operating funds.
e. All interfund loan proposals require a feasibility analysis demonstrating that:
• The borrowing fund has the capacity to repay the debt; • The lending fund has the capacity to lend the funds, beyond its own operating and capital needs; and
• The loan does not violate any debt covenants or other provisions of the borrowing and lending funds.
f. As part of the due diligence, each interfund loan proposal must demonstrate that the loan can be repaid. It is important to avoid masking an operating deficiency in one fund with an interfund loan from another fund. This is the centerpiece of the policy, which seeks to avoid loans that fail the fundamental test of performance (repayment) under the contract. • If a feasibility analysis does not show that the loan can be safely repaid, the appropriate recommendation may be a revenue enhancement or another correction of the underlying reason for the funding deficiency. An alternative financing recommendation may be a fund balance donation.
f. There is no prepayment penalty on an interfund loan. Interest is to be paid quarterly, and principle payments are subject to the feasibility analysis cash projections. g. The interest expense paid on interfund loans is to be treated as user fund expense, while the interest income is to be treated as interest revenue to the loaning fund.

9. Fund Balance & Reserve Policies
a. The City's Fund Balance & Reserve policies are intended to ensure the continued financial well-being of the City by planning for unanticipated emergency and contingency needs. The City Council periodically reviews and updates these guidelines to ensure that the City has sufficient resources to adequately provide for emergencies, economic uncertainties, unforeseen operating or capital needs, economic development opportunities, and cash flow requirements.
b. The City Council may direct any portion of its General Fund, Water Enterprise Fund or Wastewater Enterprise Fund revenue that is not required to balance the annual operating budget to one or more of the following reserves, subject to consistency with the allowable uses of the enterprise funds.
c. General Fund Reserves.
• General Fund Operating Reserve: The City will maintain an unrestricted fund balance of at least 15% to 20% of the annual operating expenditures in the General Fund, as an "Operating Reserve" to ensure liquidity of the General Fund and to ensure adequate cash flow throughout the year. This reserve is necessary to accommodate fluctuations in the timing of expenditures and the receipt of revenues. The reserve is committed fund balance

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

and maybe tapped into, with Council authorization, for unforeseen operating or capital needs. In FY 2022/23 the reserve is funded at 20%.
• Litigation Reserve: The City will maintain a Litigation Reserve to cover unforeseen legal expenses, including unbudgeted legal, defense and settlement costs that are not covered by the City's insurance pool. The Litigation Reserve is replenished each year through the budget process. The City Manager shall approve all charges against this reserve and, on a quarterly basis, the Finance Director shall report to the City Council the amount and types of litigation that have been funded by the Litigation Reserve. In FY2021/22 the reserve is funded at $200k.
• Recession Reserve: The General Fund will maintain a Recession Reserve for the purpose of stabilizing the delivery of City services during periods of severe operational budget deficits and to mitigate the effects of major unforeseen changes in revenues and/or expenditures as typically experienced during times of recession. The fund is established at an amount equivalent to 5% of the City's annual operating budget. City Council approval is required before expending any portion of this committed fund balance. d. Water, Wastewater (Municipal Improvement District #1) and C.V. Starr Enterprise Capital Reserves. The City maintains capital reserves in the Water, Wastewater and C.V Starr Enterprise Funds to provide for future capital projects and unanticipated emergencies.

Each year, all unrestricted net position in the Enterprise Funds in excess of 25% of the prior year's operating expenditures is transferred to these reserves. The 25% that is retained in the Enterprise Fund functions as an Operating Reserve.
• Recession Reserve: The Water Enterprise and the Wastewater Enterprise will each maintain a Recession Reserve for the purpose of stabilizing the delivery of City services during periods of severe operational budget deficits and to mitigate the effects of major unforeseen changes in revenues and/or expenditures as typically experienced during times of recession. The fund is established at an amount equivalent to 5% of each Enterprise Fund's operating budget. City Council approval is required before expending any portion of this committed net position.
e. Internal Service Fund Reserves. Each year, the unrestricted net position in each of the City's Internal Service Funds is held in reserve within the Internal Service Fund. These reserves are intended to help pre-fund large purchases and repairs and avoid big annual swings in funding needs.
• Facility Repair & Maintenance Reserve. The reserve is funded based on an analysis of expected repairs and useful lives of the buildings and equipment funded by the Facilities Repair & Maintenance Internal Service Fund. A ten-year Facilities Maintenance & Repair Plan which provides guidance for establishing required annual contributions to the Facility Maintenance & Repair reserve has been established. The plan is adjusted annually as part of the budget preparation process.
• Fleet & Equipment Services Reserve. The City maintains a reserve in the Fleet & Equipment Services Internal Service Fund to enable the timely replacement of vehicles and depreciable equipment. A ten-year Vehicle and Equipment Replacement Plan has been established.
• Information Technology (I.T.) Reserve. The City maintains a reserve in the Technology Maintenance & Replacement Internal Service fund to enable the timely replacement of depreciable equipment. A five-year I.T. long-term plan has been established. f. Debt Service Reserves. Reserve levels for Debt Service Funds are established and maintained as prescribed by the bond covenants authorized at the time of debt issuance.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

g. Unfunded Liabilities. Prepayments made against unfunded liabilities may lower the unfunded liability and result in significant savings in the long term. Each year 50% of any realized year end surplus shall be applied to the City's two unfunded liabilities. Priority shall be given to the CalPERS plan unfunded liability over the OPEB plan unfunded liability. Any payment of unfunded liabilities shall be considered a one-time payment and will not be included in the calculation of the City's operating deficit/surplus:
• CalPERS. The City continues to accrue liabilities relating to the California Public Employees' Retirement System pension plan provided to its employees. • OPEB Trust Fund. The City maintains an irrevocable trust fund for retiree medical benefit obligations.

10. Investment Policy
The complete investment policy is presented at the end of the Policy Section of the City's Budget. Key components of the City's investment policy are:
a. The Finance Director/City Treasurer annually renders an investment policy for City Council's review and modification as appropriate. The review must take place at a public meeting and the policy must be adopted by resolution of the City Council. b. City funds and the investment portfolio should be managed in a prudent and diligent manner with emphasis on safety, liquidity, and yield, in that order. Reports on the City's investment portfolio and cash position are developed by the Finance Director/City Treasurer and reviewed by the Finance & Administration Committee and the City Council at first quarter, mid-year and fiscal year end.
c. Generally Accepted Accounting Principles require that differences between the costs of the investment portfolio and the fair value of the securities be recognized as income or losses in a government's annual financial report. These variances should not be considered as budgetary resources or uses of resources unless the securities are sold before maturity or the values of the investments are permanently impaired.

11. Accounting, Auditing, and Financial Reporting Policies a. The City's accounting and financial reporting systems are maintained in conformance with generally accepted accounting principles as they apply to governmental accounting. b. An annual audit will be performed by an independent public accounting firm with the subsequent issuance of a Comprehensive Annual Financial Report, within seven months of the close of the previous fiscal year.
c. Periodic financial and status reports will be submitted to the City Council and be made available to the public.

12. Asset Forfeiture Expenditure Policy
a. Asset Forfeiture Discretionary Funds
• Expenditures under $5,000 may be decided by the Police Chief. • Expenditures of between $5,000 and $10,000 require approval of the City Manager.

Expenditures over $10,000 require approval of the City Council and the Asset Forfeiture budget will be amended at the time of approval.
• Staff reports to the City Council will be provided on significant Asset Forfeiture expenditures identified by the City Manager.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

b. Asset Forfeiture Education Funds
• Expenditures must meet the mandated education and prevention guidelines. c. Year-End Reporting
• Prior to the close-out of each fiscal year, a report listing all Asset Forfeiture Discretionary and Education Fund expenditures will be brought forward to the Finance & Administration Committee for review. Line item budget appropriations, as necessary, will be agenized for City Council action.

13. Payment of Employee Compensation Costs
a. City Employee Compensation. The City strives to attract and retain the best talent to manage the City and serve Fort Bragg residents and businesses. The City accomplishes this by offering attractive and competitive salaries and benefits that reflect the value of the various jobs, the duties, level and responsibility of each position, and the fiscal condition of the City.

Compensation information specific to each employee group is summarized below. b. City Manager Duties and Compensation. The City of Fort Bragg is a general law city with a Council-Manager form of government. Fort Bragg Municipal Code Section 2.16.050 establishes that the City Council is the appointing authority for the City Manager and City Attorney. All other positions are appointed by the City Manager. The City Manager's terms of employment, including compensation and benefits, are established by an employment agreement authorized by Council resolution.
c. City Attorney Services. The City Attorney is not a City employee. City Attorney services are provided in accordance with a professional services agreement. Funds for City Attorney services are included in the Administrative Services Department. d. Executive Management (Department Head) and Mid-Management Compensation. The terms of employment for Executive and Mid-Management classifications, including compensation and benefits, are established by Council resolution. e. Non-Management Employee Compensation. The City of Fort Bragg has two nonmanagement employee groups. • The Fort Bragg Employee Organization (FBEO) represents all City non-exempt employees other than Safety Employees and Confidential and Non-Bargaining employees. The FBEO is affiliated with the Service Employees International Union (SEIU). Compensation and benefits are negotiated and documented in a Memorandum of Understanding (MOU).
• The City's Safety Employees are represented by the Fort Bragg Police Association (FBPA), an unaffiliated employee organization. Compensation and benefits are negotiated and documented in a Memorandum of Understanding (MOU). f. Compensation and benefits of employees not represented by the FBEO and FBPA are established by Council resolution.
g. Additional Sources of Information. The current employment agreements, resolutions and MOUs noted above can be found on the City's website.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

14. Pension Policy

1. Actuarially Determined Contributions: Each fiscal year, the City will contribute to CalPERS the amount determined by CalPERS actuaries to be the minimum required employer contribution for that year. The minimum contribution consists of two components, normal cost and unfunded accrued liability (UAL). The normal cost is expressed as a rate that is applied to pensionable payroll costs and reflects the cost of pension benefits earned by employees in the current fiscal year. The UAL payment is a flat dollar amount that represents a portion of the cost of past benefits earned by employees, but for which, because of deviations in actual experience and changes in assumptions about investment performance, the normal cost rates established for those prior years has been determined to be insufficient to provide the promised retirement benefit. The CalPERS actuaries recalculate the total UAL each year and an updated multi-year amortization schedule is provided to show the projected annual minimum payments.

2. Annual UAL Prepayment: CalPERS offers the option to make monthly payments on the UAL or prepay the entire annual amount at a discounted level by the end of July. The City will prepay its annual obligation each year to achieve budgetary savings.

3. Section 115 Pension Trust: The City will establish and maintain a pension stabilization fund in the form of a Section 115 Pension Trust. The targeted funding level for this fund is the City Council policy that fifty percent (50%) of any surplus in the General Fund at year-end will be used to reduce the current UAL. Assets in the Section 115 Pension Trust may be used only for pension related costs and at the direction of the City Council. Once the targeted funding level is reached, the earnings on the assets in the Trust may be applied to offset a portion of the City’s annual pension contributions to CalPERS or make additional discretionary payments to CalPERS.

4. Targeted Funding Level: The City’s goal is to achieve and maintain a funded status for each of its plans of between 90% and 100%. A funded status of 100% signifies that the City’s pension assets with CalPERS match its accrued liabilities.

5. Additional Discretionary Payments: CalPERS allows member agencies to make additional discretionary payments at any time and in any amount, which would serve to reduce the UAL and future required contributions. The City will consider this option in the context of its annual evaluation of reserve levels and budgetary requirements.

6. Transparency and Reporting: Funding of the City’s pension plans should be transparent to vested parties including plan participants, annuitants, the City Council and Fort Bragg residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the annual actuarial valuations for the City’s CalPERS plans. b. The City’s Comprehensive Annual Financial Report shall be published on the City’s website. This report includes information on the City’s annual contributions to the pension system and their funded status.
c. The City’s annual operating budget shall include the City’s contributions to CalPERS.

7. Pension Obligation Bonds (POBs): POBs or a similar debt issuance such as Lease Revenue Bonds (LRBs) used to make payments towards the City’s UAL are tools that can be used to provide an additional discretionary payment to CalPERS upon the determination that the cost to borrow the funds for the payment is less than continuing to make the projected prescribed UAL payments at the current discount rate. If the City issues POBs or LRBs, the following guidelines will apply:
a. Expert advice and analysis by actuaries and municipal advisors will be utilized to stress test the risk of a market crash and threshold at which the City would be worse off issuing POBs or LRBs versus not.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

b. The interest rate on the POBs or LRBs shall be at least 2.5% less than the current CalPERS discount rate.
c. The final maturity date on the POBs or LRBs will be no more than the current term of the UAL.
d. The POBs or LRBs structure will contain an early call provision.

8. Review of Funding Policy: Funding a defined pension plan requires a long-term horizon.

As such, the City will review this policy at least every five years to determine if changes to this policy are needed to ensure adequate resources are being funding the UAL.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

INTRODUCTION
The City Council of the City of Fort Bragg recognizes its responsibility to properly direct the investments of funds for the City and its component units. The purpose of this Investment Policy is to provide guidelines for the investment of funds based upon prudent cash management practices and in conformity with all applicable statutes. Related activities which comprise good cash management include accurate cash projections, the expeditious collection of revenue, cost-effective banking relations, and the control of disbursements.

SCOPE
This policy covers the investment activities of all contingency reserves and inactive cash under the direct authority of the City of Fort Bragg and Municipal Improvement District #1. Policy statements outlined in this document focus on the City of Fort Bragg's pooled funds but also apply to all other funds under the City Treasurer's span of control unless exempted by resolution or statute. Investments for the City and its component units will be made on a pooled basis including, but not limited to, the City of Fort Bragg, Municipal Improvement District #1 and Fort Bragg Redevelopment Successor Agency. The City's Comprehensive Annual Financial Report identifies the fund types involved as follows:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Trust Funds
• Miscellaneous Special Funds
• Any new funds created by the City Council unless specifically exempted.

Investments of bond proceeds will be held separately when required by the bond indentures or when necessary to meet arbitrage regulations. If allowed by the bond indentures, or if the arbitrage regulations do not apply, investments of bond proceeds will be held as part of the pooled investments.

PRUDENCE
Section 53600.3 of the California Government Code identifies as trustees those persons authorized to make investment decisions on behalf of a local agency. As a trustee, the standard of prudence to be used shall be the "prudent investor" standard and shall be applied in the context of managing the overall portfolio. The trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

CITY OF FORT BRAGG

STATEMENT OF INVESTMENT POLICY

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

It is the policy of the City Council that investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk changes or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

INVESTMENT OBJECTIVES
Section 53600.5 of the California Government Code outlines the primary objectives of a trustee investing public money. The primary objectives, in order of priority, of the City's investment activities shall be:
• Statutory compliance. To assure compliance with all federal, state, and local laws governing the investment of monies.
• Safety. Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio.
• Liquidity. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. • Return on investment. Investment return becomes a consideration only after the basic requirements of safety and liquidity have been met. The City Treasurer shall attempt to realize a yield on investments consistent with California statutes and the City's Investment Policy.

The City Treasurer shall strive to maintain the level of investment of all contingency reserves and inactive funds as close to one hundred percent (100%) as possible. While the objectives of safety and liquidity must first be met, it is recognized that portfolio assets represent a potential source of significant revenues.

It is to the benefit of the City that these assets be managed to realize a yield on investments consistent with California statutes and the City's Investment Policy.

DUTIES AND RESPONSIBILITIES
The management of inactive cash and the investment of funds is the responsibility of the City Treasurer (or his/her designee) as directed by the City Council. Under the authority granted by the City Council, no person may engage in an investment transaction covered by the terms of this policy unless directed by the City Treasurer or designee.

In the execution of this delegated authority, the City Treasurer may establish accounts with qualified financial institutions and brokers/dealers for the purpose of effecting investment transactions in accordance with this policy. In selecting financial institutions, the creditworthiness of institutions shall be considered and the City Treasurer shall conduct a comprehensive review of prospective depository's credit characteristics and financial history.

A written copy of this Investment Policy shall be presented to any person offering to engage in an investment transaction with the City. Investments shall only be made with those business organizations (including money market mutual funds and local government investment pools), which have provided the City certification of having received and reviewed the City's Investment Policy.

The City Treasurer may designate in writing a Deputy City Treasurer who, in the absence of the City Treasurer, will assume the City Treasurer's duties and responsibilities. The City Treasurer shall retain full responsibility for all transactions undertaken under the terms of this policy.

Ethic and Conflicts of Interest

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

All participants in the City's investment process shall seek to act responsibly as custodians of the public trust. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment recommendations and decisions. Investment officials and employees shall make all disclosures appropriate under the Fair Political Practices Act and may seek the advice of the City Attorney and the Fair Political Practices Commission whenever there is a question of personal financial or investment positions that could represent potential conflicts of interest.

COLLATERALIZATION
When required by California statute or this Investment Policy, any investment capable of being collateralized, shall be collateralized by the required amounts imposed by law. To give greater security to the City's investments, when an investment is collateralized and not perfected under existing law, an attempt to perfect the collateralization should be made.

AUTHORIZED INVESTMENTS
The City Treasurer may invest City funds in the following instruments as specified in the California Government Code Section 53601 and as further limited in this policy.

Federally insured bank/ time Certificates of Deposit (CD's): Certificates of Deposit shall not exceed five years to maturity. Investments in Certificates of Deposit and Checking Accounts shall be fully insured up to the amount allowed per account by the Federal Deposit Insurance Corporation or the National Credit Union Administration. Furthermore, the combined investments in Certificates of Deposit and Prime Commercial Paper, if a private sector entity is used, shall not exceed, in total, more than fifty percent (50%) of the portfolio.

U.S. Treasury Bills, Notes and Bonds: Obligations of the U.S. Government and its agencies or those for which the full faith and credit of the United States are pledged for payment of principal and interest. The maximum maturity length shall not exceed five years.

General Obligations of any State or local political subdivision: Must be rated A.A./Aa/A.A. or higher by one of the following: Standard & Poor's, Moody's or Fitch.

Repurchase Agreements: Repurchase Agreements with a maximum maturity of one year.

Repurchase Agreements may not exceed five percent 5% of the portfolio. The market value of securities that underlay a Repurchase Agreement shall be valued at one hundred two percent 102% or greater of the funds borrowed against those securities.

Money Market/Mutual Funds: Money Market or Mutual Fund investments holding only U.S.

Treasury and Government Agency obligations and cash.

Local Agency Investment Fund (LAIF): Local Agency Investment Fund (LAIF) of the State of California. Investments will be made in accordance with the laws and regulations governing those Funds.

Investment Trust of California (CalTRUST): Investments in CalTRUST will be made in accordance with the laws and regulations governing those funds.

New Securities: New types of securities authorized by California law, but which are not currently allowed by this investment policy, must first be approved by the City Council.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

UNAUTHORIZED INVESTMENTS / INVESTMENT ACTIVITIES
Instruments not expressly authorized are prohibited. In accordance with California Government Code Section 53601.6, investment in inverse floaters, range notes or mortgage derived interest-only strips is prohibited, as are derivatives. In addition, and more generally, investments are further restricted as follows:
• No investment will be made in any security that could result in zero interest accrual if held to maturity.
• No investment will be made that could cause the portfolio to be leveraged. • Purchases of investments on margin will not be made.

INVESTMENT STRATEGY
Pooled Investments: A buy and hold strategy will generally be followed; that is, investments once made will usually be held until maturity. A buy and hold strategy will result in unrealized gains or losses as market interest rates fall or rise from the coupon rate of the investment. Unrealized gains or losses, however, will diminish as the maturity dates of the investments are approached or as market interest rates move closer to the coupon rate of the investment. A buy and hold strategy requires that the portfolio be kept sufficiently liquid to preclude the undesired sale of investments prior to maturity. Occasionally, the City Treasurer may find it advantageous to sell an investment prior to maturity, but this should only be on an exception basis and only when it is in the best interest of the City.

Investments Held Separately: Investments held separately for bond proceeds will follow the trust indenture for each issue.

DIVERSIFICATION The portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. In addition to the limitations on specific security types indicated in this Investment Policy, and with the exception of U.S. Treasury/Federal agency securities and authorized pools, no more than five percent 5% of the City's portfolio will be placed with any single issuer.

INTERNAL CONTROLS
The City Manager and the Finance Director are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse.

The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Due to the need to preserve segregation of duties and check and balance, all outgoing wire transfers shall be confirmed by the bank with a second person prior to the completion of the transfer.

REPORTING
Sections 53607 and 53646 of the California Government Code allow the City Council, at its discretion, to require reports meeting the standards set forth in these sections, as well as any additional information desired. A report for pooled investments will be made to the City Council at the mid-year budget review session and at a public meeting following the close of the fiscal year.

FISCAL POLICIES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

INVESTMENT POLICY REVIEW AND ADOPTION
Section 53646(a) (2) of the California Government Code allows the City Treasurer to render to the City Council and the Finance Committee a statement of investment policy, and recommends that one be presented each year. Therefore, the City's investment policy and any modifications thereto shall be considered no less often than annually at a public meeting. Adoption of the investment policy and any changes must be made by resolution of the City Council.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

CITY OF FORT BRAGG
FY 2022/23

PROPOSED BUDGET

SUMMARY SCHEDULES

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Audited Projected Projected
Fund Fund Balance Projected Estimated Net Fund Balance Net Fund Balance No. Fund Type/Name at 06/30/21 Revenue Expenditures Transfers at 06/30/22 Revenue Appropriations Transfers at 06/30/23 110110 Unassigned 1,498,331 $ 10,480,063 $ 10,389,873 $ (824,728) 763,793 $ 11,130,495 $ 10,932,684 (248,238) $ 713,366 $ Nonspendable 6,536 - - - 6,536 - - 6,536Commited- 115 Trust 50% PY Surplus 750,000 750,000 750,000 110 GF Operating Reserve- Committed 1,989,419 - - - 1,989,419 - - 197,335 2,186,754 112 GF Recession Reserve 489,929 - - - 489,929 - - 50,903 540,832 114 GF Litigation Reserve 200,000 - - - 200,000 - - 200,000 Total General Fund excluding Commited Funds 4,184,215 10,480,063 10,389,873 (74,728) 3,449,677 11,130,495 10,932,684 - 3,647,488 116 General Plan Maint Fee Fund 207,740 1,500 30,000 - 179,240 2,800 30,000 - 152,040 117 Housing Trust Funds 76,606 300 - - 76,906 500 - - 77,406 120 Parking 34,541 100 - - 34,641 250 - (3,450) 31,441
122 Parkland Monitoring/Reporting 127,579 560 - - 128,139 1,600 - - 129,739 124 Tobacco License Fee 16,849 2,700 - - 19,549 3,000 - - 22,549 125 State Disability Access Fee 12,109 3,000 (155) - 15,264 3,270 (168) - 18,702 139 Cops Ab1913 Allocation - 155,947 155,947 - - 162,000 160,000 - 2,000 167 Asset Forfeiture 394,953 50,321 35,000 (40,000) 370,274 55,800 14,800 - 411,274 176 RDA Housing Successor 183,127 2,500 - - 185,627 5,500 - - 191,127190 Construction/Demolition Ord Fees 598 - - - 598 - - - 598 220 Waste Mgt Community Benefit Pymt 269 - - - 269 - - - 269 221 Highw ay User Tax (Gas Tax) 54,668 214,596 269,264 - - 240,494 240,494 - -222 RMRA - Gas Tax - 253,459 153,459 (100,000) - 768,886 168,886 (600,000) - 223 STP D1 MCOG Streets/Hw y ** 6,916 - - - 6,916 206,405 - (206,405) 6,916 230 Traffic & Safety - 3,200 3,200 - - 4,100 4,100 - -
250 Special Sales Tax-Street Repair 2,496,346 1,008,000 88,788 (1,874,347) 1,541,211 1,113,000 70,720 (1,270,595) 1,312,896 280 Fire Equipment Fund 158,173 53,935 - - 212,108 56,806 - - 268,914285 OJ Park Maintenance Fund 2,110 - - - 2,110 - - - 2,110 Total Special Rev Funds, Restricted 3,772,584 1,750,118 735,503 (2,014,347) 2,772,852 2,624,411 688,832 (2,080,450) 2,627,981 131 CDBG Unclassified Program Income 7,028 - - - 7,028 - - - 7,028162 CDBG Program Income Account 25,256 57,000 - (82,256) - 78,337 - (78,337) - 314 MCOG OWP 1,613 - - - 1,613 219,062 60,512 (158,550) 1,613315 2014 CDBG Grants 24,188 - - - 24,188 - - - 24,188 319 Department of Water Resources - - - - - 4,055,000 - (4,055,000) - 326 HCD HOME Grant - 2013 (TBRA Program) - - - - - - - - - 329 State Grants 221,829 43,877 (20,259) 157,693 247,533 247,533 (177,952) (20,259)330 Federal Grants - 274,425 - (204,600) 69,825 227,725 12,809 (160,050) 124,691 332 Other Grants - - - - - - - - -
333 2017 CDBG Grants - 100,085 114,110 - (14,025) 2,991,010 3,114,417 - (137,432) 334 2020 CDBG Grants - 2,059,880 2,142,136 82,256 - 1,868,544 1,946,881 78,337 - 335 CDBG COVID Grants - 178,747 178,747 - - 204,264 204,264 - - 336 ARPA Funds - 872,081 - 872,081 872,081 - - 1,744,162 Total Special Rev Funds, Grants 58,085 3,764,048 2,478,870 (224,859) 1,118,403 10,763,556 5,586,416 (4,551,552) 1,743,991 FY 2022/23 Budget
City of Fort Bragg FY2022/23 Summary of Revenue, Expenditures & Fund Balance FY 2022/23 BUDGET FY 2021/22
General Fund
Special Revenue Funds, Restricted***
Special Revenue Funds, Grants***

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Audited Projected Projected
Fund Fund Balance Projected Estimated Net Fund Balance Net Fund Balance No. Fund Type/Name at 06/30/21 Revenue Expenditures Transfers at 06/30/22 Revenue Appropriations Transfers at 06/30/23 405 Street Resurfacing & Structural Repair Projects - - - - - - - - - 407 Coastal Trail Construction 13,408 - - - 13,408 - - - 13,408 415 Central Coastal Trail Construction (18,675) - - - (18,675) - - - (18,675) 419 Bainbridge Park Improvements (Wiggly Giggly) - - - - - - 200,000 200,000 - 420 Maple Street Storm Drain rehabilitation (215,545) - 1,501,802 1,717,347 - - - - - 421 2022 Street Resurfacing & Structural Repair Pro - - 257,000 257,000 - - 2,600,000 2,600,000 - 423 Tow n Hall Bathroom and Window s - - - - - - 130,000 130,000 - 424 Main Street Fire Station Rehab - - - - - 203,702 203,702 - - 425 Bainbridge Park Soccer Fields - - 152,048 152,048 - - 177,952 177,952 - 426 Corporation Yard Roof Replacement - - - - - 50,000 50,000 - Total Capital Project Funds (220,812) - 1,910,850 2,126,395 (5,267) 203,702 3,361,654 3,157,952 (5,267) 520 Facilities Maint & Repair 600,620 175,831 107,905 (37,320) 631,226 201,098 157,317 (380,000) 295,007 521 Technology Maint & Repair 100,881 440,990 615,737 20,259 (53,607) 471,859 564,060 - (145,808) 522 Fleet & Equipment Services 164,796 384,676 751,353 204,600 2,719 409,513 549,021 160,050 23,262 Total Internal Service Funds 866,297 1,001,497 1,474,994 187,539 580,338 1,082,470 1,270,398 (219,950) 172,461 610 Water Enterprise O&M 142,620 3,142,991 2,229,729 - 1,055,881 2,998,842 2,797,731 (506,681) 750,311 640 Water Enterprise Capacity Fees 582,749 16,199 - - 598,947 23,500 - - 622,447 614 Water Enterprise Non-Routine Maintenance 31,468 200 - - 31,668 300 - - 31,968 612 Water Enterprise Recession Reserve 89,780 - - 89,780 - - 49,607 139,387 615 Water Enterprise Capital Reserve 6,450,994 25,000 - (1,597,000) 4,878,994 50,000 - (2,099,457) 2,829,537 651 Water Capital Projects 180,969 2,000,000 3,597,000 1,597,000 180,969 850,000 7,462,000 6,431,031 - Total Water Enterprise Unrestricted Net Position 7,478,579 5,184,389 5,826,729 - 6,836,239 3,922,642 10,259,731 3,874,500 4,373,650 710 Wastew ater Enterprise O&M (287,488) 3,381,758 2,374,647 (236,407) 483,216 3,228,050 2,160,358 (848,508) 702,400 720 Clean Water Education Fund 2,795 - - - 2,795 - - - 2,795 740 Wastew ater Enterprise Capacity Fees 697,560 10,352 - - 707,912 20,000 - - 727,912 712 Wastew ater Enterprise Recession Reserve 95,931 - - - 95,931 - - 12,087 108,018 714 Wastew ater Enterprise Non-Routine Maintenanc 54,023 800 84,500 29,677 - - 40,000 40,000 - 715 Wastew ater Enterprise Capital Reserve 2,709,681 8,000 - (859,320) 1,858,361 13,000 - (343,929) 1,527,432 716 Wastew ater Capital Projects 33,309 - 859,320 859,320 33,309 - 775,000 775,000 33,309 717 USDA Debt Service Reserve 3,518 - 18,590 22,108 - - 22,108 Wastewater Unrestricted Net Position before Debt 3,309,329 3,400,910 3,318,467 (188,140) 3,203,632 3,261,050 2,975,358 (365,350) 3,123,974 717 JPFA - Wastew ater Treatment Plant (4,827,000) - 190,150 - (4,636,850) - 184,850 184,850 (4,267,150) l Wastewater Enterprise Unrestricted Net Position (1,517,671) 3,400,910 3,508,617 (1,433,218) 3,261,050 3,160,208 (180,500) (1,143,176) 810 CV Starr Enterprise 2,270,985 1,797,899 473,086 2,128,507 2,502,874 98,719 CV Starr Operating Reserve 744,503 - - 744,503 - - - 744,503 CV Starr Capital Reserve 744,503 - - 744,503 - - - 744,503 Starr Center Enterprise Unrestricted Net Position 1,489,006 2,270,985 1,797,899 - 1,962,092 2,128,507 2,502,874 - 1,587,725 Total Enterprise Funds 12,276,915 10,856,284 11,133,246 - 7,365,113 9,312,199 15,922,813 3,694,000 4,818,199 Total - All Funds 20,937,284 $ 27,852,009 $ 28,123,337 $ - $ 15,281,116 $ 35,116,834 $ 37,762,796 $ - $ 13,004,853 $ 175 Successor Agency to RDA (3,237,875) $ 382,989 $ 382,989 - $ (3,077,875) $ 386,475 $ 386,475 - $ (2,912,875) $ Total Fiduciary Funds (3,237,875) 382,989 382,989 - (3,077,875) 386,475 386,475 - (2,912,875) * Enterprise and Internal Service funds do not include fixed assets, restricted for debt service or depreciation expense City of Fort Bragg FY2022/23 Summary of Revenue, Expenditures & Fund Balance Capital Project Funds:

Internal Service Funds*
Enterprise Funds*
FY 2021/22 Budget
FY 2022/23 BUDGET FY 2021/22

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

INTRODUCTION
The City of Fort Bragg's combined annual budgeted appropriations for FY 2022/23 is $37 million. This amount includes appropriations from all funds ($37.7M) and transfers ($12.01M). Combined appropriations and transfers for FY 2022/23 are $2.3 million more than projected for FY 2021/22.

The City's budget includes three major operating funds: The General Fund, Water Enterprise Fund, and Wastewater Enterprise Fund, as well as Special Revenue Funds, Capital Project and Grant Funds, and the C.V. Starr Enterprise Fund. Core city services such as police, community development, parks, and street maintenance are budgeted in the General Fund and are supported primarily by sales tax, property tax, transient occupancy tax (TOT), and charges for services rendered. The City's Water and Wastewater Enterprise funds are supported by user fee revenues which are charged for services provided to the City's residents. Activities supported by funds received by the City which are restricted in their use are included in Special Revenue Funds and Grant Funds. Construction activities associated with capital projects are accounted for in Capital Project Funds.

Included in the $37 million total annual budget amount are the City's Internal Service Funds and allocations to the General Fund from the Water, Wastewater, and C.V. Starr Enterprise Funds for services provided to these funds. These expenditures are found in the budget twice because the revenue to the Internal Service Funds is a budgeted expenditure in the City's other funds. The allocations are revenue to the General Fund that the General Fund departments then spend.

Also, included in the annual budget amount are the City's Fiduciary Funds. Fiduciary Funds are used to account for resources that a government holds as a trustee or agent on behalf of an outside party and cannot support the government's own programs. The City has one fiduciary fund: Successor Agency to Fort Bragg Redevelopment Agency.

Throughout the budget document, reference is made to interfund transfers. An interfund transfer is a transfer of funds from one City fund to another City fund. These transfers appear as a resource in the fund receiving the transfer and as an appropriation in the fund that is sending the transfer. While this results in the revenue and expenditure being "double-counted" in the annual budget, this presentation is necessary to provide a transparent picture of actual expenditures for both the funding and receiving funds.

BUDGET OVERVIEW – ALL FUNDS

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

ALL FUNDS – FUND BALANCE
The FY 2022/23 projected All Funds year-end fund balance is $13 million, and the FY 2021/22 All Funds balance is projected at $15.2 million. Of this balance, the City has several reserves, as noted below.

These reserves are committed in accordance with the City's Fund Balance & Reserve Policies which are intended to ensure the continued financial well-being of the City by planning for emergencies, economic uncertainties, unforeseen operating or capital needs, economic development opportunities, and cash flow requirements. The City Council periodically reviews and updates these guidelines. As shown below, the "unrestricted or unassigned fund balance" in the FY 2022/23 Proposed Budget is estimated at approximately $2.06M.

FY 2022/23

PROPOSED
Total All Funds Balance $ 13,004,853
Less Nonspendable (inventory, etc.) 6,536
Less Restricted Reserves (externally enforceable)
Special Revenue Funds 2,627,981
Operating Grants 1,743,991
Debt Service Reserve 22,108
Less Committed Reserves (Set by Council resolution)
General Fund Operating Reserve 2,186,537
Water Operating Reserve 750,311
Wastewater Operating Reserve 702,400
General Fund Recession Reserve 540,832
Water Recession Reserve 139,387
Wastewater Recession Reserve 108,018
Water Capital Reserve 2,829,537
Wastewater Capital Reserve 1,527,432
Capital Projects in Process (5,267)
CV Starr Reserves 1,587,725
Internal Service Fund Reserves 172,461
Litigation Reserve 200,000
WWTP Debt (4,201,656)
Unassigned/Unrestricted Balance $ 2,066,520
FY 2022/23
Detail of Unassigned/Unrestricted Balanc PROPOSED
General Fund $ 713,366
Water Enterprise 622,447
Wastewater Enterprise 730,707
Total Unassigned/Unrestricted Balance $ 2,066,520

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FUND BALANCE TRENDS
The City's All Funds balance is likely to decrease in FY 2022/23 by approximately $2.3 million. The decrease is primarily a result of the Capital Improvement Program Planned for the Enterprise fund, which includes $2.7 million for the Water Enterprise and $955k for the Wastewater Enterprise, and $378k for the CV Starr.

According to the long-term replacement program already set, internal Service fund balances will also decrease by $580k to $172k. These include Fleet, Facilities, and I.T. The IT Fund’s annual operating budget has more than doubled due to the needed network and firewall upgrades as worldwide cyberattacks target organizations small and large. Additionally, Fleet Fund has $291k of vehicle purchases according to the replacement program, of which $160k will be reimbursed by USDA Grants.

The General Fund's fund balance is projected to increase by $198k from the projected FY 2021/22 ending fund balance as Transient Occupancy Taxes and Sales Tax have continued the strong performance gains in FY 2021/22 and is projected to do the same in FY 2022/23, resulting in a surplus budget as expenditures particularly personnel costs have returned to Pre-Covid levels.

$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000

AUDITED PROJECTED PROPOSED
FY 2020/21 FY 2021/22 FY 2022/23

ALL FUND BALANCE TRENDS

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

DISCUSSION OF REVENUE TRENDS - ALL MAJOR FUNDS
Overall, the City's revenues are estimated to increase by 29%, or $6.9 million to $47.1 million, mainly due to Grant revenues, Sales Tax, and strong performances in the City’s TOT revenue. • General Fund revenue is expected to increase 6% or $650k due to positive Sales tax growth boosted by inflation (4%), Property tax (2%), and Grant Staff time reimbursements (87%) or $489k. Grant Staff time reimbursements of $244k include Community Development Block Grants (CDBG), Code Enforcement Grant, SB-2 Planning Grants, School Resource Officer's Grant, and the Social Services Liaison Grant administered by the Police Department. • Water and Sewer Charges for Services Revenues are estimated to decrease by 5 percent. At this same time last year, the City was preparing to declare a water emergency in response to the lack of adequate rainfall during the previous winter and drought-like conditions with water levels at historic lows.

The City has continued to closely monitor the amount of rainfall received and forecasted for the coming months. The unexpected rain towards the end of April helped a lot. However, if adequate rainfall isn't received, this will place financial demand on the Enterprise funds revenues as conservative water measures will be in place, causing a reduction in consumption.

Additionally, the two Enterprise Funds waived the last round of scheduled approved rate increases in FY 2020/21, which would have increased Water rates by 5% and Wastewater rates by 3%. The City is currently finalizing the rate study to evaluate the enterprise rates, ensuring the fund's user fees are sufficient to address ongoing operations, upgrades to the Water/Sewer infrastructure, and building up the fund reserves to ensure financial stability.

Infrastructure rehabilitation, replacement, and upgrade requirements are necessary to maintain an aging water distribution system. The rate study results will be brought forward to the City Council in June/July 2022.

Moreover, contributed capital of $2.8 million is for the replacement of water meters which is funded by Community Development Block Grants (CDBG)
• The CV Starr Center was closed in the final quarter of FY 2019/20 and all of FY 2020/21 due to the SIP orders and County/State restrictions in response to COVID-19. This resulted in a loss of revenue from operations of $285k in the final quarter of FY 2019/20 and $700k of operating annual revenues in FY 2020/21. The center expects a reduction in general admission and registration revenues by about 37% in FY 2021/22. Still, admission revenues will likely return to pre-covid levels in FY 2022/23 as the center resumes operations full-time. The CV Starr center was awarded a grant of $612k in FY 2021/22, allocated to their reserves to replace some of the lost revenues. • Notably, the City's grant revenues are projected to increase by $8M in FY 2022/23. Grant revenues are expected for the Raw Water Line construction $4.05 million, Bainbridge Park soccer fields $178k, Cypress Street Parents and Friends Housing Project $3.3M, Community Development Block Grants (CDBG) COVID-19 Assistance $415k, CDBG-2020 Grants $867k, and other state grants of $136k.
• Lastly, Internal Service Fund revenue is estimated to increase by 8%, or $81k. Each year the Internal Service Fund's long-term plans are re-assessed. Funding plans are designed to fund maintenance and replacement across a 10-year horizon for Facilities Repair and Maintenance and Fleet and Equipment Services. Technology Maintenance and Replacement uses a 5-year horizon.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

FUND AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
General Fund
Property Taxes $ 1,107,039 $ 1,085,532 $ 1,159,533 $ 1,152,076 $ 1,176,309 2.1% Sales Taxes 1,797,520 2,028,010 1,966,846 2,090,000 2,178,000 4.2% Transient Occupancy Taxes 2,204,152 3,321,928 3,264,742 3,324,158 3,371,081 1.4% Other Taxes 774,924 810,652 779,500 818,705 832,442 1.7% Reimbursements 2,353,861 2,307,897 2,696,400 2,578,777 2,781,850 7.9% Charges for Services 43,039 45,369 57,000 65,602 70,546 7.5% Intergovernmental 167,609 133,162 582,585 273,339 517,555 89.3% Licenses & Permits 97,307 91,567 93,702 87,087 95,413 9.6% Other Revenues 22,467 109,358 18,500 28,798 14,500 -49.6% Use of Money & Property 268,100 (64,617) 27,020 31,982 61,300 91.7% Fines & Forfeitures 47,378 12,181 36,200 29,538 31,500 6.6% Total General Fund 8,883,396 9,881,040 10,682,028 10,480,063 11,130,495 6.2% Water
Charges for Services 3,141,763 3,288,053 3,095,675 3,121,863 2,970,342 -4.9% Use of Money and Property 114,936 66,700 67,729 40,200 69,800 73.6% Other 38,953 25,653 18,000 8,128 12,500 53.8%
Contributed Capital 30,043 346,561 21,715 2,014,199 870,000 -56.8% Total Water 3,325,694 3,726,967 3,203,119 5,184,389 3,922,642 -24.3% Wastewater
Charges for Services 3,484,108 3,587,321 3,201,400 3,275,010 3,122,050 -4.7% Use of Money and Property 47,933 36,823 34,452 24,361 34,000 39.6% Other Financing Sources 4,512,326 (0) - - - n/a
Contributed Capital 65,167 429,914 26,000 101,539 105,000 3.4% Total Wastewater 8,109,534 4,054,057 3,261,852 3,400,910 3,261,050 -4.1% Total Revenue - Operating Funds 20,318,624 17,662,064 17,147,000 19,065,362 18,314,187 -3.9% C.V. Starr Center
Sales and Use Taxes 944,770 1,099,510 1,001,874 986,000 1,257,000 27.5% Property Taxes 236,185 262,787 260,000 268,596 272,625 1.5% Charges for Services 465,718 (0) 444,914 399,229 578,882 45.0% Use of Money and Property 15,227 11,918 8,700 5,000 10,000 100.0% Other - - 10,000 612,160 10,000 0.0%
Total C.V. Starr Center 1,661,900 1,374,215 1,725,488 2,270,985 2,128,507 -6.3% Special Revenue & Capital Project Funds
Special Revenue, Restricted 1,808,209 1,846,695 2,513,196 2,622,199 3,700,194 41.1% Special Revenue, Grants 1,931,305 5,207,417 8,437,709 2,891,967 9,891,475 242.0% Capital Projects - - - - - n/a
Total Special Revenue & Capital 3,739,514 7,054,112 10,950,905 5,514,165 13,591,669 146.5% Subtotal 25,720,038 26,090,392 29,823,393 26,850,512 34,034,363 26.8% Internal Service Funds
Facilities Maintenance 216,969 102,973 202,563 175,831 201,098 14.4% Information Technology 303,965 272,450 440,990 440,990 471,859 7.0% Fleet & Equipment Services 275,810 255,422 384,676 384,676 409,513 6.5% Total Internal Service Funds 796,744 630,845 1,028,229 1,001,497 1,082,470 8.1% Subtotal before Transfers 26,516,782 26,721,237 30,851,622 27,852,009 35,116,834 26.1% Transfers 22,725,193 9,944,137 10,251,328 5,105,978 12,011,912 135.3% Total Revenue, All Funds $ 49,241,975 $ 36,665,374 $ 41,102,950 $ 32,957,987 $ 47,128,746 43.0%

ALL FUNDS

DETAIL OF REVENUES BY FUND
FY 2019/20 THROUGH FY 2022/23

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

DISCUSSION OF EXPENDITURE TRENDS – ALL MAJOR FUNDS
The FY 2022/23 Budget expenditures total $38M with Internal Service Funds, Fiduciary Funds, internal charges for service, and transfers between funds are excluded from the total and $50M when these items are included.

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Governmental Activities
General government $ 1,209,165 $ 1,190,039 $ 2,576,969 $ 2,313,895 $ 2,957,066 27.8% Community development 1,172,046 4,796,025 6,155,423 3,419,124 6,506,460 90.3% Public safety 5,833,078 5,114,834 5,843,472 5,837,874 5,682,378 -2.7% Public works 4,455,659 2,350,692 7,163,505 3,944,204 5,423,682 37.5% Internal service 858,071 754,826 1,489,993 1,474,994 1,270,398 -13.9% Business-type activities
Water 1,675,504 1,687,506 8,945,160 5,826,729 10,259,731 76.1% Wastewater 2,302,134 3,036,895 4,067,880 3,508,617 3,160,208 -9.9% CV Starr 2,080,809 1,228,893 2,226,677 1,797,899 2,502,874 39.2% Fiduciary Activities
Fiduciary 229,837 228,240 383,950 382,989 386,475 0.9%
Subtotal 19,816,303 20,387,951 38,853,028 28,506,326 38,149,271 33.8% Transfers Out 9,944,137 9,944,137 10,251,328 5,105,978 12,011,912 135.3% TOTAL ALL FUNDS $ 29,760,440 $ 30,332,088 $ 49,104,357 $ 33,612,304 $ 50,161,183 49.2%

ALL FUNDS

EXPENDITURE SUMMARY BY FUNCTION/PROGRAM
FY 2019/20 THROUGH FY 2022/23
$2,957,066 , 8%
6,506,460 , 19%
5,682,378 , 16%
5,423,682 , 16%
1,270,398 , 4%
10,259,731 , 29%
2,502,874 , 7% 386,475 , 1%
FY 2022/23 EXPENDITURE BY FUNCTION/PROGRAM
Governmental Activities
General government
Community development
Public safety
Public works
Internal service
Business-type activities
Water
CV Starr
Fiduciary Activities
Fiduciary

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

EXPENDITURES BY FUNCTION / PROGRAM
General Government is budgeted to increase 27% or $643k in FY 2022/23 due to the first-year debt payment of $599k towards the 2021 Revenue Lease Bonds, which the City issued in November 2021 to restructure the City’s Unfunded Liability Debt with CALPERS. Additionally, Insurance costs also increased by $98k and Cost of Living Adjustments for employees.

Community development is expected to increase by $3M or 90%. Most of the increase in this function is due to additional grant activity in FY 2022/23 for Community Development Block Grants (CDBG). The Parents & Friends Housing Project is budgeted at $3.2M, the Department of Water Resources- Raw Water Line construction of $4M, and other CDBG Grant Activities. A detailed list of City Grants can be found in the Grants & Special Revenue Section.

Public Safety is budgeted to decrease 2.7% or $155k due to the reduction in the annual PERS-Unfunded Liability payments. As mentioned above, the City restructured its UAL Debt by issuing Lease Revenue Bonds at a lower interest rate than the CALPERS 6.7% discount rate, reducing the Annual UAL Payment by $329k. Increases in personnel costs offset these budget savings. The proposed Budget includes the replacement of the interim Police Chief with a permanent position that provides benefits that will increase by $110k annually. The City hopes to fill the position by the new fiscal year.

