Special City Council
May 24, 2023

Proposed Budget

CITY OF FORT BRAGG
Fiscal Year
2024
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CITY OF FORT BRAGG Incorporated August 5, 1889
416 N. Franklin Street
Fort Bragg, CA 95437
Phone: (707) 961-2823
Fax: (707) 961-2802
May 19th, 2023
Honorable Mayor and Members of the City Council, Residents, and Business Owners:

I am honored to submit the Fiscal Year 2023-24 City Budget to the City Council for review, deliberation, and adoption. My goal is to provide in a few pages a summary of the key issues embodied in the lengthy and complex budget document. As part of the City's Budget process, it is customary for the City Manager to submit a Budget overview describing the major financial trends and issues contained within the document. The annual Budget provides a comprehensive statement of the City's organization, operations, and resources. It expresses City Council and District Board policies and priorities in all areas of the City's operations, and it links near-term priorities with the resources available to achieve them. Over the year, the City's Budget is a financial management tool and a work plan for delivering City services and implementing capital projects. This year the process of preparing this document has been challenging.

Besides looking to the future, we are also forced to look at our past. While the City has weathered the storm of the COVID pandemic and the subsequent economic shutdown, the City has had to engage with our community in a very different way, partly because we still have a very difficult economic environment overall. Our country has never experienced the type of disaster we had beginning in 2020, and it's likely in the future we will continue to experience unprecedented and unforeseen challenges from the effects of climate change, shrinking wildlife habitats that foster diseases jumping between species, and continuing changes in our day to day lives, including high rates of inflation. This isn't a statement of hysteria- it is simply because our community, nation, and world are changing in ways we never anticipated. Fortunately, the City of Fort Bragg has weathered these challenges, but not without a significant impact to our residents and City team.

Our main focus over the next five years is to ensure we continue to not only survive but thrive as we meet new challenges. Flexibility, entrepreneurship, and a better understanding of the challenges and changes ahead will be our most important assets.

FORT BRAGG'S GREATEST RESOURCE – OUR EMPLOYEES
City services are provided by people, so our major cost center is salaries and benefits. Since 2020, when the pandemic arrived and drove the subsequent economic shutdown, our employees took a huge impact. At that time, the City projected a $1.4 million shortfall, mostly attributed to ii
Transient Occupancy Tax (TOT) and sales tax decreases. Some employees were laid off or quit, and the remaining employees were furloughed for up to three months.

When I was appointed Interim City Manager, I saw an organization splintered and exhausted from a variety of events. Our employee team needed to be stabilized and lifted to work with each other and City residents professionally and in a peaceful environment. I have seen a significant change in the attitude of City employees and the atmosphere at City Hall since making a few key changes.

And I am happy to report that our civilian City team is fully staffed now, which hasn't happened since late 2019. The Police Department is down three officers, but we are anticipating sending up to three recruits to the Police Academy during the next fiscal year.

A main focus in the past six months has been automation to create workforce efficiencies rather than adding additional positions. As mentioned earlier, employee compensation is our biggest Budget expense. It is incumbent upon our City team to improve productivity and accuracy through other means than increasing staff. Automation can streamline repetitive paperwork and procedures, eliminate information delays and make the workflow of public offices more efficient.

By automating processes, staff is free from doing repetitive tasks and can dedicate themselves to services of greater relevance; on the other hand, the user will be able to do their business quickly and easily. Two new automated procedures will soon be implemented in Human Resources for recruiting and onboarding new employees and in Finance to allow the City to accept online payments for business licenses and building permits, which will eliminate manual paperwork. Moreover, once the new water meters are installed, it will allow the Finance Department to automate the monthly meter reading and shut-off process for customers.

While the City Council has set goals and policies for the coming year that Staff is already implementing, as City Manager, I will continue to focus on creating long-term fiscal stability, including:
• Implement new technologies to improve communications in a smaller, leaner workforce and help our employees enhance their efficiency.
• Privatize services after completing careful analysis of savings and efficiencies. • Create an aggressive economic development program to attract and retain businesses, streamline regulations, and identify long-term revenue strategies. • Create partnerships with other cities for services or reports for cost savings. • Negotiate a new comprehensive labor agreement with the Police Association focusing on keeping competitive salaries while addressing rapidly increasing costs of leave and other benefits.
• Place a ballot measure for the November 2023 election to continue funding our streets through the Special Sales Tax designated for street paving and improvements. • Identify new sources of revenues, including implementing direct and indirect administrative fees on state and federal grants and City fees.

Change is difficult and challenging, yet the one thing constant today in the public and private corporate world is change. Our organization will continue to adapt, evolve and change. In the popular vernacular, this is referred to as continual improvement. The City staff is committed to continually improving and refining the services to the Fort Bragg community. The Fiscal Year (FY) 2023-24 Budget reflects a continuation of this trend.
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BUDGET OVERVIEW
In building the Budget, we have considered the historically high gross receipts tax revenues received in the last two fiscal years, particularly in Transient Occupancy, property, and sales tax, which has recorded declines in FY 2023. At the same time, we are mindful of macroeconomic warning signs suggesting a cautious approach to this year's Budget, with fiscal restraint and a conservative approach to expenditures and revenue projections.

The investments made through this Budget reflect the Fort Bragg City Council goals of workforce housing, infrastructure, jobs/industry, a better quality of life for our residents, and the commitment to the City we aspire to be in the years to come.

The proposed Budget funds the operational departments which provide core services to our community, including Police, Water, Sewer, Public Works, Community Development, Fire, and supporting administrative services such as Information Technology, City Clerk, Finance and Human Resources. While maintaining core operational services, the proposed Budget invests $29.8 million into Water and Wastewater Infrastructure, streets rehabilitation, broadband, and City parks.

Staffing levels impact the delivery of services to the public, but they also drive costs. The FY 2023/24 personnel budget is projected to increase by 16% to $6.8 million. The Budget includes a Community Development Director position, two new senior lifeguards for the CV Starr Center, Cost of Living adjustments (COLA) for all labor groups, and merit increases. In FY 2022, the General Fund realized salary savings from unfilled positions or from positions that were filled during the fiscal year. The true annual costs of these positions will be realized in the new fiscal year.

Even with the additional positions, areas of staffing constraints remain. One of the challenges the City faces is finding ways to address its ongoing revenue situation before assuming additional and ongoing staffing costs.

Benefit costs are also expected to increase by 19% due to benefit cost increases.

FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Salaries & Wages $ 4,127,459 $ 5,408,108 $ 6,504,015 $ 6,037,963 $ 6,844,377 13.4% Benefits 3,086,657 3,296,614 3,382,178 3,150,420 3,637,901 15.5% Materials & Services 9,637,732 8,937,663 16,429,892 9,020,096 8,273,691 -8.3% Capital 319,301 1,505,223 17,025,550 6,327,776 23,121,446 265.4% Debt Service 286,121 380,966 1,420,083 1,445,764 1,081,393 -25.2% Depreciation 780,562 790,001 - - - 0.0%
Subtotal 18,237,831 20,318,575 44,761,718 25,982,018 42,958,807 65.3% Indirect Expenses 1,921,879 $ 3,157,855 1,901,507 1,891,986 2,258,945 19.4% Fiduciary Funds 228,240 $ 225,062 386,475 384,627 377,757 -1.8% Subtotal 20,387,951 23,701,492 47,049,700 28,258,631 45,595,509 61.4% Transfers Out 9,944,137 11,408,039 13,994,508 6,920,799 23,702,812 242.5% TOTAL ALL FUNDS $ 30,332,088 $ 35,109,531 $ 61,044,207 $ 35,179,431 $ 69,298,321 97.0%

SUMMARY OF EXPENDITURES BY CATEGORY
FY 2020/21 THROUGH FY 2023/24

ALL FUNDS
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The City’s total expenditures Budget is $45.6 million (excluding transfers), with departments expected to be fully staffed in 2024. Debt service is projected to reduce by 25% as the Water Enterprise paid off the 2007 Department of Water Resource Loan in FY 2023.

While the City's fiscal situation is stable and much improved from years past by addressing the long-term challenge with CalPERS’ unfunded liability, building up our reserves, and recording solid year-over-year growth in the City's major General Fund revenues still require a fiscally prudent approach over the next year. Inflationary pressures have increased the City's cost of doing business and implementing capital improvements. While expenditures continue to rise, revenues are leveling off and are projected to remain relatively flat in FY 23/24 and possibly FY 24/25. With expenditure growth outpacing revenue growth, the City is at risk of future structural deficits in some of its major funds if not carefully tracked and managed. Fortunately, prudent reserve policies leave the City in a positive position to weather this short-term uncertainty.

Another significant area of concern is related to the City's pension costs which are projected to increase in FY 26/27 and beyond. CalPERS’ investment returns have not met their benchmark rates (discount rate). Over 20 years, the overall fund performance has averaged just 5.5%.

This will result in the City being required to make higher minimum payments towards the City's unfunded liability in addition to normal costs. To address these rising costs, in 2021, the City adopted the City's pension policy, restructuring the $7.5 million unfunded liability at a lower interest rate and establishing a Section 115 Trust in FY 2022 to absorb future fluctuations in the CalPERS discount rate, adding to the unfunded liability. The City Council approved a $1.6 million contribution to the Trust from the prior fiscal year's realized surplus. This proposed Budget also invests an additional $200k towards the Trust to lower our overall pension liabilities over time and be better prepared to weather potential CalPERS cost increases. v
During the Mid-Year Budget Review in March 2023, the City Council directed Staff on the following Budget Priorities for FY 2023/24. The revised goals are set forth below:

PRIORITY GOAL ACHIEVED
1 Adopt a balanced budget
2 Provide additional contributions to Section 115
3 Maintain current level of service (no staff layoffs, no program cuts)
4 Maintain Operating Reserves and Litigation Reserves (20%) 5 Provide funding for Recession/Emergency Reserves (5% to 10%)
6 Provide Cost of Living Adjustment to Staff
Consistent with Goal No. 1, Adopt a balanced budget, the proposed General Fund Budget is balanced with a projected surplus of nearly $84k. Also consistent with these goals, the proposed Budget continues to allocate $200,000 towards the Section 115 trust with Public Agency Retirement System (PARS) established in FY 2022. The Trust has a $1.6 million investment in a moderate conservation strategy, yielding a 7-10% return on investments. The funds will act as a cushion and can be withdrawn in the future to absorb fluctuations in CALPERS employer contributions costs and accrued liabilities stemming from a failure to meet the discount rate with their investments.

The City Council also set a goal to fund budget reserves to 25% of the City Budget. The FY 2023/24 Proposed Budget sets aside Emergency Reserves for the General Fund, Water, Wastewater, and CV Starr Enterprise. These reserves include an Operating Reserve, 15% of operating expenditures, and a 10% Recession Reserve set at 10% of operating costs.

The General Fund has $3.5 million in reserves to
help mitigate the adverse fiscal effects. It is
critical that during a period of better economic
activity, the City continues to prioritize building
its reserves to have the resources to weather the
next inevitable dip in economic activity or other
local fiscal emergencies. Our reserves are 25%
of the City budget, which is the recommended
practice by the Government Finance Officers
Association (GFOA).

No planned staff reductions or program cuts are included in the proposed Budget. The Budget includes a Cost of Living Adjustment (COLA) of 3% for the Police Association and 2% for the SEIU employees, effective July 1, 2023. I requested that the Budget include a 2% COLA for MidPROPOSED FY 2023/24
Total General Fund Balance $ 3,520,937
Less Nonspendable (Inventory, etc.) 11,986
Less Committed Reserves (Set by Council Resolution)
Operating Reserve 1,731,119
Recession Reserve 1,154,079
Litigation Reserve 200,000
Unassigned Balance $ 423,753
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Management and Executive groups, effective July 1, 2023. The FY 2023/24 Budget includes all the COLA increases.

In part, the FY 2023/24 proposed General Fund Budget is projected to result in a small surplus because of the City's grants. Staff time reimbursable by various grants is budgeted at $716,000 compared to $534,000 in FY 2022/23. Much of the reimbursable time is from Community Development Block Grants (CDBG), which include: the Code Enforcement Program, Business Loans, Fire Station Rehabilitation Design Work, and general administration. Other grant/funding reimbursements include Local Agency Technical Assistance (LATA), SB2 planning grants, Coastal Commission Grant- Blue Economy, and the Opioid Resistance Grant. A total of six fulltime positions are ninety to a hundred percent grant funded- these include two Code Enforcement Officers, two Social Service Liaisons (SSLs), with one SSL position supported by the Opioid Resistance Grant through April 2024, one Special Projects Manager and one Grants Coordinator position.

These are all critical positions to the organization, and we are continually exploring long-term funding to continue these important programs. To ensure our employees have competitive compensation packages, the City conducted two salary and compensation studies—one for the Fort Bragg Police Association, as required by Ordinance 672 and one for civilian employees. In both cases, the findings were that both sworn and civilian employees are currently at or above comparable salaries in other jurisdictions. Only two positions, the City Clerk and the Public Works Operations Manager, were significantly below the average. We will bring those positions to Council in June for possible salary adjustments. I am also working with local jurisdictions to partner on future compensation studies to reduce costs and ensure our employees continue to have competitive salaries and compensation.

GRANTS AND OTHER STATE AND FEDERAL FUNDING
A substantial revenue source for Fort Bragg is grant funding from state, federal, and private agencies. As a rural community, Fort Bragg is eligible for a variety of grant funds that wealthier urban cities cannot receive. In the last few years, the City has been awarded approximately $25,086,473 in grant funding. Recent grants include:
• Community Development Block Grants (CDBG): Currently funds programs including Code Enforcement, Business Loans, and Fire Station Rehabilitation. • U.S. Department of Agriculture (USDA): Wastewater Treatment Plant, Heavy Equipment and Police Vehicles, City-Wide Water Meter Replacement Program • California Coastal Commission: Noyo Harbor Blue Economy The City has an allocation of Coronavirus State and Local Fiscal Recovery Funds of $1,744,162.

This is from the $350 billion the American Rescue Plan Act of 2021 established to provide emergency funding for eligible state, local, territorial, and tribal governments. As a non-entitlement government with a population under 50k, the City receives the funds from the California Department of Finance. The City Council has committed funds towards broadband which is included in the Capital Improvement Budget.

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CITY COUNCIL
Mayor
Bernie Norvell
Vice Mayor
Jason Godeke
Councilmember
Tess Albin-Smith
Councilmember
Marcia Rafanan
Councilmember
Lindy Peters
City Manager
Peggy Ducey
FY 2024

OPERATIONS & MAINTENANCE PROPOSED BUDGET

ABOUT THE COVER
Tide Pools at MacKerricher State Park
Budget Document Producers
Budget Team Isaac Whippy Finance Director
Laura Bianchi-Limbird Government Accountant I
Adriana Moreno Ramos Finance Technician I
Alexandria Frazer Finance Technician I
Department Budget Coordinators John Smith Public Works/CIP/Water/Wastewater Chief Cervenka Police Department & Asset Forfeiture
Chantell O’Neal CIP Streets/Grants
Isaac Whippy Finance/Non-Departmental
Debbie Smith IT
Peggy Ducey Administration/City Council/Visit Fort Bragg Sarah McCormick Grants & Special Projects
Moneque Wooden C.V. Starr Community Center

TRANSMITTAL LETTER
Letter from Peggy Ducey, City Manager ..................................................................... i

INTRODUCTION
User's Guide to the Budget ........................................................................................ 1 City of Fort Bragg – Overview .................................................................................... 8 Directory of Elected and Appointed City Officials ...................................................... 12 Organizational Chart ................................................................................................. 13 Budget Guidelines .................................................................................................... 14 Fiscal Policies ........................................................................................................... 16 Investment Policy...................................................................................................... 25

SUMMARY
Summary of Revenue, Expenditures and Fund Balance ............................................. 31 Budget Summary – All Funds ...................................................................................... 34 Budget Summary – General Fund .............................................................................. 42 Operating Transfers .................................................................................................... 63 Cost Allocation Plan... ………………………………………………………………………. 66 Ten Year City Authorized Position Staffing Comparison ............................................ 74 Ten Year Authorized Staffing Comparison Graph ...................................................... 75 Appropriations Limit .................................................................................................... 76

OPERATING BUDGET DETAIL
City Council................................................................................................................. 78 Administration ............................................................................................................. 85 Administrative Services Office
City Attorney's Office
City Clerk's Office
Fort Bragg Tourism Marketing & Promotions.............................................................. 94 Finance ....................................................................................................................... 97 Non-Departmental....................................................................................................... 104 Community Organizations
Caspar Closure & Landfill
Other Non-Departmental
Public Safety ............................................................................................................. 108 Police Department
Fire Protection District
Community Development Department...................................................................... 121 Public Works ............................................................................................................. 127 Internal Service Funds .............................................................................................. 139 Facilities Repair & Maintenance
Technology Maintenance & Replacement
Fleet & Equipment Services
Debt Service Policy & Summary ................................................................................. 156 Interfund Loan Policy & Summary

TABLE OF CONTENTS

ENTERPRISE FUNDS DETAIL
Water Enterprise ......................................................................................................... 165 Wastewater Enterprise................................................................................................. 172

SPECIAL REVENUE FUNDS
Grants .......................................................................................................................... 185 Special Revenue Funds............................................................................................... 191 Fort Bragg Redevelopment Successor Agency ........................................................... 194

CAPITAL IMPROVEMENT PROGRAM
Capital Improvement Program Overview ..................................................................... 198 FY 2021/22 to FY 2025/26 Projects by Category ........................................................ 200 FY 2021/22 to FY 2025/26 Projects by Funding Source.............................................. 202 Detail............................................................................................................................ 204

GLOSSARY
Glossary...... ................................................................................................................. 267 CV Starr Community Center....................................................................................... 179

STATISICAL DATA
Statistical Detail ........................................................................................................... 233 This page has been intentionally left blank.

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget
The functions of local government stem from three levels of policy direction: federal, state and local.

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

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

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

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

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

The Distinguished Budget Presentation Award is valid for one year. Our Fiscal Year 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

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget

GOVERNMENT FINANCEOFFICERSASSOCIATION
Distinguished Budget Presentation Award

PRESENTED TO
City of Fort Bragg
California
For the Fiscal Year Beginning
July 01, 2022
Executive Director

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed 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 three fiscal years. More specific information about the current year appropriations is provided in the budget detail section. With the FY 2017/18 Budget the presentation was expanded to include a summary of revenue generated by each department.

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

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

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

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

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

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

BASIS OF ACCOUNTING AND FUND DEFINITIONS
The modified accrual basis of accounting is used by all General, Special Revenue and Capital Projects Funds. This means that revenues are recognized when they become both measurable and available.

Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

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

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

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget
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.

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 66-73.

USER’S GUIDE TO THE BUDGET
City of Fort Bragg
FY 2023/24 Proposed Budget

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 2023. These estimates take into account what has happened in the local economy, current revenue and expenditure experiences, and, to the extent possible, what is projected to happen over the next 14 months.

