Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.
A G E N D A
JOINT GONZALES CITY COUNCIL
AND
GONZALES SUCCESSOR AGENCY
BUDGET MEETING
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, JUNE 6, 2022
5:00 P.M.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
1. ROLL CALL- City Council/Successor Agency
Mayor Pro Tem/Vice Chair Scott Funk, Council/Agency Member Liz Silva, Council/Agency Member Lorraine Worthy, Council/Agency Member Paul Miller, Mayor/Chair Jose L. Rios
Youth Commissioners
Sherlyn Flores and Autumn Escobedo
Successor Agency Item
PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/83990946309 or call 1-1669-900-6833 and use Meeting ID: 839 9094 6309.
If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.
If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on Monday, June 6th to the City Clerk at [email protected]
BUSINESS FROM THE PUBLIC
2. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed three minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action. *
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.
CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.
3. Consider Approval of Resolution No. 2022-36, A Resolution of the City Council of the City of Gonzales Establishing the Appropriations Subject to Limit for the City of Gonzales for the 2022- 2023 Fiscal Year
4. Consider Approval of Resolution No. 2022-37, A Resolution of the City Council of the City of Gonzales Certifying Compliance with State Law with Respect to the Levying of General and Special Taxes, Assessments, and Property Related Fees and Charges
REGULAR AGENDA
5. Consider Approval of 1) Resolution No. 2022-38, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2022 through June 30, 2023 and providing for the Appropriations and Expenditures of All Sums Set Forth Therein, and 2) Resolution No. SA-2022-02, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2022 and June 30, 2023 a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2022-38; Adopt Resolution No. SA2022-02; Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan; Affirm the City’s Reserve (Fund) Balances for all Funds; Authorize the City Manager and Finance Director to Realign the Budget for Fiscal Year 2021-2022 to Reflect the Actual Revenues and Expenditures for the 2021-2022 Fiscal Year; and if needed, direct staff to make changes as necessary and schedule adoption of the Recommended Budget for the City and Successor Agency on June 9, 2022, at 5:00pm
6. Gonzales Youth Council FY 2021-2022 End of Year Presentation a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive presentation
ADJOURNMENT
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-
35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are available online.
RESOLUTION NO. 2022-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES
ESTABLISHING THE APPROPRIATIONS SUBJECT TO LIMIT FOR THE CITY OF GONZALES FOR THE 2021-2023 FISCAL YEAR
WHEREAS, Section 37200 of the Government Code provides for the payment of demands based on the adoption of an annual budget; and
WHEREAS, the City Manager has presented a proposed budget to the City Council for the 2022-2023 fiscal year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gonzales that:
1. In accordance with Section 2227 of the California Revenue & Taxation Code, the appropriations limit for the City of Gonzales for the 2022-2023 Fiscal Year, as set forth in Exhibits A & B, attached hereto, is $10,315,742.19.
2. Pursuant to Article XIIIB of the California Constitution, appropriations subject to limit for the 2022-2023, as set forth in Exhibit A, attached hereto, are $5,156,000.
3. The appropriation figures in the schedule attached hereto shall serve as the approved budget for the City of Gonzales for the 2022-2023 Fiscal Year, pursuant to Section 37200 of the Government Code of the State of California.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 6
th day of June 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
________________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
_________________________
René L. Mendez, City Clerk
Packet Pg. 3
Attachment: Resol 22-36 GANN Appropriations (2446 : Resolution No. 2022-36 GANN Appropriations) AGENDA
ITEM
3 EXHIBIT [A]
FISCAL YEAR 2022-2023
APPROPRIATIONS LIMITATION
Article XIIIB of the California Constitution specifies that “Appropriations made by State and Local Governments may increase annually by a Factor comprised of the Change in Population combined either with the Change in California Per Capital Personal Income or the Local Assessment Roll due to Local Nonresidential Construction.” Per Capita Change 7.55% Converted to a
Factor
1.0755
Population Change -1.79% Converted to a
Factor
0.9821
Ratio of Change 1.0755 (x) 0.9821 (=) 1.0562
2020-2021 Appropriations Limit: $9,766,845.47
Factor 1.0562
2021-2022 Appropriations Limit: $10,315,742.19
The Amount subject to the Appropriations Limit is calculated as follows:
2022-2023 PROPOSED BUDGET
(1) Property Taxes $888,000
(2) Sales and Use Tax $2,850,000
(3) Utility Users Tax $250,000
(4) Business License Tax $70,000
(5) Transient Occupancy Tax $2,000
(6) Other Taxes:
- Real Estate Transfer Tax
- Homeowner’s Property Tax
Relief (HOPTR)
$11,000
(7) Interest (Prorated) $5,000
(8) Motor Vehicle In-Lieu Tax $1,080,000
Total Amount subject to Limitations $5,156,000
Packet Pg. 4
Attachment: Exhibit A - GANN Appropriations (2446 : Resolution No. 2022-36 GANN Appropriations) EXHIBIT [B]
CALIFORNIA
DEPARTMENT OF FINANCE
FISCAL YEAR 2022-2023
SUPPORTINGDOCUMENTATION
Packet Pg. 5
Attachment: Exhibit A - GANN Appropriations (2446 : Resolution No. 2022-36 GANN Appropriations)
EXHIBIT B
Packet Pg. 6
Attachment: Exhibit B - Dept of Finance Ltr (2446 : Resolution No. 2022-36 GANN Appropriations) Packet Pg. 7
Attachment: Exhibit B - Dept of Finance Ltr (2446 : Resolution No. 2022-36 GANN Appropriations) Packet Pg. 8
Attachment: Exhibit B - Dept of Finance Ltr (2446 : Resolution No. 2022-36 GANN Appropriations) RESOLUTION NO. 2022-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES
CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE
LEVYING OF GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND PROPERTY
RELATED FEES AND CHARGES
WHEREAS, the City of Gonzales requests that the Monterey County Auditor-Controller enter those general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A” on the tax roll for collection and distribution by the Monterey County Treasurer-Tax Collector commencing with the property tax bills for fiscal year 2022-2023; and NOW, THEREFORE, BE IT RESOLVED as follows:
1. The City of Gonzales hereby certifies that it has, without limitation, complied with all legal procedures and requirements necessary for the levying and imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A”, regardless of whether those procedures and requirements are set forth in the Constitution of the State of California, in State statues, or in the applicable decisional law of the State of California.
2. The City of Gonzales further certifies that, except for the sole negligence or misconduct of the County of Monterey, its officers, employees, and agents, the City of Gonzales shall be solely liable and responsible for defending, at its sole expense, cost, and risk, each and every action, suit, or other proceeding brought against the County of Monterey, its officers, employees, and agent for every claim, demand, or challenge to the levying or imposition of the general or special taxes, assessments, or property-related fees or charges identified in Exhibit “A” and that it shall pay or satisfy any judgment rendered against the County of Monterey, its officers, employees, and agents on every such action, suit, or other proceeding, including all claims for refunds and interest thereon, legal fees and court costs, and administrative expenses of the County of Monterey to correct the tax rolls.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 6
th of June 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Jose L. Rios, The Honorable Mayor
ATTEST:
Mary Villegas, Deputy City Clerk
Packet Pg. 9
Attachment: Resol 22-37 (2447 : Resolution No. 2022-37 Levying Taxes) AGENDA
ITEM
4 EXHIBIT “A”
CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE LEVYING OF
GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND
PROPERTY-RELATED FEES AND CHARGES
FISCAL YEAR 2022-2023
GENERAL TAXES: NONE
SPECIAL TAXES: SEC ASSESSMENT FEE #87101 1
ST RESPONDER ENHANCED
EMERGENCY MEDICAL SERVICES
SPECIAL TAX TO TITLE 3 -
REVENUE AND FINANCE OF THE
GONZALES MUNICIPAL CODE
ASSESSMENTS: SEC ASSESSMENT BND #57300 CAL BREEZE PARKS AND OPEN SPACES MAINT. - PHASE I,II,III
SEC ASSESSMENT BND #57600 CAL BREEZE BENEFIT - PHASE I
SEC ASSESSMENT BND #57500 CAL BREEZE BENEFIT - PHASE II SEC ASSESSMENT BND #57700 CAL BREEZE BENEFIT - PHASE III SEC ASSESSMENT BND #57900 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE I
SEC ASSESSMENT BND # 57000 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE II
SEC ASSESSMENT BND #57002 CANYON CREEK PARKS AND
OPEN SPACES MAINT. – PHASE III
SEC ASSESSMENT BND #58000 CANYON CREEK BENEFIT- PHASE I SEC ASSESSMENT BND #57001 CANYON CREEK BENEFIT-PHASE II SEC ASSESSMENT BND #57003 CANYON CREEK BENEFIT-PHASE III SEC ASSESSMENT BND #57005 CIPRIANI ESTATES PARK AND
OPEN SPACES MAINTENANCE
SEC ASSESSMENT BND #57004 CIPRIANI ESTATES BENEFIT
SEC ASSESSMENT BND #57101 GONZALES INDUSTRIAL PARK
LANDSCAPE MAINTENANCE DISTRICT
SEC ASSESSMENT BND #57102 GONZALES INDUSTRIAL PARK
BENEFIT ASSESSMENT DISTRICT
Packet Pg. 10
Attachment: Exhibit A - Taxes List (2447 : Resolution No. 2022-37 Levying Taxes) City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 6, 2022
FROM: Rene Mendez, City Manager
SUBJECT: FY 2022-2023 City and Successor Agency Budget
RECOMMENDATION
It is recommended that your Council and Successor Agency Board:
• Consider and Adopt Resolution No. 2022-38, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2022, through June 30, 2023, providing for the Appropriations and Expenditures of All Sums Set Forth Therein; • Consider and Adopt Resolution SA-2022-02, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2022, and June 30, 2023; • Included in the 2022-2023 Recommended Budget; Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan; • As Included in the 2022-2023 Recommended Budget, Affirm the City’s Reserve (Fund) Balances for all Funds;
• Authorize the City Manager and Finance Director to Realign the Budget for Fiscal Year 2021- 2022 to Reflect the Actual Revenues and Expenditures for the 2021-2022 Fiscal Year; and • If needed, direct staff to make changes as necessary and schedule adoption of the Recommended Budget for the City and Successor Agency on June 9, 2022, at 5:00pm.
BACKGROUND
The annual adoption of the City Budget before the end of the fiscal year (June 30), is a very important step and required by the State Budget Act to establish the fiscal road map for the new fiscal year, which begins July 1st. The budget not only conveys to everyone the spending priorities of the City and fiscal plan, but at its most basic level, it allows the City to continue to operate after July 1st of every year.
To streamline the process, included in the Recommended Budget are the FY 2021-2022 Year-End Estimates. In previous years, this has been provided in a separate report.
AGENDA
ITEM
5 Packet Pg. 11
REVIEW AND ANALYSIS
The Recommended City and Successor Agency Budget for FY 2022-2023 is balanced and maintains Council priority. As is mentioned in the FY 2022-2023 Budget Message, the Recommended Budget sets forth total Budget Requirements in the amount of $32 million, which is $12.9 million higher than the FY 2021-2022 amount. The main reason for the change is the net result of (a) the Community Center Complex Project, (b) the wastewater expansion and rehabilitation project, (c) an increase in personnel costs in the Fire Department, (d) increases in workers’ compensation and liability insurance costs, and (e) funding for the first full year of recently approved cost-of-living-adjustments for all employees.
Of the overall budget amount, the General Fund appropriations total $7,614,543 million, which is $660,737 or 9.5% higher than the FY 2021-2022 Budget amount of $6,953,806. The change is being driven primarily by the Community Center Complex Project, increase in insurance costs, the recently approved cost-of-living-adjustments for all employees, and the increase in the three fulltime Firefighter positions approved for the Fire Department.
Overall, revenues are $30.6 million; of that, the General Fund is $7,614,543, which is $875,737 or 12.9% higher than FY 2021-2022. The main reason for the change is the increase in the loan and/or grant for the wastewater expansion and rehabilitation project.
While the FY 2022-2023 is conservative, it reflects many positive attributes. For example, it funds all authorized positions, maintains core operations, continues the “Internet for All” initiative, maintains and proactively continues the development of the Gonzales Agricultural Industrial Business Park (GAIBP), and funds the City’s share of the South Salinas Valley Broadband JPA.
Also, on the positive side, though COVID-19 paused many aspects of the local economy, several businesses came online. For example: (a) a long-term staple of the community, El Rinconcito Restaurant is under new ownership; and (b) Papé Material Handling opened for business. In addition, the City (a) made great strides with Concentric Power to put together all the necessary pieces to begin construction of the microgrid in 2023; (b) finalized the plans for the Wastewater Treatment Plant and certified the environmental impact report (EIR); and (c) finalized and approved the Enhanced Infrastructure Financing District (EIFD) with the County.
The Recommended Budget also reflects resources to finish the Supplemental Environmental Impact Report (EIR) and fiscal plan needed for the next growth phase for the City. Once completed, the EIR and fiscal plan will be used to help complete and inform the application to the Local Agency Formation Commission (LAFCO) to annex up to 1,300 acres into the City.
On the health side, the budget reflects jointly funding a LCSW to increase mental health resources for the community; the development of an agreement with the Salinas Valley Memorial Health Care System, the County Behavioral Health Department, and other mental health providers to develop a plan for the community.
On the capital infrastructure side, the Recommended Budget reflects funds to begin construction of the Wastewater Treatment Facility expansion and rehabilitation project and finish the design and begin the construction phase of the Community Center Complex project.
The budget continues to reflect key initiatives to proactively grow the City’s business base, which over time, will continue to increase sales and property tax revenues, more jobs; and overall, a more healthy and vibrant local economy. Some of the key efforts include (a) continued focused work with the property owners in the Gonzales Agricultural Industrial Business Park (GAIBP); (b) implementation of the energy Packet Pg. 12
microgrid project to provide renewable (green) power to sustain business growth in the GAIBP; and (c) working with the Chamber of Commerce on a downtown revitalization project.
The Recommended Budget also maintains a great emphasis in the City’s youth initiatives and programs and reflects utilizing the second payment of American Rescue Plan (ARP) to fund extending the TMobile Hotspot program and other allowable expenses.
Even though the General Fund does not contemplate the use of Fund Balance, as your Council reviews the budget document, please keep in mind that any increases in expenditures or funding new programs and/or initiatives should be done cautiously because they will need to be taken from another section of the budget. This approach is recommended, because it is important to preserve our General Reserve and Fund Balance amount.
NOTE: Please refer to the FY 2022-2023 City and Successor Agency Recommended Budget document for a more detail look at the City’s Budget.
In addition, while included in the Recommended Budget, the recommended actions call out (a) approving the Position Allocations and the Salary Schedule of the City Classification and Compensation Plan and (b) affirming the City’s Reserve (Fund) Balances for all funds.
FY 2021-2022 Year End Projections
To streamline the process this year the FY 2021-2022 Year-End Projections are included as part of this action. Based on projected expenditures and revenues, the year-end General Reserve Fund Balance is estimated to finish at $1,044,602.
Changes reflected in the:
General Fund include;
1. Converting the 3 eight-month fulltime seasonal Firefighter positions to permanent fulltime positions,
2. Funding for the first full year of the recently approved cost-of-living-adjustments for all employees;
3. Increase in expenditures and revenues for the After-school program;
4. Reductions in building and planning permit revenues; and
5. Reductions in other income – reimbursement revenues.
Other Funds include;
1. Increase in revenues and expenditures in the COVID-19 Fund;
2. The costs to cover the purchase of the South Alta street property to build future senior housing; and
3. Changes in both the Water and Sewer Enterprise Funds driven by actual and expected activity.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Obtaining approval and/or policy direction on the Recommended Budget, is important because it allows staff to obtain the necessary policy direction to maintain a healthy financial position for the City and continue the work on a sustainable long-term budget. A sustainable Packet Pg. 13
long-term budget is important because it assures the financial health of the City is maintained, which is necessary to assure a safe, clean, and family friendly community.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___No ___ NA
Explain: Please see Vision above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ____No ____NA
• Housing X Yes ____No ____NA
• Recreation X Yes ____No ____NA
• Environment X Yes ____No ____NA
• Education X Yes ____No ____NA
Explain: Please see explanation above.
ALTERNATIVES
Alternatives include directing staff to modify and/or change the FY 2022-2023 Recommended City and/or Successor Agency Budget and bring it back for adoption on June 9, 2022.
BUDGET IMPACT
Please refer to the FY 2022-2023 Recommended City and Successor Agency Budget. In addition, based on the direction received from Council, the budget impacts may change, and will ultimately be reflected in the approved budget.
CONCLUSION
I would like to take this opportunity to express my appreciation to all City staff, Michael Rodriguez (City Attorney), and Mike Howard (Finance) whose dedicated service, cooperation, and commitment to excellent Public Service “Gonzales Way” make all the programs, initiatives, and services funded in the FY 2022-2023 Recommended Budget a possibility. In particular, I would like to acknowledge and thank Mrs. Mary Villegas for her amazing work not only on this document, but also for her ability to keep the City Manager’s Office organized and moving forward.
As my tenure comes to end and I present my last budget, I want to thank each Council Member that I have had a privilege to work for and with, all the employees, countless agencies and non-profit organizations, the many consultant partners and perhaps more importantly, the community that has allowed and afforded me the privilege to serve for almost two decades. While we certainly have had our share of challenges, the commitment to community and service has been without question exceptional and a model to other communities. Gonzales is an amazing place with an incredible future that I have no doubt will continue to shine bright and be a role model for other communities.
It is recommended that your Council and Successor Agency Board:
• Consider and Adopt the Resolution No. 2022-38, A Resolution of the City Council of the City of Gonzales Adopting an Operating Budget for the City for the Fiscal Year July 1, 2022, through Packet Pg. 14
June 30, 2023, and providing for the Appropriations and Expenditures of All Sums Set Forth Therein;
• Consider and Adopt the Resolution SA-2022-02, A Resolution of the City Council of the City of Gonzales Acting as Successor Agency for the Gonzales Redevelopment Agency Approving and Adopting a Successor Agency Budget for the Period Between July 1, 2022, and June 30, 2023; • Included in the 2022-2023 Recommended Budget; Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan; • As Included in the 2022-2023 Recommended Budget, Affirm the City’s Reserve (Fund) Balances for all Funds;
• Authorize the City Manager and Finance Director to Realign the Budget for Fiscal Year 2021- 2022 to Reflect the Actual Revenues and Expenditures for the 2021-2022 Fiscal Year; and • If needed, direct staff to make changes as necessary and schedule adoption of the Recommended Budget for the City and Successor Agency on June 9, 2022, at 5:00pm.
Attachments:
1. Resol 22-38 Adopting FY 22-23 Budget
2. Resol SA-2022-02 Adopting FY 22-23 Budget
3. Budget FY 2022-2023
Packet Pg. 15
RESOLUTION NO. 2022-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES ADOPTING AN OPERATING BUDGET FOR THE CITY FOR THE FISCAL YEAR JULY 1, 2022, THROUGH JUNE 30, 2023, AND PROVIDING FOR THE APPROPRIATIONS AND
EXPENDITURES OF ALL SUMS SET FORTH THEREIN
RECITALS
WHEREAS, the City Manager has submitted to the City Council of Gonzales a Fiscal Year 2022-2023 Recommended Budget; and
WHEREAS, after conducting a public hearing on the proposed budget, the City Council has approved the same; and
WHEREAS, it is the intention of the Council to adopt the proposed budget as submitted by the City Manager; and
DECISION
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Gonzales as follows:
1. That certain document referred to as “The Fiscal Year 2022-2023 City and Successor Agency Recommended Budget” presented by the City Manager is hereby adopted and the appropriations for the annual budget of the City of Gonzales for the fiscal year beginning on July 1, 2022, and ending on June 30, 2023, is hereby adopted; and
2. That the amounts stated in the proposed budget shall become and thereafter be appropriated to the offices, departments, activities, objects, and purposes stated therein and said monies are hereby authorized to be expended for the purposes and objects specified in said budget;
3. The City Manager is authorized to approve expenditure adjustments within individual funds so long as the total appropriated within each major fund is not exceeded;
4. Approve the Position Allocation and the Salary Schedule of the City Classification and Compensation Plan Included in the Fiscal Year 2022-2023 Recommended Budget; and
5. Affirm the City’s Reserve (Fund) Balances for all Funds reflected in the Fiscal Year 2022- 2023 Recommended Budget;
6. Authorize the City Manager and Finance Director to Realign the Budget for Fiscal Year 2021-2022 to Reflect the Actual Revenues and Expenditures for the 2021-2022 Fiscal Year;
PASSED AND ADOPTED by the City Council of the City of Gonzales on the 6 th day of June
2022 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Jose L. Rios, The Honorable Mayor
ATTEST:
Mary Villegas, Deputy City Clerk
Packet Pg. 16
Attachment: Resol 22-38 Adopting FY 22-23 Budget (2449 : FY 2022-2023 City and Successor Agency Budget)
RESOLUTION NO. SA-2022-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES ACTING
AS SUCCESSOR AGENCY FOR THE GONZALES REDEVELOPMENT AGENCY
APPROVING AND ADOPTING A SUCCESSOR AGENCY BUDGET FOR THE PERIOD BETWEEN JULY 1, 2022 AND JUNE 30, 2023
WHEREAS, the City of Gonzales is the designated Successor Agency of the Gonzales Redevelopment Agency within the meaning of AB 26; and
WHEREAS, the City of Gonzales, acting as Successor Agency for the Gonzales Redevelopment Agency (“Successor Agency”) has adopted, and the Oversight Board has approved, the Successor Agency ROPS, which identifies Successor Agency enforceable obligations and administrative expenses, for the period between July 1, 2022 through June 30, 2023; and
WHEREAS, Section 34177(j) of the California Health and Safety Code provides that the Successor Agency shall prepare an administrative budget (Administrative Budget”) and submit the same to the Oversight Board of the Successor Agency for its approval: and WHEREAS, the Administrative Budget shall include the following:
(1) Estimated amounts for successor agency administrative costs for the upcoming sixmonth fiscal period; (2) Proposed sources of payment for the costs identified in subparagraph (1); and (3) Proposals for arrangements for administrative and operations services provided by a city, county, city and county, or other entity; and
WHEREAS, Section 34177(k) of the California Health and Safety Code requires the Successor Agency to provide administrative cost estimates, from its approved Administrative Budget, that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the Monterey County Auditor-Controller for each six month fiscal period; and
WHEREAS, the Successor Agency Director has submitted to the Successor Agency Board a Fiscal Year 2022-2023 Recommended Budget that incorporates an Administrative Budget (based on disclosures in the afore-referenced July-June. ROPS) as well as a budget for all Successor Agency operations, including but not limited to payment of enforceable obligations and asset disposition efforts, for said Fiscal Year; and WHEREAS, the Successor Agency has reviewed and duly considered the Recommended Budget, and other written evidence presented at the meeting; and WHEREAS, the Successor Agency Board, after receipt of public comment and discussion, as offered or needed, to adopt the proposed budget as submitted by the Successor Agency Director; and
Packet Pg. 17
Attachment: Resol SA-2022-02 Adopting FY 22-23 Budget (2449 : FY 2022-2023 City and Successor Agency Budget)
WHEREAS, under Title 14 of the California Code of Regulations, Section 15061(b)(3), the approval of the Budget is exempt from the requirements of the California Environmental Quality Act, in that it is a not a project as the adoption of the Budget will not have the potential of causing a significant environmental effect and it can be seen with certainty that there is no possibility that the adoption of the Budget will have any significant effect on the environment.