A shortage of police officers locally and nationally has driven wages up every year for the last several years. The Fort Bragg City Code Chapter 2.68 provides for an annual salary survey of Mendocino County law enforcement positions. It establishes that Fort Bragg's salaries will, at a minimum, be set at the average of the other local entities. As of January 1, 2021, Police Officer salaries increased by 4.9% and 1% on January 1, 2022. Additional increases are anticipated in January 2023.

Public Works is budgeted to increase by $1.5M. Year-over-year increases are due to increased capital project expenditures, demonstrating capital projects' irregular nature. In FY 2022/23, the Street Rehabilitation 2022 project is estimated to expend $2.9M; Municipal Facilities $380k, and the Fire Station Rehab design $203k. The department also plans to hire an additional Engineering Technician.

Water Enterprise expenditures are budgeted to increase by $4.4M due to the capital work plan budget.

These include upgrades to the Enterprise’s infrastructure such as the Pudding Creek Water Main Relocation Project ($812k), Distribution System Rehab ($850k), Raw water Line construction ($4.05M) Staff is actively pursuing grant funding for these projects and future water enterprise projects.

Additionally, the water enterprise budget includes an additional $350k to pay off its 2007 debt early. The debt matures on January 1, 2027. Paying the debt off early would save $52k in interest payments and put the enterprise in a better financial position to fund more significant capital projects that may require financing. By 2023, all current Water Enterprise debts will be paid off.

Wastewater Enterprise expenditures are budgeted to decrease by $348k or 9% in FY 2022/23. The decrease is due primarily to the Wastewater Treatment Plant Project being completed and online. Capital expenditures alone are budgeted to decrease by $880k. Moreover, Bio-solids removal costs are budgeted to decrease by $207k.

The C.V. Starr Center Enterprise expenditures are budgeted to increase by 199% or $704k due primarily to the Center reopening and incurring the operating costs, which declined significantly last fiscal year as the center was closed due to COVID-19 restrictions. Additionally, the Center’s capital work plan is estimated to expend $378k in FY 2022/23. These include Domestic Hot Water #1 $157k, Ultra Violet Disinfection System $160k, Watt Stopper $60k, and $191k in non-routine maintenance projects.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Governmental Activities
General government $ 1,209,165 $ 1,190,039 $ 2,576,969 $ 2,313,895 $ 2,957,066 27.8% Community development 1,172,046 4,796,025 6,155,423 3,419,124 6,506,460 90.3% Public safety 5,833,078 5,114,834 5,843,472 5,837,874 5,682,378 -2.7% Public works 4,455,659 2,350,692 7,163,505 3,944,204 5,423,682 37.5% Internal service 858,071 754,826 1,489,993 1,474,994 1,270,398 -13.9% Business-type activities
Water 1,675,504 1,687,506 8,945,160 5,826,729 10,259,731 76.1% Wastewater 2,302,134 3,036,895 4,067,880 3,508,617 3,160,208 -9.9% CV Starr 2,080,809 1,228,893 2,226,677 1,797,899 2,502,874 39.2% Fiduciary Activities
Fiduciary 229,837 228,240 383,950 382,989 386,475 0.9%
Subtotal 19,816,303 20,387,951 38,853,028 28,506,326 38,149,271 33.8% Transfers Out 9,944,137 9,944,137 10,251,328 5,105,978 12,011,912 135.3% TOTAL ALL FUNDS $ 29,760,440 $ 30,332,088 $ 49,104,357 $ 33,612,304 $ 50,161,183 49.2%

ALL FUNDS

EXPENDITURE SUMMARY BY FUNCTION/PROGRAM
FY 2019/20 THROUGH FY 2022/23

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

OVERVIEW
The City of Fort Bragg’s fiscal year (FY) 2022/23 General Fund operating appropriations include Core city services such as Police, Community Development, Park maintenance, and Street maintenance are budgeted in the General Fund. General Fund resources are closely linked to economic and development activity in the City, and expenditures fund essential front line and “quality of life” services that our citizens expect.

In March 2020, the onset of the COVID-19 pandemic came with strict health orders for the safety of all and resulted in a drastic drop in revenues, specifically in two of the top three taxes that make up more than 50 percent of the City's General Fund. The City of Fort Bragg took swift, decisive, and difficult actions to respond to the decline in revenues for FY 2020/21.

General Fund tax revenues rebounded in FY 2020/21, recording record highs, and continued the strong performance into FY 2021/22. The FY 2022/23 Proposed General Fund budget is estimated to collect $11.1 million in revenues and appropriations of $10.4 million, a balanced budget for FY 2022/23, which achieved the number one City Council Financial Goals as listed below.

Additionally, The Budget set aside Reserve funds, addressed and made additional payments into the City’s Section 115 Trust to address future Pension unfunded liabilities (UAL), and began restoring service levels with resources that were dampened by the pandemic.

The current General Fund budget reflects a continuance of conservative budgeting from FY 2021/22 while remaining cautiously optimistic. Featured in the Five-year forecast is a likely Recession in FY 2024.

The proposed Budget allocates funds to Emergency Reserves and Operating Reserves to combat some estimated declines in the General Fund’s top revenue categories.

Furthermore, the proposed Budget includes Cost of Living adjustments for employees except for the Police Department, as they are adjusted annually.

PRIORITIZED LIST OF FINANCIAL GOALS
At the mid-year budget review meeting in March 2022, the City Council produced the following prioritized list of financial goals. Staff has used the prioritized list as guidance in preparing the FY 2022/23 budget:

PRIORITY GOAL STATUS
1 Adopt a balanced budget
2 Maintain current level of service (no staff layoffs, no program cuts) 3 Maintain Operating Reserves and Litigation Reserves
4 Provide funding for Emergency Reserves
5 Provide Cost of Living Adjustment to Staff
6 Provide additional contributions to CALPERS to pay down UAL BUDGET SUMMARY – GENERAL FUND

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The proposed FY 2022/23 budget is estimated to end the fiscal year with a $198k surplus.

Although the General Fund will enjoy a balanced budget for FY 2022/23, the City remains focused on enhancing General Fund revenue streams and containing costs in the years to come. The City has taken measures to address its CALPERS Unfunded Liability in FY 2021/22 by restructuring the debt and adopting the City’s Pension Policy. However, increases in personnel costs expected to continue beyond FY 2022/23, particularly benefit costs and insurance costs, will continue to put pressure on the City’s General Fund, and the possibility of a recession in FY 2024 would impact the fund’s top tax revenues.

GENERAL FUND – FUND BALANCE
The year-end General Fund balance for FY 2020/21 through FY 2022/23.

From FY 2014 to FY 2016, the General Fund balance was steadily increasing, as shown in the graph above; however, the balance decreased significantly in FY 2016/17 due primarily to the correction of errors discovered in the then-current Cost Allocation Plan and repayment of the prior year cost over allocations to the Enterprise Funds. The balance stabilized with the FY 2018/19 small budget surplus.

The General Fund was certainly the most impacted by the COVID-19 Pandemic and economic shutdown in 2020, recording a decrease of $651k of General Fund’s revenues because it relies on TOT

PROPOSED
FY 2022/23
Operating Revenue $ 11,130,495
Operating Expenditures (10,932,684)
Operating Surplus(Deficit) $ 197,812
FY 2020/21 FY 2021/22 FY 2022/23

AUDITED PROJECTED PROPOSED
General Fund Balance $ 4,184,215 $ 3,449,677 $ 3,647,488 $4.62
$4.76
$5.39
$3.11 $2.96 $3.10 $2.69
$4.10
$3.40
$3.60
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Projected 22/23 Proposed Millions
General Fund - Fund Balance History

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

and Sales Tax Revenues which accounts for about half of General Fund's total revenues. FY 2019/20 year-end numbers recorded a General Fund deficit of $437k, resulting in a reduction in fund balance to $2.6M. In FY 2020/21, the general fund revenues, as mentioned previously, rebounded and contributed to the surplus balance. Additionally, staff cuts and service level reduction also contributed to the positive variance. The strong Tax Revenue gains continued into FY 2021/22, and the projected fund balance come year-end is a Surplus of $90k.

GENERAL FUND RESERVES
The City’s General Fund reserves are established in accordance with the “Fund Balance & Reserve Policies,” which are intended to ensure the continued financial well-being of the City by planning for unanticipated emergency and contingency needs. The City Council periodically reviews and updates the reserve policies and budgeted reserve funds to ensure that the City has sufficient resources to adequately address emergencies, economic uncertainties, unforeseen operating or capital needs, economic development opportunities, and cash flow requirements. The FY 2022/23 Budget commits the fund balance in the General Fund to the following reserves:
• $2,186,537 to the General Fund Operating Reserve
• $541k Recession Reserve
• $200k to the Litigation Reserve
The General Fund’s “unassigned fund balance” in FY 2022/23 is estimated at $714k.

PROPOSED
FY 2022/23
Total General Fund Balance $ 3,647,488
Less Nonspendable (Inventory, etc.) 6,536
Less Committed Reserves (Set by Council Resolution)
Operating Reserve 2,186,537
Recession Reserve 540,832
Litigation Reserve 200,000
Unassigned Balance $ 713,583
713,583 ,
20%
2,186,537 ,
60%
540,832 ,
15%
200,000 , 5%
0, 0%
6,536 , 0%

SUMMARY OF FUND BALANCE
Unassigned Fund
Balance
Operating Reserve
Recession Reserve
Litigation Reserve
Reserve for
Encumbrances
Nonspendable

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

GENERAL FUND REVENUE
Fort Bragg’s General Fund is reliant on sales tax, Transient Occupancy Tax (TOT), property tax, and fees charged for services rendered to fund operations. As discussed in detail below, General Fund revenues (excluding transfers) are expected to increase in FY 2021/22, with the total annual revenue projected at $11M, a 6% year-over-year increase. In the FY 2018/19 budget, staff changed revenue forecasting methodology from “conservative” to “most likely.” Due to the pandemic and much uncertainty, the FY 2022/23 current General Fund budget is based on conservative budgeting from FY 2021/22 while remaining cautiously optimistic about the current and future economic conditions.

The FY 2021/22 Adopted Budget was based on a conservative outlook for the City’s significant tax revenue and limited information on how the economy would respond to the social and business restrictions due to the pandemic and the emergence of variants like the omicron variant in 2021.

Consequently, some of the variances between the FY 2020/21 Adopted Budget and prior year audited actuals would be significant; this is a result of financial trend data becoming available as we move through the pandemic. Staff has been able to monitor and make Budget adjustment requests for these revenues as the year progresses, and more information is available.

Taxes remain the largest resource supporting General Fund operations in the FY 2022/23 Operating Budget. Taxes represent 68% of all General Fund revenues, with the primary taxes comprised of TOT, Sales taxes, and Property taxes.

Reimbursements are the second-largest resource supporting General Fund operations in the FY 2022/23 Operating Budget. Reimbursements represent 25% and include reimbursement of personnel costs and overhead from the City’s Enterprise Funds and Special Revenue Funds to the City’s General Fund.

Each of the major General Fund revenue sources is described with information about historical trends and current budgeted revenues in the pages that follow.

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

GENERAL FUND AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Property Taxes $ 1,107,039 $ 1,085,532 $ 1,159,533 $ 1,152,076 $ 1,176,309 2% Sales Taxes 1,797,520 2,028,010 1,966,846 2,090,000 2,178,000 4% Transient Occupancy Taxes 2,204,152 3,321,928 3,264,742 3,324,158 3,371,081 1.4% Other Taxes 774,924 810,652 779,500 818,705 832,442 2%
Total Taxes 5,883,635 7,246,122 7,170,621 7,384,940 7,557,831 2% Reimbursements 2,353,861 2,307,897 2,696,400 2,578,777 2,781,850 8% Charges for Services 43,039 45,369 57,000 65,602 70,546 8% Intergovernmental 167,609 133,162 582,585 273,339 517,555 89% Licenses & Permits 97,307 91,567 93,702 87,087 95,413 10% Other Revenues 22,467 109,358 18,500 28,798 14,500 -50% Use of Money & Property 268,100 (64,617) 27,020 31,982 61,300 92% Fines & Forfeitures 47,378 12,181 36,200 29,538 31,500 7% TOTAL GENERAL FUND $ 8,883,396 $ 9,881,040 $ 10,682,028 $ 10,480,063 $ 11,130,495 6%

GENERAL FUND

SUMMARY OF REVENUES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Sales Tax
Background
The Sales Tax category includes general sales and use taxes and Proposition 172 sales taxes. Sales tax is an excise tax that applies to all retail sales of merchandise. Retailers are liable for reporting and payment of the tax. Use tax is an excise tax imposed on consumers of merchandise used, consumed, or stored in California and purchased from out-of-state vendors not collecting California sales tax. The statewide sales and use tax rate is 7.25%, of which the State receives 6.25%, and the City receives 1% (known as the Bradley Burns Local Sales and Use Tax).

Analysis
Sales tax revenues in FY 2022/23 are expected to increase compared to the previous fiscal year receipts by approximately 4% to $2.1 million. The City’s sales tax analysis consultant, MuniServices, analyzes trends in year-to-date tax receipts, COVID-19 economic recovery, macroeconomic conditions, and local business data when forecasting sales tax revenue and provides detailed forecasts to staff.

Sales tax revenue generally coincides with the overall strength of the local, regional, and national economies. The outlook of Sales Tax revenue remains positive as inflation remains in the economy at

7.9%, according to the U.S Bureau of Labor Statistics, and is estimated to fall to 5% at the end of the calendar year and then level off in 2023. Additionally, spikes in fuel prices have contributed to the positive forecast in Sales Tax revenue.

All sales tax categories have experienced year-over-year growth, the largest of which includes Food Products, Construction, and transportation. In addition, the County Pool, which is where the majority of online transactions are captured, has continued to grow. This growth is attributable to the pandemic’s sustained impact of redirecting significant activity to online sales. The recent growth in County Pool receipts has been fueled by online purchases during the pandemic and is facilitated by the South Dakota vs. Wayfair, Inc. Supreme Court decision in 2018, which provided states with authority to require online retailers to collect sales tax even without a local presence in that State. The County Pool revenue is distributed to all cities within Mendocino County based on a distribution formula administered by the CDTFA.
$1.62 $1.63 $1.67 $1.60 $1.53
$1.79 $1.73 $1.80
$2.00 $2.09
$2.17
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Projected
22/23
Proposed
Millions
General Fund Sales & Use Tax History

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Transient Occupancy Tax (TOT)
Background
Transient Occupancy Tax (TOT) is a local tax that is applied to the cost of a hotel or other lodging stays of less than 30 days. In 2016, with the passage of local Measures AA and AB, the City’s TOT rate increased from 10% to 12%. This tax is a revenue source solely for the General Fund. TOT is collected by lodging establishments and remitted to the City monthly. Factors influencing TOT revenues include vacancy rates, business and leisure travel changes, new hotels, hotel expansion, and room rate increases. TOT is the largest General Fund revenue source and is expected to account for 30% of revenue.

Analysis
Fort Bragg is a tourist-based economy and depends heavily on tourism for its revenue. TOT accounted for 29% of General Fund Revenues and had the largest reduction due to COVID in FY 2019/20, recording a budget shortfall of $660k. TOT revenues rebounded in FY 2020/21 and recorded the best year to date at $3.32 million and are projected to end the FY 2021/22 at the same levels, approximately $600k higher than FY 2018/19 totals (pre-pandemic). This represents an increase of 23% in this sector of the local economy. The emergence of COVID-19 variants, as with recent national experiences with the Delta and Omicron variants, may continue to suppress travel and hotel activity. The incremental improvement in hotel activity sustained since April 2020 is expected to continue into FY 2022/23. TOT receipts are projected to increase by a modest 1.4%, totaling $3.37 million.

Average Occupancy rates between November to March were 52 percent, up 2 percent compared to the prior fiscal year and up 10 percent compared to FY 2018/19 (pre-pandemic). Average room rates also increased by 10 percent from FY 20/21 and 27 percent from FY 2018/19 (pre-pandemic). The efforts of the Visit Fort Bragg Campaign are also to be acknowledged for the growth in TOT revenues, proving a return on investment.

Although this revenue sector has recorded strong results in the past two fiscal years, the FY 2022/23 Budget projections are relatively conservative, projecting just a modest 1.4 % increase as the economy opened up in 2021 and the loosening of COVID restrictions with other tourist destinations became an option, local tourist numbers continued at the same levels last year. Staff will closely monitor the revenues during the fiscal year and will have a better model to determine whether this trend will continue. $1.66
$1.90 $2.00 $2.15
$2.62 $2.69
$2.20
$3.32 $3.32 $3.37
0 0.5
1 1.5
2 2.5
3 3.5
4 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Projected
22/23
Proposed
Millions
Transient Occupancy Tax History

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Property Tax
Background
Property tax is an ad valorem (value-based) tax imposed on real property and tangible personal property within the City’s jurisdiction. It includes two major elements: secured or real property (e.g., house and land on which the house was built), and unsecured or personal property (e.g., machinery). Under Proposition 13, the general property tax rate cannot exceed 1% of a property’s assessed value plus other assessments as approved by the voters. The assessed value of real property that has not changed ownership increases by the California Consumer Price index change up to a maximum of 2% per year.

Property is assessed at the full market value upon change of ownership. Newly constructed property is assessed at the full market value in the first year in which the construction is completed. Property tax revenue is collected by the county and allocated according to State law among cities, counties, school districts, and special districts.

Throughout the City’s history, property tax revenue has grown significantly, reflecting both new development and increasing property values in Fort Bragg. As in most of the country, property tax revenues declined in Fort Bragg during the Great Recession due to lower sales prices and adjustments in assessments. In recent years, sales prices have increased, and the number of reassessments has decreased.

Analysis
The FY 2022/23 Proposed Budget assumes $1.18 million in property tax revenue, a 2 percent increase, compared to the FY 2021/22 Adopted Budget level of $1.09 million. Unlike other tax revenue, property taxes were not impacted by COVID-19. Median home prices in the 95437 zip code have continued to increase year-over-year. According to Zillow, as of April 2022, median home prices are $585k, up from $480k or 14.9 % over the past year, with 129 residential units sold in the last ten months of the fiscal year. Single Family home median sold price was $700k. However, with home prices continuing to increase, affordable housing remains an issue in the community.

The City has incubated and is staffing a Community Land Trust (CLT) to increase workforce housing in our community. A CLT is a system in which the underlying land is owned by a mission-driven entity, usually a nonprofit, where the buildings on the land are owned or leased by residents. CLTs have the explicit goal of promoting affordable housing and contain legal provisions governing ownership and transfer to keep units affordable. Homeownership provides working families and individuals the opportunity to build wealth and create housing security. $0.91 $0.89
$0.97
$1.03 $1.03 $1.07
$1.10 $1.09 $1.15 $1.18
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
Projected
22/23
Proposed
Millions
Property Tax History

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Franchise Taxes
Franchise tax revenue consists of taxes on three franchise operations in Fort Bragg: electric, cable television, and solid waste disposal. The State sets electric utility tax rates that equal 0.5% of gross annual revenues and 5% of gross cable television revenues from within the City. The City established the franchise fee for the solid waste collection many years ago when the City and County closed the jointly-owned Caspar Landfill. Franchise taxes have remained relatively stable in recent years. As more customers move to satellite and internet-based services, revenue from cable television franchise fees has slowly declined. Revenue from Pacific Gas & Electric rose steadily until 2009 when it fell slightly and has since begun climbing again. Overall, FY 2022/23 franchise tax revenue is estimated to increase by 1 percent.

Service and Program Charges
$0.50 $0.49 $0.49 $0.50
$0.53 $0.56 $0.55
$0.61 $0.63 $0.64
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
Projected
22/23
Proposed
Millions
General Fund Franchise Tax History
$2.90
$3.40
$3.23
$3.70
$2.59 $2.91 $2.85
$2.50 $2.60
$3.23
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21
Projected
21/22
Adopted
Millions
General Fund Service & Program Charges

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Service and Program Charges include the Intergovernmental, Charges for Services, and Reimbursements categories. Revenue for Service and Program Charges represents about 32% of total estimated General Fund revenues in FY 2021/22. The $2.7 million Proposed budget for FY 2022/23 represents an increase of approximately $203k from the prior year.

Intergovernmental is comprised of reimbursement of employee staff time spent administering grants and is expected to double in the fiscal year as many Grant programs, including CDBG 2020 Code Enforcement Grant, School Resource Officer Reimbursement, the Social Services Liaison Grant and COVID Assistance-related grants that weren’t spent in the prior year, will be expended in FY 2022/23.

Charges for service are expected to increase by $4k due to an anticipated increase in fingerprinting fees and licenses compared to the previous year.

The reimbursements category consists of internal support departments such as Administrative Services, Finance, Human Resources, City Clerk, and City Council, who provide services to Enterprise and Internal Service Funds. The costs for these services are recovered through the cost allocation plan charges. The FY 2021/22 estimate for Reimbursements is $2.6 million and reflects the growth of 14% percent from the FY 2020/21 Adopted Budget of $2.3 million; this is primarily attributable to the direct allocation of Corporation Yard costs to non-general fund activities and the increase in support for non-General Fund activities.

General Fund FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 Detail of Revenue FYE AMENDED FYE PROPOSED
Services & Programs AUDITED BUDGET PROJECTED
Intergovernmental $ 133,162 $ 582,585 $ 273,339 $ 517,555 Charges for Services 45,369 57,000 65,702 70,546
Reimbursements 2,307,897 2,696,400 2,578,727 2,781,850
Totals $ 2,486,429 $ 3,335,985 $ 2,917,769 $ 3,369,951

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
Taxes
Property Taxes $ 445,067 $ 402,971 $ 461,214 $ 439,637 $ 455,741 3.7% VLF Swap 637,754 660,739 664,200 680,561 694,173 2.0%
Supplement SB 813 3,735 3,603 3,000 3,735 3,800 1.7%
Homeowners Property Tax Relief - - 8,900 8,900 2,967 100.0% Transfer Taxes 14,565 18,219 22,219 19,243 19,628 2.0%
Motor Vehicle In-Lieu Tax 5,918 - - - - n/a
Sales and Use Taxes 1,774,139 1,995,831 1,946,846 2,064,000 2,150,000 4.2% Proposition 172 Sales Taxes 23,381 32,179 20,000 26,000 28,000 7.7% Transient Occupancy Taxes 2,204,152 3,321,928 3,264,742 3,324,158 3,371,081 1.4% Franchise Taxes 590,117 625,996 614,500 635,402 642,442 1.1% Business License Taxes 184,807 184,655 165,000 183,254 190,000 3.7% Total Taxes 5,883,635 7,246,122 7,170,621 7,384,890 7,557,831 2.3% Licenses & Permits
Business License Fees 63,164 62,873 56,500 61,821 68,713 11.1% Construction/Building Permits 26,477 14,734 25,000 14,000 15,000 7.1% Encroachment Permits 5,830 13,361 10,000 9,311 10,000 7.4% Other Licenses & Permits 1,836 598 2,202 1,955 1,700 -13.0% Total Licenses & Permits 97,307 91,567 93,702 87,087 95,413 9.6% Fines & Forfeitures
Parking Fines 34,293 9,390 25,000 17,000 20,000 17.6%
Miscellaneous Fines 13,086 2,791 11,200 12,538 11,500 -8.3% Total Fines & Forfeitures 47,378 12,181 36,200 29,538 31,500 6.6% Use of Money and Property
Investment Interest 30,373 46,644 13,220 22,000 47,000 113.6% Rents and Concessions 232,174 (119,885) 8,800 9,382 9,300 -0.9% Sales of Surplus Assets 5,552 8,624 5,000 600 5,000 n/a Total Use of Money and Property 268,100 (64,617) 27,020 31,982 61,300 91.7% Intergovernmental
Grant Administration 167,609 133,162 582,585 273,339 517,555 89.3% Total Intergovernmental 167,609 133,162 582,585 273,339 517,555 89.3% Charges for Services
Community Development Fees 6,552 14,265 6,500 18,000 14,000 -22.2% Police Fingerprint Fees 29,330 22,031 40,000 37,944 42,000 10.7% Document Copies 4,070 5,153 6,000 7,133 6,800 -4.7%
Construction & Demolition Fees 670 135 500 500 700 40.0% Returned Check Fees 2,252 1,008 1,500 1,800 1,546 -14.1% Police Witness Fees 165 518 500 275 500 81.8%
Other Charges for Services 7,157 9,074 10,500 9,758 5,000 -48.8% Total Charges for Services 43,039 45,369 57,000 65,702 70,546 7.4% Reimbursements
City Exp Reimbursement - Developers 34,704 49,607 62,000 20,815 28,500 36.9% SB 90 Reimbursement 7,996 6,344 11,500 6,500 10,215 57.2% Booking Fee Reimbursement 14,850 9,700 13,500 12,500 14,000 12.0% Internal Charges for Services 1,490,359 1,531,608 1,948,669 1,764,960 1,948,669 10.4% Interfund Cost Reimbursement 762,598 671,601 635,981 699,651 718,266 2.7% Training Reimbursement 18,882 9,935 6,500 16,342 16,000 -2.1% Other Reimbursements 24,472 29,102 18,250 57,959 46,200 -20.3% Total Reimbursements 2,353,861 2,307,897 2,696,400 2,578,727 2,781,850 7.9% Other Revenues
Miscellaneous 22,467 109,358 18,500 28,798 14,500 -49.6% Total Other Revenues 22,467 109,358 18,500 28,798 14,500 -49.6% Total General Fund Revenue $ 8,883,396 $ 9,881,040 $ 10,682,028 $ 10,480,063 $ 11,130,495 6.2%

GENERAL FUND

DETAIL OF REVENUES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

DISCUSSION OF GENERAL FUND EXPENDITURE TRENDS
General Fund expenditures (including transfers-out) in FY 2022/23 are projected at $10.9M and represent an increase of $543k or 5%. Overall, the increases are primarily the result of increases in personnel costs, COLA increases, annual debt payments, retiree medical costs, and insurance costs across the board.

Specific details of expenditures are presented in the following Department Details sections of the Budget.

Notable departmental variances are as follows:
 The Administration budget will increase by $72k or 6%, primarily due to personnel cost increases, including an increased budget for the City Manager's position and the transition of the Grants Coordinator position from Finance to the Administration Department. The Professional service's budget decreased by $100k due to one-time expenditures for the Broadband Feasibility Study, Recruitment costs, and the Comp Study costs incurred last fiscal year.  The Finance Department budget is proposed to increase by $53k or 9 percent primarily due to COLA adjustments, and the department will be hiring a Government Accountant to replace the vacant Finance Technician towards the end of FY 2021/22 to assist the Department with some of the back-end accounting work.
 The Police department budget is estimated to decrease by $132k or 3 percent. The decrease is primarily due to the savings realized of $329k from CALPERS UAL Costs which were restructured in FY 20/21 by issuing Revenue Lease Bonds. Conversely, the annual debt payments (budgeted for Non-Departmental) will increase with the new debt.

These cost savings were offset by increases in dispatch services by 5 percent year over year and increases in personnel costs. The proposed Budget includes the replacement of the interim Police Chief with a permanent Police Chief position that provides benefits that will increase by $110k annually. The City hopes to fill the position by the new fiscal year.

A shortage of police officers locally and nationally has driven wages up every year for the last several years. The Fort Bragg City Code Chapter 2.68 provides for an annual salary survey of Mendocino County law enforcement positions. It establishes that Fort Bragg's salaries will, at a minimum, be set at the average of the other local entities. As of January 1, 2021, Police Officer salaries increased by 4.9% and 1% on January 1, 2022. Additional increases are anticipated in January 2023.
 The proposed Non-Department budget is $1.2 million, an increase of 7 percent due to increases in Retiree medical costs of 3 percent, liability and property insurance premiums of $97k or 29 percent, and $150k dedicated to making additional payments towards the Section 115 Trust as a cushion for future unfunded liabilities.
 Community Development Budget is estimated to increase by $40k due to the cost of living adjustments or 4 percent yearly. The department has a vacant Planner position which is included in the proposed budget.
 The Marketing and Promotions department budget is proposed at $220k, no change from the prior year, with a budget for the 4th of July Fireworks.  General Fund debt payments increased by $490k; as mentioned above, the first Debt payment for the 2021 Lease Revenue Bonds is included in the proposed budget of $599k. The Interfund loan to the Wastewater Enterprise was paid off in FY 20/21.  Overall the Public Works Department budget is estimated to decrease by less than 1 percent.

The Engineering department proposed budget includes an Engineering Technician position and COLA adjustments offset by savings in PERS UAL costs of $37k. The Corporation yard also realized savings in pension UAL Costs

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The table below shows General Fund Expenditures by Function or Program *Note: Costs shown in the table include base budget and Internal Service Fund Allocations.

FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR

GENERAL GOVERNMENT
City Council $ 120,522 $ 131,495 292,807 273,731 193,718 -29.2% Administration 672,136 751,316 1,222,411 1,198,807 1,270,375 6.0% Finance 530,342 468,474 606,666 553,118 606,485 9.6%
Other Non-Departmental (overhead) 756,981 872,371 1,183,638 1,076,307 1,158,450 7.6% General Government Subtotal 2,079,981 2,223,656 3,305,521 3,101,963 3,229,028 4.1%

PUBLIC SAFETY
Police Department 3,962,289 3,467,709 3,934,061 3,937,432 3,805,179 -3.4% Fire Department 378,756 439,962 447,758 447,758 439,962 -1.7% Public Safety Subtotal 4,341,045 3,907,671 4,381,819 4,385,190 4,245,141 -3.2% Community Services
Community Development 460,176 232,115 409,484 396,323 436,639 10.2% Marketing & Promotions 185,759 93,060 230,000 220,500 220,500 0.0% Community Contributions 38,162 69,869 183,728 132,500 152,962 15.4% General Fund Debt 185,533 37,964 204,906 197,207 687,563 248.7% Community Services Subtotal 869,630 433,008 1,028,118 946,530 1,497,663 58.2%

PUBLIC WORKS
Administration & Engineering 588,348 515,727 619,107 620,786 684,010 10.2% Parks and Facilities 47,171 31,927 39,800 19,600 18,600 -5.1% Street Maintenance 120,707 107,606 133,200 115,000 122,000 6.1% Storm Drains 24,922 10,847 16,000 16,000 19,500 21.9%
Corporation Yard 732,548 634,446 444,284 436,762 402,111 -7.9% Traffic and Safety 36,291 24,023 73,500 67,000 28,500 -57.5% Public Works Subtotal 1,549,987 1,324,576 1,325,891 1,275,148 1,274,721 0.0% General Fund Subtotal 8,840,643 7,888,911 10,041,349 9,708,831 10,246,553 5.5% Cost Allocation 474,904 478,497 686,131 681,042 686,131 0.7% TOTAL GENERAL FUND $ 9,315,547 $ 8,367,408 $ 10,727,480 $ 10,389,873 $ 10,932,684 5.2% Note: Administration, as presented above, includes Administrative Services, City Manager and City Attorney

GENERAL FUND

EXPENDITURES BY FUNCTION/PROGRAM
FY 2019/20 THROUGH FY 2022/23

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Public Safety represents the largest General Fund expenditure function/program at 35% of total General Fund expenditures, followed by General Government (Admin/Finance/City Attorney/City Clerk) at 19%, Community Services (including Public Works) at 12% and Non-Department at 11%.

Public Works, 1,274,721 ,
12%
Community Dev, 436,639 ,
4%
General Gov't, 2,070,578 ,
19%
Marketing & Promotions,
220,500 , 2%
Community Contributions,
152,962 , 1%
Police, 3,805,179 , 35%
Non-Dept, 1,158,450 , 11%
Debt, 687,563 , 6%
Fire, 439,962 , 4%
Indirect Charges, 686,131 ,
6%

GENERAL FUND EXPENDITURES BY FUNCTION

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Personnel Services
Personnel costs are the largest class of expenditures in the General Fund, representing nearly 62% of the FY 2022/23 Budget. Personnel Service cuts were implemented in FY 2019/20 as part of the City’s COVID-19 Budget reduction plan- Since then, the General Fund has filled back vacant positions, and personnel costs are projected to be higher than pre-pandemic numbers as cost of living adjustments and the emphasis on attracting and retaining employees will continue to increase the personnel costs in future years. The proposed budget includes a cost of living adjustment for employees, excluding the Police Department staff who receive annual increases on January 1 each year, based on a legally mandated (Chapter 2.68 Fort Bragg Municipal Code) salary survey of local law enforcement agencies.

Additionally, the proposed Budget also includes the replacement of the interim Police Chief and the interim City Manager with a permanent position that provides benefits which will increase the personnel services Budget. The City hopes to fill the positions by the new fiscal year.

Benefits recorded a decrease of 6%, primarily due to the issuance of $11.4 million in taxable Lease Revenue Bonds. Proceeds in the amount of $7.5 million were used to reduce the City’s unfunded pension liability, with an additional $3.5 million set aside for costs associated with the acquisition of the southern portion of the former Timber Mill property. The California Public Employees’ Retirement System (CalPERS) recognized a record 21.3% investment return for the fiscal year ending June 30, 2021. The record CalPERS investment return and the $7.5 million liability payment place the City better positioned to manage pension obligations going forward. The reduction in Unfunded liability reduced the annual CALPERS UAL Payments benefits budget by $389k annually, which was offset by increased benefit costs.

FY 2022/23, medical, dental, and vision rates did not change for active employees, but retiree medical costs are estimated to increase by 2.3%. Under current labor agreements, premium costs are shared 80% by the City and 20% by the employee. In addition, the City has 29 covered retirees, 23 of whom receive full health insurance coverage from the City. The remaining retirees pay a portion of the retiree and spousal coverage, depending on the date of hire. Retiree health benefits have been phased out through collective bargaining agreements. There are a number of current employees who are eligible for such benefits based on their date of hire.

The aggregate CalPERS increase (across all plans) in FY 2021/22 is expected to be 25% or $262k. This is a combination of additional staffing and increases in the unfunded portion of the pension liability. The City’s contribution to each employee’s pension benefits (i.e., the “employer’s share” of CalPERS -
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
Salaries & Wages $ 3,762,405 $ 3,271,863 $ 3,738,211 $ 3,773,057 $ 4,192,886 11% Benefits 2,622,230 2,489,172 2,911,246 2,772,027 2,616,939 -6% Materials & Services 2,028,570 1,979,891 3,075,215 2,895,723 2,630,193 -9% Other Expenditures 83,337 110,022 278,712 230,061 206,832 -10% Debt Service 185,533 37,964 37,964 37,964 599,703 1480% Subtotal 8,682,075 7,888,911 10,041,349 9,708,831 10,246,553 6% Allocations 633,474 478,497 686,131 681,042 686,132 1%
Subtotal with Allocations 9,315,549 8,367,408 10,727,480 10,389,873 10,932,685 5% Net Transfers - - - - - 0%
TOTAL $ 9,315,549 $ 8,367,408 $ 10,727,480 $ 10,389,873 $ 10,932,685 5%

EXPENDITURES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23

GENERAL FUND

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

premiums plus unfunded actuarial liability costs) is calculated at the following rates: Miscellaneous PEPRA-8.4%; Miscellaneous Classic-28.4%; Safety PEPRA-13.83%; Safety Classic-37.64%. Starting with FY 2018/19, employees in classic plans began paying 1% of the employer's share of pension costs per negotiated agreements.

In December 2016, the CalPERS Board of Administration approved lowering the CalPERS discount rate assumption (the long-term rate of return) from 7.50 percent to 7.00 percent over the next three years.

The full impact of discount rate change will be phased in completely over a seven-year period. Lowering the discount rate means plans will see increases in both the normal costs (the cost of pension benefits accruing in one year for active members) and the accrued liabilities. These increases will result in higher required employer contributions. Increased public agency employer contribution costs as a result of the lowering of the discount rate began in FY 2018/19.

The increased pension costs for the City will be substantial and will put significant pressure on the General Fund’s financial performance for years to come. The reduction in the CalPERS rate from 7% to

6.75% percent is not expected to be the last one. CalPERS has failed to meet the 7% percent targeted return in the prior fiscal years except for FY 20/21, where it recognized a 21.3% investment return (6.7% in FY 2018/19 and 4.7% in FY 2019/20). Over 20 years, the overall fund performance has averaged just

5.5%. As part of the Pension policy, the City is currently setting up a Section 115 Trust that will absorb some of the future fluctuations in the CALPERS discount rate, adding to the Unfunded Liability. The City Council had adopted a $1M contribution to the trust in FY 2021/22.

Non-Personnel Services
Professional Services will decrease by $265k in FY 2022/23 year over year increases due to one-time expenditures incurred in FY 21/22, such as the Broadband Feasibility $25k, Comp Study with Regional Government Services (RGS) $35k, Recruitment costs $60k, Alley Art Project $18 and Mill Site Phase 1 costs.

Insurance costs increased by $97k for property Insurance, cyber security, and general liability.

FY 2021/22 FY 2022/23
General Fund Materials & Services PROJECTED PROPOSED Change Professional Services 2,220,949 1,869,067 (351,882)
Utilities 161,500 169,000 7,500
Insurance 326,026 423,780 97,754
Training/Travel 89,556 70,700 (18,856)
Equipment Repair and Maintenance 5,000 2,000 (3,000)
Equipment Leases and Rental 35,698 39,721 4,023
Dues and Memberships 20,993 18,975 (2,018)
Small Tools and Equipment 33,400 34,150 750
Postage 2,600 2,800 200
Total General Fund Materials & Services $ 2,895,723 $ 2,630,193 $ (265,530)

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET BACKGROUND
On March 9, 2022, The City held its annual mid-year budget review meeting. At the meeting, the following long-term forecast was reviewed. It should be noted that the forecast was developed at a high level (low level of detail) and therefore does not match the detailed budget presented today. Staff is committed to refining the long-term forecast to make it as useful as possible in the years to come. The five-year projection is reproduced here for reference:

LONG-TERM FINANCIAL PLANNING
Long-term financial planning is an important tool used to help maintain ongoing financial sustainability and helps governments provide consistent services to their citizens. It is important to keep in mind that no one has a crystal ball and can predict the future with complete accuracy. However, the exercise of projecting revenues and costs into the future, while not likely to be 100% correct, still gives the government an opportunity to develop a general sense of its financial health in the years to come.

The long-term forecast provided in this report was developed at a high level (low level of detail). The City’s major sources of revenue were projected individually with all other revenue sources aggregated together. Likewise, the City’s major expenditure categories were projected individually with many costs aggregated together. The majority of the assumptions used in the report were based on a five-year historical trend. Year’s that were clear outliers were removed prior to averaging so as not to affect the overall trend. Some projections, however are based on known payment or increased percentages.

Likewise, the City’s internal service funds have developed detailed long-term expenditure plans that form the basis of the projection provided here. Additionally, the City’s debt service schedule is known and provided in the forecast.

The table on the following page includes five years of audited results for context as well as projected results for five additional years into the future. Four “what-if” scenarios are provided, showing possible long-term results if certain revenue enhancements were to be enacted.

According to Avenue Insights & Analytics, a 12-18-month recession estimated to begin in FY 2023-24 would have a one-and-a-half-year downturn before a 3.5 percent growth the year after, according to Avenue Insights & Analytics. The cumulative impact of about $435k for Sales tax in the General Fund.

Although the Transient Occupancy Tax has been a little more resilient, the estimated impact is over $235k.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Likely
Recession
FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 Audited Audited Audited Projected Forecast Forecast Forecast Forecast Forecast Revenue: Sales Tax 1,728,222 $ 1,797,520 $ 2,028,010 $ 2,090,000 $ 2,178,000 $ 2,025,540 2,025,540 2,096,434 2,169,809 Property Tax 1,074,931 1,107,039 1,085,532 1,152,076 1,176,309 1,205,716 1,235,859 1,248,218 1,279,423 Transient Occupancy Tax 2,640,275 2,204,152 3,321,928 3,324,158 3,371,081 3,135,105 3,229,158 3,293,742 3,392,554 Cost Allocations 1,863,711 2,238,252 2,299,275 2,578,777 2,781,850 2,907,033 3,037,850 3,174,553 3,317,408 All Other Revenue Sources 2,073,789 1,536,429 1,146,294 1,335,051 1,623,256 1,542,093 1,572,935 1,588,664 1,604,551 Total Revenue 9,380,928 8,883,392 9,881,040 10,480,063 11,130,495 10,815,488 11,101,342 11,401,610 11,763,745 Expenditures: Salaries & Wages 3,615,604 3,762,405 3,271,863 3,773,057 4,192,886 4,318,672 4,405,046 4,493,147 4,627,941 Pensions 792,101 1,016,499 915,481 984,436 614,288 632,717 658,025 664,605 671,252 Other Benefits 1,536,145 1,605,731 1,573,690 1,848,497 2,002,651 2,082,757 2,145,240 2,231,050 2,320,292 Benefits 2,328,246 2,622,230 2,489,172 2,832,933 2,616,939 2,747,786 2,830,220 2,095,655 2,191,543 Materials & Services 2,301,401 2,111,910 1,971,858 2,869,167 2,630,193 2,761,703 2,844,554 2,929,890 2,988,488 Allocations to Internal Service Funds 717,808 633,474 478,497 686,631 686,132 720,439 756,461 779,155 802,529 Other Expenditures 35,895 - 130,091 264,850 206,832 - - - Debt Service 185,533 185,533 37,964 37,964 599,703 543,322 611,197 677,197 756,774 Total Expenses 9,184,487 9,315,552 8,379,445 10,464,601 10,932,685 11,091,922 11,447,477 10,975,044 11,367,276 Net Transfers: (14,289) (18,229) (8,621) - - - -
Net Increase (Decrease) to Fund Balance 182,152 (450,389) 1,492,974 15,461 197,810 (276,434) (346,135) 426,567 396,469 Beginning Fund Balance 2,959,478 3,141,630 2,691,242 4,184,215 3,449,677 3,647,487 3,371,053 3,024,918 3,451,485 Ending Fund Balance 3,141,630 $ 2,691,242 $ 4,184,215 $ 3,449,677 $ 3,647,487 $ 3,371,053 $ 3,024,918 $ 3,451,485 $ 3,847,954 $ ised change in f/balance assuming $190k revenue annually - 205,461 387,810 (86,434) (156,135) 616,567 586,469 Projected Fund Balance 4,184,215 $ 4,389,677 $ 4,777,487 $ 4,691,053 $ 4,534,918 $ 5,151,485 $ 5,121,387 $ d change in fund balance assuming $430k revenue annually - 445,461 627,810 153,566 83,865 856,567 826,469 Projected Fund Balance 4,184,215 $ 4,629,677 $ 5,257,487 $ 5,411,053 $ 5,494,918 $ 6,351,485 $ 6,321,387 $ ange in fund balance - 25% Sales Tax first year ($500k/yr.) - 146,086 742,310 229,951 160,250 950,675 920,578 Projected Fund Balance 4,184,215 $ 4,330,302 $ 5,072,612 $ 5,302,563 $ 5,462,813 $ 6,413,488 $ 6,383,391 $ hange in fund balance - 25% Sales Tax first year ($750k/yr.) - 211,399 1,014,560 483,143 413,443 1,212,729 1,210,148 Projected Fund Balance 4,184,215 $ 4,395,614 $ 5,410,175 $ 5,893,318 $ 6,306,761 $ 7,519,490 $ 8,729,638 $ City of Fort Bragg General Fund Five Year Forecast
Storm Drain
Enterprise $190k
annually
Parcel Tax
$430k/yr.
1/4 cent General
Sales Tax
$500k/yr.
3/8 cent General
Sales Tax $750k/yr.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

$3,141,630
$2,691,242
$4,184,215
$3,449,677
$3,647,487
$3,371,053
$3,024,918
$3,451,485
$3,847,954
$4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- - 8,000,000 6,000,000 4,000,000 2,000,000
14,000,000 12,000,000 10,000,000
Audited Audited Audited Projected Forecast Forecast Forecast Forecast Forecast FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27

GENERAL FUND FIVE YEAR FORECAST
Total Revenue Total Expenses Ending Fund Balance Linear (Total Revenue)

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Transfers Transfers Net
Fund Type/Name In Out Transfers
110 General Fund
To 112 - Recession Reserve (50,903) (50,903)
Total - (50,903) (50,903)
112 Recession Reserve
From 110 - General Fund (Operating Reserve) 50,903 50,903 Total 50,903 - 50,903
120 - Parking in Lieu Fees
To 314 - MCOG (3,450) (3,450)
Total - (3,450) (3,450)
162 CDBG Program Income
To 334- Code Enforcement Program - (78,337) (78,337)
Total - (78,337) (78,337)
222 RMRA (LPP) - Gas Tax
To 420- Maple Street Project - -
To 421- 2022 Streets Project - (600,000) (600,000)
Total - (600,000) (600,000)
223 STP D1 MCOG
To 421- Streets Project-2021 - (206,405) (206,405)
Total - (206,405) (206,405)
250 Special Sales Tax - Street Repair
To 421- Streets Project (1,270,595) (1,270,595)
Total - (1,270,595) (1,270,595)
314 MCOG
To 421 Streets Project (162,000) (162,000)
From 121 - City Match CBD Parking Feasibility Study 3,450 3,450 Total 3,450 (162,000) (158,550)
319 Department of Water Resources
To 651- Raw Water Line (4,050,000) (4,050,000)
Total - (4,050,000) (4,050,000)
330 Federal Grants- USDA
To 522- Fleet Reimb (160,500) (160,500)
Total - (160,500) (160,500)
329 State Grants
To 425 Bainbridge Soccer Fields (177,952) (177,952)
Total - (177,952) (177,952)
334 CDBG 2020
From 162 Program Income- Code Enforcement 78,337 78,337 Total 78,337 - 78,337
419 Bainbridge Park Improvements (Wiggly Giggly)
From 520 Facilities Maint & Repair 200,000 - 200,000
Total 200,000 - 200,000
421 2022 Streets Project
From 222 LPP Grant 600,000 600,000
From 615 Water Capital 180,500 180,500
From 314 CRSAA 162,000 162,000
From 715 Wastew ater Capital 180,500 180,500
From 223- STP D1 MCOG 206,405 206,405
From 250- Special Sales Tax-Street Repair 1,270,595 - 1,270,595 Total 2,600,000 - 2,600,000
423 Town Hall Bathroom
From 520- Facilities ISF 130,000 - 130,000
Total 130,000 - 130,000
CITY OF FORT BRAGG - FY 2022/23
Operating Transfers - All Funds

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Transfers Transfers Net
Fund Type/Name In Out Transfers
425 Bainbridge Soccer Fields
From 329 State Grant 177,952 - 177,952
Total 177,952 - 177,952
426 Corporation Yard Roof Replacement
From 520- Facilities ISF 50,000 - 50,000
Total 50,000 - 50,000
520 Facilities
To 426 Corporation Yard Roof Replacement (50,000) (50,000) To 419 Wiggly Giggly- Bainbridge Park (200,000) (200,000) To 423 TH Bathrooms (130,000) (130,000)
Total - (380,000) (380,000)
522 Fleet
From 330 USDA Vehicle Replacement 160,500 160,500
Total 160,500 - 160,500
610 Water O&M
To 612- Recesion Reserve (49,607) (49,607)
To 615 - True up Operating Reserve - (457,074) (457,074) Total - (506,681) (506,681)
612 Water Recession Reserve
To 610 - True up Recession Reserve 49,607 49,607
Total 49,607 - 49,607
615 Water Enterprise Capital Reserve
From 610 - True up Operating Reserve 457,074 - 457,074
To 651 - Pudding Creek Water Main (812,000) (812,000)
To 651 - Distribution System (719,031) (719,031)
To 651 - Distribution System (850,000) (850,000)
To 421 - 2022 Streets Project (180,500) (180,500)
Total 457,074 (2,561,531) (2,104,457)
651 Water Enterprise Capital Projects
From 615 Water Tank #2 Rehab 719,031 719,031
From 615 Pudding Creek Water Main 812,000 812,000
From 319- DWR Raw Water Engineering 4,050,000 4,050,000 From 615 Distribution System 850,000 850,000
Total 6,431,031 - 6,431,031
710 Wastewater O&M
From 712 - True up Recession Reserve - (12,087) (12,087) To 714 - Non Routine Maintenance (40,000) (40,000)
To 717 - Debt Service Payment (184,850) (184,850)
To 715 - Sw eep Excess Fund Balance to Capital Reserve (611,571) (611,571) Total - (848,508) (848,508)
712 WW Enterprise Recession Reserve
From 710- Wastew ater O&M-True up Recession 12,087 - 12,087 Total 12,087 - 12,087
714 WW Enterprise Non-Routine Maintenance
From 710- Wastew ater O&M 40,000 40,000
Total 40,000 - 40,000
715 WW Enterprise Capital Reserve
From 710 - Sw eep Excess Fund Balance to Capital 611,571 - 611,571 To 716 - WW Capital Projects (225,000) (225,000)
To 716 - WW Capital Projects (80,000) (80,000)
To 716 - WW Capital Projects (170,000) (170,000)
To 421 - 2022 Streets Project (180,500) (180,500)
To 716 - WW Capital Projects (300,000) (300,000)
Total 611,571 (955,500) (343,929)
716 WW Capital Projects
From 717- Pudding Creek Sew er Main 225,000 225,000
From 717- Dryer Building Reconstruction 80,000 80,000
From 717- Elm Street Pump Station 170,000 170,000
From 715- Onsite Sodium Hypochlorite Generator 300,000 300,000 Total 775,000 - 775,000
717 JPFA WWTP Financing
From 710 - Debt Service 184,850 184,850
Total 184,850 - 184,850
Total Transfers $ 12,012,362 $ (12,012,362) $ -
(Concluded)
CITY OF FORT BRAGG - FY 2022/23
Operating Transfers - All Funds

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

INTRODUCTION The purpose of the City’s Cost Allocation Plan is to identify the total costs of providing specific City services and appropriately allocate these costs to the Programs and or Funds that benefit from the identified services. Why is a separate cost accounting analysis required to do this? Because the cost of delivering services can be classified into two basic categories: direct and indirect costs. Programs that incur only direct costs benefit from the City’s administrative structure and therefore should be charged for that support.

