ADOPTED
BUDGET
FY 2022/23
CITY OF FORT BRAGG
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 11, 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 tourist’s travel during the beginning of the pandemic but over the winter months we have witness 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 work-shop we have received four loan applications and four to five business are now interested in locating in the vacant buildings along Franklin street and Laura.
Our Police Department received grants this year that positively off-set our budget to help with 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 national and as a result risk management insurance cost have increased by 20%. According to i
Avenue-Insight, 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 adopted expenditure budget (excluding transfers) for FY 2021/22 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 adopted 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 adopted 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).
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %
FYE FYE AMENDED FYE ADOPTED INCR/
ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Salaries & Wages $ 5,329,152 $ 4,145,994 $ 5,708,181 $ 5,687,780 $ 6,451,929 13.4% Benefits 2,927,333 2,786,360 3,194,292 2,995,196 2,775,590 -7.3% Materials & Services 5,490,273 8,471,390 12,773,447 10,193,142 12,500,233 22.6% Capital 2,034,921 348,863 13,792,494 6,635,782 12,748,078 92.1% Debt Service 344,730 201,506 675,067 675,071 1,568,405 132.3% Depreciation 1,480,735 1,916,414 - - - 0.0%
Subtotal 17,607,143 17,870,527 36,143,481 26,186,971 36,044,236 37.6% Indirect Expenses 1,983,286 $ 2,042,842 $ 2,327,121 $ 2,033,891 2,394,080 17.7% Fiduciary Funds 225,874 $ 474,581 $ 382,426 $ 379,926 383,375 0.9% Subtotal 19,816,303 20,387,951 38,853,028 28,600,788 38,821,692 35.7%
SUMMARY OF EXPENDITURES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23
ALL FUNDS
ii
The adopted budget continues to allocate funds towards the Section 115 trust to be act as a cushion for any future declines in CalPERS Discount Rate which will further increase the Unfunded Liability.
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 iii
General Fund Budget
The General Fund is projected to have $11,130,495 of revenues in FY 2022/23 and expenditures of $10,955,185, 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 adopted 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 ADOPTED 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 2,652,693 -8% 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 10,269,053 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 10,955,185 5% Net Transfers - - - - - 0%
TOTAL $ 9,315,549 $ 8,367,408 $ 10,727,480 $ 10,389,873 $ 10,955,185 5% iv
Additionally, the adopted 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
v
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 have their one or two priorities that they are passionate about and I want to take 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 resource, to assist them hence we rely on grants and support form out 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.
Respectfully Submitted,
David Spaur
Interim City Manager
vi
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 ADOPTED BUDGET
Budget Document Producers
Budget Team Isaac Whippy Assistant Finance Director
Laura Bianchi-Limbird Government Accountant I
Adriana Moreno Ramos Finance Technician I
Alexandria Rhodes 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 ...................................................................................................... 24
SUMMARY
Summary of Revenue, Expenditures and Fund Balance ............................................. 30 Budget Summary – All Funds ...................................................................................... 33 Budget Summary – General Fund .............................................................................. 41 Long-Term Financial Planning ....................................................................................... 56 Operating Transfers .................................................................................................... 59 Cost Allocation Plan ... ………………………………………………………………………. 61 Ten Year City Authorized Position Staffing Comparison ............................................ 70 Ten Year Authorized Staffing Comparison Graph ....................................................... 71 Appropriations Limit .................................................................................................... 72 OPERATING BUDGET DETAIL
City Council ................................................................................................................. 74 Administration ............................................................................................................. 79 Administrative Services Office
City Attorney's Office
City Clerk's Office
Fort Bragg Tourism Marketing & Promotions .............................................................. 86 Finance ........................................................................................................................ 89 Non-Departmental ....................................................................................................... 95 Community Organizations
Caspar Closure & Landfill
Other Non-Departmental
Public Safety ............................................................................................................. 100 Police Department
Fire Protection District
Community Development Department ...................................................................... 113 Public Works ............................................................................................................. 119 Internal Service Funds .............................................................................................. 131 Facilities Repair & Maintenance
Technology Maintenance & Replacement
Fleet & Equipment Services
Debt Management Policy & Summary ........................................................................ 145 Interfund Loan Policy & Summary
TABLE OF CONTENTS
ENTERPRISE FUNDS DETAIL
Water Enterprise ......................................................................................................... 155 Wastewater Enterprise ................................................................................................. 163 C.V. Starr Community Center ...................................................................................... 170 SPECIAL REVENUE FUNDS
Grants .......................................................................................................................... 174 Special Revenue Funds ............................................................................................... 180 Fort Bragg Redevelopment Successor Agency ........................................................... 183 CAPITAL IMPROVEMENT PROGRAM
Capital Improvement Program Overview ..................................................................... 188 FY 2022/23 to FY 2026/27 Projects by Category ........................................................ 190 FY 2022/23 to FY 2026/27 Projects by Funding Source .............................................. 191 Detail ............................................................................................................................ 193
STATISTICS
Glossary .................................................................................................................... 250
GLOSSARY
StatisticalDetail ............................................................................................................ 214 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 2022/23 budget will again be submitted to the GFOA, and we are confident that we will once again achieve the award.