NOW THEREFORE, be it hereby resolved by the Successor Agency as follows:
Section 1. The Successor Agency hereby finds and determined that the recitals set forth above are true and correct to the best of its knowledge, and by this reference, are incorporated herein.
Section 2. That certain document referred to as “The Fiscal Year 2022-2023 Successor Agency Recommended Budget” presented by the Successor Agency Director is hereby adopted and the appropriations for the annual budget of the Successor Agency for the Fiscal Year beginning on July 1, 2022 and ending on June 30, 2023, are hereby approved.
Section 3. The Successor Agency authorizes the Executive Officer to:
(1) Take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the Budget on behalf of the Successor Agency.
PASSED AND ADOPTED by the City Council of the City of Gonzales acting as the Successor Agency Board for the Gonzales Redevelopment Agency on the 6 th day of June 2022,
by the following vote:
AYES: SUCCESSOR AGENCY MEMBERS:
NOES: SUCCESSOR AGENCY MEMBERS:
ABSTAIN: SUCCESSOR AGENCY MEMBERS:
ABSENT: SUCCESSOR AGENCY MEMBERS:
Jose L. Rios, The Honorable Chair
ATTEST:
Mary Villegas, Deputy Successor Secretary
Packet Pg. 18
Attachment: Resol SA-2022-02 Adopting FY 22-23 Budget (2449 : FY 2022-2023 City and Successor Agency Budget) Phone: (831) 675-5000 P.O. Box 647 e-mail: [email protected] Fax: (831) 675-2644 Gonzales, CA 93926 web address: www.gonzalesca.gov Fiscal Year 2022-2023
CITY
&
SUCCESSOR AGENCY
Recommended Budget
(June 6, 2022)
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to
working collaboratively to preserve and retain its small town charm
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) UPFRONT SECTION Page
Organizational Chart 1
Transmittal Letter 2
Budget Message 4
Exhibit A (Fund Balance Summary)
Exhibit B (Budget Summary of all Funds)
Exhibit C (Interfund Transfer Reconciliation)
Exhibit D (Classification Plan FY 2022-2023)
UNIT # GENERAL FUND
000 General Purpose Revenues 25
100 City Council 30
110 City Manager/City Clerk 33
130 Finance Department 39
150 City Attorney 42
160 Community Development Department 45
170 General Governmental Buildings 49
200 Non Departmental 52
300 Police Department 55
310 Fire Department 59
320 Building Regulation 63
400 Public Works Department 67
500 Parks Department 72
510 Recreation Services 75
511 After School Program 79
515 City Aquatics 82
550 Youth Development & Leadership Initiative 85
800 Quality of Life Tax Measure K 88
850 Quality of Life Tax Measure X 92
900 General Fund Debt Service 95
FUND # OTHER FUNDS
110 COVID-19 97
111 American Rescue Plan 100
120 Community Development 103
123 Business Loan Grant Program 106
124 Air Pollution Control Fund 109
127 Urban County (CDBG) 112
130 Street Fund 115
136 Measure X Transportation Program 119
137 SB1 Transportation Program 122
150 Supplemental Law Enforcement 125
190 Fire Impact 128
TABLE OF CONTENTS
FY 2022-2023 City & Successor Agency Budget
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Page
FUND # OTHER FUNDS CONT.
200 General Plan Impact 131
201 Sphere of Influence Impact Fund 133
210 Public Safety 136
220 Police Impact 139
230 Sewer Impact 142
235 Circulation System Impact 145
240 Water Impact 148
241 Public Facilities Impact 151
242 Public Uses Impact 154
245 Storm Drainage Facilities Impact Fee 157
250 Park Impact 160
260 Intersection Improvement 163
270 CA Breeze Park & Open Space Maintenance Assmt. Dist. Phase I, II, & III 166 280, 290, 300 CA Breeze Benefit Assessment District 170 302 Canyon Creek Park & Open Space Maintenance Assmt. Dist. Phase I, II, & III 173 304, 306, 308 Canyon Creek Benefit Assessment Districts Phase I, II & III 176 310 Cipriani Estates Park & Open Space Maintenance Assessment District 179 312 Cipriani Estates Benefit Assessment 182
314 185
316 Gonzales Industrial Park Benefit Assessment District 188 426 Gonzales Successor Agency 191
427 Gonzales Successor Agency - Housing 195
460 Capital Infrastructure 198
520 Water Enterprise 201
530 Sewer Enterprise 205
540 Garbage Enterprise 209
550 Solar Project 213
560 Gonzales Electric Authority 216
TABLE OF CONTENTS
FY 2022-2023 City & Successor Agency Budget
Gonzales Industrial Park Landscape District
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) * Two conditional offers out and one in the bacgkround phase Andrea Casillas
Admin. Assistant II
Esther Valdez
Bldg. Official (Contr.)
Vacant
Youth Program Coord.
Julie Douglas
Maria Flores
Kyler Monares
David Achen
Erik Prader
David Vasquez
Lead Worker Firefighters
Eric Serrano
Sergeants
Mechanic
Officers
Technician
Andrew Lujan
Frank Valladarez
Christian Avina
Vacant
City of Gonzales
Mayor Pro Tem
Scott Funk
Mayor
Jose L. Rios
Public Works Director/ Police Chief
FY 2022 - 2023
Mark Hartunian
Finance Director (Contr.)
Assistant City Manager
Executive Asst. to the City Manager/
Deputy City Clerk
Mary Villegas
Council Member
Liz Silva
Community Dev. Director
Admin. Assistant I
Noemi Gregorio
Council Member
Lorraine Worthy
Roverto Zavala
David Martinez
Curtis Snively
Frankie Nava
Raymundo Vasquez Maintenance Workers
J. Martin Espinoza
Jaime Vasquez
Ulyses Fierros
Miguel Perez
Vacant (3)*
Alfonso Carrillo
Nathan Cordoba
Tiffany Twisslemann
Publc Works Supervisor
Taven Kinison Brown
Development Services
Tech./Admin Analyst
Alejandra Flores
Admin. Assistant II
Anabel Almanza
Captain
Juan Mendoza
Exec. Asst. to the Chief/
Records Supervisor
City Engineer Keith Wise
Patrick Dobbins
Recreation Coord./
Admin. Analyst
City Attorney
(Contracted)
Michael Rodriquez
Fire Lieutenants
Mike Howard
Depputy City Manager/
Special Projects Dir.
Vacant
Dir. of Community Engagement
& Strategic Partnerships
Carmen Gil
Fire Chief
Jason Muscio
City Manager/City Clerk/Successor Agency Director
Sr.Accounting Technician
Vacant
Green's Accounting
Comm. Health Workers
Guillermina Flores
Monica Rico
Jose Chavez
Council Member
Paul Miller
Lizette De Leon
Lifeguards/Rec Aids
Seasonal/Part-Time
Volunteer Firefighters
Part time (3)
Jessica Olmedo
Sports & Senior
Program Coordinator
Isabel Navarro
Kid Power Academy
Part-Time
Corporals
Cesar Castillo
Santiago Melgoza
Herbert Bowen
Alex Pruneda
Police Services Tech.
Andrea Zepeda
1 Packet Pg. 22
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) P.O. BOX 647 147 FOURTH ST. GONZALES, CALIFORNIA 93926
PHONE: (831) 675-5000 FAX: (831) 675-2644 www.gonzalesca.gov June 6, 2022
Honorable Mayor Rios and Council Members
Chairperson Rios and Successor Agency Board Members
Chairperson Rios and Gonzales Municipal Electric Authority P.O. Box 647
Gonzales, California 93926
Dear Council and Board Members:
I am pleased to transmit to your Council and Board the Recommended Budget for FY 2022-2023. Before moving forward to describe what is included in the Recommended Budget, it is important to reflect on the past year and the incredible response of our Community and Workforce as we continue to recover from the COVID-19 pandemic. It is not an understatement to state that achieving a 100% vaccinated community was and is remarkable and a testament to the resiliency of our community and workforce, and a resounding example of the “Gonzales Way” Love-Care-Connect.
As a City, we: (a) continued to provide and support food and other critical aid to our community, (b) sought out funds to continue to provide business relief loans, (c) worked with all our businesses to provide needed information and support, (d) remained flexible and adjusted our after-school and preschool programs to align with changing COVID-19 health orders, (e) provided timely information and education to our community in both English and Spanish; and (f) proactively ramped up testing and vaccine support. As a community, the fiscal year saw many signs of normalcy. Our schools fully opened, events were once again held, our parks came back alive, and everywhere you saw signs of moving beyond the pandemic.
While it’s still hard to predict the long-term impacts of COVID-19 and we are still climbing out of the fiscal challenges, the budget reflects the use of the American Rescue Plan (ARP) funds to maintain programs like the T-Mobile Hotspots and other eligible costs. The FY 2022-2023 Recommended Budget sets forth total budget requirements in the amount of $32,048,871 million, which is $12,996,831 million higher than FY 2021-2022. The main reason for the change is the net result of (a) the Community Center Complex project; (b) the addition of the 3 new fulltime Firefighter positions, (c) the full year reflection of the costs from the recently negotiated employee bargaining agreements and the resolutions for all non-represented employees and management, and (d) the reflection of significant construction costs for the wastewater plant expansion and rehabilitation project.
Of the overall budget amount, the General Fund appropriations total $7,614,543, which is $660,737 or
9.5% higher than the FY 2021-2022 Budget amount of $6,953,806. The change is being driven primarily by the increases in Measure K and X funded projects, increases to workers’ compensation and liability insurance costs, the conversion of the three fulltime positions in the Fire Department that were added last year and full year funding of the three new employee bargaining agreements, as well as the employee and management salaries and benefits resolutions.
Overall, revenues are $30,605,388 million; of that, the General Fund is $7,614,543, which is $875,937 or
12.9% higher than FY 2021-2022. The reason for the change is the increase in sales and property tax revenues including Measures K and X.
While a bit tight and conservative, the FY 2022-2023 reflects many positive attributes and Council priorities. For example, it funds all authorized positions, maintains core operations, continues the “Internet for All” initiative, maintains and proactively continues the development of the Gonzales Agricultural Industrial Business Park (GAIBP) and funds participation in the South Salinas Valley Broadband Joint Powers Authority (JPA). 2 Packet Pg. 23
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) On the positive side, though COVID-19 paused many aspects of the local economy, several businesses came online. For example: (a) a long-term staple of the community, El Rinconcito Restaurant is under new ownership; (b) a new boxing gym (Salad Bowl Boxing) was opened downtown; and (c) Papé Material Handling opened for business. In addition, the City (a) made great strides with Concentric Power to put together all the necessary pieces to begin construction of the microgrid in 2023; (b) finalized the plans for the Wastewater Treatment Plant and certified the environmental impact report (EIR); and (c) finalized and approved the Enhanced Infrastructure Financing District (EIFD) with the County.
The Recommended Budget continues to reflect resources to finish the Environmental Impact Report (EIR) and fiscal plan needed for the next growth phase for the City. Once completed, the EIR and fiscal plan will be used to help complete and inform the application to the Local Agency Formation Commission (LAFCO) to annex up to 1,300 acres into the City.
On the capital infrastructure side, the Recommended Budget reflects funds to (a) begin construction of the Wastewater Treatment Facility rehabilitation and expansion project; and (b) finish the design of the Community Center Complex project and move the project to the construction phase.
The budget continues to reflect key initiatives to proactively grow the City’s business base needed to continue to increase sales and property tax revenues, more jobs; and overall, a more healthy and vibrant local economy. Some of the key efforts include (a) the Gonzales Grows Green (G3) Initiative; (b) continued focused work with the property owners in the Gonzales Agricultural Industrial Business Park (GAIBP); (c) implementation of the energy microgrid project to provide renewable (green) power to sustain business growth in the GAIBP; (d) the continued proactive marketing of the Gonzales Brand and Gonzales Way, and (e) working with the Chamber of Commerce, launch a downtown business district rehabilitation project.
The Recommended Budget also maintains a great emphasis in the City’s youth initiatives and programs which include, but are not limited to, (a) the Gonzales Youth Commissioners and Council working with the City on the development of the Teen Innovation Center; (b) the “Kid Power” program; and (c) funding of the Hartnell Promise.
On the organizational side, the budget reflects the resources to fund the approved 3-year bargaining agreements with the City’s three employee groups and the Employee Salary and Benefit Resolutions for the miscellaneous and management employees. In addition, it reflects the funding for the three (3) additional full-time positions added to the Fire Department.
The budget reflects the $1 million General Fund Balance Reserve (rainy day fund) and contemplates directly utilizing the second payment of ARP funds for allowable uses, like the T-Mobile hotspot program which helps the City not utilize Fund Balance and/or General Reserve funds.
Even though the General Fund does not contemplate the use of Fund Balance, as your Council reviews the budget document, please keep in mind that any increases in expenditures or funding new programs and/or initiatives should be done cautiously because they will need to be taken from another section of the budget. This approach is recommended, because it is important to maintain at a minimum a $1 million General Fund Balance Reserve at all times available to use if needed.
I would like to take this opportunity to express my appreciation to all my staff and Mike Howard1 whose dedicated service, cooperation, and commitment to excellence made this document a possibility. Michael Rodriguez, City Attorney, who has been a great partner and provided invaluable advice to all departments. In particular, I would like to especially acknowledge and thank Mrs. Mary Villegas for her hard work not only on this document, but also for her ability to keep the City Manager’s Office organized and moving forward.
Respectfully submitted,
René L. Mendez
1 Mike is with Green’s Accounting, who provides under contract the financial services for the City. 3 Packet Pg. 24
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
M E M O R A N D U M
TO: Honorable Mayor Rios and City Council
Chairperson Rios and Successor Agency
FROM: René L. Mendez, City Manager and Director
DATE: June 6, 2022
SUBJECT: City Manager and Director FY 2022-2023 Recommended Budget
RECOMMENDATION
Consider and approve the FY 2022-2023 City and Successor Agency Recommended Budget with the accompanying Resolutions on June 6, 2022, or if needed on June 9, 2022, as presented, which is balanced, maintains Council priorities, and maintains acceptable service levels.
SUMMARY
The Recommended Budget for FY 2022-2023 totals $32,048,871 in expenditures, of which $7,614,543 is the General Fund. The General Fund reflects an increase of $875,737 or 12.9% over the FY 2021-2022 Budget amount of $6,738,806.
Similar to prior years, the overall “operating” budget is again skewed by the “Transfers-In” of resources among funds. For example, transfers include several funds into the General Fund; the Supplemental Law Enforcement Fund into the Public Safety Fund; from several assessment funds into the Streets Fund, and from the Water and Sewer Enterprise to the Solar and Microgrid Funds. While this method clearly isolates the contribution among funds, in reality, they are “paper-only” transactions that artificially inflate the total budget by approximately $1,985,093 million (Exhibit C).
The following sections in the Budget Message are intended to provide: (1) an overview of pressures on the overall City Budget; (2) an overview of General Fund budgets; (3) highlights of Non-General Fund budgets and programs; and (4) some closing thoughts.
PRESSURES ON THE OVERALL BUDGET
Post COVID-19 Pandemic Recovery
While the City has begun to recovery from the Pandemic at the local level, the impacts are being felt in rapidly rising costs in many areas and supply chain disruptions. Further exacerbating this has been the RussianUkraine war that has resulted in significant increases to fuel. Even though the budget reflects resources to fund several key projects, the reality is that it is difficult to adequately plan for rapidly escalating costs and it is conceivable that the City may be faced with the possibility of pausing or not starting projects.
Housing
Developing housing opportunities of all types continues to be a critical need for the community. The budget reflects the work necessary to complete the California Environmental Impact Report (CEAQ) and the annexation application to Local Agency Formation Commission (LAFCO) needed to receive approval to expand the City and begin the development of the next growth phase. However, while it is hoped that his process will go smoothly, it is conceivable to expect opposition.
Workers’ Compensation and Liability Insurance Costs
Even though the budget has adequate resources to cover workers’ compensation, liability, and property insurance cost there are significant pressures on the insurance market. Areas like property insurance, cyber and 4 Packet Pg. 25
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) pollution insurance are increasing and on the liability side, coverage remains precarious. For example, the budget reflects total workers’ compensation and liability costs of $740,455, which are $121,396 or 16% higher than the prior year. This increase has been primarily fueled by workers’ compensation costs due to several high claim years.
Generally, staff has done a great job of managing the exposure and claims, but sometimes accidents and/or incidents are unavoidable which has been the case in worker’s compensation. The City belongs to the Monterey Bay Area Insurance Fund Joint Powers Authority which is comprised of 11 cities in Monterey, Santa Cruz, and San Benito counties. Costs are allocated based on total personnel costs and losses over several years. Based on the cost allocation formula, the City should begin to see significant savings in FY 2023-2024 and 2024-2025.
District Elections
Similar to all Cities in Monterey County and most School Districts, the City will be moving forward to do the work necessary to set up district elections for 2024. It is unclear how much this will cost and the impact this will have in the future, but regardless since the City has received the initiating letter, it will be incredibly difficult not to move forward with the process to set up the districts.
Positive External Relationships
On the positive side, staff continues to work diligently to reinforce, grow, and/or establish new partnerships with the Private Sector and other agencies.
Examples of these partnerships include:
a) Continue the collaboration and taking on a leadership role on Countywide Economic Development Efforts and Housing.
b) Continue to support and enhance the partnership with the Gonzales Unified School District; the continued implementation of the “Ensuring Gonzales Youth Achieve 21st Century Success” Initiative.
c) Continue to lead the effort that established the South Salinas Valley Broadband JPA. d) Continue to partner with the Blue Zones Project Monterey County.
MAJOR CITY VISION INITIATIVES REFLECTED IN THE BUDGET
The following is a list of some of the major initiatives reflected in the Budget:
• Sufficient resources to continue efforts to recover from the COVID-19 pandemic. • Complete the EIR and LAFCO application needed for the next growth phase of the City to develop (a) housing of all types, (b) needed improvements to public infrastructure, (c) economic development, and (d) job opportunities.
• Continue development of the Gonzales Agricultural Industrial Business Park, which will include working with Braga and Del Monte/Mann on their next expansion, and Concentric Power on the construction of their new offices and microgrid.
• Working with the Chamber of Commerce launch a downtown revitalization program. • Maintain proactive implementation of the “Gonzales Grows Green (G3)” Initiative. • Finalize the funding plan for the Community Center Complex and move the project to the construction phase.
• Actively participate in the South Salinas Valley Broadband JPA.
BUDGET GOALS AND OBJECTIVES
As in prior years, the City Budget sets forth the foundation for major Council policy actions and provides a 5 Packet Pg. 26
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) fiscal “Road Map” of the direction for City government to follow now, and in the future. The City Budget represents the single most important document that is prepared, reviewed, and approved on an annual basis.
The format used for this budget:
• Reflects all revenues directly in the programs for which they are to be used; • Includes all of the City’s grants and operating trust funds; • Includes detailed fund balances of all the City funds, along with their reserve levels; • Relies on the Net City Cost concept to explain the cost to City resources. For example, a larger net negative means that it is costing the City more, and conversely a lower net negative and/or higher positive number indicates that it is costing the City less to provide the program; and • Reflects a consistent and standard narrative format:
1. Description of each individual budget and program.
2. Major accomplishments by each Department in FY 2021-2022.
3. Departmental goals for FY 2022-2023.
4. The Recommended Budget in detail.
5. Major policy considerations being requested.
Budget Core Priorities
This budget maintains several key core Priorities:
1. City Vision and Mission point the direction.
2. Maintain the existing valuable workforce and fully fund the expansion to Fire Department personnel.
3. Maintain critical services (i.e., GYC, Community Engagement, Public Safety, Fire, and Sewer and Water).
4. Honor all debt obligations.
5. Maintain a minimum balance in the General Fund Balance Reserve of $1 million.
The following principles and goals have been maintained:
• Whenever possible, the Budget is balanced with ongoing and known revenue sources equaling ongoing and reasonably expected expenses.
• To the extent possible, one-time money is not used for ongoing operations. • To the extent possible, one-time money is used for one-time expenditures. • Service levels are maintained at the highest level within funding constraints. • Discretionary revenues are maximized to provide the Council with options to fund beneficial local programs and services.
• Accuracy and accountability in estimating and monitoring revenues and expenses during the fiscal year will continue to improve.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
PROJECTED FUND BALANCES
As of the writing of this document, the final fund balances for all major funds were not yet available; therefore, estimates of year-end fund balances for all major funds have been relied upon to balance the budget.
Though the FY 2021-2022 was almost over at the time this message was prepared, the estimates can and will probably change after the Finance Department closes the accrual period at the end of July. The accrual period is very important because it is used to clean up, and/or eliminate encumbrances (funds kept “on hold” for contracts and purchases made at the end of the fiscal year), and to receive revenue that is due to the City, which comes in arrears (this is typical of many grant programs and sale tax revenues).
It is important to realize that Fund Balance is not a fund or a separate account, but by definition, is simply the difference between the assets and liabilities of a governmental fund. While it is critical to keep a close watch on fund balance levels and not become too reliant on it, in all likelihood, there will always be a fund balance. The key is for the organization to identify what areas generate the fund balance.
The Fund Balance Summary Report (Exhibit A) provides a fund balance summary of all the funds, as well as their Reserves as of June 30, 2022, and an estimate for the end of the 2022-2023 Fiscal Year. Based on the level activity projected for the few weeks left in the fiscal year, the year-end 2021-2022 General Fund - Fund Balance is estimated to be approximately $1 million.
Fund Balance estimates of other major funds to start the fiscal year include the Sewer Impact Fund at $3.4 million, Water Enterprise Fund at $2.9 million, and Water Impact Fund at $614,000.
Left Intentionally Blank
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
TOTAL BUDGET REQUIREMENTS
Exhibit B provides a Summary of Expenditures and Revenues by fund. It is the same straightforward format used for the monthly financial reports. This summary is the basis for the following discussion.
Expenditures
Total expenditures for the FY 2022-2023 Recommended Budget are $32 million which is $12.9 million or 68% higher than FY 2021-2022. As illustrated in the table and graph below, Total Appropriations, the Impact Funds comprise 39% of total expenditures, followed by the General Fund Budget at 24%, the Water Enterprise Fund at 8%; and the Sewer Enterprise Fund at 4%.
The reason for the increase is mainly due to (a) reflecting increased expenditures for the Community Center Complex project, (b) the 3 new fulltime positions added to the Fire Department, (c) increases to insurance costs; (d) full year funding of the cost-of-living adjustments (COLA) for all employees; and (e) the expenditures for the Wastewater Expansion and Rehabilitation Project.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
Total revenues for the FY 2022-2023 Recommended Budget are $30.6 million which is $12 million or 65% more than the FY 2021-2022 Budget. As reflected in the following graph, Overall City Revenues, the Impact Funds comprise 39%, followed by the General Fund at 25% of the total budget; the Water Enterprise Fund at 7%; and the Sewer Fund at 5%.
The change in overall revenues is the net result of:
• An increase in Sales Tax, and Measure K and X TUT;
• Reflection of the revenue needed to begin the Wastewater Expansion and Rehabilitation Project; • A slight increase in the Property Taxes and the Property Tax-VLF adjustment revenues from the State; • An increase in revenues in both the Water and Sewer Funds from higher utilization by the GAIBP; and • The transfers of resources among funds throughout the budget. 9 Packet Pg. 30
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Where the overall budget reflects expenditures exceeding revenues, it is primarily due to existing reserves (Fund Balance), being used in the Water Enterprise and Sewer Enterprise. For the General Fund, it is balanced and for the first time in years, does not contemplate the use of Fund Balance. This is important because this will allow additional revenues to develop for future years.
