Fountain Valley City Council
June 21, 2022

FY 22-23 ACTION PLAN 4

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Fountain Valley is a recipient of federal Community Development Block Grant funding and is a designated Entitlement City. As required under U.S. Department of Housing and Urban Development (HUD) regulations, the City of Fountain Valley has prepared its FY 2022-23 Annual Action Plan for Community Planning and Development Programs (FY 22-23 Action Plan). This is the third year of the 2020-24 Consolidated Plan. An approved FY 22-23 Action Plan is a prerequisite for funding under HUD's Community Development Block Grant (CDBG). The period covered by this action plan is July 1, 2022, through June 30, 2023.

The FY 22-23 Action Plan describes the projects and activities that the City of Fountain Valley is proposing to undertake utilizing funds made available by HUD under the CDBG program. The plan also describes community development projects and activities that will be implemented utilizing non-federal sources. The City of Fountain Valley will utilize a variety of funding sources to accomplish the projects and activities outlined in the Consolidated Plan. These funds include Federal, State, and private sources.

The annual FY 22-23 Action Plan has been prepared utilizing HUD’s eConPlan suite, a module of the Integrated Disbursement and Information System (IDIS). This ensures that the FY 22-23 Action Plan includes all HUD required components and report formatting.

On May 13, 2022, HUD announced the CDBG allocations for FY 22-23. The City of Fountain Valley will receive $319,886 in CDBG grant funding for this fiscal year. This is a reduction of approximately $30,000 from last year. The FY 22-23 allocation will be combined with $149,567 in unobligated Carry Forward from prior year grants, and $30,547 in CDBG-CV funds, for a total budget of $500,000 for CDBG funded programs and activities.

HUD caps the amount of funding that may be expended on administration costs to twenty percent (20%) of the total entitlement which must include the cost to provide HUD required fair housing services. For FY 222-23, $58,977 is budgeted for program administration and $5,000 is budgeted for fair housing services. CDBG regulations allow a maximum of fifteen percent (15%) of the entitlement for Public Service Agency grants. The City will allocate the maximum allowed, $47,982, plus $30,547 in CDBG-CV funds for a total of $78,529 for the fiscal year. The balance of

FY 22-23 ACTION PLAN 5
the entitlement is budgeted for the provision of low-moderate income housing related programs for home preservation, which include $268,916 for home rehabilitation, $7,500 for lead based paint testing, and $81,078 for code enforcement activities.

Other Federal funding sources, although not directly funded by the City, includes Housing Choice Vouchers (Section 8 Rental Assistance) that is administered by the Orange County Housing Authority.

National COVID-19 Emergency Response and Funding
In response to the National COVID-19 Pandemic, the City received a total of $616,554 in CARES Act CDBG funding to be used for activities that prevent, prepare for, or respond to coronavirus.

Approximately $60,000 of the CARES Act funding remains. This fiscal year, $30,547 in CDBG-CV funds will be used to fund the third year of the Senior Services program in Response to COVID.

A mobile food pantry will be added to the program to assist seniors needing more easily accessible food due to COVID or COVID-related circumstances.

2. Summarize the objectives and outcomes identified in the Plan The City's Housing and Community Development (HCD) Division has created several programs, projects and activities proposed for implementation during FY 2022-2023 each of which has been designed to meet the following four goals of the 2020-2024 Consolidated Plan:
• Priority #1 - Improve and preserve existing residential neighborhoods by implementing home improvement, code enforcement, and public facility and infrastructure improvement programs.
• Priority #2 - Address the needs of persons with special needs through the provision of financial assistance to public service agencies, and the removal of architectural barriers to the physically challenged.
• Priority #3 - Provide affordable housing opportunities for renter households through an on-going partnership with the Orange County Housing Authority. • Priority #4 - Administer available federal, state and locally funded housing and community development grant programs, including providing fair housing services and ensuring compliance with applicable state and federal regulations.

Outcomes are discussed in the next section, Evaluation of Past Performance.

FY 22-23 ACTION PLAN 6
The listed goals and objectives below will be implemented during the five-year period:

High Priority Need
 Administration of Grant: 5 year program
 Owner Occupied Home Improvement: Rehab 75 units
 Housing and Supportive Services: Assist 2,285 persons  Code Enforcement in eligible areas: 1250 households
 Fair Housing Services: 300 persons
 Lead Based Paint Hazard Grant: 75 homes
 Fair Housing 5 –Year Report: 1 report covering city population of approximately 57,000 Low Priority Need
 Affordable Housing: 1 unit
 Residential Rehab for Rentals: 1 unit
 Affordable Rental Development: 1unit
 Capital Improvement Projects: 1 unit
 Natural Disaster Funds: 1 other

3. Evaluation of past performance
Year-end totals are not available for FY 21-22 therefore FY 20-21 will be the primary source used to evaluate past performance. Many of the City’s programs have been affected by the coronavirus pandemic since March 2020 as reflected below.

Priority #1: Improve and preserve existing residential neighborhoods by implementing home improvement, code enforcement, and public facility and infrastructure improvement programs.

During FY 20-21, the City’s Home Improvement Program funded 12 applications for grants, rebates or loans to assist low- income homeowners rehabilitate their properties and two grants for lead based paint testing and abatement. The Home Improvement Program was modified in April 2020 to allow for an Exterior Grant program which allowed the City to continue providing rehabilitation grants to low income households during the pandemic. Two (2) exterior grants were completed this fiscal year. In FY 21-22, staff was able to return to the original home improvement program as city residents and employees became more comfortable with COVID regulations and the necessary safety requirements that allowed for providing both interior and

FY 22-23 ACTION PLAN 7
exterior rehabilitation services. CDBG funding was also used for code enforcement services in CDBG eligible areas to identify and abate 214 residential properties with code violations.

For FY 21-22, the City is on target to meet or exceed the projected annual goals.

Priority #2: Address the needs of persons with special needs through the provision of financial assistance to public service agencies, and the removal of architectural barriers to the physically challenged.

Fountain Valley addressed this priority by providing grant funding to six (6) non-profit public service agencies providing seven (7) programs under the City’s Public Service Agency (PSA) Grant Program. In allocating funding under this program, the City followed HUD’s Continuum of Care philosophy by ensuring that resources were made available to assist as many special needs populations as possible. In FY 20-21, 635 persons/households were assisted through seven (7) PSA programs funded under the City’s PSA Grant Program. This total was higher for the senior based services who had a significant increase in clients due to COVID-19.

The City also used CARES Act funding to implement a Senior Social Services Program in Response to COVID that was funded in both FY 20-21 and FY 21-22 to assist Fountain Valley seniors prevent, prepare for and respond to the pandemic. In FY 20-21 an additional $90,000 was provided to the seven (7) initial PSA grant recipients to offset costs incurred in response to COVID.

For FY 21-22 the PSA’s are on target to meet or exceed the projected annual goals.

Priority #3 Provide affordable housing opportunities for renter households through an ongoing partnership with the Orange County Housing Authority.

During FY 20-21, the City of Fountain Valley continued to provide renter households with access to affordable housing opportunities through its ongoing partnership with the Orange County Housing Authority (OCHA). Under this partnership, extremely low- and very low-income households can receive Section 8 Rental Assistance Vouchers provided by the U.S. Department of Housing and Urban Development (HUD). 465 households in Fountain Valley received Housing Choice Vouchers (Section 8) during FY 20-21.

Priority #4: Administer available federal, state and locally funded housing and community development grant programs, including providing fair housing services and ensuring compliance with applicable state and federal regulations.

FY 22-23 ACTION PLAN 8
The administration of the City’s housing and community development programs that benefited low and moderate-income persons included the following task/accomplishments:
• Preparation and submission of all funding applications including the Annual Action Plans, Consolidated Annual Performance and Evaluation Report (CAPER); and all reports required by HUD and other governmental agencies;
• Administration of CDBG funded projects including on site monitoring of home rehabilitation projects and annual audits of the public service agencies receiving CDBG funds;
• Preparation of all environmental review records (ERR’s) and other administrative reports required by federal, state and local funding agencies; • Implementation and oversight of the City’s Home Improvement Program, Public Service Agency (PSA) Grant Programs, and Code Enforcement Program; • Contracted for fair housing services with Orange County Fair Housing Council.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

In order to encourage citizen participation in the development of the City's FY 22-23 Action Plan, a number of actions were taken to receive the greatest amount of participation:
• On September 1, 2021, a public meeting of the Housing and Community Development Advisory Board (HCDAB) was held to review the Annual Action Plan process and timeline.
• On October 7, 2021, Housing and Community Development (HCD) staff published a Public Notice in the Fountain Valley View announcing the availability of funding under the City of Fountain Valley’s FY 22-23 Public Service Agency (PSA) Grant program.

Correspondence further detailing the availability of funding was sent to all prior-year program applicants and posted on the City’s website.
• On November 3, 2021, the application period to submit applications for PSA Grant funding closed. Seven (7) program applications were received from six (6) nonprofit organizations that provide services for low-income Fountain Valley residents. • On December 1, 2021, a public meeting of the HCDAB was held to receive presentations by six (6) agencies applying for PSA grants and one (1) fair housing services provider applying for funding to provide fair housing services to city residents. The PSA’s provided input regarding the public service needs they felt were needed in the

FY 22-23 ACTION PLAN 9
community. The board considered applications and made funding recommendations for the grant. Recommendations will be forwarded within the Action Plan to the City Council for review and approval.
• On February 17, 2022, a Public Notice was published in the Fountain Valley View announcing the commencement of the minimum 30-day review comment period beginning March 1, 2022 and concluding March 31, 2022. It advised the Action Plan was available on the website and can also be requested via email, or phone. The Public Notice advised of a public hearing at the March 3, 2022 HCDAB meeting to receive public comments on the FY 22-23 Draft Action Plan, and a second Public Hearing at the Fountain Valley City Council on May 3, 2022, to receive comments, review and approve the FY 22-23 Action Plan.
• On March 3, 2022, HCDAB held a public hearing to review the FY 2022-2023 Action Plan that includes the CDBG budget. No public comments were received. • On April 6, 2022, HCDAB held a public meeting to review the draft FY 22-23 Action Plan and forwarded a recommendation of approval to the City Council. No public comments were received.
• At the May 3, 2022, the City Council meeting staff requested a continuance of the Public Hearing until June 21, 2022 due to HUD’s delay in announcing the annual allocation. • On June 21, 2022, the City Council held a public hearing to review the FY 2022-2023 Action Plan that includes the CDBG budget. The Fountain Valley City Council unanimously approved the Action Plan and requested the City Manager to execute all necessary documents to forward the plan to HUD. (TBD)

5. Summary of public comments
No comments received. (TBD)

6. Summary of comments or views not accepted and the reasons for not accepting them The City of Fountain Valley did not exclude any comments or views. (TBD)

7. Summary
The Action Plan covers the period from July 1, 2022 to June 30, 2023 and identifies how the city will allocate its Fiscal Year 2022-23 CDBG grant funding. As stated above, the City of Fountain Valley continues to foster and maintain affordable housing and services to the underserved by successfully implementing housing and community development

FY 22-23 ACTION PLAN 10
programs including its home improvement, code enforcement, fair housing, and public facility and infrastructure improvement programs. The grantee chose its goals or projects for the coming year based on the success of each program’s past performance and needs of the community.

The City has previously provided additional grant funding to small businesses and public services to assist with costs incurred in response to COVID -19. Funding will continue to be provided to the Senior Social Services Program in Response to COVID to assist in the response to COVID and COVID-related issues.

FY 22-23 ACTION PLAN 11
CR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator FOUNTAIN VALLEY Planning & Building Department Table 1 – Responsible Agencies
Narrative (optional)
The City of Fountain Valley is an Entitlement City. The City of Fountain Valley Planning and Building Department is the lead agency for developing and implementing the strategic plan for the CDBG Program. The Housing and Community Development Division within the Planning and Building Department administers the CDBG Program.

Consolidated Plan Public Contact Information
Ashlyn Newman
Housing Coordinator
[email protected]
(714) 593-4428
Fountain Valley City Hall
10200 Slater Avenue
Fountain Valley, CA 92708

FY 22-23 ACTION PLAN 12
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City contacts and consults with public agencies, private agencies and city residents to get a better understanding of community needs for the plan year during the development of the FY 22-23 Action Plan. For the Action Plan, the city consulted with the entities that are identified in the following sections.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Fountain Valley does not have any public housing within its jurisdiction. The city partners with the OCHA who administers the rental assistance program in the city and issues Rental Assistance Vouchers, Housing Choice Vouchers (Section 8) and other forms of housing assistance to city residents. The city is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with input regarding program policies. The city continues to work closely with other Orange County HUD-grantee communities to develop regional plans and to share program management data.

Additionally, many of our PSA grantees provide physical and mental health evaluation within their scope of services and provide assistance for residents when needed, either from their organization or by referring them to an appropriate agency for support.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The City of Fountain Valley is a member of CA-602 Santa Ana, Anaheim, Orange County Continuum of Care (CoC). The County of Orange is the lead agency in Orange County’s CoC and the Orange County Office of Care Coordination administers and organizes the implementation of the program. Together with cities, non-profits, community organizations and businesses, Orange County’s CoC has built a system of care to connect those experiencing homelessness to available resources and assistance. The County’s regional planning process has been devised to ensure a single well-coordinated system of care to end homelessness. This is accomplished by

FY 22-23 ACTION PLAN 13
balancing emergency, transitional, and permanent housing plus supportive services to address the needs of homeless persons so they can transition from streets and shelters to independent living.

Orange County is divided into three Service Planning Areas (SPAs) that efficiently direct resources as individuals experiencing homelessness enter the Coordinated Entry System. The City of Fountain Valley is in the Central SPA and staff attends quarterly meetings with all members to share information and give input into the development of plans across the region.

While the County’s CoC and other supportive services are designed to move the homeless out of crisis and into self-sufficiency, the needs drastically exceed the funding available. To assist with this endeavor, the City of Fountain Valley grants 100% of the CDBG funds that are permitted to be allocated to public service agencies, to local PSA programs that assist the underserved. Many of these grantees offer supportive services that fill the gaps in the CoC system for the homeless and persons at- risk of becoming homeless.

HUD requires that all CoC jurisdictions across the nation complete a biennial unsheltered count and an annual sheltered count of all individuals experiencing homelessness in the community on a single point in time during the last ten days of January. This is called the Point-In-Time (PIT) count. The 2021 PIT was an abbreviated survey due to Covid-19 and only counted sheltered persons experiencing homelessness that were staying in emergency shelter or a transitional housing project. The full PIT was postponed until 2022. In January of 2022, the County of Orange is among several Continuums of Care (CoC) in Southern California that were approved by HUD to reschedule their 2022 Point in Time to the last 10 days in February due to the impacts of Covid-19. The County of Orange and the Orange County Continuum of Care conducted the sheltered count on February 21, 2022 and the unsheltered count on February 22 through 24, 2022.

The 2022 PIT count showed that the city of Fountain Valley had a total of 38 persons experiencing homelessness and all 38 were unsheltered. This is a reduction of four persons from 2019, however, in 2019, 14 people were in shelters. This means that there are 10 more unsheltered persons experiencing homelessness in Fountain Valley than in 2019.

As of March 1, 2022, Fountain Valley City Council approved a contract with City Net as an added outreach to our homeless population. They will be making contact independently throughout the City to evaluate and offer resources for shelter, medical treatment, and other primary needs. City Net will be working with our Community Resource Officers as well as independently in order to alleviate some of the aspects of the social services so that our Community Resource

FY 22-23 ACTION PLAN 14
officers can focus on the law enforcement aspect. This program is funded outside of the CDBG program.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Fountain Valley is not a recipient of ESG funds nor do we administer HMIS. The Orange County CoC makes the determination of ESG fund allocations and the development, operation and/or administration of the fund and HMIS entries. The City attends and contributes to the COC’s quarterly Central Service Planning Area meetings regarding these items.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
See Table 2 and Table 3 on the following pages.

FY 22-23 ACTION PLAN 15
Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization INTERVAL HOUSE
Agency/Group/Organization Type Services - Housing
Services-Children
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Services-Education
Services-Employment
Services - Victims
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with children
Homelessness Strategy
Non-Homeless Special Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Interval House is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. They provide input into the needs and numbers of women and children that are victims of domestic violence in the City. Interval House provides quarterly updates of the number of people served.

FY 22-23 ACTION PLAN 16
2 Agency/Group/Organization Waymakers (Formerly Community Services Program) Agency/Group/Organization Type Services-Children
Services-Education
Services - Victims
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Special Needs Facility and Service
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Community Services Program, now known as Waymakers, Inc. is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. The agency provides statistics on youth diversion needs and programs available to residents as well as potential programs that can be implemented in the future to address local needs. 3 Agency/Group/Organization Boys and Girls Club of Huntington Valley Agency/Group/Organization Type Services-Children
Services-Education
Child Welfare Agency
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Special Needs Facility and Services
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Boys and Girls Club of Huntington Valley is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. The agency provides quarterly updates on the financial needs of low- income children in the city and the amount of assistance they provide to city residents.

FY 22-23 ACTION PLAN 17
4 Agency/Group/Organization Elwyn California
Agency/Group/Organization Type Services-Persons with Disabilities Services-Education
Services-Employment
Publicly Funded Institution/System of Care
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Special Needs Facility and Service
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Elwyn California is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. Elwyn provides input regarding the City's special needs populations, including job training and employment opportunities for persons with developmental disabilities.
5 Agency/Group/Organization Community SeniorServ/ Meals on Wheels Agency/Group/Organization Type Services-Elderly Persons Services-Health
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Anti-poverty Strategy
Special Needs Facility and Service

FY 22-23 ACTION PLAN 18
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Community SeniorServ aka Meals on Wheels is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. Agency helps identify and support the needs of the City's special needs-elderly population specifically elderly and the frail. Agency submits quarterly statistics for city review.
6 Agency/Group/Organization Fair Housing Council of Orange County Agency/Group/Organization Type Services - Housing
Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Impediments to Fair Housing
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Fair Housing Council of Orange County is a public service provider for Fountain Valley residents and sub-recipient of the CDBG Grant funds from the City. They provide quarterly input on housing issues in the City as well as providing annual workshops for landlords and tenants and sharing anecdotal as well as statistical data with the city. 7 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Provides data regarding HUD rental assistance and vouchers.

Disseminates information regarding waiting lists for assistance countywide.

FY 22-23 ACTION PLAN 19
8 Agency/Group/Organization 211 ORANGE COUNTY
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
Provides data regarding regional homelessness, housing and service gaps for homelessness and the availability of countywide programs. Provides Point in Time information regarding homelessness specific to the City of Fountain Valley.

Identify any Agency Types not consulted and provide rationale for not consulting No agency or service was intentionally excluded from the open consultation process.

FY 22-23 ACTION PLAN 20
Other local/regional/state/federal planning efforts considered when preparing the Plan Other local/regional/state/federal
planning efforts considered when
preparing the Plan
Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care County of Orange
Orange County has developed its CoC system in a comprehensive and coordinated effort to provide a service delivery system for the at-risk and homeless population.

Multi-Jurisdictional Analysis of
Impediments to Fair Housing
OC HUD Grantee
Cities
Identified multi-jurisdictional fair housing impediments that were applicable to the City and which were incorporated into Consolidated Plan/Annual Plan goals.
5-Yr and 1-Yr. Public Housing Authority
(PHA) Plan
Orange County
Housing Authority
(OCHA)
OCHA provides information regarding the needs and availability of low-income renter households throughout the county. City confirms consistency with the OCHA annual PHLA.

City of Fountain Valley Housing Element City of Fountain Valley
Fountain Valley Housing Element identifies the needs, goals, projects and availability of housing for all income levels throughout the city.

City of Fountain Valle Housing and
Community Development Advisory Board
City of Fountain
Valley
Provides input on City programs and activities for low-income households funded with the CDBG allocation.

Table 3 – Other local / regional / federal planning efforts

FY 22-23 ACTION PLAN 21
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting In order to encourage citizen participation in the development of the Action Plan, a number of actions were taken to receive the greatest amount of participation as indicated in the table below. The City did not receive any public input other than from members of the Housing and Community Advisory Board.

Citizen Participation
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Newspaper Ad
Nontargeted/broad
community
October 7, 2021
Public Notice in the
Fountain Valley View
announcing the
availability of funding
under the City of
Fountain Valley's FY
2022-23 Public
Service Agency (PSA)
Grant program.

No comments were
received N/A N/A

FY 22-23 ACTION PLAN 22
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
2 Direct Mail
Non-profits and
local government
October 7, 2021,
grant applications
mailed or emailed to
all prior-year
program participants.

No comments were
received

N/A N/A
3 Internet Outreach
Nontargeted/broad
community
Notice posted
October 7, 2021 on
city website of the
availability of public
service agency
grants.

No comments were
received N/A N/A

FY 22-23 ACTION PLAN 23
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
4 Public Meeting
Nontargeted/broad
community
On December 1,
2021, the HCDAB
held a public meeting
to hear presentations
from public service
agencies applying for
grants and one
agency applying to
provide fair housing
services.

Recommendations
forwarded to City
Council within Action
Plan.

No comments were
received N/A N/A

FY 22-23 ACTION PLAN 24
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
5 Newspaper Ad
Nontargeted/broad
community
On February 17,
2022, public notice
published in the
Fountain Valley View
summarizing the FY
22-23 Action Plan
budget. The public
notice advised of a
30-day+ public
review of the Draft
Action Plan and
comment period,
from March 1 to
March 31, 2022. The
public notice advised
of a public hearing on
March 2, 2022 at the
HCDB meeting and a
public hearing on
May 3, 2022, at the
City Council meeting
to receive public
comments.

No comments were
received. N/A N/A

FY 22-23 ACTION PLAN 25
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
6 Internet Outreach
Nontargeted/broad
community
Draft Action Plan
posted on City
website for public
comments and
review on March 1,
2022.

No comments were
received N/A N/A
7 Public Hearing
Nontargeted/broad
community
On March 2, 2022, a
public hearing of the
HCDAB was held to
review a draft of the
FY 2022-23 Action
Plan.

No comments were
received N/A
8 Public Meeting
Nontargeted/broad
community
On April 6, 2022, a
public meeting of the
HCDAB was held to
review the draft FY
2022-23 Action Plan
and forward approval
recommendation to
City Council.

No comments were
received N/A

FY 22-23 ACTION PLAN 26
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
9 Public Hearing
Nontargeted/broad
community
On May 3, 2022, a
Public Hearing of the
City Council was
scheduled to approve
the FY 2022-23
Action Plan and
authorize submission
to HUD. At the May
3, 2022 meeting, the
Public Hearing was
continued to June 21,
2022 due to the late
CDBG allocation
announcement. The
Public Hearing on the
FY 22-23 Action Plan
was conducted on
June 21, 2022.

No comments were
received (TBD) N/A
Table 4 – Citizen Participation Outreach

FY 22-23 ACTION PLAN 27
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
On May 13, 2022, HUD released the annual CDBG allocations. The City will receive $319,886 in CDBG funding for FY 2022-23. $149,567 in unobligated carry forward, from prior year’s allocations, along with $30,547 in CARES Act Funding, will be combined for a total CDBG budget of $500,000 for FY 2022-23.

Other Federal funding sources, although not direct funding to the City, include Housing Choice Voucher Rental Assistance that is administered by the Orange County Housing Authority.

Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 2 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services $319,886 0 $149,567 $469,453 800,000
Annual allocation plus
unused CDBG funds from
previous years

FY 22-23 ACTION PLAN 28
Program Source of
Funds
Uses of Funds Expected Amount Available Year 2 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBGCV public -
federal
Housing
Public Services 0 0 $30,547 $30,000
Funds must be used to
prevent, prepare for and
respond to COVID-19.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Currently, the Federal funding the City receives from HUD is the sole source of funding for the City’s CDBG program.

The PSA grants provided to non-profit service providers allows them to leverage the City’s grant against funding received from other local, state, federal, and private resources to provide the much needed services to the community.

The City of Fountain Valley also benefits from the housing vouchers for low- income households provided by the Orange County Housing Authority (OCHA). OCHA continues to administer the Housing Choice Voucher Rental Assistance program for a majority of cities in Orange County including Fountain Valley. The vouchers are funded by the Federal government.

The City does not participate in the federally funded HOME program so there are not any matching requirements.

Prior to the 2012 dissolution of redevelopment agencies and funding by the State of California, the City was able to provide many more services to its residents by leveraging both sources of funding.

FY 22-23 ACTION PLAN 29
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City does not currently own any publicly owned land or property that can be used to address the needs of the Consolidated Plan. Fountain Valley is a nearly built out community with very little vacant land available for new developments. The Harbor Blvd South Island Specific Plan includes zoning that encourages the production of affordable housing units that, if built by affordable housing developers, would address some of the needs identified in the plan.

Discussion
Funding sources to implement the City’s Consolidated Plan are limited. Assuming the continued level of annual CDBG allocation, the City expects approximately $1.6 million of CDBG funds available for the five-year Consolidated Plan period of July 1, 2020, to June 30, 2025, to be used to achieve the goals within the Strategic Plan.

All CDBG-CV funding received from the CARES Act will be used to fund activities and projects that prevent, prepare for and respond to the coronavirus in the community.

FY 22-23 ACTION PLAN 30
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Administration 2020 2024 Affordable
Housing
Public Housing
Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Administration
City-Wide Administration
of Grant
Program
CDBG:
$58,977
Other: 1 Other
2 Neighborhood
Revitalization
2020 2024 Affordable
Housing
City-Wide Owner
Occupied Home
Improvement
CDBG:
$268,916
Homeowner Housing
Rehabilitated: 15 Household
Housing Unit
3 Code
Enforcement
2020 2024 Affordable
Housing
Code
Enforcement
CDBG/Code
Enforcement
Eligible
Exception
Criteria
Code
Enforcement
CDBG:
$81,078
Housing Code
Enforcement/Foreclosed
Property Care: 150 Household
Housing Unit

FY 22-23 ACTION PLAN 31
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
4 Services for
Frail/Elderly
2020 2024 Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Services for
Elderly/Frail
Elderly
City-Wide Services for
Elderly/Frail
Elderly
CDBG:
$13,942
Public service activities other
than Low/Moderate Income
Housing Benefit: 155 Persons
Assisted
5 Youth Services 2020 2024 Non-Homeless
Special Needs
Non-Housing
Community
Development
Youth services
City-Wide Youth Services CDBG:
$14,260
Public service activities other
than Low/Moderate Income
Housing Benefit: 95 Persons
Assisted
6 Services for
Disabled
2020 2024 Non-Homeless
Special Needs
Non-Housing
Community
Development
Disabled Adults
City-Wide Services for
Disabled
CDBG:
$5,980
Public service activities other
than Low/Moderate Income
Housing Benefit: 10 Persons
Assisted

FY 22-23 ACTION PLAN 32
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
7 Homeless
Services and
Housing
2020 2024 Affordable
Housing
Homeless
Non-Homeless
Special Needs
Non-Housing
Community
Development
Domestic
violence shelter
and services
City-Wide Homeless
Services and
Housing
$13,800 Public service activities other
than Low/Moderate Income
Housing Benefit: 55 Persons
Assisted
Homeless Person Overnight
Shelter: 55 Persons Assisted
8 Fair Housing
Services
2020 2024 Affordable
Housing
Fair Housing
Services
City-Wide Fair Housing
Services
$5,000 Other: 60 Other
9 Lead Based
Paint Hazard
Grant
2020 2024 Affordable
Housing
Lead Based Paint
Hazards Testing
City-Wide Lead Based
Paint Hazard
Grant
CDBG:
$7,500
Other: 15 Other
10 COVID-19
Response
2020 2024 COVID-19
Response
City-wide CDBG-CV
$30,547
CDBG-CV-Public service
activities other than
Low/Moderate Income Housing
Benefit: 50 Persons Assisted
Table 6 – Goals Summary

FY 22-23 ACTION PLAN 33
Goal Descriptions
1 Goal Name Administration
Goal
Description
CDBG program administration costs.
2 Goal Name Neighborhood Revitalization
Goal
Description
CDBG funds for owner occupied rehabilitation grants, loans and rebates. 3 Goal Name Code Enforcement
Goal
Description
Housing and Building code enforcement to preserve housing stock in eligible residential areas, to refer qualified homeowners to Housing Division to apply for grants, loans and rebates. 4 Goal Name Services for Frail/Elderly
Goal
Description
Services for seniors
5 Goal Name Youth Services
Goal
Description
Provide childcare scholarships and juvenile diversion services. 6 Goal Name Services for Disabled
Goal
Description
Provide case management, life skills, and job training to disable adults.

FY 22-23 ACTION PLAN 34
7 Goal Name Homeless Services and Housing
Goal
Description
Provide funding to domestic violence shelter for emergency shelter and supportive services. 8 Goal Name Fair Housing Services
Goal
Description
Contract with Fair Housing Council Orange County to provide fair housing services to residents per HUD requirement.
9 Goal Name Lead Based Paint Hazard Grant
Goal
Description
Lead-based paint hazard grant to test and abate any hazards found in the course of a City of Fountain Valley Rehabilitation Program project.
10 Goal Name COVID-19 Response
Goal
Description
Programs and activities to prevent, prepare for and/or respond to COVID-19.

FY 22-23 ACTION PLAN 35
Projects
AP-35 Projects – 91.220(d)
Introduction
The projects summarized below address the high priority needs of the Strategic Plan. The City of Fountain Valley will allocate CDBG funding to the projects below to address the needs of lowincome residents in Fountain Valley.

Projects
# Project Name
1 Neighborhood Revitalization
2 Administration of CDBG Program
3 Code Enforcement
4 Meals on Wheels Congregate Meals
5 Meals on Wheels Delivered
6 Boys and Girls Club of Huntington Valley
7 Waymakers
8 Elwyn
9 Interval House
10 Fair Housing
11 Lead Based Paint Hazard Grant
12 COVID-19 Response
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The biggest obstacle to meeting the needs of the underserved is the considerable lack of public and private resources to fully address the priorities identified in this Consolidated Plan. Funding for the development and preservation of affordable housing is greater than the revenues available even though the needs are growing. Housing costs are high in Orange County and very large subsidies are needed for affordable housing development, or homeownership assistance.

Because of the lack of available resources the City is not able to fund all community needs as identified during the citizen participation process.

FY 22-23 ACTION PLAN 36
AP-38 Project Summary
Project Summary Information
1 Project Name Neighborhood Revitalization
Target Area City-wide
Goals Supported Neighborhood Revitalization
Needs Addressed Owner Occupied Home Improvement
Funding CDBG: $268,916
Description Provide loans, grants and rebates to low income homeowners for rehabilitation. Must be owner occupied.

Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
15 qualifying low income homeowners a year
Location Description City-wide as qualified
Planned Activities Provide loans, grants and rebates to qualifying low-income households for minor rehabilitation of their single family or mobile home. Owner occupied only.
2 Project Name Administration of CDBG Program
Target Area City-Wide
Goals Supported Administration
Needs Addressed Administration of Grant Program

FY 22-23 ACTION PLAN 37
Funding CDBG: $58,977
Description CDBG program oversight and coordination
Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
Program admin
Location Description City-wide
Planned Activities CDBG program management
3 Project Name Code Enforcement
Target Area CDBG/Code Enforcement Eligible Exception Criteria Goals Supported Code Enforcement
Needs Addressed Code Enforcement
Funding CDBG: $81,078
Description Enforcement of zoning, housing and building codes in CDBG eligible areas Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
Approximately 150 code enforcement violations abated in CDBG eligible areas per year
Location Description CDBG eligible areas
Planned Activities Conduct code enforcement in CDBG eligible areas. Educate residents on City's Home Improvement Program.
4 Project Name Meals on Wheels Congregate Meals

FY 22-23 ACTION PLAN 38
Target Area City-wide
Goals Supported Services for Frail/Elderly
Needs Addressed Services for Elderly/Frail Elderly
Funding CDBG: $9,200
Description Provide meals to low income residents at Fountain Valley Senior Center at low or no cost
Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
125 low-income seniors per year.

Location Description Fountain Valley Senior Center, 17967 Bushard St., Fountain Valley, CA 92708 Planned Activities Provide lunch 2 times a week to low income individuals in a congregate setting at low or no-cost
5 Project Name Meals on Wheels Delivered
Target Area City-wide
Goals Supported Services for Frail/Elderly
Needs Addressed Services for Elderly/Frail Elderly
Funding CDBG: $4,742
Description Home delivered meals to frail elderly
Target Date 6/30/2023

FY 22-23 ACTION PLAN 39
Estimate the number and type of families that
will benefit from the proposed activities
30 frail and elderly low income senior a year
Location Description City-wide
Planned Activities Deliver meals to homebound frail and elderly persons and provide case management
6 Project Name Boys and Girls Club of Huntington Valley Target Area City-wide
Goals Supported Youth Services
Needs Addressed Youth Services
Funding CDBG: $6,900
Description Provide childcare scholarships to low income families Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
50 low income families a year
Location Description Boys and Girls Club of Huntington Valley, 16582 Brookhurst St., Fountain Valley, CA 92708
Planned Activities Provide childcare scholarships to low income families 7 Project Name Waymakers
Target Area City-wide
Goals Supported Youth Services

FY 22-23 ACTION PLAN 40
Needs Addressed Youth Services
Funding CDBG: $7,360
Description Provide juvenile diversion services to city residents Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
45 juveniles and their families will benefit from services Location Description Fountain Valley Police Department and other locations across the city Planned Activities Provide diversion services to juvenile residents in an effort to keep them out of the juvenile justice system.
8 Project Name Elwyn
Target Area City-wide
Goals Supported Services for Disabled
Needs Addressed Services for Disabled
Funding CDBG: $5,980
Description Provide case management, life skills and job training to disabled adults Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
10 low income disabled adults
Location Description Elwyn California located at 18325 Mt. Baldy Cir., Fountain Valley, CA 92708 Planned Activities Provide case management , life skills and job training to disabled adults

FY 22-23 ACTION PLAN 41
9 Project Name Interval House
Target Area City-wide
Goals Supported Homeless Services and Housing
Needs Addressed Homeless Services and Housing
Funding CDBG: $13,800
Description Emergency shelter and support services for victims of domestic violence.

Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
50 victims of domestic violence
Location Description Confidential
Planned Activities Emergency shelter and supportive services to victims of domestic violence. 10 Project Name Fair Housing
Target Area City-wide
Goals Supported Fair Housing Services
Needs Addressed Fair Housing Services
Funding CDBG: $5,000
Description Provide fair housing services to low income residents Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
70 low income households assisted per year

FY 22-23 ACTION PLAN 42
Location Description City wide
Planned Activities Provide fair housing services to low income households in the community 11 Project Name Lead Based Paint Hazard Grant
Target Area City-wide
Goals Supported Lead Based Paint Hazard Grant
Needs Addressed Lead Based Paint Hazard Grant
Funding CDBG: $7,500
Description Provide lead based paint hazard testing to participants of Home Improvement Program
Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
15 low income households that are participating in the home improvement program per year
Location Description City-wide
Planned Activities Tests for lead based paint and abate if necessary 12 Project Name COVID-19 Response
Target Area City-Wide
Goals Supported COVID Response
Needs Addressed COVID-19 Impact
Funding CDBG-CV $30,547
Description Programs and Activities to assist community with COVID-19 response.

FY 22-23 ACTION PLAN 43
Target Date 6/30/2023
Estimate the number and type of families that
will benefit from the proposed activities
50 senior and/or low-income clients
Location Description Citywide and Fountain Valley Senior Center, 17967 Bushard St., Fountain Valley, CA 92708. Many services provided via phone and internet.

Planned activities Year 3 of new Senior Social Services program providing information, referral services, food pantry and case management to seniors in response to COVID19.

COVID-19 Related Mortgage Assistance Grant (MAG) to assist low-income homeowners who are behind in their mortgage payments due to COVID-19.

FY 22-23 ACTION PLAN 44
AP-50 Geographic Distribution – 91.22AP-50 Geographic Distribution – 91.22 Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The majority of CDBG funded activities will be available citywide because they are available to low-income households regardless of where they live in the city. The exception to this is CDBG funded code enforcement activities that are restricted to the CDBG eligible areas of the city.

Resources are utilized to benefit areas with racial/ethnic minority concentrations as these areas do have some overlap with CDBG eligible areas. According to the latest American Community Survey 5-year estimates for 2019, Fountain Valley is approximately 54.2% white, 35.8% Asian and the remaining 10% consisting of mixed race individuals, Black, American Indian, and Native Hawaiians. Different races are scattered throughout the City with concentration of non-white households getting progressively greater in the farther northeast areas. Residents in Fountain Valley who identify as Hispanic comprise approximately 15.4% of the City’s population. The Hispanic population is also slightly more concentrated in the northeastern area of the city.

Geographic Distribution
Target Area Percentage of Funds
City-Wide 75
CDBG/Code Enforcement Eligible Exception Criteria 25

CDBG ELIGIBLE EXCEPTION CRITERIA
Table 8 - Geographic Distribution

FY 22-23 ACTION PLAN 45
Rationale for the priorities for allocating investments geographically The City has limited resources and all program funding comes from the annual CDBG allocation.

The City strives to allocate funds to help persons and households for which the greatest need exists, and where services relate most closely to other activities affecting neighborhood revitalization and quality of life. To that end, the City has determined that allocating funding to public service agencies and the neighborhood improvement program, which provide services specifically to low income households throughout the city, and funding code enforcement in CDBG eligible areas to maintain the quality of neighborhoods, are the most effective use of CDBG funding for the residents of Fountain Valley.

Discussion
As discussed above, the City's CDBG program allocates funds to provide activities that promote a better quality of life, that provide safe and secure living environments, and preserve neighborhoods and instill pride of ownership throughout the community.

FY 22-23 ACTION PLAN 46
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The proposed activities for FY 2020-21 will allocate CDBG funds to meet the housing needs of the following households.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 0
Special-Needs 0
Total 0
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported
Through
Rental Assistance 440
The Production of New Units 0
Rehab of Existing Units 15
Acquisition of Existing Units 0
Total 455
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
Due to the limited resources, the City of Fountain Valley focuses on the Owner-Occupied Home Improvement Program that offers loans, grants, and rebates to qualifying households for minor rehabilitation that allow low- income households stay in their homes for a longer period of time. Older homeowners with reduced income are often better off aging in place and the program can assist them in making the necessary improvements that allows them to do so.

Rental assistance for city residents is provided by the Housing Voucher program administered by the Orange County Housing Authority.

FY 22-23 ACTION PLAN 47
The City also funds Interval House Domestic Violence Shelter that assists homeless victims of domestic violence with emergency shelter and supportive services. This assistance does not meet the HUD definition of Homeless in Table 7 however does assist homeless domestic violence victims in the community.

FY 22-23 ACTION PLAN 48
AP-60 Public Housing – 91.220(h)
Introduction
There are no Public Housing developments within the City of Fountain Valley. The Orange County Housing Authority (OCHA), a division of OC Community Services, administers rental assistance programs throughout Orange County, with the exception of Anaheim, Garden Grove, and Santa Ana, who have their own assistance programs. Low-income households are able to use the vouchers to towards their monthly rent in order to make units affordable to their financial situation. As of April 11, 2022, Fountain Valley has 446 rental assistance voucher recipients in the city.

Actions planned during the next year to address the needs to public housing There are no actions planned during the next year to address the needs to public housing.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
There is no Public Housing within the City of Fountain Valley.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
There is no Public Housing within the City of Fountain Valley.

Discussion
The City supports the County’s efforts to increase the supply and quality of affordable housing countywide.

FY 22-23 ACTION PLAN 49
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Because the City does not have a large population of homeless individuals, the City’s homeless strategy using CDBG funds are to provide services that prevent future homelessness. The programs offered benefit low-income households in an effort to ensure they are able to stay in their current housing and/or to provide social services that they may not otherwise be able to afford.

The City has recently contracted with City Net to provide street outreach and engagement services to unsheltered persons experiencing homeless in the city with the goal of providing homeless housing navigation and services. The service is funded outside of CDBG.

The City also participates and supports the Santa Ana/Anaheim/Orange County Continuum of Care (COC CA 602) that coordinates a vast network of homeless shelters and support services throughout the county.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The unsheltered homeless population in the City is limited and largely transient; the City does not have a specific gathering spot or permanent encampment for homeless individuals. The common spots for transient homeless in the City are along the Santa Ana River and Mile Square Park that are primarily under County jurisdiction.

Goal: Continue to provide homeless persons information and referrals to nearby assistance and services provided by the various agencies including the Orange County 2-1-1 program.

Goal: Continue to fund a Homeless Liaison Police Officer from the General Fund that is dedicated to homeless issues in the city and educates homeless individuals regarding available programs.

Addressing the emergency shelter and transitional housing needs of homeless persons Fountain Valley has one emergency shelter with a 14-person capacity specifically for homeless families. While not funded by the city, it is a part of the CoC that the City supports. There

FY 22-23 ACTION PLAN 50
remains a shortage of year-round emergency beds across the County. Fountain Valley supports the efforts of the County of Orange and the CoC to develop more emergency, transitional and supportive housing countywide.

City Net will provide counseling to unsheltered homeless with the goal of getting them into emergency or transitionally housing.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Fountain Valley provides CDBG funds to a local shelter that provides emergency shelters and transitional housing for domestic violence victims. The shelter also provides educational classes such as preparing resumes, job interviews, career enhancement, and money management.

Medical and legal services are also provided for their clients. These services are designed to provide a foundation for their clients to learn to be more self-sufficient and financially stable.

The City will continue to pursue funding opportunities as they present themselves to assist homeless services providers assist low- income renters at risk of homelessness with rental assistance, case management, workforce development.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The cost of housing is high in Fountain Valley therefore it very difficult for low- income persons to maintain their housing without some type of assistance. Programs such as Housing Choice Vouchers (Section 8) and VASH vouchers for veterans are a great help but are in such limited supply that persons just being released from public institutions, or systems of care, would have great difficulty in obtaining housing on their own. The Orange County 2-1-1 program allows individuals to access a large variety of assistance with a one stop approach and staff make referrals to the program as needed.

FY 22-23 ACTION PLAN 51
2-1-1 Orange County has a fully developed Community Corrections Program to assist people recently exiting from a corrections facility. The program includes a Proposition 47 Re-Entry Center, Stepping-Up Initiative program and Collaborative Courts. All of these programs will assist people discharged from the corrections system.

The County uses SHP, ESG, CDBG, EHAP, and OCHA/HSS funds to support the Continuum of Care system by providing emergency shelters and supportive services. In collaboration with the entire CoC, the County of Orange Health Care Agency has also implemented Proposition 63 Full Service Partnership Programs. These programs have created outreach options for homeless persons to access services starting at the street outreach level and continuing until the individual and/or family is well established in permanent supportive housing. The CoC and all participating cities work together to meet the housing needs of Orange County residents.

Discussion
The City of Fountain Valley continues use CDBG funds to support Neighborhood Improvement programs and social service providers in an effort to address homelessness and prevent future homelessness in the community.

In November 2021, the City approved the COVID-19 Related Mortgage Assistance Grant (MAG) to assist low-income homeowners who are behind in their mortgage payments due to COVID19. The MAG remains available for qualified homeowners in the city as another tool to assist them retain their homes and avoid homelessness.

FY 22-23 ACTION PLAN 52
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The main barrier to affordable housing in Fountain Valley is the lack of developers interested in constructing affordable housing projects, primarily due to the high cost of land in the city and the lack of vacant or underutilized land to develop.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City believes its land use controls, fees and permitting processes do not present a constraint to residential development due to the fact that the Fountain Valley General Plan and Municipal Ordinance provide for a range of housing types and densities. The City’s fees are low when compared to surrounding jurisdictions.

The City is in the process of getting approval for the City’s 2021-2029 Housing Element and anticipate final approval later in fall 2022. The City’s 2014-21 Housing Element has a goal of conserving and supporting affordable housing opportunities in the city and has outlined the following policies to further this goal:
• Promote and expand affordable home ownership opportunities for lower and moderate-income households in the City.
• Pursue available housing funds provided by Federal, State, private and/or local sources to preserve affordable housing.
• Continue to support innovative public, private and non-profit housing development organizations’ efforts in the provision of affordable housing, particularly for special needs groups.
• Address the long and short-term needs of those who are homeless through continued support of local private and non-profit groups that provide shelter and services. • Conserve the existing stock of rental housing. Limit the proportion of multifamily housing units permitted to convert to owner-occupied status. • Provide regulatory incentives to encourage the development of affordable housing. The City is continues to search for property that would be financially feasible to accommodate the construction of affordable housing.

FY 22-23 ACTION PLAN 53
Discussion:

A variety of factors add to the cost of housing in Fountain Valley and constrains the development of affordable housing units. The city provides zoning incentives to affordable housing developers to build affordable housing projects in the city and actively looks for additional funding to promote affordable housing. The City is in the process of updating its Housing Element and General Plan in compliance with State laws. ADUs represent a viable option as they avoid the burden of land costs and are often provided at zero rent or a reduced rent. Through the Housing Element update, the City will explore options to encourage the production of ADUs.

FY 22-23 ACTION PLAN 54
AP-85 Other Actions – 91.220(k)
Introduction:

The City will implement programs that address the issues listed below.

Actions planned to address obstacles to meeting underserved needs One of the main obstacles to meeting underserved needs is inadequate funding. Many public service agencies struggle to obtain federal and state government funding as well as funding from private foundations to provide much needed services. The City will continue to allocate public service agency funding for activities that serve the needs of the underserved such as services for the elderly, disabled adult services, and services that assist low income households.

The home improvement program also serves many elderly people who qualify for program assistance. City staff refers any residents requesting information regarding rental assistance to OCHA who manages the Housing Voucher program for the majority of the county or 2-1-1 Orange County for additional services. Residents are also directed to Fair Housing Council of Orange County, whom the City contracts for fair housing services, to address questions or concerns of landlords and tenants in the community.

Actions planned to foster and maintain affordable housing The City of Fountain Valley utilizes its Neighborhood Revitalization Program to offer low interest loans, grants and rebates to income eligible homeowners to allow them to make necessary repairs to their homes to provide a safe a decent living environment at an affordable cost. The majority of the applicants are seniors; programs such as these allow seniors to stay in their home, which is usually the most affordable housing option to them. The City is very committed to protecting housing that is affordable to the current resident, and in fact, 54% of the current year’s CDBG budget is dedicated to making funds available for income eligible homeowners.

The City also supports the affordable efforts of the County of Orange as a member of the Cities Advisory Committee. The committee reviews and gives input to the administration of the housing voucher programs such as Section 8 and VASH programs. During times of enrollment in the voucher program, the City assists in distributing applications and providing guidance. The OCHA had anticipated opening the waiting list at the end of 2020 however, the coronavirus postponed that. They are now looking towards 2023 for the possible re-opening of the waiting list. As of January 2022, there were still 8,000 people on the current OCHA waiting list.

FY 22-23 ACTION PLAN 55
The City also provides access to a list of countywide affordable housing options to prospective low-income tenants inquiring at City Hall.

Actions planned to reduce lead-based paint hazards
The City of Fountain Valley has established a Lead Based Paint Hazard Grant Program to test, evaluate and mitigate any lead based paint hazards found in the course of a home rehabilitation project. Each home that receives HUD funds for rehabilitation is tested for the presence of lead based paint hazards. Any necessary remediation work is covered by a Lead Based Paint Hazard Grant funded by CDBG funds.

The City promotes lead based paint training updates for local contractors by distributing flyers via the City Building Department as they become available from various government entities.

Actions planned to reduce the number of poverty-level families According to the 2019 American Community Survey 5-Year Estimates, 5.5% of the City’s households are living at or below the poverty level. The City has identified several activities and services that can be implemented to combat poverty and to prevent possible homelessness.

Specific examples include the following activities:
• Provide home improvement programs that allow low-income households to do necessary repairs on their owner occupied properties to allow them to stay in their homes longer.
• Support rental assistance programs provided by the Orange County Housing Authority for very low-income renters.
• Fund emergency shelter supportive services for domestic violence victims to prevent homelessness. Supportive services, counseling and rental assistance are also provided. • Support public services programs to improve the quality of life seniors, youth, the disabled, and other populations that may be severely impacted by the cost of living in the region.

Actions planned to develop institutional structure
The City has made an effort to develop an institutional structure that will help identify and access resources to improve the community and assist those most in need. The lead agency to administer the CDBG program is the Housing Division of the Planning and Building Department.

The Division will prepare the Consolidated Plan, Citizen Participation Plan, and Analysis of

FY 22-23 ACTION PLAN 56
Impediments to Fair Housing Choice every five years, prepare the Annual Action Plan and CAPER, and complete all additional reports required by HUD. The City will ensure the public is notified of all opportunities to provide input and are given ample opportunity to engage in the process as established by the City’s Citizen Participation Plan.

The City will continue to work with non-profit agencies in the delivery of services and programs for the benefit of low and moderate-income residents, and manage and promote the Home Improvement Program that provides funding to low income homeowners for repair and rehabilitation of their homes.

The City manages all the activities to ensure that the CDBG funding is allocated in a manner that best assists low-income households in the community.

Actions planned to enhance coordination between public and private housing and social service agencies
The City of Fountain Valley does not have any public housing; however, the city supports OCHA who provides rental assistance for low-income households in the community. The City is a member of the Orange County Cities Advisory Committee that reviews the OCHA’s 5-year and 1-year PHA to ensure that it is compatible with the City of Fountain Valley Consolidated Plan.

Additionally, the City reviews PSA grant applications each year to ensure the goals of the PSA’s are compatible with goals of the Consolidated Plan. The City continues to attend meetings with other Orange County grantees to discuss regional efforts and goals that benefit low-income households across the county.

Discussion:

The City allocates funding in the most cost-effective manner to assist low-income households in the community.

FY 22-23 ACTION PLAN 57
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. $0

3. The amount of surplus funds from urban renewal settlements $0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan $0

5. The amount of income from float-funded activities $0 Total Program Income: $0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. (2020,2021,2022) 70.00%
It is estimated that more than 70% of CDBG funds will be used to benefit persons of low and moderate income. The time frame to determine the minimum overall benefit to determine that 70% of CDBG funds are used to benefit low and moderate income are program years 2020, 2021 and 2022.

FY 22-23 ACTION PLAN 58

ATTACHMENTS
Citizen Participation Summary
Map of CDBG Code Enforcement Eligible Low Income Areas
Proof of Public Notice

FY 22-23 ACTION PLAN 59
FY 2022-23 CITIZEN PARTICIPATION SUMMARY
In order to encourage citizen participation in the development of the City's FY 22-23 Action Plan, a number of actions were taken to receive the greatest amount of participation:

On September 2, 2021, a public meeting of the Housing and Community Development Advisory Board (HCDAB) was held to review the Annual Action Plan process and timeline.

On October 7, 2021, Housing and Community Development (HCD) staff published a Public Notice in the Fountain Valley View announcing the availability of funding under the City of Fountain Valley’s FY 22-23 Public Service Agency (PSA) Grant program. Correspondence further detailing the availability of funding were sent to all prior-year program applicants, participants from the past five years, and posted on the City’s website.

On November 3, 2021, the application period to submit applications for PSA Grant funding closed. Seven (7) program applications were received from six (6) nonprofit organizations that provide services for low-income Fountain Valley residents.

On December 1, 2021, a public meeting of the HCDAB was held to receive presentations by six (6) agencies applying for PSA grants and one (1) fair housing services provider applying for funding to provide fair housing services to city residents. The board considered applications and made funding recommendations for the grant. Recommendations will be forwarded within the Action Plan to the City Council for review and approval.

On February 17, 2022, a Public Notice was published in the Fountain Valley View announcing the commencement of the minimum 30-day review comment period beginning March 1, 2022 and concluding March 31, 2022. The Action Plan was available for review on the City website, or could be requested by email or phone. It also advised of a public hearing at the March 2, 2022 HCDAB meeting to receive comments on the FY 22-23 Draft Action Plan, and a Public Hearing of the Fountain Valley City Council scheduled May 3, 2022, to receive comments, review and approve the FY 22-23 Action Plan.

On March 2, 2022, HCDAB held a public hearing to review the draft FY 22-23 Action Plan and to receive public input. No comments were received.

On April 6, 2022, a public meeting of the HCDAB was held to review the draft FY 22-23 Action Plan to make recommendations to City Council. The HCDAB voted unanimously to forward the

FY 22-23 ACTION PLAN 60
FY 22-23 Action Plan to City Council for review and approval. No public comments were received.

On May 3, 2022, the City Council continued the public hearing until June 21, 2022 due to the delay in the announcement of the FY 22-23 CDBG allocation.

On June 21, 2022, the City Council held a public hearing in the City Council Chambers to review the FY 22-23 Action Plan that includes the FY 22-23 CDBG budget. The Fountain Valley City Council unanimously approved the Action Plan and requested the City Manager to execute all necessary documents and forward the plan to HUD. No public comments were received. (TBD)

FY 22-23 ACTION PLAN 61

FY 22-23 ACTION PLAN 62
Public Notices

Signature
Legal No. 0011491341
Fountain Valley View
1771 S. Lewis Street
Anaheim, CA 92805
714-796-2209
I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the Fountain Valley View, a
newspaper that has been adjudged to be a newspaper of
general circulation by the Superior Court of the County of Orange, State of California, on July 1, 1998, Case No.

A-185905 in and for the City of Fountain Valley, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in
each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
10/07/2021
I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct:

Executed at Anaheim, Orange County, California, on
Date: October 07, 2021.

PROOF OF PUBLICATION
FILE NO. PN of Appl Availability FY 2022-23
5191814

FOUNTAIN VALLEY, CITY OF
10200 SLATER AVE

PLANNING DEPT
FOUNTAIN VALLEY, CA 92708-4736

AFFIDAVIT OF PUBLICATION

STATE OF CALIFORNIA,
SS.

County of Orange }
r.LP1-12/15/16 Page 276 1

PUBLIC NOTICE

CITY OF FOUNTAIN VALLEY
FY 2022-23 PUBLIC SERVICE AGENCY GRANT PROGRAM
NOTICE IS HEREBY GIVEN that effective October 7, 2021, the City of Fountain Valley Housing and Community Development Division will begin accepting applications for grant funding under its FY 2022-23 Public Service Agency (PSA) Grant Program funded by Community Development Block Grant (CDBG) funds. It is estimated that $52,000 in funding will be available.

WHO SHOULD APPLY?
Agencies providing services to residents of the City of Fountain Valley relating to housing, basic needs, education, crime prevention, childcare, health issues, employment/job training, and/or general welfare.

PLEASE NOTE - At least 51% of the persons/households assisted under the proposed program/project must qualify as low-income persons/households as defined by the U.S. Department of Housing and Urban Development (HUD). The Income Eligibility Table be- and Urban Development (HUD). The Income Eligibility Table below outlines the maximum household income levels by household size used to define a low-income household.

Applications will be available beginning Thursday, October 7, 2021 on the City website at www.fountainvalley.org or you may email Ashlyn.Newm [email protected] to obtain an application. Applications are submitted as proposals only and the City cannot guarantee the funding of any application submitted. The City of Fountain Valley reserves the right to hold, deny, or postpone funding of any, and all, applications for any reason.

THE DEADLINE FOR APPLICATION SUBMITTAL IS WEDNES- THE DEADLINE FOR APPLICATION SUBMITTAL IS WEDNESDAY, NOVEMBER 3, 2021, AT 5:00 P.M. POSTMARKS WILL NOT BE ACCEPTED. FOR ADDITIONAL INFORMATION, PLEASE
CONTACT THE EMAIL ABOVE OR (714) 593-4428.

Publish Thursday, October 7, 2021 Fountain Valley View 11491341

Signature
Legal No. 0011517595
Fountain Valley View
1771 S. Lewis Street
Anaheim, CA 92805
714-796-2209
I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the Fountain Valley View, a
newspaper that has been adjudged to be a newspaper of
general circulation by the Superior Court of the County of Orange, State of California, on July 1, 1998, Case No.

A-185905 in and for the City of Fountain Valley, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in
each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
02/17/2022
I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct:

Executed at Anaheim, Orange County, California, on
Date: March 17, 2022.

PROOF OF PUBLICATION
FILE NO. Public Notice 2022-23 Action Plan
5191814

FOUNTAIN VALLEY, CITY OF
10200 SLATER AVE

PLANNING DEPT
FOUNTAIN VALLEY, CA 92708-4736

AFFIDAVIT OF PUBLICATION

STATE OF CALIFORNIA,
SS.

County of Orange }
r.LP1-12/15/16 Page 278 1
r.LP1-12/15/16 Page 279 2

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 21, 2022
Members of the City Council
SUBJECT: Resolution Adopting the FY 2022-23 Annual Operating Budget & Ten-Year Capital Improvement Program (Adoption of the ten-year Capital Improvement Plan consistent with Measure M2 Eligibility process), and Financial, Budget & Debt Policies and; Resolution Adopting the FY 2022-23 GANN Appropriations Limit and; Resolution establishing the FY 2022-23 Annual Schedule of Property Rental and Administrative Service Charges to the Municipal Water & Sewer Utility Funds
EXECUTIVE SUMMARY:

The City Manager must present a balanced budget for consideration by the City Council prior to the beginning of the fiscal year, with a balanced budget defined as operating revenues equal to or greater than operating expenditures, including any debt service obligations. The Proposed FY 2022/23 Annual Operating Budget and Capital Improvement Program is balanced, and supports or enhances the needs of departments citywide, providing the resources necessary to continue to provide high quality public service, maintain and enhance the City’s infrastructure and continue to pay down unfunded actuarial liabilities in accordance with the Measure HH Responsible Spending Plan.

DISCUSSION:

On May 17, 2022, the City Council held a budget workshop to review and discuss the Proposed FY 2022-23 Annual Operating Budget and Capital Improvement Program. The purpose of the workshop was to allow for questions on both specific programs and capital projects within the budget as well as a more general overview of the City’s finances. The budget workshop was followed by a Measure HH Oversight Committee meeting on June 2, 2022 at which the Measure HH Oversight Committee reviewed the proposed use of Measure HH funds within the FY 2022- 23 proposed budget, and that such expenditures within the proposed budget are consistent with the intent of the Measure HH ballot measure and Responsible Spending Pledge.

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

The budget is continually reviewed for adherence to the City’s long-term 20-year long range financial forecasting plan, preservation of the City’s financial integrity, and proper implementation of the City’s Strategic Plan initiatives.

Finance staff has reviewed and analyzed revenue and cost estimates based on updated information, and the FY 2022-23 proposed budget includes proposed changes resulting from updated revenue and expenditure projections, in order to enhance the City’s performance in providing public benefits in accordance with the City’s Strategic Plan.

The proposed FY 2022-23 looks to maintain current service levels and expand on the City’s strategic plan goals while enabling the City to continue to help the community return to normal post-pandemic by continuing to enhance the community’s quality of life and safety, while maintaining a conservative outlook for revenue and expenditure growth based on changing economic factors. Citywide, the total budget is $126.1 million, an increase of 9.9% over the adopted FY 2022-23 budget. These expenses are supported by $112.8 million in revenue, an increase of 1.9% percent from the current fiscal year (excluding ARPA funding of $7.9 million), and use of one-time capital improvement reserve funding. These total figures reflect revenues and expenses for all funds citywide including the General Fund, Enterprise Funds, Internal Service Funds, Debt Service Funds and Special Revenue Funds. The Proposed Budget also includes Internal Service Funds whose totals are not included in the $126.1 million.

Enterprise Funds are proprietary funds supported by user fees and charges. The rates charged to customers for these services cover the costs of operation, maintenance and capital and infrastructure improvements. The City maintains several Enterprise Funds including Water, Sewer, and Solid Waste. Expenditures for FY 2022-23 for these funds are proposed to be $28.8 million for both operating and capital expenses.

Internal Service Funds, including information technology, government buildings, capital equipment, employee benefits, self-insurance and fleet services account for activities provided to one City department by another City department. The Proposed FY 2022-23 budget includes $37.5 million in funding for these funds.

Debt Service Funds are used to account for debt service expenditures on general long-term debt.

The City currently has four outstanding debt obligations; the 2014 Revenue Bonds, 2016A Lease Revenue Bonds, 2015A Pension Obligation Bonds and the Clean Energy Renewable Bonds (CREBS). Payments for citywide debt is $3.4 million for FY 2022-23.

Special Revenue Funds are funds legally restricted to a specific purpose. Examples of Special Revenue Funds include the Gas Tax Fund and the Community Development Block Grant (CDBG). In total, expenses in Special Revenue Funds are proposed to be $15.8 million for FY 2022-23, including capital improvement projects.