GUIDE TO THE DOCUMENT
_______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
USERS GUIDE TO THE BUDGET _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
BUDGET ORGANIZATION
The FY 2022/23 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.
USERS GUIDE TO THE BUDGET _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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.
USERS GUIDE TO THE BUDGET _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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.
USERS GUIDE TO THE BUDGET _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 61-68.
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 2022. 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.
USERS GUIDE TO THE BUDGET _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
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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 - OVERVIEW _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 - OVERVIEW _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
CITY OF FORT BRAGG - OVERVIEW _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
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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
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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
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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."
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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
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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.
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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.
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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 Adopted 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.
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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.
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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 Adopted 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 Adopted 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 Adopted 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
_______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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.
INVESTMENT POLICY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
Ethic and Conflicts of Interest
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.
INVESTMENT POLICY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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.
INVESTMENT POLICY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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.
INVESTMENT POLICY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
_______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
CITY OF FORT BRAGG
FY 2022/23
ADOPTED BUDGET
SUMMARY SCHEDULES
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 $ 10,955,184 (255,165) $ 683,939 $ 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 - - 57,830 547,759114 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 10,955,184 - 3,624,988 116 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 - - 129,739124 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 - - - 7,028 162 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) 1,613 315 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 Adopted 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 164,796 384,676 665,201 204,600 88,871 409,513 549,021 160,050 109,414 Total Internal Service Funds 866,297 1,001,497 1,388,842 187,539 666,490 1,082,470 1,270,398 (219,950) 258,613 610 Water Enterprise O&M 142,620 3,142,991 2,229,729 - 1,055,881 2,998,842 2,792,652 (506,681) 755,390640 Water Enterprise Capacity Fees 582,749 16,199 - - 598,947 23,500 - - 622,447614 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 - (2,754,457) 2,174,537 651 Water Capital Projects 180,969 2,000,000 3,597,000 1,597,000 180,969 850,000 8,117,000 7,086,031 - Total Water Enterprise Unrestricted Net Position 7,478,579 5,184,389 5,826,729 - 6,836,239 3,922,642 10,909,652 3,874,500 3,723,729 710 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 - - - 2,795740 Wastew ater Enterprise Capacity Fees 697,560 10,352 - - 707,912 20,000 - - 727,912712 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) 1,527,432716 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) 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 1,978,513 292,472 2,128,507 2,502,874 (81,895) 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 1,978,513 - 1,781,478 2,128,507 2,502,874 - 1,407,111 Total Enterprise Funds 12,276,915 10,856,284 11,313,860 - 7,184,499 9,312,199 16,572,733 3,694,000 3,987,664 Total - All Funds 20,937,284 $ 27,852,009 $ 28,217,799 $ - $ 15,186,654 $ 35,116,834 $ 38,435,217 $ - $ 12,237,970 $ 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) City of Fort Bragg FY2022/23 Summary of Revenue, Expenditures & Fund Balance Capital Project Funds:
Internal Service Funds*
Enterprise Funds*
FY 2022/23 Budget
FY 2022/23 BUDGET FY 2021/22 BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
INTRODUCTION
The City of Fort Bragg's combined annual budgeted appropriations for FY 2022/23 is $37.7 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 Adopted Budget
ALL FUNDS – FUND BALANCE
The FY 2022/23 projected All Funds year-end fund balance is $12.9 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 Budget is estimated at approximately $2.06M.