OVERALL DISCUSSION OF GENERAL FUND BUDGET
Budget Parameters
The recommended budget in addition to relying on the Vision and Mission, and Council priorities, was prepared with the following parameters:
• Maintain core City programs and critical infrastructure; • Full utilization of the ARP funds to cover allowable expenditures; • Maintain the existing workforce, which reflects the expansion to Fire Department personnel and the COLAs approved for all employees;
• Fund several key Vision and Mission Initiatives that is critical to continue to recover from the pandemic. These include, pro-active economic and business development, the electric microgrid, the EIFD, the construction of a Wastewater Treatment Plant Expansion and Rehabilitation Project, and completing the Supplemental EIR and LAFCO annexation application for the new growth area; and • Reflects the expenditures for the Community Center Complex project.
Overall General Fund Approach
Pending budget approval and direction, the recommended General Fund Budget is balanced with the full use of ARP funds for allowable expenditures. The budget is essentially a status quo budget in many areas; but it does reflect the T-Mobile hotspot (broadband) expenditures, fully funding the expansion of personnel in the Fire Department, and maintaining a General Fund Balance Reserve of $1 million.
As mentioned above, the budget is balanced with no use of Fund Balance, which is important to allow the time necessary for new sales and property tax revenues that are expected to come on-line over the next two years to develop from Papé Material Handling Inc., Concentric Power, Del Monte/Mann, Caraccioli Cellars, and the Microgrid.
The budget is presented with continued optimism. It continues key programs and initiatives, perhaps none more important than the Community Complex Project and the South Salinas Valley Broadband JPA.
Departmental Budget Requests
The budget includes individual narrative sheets for each budget that illustrate a variety of information, including a Recommended Budget, and Major Policy Consideration section.
Expenditures
Overall, the budget is primarily status quo and funds all authorized positions which are filled. In addition, it reflects fully funding for the 3 new fulltime positions in the Fire Department, extending the “Internet for All” TMobile hotspots with ARP funds, the child obesity program, the community resiliency project which is an upgrade to the back generator for the Public Safety Building and City Hall, as well as the acquisition of one emergency portable generator.
Revenues
Overall, the budget reflects increases is Sales and Property Tax based revenues and contributions from other funds.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Use of General Fund - Fund Balance
For the first time in years, the Proposed Budget reflects no use of Fund Balance. This is important because it will allow revenues to continue to increase, especially in property and sales tax revenues.
TOTAL GENERAL FUND BUDGET AND FINANCING REQUIREMENTS
Expenditures
As illustrated in the graph below, General Fund Appropriations, overall, General Fund expenditures total $7.6 million, which is $660,737 or 9.5% higher than the prior year. As shown, Police continues to be the largest General Fund program at 42%; followed by Fire at 12%; the TUT-Measure X and K at 18%; and Parks, Recreation, Aquatics and Youth Programs at 9%.
The increase in expenditures is mainly due to the net impact (a) of reflecting the Community Center Complex project funded by Measure X TUT revenues, (b) increase to workers’ compensation, liability and property insurance; (c) full year funding for the 3 fulltime Firefighter positions added in FY 2021-2022; and (d) the COLA increases for all employees.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
The next graph, General Fund Revenues, illustrates the major revenue sources of the General Fund.
Overall, revenues total $7.6 million, which is $875,737 or 12.9% higher than the prior fiscal year. The largest source is (a) Sales & Use Tax at 18%; (b) Motor Vehicle in Lieu/VLF Adj. at 14%; (c) Property Taxes at 12%; and (d) Measure K and X at 10% each.
The change is generally being driven by increases in the following:
• 20% in Sales & Use Taxes;
• 25% in Transfers In;
• 4% in Property Taxes – ROPS Residual; and
• A large increase in Police revenues (181%) as a result of reflecting the contribution from the School for the School Resources Officer that had been paused as a result of the pandemic and the schools being closed.
12 Packet Pg. 33
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) The following section briefly highlights the reasons for the changes in some of the budgets. Please refer to the individual budget narrative sheets for a summary of each budget.
General Fund Revenues
This budget reflects revenues that cannot be attributed to any one particular budget. All other revenues are reflected directly in the programs for which they are to be used for, and/or generated. This is done in order to more accurately reflect the activity and present a more accurate account of each individual program.
It cannot be emphasized enough that while revenues are more positive than the prior year, work needs to continue to generate new revenue sources like the Microgrid and EIFD in order to maintain future balanced budgets, and provide the services needed to support the Vision of the City.
General Fund Budget Units
Impacting all budget units are increases in workers’ compensation and liability, and information technology (IT) costs. Because of the nature of the risk embodied in Public Safety, both Police and the Fire Departments are allocated a larger share of these costs. For IT, because of the ever-increasing concern with cyber-attacks, costs have increased to secure the City’s data and systems. The budgets also reflect the cost estimates for health and retirement costs, which are being driven by the City self-insurance health plan and Anthem Blue Cross, and the California Public Employee Retirement System (PERS). Below are some of the General Fund budgets that have the larger changes.
City Managers/City Clerk: The decrease in this budget is due to spreading salaries and benefits to other areas and funds to reflect the anticipated workload and projects in FY 2022-2023.
Finance: The increase in finance is reflected in anticipated benefit costs.
Planning: The increase is mainly due to full year funding of the Community Development Director position.
General Government: The large increase is due to reflecting the expenditures to upgrade the backup generator for the Public Safety Building, and acquire an emergency portable generator as part of the community resiliency project being funded by a state grant Police: While the largest General Fund budget, this Department reflects a modest 8% increase, which reflects funding for a fully staffed Department.
Fire: The increase in the Net City Cost is primarily driven by fully funding the 3 fulltime Firefighter positions added the previous year.
Recreation, After School & Aquatics: The increases in all these budgets are due to bringing back a full slate of programs post-pandemic.
Parks: The decrease in this budget is due to respreading personnel to other areas.
TUT Measures K and X: Overall, the change in these budgets are being driven by the projected increase in revenues and programming.
OTHER FUNDS
Significant programs outside the General Fund are Sewer, Water, Garbage, Assessment Districts, Successor Agency to the Gonzales Redevelopment Agency, and the Impact Funds. The following are some of the funds with the larger recommended changes.
COVID-19
This is the third year of this fund which reflects the expenses for the community health workers and will be brought early in the fiscal year for the adjustments for the rental assistance portion. It reflects an increase in 13 Packet Pg. 34
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) expenditures and revenues from an additional grant to continue the Community Health Workers program and pandemic recovery efforts.
American Rescue Plan Act
This is the second year of this fund, and it reflects the City’s remaining allotment of $993,486 to fund the continuation of the T-Mobile hotspot program and eligible expenditures.
Community Development
This budget includes capacity to provide housing rehabilitation loans and provide housing education programs for our community to prepare for the new growth phase and housing opportunities.
Business Loan Grant
This budget includes capacity to provide a few small business development loans and potentially façade improvement grants.
Street Fund
This fund reflects conservative expenditures and revenues. In a few years after SB1 and the City’s share of the Regional Transportation Tax funds finish paying of two loans, this fund will see over $500,000 annually freed up to fund the Pavement Management Plan.
Sphere of Influence Impact Fund
The budget reflects all the activity necessary to complete the EIR and the Local Agency Formation Commission (LAFCO) annexation application needed for the next growth phase for the City. All of this work is needed to annex to approximately 1,300 acres, which will over time result in much needed housing, schools, commercial, business, parks, public amenities, and recreation opportunities to continue enhancing the community’s “quality of life”.
All Impact Funds
In general, most of the Impact Funds reflect revenues anticipated as a result of new development coming.
Some of the major changes in expenditures are:
Sewer Fund: Reflects sufficient funds to continue the engineering, finish the design, and initiate the Wastewater plant expansion and rehabilitation project. Depending on the requirements of the State Revolving Loan program and/or possibly the City receiving a grant, additional adjustments may be required during the fiscal year that would be taken to the City Council for consideration and approval.
Public Facilities & Public Uses Impact Funds: These funds reflect a small set aside if needed for the Community Center Complex project.
Park Impact Fund: This fund reflects the City’s per capita allocation of Proposition 68 Park Bond revenues and capital outlay-improvement appropriation to complete phase II of the skatepark renovation project.
Intersection Improvement Fund: This fund continues to reflect an appropriation to help cover the costs of improvements to the 5th Street – HWY 101 intersection if they materialize.
Assessment District Funds
All these funds reflect the activities necessary for the operation and maintenance of the districts. In addition, where appropriate some of these funds include their share of the implementation of the Pavement Management Plan.
14 Packet Pg. 35
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Successor Agency
The budget reflects the expenditures in the Recognized Obligation Payment Scheduled (ROPS) approved by the State Department of Finance (DOF), and revenues needed to cover all the debt service obligations of the former RDA, and the administrative costs of the Successor Agency.
Water Enterprise Funds
This budget reflects the appropriation authority needed to maintain the City’s Water System. In addition, it reflects (a) the debt service for the Private Placement utilized to expand the Sewer Treatment Plant, and the construction of the two 3-million-gallon water tanks; (b) the payment of the debt service for Solar Project Phase I and Phase II, (c) capital expenditures to purchase equipment and parts as needed for the water wells, and (d) a contribution to the Microgrid Fund.
Sewer Enterprise Fund
Similar to the Water Fund, this budget reflects the appropriation authority needed to maintain the City’s Sewer System. In addition, this budget includes (a) engineering and contractual work to continue improvements and management of the wastewater plant and sewer system, (b) the payment of the debt service for Solar Project Phase I and Phase II, and (c) a contribution to the Microgrid Fund Garbage Enterprise Fund
This fund includes the necessary activity to cover the garbage service for the community and fund sustainable initiatives.
Gonzales Electric Authority
This is the third year of this fund that was set up to track all the expenditures for the microgrid project.
While it has taken longer than anticipated, a lot of work has been done to finalize all the requirements set forth in the Energy Services Agreement and it is expected that construction will begin in 2023.
CONTINUE ADDRESSING CRITICAL INFRASTRUCTURE
Even with the continuing challenges posed by the COVID-19 Pandemic, this past year saw the City continue to make significant strides in several critical infrastructure projects. For example, • Continue needed improvements to the City’s Water System: The replacement water well was completed and will be operational early in the fiscal year.
• Expansion to and Improved Maintenance of the Wastewater Treatment Plant: The design of the wastewater treatment plant expansion and conveyance system was completed as well as the environmental work, and it is anticipated to be out to bid the first half of the fiscal year. This is all needed to develop the short, medium, and long-term increase capacity at the Plant to support future industrial and housing growth. • Street Improvements: The prior fiscal year saw implementation of the Council approved Payment Management Plan by going out to bid on the initial phase. It is anticipated that the work will be done the first part of the fiscal year.
• Community Center Complex Project: FY 2021-2022 saw significant progress in this very important project. After an extensive community engagement effort, the Council approved the design criteria and approved the selection of the three final Design Build Entities, one of which will ultimately be selected to construct the project. While these where all positive steps forward; unfortunately, due to the continuing impacts of the pandemic, coupled with the Russian-Ukraine war, supply chain problems have been exacerbated and construction and commodity costs have increased dramatically. What that means is that though the City is aggressively working to put the needed funding together, additional resources will be needed. As a result, the first part of the fiscal year will see a new one-half percent (0.5%) Transaction and Use Tax (TUT) placed before the voters as a Special Mail Ballot Election in August dedicated to the Community Center with streets as the secondary choice, which will require a 2/3 voter approval.
Complementing this special tax will be consideration by the Council to place before the voters in the 15 Packet Pg. 36
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) upcoming general election extending the sunset dates of both of the existing tax measure thru 2064. If both measures pass it will go a long way to finance the Community Center and bring this vision to reality for the community.
Furthermore, the City took major steps forward to begin the establishment of new funding sources for infrastructure by (a) taking the action necessary to approve an Enhanced Infrastructure Financing District (EIFD), and (b) continuing to make progress on the Energy Services agreement with Concentric Power to build a microgrid for the Gonzales Agricultural Industrial Business Park. When fully developed, it is anticipated that both of these efforts will result in significant revenue to help fund improvements to the City’s infrastructure.
BUDGET RISK AREAS
While the City’s fiscal situation is sound, the Proposed Budget includes several assumptions that if they do not materialize, have the potential to impact the overall budget and require additional adjustments. Assumptions that could impact the budget if they do not materialize are the:
1. FY 2021-2022 year-end Fund Balance could come in lower than projected;
2. The high fuel prices will continue to increase or remain high.
3. CalPERS retirement and Health benefit costs could increase beyond anticipated levels; and
4. There could be more unexpected impacts from the Pandemic and/or the Russian–Ukraine war.
ADDITIONAL POLICY AREAS
There are several policies that require additional attention, even though they might have already been mentioned in this Budget Message, they are key to furthering the City’s vision and mission and include, but are not limited to:
• Initiating the wastewater expansion and rehabilitation project. • Continuing a disciplined grant writing effort with the City’s grant writer to hopefully generate resources to the City to support the Vision and Mission. For example, work is underway on funding for the separate Industrial Wastewater Plant, the Microgrid, Phase II expansion of Canyon Creek Park, and the Community Center Complex.
• Continuing taking on a leadership role in countywide and/or regional efforts. • Finalizing the EIR needed for the application to LAFCO to annex approximately 1,300 acres. • Proactively working on developing more housing opportunities. • Finalizing the funding plan, award the construction contract, and begin the construction phase of the Community Center Complex project.
• Continuing enhancing access to quality health care options. • Developing additional funding sources for the CDBG Business Development/Enhancement Loan Program. • Fully implementing the EIFD.
• Continuing pro-active development of the Gonzales Agricultural Industrial Business Park and begin the construction of the energy microgrid for the park.
• Actively participating and leading the South Salinas Valley Broadband JPA.
The Gonzales Quality of Life Temporary Transactions and Use Tax (TUT): Measures K & X Both of these sources include the funding of programs, projects, and initiatives to further the community and provide critical services.
As it pertains to Measure X, the Advisory Subcommittee recommended the funds be used for the Community Center Complex project, which is reflected in the Recommended Budget. As it pertains to Measure Y, the funding plan reflected in the budget includes funding for:
• The annual debt service for the pool;
• The Community Grant Program;
• “Ensuring Gonzales Youth Achieve 21st Century Success” afterschool “Kid Power”, summer youth programs, and recreational preschool;
• The Senior/adult programming;
• The Olinga “Wings of Knowledge” Youth STEM program and the Salinas Valley Promise Scholarship at 16 Packet Pg. 37
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Hartnell Junior College;
• The Tree Replacement Program;
• The Police department community, business, and neighborhood watch program; • The City’s share of the jointly funded License Clinical Social Worker position with the Gonzales Unified School District to increase mental health services for our youth and community; • Provide funding to support three (3) Firefighter positions necessary to augment and maintain the high level of fire services for the community; and
• Shop small business campaign.
Because this funding source funds several programs and/or initiatives, it is spread out over the Fire Department (Budget Unit 310), Recreation Services (Budget Unit 510), After School Program (Budget Unit 511), Youth Development & Leadership (Budget Unit 550), TUT (Budget Unit 800), and Debt Service (Budget Unit 900).
Post Pandemic Recovery
As we start the second fiscal year after the height of the pandemic, the City finds itself moving several key projects forward that point a very optimistic future. Whether (1) the Community Center Complex project, (2) the New Growth Area and the many opportunities that will bring, (3) the microgrid and wastewater expansion and rehabilitation project; (4) the continued emphasis on mental health; (5) the partnership with the Blue Zone Project Monterey County which opened an office in Gonzales; and (6) the formation of the South Salinas Valley Broadband JPA; there are many reasons to be excited about the future.
While certainly there are still many challenges ahead, I firmly believe that our ethos, the “Gonzales Way: Love, Care and Connect” was the reason we achieved a 100% vaccinated community and points to a bright future.
CONCLUSION
I want to close by encouraging the Council and Board to adopt the Recommended Budget as presented, which is balanced, and sets forth a plan for the future.
In addition, all City employees, as well as members of the public and press, should feel free to ask questions or provide comment on the contents of this document. I would welcome the opportunity to sit down with each of you to discuss this document.
ATTACHMENTS:
Exhibit A: Fund Balance Summary
Exhibit B: Budget Summary of all Funds
Exhibit C: Interfund Transfer Reconciliation
Exhibit D: Classification Plan FY 2022-2023
17 Packet Pg. 38
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Fund # Fund Name
Estimated
Beginning Fund
Balance
07/01/22
FY 2022-23
Budgeted
Revenues
FY 2022-23
Budgeted
Expenditures
Fund Balance
Transfers
Estimated
Ending Fund
Balance
06/30/23 Reserved Funds
Estimated
Ending
Unreserved Fund
Balance
06/30/23
100 General Fund $ 1,044,602 $ 6,648,029 $ 7,246,345 $ 598,316 $ 1,044,602 $ 1,000,000 $ 44,602 110 COVID-19 $ 116,285 $ 200,000 $ 200,000 $ - $ 116,285 $ - $ 116,285 111 American Rescue Plan Act $ 73,034 $ 993,486 $ 1,066,520 $ - $ - $ - $ - 120 Community Development $ 232,259 $ 80,000 $ 98,302 $ (24,805) $ 189,152 $ - $ 189,152 123 Business Loan Grant $ 214,490 $ 15,000 $ 175,250 $ 40,000 $ 94,240 $ - $ 94,240 124 Air Pollution Control Fund $ 85,537 $ 2,500 $ 38,000 $ - $ 50,037 $ - $ 50,037 127 CDBG - Urban County $ (9,130) $ 459,000 $ - $ (459,000) $ (9,130) $ - $ (9,130) 130 Street Fund $ 25,117 $ 522,220 $ 547,269 $ - $ 68 $ - $ 68 136 Measure X $ - $ 312,000 $ 312,000 $ - $ - $ - $ -
137 SB1 Road Repair & Account. $ - $ 193,527 $ 193,527 $ - $ - $ - $ - 150 Supplemental Law Enforcement $ 27,635 $ 200,020 $ - $ (200,020) $ 27,635 $ - $ 27,635 190 Fire Impact Fund $ 5,831 $ 15,400 $ 20,000 $ - $ 1,231 $ - $ 1,231 200 General Fund Impact Fund $ 81,407 $ 25 $ - $ - $ 81,432 $ - $ 81,432 201 Sphere of Influence Impact Fund $ 422,188 $ 2,500 $ 200,000 $ - $ 224,688 $ - $ 224,688 210 Public Safety Fund $ - $ 4,000 $ 353,815 $ 349,815 $ - $ - $ - 220 Police Impact Fund $ 43,024 $ 10,000 $ - $ - $ 53,024 $ - $ 53,024 230 Sewer Impact Fund $ 3,393,052 $ 11,603,500 $ 11,600,200 $ - $ 3,396,352 $ - $ 3,396,352 235 Circulation System Imapct Fund $ 212,441 $ 53,240 $ 89,240 $ - $ 176,441 $ - $ 176,441 240 Water Impact Fund $ 871,125 $ 33,000 $ 290,000 $ - $ 614,125 $ - $ 614,125 241 Public Facilities Impact Mitig $ 85,542 $ 10,600 $ 25,000 $ - $ 71,142 $ - $ 71,142 242 Public Uses Mitigation Fees $ 5,251 $ 150 $ 5,000 $ - $ 401 $ - $ 401 243 Aquatic Facilities Mitigation $ - $ - $ - $ - $ - $ - $ - 244 Animal Control Facilities Mitigation $ - $ - $ - $ - $ - $ - $ - 245 Storm Drainage Facility Impact Fund $ 42,290 $ 20,000 $ 15,000 $ - $ 47,290 $ - $ 47,290 250 Park Impact Fund $ 1,999 $ 170,000 $ 170,000 $ - $ 1,999 $ - $ 1,999 260 Signalization Impact Fund $ 376,443 $ 1,000 $ 135,000 $ - $ 242,443 $ - $ 242,443 270 CA Breeze Park Maintenance $ (77,543) $ 77,900 $ 100,388 $ (5,000) $ (105,031) $ - $ (105,031) 280 CA Breeze Maintenance #1, #2, #3 $ 185,507 $ 67,207 $ 68,633 $ (14,000) $ 170,081 $ 69,936 $ 100,145 302 Canyon Creek Park & Park Maint $ 599,491 $ 103,250 $ 45,201 $ - $ 657,540 $ 66,000 $ 591,540 304 Canyon Creek Maintenance #1, #2, #3 $ 956,521 $ 130,550 $ 67,624 $ (15,000) $ 1,004,447 $ 35,452 $ 968,995 310 Cipriani Estates Park Maint $ 219,990 $ 39,750 $ 13,140 $ (5,000) $ 241,600 $ 66,000 $ 175,600 312 Cipriani Estates Maintenance $ 517,834 $ 51,300 $ 24,597 $ (5,000) $ 539,537 $ 12,000 $ 527,537 314 Gonzales Industrial Park Landscape $ 77,470 $ 30,500 $ 38,089 $ - $ 69,881 $ 2,000 $ 67,881 316 Gonzales Industrial Park Benefit Assess $ 212,071 $ 80,250 $ 69,250 $ (10,000) $ 213,071 $ 36,000 $ 177,071 407 Ag Ind. Park Federal Grant $ 4,900 $ - $ - $ - $ 4,900 $ - $ 4,900 426 City Successor Agency ** $ 2,118,203 $ 1,342,266 $ 1,266,683 $ - $ 2,193,786 $ - $ 2,193,786 427 Successor Agency - Housing $ (113,497) $ 5,125 $ - $ - $ (108,372) $ - $ (108,372) 460 Infrastructure Improvement Fund $ (431,556) $ 100,000 $ 50,000 $ - $ (381,556) $ - $ (381,556) 520 Water Enterprise ** $ 3,516,764 $ 2,056,237 $ 2,189,492 $ (428,958) $ 2,954,551 $ - $ 2,954,551 530 Sewer Enterprise ** $ 296,094 $ 1,596,500 $ 1,360,090 $ (306,403) $ 226,101 $ - $ 226,101 540 Garbage Enterprise $ 5,524 $ 1,386,763 $ 1,218,054 $ (168,709) $ 5,524 $ - $ 5,524 550 Solar Project Enterprise ** $ 52,227 $ 3,250 $ 506,764 $ 503,514 $ 52,227 $ - $ 52,227 560 Gonzales Electric Authority $ 282,711 $ 250 $ 250,500 $ 150,250 $ 182,711 $ - $ 182,711 Totals $ 15,773,132 $ 28,620,295 $ 30,048,973 $ - $ 14,344,454 $ 1,287,388 $ 13,057,066 ** Adjusted to exclude the amount of Long Term Debt and Net Assets.