DIRECT VERSUS INDIRECT COSTS
“Direct costs” by their nature are usually easy to identify and relate to a specific service. However, this is not the case for “indirect costs.” As such, if we want to know the “total cost” of providing a specific service, then we need to develop an approach for reasonably allocating indirect costs to direct cost programs.

Direct costs are those that can be specifically identified with a particular cost objective, such as street maintenance, police protection and water service. Indirect costs are not readily identifiable with a direct operating program, but rather, are incurred for a joint purpose that benefits more than one cost objective.

Although indirect costs are generally not readily identifiable with direct cost programs, their cost should be included if we want to know the total cost of delivering specific services.

Common examples of indirect costs provided by City programs include: The Finance Department provides financial management and utility billing services, the Administrative Services Department provides legal services and personnel administration and the City’s Public Works Administration department provides engineering, work load planning and personnel oversight.

It is common to use “Cost Drivers” when allocating costs from Indirect Programs/Functions to Direct Programs. A cost driver is the unit of an activity that causes the change in activity's cost. Examples of cost drivers are; operating budget, agenda items and full time equivalent staffing (FTEs).

Plan Goal: Reasonable Allocation of Costs. The goal of most Cost Allocation Plans is to provide a clear, consistent and reasonable basis for allocating indirect costs. It is important to stress that the goal of the Cost Allocation Plan is a reasonable allocation of indirect costs, not a “perfect” one. By their very nature, indirect costs are difficult to link with direct costs. As such, in developing an allocation approach, it is important to keep this goal in mind: balancing the cost and effort of complicated allocation methods with the likely benefits from the end results.

INDIRECT COST ALLOCATION STRATEGY
Personnel Costs
The adopted allocation plan begins with an allocation of personnel time and cost to each of the City’s three Internal Services Funds, each of the City’s Direct Programs and each of the City’s Indirect Programs. This is accomplished through the City’s time keeping software. The allocation is based entirely on the detailed timekeeping of each employee within the City. Once time and associated costs have been allocated, a count of full time equivalent staffing (FTEs) is developed (see table 2).

COST ALLOCATION PLAN

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Internal Service Funds
After personnel costs have been allocated, the City’s three Internal Service fund costs are allocated to both the Direct Cost Programs as well as the Indirect Cost Programs (see tables 3 &4). The City has three Internal Service Funds; Facilities Repair & Maintenance, Technology Maintenance & Replacement and Fleet & Equipment Services:
• Facilities Repair & Maintenance uses a cost driver of “square footage”. In other words, each program is charged a Facilities charge based on an approximation of the facility square footage used by that program.
• Technology Maintenance & Replacement (IT) uses a cost driver of “workstations” (including devices such as iPad). Each program is charged an IT charge based on the number of workstations utilized by that program.
• Fleet & Equipment Services (Fleet) uses a cost driver of “fleet vehicles”. Each program is charged a Fleet charge based on the number of vehicles utilized by that program.

Indirect Cost Allocations
The next step in preparing the City's Cost Allocation Plan is determining direct and indirect costs (see tables 5&6). Program costs that primarily provide service to the public are identified as direct costs, whereas the cost of programs that primarily provide services to the organization are identified as indirect costs.

The City’s direct costs programs have been identified as follows: Public Safety (Including Police & Fire), Community Development, Parks, Storm Drains, Street Maintenance, Street Traffic & Safety, Water Utility and Wastewater Utility.

The City’s indirect costs programs have been identified as follows: City Council, City Attorney, City Administration, Human Resources, City Clerk, Financial Management, Utility Billing, Corporation Yard and Public Works Administration.
• City Council uses a cost driver of “agenda items”. Each direct cost program is charged a City Council charge based on the number of City Council Agenda items related to that program. • City Attorney uses a cost driver of “agenda items”. Each direct cost program is charged an Attorney charge based on the number of City Council Agenda items related to that program. • City Clerk uses a cost driver of “agenda items”. Each direct cost program is charged a City Clerk charge based on the number of City Council Agenda items related to that program. • Human Resources uses a cost driver of “full time equivalent (FTE) staffing”. Each direct cost program is charged a Human Resources charge based on the number of FTEs attributed to that program. • City Administration uses a cost driver of “operating budget”. Each direct cost program is charged a City Administration charge based on the relative amount of the program’s operating budget. • Non-departmental uses a cost driver of “operating budget”. Each direct cost program is charged a Non-departmental charge based on the relative amount of the program’s operating budget. • Financial Management uses a cost driver of “operating budget”. Each direct cost program is charged a Financial Management charge based on the relative amount of the program’s operating budget. • Utility Billing uses a cost driver of “bills processed”. Each direct cost program is charged a Utility Billing charge based on the number of bills processed on behalf of that program. • Public Works Administration and the Corporation Yard uses a cost driver of “public works operating budget”. Each direct cost program is charged a Public Works Administration charge based on the relative amount of the program’s public works operating budget.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PLAN PREPARATION
The adopted plan has been prepared using staff hours from the first seven months of FY 21/22, cost drivers from FY 2019/20, and budget cost estimates from the Adopted fiscal year 2021/22 budget.

Additionally, the cost allocation plan will be updated at each fiscal year-end to reflect actual staff hours spent, actual program expenditures, and actual cost driver rates.

SUMMARY
The Cost Allocation Plan helps make a determination of total program costs possible by establishing a reasonable methodology for identifying and allocating indirect costs to direct cost programs. Because of this, the Cost Allocation Plan is a valuable analytical tool. The details of the adopted allocation of costs are summarized in the tables presented on the following pages.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

TABLES
Table 1: Program Classifications
Table 2: Personnel Cost Allocation and FTE count
Internal Service Funds Direct Programs Indirect Programs Facilities Police/Fire Department City Council
IT Community Development City Attorney
Fleet Parks City Administration
Storm Drains Human Resources
Street Maintenance City Clerk
Street Traffic & Safety Financial Management
Water Enterprise Utility Billing
Wastewater Enterprise PW Administration
Corporation Yard
Personnel Costs FTEs
Facilities 93,568 0.6
Information Technology 92,792 1.4
Fleet 131,076 1.1
City Council 220,352 0.9
City Clerk 128,911 1.0
Administration 162,257 1.2
City Attorney 660 -
Human Resources 125,790 1.1
Financial Management 476,026 4.2
Utility Billing 197,383 2.0
PW Administration 176,388 1.4
Corporation Yard 26,160 0.2
Public Safety 3,215,944 24.3
Community Development 572,488 5.1
Parks 242,287 1.8
Storm Drains 86,902 0.6
Street Maintenance 52,835 0.4
Traffic&Safety 31,895 0.2
Water Utility 644,183 5.2
Wastewater Utility 965,852 7.7
7,643,751 60.26
Internal
Service
Funds:

Direct Cost
Programs:

Indirect
Cost
Programs:

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Table 3: Internal Service Funds Cost Driver Rate Table
Table 4: Internal Service Funds Allocation to Programs
Rate Table
ISFs Cost Driver Total Driver Rate
Facilities
Personnel Cost $ 93,568
Non-Personnel Cost 101,500
Long Term Funding Plan - $ 195,068 Square footage 68,926 $ 2.83 Information Tech
Personnel Cost $ 92,792
Non-Personnel Cost 348,198
Long Term Funding Plan - $ 440,990 Workstations 169 $ 2,609 Fleet
Personnel Cost $ 131,076
Non-Personnel Cost 253,600
Long Term Funding Plan - $ 384,676 Fleet Vehicles 60 6,411 $ Total Indirect Costs $ 1,020,734
Note: Each rate is derived by dividing Cost by Total Driver Sq Ft Allocation Work-stations Allocation Fleet Value % Allocation Direct Programs
Police/Fire Department 24,319 68,826 68.4 178,416 34% 129,924 377,166 Community Development 2,140 6,056 12.9 33,663 0% - 39,719 Parks 21,003 59,441 5.0 13,047 3% 12,902 85,389
Storm Drains - - 2.0 5,219 2% 6,435 11,653
Street Maintenance - - 2.0 5,219 11% 42,547 47,766
Street Traffic & Safety - - - - 2% 6,180 6,180
Water Enterprise - - 5.2 13,465 15% 58,348 71,814
Wastewater Enterprise - - 14.2 37,030 30% 116, 994 154,024 Indirect Programs
City Council 2,786 7,885 18.1 47,129 0% - 55,013
City Attorney - - - - 0% - -
City Administration 5,884 16,653 2.6 6,733 3% 11,346 34,732 Corporation Yard 7,980 22,584 10.4 27,010 0% - 49,595
Human Resources 535 1,514 2.6 6,733 0% - 8,247
City Clerk 535 1,514 5.2 13,465 0% - 14,979
Financial Management 1,070 3,028 11.6 30,297 0% - 33,325 Utility Billing 1,070 3,028 1.3 3,366 0% - 6,394
PW Administration 1,605 4,542 7.7 20,198 0% - 24,740
Totals 68,926 $ 195,068 169 440,990 $ 100% 384, $ 676 $ 1,020,734 Summary of ISF Allocation
Total Allocation
Facilities Info Tech Fleet

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Table 5: Rate Table

Indirect Programs Cost Total Cost Driver Total Driver Rate City Council
Personnel Cost $ 220,352
Non-Personnel Cost 56,800
Facilities 7,885
IT 47,129
Fleet - $ 332,166 Agenda Items 393 845 $
City Attorney
Personnel Cost 660
Non-Personnel Cost 150,000
Fleet - $ 150,660 Agenda Items 393 383 $
City Clerk
Personnel Cost 128,911
Non-Personnel Cost 11,500
Facilities 1,514
IT 13,465
Fleet - $ 155,390 Agenda Items 393 395 $
Human Resources
Personnel Cost 125,790
Non-Personnel Cost 41750
Facilities 1,514
IT 6,733
Fleet - $ 175,786 Full Time Equivalent staffing 45.39 $ 3,873 City Administration
Personnel Cost 162,257
Non-Personnel Cost 26,700
Facilities 16,653
IT 6,733
Fleet 11,346
Program Income (88,916) $ 134,773 Operating Budget 9,002,919 1% Non-departmental
Personnel Cost 407,270
Non-Personnel Cost 619,067
Program Income - $ 1,026,337 Operating Budget 9,002,919 11% Financial Management
Personnel Cost 476,026
Non-Personnel Cost 55,193
Facilities 3,028
IT 30,297
Program Income (203,581) $ 360,963 Operating Budget 9,002,919 4% Utility Billing
Personnel Cost 197,383
Facilities -
IT 3,366
Fleet - $ 200,750 Bills Processed 73,140 $ 2.74
PW Administration
Personnel Cost 176,388
Non-Personnel Cost 9,400
Facilities 4,542
IT 20,198
Program Income (85,000) $ 125,528 PW Operating Budget 4,223,558 3% Corp Yard
Personnel Cost 26,160
Non-Personnel Cost 11,675
Facilities 22,584
IT 27,010
Fleet - 87,430 PW Operating Budget 4,223,558 2%
Total Indirect Costs $ 2,749,783
Note: Each rate is derived by dividing Total Cost by Total Driver Rate Table

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Table 6: Indirect Programs Cost Allocation to Direct Programs :

Direct Programs
Agenda
Items Allocation
Agenda
Items Allocation
Agenda
Items Allocation
Full Time
Equivalent
staffing Allocation
Operating
Budget Allocation
Operating
Budget Allocation
Indirect Cost AllocationPolice/Fire Department
53 44,541 53 20,202 53 20,837 24.3 94,282 4,158,404 62,251 4,158,404 474,060 Indirect Cost AllocationCommunity Development Department 82 69,052 82 31,320 82 32,303 5.1 19,585 620,957 9,296 620,957 70,789 Indirect Cost AllocationParks
36 30,173 36 13,685 36 14,115 1.8 7,161 367,477 5,501 367,477 41,892 Indirect Cost AllocationStorm Drains
34 28,482 34 12,919 34 13,324 0.6 2,390 114,556 1,715 114,556 13,059 Indirect Cost AllocationStreet Maintenance
40 33,553 40 15,219 40 15,697 0.4 1,407 217,601 3,257 217,601 24,807 Indirect Cost AllocationStreet Traffic & Safety
39 32,708 39 14,835 39 15,301 0.2 866 111,575 1,670 111,575 12,720 Indirect Cost AllocationWater Enterprise
44 36,813 44 16,697 44 17,222 5.2 20,106 1,240,797 18,575 1,240,797 141,451 Indirect Cost AllocationWastewater Enterprise
42 35,123 42 15,931 42 16,431 7.7 29,988 2,171,554 32,508 2,171,554 247,558 Total 367 310,445 $ 367 140,809 $ 367 145,229 $ 45.39 175,786 $ 9,002,919 $ 134,773 $ 9,002,919 $ 1,026,337 $ Summary of Indirect Cost Allocation
City Council Human Resources Non-departmental City Administration City Clerk City Attorney

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Table 6: Indirect Programs Cost Allocation to Direct Programs (continued) :

Direct Programs
Operating
Budget Allocation Bills Processed Allocation
PW Operating
Budget Allocation
PW Operating
Budget Allocation
Total Indirect
Cost
Full Cost
Indirect Cost AllocationPolice/Fire Department
4,158,404 166,727 - - - - - - 882,901 5,041,305
Indirect Cost AllocationCommunity Development Department 620,957 24,897 - - - - - - 257,242 878,198
Indirect Cost AllocationParks
367,477 14,734 - - 367,477 7,607 367,477 10,922 138,183 505,659 Indirect Cost AllocationStorm Drains
114,556 4,593 - - 114,556 2,371 114,556 3,405 79,887 194,442 Indirect Cost AllocationStreet Maintenance
217,601 8,725 - - 217,601 4,504 217,601 6,467 109,132 326,733 Indirect Cost AllocationStreet Traffic & Safety
111,575 4,473 - - 111,575 2,310 111,575 3,316 85,890 197,465 Indirect Cost AllocationWater Enterprise
1,240,797 49,749 33,888 93,013 1,240,797 25,685 1,240,797 36,878 430,504 1,671,301 Indirect Cost AllocationWastewater Enterprise
2,171,554 87,066 39,252 107,736 2,171,554 44,952 2,171,554 64,541 636,882 2,808,436 Total 9,002,919 $ 360,963 $ 73,140 $ 200,750 $ 4,223,558 $ 87,430 $ 4,223,558 $ 125,528 $ 2,620,620 $ 11,623,539 $ PW Administration Utility Billing Financial Management Corp Yard Summary of Indirect Cost Allocation

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FY FY FY FY FY FY FY FY FY FY FY
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 General Government Administrative Services 4.80 6.00 6.00 6.00 6.50 6.50 7.00 7.00 6.00 6 8 Finance Department 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.5 5 Sub-Total 8.80 10.00 10.00 10.00 10.50 10.50 11.00 11.00 10.00 10.50 13.00 Public Safety Police Department 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22 26 Sub-Total 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 26.00 Community Services Community Development 3.80 3.80 4.30 4.00 4.30 4.50 4.80 4.80 3.00 4 4 Public Works 12.60 12.60 13.60 12.60 12.80 12.80 14.00 14.00 15.80 15.8 15.5 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8 9 Sub-Total 24.40 24.40 25.90 24.60 25.10 25.30 26.80 26.80 26.80 27.80 28.50 Total Authorized Positions 54.20 55.40 57.90 56.60 57.60 57.80 59.80 59.80 58.80 60.30 67.50 Note 2: In FY2012/13 an Information Technology Technician position was added to Administrative Services. and the increase to 80% of the Water Project Coordinator in Public Works. The Associate Planner in Community Development was reduced to 80%.Note 6: FY 2016/17 reflect reclassification of the Operations Manager to the Assistant Public Works DirectorNote 7: FY 2017/18 reflects reclassification of the part time (80%) Water Project Coordinator to a full time Engineering TechnicianNote 11: In FY 2018/19 the Administrative Services Director position was eliminated from Administratvie ServicesNote 12: In FY 2018/19 the Police Lieutenant position was eliminated from the Police DepartmentNote 13: In FY 2018/19 an additional CSO position was added to the Police DepartmentNote 14: In FY 2018/19 the Special Project Manager and the Special Projects Assistant moved from the Community Development Department to the Public Works Department

TEN-YEAR AUTHORIZED STAFF POSITION COMPARISON
Note 9: FY 2017/18 reflects the increase of the Grants Assistant position from Note 10: FY 2017/18 reflects the increase of the AV Technician position from p Note 8: FY 2017/18 reflects the addition of a Public Works Maintenance I posit Note 1: Staffing comparison excludes Seasonal and Temporary positions. Note 3: In FY2013/14, a Community Service Officer position was added to the Police Department; an Operator in Training was added to the Wastewater Enterprise; and a part-time grant-funded Grants Note 4: FY 2014/15 reflects reclassification of the Housing & Economic Development Coordinator to full Note 5: FY 2015/16 reflects the authorization of a part-time Grants Assistant in Community Development, a part-time Au

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

0 8070605040302010
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Adopted Adopted Adopted Adopted Adopted Adopted AdoptedProposedProposedProposed

TOTAL AUTHORIZED POSITIONS

TEN YEAR AUTHORIZED STAFFING COMPARISON

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FY 2022/23 ARTICLE XIIIB APPROPRIATIONS LIMIT
The Appropriations Limit imposed by Proposition 4 and modified by Propositions 98 and 111 creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The Appropriations Limit is based on actual appropriations during FY 1978/79 and is increased each year using the growth of population and inflation. The only revenues that are restricted by the Appropriations Limit are those referred to as “proceeds of taxes.” Some examples of taxes are sales tax, property tax, transient occupancy tax and State motor vehicles in lieu tax.

During any fiscal year, a city may not appropriate any proceeds of taxes it receives in excess of its Appropriations Limit. If the city receives excess funds in any one year, it can carry them into the subsequent year to be used if the city falls below its Appropriations Limit in that year. Any excess funds remaining after the second year must be returned to the taxpayers by reducing tax rates or fees. As an alternative, a majority of the voters may approve an “override” to increase the Appropriations Limit. The City of Fort Bragg’s budgeted expenditures have always been well below its annual Appropriations Limit.

The factors used are:
• Population Factor – At the City’s choice, either the annual change in City or County population. • Price Factor – At the City’s choice, either the change in California per capita income or increase in non-residential assessed valuation due to new construction.

The formula to be used in calculating the growth rate is:
% Change in population + 100.00
100.00
Multiplied by either
$ Change in per capita income + 100.00
100.00
Or
Change in non-residential assessments + 100.00
100.00
The resultant rate multiplied by the previous appropriation limit equals the new appropriation limit. In May 2019, the California State Department of Finance notified cities of the population change and the per capita personal income factor to be used to determine the appropriation limit. Using the change in per capita income method, the calculation as applied to the City of Fort Bragg for FY 2022/23 is:
• The population change at January 1 of the previous year for the County is <-0.78> and for the City is <1.26%>. The City population change is the greater of the two therefore it is the percentage that will be used.
• The per capita income percentage change is 7.55%.

The factor for determining the year-to-year increase is computed as:

7.55 + 100.00 X <1.26%> + 100.00 = 1.03278
100.00 100.00
Applying this year’s factor to last year’s limit of $11,470,514, the appropriations limit for FY 2022/23 is $12,491,978. With appropriations subject to the limitation totaling approximately $7,557,831 the City of Fort Bragg is not at risk of exceeding the Gann Limit.

BUDGET SUMMARY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

Proceeds of Taxes
Property & Other Taxes
Property Taxes $ 1,156,681
Sales & Use Taxes, Prop 172 Taxes 2,178,000
Transient Occupancy Taxes 3,371,081
Franchise Taxes 642,442
Transfer Taxes 19,628
Business License Taxes 190,000
Subtotal - Taxes 7,557,831
Proceeds of Non Taxes
Licenses & Permits 95,413
Fines & Forfeitures 31,500
Use of Money & Property (less interest earned) 14,300
Intergovernmental 517,555
Charges for Services 2,852,396
Other Revenues 14,500
Subtotal - Non Taxes 3,525,664
Total Non Taxes & Taxes 11,083,495
Allocate Interest Based on Ratios
Non Taxes (33%) 14,951
Taxes (67%) 32,049
Total Interest 47,000
Total Revenue $ 11,130,495
FY 2022/23 Appropriations Limit 12,491,978
Less Proceeds of Taxes 7,589,881
Under Maximum Appropriation Limit $ 4,902,098
City of Fort Bragg Appropriation Limit
Applied to FY 22/23 Budget
DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg ~ FY 2022/23 Proposed Budget

A five-member elected City Council provides governance over the City of Fort Bragg’s services to a population of approximately 7,000 residents. Each Councilmember is elected at-large and serves a four-year term. The Mayor is elected by the members of the City Council and serves a two-year term. The Council convenes in regular session on the 2nd and 4th Mondays of each month. All regular meetings are held in Fort Bragg Town Hall and are open to the public.

SUMMARY OF SERVICES
The Council establishes policies for City operations, approves all budgets, and ensures appropriate representation and responses to community interests. The City Council appoints the City Manager who supports the City Council in its policy development functions and ensures that the City Council’s policies, programs, and priorities are addressed through the work of City staff.

STRATEGIC GOALS AND OBJECTIVES
Through a Goal Setting Retreat, the City Council established the following priorities and goals:

Jobs / Industry

1. Become more business and customer service friendly

2. Partner with educational institutions

3. Foster and help sustain local businesses

CITY COUNCIL
Mayor
Vice Mayor
Councilmember
Councilmember
Councilmember
Public Works &
Facilities
Committee
Community
Development
Committee
Finance &
Administration
Committee
Public Safety
Committee

CITY COUNCIL
DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Quality of Life

1. Beautification of streets/sidewalks

2. Assist façade improvements for businesses

3. Pursue partnerships to maintain open space

4. Maintain a fully staffed police force

Housing

1. 200 units of housing in the next 5 years

2. Pursue Community Land Trust/JPA/Housing Authority

3. Streamline permitting and creative approaches to fees

Infrastructure

1. Develop water security

2. Renewable energy

3. Emphasize grants for City infrastructure
FY 2021/22 TOP ACCOMPLISHMENTS
• Blue Economy symposium
• Developed and lead an advisory committee to advise on City name change. • Secured funding for Soccer Fields
• Obtained Social Service Grant to assist Police Department FY 2022/23 TOP PRIORITIES
• Infrastructure projects:
o Water supply and resiliency
o Broadband expansion
o Streets, roadway and Americans with Disabilities Act (ADA) improvements o Affordable housing in City
• Financial resiliancy
o Initiate ballot measure to increase sales tax by 3/8 of one percent o Pay down PERS unfunded liability
o Economic development and growth
• Perform park structural repairs, upgrades and maintenance • Advertise and find qualified candidates to fill vacancies on City Council.

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET OVERVIEW
The FY 2022/23 Budget for the City Council is $193k, a decrease of $80k or 29% from the projected FY 2021/22 year-end total. The decrease is due to one-time expenditures incurred in the prior fiscal year; relating to the Alleyway Art Project $18k, Environmental Assessment of the Mill Site $11k, and $27k for the recruitment of a new City Manager position. The City Council Goals Budget is $35k. Election costs will increase by $5k for the November 2022 elections.

Council members are paid a small stipend. The Budget for FY 2022/23 is based on the maximum number of meetings anticipated for the year.

CITY COUNCIL DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4110
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 112,737 $ 134,832 $ 134,815 $ 140,218 4% Non-Personnel Services 7,784 157,975 138,916 53,500 -61% Total Departmental Expenditure 120,522 292,807 273,731 193,718 -29% Net Rev/Exp (120,522) (292,807) (273,731) (193,718) -29% Cost Allocation Summary
Expense - Cost Allocations (58,060) (65,069) (66,495) (65,069) 100% Revenue - Personnel Allocations (54,243) (105,911) (105,911) (105,911) 0% Net Cost Allocation (112,303) (170,980) (172,406) (170,980) -1% Net Expenditure $ (8,219) $ (121,827) $ (101,325) $ (22,738) -78% DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Expenditure Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4110 Detail Detail Budget
Personnel Costs
Salaries & Wages, Regular $ 25,200
Employee Benefits 115,018
Total Personnel Costs $ 140,218
Materials & Services
110-4110-0319 Professional Services 35,000
110-4110-0366 Training/Travel Reimbursement 8,000
110-4110-0371 Meetings/City Business 500
Total Material & Services 43,500
110-4110-0315 Election costs 10,000
Total Other Expenditures 10,000
Total - City Council $ 193,718
DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg ~ FY 2022/23 Proposed Budget

COST ALLOCATION DETAIL
Fund #110
Department: 4110
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation 127,391 118,426 117,000 118,426 100% 0802 Cost Allocation contra exp (226,252) (238,509) (238,509) (238,509) -100% 0396 Allocation to ISF-IT 32,485 47,129 47,129 47,129 100% 0397 Allocation to ISF-Facilities 8,316 7,885 7,885 7,885 100% 3499 Personnel Cost Allocation - Revenue (54,243) (105,911) (105,911) (105,911) 0% Net Cost Allocation (112,303) (170,980) (172,406) (170,980) -1% EXPENDITURE BUDGET DETAIL:

Fund #110
Department: 4110
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 22,096 $ 25,200 $ 24,847 $ 25,200 1% 0200 Employee Benefits 90,641 109,632 109,968 115,018 4% Personnel Services 112,737 134,832 134,815 140,218 4%
0315 Election Costs - 5,000 5,000 10,000 100%
0319 Professional Services 4,577 146,175 126,000 35,000 100% 0366 Training/Travel Reimbursement 3,011 6,000 7,816 8,000 2% 0371 Meetings/City Business 196 800 100 500 400%
Non-Personnel Services 7,784 157,975 138,916 53,500 -61% Total City Council $ 120,522 $ 292,807 $ 273,731 $ 193,718 -29% DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The City's Administration includes the City Attorney, City Manager, and the Administrative Services Department. Each entity contributes to the professional leadership of the organization, implementation of City Council policy objectives, and administration of City services and programs. The City's Administration works closely and provides support to other City departments with the goals of ensuring the professional delivery of quality public services; an efficient, responsive, and accountable government; fiscal stability; economic vitality; quality of life; and effective citizen engagement.

SUMMARY OF SERVICES
The City's Administration is a General Government support function. In addition to the City Manager and City Attorney, the City's Administration is comprised of the Administrative Services Department which has six full-time staff members: Assistant to the City Manager, City Clerk, Grants Coordinator, Administrative Analyst, Human Resources Analyst, Administrative Assistant. The Administration budget includes appropriations for the City Manager, the City Attorney (a contracted position), and the Administrative Services Department.

Fort Bragg has a Council-Manager form of government. The Council works collaboratively to set key City policies and priorities, pass ordinances, approve new projects and programs, and adopt the annual Budget. The City Manager is responsible for day-to-day administration, including implementing Council policies, advising the Council and making professional recommendations on Council decisions, formulating the Budget, and ensuring sound and effective management of City staff and resources.

The City contracts with Jones & Mayer, a firm specializing in municipal law, for City Attorney services.

The City Attorney is appointed by the City Council. The City Attorney provides professional legal services AUTHORIZED FTE FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY 20 FY 21 FY 22 FY 23 Administration Department 6 6 6 6.5 7 7 6 6 6 7 7

ADMINISTRATION DEPARTMENT

CITY MANAGER CITY ATTORNEY

CITY CLERK

ADMIN ASSISTANT HR ANALYST

ASSISTANT TO THE CITY

MANAGER

GRANTS COORDINATOR ADMINISTRATIVE

ANALYST
DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
to the City Council, the City Manager, the departments of the City, and the Planning Commission.

Services include attending public meetings, providing legal opinions, reviewing and drafting legal documents and contracts, providing advice regarding public officials' conflicts of interest, providing advice regarding personnel and labor law issues, leading negotiations on behalf of the City Council with the City's represented employee groups and representing the City in litigation and before courts and administrative agencies. The City Attorney assigns legal work to various specialists in the firm or to outside counsel, as needed.

The Administrative Services Department is responsible for a wide array of administrative services including: employee/labor relations; contract negotiations; personnel and administrative policies and regulations; employee benefits administration; personnel recruitment and retention; employee classification, compensation and evaluations; risk management; assistance with budget preparation and monitoring; preparing agenda packets and maintaining official records; responding to public records requests; monitoring compliance with Fair Political Practices Commission requirements; preparing ordinances for codification; overseeing elections; maintaining the City's official website and social media pages; maintaining updates to the Fort Bragg Municipal Code; monitoring the City's safety programs and protocols; Economic Development; Housing programs and development; and assisting the City Manager and other departments on an as-needed basis.

STRATEGIC GOALS AND OBJECTIVES
• Exercise overall responsibility for sound and effective management by City government.

Recommend administrative, fiscal and operational policies to the City Council to improve the efficiency and effectiveness of the City's operations.
• Ensure items prepared for placement on the City Council's agenda are complete and sufficient for Council decision-making, and make appropriate recommendations on each item. • Implement the City Council's goals and objectives by assuring that the actions and programs necessary to achieve the Council's priorities are integrated into the day-to-day work programs of City departments.
• Ensure that sound fiscal management policies are implemented throughout the organization. • Direct administration of City personnel policies and administrative procedures including employee recruitment, retention, examination, appointment and dismissal. • Encourage the professional development and training of all employees in order to develop competency to perform in accordance with the values of leadership, performance excellence, team building and customer service.
• Monitor and work with other City Departments to ensure the City's safety programs are deployed and compliant with requirements.
• Ensure that the City is prepared for natural, civil and other emergencies and disaster by coordinating planning, training and emergency operations drills.

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2021/22 TOP ACCOMPLISHMENTS
• Initiated a regional conversation to explore how opportunities within the "Blue Economy" could improve livelihoods, while nurturing healthy marine ecosystems; culminating in a four day, city-wide event: Blue Economy Symposium & Learning Festival.
• Oversaw the Visit Fort Bragg Committee and destination marketing team to implement special events and seasonal marketing campaigns, such as the Magic Market, Holiday Gift Guide, Winter Wonderland, and more.
• Incubated a Community Land Trust focused on providing home ownership opportunities for workforce earning up to 120% of the area median income – Housing Mendocino Coast. • Held an Economic Development Workshop for City Council, which resulted in numerous activities and programs to support downtown revitalization, including: Business Assistance Loans, Comprehensive Code Enforcement, Renewed Kiosks and Signage, Quarterly Merchant Meetings. • Upgraded and updated the City of Fort Bragg website to a new and more modern user-friendly site. • Installed new digital kiosk display outside City Hall for public notices, wayfinding and agenda information.
• Implemented electronic and paperless filing system for Fair Political Practices Commission campaign disclosure statements and statements of economic interest. • Transitioned public meetings from Zoom only to hybrid in-person/virtual meetings. • Digitized approximately 385 of the City's original recorded deeds and created a searchable deed index.
• The City Clerk achieved the Master Municipal Clerk (MMC) designation from the International Institute of Municipal Clerks and became one of only 167 MMCs in California and 1,339 nationwide. • Human Resources assisted Finance with migration of Springbrook system to the cloud. • Human Resources assisted Finance with implementation of GovInvest Labor module. • Implemented human resources internal processes to reduce paperwork and administration time.

PERFORMANCE / WORKLOAD MEASURES
INDICATORS FY18 FY19 FY20 FY21

HUMAN RESOURCES
Number of job posting 4 10 16 17
Number of applications received and reviewed 184 110 365 217 Open Enrollment compliance and Meetings held 95% - 3 95% - 3 100% 100% Number of new hires 7 10 8 17
Safety Meetings 4 4 2 3

CITY CLERK
Ordinances processed 8 6 8 13
Resolutions processed 110 118 122 148
Contracts processed 105 75 61 97
City council meeting Agenda packets published 53 46 47 42 Public Records requests processed / Records reviewed 146 / 1,074 78 / 2,041 146 / 12,027 294 / 8,868 Weddings performed 1 2 2 4
DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2022/23 TOP PRIORITIES
• Continue to implement technical solutions for efficiency and increased information availability to staff and members of the public
• Continue to engage in a regional approach to economic development that supports the long-term health of in and around Fort Bragg
• Initiate pilot project for Housing Mendocino Coast, a community land trust serving households earning up to 120% of the area median income throughout the Mendocino coastal region • Pursue funding and strategy to implement municipal broadband infrastructure to provide fast, reliable and affordable broadband connectivity to households, schools, and businesses • Actively engage in outreach and education to residents and visitors regarding finite water resources
• Solid Waste Infrastructure
• City-wide Succession Planning

BUDGET OVERVIEW
FY 2022/23 expenditures for the Administration department total $1.3 million in the Proposed Budget, a $72k increase of 6 percent compared to the FY 2021/22 projected expenditures. This increase is driven primarily by increases in personnel costs of $195k from COLA, step increases, and the moving of the Grants department from Finance to the Administration Department. Additionally, the City is currently recruiting a new City Manager and hopes to fill the position in June/July 2022. The Proposed Budget includes the City Manager's personnel costs.

These personnel cost increases were offset by decreases in Non-Personnel costs of $123k. One-time expenditures for the Compensation Study $35k, Broadband Feasibility Study $24k, and recruitment costs $36k for the City Manager, Chief of Police, and various other positions in the City.

Revenues are forecasted to increase by $125k from Grant reimbursement for Staff time. These include the Community Development Block Grants (CDBG) administration, SB2 planning Grants, Local Early Action Planning (LEAP), and the Regional Early Action Planning Grant (REAP).

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget

ADMINISTRATION DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4130
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 598,704 $ 726,436 $ 708,532 $ 903,765 28% Non-Personnel Services 144,579 495,975 490,276 366,610 -25% Total Departmental Expenditure 743,283 1,222,411 1,198,807 1,270,375 6% Revenue Summary
Charges for services 255 2,000 1,800 1,800 0%
Miscellaneous Revenue 15,346 7,500 13,021 11,000 -16%
Reimbursements 27,574 86,916 9,878 137,809 1295%
Total Departmental Revenue 43,175 96,416 24,699 150,609 510% Net Rev/Exp (700,109) (1,125,995) (1,174,109) (1,119,766) -5% Cost Allocation Summary
Expense - Cost Allocations (423,508) (343,183) (343,183) (343,183) 100% Revenue - Personnel Allocations (170,255) (239,190) (173,164) (199,190) 15% Net Cost Allocation (593,763) (582,373) (516,347) (542,373) 5% Net Expenditure $ (106,345) $ (543,622) $ (657,762) $ (577,393) -12% BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4130
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 435,474 $ 536,254 $ 548,498 $ 660,064 20% 0200 Employee Benefits 163,230 190,182 160,034 243,701 52% Personnel Services 598,704 726,436 708,532 903,765 28%
0311 Legal 99,336 300,000 300,000 300,000 0%
0316 Pre-Employment Costs 16,160 8,000 12,000 10,000 -17% 0317 Recruitment Costs 8,127 35,750 36,051 10,000 -72%
0319 Professional Services 12,895 125,025 125,025 25,000 -80% 0320 Dues & Memberships 1,610 3,000 2,000 2,710 36%
0364 Legal Notices 3,085 6,000 6,000 4,000 -33%
0375 General Supplies 104 2,000 100 500 0%
0371 Meetings/City Business 292 200 100 200 100%
0376 Medical/Safety Supplies - 6,000 1,000 1,000 0%
0381 Small Tools & Equipment - 500 500 1,000 100%
0384 Books & Subscriptions 435 500 500 200 -60%
Non-Personnel Services 144,579 495,975 490,276 366,610 -25% Total - Administration Expenditure $ 743,283 $ 1,222,411 $ 1,198,807 $ 1,270,375 6% DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4130
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Charges for Services
3419 Document Copies $ 255 $ 2,000 $ 1,800 $ 1,800 0%
Total Charges for Services 255 2,000 1,800 1,800 0%
Reimbursements
3415 City Reimb-DDA 14,347 25,000 4,878 5,000 3%
3318 Grant Staff Time Reimb 13,227 61,916 5,000 132,809 2556% Total Reimbursements 27,574 86,916 9,878 137,809 1295%
Miscellaneous Revenue
3998 Miscellaneous Fines 13,223 2,500 6,000 5,000 -17%
3905 Rents & Concession 2,123 5,000 7,021 6,000 -15%
Total Miscellaneous Revenues 15,346 7,500 13,021 11,000 -16% Total - Administration Revenue $ 43,175 $ 96,416 $ 24,699 $ 150,609 510%

COST ALLOCATION DETAIL
Fund #110
Department: 4130
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation 24,779 27,464 27,464 27,464 100% 0802 Cost Allocation contra exp (482,190) (428,605) (428,605) (428,605) 100% 0396 Allocation to ISF-IT 16,639 26,931 26,931 26,931 100% 0322 Allocation to Fleet Int Serv Fund 7,463 11,346 11,346 11,346 100% 0397 Allocation to ISF-Facilities 9,801 19,681 19,681 19,681 100% 3497 Interfund Cost Reimbursement- Revenue (27,077) (50,000) (10,433) (10,000) 100% 3499 Personnel Cost Allocation - Revenue (143,178) (189,190) (162,731) (189,190) 16% Net Cost Allocation (593,763) (582,373) (516,347) (542,373) 5% DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Line Item Detail FY 2022/23
Fund #110 Account Category Proposed
Department: 4130 Detail Detail Budget
Personnel Costs
Salaries & Wages, Regular $ 660,064
Employee Benefits 243,701
Total Personnel Costs $ 903,765
Materials & Services
110-4130-0311 City Attorney Services 300,000
110-4130-0316 Pre-Employment Costs 10,000
Live Scan $ 1,000
Occu-Med 7,500
Polygraph & Background 1,500
110-4130-0317 Recruitment Costs 10,000
110-4130-0319 Professional Services 25,000
110-4130-0320 Dues & Memberships 2,710
American Planning Assoc. $ 360
International Foundation of Employee Benefits-HR 325
Interantional City/County Management Assoc. 750
International Institute of Municipal Clerks- CC 290
City Clerks Association of California- CC 200
CA League of Economic Development 350
International Public Management Assoc.- HR 156
Cal GOVHR 60
Society of Human Resources Management 219
110-4130-0364 Legal Notices 4,000
110-4130-0366 Training/Travel Reimbursement 12,000
City Clerk $ 2,000
City Manager 2,000
Economic Develepment Coordinator 2,000
Human Resource Analyst 2,000
Adminstrative Assistant 2,000
Grants Coordinator 2,000
110-4130-0371 Meetings/City Business 200
110-4130-0375 General Supplies 500
110-4130-0376 Medical/Safety Supplies 1,000
110-4130-0381 Small Tools & Equipment 1,000
110-4130-0384 Books & Subscriptions 200
Total Material & Services 366,610
Total - Administration Expenditure $ 1,270,375
DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Note: In the 4th quarter of FY 2016/17, a 2% increase in the City’s Transient Occupancy Tax (TOT) was implemented in accordance with the voter-approved Measure AA. Consistent with the companion advisory measure (Measure AB), one-half of the new proceeds are dedicated to marketing Fort Bragg as a visitor destination.

CITY COUNCIL
City Manager’s
Office
Marketing & PR
Professionals
(Consultant)
Visit Fort Bragg
Committee

FORT BRAGG TOURISM MARKETING & PROMOTIONS
DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Promote Fort Bragg’s vibrant tourism economy; strengthen the Fort Bragg tourism experience; and Increase Transient Occupancy Tax and Sales tax revenues.

The City Manager’s Office will oversee the implementation of Fort Bragg’s Visit Fort Bragg/Marketing & Promotion Plan, which is funded from the increased Transient Occupancy Tax (TOT) revenues per the Measures AA and AB. The Marketing & Promotion Plan includes the following primary tasks which have been undertaken through contracts with consultants and partner agencies:
• Branding
• Advertising
• Public Relations & Media Outreach
• Website Development
• Interactive & Social Media Marketing
• Collateral & Visitor Information
• Content Development (word/photo/video)
• Special Events

FORT BRAGG TOURISM MARKETING & PROMOTIONS
DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET OVERVIEW
The FY 2022/23 Proposed Budget for Fort Bragg Tourism Marketing and Promotions is $221k, the same as FY 2021/22. The Visit Fort Bragg Marketing efforts are partially responsible for the strong TOT Revenue numbers the City’s General Fund has experienced since the Pandemic in 2020, as mentioned earlier in the report. Additionally, a $20k budget for the July 4th fireworks (2023) has also been included.

VISIT FORT BRAGG MARKETING & PROMOTIONS BUDGET SUMMARY
FUND 110
DEPARTMENT: 4321
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure:

Material and Services $ 93,060 $ 230,000 $ 220,500 $ 220,500 0% Total Departmental Expenditure $ 93,060 $ 230,000 $ 220,500 $ 220,500 0% BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4321
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0319 Professional Services $ 75,845 $ 209,000 $ 200,000 $ 200,000 0% 0371 Meetings/City Business $ - $ - $ - $ 500 100%
0384 Books & Subscription $ 70 $ 1,000 $ 500 $ - -100%
0619 Events $ 17,145 $ 20,000 $ 20,000 $ 20,000 0%
Total Marketing & Promotion Budget $ 93,060 $ 230,000 $ 220,500 $ 220,500 0% DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FINANCE DEPARTMENT
The Finance Department is responsible for maintaining the City's financial integrity by providing oversight to the City's fiscal management, maintaining accurate financial records and reports, and providing advice regarding fiscal policies and transactions.

SUMMARY OF SERVICES
The Finance Department is a General Government support function. In FY 2021/22, the Department had five full-time staff members: one Assistant Finance Director, one Government Accountant, and three Finance Technicians.

The Finance Department coordinates and directs all fiscal operations of the City. This includes directing, monitoring, and controlling all assets and financial operations and providing a framework for financial planning and analysis to support the operation and management of City departments. The functions of the Finance Department include utility billing, business licensing, transient occupancy tax collections, accounts payable, accounts receivable, payroll, purchase orders, financial reporting to federal, state, and other outside agencies, treasury and cash management, budget preparation, budgetary control, audit liaison and oversight of other fiscal activities of the City, Municipal Improvement District #1, and the Successor Agency to the Fort Bragg Redevelopment Agency.

AUTHORIZED FTE FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY21 FY21 Finance Department 4 4 4 4 4 4 4 3 4.8 5 4
Assistant Finance Director
Finance
Technician I
Government
Accountant I
Government
Accountant I

FINANCE DEPARTMENT
Finance
Technician I
DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget

STRATEGIC GOALS AND OBJECTIVES
• Maintain the City's fiscal health and ensure the provision of adequate resources to fund City services for the community.
• Perform financial responsibilities in accordance with statutory regulations and standards required by State and federal regulatory agencies as well as with the Government Finance Officers Association Code of Professional Ethics.
• Account for the City's fiscal activities in an accurate and timely manner within generally accepted accounting principles (GAAP) and other legal requirements. • Ensure completion of the City's financial statements in a timely manner. • Assist the City Manager in preparing a balanced budget and implementing fiscal and budget policies established by the City Council.
• Safeguard the City's assets and invest available cash in accordance with the City Council's adopted investment policy.
• Provide financial services such as accounts payable, payroll, cash receipts. • Accurately bill utility customers and provide friendly and helpful customer service FY 2021/22 TOP ACCOMPLISHMENTS
Finance Operations Accomplishments
• Migrated Springbrook Accounting Software to the “cloud”. • Hired and trained three new Finance Technicians.
• Cross-trained Finance Department duties to ensure coverage. • Implemented a Pension Funding Policy.
• Assisted the City Manager in issuing 2021 Pension Lease Revenue Bonds to restructure the City’s UAL Debt with CALPERS.