City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

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

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

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

CITY OF FORT BRAGG OVERVIEW

City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

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

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

Mayor Bernie Norvell December 2024
Vice Mayor Jason Godeke December 2026
Councilmember Tess Albin-Smith December 2026
Councilmember Marcia Rafanan December 2026
Councilmember Lindy Peters December 2024

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

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

City of Fort Bragg
FY 2023/24 Proposed Budget
provide services to the City's population include the school district, hospital district, recreation district, harbor district, and other special districts.

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

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

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

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

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

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

City of Fort Bragg
FY 2023/24 Proposed Budget

City of Fort Bragg
FY 2023/24 Proposed Budget
As of June 30, 2023
Bernie Norvell Jason Godeke
Mayor Vice Mayor
Tess Albin-Smith Marcia Rafanan Lindy Peters
Councilmember Councilmember Councilmember
Peggy Ducey
City Manager

ELECTED AND APPOINTED CITY OFFICIALS

City of Fort Bragg
FY 2023/24 Proposed Budget
As of June 30, 2023

CITY COUNCIL
City Council Committees
Planning Commission

RESIDENTS OF CITY OF FORT BRAGG

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

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

FINANCE & IT

COMMUNITY

DEVELOPMENT POLICE

MASTER ORANIZATIONAL CHART

City of Fort Bragg
FY 2023/24 Proposed Budget
The annual operating budget is the primary short-term financial plan for the City and the Municipal Improvement District No. 1. The operating budget serves as the policy document to implement City Council goals and objectives. It sets forth estimates of resources available to fund services consistent with Council directives. Since no budget is an absolutely accurate predictor of future events, there must be some flexibility to make adjustments during the year, provided these adjustments do not materially alter the general intent of the City Council when adopting the budget. These guidelines are intended to provide that flexibility and to establish adequate controls through budget monitoring and periodic reporting to ensure that the overall distribution of resources achieves the results intended by the City Council.

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

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

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

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

BUDGET GUIDELINES

City of Fort Bragg
FY 2023/24 Proposed Budget
The Adopted and adopted Budget should provide a comparison with the preceding year's actual results and current year's projected results for each category of revenue and expenditure shown in the budget. Descriptions of service levels to be provided under the Adopted and adopted Budget will be included along with statements of services reduced or eliminated and services improved or added, as compared to the current year.

4. City Council's Budget Principles. Each year, the Adopted and adopted Budget is developed in accordance with the Council's established budget principles:
• Conservative 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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CITY OF

FORT BRAGG

FISCAL POLICIES
Fiscal Year
2024
Proposed Budget
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FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
The City of Fort Bragg's fiscal policies are established to ensure that the finances of the City and the Municipal Improvement District No. 1 (collectively referred to as "the City") are managed in a manner that will:
 Maintain a financially viable local government that provides adequate levels of municipal services to its citizens.
 Provide for financial flexibility in order to adapt to local and regional economic changes.  Preserve and enhance the sound fiscal condition of the City.

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

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

FISCAL POLICIES

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
expenditures in major budgetary funds. This report will be followed by a presentation of the Comprehensive Annual Financial Report to the Council before January 31. f. Semi-annually, at a mid-year budget session, there will be a comprehensive review of the operations to date in comparison to the existing budget. Projections of revenues and expenditures through the end of the fiscal year will be submitted to the City Council at the midyear budget session.

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

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

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
e. Surplus fund balances (and working capital in enterprise funds) may be used to increase reserves, fund Capital Improvement Projects, fund capital outlay or be carried forward to fund one-time special project/program expenses.

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

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

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

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

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

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
and maybe tapped into, with Council authorization, for unforeseen operating or capital needs. In FY 2022/23 the reserve is funded at 20%.
• Litigation Reserve: The City will maintain a Litigation Reserve to cover unforeseen legal expenses, including unbudgeted legal, defense and settlement costs that are not covered by the City's insurance pool. The Litigation Reserve is replenished each year through the budget process. The City Manager shall approve all charges against this reserve and, on a quarterly basis, the Finance Director shall report to the City Council the amount and types of litigation that have been funded by the Litigation Reserve. In FY2021/22 the reserve is funded at $200k.
• Recession Reserve: The General Fund will maintain a Recession Reserve for the purpose of stabilizing the delivery of City services during periods of severe operational budget deficits and to mitigate the effects of major unforeseen changes in revenues and/or expenditures as typically experienced during times of recession. The fund is established at an amount equivalent to 10% 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 10% of each Enterprise Fund's operating budget. City Council approval is required before expending any portion of this committed net position.
e. Internal Service Fund Reserves. Each year, the unrestricted net position in each of the City's Internal Service Funds is held in reserve within the Internal Service Fund. These reserves are intended to help pre-fund large purchases and repairs and avoid big annual swings in funding needs.
• Facility Repair & Maintenance Reserve. The reserve is funded based on an analysis of expected repairs and useful lives of the buildings and equipment funded by the Facilities Repair & Maintenance Internal Service Fund. A ten-year Facilities Maintenance & Repair Plan which provides guidance for establishing required annual contributions to the Facility Maintenance & Repair reserve has been established. The plan is adjusted annually as part of the budget preparation process.
• Fleet & Equipment Services Reserve. The City maintains a reserve in the Fleet & Equipment Services Internal Service Fund to enable the timely replacement of vehicles and depreciable equipment. A ten-year Vehicle and Equipment Replacement Plan has been established.
• Information Technology (I.T.) Reserve. The City maintains a reserve in the Technology Maintenance & Replacement Internal Service fund to enable the timely replacement of depreciable equipment. A five-year I.T. long-term plan has been established. f. Debt Service Reserves. Reserve levels for Debt Service Funds are established and maintained as prescribed by the bond covenants authorized at the time of debt issuance.

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
g. Unfunded Liabilities. Prepayments made against unfunded liabilities may lower the unfunded liability and result in significant savings in the long term. Each year 50% of any realized year-end surplus shall be applied to the City's two unfunded liabilities. Priority shall be given to the CalPERS plan unfunded liability over the OPEB plan unfunded liability. Any payment of unfunded liabilities shall be considered a one-time payment and will not be included in the calculation of the City's operating deficit/surplus:
• CalPERS. The City continues to accrue liabilities relating to the California Public Employees' Retirement System pension plan provided to its employees. • OPEB Trust Fund. The City maintains an irrevocable trust fund for retiree medical benefit obligations.
• Section 115 Trust. The City maintains a trust for future CalPERS liabilities. 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

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.

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
• 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.
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 2023/24 Proposed Budget

14. Pension Policy
a. 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. b. 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. c. 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.
d. 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. e. 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. f. 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.

I. 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.
b. The interest rate on the POBs or LRBs shall be at least 2.5% less than the current

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
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. g. 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 2023/24 Proposed Budget

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

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

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

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

CITY OF FORT BRAGG

STATEMENT OF INVESTMENT POLICY

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget
It is the policy of the City Council that investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk changes or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

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

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

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

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

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

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

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

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed 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.

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

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

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

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

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

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

FISCAL POLICIES
City of Fort Bragg
FY 2023/24 Proposed Budget

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

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

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CITY OF

FORT BRAGG
BUDGET

SUMMARY
Fiscal Year
2024
Proposed Budget
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BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

CITY OF FORT BRAGG
FY 2023/24

PROPOSED BUDGET

SUMMARY SCHEDULES

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Audited Projected Projected
Fund Fund Balance Projected Estimated Net Fund Balance Net Fund Balance No. Fund Type/Name at 06/30/22 Revenue Expenditures Transfers at 06/30/23 Revenue Appropriations Transfers at 06/30/24 110110 Unassigned 2,400,901 $ 11,030,280 $ 10,769,945 $ (551,224) 745,619 $ 11,624,780 $ 11,540,795 (405,850) $ 423,753 $ Section 115 Contribution (1,364,392) $ -
Nonspendable 11,986 - - - 11,986 - - 11,986
Commited- 2021 Lease Revenue Bonds 3,500,000 3,500,000 - - 110 GF Operating Reserve- Committed 1,989,419 - - - 1,989,419 - - (258,300) 1,731,119 112 GF Recession Reserve 489,929 - - - 489,929 - - 664,150 1,154,079114 GF Litigation Reserve 200,000 - - - 200,000 - - 200,000 Total General Fund excluding Commited Funds 8,592,235 11,030,280 12,905,553 (551,224) 3,436,953 11,624,780 11,540,795 - 3,520,937 116 General Plan Maint Fee Fund 139,061 - - - 139,061 250 - - 139,311117 Housing Trust Funds 75,644 - - - 75,644 250 - - 75,894 118 PLHA - - - - - 106,856 106,856 - -
120 Parking 34,791 - - - 34,791 100 - - 34,891
122 Parkland Monitoring/Reporting 128,478 800 - - 129,278 1,000 - - 130,278124 Tobacco License Fee 19,569 3,000 - - 22,569 3,000 - - 25,569 125 State Disability Access Fee 15,030 3,724 - - 18,754 3,120 - - 21,874 139 Cops AB1913 Allocation - 165,271 165,271 - - 170,229 170,229 - - 167 Asset Forfeiture 411,937 12,000 110,867 442,994 756,064 23,000 146,000 - 633,064 176 RDA Housing Successor 184,418 2,000 - - 186,418 2,000 - - 188,418 190 Construction/Demolition Ord Fees 598 - - - 598 - - - 598 220 Waste Mgt Community Benefit Pymt 269 - - - 269 - - - 269 221 Highw ay User Tax (Gas Tax) - 206,579 206,579 - - 227,387 227,387 - - 222 RMRA - Gas Tax 21,320 157,761 79,081 (100,000) - 1,328,844 176,824 (1,152,020) -223 STP D1 MCOG Streets/Hw y ** 1,266 - - - 1,266 439,356 - (439,356) 1,266 230 Traffic & Safety - 4,100 4,100 - - 3,800 3,800 - -
250 Special Sales Tax-Street Repair 2,496,346 1,117,500 369,130 (296,339) 2,948,377 1,121,100 255,219 (2,526,604) 1,287,654 280 Fire Equipment Fund 212,855 57,875 - - 270,730 58,446 - - 329,176285 OJ Park Maintenance Fund 2,110 - - - 2,110 - - - 2,110 Total Special Rev Funds, Restricted 3,743,692 1,730,610 935,029 46,655 4,585,929 3,488,738 1,086,315 (4,117,980) 2,870,372 131 CDBG Unclassified Program Income 7,028 - - - 7,028 - - - 7,028 162 CDBG Program Income Account 6,088 254,000 - (162,000) 98,088 244,398 - (226,398) 116,088 314 MCOG OWP 1,613 15,000 15,000 - 1,613 204,062 42,062 (162,000) 1,613 315 2014 CDBG Grants 24,188 - - - 24,188 - - - 24,188
319 Department of Water Resources - 300,000 - (300,000) - 10,331,000 - (10,631,000) (300,000) 326 HCD HOME Grant - 2013 (TBRA Program) - - - - - - - - -329 State Grants 281,452 - (281,452) - 748,029 92,000 (656,029) - 330 Federal Grants - 75,400 - (75,400) - 205,300 - (205,300) - 331 CDBG 2016 10,308 - 10,308 - - - 10,308
333 2017 CDBG Grants 315,677 (33,871) 281,806 - - - - - - 334 2020 CDBG Grants 122,426 (15,924) 248,264 122,196 (19,566) 1,200,277 429,834 (750,877) - 335 CDBG COVID Grants - 593,155 593,155 - - - - - -
336 ARPA Funds 872,081 872,081 - - 1,744,162 - - (1,744,162) - 337 Noyo Harbor Blue Economy 35,000 35,000 - - 500,000 500,000 - - Total Special Rev Funds, Grants 1,359,409 2,376,293 1,173,226 (696,656) 1,865,821 13,433,066 1,063,896 (14,375,766) (140,775) FY 2023/24 Budget
City of Fort Bragg FY2023/24 Summary of Revenue, Expenditures & Fund Balance FY 2023/24 BUDGET FY 2022/23
General Fund
Special Revenue Funds, Restricted***
Special Revenue Funds, Grants***

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Audited Projected Projected
Fund Fund Balance Projected Estimated Net Fund Balance Net Fund Balance No. Fund Type/Name at 06/30/22 Revenue Expenditures Transfers at 06/30/23 Revenue Appropriations Transfers at 06/30/24 407 Coastal Trail Construction 13,408 - - - 13,408 - - - 13,408 408 2025 Pavement Preservation Project - - - - - - 230,000 230,000 - 415 Central Coastal Trail Construction (18,675) - - - (18,675) - - - (18,675) 419 Bainbridge Park Improvements (Wiggly Giggly) - - 341,779 377,952 36,173 - - - 36,173 420 Maple Street Storm Drain rehabilitation (100,000) - - 100,000 - - - - - 421 2022 Street Resurfacing & Structural Repair Pro - - 296,339 296,339 - - 4,178,029 4,178,029 - 422 Rt 1 Pedestrian Access Improvements - - - - - - - - - 423 Tow n Hall Bathroom and Window s - - 40,000 40,000 - - 140,000 140,000 - 424 Main Street Fire Station Rehab - - 39,804 39,804 - - 150,572 150,572 - 426 Municipal Broadband - 103,500 103,500 - - 2,120,191 2,120,191 - 427 City Facility Roof & Repairs - 105,000 105,000 - - 370,000 370,000 - 428 EV Charging Stations - - - - - 232,951 232,951 -
Total Capital Project Funds (105,267) - 926,422 1,062,595 30,906 - 7,421,743 7,421,743 30,906 520 Facilities Maint & Repair 680,261 216,030 120,225 (345,000) 431,066 210,500 128,498 (510,000) 3,068 521 Technology Maint & Repair 106,728 612,223 619,644 - 99,307 618,972 708,636 - 9,643 522 Fleet & Equipment Services (16,842) 459,000 838,205 183,630 (212,417) 484,513 472,580 205,300 4,816 Total Internal Service Funds 770,147 1,287,253 1,578,074 (161,370) 317,956 1,313,985 1,309,715 (304,700) 17,527 610 Water Enterprise O&M 94,934 2,966,560 2,707,412 - 354,082 3,009,060 2,673,136 254,160 944,166 640 Water Enterprise Capacity Fees 595,911 55,500 - - 651,411 51,000 - - 702,411 614 Water Enterprise Non-Routine Maintenance 15,262 300 - - 15,562 100 - - 15,662 612 Water Enterprise Recession Reserve 89,780 - - - 89,780 - - 177,534 267,314 615 Water Enterprise Capital Reserve 6,159,409 50,000 - (3,800,000) 2,409,409 10,000 - (1,724,194) 695,215 651 Water Capital Projects 625,450 - 4,309,354 4,100,000 416,096 - 12,569,703 12,569,703 416,096 Total Water Enterprise Unrestricted Net Position 7,580,746 3,072,360 7,016,765 300,000 3,936,340 3,070,160 15,242,839 11,277,203 3,040,864 710 Wastew ater Enterprise O&M (1,048,066) 3,451,140 2,427,118 184,850 160,806 3,496,756 2,563,726 (230,685) 863,152 720 Clean Water Education Fund 2,795 - - - 2,795 - - - 2,795 740 Wastew ater Enterprise Capacity Fees 711,379 54,000 - - 765,379 28,000 - - 793,379 712 Wastew ater Enterprise Recession Reserve 95,931 - - - 95,931 - - 160,442 256,373 714 Wastew ater Enterprise Non-Routine Maintenanc 236,674 - - - 236,674 - 53,000 - 183,674 715 Wastew ater Enterprise Capital Reserve 3,093,909 10,000 - 780,000 3,883,909 7,000 - (1,345,267) 2,545,642 716 Wastew ater Capital Projects 33,309 - 780,000 780,000 33,309 - 1,330,000 1,330,000 33,309 717 USDA Debt Service Reserve 3,518 - - 3,518 - - 3,518 Wastewater Unrestricted Net Position before Debt 3,129,449 3,515,140 3,207,118 1,744,850 5,182,321 3,531,756 3,946,726 (85,510) 4,681,842 717 JPFA - Wastew ater Treatment Plant (4,740,000) - 184,850 184,850 (4,555,150) - 185,010 185,010 (4,370,140) 810 CV Starr Enterprise 2,102,899 2,082,575 20,323 2,129,144 2,120,714 (216,071) (187,318) CV Starr Operating Reserve 974,706 - - 974,706 - - 974,706 CV Starr Capital Reserve 1,300,000 - - 1,300,000 - 1,300,000 - - 812 CV Starr Enterprise Recession Reserve - - 216,071 216,071 Starr Center Enterprise Unrestricted Net Position 2,274,706 2,102,899 2,082,575 - 2,295,029 2,129,144 3,420,714 - 1,003,459 Total Enterprise Funds 12,984,901 8,690,399 12,491,309 300,000 6,858,540 8,731,061 22,795,288 11,376,703 4,356,025 Total - All Funds 27,345,117 $ 25,114,834 $ 30,009,612 $ 0 $ 17,096,105 $ 38,591,630 $ 45,217,752 $ - $ 10,654,992 $ 175 Successor Agency to RDA (3,079,811) $ 382,100 $ 384,627 - (2,922,338) $ 390,340 $ 377,757 - (2,744,755) $ Total Fiduciary Funds (3,079,811) 382,100 384,627 - (2,922,338) 390,340 377,757 - (2,744,755) City of Fort Bragg FY2023/24 Summary of Revenue, Expenditures & Fund Balance Capital Project Funds:

Internal Service Funds*
Enterprise Funds*
FY 2023/24 Budget
FY 2023/24 BUDGET FY 2022/23

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

INTRODUCTION
The City of Fort Bragg's combined annual budgeted appropriations for FY 2024 is $45.3 million. This amount includes appropriations from all funds ($45.3M) and transfers ($23.7M). Combined appropriations and transfers for FY 2024 are $14.1 million more than projected for FY 2023.

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 $45.3 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 2023/24 Proposed Budget
ALL FUNDS – FUND BALANCE
The FY 2024 projected all funds year-end fund balance is $11.7 million, down from the FY 2023 balance of $19.8 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 2024 Budget is approximately $1.6 million.

FY 2023/24

PROPOSED
Total All Funds Balance $ 10,852,067
Less Nonspendable (inventory, etc.) 11,986
Less Restricted Reserves (externally enforceable)
Special Revenue Funds 2,870,372
Operating Grants (140,775)
Debt Service Reserve 3,518
Less Committed Reserves (Set by Council resolution)
General Fund Operating Reserve 1,731,119
Water Operating Reserve 944,166
CV Starr Operating Reserves 984,463
Wastewater Operating Reserve 863,152
General Fund Recession Reserve 1,154,079
Water Recession Reserve 267,314
CV Starr Recession Reserve 216,071
Wastewater Recession Reserve 256,373
Water Capital Reserve 710,877
Wastewater Capital Reserve 2,729,316
Capital Projects in Process 480,311
CV Starr Capital Reserves -
Internal Service Fund Reserves 17,527
Litigation Reserve 200,000
WWTP Debt (4,370,140)
Unassigned/Unrestricted Balance $ 1,922,338
FY 2023/24
Detail of Unassigned/Unrestricted Balanc PROPOSED
General Fund $ 423,753
Water Enterprise 702,411
Wastewater Enterprise 796,174
Total Unassigned/Unrestricted Balance $ 1,922,338

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

FUND BALANCE TRENDS
The City's all funds balance is likely to
decrease in FY 2024 by approximately
$8.1 million. The proposed budget includes
$12.5 million for Water - Capital
Improvements, $1.3 million in CV Starr,
and $1.3 million for Wastewater Capital
Improvements. 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 $300k to $17k. These include Fleet, Facilities, and I.T. The IT Fund’s annual operating budget has more than doubled in operating expenditures due to the needed network and firewall upgrades, as worldwide cyber-attacks target organizations small and large.