EXHIBIT A
FUND BALANCE SUMMARY
ALL CITY FUNDS
FISCAL YEAR 2022-23 Final Budget
July 1, 2022
18 Packet Pg. 39
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City of Gonzales
Budget Summary
Fiscal Year 2022-2023
General Fund
Account Title
Original
Budget FY
2021-2022
Amended
Budget FY
2021-2022
Budget FY
2022-2023 Variance
General Revenues:
Transfers In 615,132 625,605 766,514 151,382
Property Taxes 856,500 870,676 888,000 31,500
Sales and Use Tax 1,128,674 1,200,000 1,350,000 221,326 Motor Vehicle In Lieu Tax / VLF Adj 1,016,500 1,056,664 1,090,000 73,500 Other Taxes & Fees 681,000 682,000 677,000 (4,000)
Use of Money Property 55,000 60,000 68,000 13,000
Intergovernmental 1,000 1,000 1,000 -
Fines and Penalties 28,000 28,000 28,000 -
Other Revenue 113,250 98,250 105,100 (8,150)
City Council - 377 377 377
City Manager 25,000 25,000 20,000 (5,000)
Planning Department 45,400 45,400 50,300 4,900
Police Department 34,750 26,250 97,800 63,050
Fire Department 265,300 258,300 266,300 1,000
Building Regulations 147,300 147,300 145,900 (1,400)
Public Works - 916 3,000 3,000
Youth Development 500 500 500
Recreation / Aquatics 253,000 261,752 261,752 8,752
After School Program 63,000 95,000 95,000 32,000
COVID-19 - 588,536 200,000 200,000
5,328,806 6,071,526 6,114,543 785,737
Departmental Net Expenditures:
City Council 34,882 38,882 38,916 4,034
City Manager/City Clerk 405,147 404,894 185,642 (219,505) Finance 111,295 116,485 126,224 14,929
City Attorney 50,000 50,000 50,000 -
Planning 165,338 168,150 220,901 55,563
General Governmental Building 190,860 246,520 231,520 40,660 Non-Departmental 117,500 122,300 117,300 (200)
Police Department 3,011,141 3,036,339 3,256,768 245,627 Fire Department 738,963 840,849 962,877 223,914
Building Regulations 32,740 32,740 32,848 108
Public Works 134,426 191,868 138,800 4,374
Parks 92,775 95,635 46,144 (46,631)
Recreation Services 204,191 224,446 174,304 (29,887)
After School Program 175,511 175,783 248,909 73,398
City Aquatics Program 85,546 110,911 124,898 39,352
Youth Develpment 46,408 46,408 46,408 -
Debt Service 18,403 18,403 18,403 -
COVID-19 125,951 586,908 200,000 74,049
5,741,077 6,507,521 6,220,862 479,785
Excess Revenue Over <Under> Expenditures
Operations (412,271) (435,995) (106,319) 305,952
TUT Voter Approved Tax - Measure K
Sales Tax 705,000 705,000 750,000 45,000
Salaries (169,000) (169,000) (200,000)
Youth Services (200,000) (200,000) (275,000) (75,000)
Recreation Services (105,000) (105,000) (105,000) -
Community Developement Grant (30,000) (30,000) (30,000) - Hot-Spots - -
Debt Service (129,680) (129,665) (129,681) (1)
71,320 71,335 10,319 (30,001)
TUT Voter Approved Tax - Measure X
Sales Tax 705,000 705,000 750,000 45,000
Community Center (705,000) (725,000) (654,000) 51,000
- (20,000) 96,000 96,000
Excess Revenue Over <Under> Expenditures
Total General Fund (340,951) (384,660) - 371,951
EXHIBIT B
19 Packet Pg. 40
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City of Gonzales
Budget Summary
Fiscal Year 2022-2023
Enterprise Funds
Account Title
Original
Budget FY
2021-2022
Amended
Budget FY
2021-2022
Budget FY
2022-2023 Variance
Water Fund
Revenues 2,029,350 2,031,237 2,116,237 86,887
Expenditures (2,506,221) (2,654,729) (2,678,450) (172,229) Excess Revenues Over Expenditures (476,871) (623,492) (562,213) (85,342) Sewer Fund
Revenues 1,527,000 1,527,000 1,596,500 69,500
Expenditures (1,515,610) (1,613,532) (1,666,493) (150,883) Excess Revenues Over Expenditures 11,390 (86,532) (69,993) (81,383) Garbage Fund
Revenues 1,347,000 1,366,513 1,386,763 39,763
Expenditures (1,350,618) (1,362,122) (1,386,763) (36,145) Excess Revenues Over Expenditures (3,618) 4,391 - 3,618 Solar Project Fund
Revenues 506,764 506,764 506,764 -
Expenditures (506,764) (506,764) (506,764) -
Excess Revenues Over Expenditures - - - -
Gonzales Electric Authority
Revenues 100,500 250,500 250,500 150,000
Expenditures (100,500) (146,760) (350,500) (250,000)
Excess Revenues Over Expenditures - 103,740 (100,000) (100,000) Totals - Enterprise Funds (469,099) (601,893) (732,206) (263,107) 20 Packet Pg. 41
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City of Gonzales
Budget Summary
Fiscal Year 2022-2023
Special Revenue Funds Summary
Account Title
Original
Budget FY
2021-2022
Amended
Budget FY
2021-2022
Budget FY
2022-2023 Variance
Community Development & Recreation
Revenues 510,500 510,500 611,500 101,000
Expenditures (578,205) (583,162) (825,162) (246,957)
Excess Revenues Over Expenditures (67,705) (72,662) (213,662) (145,957) Impact Fees
Revenues 1,177,175 1,179,415 11,919,415 10,742,240
Expenditures (1,457,200) (1,462,885) (12,549,440) (11,092,240) Excess Revenues Over Expenditures (280,025) (283,470) (630,025) (350,000) Public Safety
Revenues 533,399 533,419 553,835 20,436
Expenditures (533,399) (533,399) (553,835) (20,436)
Excess Revenues Over Expenditures - 20 - -
Special Assessment Districts
Revenues 572,600 580,707 580,707 8,107
Expenditures (473,564) (481,975) (480,922) (7,358)
Excess Revenues Over Expenditures 99,036 98,732 99,785 749 Streets & Transportation
Revenues 1,037,738 1,054,193 1,027,747 (9,991)
Expenditures (1,058,176) (1,027,545) (1,052,796) 5,380
Excess Revenues Over Expenditures (20,438) 26,648 (25,049) (4,611) Totals - Special Revenue Funds (269,132) (230,732) (768,951) (499,819) Infrastructure Improvement Fund
Revenues 100,000 100,000 100,000 -
Expenditures (50,000) (50,000) (50,000) -
Excess Revenues Over Expenditures 50,000 50,000 50,000 - American Rescue Plan Act
21 Packet Pg. 42
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City of Gonzales
Budget Summary
Fiscal Year 2022-2023
City of Gonzales Successor Agency and Successor Housing Agency Account Title
Original
Budget FY
2021-2022
Amended
Budget FY
2021-2022
Budget FY
2022-2023 Variance
City Successor Agency - Trust Fund
Revenues 1,341,259 1,342,266 1,342,266 1,007
Expenditures (1,255,117) (1,267,890) (1,266,683) (11,566) Excess Revenues Over Expenditures 86,142 74,376 75,583 (10,559) Successor Housing Agency - City Fund
Revenues 5,125 56,685 5,125 -
Expenditures (10,000) (648,000) - 10,000
Excess Revenues Over Expenditures (4,875) (591,315) 5,125 10,000 22 Packet Pg. 43
CITY OF GONZALES
INTERFUND TRANSFER RECONCILIATION
FY 2022-23
FUND DESCRIPTION TRANSFERS (IN) TRANSFERS (OUT) COMMENTS [100] General Fund 10,000.00 From Fund 120
15,000.00 From Fund 123
418,805.00 From Fund 127
19,000.00 From Cal Breeze
15,000.00 From Canyon Creek
10,000.00 From Cipriani
10,000.00 From Industrial Park
18,403.00 To Fund 550
168,709.00 From Fund 540
149,795.00 To Fund 210
100,000.00 From Fund 560
[120] Community Development 24,805.00 To Fund 100
[123] Business Loan Grant Fund 15,000.00 To Fund 100
55,000.00 From Fund 127
[127] CDBG - Urban County 404,000.00 To Fund 100
55,000.00 To Fund 123
[150] Supplemental Law Enforcement 200,020.00 To Fund 210 [210] Public Safety Fund 200,020.00 From Fund 150
149,795.00 From Fund 100
[270] CA Breeze Park Maintenance 5,000.00 To Fund 100
[280] CA Breeze Maintenance #1 14,000.00 To Fund 100
[304] Canyon Creek Park Maintenance #1 15,000.00 To Fund 100 [310] Cipriani Estates Park Maintenance 5,000.00 To Fund 100 [312] Cipriani Estates Maintenance 5,000.00 To Fund 100 [316] Gonzales Industrial Park 10,000.00 To Fund 100
[520] Water Enterprise 60,000.00 From Fund 530
363,833.00 To Fund 550
125,125.00 To Fund 560
[530] Sewer Enterprise 60,000.00 To Fund 520
121,278.00 To Fund 550
125,125.00 To Fund 560
[540] Garbage Enterprise 168,709.00 To Fund 100
[550] Solar Enterprise 363,833.00 From Fund 520
121,278.00 From Fund 530
18,403.00 From Fund 100
[560] Gonzales Electric Authority 125,125.00 From Fund 520 125,125.00 From Fund 530
100,000.00 To Fund 100
TOTALS 1,985,093.00 1,985,093.00
EXHIBIT C
23 Packet Pg. 44
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revised 02-07-22
CLASSIFICATION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8
EXECUTIVE MANAGEMENT STAFF
CITY MANAGER
ASSISTANT CITY MANAGER $11,282.99 $11,790.72 $12,321.31 $12,875.77 $13,455.18 $14,060.66 $14,693.39 $15,354.59 DEPUTY CITY MANAGER $9,084.54 $9,493.34 $9,920.54 $10,366.97 $10,833.48 $11,320.99 $11,830.43 $12,362.80 COMMUNITY DEVELOPMENT DIRECTOR $9,589.24 $10,020.76 $10,471.69 $10,942.92 $11,435.35 $11,949.94 $12,487.69 $13,049.64 PUBLIC SAFETY DIRECTOR (CHIEF OF POLICE) $10,192.90 $10,651.58 $11,130.90 $11,631.79 $12,155.22 $12,702.20 $13,273.80 $13,871.12 *PUBLIC SAFETY DIRECTOR (CHIEF OF POLICE) -
GRANDFATHERED $10,906.40 $11,397.19 $11,910.06 $12,446.01 $13,006.09 $13,591.36 $14,202.97 $14,842.10 SPECIAL PROJECTS DIRECTOR $8,651.94 $9,041.27 $9,448.13 $9,873.30 $10,317.60 $10,781.89 $11,267.07 $11,774.09 DIRECTOR OF PUBLIC WORKS $9,132.61 $9,543.58 $9,973.04 $10,421.83 $10,890.81 $11,380.90 $11,893.04 $12,428.22 *DIRECTOR OF PUBLIC WORKS - GRANDFATHERED $9,452.25 $9,877.61 $10,322.10 $10,786.59 $11,271.99 $11,779.23 $12,309.29 $12,863.21 FIRE CHIEF $8,612.06 $8,999.60 $9,404.58 $9,827.79 $10,270.04 $10,732.19 $11,215.14 $11,719.82 FIRE CHIEF - GRANDFATHERED $9,214.90 $9,629.57 $10,062.90 $10,515.74 $10,988.94 $11,483.45 $12,000.20 $12,540.21
DIRECTOR OF COMMUNITY ENGAGEMENT &
STRATEGIC PARTNERSHIPS $8,719.71 $9,112.10 $9,522.14 $9,950.64 $10,398.42 $10,866.35 $11,355.33 $11,866.32
MID-MANAGEMENT STAFF
CAPTAIN $8,696.49 $9,087.84 $9,496.79 $9,924.14 $10,370.73 $10,837.41 $11,325.10 $11,834.73 DEPUTY FIRE CHIEF $7,209.95 $7,534.40 $7,873.45 $8,227.76 $8,598.01 $8,984.92 $9,389.24 $9,811.75 RECREATION COORDINATOR/ ADMINISTRATIVE $4,226.13 $4,416.31 $4,615.04 $4,822.72 $5,039.74 $5,266.53 $5,503.52 $5,751.18 PUBLIC WORKS SUPERVISOR $5,349.22 $5,589.94 $5,841.48 $6,104.35 $6,379.05 $6,666.10 $6,966.08 $7,279.55
SUPERVISORY STAFF
POLICE SERGEANT $7,994.93 $8,354.70 $8,730.66 $9,123.54 $9,534.10 $9,963.14 $10,411.48 $10,880.00 *POLICE SERGEANT - GRANDFATHERED $8,554.58 $8,939.53 $9,341.81 $9,762.19 $10,201.49 $10,660.56 $11,140.28 $11,641.59 PUBLIC WORKS LEAD WORKER $4,267.43 $4,459.46 $4,660.14 $4,869.84 $5,088.99 $5,317.99 $5,557.30 $5,807.38 *PUBLIC WORKS LEAD WORKER - GRANDFATHERED $4,416.79 $4,615.54 $4,823.24 $5,040.29 $5,267.10 $5,504.12 $5,751.81 $6,010.64
BUILDING/MAINTENANCE STAFF
BUILDING INSPECTOR II $4,984.58 $5,208.89 $5,443.29 $5,688.23 $5,944.21 $6,211.69 $6,491.22 $6,783.33 BUILDING INSPECTOR I $4,236.89 $4,427.55 $4,626.79 $4,834.99 $5,052.57 $5,279.93 $5,517.53 $5,765.82 MECHANIC II $4,386.71 $4,584.11 $4,790.40 $5,005.96 $5,231.23 $5,466.64 $5,712.64 $5,969.71 *MECHANIC II - GRANDFATHERED $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MECHANIC I $4,055.78 $4,238.29 $4,429.01 $4,628.32 $4,836.59 $5,054.24 $5,281.68 $5,519.36 TECHNICIAN $4,055.78 $4,238.29 $4,429.01 $4,628.32 $4,836.59 $5,054.24 $5,281.68 $5,519.36 MAINTENANCE WORKER $3,356.76 $3,507.81 $3,665.67 $3,830.62 $4,003.00 $4,183.13 $4,371.37 $4,568.09 *MAINTENANCE WORKER - GRANDFATHERED $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PUBLIC SAFETY STAFF
POLICE CORPORAL $6,383.12 $6,670.37 $6,970.53 $7,284.21 $7,611.99 $7,954.53 $8,312.49 $8,686.55 POLICE OFFICER $6,079.16 $6,352.72 $6,638.59 $6,937.33 $7,249.51 $7,575.73 $7,916.64 $8,272.89 *POLICE OFFICER - GRANDFATHERED $6,504.70 $6,797.41 $7,103.29 $7,422.94 $7,756.97 $8,106.03 $8,470.81 $8,851.99 FIRE ENGINEER $4,969.27 $5,192.89 $5,426.57 $5,670.77 $5,925.95 $6,192.62 $6,471.29 $6,762.49 FIREFIGHTER $4,537.16 $4,741.33 $4,954.69 $5,177.65 $5,410.65 $5,654.13 $5,908.56 $6,174.45 POLICE SERVICES TECHNICIAN $3,192.44 $3,336.10 $3,486.22 $3,643.10 $3,807.04 $3,978.36 $4,157.38 $4,344.47
SUPPPORT STAFF
SENIOR ACCOUNTING TECHNICIAN $4,806.63 $5,022.93 $5,248.96 $5,485.17 $5,732.00 $5,989.94 $6,259.49 $6,541.16 *SENIOR ACCOUNTING TECHNICIAN -
GRANDFATHERED $4,974.87 $5,198.73 $5,432.68 $5,677.15 $5,932.62 $6,199.59 $6,478.57 $6,770.10
EXECUTIVE ASSISTANT TO THE CITY
MANAGER/DEPUTY CITY CLERK $4,806.63 $5,022.93 $5,248.96 $5,485.17 $5,732.00 $5,989.94 $6,259.49 $6,541.16 *EXECUTIVE ASSISTANT TO THE CITY MANAGER
DEPUTY CITY CLERK - GRANDFATHERED $4,974.87 $5,198.73 $5,432.68 $5,677.15 $5,932.62 $6,199.59 $6,478.57 $6,770.10
DEVELOPMENT SERVICES
TECHNICIAN/ADMINISTRATIVE ANALYST $3,757.10 $3,926.17 $4,102.85 $4,287.48 $4,480.41 $4,682.03 $4,892.72 $5,112.90 ACCOUNTING SPECIALIST $3,495.50 $3,652.79 $3,817.17 $3,988.94 $4,168.44 $4,356.02 $4,552.04 $4,756.89 ADMINISTRATIVE ASSISTANT/RECORDS SUPERVISOR $3,757.10 $3,926.17 $4,102.85 $4,287.48 $4,480.41 $4,682.03 $4,892.72 $5,112.90 ADMINISTRATIVE ASSISTANT II $3,495.50 $3,652.79 $3,817.17 $3,988.94 $4,168.44 $4,356.02 $4,552.04 $4,756.89 ADMINISTRATIVE ASSISTANT I $3,088.07 $3,227.03 $3,372.25 $3,524.00 $3,682.58 $3,848.29 $4,021.47 $4,202.43 YOUTH PROGRAM COORDINATOR $3,638.41 $3,802.14 $3,973.23 $4,152.03 $4,338.87 $4,534.12 $4,738.15 $4,951.37 SPORTS & SENIOR PROGRAMS COORDINATOR $3,638.41 $3,802.14 $3,973.23 $4,152.03 $4,338.87 $4,534.12 $4,738.15 $4,951.37 SECRETARY $2,671.94 $2,792.17 $2,917.82 $3,049.12 $3,186.33 $3,329.72 $3,479.55 $3,636.13 RECEPTIONIST- CLERK $2,532.80 $2,646.78 $2,765.88 $2,890.35 $3,020.41 $3,156.33 $3,298.36 $3,446.79
SEASONAL/PART-TIME (HOURLY RATE)
PROJECT COORDINATOR $23.01 $24.05 $25.13 $26.26 $27.44 $28.68 COMMUNITY HEALTH WORKER $20.33 $21.25 $22.20 $23.20 $24.24 $25.34 POOL MANAGER $17.58 $18.37 $19.20 $20.06 $20.96 $21.91
ASSISTANT POOL MANAGER $16.91 $17.67 $18.47 $19.30 $20.17 $21.07 SENIOR LIFE GUARD $16.26 $16.99 $17.76 $18.56 $19.39 $20.26 LIFE GUARD $15.64 $16.34 $17.08 $17.85 $18.65 $19.49
RECREATION LEADER II $15.64 $16.34 $17.08 $17.85 $18.65 $19.49 RECREATION LEADER I/AFTER SCHOOL AID $15.00 $15.68 $16.38 $17.12 $17.89 $18.69 RECREATION PROGRAM SUPERVISOR $15.64 $16.34 $17.08 $17.85 $18.65 $19.49
CITY COUNCIL & MAYOR
CITY COUNCIL & MAYOR - MONTHLY STIPEND $400.00
CITY OF GONZALES CLASSIFICATION
PLAN FISCAL YEAR 2022-2023
FOUR AND ONE HALF-PERCENT STEP ADVANCEMENT EXCELLENCE INCENTIVES $17,190.50 MONTHLY (SALARY INDEPENDENT OF STEP SCHEDULE) 07-01-2021
EXHIBIT D
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) General Purpose Revenues
Budget Narrative for FY 2022-2023
Budget Unit 000
DEPARTMENTAL MISSION
This budget is used to track general purpose revenues for the General Fund that are not directly attributable to any program or function.
ACCOMPLISHMENTS FOR FY 2021-2022
● In general, all revenues tracked to the anticipated budget levels for most of the year. ● Maintained a $1 million General Reserve.
● As we slowly start to come out of the COVID-19 pandemic, sales and property tax revenues continued to grow.
● The Gonzales Agricultural Industrial Business Park (GAIBP) continued to be the foundational piece of the City’s sales tax generation with the opening of Pape Materials Handling, and other businesses continued to perform. ● Both Measure K and X, continued to perform exceptionally well. ● Captured and benefited from the American Rescue Plan funds.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Carefully track and manage revenues.
● Continue to look for ways to enhance local revenues.
● Continue to capture as much as possible of the America Rescue Plan Funds.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects an increase of $675,737 or 100% when compared to the FY 2021-2022 Approved Budget.
Revenues
Reflected in this budget are the following significant changes:
1. A conservative 4% increase in Property Tax revenues from last year’s budget, which is mainly due to the Gonzales Agricultural Industrial Business Park.
2. A 19.6% increase in all Sales Tax revenues based on actual revenues in FY 2021- 2022, and the forecast from the City’s sales tax consultants1.
3. Continued emphasis on the General Fund being reimbursed for its administrative costs for running the various non-general fund programs, were not directly 1 HdL Companies, Inc.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) apportioned to the other funds.
4. Recovery of planning and building permit fees as business and housing construction begins.
5. Transfers from various funds for administrative support.
MAJOR POLICY CONSIDERATIONS
A major reason for the growth is due to the Gonzales Agricultural Industrial Business Park.
While, this continues to be a strong indication that the underlying foundation of our local economy is healthy, it doesn’t mean that we need to stop working on diversifying the local economy. Now more than ever as we come out and start recovering from the impacts of the COVID-19 pandemic, it is important to continue to develop new and sustainable funding sources, and work with our existing businesses to improve their resiliency and help them grow. Therefore, it is more important to expand existing and develop new small business assistance program(s), begin meeting and engaging the Enhanced Infrastructure Finance District (EIFD) with the County, launch a downtown business revitalization project, and begin the construction of the energy Microgrid to provide reliable and sustainable energy to the Gonzales Agriculture Industrial Business Park. 26 Packet Pg. 47
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 27 Packet Pg. 48
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 28 Packet Pg. 49
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 29 Packet Pg. 50
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City Council
Budget Narrative for FY 2022-2023
Budget Unit 100
DEPARTMENTAL MISSION
The Mission of the City Council, as the Legislative Body of the City, is to provide policy direction and oversight of the entire City’s business. This is done in a fair, open and respectful manner, and always holding to the highest ideals of public service and ethics.
DEPARTMENTAL PROGRAMS
The Council is a five-member body that meets the first and third Monday of every month, and holds special meetings as necessary, to provide policy direction, and oversight of the City’s business.
ACCOMPLISHMENTS FOR FY 2021-2022
• Continued development of the Community Center Complex Project. • Via an exhaustive Request for Proposals (RFP) process, selected the three Design Build Entity Teams for the Community Center Complex Project. • After receiving a lot of community input, approved the final design criteria for the Community Center Complex Project.
• Provided steady direction that allowed the City to deal with and maneuver thru the COVID-19 pandemic challenge that resulted in the community being 100% vaccinated.
• Continued to oversee and provide policy direction on all facets of City operations. • Approved and oversaw a balanced budget.
• Continued aggressive implementation of the Gonzales Grows Green Initiative (G3) to enhance the environment and Economic Development.
• Provided direction on placing before the voters an additional half-cent increase to the Transaction Use Tax (TUT) to fund the Community Center and streets and extend the life of the existing two ½ sales tax measures.
• Certified the Environment Impact Report for the Wastewater Plant Expansion Project. • Was awarded a $5 million grant from the State of California for the Teen Innovation Center.
• Approved the start of several significant capital improvement projects like the Microgrid for the GAIBP, expansion to the Wastewater Treatment Plant, the infrastructure plans for the new growth, area and a Pavement Management Program. • Purchased the Marchetti property on South Alta Street for development of a muchneeded senior housing project. • Oversaw and approved the South Salinas Valley Broadband Joint Powers Authority. • Provided policy direction on the City’s response to the COVID-19 pandemic that resulted in a 100% vaccinated community.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) DEPARTMENTAL GOALS FOR FY 2022-2023
● Continue to provide direction necessary for the Community to recover post the COVID-19 pandemic.
