Special Workshop Meeting 05/23/2022
Special Workshop Meeting Agenda
Fortuna City Council
Monday, May 23, 2022 – 9:00 A.M.
621 11th Street, Fortuna CA
We May Disagree, but We Will Be Respectful of One Another All Comments Will Be Directed to the Issue at Hand, and Addressed to the City Council Personal Attacks are Unacceptable
I. CALL TO ORDER / FLAG SALUTE / ROLL CALL
II. ORAL COMMENTS FROM THE PUBLIC
Members of the Public may be heard on any item on the Special Meeting Agenda. Speakers addressing the Council will be limited to 3 minutes per speaker. Be advised, by law the City Council cannot deliberate or take action on issues presented during Oral Comments that are not shown on the Agenda.
III. DISCUSSION ITEMS
A. Fiscal Year 2022-2023 Proposed Budget
B. Part Time Pay Rate Schedules for Fiscal Year 2022-2023 C. Council Questions and Follow-Up from 1st Special Budget Meeting May 16, 2022 IV. ADJOURN
Pursuant to Government Code Section 54957.5, any non-confidential documents or writings that the City distributes, less than 72 hours before a regular meeting, to all or a majority of the legislative body's members must be made available to members of the public at the same time as the distribution. Documents and information related to the agenda topics are available for review at City Hall, 621 11th Street, between the hours of 8:00 AM to 5:00 PM. Members of the public are invited to come to the meeting and comment. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at 725-7600. Notification prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Siana L. Emmons
City Clerk
Proposed Budget
FY 2022-23
May 16, 2022
Budget Overview
• Measure E is projected to provide over $570,000 in support to the General Fund (~$220,000 more than last year) as well as maintain the increased safety personnel and parks and public works projects that the City has become accustomed to the past few years.
• General Fund Reserves exceed minimum required per reserve policy. • Sales Tax revenue increased significantly year over year (budgeted increase of $493,800 – includes Measure E), however, most recent data suggests leveling off of sales tax revenues.
• Department operating budgets remain near the bare bones level. • Increases to department operating budgets primarily due to wage and benefit cost increases (i.e. COLA’s) and Fuel increases.
General Fund Revenues
FY 21-22
Adopted
Budget
FY 21-22
Estimates
FY 22-23
Proposed
Budget
Change vs.
Prior Year
Budget
Property Tax $ 460,000 $ 480,000 $ 480,000 $ 20,000
Property Tax In-lieu/VLF 1,306,000 1,306,000 1,340,000 34,000 Sales Tax 1,917,200 2,079,000 2,145,600 228,400
Transient Occupancy Tax 550,000 650,000 700,000 150,000 Franchise Fees 348,000 348,000 473,000 125,000
Business Licenses 92,000 95,000 95,000 3,000
Parks and Recreation 175,250 166,000 175,250 -
Police 469,800 487,900 499,100 29,300
Successor Agency 200,000 200,000 200,000 -
Transfer In - Measure E (to
cover deficit) 361,353 361,353 566,073 204,720
Other 2,516,776 2,878,276 312,800 (2,203,976)
TOTAL $ 8,396,379 $ 9,051,529 $ 6,986,823 $ (1,409,556) 4Q 2021 Sales Tax (Bradley-Burns) Results
• State and County Pools Decreased
11.5% (This is online sales)
• Fuel and Service Stations increased
35.8%
Total Sales Tax Decreased 0.5% Quarter over Quarter
Sales Tax Trends (Bradley-Burns)
4Q 2021 Sales Tax (Bradley-Burns) Results
General Fund Operating Expenditures
FY 21-22
Adopted Budget
FY 21-22
Estimates
FY 22-23
Proposed
Budget
Change vs. Prior
Year Budget
City Council $ 34,342 $ 79,611 $ 34,207 $ (135)
City Attorney 50,000 50,000 50,000 -
City Manager 110,928 120,767 119,748 8,820
City Clerk 52,472 57,055 56,018 3,546
General Government 177,864 298,357 196,007 18,143
Risk HR 378,450 377,837 437,071 58,621
Community Promotion 158,800 167,855 175,924 17,124
Finance 175,269 174,359 190,241 14,972
Police 3,545,557 3,567,051 3,780,668 235,111
Planning 73,609 139,234 142,433 68,824
Parks & Recreation 872,444 1,185,572 940,963 68,519
Public Works 304,511 281,526 307,450 2,939
TOTAL $ 5,934,246 $ 6,499,225 $ 6,430,730 $ 496,484
CalPERS Unfunded Liability – Payment
History
Fiscal Year Payment
18-19 $ 529,866
19-20 $ 622,343
20-21 $ 690,264
21-22 $ 791,427
22-23 $ 815,334
Originally estimated at over
$920,000, however, Council
authorized $1,540,000 ADP in
February 2022 bringing total UL
payment down to ~$815,000 for
FY 22-23.