The General Fund

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

The General Fund is the primary operating fund of the City and supports fundamental services including Police, Fire, Community Development, Community Services and general administration. Revenue for this fund comes from general taxes such as property tax, sales tax, Measure HH, transient occupancy taxes as well as a variety of user and permit fees and other smaller sources. The Proposed Budget for FY 2022-23 for the General Fund is $70.1 million in expenses and $73.3 million in revenue, with an additional $10.3 million for one-time capital projects.

General Fund Expenditure Highlights
General Fund expenditures are broken into two distinct types - operating and capital. Operating expenses are those required to support the day-to-day operations of the City including personnel expenses, professional services, maintenance expenses and the purchase of needed equipment and are supported by revenue generated in the fiscal year the expenses occur.

Capital expenses are one-time expenditures that are funded through the capital reserves, where funds have been set aside from savings over multiple fiscal years and/or one-time funding sources such as reimbursements and development agreements.

The proposed FY 2022-23 General Fund Budget includes $70.1 million in expenses and $10.3 million in capital expenditures for the General Fund. In addition, $3.0 million in additional payments to CalPERS to pay down the City’s unfunded actuarial liability (UAL) is included in the Proposed Budget in accordance with the Measure HH Responsible Spending Pledge.

The proposed FY 2022-23 General Fund budget includes $52.2 million in operating expenses across all departments.

Proposed General Fund budgets for the respective departments are listed below:
*Excludes capital outlay, grants, debt service, and CIP projects.

Major increases to General Fund department expenditures include the full eighteen-month incremental cost of the compensation study among all bargaining units, existing MOU increases

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

including a 3% cost of living adjustment among all units in July of 2022, and merit increases.

Department internal service charges are included to fully fund the City’s new ERP system, selfinsurance, fleet maintenance and replacement, along with all government building maintenance and repair. Operating increases for the departments are as follows:
 Administration, a net increase of $57,177:
o $111,444 increase relating to personnel salary and benefit increases, including pension costs.
o $65,253 increase relating to increased departmental internal service charges. o Operating expenses have decreased $119,520 over the current year revised budget due to reductions for one-time budget transfers from salary savings, along with increases for legal services and professional service contracts, public relations, and election costs.
 Finance, an increase of $715,758:
o Increase of $502,940 relating to personnel salary and benefit increases, including pension costs. The fiscal year 2022-23 proposed budget includes a proposed new Management Analyst position to add critical analytical support in the areas of Accounting, Purchasing, Budgeting, and compliance with regulatory financial reporting requirements.
o $72,013 increase relating to increased departmental internal service charges. o $140,805 relating to operating expenditure increases relating to fully funding the pension and OPEB actuarial contract as approved by Council during fiscal year 2021-22, along with additional temporary staffing to assist the department for the upcoming implementation of the City’s ERP human capital management and utility billing modules. In addition, the Purchasing division moved from a separate internal service fund back to the General Fund for fiscal year 2022-23 to reflect the decentralization of the purchasing and stores functions and the Management Analysts’ role as overall Purchasing Administrator in the Finance department.  Fire, increase of $955,376:
o Increase of $594,589 relating to personnel salary and benefit increases, including the change from flat rate specialty pays to percentage of base pay, and new specialty pays, including longevity, to further the Council’s strategic goal of attracting and retaining quality staff to bring City employees to fifty percent of market over the next three fiscal years.
o $322,693 increase relating to increased departmental internal service charges. o $38,094 in increased operating charges relating to MetroNet membership increases and CPI on the CARE Ambulance contract.
 Human Resources, increase of $414,312:
o $308,053 relating to personnel salary and benefit increases including pension, including the full year cost of the additional Human Resources Analyst position approved during the 2021-22 mid-year Council meeting, as well as proposed reclasses presented at the 2022-23 proposed budget workshop, including the Principal HR Analyst to HR Manager, HR/Safety Specialist to Senior HR Analyst, and HR Technician from .75 to 1.0 FTE.
o $23,613 increase relating to increased departmental internal service charges, which include sufficient funding for the upcoming ERP implementation of human capital management payroll/HR modules.

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

o Operating expenses of $82,646 increased due to increase in contract service costs, including legal and professional services contracts including labor relations, Employee ACA and Workers Compensation compliance, benefits administration, and labor law compliance.
 Community Development, a net increase of $268,673:
o $410,103 relating to personnel salary and benefit increases, including pension. The fiscal year 2022-23 proposed budget includes a proposed new Code Enforcement Officer to add weekend inspections for code enforcement to enforce all Fountain Valley Municipal Codes and State of California codes.
o $46,273 increase relating to increased departmental internal service charges, including building and code enforcement vehicle maintenance. o Operating expenses decreased $187,703 due to the reduction of contract services for planning and permit checking and inspection services, including services paid for functions now performed by the in-house building staff.  Police, increase of $2,503,871:
o $1,458,845 relating to personnel salary and benefit increases, including pension.

Current year revised budget may be insufficient to fund all current negotiated increases, however, salary savings should cover existing retro payment and existing six month increases for enhanced/new benefits. In addition, the fiscal year 2022-23 budget includes the change from flat rate specialty pays to percentage of base pay, and new specialty pays, including longevity, to further the Council’s strategic goal of attracting and retaining quality staff to bring City employees to fifty percent of market over the next three fiscal years.
o $571,177 increase relating to increased departmental internal service charges including brazos devices, and S.W.A.T. vests.
o Operating expenses increased $473,849 primarily due to the full year contract funding of the City’s homeless outreach contract.
 Public Works, increase of $1,157,795:
o $491,476 relating to personnel salary and benefit increases, including pension. The proposed budget also includes two new proposed positions of Assistant Engineer and Management Aide, which is funded eighty percent by the Enterprise funds.

Other proposed reclasses to positions include a Management Analyst to Senior Management Analyst, a Water System Operator to Water Foreman, and a Foreman to Landscape Inspector.
o $492,398 increase relating to increased departmental internal service charges including the scheduled roof replacement at the City yard. o Operating increases of $173,921 relate to increases on existing professional service contracts including median and right-of-way landscape maintenance, parks and civic center facility landscape maintenance, inflationary increases relating to street and road supplies, electricity for streetlights (SCE), sports park landscape maintenance and turf rehab for new special events, water utility increases for the Sports Park, and gasoline/diesel for the Public Works fleet vehicles. Other one-time increases include a tree inventory conducted once every five years.  Recreation and Community Services, increase of $356,775:
o $64,389 relating to personnel salary and benefit increases, including pension. o $279,231 increase relating to increased departmental internal service charges including replacement of Recreation and Senior Center equipment, including furnishings, basketball hoops, turf tank, and exercise equipment.

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

o $13,155 increase in other operating costs include public information to promote new City events, Senior events, and other inflationary costs increases to supplies, etc.

General Fund Revenue Highlights
Property Tax revenue in FY 2022-23 is projected to be $22,983,888, an increase of $1,065,288 over FY 2021-22. Increases in property tax are due to a combination of property turnover and resulting reassessments and the two percent per year inflation factor for property assessments allowable under Proposition 13.

Sales Tax, including Measure HH is projected to increase by approximately 4% in FY 2022-23 from the revised FY 2021-22 budget and totals approximately $31.7 million. Sales tax remained stable in FY 2022-23, attributable to a combination of sales derived from new businesses within the community, inflation and the impact of the South Dakota vs. Wayfair case. The Wayfair case was decided by the Supreme Court in 2018, and was implemented in California in April 2019.

The case, and subsequent state legislation, requires online retail sellers to collect and remit sales tax on taxable sales shipped into the state. Revenue from the tax is then allocated to a countywide pool based on the point of delivery of the product purchased. As online shopping has surged in popularity both before and during the pandemic, the City’s portion of the countywide pool has increased 14.5% year over year as of the quarter ending December 2021.

Transient occupancy tax (TOT), otherwise known as “the bed tax” is tax paid by visitors staying overnight in one of our local hotels. Revenue from TOT was lower in previous fiscal years due to the pandemic, however not as low as originally feared given the many pandemic related travel restrictions. As travel restrictions continue to ease and as COVID variants remain contained, the proposed budget assumes $1.4 million in TOT revenue, 12% higher than the FY 2021-22 adopted budget.

General Fund Functional Revenues are those revenues derived from services and activities provided by the various departments such as plan checking, facility rentals, business license fees, EMS response fees and alarm permits. Functional revenues are projected to total $8,007,487 in FY 2022-23, an increase of $64 thousand from FY 2022-23.

Significant Changes
The proposed FY 2022-23 budget further enhances the City’s strategic plan goals of achieving fiscal stability in accordance with the 20-year financial forecasting plan while targeting surplus resources to key strategic planning initiatives. The current year proposed budget continues to fully fund all City operations, including the full eighteen-month impact of the recent classification and compensation study for all City bargaining units, including Police and Fire, furthering the Council’s strategic goal of attracting and retaining quality staff. The budget also includes contract services for the City’s homeless outreach initiatives, including contracting with a professional services contractor for community outreach and case management services, which will provide assistance with programs such as emergency housing, mental and health care, benefits counseling and a variety of other community based programs and services.

As previously mentioned, the proposed budget includes $3.0 million in additional payments to CalPERS to help pay down the City’s unfunded actuarial liability (UAL). The City’s current unfunded actuarial liability is approximately $69.1 million, exclusive of assets held in the City’s 115 pension trust. The City is committed to paying down this debt as quickly as possible by

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

making payments in addition to the normal and amortized UAL costs mandated by CalPERS.

Doing so will save a significant amount in interest over the 20-year amortization period and complies with one of the primary goals of Measure HH to “pay down unfunded liabilities”.

Staffing
The proposed fiscal year 2022-23 budget includes 238.75 authorized full-time equivalent (FTE) positions, reflecting a net increase of increase of four (4.25) positions from the prior fiscal year.

Half of the new positions are to be funded by General Fund, whereas the remaining two positions would be funded 75% from the Enterprise Funds.

The proposed Code Enforcement Officer for the Community Development department would add weekend inspections for code enforcement to enforce all Fountain Valley Municipal Codes and State of California codes.

The proposed Management Analyst for the Finance Department would add critical analytical support in the areas of Accounting, Purchasing, Budgeting, and compliance with regulatory financial reporting requirements. This position would also assist the City in implementing the full roll out the City’s robust new ERP system, including implementing the new Human Capital Management and Utility Billing modules.

The proposed budget also includes an additional Assistant Engineer and Management Aide funded twenty percent from the General Fund. These new positions will assist the Public Works department with various duties, including managing the City’s expanding capital improvement project program, increased plan check and permit work, regulatory reporting requirements, contract management, invoice processing, and the City’s water conservation effort.

Other proposed reclasses would include changes to HR classifications to handle higher level duties relating to worker’s compensation, FMLA, Benefits Administration, Employee Relations, Labor Law Compliance, and Recruitment and Selection oversight.

Capital Improvement Program
The City’s Capital Improvement Program (CIP) identifies major public improvements to the City’s infrastructure over the next ten years and includes new projects, upgrades to existing facilities as well as rehabilitation of streets and roadways. Funding for projects scheduled for FY 2022-23 are included in the proposed budget, with the majority of the scheduled projects funded by the General Fund Capital Reserve, the Water and Sewer Funds, Gas Tax, Measure M2, grants and other reimbursements. The proposed CIP for FY 2022-23 includes 47 projects for a combined total of $24.5 million, and is consistent with the seven year CIP program submitted to the Orange County Transportation Authority (OCTA) as part of the annual Measure M2 Eligibility process.

Major projects scheduled include: design work for the complete rebuild of Fire Station No. 1, residential road rehabilitation, the renovation of the Police Department locker rooms to meet the changing needs of the department and allow for increased gender diversity, traffic signal synchronization on several arterial streets citywide, as well as continued partnership with the Orange County Transportation Authority (OCTA) for the I-405 project.

Measure HH and the 20-Year Financial Plan

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

On November 8, 2016, the residents of Fountain Valley approved Measure HH, a one-percent transactions and use (i.e. “sales”) tax. The use of Measure HH funds is guided by the City’s Responsible Spending Pledge (see appendix) and the 20-Year Financial Plan, where the goal is to pay off debt and eliminate the structural deficit projected when Measure HH sunsets in 2037.

The Proposed FY 2022-23 Budget allocates $16,153,000 in Measure HH revenues for the following: $12.778 million in Measure HH funding to support essential city services such as public safety and senior and youth programs and the $3.0 million additional UAL payment to CalPERS.

In addition, $375,000 in Measure HH funds is allocated for residential road rehabilitation.

The City’s 20-year Financial Plan is a dynamic document that enables city leaders to forecast the impact of various financial decisions such as labor agreements, new development, capital projects, and fluctuations in the economy, on city finances over the long-term. This 20-year focus ensures the City’s financial sustainability by understanding how short term decisions can have a substantial impact on the structural deficit/surplus when Measure HH sunsets in 2037.

This 20-year Financial Plan is updated twice yearly, at budget preparation and as part of the mid-year budget review. The current update reflects an operating surplus of approximately $473 thousand when Measure HH sunsets in FY 2037. This information enables the City to continue to be proactive in obtaining new revenue sources and exercising fiscal constraint in order to have the City revert back to a projected structural surplus when Measure sunsets. This forecasting tool will continue to be closely monitored for any future changes. The 20 Year forecast still includes the successful retirement of all debt, funding of the CalPERS unfunded actuarial liability (UAL), and the devotion of significant resources to improving and maintaining the City’s facilities and infrastructure by the time Measure HH sunsets.

General Fund Reserves
The City maintains a number of reserves to protect the City in the event of unforeseen circumstances and maintain fiscal stability over the long-term. Projected reserve details and estimates at the end of FY 2022-23 are outlined below.

Pension Reserves– $13,888,570
The City has established a Section 115 Pension Trust Fund to set aside pension reserves in an irrevocable trust fund. The Pension Trust Fund may be used to offset volatility in pension contributions. In Fiscal Year 2017/18, the City funded the Pension Trust with an initial contribution of $2.8 million. The City contributed an additional $3.0 million in FY2019/20 respectively. The projected balance at June 30, 2021 is $13,888,570 which includes estimated investment earnings.

Emergency Reserves – $17,601,655
The reserve for emergencies shall be maintained at $17.6 million unless the City Council declares an emergency for natural disasters or financial emergencies. A financial emergency is considered when annual General Fund operating revenues decrease by 5% or more or when annual General Fund operating expenditures increase by 5% of more. The targeted reserve level of $17.6 million equates to approximately 55% of total sales tax revenue (inclusive of Measure HH) and is reviewed annually. This reserve addresses a number of risk factors including natural disasters, budget stabilization, revenue source stability, expenditure volatility and liquidity.

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

Economic Development Reserves – $1,397,161
One of the City’s 3-Year Strategic Plan Goals is to enhance economic development. In 2014, $2.5 million was set-aside for Economic Development. $1,000,000 has been budgeted in Fiscal Year 2019/20 to be spent on the General Plan update, which is currently underway. The available unappropriated balance for Economic Development Reserves is $1,397,161.

General Fund Capital Reserves – $28,300,577
The City has significant capital improvement expenditures that can be funded on a pay-go basis without the issuance of debt. Specific projects will continue to be identified by staff and may be presented to the City Council during the budget process or throughout the year as capital needs arise. The estimated reserve balance at June 30, 2023 is $28,300,577.

Contingency Reserves – $500,000
Contingency reserves includes spendable amounts not otherwise restricted, committed or assigned and is intended to be used for expenses that surface after the end of the traditional budgeting process. Contingency reserves in excess of $500,000 are assigned to General Fund Capital Reserves.

Gann Limit
In accordance with Article XIIIB of the State Constitution, the City must establish an annual appropriations limit by resolution known as the “Gann Limit”. This year, the City’s appropriation limit is established at $167,138,759 as stated in the attached resolution. The data used in computing the City’s appropriation limit has been available for public inspection.

Annual Schedule of Property Rental and Administrative Charges to Municipal Water & Sewer Utility Funds
Annually a calculation is made to recover the cost of the use of city property and city services that are provided to or used by the Municipal Water and Sewer Utility Funds. This schedule and methodology is adopted by resolution annually and detailed information relating to the calculation of these charges is available in the Finance Department at least fifteen days prior to the presentation of the budget for adoption consideration. This year, the reimbursement requested is $1,935,534.

FINANCIAL ANALYSIS:

The Proposed FY 2022-23 Annual Operating Budget and Capital Improvement Program is balanced with a projected structural surplus of $3,246,163, maintains essential public services and supports capital improvements while continuing the City’s commitment to restoring reserves and paying down debt. The City’s financial policies, guided by the Measure HH “Responsible

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

Spending Pledge” and the 20-Year Financial Plan, aim to ensure the City’s long-term fiscal sustainability and ability to adapt quickly to changing economic climates.

ALTERNATIVES:

Alternative No. 1: Adopt a resolution adopting the FY 2022-23 City of Fountain Valley Annual Budget and related schedules; Ten-Year Capital Improvement Plan; and Financial, Budget and Debt Policies. (Adoption of the ten year Capital Improvement Plan consistent with Measure M2 Eligibility process) and; Adopt a resolution approving the FY 2022-23 Gann Appropriations Limit; and Adopt a resolution establishing the FY 2022-23 annual schedule of property rental and administrative service charges to the Municipal Water and Sewer Utility Funds; Alternative No. 2: Not adopt the FY 2022-23 Fiscal Year Budget and related actions and continue this matter to a later date. This alternative is not recommended as such action could impair the City’s ability to operate or provide City services after June 30, 2022 without authorizing appropriations amounts as required by City policy.

RECOMMENDATION:

It is recommended that the City Council approve Alternative No. 1, which is to:

1. Adopt a resolution adopting the FY 2022-23 City of Fountain Valley Annual Budget and related schedules; Ten-Year Capital Improvement Plan; and Financial, Budget and Debt Policies. (Adoption of the ten year Capital Improvement Plan consistent with Measure M2 Eligibility process);

2. Adopt a resolution approving the FY 2022-23 Gann Appropriations Limit; and

3. Adopt a resolution establishing the FY 2022-23 annual schedule of property rental and Administrative Service Charges to the Municipal Water and Sewer Utility Funds.

Prepared by: Shannon Espinoza, Budget Manager
Reviewed by: Ernestine Jones, Interim Finance Director
Approved by: Maggie Le, City Manager
Attachment 1: Resolution adopting the FY 2022-23 Proposed Annual Operating Budget & Capital Improvement Program
Attachment 2: Resolution adopting the FY 2022-23 Gann Appropriations Limit.

Attachment 3: Resolution adopting the FY 2022-23 Annual Schedule of Property Rental and Administrative Service Charges to the Municipal Water & Sewer Utility Funds.

FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

Attachment 4: FY 2022-23 Proposed Annual Operating Budget and Capital Improvement Program

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA, ADOPTING AN ANNUAL BUDGET AND RELATED

DOCUMENTS FOR THE CITY OF FOUNTAIN VALLEY, FOR FISCAL YEAR 2022/23
WHEREAS, the City Manager and Budget Manager have, heretofore, presented to the City Council a Proposed Operating Budget for Fiscal Year 2022/23; and WHEREAS, the Proposed Operating Budget includes the City of Fountain Valley, and information related to the Successor Agency, Housing Authority, and Public Financing Authority; and
WHEREAS, the City Council did hold a public workshop on May 17, 2022, in the Council Chambers of City Hall of said City, in order to review the proposed budget documents for Fiscal Year 2022/23; and
WHEREAS, the City Council did review proposed budget for the Fiscal Year 2022/23.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Said Proposed Operating Budget, as so amended, is hereby adopted as the Operating Budget for the City of Fountain Valley for the fiscal year commencing July 1, 2022 and ending June 30, 2023, and consists of estimated and anticipated expenditures and revenues for that fiscal year.

SECTION 2. The City Council does hereby approve and authorize the salary allocations as presented throughout the various departmental programs; the schedule of Inter-fund transfers, estimated continuing appropriations amounts; 2022/23 Capital Improvement Program expenditures along with the use of Capital Reserve Fund monies; and authorize the identified assigned or committed allocation of the General Fund cash balances.

SECTION 3. The City Council does hereby adopt the ten year Capital Improvement Plan which is consistent with the seven year CIP program submitted to the Orange County Transportation Authority (OCTA) as part of the annual Measure M2 Eligibility process.

SECTION 4. The City Manager or his/her designee, for purposes of administrative necessity in implementing the budget, is hereby authorized to transfer funds between accounts, programs and line item expenditures as long as the transfer does not exceed the total appropriation within a given fund or where such transfer is expressly prohibited in a resolution or ordinance approved by the City Council.

SECTION 5. The Fiscal Year 2022/23 Financial & Budget Policies as presented in the 2022/23 Annual Budget are hereby adopted by the City Council. The City Council does hereby adopt a budget that does meet the requirements of the Financial & Budget Policies related to the “Balanced Budget” section of the policies.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution, and enter it into the book of original Resolutions.

PASSED, APPROVED and ADOPTED by the City Council of the City of Fountain Valley at a regular City Council meeting held on this 21st day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN
Patrick Harper, Mayor
ATTEST:

Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA APPROVING AND ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022/23
WHEREAS, the State Constitution Article XIIIB restricts the appropriations growth rate for cities and other local jurisdictions; and
WHEREAS, the Article XIIIB, as amended by Proposition 111, requires cities to calculate their annual appropriations limit by the percentage change in 1) City population growth or county population growth; and 2) California per capita personal income or the increase in non-residential assessed valuation due to new construction; and WHEREAS, documentation used in the determination of the appropriations limit for fiscal year 2022/23 has been available to the public in the Finance Department for fifteen days prior to this meeting as required by Government Code Section 7910; and WHEREAS, a summary of this computation is provided in Exhibit “A”, which is incorporated by reference and attached hereto.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the Appropriations Limit for 2022/23 shall be $167,138,759, as calculated in Exhibit A, and the Appropriations Subject to Limitation in Fiscal Year 2022/23 shall be $57,365,433 and therefore is $109,773,326 under the limit.

SECTION 2. That the City of Fountain Valley reserves the right to recalculate said limitation at a future time.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and enter it into the book of original Resolutions.

PASSED, APPROVED and ADOPTED by the City Council of the City of Fountain Valley at a regular City Council meeting held on this 21st day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN

Patrick Harper, Mayor
ATTEST:

Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

EXHIBIT A
Appropriations Limit
City of Fountain Valley
Fiscal Year 2022-23
AMOUNT
Last Year’s Limit (2021-22) $155,763,891
Adjustment Factors

1. Population(1) 0.9977

2. Inflation(2) 1.0755
Total Adjustment Factor(3) 1.073
Total Adjustments 11,374,868
Appropriations Limit for Fiscal Year 2022-23 $167,138,759 Appropriations Subject to Limit:

Proceeds of Taxes $57,365,433 55
Minus Exclusions -
Appropriations Subject to Limit $57,365,433
Fiscal Year 2022-23 Appropriations Limit 167,138,759
Less Appropriations Subject to the Limit 57,365,433
Difference Under the Limit $109,773,326
(1)The population factor may be based on the change in population of 1) the City; or 2) the County of Orange, as provided by the State of California’s Department of Finance. (2)The inflation factor may be based on 1) the change in per capita personal income for the State of California as provided by the State of California’s Department of Finance; or 2) the change in assessed valuation due to new nonresidential construction within the City.

The inflation factor adopted by the City for the current year appropriation limit represents the change in per capita personal income for the State of California as provided by the State of California Department of Finance.
(3)The total adjustment factor is calculated by multiplying the population factor by the inflation factor.

1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA, ESTABLISHING PROPERTY RENTAL TERMS

AND CHARGES FOR ADMINISTRATIVE SERVICES FOR THE
MUNICIPAL WATER & SEWER UTILITIES.

WHEREAS, the proposed 2022/23 budget for the Water & Sewer Funds maintains funding for the operating and capital improvement expenditures of the Water & Sewer Utilities; and WHEREAS, the City owns and maintains property at various locations throughout the city that are utilized by the Water Utility to locate reservoirs, wells, equipment and facilities; and WHEREAS, the Water Utility is required to construct and maintain various pipelines and appurtenances for transmitting and distributing water for any and all purposes including mains, lines and pumps necessary or proper therefore, in, along, upon, and under the streets within the City of Fountain Valley; and
WHEREAS, the Water Utility, during the life thereof, will pay to the City an amount in the form of a right-of-way usage fee for the water mains located within the street right-of-way and related maintenance costs; and
WHEREAS, this administrative arrangement which has been in place since 1958 saves money and promises efficiency; and
WHEREAS, the Water Utility will also pay a charge for its use of land located within the City for other appurtenances such as water well pumps, reservoirs, and water operation facilities; and
WHEREAS, administrative services are also provided to the Water & Sewer Utilities; and WHEREAS, the City has determined that it is in the best interest of the community to charge the Water & Sewer Utilities the amount of $1,935,534 in 2022/23 for these rights and services; and
WHEREAS, the schedule attached “Exhibit A” is based on substantial evidence establishing that these allocations represent the costs of providing administrative services to the Water & Sewer Utilities.

NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Fountain Valley, California, that:

The Schedule attached hereto as Exhibit “A” is approved as the basis for allocating city property and service costs to the Water & Sewer Utilities.

PASSED, APPROVED and ADOPTED by the City Council of the City of Fountain Valley at a regular City Council meeting held on this 21st day of June, 2022 by the following vote:

2 AYES:

NOES:

ABSENT:

ABSTAIN
Patrick Harper, Mayor
ATTEST:

Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

ATTACHMENT
Exhibit A

EXHIBIT A

TABLE OF CONTENTS Page
Section 1: Introduction
City Council Members and City Officials 3
City Commissions & Boards 5
Strategic Plan 6
City Manager's Transmittal Letter 14
Section 2: Financial Summaries
General Fund Operating Revenue Detail 24
General Fund Operating Expenditures 27
General Fund & Internal Services Fund Balance Summary 29 Fund Transfers In & Out Detail 31
Estimated Continuing Appropriations 32
Estimated Fund Balance 33
General Fund Balance Designations (Projected) 34
General Fund Operating Revenue & Expense Analysis 35
Schedule of Measure HH Revenues and Expenditures 36
Debt Service Administration 38
Citywide Organization Chart 39
Authorized Personnel List 40
Section 3: Departments
43 49
54 60
68 79
87 Administration
Finance
Fire
Human Resources
Police
Public Works
Recreation & Community Services 100
Section 4: Capital Improvement Program
Capital Improvement Program Introduction 107
Capital Improvement Program Funding Summary 108
Capital Improvement Ten Year Plan- by Fund 111
Section 5: Appendix
Responsible Spending Pledge 118
Financial Policies 119
Fund Descriptions 141
Community Profile 148
Gann Limit Appropriation 155
Budget Adoption Resolution 159
Utility and City Cost Sharing Calculation and Resolution 161 Budget Glossary 164

CITY COUNCIL MEMBERS
Ted Bui
Council Member
Kim Consta tine
Council Member
Glenn Grandis
Council Member
Michael Vo
Mayor
Patrick Harper
Mayor Pro Tem
City Directory
The City Council consists of five members elected by the community at large. Council terms are four years, with elections held every two years. Either two or three members are elected in any given election cycle. Every year, the current City Council Members, elect a Mayor and Mayor Pro Tempore who serve for one year. The City Council also serves as the governing body for the Successor Agency, Public Finance Authority and the Housing Authority. City Council members may not serve more than three consecutive full terms, and are responsible for selecting and reviewing the City Manager who is responsible for managing the day-to-day operations of the City and implementing the policies set by the City Council. 3

CITY OFFICIALS
City Manager
Deputy City Manager
Chief of Police
Fire Chief
Director of Finance/Treasurer
Director of Human Resources
of Public Works/City Engineer
Community Services Director
City Clerk
Matt Sheppard
Ron Cookston
C
Hye Jin Lee
Rob Frizzelle
Rick Miller
4

PLANNING COMMISSION
Chair
Vice Chair
Commissioner
Commissioner
Commissioner
Commissioner
Ed
Farrell Jr.

Richard Lopez
Staff Representative

HOUSING & COMMUNITY

DEVELOPMENT ADVISORY BOARD
Cindy Cao
Ramon
Susan Saurastri
Ashlyn Newman
Chair
Vice Chair
Member
Membe Member
Staff Representative
Staff Representative

MEASURE HH-ESSENTIAL CITY

SERVICES OVERSIGHT ADVISORY

COMMITTEE
Chair
Vice Chair
Committee Member
Committee Member
Committee Member
Stephen Schwarz
M
Randy Takayama Committee Member
Staff Representative

ADVISORY COMMITTEE FOR PERSONS

WITH DISABILITIES
John Borack
Susanne Seiden
Herman Ajamian
Kayla Borack
Chair
Vice Chair
Committee Member
Committee Member
Ramon Galvez-Arango
Philip A. Nisco
Leonard Santoro
Jan Werts
Scott Quinlan
Committee Member
Committee Member
Committee Member
Committee Member
Committee Member
Committee Member
Staff Representative
City Commissions & Boards
Planning Commission meetings are held on the 2nd Wednesday of every month at 6:00 p.m., as needed, in the Fountain Valley City Hall Council Chamber Housing & Community Development Advisory Board meetings are held on the 1st Wednesday of every month at 6:00 p.m., as needed, in the Fountain Valley City Hall Council Chamber
Advisory Committee for Persons with Disabilities meetings are held on the 1st Thursday of odd numbered months at 6:30 p.m., as needed, in the Fountain Valley City Hall Conference Room #1
Measure HH-Advisory meetings are held on an as needed bases several times a year in the Fountain Valley City Hall Conference Room #1 5

STRATEGIC PLAN
The City’s Strategic Plan is comprised of the City’s mission statement, goals and objectives, and an action plan. The Strategic Plan is reviewed and updated twice a year by the City Council and the City’s executive management team at focused strategic planning sessions. Strategic Planning sessions are facilitator led, open to the public and result in measurable objectives for the upcoming six-month period.

The most recent Strategic Planning session took place in 202 Participants brainstormed the City’s current strengths, weaknesses, opportunities before developing new objectives in line with the established These new, measureable objectives will be presented to the City Council by staff following the planning session, with the next Strategic Planning Session November . The FY 202 2 budget was constructed and developed specifically to support these goals and objectives and reinforces the commitment the City makes to prioritize its core values.

The City of Fountain Valley delivers cost-effective quality public services to provide a safe and desirable community that enriches its residents and businesses.