FY 2022/23
ADOPTED
Total All Funds Balance $ 12,237,970
Less Nonspendable (inventory, e 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 2,191,037
Water Operating Reserve 755,390
Wastewater Operating Reserve 702,400
General Fund Recession Reserve 547,759
Water Recession Reserve 139,387
Wastewater Recession Reserve 108,018
Water Capital Reserve 2,174,537
Wastewater Capital Reserve 1,527,432
Capital Projects in Process (5,267)
CV Starr Reserves 1,407,111
Internal Service Fund Reserves 258,613
Litigation Reserve 200,000
WWTP Debt (4,206,156)
Unassigned/Unrestricted Balance $ 2,037,093
FY 2022/23
Detail of Unassigned/Unrestricted Balance: ADOPTED
General Fund $ 683,939
Water Enterprise 622,447
Wastewater Enterprise 730,707
Total Unassigned/Unrestricted Balance $ 2,037,093
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 ADOPTED
FY 2020/21 FY 2021/22 FY 2022/23
ALL FUND BALANCE TRENDS
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
DISCUSSION OF REVENUE TRENDS - ALL MAJOR FUNDS
Overall, the City's revenues are estimated to increase by 31%, or $7 million to $48.1 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 $672k 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, upgrade the Water/Sewer infrastructure, and build 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 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 Adopted Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %
FYE FYE AMENDED FYE ADOPTED 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 6,443,631 5,207,417 8,437,709 2,891,967 9,891,475 242.0% Capital Projects - - - - - n/a
Total Special Revenue & Capital 8,251,840 7,054,112 10,950,905 5,514,165 13,591,669 146.5% Subtotal 30,232,363 26,090,391 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 31,029,107 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 13,036,227 155.3% Total Revenue, All Funds $ 53,754,300 $ 36,665,374 $ 41,102,950 $ 32,957,987 $ 48,153,061 46.1%
ALL FUNDS
DETAIL OF REVENUES BY FUND
FY 2019/20 THROUGH FY 2022/23
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 ADOPTED 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 5,446,182 38.1% Internal service 858,071 754,826 1,489,993 1,388,842 1,270,398 -8.5% Business-type activities - -
Water 1,675,504 1,687,506 8,945,160 5,826,729 10,254,652 76.0% 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 1,978,513 2,502,874 26.5% 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 28,600,788 38,166,692 33.4% 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 $ 33,706,766 $ 50,178,604 48.9%
ALL FUNDS
EXPENDITURE SUMMARY BY FUNCTION/PROGRAM
FY 2019/20 THROUGH FY 2022/23
$2,957,066 , 9%
6,506,460 , 19%
5,682,378 , 17%
5,446,182 , 16%
1,270,398 , 4%
- , 0%
9,359,652 , 27%
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 Adopted Budget
EXPENDITURES BY FUNCTION / PROGRAM
General Government is budgeted to increase 28% 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 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 Adopted Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %
FYE FYE AMENDED FYE ADOPTED INCR/
ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Salaries & Wages $ 5,329,152 $ 4,145,994 $ 5,708,181 $ 5,687,780 $ 6,451,929 13.4% Benefits 2,927,333 2,786,360 3,194,292 2,995,196 2,775,590 -7.3% Materials & Services 5,490,273 8,471,390 12,773,447 10,193,142 12,500,233 22.6% Capital 2,034,921 348,863 13,792,494 6,635,782 12,748,078 92.1% Debt Service 344,730 201,506 675,067 675,071 1,568,405 132.3% Depreciation 1,480,735 1,916,414 - - - 0.0%
Subtotal 17,607,143 17,870,527 36,143,481 26,186,971 36,044,236 37.6% Indirect Expenses 1,983,286 $ 2,042,842 $ 2,327,121 $ 2,033,891 2,394,080 17.7% Fiduciary Funds 225,874 $ 474,581 $ 382,426 $ 379,926 383,375 0.9% Subtotal 19,816,303 20,387,951 38,853,028 28,600,788 38,821,692 35.7% 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 $ 33,706,766 $ 50,833,604 50.8% *Note; Principal payments are not considered an expense in full accrual accounting.
Audited results reflect the Enterprise Funds full accrual treatment of principal payments.