Fund Summary – General Fund
FY 21-22 Adopted
Budget
FY 21-22 Estimated
Actuals
FY 22-23 Proposed
Budget
SOURCES:
Revenues $ 8,035,026 $ 8,690,176 $ 6,420,750
Transfer in from Measure E 361,353 361,353 566,073
Total Sources 8,396,379 9,051,529 6,986,823
USES:
Operating Budgets 5,934,246 6,499,225 6,430,730
Debt Service - - -
Capital Improvement Projects 2,000,000 2,000,000 38,600 Transfer to Other Funds 93,848 74,209 102,148
Transfer to Development Fund 178,285 170,110 188,646
Transfer to Riverlodge Fund 183,530 160,762 186,327
Total Uses 8,389,909 8,904,305 6,946,451
Net Sources (Uses) $ 6,470 $ 147,224 $ 40,372
Proposed City Org Chart Changes
• Position Changes Included in Proposed Budget:
• Allocate (1) Full time Records Clerk Position (Funded by Measure E) • Position Changes seeking Council input (not currently included in Proposed Budget):
• Eliminate 3 PT Streets Maintenance Worker I’s in favor of 1 FT Streets Maintenance Worker II • Eliminate 1 PT Bus Driver and 1 PT Transit/Office Asst in favor of 1 FT Transit / Office Asst • Eliminate Account Clerk III Position in favor of Accounting Technician Position • Eliminate Senior Account Clerk Position in favor Finance Office Supervisor Position • Reclassify City Clerk / Human Resources Manager
Proposed City Org Chart Changes
Proposed Change
General Fund
Annual Cost
Impact
Enterprise
Funds Annual
Cost Impact
Comments
Eliminate Account Clerk III Position (16,700) (66,700)
Add Accounting Technician Position 16,900 67,400
assumes moving to F27 and
starting at same step as current
Net Impact 200 700
Eliminate Senior Account Clerk Position (34,300) (79,900) Add Finance Office Supervisor Position 34,300 79,900
Net Impact - -
Reclass City Clerk / Human Resources Manager 4,000 2,700 assumes moving to F58 and
starting at same step as current
Net Impact 4,000 2,700
Eliminate 2 Frozen Streets Maintenance I Positions - -
Eliminate 1 Steets Maintenance I Position (27,617)
Add 1 Streets Maintenance II Position 37,036 23,679
Net Impact 9,419 23,679
Eliminate 1 Part Time Bus Driver I - (23,775)
Eliminate 1 Part Time Transit/Office Asst (7,754) (11,630) Add 1 Full Time Transit/Office Asst 18,414 27,622
Net Impact 10,660 (7,783)
Total of all Changes $ 24,779 $ 20,396
Fund Summary – Streets Fund
Reserve Summary – General Fund
Reserve Policy
For City Council Discussion
A. Economic Contingency
Set-aside funds for unexpected loss of revenue or economic downturn; 5% of revenues; 349,341 provides time to adjust services to changing revenues
B. Capital Improvement/Infrastructure Reserve
Set-aside funds for unexpected major infrastructure failure 500,000 C. Operating/Working Capital Reserve
Provides cash flow for tax and grant collection period; days of expenditures: 180 3,425,647 D. Remaining unreserved Fund Balance/Operating Contingency 2,047,637 Estimated FY22-23 Ending Fund Balance $ 6,322,625
Does not include
PERS ADP made at
the end of February.