Maintain the culture and environment of “A Nice Place to Live” Attract and Retain Revenue Producing Businesses
Achieve Fiscal Stability in Accordance with the 20-Year Financial Plan Attract and Retain Quality Staff
Fiscal Stability
Honesty,
Integrity &
Ethical Behavior
Teamwork
Excellent
Customer
Service
Innovation Quality of Life
6

C I T Y O F F O U N T A I N V A L L E Y SIX-MONTH STRATEGIC OBJECTIVES N o v e m b e r 4 , 2 0 2 1 – M a y 1 , 2 0 2 2 THREE-YEAR GOAL: “ ” ENHANCE THE CULTURE AND ENVIRONMENT OF A NICE PLACE TO LIVE WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISE D 1. At the Dec. 21, 2021 City Council meeting Planning/Building Director - lead, City Attorney, Deputy City Manager, Finance Director Present to the City Council for consideration, options to address short-term rentals in the city. X Presented to CC at 12/21 meeting as an administrative item New Planning/Building Director to bring back options for City Council to consider in July 2022. 2. At the Feb. 1, 2022 City Council meeting Community Services Dir. Present to the City Council for direction options for additional community events and services. X Completed and new events have been added to the calendar for 2022. 3. By April. 15, 2022 Community Services Director and the City Manager Present to the City Council an update on the Mile Square Park expansion request to the county. X Revised date as conversation with Orange County are on-going. 4. By April 15, 2022 Deputy CM with assistance from all directors Reinstate and enhance outreach / engagement opportunities related to city-wide community services and present to the City Manager. X Revised until a permanent city manager has been selected. 7

5. At the April 19, 2022 City Council meeting Deputy CM – lead, working with the Planning /Building Dir., Finance Dir., Fire Chief, Police Chief, Public Works Dir. Present to the CC for consideration an application to LAFCO for annexing the county island at Edinger and Harbor. X 12/2/21 Zoom call with LAFCO and County staff to inquire about annexing north island and clarification on County/City agreement on property tax sharing. Requesting County staff on financial data for City staff to share with City Council. 1/27/22 Finance Director received financial data from HDL. 3/24/22 PW Director confirmed Water and Sewer collection services provided by the City. 4/19/22 Presented property and sales tax for north island and City Council directed to do resident survey in the north island and find information about southern island. 5/9/22 LAFCO provided information on southern island annexation. Pending survey sample(s). 8

THREE-YEAR GOAL: ATTRACT AND RETAIN REVENUE PRODUCING BUSINESSES WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISE D 1. At the Nov. 16, 2021 City Council meeting Public Works Dir. – lead and Deputy CM Present to the City Council the results of the feasibility study regarding partnering with Internet providers to provide the best internet service for residents and businesses in Orange County. x 11/16/2021 – PW Director presentation to Council the outcome of the research on the feasibility of partnering with ISP. All ISPs want their own fiber-optic assets. The city’s Fiber Optic system is not sufficient to provide city-wide fiber/internet services. Identified framework on how to proceed with Frontier for City-wide fiber optic installation 1/18/2022 – PW invited Frontier Network to present to Council the plans to install City-wide fiber optic. 2/1/2022 – PW Invited SiFi to present to Council their plan for City-wide fiber optic 4/5/2022 – SiFi Development Agreement on the agenda for Council approval. 2. At the Feb. 15, 2022 City Council meeting Planning Director Explore feasibility of container / "Steel Craft" restaurant / outdoor dining areas and report results to the City Council. X Staff is preparing a Memo for Council detailing current regulations and feasibility. Staff also approached developers regarding the potential for such uses at ICSC in May 2022. 9

3. By March 1, 2022 Finance Director Present to the City Manager a plan to E(electronically)- sign and issue simple business licenses. X Information submitted to Rob Houston Fall, 2021. City already offers electronic business license submissions. 4. At the March 1, 2022 City Council meeting Deputy CM - lead, Planning Director and Public Works Director Present to the City Council for direction branding the FV Crossings Business Area with signage, beautification and marketing. X Received quote for signage and scheduled for study session on March 1, 2022. City Council directed staff to work with Council Committee on signage and bring it back to future City Council Meeting. 4/5/22 Staff met with Council Committee and they directed to rebrand the Crossings. 4/19/22 Staff received direction to do a RFP for rebranding of FV Crossings Specific Plan. 10

THREE-YEAR GOAL: ACHIEVE FISCAL STABILITY IN ACCORDANCE WITH THE 20-YEAR FINANCIAL PLAN WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISE D 1. At the Feb. 1, 2022 City Council meeting Finance Director – lead and Budget Manager Present to the City Council analysis for UAL (Unfunded Actuarial Liability) and funding strategy to accelerate payment. X Presentation was made by consultant, GovInvest on UAL and OPEB funding strategies. Staff will work with consultant in preparation of FY22/23 budget on recommended amount of discretionary payments. 2. By the March 1, 2022 City Council meeting HR Director - lead, Finance Director, City Manager Present to the City Council the findings and impacts of the Employee Compensation Study. X Safety to be presented on 4/5/2022. Misc. groups have been presented in closed session and negotiations are in process and moving forward. Hope to complete within the next month or two. 3. At the April 1, 2022 City Council meeting Finance Director, working with all Directors Identify and present to the City Council areas for savings to the city, and new revenue opportunities that do not impact residents. X Will be discussed as part of the budget process for FY22/23. Target date pushed back due to staffing turnover and ERP project 4. At the April 15, 2022 City Council meeting Finance Director – lead and Public Works Director Present to the City Council the creation of a Facilities Replacement Fund. X Will be discussed as part of the budget process for FY22/23. Target date pushed back due to staffing turnover and ERP project. New date likely Summer 2022 when new Finance Director is on board. 11

THREE-YEAR GOAL: ATTRACT AND RETAIN QUALITY STAFF WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISE D 1. April 5th, Council Meeting Cross City Committee with oversite/assistance from Ron Cookston and Carrie Hanes Engagement Team – Increase Engagement of staff for teambuilding, equity, inclusion, retention and morale X Committee has been formed with employees from various departments with first meeting held 3/14/2022. Ideas to be presented to City Council Summer 2022. Cross City Team meeting regularly. Using employee satisfaction survey results from Attraction Committee to address areas of improvement. Will seek direction from Council on initiatives, financial support, and staffing levels in order to successfully meet this Strategic Goal. 2. March 15th, Council Meeting Maggie Le, Matt Sheppard, Carrie Hanes, and Cross City team Attraction of Quality new staff, City Marketing and Branding X 1/5/22 and 1/20/22 Employee Attraction Committee met to discuss objective and identify questions for employee survey and recruitment video. 2/7/22 - Completed employee survey and presented results to City Council on 3/15/22. Hold on recruitment video until Engagement Team completes their process to proceed. Will seek direction from Council on financial support and staffing levels in order to successfully meet this Strategic Goal. 12

3. March 1st Council Meeting HyeJin Lee, Rob Frizzelle, Carrie Hanes, and team Hiring process / On boarding improvements X Will need to be moved due to HCM ERP platform extension to see what capabilities the system has to support On-Boarding Process. Benefits On- Boarding implementation to launch September 2022. Staff to seek direction from Council on additional initiatives, financial support, and staffing levels to improve the Hiring/On- Boarding process in order to successfully meet this strategic goal. 13

June 21, 2022
TO: Honorable Mayor and Members of the City Council; Community Members; and City Staff
FROM: Maggie Le, City Manager
I am pleased to present the City of Fountain Valley’s Proposed Budget and Capital Improvement Program (CIP) for Fiscal Year 2022-23. The Proposed Budget provides the resources necessary to support, expand and/or improve the many services and amenities provided by the City that help make Fountain Valley not only “A Nice Place to Live” but also a world class community in which to do business, shop, dine and play.

This past year has been one of transition for the City’s management team, and resiliency for the rest of the organization. The city has seen five of the nine executive management team members leave (Community Development Director, Human Resources Director, Finance Director, IT Manager, and City Manager), along with several other key mid-managers such as our Community Services Manager, EMS Manager, and most recently, our Environmental Administrator. While some positions have been recruited for and filled, and others are in the process of being recruited, this represents both a loss of institutional knowledge and an opportunity to attract new talent to bring a fresh perspective and perhaps experience with new ways of doing things. Either way, these changes will continue to drive professional growth through the city organization, and strengthen our resiliency, in which, we have demonstrated during the ongoing pandemic.

In support of the City’s goal to “Attract and Retain Quality Staff”, the City approved MOUs and commissioned a classification and compensation study with the goal of compensating staff at a rate equal to fifty (50) percent of market. This along with other operating expenses has increased projected expenditures. However, those are more than offset by the projected revenues, with the City projected to end the next year with a $3 million surplus while still continuing the additional $3 million payments to CalPERS to pay down the City’s unfunded actuarial liability (UAL) in accordance with the Measure HH Responsible Spending Pledge. - In spring 2020, the Governor of California issued the first of many stay-at-home mandates shuttering businesses statewide. Like all cities, Fountain Valley feared the devastating economic 14

impact these shutdowns would have on city revenues, specifically sales tax and Measure HH funds.

Fortunately, the anticipated drop in revenues did not occur and instead we experienced unexpected resiliency and relatively stable revenue as the community transitioned to online shopping, sales at grocery stores increased as households opted to eat at home more often, and sales at building and construction related businesses soared higher than previous years.

In addition to maintaining steady revenue, the City also received approximately $2.07 million in support from the federal and state governments through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The majority of this funding was used to provide economic relief in the form of grants to struggling businesses within the community who were negatively impacted by the pandemic. A small portion of these funds were used to offset expenses incurred by the City such as the purchase of personal protective equipment (PPE) for staff, reconfiguration of facilities to allow for social distancing and staff time devoted to managing and responding to the COVID-19 pandemic.

The City’s allocation from the federal government’s ARPA is $7.95 million, which will be divided into two equal payments over the course of two years. Within the ARPA, the Coronavirus Local Fiscal Recovery Fund (SLFRF) will provide the City with $7.95 million in one-time funding to allow our City the resources needed to fight the impacts of the pandemic & to support families & businesses struggling with the public health & economic impacts of COVID, while maintaining vital public services amid declines in revenue. For those agencies whose funding was less than $10 million, under the U.S. Treasury Final Rule, the City of Fountain Valley used the standard allowance methodology to replace lost public sector revenue and allocated the full allotment to offset government services expenditures, namely public safety personnel costs. This will allow the city to repurpose funds previously budgeted for public safety personnel costs to other unfunded programs in support of the City’s Strategic Plan Goals.

The budget is continually reviewed for adherence to the City’s long-term twenty-year long range financial forecasting plan, preservation of the City’s financial integrity, and proper implementation of the City’s Strategic Plan initiatives.

Finance staff has reviewed and analyzed revenue and cost estimates based on updated information, and the FY 2022-23 proposed budget includes proposed changes resulting from updated revenue and expenditure projections, in order to enhance the City’s performance in providing public benefits in accordance with the City’s Strategic Plan.

The proposed FY 2022-23 looks to maintain current service levels and expand on the City’s strategic plan goals while enabling the City to continue to help the community return to normal post-pandemic by continuing to enhance the community’s quality of life and safety, while maintaining a conservative outlook for revenue and expenditure growth based on changing economic factors. Citywide, the total budget is $126.1 million, an increase of 9.9% over the adopted FY 2022-23 budget. These expenses are supported by $112.8 million in revenue, an increase of 1.9% percent from the current fiscal year (excluding ARPA funding of $7.9 million), and 15

use of one-time capital improvement reserve funding. These total figures reflect revenues and expenses for all funds citywide including the General Fund, Enterprise Funds, Internal Service Funds, Debt Service Funds and Special Revenue Funds. The Proposed Budget also includes Internal Service Funds whose totals are not included in the $126.1 million.

Enterprise Funds are proprietary funds supported by user fees and charges. The rates charged to customers for these services cover the costs of operation, maintenance and capital and infrastructure improvements. The City maintains several Enterprise Funds including Water, Sewer, and Solid Waste. Expenditures for FY 2022-23 for these funds are proposed to be $28.8 million for both operating and capital expenses.

Internal Service Funds, including information technology, government buildings, capital equipment, employee benefits, self-insurance and fleet services account for activities provided to one City department by another City department. The Proposed FY 2022-23 budget includes $37.5 million in funding for these funds.

Debt Service Funds are used to account for debt service expenditures on general long-term debt.

The City currently has four outstanding debt obligations; the 2014 Revenue Bonds, 2016A Lease Revenue Bonds, 2015A Pension Obligation Bonds and the Clean Energy Renewable Bonds (CREBS). Payments for citywide debt is $3.4 million for FY 2022-23.

Special Revenue Funds are funds legally restricted to a specific purpose. Examples of Special Revenue Funds include the Gas Tax Fund and the Community Development Block Grant (CDBG).

In total, expenses in Special Revenue Funds are proposed to be $15.8 million for FY 2022-23, including capital improvement projects.

The General Fund is the primary operating fund of the City and supports fundamental services including Police, Fire, Community Development, Community Services and general administration.

Revenue for this fund comes from general taxes such as property tax, sales tax, Measure HH, transient occupancy taxes as well as a variety of user and permit fees and other smaller sources.

The Proposed Budget for FY 2022-23 for the General Fund is $70.1 million in expenses and $73.3 million in revenue, with an additional $10.3 million for one-time capital projects.

Property Tax revenue in FY 2022-23 is projected to be $22,983,888, an increase of $1,065,288 over FY 2021-22. Increases in property tax are due to a combination of property turnover and resulting reassessments and the two percent per year inflation factor for property assessments allowable under Proposition 13.

Sales Tax, including Measure HH is projected to increase by approximately 4% in FY 2022-23 from the revised FY 2021-22 budget and totals approximately $31.7 million. Sales tax remained stable in FY 2022-23, attributable to a combination of sales derived from new businesses within the 16

community, inflation and the impact of the South Dakota vs. Wayfair case. The Wayfair case was decided by the Supreme Court in 2018, and was implemented in California in April 2019. The case, and subsequent state legislation, requires online retail sellers to collect and remit sales tax on taxable sales shipped into the state. Revenue from the tax is then allocated to a countywide pool based on the point of delivery of the product purchased. As online shopping has surged in popularity both before and during the pandemic, the City’s portion of the countywide pool has increased 14.5% year over year as of the quarter ending December 2021.

Transient occupancy tax (TOT), otherwise known as “the bed tax” is tax paid by visitors staying overnight in one of our local hotels. Revenue from TOT was lower in previous fiscal years due to the pandemic, however not as low as originally feared given the many pandemic related travel restrictions. As travel restrictions continue to ease and as COVID variants remain contained, the proposed budget assumes $1.4 million in TOT revenue, 12% higher than the FY 2021-22 adopted budget.

General Fund Functional Revenues are those revenues derived from services and activities provided by the various departments such as plan checking, facility rentals, business license fees, EMS response fees and alarm permits. Functional revenues are projected to total $8,007,487 in FY 2022-23, an increase of $64,000 from FY 2022-23.

General Fund expenditures are broken into two distinct types - operating and capital. Operating expenses are those required to support the day-to-day operations of the City including personnel expenses, professional services, maintenance expenses and the purchase of needed equipment and are supported by revenue generated in the fiscal year the expenses occur. Capital expenses are one-time expenditures that are funded through the capital reserves, where funds have been set aside from savings over multiple fiscal years and/or one-time funding sources such as reimbursements and development agreements.

The proposed FY 2022-23 General Fund Budget includes $70.1 million in expenses and $10.3 million in capital expenditures for the General Fund. In addition, $3.0 million in additional payments to CalPERS to pay down the City’s unfunded actuarial liability (UAL) is included in the Proposed Budget in accordance with the Measure HH Responsible Spending Pledge. 17

Proposed General Fund budgets for the respective departments are listed below:

Major increases to General Fund department expenditures include the full eighteen-month incremental cost of the compensation study among all bargaining units, existing MOU increases including a 3% cost of living adjustment among all units in July of 2022, and merit increases.

Department internal service charges are included to fully fund the City’s new ERP system, selfinsurance, fleet maintenance and replacement, along with all government building maintenance and repair. Operating increases for the departments are as follows:

Administration, a net increase of $57,177:
o $111,444 increase relating to personnel salary and benefit increases, including pension costs.
o $65,253 increase relating to increased departmental internal service charges. o Operating expenses have decreased $119,520 over the current year revised budget due to reductions for one-time budget transfers from salary savings, along with increases for legal services and professional service contracts, public relations, and election costs.

Finance, an increase of $715,758:
o Increase of $502,940 relating to personnel salary and benefit increases, including pension costs. The fiscal year 2022-23 proposed budget includes a proposed new Management Analyst position to add critical analytical support in the areas of Accounting, Purchasing, Budgeting, and compliance with regulatory financial reporting requirements.
o $72,013 increase relating to increased departmental internal service charges. o $140,805 relating to operating expenditure increases relating to fully funding the pension and OPEB actuarial contract as approved by Council during fiscal year 2021-22, along with additional temporary staffing to assist the department for the upcoming implementation of the City’s ERP human capital management and utility billing modules. In addition, the Purchasing division moved from a separate internal service fund back to the General Fund for fiscal year 2022-23 to reflect the 18

decentralization of the purchasing and stores functions and the Management Analysts’ role as overall Purchasing Administrator in the Finance department.

Fire, increase of $955,376:
o Increase of $594,589 relating to personnel salary and benefit increases, including the change from flat rate specialty pays to percentage of base pay, and new specialty pays, including longevity, to further the Council’s strategic goal of attracting and retaining quality staff to bring City employees to fifty percent of market over the next three fiscal years.
o $322,693 increase relating to increased departmental internal service charges. o $38,094 in increased operating charges relating to MetroNet membership increases and CPI on the CARE Ambulance contract.

Human Resources, increase of $414,312:
o $308,053 relating to personnel salary and benefit increases including pension, including the full year cost of the additional Human Resources Analyst position approved during the 2021-22 mid-year Council meeting, as well as proposed reclasses presented at the 2022-23 proposed budget workshop, including the Principal HR Analyst to HR Manager, HR/Safety Specialist to Senior HR Analyst, and HR Technician from .75 to 1.0 FTE.
o $23,613 increase relating to increased departmental internal service charges, which include sufficient funding for the upcoming ERP implementation of human capital management payroll/HR modules.
o Operating expenses of $82,646 increased due to increase in contract service costs, including legal and professional services contracts including labor relations, Employee ACA and Workers Compensation compliance, benefits administration, and labor law compliance.

Community Development, a net increase of $268,673:
o $410,103 relating to personnel salary and benefit increases, including pension. The fiscal year 2022-23 proposed budget includes a proposed new Code Enforcement Officer to add weekend inspections for code enforcement to enforce all Fountain Valley Municipal Codes and State of California codes.
o $46,273 increase relating to increased departmental internal service charges, including building and code enforcement vehicle maintenance. o Operating expenses decreased $187,703 due to the reduction of contract services for planning and permit checking and inspection services, including services paid for functions now performed by the in-house building staff.

Police, increase of $2,503,871:
o $1,458,845 relating to personnel salary and benefit increases, including pension.

Current year revised budget may be insufficient to fund all current negotiated increases, however, salary savings should cover existing retro payment and existing six month increases for enhanced/new benefits. In addition, the fiscal year 2022- 23 budget includes the change from flat rate specialty pays to percentage of base pay, and new specialty pays, including longevity, to further the Council’s strategic goal of attracting and retaining quality staff to bring City employees to fifty percent of market over the next three fiscal years.
19

o $571,177 increase relating to increased departmental internal service charges including brazos devices, and S.W.A.T. vests.
o Operating expenses increased $473,849 primarily due to the full year contract funding of the City’s homeless outreach contract.

Public Works, increase of $1,157,795:
o $491,476 relating to personnel salary and benefit increases, including pension. The proposed budget also includes two new proposed positions of Assistant Engineer and Management Aide, which is funded eighty percent by the Enterprise funds.

Other proposed reclasses to positions include a Management Analyst to Senior Management Analyst, a Water System Operator to Water Foreman, and a Foreman to Landscape Inspector.
o $492,398 increase relating to increased departmental internal service charges including the scheduled roof replacement at the City yard. o Operating increases of $173,921 relate to increases on existing professional service contracts including median and right-of-way landscape maintenance, parks and civic center facility landscape maintenance, inflationary increases relating to street and road supplies, electricity for streetlights (SCE), sports park landscape maintenance and turf rehab for new special events, water utility increases for the Sports Park, and gasoline/diesel for the Public Works fleet vehicles. Other one-time increases include a tree inventory conducted once every five years.

Recreation and Community Services, increase of $356,775:
o $64,389 relating to personnel salary and benefit increases, including pension. o $279,231 increase relating to increased departmental internal service charges including replacement of Recreation and Senior Center equipment, including furnishings, basketball hoops, turf tank, and exercise equipment. o $13,155 increase in other operating costs include public information to promote new City events, Senior events, and other inflationary costs increases to supplies, etc.

The proposed fiscal year 2022-23 budget includes 238.75 authorized full-time equivalent (FTE) positions, reflecting a net increase of four (4.25) positions from the prior fiscal year. Half of the new positions are to be funded eighty percent from the Enterprise Funds.

The proposed Code Enforcement Officer for the Community Development department would add weekend inspections for code enforcement to enforce all Fountain Valley Municipal Codes and State of California codes.

The proposed Management Analyst for the Finance Department would add critical analytical support in the areas of Accounting, Purchasing, Budgeting, and compliance with regulatory financial reporting requirements. This position would also assist the City in implementing the full roll out the City’s robust new ERP system, including implementing the new Human Capital Management and Utility Billing modules.
20

The proposed budget also includes an additional Assistant Engineer and Management Aide funded twenty percent from the General Fund. These new positions will assist the Public Works department with various duties, including managing the City’s expanding capital improvement project program, increased plan check and permit work, regulatory reporting requirements, contract management, invoice processing, and the City’s water conservation effort. Other proposed reclasses to positions include a Management Analyst to Senior Management Analyst, a Water System Operator to Water Foreman, and a Foreman to Landscape Inspector.

Other proposed reclassifications would include changes to HR classifications handle higher level duties relating to worker’s
compensation, FMLA, Benefits Administration, Employee Relations, Labor Law Compliance, and Recruitment and Selection oversight.

The proposed FY 2022-23 budget further enhances the City’s strategic plan goals of achieving fiscal stability in accordance with the twenty-year financial forecasting plan while targeting surplus resources to key strategic planning initiatives. The current year proposed budget continues to fully fund all City operations, including the full eighteen-month impact of the recent classification and compensation study for all City bargaining units, including Police and Fire, furthering the Council’s strategic goal of attracting and retaining quality staff. The budget also includes contract services for the City’s homeless outreach initiatives, including contracting with a professional services contractor for community outreach and case management services, which will provide assistance with programs such as emergency housing, mental and health care, benefits counseling and a variety of other community based programs and services.

As previously mentioned, the proposed budget includes $3.0 million in additional payments to CalPERS to help pay down the City’s unfunded actuarial liability (UAL). The City’s current unfunded actuarial liability is approximately $69.1 million, exclusive of assets held in the City’s 115 pension trust. The City is committed to paying down this debt as quickly as possible by making payments in addition to the normal and amortized UAL costs mandated by CalPERS. Doing so will save a significant amount in interest over the twenty-year amortization period and complies with one of the primary goals of Measure HH to “pay down unfunded liabilities”.

The City’s Capital Improvement Program (CIP) identifies major public improvements to the City’s infrastructure over the next ten years and includes new projects, upgrades to existing facilities as well as rehabilitation of streets and roadways. Funding for projects scheduled for FY 2022-23 are included in the proposed budget, with the majority of the scheduled projects funded by the General Fund Capital Reserve, the Water and Sewer Funds, Gas Tax, Measure M2, grants and other reimbursements. The proposed CIP for FY 2022-23 includes 47 projects for a combined total of $24.5 million, and is consistent with the seven year CIP program submitted to the Orange County Transportation Authority (OCTA) as part of the annual Measure M2 Eligibility process. 21

Major projects scheduled include: design work for the complete rebuild of Fire Station No. 1, residential road rehabilitation, the renovation of the Police Department locker rooms to meet the changing needs of the department and allow for increased gender diversity, traffic signal synchronization on several arterial streets citywide, as well as continued partnership with the Orange County Transportation Authority (OCTA) for the I-405 project. - On November 8, 2016, the residents of Fountain Valley approved Measure HH, a one-percent transactions and use (i.e. “sales”) tax. The use of Measure HH funds is guided by the City’s Responsible Spending Pledge (see appendix) and the 20-Year Financial Plan, where the goal is to pay off debt and eliminate the structural deficit projected when Measure HH sunsets in 2037. The Proposed FY 2022-23 Budget allocates $16,153,000 in Measure HH revenues for the following:
$12.778 million in Measure HH funding to support essential city services such as public safety and senior and youth programs and the $3.0 million additional UAL payment to CalPERS. In addition, $375,000 in Measure HH funds is allocated for residential road rehabilitation.

The City’s 20-year Financial Plan is a dynamic document that enables city leaders to forecast the impact of various financial decisions such as labor agreements, new development, capital projects, and fluctuations in the economy, on city finances over the long-term. This 20-year focus ensures the City’s financial sustainability by understanding how short term decisions can have a substantial impact on the structural deficit/surplus when Measure HH sunsets in 2037.

This 20-year Financial Plan is updated twice yearly, at budget preparation and as part of the midyear budget review. The current update reflects an operating surplus of approximately $473 thousand when Measure HH sunsets in FY 2037. This information enables the City to continue to be proactive in pursuing new revenue sources and exercising fiscal constraint in order to have the City maintain healthy projected structural surpluses when Measure HH sunsets. This forecasting tool will continue to be closely monitored for any future changes. The 20 Year forecast still includes the successful retirement of all debt, funding of the CalPERS unfunded actuarial liability (UAL), and the devotion of significant resources to improving and maintaining the City’s facilities and infrastructure by the time Measure HH sunsets.

In closing, I would like to express my sincere appreciation to the many City staff members across all of our departments for their active and thoughtful participation in developing this budget and the CIP, and to the Members of the City Council that dedicated significant time to attend detailed budget briefings and provided critical input. Special thanks to our Finance Team including the Accounting Manager and Budget Manager for tireless hours beyond operating hours in producing this proposed budget document. Furthermore, I want to thank every employee for their hard work and ongoing dedication to the community this past year. Despite the many challenges the past fiscal presented, City staff never stopped providing high quality customer service, completing numerous capital projects, or supporting local businesses, and have continued to focus on the health and safety of our employees and residents.
22

I want to also thank the City Council for its effective policy leadership and support as we work together to ensure Fountain Valley’s continued prominence as one of the safest and most desirable places to live and work. Working hand-in-hand, we will continue our commitment to ensuring public resources are managed as prudently and wisely as possible, ensuring we keep Fountain Valley . Respectfully submitted,
Maggie Le
City Manager
23

REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year %
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL

PROPERTY TAX
40000 - CURRENT YEAR SECURED 12,735,000 12,735,000 - 0% 13,298,828 563,828 4% 40001 - SECURED RESIDUAL 1,450,000 1,450,000 - 0% 1,460,000 10,000 1% 40002 - CURRENT YEAR UNSECURED 370,000 370,000 - 0% 436,000 66,000 18% 40003 - PRIOR YEAR TAXES 90,000 90,000 - 0% 90,000 - 0% 40004 - PENALTIES/INT ON TAXES 19,000 19,000 - 0% 25,000 6,000 32% 40005 - HOMEOWNER PROP TAX RELIEF 57,000 57,000 - 0% 57,000 - 0% 40006 - PROPERTY TRANSFER TAX 300,000 300,000 - 0% 300,000 - 0% 40007 - MOTOR VEH IN LIEU 6,635,600 6,635,600 - 0% 7,055,060 419,460 6% 40008 - OTHER PROPERTY TAXES 262,000 262,000 - 0% 262,000 - 0% TOTAL PROPERTY TAX 21,918,600 21,918,600 - 0% 22,983,888 1,065,288 5%

FRANCHISE FEES
40200 - POWER FRANCHISE 668,000 668,000 - 0% 728,192 60,192 9% 40201 - NATURAL GAS FRANCHISE 110,000 110,000 - 0% 115,000 5,000 5% 40202 - RUBBISH FRANCHISE 500,000 500,000 - 0% 520,000 20,000 4% 40203 - WASTE FRANCHISE ROAD REHAB 292,000 292,000 - 0% 307,000 15,000 5% 40204 - CTVA/PCTV FRANCHISE 500,000 500,000 - 0% 410,000 (90,000) -18% TOTAL FRANCHISE FEES 2,070,000 2,070,000 - 0% 2,080,192 10,192 0%

SALES TAX
40100 - SALES & USE TAX 14,500,000 14,500,000 - 0% 15,107,000 607,000 4% 40101 - TRANSACTION TAX (MEASURE HH) 15,500,000 15,500,000 - 0% 16,153,000 653,000 4% 40102 - PUBLIC SAFETY SALES TAX (PROP 172) 421,000 421,000 - 0% 455,000 34,000 8% TOTAL SALES TAX 30,421,000 30,421,000 - 0% 31,715,000 1,294,000 4%

OTHER REVENUES
40300 - TRANSIENT OCCUPANY TAX 1,250,000 1,250,000 - 0% 1,400,000 150,000 12% INTEREST INCOME 960,000 960,000 - 0% 1,075,778 115,778 12% PERMITS & FEES, FINES 732,000 732,000 - 0% 733,000 1,000 0% GOVERNMENT AGENCY REVENUE 942,015 942,015 - 0% 761,374 (180,641) -19% CHARGES FOR SERVICES 1,801,389 1,801,389 - 0% 2,059,496 258,107 14% 48019 - CONTRIBUTE IN LIEU OF TAX (ADMIN SVCS CHARGE) 1,796,857 1,796,857 - 0% 1,872,929 76,072 4% TOTAL OTHER REVENUE 7,482,261 7,482,261 - 0% 7,902,577 420,316 6%

TRANSFER IN
48009 - TRANSFERS IN/GAS TAX 422,000 422,000 - 0% 495,043 73,043 17% 48018 - TRANSFER IN OTHER 78,449 78,449 - 0% 85,533 7,084 9% 48014 - TRANSFER IN/SEWER FUND 63,477 63,477 - 0% 62,605 (872) -1% TOTAL TRANSFER IN 563,926 563,926 - 0% 643,181 79,255 14% 62,455,787 62,455,787 - - 65,324,838 2,869,051 0