● Continue to provide policy direction and oversight on all facets of City operations.
● Work in partnership with the GUSD to continue to move the “Ensuring Gonzales Youth Achieve 21st Century Success Initiative” forward. ● Continue to work in partnership with the TUT Advisory Committee. ● Continue to maintain core services with the least amount of interruption. ● Continue the City’s Economic Development Plan.
● Continue implementing the City’s Vision and Mission.
● Provide policy direction to staff as needed to implement the goals reflected throughout this budget document.
● Move an annexation application forward to the Monterey Local Agency Formation Commission (LAFCO) for approval, which is necessary to increase the City limits to encompass the new growth area.
● Move the Community Center Complex project forward to construction.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an increase of $4,034 or 11.5%, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net City Cost is increased by $3,657.
Personnel
Budget reflects the stipend and associated benefits for the Council Members.
Services and Supplies
This section reflects appropriations for the basic services and supplies needed for the operation of the Council. In addition, it reflects appropriations for the subscriptions and training category and memberships to the League of California Cities (Cal Cities) and U.S Conference of Mayors, which is the main reason for the increase.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
See all other budget units.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 32 Packet Pg. 53
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City Manager/City Clerk
Budget Narrative for FY 2022-2023
Budget Unit 110
DEPARTMENTAL MISSION
The Mission of the City Manager/City Clerk is to support the Vision and Mission of the City by providing professional leadership, develop innovative approaches and creative partnerships in the management of the City, and execution of City Council policies. This will be done by always holding to the highest ideals of public service, ethics and the “Gonzales Way” of Love, Care & Connect.
DEPARTMENTAL PROGRAMS
The City Manager’s Office is the Chief Administrative Officer for the City responsible for overseeing and managing all the activities of the City. In addition, the City Manager is also the Personnel Director, City Clerk, and Director of the Successor Agency to the Redevelopment Agency, Finance Director, the Director of the Gonzales Municipal Electric Utility, and Risk Manager.
ACCOMPLISHMENTS FOR FY 2021-2022
As in prior years, all the accomplishments listed below are the direct result of great staff and policy direction from the City Council. They are listed as accomplishments under this budget, but really are the reflection of dedicated staff at all levels of the organization and the Community:
• Provided real time budget and financial information online to all the City’s Departments.
• Continued the development of the Gonzales Agricultural Industrial Business Park (GAIBP) that saw the completion of (1) a few new businesses into the Park like Papé Material Handling and Concentric Power Inc.; (2) the approval of the Microgrid Project with Concentric Power; and (3) the approval of an Enhanced Infrastructure Finance District (EIFD) to provide future funds for infrastructure needed to support and grow the Park.
• Approved and oversaw a balanced budget.
• Continued aggressive implementation of the Gonzales Grows Green Initiative to enhance the environment and economic development.
• Continued to establish relationships with a variety of community organizations. • Continued the partnership with Salinas and South County Cities on a variety of issues of mutual concern including transit, housing, solid waste, economic development, groundwater, and renewable energy.
• Continued implementation of the Youth Summer Internship Program, and a more robust Gonzales Youth Council Program.
33 Packet Pg. 54
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • Chaired the 5 Cities Salinas Valley Collective for workforce development. That resulted in the formation and approval of South Salinas Valley Broadband JPA. • Oversaw and managed the City’s and Community’s response to the COVID-19 pandemic that resulted in a 100% vaccinated community.
• Continued implementation of the “Internet for All” project and successfully negotiated a two-year extension of the program.
● Successfully held two joint City Council & Planning Commission workshops on the future growth of the City to present the Vista Lucia Specific Plan. • Through Senator Caballero, was awarded a $5 million grant from the State of California for the Teen Innovation Center.
• Working with the Council, obtained approval to several significant capital improvement projects like the Microgrid for the GAIBP, expansion to the Wastewater Treatment Plant, the infrastructure plans for the new growth area, and a Pavement Management Program.
• Continued development of the Community Center Complex Project. • Via an exhaustive Request for Proposals (RFP) process selected the three Design Build Entity Teams.
• City Council after receiving a lot of community input approved the final design criteria for the Community Center Complex Project.
• Developed the financial strategy for the Community Center Complex.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Successfully transition to a new City Manager that will work with the existing strong Executive Team and staff to keep the City moving forward. • With Council direction, continue the post COVID-19 pandemic recovery. • Continue to further the Vision and Mission of the City. • Continue to improve the financial and budget management of the City’s resources.
• Continue to engage and develop ways to bring government closer to the residents of the City.
• Continue to support and implement City Council policies and direction. • Continue to work in partnership with the private sector to maximize development of the GAIBP.
• Implement the EIFD and begin construction of the Microgrid to power the GAIBP.
• Continue to improve and expand the City’s Economic Development. • Develop and recommend enhanced revenue alternatives to the City Council. • Finish updating the City’s Personnel Rules, Regulations, and Policies. • Continue to expand the partnerships with the Gonzales Unified School District, Commerce, Churches, private sector, community organizations, and others. • Continue to strengthen the partnership with the Chamber of Commerce and the private sector to enhance business opportunities and development. • Continue to enhance and expand the Gonzales Grows Green Initiative. • Continue to grow the ambitious Ensuring Gonzales Youth Achieve 21st Century Success Initiative.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • Move the annexation application forward to the Monterey County Local Agency Formation Commission (LAFCO) for approval, which is necessary to increase the City limits to encompass the new growth area and accommodate much needed new housing.
• Solidify the funding for the Community Center Complex Project. • Award the construction contract to the DBE for the Community Center Complex Project and begin construction.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an overall decrease of ($219,505) or (54%) in expenditures, and a decrease of ($5,000) or (20%) in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net City Cost is decreased by ($214,505).
Revenues
There is minimal revenue reflected in this budget unit.
Personnel
This budget reflects a portion of the salaries and benefits of the City Manager/City Clerk, and the Executive Assistant to the City Manager/Deputy City Clerk. In addition, the budget also includes the Assistant City Manager and the Director of Community Engagement and Strategic Partnerships.
Services and Supplies
This budget is essentially a status quo budget as a result of the expected COVID-19 impacts on general revenue sources. It continues to include an appropriation for more regional and statewide efforts, and to remain current with the ever-changing environment in Risk Management, Personnel, Economic Development, and to stay current with “best practices” in City Administration and Community Relations.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in the budget.
MAJOR POLICY CONSIDERATIONS
A. See all other budget units.
B. With Council policy direction, manage the post COVID-19 recovery.
C. Hold the first EIFD board meeting and initiate the district. 35 Packet Pg. 56
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) D. Move the application to the Monterey County Local Agency Formation Commission (LAFCO) with the accompanying Specific Plans necessary to obtain annexation approval for the next expansion of the City.
E. In addition, challenges for the City over the next few years, continue to be:
• Identify new revenue sources.
• Continue to enhance Economic Development opportunities. • Improve available housing.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 37 Packet Pg. 58
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 38 Packet Pg. 59
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Finance Department
Budget Narrative for FY 2022-2023
Budget Unit 130
DEPARTMENTAL MISSION
The Finance Department supports the City’s Vision by providing efficient, sound, timely, and continuous financial accounting, and fiscal support necessary to maintain the financial health of the City.
ACCOMPLISHMENTS FOR FY 2021-2022
• Kept all the financial operations of the City in order and on time. • Continued to improve the budget accountability process. • Continued to provide real time budget and financial information online to all the City’s Departments.
• Continued to update several operating procedures to improve efficiencies. • Obtained a clean external audit.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Successfully transition to a new staff team.
• Continue to provide efficient and professional financial support to the City of Gonzales.
• Continue to work to improve and streamline all financial reports and functions. • Work with the City Council and City Manager to continue to provide timely financial status reports.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an increase of $14,929 or 13%, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net City Cost is increased by $14,929.
Personnel
This budget reflects portion of funding for one Senior Accounting Technician, one Accounting Specialist, and one Administrative Assistant. The Finance Director position is not funded and instead, some of these services are being carried out by Green’s Accounting, which is reflected under contract services in “Services and Supplies.” 39 Packet Pg. 60
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
The increase in this budget is being driven by expenses in contractual services and back charges.
Capital Projects/Fixed Assets
There are no capital projects and/or fixed assets reflected in this budget at this time.
MAJOR POLICY CONSIDERATIONS
A continuing focus will be kept on finding new revenue sources or increasing existing revenue sources for the City. This is critical to continue to fund and further the City’s Vision and Mission.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 41 Packet Pg. 62
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City Attorney
Budget Narrative for FY 2022-2023
Budget Unit 150
DEPARTMENTAL MISSION
The City Attorney is a contracted position that provides the full array of legal services to the City and the Successor Agency. The Mission of the Office is to continue to provide the City and Successor Agency with comprehensive legal advice and representation.
ACCOMPLISHMENTS FOR FY 2021-2022
● Continued to provide staff with ongoing assistance in the preparation of staff reports, resolutions, and ordinances.
● Continued to provide legal advice and recommendations to the City Manager, Police Chief, and other Managers in a variety of areas. ● Continued to provide legal advice and recommendations to the City Council. ● Continued to provide assistance in guiding the City with and through the COVID19 Pandemic response which among many things, included a local declaration of emergency, shifting to an on-line meeting environment, and responding, implementing, and working through the State and County Health Orders. ● Provided legal advice to the Gonzales Municipal Electric Utility (GMEU), and the Gonzales Electric Authority (GEA).
● Provided guidance on the City Council approving the design build process for the Community Center Complex Project.
● Continue to guide and provide the legal advice on several key projects.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Continue to work with staff on a variety of projects. ● Continue to assist in identification of means (new procedures and/or programs) by which to reduce exposure to liability.
● Identify and collect costs for services being driven by third parties. ● Continue to provide legal advice to the Council and City staff.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents no change when compared to the FY 2021-2022 Approved Budget.
Personnel
No costs are reflected in this area.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
The only cost in this area is the appropriation for the contract. A portion of these costs have been spread to other funds as appropriate, and only the amount anticipated for General Fund activities and programs is reflected.
Capital Projects/Fixed Assets
No costs are reflected in this area.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations being requested in this budget. 43 Packet Pg. 64
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 44 Packet Pg. 65
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Community Development Department
Budget Narrative for FY 2022-2023
Budget Unit 160
DEPARTMENTAL MISSION
The Community Development Department supports the Vision and Mission of the City by providing professional planning services to the City. The Department promotes quality of life in Gonzales through careful attention to the City’s physical and social development requirements. The Department promotes economic development consistent with the City Council’s goals, and City’s adopted plans and programs.
DEPARTMENTAL PROGRAMS
The Department processes applications for all physical development involving private land, including: Conditional Use Permits; Site Plan Permits, Sign Permits, and subdivision and parcel maps. The Department works closely with applicants, other City Departments, and County and State agencies to ensure development conforms to requirements and the best contemporary practices. The Department manages environmental review for projects and supports the Planning Commission and City Council, and is also responsible for maintaining and updating the Zoning Ordinance and the Gonzales General Plan. Other activities include grant applications and administration, and affordable housing programs. In association with the City’s Economic Development Consultant, the Department also works on economic development through outreach assistance to property owners and developers in promotion of the City.
ACCOMPLISHMENTS FOR FY 2021-2022
● Building department processed numerous building permits for modifications to existing residential structures. Most of this work related to photo voltaic systems. ● Worked with the City’s Business Loan Consultant to market and promote the program to small business in the City but specific to COVID relief. ● Obtained $200,000 CDBG CARES grant funds to provide loan assistance to businesses ● Extensive work, meetings and coordination related to the Sphere of Influence and pending annexation of land to the east.
● Processed Accessory Dwelling Units (ADU).
● Successfully recruited for and hired an experienced Community Development Director with the heart, empathy and community mindset needed to support and move forward the “Gonzales Way” Love-Care-Connect mindset.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Process ADUs.
● Process applications for Conditional Use Permits.
● Continued coordinating with project proponents in the City’s Sphere of Influence area east of the City with regard to annexation, CEQA analysis, preparation of Specific 45 Packet Pg. 66
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Plans, fiscal impact analysis, and development agreements for proposed development. ● Coordinate with the City’s Economic Development Committee on the implementation of measures contained in the City’s Economic Development Strategy and Action Plan for business retention, development, and attraction.
● Continue promoting economic opportunities and activities, meet with business owners and work with consultants on related research and reporting. ● Actively market the Business Assistance Loan Program,. ● Coordinate with the County with regard to Community Development Block Grant (CDBG) funding, from the federal Housing and Urban Development (HUD) Program for the new program year.
● Continue to search out new grant opportunities and apply whenever feasible – e.g., HCD’s ‘Local Early Action Planning’ Program Funds (‘LEAP’ grant) to fund the 2023 Housing Element update.
● Coordinate with the County Economic Development Department to implement County-wide economic development initiatives.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an increase of $56,563 or 34% in expenditures, and an increase of $4,900 or 10.2% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $50,663.
Revenues
Revenues are a function of the type of and number of applications. Consequently, based on current information about current interest in the City but in the industrial park primarily, it is anticipated that 2022-2023 revenue will be the higher than FY 2021-2022. This is a conservative analysis of revenues.
Expenditures
Expenditures primarily reflect the fixed costs associated with the Department, including information technology and file services and payment of the annual administrative charges associated with the Local Agency Formation Commission of Monterey County.
The main reason for the increase is due to a realignment of personnel costs.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 46 Packet Pg. 67
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 47 Packet Pg. 68
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 48 Packet Pg. 69
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) General Governmental Buildings
Budget Narrative for FY 2022-2023
Budget Unit 170
DEPARTMENTAL MISSION
This General Fund Budget Unit provides resources to acquire, operate, equip, and maintain public facilitates. Cost-effective management of resources is a goal of this Budget Unit.
DEPARTMENTAL PROGRAMS
This budget unit tracks operations and maintenance activities at city-owned buildings.
ACCOMPLISHMENTS FOR FY 2021-2022
Provided building and general maintenance services at the following city-owned buildings:
147 Fourth Street City Hall
109 Fourth Street Police Station
325 Center Street Fire Station
411 Center Street Rental Office Space for County Programs 421 Center Street Dental Offices (leased space)
107 Centennial Drive Vosti Recreation Center
225 Elko Street Day Care/Preschool Facility through a lease with the Mexican American Opportunity Foundation
117 Fourth Street Council Chambers
133 Fourth Street Old Medical Building (leased spaces)
Staff continued delivery of the Community Center Complex Project using a Design/Build approach. This included completing the Design Criteria document for the Request for Proposals from the top three Design/Build entities.
Leased a portion of the Old Medical Building to the Gonzales Medical Center.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Issue a Request for Proposal for the Design/Build contract for the Community Center Complex.
• Maintain facilities as cost-effectively as possible within the approved budget. • Reduce cost of operations where possible.
• Continue energy saving programs.
49 Packet Pg. 70
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) FY 2022-2023 RECOMMENDED BUDGET
This Budget Unit’s FY 2022-2023 Recommended Budget represents an increase of $40,660 or 28% in expenditures, when compared to the FY 2021-2022 Approved Budget.
As a result, the Requested Net Cost is increased by $40,660.
Services and Supplies
This budget funds janitorial supplies for all City Departments and facilities.
The budget also reflects $150,000 to purchase two generators funded from grant funds from the State’s Community Power Resiliency Program.
• Replace the generator at the Public Safety Building, and • Replace the generator at City Hall.
The contract for the generators was authorized at the February 7, 2022 City Council meeting.
Capital Projects/Fixed Assets
There are no changes to the fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
The policy considerations for this budget unit are establishing a reserve fund to keep up with aging buildings maintenance that may be an option as funds are available. 50 Packet Pg. 71
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 51 Packet Pg. 72
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Non-Departmental
Budget Narrative for FY 2022-2023
Budget Unit 200
DEPARTMENTAL MISSION
This General Fund Budget Unit provides resources for general expenses not specifically related by any single department and appropriately related to the general fund.
DEPARTMENTAL PROGRAMS
This budget unit provides various support services to all departments such as postage, office supplies, first aid supplies, lease agreements, along with automotive and property insurance.
ACCOMPLISHMENTS FOR FY 2021-2022
• Provided support to various departments.
• Coordinated income and expenses with the Finance Department. • Continued efforts related to the “Internet for All” community initiative.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to provide cost-effective support services.
• Continue to maintain support contracts and lease agreements. • Continued engagement with the community to support the “Internet for All” initiative.
FY 2022-2023 RECOMMENDED BUDGET
This Budget Unit’s FY 2022-2023 Recommended Budget represents essentially no change in expenditures, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is decreased by ($200).
Personnel
There are no personnel expenditures reflected in this budget.
Services and Supplies
This is essentially a status quo budget.
52 Packet Pg. 73
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) This budget also reflects funding for the:
1. City Telephone, Utilities.
2. Leases for copiers and postage machine.
3. Computer systems, the general fund’s portion of Information Technology (IT).
4. Office Supplies.
5. Postage and Mail services.
6. Public Hearing and Legal Notices.
7. County Administrative Fees.
Capital Projects/Fixed Assets
There are no capital projects reflected in this budget other than computer purchases reflected as fixed assets.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 53 Packet Pg. 74
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 54 Packet Pg. 75
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Police Department
Budget Narrative for FY 2022-2023
Budget Unit 300
DEPARTMENTAL MISSION
The Gonzales Police Department supports the Vision and Mission of the City by providing public safety services to all our residents, businesses, and visitors. These services are provided using a cooperative community policing philosophy, in which the Department works with the residents to solve crime and quality of life issues in our diverse community.
The number one concern of the Department is the safety of all our residents, businesses, and visitors. The Department takes a zero tolerance to crime and works aggressively to solve crimes that do occur.
The Gonzales Police Department supports and protects commercial, industrial, and educational institutions in the area. The Department provides advice as requested, and aides in crime prevention.
ACCOMPLISHMENTS FOR FY 2021-2022
The Police Department accomplished many of the goals, including the following:
• Experienced a 19% decrease in part one crimes during the 2020-2021 year compared to the previous year. Gonzales continues to be one of the safest communities in Monterey County and has been ranked as being one of the safest small Cities in the State of California.
• Participated and coordinated many events that were held throughout the City. • Although this was another very challenging year due to the COVID-19 pandemic, the Police Department continued to adapt to the changes involved, maintained core police services, responded and handled calls for service, and continued to protect and serve the community.
• The Police Department underwent several unremarkable internal audits for best practices, procedures, policies, and training. The audits were conducted by the State of California Commission on Police Officers Standards and Training and by Rick Wall Consulting and Investigations Agency at the request of Monterey Bay Area Self Insurance Authority, and found no major issues or areas of concern.
• Continued to do community outreach throughout the City to help residents address not only crime issues, but also quality of life challenges. 55 Packet Pg. 76
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) DEPARTMENTAL GOALS FOR 2022-2023
• Continue collaborative efforts with the community, organizations and Schools to improve interaction and strengthen relationships.
• Continue to apply for additional funding as opportunities arise, including applying for future gang and crime prevention grants, and other opportunities. • Continue to identify and prioritize community concerns regarding crime and traffic, which will improve the health, safety, and security of the community. • Continue to work with the residents of our City and establish productive lines of communication to address concerns and facilitate community problem solving. • Work regionally with the other South County Cities to secure grant funding opportunities that may arise to help address community outreach, and engagement.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an increase of $245,627 or 8% in expenditures, and an increase of $63,050 or 55% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net City Cost is increased by $182,577.
Revenues
The increase in revenues is primarily due to reflecting the 50% offset for the School Resource Officer.
Personnel
The reason for the increase in this budget is mainly being driven by salaries and benefits due to having most of the Police Officer positions in the department filled.
Services and Supplies
Theis is essentially a status quo budget in this category.
Capital Projects and Fixed Assets
This budget reflects no expenditures.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 56 Packet Pg. 77
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 57 Packet Pg. 78
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 58 Packet Pg. 79
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Fire Department
Budget Narrative for FY 2022-2023
Budget Unit 310
DEPARTMENTAL MISSION
The Gonzales Fire Department is committed to providing safe and effective emergency response to our City and Rural Fire District in a friendly, cost-effective manner to ensure the safety of our residents and businesses. The Department continues to work collaboratively with other public safety agencies to maintain the highest quality of service and serve those in our diverse community.
ACCOMPLISHMENTS FOR FY 2021-2022
• Provided public safety services to our residents in a safe and effective manner. • Worked with our partners to provide COVID-19 vaccinations to our residents • Continued the training program to better prepare Volunteer Firefighters towards Firefighter 1 Certification, and Emergency Medical Technician (EMT) certification.
• Continued Fire Prevention/Business Inspection, and residential rental inspection programs.
• Added three permanent Firefighter positions to offset the loss of most of our volunteer firefighting force
• Helped oversee, monitor, and provide information to the community and businesses to respond to the COVID-19 pandemic “Shelter in Place” Order.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to search out grant opportunities to assist the City with maintaining and replacing Fire Department equipment.
• Continue to work collaboratively with other public safety agencies to ensure that the residents of our City are receiving the best public safety services available, such as the Auto-Aid Agreements.
• Continue instruction in CPR, First Aid, and disaster preparedness to our residents and businesses to ensure Gonzales is prepared for an emergency by creating a Community Emergency Response Team (CERT).
• Continue to perform all duties of the Fire Marshal including business inspections, fire investigations, and increase inspections of rental housing units. • Continue to train Firefighters towards Firefighter 2 and EMT advanced Certification.
59 Packet Pg. 80
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an overall increase of $223,914 or 30% in expenditures, and $1,000 or .3% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $222,914.
Revenues
The Department operates on funds obtained from General Fund, the Gonzales Rural Fire Protection District, Special EMS Assessments, and other grants. The City will also see approximately $6,500 in funding from CSA-74 monies that are collected by the County to provide medical supplies, training, and equipment. The increase in revenues is reflected from increase on property taxes from the Rural District.
To offset some of the increase, the budget reflects a $200,000 contribution from Measure K funds.
Personnel
The increase reflected in the budget is due to the three permanent Firefighter positions approved by the Council in the second quarter of FY 2021-2022 to offset our decreasing number of Volunteer Firefighters. One of the main reasons for the decrease as the fire season last longer, Cal Fire is retaining seasonal personnel longer. The projected growth of the City and subsequent increase in population will lead to an increase in call volume and the need for additional fulltime personnel.
Services and Supplies
Services and supplies object codes are essentially unchanged.
Capital Projects/Fixed Assets
The Department, in trying to maintain the City’s policy on fiscal responsibility, has scheduled no capital projects or fixed assets purchases (over $1,000) during the FY 2022- 2023 Recommended Budget.
MAJOR POLICY CONSIDERATIONS
While the City continues to use General Fund monies to support the Fire Department’s efforts, the overall cost of fire protection is minimal when compared to other cites. This is accomplished through the use of our Volunteers when possible and our auto aid agreements with other agencies to provide extra personnel when needed or large incidents.
60 Packet Pg. 81
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 61 Packet Pg. 82
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 62 Packet Pg. 83
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Building Regulation Department
Budget Narrative for FY 2022-2023
Budget Unit 320
DEPARTMENTAL MISSION
The Building Department supports the Vision and Mission of the City by providing excellent service in a friendly, cost-effective manner to ensure the community’s safety is sustainable.
DEPARTMENTAL PROGRAMS
• Construction Inspections are the primary function of this Department. • Plan reviews for Building Code compliance.
• Maintain permit issuance and fee collection system.
• Maintain Construction Demolition Debris Diversion Program. • Maintain Gonzales’ Employee Housing Program.