Taking that into
account leaves ~
$5.5 million as
estimated reserves
Summary
Measure E Importance
◦ General Fund relies heavily on Measure E revenue.
◦ With Measure E General Fund is able to have a small surplus for FY 22-23.
Unfunded Liability
◦ ADP City authorized in February 2022 lowered mandated PERS payment for FY 22-23 ◦ Include ADP in FY 22-23 Budget or wait until mid-year to re-evaluate? Sales Tax Trends
◦ Consumer spending is starting to stall.
◦ Biggest General Fund Revenue Source (City Receives $.0175 of City $.085 Tax). ◦ Brick and Mortar sales have recovered to pre pandemic levels Discussion Item B
STAFF REPORT
City Council Discussion Agenda Item
DATE: May 23, 2021
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Part Time Pay Rate Schedules for Fiscal Year 2022-2023 STAFF RECOMMENDATION:
Discuss the Part Time Pay Rate Schedule for Fiscal Year (FY) 2022-2023 and direct staff to apply the 8% Cost of Living Adjustment (COLA) beginning July 1, 2022 or January 1, 2023.
EXECUTIVE SUMMARY:
Minimum wage will be increasing to $15.50/hour on January 1, 2023. There are some part time positions that have steps on the Pay Rate Schedule that will not meet the minimum wage requirement unless changed
In 2022, the City completed negotiations with the Fortuna Police Employees Association (FPEA) and Fortuna Employees Association (FEA). Both bargaining units and the City, agreed to a Memorandum of Understanding (MOU) that outlined agreed upon COLA and terms.
The FEA bargaining unit and the unrepresented employee group agreements included an 8% COLA for the first year of the agreement and a 2% COLA for the second. Historically, the City has applied the same increases to part-time employees, however, this year the COLA was not applied to the part time Pay Rate Schedule upon completion of negotiations.
At this time, staff would like Council to consider whether to implement the 8% COLA offered to the FEA should also be applied to part time employees on July 1, 2022 or January 1, 2023.
The City’s Finance Director, Aaron Felmlee, has provided the current adopted Part-time Pay Rate Schedule, as well as the Pay Rate Schedule that would need to be implemented by January 1, 2023. (Attachments 1 and 2)
FISCAL IMPACT:
The proposed increases shown on the draft FY 2022-2023 Part-time Pay Rate Schedule are included in the draft budget presented to the council assuming the salary increases are applied on January 1, 2023. If the council chooses to implement the increases to the Part-time Pay Rate Schedule on July 1, 2022, there would be an estimated additional cost to the City in the amount of Discussion Item B
$8,900. $7,600 of this total amount would be from the General Fund and $1,300 would be from Enterprise Funds.
RECOMMENDED COUNCIL ACTION:
Direct staff to implement the 8% COLA on July 1, 2022 or January 1, 2023.