The Fleet Fund saw an increase in the cost of new vehicles experienced nationwide as supply chain disruptions (in global semi-conductors shortages, supply of chips, and other disruptions caused by the pandemic) have created a new-vehicle scarcity in recent years, resulting in a seller's market.

According to research firm J.D Power, the average price paid for a new vehicle hit a record of $47,362 in December 2022. The City purchased seven vehicles in FY 2023, which included vehicles slated to be bought in FY 2022.

The City will receive $209k in reimbursements from the United States Department of Agriculture (USDA) for the vehicle purchased.

The Facilities Fund Budget includes deferred maintenance on the Police Department Roof, City Hall Roof, and the Town Hall bathrooms amounting to $510k. The fund balance is estimated to end the fiscal year at just $3,068. The City is seeking Grant opportunities to alleviate some of the funding pressure for these deferred maintenance projects.

The General Fund's fund balance is projected to increase by $84k from the projected FY 2024 ending fund balance as Transient Occupancy Taxes and Sales Tax strong performance from the last two fiscal years has begun to cool off. Conversely, the Grant staff time reimbursement is expected to increase by 34 percent from the prior fiscal resulting in an estimated surplus balance for the General Fund. In FY 2023, savings in personnel costs from vacant positions caused a $260k surplus projection, which will also increase the fund balance.

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

DISCUSSION OF REVENUE TRENDS - ALL MAJOR FUNDS
Overall, the City's revenues are estimated to increase by 62 percent ($13 million), mainly due to Grant revenues.
• General Fund revenue is expected to increase modestly by just 5% due to Grant Staff time reimbursements of $716k, which includes Community Development Block Grants (CDBG), Code Enforcement, Business Assistance Loan Program, the Water Meter Replacement Grant, Youth Opioid Resistance Fund Grant, Local Agency Technical Assistance (LATA) from the California Public Utilities Commission (CPUC) and the Coastal Commission Grant for the Noyo Harbor.

These grants reimburse the General Fund for at least 90 percent of six full-time positions and other staff time for work related to carrying out the Grant deliverables. • Water, Sewer, and CV, Starr’s Charges for Services Revenues, are estimated to increase by just

1.7 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. 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 current budget includes a budget to conduct a 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.

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 2020 and all of FY 2021 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 2020 and $700k of annual operating revenues in FY 2021. The center expects a reduction in general admission and registration revenues by about 37% in FY 2022. Still, admission revenues will likely return to pre-covid levels in FY 2024 as the center resumes operations full-time. The CV Starr Center was awarded a grant of $612k in FY 2022, allocated to their reserves to replace some of the lost revenues. • Special revenues and Capital Projects are projected to increase as well in the proposed budget.

These projects include Raw Water Line $4 million, Water Treatment Plant $5.2 million, and Municipal Broadband, $1.7 million: water Meter Replacement, $826k, and the Oneka Desalination Project, $800k. Grants with minimal contributions from the Enterprise Funds are funding these projects.
• Lastly, Internal Service Fund revenue is estimated to increase by 2 percent, or $27k. 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 2023/24 Proposed Budget
FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

FUND AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
General Fund
Property Taxes $ 1,085,532 $ 1,150,352 $ 1,176,309 $ 1,138,562 $ 1,150,257 1.0% Sales Taxes 2,028,010 2,215,161 2,178,000 1,939,200 1,959,500 1.0% Transient Occupancy Taxes 3,321,928 3,444,990 3,371,081 3,213,808 3,242,118 0.9% Other Taxes 810,652 851,622 832,442 884,801 903,985 2.2% Reimbursements 2,307,897 3,334,556 2,831,850 2,960,696 3,341,622 12.9% Charges for Services 45,369 62,387 70,546 82,664 81,343 -1.6% Intergovernmental 133,162 164,075 651,532 534,269 716,362 34.1% Licenses & Permits 91,567 86,176 95,413 90,490 94,293 4.2% Other Revenues 109,358 22,574 38,500 81,779 20,200 -75.3% Use of Money & Property (64,617) (166,317) 61,300 74,000 90,000 21.6% Fines & Forfeitures 12,181 51,396 31,500 30,010 25,100 -16.4% Total General Fund 9,881,040 11,216,969 11,338,472 11,030,280 11,624,780 5.4% Water
Charges for Services 3,288,053 3,005,288 2,970,342 2,915,560 2,960,060 1.5% Use of Money and Property 66,700 56,689 69,800 66,800 19,100 -71.4% Other 25,653 13,463 12,500 38,000 41,000 7.9%
Contributed Capital 346,561 44,837 20,000 52,000 50,000 -3.8% Total Water 3,726,967 3,120,277 3,072,642 3,072,360 3,070,160 -0.1% Wastewater
Charges for Services 3,707,788 3,570,257 3,212,050 3,432,640 3,486,756 1.6% Use of Money and Property 36,823 32,544 34,000 32,500 20,000 -38.5% Other Financing Sources (0) - - - - n/a
Contributed Capital 309,446 7,353 15,000 50,000 25,000 -50.0% Total Wastewater 4,054,057 3,610,153 3,261,050 3,515,140 3,531,756 0.5% Total Revenue - Operating Funds 17,662,064 17,947,400 17,672,164 17,617,780 18,226,696 3.5% C.V. Starr Center
Sales and Use Taxes 1,099,510 1,211,340 1,257,000 1,193,693 1,199,769 0.5% Property Taxes 262,787 268,596 272,625 280,324 283,127 1.0% Charges for Services (0) 982,540 578,882 578,882 596,248 3.0% Use of Money and Property 11,918 15,009 10,000 10,000 10,000 0.0% Other - - 10,000 40,000 40,000 0.0%
Total C.V. Starr Center 1,374,215 2,477,486 2,128,507 2,102,899 2,129,144 1.2% Special Revenue & Capital Project Funds
Special Revenue, Restricted 1,787,903 2,767,771 3,635,196 2,524,264 3,293,463 30.5% Special Revenue, Grants 5,266,209 3,636,259 10,831,473 1,582,639 13,628,341 761.1% Capital Projects - - - - - n/a
Total Special Revenue & Capital 7,054,112 6,404,029 14,466,669 4,106,903 16,921,804 312.0% Subtotal 26,090,391 26,828,914 34,267,340 23,827,582 37,277,645 56.4% Internal Service Funds
Facilities Maintenance 102,973 213,501 201,098 216,030 210,500 -2.6% Information Technology 272,450 497,457 471,859 612,223 618,972 1.1% Fleet & Equipment Services 255,422 342,307 409,513 459,000 484,513 5.6% Total Internal Service Funds 630,845 1,053,265 1,082,470 1,287,253 1,313,985 2.1% Subtotal before Transfers 26,721,237 27,882,179 35,349,811 25,114,834 38,591,630 53.7% Transfers 9,944,137 11,408,039 13,994,508 6,920,799 23,703,262 242.5% Total Revenue, All Funds $ 36,665,374 $ 39,290,218 $ 49,344,318 $ 32,035,634 $ 62,294,891 94.5%

ALL FUNDS

DETAIL OF REVENUES BY FUND
FY 2020/21 THROUGH FY 2023/24

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

EXPENDITURES BY FUNCTION /PROGRAM

FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Governmental Activities
General government $ 1,190,039 $ 2,062,314 $ 2,734,398 $ 2,539,012 $ 2,599,777 2.4% Community development 4,796,212 1,759,338 9,414,654 2,044,847 2,159,312 5.6% Public safety 5,114,834 5,962,762 6,277,383 5,986,361 6,514,091 8.8% Public works 2,350,692 3,677,477 6,245,762 3,234,401 9,839,569 204.2% Internal service 754,826 1,250,708 1,496,066 1,578,074 1,309,715 -17.0% Business-type activities - -
Water 1,687,319 2,676,419 14,229,448 7,018,765 15,242,839 117.2% Wastewater 3,036,895 3,942,009 3,697,753 3,389,968 4,131,736 21.9% CV Starr 1,228,893 2,145,403 2,567,760 2,082,575 3,420,714 64.3% Fiduciary Activities
Fiduciary 228,240 225,062 386,475 384,627 377,757 -1.8% Subtotal 20,387,951 23,701,492 47,049,700 28,258,631 45,595,509 61.4% Transfers Out 9,944,137 11,408,039 13,994,508 6,920,799 23,702,812 242.5% TOTAL ALL FUNDS $ 30,332,088 $ 35,109,531 $ 61,044,207 $ 35,179,431 $ 69,298,321 97.0%

ALL FUNDS

EXPENDITURE SUMMARY BY FUNCTION/PROGRAM
FY 2020/21 THROUGH FY 2023/24
$2,599,777 , 6%
2,159,312 , 5%
6,514,091 , 14%
9,839,569 , 22%
- , 0% 1,309,715 , 3%
15,242,839 , 34%
4,131,736 , 9%
3,420,714 , 7%
Governmental Activities
General government
Community
development
Public safety
Public works
Internal service
Business-type activities
Water
Wastewater
CV Starr

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
DISCUSSION OF EXPENDITURE TRENDS – ALL MAJOR FUNDS
The FY 2024 Budget expenditures total $45 million with Internal Service Funds, Fiduciary Funds, internal charges for service, and transfers between funds excluded from the total, with $69 million including transfers.

General Government is budgeted to increase by 2.4% or $61k in FY 2024 due Insurance costs are set to increase by 3% for retiree medical, property and general liability increases of 15%. Cost of Living Adjustments for employees and promotions within the department. Furthermore, the City returned the $3.5 million (from the 2021 Revenue Lease Bonds issuance in November 2021 restructuring the City’s Unfunded Liability Debt with CalPERS) decreasing the total debt, and eliminated the principal payment of $85k in fiscal year 2023. In the proposed Budget, the debt payment of $440k will be realized in the fiscal year.

Community Development is expected to increase by $2.1 million or 5%. Most of the increase in this function is due to additional grant activity in FY 2024 for Community Development Block Grants (CDBG), the Department of Water Resources- Raw Water Line construction and Oneka Buoy of $4.5 million, State Revolving Fund $5.2 million and Coastal Commission Grant of $500k for the Noyo Harbor Blue Economy initiative. A detailed list of City grants can be found in the Grants & Special Revenue Section.

Public Safety is budgeted to increase by 8.8% or $528k. The projected year end balance in Fiscal year 2023 of $5.9 million is significantly lower than Budget from personnel costs savings due to vacant positions within the department. 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 the latest survey held in January 1, 2023, there were no increases, confirming that the City’s salaries and benefits were competitive when compared to other local law enforcement entities, however, a 3% Cost of Living Adjustment is being included in the fiscal year 2024 Budget per the Fort Bragg Police Association MOU.

Furthermore, the Budget includes, a 5% increases to dispatch service costs provided by the City of Ukiah and academy costs of $40k to send four recruits to the academy. Once these recruits graduate the department should be fully staffed in the fiscal year with the hiring of a permanent Police Chief in July 2022.

Public Works is budgeted to increase by $8.2 million. Year-over-year increases are due to increased capital project expenditures, demonstrating capital projects' irregular nature. The Street Rehabilitation 2023 project is estimated to expend $3.6 million; Municipal Facilities $510k, and the Pavement Preservation design costs of $230k with construction in fiscal year 2025.

Water Enterprise expenditures are budgeted to increase by 21% or $8.2 million due to the significant Water capital improvements $13.6 million projects proposed in the fiscal 2024 Budget with a $1.3 million funded by the Enterprise and the rest funded by Grants. These include: Raw Water Line engineering and construction, Water Treatment Plant overhaul, Oneka Buoy Project and Water Meter Replacement funded by Community Development Block Grants. Insurance, utility costs and general supplies are also projected to increase by 10% due to increase in costs in the current fiscal year.

Staff is actively pursuing grant funding for these projects and future water enterprise projects.

Additionally, the Water Enterprise Budget includes the last debt payment of $337k for the 2014 Revenue Bonds maturing in June, 2024. The Enterprise will have no long-term debt come fiscal year end.

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Wastewater Enterprise expenditures are budgeted to increase by 21% in FY 2024. Utility costs increases for electric has caused 174% increase year-over-year together with bio-solids removal costs of $325k annually. Property insurance rates will also increase by 25%.

The C.V. Starr Center Enterprise expenditures are budgeted to increase by 87% 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 restrictions. Additionally, the Center’s capital work plan is estimated to expend $1.3 million in improvements to the Air intake system. Utility and personnel costs continue to increase yearly due to rising energy costs experienced nationwide. The Center is currently evaluating existing fees to ensure they are keeping up with the rising costs.

FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

ALL FUNDS AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Salaries & Wages $ 4,127,459 $ 5,408,108 $ 6,504,015 $ 6,037,963 $ 6,844,377 13.4% Benefits 3,086,657 3,296,614 3,382,178 3,150,420 3,637,901 15.5% Materials & Services 9,637,732 8,937,663 16,429,892 9,020,096 8,273,691 -8.3% Capital 319,301 1,505,223 17,025,550 6,327,776 23,121,446 265.4% Debt Service 286,121 380,966 1,420,083 1,445,764 1,081,393 -25.2% Depreciation 780,562 790,001 - - - 0.0%
Subtotal 18,237,831 20,318,575 44,761,718 25,982,018 42,958,807 65.3% Indirect Expenses 1,921,879 $ 3,157,855 1,901,507 1,891,986 2,258,945 19.4% Fiduciary Funds 228,240 $ 225,062 386,475 384,627 377,757 -1.8% Subtotal 20,387,951 23,701,492 47,049,700 28,258,631 45,595,509 61.4% Transfers Out 9,944,137 11,408,039 13,994,508 6,920,799 23,702,812 242.5% TOTAL ALL FUNDS $ 30,332,088 $ 35,109,531 $ 61,044,207 $ 35,179,431 $ 69,298,321 97.0% *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 2020/21 THROUGH FY 2023/24

ALL FUNDS

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

OVERVIEW
The City of Fort Bragg’s fiscal year (FY) 2024 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 2021 and continued the strong performance into FY 2022, recording record highs. In FY 2023, the estimated tax revenue is expected to decline by 7% compared to the prior year as the tax revenues stabilize from the record highs recorded earlier.

The FY 2024 budget is estimated to collect $11.6 million in revenues with appropriations of $11.5 million, a balanced budget achieving the number one priority of the City Council Financial Goals as listed below.

Furthermore, the Budget establishes the recession reserve funds at 10% from 5% of operating expenditures to weather economic uncertainties in the fiscal year.

The City established the Section 115 trust to alleviate future pension increases in FY 2023 by contributing $1.6 million from the unassigned fund balance, with an additional $150k proposed in the FY 24 operating budget.

The current General Fund budget reflects a continuance of conservative budgeting from FY 2023 while remaining cautiously optimistic. Featured in the five-year forecast is a likely recession in FY 2024. The Proposed Budget allocates funds to emergency reserves and operating reserves to combat some estimated declines in the General Fund’s top revenue categories.

Furthermore, the Proposed Budget includes Cost of Living Adjustments of 2% for SEIU and 3% for FBPA.

BUDGET SUMMARY – GENERAL FUND

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

PRIORITIZED LIST OF FINANCIAL GOALS
At the mid-year budget review meeting in March 2023, the City Council produced the following prioritized list of financial goals. Staff has used the prioritized list as guidance in preparing the FY 2024 budget:

PRIORITY GOAL ACHIEVED
1 Adopt a balanced budget
2 Provide additional contributions to Section 115
3 Maintain current level of service (no staff layoffs, no program cuts) 4 Maintain Operating Reserves and Litigation Reserves (20%) 5 Provide funding for Recession/Emergency Reserves (5% to 10%) 6 Provide Cost of Living Adjustment to Staff
The Proposed Fiscal Year 2024 budget Surplus is $84k.

Although the General Fund will enjoy a balanced budget for FY 2024, the City remains focused on enhancing General Fund revenue streams and controlling costs in future years. The City has taken significant strides to address its CalPERS unfunded liability in FY 2022 by restructuring the debt and adopting the City’s Pension Policy.

However, increases in personnel costs expected to continue beyond FY 2024, particularly benefit and insurance costs, will continue to put pressure on the City’s General Fund revenues, and the possibility of a recession in 2024 would cause declines of about 5-10% in General Fund tax revenues.

GENERAL FUND – FUND BALANCE
The General Fund balance for FY 2022 through FY 2024.

PROPOSED
FY 2023/24
Operating Revenue $ 11,624,780
Operating Expenditures (11,540,795)
Operating Surplus(Deficit) $ 83,985
FY 2021/22 FY 2022/23 FY 2023/24

AUDITED PROJECTED PROPOSED
General Fund Balance $ 8,592,235 $ 3,436,953 $ 3,520,937

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Before the Fiscal year 2017, the General Fund balance was steadily increasing, as shown in the graph above; however, the balance decreased significantly in FY 2017 due to the correction of errors discovered in the then Cost Allocation Plan, resulting in the General Fund repaying the prior year cost over allocations back to the Enterprise Funds. The balance stabilized with the FY 2018/19 small budget surplus.

In FY 2020, the General Fund was the most impacted by the onset of the Pandemic because it relies on TOT, and Sales Tax revenues (which account for about 50% of the General Fund's revenues) were impacted by the economic shutdown, recording a decrease of $651k in Transient Occupancy Tax. This caused a Budget deficit of $437k, reducing the fund balance to $2.6 million.

In FY 2021, as mentioned previously, the General Fund tax revenues rebounded, together with Staff cuts and Service level reductions, resulting in a $1.5 million Budget surplus. The strong Tax Revenue gains continued into FY 2022, with a Budget surplus of $528k resulting from several rounds of government relief from earlier in the pandemic, allowing Americans to build up their finances and record strong consumer spending. The Pandemic also created more “local travel” from neighboring counties and cities as international travel was restricted, boosting the City’s revenues.

FY 2023, price pressures initially grew because of supply-chain bottlenecks and high commodity prices, causing a high inflation rate- 9% CPI in June 2022 coupled with the Federal Reserve raising interest rates from record lows during the height of the pandemic. Consumer spending, the primary driver of economic growth, has stagnated recently after jumping at the start of the year. A slowdown in business investment and a weak housing market influenced by interest rates have contributed to a broader economic cooling. General Fund Tax revenues recorded a 3% decline in the first two quarters and are forecasted not to meet Budget estimates at fiscal year-end. $4.76
$5.39
$3.11
$2.96
$3.10
$2.69
$4.10
$8.60
$3.40 $3.50
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Projection 23/24 Proposed Millions
General Fund - Fund Balance History

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

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 2024 Budget commits the fund balance in the General Fund to the following reserves:
• $1,731,119 to the General Fund Operating Reserve (15% of operating expenditures) • $1,154,079 to the Recession Reserve (10% of operating expenditures) • $200k to the Litigation Reserve
The General Fund’s “unassigned fund balance” in FY 2024 is estimated at $423,753.