Utility Billing and Operations Accomplishments
• Launched a successful water conservation campaign reducing water usage by 32%. • Successfully repaired major leaks, many of which were undetected for many years. • Began billing septic hauler for the use of the septic station • Resume water shutoffs in compliance with SB 998 after a two-year moratorium • Received grant to assist income-eligible customers affected by COVID-19 in paying utility bills. • Secured utility arrearage grant funding to minimize the impact of water shut off on customers.

DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE / WORKLOAD MEASURES
F2022/23 TOP PRIORITIES
Utility Billing
• Install New Cellular Water Meters – 2,900
• Implement Water Smart Software (Customer interface)
• Resume Water shutoffs (end of moratorium Dec 31, 2021) • Complete Utility rate study
Financial Operating, Budgeting, and Reporting
• Maintain a balanced budget
• Improve Department Website, providing additional information about utilities and business licenses. • Assist City Council in the establishment of new or enhanced revenue sources. • Set up a Section 115 Trust (June 2022)
INDICATORS FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22

BUDGET/CAFR/AUDIT
Receive GFOA Distinguished Budget award Yes Yes Yes Yes Receive GFOA Award for Excellence in Financial
Reporting Yes Yes
Yes Yes
Audit Findings Nil Nil Nil Nil

REVENUE COLLECTION & UTILITY BILLING
Ave.number open Water/Sewer Accounts 2,845 / 2,774 2,863 / 2,787 2859 / 2786 2871 /2792 Total Amount Billed(Water/Sewer) $2.9m/$3.5m $3.1m/$3.5m $3.2m/$3.6m $3.0m/$3.5m % of payments processed through external
automated/electronic process
(Ebox,lockbox,ACH/CC)
53% 64% 75.7% 72.7%
Business licenses renewals notices mailed 883 910 866 890 % of business licenses processed within 30 days 100% 100% 100% 100% Avg. number monthly pmts processed internally 998 961 630 725 Avg. number monthly water delinq. notices mailed 509 607 404 424 Avg. Monthly Number of Turn Offs – Non Payment 34 17 0 0

ACCOUNTS PAYABLE/PAYROLL
Average days for Invoices to be Paid (turned into
Finance) 2 days 2 days 2 days 2 days
% of Staff cross-trained in Payroll process 75% 100% 100% 60% % of Staff cross-trained in AP process 100% 100% 100% 80% % of employees signed up for direct deposit 94% 95% 98.5% 98.5% DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
• Complete and publish the new fee schedule (June 2022) • Complete the “Costing” software setup, which will enable the finance department to analyze different scenarios for planning and budgeting purposes. • Continue developing annual long-term planning (10-year financial forecast) documents and presentations.
• Hire and train a new Government Accountant to replace an employee that was promoted. • Maintain continuing education plan for Finance staff. • Train and mentor staff to support professional advancement. • Increase departmental meetings and team-building activities to encourage a “team” culture.

BUDGET OVERVIEW
The Finance Department's proposed budget increases by $53k overall or 10 percent to $606k from FY 2021/22 estimates. The increase is attributed mainly to COLAs, step increases, and the hiring of a Government Accountant to replace the vacant Finance Technician position. $354,664
58% $191,474
32%
$60,515
10%
FY 2022/23 EXPENDITURES BY CATEGORY
Salaries & Wages
Benefits
Materials & Services
DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4150
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Charges for Services
3415 City Exp-Reimb $ 958 $ 2,000 $ 849 $ 1,500 77%
3318 Grant Staff Time Reimb 63,595 $ 201,581 $ 39,866 $ 5,000 -87% 3711 Return Check Fee 1,008 $ 1,500 $ 1,800 $ 1,546 -14% Total Charges for Services 65,561 205,081 42,516 8,046 -81% Reimbursements
3499 Overhead/Admin Cost Recovery $ 252,125 $ 342,832 $ 310,000 $ 342,832 Total Reimbursements 252,125 342,832 310,000 342,832 100% Licenses & Permits
3701 Business License Fee $ 62,752 $ 54,000 $ 59,321 $ 66,213 12% Total Licenses & Permits 62,752 54,000 59,321 66,213 12% Fines & Forfeitures
3519 Miscellaneous Fines $ 1,454 $ 1,200 $ 1,500 $ 1,500 Total Fines & Forfeitures 1,454 1,200 1,500 1,500 0%
Total Finance Revenue $ 381,892 $ 603,113 $ 413,337 $ 418,591 1%

FINANCE DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4150
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 413,678 $ 551,473 $ 488,299 $ 546,138 12% Non-Personnel Services 45,881 55,193 64,974 60,515 -7%
Total Departmental Expenditure 459,559 606,666 553,273 606,653 10% Revenue Summary
Charges for services 65,568 205,081 47,516 8,046 -83%
Reimbursements - - - 45,000 100%
Licenses & Permits 62,752 54,000 59,321 66,213 12%
Fines & Forfeitures 1,454 1,200 1,500 1,500 0%
Total Departmental Revenue 129,774 260,281 108,337 120,759 11% Net Rev/Exp (329,786) (346,385) (444,936) (485,893) 9%
Cost Allocation Summary
Expense - Cost Allocations (129,404) (66,607) (70,270) (66,607) 100% Revenue - Personnel Allocations 252,125 342,832 310,000 342,832 11% Net Cost Allocation 122,721 276,225 239,730 276,225 15% Net Expenditure $ (452,507) $ (622,610) $ (684,666) $ (762,118) 11% DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Line Item Detail
Fund #110 Account Category
Department: 4150 Detail Detail
Personnel Costs
0101 Salaries & Wages $ 354,664
0201 Employee Benefits 191,474
Total Personnel Costs $ 546,138
Materials & Services
110-4150-0312 Auditing & Accounting 26,000
110-4150-0319 Professional Services 24,200
Armored Car Service 5,500.00
Banking Fees 10,400
Sales Tax Audit and Analysis 2,000
Statistics for CAFR (MuniServices) 3,100
State Controllers Office - Street Rpt 2,000
SB90 Claims Consultant 1,200
110-4150-0320 Dues & Memberships 315
GFOA 157
CSMFO 158
110-4150-0364 Legal Notices 500
110-4150-0366 Training/Travel Reimbursement 9,000
110-4150-0381 Small Tools & Equipment 500
Total Material & Services 60,515
Total - Finance Department $ 606,653
FY 2022/23
Proposed
Budget

COST ALLOCATION
Fund #110
Department: 4150
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation $ 99,510.00 $ 117,822 $ 117,822 $ 117,822 0% 0802 Cost Allocation contra exp (252,728) (224,148) (224,148) (224,148) 0% 0396 Allocation to ISF-IT 20,798 33,663 30,000 33,663 12% 0397 Allocation to ISF-Facilities 3,016 6,056 6,056 6,056 0% 3499 Personnel Cost Allocation - Revenue 252,125 342,832 310,000 342,832 11% Net Cost Allocation $ 122,721 $ 276,225 $ 239,730 $ 276,225 15% DEPARTMENT DETAILS – FINANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
DEPARTMENT DETAILS – NON-DEPARTMENTAL
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The purpose of the Non-Departmental budget category is to record expenditures not associated with a specific City department.

SUMMARY OF SERVICES
The following expenses are included in the Non-Departmental budget: costs associated with the City's support of Community Organizations: Noyo Center (Measure AB), Special Projects (Measure AB), Caspar Landfill closure, and Caspar Transfer Station costs; retiree health benefits; liability and property insurance premiums; and materials and services procured for the benefit of all City departments. A true-up of budgeted vs. actual costs in Non-Departmental has been undertaken annually, and budgeted cost allocations are adjusted accordingly.

BUDGET OVERVIEW
The FY 2022/23 budget for City-Wide Non-Departmental (excluding transfers out) is $1.9 million, an increase of $255k or 19 percent compared to the FY 2021/22 projected total. The increase is due to increases in Retiree Medical costs of 3 percent, Liability, and Property Insurance premiums of $97k (29 percent).

A major project for FY 2020/21 was developing and adopting a Pension Funding Policy. These included issuing Taxable Lease Revenue Bonds to reduce the City's unfunded pension liability by $7.5 million in November 2021 to achieve a 90-100 percent funding status. Additionally, the City issued a Request for Proposal (RFP) in April 2022 to set up an IRS-approved Section 115 Trust.

The FY 2021/22 Adopted Budget has already committed $1 million to fund the trust to absorb any declines in Investment Returns (discount rate) by CALPERS.

The Proposed Budget FY 2022/23 also includes a $150k payment from the General Fund and $50k from the two Enterprise Funds towards the Section 115 Trust.

NON-DEPARTMENTAL
DEPARTMENT DETAILS – NON-DEPARTMENTAL
City of Fort Bragg ~ FY 2022/23 Proposed Budget

NON-DEPARTMENTAL BUDGET SUMMARY
FUND: 110
DEPARTMENT: 4190, 4390, 4391, 4915, 4916
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Events - - (5,150) (2,000) -61%
Rents and Concessions (1,959) (800) (1,761) (2,300) 31% Total Departmental Revenue $ (1,959) $ (800) $ (6,911) $ (4,300) -38% Personnel Services 18,837 41,015 32,006 399,775 1149%
Non-Personnel Services 571,506 1,165,002 1,004,007 1,599,199 59% Transfers 88,775 - 70,000 - -100%
Total Departmental Expenditure 679,117 1,206,017 1,106,014 1,998,975 81% Cost Allocation Summary
Expense - Cost Allocations - - - (637,327) 0%
Revenue - Personnel Allocations (295,805) (389,010) (295,805) (389,010) 32% Net Cost Allocation (295,805) (389,010) (295,805) (1,026,337) 247% Net Expenditure $ (385,272) $ (817,807) $ (817,119) $ 976,938 -220% $399,775 , 20%
$758,675 , 38%
$152,962 , 8% $687,563 , 34%
FY 2022/23 EXPENDITURES BY CATEGORY
Benefits
Materials & Services
Community Contributions
Debt
Transfers
DEPARTMENT DETAILS – NON-DEPARTMENTAL
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4190 Detail Detail Budget
Personnel Costs
110-4190-0224 Retiree Medical Benefits $ 376,335
110-4190-0225 OPEB Funding 5,000
110-4190-0251 Unemployment Insurance 18,440
Total Employee Benefits $ 399,775
Materials & Services
110-4190-0319 Professional Services 35,200
Alarm monitoring 12,000.00
OPEB Actuarial Valuation 4,200
Property tax 5,000
Document shredding 672
PEPEB GASB 75 reporting 2,500
REMIF safety program 5,020
Emergency worker training 5,000
GFOA CAFR and Budget Awards 808
110-4190-0320 Dues & Memberships 14,350
Chamber of Commerce 150
LAFCO 10,000
Leage of CA Cities 4,200
110-4190-0355 Equipment Leases 29,000
110-4190-0358 Liability Premium 308,000
110-4190-0356 Rentals - Equipment & Vehicles 3,321
110-4190-0359 Liability Deductible 10,000
110-4190-0360 Property Premium 105,780
110-4190-0362 Telephone & Communication 17,500
110-4190-0365 Copying/Printing Bid Docs 5,538
110-4190-0371 Meetings/City Business 6,000
Employee recognition 6,000
6,000
110-4190-0372 Postage 2,000
110-4190-0375 General Supplies 10,086
110-4190-0383 Utilities 61,000
110-4190-0384 Books & Subscriptions 100
110-4190-0387 Section 115 Trust UAL Additional Payment 150,000 110-4190-0630 EOC - Materials & Services 300
Total Material & Services 758,175.01
Other Expenditures
110-4190-0619 Other Expenditures 500
Graffiti removal 500
Total Other Expenditures $ 500
Total - Non-Departmental $ 1,158,450
DEPARTMENT DETAILS – NON-DEPARTMENTAL
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4915 & 4916 Detail Detail Budget
Other Expenditures
110-4915-0319 Professional Services - Caspar Landfill Station Costs $ 87,000 110-4915-0607 Caspar Landfill Property Tax 860
Total Other Expenditures $ 87,860
Debt Service
2021 Lease Revenue Bonds- Pension
110-4916-0911 Principal 85,000
110-4916-0912 Interest 514,703
Total Debt Service 599,703
Total - Caspar Closure and General Fund Debt $ 687,563
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4390 & 4391 Detail Detail Budget
Community Organizations
110-4390-0621 Chamber of Commerce $ 2,000
110-4390-0619 Community Contributions 150,962
EDFC 5,000
Leadership Mendocino Scholarships 500
Otsuchi Sister City Program 5,000
Noyo Center - Measure AA Funding 70,231
Special Projects - Measure AA Funding 70,231
Total - Community Organization Support $ 152,962

COST ALLOCATION
Fund #110
Department: 4190,4390
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget % + /-
0802 Cost Allocation contra exp - - - (637,327) 100%
3499 Personnel Cost Allocation - Revenue (295,805) (389,010) (295,805) (389,010) 32% Net Cost Allocation (295,805) (389,010) (295,805) (1,026,337) 247% DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

DEPARTMENT DESCRIPTION
The Fort Bragg Police Department functions with two divisions consisting of an Administrative Division and a Patrol Division. The Administrative Division is comprised of the Chief of Police, two Police Service Technicians, and one-part time Police Service Technician, who is paid an hourly rate with no benefits, commonly known as a 960-Employee. The Patrol Division is comprised of one Captain, four Sergeants, ten patrol officers, one School Resource Officer (SRO), four Community Service Officers, two Social Services Liaison- Crisis Workers, and one part-time Transport Officer.

The Administrative Division handles multiple tasks including the Department's Evidence Room, lost and found property, staff member's training files to insure compliance with various oversight authorities Chief of Police
Police Services
Technicians (2)
PTE Police Services
Technician (1)
Patrol Captain (1)
Police Sergeants (4)
Patrol Officers (10)
Community
Services Officers
(4)
PTE Transportation
Officer (1)
Social Services
Liaison (2)
(Grant Funded)
School Resource
Officer (1)
(Grant Funded)
AUTHORIZED FTE FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Police Department 22 22 22 22 22 22 22 22 26 26
PUBLIC SAFETY – POLICE DEPARTMENT BUDGET
DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
including the California Peace Officer Standards
and Training regulations (POST) and the
Department of Justice, as well as maintaining all
records both generated and sent to the
Department, while following the strict guidelines
of maintaining and providing copies to the
general public upon record requests. The
Administrative Division also handles and
recovers revenue for the Department through
fingerprinting services, stored vehicle releases,
and the processing of parking citations.

The Chief of Police serves as the liaison between
the City Hall administration, City Council, and
other state and local agencies as well as acting
as the head administrator of the Department.

Under the Administrative Division, the Police
Service Technicians provide a variety of services
to the public through both front office visits and
phone calls. These services include identifying
road closures, providing information and
resources supporting tourism and
homelessness, and generally acting as the
gateway for information about the surrounding
community and City. This year we added a
collateral duty of maintaining the Emergency
Winter Shelter where they provided vouchers
and record keeping for reimbursement of funds.

The Patrol Division is typically divided into four defined 12 hours shifts of service; which when fully staffed are comprised of one Sergeant, two Patrol Officers, and one Community Service Officer. The Patrol Division does not currently have a dedicated Detective for major crimes forcing all Patrol members to remain proficient in all aspects of law enforcement investigations. It should be noted the Patrol Division, in the last two years, has been operating at only one half to three quarters staffing levels. In June 2022, the Police Department is expected to be at full staff for the first time in the last ten years.

The Patrol Division Captain works as both the Division Commander and in some cases a relief officer assisting in covering shift vacancies and normal patrol duties during times of increased calls for service.

The Patrol Division Captain is responsible for preparing training plans for the Patrol Division and auditing all patrol activities to ensure compliance with state and local standards. The Patrol Captain additionally supervises many of the Department programs including the Winter Weather Shelter, Social Service Liaison Grant, and the School Resource Officer program.

The Patrol Division maintains a School Resource Officer (SRO) position intended to create positive relationships between law enforcement and local youth while also serving as the Department and Fort Bragg Unified School District's Tobacco and Drug Prevention Coordinator. This position is currently funded by a grant through 2023.

A Transportation Officer serves to assist with the Department's prisoner transportation needs as well as fulfilling Community Service Officer duties such as graffiti abatement and participating in community DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
events. This position is paid at an hourly rate and does not include any benefits, commonly known as a 960-employee, a cost saving for the City.

The Department seeing a need for Officer Wellness created a Department Chaplain position to assist officers with coping with traumatic incidents. Identifying a need to address the long term physical and mental health of our staff, the Department teamed up with a well-known personal trainer in the area who provides physical training to officers two hours a week. The program is open to Officers and their family and is intended to prevent long-term injuries while fostering teamwork.

The Department has recently been awarded a BHJIS grant to hire two new Social Service personnel to assist with Mental Health persons. Sixty percent of calls for service to the Police Department involve some type of mental health issue. This unit will respond with Officers and handle a majority of the mental health problems, but more importantly they will follow-up with mental health person(s) providing proper monitoring, guidance and resources to curtail any further police calls. With this type of program our Department hopes to see a reduction in calls for service while also providing another service to our community's most vulnerable individuals.

The Department provides public safety services 24-hours a day, seven-days a week, and prides itself on its dedicated approach to community policing and enhancing quality of life for the community. The Department handles all law enforcement investigations within their jurisdiction ranging from animal control complaints to the reporting of traffic collisions. While the population of Fort Bragg is roughly only 7,000 people, being a notable service hub for the surrounding rural community combined with the bustling tourist economy means that the Department is often policing up to 30,000 people during the busy summer months.

In this physical year, FY 2020/21, COVID-19 continued to create a unique year for the nation and our Police Department. While the Nation basically shut down, Officers of this Department were still on-duty to handle calls for service under COVID-19 virus restrictions. Despite the increased risk to our staff, this Department maintained the same level of law enforcement services to the community. The Department fell prey to the virus with several employees becoming infected. Despite the reduction in force and working with limited staffing levels, this Department was able to provide uninterrupted law enforcement services due to our staff's commitment to the community.

FY 2021/22 TOP ACCOMPLISHMENTS
This budget year Covid-19 hampered the Department's ability to fulfill all of its commitments, here is a list of what we were able to accomplish;
• Hiring several new officers, 3 new local officers were hired and sent to the Police Academy • By the end of this fiscal year the Department Patrol Staff will be fully staffed • The Department promoted one officer to Sergeant
• The Department removed non-lethal munitions from the armory • Inventory and re-organization of the Department's Equipment Inventory • Replacement of outdated patrol equipment
• Wellness for officers with a volunteer Chaplain program and Physical Wellness programs • Compliance with RIPA and NIBRS mandates
• Advance training of officers, DUI Enforcement, Firearms, Field Training Officer training, and specialized traffic enforcement duties including three new radar certified Officers and two Officers certified in modified exhaust and street racing enforcement DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
• Successful certification from County and State officials for cortication of our Holding Cell inspections
• First year of Successful management of the local Emergency Winter Shelter Program • Award of BHJIS grant to hire two new personnel to assist with Mental Health persons • No trespassing letters to assist Business property owners with habitual homeless problems • Working closely with City Code Enforcement on Homeless encampment issues • Re-instatement of a School Resource Officer for the School District after Covid-19 • Increase in Traffic enforcement and DUI enforcement
• Monthly meetings with local social services organizations including Adult Protective Services and Redwood Community Services
• Providing financial support for local soccer fields at Bainbridge Park with Asset Seizure funds • Captain O'Neal completed the State's Six-Month Management Course Holaway, McHugh, Zavala, Shaw, Beak, Welter, Frank, T. Smith, Ferris, Jimenez DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE/WORKLOAD METRICS
INDICATORS FY 16 FY 17 FY 18 FY 19 FY 20 FY21
FY 22
(YTD)

PUBLIC SAFETY
Incident Cases (I Cases) - - 1,505 3,624 4271 3481 1098 Calls for Service 14,731 14,494 14,532 19,893 12,106 11,579 3,191 Crime Reports 1,487 1,534 1,554 1,320 1268 1131 295
Traffic Citations 813 918 941 648 508 362 122
Bookings 587 732 793 496 521 520 162
DUI 42 39 49 35 24 41 48
Traffic Accidents 183 147 145 145 141 152 27
DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
New Officer Aldea Miles and Her Wife Officer Ferris, Sergeant Shaw, Sergeant Welter

FY 2022/23 TOP PRIORITIES
WITH COVID-19 RESTRICTIONS THE DEPARTMENT WAS UNABLE TO FULFILL SEVERAL OF LAST YEAR'S PRIORITIES. THOSE PRIORITIES AND OTHERS WILL BE PURSUED IN THE FY 22/23 BUDGET YEAR:

• Acting Sergeant Welter and Captain O'Neal are working on bringing online reporting to our Department and community. This software has the capability to capture police reports and aid other City Departments with pot hole reporting, inoperable street lights, and code enforcement issues. The software also allows the community to report potential at risk family members, including those with dementia and development disabilities. This program will be available in Spanish as well and is expected to increase the ability of non-English speaking community members to report crime.
• Create and maintain a Volunteers in Patrol (VIP) program intended to increase the use of volunteers for public safety activities.
• Reinitiate the Police Cadet Program to both increase the use of volunteers in public safety activities and create an immediate recruiting pool from the local community. • Re-build the Department's Neighborhood Watch Program with the goal of creating more community participation to include Spanish-speaking meetings. • Identify and create a program intended to enhance the use of social service workers in lieu of law enforcement officers.
• Train and deploy an employee to offer free services to both businesses and citizens related to Crime Prevention Through Environmental Design (CPTED).
• Further enhance the Department's Community Policing efforts through proven approaches including the development of programs intended to bridge the gaps between the Police Department and under-represented communities.
• Create a stronger presence in the downtown area by establishing an effective business liaison and developing a substation facility to increase law enforcement presence. • Empower and encourage all employees to identify fiscally conservative approaches to all programs and activities.

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET OVERVIEW
The proposed FY 2022/23 Budget for the Police department is $3.8 million, a decrease of $132k or 3 percent. The decline is attributed to PERS- Unfunded liability costs which were paid down in November 2021 by issuing Taxable Lease Revenue Bonds. This resulted in a benefit budget savings of about $329k. These cost savings were offset by increases in dispatch services by 5 percent year over year and increases in personnel costs by 8 percent. The proposed Budget includes the replacement of the interim Police Chief with a permanent Police Chief position that provides benefits increasing the department budget by $119k annually. The City hopes to fill the position in July 2022.

A shortage of police officers locally and nationally has driven wages up every year for the last several years. The Fort Bragg City Code Chapter 2.68 provides an annual salary survey of Mendocino County law enforcement positions. It establishes that Fort Bragg's salaries will, at a minimum, be set at the average of the other local entities. As of January 1, 2021, Police Officer salaries increased by 4.9% and 1% on January 1, 2022. Additional increases are anticipated in January 2023.

The Department was awarded a Social Services Liason Grant in 2022 by the California Department of Health Care Services (DHCS) of $222k through March 2023. The proposed Budget includes one fulltime temporary position and one part-time temporary position. Additionally, the Department has also resumed the School Resource Officer Program with the Unified School District, which was interrupted by the pandemic. This program will also reimburse the Department for a sworn officer position of $125k.

The term of the program is for 60 months, expiring in 2024.

Department Revenues are estimated to increase by 59 percent due to the Grant reimbursement mentioned above, together with a budget of $35k for Code Enforcement reimbursable activities. $347,920
85%
$34,200
8%
$28,000
7% $1,500
0%
FY 2022/23 REVENUE BY CATEGORY
Charges for Services
Inter-Govt
Reimb
Fines & Fort
Misc. Revenues
$2,148,562
56%
$1,050,346
28%
$606,272
16%
FY 2022/23 EXPENDITURES BY CATEGORY
Salaries & Wages
Benefits
Materials & Services
DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

POLICE DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4200
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Revenue
Charges for services $ 46,586 $ 195,089 $ 201,275 $ 347,920 73% Intergovernmental 24,024 25,500 32,742 34,200 100%
Fines & Forfeitures 15,020 26,250 23,344 28,000 20%
Miscellaneous Revenue 3,156 1,000 1,500 1,500 0%
Total Departmental Revenue $ 88,786 $ 247,839 $ 258,861 $ 411,620 59% Expenditure
Personnel Services 2,865,959 3,272,733 3,274,419 3,198,908 -2% Non-Personnel Services 601,750 661,328 663,013 606,272 -9% Total Departmental Expenditure 3,467,709 3,934,061 3,937,432 3,805,179 -3% Net Expenditure (3,378,923) (3,686,222) (3,678,571) (3,393,559) -8% Cost Allocation Summary
Expense - Cost Allocations 1,000,267 1,258,037 1,258,037 1,258,037 100% Revenue - Interfund Cost Reimb 156,742 155,947 155,947 159,066 2% Net Cost Allocation 1,157,009 1,413,984 1,413,984 1,417,103 Net Expenditure $ (4,535,931) $ (5,100,206) $ (5,092,555) $ (4,810,662) -6% DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4200
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 1,660,512 1,897,949 1,982,809 2,148,562 8.4% 0200 Employee Benefits 1,205,447 1,374,783 1,291,610 1,050,346 -19% Personnel Services $ 2,865,959 3,272,733 3,274,419 3,198,908 -2% 0313 Laboratory 1,913 1,500 1,500 2,500 67%
0314 Animal Care & Control 32,092 32,500 32,500 34,000 5% 0318 Investigative Medical Serv - 1,500 1,500 1,500 0%
0319 Professional Services 45,517 35,000 32,000 25,000 -22% 0320 Dues & Memberships 580 600 600 600 0%
0351 Equipment Repair & Maint 466 5,000 5,000 2,000 -60% 0356 Rental-Equip & Vehicles 2,233 2,250 2,250 2,500 11% 0357 Rentals - Space 4,444 4,514 4,586 4,900 7%
0362 Telephone & Communication 23,582 22,000 22,000 23,000 5% 0365 Copying/Printing 1,459 2,500 2,500 2,800 12%
0366 Training/Travel Reimbursement 19,816 40,000 40,000 35,000 -13% 0367 PD Recruit Training 39,249 22,000 23,940 - -100%
0371 Meetings/City Business 112 500 500 500 0%
0372 Postage 583 600 600 800 33%
0374 Evidence Supplies 1,372 1,200 1,200 1,400 17%
0375 General Supplies 8,801 8,000 8,000 8,000 0%
0376 Medical/Safety Supplies 7,835 4,000 4,000 5,000 25% 0379 Social Service Liason Grant - 52,534 52,534 5,400 -90% 0381 Small Tools & Equipment 26,340 27,500 27,500 30,000 9% 0383 Utilities 4,596 6,500 6,500 5,500 -15%
0384 Books & Subscriptions 1,371 500 500 750 50%
0619 Miscellaneous 20,511 23,000 25,673 29,110 13%
0386 Dispatch Services 358,877 367,630 367,630 386,011 5% Non-Personnel Services $ 601,750 661,328 663,013 606,272 -9% Total Police Department $ 3,467,709 $ 3,934,061 $ 3,937,432 $ 3,805,179 -3% DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Line Item Detail
Category FY 2022/23
Fund #110 Account Account Proposed
Department: 4200 Detail Detail Budget
Personnel Costs:

Salaries & Wages $ 2,148,562
Employee Benefits 1,050,346
Total Personnel Costs $ 3,198,908
Materials & Services
110-4200-0313 Laboratory 2,500
110-4200-0314 Animal Care & Control 34,000
110-4200-0318 Investigative Medical Service 1,500
110-4200-0319 Professional Services 25,000
Car washing 300
DOJ Livescan 10,800
Evidence towing 500
Integrity shred 700
Investigative services 1,000
MMCTF Annual donation 4,500
Reporting Subscriptions 2,709
Whispering Pines water 500
RIPALog 3,991
110-4200-0320 Dues & Memberships 600
110-4200-0351 Equipment Repair & Maintenance 2,000
110-4200-0356 Rentals - Equipment 2,500
110-4200-0357 Rentals - Off Site Storage 4,900
110-4200-0362 Telephone & Communication 23,000
110-4200-0365 Copying/Printing 2,800
110-4200-0366 Training/Travel Reimbursement 35,000
110-4200-0371 Meetings/City Business 500
110-4200-0372 Postage 800
110-4200-0374 Evidence Supplies 1,400
110-4200-0375 General Supplies 8,000
110-4200-0376 Medical/Safety Supplies 5,000
110-4200-0379 Social Services Liason Costs (Reimb by Grant) 5,400 110-4200-0381 Small Tools & Equipment 30,000
110-4200-0383 Utilities 5,500
110-4200-0384 Books & Subscriptions 750
110-4200-0386 Dispatch services 386,011
110-4200-0619 Miscellaneous 29,110
Total Material & Services $ 606,272
Total - Police Department $ 3,805,179
DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4200
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget % + /-
Charges for Services
3318 Grant Staff Time Reimb $ - 139,089 115,108 268,420 133% 3419 Police Copies $ 4,898 4,000 5,333 5,000 -6%
3422 Police Fingerprints $ 22,031 40,000 37,944 42,000 11% 3425 Stored Vehicle Release $ 2,955 2,500 9,615 10,000 4% 3426 Abandoned Vehicle Abatement $ 16,185 9,000 33,000 22,000 -33% 3718 Police Witness Fee $ 518 500 275 500 82%
Total Charges for Services 46,586 195,089 201,275 347,920 73% Intergovernmental
3200 DNA Reimbursements $ 4,333 5,500 3,900 4,200 8%
3415 City Exp Reimb.-DDA $ 56 - - -
3719 Booking Fee Reimbursement $ 9,700 13,500 12,500 14,000 12% 3201 Training Reimbursement $ 9,935 6,500 16,342 16,000 -2% Total Intergovernmental 24,024 25,500 32,742 34,200 4%
Fines & Forfeitures
3511 Parking Fines $ 9,390 25,000 17,000 20,000 18%
3513 DUI Cost Recovery $ 5,630 1,250 6,344 8,000 26%
Total Fines & Forfeitures $ 15,020 26,250 23,344 28,000 20% Miscellaneous
3998 Miscellaneous revenues $ 3,156 1,000 1,500 1,500 0% Total Miscellaneous $ 3,156 1,000 1,500 1,500 0%
Total Police Dept. Revenue $ 88,786 247,839 258,861 411,620 59%

COST ALLOCATION
Fund #110
Department: 4200
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0800 Overhead Allocation $ 788,346 882,500 882,500 882,500 0% 0801 Salary/Benefit Allocation 695 - - - -
0802 Cost Allocation contra exp (21,144) (1,629) (1,629) (1,629) 0% 0396 Allocation to ISF-IT 110,227 178,416 178,416 178,416 0% 0322 Allocation to ISF-Fleet 87,867 129,924 129,924 129,924 0% 0397 Allocation to ISF-Facilities 34,276 68,826 68,826 68,826 0% 3497 Interfund Cost Reimbursement - Rev $ 156,742 155,947 155,947 159,066 2% Net Cost Allocation $ 1,157,009 1,413,984 1,413,984 1,417,103 DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PURPOSE
The City of Fort Bragg and the Fort Bragg Rural Fire Protection District (Rural Fire District) jointly provide fire services within their respective boundaries under a Joint Powers Agency (JPA) known as the Fort Bragg Fire Protection Authority (FBFPA). The JPA was formed in FY 1989/90. The FBFPA is a public entity that is separate and apart from both the City and the Rural Fire District. FBFPA has all of the powers relating to fire protection, fire suppression and emergency rescue authorized by law and has the power to contract for the purchase, lease or rental of whatever services or equipment it deems appropriate for its mission. Debts, liabilities, or other obligations of the FBFPA do not accrue to the two agencies that entered into the JPA.

The FBFPA’s budget is approved by the FBFPA Board of Directors, the Fort Bragg City Council, and the Rural Fire District Board of Directors. Funding responsibility is shared by the City and the Rural Fire District with the breakdown of operating costs based on a three-year average call ratio. Typically, the City averages a higher percentage of calls and therefore pays a higher percentage of the FBFPA’s budget.

The paid staff of the FBFPA is comprised of a Fire Chief, Fire Prevention Officer, Maintenance Engineer and Office Manager. The FBFPA has 29 volunteer firefighters who are also considered employees. Neither the Rural Fire District nor the City has employees whose job responsibilities include the provision of fire services.

PUBLIC SAFETY – FIRE
DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE / WORKLOAD METRICS
INDICATORS FY 18 FY 19 FY 20

PUBLIC SAFETY - FIRE
Total Number of Calls 626 752 579
Structure Fires 10 37 29
Vehicle Fires 5 4 3
Vegetation Fires 23 40 31
Medical Aid 197 248 36
Rescue 11 80 150
Traffic Accidents 115 100 133
Service Calls 99 126 91
Mutual Aid/Agency assist 23 18 12

BUDGET OVERVIEW
The FY 2022/23 proposed budget for the Fire Department is $440k, a decrease of $8k.

BUDGET DETAIL:

Fund #110
Department: 4220
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0220 Pers $ 13,630 13,630 13,630 13,630 0%
0319 Professional Services 426,332 434,128 434,128 426,332 -2% Total Fire Department $ 439,962 $ 447,758 $ 447,758 $ 439,962 -2% FY 2022/23
Fund #110 Account Category Porposed
Department: 4220 Detail Detail Budget
Personnel Costs
110-4220-0220 Pers $ 13,630
Total Employee Benefits $ 13,630
Materials & Services
110-4220-0319 Professional Services 426,332
Contribution to the Fire Protection District
Total Material & Services $ 426,332
Total - Fort Bragg Fire Protection District $ 439,962
Line Item Detail
DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Support the sustainable development of a vibrant economy, an attractive and functional built environment, and top-notch public and private development projects by providing exemplary:
(i) Long-range planning;
(ii) Current project permitting;
(iii) Housing & economic development;
(iv) Code enforcement; and
(v) Grant writing.

SUMMARY OF SERVICES
The Community Development Department is comprised of four staff, including: An Associate Planner, an Assistant Planners, a code enforcement officer, and an Administrative Assistant under the direction of Public Works Management. The Community Development Department serves the community by planning for Fort Bragg’s future, facilitating housing and economic development, guiding and regulating development, and helping to plan and implement City projects. The Department’s work spans a wide range of activities, including:
• Long-Range Planning: The Department engages the community and Council to prepare and implement long-range planning projects such as: Rezoning and LCP Amendments, Formula ordinance and land use code updates, and other projects.

AUTHORIZED FTE FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CDD Department 4 4.3 4.8 4.8 3 3.5 4 4 4
Code
Enforcement
Officer
Assistant Director: Engineering
Associate
Planner
Administrative
Assistant
Public Works Director

COMMUNITY DEVELOPMENT DEPARTMENT
Assistant
Planner
DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
• Special Projects: The Department seeks funding for, and oversees the planning and design process, permitting and environmental review, and engineering and construction management for special project such as the Fort Bragg Coastal Trail and other projects. • Current Planning: The Department works with developers, business owners, and property owners to ensure that new development proposals comply with the City’s planning and zoning regulations, through our permitting process.
• Permitting: CDD takes in, processes and approves all building permits, sign permits and Limited Term Permits.
• Code Enforcement: The Department investigates and initiates code compliance letters, these are followed with fees and follow up enforcement activities, which can include taking cases to Small Claims Court and Superior Court. The Code Enforcement grant from CDBG was approved in 2021 triggered a shift from reactive complaint driven enforcement to pro-active enforcement focusing on health and safety issues for residential structures.

FY 2022/23 STRATEGIC GOALS AND OBJECTIVES
• Continue to work on the implementation of the Housing Element through code modifications in the inland and coastal zone and residential code enforcement to preserve affordable housing. • Process new development, building and sign permits in a timely manner and with exceptional customer service.
• Implementation of the Central Business District Revitalization Effort. • Seek grants for priority City projects and activities. • Continue to undertake and implement new City projects.

FY 2021/22 ACCOMPLISHMENTS
• Plateau Project broke ground in January 2021, and project construction made significant progress with a completion of the 20 permanently supportive housing units and substantial completion on the senior cottages and affordable workforce housing.
• The City contracted professional services to assist staff in the development of a study to determine the feasibility of creating a community land trust to serve Fort Bragg. CLTs are an economic mechanism to create home ownership opportunities to very low, low and moderate income households in perpetuity.
• The City passed an Electric Vehicle Charging ordinance that streamlines review and approval for all new charging stations charging stations so they can be processed administratively and over-thecounter unless there is potential for adverse impact on public health and safety. • The City passed an urgency ordinance placing a Moratorium on the Approval of Applications and Permits for Cannabis Dispensaries in the Inland Zoning Areas to allow the staff the opportunity to study and possibly revise the existing cannabis dispensary ordinance regulations in order to address the unique health, safety and welfare impacts of such businesses. • The Formula Business Ordinance was established to preserve the one-of-a-kind distinct small town character by placing land use restrictions on businesses was processed and approved and City Staff processed one formula business application for a motel. • An Ordinance to Prohibit the Feeding of Wildlife on the Coast Trail and other City properties was drafted and approved as well as signage was prepared to educate the public about the threats posed to wildlife in regards to this activity.

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
• The Design Guidelines Ad-Hoc Committee composed of two Planning Commissioners, two City Council members, and staff reviewed and revised the outdated Design Guidelines publishing the 2022 Design Guidelines for the City.
• A Tiny Homes ordinance was prepared and presented to Planning Commission and City Council. • The Parents and Friends Residential Care Facility located 350 Cypress Street received it land use entitlements and building permits to begin construction of three residential buildings to serve as group homes for aging, disabled adults.

PERFORMANCE / WORKLOAD MEASURES
(In Calendar Year, not Fiscal Year)
INDICATORS 2019 2020 2021
Development Permits (Coastal Development Permits, Use
Permits, Design Review, Subdivisions, Limited Term Permits, etc.)
70 33 63
CEQA Documents (Environmental Impact Reports,
MNDs, Negative Declarations)
2 MNDs 2 MNDs 1 MND
Building Permits 71 76 146
Code Enforcement Cases 77 50 131
Ordinance Amendments 2 2 4
Draft Work/On-Going Tasks 2
Grants 1 3 3
Business Licenses-New Awarded 111 93 92
Sign Permits 9 8 20
No. Planning Commission Staff Reports 14 9 23
No. Community Development Committee Staff Reports 3 3 10 FY 2022/23 TOP PRIORITIES
• On-going training and continuing education for new staff members. • Continue building a new code enforcement program which emphasizes preserving and improving the quality, health, and safety of living standards and the beauty of the City of Fort Bragg. • Prepare an LCP update of the housing codes to include adding Accessory Dwelling Units (ADU’s), Tiny Homes, and Senate Bill SB9 urban lot divisions to address incompatibility in the Coastal Land Use Code with state laws to improve housing stock.
• Continue to campaign to attract visitors and encourage and support local businesses. • Pursue activities geared toward boosting housing production to meet the needs of our community. • Improve gathering spaces and add recreational opportunities for City residents. • Restoration of recreation facilities at Bainbridge Park, including construction of two new artificial turf soccer fields and replacement of the playground equipment and surfacing at Wiggly Giggly.

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget

BUDGET OVERVIEW
The FY 2022/23 budget for the Community Development Department is $436k, a change of $40k over the FY 2021/22 projected total of $396k. The variance is related to COLA increases and step increases for the Department. The Department will have an open Assistant Planner to fill in the new fiscal year.

Department revenues are forecasted to increase by 21 percent due to the increase in Code Enforcement Activity funded by Community Development Block Grants (CDBG). The program is funded through FY 2023/34. Other Fines & Forfeitures, Licenses, and Permits are estimated to pick up in FY 2022/23 as it recorded declines since the Pandemic.

COMMUNITY DEVELOPMENT DEPARTMENT BUDGET SUMMARY
FUND 110
DEPARTMENT: 4320
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 264,382 375,769 363,568 407,221 12% Non-Personnel Services 37,601 33,715 32,600 29,250 -10% Total Departmental Expenditure 301,983 409,484 396,168 436,471 10% Revenue Summary
Charges for services 37,398 100,500 83,677 110,700 32%
Fines & Forfeitures 1,312 10,000 11,000 10,000 -9%
Licenses & Permits 15,404 29,600 18,255 19,000 4%
Intergovernmental 3,000 - - - -
Reimbursements 16,096 21,500 31,165 34,000 9%
Total Departmental Revenue 73,209 161,600 144,097 173,700 21% Net Rev/Exp (228,774) (247,884) (252,072) (262,771) 4%
Cost Allocation Summary
Expense - Cost Allocations 386,574 293,585 293,585 293,585 100% Revenue - Personnel Allocations - - - - -
Net Cost Allocation 386,574 293,585 293,585 293,585 0%
Net Expenditure $ (615,348) $ (541,469) $ (545,657) $ (556,356) 2% DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4320
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Charges for Services
3318 Grant Staff Time Reimb $ 25,019 75,000 73,118 98,000 34% 3415 City Exp Reimb - Developers $ 12,244 25,000 10,059 12,000 19% 3424 Ordinance Fees $ 135 500 500 700 40%
Total Charges for Services 37,398 100,500 83,677 110,700 32% Reimbursements
3497 Interfund Reimb - CDD $ 831 15,000 17,758 20,000 13% 3734 Community Dev Fees $ 14,265 6,500 13,000 14,000 8% 3998 Miscellaneous $ 2 - 407 - 0%
3499 Overhead/Admin Cost Recovery $ 998 - - - 0%
Total Reimbursements 16,096 21,500 31,165 34,000 9%
Licenses & Permits
3715 Sign Application $ 390 900 355 500 41%
3732 Grading Permits $ 158 1,200 1,400 1,000 -29%
3733 Building Permit Surcharge $ 14,734 25,000 14,000 15,000 7% 3702 Business License Surcharge $ 121 2,500 2,500 2,500 0% Total Licenses & Permits 15,404 29,600 18,255 19,000 4% Fines & Forfeitures
3735 Code Enforcement Fees $ 1,312 10,000 11,000 10,000 -9% Total Fines & Forfeitures 1,312 10,000 11,000 10,000 -9% Intergovermental
3205 Intergovermental $ 3,000 - - - -
Total Intergovermental 3,000 - - - -
Total CDD Revenue $ 73,209 161,600 144,097 173,700 21%

COST ALLOCATION DETAIL
Fund #110
Department: 4320
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation $ 172,007 (3,263) (3,263) (3,263) 0% 0800 Overhead Allocation 252,549 257,129 257,129 257,129 0% 0802 Cost Allocation contra exp (61,796) - - - -
0396 Allocation to ISF-IT 20,798 33,663 33,663 33,663 0% 0397 Allocation to ISF-Facilities 3,016 6,056 6,056 6,056 0% $ 386,574 293,585 293,585 293,585 0%
DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4320
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 178,385 265,496 261,967 297,533 14% 0200 Employee Benefits 85,997 110,274 101,602 109,687 8% Personnel Services 264,382 375,769 363,568 407,221 12%
0319 Professional Services 29,350 24,965 25,000 20,000 0% 0320 Dues & Memberships - 300 300 300 0%
0364 Legal Notices 5,431 3,500 3,500 4,000 14%
0366 Training/Travel Reimbursement 1,480 2,800 2,500 3,000 20% 0371 Meetings/City Business - 250 200 250 100%
0381 Small Tools & Equipment 1,141 1,700 1,000 1,500 50% 0384 Books & Subscriptions 200 200 100 200 100%
Non-Personnel Services 37,601 33,715 32,600 29,250 -10% Total CDD Expenditure $ 301,983 $ 409,484 $ 396,168 $ 436,471 10% Line Item Detail FY 2022/23
Fund #110 Account Category Proposed
Department: 4320 Detail Detail Budget
Personnel Costs
Salaries & Wages $ 297,533
Employee Benefits 109,687
Total Personnel Costs $ 407,221
Materials & Services
110-4320-0319 Professional Services 20,000
110-4320-0320 Dues & Memberships 300
110-4320-0364 Legal Notices 4,000
110-4320-0366 Training/Travel Reimbursement 3,000
110-4320-0371 Meetings/City Business 250
110-4320-0381 Small Tools & Equipment 1,500
110-4320-0384 Books & Subscriptions 200
29,250
Total Material & Services 29,250
Total - Community Development Department $ 436,471
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
MISSION STATEMENT: Provide, operate and maintain essential public infrastructure, facilities and services to make everyday life as safe and convenient as possible for Fort Bragg residents, businesses, and visitors. The basic services provided by the Public Works Department include surveying, mapping, drafting, capital project inspection and management, City-owned facility and park maintenance, infrastructure and street maintenance and repair, traffic signage, water intake, treatment and distribution, storm water runoff management, and wastewater collection, treatment and discharge.

DEPARTMENTAL DESCRIPTION
The Public Works Department is organized in six divisions - Administration/Engineering, Parks & Facilities, Corporation Yard & Fleet, Street Maintenance, Water Enterprise, and Wastewater Enterprise.

The Administration/Engineering Division provides administrative support, fiscal management and engineering services to the Public Works Department. It is also responsible for implementation of the City’s Capital Improvement Program and works closely with various regulatory agencies to maintain permit compliance. The Parks & Facilities Division provides maintenance and repairs for City facilities and grounds, parks and street trees and assists with capital projects as needed. The Corporation Yard & Fleet Division is responsible for maintenance of city streets including painted curbs, crosswalks, and signage; maintenance and repairs of the City’s wastewater collection lines, storm drains, water distribution system, utility meters, and, fire hydrants. The Public Works crew also responds to sewage AUTHORIZED FTE FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Public Works Department 13.60 12 12.60 14 14 15.8 19 21.5 28 Enterprise Department 8 8 8 8 8 8 8 7 7.5
Lead Treatment
Operator –
Water/Wastewater
Maintenance
Workers (7)
Seasonal Trail
Laborer (.5)
Treatment
Plant
Operators (5)
Part Time
WW/W (.5)
Engineering
Technician
Environmental
Compliance
Coordinator
Lead Maintenance
Worker
Mechanic
Operations Manager Assistant Director of
Engineering

DIRECTOR OF PUBLIC WORKS
Administrative
Analyst
Assistant
Engineer (2)

PUBLIC WORKS DEPARTMENT
Community
Development
(4)
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
overflows and water service line leaks. Fleet is responsible for the maintenance of all City vehicles, heavy equipment, and other large pieces of equipment owned by the City. The Public Works field crew also provides support for many civic and community events. Community Development is also housed under the Public Works Department, but its budget is in another section. Water and Wastewater Enterprises are operated as separate funds and are presented in separate sections of this budget. In the past year, housing and environmental review capabilities have been added to further strengthen the Department’s skills base.