ATTACHMENTS:
• Adopted FY 2021-22 Part-time Pay Rate Schedule
• Draft FY 2022-23 Part-time Pay Ray Schedule
FY 2021-22 Part-time Pay Rate Schedule
City of Fortuna
P / R Step Base 4% 4% 4% 4% 4%
Code No. Step 0 Step 1 Step 2 Step 3 Step 4 Step 5
200 Kennel Attendant (R) P10 Hr: 15.0000 15.6000 16.2240 16.8730 17.5479 201 Recreation Leader (S)
202 Conference Center Worker (OC)
203 Transit Dispatch / Office Assistant (R)
204 Street Maintenance Worker I (R & S)
205 Parks Maintenance Worker I (R & S)
220 Bus Driver I (R) P12 Hr: 15.0000 15.6000 16.2240 16.8730 17.5479 18.2498 221 Recreation Program Coordinator (S)
230 Museum Curator (R) P16 Hr: 15.2484 15.8584 16.4927 17.1524 17.8385 18.5520 237 Facility Custodian (R) P19 Hr: 16.0691 16.7119 17.3804 18.0756 18.7986 19.5505 240 Administrative Assistant I (R) P23 Hr: 17.2376 17.9271 18.6441 19.3899 20.1655 20.9721 250 Community Services Officer I (R) P26 Hr: 18.1729 18.8998 19.6558 20.4420 21.2597 22.1101 251 Reserve Police Officer (S)
255 Engineering Technician I (R & T) P27 Hr: 18.5013 19.2414 20.0110 20.8115 21.6439 22.5097 265 Dispatcher I (R) P35 Hr: 21.3467 22.2005 23.0886 24.0121 24.9726 25.9715 270 Code Compliance Officer (R) P36 Hr: 21.7309 22.6002 23.5042 24.4443 25.4221 26.4390 299 * Special Consultant / Interim Employee (T) Hr: 15.0000 75.0000 KEY:
R: Regular Part-time; Maximum of 29 hours per week, or 126 hours per month, or 1,508 hours per calendar year. (Year-round positions) T: Temporary Part-time; Job assignment not to exceed one year (12 consecutive months). (One-time projects, not subject to call back year after year) Classification
* This Classification includes but is not limited to Retired Annuitants, Special Projects Consultants, and Interim Employees. Hourly wage is dependent upon qualifications and positions hired for. Does not participate in COLA/pay adjustments.
S or OC: Seasonal or On Call; Maximum of 6 months per calendar year, or maximum of 1000 hours per calendar year. (Seasonal or On Call part-time employees cannot work year round but can be called back year after year)
Adopted By Council at 6-7-21 Meeting (Effective 7-1-21) Updated By Council at 12-6-21 Meeting (Effective 1-1-22) DRAFT FY 2022-23 Part-time Pay Rate Schedule
City of Fortuna
P / R Step Base 4% 4% 4% 4% 4%
Code No. Step 0 Step 1 Step 2 Step 3 Step 4 Step 5
200 Kennel Attendant (R) P10 Hr: 15.5770 16.2000 16.8480 17.5220 18.2228 18.9518 201 Recreation Leader (S)
202 Conference Center Worker (OC)
203 Transit Dispatch / Office Assistant (R)
204 Street Maintenance Worker I (R & S)
205 Parks Maintenance Worker I (R & S)
220 Bus Driver I (R) P12 Hr: 16.2000 16.8480 17.5220 18.2228 18.9518 19.7098 221 Recreation Program Coordinator (S)
230 Museum Curator (R) P16 Hr: 16.4683 17.1270 17.8121 18.5246 19.2656 20.0362 240 Administrative Assistant I (R) P23 Hr: 18.6166 19.3612 20.1357 20.9411 21.7787 22.6499 250 Community Services Officer I (R) P26 Hr: 19.6267 20.4118 21.2282 22.0774 22.9605 23.8789 251 Reserve Police Officer (S)
255 Engineering Technician I (R & T) P27 Hr: 19.9814 20.7807 21.6119 22.4764 23.3754 24.3105 265 Dispatcher I (R) P35 Hr: 23.0544 23.9766 24.9357 25.9331 26.9704 28.0492 270 Code Compliance Officer (R) P36 Hr: 23.4694 24.4082 25.3845 26.3999 27.4559 28.5541 299 * Special Consultant / Interim Employee (T) Hr: 15.0000 75.0000 KEY:
R: Regular Part-time; Maximum of 29 hours per week, or 126 hours per month, or 1,508 hours per calendar year. (Year-round positions) T: Temporary Part-time; Job assignment not to exceed one year (12 consecutive months). (One-time projects, not subject to call back year after year) Classification
* This Classification includes but is not limited to Retired Annuitants, Special Projects Consultants, and Interim Employees. Hourly wage is dependent upon qualifications and positions hired for. Does not participate in COLA/pay adjustments.
S or OC: Seasonal or On Call; Maximum of 6 months per calendar year, or maximum of 1000 hours per calendar year. (Seasonal or On Call part-time employees cannot work year round but can be called back year after year)
Adopted By Council at xx-xx-21 Meeting (Effective xx-xx-2x)