GENERAL FUND REVENUES
Fort Bragg’s General Fund relies 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 2024 by 5%, with the total annual revenue projections at $11.6 million. In the FY 2019 budget, staff changed the revenue forecasting methodology from “conservative” to “most likely”. Based on macroeconomic factors causing some uncertainty in the outlook for FY 2024 driven by the collapse of regional banks, inflation, energy prices remaining stubbornly high, and interest rate hikes which have curbed business investment and caused some change in consumer spending habits, the FY 2024 current General Fund budget is based on conservative budgeting from FY 2022 while remaining cautiously optimistic about the current and future economic conditions.

The FY 2022/23 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 2023 Adopted Budget and prior year audited actuals would be significant, resulting from financial trend data becoming available as we move through the projected economic slowdown in 2024.

PROPOSED
FY 2023/24
Total General Fund Balance $ 3,520,937
Less Nonspendable (Inventory, etc.) 11,986
Less Committed Reserves (Set by Council Resolution)
Operating Reserve 1,731,119
Recession Reserve 1,154,079
Litigation Reserve 200,000
Unassigned Balance $ 423,753

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Taxes remain the largest resource (68% of revenue) supporting General Fund operations in the FY 2024 Operating Budget, with the primary taxes comprising TOT, Sales, and Property taxes. Reimbursements are the second-largest resource supporting General Fund operations representing 25% of the total revenue Budget. These include reimbursement of personnel costs and overhead from the City’s Enterprise Funds and Special Revenue Funds to the City’s General Fund. Intergovernmental is projected to increase by 89% due to the many grants the City has been awarded to improve the City’s infrastructure, Economic opportunities and to address some of the city's challenges, such as housing and jobs. Each of the major General Fund revenue sources is described with information about historical trends and current budgeted revenues in the pages that follow.

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 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

GENERAL FUND AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR Property Taxes $ 1,085,532 $ 1,150,352 $ 1,176,309 $ 1,138,562 $ 1,150,257 1% Sales Taxes 2,028,010 2,215,161 2,178,000 1,939,200 1,959,500 1% Transient Occupancy Taxes 3,321,928 3,444,990 3,371,081 3,213,808 3,242,118 1% Other Taxes 810,652 851,622 832,442 884,801 903,985 2%
Total Taxes 7,246,122 7,662,124 7,557,831 7,176,372 7,255,860 1% Reimbursements 2,307,897 3,334,556 2,831,850 2,960,696 3,341,622 13% Charges for Services 45,369 62,387 70,546 82,664 81,343 -2% Intergovernmental 133,162 164,075 651,532 534,269 716,362 34% Licenses & Permits 91,567 86,176 95,413 90,490 94,293 4% Other Revenues 109,358 22,574 38,500 81,779 20,200 -75% Use of Money & Property (64,617) (166,317) 61,300 74,000 90,000 22% Fines & Forfeitures 12,181 51,396 31,500 30,010 25,100 -16% TOTAL GENERAL FUND $ 9,881,040 $ 11,216,969 $ 11,338,472 $ 11,030,280 $ 11,624,780 5% $1.63 $1.67 $1.60 $1.53
$1.79 $1.73 $1.80
$2.00 $2.09
$1.94 $1.96
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Projected
23/24
Proposed
Millions
General Fund Sales & Use Tax History

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
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 revenue generally coincides with the overall strength of the local, regional, and the national economy. The City's Sales Tax projections in FY 2023 were that revenues would end the fiscal year at $2.1 million, down 2% from the prior year's result, as the Federal Reserve has increased interest rates to fight inflation by slowing the economy. The Federal Reserve approved another quarter percentage point interest rate increase in May 2023, marking the Fed’s 10th consecutive rate increase that will bring its benchmark federal funds rate to a range of 5% to 5.25%, a 16-year high.

Consumer spending, the primary driver of economic growth, has stagnated recently after jumping at the start of the year, declining in February and March and then rising by 0.4% in April 2023. According to the Labor Department, the Consumer Price Index (CPI), a closely watched inflation gauge, was 4.9% in April 2023, down from March 5% increase. The inflation reading has declined from a recent peak of 9.1% in June 2022 but remains historically high.

The outlook of Sales Tax revenue remains cautious as inflation remains in the economy with a shift in consumer spending seeing a more cautious customer. April’s modest increase in retail spending may reflect consumers’ continued shift from buying large amounts of goods during the pandemic to paying more on airfares, hair salons, travel, and other services. The construction category, which recorded historical highs in the last two fiscal years, is expected to decline as households spend less on home improvements that can easily be deferred in favor of services.

The County Pool, where most 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.

Overall, the City’s Sales Tax projection is conservative expecting to decline by 10% from FY 2022 but increase by a modest 1% from FY 2023.

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Transient Occupancy Tax (TOT)
Background
Transient Occupancy Tax (TOT) is a local tax that is applied to the cost of a hotel or other lodging stays of less than 30 days. In 2016, with the passage of local Measures AA and AB, the City’s TOT rate increased from 10% to 12%. This tax is a revenue source solely for the General Fund. TOT is collected by lodging establishments and remitted to the City monthly. Factors influencing TOT revenues include vacancy rates, business and leisure travel changes, new hotels, hotel expansion, and room rate increases. TOT is the largest General Fund revenue source accounting 28% of total revenue.

Analysis
Fort Bragg is a tourist-based economy and depends heavily on tourism for its revenue. TOT had the most significant reduction due to COVID in FY 2020, recording a budget shortfall of $660k. TOT revenues rebounded in FY 2021 and recorded the best year to date at $3.4 million in FY 2022. In FY 2023, the first two quarters recorded declines of 2% when compared to the prior fiscal year.

The average Occupancy rates between November to March were also down by 15% from December to March 2023, caused by the winter storms and wet weather experienced by the City and most of California.

The Average Daily Rate (ADR) cooled in March, down 10% from the prior year, as the local lodging industry faced competition from the Lake Tahoe market, recording its 3rd largest snowfall seen in 22 years, flocking tourists to the mountain.

The Visit Fort Bragg Campaign continues to market Fort Bragg as a visitor destination funded by Measure AB. Although this revenue sector has recorded strong results in the past two fiscal years, the FY 2024 Budget projections are rather conservative, projecting a modest 1% growth compared to the estimated FY 2023 year-end total, but down 6% compared to FY 2022 – its best year. Staff will closely monitor the revenues during the fiscal year and will have a better model to determine whether this trend will continue. $1.90 $2.00 $2.15
$2.62 $2.69
$2.20
$3.32 $3.44
$3.21 $3.24
0 0.5
1 1.5
2 2.5
3 3.5
4 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Projections
23/24
Proposed
Millions
Transient Occupancy Tax History

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Property Tax
Background
Property tax is an ad valorem (value-based) tax imposed on real property and tangible personal property within the City’s jurisdiction. It includes two major elements: secured or real property (e.g., house and land on which the house was built) and unsecured or personal property (e.g., machinery). Under Proposition 13, the general property tax rate cannot exceed 1% of a property’s assessed value plus other assessments as approved by the voters. The assessed value of real property that has not changed ownership increases by the California Consumer Price index change up to a maximum of 2% per year.

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

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

Analysis
The FY 2024 Proposed Budget expects a modest 1% growth in Property Tax revenues to $1.15 million.

Unlike other tax revenue, property taxes were not impacted by COVID-19. The US economic growth slowed in the first quarter, and home prices fell in more parts of the country than in over a decade, fueled by the Fed’s aggressive interest rate hikes to slow the economy down.

According to Zillow, as of April 2023, median home values were $504k in the 95437 zip code, down 8.4% from the past year, with 82 residential home sales down from 129 units sold in the first three quarters of the fiscal year. The single family median home prices in the 95437 zip code have decreased to $581k from $700k a year ago.
$0.89
$0.97
$1.03 $1.03
$1.07 $1.10 $1.09
$1.15 $1.14 $1.15
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
Projections
23/24
Proposed
Millions
Property Tax History

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
ever, with home prices slowly declining, 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.

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 2024 franchise tax revenue is estimated to increase by 2 % as Solid Waste of Willits recently increased their prices by 3% to offset increases in operating costs. $0.49 $0.49 $0.50 $0.53
$0.56
$0.55
$0.61 $0.63 $0.61
$0.67
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
Projected
23/24
Proposed
Millions
General Fund Franchise Tax History

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Service and Program Charges

Service and program charges include the Intergovernmental, Charges for Services, and Reimbursements categories. Revenue for Service and Program Charges represents about 36% of total estimated General Fund revenues in FY 2023. The $4.3 million proposed budget for FY 2024 is an increase of 16% approximately $561k from the prior year.

Intergovernmental is consists of reimbursement for 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, the Youth Opioid Resistance Grant, Local Agency Technical Assistance (LATA) for Municipal Broadband from the California Public Utilities Commission (CPUC) and the Coastal Commission Grant for the Noyo Harbor Blue Economy initiative. These grants will reimburse the General Fund for at least 90 percent of six full-time positions and other staff time for work related to carrying out the Grant deliverables.

Charges for service are expected to decline by 2% related to a decline in building permits, PC hearings, sign applications and limited term permits in the fiscal year. Fingerprinting fees will likely record similar results to fiscal year 2023.

General Fund FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Detail of Revenue FYE AMENDED FYE PROPOSED
Services & Programs AUDITED BUDGET PROJECTED
Intergovernmental $ 164,075 $ 651,532 $ 534,269 $ 716,362 Charges for Services 62,702 65,546 82,714 81,343
Reimbursements 3,334,240 2,831,850 2,960,646 3,341,622
Totals $ 3,561,017 $ 3,548,928 $ 3,577,628 $ 4,139,327
$3.23
$3.70
$2.59
$2.91
$3.55
$2.50
$2.60
$3.60 $3.60
$4.14
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
Projections
23/24
Proposed
Millions
General Fund Service & Program Charges

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
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 2023 estimate for Reimbursements is $2.9 million, with a growth of 13% percent in FY 2024, related to increase in developer deposit reimbursements, interfund reimbursements for Streets costs funded from the Special Sales tax and RMRA Funding.

Cost Allocation reimbursements, for Internal service funds have recorded year over year increases and attributed to the direct allocation of Corporation Yard costs to non-General Fund activities.

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
Taxes
Property Taxes $ 402,971 $ 385,671 $ 455,741 $ 365,084 $ 368,766 1.0% VLF Swap 660,739 673,287 694,173 709,863 716,962 1.0%
Supplement SB 813 3,603 34,097 3,800 3,800 4,141 9.0%
Homeowners Property Tax Relief - - 2,967 2,967 2,967 100.0% Transfer Taxes 18,219 57,297 19,628 49,517 50,090 1.2%
Motor Vehicle In-Lieu Tax - - - 7,332 7,332 n/a
Sales and Use Taxes 1,995,831 2,100,885 2,150,000 1,912,500 1,932,700 1.1% Proposition 172 Sales Taxes 32,179 114,276 28,000 26,700 26,800 0.4% Transient Occupancy Taxes 3,321,928 3,444,990 3,371,081 3,213,808 3,242,118 0.9% Franchise Taxes 625,996 653,579 642,442 679,259 692,277 1.9% Business License Taxes 184,655 198,043 190,000 205,542 211,708 3.0% Total Taxes 7,246,122 7,662,124 7,557,831 7,176,372 7,255,860 1.1% Licenses & Permits
Business License Fees 62,873 63,224 68,713 63,100 64,993 3.0% Construction/Building Permits 14,734 12,455 15,000 14,000 15,000 7.1% Encroachment Permits 13,361 9,147 10,000 12,000 13,000 8.3% Other Licenses & Permits 598 1,350 1,700 1,390 1,300 -6.5% Total Licenses & Permits 91,567 86,176 95,413 90,490 94,293 4.2% Fines & Forfeitures
Parking Fines 9,390 37,518 20,000 10,000 10,000 0.0%
Miscellaneous Fines 2,791 13,878 11,500 20,010 15,100 -24.5% Total Fines & Forfeitures 12,181 51,396 31,500 30,010 25,100 -16.4% Use of Money and Property
Investment Interest 46,644 15,143 47,000 60,000 75,000 25.0% Rents and Concessions (119,885) (197,160) 14,300 14,000 14,000 0.0% Sales of Surplus Assets 8,624 15,700 5,000 - 1,000 n/a
Total Use of Money and Property (64,617) (166,317) 66,300 74,000 90,000 21.6% Intergovernmental
Grant Administration 133,162 164,075 651,532 534,269 716,362 34.1% Total Intergovernmental 133,162 164,075 651,532 534,269 716,362 34.1% Charges for Services
Community Development Fees 14,265 13,606 14,000 29,500 20,000 -32.2% Police Fingerprint Fees 22,031 33,578 42,000 42,448 42,872 1.0% Document Copies 5,153 6,336 6,800 6,700 7,000 4.5%
Construction & Demolition Fees 135 1,000 700 2,100 2,121 1.0% Returned Check Fees 1,008 1,953 1,546 1,386 1,500 8.2%
Police Witness Fees 518 134 500 300 350 16.7%
Other Charges for Services 9,134 15,518 9,546 10,766 7,500 -30.3% Total Charges for Services 45,429 62,702 65,546 82,714 81,343 -1.7% Reimbursements
City Exp Reimbursement - Developers 49,550 49,356 28,500 32,000 53,000 65.6% SB 90 Reimbursement 6,344 14,960 10,215 8,800 10,000 13.6% Booking Fee Reimbursement 9,700 17,025 14,000 29,000 25,000 -13.8% Internal Charges for Services 1,531,608 2,385,365 1,948,669 2,062,590 2,379,770 15.4% Interfund Cost Reimbursement 671,601 798,856 768,266 758,055 818,651 8.0% Training Reimbursement 9,935 15,257 16,000 38,000 22,000 -42.1% Other Reimbursements 29,102 53,421 46,200 32,200 33,200 3.1% Total Reimbursements 2,307,840 3,334,240 2,831,850 2,960,646 3,341,622 12.9% Other Revenues
Miscellaneous 109,358 22,574 38,500 81,779 20,200 -75.3% Total Other Revenues 109,358 22,574 38,500 81,779 20,200 -75.3% Total General Fund Revenue $ 9,881,043 $ 11,216,969 $ 11,338,472 $ 11,030,280 $ 11,624,780 5.4%

GENERAL FUND

DETAIL OF REVENUES BY CATEGORY
FY 2020/21 THROUGH FY 2023/24

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

DISCUSSION OF GENERAL FUND EXPENDITURE TRENDS
General Fund expenditures (including transfers-out) proposed in FY 2024 are $11.5 million an increase of $771k or 7%. Overall, the increases are primarily the result of increases in personnel costs, Cost of Living Adjustments, annual debt payments, retiree medical costs, and insurance costs. 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 decrease by 9%, primarily due to personnel cost savings and the restructure of the Assistant City Manger and Grant’s Co-ordinator positions to Community Development and Public works which was budgeted for in the FY 2023 Budget. Moreover, the City Manager compensation was much lower than originally Budgeted by $25k. The completion of the Compensation Study and the General Plan Maintenance Fee Study in FY 2023, will decrease the professional services budget in FY 2024.
 Non-Departmental Budget will see increases in FY 2024 of 4%, due to increases in Retiree medical costs of 3%, General Liability and Property Insurance of 25%. Professional services include a Cost Allocation Study to be undertaken in the fiscal year. Additional funding of $150k have been included to be contributed into the Section: 115 Trust with Public Agency Retirement Services (PARS).
 The Finance Department budget is proposed to increase by 12.9% from the estimated year end in FY 2023, primarily due to Cost of Living Adjustments, and the full annual cost of the recently hired Government Accountant in the fourth quarter in FY 2023. Armored car service cost have increased by 5% in last fiscal year.
 The Police Department budget is proposed to increase by 11.9% to $4.9 million as a result of increases in salary and benefit costs. 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 the latest survey held in January 1, 2023, there were no increases, confirming that the City’s salaries and benefits were competitive when compared to other local law enforcement entities, however, a 3% Cost of Living Adjustment is being included in the Fiscal year 2024 Budget per the Fort Bragg Police Association MOU and the realized annual costs of the four vacation positions (three officers and one community service position) resulted in budget savings in last fiscal year. The department transitioned from an interim chief in FY 2022 to hiring a new full-time Police Chief in FY 2023 and will be fully staffed once the three recruits graduates from the Academy towards the end of Q2. A budget of $40k has been included for Police Academy costs for the three recruits.

Moreover, the Code Enforcement (CE) department was moved to the Police Department from Community Development in Q2 of FY 2023, increasing the overall personnel budget of the department by $224,000 annually. The CE two positions are funded by the Community Development Block Grants (CDBG) with the Grant expiring in April 2024. Depending on the Notice of Funding expected in June 2023 from Housing and Community Development (HCD), the City may request for an extension of the Grant through the end of the fiscal year or apply for new round of funding if permissible.

The Care Response Unit comprised of two Social Services Liaisons provide services including providing information and resources supporting homelessness, mental health problems and maintained the Emergency Winter Shelter where they provided vouchers and record keeping for reimbursement of funds. On April 1, 2023, department received a $345,000 grant from the Youth Opioid Resistance fund to pay for one of the SSL’s and another Success Coach through April 2024. The second SSL’s position, which was funded by the Social Services Grant from FY 2022

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
was extended to December 2023. The proposed Budget includes funding for the second SSL position for the rest of the fiscal year once the Grant period ends.

Dispatch services are set to increase by 5% year-over-year provided by the City of Ukiah.  Community Development Budget is estimated to increase by 4% to $443,898 due to the cost of living adjustments 2% and budgeting for a full-time Community Development Director which will be hired in June 2023. The Department will be fully staffed at the start of the fiscal year after being without a Director for the last few years.
 The Marketing and Promotions department budget is $241k, an increase of 9%, with a budget of $30k for the 4th of July Fireworks. Funding for this department is from Measure AB, with an allocation of 1% of the Transient Occupancy Tax dedicated to marketing Fort Bragg as a tourist destination.
 Debt – 2021 Lease Revenue Bonds payments increased by $78k according to the Debt Schedule.

The City returned the $3.5 million Debt proceeds in August 2022, resulting in interest and principal savings in the long term. The Caspar Landfill costs, which the City and the County of Mendocino share, are expected to increase by $26k compared to FY 2022.  Overall the Public Works Department budget is estimated to increase by 12% from increases to personnel costs from Cost of Living Adjustments of 2% and the reorganization of the Special Projects Manager moving from Community Development to Public Works. Streets and Maintenance costs, particularly utilities and general supplies, are expected to increase by $16k.

These increases were offset by decreases in Traffic and Safety and Corporation Yard.

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
The table below shows General Fund Expenditures by Function or Program *Note: Costs shown in the table include base budget and Internal Service Fund Allocations.

FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR

GENERAL GOVERNMENT
City Council $ 131,495 $ 214,277 222,318 212,484 185,314 -12.8% Administration 751,316 1,225,661 1,241,606 1,140,580 1,037,505 -9.0% Finance 468,474 536,977 617,639 563,019 635,770 12.9%
Other Non-Departmental (overhead) 872,371 1,174,586 1,160,286 1,093,427 1,138,196 4.1% General Government Subtotal 2,223,656 3,151,501 3,241,850 3,009,510 2,996,784 -0.4%

PUBLIC SAFETY
Police Department 3,467,709 3,891,041 4,316,057 4,007,292 4,483,371 11.9% Fire Department 439,962 434,423 439,962 440,493 453,708 3.0% Public Safety Subtotal 3,907,671 4,325,464 4,756,019 4,447,785 4,937,079 11.0% Community Services
Community Development 232,115 365,417 483,117 426,932 443,898 4.0% Marketing & Promotions 93,060 226,874 220,500 220,400 240,650 9.2% Community Contributions 69,869 97,297 152,962 152,962 147,588 -3.5% General Fund Debt 37,964 358,337 452,241 477,921 556,303 16.4% Community Services Subtotal 433,008 1,047,925 1,308,819 1,278,215 1,388,438 8.6%

PUBLIC WORKS
Administration & Engineering 515,727 679,782 710,145 725,217 934,012 28.8% Parks and Facilities 31,927 36,479 41,100 39,892 40,000 0.3% Street Maintenance 107,606 124,497 122,000 116,000 142,000 22.4% Storm Drains 10,847 12,680 19,500 18,600 25,500 37.1%
Corporation Yard 634,446 494,218 420,524 399,478 380,483 -4.8% Traffic and Safety 24,023 24,873 86,952 85,952 39,500 -54.0% Public Works Subtotal 1,324,576 1,372,529 1,400,221 1,385,140 1,561,495 12.7% General Fund Subtotal 7,888,911 9,897,419 10,706,909 10,120,650 10,883,797 7.5% Cost Allocation 478,497 789,399 686,131 649,295 656,999 1.2% TOTAL GENERAL FUND $ 8,367,408 $ 10,686,818 $ 11,393,040 $ 10,769,945 $ 11,540,795 7.2% Note: Administration, as presented above, includes Administrative Services, City Manager and City Attorney

GENERAL FUND

EXPENDITURES BY FUNCTION/PROGRAM
FY 2020/21 THROUGH FY 2023/24

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Public Safety represents the largest General Fund expenditure function/program at 39% of total General Fund expenditures, followed by General Government (Admin/Finance/City Attorney/City Clerk) at 16%, Public works 13%, Indirect Charges 6%, and Non-Department at 10%.

Personnel Services
Personnel costs are the largest class of expenditures in the General Fund, representing nearly 64% of the FY 2024 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 the 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 Public Works, 1,561,495 ,
13%
Community Dev, 443,898 ,
4%
General Gov't, 1,858,588 ,
16%
Marketing & Promotions,
240,650 , 2%
Community Contributions,
147,588 , 1%
Police, 4,483,371 , 39%
Non-Dept, 1,138,196 , 10%
Debt, 556,303 , 5%
Fire, 453,708 , 4%
Indirect Charges, 656,999
, 6%

GENERAL FUND EXPENDITURES BY FUNCTION
FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 %

FYE FYE AMENDED FYE PROPOSED INCR/

AUDITED AUDITED BUDGET PROJECTED BUDGET -DECR
Salaries & Wages $ 3,271,863 $ 3,831,953 $ 4,443,546 $ 4,114,364 $ 4,550,423 11% Benefits 2,489,172 2,736,229 2,679,079 2,508,092 2,843,131 13% Materials & Services 1,980,189 2,761,920 3,013,072 2,903,529 2,816,759 -3% Other Expenditures 109,919 208,604 206,832 230,533 230,971 0% Debt Service 37,964 - 364,381 364,131 442,513 22%
Subtotal 7,889,107 9,538,707 10,706,909 10,120,650 10,883,797 8% Allocations 478,497 789,396 686,131 649,295 657,000 1%
Subtotal with Allocations 8,367,604 10,328,103 11,393,040 10,769,945 11,540,797 7% Net Transfers - - - - - 0%
TOTAL $ 8,367,604 $ 10,328,103 $ 11,393,040 $ 10,769,945 $ 11,540,797 7%

GENERAL FUND

EXPENDITURES BY CATEGORY
FY 2020/21 THROUGH FY 2023/24

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
years. The Proposed Budget includes a 3% cost of living adjustment for the Fort Bragg Police Association employees and 2% for other City Staff including Executive’s and Mid-Managers. The compensation study undertaken by Regional Government Services (RGS) in FY 2022, found that the City Clerk and Operations Manager positions were under compensated compared to comparable agencies. Other positions were found to be competitive or at market with a couple of positions lacking sufficient comparative data to determine analysis. The Operations Manager position is being proposed to increase by 5% in addition to the COLA increase.

Additionally, the Proposed Budget includes funding for a Community Development Director position which will be filled in June 2023. The City Manager and Chief of Police positions were filled in Q1 of FY 2022 and full cost of these positions will be realized in the new fiscal year. Vacant positions in the Police Department and in Community Development in FY 2022 resulted in a Budget surplus. These positions ae expected to be filled in the new fiscal year. All departments should be fully staffed in the new fiscal year once Police recruits graduate from the academy in Q2 2024.

Benefits are expected to increase by 3% in medical and dental premiums. The Issuance of the 2021 Lease revenue Bonds of $11.5 million, restructured the $7.5 million of CalPERS unfunded liability resulting in long-term savings for the City. In FY 2022, the City Council approved to return the $3.5 million which was set aside for costs associated with the acquisition of the southern portion of the former Timber Mill property reducing the Fund’s debt from $11.5 million to $7.5 million.

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 UAL Payments budget by $389k annually, which was offset by increased benefit costs. Unfortunately, CalPERS returned -7.5% in investment earnings for FY 2021/22, dropping its funding levels from 82% to 71%. This came on the heels of a 21.3% earnings year in FY 2020/21, effectively giving back the progress made by CalPERS in FY 2020/21. While the benefit (UAL reduction) of the 21.3% return year slightly outweighs the impact (UAL increase) of the negative 7.5% returns, the recent discount rate reduction from 7.0% to 6.8% largely offsets any remaining benefit from FY 2020/21. 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 2019. ”

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 2022/23, medical, dental, and vision rates did not change for active employees, but retiree medical costs are estimated to increase by 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 2024 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 2019, employees in classic plans began paying 1% of the employer's share of pension costs per negotiated agreements.

The increased pension costs and personnel costs for the City will put significant pressure on the General Fund’s financial performance in future years. The reduction in the CalPERS rate from 7% to 6.8 % percent is not expected to be the last one. Over 20 years, the overall fund performance has averaged just 5.5%. As part of the Pension policy, the City set 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 $1.6 million contribution into the trust in FY 2022 with additional contributions of $150k proposed in the FY 24 Budget.

Non-Personnel Services
Professional Services will decrease by $146,854 in FY 2024 due to one-time expenditures incurred in FY 2023, such as the Compensation Study $35k, recruitment costs $30k, General Plan Maintenance Study costs.

Insurance costs increased by $37k for property Insurance, cyber security, and general liability.

FY 2022/23 FY 2023/24
General Fund Materials & Services PROJECTED PROPOSED Change Professional Services 2,199,914 2,053,060 (146,854)
Utilities 182,931 195,390 12,459
Insurance 348,188 385,884 37,696
Training/Travel 71,277 112,500 41,223
Equipment Repair and Maintenance 1,000 1,000 -
Equipment Leases and Rental 40,721 39,500 (1,221)
Dues and Memberships 21,445 22,075 630
Small Tools and Equipment 35,254 5,550 (29,704)
Postage 2,800 1,800 (1,000)
Total General Fund Materials & Services $ 2,903,529 $ 2,816,759 $ (86,770)

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CITY OF

FORT BRAGG

LONG-TERM

FINANCIAL PLAN
Fiscal Year
2024
Proposed Budget
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BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

BUDGET BACKGROUND
On March 22, 2023, 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 included in this section for reference.

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.

LONG-TERM FINANCIAL PLANNING

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Audited Audited Forecast Forecast Forecast Forecast Forecast Forecast Revenue: Sales Tax 2,028,010 $ 2,215,161 $ 1,939,200 $ 1,959,500 1,998,690 2,068,644 2,141,047 2,215,983 Property Tax 1,085,532 1,150,352 1,138,562 1,150,257 1,150,257 1,161,760 1,173,377 1,185,111 Transient Occupancy Tax 3,321,928 3,444,990 3,213,808 3,242,118 3,274,539 3,307,285 3,340,357 3,373,761 Reimbursements 2,299,275 3,333,187 2,960,696 3,341,622 3,341,622 3,341,622 3,341,622 3,341,622 All Other Revenue Sources 1,137,672 1,071,911 1,778,014 2,620,745 2,620,745 2,646,952 2,673,422 2,700,156 Total Revenue 9,872,418 11,215,601 11,030,280 11,624,780 12,385,853 12,526,263 12,669,825 12,816,633 Expenditures: Salaries & Wages 3,271,863 3,831,953 4,114,364 4,550,423 4,686,936 4,827,544 4,924,095 5,022,577 Benefits 2,489,172 2,728,147 2,508,092 2,843,131 2,899,994 2,957,993 3,017,153 3,077,496 Materials & Services 1,979,993 2,762,347 2,903,529 2,816,759 2,873,094 2,930,556 2,989,167 3,048,951 Allocations to Internal Service Funds 478,497 789,396 649,295 657,000 676,710 697,011 717,922 739,459 Other Expenditures 109,919 216,637 230,533 230,971 242,520 249,795 257,289 265,008 Debt Service 37,964 358,337 364,131 442,513 433,348 465,555 521,910 561,409 Total Expenses 8,367,408 10,686,817 10,769,944 11,540,797 11,812,601 12,128,455 12,427,536 12,714,899 Net Transfers: - - - -
Net Increase (Decrease) to Fund Balance 1,505,010 528,784 260,336 83,983 573,252 397,808 242,289 101,734 Other restricted funds 3,879,236 (5,415,616) - - - - -
Beginning Fund Balance 2,679,205 4,184,215 8,592,235 3,436,955 3,520,938 4,094,190 4,491,998 4,734,288 Ending Fund Balance 4,184,215 $ 8,592,235 $ 3,436,955 $ 3,520,938 $ 4,094,190 $ 4,491,998 $ 4,734,288 $ 4,836,022 $ - 718,784 450,336 273,983 763,252 587,808 432,289 291,734 4,184,215 $ 4,902,999 $ 5,353,335 $ 5,627,318 $ 6,390,571 $ 6,978,379 $ 6,822,860 $ 7,270,113 $ - 958,784 690,336 513,983 1,003,252 827,808 672,289 531,734 4,184,215 $ 5,142,999 $ 5,833,335 $ 6,347,318 $ 7,350,571 $ 8,178,379 $ 8,022,860 $ 8,710,113 $ - 667,232 745,136 573,858 1,072,925 914,969 759,450 636,996 4,184,215 $ 4,851,447 $ 5,596,583 $ 6,170,441 $ 7,243,366 $ 8,158,335 $ 8,002,816 $ 8,795,330 $ - 736,455 987,536 818,796 1,322,761 1,173,550 1,045,182 932,728 4,184,215 $ 4,920,671 $ 5,908,207 $ 6,727,002 $ 8,049,763 $ 9,223,313 $ 10,268,495 $ 11,201,222 $ 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 2023/24 Proposed Budget
$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
FY 25-26
FY 26-27
Salaries & Wages Benefits Materials & Services
Allocations to Internal Service Funds Other Expenditures Debt Service $8,592,235
$3,436,955 $3,520,938
$4,094,190
$4,491,998 $4,734,288 $4,836,022
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
9,500,000
10,000,000
10,500,000
11,000,000
11,500,000
12,000,000
12,500,000
13,000,000
Audited Forecast Forecast Forecast Forecast Forecast Forecast FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28

GENERAL FUND FIVE YEAR FORECAST
Total Revenue Total Expenses Ending Fund Balance

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Transfers Transfers Net
Fund Type/Name In Out Transfers
110 General Fund
To 112 - Recession Reserve (664,150) (664,150)
Total - (664,150) (664,150)
112 Recession Reserve
From 110 - General Fund (Operating Reserve) 664,150 664,150 Total 664,150 - 664,150
162 CDBG Program Income
To 334- Code Enforcement Program - (226,398) (226,398)
Total - (226,398) (226,398)
162 RMRA (LPP) - Gas Tax
To 334- CDBG Code Enforcement -
Total - - -
222 RMRA (LPP) - Gas Tax
To 421- 2022/23 Streets Project - HSIP (248,130) (248,130) To 421- Systematic Improvements - HSIP (73,890) (73,890) To 421- 2022/23 Streets Project - LPP - (600,000) (600,000) To 408- 2025 Pavement Preservation (230,000) (230,000)
Total - (1,152,020) (1,152,020)
223 STP D1 MCOG
To 428- EV Charging Station (232,951) (232,951)
To 421- Streets Project-2021 - (206,405) (206,405)
Total - (439,356) (439,356)
250 Special Sales Tax - Street Repair
To 421- Systematic Imp at Unsignalized Intersections (17,710) (17,710) To 421- Streets Project (2,508,894) (2,508,894)
Total - (2,526,604) (2,526,604)
314 MCOG
To 421 Streets Project (162,000) (162,000)
Total - (162,000) (162,000)
319 Water Grants
To 651- Oneka Desalination (800,000) (800,000)
To 651- Recycled Water Design (500,000) (500,000)
To 651- Water Treatment Plant (5,276,000) (5,276,000)
To 651- Raw Water Line (4,055,000) (4,055,000)
Total - (10,631,000) (10,631,000)
322 CALTRANS
To 716 Trash Can Replacement (280,000) (280,000)
Total - (280,000) (280,000)
330 Federal Grants- USDA
To 522- Fleet Reimb (205,300) (205,300)
Total - (205,300) (205,300)
329 State Grants
To 426 Broadband (376,029) (376,029)
To 110 Planning Grants -
To 110 Planning Grants -
To 110 Planning Grants -
Total - (376,029) (376,029)
334 CDBG 2020
To 651 Water Meter Replacement (826,703) (826,703)
To 424 Fire Station Rehab- Design (150,572) (150,572)
From 162 Program Income- Code Enforcement 226,398 226,398 Total 226,398 (977,275) (750,877)
336 ARPA
To 426 Municipal Broadband (1,744,162) (1,744,162)
Total - (1,744,162) (1,744,162)
408 2025 Pavement Preservation Project
From 222 LPP 230,000 230,000
Total 230,000 - 230,000
CITY OF FORT BRAGG - FY 2023/24
Operating Transfers - All Funds

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Transfers Transfers Net
Fund Type/Name In Out Transfers
421 2022 Street Resurfacing & Structural Repair Projects From 520 Facilities Maint & Repair - -
From 222 LPP Grant 600,000 600,000
From 222 HSIP 248,130 248,130
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 2,508,894 - 2,508,894 From 222 - HSIP Systematic Improvements 73,890 73,890
From 250 - Systematic Improvements 17,710 17,710
Total 4,178,029 - 4,178,029
424 Fire Station Rehab
From 334- CDBG 150,572 - 150,572
- -
Total 150,572 - 150,572
423 Town Hall Bathroom
From 520- Facilities ISF 140,000 - 140,000
Total 140,000 - 140,000
426 Broadband
From 336 ARPA Funds 1,744,162 1,744,162
From 329 LATA 376,029 - 376,029
Total 2,120,191 - 2,120,191
427 Corporation Yard & PD Roof Replacement
From 520- Facilities ISF 150,000 - 150,000
From 520- Facilities ISF 220,000 - 220,000
Total 370,000 - 370,000
428 EV Charging Stations
From 223- MCOG D1 232,951 232,951
Total 232,951 - 232,951
520 Facilities
To 427 PD Roof Replacement (80,000) (80,000)
To 427 PD Paint & Repairs (70,000) (70,000)
To 427 CH Roof, Solar and Repairs (220,000) (220,000)
To 423 TH Bathrooms (140,000) (140,000)
Total - (510,000) (510,000)
522 Fleet
From 330 USDA Vehicle Replacement 205,300 205,300
Total 205,300 - 205,300
610 Water O&M
To 612- Recesion Reserve (177,534) (177,534)
To 615 - True up Operating Reserve 431,694 431,694
Total 431,694 (177,534) 254,160
612 Water Recession Reserve
To 610 - True up Recession Reserve 177,534 177,534
Total 177,534 - 177,534
615 Water Enterprise Capital Reserve
To 610 - True up Operating Reserve (431,694) (431,694)
To 651 - Pudding Creek Water Main (812,000) (812,000)
To 651 - Extend Water System- Pudding Creek (300,000) (300,000) To 421 - 2022 Streets Project (180,500) (180,500)
Total - (1,724,194) (1,724,194)

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Transfers Transfers Net
Fund Type/Name In Out Transfers
651 Water Enterprise Capital Projects
From 615 Pudding Creek Water Main 812,000 812,000
From 319 Recyled Water Design 500,000 500,000
From 334 Water Meter Replacement 826,703 826,703
From 615 Extend Water System - Pudding Creek 300,000 300,000 From 319- DWR Raw Water Engineering 4,055,000 4,055,000 From 319- DWR Oneka Buoy 800,000 800,000
From 319- SRF Water Treatment Plant 5,276,000 5,276,000 Total 12,569,703 - 12,569,703
710 Wastewater O&M
From 712 - True up Recession Reserve - (160,442) (160,442) To 717 - Debt Service Payment (185,010) (185,010)
To 715 - Sw eep Excess Fund Balance to Capital Rese 114,767 114,767 Total 114,767 (345,452) (230,685)
712 WW Enterprise Recession Reserve
From 710- Wastew ater O&M-True up Recession 160,442 - 160,442 Total 160,442 - 160,442
714 WW Enterprise Non-Routine Maintenance
From 710- Wastew ater O&M -
Total - - -
715 WW Enterprise Capital Reserve
From 710 - Sw eep Excess Fund Balance to Capital Reserve (114,767) (114,767) To 716 - WW Capital Projects (750,000) (750,000)
To 716 - WW Capital Projects (170,000) (170,000)
To 421 - 2022 Streets Project (180,500) (180,500)
To 716 - WW Capital Projects (130,000) (130,000)
Total - (1,345,267) (1,345,267)
716 WW Capital Projects
From 717-Collection System Rehab 750,000 750,000
From 715- Dryer Building Construction 170,000 170,000
From 329 Trash Capture 280,000 280,000
From 715- Biosolids Storage Structure 130,000 130,000
Total 1,330,000 - 1,330,000
717 JPFA WWTP Financing
From 710 - Debt Service 185,010 185,010
From 710 - Short Lived Asset Reserve -
Total 185,010 - 185,010
810 CV Starr
To 812- CV Starr Recession Reserves (216,071) (216,071) Total - (216,071) (216,071)
812 CV STARR Recession Reserve
To 810- CV STARR 216,071 216,071
Total 216,071 - 216,071
Total Transfers $ 23,702,812 $ (23,702,812) $ -
(Concluded)

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
INTRODUCTION The purpose of the City’s Cost Allocation Plan is to identify the total costs of providing specific City services and appropriately allocate these costs to the Programs and or Funds that benefit from the identified services. Why is a separate cost accounting analysis required to do this? Because the cost of delivering services can be classified into two basic categories: direct and indirect costs. Programs that incur only direct costs benefit from the City’s administrative structure and therefore should be charged for that support.