STRATEGIC GOALS AND OBJECTIVES
• Provide coordinated oversight and management of six divisions within the Public Works Department.
• Ensure that employees are given essential safety training and job-skills training. Provide employees with adequate resources to safely and effectively complete their work. • Implement employee policies and procedures in accordance with all federal, State, and local rules and regulations.
• Perform necessary physical and operational activities at each City-owned facility and City infrastructure to stay current with constantly evolving regulatory requirements. • Directly or through the use of consultants manage and inspect the City's capital projects to ensure quality of workmanship, timeliness, and conformance with plans and technical specifications and budgetary constraints.
• Pursue additional revenue sources, strive for cost-efficiencies, and reduce costs to the General Fund and Enterprise Funds.
• Strive for energy-efficiency in the operation of all City-owned facilities and continue innovating sustainability measures.
• Enhance public travel by providing a safe, durable, multi-modal road network that fully includes pedestrian, bicycling, transit, rail and other modes of transportation. Provide for a smooth flow of traffic throughout the City.
• Maintain customer satisfaction and continue to be responsive to citizen inquiries and concerns.

FY 2021/22 MAJOR ACCOMPLISHMENTS
• Desalination Plant: The City installed an Aquaclear Desalination-Reverse Osmosis Water Treatment System in October 2021 at the Fort Bragg’s Water Treatment Plant. This skidmounted unit is capable of producing 200 gallons a minute of desalinated water, or 288,000 gallons per day. Because the City’s wastewater treatment plant treats waste using bacteria and specialty microbes to clean water, the amount of brine (concentrated saltwater) it can process is limited, restricting use of the desalination system to 12 hours per day. The daily capacity tops out at 144,000 gallons per day, which is approximately 25% of the City’s daily water use. • Maple Street Storm Drain and Alley Rehabilitation: The project included replacement of a failing 12” stormdrain line along a 340 linear foot alley (S300K) and an 18” stormdrain line along 770 linear feet of a collector street (Maple Street). In addition to the replacement of the stormdrain infrastructure, the project included installation of several additional storm drain inlets, significant removal and replacement of pavement on the east end of Maple Street to restore the curb and gutter, and the installation of several new standardized ADA curb ramps.

Additionally, the rehabilitation of five (5) alleys were included in the project. In total the project DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
rehabilitated 1,110 linear feet of stormdrain line and 6,800 square yards of City Street and alley pavement.
• Raw Water Line Design Engineering: Design for the replacement raw water transmission line and construction drawings are well underway as this fiscal year comes to a close. The raw water line is 15,000 LF of transmission line and appurtenances from the City’s Water Treatment Facility to Summers Lane Reservoir and from Highway 20 to Waterfall Gulch. This pipeline is critical to the secure supply of raw water from the City's best quality sources, and the existing pipeline is nearing the end of its service life. Much of this transmission line has been in place for decades, and consists of a mixture of PVC, asbestos concrete, ductile iron and steel pipe. A portion of the existing pipeline is above ground and is supported by a trestle.

The alignment crosses two waterways, the Hare Creek crossing and the Noyo River crossing. • Water Meter Replacement Project Commencement: The scope of work for this project included the removal of existing water meters and installation of new ultrasonic water meters using cellular-based, fixed-network meter reading system in and around the City of Fort Bragg.

This project was funded by CDBG. Construction on this project is scheduled to begin as the fiscal year comes to a close.
• Bio-Solids Dryer Purchase and Installation: The Wastewater Treatment Plant Upgrade Project was complete April 2020. The first year of operation provided good data on performance of the treatment process and the result of this efficient process was an increase in biosolids storage causing an odiferous condition which impacted our coastal trail users. Staff selected, purchased, and installed the USA dryer. The USA dryer is capable of producing a Class A granular product by heating the biosolids, accomplishing a 90 percent total solids content. The temperature and total solids content values are in accordance with U.S.

Environmental Protection Agency (EPA) Clean Water Act, Part 503 rule regarding land application of biosolids; those biosolids meeting the Class A requirement have less stringent regulations for reuse and disposal.
• Cure in Place Pipe – Sewer Rehabilitation: The 2021 Cure-In-Place Pipe (CIPP) Project refurbished sewer mains with liners in the following quantities; 278 linear feet (LF) of 10” main, 4,030 LF of 8” main, and 672 LF of 6” main for a total of 4,980 LF (~0.94 miles). The area refurbished are generally located in proximaty to existing waterways and include the following locations: Lower portion of North Harbor Drive; Oak Terrace; Nancy Way; Cedar from west of Nancy Way to N Sanderson Way; Lower portion of S Harbor Drive; and Pipeline running from Highway 1 (near Riverview) to S Harbor Drive.
• Water Treatment Plant Overhaul Design: The City’s water treatment plant is undergoing design for significant rehabilitation. The rehab project consists of rehabilitation of the Filter Treatment Units (FTUs), Upgrades to the water plant piping, including flow meters and valves, Repair, upgrade, and construction of water treatment plant buildings, Rehabilitation of Tank #2, Demolition of the old clarifier, lining of the adjoining raw water and backwash ponds, upgrades to the Supervisory Control And Data Acquisition (SCADA) control system, Replacement of the chemical feed pumps, relocation of the laboratory, and other miscellaneous site improvements. • Septage Receiving Station: With the addition of the septage receiving station at the Wastewater Treatment Plant, the Municipal Improvement District can now manage the wastes being generated within the jurisdiction and provides protection the systems as well as the environment. The plant can accept porta-toilet waste and other septage directly.

DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
• Pudding Creek Water Main Relocation Design: This project will relocate the 10-inch water main serving the northern part of Fort Bragg to ensure water system resiliency and supply reliability and is scheduled for construction along with the Pudding Creek Bridge widening project.
• CV Starr Projects: Several projects were completed at the Starr Center including LED Lighting Project, pump replacement, pool heater replacement, and locker room flooring. • SB 1383 Ordinance: Staff prepared an ordinance revising Chapter 6 of the Fort Bragg Municipal Code to aimed to reduce the statewide disposal of organic waste by 75% from 2014 by 2025; and establishing requirements for edible food diversion for human consumption. • Small Projects: Other miscellaneous small projects completed this year include, replacement of the stain glass windows at the Guest House Museum, replacement of the furnace in CDD, vehicle radios, and tree services at Otis Johnson Park.

DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE / WORKLOAD MEASURES
INDICATORS FY20 FY21 FY22

PUBLIC WORKS
Total cost of Projects budgeted - CIP $9.4 M $5 M $20 M Grading Permits 6 3 1
Encroachment Permits issued 48 41 35
Traffic Committee requests processed 19 25 27

MAINTENANCE
Streets (miles) 27.5 27.5 27.5
Alleys (miles) 19 19 19
Storm drains (miles) 10 10 10
Street lights 592 592 592

BUDGET OVERVIEW
The Proposed Public Works budget for FY 2022/23 is estimated to be $1.2M which is a minimal decrease from the prior Fiscal year. In FY 2021/22 a Speed Trailer of $50k was budgetted for. Increases in personnel costs are attributed to COLA and Step increases for employees.

DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PUBLIC WORKS DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4330, 4392, 4520, 4522, 4570, 4840
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure
Personnel Services $ 1,136,761 $ 1,017,316 $ 1,009,814 $ 1,050,171 4% Non-Personnel Services 187,814 308,575 265,334 224,550 -15% Total Departmental Expenditure 1,324,574 1,325,891 1,275,148 1,274,721 0% Revenue
Charges for services 24,389 87,000 20,276 28,326 40%
Licenses and Permits 13,361 10,000 9,311 10,000 7%
Reimbursements 350,438 415,034 425,514 399,200 -6%
Total Departmental Revenue 388,188 512,034 455,100 437,526 -4% Net Expenditure (936,387) (813,857) (820,047) (837,195) 2% Cost Allocation
Expense - Cost Allocations 267,060 246,695 246,695 246,695 0% Revenue - Personnel Allocations 652,186 777,229 752,252 777,229 3% Net Cost Allocation 919,246 1,023,924 998,947 1,023,924 3% Net Expenditure $ 1,855,633 $ 1,837,781 $ 1,818,994 $ 1,861,119 2% $706,863
46%
$343,308
23%
$224,550
15%
$246,695
16%
FY 2022/23 EXPENDITURES BY CATEGORY
Salaries & Wages
Benefits
Materials & Services
Allocations
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4330, 4392, 4520, 4522, 4570, 4840
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
% +
/-
0100 Salaries & Wages 683,139 635,063 619,543 706,863 14% 0200 Employee Benefits 453,622 382,252 390,271 343,308 -12% Personnel Services 1,136,761 1,017,316 1,009,814 1,050,171 4% Administration, Engineering, Corp Yard
0319 Professional Services 1,328 28,600 28,659 18,100 - 0320 Dues & Memberships - 175 175 700 300%
0366 Training/Travel Reimbursement 1,165 2,300 2,300 2,500 9% 0373 Licenses & Permits 1,316 1,600 1,900 2,300 -
0375 General Supplies 6,153 5,500 5,500 5,500 0%
0376 Medical/Safety Supplies 1,375 1,000 1,800 2,500 39% 0377 Boot Expense 1,507 2,250 2,750 3,000 -
0381 Small Tools & Equipment 1,029 4,400 4,400 1,150 -
0384 Books & Subscriptions - 250 250 200 -
Total Administration, Engineering, Corp Yard 13,874 46,075 47,734 35,950 -25% Parks & Facilities
0319 Professional Services 7,875 5,400 5,400 5,400 0%
0353 Park Maintenance 11,433 12,200 12,200 12,000 -2%
0366 Training/Travel Reimbursement - 1,200 1,000 1,200 20% 0375 General Supplies 11,619 21,000 1,000 - -100%
0381 Small Tools & Equipment 1,000 - - - -
Total Parks & Facilities 31,926 39,800 19,600 18,600 -5% Street Maintenance
0319 Professional Services 1,300 31,200 16,000 15,000 -6% 0375 General Supplies 10,379 10,000 10,000 12,000 20%
0383 Utilities 95,927 92,000 89,000 95,000 7%
Total Street Maintenance 107,607 133,200 115,000 122,000 6% Storm Drains
0319 Professional Services 3,372 5,000 5,000 5,000 0%
0373 Licenses & Permits 5,800 6,000 6,000 7,000 17%
0375 General Supplies 1,675 5,000 5,000 7,500 50%
0751 Infrastructure - - - - -
Total Storm Drains 10,847 16,000 16,000 19,500 22%
Traffic & Safety
0319 Professional Services - 50,000 50,000 1,000 -98%
0375 General Supplies 17,459 16,500 10,000 20,000 100%
0383 Utilities 6,101 7,000 7,000 7,500 7%
Total Traffic & Safety 23,559 73,500 67,000 28,500 -57% Non-Personnel Services 187,814 308,575 265,334 224,550 -15% Total Public Works Department $ 1,324,574 $ 1,325,891 $ 1,275,148 $ 1,274,721 -0.03% DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Administration & Engineering Department Expenditure
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4330 Detail Detail Budget
Personnel Costs
Salaries & Wages $ 471,093
Employee Benefits 192,317
663,410
Total Personnel Costs $ 663,410
Materials & Services
110-4330-0310 Engineering 10,000
110-4330-0319 Professional Services 7,000
110-4330-0320 Fleet Services -
110-4330-0365 Copying/Printing -
110-4330-0366 Training/Travel Reimbursement 2,000
110-4330-0373 Licenses & Permits 300
110-4330-0377 Boot Expense 750
110-4330-0381 Small Tools & Equipment 350
110-4330-0384 Books & Subscriptions 200
20,600
Total Material & Services $ 20,600
Total - Admin. & Engineering Department Expenditure $ 684,010 Parks & Facilities Department Expenditure
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4392 Detail Detail Budget
Materials & Services
110-4392-0319 Professional Services $ 5,400
Parlin Fork work crew 550
Porta-potty maintenace 800
Tree maintenance 4,050
110-4392-0353 Park Maintenance 12,000
110-4392-0366 Training/Travel Reimbursement 1,200
110-4392-0375 General Supplies -
110-4392-0381 Small Tools & Equipment -
Total Material & Services $ 18,600
Total - Parks & Facilities Department Expenditure $ 18,600 DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Street Maintenance Department Expenditure
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4520 Detail Detail Budget
Materials & Services
110-4520-0319 Professional Services $ 15,000
Materials disposal 15,000
110-4520-0375 General Supplies 12,000
110-4520-0383 Utilities 95,000
Total Material & Services $ 122,000
Total - Street Maintenance Department Expenditure $ 122,000 Storm Drain Department
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4522 Detail Detail Budget
Materials & Services
110-4522-0319 Professional Services $ 5,000
Engineering $ 4,000
Outreach 1,500
110-4522-0373 Licenses & Permits 7,000
NPDES permit 7,000
110-4522-0375 General Supplies 7,500
Total Materials & Services $ 19,500
Total - Storm Drain Department $ 19,500
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Corporation Yard Department
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4570 Detail Detail Budget
Personnel Costs
Salaries & Wages $ 235,770
Employee Benefits 150,991
Total Personnel Costs $ 386,761
Materials & Services
110-4570-0319 Professional Services 1,100
DMV tests $ 700
Materials disposal 400
110-4570-0320 Dues & Memberships 700
USA (Underground Service Alert) 300
110-4570-0366 Training/Travel Reimbursement 500
110-4570-0373 Licenses & Permits 2,000
110-4570-0375 General Supplies 5,500
110-4570-0376 Medical/Safety Supplies 2,500
110-4570-0377 Boot Expense 2,250
110-4570-0381 Small Tools & Equipment 800
Total Material & Services $ 15,350
Total - Corporation Yard Department $ 402,111
Street Traffic & Safety Department
Line Item Detail
FY 2022/23
Fund #110 Account Category Proposed
Department: 4840 Detail Detail Budget
Materials & Services
110-4840-0319 Professional Services 1,000
110-4840-0375 General Supplies 20,000
110-4840-0383 Utilities 7,500
Total Material & Services $ 28,500
Total - Street Traffic & Safety Department $ 28,500
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4520,4330,4570,4840
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Charges for Services
3318 Grant: Staff Time Reimb $ 127 $ 75,000 $ 10,247 $ 13,326 30% 3415 City Exp- Reimb DDA $ 22,002 $ 10,000 $ 5,029 $ 10,000 99% 3734 Engineering Plan Review $ 2,260 $ 2,000 $ 5,000 $ 5,000 0% Total Charges for Services 24,389 87,000 20,276 28,326 40% Licenses and Permits
3731 Encroachment Permit $ 13,361 $ 10,000 $ 9,311 $ 10,000 7% Total Licenses & Permits 13,361 10,000 9,311 10,000 7%
Reimbursements
3497 Interfund Reimbursements $ 110,972 $ 153,834 $ 134,711 $ 138,000 100% 3497 Interfund Reimbursements $ 239,466 $ 261,200 $ 290,000 $ 261,200 -10% 3497 Interfund Reimbursements- Eng PW $ - $ - $ 803 $ - -100% Total Reimbursements 350,438 415,034 425,514 399,200 -6% Total Public Work Dept. Revenue $ 388,188 $ 512,034 $ 455,100 $ 437,526 -4% $28,326
7%
$10,000
2%
$399,200
91%
FY 2022/23 REVENUE BY CATEGORY
Charges for services
Licenses and Permits
Reimbursements
DEPARTMENT DETAILS – PUBLIC WORKS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

COST ALLOCATION DETAIL BY DEPARTMENT
Fund #110
Department: 4330,4392,4520,4522,4570,4840
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Administration & Engineering
0801 Salary/Benefit Allocation 39,750 2,974 2,974 2,974 100% 0802 Cost Allocation contra exp (135,114) (24,110) (24,110) (24,110) 100% 0396 Allocation to ISF-IT 12,479 20,198 20,198 20,198 100% 0397 Allocation to ISF-Facilities 2,262 4,542 4,542 4,542 100% 3499 Personnel Cost Allocation - Revenue $ 361,545 $ 365,332 $ 361,545 $ 365,332 1% Total Administration & Engineering 280,922 368,936 365,149 368,936 1% Parks & Facilities
0801 Salary/Benefit Allocation 217,836 242,287 242,287 242,287 100% 0800 Overhead Allocation 136,619 138,152 138,152 138,152 100% 0396 Allocation to ISF-IT 8,061 13,047 13,047 13,047 100% 0322 Allocation to Fleet Int Serv Fund 8,486 12,902 12,902 12,902 0% 0397 Allocation to ISF-Facilities 29,602 59,441 59,441 59,441 0% Total Parks & Facilities 400,604 465,829 465,829 465,829 0% Street Maintenance
0801 Salary/Benefit Allocation 50,200 52,835 52,835 52,835 100% 0322 Allocation to Fleet Int Serv Fund 4,232 42,547 42,547 42,547 0% 0800 Overhead Allocation 74,203 109,126 109,126 109,126 100% 0396 Allocation to ISF-IT 3,224 5,219 5,219 5,219 100%
Total Street Maintenance 131,859 209,727 209,727 209,727 100% Storm Drain
0801 Salary/Benefit Allocation 34,426 86,902 86,902 86,902 100% 0800 Overhead Allocation 61,797 79,877 79,877 79,877 100% 0396 Allocation to ISF-IT 3,224 5,219 5,219 5,219 0%
0322 Allocation to Fleet Int Serv Fund 27,984 6,435 6,435 6,435 0% Total Storm Drain 127,431 178,433 178,433 178,433 0%
Corporation Yard
0801 Salary/Benefit Allocation 138 831 831 831 100%
0802 Cost Allocation contra exp (427,233) (785,285) (785,285) (785,285) 100% 0396 Allocation to ISF-IT 16,687 27,010 27,010 27,010 100% 0397 Allocation to ISF-Facilities 11,247 22,584 22,584 22,584 100% 3499 Personnel Cost Allocation - Revenue $ 290,641 $ 411,897 $ 390,707 $ 411,897 5% Total Corporation Yard (108,520) (322,963) (344,153) (322,963) 100% Street Traffic & Safety Department
0801 Salary/Benefit Allocation 21,890 31,895 31,895 31,895 100% 0800 Overhead Allocation 60,996 85,887 85,887 85,887 100% 0322 Allocation to Fleet Int Serv Fund 4,064 6,180 6,180 6,180 0% 0397 Allocation to ISF-Facilities - - - - #DIV/0!
3499 Personnel Cost Allocation - Revenue $ - $ - $ - $ - 100% Total Street Traffic & Safety Department 86,950 123,962 123,962 123,962 0% Total Cost Allocation 919,246 1,023,924 998,947 1,023,924 3%

ISF- FACILITIES REPAIR & MAINTENANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The Facilities Repair & Maintenance Internal Service Fund accounts for all costs associated with the maintenance of public buildings, including preventative maintenance and on-going maintenance. These services are primarily performed by the City’s Public Works staff.

DEPARTMENTAL DESCRIPTION
The Public Works Department serves City staff and the community through the maintenance and repair of public facilities. Examples of tasks include repair and maintenance of heating and ventilation systems, repair and maintenance of plumbing systems; upgrades to ensure reliable electrical power, replacement of plumbing fixtures, light fixtures, carpentry, roofing, flooring and painting.

STRATEGIC GOALS AND OBJECTIVES
• The primary goal of the Public Works Department’s Facilities Repair & Maintenance Internal Service Fund is to provide quality and efficient maintenance that fosters a safe and positive atmosphere for our employees and the citizens of Fort Bragg.
• Procure products and equipment that are safe to use and provide for a long-term investment at a reasonable cost.
• Identify future needs and prioritize according to safety and available funding. • Improve internal and external communications.
• Stay current with trends in technology.

BUDGET OVERVIEW
The FY 2022/23 Proposed Budget for the Facilities Repair & Maintenance Internal Service Fund (including transfers from the reserve to fund capital projects) is $157k. Major Facility Maintenance include City hall ($10k), Police Department Paint $22k and Noyo Headlands Park $18k.

Pursuant to the City’s Fund Balance and Reserve Policy, the unrestricted fund balance is intended to help pre-fund large purchases and repairs and avoid big annual swings in funding needs. In FY 2021/22, the ISF- Fund balance will decrease from $631k to $295k based on the Fund’s 10-Year Financial Plan.

FACILITIES REPAIR & MAINTENANCE

INTERNAL SERVICE FUND

ISF- FACILITIES REPAIR & MAINTENANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
$93,568
59%
$63,749
41%
FY 2022/23 EXPENDITURES BY CATEGORY
Salary/Benefit
Allocation
Maintenance & Repair

FACILITIES REPAIR & MAITENANCE DEPARTMENTAL BUDGET SUMMARY FUND 520
DEPARTMENT: 4393
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure:

Non-Personnel Services 19,738 101,500 25,905 63,749 146% Total Departmental Expenditure 19,738 101,500 25,905 63,749 146% Revenue:

Interest Earned 5,826 7,495 5,600 6,030 8%
Total Departmental Revenue 5,826 7,495 5,600 6,030 8%
Net Expenditure (13,912) (94,005) (20,305) (57,719) 184% Cost Allocation
Expense - Cost Allocations 78,810 93,568 82,000 93,568 14% Revenue - User Fees 97,147 195,068 170,231 195,068 100% Net Cost Allocation 175,957 288,636 252,231 288,636 14% Net Expenditure $ (189,869) $ (382,641) $ (272,536) $ (346,355) 27%

ISF- FACILITIES REPAIR & MAINTENANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET DETAIL:

Fund #520
Department: 4393
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation $ 78,810 $ 93,568 $ 82,000 $ 93,568 14% Personnel Services 78,810 93,568 82,000 93,568 14%
0353 Facilities Maint & Repair $ 19,738 $ 101,500 $ 25,905 $ 63,749 146% 0499 Depreciation- Facilities $ - $ - $ - $ - 0%
7999 Capital Projects - Transfer Out $ - $ - $ - $ - 0% Non-Personnel Services 19,738 101,500 25,905 63,749 146% Total - Facilities Maintenance $ 98,548 $ 195,068 $ 107,905 $ 157,317 46% Reserve 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 ISF project work - projected 25,909 63,749 19,811 9,874 36,438 14,503 6,568 100,000 145,000 8,000 Sal/Benefits Allocation 107,905 93,568 106,668 121,601 138,625 158,033 165,934 174,231 182,943 192,090 Projected Total Cost 133,814 157,317 126,479 131,475 175,063 172,535 172,502 274,231 327,943 200,090 Required Funds contribution 175,831 201,098 201,098 201,098 201,098 201,098 201,098 201,098 201,098 201,098 Transfers Out (37,320) (380,000) - - - - - - - -
Beginning Reserve Balance 626,529 631,226 295,007 369,626 439,249 465,283 493,846 522,442 449,309 322,465 Reserve - increase (decrease) 4,697 (336,219) 74,619 69,623 26,035 28,563 28,596 (73,133) (126,845) 1,008 Ending Reserve Balance 631,226 295,007 369,626 439,249 465,283 493,846 522,442 449,309 322,465 323,473 Contributed Funds: 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 General Fund 73,112 100,549 100,549 100,549 100,549 100,549 100,549 100,549 100,549 100,549 Water 36,145 50,275 50,275 50,275 50,275 50,275 50,275 50,275 50,275 50,275 Wastewater 36,145 50,275 50,275 50,275 50,275 50,275 50,275 50,275 50,275 50,275 Notes:
*Overhead Allocations assume a 1% increase annually starting with FY18/9 over FY17/18 *Salary and Benefits Allocation assumes a 14% increase annualy starting with FY19/20 over FY18/19. The rate of increase is reduced to 5% beginning with FY24/25 * Project work that benfits all three operating funds are charged 50% to the General Fund and 25% to each of the two utility funds * Project work that can be attributed to a single fund are charged 100% to that fund * Overhead, Salary and Benefits allocations are charged 50% to the General Fund and 25% to each of the two utility Funds MAJOR PROJECTS/REPLACEMEN 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Annual
Average
General
Fund
Water
Enterpris
e
Wastewat
er
Enterprise
City Hall - 10,000 - - - - - 60,000 35,000 8,000 1,250 625 313 313 City Hall East - 4,000 - 3,500 - - - - - - 938 938 - -
Fort Building - 10,000 - - - - - - - - 1,250 1,250 - -
Town Hall - - - - - 3,000 - - - - 375 188 94 94
Fire Station, Main St - - - - - - - - - - - - - -
Fire Station, Hwy 20 - - - - - - - - - - - - - -
Guest House 19,722 - - - - - - - 110,000 - 2,465 2,465 - - Police Department - 22,000 - - - - - - - - 2,750 2,750 - - Noyo Headlands Park - 17,749 4,500 - 30,000 5,000 - - - - 7,156 7,156 - - Pomo Bluffs Park - - 9,000 - - - - 40,000 - - 1,125 1,125 - - Noyo Beach - - - - - - - - - - - - - -
Corp Yard - - - - - - - - - - - - - -
Harbor Lite Trail - - - - - - - - - - - - - -
TOTAL major projects 19,722 63,749 13,500 3,500 30,000 8,000 - 100,000 145,000 8,000 17,309 16,496 406 406 General Repairs Facilities $6,187 $6,249 $6,311 $6,374 $6,438 $6,503 $6,568 $6,376 $3,188 $1,594 $1,594 TOTAL preventative maintenanc $6,187 $6,249 $6,311 $6,374 $6,438 $6,503 $6,568 $6,376 $3,188 $1,594 $1,594 TOTAL PROJECT FUNDING NEED $25,909 $69,998 $19,811 $9,874 $36,438 $14,503 $6,568 $100,000 $145,000 $8,000 $23,685 $19,684 $2,000 $2,000 Note: CIP projects that are designated in the "Beyond CIP" category have all been placed in 6th year of the ISF, FY 2023/24

ISF- FACILITIES REPAIR & MAINTENANCE
City of Fort Bragg ~ FY 2022/23 Proposed Budget

MAJOR PROJECTS/REPLACEMENTS
Notes 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Total City Hall:

Paint Exterior $5,000 $60,000 $65,000
Electric/Generator/ EV Charging Stations $20,000 $20,000 HVAC 4 units $0 $5,000 $5,000
Roofing $0
ADA Doors $8,000 $8,000
Electric Vehicle facility $15,000 $15,000
TOTAL City Hall $0 $10,000 $0 $0 $0 $0 $0 $60,000 $35,000 $8,000 $113,000 City Hall East:

Electric $0
Lighting Gym $3,500 $3,500
Doors Double doors/heater room $0
Flooring Hallway carpet $0 $4,000 $4,000
Roofing Pool and offices $0
Bathrooms $0
Heaters 3 units $0
Pool Incl structure $0
Fire Sprinkler System $0
TOTAL City Hall East $0 $4,000 $0 $3,500 $0 $0 $0 $0 $0 $7,500 Fort Building:

Paint $10,000 - $10,000
TOTAL Fort Building $0 $10,000 $0 $0 $0 $0 $0 $0 $0 $10,000 Town Hall:

Paint Exterior $0 $0 $0
Carpentry Dais/Cabinets $3,000 $3,000
HVAC Heater $0
Doors/Windows $0 $0 $0
Landscaping $3,000
TOTAL Town Hall $0 $0 $0 $0 $0 $3,000 $0 $0 $0 $9,000
Guest House:

Paint $60,000 $60,000
Carpentry/Windows/Siding/Fencing $0
Roofing $0
Foundation/Stain Glass Rehab/Sign $19,722 $ - $19,722
Walkways and Signage $50,000 $50,000
TOTAL Guest House $19,722 $0 $0 $0 $0 $0 $0 $0 $110,000 $129,722 Police Department:

Paint Exterior/Interior $ 22,000 $22,000
Electric Generator Shed $0
HVAC 8 units $0
Roofing $0
Emergency Generator $0
TOTAL Police Department $0 $22,000 $0 $0 $0 $0 $0 $0 $0 $22,000 Bainbridge Park
Wiggly Giggly $0 $0
Tennis/Basketball $0
TOTAL Bainbridge Park $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Noyo Headlands Park:

Noyo Center
Bathrooms Hardware, locks, etc. $0 $3,749 $4,500 $5,000 $13,249 Fencing Fence fabric $0 $14,000 $30,000 $16,000 $60,000 TOTAL Noyo Headlands Park $0 $17,749 $4,500 $0 $30,000 $5,000 $0 $73,249 Pomo Bluffs Park:

Parking Lot Resurface $40,000 $0
Bathrooms Roof/Bollards $0 $9,000 $9,000
TOTAL Pomo Bluffs Park $0 $0 $9,000 $0 $0 $0 $0 $40,000 $0 $9,000 Noyo Beach:

General $0
TOTAL Noyo Beach $0 $0 $0 $0 $0 $0 $0 $0
Harbor Lite Trail:

Trail $0
TOTAL Harbor Lite Trail $0 $0 $0 $0 $0 $0 $0 $0
TOTAL MAJOR PROJECT FUNDING NEEDS: $19,722 $63,749 $13,500 $3,500 $30,000 $8,000 $0 $100,000 $145,000 $8,000 $373,471 Fiscal Year
ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The Technology Maintenance & Replacement, Internal Service Fund, accounts for all costs associated with the internal computing and technological resources for all departments throughout the City.

SERVICE FUND DESCRIPTION
The Technology Maintenance & Replacement Internal Service Fund’s costs include hardware, software and service contracts associated with the City’s computers and information technology infrastructure as well as personnel costs for the City’s Information Technology division which resides in the Administrative Services Department. The Information Technology division is responsible for the following:
• Workstation administration
• Server administration
• Network infrastructure administration
• Telecommunication administration and installations
• Cloud services support
• Software and database maintenance and backup
• Asset tracking for IT equipment
• Social media and website maintenance
• Live streaming and AV production of City meetings
• Technical support for City/PD users and presenters at public meetings • Public Wi-Fi administration and support
• Digital file archiving and distribution
• Public Access TV hardware allocation and administration Assistant Finance
Director

TECHNOLOGY MAINTENANCE & REPLACEMENT

INTERNAL SERVICE FUND

Systems Analyst
ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2021/22 TOP ACCOMPLISHMENTS
Information Technology Accomplishments
• Upgrade to Office 365 software, reducing the risk of external intrusion. • Re-Networking and New Policy Creation of City Wide Filters. • Implementation of 24/7 Port 53 – Cisco Security Systems. • City Wide Upgrade of Firewalls.
• Segmenting the Network in Different Sections.
• Increasing our City Wide Internet Bandwidth.
• Upgrade and Connect Corp Yard in to Cable Network.
• City Hall and Police Department Printer Renewal.
• Implement Failover Connection to Switch from Comcast to MCN in Case of Power Outage. • Renew Servers from Server 2008 to Server 2022.
• Upgrade of computer systems older than Windows 10.
• Produce new website and connect to network
• Assist with testing and migration to Springbrook cloud • Migration of Granicus video production server to cloud based technology • Implementation of New VPN encryption.
• Creation of Hybrid Base System for City Hall Meetings. • Configuration and testing of possible cloud based Networked Police Car Computers.

PERFORMANCE / WORKLOAD MEASURES

Indicators FY 2021/22
Number of requests for repairs and/or technical assistance 1,398 Spam messages blocked 197,728
Computer viruses blocked 9,752
Views of Broadcasted meetings 52,782
ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
F2022/23 TOP PRIORITIES
• Upgrade City Wide Phone System.
• Renew, Redrawing and Networking of City Wide Network. • Upgrade Networking Systems.
• Renew City Wide Camera System
• Renew and Increase Cloud Backup Coverage
• Implementation of New Industrial Wi-Fi
• New DNS and Routing systems.
• Bring all System Wide Computers and Software to top Industry Standard. • Upgrade camera system in town hall chambers
• Move to Azure Cloud or Upgrade Fileservers.

BUDGET OVERVIEW
In FY 2021/22 the City undertook various Network System, Office 365 and Firewall upgrades as Worldwide cyber threats increased against organizations of all sizes and types. These upgrades increased the IT Budget from $183k in FY 2020/21 to $544k, which was a $361k increase in FY 2021/22. The FY 2022/23 Proposed Budget for the Technology Maintenance & Replacement Internal Service Fund is $572k, a decrease of $52k or 8% compared to the FY 2021/22 projected year-end balance.

The Proposed Budget includes an IT Manager position which the City is currently recruiting. This position will increase personnel costs by 79 percent, or $76k.

Pursuant to the City’s Fund Balance and Reserve Policy, the unrestricted fund balance in the Technology Maintenance & Replacement Internal Service Fund is intended to help pre-fund large purchases and repairs and avoid big annual swings in funding needs. At the end of FY 2022/23 the fund balance is estimated to be at negative $146k based on the Fund’s 5-year plan and the substantial increases in operating expenditures during the last fiscal year.

ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET DETAIL:

Fund #521
Department: 4394
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 63,448 $ 82,469 $ 69,850 $ 121,026 73% 0200 Employee Benefits $ 24,284 $ 22,065 $ 25,831 $ 50,483 95% Personnel Services $ 87,732 $ 104,535 $ 95,680 $ 171,509 79% $ - $ - $ - $ -
0319 Professional Services $ 24 $ - $ 106 $ - -100%
0351 Equipment Repair & Maint $ - $ 4,700 $ 4,700 $ 4,100 -13% 0381 Small Tools & Equipment $ 8,044 $ 3,000 $ 3,000 $ 3,500 17% 0382 Hardware $ 12,880 $ 132,100 $ 132,000 $ 108,068 -18% 0383 Software $ 155 $ 33,100 $ 33,100 $ 2,000 -94%
0384 Hardware/Software Support $ 173,483 $ 369,113 $ 354,112 $ 274,795 -22% 0499 Depreciation $ (11,734) $ - $ - $ - 0%
0619 Miscelleneous Expense $ - $ - $ - $ 5,000 100%
0741 Machinery & Equipment $ - $ 600 $ 250 $ 1,300 420% Non-Personnel Services 182,852 544,613 528,268 400,763 -24% Sub Total - Costs 270,585 649,147 623,949 572,272 -8%
Total Information Technology Services $ 270,585 $ 649,147 $ 623,949 $ 572,272 -8%

IT DEPARTMENTAL BUDGET SUMMARY
FUND 521
DEPARTMENT: 4394
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget %
Expenditure:

Personnel Services $ 87,732 $ 104,535 $ 95,680 $ 171,509 79% Non-Personnel Services 182,852 544,613 528,268 400,763 -24% Total Departmental Expenditure 270,585 649,147 623,949 572,272 -8% Revenue:

Charges for services - Allocation ISF 272,450 440,990 (440,990) 471,859 100% Total Departmental Revenue 272,450 440,990 (440,990) 471,859 100% Net Revenue/Expenditure $ 1,865 $ (208,157) $ (1,064,939) $ (100,413) -91% Cost Allocation
Expense - Cost Allocations $ 3,023 $ (8,212) $ (8,212) $ (8,212) 0% Revenue - User Fees (272,450) (440,990) (440,990) (471,859) 7% Net Cost Allocation (269,427) (449,202) (449,202) (480,071) 7% Net Expenditure $ 271,292 $ 241,045 $ (615,737) $ 379,658 -162% ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 19-20
Current
Budget
FY 20-21
Budget
FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Projected
Budget
FY 24-25
Projected
Budget
FY 25-26
Projected
Budget
521-4394-0384
Licensing & Software Support & Maintenance
Cisco Capital and Port 53 for endpoint security licensing & monitoring $ 18,139 18,139 $ 18,139 $ 20,000 $ 20,000 MCN - Fusion DSL at CH 1764 1764 2,000 1764 1764 1764
Cisco LAN Switches Annual Licenses and SmartNet $ 875
Springbrook Maintenance Contract Due July 1 - 35,000 47,479 47,479 47,479 47,479 47,479 Auto CAD Subscription Due in October 3,053 3,053 4,000 4,400 4,400 4,400 4,400 Parcel Quest 3,500 5,000 5,000 5,000 5,000 5,000 5,000
PD IBM Maintenance TracNet 13,500 13,500 14,000 14,500 15,000 15,000 15,000 DLB Associates - IBM Server Maintenance 2,724 2,724 2,724 3,000 3,000 3,000 3,000 App River / Spam Filter 1,300 1,300 1,500 1,600 1,600 1,600 1,600 Granicus/Legistar Annual Maintenance Website and Gov Message 8,700 8,700 13,551 17,000 17,000 17,000 17,000 Granicus Encoder Maintenance - Addition for new HD 1,800 5,000 4,400 Granicus Encoder New 2,790 2,790 4,068
565 565 575 600 600 600 600
560 560 560 600 600 600 600
Adobe Enterprise agreement 2,742 3,857 4,000 4,000 4,000 4,000 4,000 PD - Training TMS Annual Fees 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Civic Plus Site 13,000 13,000 15,000 -
Code Publishing Company - Muni Code 3,500 2,000 2,000 2,500 2,500 2,500 2,500 ESRI - ARC GIS concurrent users 9,345 9,345 10,000 10,000 10,000 10,000 10,000 Anti-virus, Monitoring, Cisco AMP and Umbrella 2,300 4,000 4,000 18,139 18,139 18,139 Munimetrix Maintenance Due annually on July 28 / Papervision 1,625 1,625 1,625 1,800 1,800 1,800 1,800 Comcast For City at PD MDF 2,040 2,040 2,040 5,000 5,000 5,000 5,000 Comcast Town Hall 2,040 2,040 2,040 2,200 2,040 2,040 2,040 Comcast Pipe from PD to CY 3,432 3,600 3,600 3,600
Comcast for City Hall (Internet Pipe for CH and TH) 3,273 3,273 3,273 3,600 3,600 3,600 3,600 Corp Yard T1 Monthly Contract MATEO TO CANCEL 2,160 2,160 2,160 - - - - MCN - Fortbragg.com registration 240 240 240 240 240 240 240 Beacon Read Center support (Water billing software) Paid in May 6,860 6,860 6,860 6,860 CLIPs Annual Maintenance-PD 774 774 774 800 800 800 800 Dude Solutions (DBA: Brightly) Maint Software 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Next Request 4,725 4,750 4,775 4,850 4,850 4,850 4,850
SSL Certificate - Go Daddy - 600 200 600 600 600 600
Zoom 350 660 660 660 660 350
Windows 365-Emails 10,000 9,600 10,000 10,000 10,000
Archive Social -NEW - City Clerk 5,988 5,988 5,988 5,988 5,988 Druva - Backup System - Cloud back ups 8,000 8,000 8,000 8,000 8,000 Net-File FPPC Filing - City Clerk 2,900 2,900 2,900
Network Security Daka Design 50,000 - - -
Kiosk - Connected sign 700 700 700 700 700
Firewall Licensing & VPN 5,946 2,175 2,690 7,190 2,750
Cisco SmartNet Maintenance Contract & VPN -Firewalls 203 607 607 880 1,100 1,200 1,300 DUO Multifactor Authentication 2,412 2,412 2,412 2,412 2,412 Implement either Cloud-based or On-Premise Logs retention 11,000 11,000 11,000 11,000 Cisco LAN Switches Licensing and SmartNet (Maintenance) 14,000 16,800 14,000 16,800 Licensing for proposed new Wireless Access Points Internal Network- inc. security integration 14,173 14,173 Docusign 300 300 300 300 300
Nor-Cal Telephone Repair Service 4,000 4,000 4,000 4,000 New Telephone System Licensing & Maintenance 50,000 50,000 50,000 50,000 Sub-Total - Software/Hardware Support Maintenance $ 103,804 $ 144,878 $ 436,543 $ 274,795 $ 275,901 $ 293,462 $ 287,646 521-4394-0381
Small Tools & Equipment
Miscellaneous Small Tools - Cables, batteries, tools, ect.) 3,000 2,600 3,000 3,500 3,500 3,500 3,500 Sub-Total - Equipment Repair $ 3,000 $ 2,600 $ 3,000 $ 3,500 $ 3,500 $ 3,500 $ 3,500 521-4394-0351
Equipment repair
UPS Batteries 3,000 2,000 200 500 500 500
Network Cabling 350 1,500 1,500 1,500 1,500 1,500
Charging cables and bricks 200 200 200 200 200 200
Video Cards 'Boards Cameras 1,000 2,200 3,000 3,000 1,200 Sub-Total - Equipment Repair $ 3,200 $ 350 $ 4,700 $ 4,100 $ 5,200 $ 5,200 $ 3,400 Information Technology Maintenance & Repair Internal Service Fund Detail Schedule Anywhere - PD Maintenance
APBnet-TRAK-CriticalReach-Crime Bulletin Software - PD
ISF – INFORMATION TECHNOLOGY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 19-20
Current
Budget
FY 20-21
Budget
FY 21-22
Adopted
Budget
FY 22-23
Proposed
Budget
FY 23-24
Projected
Budget
FY 24-25
Projected
Budget
FY 25-26
Projected
Budget
521-4394-0382
Hardware - upgrades/infrastructure improvements
User WorkStation Replacement 11 units @900 each 12,000 15,000 15,000 16,000 16,000 16,000 Managers Laptop and dock 6,000 - 1,500 1,500 1,500 1,500 Shared Laptops 2 units - 2,000 2,000 2,000
IT Department Workstations/laptops - - - - 1,000
User Monitor Replacements 800 - 3,000 3,000 3,000 3,000 Plotters/Printers Reimbursed by Grant for FY22 700 - 2,000 2,000 2,000 2,000 iPads for Council/Planning Commission 800 3,800 1,500 1,230 1,230 1,230 Granicus Encoder New 2,790 2,790 4,068
HD Encoder Cables - - 600 500 500
WFB Check Scanner - - - 900 900 900
55 Inch Monitor for WWTF SCADA - 1,200
Security Cameras - BBP - 12,000 6,000 6,000 6,000
Laptops for Toughbook replacement 5,000 5,000
SCADA Computer with Video Cards - - - 3,000 3,000 3,000 Security Camera Monitoring for PD 500 - 6,000 3,000 3,000 3,000 Public Use Kiosk PC - Connected Signs License Fee 800 2,000 Wireless Access Points Internal Network 400 2,000 23,000 - - 3,000 Mixing board Town Hall - 1,500 - - - -
Microphone Equipment 750 2,000 - 2,000 -
Environmental Controls and Racking 300 300 500 300 300 300 Email Server Dell R730 Hyper V - 15,000 15,000 15,000
UPS for PD - Replace 1 in 22/23 3,000 3,000
Replace all EOL LAN switches with New or Refurbished current models 15,000 16,500 Replacement and new Firewalsl 2,000 -
New Backup Hardrives 500 1,500 1,500 1,500 1,500 1,500
Digital Camera for PW -
PD - UPD Connection 850 3,000 3,000 3,000 3,000 3,000
New phone handsets/hands free 200 500 500
IT Management -Daka Design 25,000
Phone System 15,000
Sub-Total - Hardware $ 3,050 $ 24,340 $ 79,390 $ 108,068 $ 62,030 $ 62,130 $ 69,930 521-4394-0383
Software - upgrades/infrastructure improvements
Software
Additional AV Licenses 10 @ 25 100 - - - - -
Windows Server Software 2022 3,000 1,000 - -
Windows 11 Pro OS 4,840 1,000
NovaStor Backup Client 1,200 1,200 - 1,200
Windows 10 Enterprise transferable $$$ each for 100
Daka Design: Network Security 25,000 - - -
Office 2019 Standard 80 @ 239 - 1,800 1,800
Sub Total Software $ 4,840 $ 1,300 $ 31,000 $ 2,000 $ - $ - $ 3,000 521-4394-0366
Training and Conferences
Training Budget
Storm Wind Distance Learning Server 2012 2,500 2,500 -
Training/Travel 2,500 3,000 2,000 2,000 2,000 2,000
MISAC Fee 160 160 - -
Experts Exchange 192 192 -
Sub Total Training and Conferences $ 5,352 $ 5,852 $ - $ 2,000 $ 2,000 $ 2,000 $ 2,000 521-4390-0741
Public Wi-Fi Upgrades and Maintenace
13DB Antenna 300 -
Wireless station 200 1,000 1,000 1,000 1,000
Cables and other hardware 50 50 -
Equipment repair 300 300 300 300 300 300
Mesh Radio 250 250 -
Sub Total Public WiFi $ 600 $ 500 $ 600 $ 1,300 $ 1,300 $ 1,300 $ 1,300 No Acct Number
Information Technology Paid by other accounts
Treatment SCADA Systems software update to 64bit 510 510 510 510 DownHome Loan Manager (CDBG Funds) 595 595 2,000 1,500 1,200 1,200 595 Water Treatment Ipad Covers 426 426 426
Public Works Phone Covers 100 80 80 80
PD Smart Phone Covers 300 260 260 260
Part Time AV Tech PEG Work (see Payroll) 25,500 26,000 26,500 26,500 25,291 25,291 25,291 Half of CLIPS CAD (Ukiah PD) 774 774 774 774 774 774 774 Live Scan Machine for Public/Registrant (County RAN Board) 7,000 7,500 Conference Call Bridge 336 336 336 336 336 336 336
PD Cogent - Criminal (booking) LiveScan Machine
Other IT items (Not Calculated to IT Budget) $ 27,205 $ 28,105 $ 36,610 $ 37,120 $ 28,877 $ 28,877 $ 28,272 Total Information Technology $ 123,846 $ 179,820 $ 555,233 $ 395,763 $ 349,931 $ 367,592 $ 370,776 110-4390-0623
PEG
Franklin Studio Wi-Fi 1800 1800 1800 1,800 1,800 1,800 1,800 TH Camera Replacement 300 2000 2700 2,700 2,700 2,700 2,700 Small Circuit Replacement 500 750 500 500 750 750 750
Sub Total Public WiFi $ 2,600 $ 4,550 $ 5,000 $ 5,000 $ 5,250 $ 5,250 $ 5,250 Hardware

ISF- FLEET & EQUIPMENT SERVICES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

The Fleet & Equipment Services Internal Service Fund is responsible for acquisition, maintenance and repair of the City’s fleet vehicles and equipment. Services include scheduled preventive maintenance, welding and fabrication, diagnostic and emissions testing and inventory functions. The City’s Mechanic performs these services.