FUNCTIONAL REVENUE

COMMUNITY DEVELOPMENT
42256 - OCSD FEES/PROCESSING 4,000 4,000 - 0% 4,000 - 0% 42257 - GREEN BLDG STANDARDS FEE 250 250 - 0% 250 - 0%
42258 - SB 1186/ADA FEE 3,000 3,000 - 0% 10,000 7,000 233% 42010 - BUILDING PERMIT 670,000 670,000 - 0% 700,000 30,000 4% 42011 - ELECTRICAL PERMIT 90,000 90,000 - 0% 90,000 - 0% 42012 - HEATING & MECH PERMIT 58,000 58,000 - 0% 58,000 - 0% 42013 - PLUMBING PERMIT 50,000 50,000 - 0% 50,000 - 0%
42015 - OUTDOOR SALE EVENT PERMIT FEE 3,000 3,000 - 0% 3,000 - 0% 42016 - CONDITIONAL USE PERMIT 55,000 55,000 - 0% 58,500 3,500 6% 42017 - HOME OCCUPATION PERMIT 2,200 2,200 - 0% 2,200 - 0% 42018 - TEMPORARY BANNER PERMIT 400 400 - 0% 1,000 600 150% 42200 - GENERAL PLAN MAINTENANCE FEE 65,000 65,000 - 0% 65,000 - 0%

TOTAL GENERAL FUND REVENUE
24

REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year %
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL
42201 - SOILS REVIEW FEE 80,000 80,000 - 0% 80,000 - 0% 42202 - DEVELOPMENT REVIEW FEE 7,220 7,220 - 0% 7,220 - 0% 42203 - VARIANCE FILING FEE 8,000 8,000 - 0% 8,000 - 0% 42204 - ADMINISTRATIVE CITATION FEE 4,000 4,000 - 0% 4,000 - 0% 42205 - PRECISE PLAN FILING FEE 21,575 21,575 - 0% 21,575 - 0% 42206 - ZONE CHANGE FILING FEE 7,110 7,110 - 0% 7,110 - 0% 42207 - LOT SPLIT FILING FEE 2,000 2,000 - 0% 2,000 - 0% 42208 - NEGATIVE DECLARATION FEE 3,000 3,000 - 0% 3,000 - 0% 42209 - CEQA CLEARANCE FEE (FRMRLY EIR 100,000 100,000 - 0% 100,000 - 0% 42211 - DEVELOPMENT AGREE. FEE 10,745 10,745 - 0% 10,745 - 0% 42212 - CODE AMENDMENT FEE 4,745 4,745 - 0% 4,745 - 0%
42215 - TENATIVE TRACT MAP FEE 1,960 1,960 - 0% 1,960 - 0% 42217 - PLANNING-PLAN CHECK FEE 100,000 100,000 - 0% 125,000 25,000 25% 42218 - FORECLOSURE REGISTERATION FEE 4,500 4,500 - 0% 4,500 - 0% 42219 - ADMIN WIRELESS COM. FAC. FEE 10,000 10,000 - 0% 10,000 - 0% 42220 - SIGN REVIEW FEE 6,500 6,500 - 0% 6,500 - 0%
42221 - ZONING COMPLIANCE LETTER 1,000 1,000 - 0% 1,000 - 0% 42250 - MICROFILMING FEES 15,000 15,000 - 0% 15,000 - 0% 42251 - PLAN CHECK FEES 340,000 340,000 - 0% 340,000 - 0% 42252 - CITY ONLY-SPECIAL PROJECTS 400 400 - 0% 400 - 0% 42253 - IMPROVEMENT INSPECTION FEE 7,000 7,000 - 0% 30,000 23,000 329% TOTAL COMMUNITY DEVELOPMENT 1,735,605 1,735,605 - 0% 1,824,705 89,100 5%

FINANCE
40301 - BUSINESS LICENSE TAX 385,000 385,000 - 0% 425,000 40,000 10% 42001 - MASSAGE PERMIT 4,000 4,000 - 0% 4,000 - 0%
42002 - SOLICTATION PERMIT 11,000 11,000 - 0% 11,000 - 0% 42750 - BUSINESS LIC. PENALTY 16,000 16,000 - 0% 16,000 - 0% TOTAL FINANCE 416,000 416,000 - 0% 456,000 40,000 10%
POLICE
42051 - ALARM PERMIT 48,000 48,000 - 0% 48,000 - 0%
42500 - TOW SERVICE FEES 80,000 80,000 - 0% 80,000 - 0% 42501 - TOW HEARING FEE (ADMIN) 1,500 1,500 - 0% 1,500 - 0% 42502 - IMPOUNDED VEHICLE RECORDS FEE 34,250 34,250 - 0% 34,250 - 0% 42503 - COURT ORDERED RESTITUTION 2,000 2,000 - 0% 2,000 - 0% 42504 - FINGERPRINT FEE 3,000 3,000 - 0% 3,000 - 0%
42702 - CITY CODE FINES/PARKING 300,000 300,000 - 0% 300,000 - 0% 42753 - FALSE ALARM PENALTY 35,000 35,000 - 0% 35,000 - 0% 43000 - P.O.S.T. 5,000 5,000 - 0% 5,000 - 0%
45001 - POLICE AUCTIONS 1,000 1,000 - 0% 1,000 - 0%
45004 - COPY SALES 18,000 18,000 - 0% 18,000 - 0%
45101 - RNSP REIMBURSEMENT - - - N/A - - N/A
45102 - AB109 REIMBURSEMENTS 11,000 11,000 - 0% 11,000 - 0% 45105 - BSCC FUNDING(REIMB) - - - N/A - - N/A
45200 - RECOVERY OF EXPENSE 2,000 2,000 - 0% 2,000 - 0% TOTAL POLICE 540,750 540,750 - 0% 540,750 - 0%

PUBLIC WORKS
42030 - EXCAVATION PERMIT 200,000 200,000 - 0% 200,000 - 0% 42031 - MOVING PERMIT 5,000 5,000 - 0% 5,000 - 0%
42033 - OTHER PERMITS/MISC. 5,000 5,000 - 0% 5,000 - 0% 42300 - FINAL MAP CHECK FEE 3,540 3,540 - 0% 3,540 - 0% 42301 - EASEMENT FEES - - - N/A - - N/A
42302 - IMPROVEMENT PLAN CHECK 135,000 135,000 - 0% 115,000 (20,000) -15% 42303 - WATER QUALITY MGMT-PLAN REVIEW 100,000 100,000 - 0% 65,000 (35,000) -35% 42304 - IMPROVEMENT INSPECTION FEE 145,000 145,000 - 0% 90,000 (55,000) -38% 42305 - WATER QUALITY MGMT-INSPECTION - - - N/A - - N/A 42306 - LANDSCAPE INSPECTION FEE 10,000 10,000 - 0% 5,000 (5,000) -50% 42307 - TREE REMOVAL/REPLACE. FEE 12,500 12,500 - 0% 12,500 - 0% 42308 - MEMORIAL TREE BENCH&PLAQUE PGM 1,000 1,000 - 0% 1,000 - 0% 42309 - MISC ENG & OTHER FEES 80,600 80,600 - 0% 1,000 (79,600) -99% 42310 - STORM WATER PREVENTION FEE 120,000 120,000 - 0% 120,000 - 0% 25

REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year %
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL
42311 - MEDIAN FEES 1,500 1,500 - 0% 1,500 - 0%
TOTAL PUBLIC WORKS 819,140 819,140 - 0% 624,540 (194,600) -24% FIRE
42050 - FIRE PERMIT 105,000 105,000 - 0% 105,000 - 0%
42400 - PARAMEDIC SUBSCRIPTION FEE 130,000 130,000 - 0% 130,000 - 0% 42402 - FPB RE-INSPECTION FEE 100,000 100,000 - 0% 100,000 - 0% 42403 - PLAN CHECKS/PERMITS 90,000 90,000 - 0% 90,000 - 0% 42406 - PARAMEDIC IMPACT PAYMENT 203,000 203,000 - 0% 203,000 - 0% 42407 - HAZARD MATERIALS FEES 78,000 58,000 (20,000) -26% 58,000 (20,000) -26% 42409 - OC PROP. FIRE PROTECT FEE 19,000 19,000 - 0% 19,000 - 0% 42410 - EMS REVENUE 2,435,997 2,435,997 - 0% 2,454,855 18,858 1% 42411 - QAF REVENUE 132,000 132,000 132,000 - 0%
42753 - FALSE ALARM PENALTY 7,500 7,500 - 0% 7,500 - 0% 45200 - RECOVERY OF EXPENSE 385,601 385,601 - 0% 385,601 - 0% TOTAL FIRE 3,686,098 3,666,098 (20,000) -1% 3,684,956 (1,142) 0%

RECREATION & COMMUNITY SERVICES
41510 - COMM CENTER ROOM RENTS 60,000 60,000 - 0% 70,000 10,000 17% 41511 - REC CENTER ROOM RENTS 30,000 30,000 - 0% 50,000 20,000 67% 41512 - FIELD LIGHTING 20,000 20,000 - 0% 39,636 19,636 98% 41513 - BALL FIELD RENTS 160,000 160,000 - 0% 200,000 40,000 25% 41514 - TENNIS COURTS RENTS 35,000 35,000 - 0% 63,600 28,600 82% 42600 - DROP IN FEE - SR. FITNESS 9,000 9,000 - 0% 7,000 (2,000) -22% 42602 - NEWSLETTER-SENIORS 8,500 8,500 - 0% 11,500 3,000 35% 42603 - SENIOR TRANSP PROG -RIDER FEES 25,000 25,000 - 0% 20,000 (5,000) -20% 42650 - CONTRACT PROGRAM FEES 100,000 100,000 - 0% 90,000 (10,000) -10% 42651 - ATHLETIC FEES 75,000 75,000 - 0% 75,000 - 0%
42654 - FAMILY CAMPOUT - - - 0% 1,000 1,000 N/A
42655 - FOUNTAIN VALLEY SUMMERFEST 60,000 60,000 - 0% 60,000 - 0% 42658 - SPECIAL EVENTS 50,250 50,250 - 0% 60,000 9,750 19% 42657 - CITY ADVERTISING 3,000 3,000 - 0% 3,000 - 0%
44500 - DONATIONS 67,000 67,000 - 0% 65,000 (2,000) -3% 44505 - SENIOR TRANSP PROG - OCMMC DON 20,000 20,000 - 0% 20,000 - 0% 44506 - FV COMMTY FOUNDATION DONATION 4,000 4,000 - 0% 4,000 - 0% 45103 - RESIDUAL RECEIPTS - SUMMERFEST 10,000 10,000 - 0% 10,000 - 0% 45104 - FV COMMUNITY FOUNDATION REIMB 15,000 15,000 - 0% 15,000 - 0% 45106 - OTHER CONCESSIONS 14,000 14,000 - 0% 6,800 (7,200) -51% 45300 - MISC OTHER INCOME - - - 0% 5,000 5,000 N/A
TOTAL RECREATION & COMMUNITY SERVICES 765,750 765,750 - 0% 876,536 110,786 14% Total Functional Revenues 7,963,343 7,943,343 (20,000) (0) 8,007,487 44,144 0 Total General Fund Revenues 70,419,130 70,399,130 (20,000) 0% 73,332,325 2,913,195 4% 26

Department
Personnel
Expense
Internal
Service
Allocation
Operating
Expense Total
Administration
City Council 81,691 53,714 20,000 155,405
City Manager 285,293 71,125 498,410 854,828
Administrative Services 307,082 54,692 153,600 515,374
Total Administration 674,066 179,531 672,010 1,525,607
City Clerk
Records Management 128,556 65,906 16,500 210,962
Elections 16,132 9,595 50,000 75,727
Total City Clerk 144,688 75,501 66,500 286,689
Finance
Financial Plan/Control 990,256 282,476 443,920 1,716,652 Purchasing 206,285 - 82,085 288,370
Business License 30,003 9,001 82,100 121,104
Total Finance 1,226,544 291,477 608,105 2,126,126
Human Resources
Employee Relations 818,513 77,878 508,200 1,404,591
Total Human Resources 818,513 77,878 508,200 1,404,591
Community Development
Planning 651,856 127,242 257,555 1,036,653
Building 751,324 61,762 241,250 1,054,336
Total 1,403,180 189,004 498,805 2,090,989
Public Works
Engineering 384,447 250,045 399,645 1,034,137
Traffic Engineering 266,532 106,976 6,015 379,523
Construction Inspection 196,201 75,623 25,380 297,204
Street Lighting 25,614 11,652 295,000 332,266
Total Public Works 872,794 444,296 726,040 2,043,130
Field Services
Right of Way 180,882 123,508 450,841 755,231
Tree Maintenance 99,231 109,449 366,280 574,960
Park Maintenance 258,327 118,398 630,118 1,006,843
Concrete Maintenance 302,787 200,401 3,300 506,488
Pavement Maintenance 314,583 208,179 31,600 554,362
Storm Drain Maintenance 508,473 75,568 22,700 606,741
Traffic Control Maintenance 212,905 181,878 91,200 485,983 Street Sweeping 22,642 20,415 383,285 426,342
Recreation Center 131,182 309,901 667,730 1,108,813
Graffiti Removal 242,309 107,886 10,200 360,395
Total Field Services 2,273,321 1,455,583 2,657,254 6,386,158 Fire
Fire Suppression 5,463,141 907,339 582,598 6,953,078
Paramedics 3,609,289 357,689 10,820 3,977,798
Fire Prevention 666,980 84,223 58,645 809,848

GENERAL FUND OPERATING EXPENDITURES
27

Department
Personnel
Expense
Internal
Service
Allocation
Operating
Expense Total

GENERAL FUND OPERATING EXPENDITURES
Fire Reserves 93,077 663 9,485 103,225
Disaster Prep 137,857 30,067 9,710 177,634
Hazardous Materials 119,214 21,209 9,135 149,558
F.I.R.S.T. 35,470 6,468 3,540 45,478
Ambulance 110,697 - 1,506,335 1,617,032
Total Fire 10,235,725 1,407,658 2,190,268 13,833,651
Police
Patrol 8,840,537 1,607,812 544,698 10,993,047
S.W.A.T. 85,340 21,586 11,000 117,926
Canine 393,847 106,463 19,620 519,930
Traffic 789,682 234,649 305,030 1,329,361
Investigation 3,230,677 555,981 113,104 3,899,762
Communications 1,230,268 144,700 11,000 1,385,968
Records Management 644,659 234,131 22,812 901,602
Range - 4,638 24,768 29,406
Crime Prevention 133,355 26,250 15,530 175,135
Total Police 15,348,365 2,936,210 1,067,562 19,352,137
Community Services
Athletics 153,150 254,908 55,960 464,018
Field Operations 173,892 125,935 12,000 311,827
Annual Festivals 28,570 2,764 50,000 81,334
Aquatics - - - - Park Patrol 74,936 35,207 4,450 114,593 Recreation Center 273,362 306,714 18,350 598,426
Community & Senior Center 408,123 301,122 15,700 724,945 Contract Classes 168,893 129,497 57,200 355,590
Special Events 141,811 139,352 63,250 344,413
Senior Transportation 26,995 - 103,500 130,495
Total Community Services 1,449,732 1,295,499 380,410 3,125,641 Grand Total 34,446,928 8,352,637 9,375,154 52,174,719
28

GENERAL FUND & INTERNAL SERVICE FUND BALANCE SUMMARY
2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 Projected Budget Projected Budget Projected Budget Projected Budget Beginning Fund Balance 57,506,069 71,245,025 3,360,512 2,133,533 3,221,340 2,590,635 6,872,729 3,834,835 Revenues
Operating Revenue 59,899,811 62,611,248
Charges to Departments (ISF) - 1,691,422 - 1,950,219 2,094,090 2,912,359 1,856,331 2,374,184 Functional Revenue 7,882,743 8,007,486
Grants/Projects 1,174,062 2,070,409
ARPA 7,952,893
Transfers In 563,926 643,181 392,406 - 191,992 - 65,000 - Total Revenues 77,473,435 73,332,324 1,691,422 2,342,625 2,094,090 3,104,351 1,856,331 2,439,184 Expenditures
Operating 46,891,385 54,019,736 2,918,579 3,676,158 2,724,795 3,944,986 4,894,225 3,539,018 Capital (Inc. OCTA Reimbursable) 1,523,944 10,260,156
CalPERS UAL Funding/OPEB Trust 3,000,000 3,000,000
Debt Service 1,092,492 1,097,828
Transfer Out - Emp. Benefit 9,152,622 9,792,930
Transfer Out - Gas Tax/Other 2,074,036 2,175,668 -
Sub Total Expenditures 63,734,479 80,346,318 2,918,579 3,676,158 2,724,795 3,944,986 4,894,225 3,539,018 Fire Apparatus Reserve - - - - - - 777,949
Ending Fund Balance 71,245,025 64,231,031 2,133,355 800,000 2,590,635 1,750,000 3,834,835 1,957,052 General Fund Information Services Government Buildings Fleet Management 29

Beginning Fund Balance
Revenues
Operating Revenue
Charges to Departments (ISF)
Functional Revenue
Grants/Projects
ARPA
Transfers In
Total Revenues
Expenditures
Operating
Capital (Inc. OCTA Reimbursable)
CalPERS UAL Funding/OPEB Trust
Debt Service
Transfer Out - Emp. Benefit
Transfer Out - Gas Tax/Other
Sub Total Expenditures
Fire Apparatus Reserve
Ending Fund Balance

GENERAL FUND & INTERNAL SERVICE FUND BALANCE SUMMARY
2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 Projected Budget Projected Budget Projected Budget Projected Budget 931,227 931,227 772,567 4,988,113 1,586,817 2,080,893 74,251,261 87,804,261 59,899,811 62,611,248
161,243 290,916 2,559,288 3,254,333 10,676,367 11,226,740 19,038,742 22,008,751 7,882,743 8,007,486
1,174,062 2,070,409
49,001 - - 9,963,750 10,652,982 10,527,676 11,994,562
161,243 339,917 2,559,288 3,254,333 20,640,117 21,879,722 98,523,034 106,692,456 441,186 471,144 2,929,356 3,393,501 20,820,117 21,797,278 81,619,643 90,841,821 1,523,944 10,260,156
3,000,000 3,000,000
1,092,492 1,097,828
- 9,152,622 9,792,930
- 633,399 2,074,036 2,809,067
441,186 471,144 2,929,356 4,026,900 20,820,117 21,797,278 98,462,737 117,801,802 - - - - - - - 777,949
651,284 800,000 402,499 4,215,546 1,406,817 2,163,337 74,311,557 75,916,966 Capital Equipment Self Insurance Employee Benefits All Funds 30

Transfers Out
General Fund (100)
Gas Tax (240)
Traffic Improv.
(242)
Drainage
(340)
Water Fund (500)
Info Tech (110)
ISF Govt. Bldg
(111)
ISF Fleet (112)
ISF Capital
(113)
ISF Self Ins. (114)
ISF Benefits (115) Total
General Fund (100) Gas Tax Fund 672,840 672,840
IS - Employee Benefit Fund 9,792,930 9,792,930
Drainage Fund 405,000 405,000
Total General Fund 10,870,770 - 672,840 - 405,000 - - - - - - 9,792,930 10,870,770 Self Insurance Fund
Self Insurance 633,399 392,406 191,992 49,001
Total Criminal Diversion 633,399 - - - - - 191,992 - - - 191,992 Road Maintenance & Rehabilitation (241)
Traffic Improvement Fund 1,260,842 630,421 630,421
Traffic Improvement Fund -
Total Road Maintenance & Rehabilitation 1,260,842 - 630,421 630,421 - - - - - - 1,260,842 Gas Tax Fund (240) General Fund 495,043 495,043
Total Gas Tax Fund 495,043 495,043 - - - - - - - - 495,043 Measure M2 Fund (243) General Fund 85,533 85,533
Traffic Improvement Fund 3,027,580 3,027,580
Total Measure M2 Fund 3,113,113 85,533 - 3,027,580 - - - - - - 3,113,113 Pollution Reduction Fund (244)
IS - Fleet 65,000 65,000
Total Pollution Reduction Fund 65,000 - - - - - - 65,000 - - 65,000 Sewer Assessment Fund (501) General Fund 62,605 62,605 Gas Tax Fund 30,000 30,000 Traffic Improvement 30,000 30,000
IS - Employee Benefit Fund 147,416 147,416
Total Sewer Assessment Fund 270,021 62,605 30,000 30,000 - - - - - 147,416 270,021 Water Utility Fund (500) Gas Tax Fund 40,000 40,000 Traffic Improvement 25,000 25,000
IS - Employee Benefit Fund 712,636 712,636
Total Water Utility Fund 777,636 - 40,000 25,000 - - - - - 712,636 777,636 Total All Funds 17,485,824 643,181 1,373,261 3,713,001 405,000 - 191,992 65,000 - 10,652,982 17,044,417 Transfers In

FUND TRANSFERS IN & OUT DETAIL
31

FY 2021-22 FY 2022-23
Fund FY 2021-22 Estimated Estimated
Account No. Account Description Funding Source Budget Actual (Rev)/Exp. Cont. Approp. 100 General Fund
1002218007 Sports Park Outbuilding(Interior ADA) Measure HH 500,000 18,200 481,800 1002216103 Fire Station No. 1 Remodel Design Measure HH 1,000,000 33,418 966,582 1001917002 Police Locker Room/Showers Remodel Measure HH 2,966,251 360,200 2,606,051 1001918101 Recreation Center Interior Remodel 98 TAB Proceeds 611,842 603,927 7,915 1002210004 City Hall Interior Remodel 98 TAB Proceeds 250,000 25,742 224,258 1002280101 All Accessable Playground Equipment at the Sports Park General Fund/Grants/Park Fee 1,000,000 23,418 976,582 1002280002 Sports Park Road Network Rehab Measure HH 650,000 41,900 608,100 1001722001 I-405 Improvement OCTA 976,265 375,230 601,035 1001722001 I-405 Improvement OCTA Reimbursed (976,265) (375,230) (601,035) 1002223005 Harbor Median Irrigation General Fund 500,000 - 500,000 1001803001 General Plan Update Economic Development 1,098,439 199,355 899,084 1002103001 General Plan Update - SB2 Planning Grant Grant 100,748 99,748 1,000 1002103001 State Grant - SB2 Grant Reimbursed (100,748) (99,748) (1,000) 1002103002 General Plan Update - LEAP Grant Grant 60,267 59,267 1,000 1002103002 State Grant - LEAP Grant Reimbursed (60,267) (59,267) (1,000) Total General Fund 8,576,532 1,306,160 7,270,372
270 Criminal Diversion

15.3.71782.2.3422 Federal Grant - 21/22 OTS Step (50,000) (8,000) (42,000) 15.4.71782.1.4323 Overtime - Sworn 43,950 8,000 35,950

15.4.71782.3.4463 Educational Meeting 2,725 - 2,725

15.4.71782.5.4849 Misc. Equipment 3,325 - 3,325
Total Criminal Diversion Fund - - 230 CDBG
2302203001 Mortgage Assistant (MAG) Grant 100,000 - 100,000 Total CDBG Fund 100,000 - 100,000
242 Trafic Improvement Fund
2422125002 (8)Traffic Signal Mod. Improvements 2,596,790 121,581 2,475,209 2422221006 Heil -Euclid/Harbor & Ward -Edinger/NCL 120,000 120,000 - 2422225004 Traffic Signal Controllers Citywide 400,000 - 400,000 2422225005 Euclid/Condor & Talbert/Bushard Signal Mod. 80,000 - 80,000 2422225103 Magnolia Traffic Signal Synchronization 50,000 - 50,000 2422225107 Talbert Traffic Signal Synchronization 85,000 - 85,000 2422225108 Warner Traffic Signal Synchronization 85,000 - 85,000 2422225109 Edinger Traffic Signal Synchronization 65,000 - 65,000 Total Traffic Improvement Fund 3,481,790 241,581 3,240,209 340 Drainage Fund
3402130101 Talbert Channel Storm Drain 150,000 9,119 140,881 Total Drainage Fund 150,000 9,119 140,881
501 Sewer Utility 5012222004 OCTA Utilities Relocation Agreement (23,195) - (23,195) 5012222004 I-405 Utilities Facilities Relocation - UK031024 23,195 - 23,195 Total Sewer Fund - - - 112 Fleet ISF
Police Patrol Vehicles + Outfitting 186,000 - 186,000
Arrow XT PUC Fire Engine 847,419 - 847,419
Total Fleet ISF 1,033,419 - 1,033,419
500 Water Utility 5002154001 Hydrogeological/Well Rehabilitation Consultant 128,467 53,467 75,000 5002205008 Water Master Plan 350,000 - 350,000
5002250006 Mt. Baldy/Euclid Pipeline Replacement 282,000 41,870 240,130 5002254101 Well Site No. 6 300,000 - 300,000
5002254202 Well Site No. 8 800,000 - 800,000
5002254504 Well Site No. 11 900,000 - 900,000
5001722001 - 5002022005 I-405 Utilities Facilities Relocation 267,599 80,000 187,599 Total Water Fund 3,028,066 175,337 2,852,729
Total All Funds 16,369,807 1,732,197 14,637,610

ESTIMATED CONTINUING APPROPRIATIONS
32

General Fund Balance Analysis 2021-22
Estimated Beginning Fund Balance 7/1/21 57,506,068
21-22
Revenues
Operating Revenues 67,782,554
Miscellaneous Reimbursements/Grants 1,174,062
Transfers-In 563,926
ARPA 7,952,893
Total Revenues 77,473,435
Expenditures
Operating 48,298,421
Debt Service 1,092,492
Transfers Out 9,819,622
CalPERS UAL - Additional Funding 3,000,000
Capital Rebudgets (includes Continuing Appropriations) 1,523,944 Total Expenditures 63,734,479
Budget Position 13,738,956
Projected Fund Balance 6/30/22 71,245,024

GENERAL FUND BALANCE DESIGNATIONS (PROJECTED)
34

FY 2022-23 General Fund Operating Budget
Revenues
General Revenues 64,681,657
Functional Revenues 8,007,487
Transfers In 643,181
Total Operating Revenues 73,332,325
Expenditures
Salaries & Benefits 33,964,206
Internal Service Charges 8,352,637
Maintenance & Operations 15,800,721
Debt Service 1,097,828
Transfers-Out 10,870,770
Total Operating Expenditures 70,086,162
Operating Income/(Deficit) All Operating 3,246,163

GENERAL FUND OPERATING REVENUE & EXPENSE ANALYSIS
35

CITY OF FOUNTAIN VALLEY

SCHEDULE OF MEASURE HH REVENUES AND EXPENDITURES
Budgeted Fiscal Year Ended June 30, 2023
Measure HH Revenues $ 16,153,000
Measure HH Expenditures:

Reoccurring Expenses Incurred on Essential City Services 11,813,650 One-Time Expenses (Additional Pension Paydown) 3,000,000 Financial Stewardship: Reserves Set-Aside in 22-23 $ 1,339,350 Measure HH provided necessary funding in Fiscal Year 2022/23 that was used for the following in accordance with the Responsible Spending Pledge:

Reoccurring Expenses Incurred on Essential City Services:

Public Safety
Maintain 911 Emergency Response Times & Keep Fire Station No. 2 open1 2,457,886
Fire Safety Salaries 886,976
Police and Fire Pension Costs that are Legally Required to be Paid to CalPERS and Principal and Interest on the Safety Pension Obligation Bonds2 3,451,596
Total Public Safety 6,796,458 Senior & Youth Programs
Amount associated with the cost to keep the Recreation Center, Community Center & Senior Center open3
2,325,750
Employee Retention
Salary and benefit increases4
- City's Outstanding Debt -Pay Down/Pay off, including Unfunded Liabilities Miscellaneous Employee Pension Costs that are Legally Required to be Paid to CalPERS 2,116,442 and Principal and Interest on the Miscellaneous Pension Obligation Bonds2 Capital Improvements
Includes $375,000 for residential road rehabilitation and $200,000 for park improvments 575,000 Total Reoccurring Expenses5
11,813,650
One-Time Expenses:

Additional Payment to CalPERS towards unfunded pension liabilities 3,000,000 Reserves Set-Aside in 22-23:

Pension Reserves
2022-23 Contribution to Pension Trust Fund -
Increase in Reserves 1,339,350
Capital Reserves - Transfer to Fleet Management Internal Service Fund Set-aside for Fire Apparatus - Total Reserves Set-Aside in 22-23 1,339,350 36

1 - Without Measure HH, staff would have faced the challenge of closing Fire Station No. 2, which would have been a gradual process spanning multiple years. The total cost attributable to 14-full-time equivalents (FTEs) within various classifications assigned to Fire Station No. 2 is $2,457,886 Approximately 100% of the staffing cost attributable to Fire Station No. 2 has been identified as being funded from Measure HH, which equates to $2,457,886. In addition to the staffing costs of Fire Station No. 2, an additional $886,976 of Fire safety personnel expenses has been identified as being funded from Measure HH.
2 - Historically, pensions were funded over a rolling 30 year period in accordance with CalPERS funding policy. In 2013 CalPERS approved a change to pension funding, which resulted in shorter amortizations and significant increases in amounts required to be paid to CalPERS beginning in Fiscal Year 2015-16.

The City's annual pension expense was approximately $5 million through Fiscal Year 2015-16, which included payments of $1,606,319 and $836,411, respectively, for police/fire and miscellaneous employee pension costs for services rendered in prior years (excluding "normal cost" related to the accrual of benefits earned in the current year). In 2022-23, the total projected expense for police/fire and miscellaneous pension costs for services rendered in prior years is $8,010,769 ($5,568,038 over the base year), which includes principal and interest expense paid on Pension Obligation Bonds. Approximately $3,451,596 of the increase is for the police/fire pension costs and $2,116,442 is for miscellaneous employee pension costs.

The total increase of $5,568,038 in pension expense over the base year has been attributed to Measure HH.
3 - The Recreation and Community Services Department generally provides services that benefit the community as whole. Therefore, user fees and revenues generated by the Recreation and Community Services Department generally do not cover the full cost of programs. Therefore, the General Fund subsidizes the difference. The General Fund subsidy is estimated at approximately $2,325,750 in Fiscal Year 2022-23. Approximately 100% of the General Fund subsidy has been identified as being funded from Measure HH, which equates to approximately $2,325,750. 4 - Measure HH was approved by the community to allow for continuous operating and improvement of essential City services. In response to the community needs, the City Council approved negotiated adjustments to salaries and benefits for various classifications. 5 - General Fund operating revenues are projected to be $71,020,512 and operating expenditures are projected at $66,681,162 (excluding Pension Trust contributions and additional payments to CalPERS).

The net operating surplus is projected to be $4,339,350. Without Measure HH, the General Fund would have had an operating deficit of $11,813,650. Therefore, this amount has been identified as being funded from Measure HH, which has been used for recurring essential City services.