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

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

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

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

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

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

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

COST ALLOCATION PLAN

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Internal Service Funds
After personnel costs have been allocated, the City’s three Internal Service fund costs are allocated to both the Direct Cost Programs as well as the Indirect Cost Programs (see tables 3 &4). The City has three Internal Service Funds; Facilities Repair & Maintenance, Technology Maintenance & Replacement and Fleet & Equipment Services:
• Facilities Repair & Maintenance uses a cost driver of “square footage”. In other words, each program is charged a Facilities charge based on an approximation of the facility square footage used by that program.
• Technology Maintenance & Replacement (IT) uses a cost driver of “workstations” (including devices such as iPad). Each program is charged an IT charge based on the number of workstations utilized by that program.
• Fleet & Equipment Services (Fleet) uses a cost driver of “fleet vehicles”. Each program is charged a Fleet charge based on the number of vehicles utilized by that program.

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

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

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

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

PLAN PREPARATION
The adopted plan has been prepared using staff hours from the first seven months of FY 22/23, cost drivers from FY 2019/20, and budget cost estimates from the Adopted fiscal year 2022/23 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 2023/24 Proposed Budget
TABLES
Table 1: Program Classifications
Table 2: Personnel Cost Allocation and FTE count
Internal Service Funds Direct Programs Indirect Programs Facilities Police/Fire Department City Council
IT Community Development City Attorney
Fleet Parks City Administration
Storm Drains Human Resources
Street Maintenance City Clerk
Street Traffic & Safety Financial Management
Water Enterprise Utility Billing
Wastewater Enterprise PW Administration
Corporation Yard
Personnel Costs FTEs
Facilities 93,568 0.6
Information Technology 92,792 1.4
Fleet 131,076 1.1
City Council 220,352 0.9
City Clerk 128,911 1.0
Administration 162,257 1.2
City Attorney 660 -
Human Resources 125,790 1.1
Financial Management 476,026 4.2
Utility Billing 197,383 2.0
PW Administration 176,388 1.4
Corporation Yard 26,160 0.2
Public Safety 3,215,944 24.3
Community Development 572,488 5.1
Parks 242,287 1.8
Storm Drains 86,902 0.6
Street Maintenance 52,835 0.4
Traffic&Safety 31,895 0.2
Water Utility 644,183 5.2
Wastewater Utility 965,852 7.7
7,643,751 60.26
Internal
Service
Funds:

Direct Cost
Programs:

Indirect
Cost
Programs:

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Table 3: Internal Service Funds Cost Driver Rate Table
Table 4: Internal Service Funds Allocation to Programs
Rate Table
ISFs Cost Driver Total Driver Rate
Facilities
Personnel Cost $ 93,568
Non-Personnel Cost 101,500
Long Term Funding Plan - $ 195,068 Square footage 68,926 $ 2.83 Information Tech
Personnel Cost $ 92,792
Non-Personnel Cost 348,198
Long Term Funding Plan - $ 440,990 Workstations 169 $ 2,609 Fleet
Personnel Cost $ 131,076
Non-Personnel Cost 253,600
Long Term Funding Plan - $ 384,676 Fleet Vehicles 60 6,411 $ Total Indirect Costs $ 1,020,734
Note: Each rate is derived by dividing Cost by Total Driver Sq Ft Allocation Work-stations Allocation Fleet Value % Allocation Direct Programs
Police/Fire Department 24,319 68,826 68.4 178,416 34% 129,924 377,166 Community Development 2,140 6,056 12.9 33,663 0% - 39,719 Parks 21,003 59,441 5.0 13,047 3% 12,902 85,389
Storm Drains - - 2.0 5,219 2% 6,435 11,653
Street Maintenance - - 2.0 5,219 11% 42,547 47,766
Street Traffic & Safety - - - - 2% 6,180 6,180
Water Enterprise - - 5.2 13,465 15% 58,348 71,814
Wastewater Enterprise - - 14.2 37,030 30% 116,994 154,024 Indirect Programs
City Council 2,786 7,885 18.1 47,129 0% - 55,013
City Attorney - - - - 0% - -
City Administration 5,884 16,653 2.6 6,733 3% 11,346 34,732 Corporation Yard 7,980 22,584 10.4 27,010 0% - 49,595
Human Resources 535 1,514 2.6 6,733 0% - 8,247
City Clerk 535 1,514 5.2 13,465 0% - 14,979
Financial Management 1,070 3,028 11.6 30,297 0% - 33,325 Utility Billing 1,070 3,028 1.3 3,366 0% - 6,394
PW Administration 1,605 4,542 7.7 20,198 0% - 24,740
Totals 68,926 $ 195,068 169 440,990 $ 100% 384,676 $ $ 1,020,734 Summary of ISF Allocation
Total Allocation
Facilities Info Tech Fleet

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Table 5: Rate Table

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

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget Table 6: Indirect Programs Cost Allocation to Direct Programs :

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

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget Table 6: Indirect Programs Cost Allocation to Direct Programs (continued) :

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

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget

FY FY 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 2022-23 2023-24 General Government Administrative Services 4.80 4.00 4.00 4.00 4.50 4.50 5.00 5.00 5.00 5 7 7 5 IT 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1 1 2 2
Finance Department 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.5 5 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 14.00 12.00 Public Safety Police Department 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22 26 25 25 Sub-Total 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 26.00 25.00 25.00 Community Services Community Development 3.80 3.80 4.30 4.00 4.30 4.50 4.80 4.80 3.00 4 4 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 15.5 17 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8 9 9 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 28.50 30.00 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 67.50 67.00 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 pNote 8: FY 2017/18 reflects the addition of a Public Works Maintenance I posiNote 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

TEN-YEAR AUTHORIZED PERSONNEL COMPARISON

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
7068
6664
6260585654
5250
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

TOTAL AUTHORIZED POSITIONS

TEN YEAR AUTHORIZED STAFFING COMPARISON

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed 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 2023, 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 2023/24 is:
• The population change at January 1 of the previous year for the County is <-0.53> and for the City is <0.93%>. 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 4.44%.

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

4.44 + 100.00 X <0.93%> + 100.00 = 1.03429
100.00 100.00
FY 2023/24 ARTICLE XIIIB APPROPRIATIONS LIMIT

BUDGET SUMMARY
City of Fort Bragg
FY 2023/24 Proposed Budget
Applying this year’s factor to last year’s limit of $11,130,495 the appropriations limit for FY 2023/24 is $11,512,169. With appropriations subject to the limitation totaling approximately $7,302,673 the City of Fort Bragg is not at risk of exceeding the Gann Limit.

City of Fort Bragg Appropriation Limit
Applied to FY 23/24 Budget
Proceeds of Taxes
Property & Other Taxes
Property Taxes $ 1,100,167
Sales & Use Taxes, Prop 172 Taxes 1,959,500
Transient Occupancy Taxes 3,242,118
Franchise Taxes 692,277
Transfer Taxes 50,090
Business License Taxes 211,708
Subtotal - Taxes 7,255,860
Proceeds of Non Taxes
Licenses & Permits 94,293
Fines & Forfeitures 25,100
Use of Money & Property (less interest earned) 90,000
Intergovernmental 716,362
Charges for Services 3,422,965
Other Revenues 20,200
Subtotal - Non Taxes 4,368,920
Total Non-Taxes & Taxes 11,624,780
Allocate Interest Based on Ratios
Non Taxes (33%) 28,187
Taxes (67%) 46,813
Total Interest 75,000
Total Revenue $ 11,699,780
FY 2023/24 Appropriations Limit 11,512,169
Less Proceeds of Taxes 7,302,673
Under Maximum Appropriation Limit $ 4,209,496

CITY OF

FORT BRAGG

CITY COUNCIL
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget

STRATEGIC GOALS AND OBJECTIVES
Through a Goal Setting Retreat, the City Council met earlier this year to establish the Council Goals and Priorities. The Council identified the four priorities for FY 2024, which are listed below:

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget
As of June 30, 2023
Bernie Norvell Jason Godeke
Mayor Vice Mayor

Tess Albin-Smith Marcia Rafanan Lindy Peters
Councilmember Councilmember Councilmember

ELECTED OFFICIALS

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget
A five-member elected City Council provides governance over the City of Fort Bragg’s services to approximately 7,000 residents. Each Councilmember is elected at large and serves a fouryear term. The members of the City Council elect the Mayor 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.

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 2023/24 Proposed Budget

SUMMARY OF SERVICES
As the primary Legislative body for Fort Bragg, the City Council’s authority is to provide fiscally responsible leadership that protects and promotes Fort Bragg’s unique quality of life for the full enjoyment of its residents, visitors, and business owners.

The City of Fort Bragg is a general law city under California State law. The State constitution and law establish its rights, powers, privileges, authority, and functions.

Operating under a Council-Manager form of government, the five Fort Bragg City Council members are elected at large by the community and, therefore, residents of the entire community. The council-manager form of local government combines the strong policy and political leadership of the City Council with the City Manager’s professional experience. Power and authority are concentrated in the elected City Council, while the City Manager implements its policies.

While being a City Council member is considered a part-time job, the actual time commitment is significant. In addition to City Council and Council Committee meetings, council members hold special local and regional committee assignments, meet frequently with residents, business owners, and City staff to discuss issues and projects, and regularly attend a variety of community events.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 is addressed through the work of City staff.

FY 2022/23 TOP ACCOMPLISHMENTS
Pilot project partnership with ONEKA that is testing a wave-powered desalination system to make oceans a sustainable and affordable source of drinking water.

Support the Police Department’s Care Response Unit (CRU) program and the two Social Services Liaisons that work in the Police Department side-by-side with officers to immediately assist people in a mental health crisis, people experiencing homeless, and those with substance abuse disorders. CRU also coordinated the Emergency Weather Shelter program, housing over 60 people during nights with rain and extreme cold.

The purchase of 580-acre property to design and build three new reservoirs for increased water storage and sustain the City during periods of extreme drought.

Established Housing Mendocino Coast - a community land trust incubated by the City for the purpose of providing workforce home ownership and rental opportunities.

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 2023/24 TOP PRIORITIES
• Infrastructure projects:
o Affordable housing in City.
o Continued expansion of the City’s water system.
• Financial resiliency
o Initiate new revenue sources.
o Pay down PERS unfunded liability.
o Economic development and growth.
• New park play equipment and new playing fields.

BUDGET OVERVIEW
The City Council Budget for Fiscal Year 2024 is $185K, a decrease of 13% from the prior year. The decrease is due to election costs of $10k budgeted last fiscal year, with only $5K this year- for a special election if needed to bring forward the Special Sales Tax Ballot Measure in November 2023.

Included in the Proposed Budget is a $25K Council Goals Budget. Council members are paid a small stipend. The Budget for FY 2024 is based on the maximum number of meetings anticipated for the year.

CITY COUNCIL DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4110
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 133,245 $ 143,818 $ 148,679 $ 146,814 -1% Non-Personnel Services 81,031 78,500 63,805 38,500 -40% Total Departmental Expenditure 214,276 222,318 212,484 185,314 -13% Cost Allocation Summary
Expense - Cost Allocations (38,116) (65,069) (65,069) (65,069) 100% Revenue - Personnel Allocations (176,201) (105,911) (105,911) 176,201 Net Cost Allocation (214,317) (170,980) (170,980) 111,132 -165% Net Expenditure $ 41 $ (51,338) $ (41,504) $ 5,801,574 -14078%

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget
Expenditure Line Item Detail
FY 2023/24
Fund #110 Account Category Proposed
Department: 4110 Detail Detail Budget
Personnel Costs
Salaries & Wages, Regular $ 31,800
Employee Benefits 115,014
Total Personnel Costs $ 146,814
Materials & Services
110-4110-0319 Professional Services 25,000
110-4110-0366 Training/Travel Reimbursement 8,000
110-4110-0371 Meetings/City Business 500
Total Material & Services 33,500
110-4110-0315 Election costs 5,000
Total Other Expenditures 5,000
Total - City Council $ 185,314
EXPENDITURE BUDGET DETAIL:

Fund #110
Department: 4110
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0101 Salaries & Wages, Regular 23,500 27,600 25,336 30,600 17% 0109 Other Pay 259 1,200 677 1,200 44%
0100 Salaries & Wages $ 23,758 $ 28,800 $ 26,013 $ 31,800 18% 0200 Employee Benefits 109,486 115,018 122,666 115,014 -7% Personnel Services 133,245 143,818 148,679 146,814 -1%
0315 Election Costs 3,000 10,000 11,478 5,000 100%
0319 Professional Services 68,148 60,000 41,800 25,000 100% 0366 Training/Travel Reimbursement 9,052 8,000 10,277 8,000 -22% 0371 Meetings/City Business 832 500 250 500 100%
Non-Personnel Services 81,031 78,500 63,805 38,500 -40% Total City Council $ 214,276 $ 222,318 $ 212,484 $ 185,314 -13%

DEPARTMENT DETAILS – CITY COUNCIL
City of Fort Bragg
FY 2023/24 Proposed Budget

COST ALLOCATION DETAIL
Fund #110
Department: 4110
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation 82,477 118,426 118,426 118,426 0% 0802 Cost Allocation contra exp (187,554) (238,509) (238,509) (238,509) 0% 0396 Allocation to ISF-IT 58,839 47,129 47,129 47,129 0% 0397 Allocation to ISF-Facilities 8,123 7,885 7,885 7,885 0% 3499 Personnel Cost Allocation - Revenue (176,201) (105,911) (105,911) 176,201 -266% Net Cost Allocation (214,317) (170,980) (170,980) 111,132 -165%

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CITY OF

FORT BRAGG

ADMINISTRATION

DEPARTMENT
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
The City's Administration includes the City Attorney, City Manager, and the Administrative Services Department. Each entity contributes to the professional leadership of the organization, implementation of City Council policy objectives, and administration of City services and programs. The City's Administration works closely and provides support to other City departments with the goals of ensuring the professional delivery of quality public services; an efficient, responsive, and accountable government; fiscal stability; economic vitality; quality of life; and effective citizen engagement.

SUMMARY OF SERVICES
The City of Fort Bragg is a Council-Manager form of government. Our five elected city councilmembers serve as the City's primary legislative body, which sets City policy and establishes goals. They also appoint a chief executive officer, the City Manager to oversee day-to-day municipal operations and implements the Council policy direction. The City Manager oversees the Administrative Services Department which includes the contract City Attorney, the City Clerk, and Human Resources. The Department has five full-time staff:
• City Manager
• City Clerk
• Administrative Analysts (2)
• Human Resources Manager
AUTHORIZED FTE FY15 FY16 FY17 FY18 FY19 FY20 FY 21 FY 22 FY 23 FY 24 Administration Dept. 6 6.5 7 7 6 6 6 7 7 5

ADMINISTRATION DEPARTMENT

CITY MANAGER CITY ATTORNEY

CITY CLERK

ADMINISTRATIVE

ANALYST

ADMINISTRATIVE HR MANAGER

ANALYST

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
The City Manager also serves our broader community, bringing the benefits of advanced public administration education, professional training, and wide-ranging municipal management experience to allocate local government resources and develop programs that meet the needs of our residents. In cooperation with the Finance Director, the Manager prepares the annual budget for the Council's consideration; serves as the City Council's chief advisor; and carries out the Council's policies. Councilmembers count on the Manager to provide complete and objective information, pros and cons of policy alternatives, and longterm planning for programs that meet our community needs and ultimately ensures sound and effective management practices over City staff and resources.

The Administrative Services Department is responsible for a wide array of support services including:

CITY ATTORNEY
The City contracts with Jones & Mayer, a firm specializing in municipal law, for City Attorney services. The City Attorney, appointed by the City Council, is the chief legal advisor and provides professional legal services to the City Council, the City Manager, City departments, and the Planning Commission. Services include advising Council and staff during public meetings, providing legal opinions, reviewing and drafting legal documents and contracts, providing advice regarding public officials' conflicts of interest, personnel and labor law issues, and representing the City in litigation. The City Attorney is also responsible for assigning legal work to various specialists in the firm or to outside counsel, as needed.

CITY CLERK
The City Clerk's Office provides one-on-one service and staff support to the Mayor and City Council. As the Office of Record, the City Clerk is responsible for maintaining official records of City Council actions in accordance with the legal requirements for public meetings. The Clerk maintains and preserves municipal archival records and materials as well as records of adopted municipal codes, general bylaws and zoning bylaws, resignations, appointments, petitions, publications, budgets, election results and minutes for public meetings. The City Clerk also acts as Secretary for all City Council meetings.

HUMAN RESOURCES
Human Resources (HR) provides professional services and support to the City Council, City management, employees, and the public. HR provides organizational strategy and analytical information to the City Manager to accomplish key Council goals, promote organizational transparency, and plan for future workforce demands. HR is committed to offering sound, diversified training opportunities to its employees, which not only builds employee capabilities, but also addresses current and future community needs. In its efforts to minimize the City's risk exposure, HR continues to be a valuable resource with employment law and best practices,

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
including such areas as workers' compensation, safety, liability prevention, employee discipline, hiring protocols and benefits administration.

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 agenda items for 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.

FY 2022/23 TOP ACCOMPLISHMENTS
• 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.
• Visit Fort Bragg managed on-going public relations and marketing campaign to promote tourism by advertising Fort Bragg's unique qualities statewide. • Human Resources created database components to assist Finance with bringing CV Starr payroll in-house and now handles payroll related transactional activity for the CV Starr. • Human Resources conducted 15 recruitments, 15 new hires, and eight internal promotions. • To support public agency transparency, City Clerk reviewed over 6,000 public documents in response to over 200 Public Records Requests.

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
• City Clerk individually prepared over 50 complex contracts for various Consultant contracts for City projects.

PERFORMANCE / WORKLOAD MEASURES
INDICATORS FY19 FY20 FY21 FY22

HUMAN RESOURCES
Number of job posting 10 16 17 15
Number of applications received and
reviewed 110 365 217 110
Open Enrollment Compliance and Meetings
held 95% - 3 100% 100% 100%
Number of new hires 10 8 17 15
Safety Meetings 4 2 3 2

CITY CLERK
Ordinances Processed 6 8 13 6
Resolutions Processed 118 122 148 145
Contracts Processed 75 61 97 57
City Council Meeting Agenda Packets 46 53 42 53
PRAs Processed /
Records Reviewed
78 /
2,041
146 /
12,027
294 /
8,868
212*/
6,137
Weddings Performed 2 2 4 12
*Estimate

FY 2023/24 TOP PRIORITIES
• Research and implement City-wide technical automation of current manual tasks that will increase staff productivity as well as accuracy.
• Create new recruitment video for the City to better reflect the unique opportunity living and working in the City offers to potential future hires.
• Research and work with various technical experts to update Personnel Rules and Regulations for the City.
• Explore and develop new revenue sources to support and expand necessary services.

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget

BUDGET OVERVIEW
The Administration Department for Fiscal Year 2024 is $1.04 million, a decrease of 9% from the prior year. Most of the reduction occurred in salary and benefits because of the restructuring of the Specials Projects Manager and Grants Coordinator to the Public Works and Community Development Department during the last fiscal year. This variance was offset by Cost of Living Adjustments of 2% and aligned with merit increases in the Department. Two promotions were approved during the prior fiscal year.

