CITY OF
FORT BRAGG
FINANCE
DEPARTMENT
Fiscal Year
2024
Proposed Budget
DEPARTMENT DETAILS – NON-DEPARTMENTAL
FINANCE DEPARTMENT
The Finance Department is responsible for maintaining the City's financial integrity by providing oversight to the City's fiscal management, maintaining accurate financial records and reports, and providing advice regarding fiscal policies and transactions.
SUMMARY OF SERVICES
The Finance Department is a General Government support function. In FY 2023, the Department had four full-time staff members, including: a Finance Director, one Government Accountant, two Finance Technicians. In March 2023, the department added a second part-time Government Accountant.
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, CV Starr, Municipal Improvement District #1, and the Successor Agency to the Fort Bragg Redevelopment Agency.
STRATEGIC GOALS AND OBJECTIVES
AUTHORIZED FTE FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Finance Department 4 4 4 4 4 4 3 4.8 4 5
Finance Director
Finance
Technician II
Government
Accountant I
Government
Accountant
(Part Time)
Finance
Technician I
FINANCE DEPARTMENT
DEPARTMENT DETAILS – NON-DEPARTMENTAL
• 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 2022/23 TOP ACCOMPLISHMENTS
• Took charge of CV Starr financial activities, including setting up of Cash Receipts, Accounts Payable, and Budgeting and Payroll systems in our software system (Springbrook). • Implement Paypad Credit Card machine to accept payments for services other than Utility Billing.
• Continued cross training of staff to ensure coverage. • Took charge of operation for Mendo Recycle.
• Processed New Business Licenses:
Processed 102 new business licenses and/or business transfers in 2022 Mailed 836 business license renewals in 2023, most of which have been processed. • Restructure Finance Department to make room for new employee. (Major move in coordination with IT and Public Works.)
• Invoice Mendocino County for Emergency Winter Shelter reimbursable costs. • Resumed water shut-offs for non-payment after two years, ensuring compliance with SB 998. Implemented door hangers to ensure customers are notified. • Water meters change-out project, ensuring that meters are correctly entered into software system.
• Leak Letters to notify customers of leaks (60/month)
• Coordinate with Public Works to promote Water Conservation awareness. • Launch WaterSmart Customer Interface in March 2023.
• Promote Financial Hardship Water Assistance Programs. • Developed procedure for property owners/managers to have utilities automatically transferred when a tenant closes an account.
• Successfully set-up Section 115 Trust.
DEPARTMENT DETAILS – NON-DEPARTMENTAL
• Move to a 4/10 works schedule to promote a work/life balance for employees. • Launched Calm App encouraging Employee Wellness.
PERFORMANCE / WORKLOAD MEASURES
INDICATORS FY 2020/21 FY 2021/22 FY 2022/23
BUDGET/CAFR/AUDIT
Receive GFOA Distinguished Budget award Yes Yes Yes
Receive GFOA Award for Excellence in Financial
Reporting Yes Yes Yes
Audit Findings Nil Nil Nil
REVENUE COLLECTION & UTILITY BILLING
Ave.number open Water/Sewer Accounts 2859 / 2786 2871 / 2792 2868 Total Amount Billed(Water/Sewer) $3.2 m/$3.6m $3.0m/$3.5m $2.8m/ $3.3m % of payments processed through external
automated/electronic process
(Ebox,lockbox,ACH/CC)
75.7% 72.7% 64.2%
Business licenses renewals notices mailed 866 890 895
% of business licenses processed within 30 days of
receipt 100% 100% 100%
Avg. number monthly pmts processed internally 630 725 956 Avg. number monthly water delinq. notices mailed 404 424 433 Avg. Monthly Number of Turn Offs – Non Payment 0 0 9
ACCOUNTS PAYABLE/PAYROLL
Average days for Invoices to be Paid (turned into
Finance) 2 days 2 days 14 days
% of Staff cross-trained in Payroll process 100% 60% 60% % of Staff cross-trained in AP process 100% 100% 80%
% of employees signed up for direct deposit 98.5% 98.5% 98.5% FY 2023/24 TOP PRIORITIES
Utility Billing/Business License
DEPARTMENT DETAILS – NON-DEPARTMENTAL
• Water Smart: Continue with city-wide launch. Promote software to customers • Continue Meter Change of ¾ inch meters. Over 2,700 Meters remaining. • Launch Municipal Pay system- for customers to improve business license filling and payments.