DEPARTMENTAL DESCRIPTION
Fleet & Equipment Services is responsible for ensuring functional, reliable and economical vehicles and equipment necessary for the conduct of City operations; providing vehicle and equipment specifications for bidding purposes, assisting with vehicle and equipment auctions, and preparing and administering the annual fleet budget. In addition, Fleet & Equipment Services coordinates the following external services:
paint and body repair, engine and transmission repair/rebuild, heavy duty suspension service, air conditioning service, and glass replacement.

STRATEGIC GOALS AND OBJECTIVES
• Provide necessary maintenance and repair to City’s fleet vehicles and equipment, including electrical repairs, engine tune-up, tire replacements, brake replacements and adjustments and other general maintenance work.
• Account for and track all costs and assist Finance Department with preparation of year-end cost allocations.
• Provide recommendations to reduce vehicle miles traveled, fleet vehicle emissions, use of petroleum-based fuels, including the purchase of alternative fuel vehicles and hybrids whenever possible.
• Provide regular inspection and maintenance of the City’s fleet and equipment. City staff maintained 29 public work vehicles, 21 police vehicles, two city hall vehicles and six trailers. Vehicles include

DIRECTOR OF PUBLIC WORKS
Operations Supervisor
Mechanic

FLEET & EQUIPMENT SERVICES

INTERNAL SERVICE FUND

ISF- FLEET & EQUIPMENT SERVICES
City of Fort Bragg ~ FY 2022/23 Proposed Budget
forklifts, backhoes, a dump truck, mobile generators, and a street sweeper. Small equipment is also included in the maintenance program such as small and large generators, mobile pumps, mowers and 30 small engines on equipment to name a few.

BUDGET OVERVIEW
The FY 2022/23 Proposed Budget for the Fleet & Equipment Services is $549k, a decrease of $202k or 27 percent, compared to the FY 2021/22 projected year end. The decrease is attributable largely to the decline in vehicles purchased compared to last FY. According to the Fleet long term plan, year to year swings in expenditures are to be expected. In FY 2015/16 a three-year plan was developed which informed the annual funding requirement. In FY 2018/19, the long-term plan was increased to 10 years to provide better long term financial planning.

Pursuant to the City’s Fund Balance and Reserve Policy, the unrestricted fund balance in Fleet & Equipment is intended to help pre-fund large purchases and repairs and avoid big annual swings in funding needs. In FY 2021/22, the fund balance will decrease and is estimated to end the year at $23k. Staff is actively pursuing USDA grant funds to pay up to 55 percent of the fleet purchases similar to the Vac Truck purchased last fiscal year.

ISF- FLEET & EQUIPMENT SERVICES
City of Fort Bragg ~ FY 2022/23 Proposed Budget

FLEET & EQUIPMENT SERVICES DEPARTMENTAL BUDGET SUMMARY
FUND 522
DEPARTMENT: 4550
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expenditure:

Personnel Services $ 144,542 $ 137,689 $ 232,153 $ 125,721 -46% Non-Personnel Services 204,843 516,300 519,200 423,300 -18% Total Departmental Expenditure 349,385 653,989 751,353 549,021 -27% Revenue:

Misc Revenues - - - - -
Total Departmental Revenue - - - - -
Net Expenditure (349,385) (653,989) (751,353) 549,021 -173% Cost Allocation
Revenue - Personnel Allocations (255,422) (384,676) (384,676) (409,513) 6% Net Cost Allocation (255,422) (384,676) (384,676) (409,513) 6% Net Expenditure $ (93,963) $ (269,313) $ (366,677) $ 139,508 -138% BUDGET DETAIL:

Fund #522
Department: 4550
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 67,354 $ 65,851 $ 69,850 $ 67,850 -3% 0200 Employee Benefits $ 66,952 $ 59,959 $ 64,272 $ 45,991 -28% 0801 Salary/Benefit Allocation 10,236 11,879 98,031 11,879 -88% Personnel Services 144,542 137,689 232,153 125,721 -46% 0319 Professional Services 2,619 2,000 2,000 2,000 0%
0351 Equipment Repair & Maint 8,145 6,000 6,000 6,000 0% 0352 Vehicle Repair & Maint 35,502 35,000 38,000 32,000 -16% 0366 Travel/Training Reimbursement - 500 500 500 0%
0375 General Supplies 1,375 1,200 1,200 1,200 0%
0381 Small Tools & Equipment 531 600 500 600 20%
0382 Fuel & Lubricants 62,449 83,000 83,000 90,000 8%
0742 Vehicles 0 388,000 388,000 291,000 -25%
Non-Personnel Services 204,843 516,300 519,200 423,300 -18% Total Fleet Services $ 349,385 $ 653,989 $ 751,353 $ 549,021 -27%

ISF- FLEET & EQUIPMENT SERVICES
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Unit No. Make Yr. Model Hours/Miles FY 21/22
FY 22/23
Proposed
FY 23/24
Projected
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
FY 29/30
Projected
FY 30/31
Projected
FY 31/32
Projected
New New 2021 Generator $85,000
New New 225,000$
WWT31 NISSAN 2007 FRONTIER 64,414 $37,000
48 FORD 2008 Ranger 80,830 37,000 $
WT1 Dodge 2005 1500 Q. CAB 60,618 $30,000
PW8 JOHNDE 1985 BACKHOE 5,949 $140,000
PW16 FORD 2006 F-150 X-TRA 73,402 $30,000
PW46 STERLING 2020 Vactor 2,576
PW1 CHEV. 2000 3500 Flatbed 44,143 $90,000
CHE121 FORD 2006 ESCAPE 59,407 $38,000
PW5 FORD 2006 F-250 SERV. 81,415 $60,000
$225,000 $127,000 $97,000 $255,000 $30,000 $38,000
PD745 FORD 2020 Ford Van 1,135 $70,000
PD735 FORD 2005 CROWN VIC 89,424 $56,000 $60,000
PD747 FORD 2009 ESCAPE 127,041 $36,000 $45,000
PD744 FORD 2008 RANGER (hybrid) 55,563 $44,000
PD1302 FORD 2011 CROWN VIC 93,103 $60,000
PD1301-K9 FORD 2011 CROWN VIC 74,021 $60,000
PD1403 FORD 2014 INTERCEPTOR 81,966 $61,000
PD501 FORD 2015 INTERCEPTOR 60,435 $61,000
PD500 FORD 2015 INTERCEPTOR 65,201 $63,000
PD509 FORD 2015 TAURUS 109,956 $55,000 $60,000
PD503 FORD 2015 INTERCEPTOR 49,377 $63,000
PD510 FORD 2015 TAURUS 26,398 $44,000PD502 FORD 2015 INTERCEPTOR 35,072 $60,000 PD507 FORD 2016 INTERCEPTOR 36,271 $60,000
PD508 FORD 2016 INTERCEPTOR 27,193 $60,000
PD513 FORD 2018 INTERCEPTOR 13,826 $62,000
Police Sub-Total $147,000 $164,000 $122,000 $63,000 $107,000 $120,000 $60,000 $62,000 $0 $0 $235,000 $372,000 $291,000 $219,000 $318,000 $137,000 $158,000 $60,000 $62,000 $0 $0 $235,000 Total Replacement Costs Vehicle Replacement Plan
Public Works Sub-Total
Dump Truck (10Yard)

DEBT MANAGEMENT POLICY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

INTRODUCTION
The City of Fort Bragg and the Fort Bragg Municipal Improvement District No. 1 (collectively referred to as the “City”) have adopted the following “Debt Management Policy” which is intended to guide decisions related to debt issued by the City. Debt issuance should be evaluated on a case-by-case basis as well as within the context of the City’s overall capital structure and policy objectives. Adherence to the Debt Management Policy is necessary to ensure that the City maintains a sound debt position and that it protects the credit quality of its debt obligations.

GOALS AND OBJECTIVES
The Debt Management Policy formally establishes parameters for issuing debt and managing a debt portfolio which recognizes the City’s specific capital improvement needs, ability to repay financial obligations, and legal, economic, financial and capital market conditions. Specifically, the Debt Management Policy is intended to assist the City in the following:
• Promoting sound financial management through accurate and timely information on financial conditions,
• Evaluating critical debt issuance options,
• Protecting and enhancing the City's credit rating.

The policies outlined in the Debt Management Policy are a tool to help ensure that adequate financial resources are available to support the City’s long-term capital needs.

PRINCIPLES OF DEBT MANAGEMENT AND DEBT ISSUANCE
Factors to be considered when evaluating issuance or refunding of debt will include:
• Intergenerational equity,
• Compliance with the City’s reserve policies,
• Cost of on-going maintenance of new projects,
• Forgone interest earnings from the use of cash reserves or investments, • Debt service requirements and affordability.
• The City will manage its debt to ensure high credit quality, access to capital markets, and financial flexibility.
• The City will seek to fund a portion of its overall capital program from current resources (pay-asyou-go) and reserves, depending upon the specific projects, annual budgetary constraints and availability and rate of investment earnings.
• The City will consider the use of debt in those cases where public policy, equity, and economic efficiency favor debt over cash (pay-as-you-go) financing. • The City will not construct or acquire a facility or capital improvement if it is unable to adequately

CITY OF FORT BRAGG

DEBT MANAGEMENT POLICY

DEBT MANAGEMENT POLICY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
provide for the subsequent annual operation and maintenance costs of the facility. • The City will not fund working capital (general fund) reserves, or operating and maintenance costs through the issuance of debt.
• The City will utilize a multi-year capital financing plan to determine the affordability of debt. The capital financing plan will provide a multi-year forecast which shall include, but not be limited to; description of sources of funds; availability of current revenues, timing of capital projects, and debt service requirements.

STANDARDS FOR USE OF DEBT FINANCING
City Council Consideration. The City Council shall endeavor to receive sufficient information about debt financing to understand the short- and long-term ramifications of each debt issuance. The Council shall meet as necessary with the City Manager, Finance Director and other appropriate advisors, if deemed necessary, for the purpose of reviewing and making a final determination related to each debt issuance.

Long-Term Capital Projects. The City Council will consider the use of debt to finance long-term capital projects only when paying for the facilities or equipment over their useful life and concurrent with the benefits derived from the use of such facilities, and when project revenues or specific resources will be sufficient to service the long-term debt. The final maturity of the bonds shall not exceed the expected useful life of each project.

Special Circumstances for Debt Issuance. Debt may be used in special circumstances for projects other than long-term capital projects (as an example, for pension obligations) only after careful policy evaluation by the City.

Debt Financing Mechanisms. The City will seek to utilize the most cost advantageous financing alternative available, taking into consideration policy objectives. The Finance Director shall evaluate the use of all financial alternatives available, including, but not limited to long-term debt, pay-as-yougo, joint financing, reserve fund releases, lease-purchase, special districts, special assessments, state and federal aid, tax-exempt leasing, public/private partnerships, and State revolving loan programs.

The recommendation of the Finance Director shall be submitted to the City Manager and a staff recommendation shall be submitted to the Council.

Methods of Issuance. The City will determine, on a case-by-case basis, whether to sell its bonds competitively or through negotiation.

Credit Quality. All City debt management activities will be conducted to receive the highest credit ratings possible, consistent with the City’s financing objectives and, at a minimum, to maintain current credit ratings assigned to the City's debt by the major credit rating agencies.

Debt Capacity. The City will carefully monitor its level of general purpose debt. Because the City’s general purpose debt capacity is limited, it is important that the City only use general purpose debt financing for high-priority projects where other financing methods cannot be used. In evaluating debt capacity, general purpose annual debt service payments shall not exceed 10% of General Fund revenues. The City’s Enterprise Fund debt capacity will be evaluated as an integral part of the City’s rate review and setting process. The City will set Enterprise Fund service rates at levels needed to fully cover debt service, operations, maintenance, administration and capital improvement requirements.

FINANCING CRITERIA
When the City determines that the use of debt is appropriate, the following criteria will be utilized to evaluate the type of debt to be issued:

DEBT MANAGEMENT POLICY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Pay-As-You-Go Financing. The City will consider Pay-As-You-Go Financing if current revenues and adequate fund balances are available or project phasing can be accomplished. Other factors to be considered include: current debt levels, the effect of additional debt on the City’s credit rating, anticipated difficulties in marketing debt, and stability of market conditions.

Long-Term Debt. The City may issue long-term debt, when required capital improvements cannot be financed from current revenues or reserves without having an impact on the City’s financial stability and/or operating flexibility. Long-term borrowing should not be used to finance current operations or normal maintenance and repairs.

Variable Rate Debt. To maintain a predictable debt service burden and rate structure, the City may give preference to debt that carries a fixed interest rate. The City, however, may consider variable rate debt, especially in periods of high interest rates, or when the revenue stream for repayment is variable.

Interfund or Short-Term Debt. Interfund or short-term borrowing may be utilized for temporary funding of operational cash flow deficits or anticipated revenues. Short-term debt may be used when it provides an interest rate advantage or as interim financing until market conditions are more favorable.

TERMS AND CONDITIONS OF BONDS
The City shall establish all terms and conditions relating to the issuance of bonds, and will control, manage, and invest all bond proceeds. Unless otherwise authorized by the City Council, the following shall serve as bond requirements.

Maturity/Term. All capital improvements financed through the issuance of debt will be financed for a period not to exceed the useful life of the improvements, but in no event will the term exceed 40 years.

Debt Service Structure. Debt issuance shall be planned to achieve relatively rapid repayment of debt while still matching debt service to the useful life of facilities. The City shall avoid the use of bullet or balloon maturities except in those instances where these maturities serve to meet aggregate debt service structuring objectives. Debt service should be structured primarily on an aggregate level annual basis, as opposed to on an escalating or deferred basis.

Coupon Structure. Debt may include par, discount, premium and capital appreciation bonds. Discount, premium, and capital appreciation bonds must be demonstrated to be advantageous relative to par bond structures.

Call Provisions. The City’s securities should include an optional call feature, which typically is no later than 10 years from the date of delivery of the bonds. The City will avoid the sale of non-callable bonds absent careful evaluation by the City and its financial advisor with respect to the value of the call option.

Bond Insurance / Credit Enhancement. The City shall have the authority to purchase bond insurance or credit enhancement when such purchase is deemed prudent and advantageous. The determination shall be based on the net present value debt service cost comparison of insured/enhanced bonds versus uninsured/unenhanced bonds.

Debt Service Reserves. A reserve fund shall be funded from the proceeds of each series of bonds, subject to federal tax regulations and in accordance with the requirements of credit enhancement providers, rating agencies, and investor demands. The reserve fund shall be treated as a Restricted Reserve as defined in the City Reserve Policy. The City shall have the authority to purchase reserve equivalents (i.e., the use of a reserve fund surety) when such purchase is deemed prudent and advantageous. Such equivalents shall be evaluated in comparison to cash funding of reserves on a net present value basis, taking into account the impact of investments and arbitrage rebate considerations.

DEBT MANAGEMENT POLICY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

REFINANCING OUTSTANDING DEBT
The Finance Director shall analyze outstanding bond issues for refunding opportunities that may be presented by underwriting firms. The City will consider the following issues when analyzing possible refunding opportunities:

Debt Service Savings. The City will refund debt when it is in the best financial interest of the City to do so. The City shall evaluate each refunding opportunity based on net present value savings, which shall take into account foregone interest earnings, all costs related to the refinancing, and arbitrage implications (i.e., net-to-net savings).

Restructuring. The City will only consider restructuring when it can be demonstrated that a proposed structure will assist the City in meeting at least one of several goals, including: meeting unanticipated revenue expectations, achieving cost savings, mitigating irregular debt service payments, releasing reserve funds or removing restrictive bond covenants.

Term of Refunding Issues. The City will refund bonds within the term of the originally issued debt.

However, the City may consider maturity extension when necessary to achieve a desired outcome, provided that such extension is legally permissible. The City may also consider shortening the term of the originally issued debt to realize greater savings. The remaining useful life of the financed facility and the concept of intergenerational equity should guide this decision.

Escrow Structuring. The City shall utilize the least costly securities available in structuring refunding escrows.

Arbitrage. The City shall take all necessary steps to optimize escrows and to minimize negative arbitrage in a refunding escrow, including evaluating the risks and benefits of an economic versus legal defeasance.

MARKET RELATIONSHIPS
Rating Agencies and Investors. The Finance Director shall be responsible for maintaining the City’s relationships with rating agencies (i.e., Moody’s Investors Service, Standard & Poor’s and Fitch).

Continuing Disclosure. The City shall remain in compliance with Securities Exchange Commission (SEC) Rule 15c2-12 by filing its annual financial statements and other financial and operating data for the benefit of its bondholders within the deadlines imposed by Rule 15c-2-12. The City shall provide this information to the Municipal Securities Rulemaking Council (MSRB) Electronic Municipal Market Access Website (www.emma.msrb.org). The City will make this information available on its website.

Record Keeping/Reporting. The City shall maintain a repository for all debt-related records, which includes: all official statements, ordinances, indentures, trustee reports, leases, etc. for all City debt in electronic format. To the extent that official transcripts incorporate these documents, possession of a transcript will suffice.

Arbitrage Rebate. The City will account for all interest earnings in debt-related funds. The use of bond proceeds and their investments shall be monitored to ensure compliance with all debt covenants, legal requirements, and IRS arbitrage regulations. The City will endeavor to make investments that maximize the amount of the interest earnings it can retain (under IRS regulations) for all bond funds.

The Finance Director shall ensure that proceeds and investments are tracked in a manner which facilitates accurate calculation and timely payment of rebates, if applicable.

DEBT MANAGEMENT POLICY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PROCUREMENT AND SELECTION OF FINANCING TEAM
The City shall procure professional services as required to execute financing transactions and to provide advice on non-transaction related work. The City shall establish selection criteria for selecting its financing team members, which include financial advisor, bond counsel, and underwriter. The criteria may include, but are not limited to:
• Professional excellence,
• Demonstrated competence,
• Specialized experience performing similar services for California agencies, • Education and experience of key personnel to be assigned, • Geographic proximity,
• Staff capability,
• Ability to meet schedules,
• Nature and quality of similar completed work of the firm or individual, • Reliability and continuity of the firm or individual.

Note: Definitions to financial terms used in this policy are found in the Glossary section of the budget.

DEBT SERVICE DETAILS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

CITY OF FORT BRAGG

INTERFUND LOAN POLICY
The purpose of the City’s Interfund Loan Policy is to specify the principles under which interfund loans may be considered and approved. The policy specifies the terms and conditions, it summarizes the due diligence necessary prior to the loan and provides guidance as to the repayment and accounting for these loans. This policy was designed to avoid the problems in interfund loans experienced in the past, facilitate future loans in a structured manner and set clear accounting rules for these loans. The principles of City’s Interfund Loan Policy are as follows:
a. The City Council shall act by resolution to approve any proposed interfund loan. All interfund loans must be documented by formal agreements that specify the terms and conditions. The loan amount shall be approved at the amount minimally necessary to ensure the completion of the project for which the funding is required.
b. All interfund loans shall be interest bearing and the amount of interest to be paid on the loan must be at least equal to the investment earnings the fund making the loan would have received had the loan not occurred.
c. The term of an interfund loan shall be established by the City Council and typically shall not exceed five years.
d. All interfund loan proposals require a feasibility analysis demonstrating that:
• The borrowing fund has the capacity to repay the debt; • The lending fund has the capacity to lend the funds, beyond its own operating and capital needs; and
• The loan does not violate any debt covenants or other provisions of the borrowing and lending funds.
e. As part of the due diligence, each loan proposal must demonstrate that the loan can be repaid. It is important to avoid masking an operating deficiency in one fund with an interfund loan from another fund. This is the centerpiece of the policy, which seeks to avoid loans that fail the fundamental test of performance (repayment) under the contract. • If a feasibility analysis does not show that the loan can be safely repaid, the appropriate recommendation may be a revenue enhancement or another correction of the underlying reason for the funding deficiency. An alternative financing recommendation may be a fund balance donation. This requirement is also intended to identify conflicts with specific restrictions or requirements pertaining to certain funds. Such conflicts may arise from applicable debt covenants, fiduciary requirements on funds held by the City or legal hurdles that the funding needs to overcome.
f. There is to be no prepayment penalty, the interest is to be paid quarterly, and principle payments are subject to the feasibility analysis cash projections. g. The interest expense from interfund loans is to be treated as user fund expense, while the interest income is to be treated as interest revenue to the loaning fund.

DEBT SERVICE DETAILS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
GENERAL FUND: 2021 LEASE REVENUE BONDS
$11,440,000
City of Fort Bragg Joint Powers Authority
2014 Water Revenue Refunding Bond
110-4390-0611
Date: November 1, 2021
Interest: Semiannual each November and May, commencing November 1, 2022. The interest rate is 3.5% per annum.

Maturity: May 1, 2044
Rating: A+
Purpose: To refinance some or all of the unfunded accrued actuarial liability (UAL) owed by the City to the California Public Employees’ Retirement System (CALPERS) Security: The Bond is secured by leasing the City Hall Building and the City’s Police Department Building.

Fiscal Year Principal Interest Total
FY 22/23 $ 85,000 $ 514,703 $ 599,703
FY 23/24 195,000 61,727 $ 256,727
FY 24/25 265,000 59,630 $ 324,630
FY 25/26 335,000 57,435 $ 392,435
FY 26/27 420,000 55,139 $ 475,139
FY 27/28 490,000 52,737 $ 542,737
FY 28/29 500,000 50,238 $ 550,238
FY 29/30 520,000 47,670 $ 567,670
FY 30/31 525,000 44,982 $ 569,982
FY 31/32 525,000 42,170 $ 567,170
FY 32/33 540,000 39,228 $ 579,228
FY 33/34 555,000 36,150 $ 591,150
FY 34/35 560,000 32,929 $ 592,929
FY 35-44 5,925,000 29,560 $ 5,954,560
$ 11,440,000 $ 1,124,298 $ 12,564,298
*Imputed interest is implied interest; no
interest is charged by the Department of Water Resources Principal Interest Total Fees Total Payment
FY 2022/23 Payments $ 85,000 $ 514,703 $ 599,703 $ 599,703

DEBT SERVICE DETAILS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
WATER ENTERPRISE: DEPT OF WATER RESOURCE 0% LOAN
$1,382,784
State of California Department of Water Resources
610-4612
Date: January 1, 2007
Interest: Semiannual each July and January, commencing July 1, 2007. This is an interest free loan.

Maturity: January 1, 2027
Rating: Standard and & Poor’s Not rated.

Purpose: To finance the construction of a project to meet safe drinking water standards.

Security: The loan is secured by revenues from the Water Enterprise Fund.

Fiscal Agent: US Bank Corporate Trust Services
Covenants*: A reserve fund equal to two semiannual payments must be maintained with the Fiscal Agent.

Disclosures: While there are no specific reporting requirements, the Fiscal Agent does request and the City does provide Financial Statements on an annual basis.

Debt Service:

Fiscal Year Principal
Imputed
Interest* Total
FY 06-07 $ 21,745 $ 31,793 $ 53,538
FY 07-08 45,350 61,727 107,077
FY 08-09 47,447 59,630 107,077
FY 09-10 49,642 57,435 107,077
FY 10-11 51,938 55,139 107,077
FY 11-12 54,340 52,737 107,077
FY 12-13 55,540 50,238 105,778
FY 13-14 58,108 47,670 105,778
FY 14-15 60,796 44,982 105,778
FY 15-16 63,608 42,170 105,778
FY 16-17 66,550 39,228 105,778
FY 17-18 69,628 36,150 105,778
FY 18-19 72,849 32,929 105,778
FY 19-20 76,218 29,560 105,778
FY 20-21 79,743 26,035 105,778
FY 21-22 83,432 22,346 105,778
FY 22-23 87,291 18,487 105,778
FY 23-24 91,328 14,450 105,778
FY 24-25 95,552 10,226 105,778
FY 25-26 99,972 5,806 105,778
FY 26-27 51,707 1,182 52,889
$ 1,382,784 $ 739,920 $ 2,122,704
*Imputed interest is implied interest; no
interest is charged by the Department of Water Resources Principal Interest Total Fees Total Payment
FY 2022/23 Payments $ 425,851 $ 18,487 $ 444,338 $ 600 $ 444,938

DEBT SERVICE DETAILS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
WATER ENTERPRISE: 2014 REVENUE REFUNDING BOND
$2,962,000
City of Fort Bragg Water Enterprise
2014 Water Revenue Refunding Bond
610-4612
Date: June 5, 2014
Interest: Semiannual each April and October, commencing October 1, 2014. Interest rate is

3.060% per annum.

Maturity: October 1, 2023
Rating: Not available at this time.

Purpose: To refund the 2003 California Statewide Communities Development Authority Water (CSCDA) and Wastewater Revenue Bonds. The CSCDA bonds were issued to refund the 1993 Water System Certificates of Participation which were issued to fund improvements to the City’s water system.

Security: The Bond is secured by revenues from the Water Enterprise Fund.

Required
Coverage Ratio: 1.20
Disclosures: Upon request the City shall provide (i) Audited Financial Statements with (240) days of the end of the Fiscal Year, (ii) annual certification that the City has satisfied the 1.20x coverage ratio, (iii) the approved annual budget of the City within (30) days of the end of the Fiscal Year and (iv) any other financial or operational reports as may reasonably requested and as soon as available.

Fiscal Year Principal Interest Total
FY 14-15 $ 276,000 $ 70,301 $ 346,301
FY 15-16 268,000 78,091 346,091
FY 16-17 276,000 69,768 345,768
FY 17-18 284,000 61,200 345,200
FY 18-19 290,000 52,418 342,418
FY 19-20 300,000 43,391 343,391
FY 20-21 304,000 34,150 338,150
FY 21-22 312,000 24,725 336,725
FY 22-23 320,000 15,055 335,055
FY 23-24 332,000 5,080 337,080
Total $ 2,962,000 $ 454,179 $ 3,416,179
Principal Interest Total Fees Total Payment
FY 2022/23 Payments $ 320,000 $ 15,055 $ 335,055 $ 3,000 $ 338,055

DEBT SERVICE DETAILS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
WASTEWATER ENTERPRISE: TREATMENT FACILITY $5,000,000
2018 Wastewater Certificates of Participation
717-4712
Date: October, 2018
Interest: Semiannual each October and April, commencing October 1, 1998. Interest rate is 2.00% per annum.

Maturity: 2058
Rating: TBD
Purpose: To acquire and construct the District’s Wastewater Treatment Facility.

Security: The Certificates of Participation are secured by an Installment Sale agreement between the City and the City of Fort Bragg Joint Powers Financing Authority with the JPFA as Seller and the City as Purchaser. The obligation is secured and payable from net revenues of the Wastewater Enterprise.

Fiscal Agent: US Bank Corporate Trust Services
Disclosures: TBD
Fiscal Year Principal Interest Total
FY 18-19 $ - $ 76,111 $ 76,111
FY 19-20 86,000 99,140 185,140
FY 20-21 87,000 97,410 184,410
FY 21-22 89,000 95,650 184,650
FY 22-23 91,000 93,850 184,850
FY 23-24 93,000 92,010 185,010
FY 24-25 95,000 90,130 185,130
FY 25-26 97,000 88,210 185,210
FY 26-27 99,000 86,250 185,250
FY 27-28 101,000 84,250 185,250
FY 28-29 103,000 82,210 185,210
FY 29-30 105,000 80,130 185,130
FY 30-31 107,000 78,010 185,010
FY 31-32 109,000 75,850 184,850
FY 32-33 111,000 73,650 184,650
FY 33-34 113,000 71,410 184,410
FY 34-35 115,000 69,130 184,130
FY 35-36 118,000 66,800 184,800
FY 36-37 120,000 64,420 184,420
FY 37-38 123,000 61,990 184,990
FY 38-39 3,038,000 647,500 3,685,500
$ 5,000,000 $ 2,274,111 $ 7,274,111
Principal Interest Total Fees Total Payment
FY 2022/23 Payments $ 91,000 $ 93,850 $ 184,850 $ - $ 184,850 2018 CERTIFICATE OF PARTICIPATION
Wastewater System Improvements Project

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The Water Enterprise is responsible for ensuring the provision of safe, clean water at adequate pressures and volumes to serve residents, businesses and public facilities in the City of Fort Bragg.

SUMMARY OF SERVICES
The services provided by the Water Department include raw water collection, water treatment, and distribution of treated water for domestic and commercial use for Fort Bragg. The Water Enterprise meets and reports water treatment levels of regulatory agencies, provides for water conservation, provides for maintenance and construction of capital improvements, reviews new development projects, assists with public education, and engages in data collection and analysis.

STRATEGIC GOALS AND OBJECTIVES
• Ensure an adequate supply of high quality drinking water to meet existing and future customer needs.
• Manage the City’s water sources in a manner that is protective of both environmental and human health.
• Improve the reliability of the City’s water supply, treatment and distribution system through ongoing maintenance and replacement of aging infrastructure. • Seek grant funding and other low-cost financing for capital projects. • Operate the City’s water system in an efficient and cost-effective manner and establish fair and reasonable utility rates.

FY 2021/22 TOP ACCOMPLISHMENTS
• Installed a Reverse Osmosis filtration unit
• Finished Engineering of the replacement raw water lines • Operated through the worst drought since 1977
• Assisted with the transfer of water from the City of Ukiah to the Mendocino area. • Installed 160 feet of new water main
FY 2022/23 TOP PRIORITIES
• Start Construction on the Water Plant rehabilitation
• Continue to look for new water sources
• Develop a production well at the CV Starr center property • Start construction on the Raw Water Line Replacement Project

FORT BRAGG WATER DEPARTMENT

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE/WORKLOAD MEASURES
INDICATORS FY18 FY19 FY20
WATER
Avg. Number of Customer Accounts billed-Monthly 2,834 2,834 2,834 Water annual demand in thousand gallons 1,976 2,102 1,895 Available supply of water in thousand gallons 21,300 21,300 20,800 Total Customer Service Calls 1,488 1,193 1253
Meter Installs/removals/change outs 14 24 16
Meter Repairs 34 5 1
Leak Investigations 34 29 11
Service Profiles 31 63 65
Turn on/offs 878 891 669
Manual Reads 444 126 126
Misc. 53 55 55

PERSONNEL SERVICES
The Water Enterprise Proposed Budget for FY 2022/23 is $2.8M or a 25 percent increase over the estimated year end FY 2021/22. The increase is attributed to personnel costs increases including COLA’s and step increases.

NON-PERSONNEL SERVICES
Water Enterprise Fund Materials and Services are budgeted to increase by $513k or 58 percent. The water enterprise budget includes an additional $350k Debt payment to pay the 2007 Department of Water Resources Loan off early. The debt matures on January 1, 2027. Paying the debt off early would save $53k in interest payments and put the enterprise in a better position to seek financing options for the larger capital projects planned in the CIP.

Charges for Services Revenues are estimated to decrease by 5 percent. At this same time last year, the City was preparing to declare a water emergency in response to the lack of adequate rainfall during the previous winter and drought-like conditions with water levels at historic lows. The City has continued to closely monitor the amount of rainfall received and forecasted for the coming months. The unexpected rain towards the end of April helped a lot, however, if adequate rainfall isn't received, this will place financial demand on the Enterprise funds revenues as conservative water measures will be in place, causing a reduction in consumption.

Additionally, the two Enterprise Funds waived the last round of scheduled approved rate increases in FY 2020/21, which would have increased Water rates by 5% and Wastewater rates by 3%. The City is currently finalizing the rate study to evaluate the enterprise rates, ensuring the fund's user fees are sufficient to address ongoing operations, upgrades to the Water/Sewer infrastructure, and building up the fund reserves to ensure financial stability.

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Infrastructure rehabilitation, replacement, and upgrade requirements are necessary to maintain an aging water distribution system. The rate study results will be brought forward to the City Council in June/July 2022.

Moreover, contributed capital of $2.8 million is for the replacement of water meters which is funded by Community Development Block Grants (CDBG)
$894,986
32%
$502,231
18%
$788,072 - , 0%
28%
$612,442
FY 2022/23 EXPENDITURES BY CATEGORY
(excluding Transfers)
Salaries &
Benefits
Allocation
Other
Operating
Allocations
Machinery &
Eq
Debt Service

WATER ENTERPRISE BUDGET SUMMARY
FUND 610
DEPARTMENT: 4610, 4611 & 4612
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Salary and Benefits - 663,921 607,176 667,392 10%
Salary/Benefit Allocation 452,486.15 227,594 227,594 227,594 0% Other Operating Allocations 497,481 502,231 502,231 502,231 0% Non-Personnel Services 737,539 964,025 886,729 1,400,514 58% Total Expenditure 1,687,506 2,357,771 2,223,729 2,797,731 26% Charges for Services 3,656,802 3,135,390 3,144,126 3,002,342 -5% Use of Money & Property 66,700 67,729 40,200 69,800 74% Miscellaneous 3,465 - 64 500 685%
Total Revenue 3,726,967 3,203,119 3,184,389 3,072,642 -4%

NET EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 2,039,461 845,349 960,660 274,911 -71% Transfers In 5,752,064 1,348,169 2,820,367 1,843,630 -35% Transfers Out (4,767,246) (1,143,169) (1,805,193) (1,843,630) 2%

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #610
Department: 4610, 4611, 4612
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
% +
/-
Salaries & Wages - 663,921 613,176 667,392 9%
0801 Salary/Benefits Allocation 452,486 227,594 227,594 227,594 0% Personnel Services 452,486 891,515 840,770 894,986
0311 Legal - 10,000 5,000 20,000 300%
0312 Auditing & Accounting 9,859 9,900 9,900 10,000 1%
0313 Laboratory 13,777 13,500 10,000 15,000 50%
0319 Professional Services 46,910 100,500 88,500 97,500 10% 0320 Dues & Memberships 60 400 400 500 25%
0342 Laboratory Supplies 7,799 12,000 10,000 12,000 20% 0343 Chemicals 31,434 45,500 45,500 50,000 10%
0350 Repair & Maintenance - - - 60,000
0351 Equipment Repair & Maint 13,972 48,000 22,000 37,500 70% 0353 Building Repair & Maint 1,871 3,000 2,500 2,500 0% 0354 Laundry/Cleaning/Janitorial 1,666 1,200 1,200 2,200 83% 0360 Property Premium 17,230 24,122 31,350 40,442 29%
0362 Telephone & Communication 2,476 2,600 2,600 2,800 8% 0366 Training/Travel Reimbursement 2,318 8,000 4,500 11,000 144% 0372 Postage 11,189 10,000 10,000 5,000 -50%
0373 Licenses & Permits 9,303 10,200 18,176 10,000 -45% 0375 General Supplies 41,458 38,000 2,500 63,000 2420%
0376 Medical/Safety Supplies 1,402 1,200 1,000 1,500 50% 0381 Small Tools & Equipment 4,332 10,000 5,500 10,500 91% 0383 Utilities 117,070 120,000 120,000 144,000 20%
0387 PERS UAL additional Payment - 50,000 50,000 25,000 -50% 0499 Depreciation Expense 319,552 - - - 0%
0606 Bad Debt Sent to Collection - (8,000) - (8,000)
Materials & Services 653,680 510,122 440,626 612,442 39% 0911 Principal - 395,432 395,432 745,851 89%
0912 Interest 64,133 47,071 47,071 38,622 -18%
0913 Fees 816 3,600 3,600 3,600 0%
64,949 446,103 446,103 788,072 77%
Debt Service 64,949 446,103 446,103 788,072 77%
0741 Machinery & Equipment 18,910 7,800 - - 0%
Non-Routine Maintenance 18,910 7,800 - - 0%
Total Non-Personnel Serv 737,539 964,025 886,729 1,400,514 58% 0322 Fleet Services 38,377 58,348 58,348 58,348 0%
0396 Allocation to IT Int Serv Fund 8,319 13,465 13,465 13,465 0% 0399 Admin Costs Allocation 450,785 430,418 430,418 430,418 0% Other Operating Allocations 497,481 502,231 502,231 502,231 0% Total Water Enterprise
Before Transfers 1,687,506 3,021,691 2,842,905 2,797,731 -2% 0799 Transfer to Other Funds 4,767,246 1,143,169 1,805,193 1,843,630 2% Total Water Enterprise $ 6,454,752 $ 4,164,860 $ 4,648,098 $ 4,641,361 0%

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Water Enterprise Administration Division
Line Item Detail
FY 2022/23
Fund #610 Account Category Proposed
Department: 4610 Detail Detail Budget
Salary & Benefits
610-4610-0101 Salaries & Wages $ 405,256
610-4610-0102 Employee Benefits 262,137
Total Salary & Benefits $ 667,392
Materials & Services
610-4610-0311 Legal 20,000
610-4610-0312 Auditing & Accounting 10,000
610-4610-0319 Utility Billing Professional Services 55,000 Shut off notification $ 430
Water Conservation Campaign 25,000
Bank Fees/Lockbox 29,570
610-4610-0360 Property Insurance 40,442
610-4610-0362 Telephone & Communication 2,800
610-4610-0372 Postage 5,000
610-4610-0387 Miscellaneous - Section 115 Trust Contribution 25,000 Total Material & Services $ 158,242
Other Expenditures
610-4610-0606 Bad Debts Sent to Collection (8,000)
Total Other Expenditures $ (8,000)
Allocations
610-4610-0396 IT Internal Service Fund 13,465
610-4610-0322 Fleet Services 58,348
610-4610-0399 Admin Costs Allocation 430,418
610-4610-0801 Salary/Benefits Allocation 227,594
Total Allocations $ 729,825
Total - Water Enterprise Administration Division $ 1,547,459

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Water Enterprise Maintenance Division
Line Item Detail
FY 2022/23
Fund #610 Account Category Proposed
Department: 4611 Detail Detail Budget
Materials & Services
610-4611-0366 Training/Travel Reimbursement $ 5,000
610-4611-0375 General Supplies 60,000
610-4611-0381 Small Tools & Equipment 3,500
Total Materials & Services 68,500

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget

ENTERPRISE FUNDS - WATER DEPARTMENT
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Water Enterprise Treatment Division Cont'd
FY 2022/23
Fund #610 Account Category Proposed
Total Routine Repair and Maintenance -
Allocations
610-4612-0322 Fleet Services 58,348
Total Allocations $ 58,348
Debt Service
610-4612-0911 Principal 745,851
610-4612-0912 Interest 38,622
610-4612-0913 Fees 3,600
Total Debt Service 788,072
Transfers Out
To 615 Capital Project, Groundwater Production Wells
To 614, Non-routine maintenance 33,445
To 615, True up Operating Reserve 1,460,222
To 651, Sweep Excess Fund Balance to Ca 349,963
1,843,630
Total - Water Enterprise Treatment Division $ 3,083,750 ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The Wastewater Enterprise is operated by the Municipal Improvement District No. 1 and is responsible for ensuring the provision of a safe and effective sanitary sewer system to serve residents, businesses and public facilities in the City of Fort Bragg. It also is responsible for the operation of a wastewater treatment facility in compliance with state and federal regulations.

SUMMARY OF SERVICES
Services provided by the Wastewater Enterprise include coordinating operations, monitoring, maintenance and related activities of the wastewater treatment plant and sanitary pumping stations. The Enterprise provides primary and secondary treatment of wastewater as well as treatment and conditioning of the solids removed at the treatment facility resulting in a high-quality effluent that can be discharged to the ocean.

STRATEGIC GOALS AND OBJECTIVES
• Operate and maintain the City’s wastewater collection system and treatment facilities. • Ensure compliance with all regulatory requirements, including discharge limitations, monitoring and reporting, and safety procedures.
• Seek grant funding and other low-cost financing for capital projects. • Manage the City’s wastewater system in a cost-effective and efficient manner.

FY 2021/22 TOP ACCOMPLISHMENTS
• Modifications to old press building in preparation of drying unit, including moving the septage receiving station and reinstalling it.
• Received and placed biosolids drying unit.
• Reorganized operator workload to increase efficiency and accountability. • Mitigated sludge bulking season with minimal impact to effluent. • Very successful and positive inspection from state water board controllers. • Saving $20-40k on completing Disaster Preparedness Assessment and Action Plan report inhouse. • Improved winter biosolids handling.

FY 2022/23 TOP PRIORITIES
• Installation of an onsite sodium hypochlorite system. • Installation and startup of biosolids drying unit.
• Search for solutions to resolve collection system Fats Oils and Grease program issues. • Improve suppression tactics of microthrix filamentous bacteria for the next bulking season. • Complete full condition assessment of the collection system to identify inflow and infiltrations locations.

FORT BRAGG WASTEWATER DEPARTMENT
ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget

PERFORMANCE/WORKLOAD MEASURES
INDICATORS FY18 FY19 FY20

WASTEWATER DEPARTMENT
Customer Service calls, wastewater 33 36 52
New customer sewer lines installed 0 2 1
Sewer mains cleaned/flushed in miles 16 18 15
Sewer mains and laterals repaired in number of jobs 9 8 11 Sewer manholes inspected 374 374 363
Sewer spill responses 1 2 5

BUDGET SUMMARY
Personnel Services
The proposed Salaries/Wages/Benefits decreased by $29k or 5% primarily due to personnel costs reallocation to the Water Fund, which will be implemented this fiscal year to ensure that non-wastewater work is charged correctly to the appropriate Department. The Cost allocation is then trued up at yearend based on actuals. In prior years, the wastewater fund would budget for both water and wastewater personnel costs and make a transfer at the end of the fiscal year.

Non-Personnel Services
Wastewater Enterprise Fund Materials and Services are budgeted to decrease by approximately $235k or 18% in FY 2022/23. The $300k Bio-solids costs were incurred FY 2021/22, in which the volume of truckloads of bio-solids removal increased in during the year.

Additionally, a $25k budget has been added for a water conservation outreach campaign due to the alarming water levels the City is currently experiencing and a $25k contribution to the CALPERS UAL Payment.

For more detail on the Wastewater Enterprise see the Capital Improvement Program section.

Charges for Services Revenues are estimated to decrease by 5 percent. At this same time last year, the City was preparing to declare a water emergency in response to the lack of adequate rainfall during the previous winter and drought-like conditions with water levels at historic lows. The City has continued to closely monitor the amount of rainfall received and forecasted for the coming months. The unexpected rain towards the end of April helped a lot, however, if adequate rainfall isn't received, this will place financial demand on the Enterprise funds revenues as conservative water measures will be in place, causing a reduction in consumption.

Additionally, the two Enterprise Funds waived the last round of scheduled approved rate increases in FY 2020/21, which would have increased Water rates by 5% and Wastewater rates by 3%. The City is currently finalizing the rate study to evaluate the enterprise rates, ensuring the fund's user fees are ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
sufficient to address ongoing operations, upgrades to the Water/Sewer infrastructure, and building up the fund reserves to ensure financial stability.

Infrastructure rehabilitation, replacement, and upgrade requirements are necessary to maintain an aging water distribution system. The rate study results will be brought forward to the City Council in June/July 2022.