The City Attorney's Proposed Budget is $300K, a decrease of 6%, reflective of the estimated year-end costs in FY 2023. Additionally, Professional services decreased by $35k upon completing the Salary and Compensation Survey. The survey results will be brought forward to the Finance and Admin meeting at the next meeting.

ADMINISTRATION DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4130
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 759,797 $ 786,107 $ 721,461 $ 681,845 -5% Non-Personnel Services 465,862 455,500 419,119 355,660 -15% Total Departmental Expenditure 1,225,659 1,241,606 1,140,580 1,037,505 -9% Revenue Summary
Charges for services 2,116 1,800 2,200 2,200 0%
Miscellaneous Revenue 11,772 11,000 13,500 15,000 11%
Reimbursements 14,492 137,809 2,500 8,000 220%
Total Departmental Revenue 28,379 150,609 18,200 25,200 38% Net Rev/Exp (1,197,280) (1,090,998) (1,122,380) (1,012,305) -10% Cost Allocation Summary
Expense - Cost Allocations (544,793) (343,183) (332,077) (332,077) 0% Revenue - Personnel Allocations (333,341) (189,190) (189,190) (333,341) 76% Net Cost Allocation (878,134) (532,373) (521,267) (665,418) 28% Net Expenditure $ (319,146) $ (558,625) $ (601,113) $ (346,887) -42%

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4130
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 583,776 $ 576,821 $ 513,387 $ 502,052 -2% 0200 Employee Benefits 176,021 209,286 208,074 179,793 -14% Personnel Services 759,797 786,107 721,461 681,845 -5%
0311 Legal 327,624 353,494 320,000 300,000 -6%
0316 Pre-Employment Costs 16,496 10,000 10,000 10,000 0% 0317 Recruitment Costs 44,416 10,000 10,000 5,000 -50%
0319 Professional Services 56,616 60,395 60,000 25,000 -58% 0320 Dues & Memberships 2,125 2,710 2,000 1,960 -2%
0364 Legal Notices 9,816 4,000 2,500 2,000 -20%
0366 Training/Travel Reimbursement 6,212 12,000 12,000 10,000 -17% 0375 General Supplies 833 500 700 300 0%
0371 Meetings/City Business 617 200 200 200 0%
0376 Medical/Safety Supplies 292 1,000 500 - 0%
0381 Small Tools & Equipment 622 1,000 1,000 1,000 100% 0384 Books & Subscriptions 194 200 219 200 -9%
Non-Personnel Services 465,862 455,500 419,119 355,660 -15% Total - Administration Expenditure $ 1,225,659 $ 1,241,606 $ 1,140,580 $ 1,037,505 -9% BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4130
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 583,776 $ 576,821 $ 513,387 $ 502,052 -2% 0200 Employee Benefits 176,021 209,286 208,074 179,793 -14% Personnel Services 759,797 786,107 721,461 681,845 -5%
0311 Legal 327,624 353,494 320,000 300,000 -6%
0316 Pre-Employment Costs 16,496 10,000 10,000 10,000 0% 0317 Recruitment Costs 44,416 10,000 10,000 5,000 -50%
0319 Professional Services 56,616 60,395 60,000 25,000 -58% 0320 Dues & Memberships 2,125 2,710 2,000 1,960 -2%
0364 Legal Notices 9,816 4,000 2,500 2,000 -20%
0366 Training/Travel Reimbursement 6,212 12,000 12,000 10,000 -17% 0375 General Supplies 833 500 700 300 0%
0371 Meetings/City Business 617 200 200 200 0%
0376 Medical/Safety Supplies 292 1,000 500 - 0%
0381 Small Tools & Equipment 622 1,000 1,000 1,000 100% 0384 Books & Subscriptions 194 200 219 200 -9%
Non-Personnel Services 465,862 455,500 419,119 355,660 -15% Total - Administration Expenditure $ 1,225,659 $ 1,241,606 $ 1,140,580 $ 1,037,505 -9%

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
Line Item Detail FY 2023/24
Fund #110 Account Category Proposed
Department: 4130 Detail Detail Budget
Personnel Costs
Salaries & Wages, Regular $ 502,052
Employee Benefits 179,793
Total Personnel Costs $ 681,845
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 5,000
110-4130-0319 Professional Services 25,000
110-4130-0320 Dues & Memberships 1,960
American Planning Assoc. $ 360
International Foundation of Employee Benefits-HR 325
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 2,000
110-4130-0366 Training/Travel Reimbursement 10,000
City Clerk $ 2,000
City Manager 2,000
Human Resource Manager 2,000
Adminstrative Assistant 2,000
Administrative Analyst 2,000
110-4130-0371 Meetings/City Business $ 200
110-4130-0375 General Supplies 300
110-4130-0381 Small Tools & Equipment 1,000
110-4130-0384 Books & Subscriptions 200
Total Material & Services $ 355,660
Total - Administration Expenditure $ 1,037,505

DEPARTMENT DETAILS – ADMINISTRATION
City of Fort Bragg
FY 2023/24 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4130
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Charges for Services
3419 Document Copies $ 2,116 $ 1,800 $ 2,200 $ 2,200 0% Total Charges for Services 2,116 1,800 2,200 2,200 0%
Reimbursements
3201 Training Reimbursements - - - 2,000 100%
3415 City Reimb-DDA 3,927 5,000 500 1,000 100%
3318 Grant Staff Time Reimb 10,564 132,809 2,000 5,000 150% Total Reimbursements 14,492 137,809 2,500 8,000 220%
Miscellaneous Revenue
3998 Miscellaneous Fines 5,535 5,000 2,500 5,000 100%
3905 Rents & Concession 6,237 6,000 11,000 10,000 -9%
Total Miscellaneous Revenues 11,772 11,000 13,500 15,000 11% Total - Administration Revenue $ 28,379 $ 150,609 $ 18,200 $ 25,200 38%

COST ALLOCATION DETAIL
Fund #110
Department: 4130
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation $ 84,677 $ 27,464 $ 27,464 $ 27,464 0% 0802 Cost Allocation contra exp (695,545) (428,605) (428,605) (428,605) 0% 0396 Allocation to ISF-IT 37,443 26,931 37,443 37,443 0% 0322 Allocation to Fleet Int Serv Fund 8,357 11,346 11,346 11,346 0% 0397 Allocation to ISF-Facilities 20,275 19,681 20,275 20,275 0% 3499 Personnel Cost Allocation - Revenue (333,341) (189,190) (189,190) (333,341) 43% Net Cost Allocation $ (878,134) $ (532,373) $ (521,267) $ (665,418) 28%

DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg
FY 2023/24 Proposed Budget
Promote Fort Bragg’s vibrant tourism economy; strengthen the Fort Bragg tourism experience; and Increase Transient Occupancy Tax and Sales tax revenues.

FORT BRAGG TOURISM MARKETING & PROMOTIONS

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CITY OF

FORT BRAGG

VISIT FORT BRAGG
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg
FY 2023/24 Proposed Budget
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)
• Creative Support Visit Fort Bragg Committee Special Events City Council
Visit Fort Bragg
Commitee
City Manager's
Office
City Manager/
Administrative
Analyst
Special Projects
Manager
Marketing & PR
Professionals
(Consultant)

FORT BRAGG TOURISM MARKETING & PROMOTIONS

DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 2022/23 ACCOMPLISHMENTS
• Increased site traffic and engaged subscribers to social media and e-newsletter through ongoing promotions, including digital campaigns and television reach campaigns. • Direct merchant support through events and promotions such as Magic Market, Winter Wonderland, Holiday Gift Guide, Whale Fest and Restaurant Week. • The Great Photo Collection campaign garnered over 400 original entries and increased social following and engagement. Five winners were selected, and all photos were available for marketing purposes.
• Creation and promotion of original website/microsite for Fort Bragg Arts and Culture featuring a wide range of artists along with the creation of the Fort Bragg Alleyway Art Project website. Continued, ongoing creation and promotion of multiple art and culture features and stories.
• Shoulder season video campaign featuring two: 30 TV commercials shot on location in Fort Bragg. The campaign generated over 300,0000 impressions, 2,000 hours of video interaction, and an unprecedented 87% online Viewed in Full rate. • Sacramento Magazine print and newsletter campaign.
• Mendocino Film Festival sponsorship with program and preens at Coast Cinemas. • Continued creative identity and promotion of key events:
- Magic Market Holiday Gift Guide, including first-time artist pop-ups - Winter Wonderland with extensive local and visitor outreach - Whale Fest + Restaurant Week, Beer Fest
• Landing Page: newsletter sign up promotions creates 5,0000 subscribers • Google Display Campaign with 39,0000 clicks @ $0.11/click • Organic Social unites merchants, restaurants, wineries, and breweries.

FY 2023/24 TOP PRIORITIES
• Continue to grow to Visit Fort Bragg’s marketing subscriber base on social media and enewsletter, encouraging visitation and maintaining an affinity for Fort Bragg. • Continue to support Fort Bragg merchants through directly-measurable marketing promotions that drive engagement and customer traffic.
• Continue to reach and engage with younger audiences in driving distance regions (SF, East & South Bay) outside of Northern Central Valley.
• Currently involved in Social Media restructuring to highlight and differentiate creative brand identity, align social content categories, solidify use of local stories and reels and support robust event promotion.
• Promote and cultivate Fort Bragg’s role in a regional Blue Economy effort with targeted campaigns focused on the marine environment, environment and technology. • Maintain successful, popular annual promotions such as Photo Collection, Gift Guide, etc., using past years as foundations for increased engagement. • Develop a mountain biking campaign in partnership with CAL FIRE and Jackson State Demonstration Forest to encourage discovery, visitation and responsible use of state forest.

DEPARTMENT DETAILS – MARKETING & PROMOTIONS
City of Fort Bragg
FY 2023/24 Proposed Budget

BUDGET OVERVIEW
A voter-approved Measure AA in 2016 increased the City’s Transient Occupancy Tax (TOT) with a companion advisory measure (Measure AB), which allocates one-half of the TOT proceeds to Marketing Fort Bragg as a visitor destination. TOT revenue has recorded yearover-year growth since 2017, which is to some degree related to the increase in marketing efforts.

The Marketing and Promotions Budget is $241K for FY 2024, a 9% increase from budgeting for the July 4th Fireworks in the current budget rather than splitting the budgets during two fiscal years. Additionally, the Visit Fort Bragg Committee has a budget increase of $24K for local events. Professional services of $180k are costs for Idea Cooperative, the contracted marketing firm.

BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4321
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0319 Professional Services $ 193,880 $ 200,000 $ 200,000 $ 180,000 -10% 0320 Dues & Memberships 150 - 150 150 0%
0371 Meetings/City Business - 500 250 500 100%
0619 Fireworks 32,803 20,000 20,000 35,000 75%
0382 Visit Fort Bragg Committee - - - 25,000 100%
Total Marketing & Promotion Budget $ 226,875 $ 220,500 $ 220,400 $ 240,650 9%

VISIT FORT BRAGG MARKETING & PROMOTIONS BUDGET SUMMARY
FUND 110
DEPARTMENT: 4321
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Expenditure:

Material and Services $ 226,875 $ 220,500 $ 220,400 $ 240,650 9% Total Departmental Expenditure $ 226,875 $ 220,500 $ 220,400 $ 240,650 9%

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CITY OF

FORT BRAGG

FINANCE

DEPARTMENT
Fiscal Year
2024
Proposed Budget
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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

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CITY OF

FORT BRAGG
NONDEPARTMENTAL
Fiscal Year
2024
Proposed Budget
This page has been intentionally left blank.

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%

CITY OF

FORT BRAGG
POLICE

DEPARTMENT
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

DEPARTMENT DESCRIPTION

The Fort Bragg Police Department functions with two divisions consisting of an Administrative Division and a Patrol Division. The Administrative Division is comprised of the Chief of Police, one Administrative Analyst, one Administrative Assistant, one Special Investigator, two Social Services Liaisons, and two Code Enforcement Officers. The Patrol Division is comprised of one Captain, four Sergeants, ten patrol officers, and two Community Service Officers.

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.

Chief of Police
Administrative
Analyst (1)
Administrative
Assistant (1)
Captain (1)
Police Sergeants (4)
Patrol Officers (10)
Community
Services Officers (2)
Special Investigator
(1)
Code Enforcement
Officers (2)
(Grant Funded)
Social Services
Liaison (2)
(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 25
PUBLIC SAFETY – POLICE DEPARTMENT BUDGET

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
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 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 Administrative Analyst handles Human Resources duties of police personnel.

A newly formed position of Special Investigator was created this year. The Special Investigator handles Internal Investigations involving police misconduct, background investigations for new employees, and is the Training Manager, FTO Supervisor, Ranger master, and Armorer. He also supervises the Social Services Liaisons and Code Enforcement. This position
allowed FBPD to bring many areas back in house instead of contracting them out, which saves time and money.

Under the Administrative Division, the Administrative Analyst and Assistant provide a variety of services to the public through both front office visits and phone calls. All written and electronic records are managed by this unit as well as Public Records Act requests, bills, requests for information, fingerprinting, sex registrants, and personnel files.

The Care Response Unit comprised of two
Social Services Liaisons provide services
including providing information and resources
supporting homelessness and 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. Their efforts have reduced arrests of homeless individuals by 47%. 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 Care Response Unit has gained national attention for its unique approach and success. On April 1, 2023, FBPD received a $345,000 grant from the Youth Opioid Resistance fund to pay for one of the SSL’s and another Success Coach. This new program is titled Project Right Now and will provide immediate assistance for rehabilitation and wrap-around follow up care for youth ages 12-24 suffering from opioid dependence in an effort to reduce the overdose death and injury rate as well as divert them from the criminal justice system. Project Right Now is a

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
revolutionary way of approaching this epidemic and has been recognized by UCLA to be used as a framework nationally.

Code Enforcement was transferred to the Police Department for oversight. A second Code Enforcement Officer was added early in 2023. This doubled their ability to address concerns throughout the community. In the Police Department, Code Enforcement gained new vision and direction. They also had an advantage of being part of a much larger team to support their efforts. Many processes were streamlined, creating efficiency.

The Patrol Division is divided into four defined 12 hours shifts of service; which when fully staffed are comprised of one Sergeant and two Patrol Officers. One other Patrol Officer is assigned to a “cover shift” for continuity in operations during shift change and to allow Dayshift to catch up on reports. One Community Service Officer is assigned to each Dayshift as well.

The Captain serves as Patrol Commander. The Patrol Division does not currently have a dedicated Detective for major crimes, requiring all Patrol members to remain proficient in all aspects of law enforcement investigations. Also, unlike larger agencies, Patrol officers here write and serve many search warrants. It should be noted the Patrol Division, during the last two years, has been operating at only one half to three quarters staffing levels. In June 2022, Patrol was at full staff for the first time in the last ten years. This lasted only two months, however, due to an officer not completing the field training, one officer lateraling to a nearby agency, and a Sergeant being reassigned to the new Special Investigator position.

The Patrol Division Captain works as both the Division Commander and in some cases a relief Sergeant 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 has written and managed several grants including.

The Department’s Wellness Program has grown considerably. One of the main points is the Mind Health Checkup program, which mandates all PD employees to see a contracted psychologist twice per year for a checkup. This model is used by only a few other departments nationwide, but has gained a lot of attention recently. We have also begun a virtual yoga program for public safety and the Cordico Officer Wellness app. They all allow police employees to partake in wellness anonymously, without fear of stigma or work action.

Additionally, a Peer Support team was started with three employees who all attended advanced peer support and Critical Incident Stress Management training. This tool allows staff the opportunity to talk to trained co-workers instead of a professional in person instead of virtually.

The intent is to offer a robust wellness system that satisfies everyone’s needs.

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

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
community combined with the bustling tourist economy means that the Department is often policing up to 30,000 people during the busy summer months.

FY 2022/23 TOP ACCOMPLISHMENTS
• Hired a permanent Chief
• Promoted an Officer to Sergeant
• Hired a new Community Service Officer
• Reorganization of Department structure
• All policies reviewed, updated and disseminated
• A full audit and inventory of the Armory
• A full audit, inventory, and purge of Evidence
• Began the conversion to an electric fleet with four
electric and one hybrid truck ordered
• New and innovative Wellness programs
• New and innovative Opioid programs
• 277% increase in DUI arrests
• 25% decrease in collisions
• Purchase of five new vehicles – four are fully electric • First Employee Awards
• Most successful National Night Out event involving the entire community • Award of CIBHS grant to hire two new personnel to assist with youth and substance abuse
• 47% reduction in arrests of homeless
• Developed strategy to address homeless camps involving Patrol, Code Enforcement, and CRU
• Took Code Enforcement into PD and increased by one
• Providing financial support for many youth activities through Asset Forfeiture • Chief Cervenka graduated from POST Command College, awarded with Most Inspirational Student
• Updated Mission Statement; Motto; patch; and vehicle
graphics to better represent the Department, City, and
community
• Established Social Media Team and greatly increased
communications with the community
• Produced a recruitment video in house, saving thousands of dollars
• Purchased more Axon Body Cameras to equip each officer with their own
Figure 1The Chief’s Award –
presented to Captain O’Neal
and Acting Sergeant Ferris for
lifesaving acts

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

PERFORMANCE/WORKLOAD METRICS
INDICATORS FY 16 FY 17 FY 18 FY 19 FY 20 FY21 FY 22
FY23
(YTD)*

PUBLIC SAFETY
Incident Cases (I Cases) - - 1,505 3,624 4,271 3,481 4,103 3,578 Calls for Service 14,731 14,494 14,532 19,893 12,106 11,579 14,248 14,246** Crime Reports 1,487 1,534 1,554 1,320 1,268 1,131 1,147 829 Traffic Citations 813 918 941 648 508 362 392 245
Bookings 587 732 793 496 521 520 660 616
DUI 42 39 49 35 24 41 113 87
Traffic Accidents 183 147 145 145 141 152 139 81
*7/01/22 – 4/13/23**Includes CRU and Code Enforcement
FY 2023/24 TOP PRIORITIES
• Create and maintain a Volunteers in Police Services (VIPS) program intended to increase the use of volunteers for public safety activities
• Partner with Adventist Hospital for Chaplaincy Program • Begin 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. • Redesign of front office for booking/fingerprint area • Establish a Virtual Reality based training system, using cutting edge technology • Streamline Code Enforcement Complaint process
• Purchase new handguns and rifles with the latest technology for the safety of the community
• Hire and retain personnel with the goal of full staffing • Establish full-time SRO program with FBUSD
• Increase low or no cost training for all staff
• Review of all processes and procedures seeking cost efficient alternatives through the use of technology
• Establish an annual “Community Academy” for community members to learn more about the Police Department and Government

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

BUDGET OVERVIEW
The Police Department Proposed Budget is $4.9 million, an increase of 12% from the prior year.

Salaries and Benefits was the most significant increase, besides the MOU increases of 3%, in the prior fiscal year, the Code Enforcement Program was moved to the Police Department, increasing the overall Budget by $224K annually.