• Assist with the Code Enforcement Program through site inspections. • Maintain the Abandoned and Distressed Residential Property Program. • Assist in monitoring pre and post construction Storm Water Runoff Programs. • Coordinate efforts with other Departments.
• Maintain the Safety Assessment Program to assess disaster damage when needed.
ACCOMPLISHMENTS FOR FY 2021-2022
• During and as we recover from the pandemic, continued to provide building inspection services for all projects.
• Issued permit and collected fees appropriate for construction projects. • Maintained Construction Demolition Debris Diversion Program. • Complied with Employee Housing Program monitoring, and reporting requirements. • Investigated Code Enforcement complaints.
• Coordinated construction inspections and enforcement efforts with other Departments.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Inspect all construction projects.
• Review all plans for Building Code compliance.
• Issue construction permits.
• Collect and properly account for permit fees.
• Monitor and report Construction Demolition Debris Diversion. • Monitor Building Code compliance.
63 Packet Pg. 84
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • Monitor, inspect, and report Gonzales’ Employee Housing Program in compliance with State Codes.
• Collect, handle appropriately, and report any employee housing complaints. • Assist with the Code Enforcement Inspections and enforcement. • Inspect, account for, and report abandoned and distressed residential property as needed. • Assist in monitoring pre- and post-construction Storm Water Runoff Programs. • Coordinate with other Departments.
• Participate as part of Gonzales’ emergency planning, preparedness, and response team.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects no real change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Net Cost remains unchanged.
Revenues
This budget revenue is solely based upon anticipated building activity.
Expenditures
Expenditures in this department are mostly associated with services provided by an outside consulting firm for building inspections and plan check, which services are necessary in the absence of a City employed Plan Checker and Building Inspector.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 64 Packet Pg. 85
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 65 Packet Pg. 86
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 66 Packet Pg. 87
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Public Works Department
Budget Narrative for FY 2022-2023
Budget Unit 400
DEPARTMENTAL MISSION
The Mission of the Public Works Department is to enhance the quality of life of City residents through safe, courteous, and respectful service. Part of this Department’s charge is planning for the future to ensure Gonzales will continue to receive utilities, and other services as needed.
DEPARTMENTAL PROGRAMS
The Public Works Department is responsible for the following functions:
• Street maintenance
• Parks maintenance
• Building maintenance
• Automotive and equipment maintenance
• Operation and maintenance of the community pool
• Special events support
• Municipal water system
o Backflow device registration and annual testing
o Water leak detection
• Wastewater system
• Utility billing
• Capital improvements projects
• Issuance of encroachment permits
• Development project management and plan check
• Stormwater programs
o Non-point source pollution prevention program
• Emergency response
• Utility marking for construction projects
• Strom water percolation pond maintenance
• Graffiti abatement
• Budget management for various funds
• Management of assessment districts
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained operational efficiency within approved budgets. • Maintained the street system including pothole repairs • Managed the roadway signage and striping program.
67 Packet Pg. 88
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • Mowed and maintained city parks.
• Managed the contract landscaping firm.
• Maintained City-owned buildings.
• Provided support services for City functions
• Fleet maintenance
• Coordinated pool operation and maintenance.
• Provided support for community special events as requested. • Managed and maintained the City’s water production and distribution systems. • Coordinated utility billing with city finance staff including turn-on/off for monthly billing and adopted it to conform to State requirements. • Managed and maintained the City’s wastewater treatment and collection systems. • Provided training opportunities for public works staff to obtain job-related certifications.
• Managed and maintained six sewer lift stations.
• Managed a fats, oil, and grease program to minimize impacts to the wastewater collection system.
• Maintained a cross connection program to ensure the safety of the water system and users of the system.
• Issued and monitored encroachment permits for private projects in the public right-of-way.
• Participated in plan review and project development with community development department
• Provided maintenance services for City-owned facilities. • Marked underground utilities as requested for underground work in the right-ofway. • Mitigated graffiti as soon as possible.
• Coordinated stormwater program.
• Continued the Traffic Control program on the Fifth Street Bridge on school days. • Managed over 20 budget funds.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to provide excellent services, which enhance the quality of life in Gonzales for residents, businesses, and employees. These services will be provided considering the environment, safety, courtesy, integrity, and respect. • Provide utility services without interruption in a cost-effective manner. • Complete the updating of the Public Works Standards and Specifications. • Continue to provide operational support services to all departments. • Maintain programs as cost-effectively and sustainably as possible within approved budgets.
• Provide Public Works staff training and development.
• Have public works staff obtain certifications to operate the new Industrial Wastewater Treatment Facility.
• Pursue the use of technology as feasible to improve department operation. 68 Packet Pg. 89
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) FY 2022-2023 RECOMMENDED BUDGET
This Department’s FY 2022-2023 Recommended Budget represents essentially no change when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost essentially remains the same.
Personnel
The Public Works Department operates with the Public Works Supervisor, a Public Works Lead Worker, Maintenance Workers, and Mechanic. The Department is fully staffed. Personnel expenses are shared with utilities and assessment districts.
Services and Supplies
This budget reflects funding for:
• Safety supplies and training.
• Employee uniform services.
• Staff training costs to achieve and maintain certification in several areas.
The reduction is due to controlling costs due to the expected COVID-19 impacts.
Capital Projects/Fixed Assets
There are no capital projects, and/or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in the budget. 69 Packet Pg. 90
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 70 Packet Pg. 91
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 71 Packet Pg. 92
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Parks
Budget Narrative for FY 2022-2023
Budget Unit 500
DEPARTMENTAL MISSION
The Parks budget unit of the general fund supports the Vision of the City by enhancing the quality of life for Gonzales residents and visitors, through places for walking and other outdoor activities, public gatherings, and private family events. City staff strives to operate and maintain these public spaces as safe and clean through courteous and respectful service from our dedicated staff.
DEPARTMENTAL PROGRAMS
• Maintain City parks and open spaces.
• Replace trees as needed.
• Provide support for special events (Día Del Niños, Cinco De Mayo, and July 4).
ACCOMPLISHMENTS FOR FY 2021-2022
• Executed grant agreement to receive $178,8000 in Proposition 68 funds for the Skate Park Expansion Project
• Maintained City parks (Central, Centennial, Canyon Creek and Venice Parks) • Replaced trees in Central Park.
• Closed and reopened parks and restrooms according to County and State COVID Guidance.
GOALS FOR FY 2022-2023
• Order and install Skate Park Expansion Project using Proposition 68 funding • Issue the landscape maintenance contract for bidding since it’s been six years since Smith & Enright was engaged as the landscape maintenance contractor. • Ensure Parks are adequately maintained.
• Continue tree replacement.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents a decrease of ($46,631) or (50%) in expenditures, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is decreased by ($46,631). 72 Packet Pg. 93
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
Personnel costs reflect the time for Public Works staff to maintain the parks. There are no proposed significant changes. The reason for the decrease is due to a reallocation of salaries and benefits.
Services & Supplies
This budget unit covers maintenance supplies and utilities for parks. There are no proposed significant changes.
Capital Projects/Fixed Assets
There are no fixed assets reflected.
MAJOR POLICY CONSIDERATIONS
None.
73 Packet Pg. 94
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 74 Packet Pg. 95
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Recreation Services
Budget Narrative for FY 2022-2023
Budget Unit 510
DEPARTMENTAL MISSION
The Recreation Department supports the Vision and Mission of the City by meeting the recreational needs and desires of the residents of Gonzales by developing, implementing, and maintaining quality programs, services, and facilities which are cost effective, creative, and responsive to resident input.
DEPARTMENTAL PROGRAM
This budget reflects all the expenditures and revenues for the City’s recreational programming. It reflects youth sports, adult sports, environmental education, senior programing, and other recreational activities.
ACCOMPLISHMENTS FOR FY 2021-2022
• Sports programs were fully instated as of July 2021 after coming out of the pandemic shutdowns. All protocols continued to be put into effect to keep everyone safe and there were no issues.
• Overall the programs ran great even though the numbers started out on the lower end, by the end of the year they were higher than before, especially the basketball league.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Collaborating with outside cities to create an interleague division. • Look at putting together an all-girls basketball team at Jr level (11-14year-olds). • Run more softball clinics year-round to help kids develop their skills throughout the off season and create more energy around the sport.
• Consider starting an indoor soccer clinic/tournament. • Create open gym time for teenagers during the summer. • Work to increase and diversify participants in all programs. • Work to find additional funding sources and grants for recreation. • Increase collaboration and partnerships with the various community groups to enhance programming.
• Partner with other non-profits to enhance or supplant programs to reduce, and/or control costs.
• Increase opportunities for senior citizens, preschool, and teen groups. • Increase collaboration with outside agencies to expand programing. • Expand adult recreational sports programing.
75 Packet Pg. 96
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an overall decrease of ($29,887) or (15%) in expenditures, and no real change in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is decreased by ($30,639).
Revenues
The main reason for the revenues is due to bringing programming back on line after the past year of working through the Covid-19 pandemic.
Expenditures
Overall, expenditures are essentially status quo, and reflect the funds supported by a grant from the conference of U.S. Mayors to support an obesity program.
Personnel
Reflected in salaries and benefits are the core full time positions and limited part time positions.
Services and Supplies
Services and supplies reflect an increase due to an increase in the level of activity and programs.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected.
76 Packet Pg. 97
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 77 Packet Pg. 98
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 78 Packet Pg. 99
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) After School Program
Budget Narrative for FY 2021-2022
Budget Unit 511
DEPARTMENTAL MISSION
The Recreation Department supports the Vision and Mission of the City by meeting the recreational needs and desires of the residents of Gonzales by developing, implementing, and maintaining quality programs, services, and facilities which are cost effective, creative, and responsive to resident input.
DEPARTMENTAL PROGRAM
The Kid Power After School and Summer Programs have been running smoothly. The Program(s) provide consistency and stability for participants as well as an opportunity to continue learning and interacting safely in a structured environment.
ACCOMPLISHMENTS FOR FY 2021-2022
• Successfully ran the Kid Power Academy through the pandemic with 45 participants. • Successfully implemented summer camp with approximately 75 participants while adhering to all COVID-19 protocols and keeping students safe. • When needed, on-site testing for students was offered to prevent outbreaks.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Bring back pre-school programming which was paused due to the pandemic. • Look into brining back some traveling fieldtrips.
• Partner with outside organizations to bring in additional learning opportunities for students.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an increase of $73,398 or 42% in expenditures, and $32,000 or 50% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $41,398.
Revenues
The increase in revenues is due to the increase in programing as a result of coming out of the Covid-19 pandemic.
79 Packet Pg. 100 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
Salaries and benefits reflect the cost of the Youth Coordinator and the part-time staff needed to provide the programing. This area reflects the major reason for the increase.
Services and Supplies
Costs are essentially status quo.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
It is important to consider that this next year we will be back up to full programing, with potentially added traveling field trips due to the state and County being fully open again.
It is important to highlight that this budget was prepared last year with a reduced level of activity as a result of Covid-19. However; during the fiscal year, as the State and the County started to allow some programs to come back, the Kid Power Academy was stood up to provide a school learning and social environment to the kids that were struggling the most with online learning. This required the budget to be amended during the fiscal year. As a result, the increase comparison to the Amended Budget and actual activity, is not significant. 80 Packet Pg. 101 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 81 Packet Pg. 102
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) City Aquatics
Budget Narrative for FY 2022-2023
Budget Unit 515
DEPARTMENTAL MISSION
The Aquatics Program supports the Vision and Mission of the City by providing a safe environment for aquatic recreation, water safety through swim lessons, and provides opportunities for Gonzales residents to enjoy aquatic recreation.
DEPARTMENTAL PROGRAMS
This program provides all the expenditures for the operation and management of the City Aquatics (Pool) Program. It includes programs like open swim, swim team, movies at the pool, pool parties, and swim lessons.
ACCOMPLISHMENTS FOR FY 2020-2021
• The Aquatics program opened for summer of 2021.
• All programs adhered to COVID-19 restrictions but were able to function smoothly and participants were excited to be back in the water.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue safe operations with no major injuries.
• Teach and practice safety as part of all activities.
• Successfully manage and sustain programs.
• Maintain a Covid-19 safe environment.
• Structure all programs to be safe for both staff and patrons. • Seek out new partnerships to support our ongoing programming.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an overall increase of $39,352 or 46% in expenditures, and an increase of $8,000 or 40% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $31,352.
Revenues
Revenues are up slightly due to expected activity and programming. 82 Packet Pg. 103 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
Staffing costs have been adjusted to reflect the increase in activity as a result of coming out of the Covid-19 pandemic.
Services and Supplies
This is essentially a status quo budget.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
Major policy considerations include the scaling up of programs due to coming out of the pandemic and community being more comfortable with reengaging in recreational activities.
83 Packet Pg. 104 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 84 Packet Pg. 105
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Youth Development and Leadership Initiative
Budget Narrative for FY 2022-2023
Budget Unit 550
DEPARTMENTAL MISSION
The budget unit was created to keep track of aspects of the youth leadership programming and development underway.
DEPARTMENTAL PROGRAMS
The City of Gonzales has been coordinating with the Gonzales Unified School District (GUSD) and other Agencies to implement leadership development strategies for our youth. These efforts include the Gonzales Youth Council and the Ensuring Gonzales Youth Achieve 21st Century Success Initiative.
ACCOMPLISHMENTS FOR FY 2020-2021
• Continued work with the Youth Commissioners and the Gonzales Youth Council (GYC) even through the pandemic and through virtual platforms. • Continued to leverage the work on Mental Health and the infographics that were created by the GYC in partnership with CSUMB professor Dr. Lovell and her team.
• The GYC was also active in helping to get community engagement information for the Community Center and specifically the Teen Innovation Center. • One of the Youth Commissioners gave a speech at the press conference announcing the $5 million dollar allocation by Senator Ana Caballero. • Our GYC and Youth Commissioners continue to be sought after by local organizations and are seen as leaders in the County.
• The GYC also supported the Holiday Lights event on December 4th.
DEPARTMENTAL GOALS FOR FY 2022-2023
The joint vision shared by the City Council and School Board includes:
• Continue working with and developing the Youth Commissioners and GYC. • Continue to develop leadership opportunities for students k-12 that will teach them how to engage with community partners and businesses and give them the skills to become civically engaged in the community.
• Continue to develop engagement opportunities with the community, private sector, higher education, and external agencies and non-profits. • Continue developing the relationships that enforce our collective commitment to our youth and community.
85 Packet Pg. 106 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • Continue to engage the GYC in city projects like, the Gonzales Community Complex, the Teen Innovation Center, the New Growth Area, pedestrian safety and in mental health efforts.
• Continue to develop strategic partnerships to bring in more youth-friendly resources to the community.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects no change in expenditures and revenues.
As a result, the Requested Net City Cost remains unchanged.
Revenues
Revenues are minimal.
Expenditures
Expenditures reflected in the budget are to continue the different pieces of Ensuring Gonzales Youth Achieve 21st Century Success Initiative.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 86 Packet Pg. 107 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 87 Packet Pg. 108
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Quality of Life Temporary Tax Measure
Measure K
Budget Narrative for FY 2022-2023
Budget Unit 800
DEPARTMENTAL MISSION
This budget unit is administered by the City Manager’s Office whose Mission supports the Vision of the City by working to enhance the quality of life of our residents in an environment of safety, courtesy, integrity, and respect. This budget unit was created to keep track of the incoming revenue associated with the Measure ‘K’ Transaction and Use Tax, and monitor the associated expenditures, including the transfers out to other budget units and funds.
DEPARTMENTAL PROGRAMS
On November 4, 2014, 65 percent (65%) of Gonzales voters approved Measure ‘K’, enacting a one-half percent (0.5%) transactions and use tax. Revenue generated by the tax has provided the City with the financial flexibility to continue to move the City forward with a number of proactive and quality-of-life programs. The City’s authority to levy the tax expires on the tenth anniversary of the last day of the calendar quarter preceding the operative date.
ACCOMPLISHMENTS FOR FY 2021-2022
● Completed the list of services/programs and funding allocations recommended by the Measure ‘K’ Oversight Committee and approved by the City Council. These services and programs are reflected over three budgets, Youth Development & Leadership (Budget Unit 550), Debt Service (Budget Unit 900), and this one, which included:
▪ Provided match funds for the Sports and Senior Programs Coordinator position, and After School and Day Camp.
▪ Funded the Community Participation Grants.
▪ Provided funding for the Police Community, Business and Neighborhood Watch Program.
DEPARTMENTAL GOALS FOR FY 2022-2023
The Goals for FY 2022-2023 are to fully fund and support the efforts and programs recommended by the Measure ‘K’ Oversight Committee for this budget, which reflects:
• The annual debt service for the pool.
• The Community Grant Program.
88 Packet Pg. 109 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) • “Ensuring Gonzales Youth Achieve 21st Century Success” afterschool “Kid Power”, summer youth programs, and recreational preschool.
• The Senior/adult programming.
• The Olinga “Wings of Knowledge” Youth STEM program and the Salinas Valley Promise Scholarship at Hartnell Junior College.
• The Tree Replacement Program that was deferred the prior year. • The Police Department community, business, and neighborhood watch program. • The City’s share of the jointly funded Licensed Clinical Social Worker position with the Gonzales Unified School District to increase mental health services for our youth and community.
• Help offset the cost of 3 fulltime Fire Fighter positions necessary to augment and maintain the high level of fire services for the community. • Shop small business campaign
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an overall increase of $106,000 or 21% in expenditures and $45,000 or 6% in revenues, when compared to the FY 2021-2022 Approved Budget. However, unlike the other General Fund budgets, looking at the Net Cost for this budget unit is not very relevant because while all the TUT revenue is reflected in this budget, in addition to this budget, it is used to fund the expenditures in Budget Units 310, 511, 550, and 800.
Revenues
Revenues reported in this budget unit are those associated with the proceeds collected from the one-half percent (0.5%) transactions and use tax. The increase is based on the expected spending activity and patterns expected as we come out of the pandemic.
Expenditures
Expenditures in the budget unit represent the costs paid to the State Board of Equalization with regard to administration and oversight, and those programs and services funded by tax revenues that are recommended by the Measure ‘K’ Oversight Committee, listed above, and approved by the City Council.
Personnel
While the City Manager, Community Development Director, and other Department Heads will participate in the completion of program tasks and duties, no salaries and benefits are allocated to this budget.
Services and Supplies & Fixed Assets
The budget reflects a mix of appropriations for the committee to utilize as part of their recommendations to the Council listed above in the FY 2021-2022 Goals. 89 Packet Pg. 110 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
MAJOR POLICY CONSIDERATIONS
The Measure ‘K’ Oversight Committee is appointed by the City Council to provide advisory recommendations on an annual spending plan for Measure ‘K’ revenues to the City Council. 90 Packet Pg. 111 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 91 Packet Pg. 112
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Quality of Life Temporary Tax Measure
Measure X
Budget Narrative for FY 2022-2023
Budget Unit 850
DEPARTMENTAL MISSION
This budget unit is administered by the City Manager’s Office whose Mission supports the Vision of the City by working to enhance the quality of life of our residents in an environment of safety, courtesy, integrity, and respect. This budget unit was created to keep track of the incoming revenue associated with the Measure ‘X’ Transaction and Use Tax, and monitor the associated expenditures, including the transfers out to other budget units and funds.
DEPARTMENTAL PROGRAMS
On November 3, 2020, Gonzales voters approved Measure ‘X’, enacting an additional onehalf percent (0.5%) general purpose transactions and use tax (TUT). Revenues generated by the tax are flexible, but were approved by the voters to provide funding for and in a variety of areas; including, the Community Center Complex project, streets, parks, etc. This measure has provided the City with the financial flexibility to continue to move the City forward with a number of proactive and quality-of-life programs. The City’s authority to levy the tax expires November 2044, the last day of the calendar quarter preceding the operative date.
ACCOMPLISHMENTS FOR FY 2021-2022
Advisory Subcommittee approved the use of these funds for the Community Center Complex Project.
DEPARTMENTAL GOALS FOR FY 2022-2023
Continue to engage the Advisory Subcommittee and proactively and thoughtfully move the Community Center Complex project to the construction phase.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents expenditures and revenues of $750,000 which is an increase of $45,000 or 6.3% when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged. 92 Packet Pg. 113 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
Revenues reported in this budget unit are those associated with the proceeds collected from the one-half percent (0.5%) transactions and use tax. The increase is based on the expected spending activity and patterns expected as we come out of the pandemic.
Expenditures
Expenditures in the budget unit represent the costs for the Community Center Complex Project
Personnel
While the City Manager, Community Development Director, and other Department Heads will participate in the completion of program tasks and duties, no salaries and benefits are allocated to this budget.
Services and Supplies
With the exception of engineering and surveying costs for the Community Center Complex project, no other costs are reflected.
MAJOR POLICY CONSIDERATIONS
The Measure ‘X’ Advisory Subcommittee is appointed by the Measure K Oversight Committee to provide advisory recommendations on an annual spending plan to the City Council.
While the budget reflects the $750,000 allocated to the project, work is underway on developing the financing vehicle and as a result, portions or all of this amount would be used for debt service should the financing be secured. It is expected that this will be brought to the Council for action sometime before the end of the year. 93 Packet Pg. 114 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 94 Packet Pg. 115
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) General Fund Debt Service
Budget Narrative for FY 2022-2023
Budget Unit 900
DEPARTMENTAL MISSION
This is the budget unit that was set up to track the General Fund debt service payments.
It currently reflects the General Fund debt service payments for the (a) Community Pool Renovation Project, and (b) Phase II of the Solar Project.
ACCOMPLISHMENTS FOR FY 2021-2022
• Made the debt service payment.
DEPARTMENTAL GOALS FOR FY 2022-2023
• As needed, used this budget to track General Fund debt payments.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects no change when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net City Cost remains unchanged.
Personnel
No costs are reflected in this area.
Services and Supplies
The only cost in this area is reflecting the appropriation for debt interest, and principal for the Community Pool Renovation Project that is being covered by TUT revenues, and the transfer to the Solar Fund to cover the General Fund’s portion of Phase II – Solar Project debt.
Capital Projects/Fixed Assets
No costs are reflected in this area.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 95 Packet Pg. 116 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 96 Packet Pg. 117
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) COVID-19
Budget Narrative for FY 2022-2023
Budget Fund 110
DEPARTMENTAL MISSION
This budget unit was created to keep track of all the activities related to COVID-19.
DEPARTMENTAL PROGRAMS
Due to the COVID-19 crisis, the City of Gonzales has had to implement unprecedented strategies to address the local need and provide support for community members struggling through the pandemic. We have been able to do this through numerous partnerships and by prioritizing specific projects and staff time.
ACCOMPLISHMENTS FOR FY 2021-2022
• Through our partnership with the Community Foundation for Monterey County and the County, we were able to secure $137,957 for the Community Health Worker program in addition to numerous amounts of PPE and thousands of free COVID-19 tests and other resources. Through the program we have been able to support vaccination for at least 5,507 individuals and conduct 4,285 COVID-19 tests while providing over 10,000 resources to the community. Most recently, we have secured another $216,054 to continue with the program through the end of December 2022.
• Partnered with GUSD to provide COVID-19 testing support and resources. We provided onsite testing for student athletes and teachers and continue to provide testing at the school’s technology building.
• Supported mass vaccine clinics in the community including one for 5–12-year-olds for the school at the Joint Use gym.