Municipal Improvement District #1; Wastewater Enterprise Fund 710
Department: 4710, 4711 & 4712
Appropriations & Revenue
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Salaries & Benefits $ 951,090 $ 862,824 $ 812,183 $ 783,665 -4% Salary/Benefit Allocation (264,980) (231,775) (231,775) (231,775) 0% Other Operating Allocation 754,970 790,778 790,778 790,778 0% Non-Personnel Services 785,627 1,295,637 1,278,111 1,042,540 -18% Total Appropriations 2,226,707 2,717,464 2,649,297 2,385,208 -10% Charges for Services 3,587,321 3,201,400 3,275,010 3,122,050 -5% Other Revenue 466,736 60,452 125,900 139,000 10%
Total Operating Revenue 4,054,057 3,261,852 3,400,910 3,261,050 -4%

NET EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENS 1,827,351 544,388 751,613 875,842 17% Transfers In 6,087,973 2,155,223 1,095,727 1,623,508 48% Transfers Out (5,051,446) (2,199,959) (1,095,727) (1,804,008) 65% NET CHANGE IN FUND BA$ 2,863,878 $ 499,652 $ 751,613 $ 695,342 -7% * To arrive at audited change in net position on the full accrual basis subtract depreciation expense. $2,053,689 less $816,300 (depreciation) equals $2,047,578 (as published in the FY2020/21 CAFR)
ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Municipal Improvement District #1; Wastewater Enterprise Fund #710
Department: 4710,4711,4712
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0101 Salaries & Wages $ 513,802 $ 508,151 $ 485,069 $ 482,291 -1% 0200 Employee Benefits 437,287 354,672 327,114 301,375 -8% Salaries & Benefits 951,090 862,824 812,183 783,665 -4% 3499 (264,980) (227,594) (227,594) (227,594)
0801 Salary/Benefits Allocation - (4,181) (4,181) (4,181) 0% 0801 Salary/Benefits Allocation (264,980) (231,775) (231,775) (231,775) 0% Salary/Benefits
Allocation (264,980) (231,775) (231,775) (231,775) 0%
Personnel Services 686,110 631,049 580,408 551,890 -5%
0312 Auditing & Accounting 15,274 15,300 8,925 10,000 12% 0313 Laboratory 44,947 32,500 32,500 45,000 38%
0319 Professional Services 104,330 412,006 402,006 205,000 -49% 0320 Dues & Memberships - 1,000 1,000 1,000 0%
0343 Chemicals 55,670 73,953 73,953 94,000 27%
0351 Equipment Repair & Maint 52,588 105,000 105,000 79,000 -25% 0353 Building Repair & Maint 7,170 5,000 9,000 9,000 0% 0354 Laundry/Cleaning/Janitoria 911 750 750 700 -7%
0359 Liability Deductible 9,957 - - - -
0360 Property Premium 43,075 60,305 49,798 64,240 29%
0362 Telephone & Communicati 979 930 980 1,000 2%
0366 Training/Travel Reimburse 1,077 6,500 5,500 9,500 73% 0372 Postage 1,850 - 6,000 1,000 -83%
0372 Postage 9,339 10,143 6,000 8,000 33%
0372 Postage 11,189 10,143 12,000 9,000 -25%
0375 General Supplies 28,166 14,500 14,500 16,500 14%
0376 Medical/Safety Supplies 4,066 5,000 5,449 6,500 19% 0377 Boot Expense 1,401 1,600 1,600 2,250 41%
0381 Small Tools & Equipment 10,124 10,000 10,000 11,000 10% 0383 Utilities 198,320 210,000 210,000 220,000 5%
0387 CALPERS UAL Payment - 50,000 50,000 25,000 -50%
0619 Miscellaneous 84,964 - - -
0619 Miscellaneous 84,964 - - - -
Materials & Services 687,867 1,028,987 1,007,461 825,690 -18% 0606 Bad Debt Sent to Collectio - (8,000) (4,000) (8,000) 100% Bad Debt - (8,000) (4,000) (8,000) 100%
0741 Machinery & Equipment (361,734) 84,500 84,500 40,000 -53% 0741 Machinery & Equipment (361,734) 84,500 84,500 40,000 -53% 0751 Infrastructure 361,734 - - - -
0751 Infrastructure 361,734 - - - -
Capital Expenditures - 84,500 84,500 40,000 -53%
0911 Principal - 89,000 89,000 91,000 2%
0911 Principal - 89,000 89,000 91,000 2%
0912 Interest 97,410 95,650 95,650 93,850 -2%
0912 Interest 97,410 95,650 95,650 93,850 -2%
0913 Fees 350 - - - -
0913 Fees - 5,500 5,500 - -100%
0913 Fees 350 5,500 5,500 - -100%
Debt Service 97,760 190,150 190,150 184,850 -3%
Non-Personnel Servic 785,627 1,295,637 1,278,111 1,042,540 -18% 0322 Fleet Services 76,949 116,994 116,994 116,994 0%
0396 Allocation to IT Int Serv Fun 22,877 37,030 37,030 37,030 0% 0399 Admin Costs Allocation 655,144 636,754 636,754 636,754 0% Other Operating
Allocations 754,970 790,778 790,778 790,778 0%
2,226,707 2,717,464 2,649,297 2,385,208 -10%
0799 Transfer to Other Funds 5,051,446 2,199,959 1,095,727 1,804,008 65% Total Wastewater Enterprise $ 7,278,152 $ 4,917,423 $ 3,745,024 $ 4,189,216 12% ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2022/23
Fund #710 Account Category Proposed
Department: 4710 Detail Detail Budget
Materials & Services
710-4710-0312 Auditing & Accounting $ 10,000
710-4710-0319 Professio Bank Fees- Lockbox 30,000
710-4710-0359 Liability Deductible -
710-4710-0360 Property Premium 64,240
710-4710-0361 Property Deductible -
710-4710-0362 Telephone & Communication 1,000
710-4710-0365 Copying/Printing
710-4710-0372 Postage 8,000
Total Material & Services $ 113,240
Other Expenditures
710-4710-0606 Bad Debts Sent to Collection (8,000)
Total Other Expenditures (8,000)
Allocations
710-4710-0396 IT Internal Service Fund 37,030
710-4710-0399 Admin Costs 636,754
Total Allocations 673,784
Municipal Improvement District #1
Wastewater Enterprise Administration Division
Line Item Detail
FY 2022/23
Fund #710 Account Category Proposed
Department: 4711 Detail Detail Budget
Materials & Services
710-4711-0351 Equipment Repair & Maint (Sewer parts) 5,000 710-4711-0366 Training/Travel Reimbursement 3,500
710-4711-0375 General Supplies 12,000
710-4711-0381 Small Tools & Equipment 4,000
Total Material & Services $ 24,500
Total - Wastewater Enterprise Maintenance Division $ 24,500 Line Item Detail
Municipal Improvement District #1
Wastewater Enterprise Maintenance Division
ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2022/23
Fund #710 Account Category Proposed
Department: 4712 Detail Detail Budget
Personnel Costs
Salaries & Wages $ 482,291
Retiree Medical Benefits $ 35,000
Employee Benefits 301,375
710-4710-0801 Salary/Benefits Allocation from General Fund (4,181) 710-0000-3499 Salary/Benefits Allocation to Water Enterprise (227,594) Total Personnel Costs $ 586,890
Materials & Services
710-4712-0313 Laboratory 45,000
710-4712-0319 Professional Services 150,000
Biosolids (3yr contract) $ 144,500
Backflow testing 1,500
Fire extinguisher maintena 1,000
Flow meter calibrations 3,000
710-4712-0320 Dues & Memberships 1,000
710-4712-0342 Laboratory Supplies -
710-4712-0343 Chemicals 94,000
710-4712-0351 Equipment Repair & Maintenance 74,000
Lift station fittings 5,000
Pump repair 11,000
Electrical hardware & main 30,000
Small projects and improve 15,000
Stainless steel/PVC hardw 1,500
Boiler Maintenance 1,500
New plant startup 10,000
710-4712-0353 Building Repair & Maintenance 9,000
710-4712-0354 Laundry/Cleaning/Janitorial 700
710-4712-0366 Training/Travel Reimbursement 6,000
710-4712-0372 Postage 1,000
(continued on next page)
Municipal Improvement District #1
Wastewater Enterprise Treatment Division
Line Item Detail
ENTERPRISE FUNDS – WASTEWATER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
FY 2022/23
Fund #710 Account Category Proposed
Department: 4712 Detail Detail Budget
Materials & Services, Continued
710-4712-0373 Licenses & Permits 17,000
Annual fees 12,000
AQMD 3,800
County hazmat 1,200
710-4712-0375 General Supplies 4,500
710-4712-0376 Medical/Safety Supplies 6,500
710-4712-0377 Boot Expense 2,250
710-4712-0381 Small Tools & Equipment 220,000
710-4712-0383 Utilities 7,000
710-4712-0387 Section 115 Trust- UAL Contribution 25,000 Total Material & Services 662,950
Allocations
710-4712-0322 Fleet Services 116,994
Total Allocations 116,994
Debt Service
710-4712-0911 Principal 91,000
710-4712-0912 Interest 93,850
Total Debt Service 184,850
Total - Wastewater Enterprise Treatment Division $ 2,355,208 Municipal Improvement District #1 Cont'd
FY 2022/23
Fund # 714 Account Category Proposed
Department: 4713 Detail Detail Budget
Materials & Services
714-4713-0741 Machinery & Equipment 40,000
Total Material & Services 40,000
Total - Wastewater Enterprise Non-Routine Maintenance $ 40,000 Line Item Detail
Municipal Improvement District #1
Wastewater Enterprise Non-Routine Maintenance
ENTERPRISE FUNDS – CV STARR CENTER
City of Fort Bragg ~ FY 2022/23 Proposed Budget

OVERVIEW
The C.V. Starr Community Center and Sigrid & Harry Spath Aquatic Facility (C.V. Starr Center) is a 43,000 square foot facility that includes an indoor water park, fitness, exercise and weight rooms and meeting rooms for community use. Its grounds include a dog park, a skateboard park, petanque courts and picnic and BBQ facilities. The City owns the facility and receives restricted sales tax and property tax revenues to help offset the costs of operation, maintenance and capital improvements at the C.V.

Starr Center. These restricted sales and property tax funds are held in the C.V. Starr Enterprise Fund.

SUMMARY OF SERVICES
The City contracts with the Mendocino Coast Recreation and Parks District (MCRPD) for day-to-day operation and maintenance of the C.V. Starr Center.

GOALS AND OBJECTIVES
• Continue to coordinate with the
MCRPD to ensure the efficient and
effective operation of the C.V. Starr
Center in accordance with the
Operating Agreement between the
City and the MCRPD.
• Continue to ensure that financial
procedures and fiscal controls are
effectively implemented to address
accounting, cash handling, payroll
processing, purchasing and procurement, inventory controls, record-keeping, auditing and reporting.
• Coordinate closely with the MCRPD District Administrator to ensure completion of necessary maintenance and repairs and implementation of capital improvement projects.

BUDGET OVERVIEW
The C.V. Starr Center’s annual operating budget is adopted as a stand-alone budget for the facility.

However, the C.V. Starr Enterprise Fund receives special sales tax revenues and property tax revenues that are restricted and used to help offset the costs of operation, maintenance, and capital improvements at the Center. Revenue generated from operating the C.V. Starr Center is collected through user fees, the sale of merchandise, and other miscellaneous sources.

Operating revenues for FY 2022/23 are forecasted to be $2.1 million, which represents a 6% decrease from the FY 2021/22 projected result of $2.3 million. Following the City’s lead, the CV Starr Center budget was developed using a most likely revenue forecasting. The FY 2022/23 budget shows revenues from operations covering approximately 41% of operating expenses. Tax revenues cover the remaining 59% of operations plus all capital spending.

C.V. STARR COMMUNITY CENTER
ENTERPRISE FUNDS – CV STARR CENTER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Operating expenditures are costs directly related to the operation of the C.V. Starr Center, such as wages, benefits, utilities, services, and supplies. These expenses are budgeted for FY 2022/23 at $2.5 million, representing a 39% increase over the projected year-end 2021/22. The increase is attributable to the Ultra Violet Disinfection System Replacement at $161k, Domestic Hot Water #1 & #2 at $157k, and Watt Stopper at $60k. Due to Fort Bragg’s remote location, a limited number of contractors are likely to bid on the project, and it is probable that the cost will be significantly higher than first anticipated.

For FY 2021/22 and the proposed Fiscal year budget, multiple capital projects are scheduled to address some deferred maintenance items.

As can be seen in the table above, The Center is maintaining an Operating Reserve at 25% of the previous year’s operating expenditures and a Capital Repair and Equipment Reserve. In FY2022/23 the Capital Reserve balance will decrease due to needed Capital Improvements to the Center. 21/22 FYE
Projected
FY 2022/23
Proposed
Budget
Beginning Unrestricted Net Position $ 1,489,006 $ 963,204 Operating Revenue 7,500 7,683
Sales Tax Revenue 986,000 1,257,000
Property Tax Revenue 268,596 272,625
Non-operating Revenue 10,000 10,000
Operating Expense 1,797,899 2,125,274
Non-operating Expense
Capital Assets - Net of Debt Payments - 377,600
Net Assets $ 963,203 $ 7,637
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
Operating Reserve $ 744,503 $ 744,503
Capital Repair & Equip Reserve 744,503 744,503
Total Reserves $ 1,489,006 $ 1,489,006
ENTERPRISE FUNDS – CV STARR CENTER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
C.V. STARR CENTER ENTERPRISE BUDGET SUMMARY
Fund 810
Department: 4812
Appropriations & Revenue
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Personnel Services $ 229,526 962,181 952,732 1,182,621 24% Non-Personnel Services 999,367 1,264,496 845,167 1,320,253 56% Total Appropriations 1,228,893 2,226,677 1,797,899 2,502,874 39% Revenue from Operations $ (0) - - - -
Property Tax $ 262,787 260,000 268,596 272,625 2%
Sales & Use Tax $ 1,099,510 1,001,874 986,000 1,257,000 27% Other Revenue $ 11,918 463,614 1,016,389 598,882 -41%
Total Revenue 1,374,215 1,725,488 2,270,985 2,128,507 -6%

NET EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENSES $ 145,322 (501,189) 473,086 (374,367) -179% NET CHANGE IN FUND BALANCE $ 145,322 (501,189) 473,086 (374,367) -179% BUDGET DETAIL:

Fund #810
Department: 4812
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget #
%
+ /-
0101 Salaries, Wages & Benefits $ 229,526 962,181 952,732 1,182,621 24% 0200 Employee Benefits
Personnel Services $ 229,526 962,181 952,732 1,182,621 24% 0201 Emp. Benefits - CV Starr 35,194 - - -
0210 Misc Insurance Premium & Fees 52,515 - - -
0312 Auditing & Accting- CV Starr 3,888 - - -
0351 Equipment Repair & Maint 10,340 165,525 161,994 191,424 18% 0383 Utilities 76,877 271,996 350,044 373,100 7%
0319 Utilities 6,497 - - -
0386 Operations 61,249 210,328 290,579 290,579 0%
0385 Outreach - 22,200 17,200 22,200 29%
0399 Admin Coast Allocation- CVSC - 17,097 15,350 55,350 0499 Depreciation Expense 698,075 - - -
0619 Other 200 - - - -
0631 General Admin 516 15,350 10,000 10,000
0741 Mchinery & Equipment 29,912 - - -
Materials& Services 975,264 702,496 845,167 942,653 12% 0751 Capital 24,103 562,000 - 377,600 -
Capital 24,103 562,000 - 377,600
Debt Service - - - -
Total Non-Personnel Services $ 999,367 1,264,496 845,167 1,320,253 56% Total C.V. Starr Enterprise $ 1,228,893 2,226,677 1,797,899 2,502,874 39% ENTERPRISE FUNDS – CV STARR CENTER
City of Fort Bragg ~ FY 2022/23 Proposed Budget
$1,182,621
49%
$373,100
15%
$22,200
1%
$191,424
8%
$290,579
12%
$-
0%
$377,600 …
FY 2022/23 EXPENDITURES BY CATEGORY
Personnel Services
Utilities
Outreach
Maintenance
Operations
Other Expense
Capital

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
The City of Fort Bragg actively seeks grants to augment ongoing revenue sources. Over the years, the City has been very successful in obtaining grant funding for various projects, ranging from planning activities to community services and capital projects. All-City departments are involved in seeking and administering grants, and the City has invested considerable resources to ensure sufficient staffing and training to write successful grant applications, implement grant-funded activities, and meet fiscal monitoring and reporting requirements.

The City expects to apply for additional grants for which awards have not yet been announced, and any awards could provide additional funding for activities in the FY 2022/23 budget year. Budget amendments will be processed as needed to reflect grant revenues and expenditures if additional funds are awarded.

GRANT SPECIAL REVENUE FUNDS

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
GRANT PRIOR FY 22/23

AMOUNT YEAR(S) PROPOSED
Fund AWARDED ACTIVITY BUDGET
110 Social Services Grant (PD) 222,348 73,348 149,000
222,348 73,348 149,000
314 MCOG OWP
CBD Parking Feasibility Study-In Lieu Fee 57,062 57,062 CRRSAA-Relief Act Money (HR 133) for 2022 Streets Project 162,000 162,000 Total MCOG OWP 219,062 - 219,062
223 MCOG D1 RSTP
2022 Streets -Street Striping Componenet 206,405 206,405 Total MCOG RSTP 206,405 - 206,405
222 RMRA-Local Partnership Program (LPP)
2022 Streets Project 600,000 600,000
Total RMRA LPP 600,000 600,000
329 Other State Grants
SB-2 Planning Grant $ 160,000 $ 43,877 116,123
REAP 46,410 46,410
LEAP 65,000 65,000
CalRecycle- SB 1383 20,000 20,000
Prop 68- Per Capita (Bainbridge Soccer Fields) 177,952 177,952 469,362 43,877 425,485
330 Other Federal Grants
Economic Development Administration (EDA) 137,500 69,825 67,675 U.S. Department of Agriculture
USDA - Fleet - 213,400 160,050
137,500 283,225 227,725
319 Department of Water Resources (DWR)
Raw Water Line $ 8,800,000 $ 4,055,000
8,800,000 - 4,055,000
332 Other Grants
HEAP - Homeward Bound Program 12,686 11,899 -
12,686 11,899 -
333 CDBG 2017 Grant
2017 NOFA:

Cypress Street Parents & Friends Housing Project 3,433,620 319,203 3,114,417 General Administration 212,016 136,220 75,796
Total 2017 NOFA 3,645,636 455,423 3,190,213
Description

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
GRANT PRIOR FY 22/23

AMOUNT YEAR(S) PROPOSED
Fund AWARDED ACTIVITY BUDGET
334 CDBG 2020 Grant(s)
2020 NOFA:

BALP 450,000 - 450,000
BALP Activty Delivery - Staff Time 25,000 - 25,000
BALP General Administration 25,000 - 25,000
Mill Site 93,004 23,405 69,599
Mill Site General Administration 6,996 3,498 3,498
Fire Station Planning 190,376 - 190,376
Fire Station General Administration 13,326 - 13,326
Code Enforcement 418,457 96,968 152,000
Code Enforcement General Administration 29,292 15,144 10,000 Micro Financial Assistance 115,000 - 115,000
Micro FA General Administration 2,000 - 2,000
Total 2020 NOFA 1,368,451 139,015 1,055,799
CDBG 2020 OTC Grant
Water Meter Replacement Project - Admin Budget 81,082 20,000 61,082 Water Meter Replacement Project - CIP Budget $ 2,863,283 2,000,000 850,000 2,944,365 2,020,000 911,082
335 CDBG-CV Grants
Coronavirus Response:

Utility Assistance Program 129,560 40,000 89,560
Utility Assistance General Administration 21,304 2,000 10,000 Utility Assistance Activity Delivery 26,630 5,841 15,000 BALP-CV 201,969 119,906 82,063
BALP-CV Activity Delivery - Staff Time 11,880 5,000 6,880 BALP - CV General Administration 23,761 8,000 15,761
Total 2017 NOFA 415,104 180,747 219,264
336 AMERICAN RESCUE PLAN FUND
ARPA 2021
Earmarked for Broadband 1,744,162 - -
Total 1,744,162 - -
Total FY 22/23 Grant Activity $ 20,785,081 $ 3,207,535 $ 11,259,035 Description

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fund
No. Grant Special Revenue
314 Mendocino Council of
Governments (MCOG)
Overall Work Program
(OWP) Grants
314
Coronavirus Response
and Relief
Supplemental
Appropriations Act of
222
RMRA-Local
Partnership Projgramm
LPP
223
Mendocino Council of
Governments (MCOG)
Regional Surface
Transportation
Program (RSTP)
RMRA has two apporionment accounts LPP money is only
awarded on a project specfic bases after review and
confirmation of application
The City's 2022 Streets Project has been awarded $600,000 in LPP funds for thhe 22/23 FY
Description
MCOG allocates funds to local agencies in Mendocino County for transportation planning and technical assistance through its Overall Work Program (OWP). In FY 2022/23, the City will have one active MCOG OWP project:
2022 Streets Project -Street Striping Component. This includes two years of D1-RTIP money from FY 17/18 & 18/19
distribution years.

Central Business District Parking Evaluation. The award amount is $57,062 and the City will match $3450 from Fund 121 (in-lieu Parking Fees) as this study aims to evaluate and correct the parking codes and in-lieu fee moratorium
MCOG is the Pass through agency for each organizations
share of the CRRSAA money for transportation projects.

The CRRSAA award amount is $162,000 and these funds will be used to cover a portion of the 2022 Streets Project

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fund
No. Grant Special Revenue
329 Other State Grants
●
$20,000
●
$177,952
●
$160k to accelerate housing production.
●
●
330 Other Federal Grants
●
Department of Water
Resources (DWR)
●
Local Early Action Planning Grant (LEAP) $62,693
Regional Early Action Planning Grant (REAP) $46,410
In the 2019-20 Budget Act, Governor Newsom allocated grant funds to all cities, counties, and regions to do their part by prioritizing housing production to meet identified needs of every community. The City prioritized this funding toward the development of a rural, coastal and regional community land trust pilot program to develop long-term affordable housing solutions to households earning up to 120% of the area median income.

DWR through the Urban and Multibenefit Drought Relief Grant Program The City of Fort Bragg in Mendocino County will receive $8.8 million for structural lining and reconstruction of 9,250 feet of pipeline that supplies over half the water used by the city, which faced acute water supply challenges earlier this year. The project will strengthen resilience by ensuring reliable delivery of water during future drought events.

CalRecycle SB 1383
SB-2 Planning Grant
In the 2019-20 Budget Act, Governor Newsom allocated grant funds to all cities, counties, and regions to do their part by prioritizing housing production to meet identified needs of every community. The City prioritized this funding toward the development of a rural, coastal and regional community land trust pilot program to develop long-term affordable housing solutions to households earning up to 120% of the area median income.

U.S Department of Agriculture(USDA) - $3,388,000
Prop 68- Per Capita (Bainbridge Soccer)
This is a rural assistance grant provided by the United States Department of Agriculture (USDA)
Description

GRANT FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fund
No. Grant Special Revenue
333 Community
Development Block
Grant Funds 2017
●
334 Community Development Block Grant Funds 2020
●
336
● ARPA FUNDS $1,744,162
America Rescue Plan Act - 2021
This Special Revenue Fund accounts for funding authorized by the federal American Rescue Plan (ARP) Act. The funds have been earmarked for Broadband Infrastructure.

Description
2020 NOFA
The 2020 CDBG grant awards provide:
• $203,702 to assist the Fort Bragg Fire Protection Authority with the planning activities for the Fire Station Rehabilitation Project;
• $447,749 for a Code Enforcement program to better
respond to the code related health and safety needs of the community;
• $100,000 for Mill Site Planning activities;
• $500,000 to fund a Business Assistance Loan Program
activity to assist Fort Bragg businesses;
• $117,000 to fund a Microenterprise Financial Assistance Program to assist microenterprise businesses.

Under 2020 CDBG program the City also applied for the
following activity and await an award response:
• $2,994,365 to fund the Water Meter Replacement Project. 2017 Super NOFA: $3,645,636
The Cypress Street Residential Care Facility for the Elderly Project was awarded at $3,038,869 in July 2018. The facility will be comprised of three, four-bedroom, three-bath
residential units that will be constructed to be full accessible and equipped for aging, disabled clients. The Project is expected to commence in FY20/21 and be completed in FY
21/22. All grant expenditures related to the project must be expended by July 31, 2023.

SPECIAL REVENUE FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fund No. Fund Type
116 General Plan Maintenance Fee
117 Housing Trust Fund
120 Parking
121 Parking In-Lieu Fees
122 Parkland Monitoring and
Reporting
124 State Tobacco License Fee
125 State Disability Access Fee
139 COPS AB1913
(continued)
To account for funds received under California SB-1186 which mandates a State fee of $3 on any applicant for or renewal of a local business license, permit or similar instrument when it is issued or renewed. The fee applies to applications and
renewals filed between January 1, 2013 and December 31, 2018. 30% of the collected fees are remitted to the California Division of the State Architect while 70% are retained to help increase the number of Certified Access Specialists in the City and to facilitate compliance with construction-related
accessibility requirements.

Special Revenue Funds account for revenues received that have special restrictions placed on their use or are committed to expenditure for specified purposes either through statute or by Council policy. The City has a number of different special revenue funds which are part of the non-operating budget. The City’s nonmajor special revenue funds include the following:

To account for General Plan Maintenance Fee revenue which is required to be used for costs related to the update of the City’s General Plan and zoning code.

To account for Inclusionary Housing In-Lieu fee revenue which is required to be used for affordable housing activities.

To account for parking permit revenues and the cost of
maintaining City-owned public parking lots.

To account for payments made by downtown property owners in lieu of providing on-site parking. Accumulated funds must be used for activities related to providing off-street parking facilities in the central business district. The requirement for payment of parking in-lieu fees was temporarily suspended by the City Council through December 31, 2017.

To account for payments made by Georgia Pacific in
connection with the City's acquisition of Noyo Headlands Park property to cover costs associated with on-going monitoring and reporting requirements related to the environmental

To account for fees and fines associated with the City's Tobacco Retailer licensing program.

Description
To account for monies received from the State for law
enforcement services under the Citizens Option for Public Safety (COPS) Program established by AB 1913

SPECIAL REVENUE SUMMARY

SPECIAL REVENUE FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fund No. Fund Type
146 OJP Bulletproof Vest
Partnership Grant
167 Asset Forfeiture
176 RDA Housing Successor
190 Construction/Demolition
Ordinance Revenue
220 Waste Management Community
Benefit Revenue
221 Gas Tax- Federal
222 RMRA-Gas Tax (State)
223 Regional Surface Transportation
Program (RSTP) D1
230 Traffic & Safety
250 Street and Alley Repairs
280 Parcel Tax, Fire Equipment
285 OJ Park Maintenance
To account for the City’s share of State of California’s Highway User Tax collected by the State. These revenues are legally restricted to the maintenance and improvement of City roads and streets.

To account for monies obtained from seized assets of criminal activities. The funds are used solely to support law enforcement purposes.

SPECIAL REVENUE FUNDS, Cont'd
Description
To account for deposits that are made in accordance with the City's Construction & Demolition Ordinance. Deposits are refunded if recycling goals are met. Otherwise, the deposits are forfeited and retained in the special revenue fund. The funds may used to improve solid waste recycling facilities, and to provide other related education and programs within the City.

To account for a one-time payment received from Waste
Management at the time its franchise agreement for solid waste collection services within the City was extended. The City Council may designate the funds for community benefit purposes. To date, this fund has been used to help offset costs associated with the Noyo Center for Marine Science initiative, the Town Hall Remodel Project and the Downtown Wi-Fi Project.

To account for monies received under the Bulletproof Vest Partnership Grant Act. This program is designed to pay up to 50% of

To account for Regional Surface Program (RSTP) D1 funds. The purpose of the program is to provide funding to local jurisdiction for a wide variety of transportation planning and improvements projects, such as research, planning, construction, improvement,
maintenance, and operation of public streets and highways (and their related public facilities for non-motorized traffic.)The City currently has D1 funds available to claim from MCOG in the amount of $283k; it is anticipated that this balance will increase in FY 2017/18 by approximately $98k
To account for monies received from a parcel tax which is restricted to the purchase of Fire Equipment. The parcel tax was renewed by the voters in 2015.

To account for the City's share of California's Highway User Tax collected by the State. These revenues are legally restricted to the maintenance and improvements of City roads and streets.

This fund accounts for revenues from a one-time gift to the City by the heirs of Otis Johnson for use on special projects and/or maintenance activities at Otis Johnson Wilderness Park.

To account for revenues retained by the Fort Bragg Redevelopment Agency Successor Agency in connection with the winding-down of the former Redevelopment Agency. Funds must be expended on activities related to the development, retention or rehabilitation of affordable housing in Fort Bragg.

To account for revenue received from traffic fines which is restricted to City street repairs and traffic safety.

To account for revenue received from a special half-cent sales tax which is restricted to City street and alley repairs.

SPECIAL REVENUE FUNDS
City of Fort Bragg ~ FY 2022/23 Proposed Budget

SPECIAL REVENUE FUNDS - RESTRICTED
FY 2021/22 FY 2021/22 FY 2022/23
FY 2020/21 AMENDED FYE PROPOSED
Fund Fund Description AUDITED BUDGET PROJECTED BUDGET
116 General Plan Maintenance Fee $ 32,230 $ 65,000 $ 30,000 30,000 117 Housing Trust Funds 3,000 3,000 - -
125 State Disability Access Fee 148 - (155) (168)
139 COPS AB1913 Allocation 156,742 155,947 155,947 160,000 167 Asset Forfeiture 25,495 35,000 35,000 14,800
176 RDA Housing Successor 250,000 2,500 - -
221 Highway User Tax (Gas Tax) 128,744 250,000 269,264 240,494 222 RMRA-Gas Tax 137,685 146,155 153,459 168,886
230 Traffic & Safety 3,831 7,669 3,200 4,100
250 Street/Alley Repair Sales Tax 216,691 11,200 88,788 108,520 280 Fire Equipment Fund - - - -
Total - Restricted Funds $ 954,566 $ 676,471 $ 735,503 $ 726,632

FORT BRAGG REDEVELOPMENT SUCCESSOR AGENCY
City of Fort Bragg ~ FY 2022/23 Proposed Budget

OVERVIEW
The Fort Bragg Redevelopment Successor Agency and its Oversight Board are responsible for winding down the functions of the former Fort Bragg Redevelopment Agency. As a result of legislation enacted in 2011, all Redevelopment Agencies (RDAs) in California were dissolved and the assets, liabilities and costs associated with the dissolution are now administered by Successor Agencies. Property tax revenues previously allocated to the RDAs are now used to pay required payments on existing bonds, other obligations, and pass-through payments to local governments (defined as enforceable obligations). The remaining property tax revenues (amounts exceeding the enforceable obligations) are retained by the County and allocated back to cities, counties and special districts.

Each Successor Agency (SA) has an Oversight Board that supervises its work. The Oversight Board is comprised of representatives of the local agencies that serve the redevelopment project area: the City, county, special districts, and K-14 educational agencies. Oversight Board members have a fiduciary responsibility to holders of enforceable obligations, as well as to the local agencies that would benefit from property tax distributions from the former redevelopment project area.

The SA reports enforceable obligations to the California Department of Finance (DOF) on an annual basis (starting in FY 2016/17). The enforceable obligations are subject to approval by the DOF. The City can report costs each year for administration of the SA and winding down of enforceable obligations, subject to approval by the Oversight Board and DOF. If SA activities are reduced by the Oversight Board or by the DOF, through the disallowance of enforceable obligations, the administrative costs may be reduced accordingly. In FY 2016/17, the State of California began reducing the Fort Bragg Redevelopment Successor Agency’s allowable administrative costs. The City received approval for $128,275 of administrative costs for the period July 1, 2022 through June 30, 2023.

Fort Bragg Redevelopment Successor Agency
Fund 175
Department: 4810
Expense & Revenue
Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
Expense $ 228,240 383,950 382,989 386,475 1%
Total Expense 228,240 383,950 382,989 386,475 1%
Redevelopment Property Tax Trust 382,100 383,950 382,989 386,475 1% Total Revenue $ 382,100 383,950 382,989 386,475 1%

FORT BRAGG REDEVELOPMENT SUCCESSOR AGENCY

FORT BRAGG REDEVELOPMENT SUCCESSOR AGENCY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
BUDGET DETAIL:

Fund #175
Department: 4810
Object Description
FY 2020/21
Audited
FY 2021/22
Amended
Budget
21/22 FYE
Projected
FY 2022/23
Proposed
Budget
%
+ /-
0312 Auditing & Accounting $ 3,659 4,024 3,064 3,100 1% Materials& Services 3,659 4,024 3,064 3,100 1%
0399 Successor Agency-RDA Admin All $ 123,073 123,376 123,376 125,175 1% Allocations 123,073 123,376 123,376 125,175 1%
0911 Principal $ - 165,000 165,000 170,000 3%
0912 Interest Expense $ 99,748 89,900 89,900 86,550 -4% 0913 Fees $ 1,760 1,650 1,650 1,650 0%
Debt Service 101,508 256,550 256,550 258,200 1%
Total Sucessor Agency $ 228,240 383,950 382,989 386,475 1% $3,100
1%
$125,175
32%
$258,200
67%
FY 2022/23 EXPENDITURES BY CATEGORY
Materials& Services
Allocations
Debt Service

FORT BRAGG REDEVELOPMENT SUCCESSOR AGENCY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
$4,040,000
Fort Bragg Redevelopment Successor Agency
Tax Allocation Bonds – Series 2015 Refunding
Date: February 1, 2015
Interest: Semiannual each September and March, commencing September 1, 2015.

Interest rates range from 2.0% to 3.25%.

Maturity: September 1, 2036
Rating: Standard and & Poor’s APurpose: To refinance 1993 and 2004 Redevelopment Agency (RDA) Bonds and finance certain Redevelopment Activities in the Project Area
Coverage Ratio: 1.25
Continuing
Disclosure: Annual report due to the Municipal Securities Rulemaking Board by April 1st Security: The Bonds are special obligations of the RDA and are payable from pledged tax revenues derived from property in the Project Area and allocated to the RDA pursuant to the Redevelopment Law.

Interest rates and terms on the following loans were revised by the Successor Agency Oversight Board on February 27, 2014 pursuant to Section 34176(e)(6)(B) of the California Health & Safety Code.

Fiscal Year Principal Interest Total
FY 15 -16 $ 90,000 $ 111,475 $ 201,475
FY 16 -17 150,000 105,450 255,450
FY 17 -18 150,000 102,450 252,450
FY 18 -19 155,000 99,400 254,400
FY 19 -20 155,000 96,300 251,300
FY 20 -21 160,000 93,150 253,150
FY 21 -22 165,000 89,900 254,900
FY 22 -23 170,000 86,550 256,550
FY 23 -24 165,000 83,200 248,200
FY 24 -25 175,000 79,800 254,800
FY 25 -26 175,000 75,425 250,425
FY 26 -27 180,000 70,100 250,100
FY 27 -28 190,000 64,550 254,550
FY 28 -29 190,000 58,850 248,850
FY 29 -30 195,000 53,075 248,075
FY 30 -31 205,000 47,075 252,075
FY 31 -32 210,000 40,850 250,850
FY 32 -33 215,000 34,206 249,206
FY 33 -34 225,000 27,056 252,056
FY 34 -35 230,000 19,663 249,663
FY 35 -36 240,000 12,025 252,025
FY 36 -37 250,000 4,063 254,063
$ 4,040,000 $ 1,454,613 $ 5,494,613
Principal Interest Total Fees Total Payment
$ 170,000 $ 86,550 $ 256,550 $ 1,650 $ 258,200
RDA 2015 Refunding Tax Allocation Bonds

FORT BRAGG REDEVELOPMENT SUCCESSOR AGENCY
City of Fort Bragg ~ FY 2022/23 Proposed Budget
City of Fort Bragg FY 2022/23 Proposed Budget

STATISTICAL SECTION
This part of the City of Fort Bragg's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 130-140
Revenue Capacity
generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees and intergovernmental revenue are the City's most significant revenue sources.
141-149
Debt Capacity
These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt 150-156
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 158-159
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
160-162
City of Fort Bragg FY 2022/23 Proposed Budget
1 0.8

0.6 0.4

0.2 0
Governmental activities
City of Fort Bragg, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Governmental activities
B
P
Source: City Finance Department
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$‐
2012 2013 2014 2015 2016
activities activities
Net investment in capital assets $ 30,664 $ 30,444 $ 31,944 Restricted 4,776 5,671 5,987
Unrestricted (deficit) 1,356 428 232
Total governmental activities net position $ 36,796 $ 36,543 $ 38,163 usiness‐type activities
Net investment in capital assets $ 31,319 $ 30,764 $ 30,531 Restricted 108 72 101
Unrestricted (deficit) 3,709 4,294 3,603
Total business‐type activities net position $ 35,136 $ 35,130 $ 34,235 rimary government
Net investment in capital assets $ 61,983 $ 61,208 $ 62,475 Restricted 4,884 5,743 6,088
Unrestricted (deficit) 5,065 4,722 3,835
Total primary government net position $ 71,932 $ 71,673 $ 72,398 City of Fort Bragg FY 2022/23 Proposed Budget
City of Fort Bragg FY 2022/23 Proposed Budget
2015 2016 2017 2018 2019 2020 2021
$ 35,914 $ 38,647 $ 39,523 $ 42,293 $ 41,400 $ 42,102 $ 41,686 2,289 3,536 2,513 3,758 1,279 1,922 2,947
(203) (399) (1,518) (5,115) (2,456) (5,026) (4,140)
$ 38,625 $ 41,784 $ 40,518 $ 40,935 $ 40,223 $ 38,998 $ 40,493 $ 30,047 $ 30,503 $ 31,597 $ 33,572 $ 37,806 $ 45,807 $ 46,331 108 108 108 108 108 108 108
3,649 4,232 6,912 7,515 8,094 8,704 12,277
$ 33,804 $ 34,843 $ 38,617 $ 41,195 $ 46,008 $ 54,619 $ 58,716 $ 65,961 $ 69,150 $ 71,119 $ 75,865 $ 79,206 $ 87,909 $ 88,017 3,022 3,644 2,621 3,866 1,387 2,030 3,055
3,466 3,833 5,395 2,400 5,638 3,678 8,137
$ 72,429 $ 76,627 $ 79,135 $ 82,131 $ 86,231 $ 93,617 $ 99,209 City of Fort Bragg FY 2022/23 Proposed Budget
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Expenses
Governmental activities:

General government $ 2,540 $ 2,708 $ 1,500
Public safety 3,493 3,399 3,851
Public works 1,532 1,874 2,176
Community development 1,877 1,529 3,485
Parks and recreation ‐ ‐ ‐
Marketing and promotions ‐ ‐ ‐
Interest and fiscal charges 177 49 42
Total governmental activities expenses 9,619 9,559 11,054 Business‐type activities:

Water 2,107 2,138 2,539
Sewer 2,983 3,063 3,095
C.V. Starr Center 183 2,236 2,262
Total business‐type activities expenses 5,273 7,437 7,896 Total primary government expenses 14,892 16,996 18,950
Program revenues
Governmental activities:

Charges for services:

General government 2,718 2,701 2,851
Public safety 29 40 72
Public works 4 5 34
Community development 349 100 58
Operating grants and contributions 684 1,572 1,567
Capital grants and contributions 1,096 303 1,818
Total governmental activities program revenues 4,880 4,721 6,400 Business‐type activities:

Charges for services:

Water 2,194 2,404 2,229
Wastewater 2,945 3,197 3,004
C.V. Starr Center ‐ 591 635
Operating grants and contributions ‐ ‐ ‐
Capital grants and contributions 25,132 ‐ ‐
Total business‐type activities program revenues 30,271 6,192 5,868 Total primary government program revenues 35,151 10,913 12,268 Net (Expense)/Revenue
Governmental activities (4,739) (4,838) (4,654)
Business‐type activities 24,998 (1,245) (2,028)
Total primary government net expense 20,259 (6,083) (6,682) City of Fort Bragg FY 2022/23 Proposed Budget
2015 2016 2017 2018 2019 2020 2021
$ 2,593 $ 2,877 $ 2,221 $ 2,804 $ 2,384 $ 2,623 $ 3,581 3,663 4,187 4,388 4,461 4,338 5,374 4,386
2,435 2,108 2,750 2,873 2,979 3,122 2,438
840 1,700 1,018 1,208 1,056 876 4,105
‐ ‐ 38 ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ 186 93
30 26 21 53 47 5 38
9,561 10,898 10,434 11,399 10,804 12,186 14,641
2,286 2,264 2,158 2,034 1,920 1,676 1,688
2,801 2,897 2,847 2,569 2,674 2,302 3,043
2,382 2,292 2,320 2,386 2,722 2,081 1,229
7,469 7,453 7,325 6,989 7,316 6,059 5,960
17,030 18,351 17,760 18,388 18,120 18,245 20,601
2,809 2,818 1,967 1,324 1,108 880 978
50 289 299 365 371 290 252
102 344 558 1,049 1,155 1,980 1,583
‐ 30 232 520 293 ‐ 0
4,702 725 1,251 2,259 765 800 3,974
2,383 3,762 922 3,324 3,296 1,345 1,584
10,046 7,968 5,227 8,840 6,988 5,295 8,371
2,496 2,624 2,683 2,909 3,077 3,181 3,660
3,194 3,332 3,305 3,495 3,599 3,484 4,017
706 722 696 743 711 466 ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ 4,512 ‐
6,396 6,678 6,683 7,147 7,387 11,643 7,678
16,442 14,646 11,911 15,987 14,375 16,938 16,049
485 (2,930) (5,207) (2,558) (3,817) (6,891) (6,270)
(1,073) (775) (642) 158 70 5,584 1,718
(588) (3,705) (5,849) (2,400) (3,747) (1,307) (4,552)
(continued)
City of Fort Bragg FY 2022/23 Proposed Budget
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Governmental activities:

Taxes:

B
Changes in Net Position
Governmental activities 4,609 864 1,619
Business‐type activities 25,132 (119) (895)
Total primary government $ 29,741 $ 745 $ 724
Source: City Finance Department
Property taxes 1,413 924 943
Sales and use tax 2,271 2,390 2,490
Transient lodging tax 1,411 1,536 1,667
Franchise taxes 470 482 496
Other taxes 225 203 411
Use of money and property 91 103 45
Unrealized gains and losses ‐ ‐ ‐
Other general revenues
Special Items
399 81 222
Transfer in (out) (2) (17) (1)
Extraordinary item: Redevelopment dissolution 3,070 ‐ ‐ Total governmental activities 9,348 5,702 6,273
usiness‐type activities:

Property taxes 19 231 216
Sales and use tax 772 811
Use of money and property 16 8 33
Other revenues 97 98 72
Transfer in (out) 2 17 1
Total business‐type activities 134 1,126 1,133
Total primary government 9,482 6,828 7,406
City of Fort Bragg FY 2022/23 Proposed Budget
2015 2016 2017 2018 2019 2020 2021
909 1,007 1,084 1,035 1,075 1,157 1,152
2,523 2,458 2,414 1,785 1,728 2,743 3,127
1,858 1,948 2,149 2,619 2,640 2,204 3,322
493 491 ‐ ‐ ‐ 590 626
435 403 674 719 762 185 185
87 113 (23) (110) 66 107 112
‐ ‐ ‐ ‐ 195 228 (124)
67 120 151 61 8 24 266
(507) ‐ ‐ ‐ ‐
(89) (451) (2,003) (898) (1,029) (1,573) (901)
‐ ‐ ‐ ‐ ‐ ‐ ‐
6,283 6,089 3,940 5,210 5,445 5,665 7,765
234 220 234 236 249 236 263
807 846 881 915 879 945 1,100
42 27 56 98 168 178 115
161 271 1,242 272 77 95 ‐
89 451 2,003 898 1,029 1,573 901
1,333 1,815 4,416 2,420 2,402 3,027 2,379
7,616 7,904 8,356 7,630 7,847 8,692 10,144
6,768 3,159 (1,267) 2,652 1,628 (1,226) 1,495
260 1,040 3,774 2,578 2,472 8,611 4,096
$ 7,028 $ 4,199 $ 2,507 $ 5,230 $ 4,100 $ 7,385 $ 5,591 (concluded)
City of Fort Bragg FY 2022/23 Proposed Budget
City of Fort Bragg, California
Fund Balances of Governmental
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
(In Thousands)
2012 2013 2014 2015 2016
General Fund:

Nonspendable $ 211 $ 248 $ 185 $ 205 $ 66
Committed ‐
Unassigned 3,775 4,007 4,434 4,553 790
Total general fund 3,986 4,255 4,619 4,758 856
All Other Governmental Funds:

Restricted 4,530 4,590 4,598 2,914 3,536
Assigned - - - 1,322 1,116
Unassigned (deficit) (187) (299) (1,441) (1,157) (331)
Total all other governmental funds 4,343 4,291 3,157 3,079 4,321 Total all governmental funds $ 8,329 $ 8,546 $ 7,776 $ 7,837 $ 5,177 Source: City Finance Department
10,000
8,000
6,000
4,000
2,000
2012 2013 2014 2015 2016 2017
General Fund All Other Governmental Funds:

City of Fort Bragg FY 2022/23 Proposed Budget
2017 2018 2019 2020 2021
$ 4 $ 94 $ 9 $ 3 $ 7
2,135 1,694 1,682 2,160 2,679
968 1,172 1,451 529 1,498
3,107 2,959 3,142 2,692 4,184
2,530 3,758 1,267 1,922 2,947
1,472 1,292 3,005 1,426 814
731 (470) (16) (284) (248)
4,733 4,580 4,256 3,064 3,513
$ 7,839 $ 7,539 $ 7,398 $ 5,756 $ 7,697
2018 2019 2020 2021
CHANGE IN FUND BALANCE ‐ GOVERNMENTAL FUNDS
$2,000
$1,500
$1,000
$500
$‐
$(500)
$(1,000)
$(1,500)
$(2,000)
City of Fort Bragg, California
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
(In Thousands)
Revenues: 2012 2013 2014 2015 2016
Taxes and assessments $ 5,790 $ 5,579 $ 5,810 $ 4,949 $ 5,067 Intergovernmental 1,773 1,897 2,946 7,463 5,219
Chargesforservices 2,854 2,564 2,907 457 242
Fines, forfeitures and penalties 13 23 28 178 162
Licenses and permits 241 260 234 254 273
Use of money and property 84 103 84 120 174
Unrealized gains and losses ‐ ‐ ‐ ‐ ‐
Reimbursements ‐ ‐ ‐ 2,930 3,413
Other 410 80 240 59 127
Totalrevenues 11,165 10,506 12,249 16,410 14,677
Expenditures:

Current:

General government 1,252 2,179 1,549 2,875 2,685
Public safety 3,351 3,410 3,829 3,581 4,100
Public works 1,386 1,472 1,594 3,469 1,874
Community development 1,975 2,191 3,460 834 1,693
Marketing and promotions ‐ ‐ ‐ ‐ ‐
Cost allocations ‐ ‐ ‐ ‐ ‐
Capital outlay 1,983 874 2,431 5,058 1,725
Debt Service:

Principal Retirement 113 107 112 116 120
Interest and fiscal charges 161 40 36 31 26
Total expenditures 10,221 10,273 13,011 15,964 12,223
Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures $ 944 $ 233 $ (762) $ 446 $ 2,454 Other financing sources (uses):

Proceeds from sales of assets ‐ ‐ ‐ ‐ ‐
Extraordinary loss on dissolution of redevelopment (1,039) ‐ ‐ ‐ ‐ Transfers in 1,910 1,950 1,091 5,683 2,714
Transfers out (1,912) (1,966) (1,099) (6,069) (3,292)
Total other financing sources (uses) (1,041) (16) (8) (386) (578) Net change in fund balances $ (97) $ 217 $ (770) $ 60 $ 1,876 Debt service as a percentage of noncapital expenditures 3.33% 1.56% 1.40% 1.35% 1.39% 2012 2013 2014 2015 2016 2017
Net change in fund balances $(97) $217 $(770) $60 $1,876 $(1,871) Source: City Finance Department
2017 2018 2019 2020 2021
$ 6,486 $ 7,131 $ 7,138 $ 6,878 $ 8,412
1,847 4,592 772 2,702 5,883
203 139 128 61 47
211 84 118 112 103
97 132 128 97 92
55 126 213 409 13
‐ ‐ 195 ‐ ‐
2,345 2,691 2,453 2,335 2,247
210 82 37 22 264
11,454 14,976 11,182 12,616 17,061
2,548 2,881 2,522 $ 2,094 2,256
4,233 4,383 4,189 5,029 4,094
1,902 1,947 1,968 1,901 1,847
1,011 1,201 1,050 846 4,368
‐ ‐ ‐ 186 93
‐ ‐ ‐ 475 478
1,992 3,780 282 1,975 415
127 169 169 180 38
21 17 17 5 0
11,834 14,378 10,197 12,691 13,589
$ (380) $ 598 $ 985 $ (75) $ 3,472
‐ ‐ ‐ 6 9
‐ ‐ ‐ ‐ ‐
3,775 2,944 2,830 616 866
(5,266) (3,843) (3,957) (2,190) (2,403)
(1,491) (898) (1,127) (1,568) (1,529)
$ (1,871) $ (300) $ (142) $ (1,643) $ 1,943

1.50% 1.75% 1.88% 1.73% 0.29%
2018 2019 2020 2021
$(300) $(142) $(1,643) $1,943
City of Fort Bragg, California
Governmental Fund Tax Revenue By Source
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(In Thousands)
(1) Decrease in property taxes beginning in fiscal year 2012 relates to the dissolution of the Redevelopment Agency. Upon the dissolution of the Redevelopment Agency on February 1, 2012, property taxes received by the Redevelopment Successor Agency are reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government.