Financial Operating, Budgeting, and Reporting
• Open local bank account for CV Starr
• Train Government Accountant
• Launch Municipal Pay interface
• Cost Allocation & Indirect cost Study
• Water & Wastewater Rate Study
• Complete Request for Proposal and selection of external Auditor Financial Transparency & Reporting
• Increase the number and variety of published financial reports on the City's website to increase financial transparency
• Continue developing annual long-term planning and forecasting document and presentation
• Assist City Manager and City Council in the establishment of new or enhanced revenue sources • Assist City Manager to address Long-term Financial challengers for the City Training & Mentorship
• 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 Proposed budget is $635K, an increase of 13% from the prior year.
Besides MOU increases of 2% and merit increases, the most significant change is the DEPARTMENT DETAILS – NON-DEPARTMENTAL
addition of one part-time Government Accountant in the fourth quarter of the prior fiscal year.
The Proposed Budget includes funds to transition the Part-time position to full-time.
Moreover, non-personnel costs are expected to increase by $10K, due to increase in Courier services costs and bank fees by 5% and an increase of $3k for training for newer employees.
FINANCE DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4150
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 459,496 $ 557,124 $ 502,500 $ 565,863 13% Non-Personnel Services 77,638 60,347 60,519 69,907 16%
Total Departmental Expenditure 537,133 617,471 563,019 635,770 13% Revenue Summary
Charges for services 37,818 8,046 4,960 34,828 602%
Reimbursements 344,305 342,832 342,832 342,832 0%
Licenses & Permits 60,704 66,213 60,000 61,800 3%
Fines & Forfeitures 5,104 1,500 17,975 10,000 -44%
Total Departmental Revenue 447,931 418,591 425,767 449,460 6% Net Rev/Exp (89,203) (198,879) (137,251) (186,309) 36%
Cost Allocation Summary
Expense - Cost Allocations 132,717 (66,607) (66,607) (66,425) 100% Revenue - Personnel Allocations (344,305) (342,832) (342,832) (342,832) 0% Net Cost Allocation (211,588) (409,439) (409,439) (409,257) 0% Net Expenditure $ 122,386 $ 210,560 $ 272,188 $ 222,947 -18% DEPARTMENT DETAILS – NON-DEPARTMENTAL
BUDGET REVENUE DETAIL:
Fund #110
Department: 4150
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Charges for Services
3415 City Exp-Reimb $ 1,607 $ 1,500 $ 1,500 $ 2,000 33% 3318 Grant Staff Time Reimb 34,300 5,000 2,200 31,528 1333% 3711 Return Check Fee 1,911 1,546 1,260 1,300 3%
Total Charges for Services 37,818 8,046 4,960 34,828 602% Reimbursements
3499 Overhead/Admin Cost Recovery 344,305 342,832 342,832 342,832 100% Total Reimbursements 344,305 342,832 342,832 342,832 100% Licenses & Permits
3701 Business License Fee 60,704 66,213 60,000 61,800 3% Total Licenses & Permits 60,704 66,213 60,000 61,800 3% Fines & Forfeitures
3519 Miscellaneous Fines 5,104 1,500 17,975 10,000 -44% Total Fines & Forfeitures 5,104 1,500 17,975 10,000 -44% Total Finance Revenue $ 447,931 $ 418,591 $ 425,767 $ 449,460 6% DEPARTMENT DETAILS – NON-DEPARTMENTAL
Line Item Detail
Fund #110 Account Category
Department: 4150 Detail Detail
Personnel Costs
Salaries & Wages $ 371,455
Employee Benefits 194,407
Total Personnel Costs $ 565,863
Materials & Services
110-4150-0312 Auditing & Accounting 26,000
110-4150-0319 Professional Services 30,592
Armored Car Service $ 12,292
Banking Fees 10,000
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
110-4150-0366 Training/Travel Reimbursement 12,000
110-4150-0381 Small Tools & Equipment 1,000
Total Material & Services 69,907
Total - Finance Department $ 635,770
FY 2023/24
Proposed
Budget
CITY OF
FORT BRAGG
NONDEPARTMENTAL
Fiscal Year
2024
Proposed Budget
DEPARTMENT DETAILS – NON-DEPARTMENTAL
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 two Community Organizations: Public Education and Government (PEG) television services; 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 undertaken annually, and budgeted cost allocations are adjusted accordingly.
BUDGET OVERVIEW
The FY 2024 Proposed Budget for City-Wide Non-Departmental (excluding transfers out) is $1.1 million, an increase of 4% from the FY 2023 projected total. The increase was mainly a result of retiree medical cost increases at 3%, property and general liability cost increases of about 15% from CIRA and a budget for Cost Allocation and Indirect Cost Study of $16K Included in the proposed budget is an additional $150K contribution to the Section 115 Trust which was set-up in FY 2023 to absorb some of the future cost increases from Calpers unfunded liability (UAL). The Trust currently has $1.6 million invested in a moderately conservative investment strategy.