• Presented on our COVID-19 efforts at numerous platforms including a webinar for the Robert Wood Johnson Foundation in September of 2021 and a presentation at the Western Forum for Migrant and Community Health in April of 2022. • Reached 100% vaccination rate based on the County’s tracking system for those eligible for vaccines who were 12 years old and up.
• Supported over 24 mass vaccine clinics.
• Had our Community Health Workers (CHWs) trained in COVID-19 testing and brought a free testing site to Gonzales that still operates and at the beginning of 2022 was one of very few testing sites left. The site drew people from across the county and even people as far as Carmel, Gilroy and Santa Cruz. • Brought in $52,000 from our Internet for All HotSpot program through partnerships with the Monterey County Health and the Chualar Unified School District by renting out our surplus of devices to them. • Distributed approximately $670,000 in rental and utility assistance to the local community to help avoid evictions and utility back dues. 97 Packet Pg. 118 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue supporting the community to help them overcome the challenges that the pandemic imposed on them.
• Identify areas of improvement to address the inequities that the pandemic shed light on.
• Continue to nurture and build partnerships to help us address outstanding local needs.
• Continue to be responsive, nimble and accessible to the public and our partners. • Continue working with the community to build local capacity. • Continue to support our local businesses so that they survive the crisis. • Continue to educate and support the public in their efforts to stay healthy through a verity of measures.
• Continue to be a community at the forefront of innovation and leadership.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget reflects an increase of $74,049 or 58% in expenditures and $200,000 in revenues. As a result, the Net Cost is decreased to $0.
Estimated Fund Balance
The year-end Fund Balance is estimated to have a remaining total of $131,100 to be spent through FY 2022-2023, which is sufficient to offset the Net Cost.
Revenues
Grant revenues reflected in this fund are to continue the CHW program.
Expenditures
The reason for the increase is we received multiple grants to continue the CHW Program to support our community as we recover from the COVID-19 pandemic.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 98 Packet Pg. 119 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 99 Packet Pg. 120
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) American Rescue Plan
Budget Narrative for FY 2022-2023
Budget Fund 111
DEPARTMENTAL MISSION
This budget has been established to track the American Rescue Plan funds that will be received by all Cities, Counties, and States from the Federal Government. As a nonentitlement City, Gonzales is scheduled to receive $1,986,972 over two payments of $993,486 each.
Broadly speaking, the funds can be used for projects in 5 broad categories:
• Support public health expenditures by funding COVID-19 mitigation effort, medical expenses, behavioral healthcare, and certain public health and safety staff; • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector;
• Replace lost public sector revenue using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; • Provide premium pay for essential workers offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and
• Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.
ACCOMPLISHMENTS FOR FY 2021-2022
● Followed all the guidelines and principles for determining the types of programs and services that this funding can support.
● Carefully track and manage revenues and expenditures. ● Utilizing the under $10 million in total funds exemption, captured as much as possible of the America Rescue Plan Funds to reimburse allowable expenditures and offset the T-Mobile hotspot expenditures.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Continue to use the funds for their allowable purposes, and abide by all the necessary guidelines and principles for determining the types of programs and services that this funding can support.
100
Packet Pg. 121 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) ● Carefully track and manage revenues and expenditures.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects an increase of $363,660 or (46%) in expenditures, and no change in revenues.
Revenues
The budget reflects receiving the second payment.
Expenditures
The recommended budget reflects utilizing the funds of:
• $300,000 to offset the T-Mobile hotspot expenditures for an additional year. • $75,000 for the City’s share of the cost for the newly formed Broadband Joint Powers Authority (JPA).
• $10,027.71 for the City’s share of the costs for participation in the Salinas Valley Five Cities Workforce Partnership.
• $500,000 to offset General Fund project expenditures. • $58,500 to cover the necessary upgrade of the City’s computer infrastructure reaching its end of life.
• $47,500 to cover the necessary update/upgrade of the City’s Financial System (Fund Balance) reaching its end of life.
• $35,000 to match and finish the Skate Park Improvement Project. • $25,000 to cover the necessary upgrade and replacement of the City’s website that will no longer be supported.
• $15,592 to seed a downtown beautification project.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations.
101
Packet Pg. 122 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 102
Packet Pg. 123
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Community Development
Budget Narrative for FY 2022-2023
Budget Fund 120
DEPARTMENTAL MISSION
The Community Development Fund addresses a range of projects of general benefit to the community that are supported by the Small Cities Community Development Block Grant (CDBG) Program, the HOME Program, and other public grant sources. Projects include development of affordable housing, rehabilitation of housing, and other housing related activities. Projects may also include development of public infrastructure and improvements such as streets, paving, sidewalks, and similar facilities of benefit to lower income members of the community.
Fund 120 sets forth revenues secured by approved grants from the Community Development Block Grant (CDBG) and other sources, and Program Income received from repayment of previous loans. The expenditure portion of Fund 120 identifies the expected dispersal of these funds to City departments, and consultants assisting the City.
ACCOMPLISHMENTS FOR FY 2021-2022
• Resources from this fund where combined with the Successor Agency – Housing Fund to purchase the Marchetti property on South Alta Street for development of a much-needed senior housing project.
• Entered into an agreement with CHISPA to build the senior housing project on South Alta.
• Continued to support our small businesses.
DEPARTMENTAL GOALS FOR FY 2021-2022
● Continue coordinating with the City’s Economic Development Committee on the implementation of measures contained in the City’s Economic Development Strategy and Action Plan for business retention, development, and attraction. ● Seek and apply for a grant from the State Department of Housing and Community Development (HCD) from the HOME Investment Partnership Grant Program, for grant funds associated with the rehabilitation of homeowner occupied dwellings. ● Continue to search out other grant opportunities.
● Working with CHISPA begin development of the senior housing project on South Alta.
● Reengage and reestablish the small business loan program and a façade improvement program.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects an increase of $19,762 or 16% in expenditures, and no change in revenues, when compared to the FY 2021-2022 103
Packet Pg. 124 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Approved Budget. As a result, the Net Cost is increased by $19,762.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $232,000 as of June 30, 2022, which is sufficient to cover the Net Cost.
Revenues
The revenues for the Fund’s activities are derived from interest and grants. In addition to interest payments, staff is always looking for and applying for additional grants that can be used to for the small business loans.
Expenditures
The expenditures reflected in the budget are for consultant services and other items or initiatives to reinvigorate the programs, and efforts help develop a Downtown Business Improvement District and set up a Business Façade and Improvement Grant Program to grow our local businesses.
MAJOR POLICY CONSIDERATIONS
City staff will be reengaging with the downtown business district to refresh the area, implement façade program and maximize the use of the alleys to improve parking. 104
Packet Pg. 125 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 105
Packet Pg. 126
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Business Loan Grant Program
Budget Narrative for FY 2022-2023
Budget Fund 123
DEPARTMENTAL MISSION
The fund is administered by the Community Development Department and was established to track expenditures and revenues for the Community Development Business Assistance Loan Grant Program. Funds under this program are restricted to certain eligible costs, including: operating capital; furniture fixtures and equipment (FF&E); rehabilitation of leased space or owned buildings (including engineering and architectural and local permits or fees); purchase of manufacturing equipment (with or without installation costs); refinancing of existing debt in conjunction with financing other eligible costs; purchase of real property; required offsite improvements; or relocation grants for persons displaced due to funding of the project.
Fund 123 sets forth revenues secured by approved grants from the Small City’s Community Development Block Grant (CDBG) Program and other sources, and program income received from repayment of loans once made.
ACCOMPLISHMENTS FOR FY 2021-2022
● Continued work with the City’s Business Loan Consultant to market and promote the program to small businesses in the City.
● Captured additional CDBG CARES grant funds to assist businesses.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Reengage and reestablish the small business loan program and a façade improvement program.
● Set a couple of dates in the FY for City staff and the Program Consultant (Angel Johnstone) to meet with grant recipients. These annual visits allow City Staff to gauge success and progress of the program.
● Finish disbursing the CDBG CARES Fund received for small business assistance, to help mitigate for some of the impacts of the COVID-19 pandemic.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects a decrease of ($100,000) or (42.5%) in expenditures, and ($200,000) or (453%) in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Fund’s Net Cost is increased by $100,000.
106
Packet Pg. 127 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Fund Balance
The year-end Fund Balance is estimated to be $214,400 as of June 30, 2022, which is more than enough to offset the Net Cost.
Revenues
The revenues in the Fund are derived from principal and interest payments associated with business assistance loans granted in previous years, and from grant funding received from the State Department of Housing and Community Development (‘HCD’). Revenues are modest for this Fund and represent principal payments received.
Expenditures
Expenditures are reflected to fund some loans and the program’s consultant.
MAJOR POLICY CONSIDERATIONS
As mentioned above, a vigorous effort will be brought forward to market the program and implement a new round of micro loans and façade improvement grants. 107
Packet Pg. 128 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 108
Packet Pg. 129
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Air Pollution Control Fund
Budget Narrative for FY 2022-2023
Budget Fund 124
DEPARTMENTAL MISSION
This fund administrators air pollution control funds to reduce transportation-related pollution. The Monterey Bay Air Resources District AB2766 Program allowed the city to loan funds for transportation-related pollution reduction measures.
ACCOMPLISHMENTS FOR FY 2021-2022
• Monitoring of loan repayment.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to monitor loan repayment.
• As opportunities present themselves, continue to modernize the city vehicle fleet with energy efficient vehicles like electric vehicles.
• As needed, provide funding to continue to improve the City’s climate action plan and programs.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $28,000 or 280% in expenditures when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $28,000).
Estimated Fund Balance
The year-end Fund Balance is estimated to be $85,500 as of June 30, 2022, which is sufficient to offset the Net Cost.
Revenues
Revenues had been derived from the repayment of a pollution control loan that was provided for the construction of a Biodiesel Fueling Station that has been fully repaired.
Personnel
No costs are reflected in this area.
Services and Supplies
There are no costs reflected in services and supplies.
109
Packet Pg. 130 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Capital Projects/Fixed Assets
The budget reflects $38,000 to continue to modernize and make the City’s Fleet more energy efficiency.
MAJOR POLICY CONSIDERATIONS
No policy considerations are reflected at this time for this budget. 110
Packet Pg. 131 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 111
Packet Pg. 132
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Urban County
Community Development Block Grant (CDBG) Fund
Budget Narrative for FY 2022-2023
Budget Fund 127
DEPARTMENTAL MISSION
This Fund is administered by the Community Development Department and was established to fund the Community Development Block Grant (CDBG) Programs funded by the Federal Department of Housing and Urban Development (HUD), through the City’s participation in the Urban Entitlement County together with the City of Greenfield, Sand City, and the County of Monterey. The financial resources supporting the fund are grant funds awarded to the Urban County participants by HUD.
DEPARTMENTAL PROGRAMS
The Fund’s revenues and expenditures vary from year to year depending on City staff’s ability to capture grant funds provided by HUD, and the formula for grant disbursement used by the County.
Per the allocation formula, the City will receive a total of approximately $809,000 over two years: $404,000 in FY 2022-23 and up to $405,000 in FY 2023-24.
ACCOMPLISHMENTS FOR FY 2021-2022
• Captured additional CDBG CARES grant funds to assist businesses and provided .
DEPARTMENTAL GOALS FOR FY 2022-2023
• Apply for grants and capture funds.
• Finish disbursing the CDBG CARES Fund received for small business assistance, to help mitigate for some of the impacts of the COVID-19 pandemic. • Draw down the first payment of CDBG funds programmed for the Community Center Complex Project
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget reflects an increase of $244,195 or 114% in expenditures, and $259,000 or 130% in revenues, when compared to the FY 2021- 2022 Approved Budget. As a result, the Fund’s Net Cost remains unchanged.
Revenues
Revenues reflected in this fund are grant funds being awarded through the CDBG Urban Entitlement Program.
112
Packet Pg. 133 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Expenditures
Expenditures reflected in this Fund are the programs for the Community Center Complex Project.
MAJOR POLICY CONSIDERATIONS
Pending FY 2022-2023 and FY 2023-2024: Last July 2020, when the Board of Supervisors adopted the 2020-2021 Annual Action Plan, they also considered how to allocate funds during the balance of the Consolidated Plan Period with an eye to making larger but more infrequent distributions of funds to each partner jurisdiction. With this Consolidated Plan, the City of Gonzales will receive $404,000 in FY 2022-2023, and $405,000 in FY 2023- 2024. Per Council direction, these funds will be programmed for the Community Center Complex Project starting July 2022.
113
Packet Pg. 134 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 114
Packet Pg. 135
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Street Fund
Budget Narrative for FY 2022-2023
Budget Fund 130
DEPARTMENTAL MISSION
This fund includes maintenance, improvements, signage, landscaping, and management of the street system. Assigned employee salaries and benefits are also included in this fund.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained the City’s streets including pothole repairs as needed. • Maintained streetscape as efficiently as possible.
• Maintained street striping and signage.
• Maintained stormwater drainage and retention pond system. • Restarted directing traffic and pedestrians at the Fifth Street Bridge when the school year begins in mid-August.
• Issued Slurry Seal contract for public bid
DEPARTMENTAL GOALS FOR FY 2022-2023
• Prepare bid documents for a Slurry Seal contract
• Present a plan to the City Council for reconstructing collector streets in poor condition
• Continue improving street landscaping.
• Maintain stormwater ponds in an efficient manner.
• Continue to maintain the Striping and Street Sign Program.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an overall decrease of ($78,039) or (12%) in expenditures, and ($127,650) or (21%) in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $49,611.
Revenue
This budget reflects revenue received from several State transportation taxes, and the Soledad Subvention funds. The slight increase is spread out over several revenue object codes.
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Packet Pg. 136 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
The Public Works Department provides the personnel requirements for this fund, and Fund 130 reflects a portion of the Public Works salaries. Only assigned personnel’s time is charged to this fund.
Services and Supplies
This fund included services such as engineering for street maintenance, improvements, and planning. Supplies for street maintenance are also included in this fund, as well as street striping, signs, and pothole repairs. Street trees and their maintenance were funded by this account. The reason for the decrease is mainly due to a reduction in expected revenues.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in the budget at this time.
MAJOR POLICY CONSIDERATIONS
The major policy consideration for this fund is how to annually implement and therefore fund recommended roadway rehabilitation measures from the City’s Pavement Management Plan.
Two long term revenues, the Regional Transportation Tax being used to cover the loan for the Alta Reconstruction Project, and SB1 being used to cover the loan for the Gloria Road/Iverson Rehabilitation Project, will be available within a few years to fund the plan.
At which time, the City will have over $500,000 annually to rehab and improve the street network.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 118
Packet Pg. 139
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Measure X Transportation Program Fund
Budget Narrative for FY 2022-2023
Budget Fund 136
DEPARTMENTAL MISSION
This Fund tracks funds allocated to the City from TAMC’s 0.375% Regional Sales Tax.
Measure X was approved by County voters in November 2016. Under Measure X, 60% of the sales tax revenue goes to local cities and the County of Monterey for road maintenance projects. Regional safety and mobility projects receive the other 40% of the revenue.
DEPARTMENTAL PROGRAMS
• This fund is used to plan and implement street system repairs and improvements.
ACCOMPLISHMENTS FOR FY 2021-2022
• The City’s Measure X funds continued to make the debt service payment to TAMC for the $2.5 million, that was borrowed to partially fund the Alta Street Pavement Rehabilitation Project that was completed in December 2018.
DEPARTMENTAL GOALS FOR FY 2022-2023
• This fund will continue to be used to repay the $2.5M loan for the Alta Street Pavement Rehabilitation Project for the next 6 to 7 years.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $48,721 or
18.5% in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is zero.
Revenues
The increase in estimated revenues is due to an anticipated increase of the Regional Transportation Tax.
Personnel
There are no personnel costs reflected in this budget.
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Packet Pg. 140 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
There are no service or supply costs reflected in this budget.
Capital Projects/Fixed Assets
The debt service of the Alta Street Pavement Rehabilitation Project repayment is the only expense included in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy decisions for this fund this year.
Overall, the debt service agreement with TAMC reflects that the City’s share of the Regional Transportation Tax will be used to cover the annual debt service payment, until the debt is retired. Once that debt is retired, these funds will be used for street rehabilitation projects as prioritized by the City Council.
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Packet Pg. 141 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 121
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) SB1 Transportation Program Fund
Budget Narrative for FY 2022-2023
Budget Fund 137
DEPARTMENTAL MISSION
This Fund tracks the special transportation funds generated by Senate Bill 1 signed by Governor Brown in April 2017.
DEPARTMENTAL PROGRAMS
This fund is used to design and construct roadway rehabilitation project in compliance with SB1 requirements.
ACCOMPLISHMENTS FOR FY 2021-2022
Funds were programmed for the City’s portion of the Gloria Road/Iverson Road/Johnson Canyon Road Improvement Project, a joint project with Monterey County and Salinas Valley Solid Waste Authority.
DEPARTMENTAL GOALS FOR FY 2022-2023
Funds will be used to cover the City’s portion of the Gloria Road/Iverson Road/Johnson Canyon Road Improvement Project.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $23,938 or 14% in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Revenues
Revenues are up from the FY 2021-2022 Budget based on the estimates received from the State.
Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
There are no service or supply costs reflected in this budget. 122
Packet Pg. 143 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected in this budget. The only expenditures reflected are a transfer to the Street Fund (Fund 130), which will be used to rehabilitate City streets and help fund the Pavement Management Plan.
MAJOR POLICY CONSIDERATIONS
There are no major policy decisions for this fund for this fiscal year. 123
Packet Pg. 144 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 124
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Supplemental Law Enforcement
Budget Narrative for 2022-2023
Budget Fund 150
DEPARTMENTAL MISSION
The Supplemental Law Enforcement Fund is administered by the Police Department as a fiscal record keeping fund that tracks grant funding, that the City has obtained from the Federal and State governments. The grant funding supports the City’s Mission by working in a fiscal responsible manner to provide public safety services to our residents, businesses, and visitors.
The safety of Gonzales’ residents is the number one concern of the Police Department.
The collaborative working relationship with other government agencies to provide law enforcement funding, continues to assist our City in providing these services to our diverse community.
ACCOMPLISHMENTS FOR FY-2021-2022
Please see Budget Unit 300.
DEPARTMENTAL GOALS FOR FY 2023-2023
Please see Budget Unit 300.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents an no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Revenues
This fund receives Supplemental Law Enforcement funds provided by California Government Code 30061.
While Gonzales currently uses this revenue to help support the salaries of two front line Police Officers, the reality is that the funding is no longer adequate to pay those salaries in full, and General Fund monies are needed to offset the difference. 125
Packet Pg. 146 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
The Supplemental Law Enforcement Fund is designed as the fund where grant monies are funneled when they are received by the City. This fund is managed by the State of California when they are received from the Federal government.
Once the funds are received, they are transferred to the Public Safety Fund (210), where they are used for personnel costs as outlined above.
Services and Supplies
There are no expenses reflected in this category.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets associated with this fund.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 126
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Fire Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 190
DEPARTMENTAL MISSION
This Fund is administered by the Fire Department and supports the City’s Mission and Vision by providing funding for needed equipment and for future needs of the Fire Department when new developments come to Gonzales. These funding sources allow the Department to provide services to our residents, businesses, and visitors, and ensure their safety.
ACCOMPLISHMENTS FOR FY 2021-2022
• Collected Impact Fees for all new development in the City limits. • Collected Impact Fees for all new development in the Gonzales Rural Fire Protection District.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to collect all applicable Impact Fees from new development in the City, and the Gonzales Rural Fire Protection District.
• Maintain current equipment owned by the City to ensure adequate responses to public safety emergencies within the City and Rural District. • Ensure that the Department has adequate equipment to handle public safety emergency brought on by new development.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Net Cost is unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $5,800 as of June 30, 2022, which is more than adequate to cover the Fund’s Net Cost.
Revenues
Revenues will continue to be collected and may increase if further development is approved.
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Packet Pg. 149 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
There are no personnel costs associated with this fund.
Services and Supplies
An appropriation of $20,000 has been set aside in the event that it is needed during the fiscal year in Special Departmental Expenses and $5,000 in Other Contractual Services to cover the costs of a grant writer to pursue grants for a replacement fire engine.
Capital Projects/Fixed Assets
None are planned at this time.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 129
Packet Pg. 150 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 130
Packet Pg. 151
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) General Plan Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 200
DEPARTMENTAL MISSION
This Fund is administered by the Community Development Department and was established to pay for periodic updates and revisions to the Gonzales General Plan and follow-up work in support of the General Plan. The financial resources supporting the fund are General Plan Maintenance Impact Fees, transfers from the general fund and other City accounts, grants, and interest income of funds on deposit as warranted.
ACCOMPLISHMENTS FOR FY 2021-2022
● Ongoing meetings with the land developers within the new growth area of the General Plan.
● Made some great headway on submitting the annexation application to Local Agency Formation Commission (LAFCO).
● Completed a major portion of the Supplemental Environmental Impact Report.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Continue to search out new grant opportunities and apply whenever feasible - e.g., HCD's 'Local Early Action Planning' Program Funds ('LEAP' grant) to fund the 2023 Housing Element update with work to commence in FY 2022-2023. ● Complete and submit the annexation application for the Vista Lucia Specific Plan to submit to LAFCO for the new growth area.
FY 2022-2023 RECOMMENDED BUDGET
The Fund was originally created to address the financial needs of updating and maintaining the City’s General Plan. Currently, it reflects no activity.
Revenues
There are currently no revenues.
Expenditures
There are currently no expenditures.
MAJOR POLICY CONSIDERATIONS
1. Refer to Fund 201for Sphere of Influence development.
2. Begin planning in the near future for the General Plan Update to occur in the 2030 to 2032 timeframe.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Sphere of Influence Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 201
DEPARTMENTAL MISSION
This Fund is administered by the Community Development Department and was established to fund the processing of the Sphere of Influence boundary change that was approved by LAFCO in 2014. This fund subsequently became the Fund to accommodate the two Environmental Impact Reports (EIR) that will be running their courses thru 2021 for the Vista Lucia Specific Plan, and 2022 for the Puente del Monte Specific Plan. These EIRs will address the future development in the new growth area to the east as approved in the City’s 2010 General Plan. The financial resources supporting this fund are contributions from the land developers, and/or landowners within the Sphere of Influence area, the City, and grants that may be available. The City also contributed to this fund with SB 2 grant funds.
ACCOMPLISHMENTS FOR FY 2021-2022
● Received REAP grant for $65,000 for purposes of subsidizing the cost of the aforementioned environmental documents. Funding captured in 2020-21 and remaining to be captured in 2021-22.
● Continued to engage in extensive management and meetings with the two development teams (Pembrook and Jackson Family Investments) related to future east side development of the Vistal Lucia and Puente del Monte Specific Plans. ● Made significant progress on the Supplemental Environmental Impact Report and completed many of the interim improvement studies.
● Completed the Impact Fee Study
DEPARTMENTAL GOALS FOR FY 2022-2023
● Complete and certify the SEIR for the new growth area. ● Complete and submit the annexation application to LAFCO.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget reflects no change in expenditures, and a decrease of ($360,000) or (99%) in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Net Cost is increased by $360,000.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $422,000 as of June 30, 2022, which is sufficient to offset the Net Cost.
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Packet Pg. 154 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
The reason for the decrease is most of the revenue anticipated has been received.
Expenditures
Expenditures reflected in the Fund are for consultants to finish the needed studies for the next growth phase of the City.
MAJOR POLICY CONSIDERATIONS
This fund is critical to moving towards annexation of the Vista Lucia Villages and Puente Del Monte Specific Plan projects. City Staff continuously seeks new grant funds to augment cost of work to be completed under Fund 201.