Source: City Finance Department
9,000
TAX REVENUES BY SOURCE ‐

GOVERNMENTAL FUNDS
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property (1) Sales & Use Tax Transient Occupancy Tax Other Taxes Fiscal
Year
Ended Sales & Transient Other
June 30, Property (1) Use Tax Occupancy Tax Taxes Total 2012 1,413 2,271 1,411 859 5,954
2013 924 2,409 1,561 685 5,579
2014 943 2,445 1,668 754 5,810
2015 909 2,523 1,858 928 6,218
2016 1,007 2,458 1,948 894 6,307
2017 1,084 2,414 2,149 674 6,321
2018 1,035 2,705 2,619 719 7,078
2019 1,075 2,607 2,640 762 7,085
2020 1,157 2,743 2,204 775 6,879
2021 1,152 3,127 3,322 811 8,412
City of Fort Bragg, California
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2020‐21 2011‐12
Taxpayer Business Type Taxpayer Business Type
Arco Am/Pm Mini Marts Service Stations Amerigas Propane Energy Sales Canclini TV & Appliance Furniture/Appliance Canclini TV & Appliance Furniture/Appliance Chevron Service Stations Service Stations Chevron Service Stations Service Stations CVS Pharmacy Drug Stores Coast To Coast Hardware Bldg.Matls‐Retail Dollar Tree Stores Department Stores CVS Pharmacy Drug Stores Geo Aggregates Bldg.Matls‐Whsle Denny's Restaurant Restaurants Harvest Market Food Markets Fort Bragg Feed & Pet Miscellaneous Retail Kemppe Liquid Gas Energy Sales Harvest Market Food Markets Mcdonald's Restaurants Restaurants Kemppe Liquid Gas Energy Sales Mendo Mill & Lumber Company Bldg.Matls‐Retail Mcdonald's Restaurants Restaurants Mendocino County Horticulture Supply Florist/Nursery Mendo Mill & Lumber Company Bldg.Matls‐Retail O'Reilly Auto Parts Auto Parts/Repair Mendocino Coast Petroleum Energy Sales Purity Supermarket Food Markets Mendocino County Hydrogarden Florist/Nursery Redwood Coast Fuels Energy Sales O'Reilly Auto Parts Auto Parts/Repair Rino Service Stations Service Stations Rhoads Auto Parts Auto Parts/Repair Rite Aid Drug Stores Drug Stores Rite Aid Drug Stores Drug Stores Rossi Building Materials Bldg.Matls‐Retail Rossi Building Materials Bldg.Matls‐Retail Safeway Stores Food Markets Safeway Stores Food Markets Sinclair Service Stations Service Stations Sears Hometown Stores Furniture/Appliance Sport Chrysler‐Jeep‐Dodge Auto Sales ‐ New Speedex Service Station Service Stations Taco Bell Restaurants Sport Chrysler Jeep Dodge Auto Sales ‐ New The Brewery Shop Restaurants The Brewery Shop Restaurants True Value Hardware Bldg.Matls‐Retail Two Short Sales Bldg.Matls‐Whsle Two Short Sales Bldg.Matls‐Whsle Union 76 Service Stations Service Stations US Cellular Miscellaneous Retail Walsh Oil Company Energy Sales Source: MuniServices, LLC / Avenu Insights & Analytics
City of Fort Bragg, California
Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
CDTFA NAICS SECTOR 2021Q1 2020Q1 2019Q1 2018Q1
Accommodation and Food Services 218,812 260,642 268,897 282,205 Agriculture, Forestry, Fishing and Hunting 5,009 10,830 9,978 3,608 Arts, Entertainment, and Recreation 189 5,903 5,394 3,516 Construction 39,062 47,775 51,700 35,262
Educational Services 866 1,310 2,082 7,876
Information 7,167 7,601 9,327 5,569
Manufacturing 7,990 8,735 8,236 7,647
Mining, Quarrying, and Oil and Gas Extraction 63,955 82,665 86,275 73,796 Other Services (except Public Administration) 27,701 31,619 31,125 30,343 Professional, Scientific, and Technical Services 4,443 5,929 5,880 7,944 Real Estate and Rental and Leasing 4,056 2,239 2,712 2,455 Retail Trade 1,031,320 1,049,729 1,041,404 1,054,885
Utilities 3,129 5,050 5,121 4,702
All Other NAICS Sectors 23,238 21,472 21,428 21,025
TOTAL 1,436,936 1,541,499 1,549,559 1,540,834
Source: MuniServices, LLC / Avenu Insights & Analytics
2017Q1 2016Q1 2015Q1 2014Q1 2013Q1 2012Q1
261,139 233,034 218,376 201,158 199,988 188,756
7,451 11,516 6,866 2,625 2,972 1,293
3,469 3,454 4,002 4,407 3,829 3,702
34,305 36,459 34,464 30,004 26,029 21,042
7,499 8,318 6,932 7,927 3,006 844
4,825 4,031 6,163 7,182 7,828 8,571
6,312 4,704 4,951 4,444 6,102 11,320
56,363 62,526 80,000 113,954 112,609 122,744
31,197 31,897 31,049 27,496 27,573 26,934
7,989 8,627 8,693 7,599 7,836 9,433
2,525 2,525 2,944 2,893 3,394 2,795
987,126 989,036 982,987 979,802 989,267 991,459
5,430 4,696 3,743 3,570 4,800 5,370
18,791 18,414 8,834 5,016 4,953 1,184
1,434,421 1,419,237 1,400,004 1,398,075 1,400,186 1,395,447 City of Fort Bragg, California
Assessed Value and Estimated Actual Value of Taxable Property, City Wide Last Ten Fiscal Years
(In Thousands)
Fiscal Year
End Secured Property* Unsecured Property
Taxable
Assessed Value % Change
Total
Direct Tax
Rate (1)
Estimated Actual
Taxable Value (2)
Factor of Taxable
Assessed Value
(2)
2011‐12 $ 603,272 $ 29,066 $ 632,338 ‐8.5% 1.123000 710,404 1.123456 2012‐13 $ 579,450 $ 31,513 $ 610,963 ‐3.4% 1.113100 611,333 1.000606 2013‐14 $ 585,992 $ 29,641 $ 615,633 0.8% 1.125000 624,469 1.014352 2014‐15 $ 590,079 $ 31,347 $ 621,426 0.9% 1.127000 689,061 1.108838 2015‐16 $ 607,137 $ 31,275 $ 638,412 2.7% 1.132000 702,975 1.101131 2016‐17 $ 626,121 $ 32,889 $ 659,009 3.2% 1.133000 852,603 1.293765 2017‐18 $ 646,586 $ 32,288 $ 678,874 6.3% 1.133000 902,380 1.329231 2018‐19 $ 671,692 $ 31,556 $ 703,249 6.7% 1.138000 918,610 1.306238 2019‐20 $ 695,389 $ 33,240 $ 728,629 7.3% 1.131000 1,021,566 1.402039 2020‐21 $ 715,581 $ 33,149 $ 748,730 6.5% 1.124000 805,819 1.076248 Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics *Secured Property is net of all exemptions and includes Unitary value. (1.) Total tax rate is represented by TRA 001‐001.
(2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

Assessed Value Of Taxable Property
800000
700000
600000
500000
400000
300000
200000
100000
City of Fort Bragg, California
Assessed Value of Property by Use Code, City Wide
Last Nine Fiscal Years
(In Thousands)
Category 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 Residential 347,694 351,259 357,224 369,852 393,470 375,474 395,888 410,229 Commercial 164,165 165,103 163,032 167,141 150,666 153,767 156,832 160,042 Industrial 30,593 36,342 36,807 37,595 37,908 38,037 39,021 40,900 Miscellaneous 689 698 701 735 1,120 31,285 31,187 33,043 Vacant 21,552 18,931 18,682 18,963 21,162 21,817 23,423 24,116 Professional 0 0 0 179 9,804 19,769 20,036 20,413
Institution 3,931 4,024 4,285 4,513 4,515 3,761 2,691 3,926 Recreation 9,119 7,905 7,593 6,391 7,101 2,676 2,613 2,719 Agriculture 34 33 34 34 34 0 0 0
Unitary 543 542 543 543 340 0 0 0
Unknown 1,130 1,149 1,178 1,192 0 0 0 0
Net Secured Value 230,626 233,578 590,079 607,137 626,121 646,586 671,692 695,389 Unsecured 31,513 29,641 31,347 31,275 32,889 32,288 31,556 33,240 Net Taxable Value 262,139 263,219 621,426 638,412 659,009 678,874 703,249 728,629 Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Use code categories are based on Mendocino County Assessor's data 2020‐21 Assessed Value
Professional,
20,817 4,429
22,554 2,762
Miscellaneous,
33,941
39,219
Commercial,
163,238
Residential,
428,620
City of Fort Bragg
Direct and Overlapping Prope
Last Ten Fiscal Years
COUNTY GENERAL FUND 0.745000 0.745000 0.745000 0.745000 0.745000 0.745000 CITY OF FORT BRAGG 0.255000 0.255000 0.255000 0.255000 0.255000 0.255000 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
LOCAL SPECIAL DISTRICSTS 0.012000 0.012000 0.011000 0.026000 0.025000 0.018000 SCHOOLS 0.111000 0.119000 0.114000 0.101000 0.107000 0.115000 TOTAL 0.123000 0.131000 0.125000 0.127000 0.132000 0.133000 TOTAL TAX RATE 1.123000 1.131000 1.125000 1.127000 1.132000 1.133000 Source: Mendocino County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics Source: 2010‐11 and prior, previously published CAFR Report TRA 001‐001 isrepresented for thisreport
Rates are not adjusted for ERAF
2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17

0.745000 0.745000 0.745000 0.745000

0.255000 0.255000 0.255000 0.255000

1.000000 1.000000 1.000000 1.000000

0.026000 0.024000 0.024000 0.023000

0.107000 0.114000 0.107000 0.101000

0.133000 0.138000 0.131000 0.124000

1.133000 1.138000 1.131000 1.124000
2017‐18 2018‐19 2019‐20 2020‐21
City of Fort Bragg, California
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Taxpayer Taxable Value ($)
Percent of Total
City Taxable
Value (%)
Taxable Value
($)
Percent of
Total City
Taxable Value
(%)
Mendocino Railway 17,067,924 2.28%
RAP Investors LP 11,727,177 1.57% 5,390,174 0.86%
Boatyard Associates Phase II The 10,666,731 1.42% 9,105,795 1.45% Georgia Pacific LLC 8,856,946 1.18% 31,018,142 4.95%
Safeway Inc 7,148,356 0.95% 7,175,871 1.15%
North Coast Brewery 7,021,402 0.94% 2,716,933 0.43%
Anderson Logging 5,447,561 0.73% 3,315,398 0.53%
Colombi Jeanette Succttee 5,167,228 0.69%
Hurst Jason S 5,003,053 0.67%
Tanti Family II LLC 4,737,667 0.63%
Kao Kuami 4,684,566 0.63% 4,063,335 0.65%
Ansari Ghulam Murtaza & Tenzila 4,534,135 0.61%
Kashi Keshav Investments LLC 4,443,280 0.59% 4,289,706 0.68% Grosvenor Van Ness Associates 4,370,400 0.58% 3,730,800 0.60% Longs Drug Stores California LLC 4,073,878 0.54% 3,825,816 0.61% Ray Ronald R Ttee 4,023,757 0.54%
Fort Bragg Hotel LLC 3,773,139 0.50%
Keaton Richard J & Julie 3,379,927 0.45% 2,886,371 0.46% Fort Bragg Investments LLC 3,227,961 0.43%
Moura Senior Housing 2,846,694 0.38% 2,406,352 0.38%
Kemppe Liquid Gas Corporation 2,815,632 0.38%
RBJ & Associates LLC 2,764,254 0.37% 2,434,435 0.39%
Taubold Timothy E Ttee 2,694,373 0.36%
Miller Helen TTEE 2,678,667 0.36% 2,291,250 0.37%
Country Properties LLC 2,604,949 0.35%
Affinito Dominic J Juliette C 3,221,582 0.51%
Bell Ila Lynn Ttee 3,019,943 0.48%
Braxton Senior Living Property 3,351,253 0.53%
Colombi Robert Ttee 4,294,241 0.69%
Comcast 4,142,833 0.66%
Federal National Mortgage Asso 2,288,442 0.37%
Feil Scott E Diana E 5,955,220 0.95%
Hurst James C Barbara J Ttees 4,328,228 0.69%
North Otown Industrial Center 3,434,886 0.55%
Noyo Vista Inc. 2,846,204 0.45%
Tradewinds Lodge 7,190,604 1.15%
Total Top 25 Taxpayers 135,759,657 18.13% 128,723,814 20.54% Total Taxable Value 748,729,937 100.00% 626,654,379 100.00% Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics City of Fort Bragg, California
Property Tax Levies and Collections
For the last ten fiscal years
Fiscal
Year Taxes Levied
Collected within the
Fiscal Year of the Levy
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
2011 $ 299,429 $ 287,121 95.9%
2012 294,235 283,594 96.4%
2013 251,307 243,397 96.9%
2014 253,017 245,915 97.2%
2015 257,387 250,358 97.3%
2016 265,826 258,276 97.2%
2017 268,987 264,012 98.2%
2018 275,316 267,695 97.2%
2019 N/A N/A N/A
2020 N/A N/A N/A
Note: Mendocino County does not track collections of delinquent taxes by year in subsequent years.

Source: Mendocino County Auditor-Controller's Office
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$‐
2011 2012 2013 2014 2015 2016 2017 2018
Taxes Levied Taxes Collected
City of Fort Bragg, California
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(In Thousands, Except Per Capita Amount)
Governmental Activities Business-type Activities
Fiscal
Year
Ended
June 30,
Certificates of
Participation
Capital
Leases
Total
Governmental
Activities
Certificates of
Participation
Notes
Payable
Capital
Leases
2012 (2) $ 943 $ - $ 943 $ 3,237 $ 1,481 $ 626
2013 842 - 842 3,013 1,375 457
2014 777 - 777 3,217 1,314 367
2015 660 - 660 2,896 1,207 240
2016 539 539 2,578 1,102 123
2017 412 - 412 2,252 975 -
2018 280 - 280 1,913 846 -
2019 143 - 143 6,568 741 -
2020 - - - 6,182 633 -
2021 - - - 5,791 529 -
N/A indicates information is not available
(1) See Schedule of Demographic and Economic Statistics for personal and per capita data. (2) RDA bonds included from 2006 to 2011 are not included in 2012 and after due to the dissolution of the Redevelopment Agency.

Source: City Finance Department
Total
Business-type
Activities
Total
Primary
Government
Percentage
of Personal
Income (1)
Per
Capita (1)
$ 5,344 $ 6,287 4.4% $ 867
4,845 5,687 3.9% 778
4,898 5,675 3.7% 772
4,343 5,003 3.2% 681
3,803 4,342 2.7% 566
3,227 3,639 2.1% 474
2,759 3,039 1.7% 405
7,309 7,452 4.2% 992
6,815 6,815 3.6% 918
6,320 6,320 3.1% 853
City of Fort Bragg, California
Legal Debt Margin Information
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Dollars in thousands)
2012 2013 2014 2015 2016
Assessed Value $ 603,272 $ 579,450 $ 585,992 $ 590,079 $ 607,137 Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Value 150,818 144,863 146,498 147,520 151,784 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt limit 22,623 21,729 21,975 22,128 22,768
Total net debt applicable to limit - - - - -
Legal debt margin $ 22,623 $ 21,729 $ 21,975 $ 22,128 $ 22,768 Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0%
Notes: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

The City does not have any outstanding general obligation debt subject to the limit.

Source: City Finance Department
2017 2018 2019 2020 2021
$ 626,121 $ 646,586 $ 671,692 $ 695,389 $ 715,581
25% 25% 25% 25% 25%
156,530 161,647 147,520 173,847 178,895
15% 15% 15% 15% 15%
23,480
-
24,247
-
22,128
-
26,077 26,834
-
$ 23,480 $ 24,247 $ 22,128 $ 26,077 $ 26,834
0% 0% 0% 0% 0%
City of Fort Bragg, California
Direct and Overlapping Debt
Current Year
June 30, 2021
2020-21 Assessed Valuation: $ 748,746,723
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/2021 Redwoods Joint Community College District $ 23,865,000 4.059% $ 968,680 Fort Bragg Unified School District 40,687,337 37.771% 15,368,014 Mendocino Coast Hospital District 4,130,746 20.611% 851,388 City of Fort Bragg - 100% -
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 17,188,082
OVERLAPPING GENERAL FUND DEBT:

Mendocino County Certificates of Participation 14,710,000 5.925% $ 871,568 Mendocino County Pension Obligation Bonds 39,655,000 5.925% 2,349,559 TOTAL OVERLAPPING GENERAL FUND DEBT $ 3,221,127
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 3,180,000 100.000% 3,180,000

DIRECT DEBT

TOTAL OVERLAPPING DEBT
$ -
$ 23,589,209
COMBINED TOTAL DEBT $ 23,589,209 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2020-20 Assessed Valuation:

Direct Debt 0.00%
Total Overlapping Tax and Assessment Debt 2.30%
Combined Total Debt 3.15%
Ratiosto Redevelopment Successor Agency Incremental Valuation ($226,369,919) :

Total Overlapping Tax Increment Debt 1.40%
Source: MuniServices, LLC/ Avenu Insights & Analytics
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City of Fort Bragg, California
Pledged Revenue Coverage
For the Last Ten Fiscal Years
(Dollars in Thousands)
Fiscal
Business-type Activities
Water Fund Debt
Year Less: Net Total
Ended Revenues Operating Available Debt Service Debt
June 30, & Transfers Expenses 1 Revenue Principal Interest Service Coverage 2012 $ 2,044 $ 1,585 $ 459 $ 360 $ 158 $ 518 0.9
2013 2,420 1,623 797 327 151 478 1.7
2014 2,172 1,953 219 369 171 540 0.4
2015 2,595 1,806 789 493 147 640 1.2
2016 3,085 1,834 1,251 490 132 622 2.0
2017 3,534 1,378 2,156 505 75 580 3.7
2018 2,909 1,592 1,317 390 62 452 2.9
2019 3,077 1,480 1,597 395 53 449 3.6
2020 3,181 1,275 1,905 406 74 480 4.0
2021 3,660 1,303 2,357 410 65 475 5.0
1 Operating expenses exclude depreciation
Source: City Finance Department
Business-type Activities
Sewer Fund Debt
Less: Net Total
Revenues Operating Available Debt Service Debt
& Transfers Expenses 1 Revenue Principal Interest Service Coverage $ 2,943 $ 2,637 $ 306 $ 40 $ 19 $ 59 5.2
3,263 2,733 530 40 17 57 9.3
2,985 2,633 352 45 17 62 5.7
3,184 2,470 714 45 16 61 11.7
3,322 2,568 754 50 12 62 12.2
4,457 2,189 2,268 50 9 59 38.4
3,495 2,270 1,225 55 6 61 20.1
5,938 2,321 3,617 55 13 68 53.2
8,128 1,913 6,215 86 85 181 36.3
4,017 2,129 1,888 87 98 185 10.2
City of Fort Bragg, California
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Population (1)
Personal Income
(in thousands)
Per Capita Personal
Income (2) Median Age (3)
Public School
Enrollment
City Unemployment Rate (%)
(4)
2011‐12 7,255 143,775 19,817 40.5 1,904 10.8%
2012‐13 7,311 146,997 20,106 37.4 1,917 10.8%
2013‐14 7,350 153,410 20,872 36.8 1,870 8.7%
2014‐15 7,343 154,002 20,973 38.2 1,873 4.2%
2015‐16 7,672 160,798 20,959 38.5 1,934 4.5%
2016‐17 7,772 170,733 21,968 36.6 1,891 4.0%
2017‐18 7,512 175,523 23,366 40.0 1,920 3.0%
2018‐19 7,478 184,300 24,646 39.2 1,884 2.4%
2019‐20 7,427 190,379 25,633 39.8 1,911 13.0%
2020‐21 7,409 204,996 27,668 39.0 1,779 8.1%
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.

3.) Public School Enrollment is for the Fort Bragg Unified School District.

4.) Unemployment Data are provided by the EDD's Bureau of Labor Statistics Department.

Population
7790
7670
7550
7430
7310
7190
7070
6950
6830
$29,000
$27,000
$25,000
$23,000
$21,000
$19,000
$17,000
$15,000
Per Capita Personal Income
K‐12 Public School Enrollment
1950
1900
1850
1800
1750
1700
Average Unemployment Rate

0.14 0.12

0.1 0.08

0.06 0.04

0.02 City of Fort Bragg, California
Principal Employers
Last Fiscal Year and Seven Years Ago
2020‐21 2011‐12
Business Name
Percent of
Total
Number of Employment
Employees (%)
Percent of
Total
Number of Employment
Employees (%)
Mendocino Coast District Hospital 348 11.72% 350 11.74% Mendocino Coast ClinicsInc 120 4.04% 114 3.83%
Mendocino County** 108 3.64%
Sherwood Oaks Health Ctr 90 3.03% 92 3.09%
Fort Bragg Unified School District* 256 8.62%
Parents & FriendsInc 152 5.12%
Safeway 128 4.31%
North Coast Brewing CO Inc (1) 106 3.57% 85 2.85%
Anderson Logging Inc 77 2.59% 87 2.92%
Silver At The Wharf (Anchor Lodge) 73 2.46% 55 1.85%
City of Fort Bragg 53 1.78%
Ocean Fresh Seafood Products 90 3.02%
Caito Fisheries 90 3.02%
Skunk Train 44 1.48%
Total Top Employers 1,458 49.09% 1,060 35.57%
Total City Employment (2) 2,970 2,980
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2011‐12, previously published ACFR
Results based on direct correspondence with city’s local businesses. (1) Includessummer and seasonal employees
(2) Total City Labor Force provided by EDD Labor Force Data *Excludes non‐bargaining on callsubs or sports coaches. **Includes satellite offices of county departments.

City of Fort Bragg, California
Full-time and Part-time City Employees by Function (Full-Time Equivalent) Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government
Administrative Services 4.80 6.00 6.00 6.00 6.50 6.50 7.00 7.00 6.50 6.00 Finance 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 Public Safety
Police 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 Community Services
Community Development 3.80 3.80 4.30 4.00 4.30 4.50 4.80 4.80 4.30 4.00 Public works 12.60 12.60 13.60 12.60 12.80 12.80 14.00 14.00 12.80 13.00 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.00 Total 54.20 55.40 57.90 56.60 57.60 57.80 59.80 59.80 57.60 57.00 Source: City Finance Department
Full-time and Part-time City Employees by
Function (Full Time Equivalent) FY 2021
Administrative
Enterprise Funds Services

8.00 6.50
14% 11% Finance

4.00 7%
Public works

12.80 22%
Community
Development

4.30 8%
Police

22.00 38%
City of Fort Bragg, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 Building Permits Issued 210 125 272 192 141 122 162 194 141 New Construction 3 27 2 7 6 4 9 12 N/A
Single Family Residentia 2 0 0 0 2 0 5 4 2
Second Unit 1 1 1 1 3 4 4 8 3
Mixed Use, Commercial & Residential 0 0 0 2 1 0 0 4 1
Multi-Family Residentia 0 0 1 0 0 0 0 2 0
Low Income Residentia 0 0 0 4 0 0 0 0 0
City Clerk
Council/Agency Resolutions Passed 108 93 87 127 98 122 121 92 98 Number of Ordinances Passed 9 2 4 3 5 6 8 9 5
Number of Contracts Approved 32 29 31 30 69 74 105 71 69 Number of PRA Requests Processed 33 26 35 74 73 79 146 145 N/A Public Safety
Traffic Accidents 139 163 174 172 221 160 145 147 221
Traffic Violations - DUI 33 62 45 26 28 45 49 40 28
Bookings 608 744 689 737 668 619 795 625 668
Moving Cites 841 1,001 1,614 949 498 344 428 368 498
Parking Cites 374 355 833 484 835 842 941 869 835
Field Interviews and Information Cases 1,450 2,211 1,301 1,217 1,403 1,936 1,289 1,217 Crime Reports 1,454 1,610 1,576 1,317 1,501 1,496 1,554 1,262 1,501 Fire 1
Total Number of Calls 632 500 525 617 579 665 626 752 579 Structure Fires 27 29 29 21 29 38 10 37 29
Vehicle Fires 9 9 17 9 3 16 5 4 3
Vegetation Fires 29 25 41 40 31 33 23 40 31
Misc Fires (Chimney, Debris, Electronically, etc.) 17 24 17 36 18 81 80 36 Medical Aid 209 110 142 163 150 199 197 248 150
Rescue 129 11 13 10 22 16 11 7 22
Hazardous Condition/Materials Calls 46 73 48 41 70 75 58 73 70 Mutual Aid/Agency Assist 6 3 9 12 18 23 18 12
Traffic Accidents 88 89 98 133 98 115 100 133
Services Call 115 128 117 96 91 80 99 126 91
Other Calls & Incidents 68 4 2 113 2 74 4 19 2
Water
Number of customer accounts billed 32,523 33,924 32,300 33,716 33,671 33,873 34,146 33,339 33,671 Water annual demand in thousand gallons 2,312 2,255 2,245 2,044 189,500 197,600 210,200 208,015 1,895 Available supply of water in thousand gallon 3,066 2,574 2,490 2,398 2,080 21,300 21,300 22,400 20,800 total Customer service calls 1,448 1,439 1,254 1,177 1,253 1,253 1,193 1,488 1,253 Meter installs/removals/change outs 40 2 11 14 16 14 24 13 16 Meter repairs 2 44 1 8 1 34 5 23 1
Leak investigations 16 21 3 6 11 34 29 61 11
Service profiles 81 93 52 57 65 31 63 61 65
Turn on/off 1,267 1,248 139 508 669 878 891 1,099 669
Manual Reads 565 527 513 453 416 444 126 111 416
Misc. 36 33 49 60 75 53 55 68 75
Wastewater
Customer service calls, wastewater 37 52 71 41 52 43 33 36 52 New customer sewer lines installed 0 2 2 3 1 4 0 2 1
Sewer mains cleaned/flushed in miles 19 18 14 15.5 15 17.38 16 18 15 Sewer mains and laterals repaired in number of jobs 34 0 8 16 11 12 9 8 11 Sewer manholes inspected 373 371 362 363 363 374 374 374 363 Sewer manholes installed 1 0 0 0 0 0 0 0 0
Sewerspill responses 1 3 7 7 5 1 1 2 5
1 The governing agency offer the Fort Bragg Volunteer Fire Department is the Fort Bragg Fire Protection Authority Joint Powers Agreement (JPA). The JPA is a board of directors formed in the 1989-90 fiscal year. It consists of two members from the Fort Bragg City Council appointed by the City's mayor, two members from the Fort Bragg Rural Fire District Board appointed by their chairman, and an "At Large" member appointed by the other four members. The City of Fort Bragg is responsible for 50% of the Fire Department budget.
2 In some categories historical information is not available Source: Operating indicators were provided by the various operating departments.

City of Fort Bragg, California
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police :

Stations 1 1 1 1 1 1 1 1 1 1
Public works
Streets(miles) 26.4 26.4 26.4 26.4 26.4 26.4 27.2 27.2 26.4 26.4 Alleys (miles) 19 19 19 19 19 19 19 19 19 19
Storm drains (miles) 10 10 10 10 10 10 10 10 10 10
Streetlights 725 725 725 725 725 725 744 744 725 725
Sidewalks 40 40 40 40 40 40 40 40 40 40
Water
Water treatment plant 1 1 1 1 1 1 1 1 1 1
Water mains (miles) 30 30 30 30 30 30 30.5 30.5 30 30
Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.75 5.75 5.85 5.85 5.75 5.75 Wastewater
Wastewater treatment plant 1 1 1 1 1 1 1 1 1 1
Sanitary sewers (miles) 27 27 27 27 27 27 27 27 27 27
Parks and Facilities
Parks 3 3 3 4 4 4 5 2 4 4
Recreational/Guest Facilities 3 3 3 3 3 3 3 3 3 3
Government Facilities 2 2 2 2 2 2 2 2 2 2
Source: City Finance, Public Works and Planning Departments This page intentionally left blank.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Accrual Basis - A basis of accounting in which revenues and expenditures are recorded at the time they occur as opposed to when cash is actually received or spent.

Adjusted Budget - The adopted budget plus any modifications (increases, decreases and transfers) approved by the City Council during the fiscal year.

Allocation of Funds - A legal authorization granted by the City Council to make expenditures of resources and to incur obligations for a specific purpose.

Appropriation - Setting aside funds for a specific purpose or program. An allocation of funds makes them available for expenditure.

Appropriation Without Regard To Fiscal Year– An appropriation for a specific amount that is available from year to year until fully expended. Example: capital projects and grants appropriated for the total amount of the project or grant often span more than one fiscal year eliminating the need to re-appropriate them each year.

Arbitrage -The difference between the interest paid on the tax-exempt securities and the interest earned by investing the security proceeds in higher-yielding taxable securities. IRS regulations govern arbitrage on the proceeds from issuance of municipal securities.

Assessed Valuation - The valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes.

Assessed Valuation (Secured) - That part of the assessment roll property the taxes on which are a lien on real property sufficient to secure payment of taxes.

Assessed Valuation (Unsecured) - The remainder of the assessment roll that is not on the secured roll. The taxes on the unsecured roll are a personal liability of the assessed owner.

Attrition - A method of achieving a reduction in personnel by not refilling the positions vacated through resignation, reassignment, transfer, retirement, or means other than layoffs.

Audit - An examination performed by an independent certified public accountant to determine the accuracy and validity of records and reports or the conformity of procedures with established policies.

Authorized Positions - Employee positions authorized in the adopted budget which will be filled during the year.

Balloon Maturity - A later maturity within an issue of bonds which contains a disproportionately large percentage of the principal amount of the original issue.

Balanced Budget – A balanced budget in governmental funds requires operating revenues to fully cover operating expenditures. A balanced budget in the enterprise funds requires that there are enough revenues to pay operating expenses exclusive of depreciation and debt service.

Betterment - An addition made to, or changes made in, a fixed asset that will either increase the useful life of the asset or increase its efficiency.

Bond - A long-term promise to repay a specified amount (the face amount of the bond) on a particular date (the maturity date). The most common types of bonds are general obligation and revenue bonds.

Bonds are primarily used to finance capital projects.

GLOSSARY OF FINANCIAL TERMS

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Bond Refinancing - The complete or partial payoff of one bond issue and re-issuance of another bond, to obtain better interest rates and/or bond conditions.

Budget - A plan of financial activity for a specified period of time (fiscal year or biennium) indicating all planned revenues and expenses for the budget period and matching those projected revenues and planned expenditures to municipal services, goals, and objectives.

Budget Adjustment - A financial planning tool that allows the City to amend or supplement the budget at any time after it is adopted as circumstances may change throughout the fiscal year. It may be used to create a budget for a new account established after the beginning of a new fiscal year, and it may also be used to transfer funds between general fund accounts belonging to the same chart of accounts Budget Calendar - A schedule of key dates a government follows in the preparation and adoption of the budget.

Budget Document - The instrument used by the budget-making authority to present a comprehensive financial program to the City Council.

Budget Surplus - The difference between operating revenues and operating expenditures. The Budget Surplus may be used for ongoing expenses (as opposed to year-end balance, which may be used only for one-time expenses).

California Environmental Quality Act (CEQA) – A state statute enacted in 1970 that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible (ceres.ca.gov/ceqa).

California Transportation Commission (CTC) – the agency responsible for programming and allocating funds for the construction of highway, passenger rail and transit improvements throughout California (www.catc.ca.gov)
Callable - A portion of a bond due to be repaid before the specified due date in the bond contract.

Capital Assets - Assets of significant value and having a useful life of several years. Capital assets are also referred to as fixed assets.

Capital Grants - External grants that are restricted by the grantor for the acquisition and/or construction of fixed assets.

Capital Equipment - Equipment (fixed assets) with an initial individual cost of $5,000 or more and an expected useful life greater than two years, such as automobiles, microcomputers and furniture.

Capital Improvement - Expenditures related to the acquisition, expansion or rehabilitation of an element of the government’s physical plant; sometimes referred to as infrastructure.

Capital Improvement Program (CIP) - A plan for capital outlay to be incurred each year over a fixed number of years to meet capital needs arising from the government’s long-term needs.

Capitalized Interest - A portion of the proceeds of an issue which is set aside to pay interest on the securities for a specific period of time. Interest is commonly capitalized for the construction period of the project.

Capital Expenditure/Outlay – Expenditure for tangible property with an initial cost of $5,000 or more and have a useful economic lifetime of more than one year.

Capital Project - Major construction, acquisition, or renovation activities which add value to a government’s physical assets or significantly increase their useful life, also called capital improvements.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Capital Projects Fund - A fund created to account for all resources and expenditures used for the acquisition of fixed assets except those financed by enterprise funds.

Call Provisions - The terms of the bond contract giving the issuer the right to redeem all or a portion of an outstanding issue of bonds prior to their stated dates of maturity at a specific price, usually at or above par.

Capital Reserve - An account used to segregate a portion of the City’s equity to be used for future capital replacement purposes.

Certificates Bullet Maturity - A maturity for which there are no sinking fund payments prior to the stated maturity date.

Certificates of Participation (COP) - A bond from an issue, which is secured by lease payments made by the party leasing the facilities, financed by the issue. Typically, COPs are used to finance construction of facilities (e.g., infrastructure or buildings) used by a municipal agency, which leases the facilities from a financing authority. Often the agency is legally obligated to appropriate moneys from its general tax revenues to make lease payments.

City Council - Comprised of the Mayor and four City Councilmembers who are elected at large by registered voters of the City. Councilmembers each serve a four-year term and the mayor serves a two-year term. The City Council adopts legislation, sets policy, adjudicates issues and establishes the budget of the City.

Community Development Block Grant - CDBG – provides eligible cities and urban counties with annual direct grants to revitalize neighborhoods; expand affordable housing and economic opportunities; and/or improve community facilities and services, principally to benefit low- and moderate-income persons.

Comprehensive Annual Financial Report - CAFR – the summarization of the City's financial activity for the previous fiscal year which also includes a summarization of significant milestones that were accomplished during the year by department, fiscal policies, and statistical information. The CAFR is prepared by December of each year.

Competitive Sale - A sale of securities by an issuer in which underwriters or syndicates of underwriters submit sealed bids to purchase the securities in contrast to a negotiated sale.

Consumer Price Index (CPI) - A statistical description of price levels provided by the US Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation).

Continuing Disclosure - The principle that accurate and complete information material to the transaction which potential investors would be likely to consider material in making investment decisions with respect to the securities be made available on an ongoing basis.

Contingency Reserve - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.

Contractual Services - Services rendered to a government by private firms, individuals, or other governmental agencies.

Contributed Capital - An equity account recording resources externally restricted for the acquisition or construction of capital assets, including Capital Grants, contributions from developers and customers, and tax levies restricted to capital purposes. The account also records current resources furnished to an internal service fund for working capital.

Cost Allocation - A method used to charge General Fund costs budgeted in one department to another department or another fund.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Credit Enhancement - Credit support purchased by the issuer to raise the credit rating of the issue.

The most common credit enhancements consist of bond insurance, direct or standby letters of credit, and lines of credit
Cost-of-living Adjustment (COLA) - An adjustment in salaries to offset the adverse effect of inflation on compensation.

Council/Manager - Form of Government where the City Manager is an employee of the Council who is the administrator of the city.

Debt Service - Payment of interest and principal on borrowed money according to a predetermined payment schedule.

Debt Service Reserve Fund - The fund in which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements.

Dedicated Tax - A tax levied to support a specific government program or purpose.

Department - The basic unit of service responsibility, encompassing a broad mandate of related service responsibilities.

Depreciation - The process of estimating and recording the expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. The cost of the fixed asset’s lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its useful life.

Disbursement - The expenditure of monies by cash from an account.

Discretionary Funding Opportunities - Pertains to funds, grants or other resources that are not restricted as to use.

Discount Bonds - Bonds which are priced for sale at a discount from their face or par value.

Division - Can be a subunit of a department which encompasses a substantial portion of the duties assigned to a department
Encumbrance - An amount of money committed for the payment of goods and services not yet received or paid for.

Enterprise Fund - A proprietary accounting fund in which the services provided are financed and operated similarly to those of a private business. The rate schedule for these services is established to ensure that revenues are adequate to meet all necessary expenditures.

Environmental Impact Report - EIR – a public document used by governmental agencies to analyze the significant environmental effects of a proposed project, to identify alternatives and disclose possible ways to reduce or avoid potential environmental damage. The California Environmental Quality Act requires an EIR whenever the initial study or other evidence in the record has produced substantial evidence that the proposed project might produce significant environmental effects.

Escrow - A fund established to hold moneys pledged and to be used to pay debt service on an outstanding issue.

Expenditure - The actual payment for goods and services.

Expense - Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges.

Face Value - The amount of principal that must be paid at maturity for a bond issue.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Fees - A general term used for any charge levied by government for providing a service or permitting an activity.

Fiscal Year - A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The City of Fort Bragg’s budget year begins on July 1 and ends on June

30. Fixed Assets - Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.

Full Faith and Credit - A pledge of a government’s taxing power to repay debt obligations.

Full-time Equivalent Position (FTE) - A full-time or part-time position converted to the decimal equivalent of a full-time position based on 2,088 hours per year. For example, a part-time person working 20 hours per week would be the equivalent of 0.5 of a full-time position.

Fund - A self-balancing set of accounts to record revenues and expenditures associated with a specific purpose.

Fund Balance – Net position of a governmental fund (difference between assets, liabilities, deferred outflows of resources, and deferred inflows of resources).

Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.

Gas Tax - State tax received from gasoline sales utilized solely for street related purposes, such as new construction, rehabilitation or maintenance.

General Fund - The principal operating fund of the City used for general governmental operations (as opposed to all other City funds, which are designated as “Special Funds”) ... Taxes and fees that generally have no restriction on their use support it.

General Obligation (G.O.) Bonds - This type of bond is backed by the full faith, credit and taxing power of the government issuing it.

General Plan - A comprehensive, long-range, policy document required by state law. The document establishes the City’s overall spatial and temporal development pattern.

Geographical Information System (GIS) – A computer system capable of assembling, storing, manipulating and displaying geographically referenced information.

Government Finance Officers Association (GFOA) - Professional association of state/provincial and local finance officers in the United States and Canada (www.gfoa.org).

Government Accounting Standards Board (GASB) – Organized in 1984 by the Financial Accounting Foundation to establish standards of financial accounting and reporting for state and local governmental entities (www.gasb.org).

Governmental funds – Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

HOME Program - Federal housing assistance program that provides funds to low- and very lowincome families for both rental units and privately owned dwellings.

Improvement - This refers to permanent items that are purchased or constructed and are attached to land or annexations to land which are intended to remain attached or annexed.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Indirect Cost - A cost necessary for the functioning of the organization as a whole, but which cannot be identified with a specific product, function or activity.

Infrastructure - The physical assets of a government (e.g. streets, water, sewer, public buildings, and parks).

Interfund Transfers - The movement of monies between funds of the same governmental entity.

Intergovernmental Revenues - Funds received from federal, state and other local government sources in the form of grants, entitlements, shared revenues, or payments in lieu of taxes.

Internal Service Charges - The charges to user departments for internal services provided by another government agency, or department of the same agency.

Internal Service Fund - A fund used to account for the financing of goods or services provided to other funds, departments or governments on a cost reimbursement basis.

Lease-Purchase - A financing lease which may be sold publicly to finance capital equipment, real property acquisition or construction. The lease may be resold as certificates of participation or lease revenue bonds.

Letters of Credit - A bank credit facility wherein the bank agrees to lend a specified amount of funds for a limited term.

Level of Services - Generally used to define the existing or current services, programs and facilities provided by government.

Levy - To impose taxes, special assessments or services for the support of governmental activities.

Local Agency Formation Commission (LAFCO) – Reviews proposals for the formation of new local governmental agencies and changes of organization in existing agencies.

Local Agency Investment Fund (LAIF) – A voluntary program created by statute in 1977 in which participating agencies (local governments and special districts) invest public funds.

Long-term Debt - Debt with a maturity of more than one year after the date of issuance.

Major Fund - A fund that comprises more than 10% of total citywide budgeted revenues and transfersin and/or 10% of total budgeted appropriations and transfers-out.

Mandates - A legal obligation.

Management Fee - The fixed percentage of the gross spread which is paid to the managing underwriter for the structuring phase of a transaction.

Memorandum of Understanding (MOU) – An agreement outlining the terms of employment entered into between the City and employees of various bargaining units.

Mission Statement – A broad statement of the intended accomplishment or basic purpose of a program.

Modified Accrual Accounting - A basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, or measurable, except for un-matured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. Since this type of accounting basis is a conservative financial approach, it is recommended as the standard for most governmental funds.

Negotiated Sale - A method of sale in which the issuer chooses one underwriter to negotiate terms

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
pursuant to which such underwriter will purchase and market the bonds.

Obligations - Amounts that a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid.

Operating Budget - The portion of the budget that pertains to daily operations that provide basic governmental services.

Operating Expenses - The cost for administration, personnel, maintenance, material, depreciation, and equipment required for a department to function. The day-to-day costs of delivering City services.

Operating Revenue - Funds that the City receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenue. They are used to pay for day-to-day services.

Ordinance - A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a State statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies.

Original Issue Discount - The amount by which the original par amount of an issue exceeds its public offering price at the time it is originally offered to an investor.

Overlapping Debt - That portion of the debt of other governmental units for which residents of a particular municipality are responsible.

Pay-As-You-Go - An issuer elects to finance a project with existing cash flow as opposed to issuing debt obligations.

Pavement Management System (PMS) – A computer-assisted decision-making process designed to help cities and counties prevent pavement problems through maintenance and repair in a timely, cost-effective manner.

Pavement Quality Index (PQI) – A scale from 1 to 10 that measures the structure, surface condition and riding comfort of the roadway.

Performance Budget - A budget wherein expenditures are tied to the measurable performance of activities and work programs.

Performance Measurements - Statistical measures that are collected to show the impact of dollars spent on City services.

Personnel Expenses - Salaries and fringe benefits, such as pensions and insurance, for full-time and part-time employees of the City.

Present Value - The current value of a future cash flow.

Prior-Year Encumbrances - Obligations from previous fiscal years, in the form of purchase orders or contracts, which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated.

Program - Represents major areas or support functions that can be defined as a service provided to citizens, other departments or other agencies. A program may be an entire department; or if a department encompasses significantly diverse responsibilities or large work forces, a single department may be divided into two or more programs.

Program Budget - A budget wherein expenditures are displayed primarily on programs of work and secondarily by the character and object class of the expenditure.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Property Tax - An ad valorem (value-based) tax imposed on real property and tangible personal property within the City’s jurisdiction. It includes two major elements: secured or real property (e.g., house and land on which the house was built), and unsecured or personal property (e.g., machinery).

Proposition 13 - On June 6, 1978, the California electorate approved Proposition 13, the “People’s Initiative to Limit Property Taxation,” which limited the tax rate for real estate as follows: the maximum amount of any tax on real property shall not exceed 1% of the full cash value of such property.

Proposition 218 - On November 5, 1996, the California electorate approved Proposition 218, the selftitled “Right to Vote on Taxes Act.” Proposition 218 added articles XIIIC and XIIID to the California Constitution and made numerous changes to local government finance law. Public officials are required to conduct the public’s business in compliance with Proposition 218.

Public Employees’ Retirement System (PERS) – Provides retirement and health benefit services to members from the state, school districts and local public agencies (www.calpers.ca.gov).

Ralph M. Brown Act - The Brown Act is a California law that insures the public can attend and participate in meetings of local government.

Rebate - A requirement imposed by Tax Reform Act of 1986 whereby the issuer of the bonds must pay the IRS an amount equal to its profit earned from investment of bond proceeds at a yield above the bond yield calculated pursuant to the IRS code together with all income earned on the accumulated profit pending payment.

Redevelopment Agency (RDA) – Formerly charged with the oversight for the redevelopment process for the City of Fort Bragg. In June 2011, the Redevelopment Dissolution Act, AB1x26, was signed by the Governor and later upheld by the California Supreme Court. As a result, all redevelopment agencies in California were dissolved effective February 1, 2012.

Regional Surface Transportation Program (RSTP) – a federal and State funded grant program used for projects located on highway systems (classified higher than local roads or rural minor collectors), bridges on any public highway, and transit systems.

Reserve - An account used to either set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose.

Resolution - A special or temporary order of a legislative body--an order of a legislative body requiring less legal formality than an ordinance or statute.

Resources-Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances.

Revenue - Sources of income financing the operations of government.

Revenue Bonds - A type of bond that is backed by the revenues from a specific enterprise or project, such as a water utility.

Sales & Use Tax - An excise tax which applies to all retail sales of merchandise. Retailers are liable for reporting and payment of the tax.

Special Assessments - Fees imposed against properties, which have received a special benefit by the construction of public improvements such as water, sewer and irrigation.

Special Revenue Fund - A governmental accounting fund used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes.

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget
Taxes - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those who pay, for example, sewer service charges.

Transfers In/Out - A transfer of resources between different City funds (see glossary definition of “Fund”). A transfer of cash from the City’s General Fund to a City Special Fund, for example, would be designated as a transfer-out in the General Fund, and then a transfer-in in the receiving Special Fund.

Transient Occupancy Tax (TOT) - A tax applied to the cost of hotel or other lodging stays of less than 30 days. Also known as Hotel or Bed Tax.

Transportation Subventions - Funds from outside sources used to construct transportation improvements that must be used for specific projects.

Trust and Agency Fund - A fiduciary accounting fund used to account for cash and other assets received and held by the City acting in the capacity of trustee or custodian.

Underwriter - A dealer that purchases new issues of municipal securities from the Issuer and resells them to investors.

Underwriter's Discount - The difference between the price at which bonds are bought by the Underwriter from the Issuer and the price at which they are reoffered to investors.

Unencumbered Appropriation - That portion of an allocation not yet expended or committed to a specific purpose.

Unexpended Appropriation - That portion of an allocation not yet actually paid.

Unencumbered Balance - The amount of an appropriation that is neither expended nor encumbered.

It is essentially the amount of money still available for future purposes.

Unreserved Fund Balance - The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation.

User Charges - The payment of a fee for direct receipt of a public service by the party who benefits from the service.

Utility Fund - See Enterprise Fund.

Variable Rate Debt - An interest rate on a security, which changes at intervals according to an index or a formula or other standard of measurement, as stated in the bond contract.

Year-End Surplus - Funds remaining at the end of a fiscal year that are available for allocation or for one-time purchases (not for on-going programs or services).

GLOSSARY OF FINANCIAL TERMS
City of Fort Bragg ~ FY 2022/23 Proposed Budget