Short-Term/
Long-Term
Cumulative Measure HH Reserves Targeted % Funded by
Reserves Set-Aside at 6/30/23* Reserve Measure HH
OPEB Trust Reserves 2,602,213 16,243,529 $10-30 Million 16% Pension Trust Reserves 13,888,570 13,888,570 $10-30 Million 100% Emergency Reserves 4,903,421 17,601,655 55% Sales Tx Rev 28% Capital Reserves 22,562,854 28,300,577 $10-15 Million 80% Fire Apparatus Reserves 0 0 $2 Million 0%
43,957,058
* Including Measure HH and non-HH reserves set-aside and related investment income. 37

Issuance Total Outstanding
Date Type of Long Term Debt Debt as of 06/30/22
2014 Series 2014A Revenue Bonds - Water Enterprise Fund 9,955,000 2015 Series 2015A Taxable Pension Obligation Bonds 13,595,000 2016 Series 2016A Lease Revenue Bonds 10,150,000
2017 Clean Renewable Energy Bonds 2,393,871
Total Outstanding City Long Term Debt $36,093,871

DEBT SERVICE ADMINISTRATION
As of June 30th, 2022 The City of Fountain Valley and the Successor Agency had a combined total of $36,093,871 of outstanding Long Term Debt. The debt covers Governmental Activities and Business-Type Activities, which includes Revenue Bonds, Pension Obligation Bonds, Certificates of Participation and Clean Renewable Energy Bonds. A schedule of each outstanding long-term debt, as of June 30th, 2022 is listed below. 38

CITYWIDE
Mission Statement
The City of Fountain Valley delivers cost-effective quality public services to provide a safe and desirable community that enriches its residents and businesses.

Organizational Chart
Citizens of Fountain Valley
Mayor & City
Council
City Committees/
Advisory Boards
Attorney for the
City
City Manager
Public
Works
Engineering
Field
Services
Planning &
Building
Planning
Code
Enforcement
Building
Housing &
Community
Development
Administration
(City Manager)
Administration
City Clerk
Information
Services
Police
Support
Services
Patrol
Division
Fire
Administration
Operation
s
Prevention
Finance
Fiscal
Services
Purchasing
Customer
Service
Human
Resources
Employee &
Labor
Relations
Employee
Services
Recruitment
& Selection
Plan
Recreation &
Community
Services
Recreation
Services
Community
Services
Human &
Senior
Services
39

FTE by Department/Division FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Administration 8.5 8.5 8.0 8.0
Community Development 8.0 8.0 13.0 14.0
Finance 9.75 9.75 9.75 10.75
Fire Department 46.0 46.0 46.0 46.0
Human Resources 4.75 4.75 5.75 6.00
Police Department 87.0 87.0 87.0 87.0
Public Works (All) 54.0 54.0 59.0 61.0
Recreation & Community Services 6.0 6.0 6.0 6.0
Total FTE by Department/Division 224.00 224.0 234.5 238.75 Administration
City Manager 1.0 1.0 1.0 1.0
Deputy City Manager 0.0 1.0 1.0 1.0
Assistant to the City Manager 1.0 0.0 0.0 0.0
Management Aide 0.5 0.5 1.0 1.0
Executive Assistant to CM 1.0 1.0 0.0 0.0
City Clerk Administrator 1.0 1.0 1.0 1.0
Information Systems Manager 1.0 1.0 1.0 1.0
Lead Information Systems Technician 0.0 1.0 1.0 1.0
Information Systems Technicians 3.0 2.0 2.0 2.0
Total Administration 8.5 8.5 8.0 8.0
Community Development
Planning & Building Manager 1.0 1.0 1.0 1.0
Planner 1.0 1.0 1.0 1.0
Administrative Assistant/ Secretary 1.0 1.0 1.0 1.0
Code Enforcement Officer 1.0 1.0 1.0 2.0
Housing Coordinator 1.0 1.0 1.0 1.0
Housing Analyst/ Technician 1.0 1.0 1.0 1.0
Assistant Planner 1.0 1.0 1.0 1.0
Senior Planner 1.0 1.0 1.0 1.0
Building Official 0.0 0.0 1.0 1.0
Building Inspector 0.0 0.0 2.0 2.0
Permit Technicians 0.0 0.0 2.0 2.0
Total Community Development 8.00 8.00 13.0 14.0
Finance
Finance Director 1.0 1.0 1.0 1.0
Accounting Manager 1.0 1.0 1.0 1.0
Budget Analyst 1.0 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0 2.0
Accountant 0.75 0.75 0.75 0.75
Accounting Technician II/ CSR Lead 1.0 1.0 1.0 1.0
Accounting Technician II/ CSR 2.0 2.0 2.0 2.0
Accounting Technician I 1.0 1.0 1.0 1.0

AUTHORIZED PERSONNEL LIST
40

FTE by Department/Division FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed

AUTHORIZED PERSONNEL LIST
Secretary 1.0 1.0 1.0 1.0
Total Finance 9.75 9.75 9.75 10.75
Fire
Fire Chief 1.0 1.0 1.0 1.0
Division Chief 0.0 0.0 1.0 1.0
Battalion Chief 3.0 3.0 2.0 2.0
Administrative Assistant 0.0 0.0 1.0 1.0
Fire Marshal/ Deputy Fire Marshal 1.0 1.0 1.0 1.0
Emergency Services Manager 1.0 1.0 1.0 1.0
Administrative Training Captain 1.0 1.0 1.0 1.0
Fire Captain 9.0 9.0 9.0 9.0
Fire Engineer 9.0 9.0 9.0 9.0
Firefighter/ Paramedic 18.0 18.0 18.0 18.0
Management Aide 2.0 2.0 1.0 1.0
Fire Prevention Analyst 1.0 1.0 1.0 1.0
Total Fire 46.0 46.0 46.0 46.0
Human Resources
Human Resources Director 1.0 1.0 1.0 1.0
Principal HR Analyst 0.0 0.0 1.0 0.0
HR Manager 0.0 0.0 0.0 1.0
Senior Human Resources Analyst 1.0 1.0 0.0 1.0
Human Resources Analyst 0.0 0.0 2.0 2.0
Human Resources Technician 0.75 0.75 0.75 1.00
Safety & HR Specialist 0.0 1.0 1.0 0.0
Department Secretary 1.0 0.0 0.0 0.0
Management Aide 1.0 1.0 0.0 0.0
Total Human Resources 4.75 4.75 5.75 6.00
Police
Police Chief 1.0 1.0 1.0 1.0
Secretary 2.0 2.0 2.0 2.0
Crime Analyst 1.0 1.0 1.0 1.0
Captain 2.0 2.0 2.0 2.0
Lieutenant 3.0 3.0 3.0 3.0
Sergeant 10.0 10.0 10.0 10.0
Senior Police Officer 9.0 9.0 9.0 9.0
Police Officer 39.0 39.0 39.0 39.0
Laboratory 1.0 1.0 1.0 1.0
Support Services Manager 1.0 1.0 1.0 1.0
Support Services Supervisor 1.0 1.0 1.0 1.0
Police Records 3.5 3.5 3.5 3.5
Police Dispatch 9.5 9.5 9.5 9.5
Community Services Officer 4.0 4.0 4.0 4.0
41

FTE by Department/Division FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed

AUTHORIZED PERSONNEL LIST
Total Police 87.0 87.0 87.0 87.0
Public Works
Director of Public Works 1.0 1.0 1.0 1.0
Administrative Assist./ Secretary 1.0 1.0 1.0 1.0
Deputy Director of PW/ City Engineer 1.0 1.0 1.0 1.0
Management Aide 1.0 1.0 1.0 2.0
Environmental Services Administrator 1.0 1.0 1.0 1.0
Engineering Associate 2.0 2.0 2.0 2.0
Assistant Engineer 0.0 0.0 0.0 1.0
Engineering Techn III 2.0 2.0 2.0 2.0
Public Works Inspector 1.0 1.0 1.0 1.0
Field Services Manager 1.0 1.0 1.0 1.0
Administrative Specialist 1.0 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0 0.0
SR. Management Analyst 0.0 0.0 0.0 1.0
Internal Services Supervisor 1.0 1.0 1.0 1.0
Public Services Supervisor 1.0 1.0 1.0 1.0
Landscape Inspector 1.0 1.0 1.0 1.0
Foreman 4.0 4.0 4.0 3.0
Landscape Inspector 0.0 0.0 0.0 1.0
Equipment Operator I & II 1.0 1.0 1.0 1.0
Irrigation Technician 2.0 2.0 2.0 2.0
Maintenance Worker II 11.0 11.0 11.0 11.0
Mechanic 3.0 3.0 3.0 3.0
Water Supervisor 2.0 2.0 2.0 2.0
Foreman 1.0 1.0 1.0 1.0
Water Quality Technician 1.0 1.0 1.0 1.0
Equipment Operator Non-Certified 1.0 1.0 1.0 1.0
Water Systems Operator 3.0 3.0 3.0 2.0
Water Foreman 0.0 0.0 0.0 1.0
Maintenance Worker II 8.0 8.0 8.0 8.0
Maintenance Worker II Non-Certified 1.0 1.0 1.0 1.0
Sewer/ Storm Drain Supervisor 1.0 1.0 1.0 1.0
Equipment Operator- Storm Drains 1.0 1.0 1.0 1.0
Equipment Operator- Sewer 1.0 1.0 1.0 1.0
Maintenance Worker II- Sewers/ Storm 2.0 2.0 2.0 2.0
Total Public Works 54.0 54.0 59.0 61.0
Recreation & Community Services
Community Services Director 1.0 1.0 1.0 1.0
Community Services Manager 2.0 2.0 2.0 2.0
Community Services Supervisor 1.0 1.0 2.0 2.0
Recreation Coordinator 2.0 2.0 1.0 1.0
Total Recreation & Community Services 6.0 6.0 6.0 6.0
42

ADMINISTRATION
Administration
City Manager
City Clerk
Records
Management
Council Meetings
Elections
Risk Management
Information
Services
Citywide Network
& Computer
Support
Telephone System
Support
Website Support
Administrative
Services
Economic
Development
Public Relations
Legislative
Special Projects
Mission Statement
Organizational Chart
The mission of the City Manager’s Office is to support and enhance the high quality of living in Fountain Valley. This is accomplished through the implementation of City Council Policies, investing in appropriate level of cost effective services and exercising innovation while respecting the community’s traditional values of our business and residents.
43

The City of Fountain Valley’s Administration
Department is comprised of the legislative and
administrative branches of City government. The City
Council is elected at large by the citizens of Fountain Valley and functions as the legislative branch of the
City by developing public policies, approving
programs and allocating financial resources to meet
the needs of the City.

The City Manager is the chief administrative officer of the City and is responsible for the dayto-day activities of all City departments. City Manager interacts with the City Council on matters of policy and procedure, and responds to local issues concerning public safety, community service, transportation, economic development, and other issues that affect quality of life for the citizens of Fountain Valley.

The Administration Department also includes Economic Development, Information Services and the Office of the City Clerk. Economic
Development is responsible for promoting local
businesses, intergovernmental relations, and public
information. Information Services manages all
computer, telephone, website and video surveillance
systems utilized by the City. The Office of the City
Clerk serves as the primary custodian of records for
the City, coordinates the agenda and public noticing
of all public meetings, administers the election
process in accordance with statutory regulations and
serves as the City’s Risk Manager.

FY 2021/22 ACCOMPLISHMENTS
Assisted with General Plan Update and General Plan Advisory Committee Assisted with short-term rentals option for City Council consideration Assisted with the code amendment for alternative hotel development standards that encourage quality hotel development 44

Worked with Community Services Director on a revised Community Access Rental Program.

Completed eight labor Memorandum of Understandings in July 2022 Accepted $200,000 CARES Program Funding from the County of Orange to Provide Economic Support for an Outdoor Dining Program for Local Businesses and awarded $200,000 grant to U.S. Millennium LLP
Awarded lease agreement to Outfront Media LLC for dual digital billboard at City reservoir (10955 Ellis Avenue) and generated $30,433,538 including one-time payment for a 30-year term
Assisted with Fountain Valley Chamber of Commerce Explore Fountain Valley commercial centers to promote local businesses.

Maintained ongoing communications related to COVID-19 pandemic and circulated up to date information to the community and businesses via newsletter, website, and social media platforms including Nextdoor.

Assisted businesses with grants at local, state and federal levels with constant communications via email, telephone and website.

Revamped Mayor’s Breakfast to update the community on City programs and services
Assisted the Mayor and implemented Facebook Live every Thursdays to provide update on City’s events and projects
Completed ribbon cutting for the upgraded Recreation Center and celebrated with the community with the milestone
Completed State of the City video with Mayor to update the community on Mayor’s goals for 2022 and city projects
Prepared 12 digital Fountain Valley Newsletters to keep the community informed on city programs, events, and up to date information on COVID-19 and vaccine allocation/distribution.

Processed 22 Claims against the City and completed over 150 Public Records Requests.

Re-organizes all City Committee’s and Commission with the City Council conducting the elections for the various committee seats. 45

FY 2022-23 Goals
Continue to focus on transparent governance to build trust, gain new ideas, increase community engagement, understand community’s needs better, empower citizens, showcase reform, attract citizens to government, boost economy, foster a local government with professionalism, and educate citizens
Continue to build on existing Strategic Plan to guide the organization to support community goals
Focus on social media to enhance community outreach and engagement as part of the City’s strategic goals
Focus on economic development to promote small businesses, the approved Fountain Valley Crossings Specific Plan, under-utilized commercial centers and attract new restaurants and retailers
Continue to have ongoing dialogue with hotel developers for opportunity sites in the Fountain Valley Crossings Specific Plan and former Boomers site and Spec Services building
Continue to have discussions with property owners at Harbor Boulevard and Edinger Avenue to revitalize and attract new tenants
Complete average total compensation salary survey with all seven labor groups Assist with the rollout of the citywide Enterprise Resource Program (ERP) Assist with General Plan Update Project
Evaluate the best use for City properties at City Hall, which is currently lease to the Boys and Girls Club of Huntington Valley
Continue to support OCTA 405 Freeways Projects
Support nonprofit organizations in the community
Continue to support businesses as they recover from the COVID-19 pandemic Work closely with local legislators on proposed bills in Sacramento Hire new Planning and Building and Finance Directors
Work with County of Orange and surrounding cities to identify option to address homeless challenges in the region
46

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 628,392 $ 595,785 $ 707,310 $ 818,754 16% Internal Service Charges $ 191,821 $ 181,110 $ 189,779 $ 255,032 34% Operating Expense $ 469,808 $ 490,746 $ 858,030 $ 738,510 -14% Total Expenses by Department $ 1,290,021 $ 1,267,641 $ 1,755,119 $ 1,812,296 3%

EXPENSES BY DIVISION
City Council
Salaries & Benefits $ 71,916 $ 73,267 $ 80,943 $ 81,691 1% Internal Service Charges $ 39,926 $ 34,542 $ 36,000 $ 53,714 49% Operating Expense $ 9,091 $ 6,607 $ 12,600 $ 20,000 59% Total City Council $ 120,933 $ 114,416 $ 129,543 $ 155,405 20% City Manager
Salaries & Benefits $ 185,756 $ 170,342 $ 196,148 $ 285,293 45% Internal Service Charges $ 52,512 $ 50,585 $ 52,747 $ 71,125 35% Operating Expense $ 418,139 $ 390,062 $ 727,430 $ 498,410 -31% Total City Manager $ 656,407 $ 610,989 $ 976,325 $ 854,828 -12% Administrative Services
Salaries & Benefits $ 256,310 $ 233,850 $ 293,724 $ 307,082 5% Internal Service Charges $ 39,861 $ 38,282 $ 40,793 $ 54,692 34% Operating Expense $ 36,009 $ 38,016 $ 103,500 $ 153,600 48% Total Administrative Services $ 332,180 $ 310,148 $ 438,017 $ 515,374 18% Records Management
Salaries & Benefits $ 113,537 $ 107,207 $ 136,495 $ 128,556 -6% Internal Service Charges $ 52,709 $ 50,881 $ 52,874 $ 65,906 25% Operating Expense $ 6,569 $ 10,688 $ 14,500 $ 16,500 14% Total Records Management $ 172,815 $ 168,776 $ 203,869 $ 210,962 3% Elections
Salaries & Benefits $ 873 $ 11,119 $ - $ 16,132 100%
Internal Service Charges $ 6,813 $ 6,820 $ 7,365 $ 9,595 30% Operating Expense $ - $ 45,373 $ - $ 50,000 100%
Total Elections $ 7,686 $ 63,312 $ 7,365 $ 75,727 928%
Total General Fund $ 1,290,021 $ 1,267,641 $ 1,755,119 $ 1,812,296 3%

EXPENSES BY DIVISION
Salaries & Benefits $ 406,686 $ 329,699 $ 428,071 $ 510,408 19% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ 760,283 $ 636,001 $ 1,110,257 $ 637,050 -43% Total Information Processing $ 1,166,969 $ 965,700 $ 1,538,328 $ 1,147,458 -25% Total All Other Funds $ 1,166,969 $ 965,700 $ 1,538,328 $ 1,147,458 -25%

ADMINISTRATION
47

ADMINISTRATION
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed FTE Change

STAFFING
City Manager 1.0 1.0 1.0 1.0 0.0
Deputy City Manager 0.0 0.0 1.0 1.0 0.0
Assistant to the City Manager 1.0 1.0 0.0 0.0 0.0
Management Aide 0.5 0.5 1.0 1.0 0.0
Executive Assist. to the City Manager 1.0 1.0 0.0 0.0 0.0 City Clerk Administrator 1.0 1.0 1.0 1.0 0.0
Information Systems Manager 1.0 1.0 1.0 1.0 0.0
Lead Information Systems Tech. 0.0 0.0 1.0 1.0 0.0
Information Systems Technician 3.0 3.0 2.0 2.0 0.0

8.50 8.50 8.00 8.00 0.0

SIGNIFICANT CHANGES
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Operating Expense
Internal Service Charges
Salaries & Benefits
Administrative
Services
Records
Management
Elections
City
Council
Information
Processing
(Internal
Service)
City
Manager
48

FINANCE
Mission Statement
The Finance Department is dedicated to sustaining financial strength & viability through fiscally sound financial management; ensuring the highest level of customer service while providing efficient, value added services that maximize the City’s financial resources and public trust.

Organizational Chart
Finance Director
Fiscal Services
Accounting Services
Auditing
Financial Reporting
Budgeting
Investments
Financial Statements
Purchasing & Stores
Centralized
Purchasing
Customer Service
Accounts Receivable
Business License
Utility Billing
49

The Finance Department manages the fiscal operations of the City and maintains financial records in conformance with generally accepted accounting principles and in
compliance with State and Federal laws. The Department’s primary functions include maintaining effective systems for financial planning, revenue administration, accounting and reporting, cash management, long-term debt
administration, purchasing, payroll, investing and utility billing.

The Department’s Fiscal Services division is responsible for developing and managing the City’s Annual Operating
Budget, preparing the Comprehensive Annual Financial
Report (CAFR) as well as citywide payroll functions.

Purchasing manages the formal bidding and procurement process for goods and services needed by all departments and manages the City’s procurement card program.

The Customer Services division manages the accounts payable and receivable functions, oversees the business license process and is responsible for utility billing for all residential and commercial water accounts in the City.

FY 2021/22 ACCOMPLISHMENTS
Implemented Financial module of new Enterprise Resource Planning (ERP) System.

Supported the meet and confer process by providing financial cost information for all bargaining agreements.

Managed budget and reporting requirements resulting from the COVID-19 pandemic and various allocations from the CARES Act.

Earned the GFOA Distinguished Budget Presentation award for the FY 2021/22 for the first time.

Earned the GFOA Certificate of Achievement for Excellence in Financial Reporting for the FY 2020/21 Comprehensive Annual Financial Report.

Provided staff support to Measure HH Oversight Committee.

Managed the city’s 20 Year Long Term Financial Plan.

Continued the conversion to an entirely electronic bidding process and managed approximately 35 Request for Proposals (RFP) and or formal bids.

Oversee and provide guidance to departments in the procurement of goods and services to ensure compliance with City Purchasing Policies and ensure competitive bidding. 50

Managed procurement card program citywide.

Processed approximately 103,000 bills for water, sewer and trash/ recycling services.

Managed 3,011 business licenses citywide.

FY 2022/23 GOALS
Develop a City budget document that would be eligible for the CSMFO and/or GFOA Budget Awards Program.

Continue project management and ensure successful implementation of new ERP system for payroll and utility billing modules.

Implement a Pension Funding Policy that sets forth a comprehensive long-term fiscal strategy designed to mitigate against risk exposure and with the goal of paying off all pension debt by 2037, when Measure HH
sunsets.

Adhere to all reporting requirements and maximize
the value of funding from the American Rescue Plan
and/or any other stimulus programs providing aid
to local government.

Complete a Comprehensive Fee Study to review
and update citywide fees as needed.

Implement procurement module in new ERP
system.

Update Purchasing Policy to streamline processes,
safeguard city resources and maximize competitive
bidding and transparency.

Assess opportunities for cost savings, revenue
opportunities and/or efficiencies while considering the effects on customer services. 51

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY 22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 948,927 $ 1,024,098 $ 1,046,409 $ 1,496,255 43% Internal Service Charges $ 223,127 $ 217,399 $ 235,529 $ 312,997 33% Operating Expense $ 529,507 $ 572,841 $ 666,500 $ 793,305 19% Total Expenses by Department $ 1,701,561 $ 1,814,338 $ 1,948,438 $ 2,602,557 34%

EXPENSES BY DIVISION
Financial Services
Salaries & Benefits $ 640,611 $ 695,845 $ 699,582 $ 990,256 42% Internal Service Charges $ 205,228 $ 198,946 $ 215,235 $ 282,476 31% Operating Expense $ 303,933 $ 302,767 $ 387,700 $ 443,920 15% Total Financial Services $ 1,149,772 $ 1,197,558 $ 1,302,517 $ 1,716,652 32% Purchasing
Salaries & Benefits $ - $ - $ - $ 206,285 100%
Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ - $ - $ - $ 82,085 100%
Total Purchasing $ - $ - $ - $ 288,370 100%
Business License
Salaries & Benefits $ 18,057 $ 18,073 $ 24,022 $ 30,003 25% Internal Service Charges $ 3,894 $ 3,970 $ 4,229 $ 9,001 113% Operating Expense $ 70,790 $ 96,030 $ 79,600 $ 82,100 3% Total Business License $ 92,741 $ 118,073 $ 107,851 $ 121,104 12% Total General Fund $ 1,242,513 $ 1,315,631 $ 1,410,368 $ 2,126,126 51%

EXPENSES BY DIVISION
Utility Billing (Water Fund)
Salaries & Benefits $ 290,259 $ 310,180 $ 322,805 $ 269,711 -16% Internal Service Charges $ 14,005 $ 14,483 $ 16,065 $ 21,520 34% Operating Expense $ 154,784 $ 174,044 $ 199,200 $ 185,200 -7% Total Utility Billing $ 459,048 $ 498,707 $ 538,070 $ 476,431 -11% Total Other Funds $ 459,048 $ 498,707 $ 538,070 $ 476,431 -11%

FINANCE
52

FINANCE
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY 22/23
Proposed FTE Change

STAFFING
Finance Director 1.0 1.0 1.0 1.0 0.0
Accounting Manager 1.0 1.0 1.0 1.0 0.0
Budget Analyst 1.0 1.0 1.0 1.0 0.0
Management Analyst 1.0 1.0 1.0 2.0 1.0
Accountant 0.75 0.75 0.75 0.75 0.0
Accounting Technician II/ CSR Lead 1.0 1.0 1.0 1.0 0.0
Accounting Technician II/ CSR 2.0 2.0 2.0 2.0 0.0
Accounting Technician I 1.0 1.0 1.0 1.0 0.0
Secretary 1.0 1.0 1.0 1.0 0.0

9.75 9.75 9.75 10.75 1.0

SIGNIFICANT CHANGES
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Operating Expense
Internal Service Charges
Salaries & Benefits
Financial
Services
Business
License
Utility
Billing
Purchasing
53

FIRE
Mission Statement
The Fountain Valley Fire Department is committed to providing the highest quality emergency response, fire prevention, education, and emergency medical services to the residents and visitors within the community.

Organizational Chart
Fire Chief
Fire Operations
Fire Suppression
Emergency Medical
Services
Training (All Risk)
Suppression Reserves
Fire Administration
Support Services
EMS
Subscription Program
Finance Administration
Planning & Policy
Fire Prevention
Disaster Prepardness
(EOC)
Hazardous Materials
F.I.R.S.T
Public Education
54

The Fire Department provides outstanding service aimed to safeguard both the well- being and property of the citizens and visitors of Fountain Valley. The 46 full-time men and women and approximately 20 part-time and volunteer employees of the Fountain Valley Fire Department strive to deliver high quality emergency medical services, fire suppression, fire prevention, hazardous materials, disaster preparedness and public safety education services. The fire department operates from two fire stations that collectively respond annually to over 7,000 emergency responses.

To maintain a constant state of readiness, the fire
department staffs two advanced life support engine
companies, one advanced life support ladder truck
company, and one battalion commander 24 hours a
day. These assets ensure that the fire department
delivers fast and effective emergency response, as
well as responsive and beneficial services to our
customers in all non-emergency
settings. Additionally, the department maintains
automatic and mutual aid agreements with
surrounding agencies, which provide both additional resources and maintains fiscal responsibility.

Fire suppression, emergency medical services, and fire prevention make up the core functions of the fire department. Fire suppression resources provide response to structure fires, emergency medical services, traffic collisions, wildland mutual aid, hazardous material calls, technical rescue operations, swift water rescue operations, and public service responses. To provide the community with the highest level of emergency medical services, all department personnel are trained to the level of basic life support providers, with two personnel on each apparatus trained to the level of advanced life support (paramedic). Additionally, the department’s paramedic program is supported by an Emergency Medical
Services Manager that ensures all department
personnel receive the required training and
oversight needed to provide the highest level prehospital care to the community. Under the direction of the Fire Chief, the Fire Marshal
manages all fire prevention activities. The fire
prevention bureau is responsible for plan review
and inspection of all new development in the city,
and coordinates both annual fire inspections of
local businesses and the Hazardous Materials
Disclosure/Business Emergency Plan Program. The
bureau also manages citywide disaster preparedness, fire prevention education, the hazardous materials program, and the Fire Inspection Reserve Senior Taskforce (FIRST) and Fire Prevention Intern Program.
55

FY 2021/22 ACCOMPLISHMENTS
Fire crews responded throughout the State of California on multiple mutual aid wildland fires.

Hired two Firefighter/Paramedics an EMS Manager and an Administrative Assistant Promoted Two Fire Engineer. Hired Emergency Medical Services (EMS) Manager.

Took delivery of a new tiller truck.

Purchased new fire engine
Purchased new F-450 Rescue Vehicle
Created Covid-19 General Order and provided testing and vaccination clinics.

Purchased new auto extrication “Jaws of Life.”
Purchased new 2021 Chevy Tahoe.

Provided PPE and education to senior care facilities and residents.

Provide drive through open house for public education during fire prevention week.

FY 2022/23 GOALS
Continue to work with Care Ambulance, Wittman, and department personnel to monitor and provide the highest level of service with the Fire Department ambulance program.

Further, promote the Fire Department Paramedic Membership Program.

Assist with capital project to replace Fire Station 1, which would provide for a multi-purpose space for training, meetings, project collaboration and a more efficient call alert system.

Additionally, the upgrades would accommodate a gender diverse workforce.

Work with Pierce Inc. to build a new fire engine pumper.

Foster relationships within the city and with surrounding agencies to expand and improve future collaborative training and project opportunities Further develop the fire investigation program within the department to include a part time fire investigator
Conduct annual fire and life safety inspections for compliance with applicable building standards for structures specified in Senate Bill No. 1205.

Provide excellent emergency and non-emergency services to the community, the visitors, and people outside of Fountain Valley during automatic/mutual aid responses by ensuring our staff has the knowledge and equipment required to complete their mission. Furthermore, staff is dedicated to promoting excellence by embracing challenges of the future and progressing the people and the standard operating procedures within the fire department to adapt to future demands. 56

FIRE
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 8,617,133 $ 9,525,943 $ 9,641,136 $ 10,235,725 6% Internal Service Charges $ 1,212,117 $ 1,136,346 $ 1,084,965 $ 1,407,658 30% Operating Expense $ 594,606 $ 1,345,585 $ 2,152,174 $ 2,190,268 2% Total Expenses by Department $ 10,423,856 $ 12,007,874 $ 12,878,275 $ 13,833,651 7%

EXPENSES BY DIVISION
Suppression
Salaries & Benefits $ 4,775,544 $ 5,491,662 $ 5,464,249 $ 5,463,141 0% Internal Service Charges $ 795,959 $ 739,982 $ 698,868 $ 907,339 30% Operating Expense $ 499,927 $ 517,709 $ 570,251 $ 582,598 2% Total Suppression $ 6,071,430 $ 6,749,353 $ 6,733,368 $ 6,953,078 3% Paramedics
Salaries & Benefits $ 2,933,064 $ 3,139,361 $ 3,181,526 $ 3,609,289 13% Internal Service Charges $ 296,222 $ 289,038 $ 277,416 $ 357,689 29% Operating Expense $ 6,497 $ 8,379 $ 10,820 $ 10,820 0%
Total Paramedics $ 3,235,783 $ 3,436,778 $ 3,469,762 $ 3,977,798 15% Prevention
Salaries & Benefits $ 641,939 $ 615,158 $ 673,122 $ 666,980 -1% Internal Service Charges $ 67,581 $ 61,000 $ 64,849 $ 84,223 30% Operating Expense $ 67,650 $ 41,021 $ 58,645 $ 58,645 0% Total Prevention $ 777,170 $ 717,179 $ 796,616 $ 809,848 2% Reserves
Salaries & Benefits $ 29,611 $ 32,652 $ 33,868 $ 93,077 175% Internal Service Charges $ 530 $ 539 $ 574 $ 663 16%
Operating Expense $ 6,821 $ 80 $ 9,485 $ 9,485 0%
Total Reserves $ 36,962 $ 33,271 $ 43,927 $ 103,225 135% Disaster Preparedness
Salaries & Benefits $ 113,321 $ 112,878 $ 123,431 $ 137,857 12% Internal Service Charges $ 28,150 $ 23,811 $ 22,092 $ 30,067 36% Operating Expense $ 6,472 $ 4,481 $ 9,710 $ 9,710 0%
Total Disaster Preparedness $ 147,943 $ 141,170 $ 155,233 $ 177,634 14% Hazardous Materials
Salaries & Benefits $ 107,839 $ 104,710 $ 118,361 $ 119,214 1% Internal Service Charges $ 17,186 $ 15,722 $ 16,229 $ 21,209 31% Operating Expense $ 6,259 $ 6,332 $ 9,135 $ 9,135 0%
Total Hazardous Materials $ 131,284 $ 126,764 $ 143,725 $ 149,558 4% 57

FIRE
F.I.R.S.T.