General Fund’s Debt- 2021 Lease Revenue Bonds payment is $440K. The City returned the $3.5 million of additional funds received as part of the debt issuance to fund mill-site acquisition costs resulted in savings in interest in the long-term.
Additionally, the Caspar Landfill costs, which the City and the County of Mendocino share, are expected to increase by $26k compared to FY 2022.
Community contributions include funding for the Noyo Center and Special Projects from Measure AB, approved in 2016.
NON-DEPARTMENTAL
DEPARTMENT DETAILS – NON-DEPARTMENTAL
NON-DEPARTMENTAL BUDGET SUMMARY
FUND: 110
DEPARTMENT: 4190, 4390, 4391, 4915, 4916
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Intergovernmental $ 30,089 $ - $ 30,000 $ 30,000 0%
Events 4,750 2,000 8,000 5,000 -38%
Rents and Concessions 2,554 2,300 3,000 4,000 33%
Total Departmental Revenue 37,393 4,300 41,000 39,000 -5% Personnel Services 362,100 399,775 397,609 541,100 36%
Non-Personnel Services 759,737 1,215,414 1,182,009 1,300,987 10% Transfers 88,775 - 70,000 - -100%
Total Departmental Expenditure 1,210,611 1,615,189 1,649,618 1,842,087 12% Cost Allocation Summary
Expense - Cost Allocations (733,972) (637,327) (637,327) (637,327) 100% Revenue - Personnel Allocations 487,025 389,010 389,010 487,025 100% Net Cost Allocation (246,948) (248,317) (248,317) (150,302) -39% Net Expenditure $ (926,270) $ (1,362,572) $ (1,360,301) $ 1,652,785 -222% DEPARTMENT DETAILS – NON-DEPARTMENTAL
Line Item Detail
FY 2023/24
Fund #110 Account Category Proposed
Department: 4190 Detail Detail Budget
Personnel Costs
110-4190-0224 Retiree Medical Benefits $ 381,100
110-4190-0225 OPEB Funding 5,000
110-4190-0251 Unemployment Insurance 5,000
110-4190-0387 CALPERS UAL Additional Payment 150,000
Total Employee Benefits $ 541,100
Materials & Services
110-4190-0319 Professional Services 49,372
Alarm monitoring $ 10,172
Cost Allocation Study 16,000
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 30,000
110-4190-0358 Liability Premium 293,553
110-4190-0356 Rentals - Equipment & Vehicles 3,000
110-4190-0359 Liability Deductible 5,000
110-4190-0360 Property Premium 87,331
110-4190-0361 Property Deductible -
110-4190-0362 Telephone & Communication 18,000
110-4190-0365 Copying/Printing Bid Docs 4,000
110-4190-0371 Meetings/City Business 6,000
Employee recognition 6,000
6,000
110-4190-0372 Postage 1,000
110-4190-0375 General Supplies 10,000
110-4190-0383 Utilities 74,390
110-4190-0384 Books & Subscriptions 100
Total Material & Services 596,096
Other Expenditures
110-4190-0619 Other Expenditures 1,000
Graffiti removal 1,000
Total Other Expenditures 1,000
Total - Non-Departmental $ 1,138,196
DEPARTMENT DETAILS – NON-DEPARTMENTAL
Line Item Detail
FY 2023/24
Fund #110 Account Category Proposed
Department: 4915 & 4916 Detail Detail Budget
Other Expenditures
110-4915-0319 Professional Services $ 112,890
110-4915-0607 Caspar Landfill Property Tax 900
Total Other Expenditures $ 113,790
Debt Payment
110-4916-0911 Principal 195,000
110-4916-0912 Interest 245,513
110-4916-0913 Fees 2,000
Total Debt Service 442,513
Total - Caspar Closure and General Fund Debt $ 556,303
Line Item Detail
FY 2023/24
Fund #110 Account Category Proposed
Department: 4390 & 4391 Detail Detail Budget
Community Organizations
110-4390-0621 Chamber of Commerce $ 2,000
110-4390-0619 Community Contributions 145,588
EDFC $ 5,000
Leadership Mendocino Scholarships 500
Otsuchi Sister City Program 5,000
Noyo Center - Measure AA/AB Funding 70,231
Special Projects - Measure AA/AB Funding 70,231
Total - Community Organization Support $ 147,588
COST ALLOCATION
Fund #110
Department: 4190,4390
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0802 Cost Allocation contra exp $ (733,972) $ (637,327) $ (637,327) $ (637,327) 100% 3499 Personnel Cost Allocation - Revenue 487,025 389,010 389,010 487,025 100% Net Cost Allocation $ (246,948) $ (248,317) $ (248,317) $ (150,302) -39%