SUMMARY OF EXPENDITURES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23
ALL FUNDS
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 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 Adopted Budget allocates funds to Emergency Reserves and Operating Reserves to combat some estimated declines in the General Fund’s top revenue categories.
Furthermore, the adopted 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 Adopted Budget
The Adopted FY 2022/23 budget is estimated to end the fiscal year with a $175k 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 by 5-10 percent at a minimum.
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.
ADOPTED
FY 2022/23
Operating Revenue $ 11,130,495
Operating Expenditures (10,955,184)
Operating Surplus(Deficit) $ 175,312
FY 2020/21 FY 2021/22 FY 2022/23
AUDITED PROJECTED ADOPTED
General Fund Balance $ 4,184,215 $ 3,449,677 $ 3,624,988 $4.62
$4.76
$5.39
$3.11 $2.96 $3.10 $2.69
$4.10
$3.40
$3.64
$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 Adopted Millions
General Fund - Fund Balance History
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
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 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:
• $2,186,754 to the General Fund Operating Reserve
• $547k Recession Reserve
• $200k to the Litigation Reserve
The General Fund’s “unassigned fund balance” in FY 2022/23 is estimated at $683k.
683,939 ,
19%
2,186,75
4 , 60%
547,759
, 15%
200,000 ,
6%
0, 0%
6,536 ,
0%
SUMMARY OF FUND BALANCE
Unassigned
Fund Balance
Operating
Reserve
Recession
Reserve
ADOPTED
FY 2022/23
Total General Fund Balance $ 3,624,988
Less Nonspendable (Inventory, etc.) 6,536
Less Committed Reserves (Set by Council Resolution)
Operating Reserve 2,186,754
Recession Reserve 547,759
Litigation Reserve 200,000
Unassigned Balance $ 683,939
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 ADOPTED 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 Adopted 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
Adopted
Millions
General Fund Sales & Use Tax History
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
Adopted
Millions
Transient Occupancy Tax History
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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
Adopted
Millions
Property Tax History
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
Adopted
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 Adopted 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 adopted 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 ADOPTED
Services & Programs AUDITED BUDGET PROJECTED
Intergovernmental $ 133,162 $ 582,585 $ 273,339 $ 540,055 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 $ 3,392,451
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %
FYE FYE AMENDED FYE ADOPTED 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 - Develope 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 Adopted 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 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 Adopted 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 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 adopted budget.
The Marketing and Promotions department budget is $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 $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 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 Adopted 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 ADOPTED 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 41,100 109.7% 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 1,297,221 1.7% General Fund Subtotal 8,840,643 7,888,911 10,041,349 9,708,831 10,269,053 5.8% 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 $ 10,955,184 5.4% 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 Adopted 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%.
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 Adopted budget includes a cost of living adjustment for employees, excluding the Police Public Works,
1,297,221 , 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
FY 2019/20 FY 2020/21 FY 2021/22 FY 2021/22 FY 2022/23 %
FYE FYE AMENDED FYE ADOPTED 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 2,652,693 -8% 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 10,269,053 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 10,955,185 5% Net Transfers - - - - - 0%
TOTAL $ 9,315,549 $ 8,367,408 $ 10,727,480 $ 10,389,873 $ 10,955,185 5%
GENERAL FUND
EXPENDITURES BY CATEGORY
FY 2019/20 THROUGH FY 2022/23
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
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 Adopted 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 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.
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
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.
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:
FY 2021/22 FY 2022/23
General Fund Materials & Service PROJECTED ADOPTED Change Professional Services 2,220,949 1,890,067 (330,882)
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 Maintenan 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 35,650 2,250
Postage 2,600 2,800 200
Total General Fund Materials & Se $ 2,895,723 $ 2,652,693 $ (243,030) BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
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.