Salaries & Benefits $ 15,815 $ 16,028 $ 17,457 $ 35,470 103% Internal Service Charges $ 6,489 $ 6,254 $ 4,937 $ 6,468 31% Operating Expense $ 980 $ 6 $ 3,540 $ 3,540 0%
Total F.I.R.S.T. $ 23,284 $ 22,288 $ 25,934 $ 45,478 75% Ambulance
Salaries & Benefits $ - $ 13,494 $ 29,122 $ 110,697 280% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ - $ 767,577 $ 1,480,588 $ 1,506,335 2% Total Ambulance $ - $ 781,071 $ 1,509,710 $ 1,617,032 7% Total General Fund $ 10,423,856 $ 12,007,874 $ 12,878,275 $ 13,833,651 7% $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Operating Expense
Internal Service Charges
Salaries & Benefits
Suppression
Paramedics
Prevention
Reserves
Disaster
Preparedness
Hazardous
Materials
F.I.R.S.T.

Ambulance
58

FIRE
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
FTE
Change

STAFFING
Fire Chief 1.0 1.0 1.0 1.0 0.0
Division Chief 0.0 0.0 1.0 1.0 0.0
Battalion Chief 3.0 3.0 2.0 2.0 0.0
Administrative Assistant 0.0 0.0 1.0 1.0 0.0
Fire Marshal/ Deputy Fire Marshal 1.0 1.0 1.0 1.0 0.0
Emergency Services Manager 1.0 1.0 1.0 1.0 0.0
Administrative Training Captain 1.0 1.0 1.0 1.0 0.0
Fire Captain 9.0 9.0 9.0 9.0 0.0
Fire Engineer 9.0 9.0 9.0 9.0 0.0
Firefighter/ Paramedic 18.0 18.0 18.0 18.0 0.0
Management Aide 2.0 2.0 1.0 1.0 0.0
Fire Prevention Analyst 1.0 1.0 1.0 1.0 0.0

46.0 46.0 46.0 46.0 0.0

SIGNIFICANT CHANGES
59

HUMAN RESOURCES
Mission Statement
To provide excellent and highly responsive professional services to all customers; sustain cooperative working relationships; provide accurate and timely information; deliver innovative and timely services and to provide leadership in all personnel and employment matters; attract and retain a highly talented and qualified workforce to meet the needs of the organization and help to provide a safe work environment.

Organizational Chart
Human Resources
Director
Employee Relations
Personnel Rules &
Regulations
Compliance Laws
Classification &
Compensaion
Employee
Investigations
Administration
Regulations
Employee Benefit
Services
Employee Benefits
Program
Recognition & Awards
Development &
Training
Employee Separation
Worker's
Compensation
Recruitment & Training
Background Checks
New Employee
Orientation
Safety Program
Administration
Development &
Training
60

The Human Resources Department’s primary role is to deliver highly responsive, knowledgeable, and professional human resources management partnerships using innovative and transparent approaches with professional integrity.

The Human Resources Department
administers the employee relations
process including performance
evaluations, grievance resolution,
and discipline and ensures the City
complies with applicable Federal,
State and local laws. Through labor
and employee relations functions,
the Department also oversees the
City’s seven recognized bargaining
units and non-represented
employees.

In the area of Employee Services,
the Human Resources Department provides a variety of employee services including, but not limited to, the following:

Provides strategic planning, expert advice and policy regarding the prevention and resolution of labor and employment issues, including investigation and resolution of Equal Opportunity Commission (EEOC) and Department of Fair Employment and Housing (DFEH) investigations.

Maintains a comprehensive personnel system with accurate and relevant classification titles and specifications, and competitive compensation to preserve and cultivate a professional workforce.

Administration of the employee benefit programs providing health, dental, vision, flexible spending accounts, life insurance and long-term disability benefits.

Administration of the Workers’ Compensation program providing injured employees with timely and quality medical care and treatment to facilitate an early recovery and return to work.

Provide employee development and training opportunities to enhance employees’ abilities to meet the competencies and organizational skills necessary to fulfill their work responsivities and individual departments’ goals or objectives.

Human
Resources
Recruitment
Safety &
Training
Employee
Benefits
Labor
Relations
Worker's
Comp
61

Administration of the employee performance management program.

Coordination of the employee recognition program and recognition ceremony including service milestones and exceptional performance awards.

The Human Resources Department takes the lead in the recruitment process to administer the application, testing, and pre-employment processes. Through strategic partnerships with other departments, Human Resources takes a leadership role by recruiting and developing a talented workforce. Human Resources strives to attract, hire and retain qualified individuals and place them in positions with responsibilities that allow them to maximize their skills, knowledge and talents.

FY 2021/22 ACCOMPLISHMENTS
Completed two CalPERS Retirement Contract amendments; Council adoption of a Resolution and Ordinance for Tier 1 employee cost-sharing contribution for FY 21-22 and FY 22-23.

Created an Administrative Regulation for Administrative Officers’ Wellness Program.

Managed Employee Compensation Study provide by Consultant and reviewed for accuracy.

Met and conferred with bargaining groups over Employee Compensation Study, created Council Staff Reports, Resolutions, Side Letters, and Salary Schedules.

Continued maintenance of the City’s classification and compensation system, including reclassification studies, creation of new positions, etc. Processed 53 Recruitments (external and internal recruitments), hired approximately 55 new employees (full-time and part-time). Processed 48 volunteers for Parks/Recreation and Fire Department.

Processed over 65 FMLA/CFRA/PDL employee protected leaves of absence requests.

Processed over 375 Personnel Transaction Forms.

Processed approximately 40 contracts and purchase orders out of compliance.

Workers’ Compensation Claims review management to reduce approximately 102 open claims. Processed approximately 60 new claims in FY 21-22.
62

Processed approximately 45 separations and retirements.

Negotiated and secured Employee Benefits Broker Services, providing reduced employee benefit premium costs.

Coordinated mandatory OSHA Safety Trainings for Public Works employees.

Conducted Employee Health/Wellness Fair and Open Enrollment Virtual Benefits Information Portal
Committee member participation in Strategic Plan Goals to attract and retain quality employees.

Provided on-going support and resources to City Departments on personnel matters including employee coaching, discipline, conflict, injuries, etc.

Successfully completed the reporting requirements under the Affordable Care Act.

Completed benefits open enrollment and implemented all changes.

Processed over 200 health, dental, vision, supplemental benefits, and qualified event changes throughout the year.

Drafted and implemented 2021 and 2022 mandatory COVID-19 Supplemental Paid Sick Leave.

Processed over 175 employee COVID-19 related leaves of absences.

FY 2022-23 GOALS
Launch Employee Benefits Portal by September 2022, for new-hire onboarding, benefits open enrollment and year-round qualified events.

Providing employee training and assistance on portal.

Recruit and build Human Resources Team by filling vacant, temporary positions.

Begin efforts to review and update Administrative Regulations, department Standard Operating Procedures, Human Resources Rules and Regulations, and Employee Handbook for legal compliance.

Active participation in Strategic Goal Committees to strengthen our brand 63

as an employer, pursue diversity, equity, and inclusion strategies within the organization, focus efforts on employee engagement strategies, utilize employee feedback survey data, strategize ideas to improve employee morale, engagement, and communication.

Work with consultant to develop employer branding and create an employee recruitment video to highlight working for the City of Fountain Valley.

Implement training, development, and leadership programs for employees.

Explore employee mentorship programs and provide recommendations for implementation.

Continue to deliver prompt and effective Human Resources services and programs that add value for our prospective employees, active employees and retirees.

Work with Strategic Plan committee to explore ideas to improve recruiting and on-boarding efforts.

Continue efforts to expand our social media presence in order to attract qualified, diverse and talented individuals to the City.

Improve employee retention by working with the Strategic Plan Committee to explore ideas to create a great work climate with improved morale, and supporting the professional development of employees.

Continued assessment and evaluation of the City’s safety program needs and draft and/or update policies and procedures as needed to ensure compliance with applicable laws.

Explore a variety of relevant training programs with a variety of modalities to continue to encourage and prepare for promotional opportunities and succession planning for recommendation.

Work with consultant on development and launch of the Human Capital Management Module for the Enterprise Resource Planning Financial Software (ERP Project).
64

Maintain the City’s health benefits program, and ensure that benefits are meeting employee needs and providing quality and value. 65

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 496,701 $ 480,504 $ 510,460 $ 818,513 60% Internal Service Charges $ 54,102 $ 50,567 $ 54,265 $ 77,878 44% Operating Expense $ 121,368 $ 119,995 $ 425,554 $ 508,200 19% Total Expenses by Department $ 672,171 $ 651,066 $ 990,279 $ 1,404,591 42%

EXPENSES BY DIVISION
Employee Relations
Salaries, Permanent $ 496,701 $ 480,504 $ 510,460 $ 818,513 60% Salaries, Part-Time $ 54,102 $ 50,567 $ 54,265 $ 77,878 44% Self Insurance- Personnel $ 121,368 $ 119,995 $ 425,554 $ 508,200 19% Total Employee Relations $ 672,171 $ 651,066 $ 990,279 $ 1,404,591 42% Total General Fund $ 672,171 $ 651,066 $ 990,279 $ 1,404,591 42%

HUMAN RESOURCES
66

HUMAN RESOURCES
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed FTE Change

STAFFING
Human Resources Director 1.0 1.0 1.0 1.0 0.0
Human Resources Manager 0.0 0.0 0.0 1.0 1.0
Principal HR Analyst 0.0 0.0 1.0 0.0 -1.0
Senior Human Resources Analyst 1.0 1.0 0.0 1.0 1.0
Safety & HR Specialist 0.0 1.0 1.0 0.0 -1.0
Human Resources Analyst 0.0 0.0 2.0 2.0 0.0
Management Aide 1.0 1.0 0.0 0.0 0.0
Human Resources Technician 0.75 0.75 0.75 1.00 0.25
Department Secretary 1.0 0.0 0.0 0.0 0.0

4.75 4.75 5.75 6.00 0.25

SIGNIFICANT CHANGES
The City Council approved during the FY 22 mid-year budget Management Aide to an HR Analyst, and the creation of a new HR Analyst position. New changes for FY 23 include reclassifying a Senior HR Analyst to HR Manager, increase a .75 HR Technician to 1.0 $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Operating Expense
Internal Service Charges
Salaries & Benefits
Employee Relations
67

Mission Statement
The Planning and Building Department promotes high quality development, economic vitality, neighborhood preservation and the protection of the public health, safety and welfare. To fulfill this mission, department staff provides professional guidance and technical assistance to the residential, business and development community.

Organizational Chart
Director
Planning
Advanced Planning
Current Planning
Development
Permits
Environmental
Review
General Plan
Zoning
Enforcement
Administrative
Citations
Inspections
Property
Maintenance
Building
Building
Inspections
Building Permits
Plan Checks
Housing & Community
Development
Affordable Housing
Project Monitoring
Contract/Grant
Management
Home
Improvement
Program
Loan Portfolio
Management
Public Service
Agency
68

The Department enhances and protects the public’s health, safety, and welfare through the built environment of the City, while also providing for fair housing, public service funding, neighborhood enhancement and affordable housing opportunities. The Department is comprised of the Planning, Building, Code Enforcement, and Housing Divisions.

The Planning Division provides support to the City Council and Planning Commission. In this role, Planning Staff processes applications through compiling background data, providing municipal code and policy review, documenting environmental compliance, providing staff recommendations, and
preparing conditions of
approval for proposed projects.

This Division is also responsible
for zoning code administration
and ensuring that all proposed
projects comply with local,
state and federal laws and are
consistent with the General
Plan. This Division also
coordinates the long-range
planning and development of
the City through the
maintenance of the General
Plan, specific plans, and
environmental documentation.

This function also includes the
monitoring of local and
regional programs and ensures the City complies with Federal, State, and local legislation. Finally, this Division provides development project coordination between City departments and assists project applicants with navigating the permit and entitlement process.

Under the direction of the Planning and Building Director, the Building Division ensures that the construction of all buildings and structures within the City are built in compliance with applicable codes and standards. This division is responsible for permit issuance, plan review, and inspections.

The Code Enforcement Division ensures compliance with municipal codes for issues such as property maintenance, public nuisances, abandoned vehicles, and business license. This function of the Department achieves compliance through identifying code violations, working with violators to correct infractions, issuing citations and assisting the City Attorney in prosecutions when necessary.
69

The Housing Division includes the administration of the City’s Community Development Block Grant (CDBG) Program and Housing Authority functions. Responsibilities of the CDBG Program include administering a contract for Fair Housing Services, oversight of Public Service Agency Grant recipients, code enforcement in low/moderate income census tracts of the City, the Neighborhood Revitalization Program, a Lead Based Paint Hazard abatement program, and preparing the City’s Five-Year Consolidated Plan, annual Action Plans, and various other mandated reports. The Housing Authority programs of the Department include the affordable housing loan administration, affordable housing development, and property compliance, administration of the City’s affordable housing monies and preparation of mandated reports.

The U.S. Department of Housing and Community Development (HUD) has allocated $349,037 in Community Development Block Grant (CDBG) funds to the City to be used for projects and activities that primarily benefit low and moderate-income households/persons in the community.

The annual allocation plus an estimated $120,416 in un-obligated carryover and program income, combined with $30,547 in remaining CARES Act funding, will provide a budget of $500,000 for the program. CARES Act funds must be used for programs that prevent, prepare for, or respond to the pandemic.

The following projects will be funded with
the CDBG allocation and are consistent with
the Five Year Consolidated Plan approved
by HUD.

Up to twenty percent (20%) of a given
entitlement may be allocated to fund
administrative costs. The management and
coordination of the CDBG entitlement
program including preparation of required
HUD reports, such as the Consolidated Plan, fall under the category of administrative costs. Fair Housing Services and preparing the Analysis of Impediments to Fair Housing Choice 5-Year Plan are also part of Administration of the grant.

CDBG funding requires a grantee to provide its low and moderate-income households with fair housing services. The City contracts with Fair Housing Council of Orange County (FHCOC) to provide services that include landlord/tenant dispute resolution, housing discrimination, fair housing education, etc. CDBG regulations require that the cost of fair housing services be paid from the Administration budget.
70

Every five years CDBG regulations require that cities prepare an Analysis of Impediments to Fair Housing Choice (AI) as part of their Consolidated Plan. The next update of the AI will be due with the FY 2025-29 Consolidated Plan. Funding will be required in fiscal year 2024-25 to prepare the AI for the next consolidated plan cycle.

CDBG regulations allow cities to use up to 15% of their yearly CDBG allocation to fund non-profit public service agencies that assist low-income households/persons. For fiscal year 2022-23, the City of Fountain Valley will allocate the full 15% allowable of the entitlement to the Public Service Agency (PSA) Grant Program. The grants will assist PSA’s that provide childcare scholarships, meal programs for seniors, case management for disabled
adults, battered women’s shelter and education and
juvenile diversion programs. In addition to the public
service agencies funded by the annual allocation, the
City will budget $30,547 of the CARES Act allocation
to fund the third year of the Senior Social Services
Program launched in response to the pandemic. The
program will continue to provide social services,
information and referrals to city seniors affected by
COVID-19 and will add a mobile food pantry to their
services in FY22-23 to assist needy seniors in the city.

The City of Fountain Valley Code Enforcement Program provides code enforcement services in CDBG eligible low/moderate income areas. Code enforcement violations are identified and abated in an effort to instill pride of ownership in the neighborhoods. Residents with violations are provided information regarding low interest, deferred payment loans, grants, and rebates that are available to qualified low-income homeowners for housing rehabilitation and repair that may assist them in resolving code enforcement violations on their properties.

The Neighborhood Revitalization Program has been reinstated to its original format following the temporary modification that allowed for only Home Exterior Grants due to COVID-19. The program policy was also amended in FY 21-22 to allow eligible low-income households to receive a grant once every 10 years, instead of one time only. This update applies to both single family and mobile home owners.
71

The Neighborhood Revitalization Program provides qualified low-income single-family homeowners with financial assistance in the form of grants for up to $14,000, rebates up to $7,500, disability modification grants up to $5,000 and/or up to $50,000 in low interest, deferred payment loans for eligible repairs to their home. Recipients of grants are not required to pay back any portion of the financial assistance received. The rebates will reimburse the homeowner for 50% of the total cost of repairs up to a maximum of $7,500. Rebates are disbursed to the homeowner after they have paid for the costs of the repairs/improvements in full. The loans allow deferred payment for up to 25 years. Homeowner’s may receive the disability modification grant, along with any two of the other forms of available funding.

The City of Fountain Valley also offers financial assistance to qualified low-income mobile home owners for the repair/rehabilitation of their mobile homes. Qualified participants can receive up to $11,000 in financial assistance in the form of a grant for such items as plumbing repairs, electrical repairs, code violations, etc. If a roof replacement is needed the grant can be increased to $13,500. A rebate of up to $5,000 and a disability grant for ADA compliant upgrades for up to $5,000 is also available to mobile home owners. The rebates are for 50% of the total cost of repairs, with a maximum rebate of $5,000. Rebates are done on a reimbursement basis and are disbursed after the homeowner has paid for the costs of the repairs/improvements in full.

The City of Fountain Valley has instituted a Lead Based Paint Hazard Reduction Grant program to comply with the HUD Title X Regulations that went into effect in 2001. The grant funds are to be used to test for lead based paint hazards and to control or abate any hazards found in the course of the City of Fountain Valley Rehabilitation
Program projects.

The City received $616,554 in CARES Act funding to fund programs that prevent, prepare for, and respond to the COVID-19 pandemic. In FY 21-22, $350,000 of CARES Act funding was allocated to a Small Business Emergency Assistance Grant that assisted 35 low-income city business owners with business costs they incurred due to COVID-19. $20,547 in CARES Act funding was also allocated to the second year of the Senior Social Services Program to assist city seniors with social services, information and referrals in response to COVID-19. 72

The Fountain Valley Housing Authority (FVHA) was named the “Housing Successor” to the dissolved Fountain Valley Agency for Community Development in 2011. Strict state regulations and lack of state funding have required the FVHA to discontinue the affordable housing programs previously offered to City residents. The FVHA currently monitors the asset portfolio from past programs, administers all the statutory requirements of the portfolio, and manages the limited funds available for affordable housing development. The FVHA has a current portfolio of 16 FirstTime Homebuyer and Rehabilitation Loans with a principal balance totaling $738,410.

Additionally, the FVHA receives annual residual receipt payments for the Jasmine Affordable Senior Apartments Loan with an approximate principle balance of $3,982,341. Related California will begin making payments on the $8,200,000 loan for the new Prado Affordable Apartments after the first year of operation. Interest is accruing on the loan however; the initial residual receipt payment is not due until June 15, 2023.

FY 2021/22 ACCOMPLISHMENTS
Brought building personnel in-house as city employees
instead of contract employees
Continued to work with existing developers, commercial
centers and other businesses to improve aesthetics and
achieve high quality development through code
enforcement and plan review
Continued the free Emergency Temporary Use Permit
through January 2022 to allow businesses to conduct
business outdoors due to COVID
Projected to address approximately 900 property
maintenance violations through code enforcement
Prosecuted public nuisance cases to gain compliance
On target to fund 17 grants and rebates through the Home Improvement Program. This included the provision of eight grants, three rebates, and six lead based paint hazard testing grants
Modified Home Improvement Program policy to allow eligible home owners to apply once every 10 years for a grant instead of one time only Continued the comprehensive General Plan update
Processed updates to modernize the City’s zoning code, including:

Removed CUP requirement for ATM’s
Reduced certain parking requirements for commercial land uses 73

Created a permit process to allow permanent outdoor dining for eligible restaurants
Adjusted the R1 standards for height, FAR and site coverage per City Council direction Continued the free Emergency Temporary Use Permits through January 2022 to allow businesses to be conducted outdoors
Continued waiver of Banner Permit fee
Conducted virtual inspections and socially distanced inspections as needed due to COVID Increased use of electronic plan checks (EPlan), remote meetings, etc.

Created the Small Business Emergency Assistance Grant (SBEA) to assist low-income business owners with expenses incurred due to COVID-19.

Took in applications for approximately 62 Accessory Dwelling Units (ADU) in 2021 Held community meetings regarding topics such as ADUs, RHNA, the permit process, conditions of approval, and development highlights
Continued to collaborate with Related
California throughout the construction and leaseup phases of the Prado Family Homes affordable housing apartment complex in the Harbor Blvd
South Island Specific Plan
Worked with other City Departments to
make sure all accounting and reporting is
compliant under new State Regulation
Provided loan administration tasks such as loan payoffs or loan subordination agreements to current affordable housing loan customers
Educated staff regarding ongoing changes in State Law regarding the dissolution of redevelopment agencies as it refers to affordable housing Continued to enhance the Department’s webpages and utilize interactive features of the new City website
Attended Chamber of Commerce and other community events to distribute information on Planning Department Projects
Continued the General Plan Advisory Committee (GPAC) efforts Participated in trainings and roll-out of the new MUNIS ERP system Monitored all “Successor Agency” housing assets to ensure compliance with State Law Submitted the Housing Element to HCD and working with them for final approvals 74

FY 2022-2023 Goals
Continue to work with existing commercial centers and other businesses to improve aesthetics and achieve a high quality, professional appearance Approve the General Plan Update and update and implement the Zoning Code to match the changes to the General Plan Map
Prosecute public nuisance cases to gain compliance
Abate property maintenance violations through code enforcement efforts Continue to market and grow the City’s Home Improvement Program Continue efforts on the comprehensive General Plan Update Identify and address opportunities for the modernization of the zoning code Help the community recover from the Covid-19 pandemic
Continue to promote the Accessory Dwelling Unit (ADU) opportunity and the Home Improvement Program
Hold community meetings to educate residents and businesses on topics of interest Continue to enhance the Department’s webpages and utilize interactive features of the new City website
Attend community events to distribute information on Planning Department Projects Continue to engage the General Plan Advisory Committee (GPAC), stakeholders, and the community in the General Plan update process
Manage city interest in the development of the Prado Family Homes affordable housing project in Harbor Boulevard South Island from planning stage to occupancy Monitor all “Successor Agency” housing assets to ensure compliance with State Law Perform loan administration tasks such as loan payoffs or loan subordination agreements to current affordable housing loan customers
Determine eligibility and process affordable housing documents for persons purchasing in City’s “for sale” affordable housing developments
Educate staff regarding ongoing changes in State Law regarding the dissolution of redevelopment agencies as it refers to affordable housing Educate staff on new housing regulations and reporting requirements that began in 2021.

Work with other City Departments to make sure all accounting and reporting is compliant under new State Regulation.
75

Continue to participate in the training and implementation of the new MUNIS ERP system Determine the best utilization of FVHA funds to provide additional affordable housing 76

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 910,225 $ 795,752 $ 1,321,420 $ 1,733,728 31% Internal Service Charges $ 151,601 $ 146,054 $ 150,249 $ 197,763 32% Operating Expense $ 902,576 $ 1,534,868 $ 1,759,797 $ 1,519,209 -14% Total Expenses by Department $ 1,964,402 $ 2,476,674 $ 3,231,466 $ 3,450,700 7%

EXPENSES BY DIVISION
Planning
Salaries & Benefits $ 488,595 $ 367,397 $ 473,324 $ 651,856 38% Internal Service Charges $ 98,587 $ 94,253 $ 96,064 $ 127,242 32% Operating Expense $ 106,735 $ 254,684 $ 303,563 $ 257,555 -15% Total Planning $ 693,917 $ 716,334 $ 872,951 $ 1,036,653 19% Building
Salaries & Benefits $ 167,281 $ 165,872 $ 519,753 $ 751,324 45% Internal Service Charges $ 46,242 $ 44,582 $ 46,667 $ 61,762 32% Operating Expense $ 637,776 $ 764,491 $ 382,945 $ 241,250 -37% Total Building $ 851,299 $ 974,945 $ 949,365 $ 1,054,336 11% Total General Fund $ 1,545,216 $ 1,691,279 $ 1,822,316 $ 2,090,989 15%

EXPENSES BY DIVISION
Abandoned Vehicle
Salaries & Benefits $ 3,096 $ 9,393 $ 10,909 $ 2,270 -79% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ - $ - $ - $ - 0%
Total Abandoned Vehicle $ 3,096 $ 9,393 $ 10,909 $ 2,270 0% Fountain Valley Housing Authority (FVHA)
Salaries & Benefits $ 100,925 $ 103,811 $ 133,004 $ 159,626 20% Internal Service Charges $ 6,772 $ 7,219 $ 7,518 $ 8,759 17% Operating Expense $ 38,961 $ 99,174 $ 240,525 $ 240,725 0% Total Fountain Valley Housing Authority $ 146,658 $ 210,204 $ 381,047 $ 409,110 7% Community Development Block Grant (CDBG)
Salaries & Benefits $ 150,328 $ 149,279 $ 184,430 $ 168,652 -9% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ 119,104 $ 416,519 $ 832,764 $ 779,679 -6% Total CDBG $ 269,432 $ 565,798 $ 1,017,194 $ 948,331 -7% Total Other Funds $ 419,186 $ 785,395 $ 1,409,150 $ 1,359,711 -4% 77

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed FTE Change

STAFFING
Planning & Building Manager 1.0 1.0 1.0 1.0 0.0
Planner 1.0 1.0 1.0 1.0 0.0
Administrative Assistant/ Secretary 1.0 1.0 1.0 1.0 0.0 Code Enforcement Officer 1.0 1.0 1.0 2.0 1.0
Housing Coordinator 1.0 1.0 1.0 1.0 0.0
Housing Analyst/ Technician 1.0 1.0 1.0 1.0 0.0
Assistant Planner 1.0 1.0 1.0 1.0 0.0
Senior Planner 1.0 1.0 1.0 1.0 0.0
Building Official 0.0 0.0 1.0 1.0 0.0
Building Inspector 0.0 0.0 2.0 2.0 0.0
Permit Technicians 0.0 0.0 2.0 2.0 0.0

8.0 8.0 13.0 14.0 1.0

SIGNIFICANT CHANGES
Planning
Building
Abandoned Vehicle
Fountain Valley
Housing Authority
(FVHA)
Community
Development Block
Grant (CDBG)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Operating Expense 1
Internal Service Charges
Salaries & Benefits
78

POLICE
Mission Statement
The members of the Fountain Valley Police Department will demonstrate the Courage to protect life and property in our community. Our Duty is to provide the highest quality of service in a fair, impartial and ethical manner. Our Commitment is to take a leadership role in providing for public safety and quality of life in a manner that will preserve the public trust.

Organizational Chart
Chief of Police
Support Services
Division
Records Dispatch
Detective Bureau Personnel & Training
Crime Suppression Unit Crime Prevention
Crime Analysis Neighborhood Watch
Crime Scene
Investigations Property & Evidence
Police Cadets
Patrol Division
Traffic Patrol
S.W.A.T. K-9 Units
Peer Support Program Field Training Program
Police Services Officers Police Chaplains
Police Explorers R.A.C.E.S Civil Radio
Service
Retired Senior
Volunteer Program
79

The Fountain Valley Police Department partners with the community to promote public safety to the residents, businesses and visitors of the City. Headed by the Police Chief, the Department is organized into two divisions: the Patrol Division and the Support Services Division. Both Divisions share the responsibility for the prevention, detection and investigations of crime.

The Patrol Division includes uniformed Patrol Officers, Traffic Officers, Police Services Officers, K9 Officers, School Resource Officers, Community Resource Officers, S.W.A.T. Team Members, Field
Training Program and the Peer Support Program.

The Patrol Division consists of 30 uniformed Police
Officers, 6 Sergeants and 2 Lieutenants who provide
service to the community 24 hours a day, 365 days
a year. Uniformed Patrol Officers are first
responders and as such are the City's first line of
defense against the criminal element. Using a datadriven approach to crime and traffic safety, or COMPSTAT, Patrol personnel focus on locations and times where crime is likely to occur. By analyzing crime data and identifying emerging crime and traffic safety trends, Officers are better positioned to focus our crime-fighting and safetypromoting efforts.

The Traffic Bureau consists of 1 Sergeant, 2 Motor Officers and 1 Traffic Investigator who are committed to promoting the safest and most efficient traffic flow throughout our City. Traffic Officers regularly conduct DUI checkpoints and saturation patrols throughout the year to keep our streets safe.

The Police Services Officers (PSOs) are non-sworn employees who assist Patrol and Traffic Officers in the field. PSO's duties include taking crime and traffic collision reports, traffic control, conducting CSI and issuing parking citations. This way, PSOs free up sworn personnel to concentrate on response to priority calls, crime fighting and traffic safety.

Two K-9 Officers and their partners undergo extensive training prior to being assigned to Patrol. K-9 Officers and their partners are used to track and locate hidden suspects, apprehend fleeing felons or locate hidden firearms and narcotics.

We are members of the West County Special Weapons and
Tactics (SWAT) Team, a regional effort serving the cities of Cypress, Los Alamitos, Westminster, Seal Beach and Fountain 80

Valley. West County SWAT consists of Tactical Officers, Crisis Negotiators and Tactical Dispatchers. The Tactical Officers Unit is comprised of tactical paramedics, containment,
react/entry and long-range marksmen. This group of specially trained and highly skilled personnel are utilized where needed to deal with high-risk incidents, such as barricaded suspects, active shooters, hostage situations and to serve high-risk search and/or arrest warrants. The goal of the Team is to resolve these incidents peacefully.

Field Training Officers provide the primary training for newly hired Officers. This intensive fourmonth process prepares the trainee to work as a solo beat Officer.

Our Corporal program is designed to provide assistance for Sergeants in front line supervision and to develop these experienced Officers for future leadership positions within the organization.

The Support Services Division includes the Records Bureau, Dispatch Center, Detective Bureau, Crime Suppression Unit, CSI Unit, Crime Analyst, Property and Evidence Unit, Personnel and Training, and Crime Prevention.

The Records Bureau consists of 4 Records Specialists, 5 Cadets and 1 Community Services Officer.