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 the latest survey held in January 1, 2023, there were no increases, confirming that the City’s salaries and benefits were competitive when compared to other local law enforcement entities, however, a 3% Cost of living adjustment is being included in the Fiscal year 2024 Budget per the Fort Bragg Police Association MOU and the realized annual costs of the four vacation positions (three officers and one community service position) resulted in budget savings in last fiscal year. The department transitioned from an interim chief in FY 2022 to hiring a new full-time Police Chief in FY 2023 and will be fully staffed once the three recruits graduates from the Academy by the end of Q2. A budget of $40k has been included for Police Academy costs for the three recruits.

The CE two positions are funded by the Community Development Block Grants (CDBG) which expires in April 2024. Depending on the Notice of Funding expected in June 2023 from Housing and Community Development (HCD), the City may request for an extension of the Grant through the end of the fiscal year or apply for new round of funding if permissible.

Moreover, the Care Response Unit comprised of two Social Services Liaisons provide services including providing information and resources supporting homelessness, mental health problems and maintained the Emergency Winter Shelter where they provided vouchers and record keeping for reimbursement of funds. On April 1, 2023, department received a $345,000 grant from the Youth Opioid Resistance fund to pay for one of the SSL’s and another Success Coach through April 2024. The second SSL’s position, which was funded by the Social Services Grant from FY 2022 was extended to December 2023. The proposed Budget includes funding for the second SSL position for the rest of the fiscal year once the Grant period ends.

Dispatch services are set to increase by
5% year-over-year provided by the City
of Ukiah which were offset by decreases
in general supplies and small tools and
equipment.

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

POLICE DEPARTMENTAL BUDGET SUMMARY
FUND 110
DEPARTMENT: 4200, 4202
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Revenue
Charges for services $ 102,719 $ 512,207 $ 459,317 $ 434,188 -5% Intergovernmental 35,178 34,200 70,000 48,200 100%
Fines & Forfeitures 41,988 28,000 10,250 10,000 -2%
Miscellaneous Revenue (4,201) 25,500 68,079 15,000 -78% Total Departmental Revenue 175,685 599,907 607,646 507,388 -16% Expenditure
Personnel Services 3,201,762 3,545,242 3,228,180 3,746,554 16% Non-Personnel Services 689,230 770,816 779,112 736,817 -5% Total Departmental Expenditure 3,890,992 4,316,057 4,007,292 4,483,371 12% Net Expenditure (3,715,307) (3,716,150) (3,399,646) (3,975,983) 17% Cost Allocation Summary
Expense - Cost Allocations 1,453,691 1,258,037 1,258,037 1,256,983 100% Revenue - Interfund Cost Reimb 145,424 159,066 165,271 170,229 3% Net Cost Allocation 1,599,115 1,417,103 1,423,308 1,427,212 Net Expenditure $ (5,314,423) $ (5,133,253) $ (4,822,954) $ (5,403,196) 12%

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0100 Salaries & Wages-Operations $ 1,948,543 $ 2,322,756 $ 2,092,201 $ 2,297,796 10% 0100 Salaries & Wages-Social Services - 77,802 85,431 158,626 85.7% 0200 Employee Benefits - Operations 1,253,219 1,118,399 1,023,933 1,223,636 19.5% 0200 Employee Benefits - Social Services - 26,285 26,615 66,496 149.8% Personnel Services 3,201,762 3,545,242 3,228,180 3,746,554 16.1% Public Safety, Administration and Operations
0313 Laboratory 3,430 2,500 2,730 2,800 3%
0314 Animal Care & Control 32,333 34,000 34,000 34,000 0% 0318 Investigative Medical Serv 765 1,500 - 1,500 100%
0319 Professional Services 41,460 25,000 25,000 25,000 0% 0320 Dues & Memberships 397 600 1,699 2,000 18%
0351 Equipment Repair & Maint 45 2,000 1,000 1,000 0%
0356 Rental-Equip & Vehicles 2,450 2,500 2,500 1,600 -36% 0357 Rentals - Space 4,585 4,900 4,900 4,900 0%
0362 Telephone & Communication 22,581 23,000 23,000 23,000 0% 0365 Copying/Printing 1,035 2,800 2,800 2,800 0%
0366 Training/Travel Reimbursement 32,225 35,000 35,000 35,000 0% 0367 PD Recruit Training 27,159 - - 40,000 100%
0371 Meetings/City Business 383 500 300 500 67%
0372 Postage 1,052 800 800 800 0%
0374 Evidence Supplies 1,224 1,400 1,500 1,500 0%
0375 General Supplies 6,718 8,000 8,000 1,000 -88%
0376 Medical/Safety Supplies 6,548 5,000 5,000 2,500 -50% 0380 Wellness - - 24,000 15,000 -38%
0381 Small Tools & Equipment 24,974 30,000 30,000 1,000 -97% 0383 Utilities 6,953 5,500 7,500 7,500 0%
0384 Books & Subscriptions 1,413 750 750 750 0%
0619 Miscellaneous 28,482 29,110 29,110 28,482 -2%
0386 Dispatch Services 394,765 386,011 395,662 415,445 5% Non-Personnel Services 689,230 606,272 639,112 648,077 1% Public Safety, Social Services
0319 Professional Services - 164,544 140,000 83,740 -40% 0379 Supplies - - - 5,000 100%
Non-Personnel Services - 164,544 140,000 88,740 -37%
Total Police Department $ 3,890,992 $ 4,316,057 $ 4,007,292 $ 4,483,371 12%

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
Line Item Detail
Category FY 2023/24
Fund #110 Account Account Proposed
Department: 4200 Detail Detail Budget
Personnel Costs:

Salaries & Wages $ 2,297,796
Employee Benefits 1,223,636
Total Personnel Costs $ 3,521,432
Materials & Services
110-4200-0313 Laboratory 2,800
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 2,000
110-4200-0351 Equipment Repair & Maintenance 1,000
110-4200-0356 Rentals - Equipment 1,600
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 1,500
110-4200-0375 General Supplies 1,000
110-4200-0376 Medical/Safety Supplies 2,500
110-4200-0380 Wellness 15,000
110-4200-0381 Small Tools & Equipment 1,000
110-4200-0383 Utilities 7,500
110-4200-0384 Books & Subscriptions 750
110-4200-0386 Dispatch services 415,445
110-4200-0619 Miscellaneous 28,482
Total Material & Services 648,077
Total - Police Department - Operations $ 4,169,509

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget
Social Service Liason
Line Item Detail:

Category FY 2023/24
Fund #110 Account Account Proposed
Department: 4202 Detail Detail Budget
Personnel Costs:

Salaries & Wages $ 158,626
Employee Benefits 66,496
Total Personnel Costs $ 225,122
Materials & Services
110-4202-0319 Professional Services 83,740
110-4202-0375 Supplies - CRU 5,000
Total Material & Services 88,740
Total - Police Department - Operations $ 313,862
BUDGET REVENUE DETAIL:

Fund #110
Department: 4200, 4202
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Charges for Services
3318 Grant Staff Time Reimb $ 23,168 $ 432,707 $ 77,894 $ 214,542 175% 3318 Grant Staff Time Reimb- Social Services - $ - $ 313,174 $ 146,623 -53% 3419 Police Copies 4,220 $ 5,000 $ 4,500 $ 4,800 7%
3422 Police Fingerprints 33,578 $ 42,000 $ 42,448 $ 42,872 1% 3425 Stored Vehicle Release 10,130 $ 10,000 $ 10,000 $ 10,000 0% 3426 Abandoned Vehicle Abatement 31,490 $ 22,000 $ 11,000 $ 15,000 36% 3718 Police Witness Fee 134 $ 500 $ 300 $ 350 17%
Total Charges for Services 102,719 512,207 459,317 434,188 -5% Intergovernmental
3200 DNA Reimbursements 2,581 $ 4,200 $ 3,000 $ 3,200 7% 3719 Booking Fee Reimbursement 17,025 $ 14,000 $ 29,000 $ 25,000 -14% 3201 Training Reimbursement 15,257 $ 16,000 $ 38,000 $ 20,000 -47% Total Intergovernmental 35,178 34,200 70,000 48,200 -31% Fines & Forfeitures
3511 Parking Fines 37,518 $ 20,000 $ 10,000 $ 10,000 0% 3513 DUI Cost Recovery 4,470 $ 8,000 $ 250 $ - -100%
Total Fines & Forfeitures 41,988 28,000 10,250 10,000 -2% Miscellaneous
3998 Miscellaneous revenues (4,201) $ 25,500 $ 68,079 $ 15,000 -78% Total Miscellaneous (4,201) 25,500 68,079 15,000 -78%
Total Police Dept. Revenue $ 175,685 $ 599,907 $ 607,646 $ 507,388 -16%

COST ALLOCATION
Fund #110
Department: 4200
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0800 Overhead Allocation $ 1,120,681 $ 882,500 $ 882,500 $ 882,500 0% 0802 Cost Allocation contra exp (4,761) (1,629) (1,629) (4,761) 192% 0396 Allocation to ISF-IT 171,168 178,416 178,416 178,416 0% 0322 Allocation to ISF-Fleet 95,699 129,924 129,924 129,924 0% 0397 Allocation to ISF-Facilities 70,904 68,826 68,826 70,904 3% 3497 Interfund Cost Reimbursement - Rev 145,424 159,066 165,271 170,229 3% Net Cost Allocation $ 1,599,115 $ 1,417,103 $ 1,423,308 $ 1,427,212 0%

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CITY OF

FORT BRAGG
FIRE

DEPARTMENT
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

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

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

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

PUBLIC SAFETY – FIRE

DEPARTMENT DETAILS – PUBLIC SAFETY
City of Fort Bragg
FY 2023/24 Proposed Budget

PERFORMANCE / WORKLOAD METRICS
INDICATORS FY 18 FY 19 FY 20 FY21

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

BUDGET OVERVIEW
The FY 2024 Proposed Budget for the Fire Department is $453K, an increase of 3% due to increases in operational costs for the department.

BUDGET DETAIL:

Fund #110
Department: 4220
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0220 Pers $ 13,988 $ 13,630 $ 14,162 $ 14,587 3%
0319 Professional Services 420,435 426,332 426,331 439,121 3% Total Fire Department $ 434,423 $ 439,962 $ 440,493 $ 453,708 3% FY 2023/24
Fund #110 Account Category Proposed
Department: 4220 Detail Detail Budget
Personnel Costs
110-4220-0220 Pers $ 14,587
Total Employee Benefits $ 14,587
Materials & Services
110-4220-0319 Professional Services 439,121
Contribution to the Fire Protection District
Total Material & Services 439,121
Total - Fort Bragg Fire Protection District $ 453,708
Line Item Detail

CITY OF

FORT BRAGG

COMMUNITY

DEVELOPMENT
Fiscal Year
2024
Proposed Budget
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DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
Support the sustainable development of a vibrant economy, an attractive and functional built environment, and top-notch public and private development projects by providing exemplary:
(i) Long-range planning;
(ii) Current project permitting;
(iii) Housing & economic development;
(iv) Grant writing.

SUMMARY OF SERVICES
The Community Development Department is currently comprised of two staff positions, including an Assistant Planner and an Administrative Assistant. A Director has been hired and is anticipated to start in early June. Staffing is supplemented with the use of Consultants as needed. 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:

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 3
Community Development
Director

COMMUNITY DEVELOPMENT DEPARTMENT
Assistant
Planner
Administrative
Assistant

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
• Long-Range Planning: The Department engages the community, Planning Commission 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. • 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 projects 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 processes and approves all building, sign and Limited Term Permits.

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 all 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.

PERFORMANCE / WORKLOAD MEASURES (Calendar Year, not Fiscal Year) INDICATORS 2019 2020 2021 2022
Development Permits (Use Permits, CDPs, Design
Review, Subdivisions, Limited Term Permits, etc.) 70 33 63 83 CEQA Documents (EIR’s, MNDs, ND’s) 2 2 1 2
Building Permits 71 76 146 136
Housing – SFR, ADU, JADU, Apartments & Conversions 38
Solar – No. Addresses Approved for 18
Code Enforcement Cases* 77 50 131 176
Ordinance Amendments 2 2 4 4
Draft Work/On-Going Tasks 2 1
Grants 1 3 3 1
Business Licenses-New Awarded 111 93 92 90
Sign Permits 9 8 20 10
No. Planning Commission Staff Reports 14 9 23 21
No. Community Development Committee Staff Reports 3 3 10 12

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
FY 2022/23 ACCOMPLISHMENTS
• Timely permit processing with exceptional customer service (see chart above). • Entitlements approved included those for C&S Waste Transfer Station, Tall Man Brewery, SIP Wine Bar and Fort Bragg Transmission among others.
• 38 housing applications were processed and approved. These included Single Family Residences, Accessory Dwelling Units, and Apartments.
• 18 solar installation applications were approved.
• Ordinance amendments adopted included a Citywide Design Guidelines update; an amendment to regulate commercial cannabis cultivation and cannabis businesses in commercial zones; and the addition of a movable tiny homes ordinance which was a goal of the 2019 Housing Element;
• Implementation of Central Business District Revitalization efforts. • Implementation of a structured Code Enforcement program, followed by successful transition of the program to the Police Department.

FY 2023/24 TOP PRIORITIES
• Rebuild Community Development Department to full staffing levels. • Continue to work on the implementation of the 2019 Housing Element. • Process development, building, and sign permits efficiently and with exceptional customer service.
• Continue to work on the implementation of the Central Business District Revitalization Effort.
• Seek grants for priority City projects and activities. • Continue to undertake and implement new City projects.

BUDGET OVERVIEW
The Community Development Proposed Budget is $443K, an increase of 4%. Besides MOU increases of 2%, the most significant change was hiring a full-time Community Development Director in June 2023. The full cost of this position will be realised in the new fiscal year. The Department will be fully staffed in FY 2024 having being without a full-time Director for the last four years.

Non-personnel costs will decrease by approximately $22K as the Department contracted out planning work in FY 2023 due to staffing issues.

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget

COMMUNITY DEVELOPMENT DEPARTMENT BUDGET SUMMARY
FUND 110
DEPARTMENT: 4320
Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Expenditure Summary
Personnel Services $ 339,751 $ 440,794 $ 384,609 $ 423,948 10% Non-Personnel Services 25,666 42,323 42,323 19,950 -53% Total Departmental Expenditure 365,418 483,117 426,932 443,898 4% Revenue Summary
Charges for services 83,175 12,700 117,100 260,792 123% Fines & Forfeitures 8,706 10,000 2,000 5,000 150%
Licenses & Permits 16,205 19,000 18,290 19,293 5%
Intergovernmental - 67,690 - - -
Reimbursements 62,154 34,000 33,831 35,831 6%
Total Departmental Revenue 170,240 143,390 171,221 320,915 87% Net Rev/Exp (195,178) (339,727) (255,712) (122,982) -52% Cost Allocation Summary
Expense - Cost Allocations 311,188 293,585 235,120 304,012 100% Revenue - Personnel Allocations 10,831 - 10,831 10,831 - Net Cost Allocation 322,019 293,585 245,951 314,843 28% Net Expenditure $ (517,197) $ (633,312) $ (501,662) $ (437,825) -13%

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
BUDGET REVENUE DETAIL:

Fund #110
Department: 4320
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
Charges for Services
3318 Grant Staff Time Reimb $ 53,102 $ - $ 100,000 $ 228,671 129% 3415 City Exp Reimb - Developers 29,073 12,000 15,000 30,000 100% 3424 Ordinance Fees 1,000 700 2,100 2,121 1%
Total Charges for Services 83,175 12,700 117,100 260,792 123% Reimbursements
3497 Interfund Reimb - CDD 37,176 20,000 500 5,000 900% 3734 Community Dev Fees 13,606 14,000 22,500 20,000 -11% 3998 Miscellaneous 541 - - - 0%
3499 Overhead/Admin Cost Recovery 10,831 - 10,831 10,831 0% Total Reimbursements 62,154 34,000 33,831 35,831 6%
Licenses & Permits
3715 Sign Application 30 500 90 100 11%
3732 Grading Permits 1,200 1,000 1,100 1,000 -9%
3733 Building Permit Surcharge 12,455 15,000 14,000 15,000 7% 3702 Business License Surcharge 2,520 2,500 3,100 3,193 3% Total Licenses & Permits 16,205 19,000 18,290 19,293 5% Fines & Forfeitures
3735 Code Enforcement Fees 8,706 10,000 2,000 5,000 150% Total Fines & Forfeitures 8,706 10,000 2,000 5,000 150% Intergovermental
3205 Intergovermental - 67,690 - - -
Total Intergovermental - 67,690 - - -
Total CDD Revenue $ 170,240 $ 143,390 $ 171,221 $ 320,915 87%

COST ALLOCATION DETAIL
Fund #110
Department: 4320
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0801 Salary/Benefit Allocation $ - $ (3,263) $ (3,263) $ (3,263) 0% 0800 Overhead Allocation 336,668 257,129 257,127 336,668 31% 0802 Cost Allocation contra exp (69,294) - (69,294) (69,294) - 0396 Allocation to ISF-IT 26,745 33,663 33,663 33,663 0% 0397 Allocation to ISF-Facilities 6,238 6,056 6,056 6,238 3% 3499 Personnel Cost Allocation - Rev 10,831 - 10,831 10,831 0% $ 311,188 $ 293,585 $ 235,120 $ 314,843 34%

DEPARTMENT DETAILS – COMMUNITY DEVELOPMENT
City of Fort Bragg
FY 2023/24 Proposed Budget
BUDGET EXPENDITURE DETAIL:

Fund #110
Department: 4320
Object Description
FY 2021/22
Audited
FY 2022/23
Amended
Budget
22/23 FYE
Projected
FY 2023/24
Proposed
Budget
%
+ /-
0100 Salaries & Wages $ 254,131 $ 328,889 $ 304,879 $ 317,969 4% 0200 Employee Benefits 85,620 111,904 79,730 105,979 33% Personnel Services 339,751 440,794 384,609 423,948 10%
0319 Professional Services 20,142 33,073 33,073 12,000 0% 0320 Dues & Memberships 99 300 300 300 0%
0364 Legal Notices 3,573 4,000 4,000 3,000 -25%
0366 Training/Travel Reimbursement 1,815 3,000 3,000 4,000 33% 0371 Meetings/City Business - 250 250 250 100%
0381 Small Tools & Equipment 37 1,500 1,500 200 -87%
0384 Books & Subscriptions - 200 200 200 0%
Non-Personnel Services 25,666 42,323 42,323 19,950 -53% Total CDD Expenditure $ 365,418 $ 483,117 $ 426,932 $ 443,898 4% Line Item Detail FY 2023/24
Fund #110 Account Category Proposed
Department: 4320 Detail Detail Budget
Personnel Costs
Salaries & Wages $ 317,969
Employee Benefits 105,979
Total Personnel Costs $ 423,948
Materials & Services
110-4320-0319 Professional Services 12,000
110-4320-0320 Dues & Memberships 300
110-4320-0364 Legal Notices 3,000
110-4320-0366 Training/Travel Reimbursement 4,000
110-4320-0371 Meetings/City Business 250
110-4320-0381 Small Tools & Equipment 200
110-4320-0384 Books & Subscriptions 200
Total Material & Services 19,950
Total - Community Development Department $ 443,898