LONG-TERM FINANCIAL PLANNING
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 $ 1,916,640 1,974,139 2,043,234 2,114,747 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 1,260,700 Transient Occupancy Tax 2,640,275 2,204,152 3,321,928 3,324,158 3,371,081 3,033,973 3,124,992 3,156,242 3,187,804 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 10,605,455 10,945,775 11,210,911 11,485,210 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 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 2,652,693 2,785,328 2,868,888 2,954,954 3,014,053 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 10,955,185 11,115,547 11,471,811 11,000,107 11,392,841 Net Transfers: (14,289) (18,229) (8,621) - - - -
Net Increase (Decrease) to Fund Balance 182,152 (450,389) 1,492,974 15,461 175,310 (510,092) (526,036) 210,803 92,370 Beginning Fund Balance 2,959,478 3,141,630 2,691,242 4,184,215 3,449,677 3,624,987 3,114,896 2,588,860 2,799,663 Ending Fund Balance 3,141,630 $ 2,691,242 $ 4,184,215 $ 3,449,677 $ 3,624,987 $ 3,114,896 $ 2,588,860 $ 2,799,663 $ 2,892,033 $ sed change in f/balance assuming $190k revenue annually - 205,461 365,310 (320,092) (336,036) 400,803 282,370 Projected Fund Balance 4,184,215 $ 4,389,677 $ 4,754,987 $ 4,434,896 $ 4,098,860 $ 4,499,663 $ 4,381,229 $ d change in fund balance assuming $430k revenue annually - 445,461 605,310 (80,092) (96,036) 640,803 522,370 Projected Fund Balance 4,184,215 $ 4,629,677 $ 5,234,987 $ 5,154,896 $ 5,058,860 $ 5,699,663 $ 5,581,229 $ ange in fund balance - 25% Sales Tax first year ($500k/yr.) - 146,086 719,810 (30,932) (32,501) 721,612 603,178 Projected Fund Balance 4,184,215 $ 4,330,302 $ 5,050,112 $ 5,019,181 $ 4,986,680 $ 5,708,292 $ 5,589,858 $ ange in fund balance - 25% Sales Tax first year ($750k/yr.) - 211,399 992,060 208,648 214,266 977,016 885,400 Projected Fund Balance 4,184,215 $ 4,395,614 $ 5,387,675 $ 5,596,323 $ 5,810,590 $ 6,787,606 $ 7,673,006 $ 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 Adopted Budget
$3,141,630
$2,691,242
$4,184,215
$3,449,677
$3,624,987
$3,114,896
$2,588,860
$2,799,663 $2,892,033
$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 Adopted Budget
Transfers Transfers Net
Fund Type/Name In Out Transfers
110 General Fund
To 112 - Recession Reserve (57,830) (57,830)
Total - (57,830) (57,830)
112 Recession Reserve
From 110 - General Fund (Operating Reserve) 57,830 57,830 Total 57,830 - 57,830
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-In 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
(continued next page)
CITY OF FORT BRAGG - FY 2022/23
Operating Transfers - All Funds
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
From 651 - Excess from FY 2021/22 180,969 - 180,969
To 651 - Pudding Creek Water Main (812,000) (812,000)
To 651 - Reclamation Designs (750,000) (750,000)
To 651 - Distribution System (500,000) (500,000)
To 651 - Extend Water System- Pudding Creek (300,000) (300,000) To 651 - Distribution System (850,000) (850,000)
To 421 - 2022 Streets Project (180,500) (180,500)
Total 638,043 (3,392,500) (2,754,457)
651 Water Enterprise Capital Projects
From 615 Reclamation Designs 750,000 750,000
From 615 Pudding Creek Water Main 812,000 812,000
From 615 Raw Water Reservoir 500,000 500,000
From 615 Extend Water System - Pudding Creek 300,000 300,000 From 319- DWR Raw Water Engineering 4,050,000 4,050,000 To 615 - Transfer remaining funds(savings) FY 21/22 (180,969) (180,969) From 615 Distribution System 850,000 850,000
Total 7,262,000 (180,969) 7,081,031
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 Re 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 $ 13,031,227 $ (13,031,227) $ -
(Concluded)
CITY OF FORT BRAGG - FY 2022/23
Operating Transfers - All Funds
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted Budget
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted Budget
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
FY 2022/23 ARTICLE XIIIB APPROPRIATIONS LIMIT
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
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.