These personnel are responsible for maintaining arrest records, crime reports, traffic citations and collision reports, electronically filing arrest reports for court, complying with Public Records Act requests, transmitting required crime reporting to the Department of Justice and assisting the public.

Our Dispatch Center consists of 10 Dispatchers and is staffed 24 hours a day, 365 days per year.

Police Dispatchers are the first person one speaks to when dialing or texting 911. We annually process over 72,000 phone calls and approximately 49,000 incidents. These incidents include Officer-initiated activities, responding to public requests for assistance and other activities entered into our
Computer Aided Dispatch system. Dispatchers frequently
provide referrals, offer solutions or educate the caller, which alleviates the need for Police response.

The Detective Bureau is led by a Lieutenant and consists of General Investigations, Crime Suppression Unit, Crime Analysis, Court Liaison, Crime Scene Investigations and Property and Evidence.

General Investigations is staffed by 1 Sergeant, and 5 Detectives assigned to conduct secondary investigations involving crimes against people, property crimes, fraud and sex crimes. The 81

Detectives solve crimes through crime analysis, the use of crime databases, follow-up interviews and the results of CSI.

The Crime Suppression Unit (CSU) is staffed by 1 Sergeant and 3 Detectives. CSU's responsibilities include surveillance and tracking repeat offenders, impacting emerging crime trends such as narcotics violations, vice, gang, and graffiti crimes.

The Crime Analyst identifies emerging crime patterns and trends, conducting in-depth crime trend analysis and tracking repeat offenders that live in or frequent the City. The Crime Analyst develops intelligence information to assist Patrol Officers and Detectives in identifying crime suspects and helps Police supervision identify where Police resources should be focused to apprehend or thwart criminals.

The Crime Scene Investigations Technician responds to crime scenes and documents, collects and conducts forensic analysis of evidence needed to solve crimes.

The Property and Evidence Clerk maintains the integrity of approximately 5,000 pieces of new evidence each year. This evidence is used to assist in the prosecution of criminal cases.

The Personnel and Training Sergeant is responsible for the recruitment and hiring of Department personnel, and managing the extensive background investigation, polygraph, psychological and medical screening processes. The Personnel and Training Sergeant is responsible for ensuring our personnel maintain State-mandated training and supervises Crime Prevention, which includes our volunteer programs, Neighborhood Watch and Retired Senior Volunteers.

Other volunteer programs include Police Chaplains, Radio Amateur Civil Emergency Service (R.A.C.E.S.), and Police Explorers. Together all of these volunteers play a vital role, providing a way for the Department to connect with the community.

The different attributes of these Divisions are designed to complement and strengthen the capabilities of the entire Department team, as they work together to fulfill the Police Department Mission of protecting life and safeguarding property.

FY 2021-22 ACCOMPLISHMENTS
Transitioned the patrol fleet to the Ford platform.

Implemented the Racial and Identity Profiling Act records system.

Formed a Community Intervention Team (CIT) with other City Departments to resolve quality of life issues.

Increased staffing for Community Resource Officer, Records and Cadet positions. 82

Trained and developed recently hired and promoted personnel.

Successfully reached agreements on contracts with police equipment vendor.

Provided a high level of service to the community.

FY 2022-2023 GOALS
Utilized contract services to assist displaced persons and provide crisis intervention.

Organize a new promotional process.

Update uniform specifications and policy.

Restroom and locker room remodel.
83

POLICE
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 13,542,200 $ 13,369,104 $ 14,090,792 $ 15,463,440 10% Internal Service Charges $ 2,189,701 $ 2,338,672 $ 2,380,033 $ 2,936,210 23% Operating Expense $ 439,585 $ 859,551 $ 629,463 $ 1,084,562 72% Total Expenses by Department $ 16,171,486 $ 16,567,327 $ 17,100,288 $ 19,484,212 14%

EXPENSES BY DIVISION
Patrol
Salaries & Benefits $ 7,880,499 $ 7,691,987 $ 7,936,888 $ 8,840,537 11% Internal Service Charges $ 1,122,674 $ 1,235,488 $ 1,231,232 $ 1,607,812 31% Operating Expense $ 99,903 $ 99,351 $ 118,010 $ 544,698 362% Total Patrol $ 9,103,076 $ 9,026,826 $ 9,286,130 $ 10,993,047 18% S.W.A.T.

Salaries & Benefits $ 65,046 $ 68,287 $ 96,635 $ 85,340 -12% Internal Service Charges $ 15,644 $ 16,797 $ 16,375 $ 21,586 32% Operating Expense $ 10,231 $ 7,709 $ 11,000 $ 11,000 0% Total S.W.A.T. $ 90,921 $ 92,793 $ 124,010 $ 117,926 -5% Canine
Salaries & Benefits $ 255,779 $ 335,403 $ 351,738 $ 393,847 12% Internal Service Charges $ 68,973 $ 85,098 $ 81,014 $ 106,463 31% Operating Expense $ 15,062 $ 11,342 $ 19,620 $ 19,620 0% Total Canine $ 339,814 $ 431,843 $ 452,372 $ 519,930 15% Traffic
Salaries & Benefits $ 675,812 $ 600,144 $ 722,877 $ 789,682 9% Internal Service Charges $ 162,405 $ 175,189 $ 177,637 $ 234,649 32% Operating Expense $ 161,892 $ 319,568 $ 270,150 $ 305,030 13% Total Traffic $ 1,000,109 $ 1,094,901 $ 1,170,664 $ 1,329,361 14% Investigation
Salaries & Benefits $ 2,917,993 $ 2,870,302 $ 2,946,895 $ 3,230,677 10% Internal Service Charges $ 410,766 $ 427,669 $ 443,407 $ 555,981 25% Operating Expense $ 108,726 $ 70,299 $ 103,635 $ 113,104 9% Total Investigation $ 3,437,485 $ 3,368,270 $ 3,493,937 $ 3,899,762 12% Communication
Salaries & Benefits $ 1,024,095 $ 1,074,092 $ 1,149,759 $ 1,230,268 7% Internal Service Charges $ 107,980 $ 105,239 $ 109,975 $ 144,700 32% Operating Expense $ 9,500 $ 6,122 $ 11,000 $ 11,000 0%
Total Communication $ 1,141,575 $ 1,185,453 $ 1,270,734 $ 1,385,968 9% 84

POLICE
Records
Salaries & Benefits $ 451,876 $ 469,418 $ 532,471 $ 644,659 21% Internal Service Charges $ 269,543 $ 268,496 $ 280,192 $ 234,131 -16% Operating Expense $ - $ - $ 20,000 $ 22,812 14%
Total Records $ 721,419 $ 737,914 $ 832,663 $ 901,602 8% Crime Prevention
Salaries & Benefits $ 129,225 $ 136,556 $ 145,042 $ 133,355 -8% Internal Service Charges $ 21,535 $ 20,903 $ 21,674 $ 26,250 21% Operating Expense $ 10,399 $ 9,021 $ 15,530 $ 15,530 0% Total Crime Prevention $ 161,159 $ 166,480 $ 182,246 $ 175,135 -4% Range
Salaries & Benefits $ 5,150 $ 6,688 $ 7,215 $ - -100%
Internal Service Charges $ 4,331 $ 3,793 $ 3,527 $ 4,638 31% Operating Expense $ 21,182 $ 19,989 $ 24,768 $ 24,768 0% Total Range $ 30,663 $ 30,470 $ 35,510 $ 29,406 -17%
Total General Fund $ 16,026,221 $ 16,134,950 $ 16,848,266 $ 19,352,137 15%

EXPENSES BY DIVISION
Criminal Diversion
Salaries & Benefits $ 28,997 $ 15,540 $ 79,325 $ - -100% Internal Service Charges $ 5,850 $ - $ 15,000 $ - -100% Operating Expense $ 2,690 $ 316,150 $ 35,750 $ 17,000 -52% Total Criminal Diversion $ 37,537 $ 331,690 $ 130,075 $ 17,000 -87% COPS/ Supplemental Law
Salaries & Benefits $ 107,728 $ 100,687 $ 121,947 $ 115,075 -6% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ - $ - $ - $ - 0%
Total Criminal Diversion $ 107,728 $ 100,687 $ 121,947 $ 115,075 -6% Total All Other Funds $ 145,265 $ 432,377 $ 252,022 $ 132,075 -48% 85

POLICE
FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY 22/23
Proposed FTE Change

STAFFING
Police Chief 1.0 1.0 1.0 1.0 0.0
Secretary 2.0 2.0 2.0 2.0 0.0
Crime Analyst 1.0 1.0 1.0 1.0 0.0
Captain 2.0 2.0 2.0 2.0 0.0
Lieutenant 3.0 3.0 3.0 3.0 0.0
Sergeant 10.0 10.0 10.0 10.0 0.0
Corporal 9.0 9.0 9.0 9.0 0.0
Police Officer 39.0 39.0 39.0 39.0 0.0
Laboratory 1.0 1.0 1.0 1.0 0.0
Support Services Manager 1.0 1.0 1.0 1.0 0.0
Support Services Supervisor 1.0 1.0 1.0 1.0 0.0
Police Records 3.5 3.5 3.5 3.5 0.0
Police Dispatch 9.5 9.5 9.5 9.5 0.0
Community Services Officer 4.0 4.0 4.0 4.0 0.0

87.0 87.0 87.0 87.0 0.0

SIGNIFICANT CHANGES
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Operating Expense
Internal Service Charges
Salaries & Benefits
Patrol
Canine
Traffic
Investigation
Communication
Records
Crime Prevention COPS/ Supplemental
Law
Range Criminal
Diversion
S.W.A.T.
86

Mission Statement
Enriching Quality of Life and Building a Stronger Community through Clean Water, Safe Roads, Beautiful Parks and Accessible Public Features.

Organizational Chart
Public Works Director
Engineering
Capital Projects
Traffic
Engineering
Transportation
Planning
Private
Development
Review
Inspection
NPDES
Compliance
Solid Waste &
Recycling
Field Services
Fleet
Buildings
Playgrounds
Streets/
Sidewalks
Storm Drains
Graffiti
Abatement
Water
Sewer
Landscaping
Park Trees
Street Sweeping
FOG
Compliance
87

The Public Works Department provides a wide range of services essential to the community including the funding, planning, design, construction, operation and maintenance of:

Public Works also provides support to many internal City Departments and plays an integral part in a variety of community activities.

The Public Works Department employs sixty-three (63) dedicated professionals in two (2) Department Divisions under the general direction of the Director of Public Works, including the Engineering Division & Field Services Division.

The Public Works Engineering Division is led
by the Deputy Public Works Director / City
Engineer and is comprised of a dedicated
staff of eight (8) engineering,
environmental, inspection and
administrative professionals, which
manage, operate and facilitate the City’s
multi-million dollar Capital Improvement
Program (CIP), Traffic Engineering Program,
Environmental Services, Development
Review, permitting and Plan Check, ADA
Coordination and Grant Fund Management.

The Engineering Division is responsible for the planning, grant funding, design and construction of the City’s CIP which includes arterial roadway rehabilitation, residential roadway rehabilitation, collector streets and industrial streets rehabilitation, sewer pipe rehabilitation, sewer lift station rehabilitation, water well rehabilitation, water reservoir rehabilitation, water line improvements, storm drain pump station rehabilitation, sidewalk improvements, public building facility improvements, roadway intersection and roadway capacity improvements, landscape/hardscape beautification, neighborhood park and playground equipment improvements and traffic engineering improvements.

Engineering also manages private development plan check review and transportation planning efforts to ensure compliance with local, State and Federal engineering standards.

This year, projects included the City’s continued General Plan update efforts and it’s EIR and Roads Parks Trees
Playgrounds Landscape Sidewalks
Water Trails Bikeways
Traffic Signals Drainage Sewer
Trash Streetscapes Public Buildings
88

Traffic Study, Orange County Sanitation District
Head Quarters Offices and Pedestrian Bridge,
Harbor Blvd Assisted Living, Moiola Residential
Home Development, Slater/San Mateo Mixed
Use/Residential Development Project, Coastal
Church Residential Development Project,
Coastline Community College Campus
Improvements and many Accessible Dwelling
Unit Improvement projects.

The Engineering Division also manages and
serves as the lead in the management of all improvements related to the 2 billion dollar I405 freeway improvement project being constructed within the city limits of Fountain Valley.

The Engineering Division manages Environmental Services, which safeguards the community’s environmental resources and ensures compliance with state and federal regulatory mandates for controlling water pollution, resource management, and energy efficiency.

Programs administered include:

The Federal Clean Water Act for water pollution prevention and protection of local water resources (National Pollutant Discharge Elimination System – NPDES) The California Global Warming Solutions Act (AB 32) for reduction of greenhouse gas emissions
Resource management (AB 939, AB 341, AB 1826, and AB 1521) for material reuse, recycling, and disposal
State General Waste Discharge Requirements (GWDR) for sewer maintenance, overflow response, and reporting; and
Administration of Air Quality Management District (AQMD) requirements for airborne pollutant regulations/clean air mandates, public education and regulatory compliance
Environmental Services also manages special contracts and programs including the City’s waste disposal and recycling contract, bus shelter maintenance, used oil collection program, beverage container recycling grant, and Neighborhood Cleanup events.

The Field Services Division is led by the Field Services Manager and is comprised of a dedicated staff of 52 operations and maintenance and administrative professionals in the Utilities Division and the General Services Division. The Utilities Division includes the Water and Sewer/Storm Drain Divisions and is comprised of a dedicated staff of twenty-four water and sewer/storm drain professionals, which manage and facilitate the City’s multi-million dollar Water Fund, Water Capital Improvement Program, Sewer Fund and Storm Drain Maintenance Program.
89

The Water Division is responsible for
maintaining the City’s potable water system to
ensure the safe and effective delivery of water
to the City’s residential and commercial
customers. The division’s programs include
Water Distribution System Maintenance &
Construction, Water Meter Maintenance &
Repair, Water Meter Reading, Customer
Service, Water Conservation, Cross Connection
Control Program, Water Quality & Treatment,
and Water Production Operations.

The Water Division also maintains a reclaimed water distribution system as part of the Green Acres Project (GAP) from OCWD.

The Sewer/Storm Drain Division is responsible for providing sewer and storm water collection service to all areas within the City boundaries. The division’s programs include Sewer Maintenance & Construction, CCTV Inspections and Storm Drain Maintenance & Construction. The proper maintenance of these important City infrastructure components is a significant part of the City’s public safety responsibility. The division is also responsible for providing services to maintain compliance with State required NPDES storm water regulations.

The General Services Division includes the Internal Services Division and Public Services Division and consists of a staff of twenty-six dedicated maintenance professionals that provide street, sidewalk, park, playground, public landscape, facilities and fleet maintenance services to the City of Fountain Valley.

The Internal Services Division is responsible
for fleet and equipment maintenance and
repair, vehicle, fuel and oil procurement,
government building facility maintenance
and repair, playground inspection,
maintenance and repair, indoor and outdoor
lighting maintenance and repair, HVAC
maintenance and repair and custodial
maintenance.

The Public Services Division is responsible for
street and sidewalk asphalt and concrete
maintenance and repair, street sweeping,
street sign maintenance and repair, graffiti removal program, parks and civic facilities landscape maintenance, Fountain Valley Sports Park landscape maintenance, median, rightof-way and open space landscape maintenance, arterial sidewalk sweeping and weed removal, and tree trimming and urban forest management. 90

FY 2021-22 ACCOMPLISHMENTS
Provided quality drinking water
to the community.

Maintained safe roads for the
community and motoring public.

Provided and maintained
beautiful parks for the
community.

Maintained all City sidewalks, pathways and trails for the community.

Maintained and operated the City’s vast sewer network.

Maintained and operated the City’s vast drainage network.

Maintained the City’s fleet of vehicles including Public Works, Fire, Police, Administration, Community Services, Planning and Pool vehicles.

Completed the City’s CIP Management Yearly Planning.

Managed and operated all 54 traffic signals citywide via the Traffic Management Center.

Completed the City’s annual Measure Eligibility Placket Completed the City’s SB1 Eligibility Packet.

Maintained all City Buildings.

Completed the Construction of Sewer Structural Improvements in various locations.

Completed the construction for Reservoir No. 2 Rehabilitation Project.

Completed Phase V of Pipeline Condition Assessments.

Continued the Regional Traffic Signal Synchronization along Harbor Blvd.

Continued the Regional Traffic Signal Synchronization along Brookhurst St.

Continued the Regional Traffic Signal Synchronization along Magnolia St.

Continued the Regional Traffic Signal Synchronization along Edinger Ave.

Continued the Regional Traffic Signal Synchronization along Warner Ave.

Continued the Regional Traffic Signal Synchronization along Talbert Ave.

Continued the Regional Traffic Signal Synchronization along Slater Ave.

Completed construction for the Arterial Pavement Rehabilitation Improvements on Euclid Street from Edinger Ave. to Warner Ave.

Completed the construction of the Residential Paving Project in the area of D2 Complete the PS&E for the Pavement Rehabilitation Improvements for the Fountain Valley Recreation Center and Sports Park Internal road network.

Completed the design of the pavement improvement project on Heil Street from Euclid St. to Harbor Blvd. 91

Completed the design of the Residential Paving Project in the area of D3.

Completed the RFP and award of Traffic Signal Maintenance Contract Completed the RFP and award of Street Light Maintenance Contract Completed the RFQ and award of On-Call Design Services Contracts Completed the RFQ and award of On-Call CM & Inspection Services Contracts Completed the RFQ and award of On-Call Material Testing Services Contracts Completed the RFP and award of Universally Accessible Playground Equipment Project.

Completed the RFP and award of Well Maintenance Contract Completed the construction for the Interior Improvements to the Recreation Center Project.

Completed design plans for the Police Department Restroom and Lockers Improvement Project.

Completed the construction of the School Area ADA Pedestrian Ramps.

Completed the PS&E and awarded a construction contract for the Citywide Protected Permissive Left Turn traffic signal project at eight (8) traffic signals.

Completed work for Well No. 10 Rehabilitation Project WU862.

Continued to be the lead in managing and protecting the City’s interest in regards to OCTA’s & Caltrans ($2B) I-405 widening project.

FY 2022-23 GOALS
Provide quality drinking water to the community.

Maintain safe roads for the community and motoring public.

Provide and maintain beautiful parks for the community.

Maintain all City sidewalks, pathways
and trails for the community.

Maintain and operate the City’s vast
sewer network.

Maintain and operate the City’s vast
drainage network.

Maintain the City’s fleet of vehicles
including Public Works, Fire, Police,
Administration, Community Services,
Planning and Pool vehicles.

Manage and operated all 54 traffic
signals citywide via the Traffic Management Center. 92

Maintain all City Buildings.

Purchase one Kona Electric Vehicle
Construction of two Dual-point EV Charging Stations for the Police Department.

Complete the Construction of Sewer Structural Improvements in various locations.

Complete Phase VI of Pipeline Condition Assessments.

Collaborate with OCTA on the Regional Traffic Signal Synchronization along Harbor Blvd.

Collaborate with the City of La Habra on the Regional Traffic Signal Synchronization along Euclid Street.

Continue the Regional Traffic Signal Synchronization along Brookhurst St.

Continue the Regional Traffic Signal Synchronization along Magnolia St.

Continue the Regional Traffic Signal Synchronization along Edinger Ave.

Continue the Regional Traffic Signal Synchronization along Warner Ave.

Continue the Regional Traffic Signal Synchronization along Talbert Ave.

Continue the Regional Traffic Signal Synchronization along Slater Ave.

Complete the construction of the Residential Roadway Rehabilitation in the area of D3.

Complete the City’s Yearly CIP Management Planning.

Complete the City’s annual Measure Eligibility Placket
Complete the City’s SB1 Eligibility Packet.

Installation of one Audible Pedestrian Signal.

Complete the construction of eight (8) traffic signal modification plans.

Complete the construction of the Pavement Rehabilitation Improvements on Heil Ave from Euclid St to Harbor Blvd.

Award a design contract for the Edinger paving project from Newhope to Harbor
Collaborate with City of Westminster on the paving of Magnolia from Edinger to Heil.

Collaborate with City of Huntington Beach on the paving of Newland from Slater to Talbert
Complete the construction of the Pavement Rehabilitation Improvements for the Fountain Valley Recreation Center and Sports Park Internal road network.

Continue work on the City’s Drainage GIS mapping.

Continue work on the City’s Water GIS mapping.

Continue work on the City’s Sewer GIS mapping. 93

Complete the Construction of City’s Sewer Structural Improvement Project in Various areas SF620-5.

Complete the rehabilitation of various sewer manholes throughout the City Complete the construction of the Mt. Baldy/Euclid Pipeline Replacement Project Complete the construction of the Talbert Channel Repair Construction Project.

Complete the City’s Annual Fire Hydrant Replacement Project.

Begin the Construction of the PD Restrooms/Shower Facilities Project.

Award an architectural design Contract for the Fire Station No. 1 Remodel Award Design and Construction Contract for the Universally Accessible Playground Equipment Project
Award Construction contract for the Recreation Center Out buildings Award Construction contract for the City Hall interior remodel project Award Design Contract for HVAC & Edison Improvements for the Field Concession Buildings
City Hall Drought Tolerant Landscape project
Water Facility Drought Tolerant Landscape project.

Citywide Median Landscape Project Phase 1
Tennis Center Fence Replacement
Water Delivery System Improvement Project (SCADA, UMC Servers, PC, Video Wall replacement)
City Traffic Signal System Equipment Improvement Project City Sports Park Walking Trail Fitness Equipment/Landscape Project Complete the design for Well No. 6 Rehabilitation Project WU703.

Complete the design for Well No. 8 Rehabilitation Project WU806.

Complete the design for Well No. 11 Rehabilitation Project WU807.

Complete the installation of Chlorine Generators for Project WU825.

Solicit and award consultant contract for the Update of Water Master Plan.

Solicit and award consultant contract for Sewer Master Plan.

Solicit and award consultant contract for water rate study.

Solicit and award consultant contract for sewer rate study.

Solicit and award consultant contract for the Drainage Master Plan.

Continue to manage and protect the City’s interest in regards to OCTA’s & Caltrans I-405 widening project.
94

FY19/20
Actual
FY20/21
Actual
FY21/22
Revised
FY22/23
Proposed
Percent
Change

EXPENSES BY DEPARTMENT
Salaries & Benefits $ 5,835,558 $ 5,513,409 $ 6,425,522 $ 6,974,905 9% Internal Service Charges $ 2,031,296 $ 2,312,137 $ 2,156,158 $ 2,916,531 35% Operating Expense $ 17,792,652 $ 16,363,286 $ 19,751,336 $ 16,691,275 -15% Total Expenses by Department $ 25,659,506 $ 24,188,832 $ 28,333,016 $ 26,582,711 -6%

EXPENSES BY DIVISION
Engineering
Salaries & Benefits $ 317,944 $ 301,877 $ 331,598 $ 384,447 16% Internal Service Charges $ 177,344 $ 176,250 $ 186,868 $ 250,045 34% Operating Expense $ 14,873 $ 47,851 $ 299,445 $ 399,645 33% Total Engineering $ 510,161 $ 525,978 $ 817,911 $ 1,034,137 26% Traffic Engineering
Salaries & Benefits $ 224,786 $ 205,425 $ 197,697 $ 266,532 35% Internal Service Charges $ 80,605 $ 79,195 $ 82,591 $ 106,976 30% Operating Expense $ 2,049 $ 2,087 $ 4,495 $ 6,015 34%
Total Traffic Engineering $ 307,440 $ 286,707 $ 284,783 $ 379,523 33% Construction Inspection
Salaries & Benefits $ 134,065 $ 130,432 $ 121,009 $ 196,201 62% Internal Service Charges $ 57,744 $ 56,671 $ 57,831 $ 75,623 31% Operating Expense $ 299 $ - $ 380 $ 25,380 6579%
Total Construction Inspection $ 192,108 $ 187,103 $ 179,220 $ 297,204 66% Street Lighting
Salaries & Benefits $ 14,777 $ 14,158 $ 14,696 $ 25,614 74% Internal Service Charges $ 7,844 $ 8,281 $ 8,598 $ 11,652 36% Operating Expense $ 370,375 $ 357,216 $ 320,000 $ 295,000 -8% Total Street Lighting $ 392,996 $ 379,655 $ 343,294 $ 332,266 -3% Rights of Ways
Salaries & Benefits $ 159,012 $ 123,268 $ 124,582 $ 180,882 45% Internal Service Charges $ 84,936 $ 82,275 $ 86,396 $ 123,508 43% Operating Expense $ 288,056 $ 380,509 $ 434,920 $ 450,841 4% Total Rights of Ways $ 532,004 $ 586,052 $ 645,898 $ 755,231 17% Tree Maintenance
Salaries & Benefits $ 96,878 $ 87,195 $ 75,981 $ 99,231 31% Internal Service Charges $ 79,889 $ 76,905 $ 78,781 $ 109,449 39% Operating Expense $ 277,524 $ 289,209 $ 336,280 $ 366,280 9% Total Tree Maintenance $ 454,291 $ 453,309 $ 491,042 $ 574,960 17%

PUBLIC WORKS
95

PUBLIC WORKS
Park Maintenance
Salaries & Benefits $ 188,659 $ 141,968 $ 168,156 $ 258,327 54% Internal Service Charges $ 83,307 $ 94,636 $ 89,328 $ 118,398 33% Operating Expense $ 472,368 $ 521,376 $ 563,368 $ 630,118 12% Total Park Maintenance $ 744,334 $ 757,980 $ 820,852 $ 1,006,843 23% Concrete Maintenance
Salaries & Benefits $ 303,917 $ 308,743 $ 348,735 $ 302,787 -13% Internal Service Charges $ 137,130 $ 151,792 $ 146,088 $ 200,401 37% Operating Expense $ 1,760 $ 2,553 $ 3,300 $ 3,300 0%
Total Concrete Maintenance $ 442,807 $ 463,088 $ 498,123 $ 506,488 2% Pavement Maintenance
Salaries & Benefits $ 308,190 $ 315,483 $ 358,096 $ 314,583 -12% Internal Service Charges $ 140,318 $ 159,581 $ 152,499 $ 208,179 37% Operating Expense $ 3,885 $ 3,689 $ 6,600 $ 31,600 379% Total Pavement Maintenance $ 452,393 $ 478,753 $ 517,195 $ 554,362 7% Storm Drain Maintenance
Salaries & Benefits $ 399,230 $ 382,720 $ 429,834 $ 508,473 18% Internal Service Charges $ 57,018 $ 56,819 $ 56,078 $ 75,568 35% Operating Expense $ 17,130 $ 27,069 $ 37,500 $ 22,700 -39% Total Storm Drain Maintenance $ 473,378 $ 466,608 $ 523,412 $ 606,741 16% Traffic Control
Salaries & Benefits $ 145,164 $ 140,662 $ 182,578 $ 212,905 17% Internal Service Charges $ 126,055 $ 143,202 $ 135,000 $ 181,878 35% Operating Expense $ 201,080 $ 225,089 $ 271,200 $ 91,200 -66% Total Traffic Control $ 472,299 $ 508,953 $ 588,778 $ 485,983 -17% Street Sweeping
Salaries & Benefits $ 19,086 $ 12,625 $ 18,825 $ 22,642 20% Internal Service Charges $ 11,838 $ 10,686 $ 12,816 $ 20,415 59% Operating Expense $ 314,899 $ 384,066 $ 383,285 $ 383,285 0% Total Street Sweeping $ 345,823 $ 407,377 $ 414,926 $ 426,342 3% Recreation Center
Salaries & Benefits $ 200,419 $ 138,424 $ 171,192 $ 131,182 -23% Internal Service Charges $ 201,271 $ 255,345 $ 233,178 $ 309,901 33% Operating Expense $ 520,592 $ 548,645 $ 538,400 $ 667,730 24% Total Recreation Center $ 922,282 $ 942,414 $ 942,770 $ 1,108,813 18% Graffiti Removal
Salaries & Benefits $ 79,820 $ 37,458 $ 111,660 $ 242,309 117% Internal Service Charges $ 66,387 $ 91,528 $ 81,429 $ 107,886 32% Operating Expense $ 7,260 $ 6,078 $ 10,200 $ 10,200 0%
Total Graffiti Removal $ 153,467 $ 135,064 $ 203,289 $ 360,395 77% Total General Fund $ 6,395,783 $ 6,579,041 $ 7,271,493 $ 8,429,288 11% 96

PUBLIC WORKS

EXPENSES BY DIVISION
Pollution Reduction
Salaries & Benefits $ - $ 1,109 $ 1,249 $ 6,560 425%
Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ - $ - $ 3,886 $ 7,000 80%
Total Pollution Reduction $ - $ 1,109 $ 5,135 $ 13,560 164% Government Buildings (ISF)
Salaries & Benefits $ 67,153 $ 67,332 $ 73,223 $ 176,282 141% Internal Service Charges $ - $ - $ - $ - 0%
Operating Expense $ 111,964 $ 111,523 $ 322,364 $ 1,155,014 258% Total Government Buildings $ 179,117 $ 178,855 $ 395,587 $ 1,331,296 237% Fleet Management (ISF)
Salaries & Benefits $ 499,448 $ 480,579 $ 494,563 $ 670,508 36% Internal Service Charges $ 26,660 $ 13,762 $ 9,594 $ 17,310 80% Operating Expense $ 562,284 $ 593,510 $ 1,395,152 $ 2,316,200 66% Total Fleet Management $ 1,088,392 $ 1,087,851 $ 1,899,309 $ 3,004,018 58% Sewer Fund
Salaries & Benefits $ 541,663 $ 568,397 $ 597,950 $ 601,571 1% Internal Service Charges $ 193,951 $ 301,980 $ 228,504 $ 298,300 31% Operating Expense $ 448,906 $ 2,473,882 $ 3,063,302 $ 287,784 -91% Total Sewer Fund $ 1,184,520 $ 3,344,259 $ 3,889,756 $ 1,187,655 -69% Water Fund
Salaries & Benefits $ 2,135,347 $ 2,055,554 $ 2,603,898 $ 2,373,869 -9% Internal Service Charges $ 498,999 $ 553,229 $ 510,579 $ 701,042 37% Operating Expense $ 14,177,348 $ 10,388,934 $ 11,757,259 $ 9,541,983 -19% Total Water Fund $ 16,811,694 $ 12,997,717 $ 14,871,736 $ 12,616,894 -15% Total Other Funds $ 19,263,723 $ 17,609,791 $ 21,061,523 $ 18,153,423 -14% 97