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
BUDGET SUMMARY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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
Adopted
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 Adopted Budget
Expenditure Line Item Detail
FY 2022/23
Fund #110 Account Category Adopted
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 Adopted Budget
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
Adopted
Budget
%
+ /-
0101 Salaries & Wages, Regular 21,856 24,000 23,647 24,000 1% 0109 Other Pay 240 1,200 1,200 1,200 0%
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% $25,200 13%
$115,018
59%
$43,500 23%
$10,000 , 5%
FY 2022/23 EXPENDITURE CATEGORY
Salaries & Wages
Benefits
Materials & Services
Other Expenditure
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
Adopted
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% DEPARTMENT DETAILS - CITY COUNCIL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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 Adopted 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 $1.27 million in the Adopted 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 Adopted 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
Adopted
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
Adopted
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 Adopted Budget
Line Item Detail FY 2022/23
Fund #110 Account Category Adopted
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
Assistant to the City Manager 2,000
Human Resource Analyst 2,000
Adminstrative Assistant 2,000
Administrative Analyst 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 - ADMINISTRATION _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
Adopted
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
Adopted
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% 660,064
52%
243,701
19%
366,610
29%
FY 2022/23 EXPENDITURES BY CATEGORY
Salaries &
Wages
Employee
Benefits
Materials &
Services
DEPARTMENT DETAILS - ADMINISTRATION _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 - FORT BRAGG TOURISM MARKETING & PROMOTIONS _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 - FORT BRAGG TOURISM MARKETING & PROMOTIONS _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
BUDGET OVERVIEW
The FY 2022/23 Adopted 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.
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
Adopted
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%
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
Adopted
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% DEPARTMENT DETAILS - FORT BRAGG TOURISM MARKETING & PROMOTIONS _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
fFINANCE 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 Adopted 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 Adopted Budget
PERFORMANCE / WORKLOAD MEASURES
FY 2022/23 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)
• 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.
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 Adopted Budget
• 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 Adopted 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 Adopted 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
Adopted
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 6,800 1,546 -77%
Total Charges for Services 65,561 205,081 47,516 8,046 -83% Reimbursements
3497 Interfund Reimbursement $ - $ - $ - $ 45,000 100%
Total Reimbursements - - - 45,000 100%
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 0% Total Fines & Forfeitures 1,454 1,200 1,500 1,500 0%
Total Finance Revenue $ 129,767 $ 260,281 $ 108,337 $ 120,759 11%
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
Adopted
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 Adopted 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
Adopted
Budget
DEPARTMENT DETAILS - FINANCE _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 DETAIL - NON-DEPARTMENTAL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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
Adopted
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 DETAIL - NON-DEPARTMENTAL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
Line Item Detail
FY 2022/23
Fund #110 Account Category Adopted
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
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 DETAIL - NON-DEPARTMENTAL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
Line Item Detail
FY 2022/23
Fund #110 Account Category Adopted
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 Adopted
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
Adopted
Budget % + /-
0802 Cost Allocation contra exp $ (552,748) $ (637,327) $ (637,327) $ (637,327) 100% 3499 Personnel Cost Allocation - Revenue (295,805) (389,010) (295,805) (389,010) 32% Net Cost Allocation $ (848,553) $ (1,026,337) $ (933,132) $ (1,026,337) 10% DEPARTMENT DETAIL - NON-DEPARTMENTAL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted Budget
DEPARTMENT DETAIL - NON-DEPARTMENTAL _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted 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 Adopted Budget
BUDGET OVERVIEW
The Adopted 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 Adopted 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
Adopted
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 Adopted 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
Adopted
Budget
%
+ /-
0101 Salaries & Wages, Regular 1,235,066 1,596,034 1,495,069 1,815,264 21% 0102 Overtime 121,871 133,003 167,000 147,808 -11%
0103 Comp Time Payout 11,175 25,000 40,000 9,300 -77%
0104 Vacation Payout 6,084 2,109 17,591 - 100%
0105 Sick Leave Payout 1,327 - - - 0%
0106 Holiday Pay 79,507 81,149 81,149 92,686 14%
0109 Other Pay 205,482 60,654 182,000 83,503 -54%
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 Adopted Budget
Line Item Detail
Category FY 2022/23
Fund #110 Account Account Adopted
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 Adopted 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
Adopted
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
Adopted
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 0% DEPARTMENT DETAILS - PUBLIC SAFETY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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
Adopted
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 Adopted
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 - PUBLIC SAFETY _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted 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 Adopted 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 Adopted 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
Adopted
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% 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 Adopted 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
Adopted
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
Adopted
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 Adopted 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
Adopted
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 Adopted
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 - COMMUNITY DEVELOPMENT _______________________________________________________________________________________________________ City of Fort Bragg - FY 2022/23 Adopted 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 Adopted Budget