134
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Packet Pg. 156
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Public Safety Fund
Budget Narrative for FY 2022-2023
Budget Fund 210
DEPARTMENTAL MISSION
This fund is administered by the Gonzales Police Department, who supports the Vision and Mission of the City of Gonzales by providing a cooperative community policing philosophy, to provide law enforcement services to our residents, businesses, and visitors.
The chief’s goal of the Department is the safety of all our residents and visitors. The Department takes a zero-tolerance approach to all crime issues that face Gonzales. It is this collaborative working relationship with our businesses, and residents that makes Gonzales one of the safest communities in Monterey County.
ACCOMPLISHMENTS FOR FY 2021-2022
Please see Budget Unit 300.
DEPARTMENTAL GOALS FOR FY 2022-2023
Please see Budget Unit 300.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects an increase of $20,416 or 6% in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Revenues
The reason for the increase is due to the increased transfer from the General Fund to cover expenses.
The funds contained in this fund are a pass through from Fund 150, and also include AB 109 grant funds. They are used to pay salaries, and other direct front line efforts. AB 109 funding is being used to purchase equipment for the Department, explorer program, and items used for community outreach, such as the National Night Out in August.
The revenue source continues to hold steady, but it is no longer sufficient to fully cover the cost of the two Police Officers allocated to this fund. 136
Packet Pg. 157 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
The Public Safety Fund is where grant monies collected in the Supplemental Law Enforcement Fund (150) are transferred to be used to pay the partial salaries and benefits for two Officers. The remaining costs are funded through the City’s General Fund. At its inception, the fund was able to cover all of the salaries, benefits, and associated costs of one and a half Police Officer positions.
Services and Supplies
Services or supplies reflect contractual services for direct front line community activities and equipment needs of the Department.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets associated with this fund.
MAJOR POLICY CONSIDERATIONS
As mentioned in the Narrative for Fund 150 – Supplemental Law Enforcement, the City must continue to address the inability of the current funding source to fully fund this program.
137
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Police Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 220
DEPARTMENTAL MISSION
This fund is administered by the Gonzales Police Department who supports the Vision and Mission of the City by providing public safety services, based on a cooperative community policing platform, to ensure the safety of all our residents, businesses, and visitors.
DEPARTMENTAL PROGRAMS
This fund is used to track revenues and expenditures associated with collection of Police Impact Fees received from new development within the City. Growth induced costs may be funded by the Budget Unit.
ACCOMPLISHMENTS FOR FY 2021-2022
Please see Budget Unit 300.
DEPARTMENTAL GOALS FOR FY 2022-2023
Please see Budget Unit 300.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget reflects no expenditures no change in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $43,000 as of June 30, 2022.
Revenues
The budget reflects impact fee revenues expected from development.
Expenditures
The budget reflects no expenditures.
139
Packet Pg. 160 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 140
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Sewer Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 230
DEPARTMENTAL MISSION
This fund is for capital improvements on the City’s Wastewater System (pipelines, lift stations and Wastewater Treatment Plant (WWTP)) to support residential, commercial, and industrial development in Gonzales. Sewer Impact Fees are received from sewer connections and sewer allocations to residential, commercial, and industrial customers.
DEPARTMENTAL PROGRAMS
1. Plan, design, permit and construct conveyance improvements to support proposed development projects in the City’s Sphere of Influence and other residential, commercial, and industrial growth in Gonzales.
2. Implement a sewer rate program to assess and collect appropriate fees to fund needed improvements.
3. Construct facilities needed to support SOI Development (residential and commercial projects) east of US101 in Gonzales.
ACCOMPLISHMENTS FOR FY 2021-2022
1. Completed the design of the two bid packages for the $25M 1.0 MGD Industrial Wastewater Conveyance and Treatment Facility. This includes completing the EIR for the project and submitting for a State Revolving Fund loan from the State Water Resources Control Board.
2. Continued City staff’s coordination and meetings with Regional Board staff to discuss on the operation of the existing WWTP and efforts to increase the WWTP capacity, such as the Industrial Wastewater System.
3. Completed the Rehabilitation of the Lift Station just downstream of the headworks at the WWTP. This was a $600,000 capital improvement project.
4. Completed Aeration Pilot Project that will be used to augment existing aeration in the Treatment Ponds at the WWTP.
5. Continue coordination with Taylor Farms, Del Monte/Mann Packing and Braga Fresh on the water quality of their ag-wash water discharge to the city sewer system DEPARTMENTAL GOALS FOR FY 2022-2023
1. Continue working on system improvements outlined in the City’s Long-Term Wastewater Management Plan.
2. Design new aeration system for the WWTP on the Aeration Pilot Project.
3. Implement grease separator program with restaurants.
4. Implement Fat, Oils, and Grease Program with residential and commercial customers.
142
Packet Pg. 163 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
5. Launch Pretreatment Program based on current City Ordinances and new requirements. This includes outreach with the ag-processing facilities in the Industrial Business Park.
6. Over next three fiscal years, replace the Supervisory Control Access and Data Acquisition (SCADA) System.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents a significant increase of $11.1 million in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Revenues
Revenues are anticipated from the expected State Water Revolving loan funds for the Wastewater Treatment Plant expansion project.
Estimated Fund Balance
The year-end fund balance is estimated to be $3,393,000 as of June 30, 2022, which is more than sufficient to cover the funds Net Cost.
Personnel
There are no personnel costs related to this budget.
Services and Supplies
Services and supplies reflect contractual services to continue the development and construction process for the separate Industrial WWTP and improve the existing WWTP.
Capital Projects/Fixed Assets
This Budget reflects a significant cost increase for the Wastewater Treatment Plant expansion project; however, it is anticipated that adjustments will be brought before the Council for considerations and approval during the fiscal year to begin the first phase of the planned increase needed for the Wastewater Treatment Plant.
MAJOR POLICY CONSIDERATIONS
There are major policy considerations related to the Wastewater Treatment Facility expanded capacity needs. It is anticipated that significant expansion and improvement project recommendations will be brought to your Council during the fiscal year. 143
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Circulation System Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 235
DEPARTMENTAL MISSION
This impact fund is administered to provide transportation system improvements needed for orderly growth in Gonzales, in an efficient and effective manner.
DEPARTMENTAL PROGRAMS
• This fund is used to plan and implement street system improvements necessary to accommodate growth of the City.
• This fund assesses and collects proper fees to fund needed transportation improvements for planned growth.
ACCOMPLISHMENTS FOR FY 2021-2022
• Collected approved fees for system improvements.
• Continued directing vehicles and pedestrians at the Fifth Street Bridge during the morning commute.
• Continue coordination with Caltrans District 5 staff on improvements to the freeway interchanges based on the Circulation Master Plan for the new growth area needed for the Supplemental Environmental Impact Report (SEIR) and future Specific Plans.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to develop transportation improvements.
• Continue to guide and provide input on the SEIR and Specific Plans.
FY 2023-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $2,340 or 25% in expenditures, and an increase of $2,340 or 4.3% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is unchanged.
Revenues
Revenues are very conservative but are likely to be higher because of expected development.
145
Packet Pg. 166 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Estimated Fund Balance
The year-end Fund Balance is estimated to be $212,400 of June 30, 2022, which is more than sufficient to cover the Fund’s Net Cost.
Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
Funding has been set aside to continue developing improvements for the City’s street infrastructure.
Capital Projects/Fixed Assets
No capital projects/fixed assets are reflected in this budget. Future developments will be presented to the Council for consideration and approval as needed.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations in this fund at this time. 146
Packet Pg. 167 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 147
Packet Pg. 168
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Water Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 240
DEPARTMENTAL MISSION
This impact fund is administered to provide improvements to the city water system to support planned and permitted development projects in Gonzales.
DEPARTMENTAL PROGRAMS
This fund is used for improvements to the water system needed to accommodate growth in Gonzales.
ACCOMPLISHMENTS FOR FY 2021-2022
• Received State permit to operate new City Well 7.
• Field mapped water facilities and inputted into the city’s Geographic Information System (GIS)
DEPARTMENTAL GOALS FOR FY 2022-2023
Complete and bring online Well 7 after instrumentation and controls are finished FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $871,000 as of June 30, 2022, which is sufficient to cover the Fund’s Net Cost.
Revenues
Revenues are anticipated from development. Conservative estimates are used in the budget process.
Personnel
There are no personnel costs reflected in this budget.
148
Packet Pg. 169 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
This budget reflects funds to further develop water system modeling for future system needs.
Capital Projects/Fixed Assets
Funding to has been left to cover any unexpected system projects.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in the budget. 149
Packet Pg. 170 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 150
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Public Facilities Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 241
DEPARTMENTAL MISSION
This Impact Fund is administered to provide public facilities required by planned growth in Gonzales.
DEPARTMENTAL PROGRAMS
This fund is used to track expenditures for improvements to City general facilities impacted and/or needed, as a result of development, and/or growth.
ACCOMPLISHMENTS FOR FY 2021-2022
• Continued development of the Community Center Complex Project. • Via an exhaustive Request for Proposals (RFP) process, selected the three Design Build Entity Teams.
• City Council after receiving a lot of community input, approved the final design criteria for the Community Center Complex Project.
• Developed the financial strategy for the Community Center Complex Project.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Solidify the funding for the Community Center Complex Project. • Award the construction contract to the DBE for the Community Center Complex Project and begin construction.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents no change in expenditures and revenues when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $85,500 as of June 30, 2022, which is more than sufficient to offset the fund’s net cost.
Revenues
This budget reflects revenues expected from development. 151
Packet Pg. 172 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
This budget will be utilized to reflect the funds to plan for improved public facilities as growth occurs, primarily the Community Center Complex Project.
Capital Projects/Fixed Assets
There are no capital improvements presented in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 152
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Public Uses Impact Fund
Budget Narrative for FY 2022-2023
Budget Fund 242
DEPARTMENTAL MISSION
This impact fund is administered to provide public uses required by planned growth in Gonzales, in an efficient and effective manner.
DEPARTMENTAL PROGRAMS
This Fund is used to track expenditures for improvements or construction of the Community Center or other community facilities impacted, and/or needed as a result of development, and/or growth.
ACCOMPLISHMENTS FOR FY 2021-2022
• Continued development of the Community Center Complex Project. • Via an exhaustive Request for Proposals (RFP) process, selected the three Design Build Entity Teams.
• City Council after receiving a lot of community input, approved the final design criteria for the Community Center Complex Project.
• Developed the financial strategy for the Community Center Complex Project.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to collect impact funds.
• Continue to work with community and other partners as appropriate to continue development of the Community Center Complex Project, and move it to the construction phase.
• Continue to work with and support the Gonzales Unified School District on constructing a much needed second Elementary School.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents a decrease of ($5,000) or (50%) in expenditures and no change in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Net Cost is decreased by ($5,000).
Estimated Fund Balance
The year-end Fund Balance is estimated to be $5,250 as of June 30, 2022, which is more than sufficient to cover the fund’s net cost.
154
Packet Pg. 175 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
This budget reflects minor interest revenues.
Expenditures
The budget reflects a small appropriation to cover minor expenditures if needed.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations in this fund.
155
Packet Pg. 176 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 156
Packet Pg. 177
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Storm Drainage Facilities Impact Fee
Budget Narrative for FY 2022-2023
Budget Fund 245
DEPARTMENTAL MISSION
This impact fund is administered to provide storm drainage facilities for planned growth in Gonzales in an efficient and effective manner.
DEPARTMENTAL PROGRAMS
This fund is used to improve the stormwater drainage systems, necessary to accommodate growth within the City.
ACCOMPLISHMENTS FOR FY 2021-2022
• Updated stormwater impact fees
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue collection of appropriate stormwater drainage facilities impact funds. • Continue implementing the stormwater permit.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents no change in expenditures, and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $42,000 as of June 30, 2022.
Revenues
Minimal revenues are anticipated from development.
Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
This budget reflects some funding to assist in funding long-term growth needs. 157
Packet Pg. 178 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Capital Projects/Fixed Assets
There are no capital projects/fixed assets reflected in this budget.
MAJOR POLICY CONSIDERATIONS
Consideration of developing a Master Drainage Plan for the neighborhoods west of US101 with a focus on Old Town and Alta Street.
158
Packet Pg. 179 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 159
Packet Pg. 180
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Park Impact
Budget Narrative for FY 2022-2023
Budget Fund 250
DEPARTMENTAL MISSION
This impact fund is administered to improve and expand the city’s Park System.
DEPARTMENTAL PROGRAMS
• This fund collects approved fees from development projects. • This fund is used to finance park improvement projects required for planned growth.
ACCOMPLISHMENTS FOR FY 2021-2022
• There was no activity in this fund for this fiscal year.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Install Phase Two improvements at Skate Park using monies from Proposition 68 Park Bond Funds
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget.
Revenues
The revenues reflected is $170,000 in grant funds from Proposition 68 Park Bond Funds.
Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
The budget reflects no services and supplies.
Capital Projects/Fixed Assets
The budget reflects capital outlay improvements of $170,000 to complete the Phase Two of the Skatepark.
160
Packet Pg. 181 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
MAJOR POLICY CONSIDERATIONS
In the future, when funding is identified, completing a “Park Master Plan” would be valuable to coordinate future parks and open space.
The next expected revenue to this fund will occur when the next housing project materializes.
161
Packet Pg. 182 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 162
Packet Pg. 183
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Intersection Improvement Fund
Budget Narrative for FY 2021-2022
Budget Fund 260
DEPARTMENTAL MISSION
This impact fund is administered to provide improvement projects needed for growth around intersection improvements in an efficient and effective manner. This fund was set up to fund the future improvements on Fifth Street at US 101.
DEPARTMENTAL PROGRAMS
• Traffic intersection improvements.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained the funds for the future intersection improvements on Fifth Street. • Public Works staff continued directing vehicles and pedestrians at the on/off ramps during the morning school hours until COVID necessitated “shelter in place” and remote learning for school children.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to collect fair share of improvement costs from approved development projects for improvements on Fifth Street.
• Explore new ways to improve vehicle and pedestrian movements across the Fifth Street Bridge.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2021 Recommended Budget represents no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is unchanged.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $376,400 as of June 30, 2022, which is enough to cover this Fund’s Net Cost.
Revenues
Revenues reflected in the budget are interest earnings. 163
Packet Pg. 184 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
There are no personnel costs reflected in this budget.
Services and Supplies
This area includes a set aside for planning and engineering to further development improvements to the traffic flow on the Fifth Street Bridge.
Capital Projects/Fixed Assets
This area includes a set aside for projects that may be developed and brought forth to the City Council for consideration and approval.
MAJOR POLICY CONSIDERATIONS
As the City grows within the Sphere of Influence area, the Fifth Street Bridge will experience more traffic. As a result, these developments will be responsible for improvements in traffic flow and making improvements to the north and south interchanges.
164
Packet Pg. 185 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 165
Packet Pg. 186
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) California Breeze Parks and Open Space
Maintenance Assessment Districts Phases I, II, & III
Budget Narrative for FY 2022-2023
Budget Fund 270
DEPARTMENTAL MISSION
These Assessment Districts fund the maintenance of the public landscaped areas and Meyer Park in the California Breeze subdivision.
DEPARTMENTAL PROGRAMS
• Maintain Meyer Park.
• Maintain street landscaping in the California Breeze Subdivision. • Maintain drainage ponds.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained Meyer Park.
• Maintained street landscaping in the California Breeze Subdivision. • Maintained storm water detention ponds.
• Improved landscape maintenance.
FUND GOALS FOR FY 2022-2023
• Continue to maintain Meyer Park.
• Replace some of the play equipment.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents a decrease of ($1,408) or (1.3%) in expenditures and no change in revenues, when compared to the FY 2021-2022 Approved Budget.
As a result, the Requested Net Cost is decreased by ($1,408).
Revenues
The estimate is based on prior year actuals.
Personnel
This fund’s budget pays for contract landscape maintenance services and Public Works staff’s time spent maintaining landscaped areas in the California Breeze Subdivision. 166
Packet Pg. 187 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
This category reflects the necessary items to provide required maintenance to the district’s facilities. In addition, it funds the landscape maintenance contract.
Capital Projects/Fixed Assets
The Budget reflects no capital projects or fixed assets.
MAJOR POLICY CONSIDERATIONS
The turf and irrigation system at Meyer Park will need replacement in the future as funds accrue. 167
Packet Pg. 188 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 168
Packet Pg. 189
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 169
Packet Pg. 190
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) California Breeze Benefit Assessment Districts
Budget Narrative for FY 2022-2023
Budget Fund 280-290-300
DEPARTMENTAL MISSION
These Assessment Districts fund the maintenance efforts for certain public improvements in the California Breeze Subdivision. The streets, streetlights, drainage pond, and storm drains are maintained in an efficient manner for the benefit of the residents of the subdivision. In FY 2021- 2022, in order to simplify the administration and reporting of these funds, they were consolidated in Fund 280.
DEPARTMENTAL PROGRAMS
• Maintain streets, street lighting, sweeping, striping, and signage in the California Breeze Subdivision.
• Maintain the stormwater drainage system in the California Breeze Subdivision.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained streetlights.
• Continued street sweeping in the California Breeze Subdivision. • Maintained the stormwater drainage system in the California Breeze Subdivision.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Several streets will be included in the upcoming Slurry Seal Project • Maintain streets of the California Breeze Subdivision in an efficient and cost-effective manner within the approved budget.
• Stripe streets as needed.
• Replace street signs as needed.
• Maintain street sweeping program.
FY 2022-2023 RECOMMENDED BUDGET
FUND 280-290-300 - California Breeze Phase I, II, and III This consolidated fund for the FY 2022-2023 Recommended Budget represents essentially no changes in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget.
As a result, the Requested Net Cost is unchanged.
170
Packet Pg. 191 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Estimated Fund Balance
The year-end Fund Balances estimate for all three funds combined is $185,500 as of June 30, 2022, which is more than sufficient to offset the Fund’s Net cost.
Revenues
Revenues, which are special assessments, are projected to decrease slightly.
Personnel
These budgets pay for Public Works Department staff that maintains the districts’ assets.
Services and Supplies
These budgets pay for streetlights and maintenance supplies required to provide the best public streets, and drainage to meet the needs of area residents. In addition, it reflects:
• Clearing and dredging the percolation pond.
• This fund’s share of the Stormwater Plan.
• A proactive Street Sign Replacement Program.
• This Fund’s share of the implementation of the pavement management plan.
Capital Projects/Fixed Assets
There is no capital outlay reflected in these budgets.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by these three districts, are intended to minimize the maintenance financial obligations generated by the development of this subdivision on the City’s General Fund. The street repair funds are accumulated for large street repairs. All three districts will fund road repairs and striping as funds become available. 171
Packet Pg. 192 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 172
Packet Pg. 193
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Canyon Creek Parks & Open Space
Maintenance Assessment Districts Phase I, II, & III
Budget Narrative for FY 2022-2023
Budget Fund 302
DEPARTMENTAL MISSION
These Assessment Districts are administered to provide maintenance for parks and open spaces in the Canyon Creek Subdivision.
DEPARTMENTAL PROGRAMS
• Maintain Canyon Creek Park and the Tot Lot Park.
• Maintain street landscaping in the Canyon Creek Subdivision. • Maintain storm water retention basin.
• Manage slough clearing at Canyon Creek Park.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained Canyon Creek parks.
• Maintained street landscaping in the Canyon Creek Subdivision. • Maintained drainage pond.
• Coordinated slough clearing with adjacent farming operations. • Contracted landscape maintenance.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to maintain Canyon Creek parks so they can be used in the most efficient manner possible.
• Monitor contract landscaping maintenance.
• Continue to maintain drainage through the Canyon Creek Park area through coordinated efforts with adjacent property owners.
• Engage Landscape Architect to begin conceptual design of Phase 2 of the Canyon Creek Park
FY 2022-2023 RECOMMENDED BUDGET
The Fund’s FY 2022-2023 Recommended Budget represents a slight increase of $1,122 or 2.5% in expenditures, and no change in revenues, when compared to the FY 2021- 2022 Approved Budget. As a result, the Requested Net Cost decreased by ($1,122). 173
Packet Pg. 194 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Estimated Fund Balance
The year-end fund balance for this fund is estimated to be $599,000 as of June 30, 2022.
Revenues
Revenues, which are special assessments (paid for as part of the property tax bill), are based on prior actuals.
Personnel
This fund’s budget includes the landscape maintenance contract and Public Works staff for efforts spent maintaining areas of the Canyon Creek Subdivision.
Services and Supplies
This category reflects the necessary items to provide required maintenance to the district’s facilities. The landscape maintenance contract is included in this line item.
Capital Projects/Fixed Assets
The budget does not reflect any capital projects at this time.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by these districts, are intended to minimize the maintenance financial obligations generated by the development of this subdivision on the City’s General Fund. With time, it is hoped that these funds will be used to match other sources to build the full park.
174
Packet Pg. 195 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 175
Packet Pg. 196
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Canyon Creek Benefit Assessment Districts Phase I, II, & III Budget Narrative for FY 2022-2023
Budget Fund 304-306-308
DEPARTMENTAL MISSION
These Assessment Districts are administered to maintain certain improvements in the Canyon Creek subdivision. The streets, streetlights, drainage pond, and stormwater drains are maintained in an efficient manner possible for the benefit of the residents of the subdivision. In FY 2021-2022, in order to simplify the administration and reporting of these funds, they were all consolidated into Fund 304.
DEPARTMENTAL PROGRAMS
• Maintain street lighting, striping, and signage in the Canyon Creek Subdivision. • Maintain the Stormwater Drainage System in the Canyon Creek Subdivision.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained streetlights.
• Maintained the Stormwater Drainage System.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Maintain streets by repairing potholes, restriping, and replacing signs as needed. • Provide graffiti abatement quickly.
FY 2022-2023 RECOMMENDED BUDGET
FUND 304-306-308 - Canyon Creek Phase I, II, and III
This consolidated fund for the FY 2022-2023 Recommended Budget represents no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is decreased slightly.
Estimated Fund Balance
The year-end Fund Balances are estimated to be $956,500 for the consolidated Funds as of June 30, 2022.
Revenues
Revenues, which are special assessments, are based on prior year activity.
Personnel
These funds pay for Public Works staff that supports the districts’ assets. 176
Packet Pg. 197 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
This Fund pays for the maintenance efforts and supplies related to the upkeep of the:
• Gonzales Slough.
• Canyon Creek storm drain lines.
• Canyon Creek Storm Water Retention Pond.
• Roadways including streetlights, striping and signage.
Capital Projects/Fixed Assets
There is no capital outlay included in these budgets this fiscal year.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by these three districts, are intended to minimize the maintenance financial obligations generated by the development of this subdivision on the City’s general fund.
177
Packet Pg. 198 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 178
Packet Pg. 199
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Cipriani Estates Parks & Open Space Maintenance
Assessment District
Budget Narrative for FY 2022-2023
Budget Fund 310
DEPARTMENTAL MISSION
This Assessment District is administered to provide maintenance and replacement of equipment for Venice Way Park and associated open spaces in the Cipriani Estates Subdivision.
DEPARTMENTAL PROGRAMS
• Maintain Venice Way Park.
• Maintain entryway landscaping.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained Venice Way Park.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue the maintenance of the Venice Way Park.
• Add additional picnic equipment.
FY 2022-2023 RECOMMENDED BUDGET
The Fund’s FY 2022-2023 Recommended Budget represents no real change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased slightly.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $219,900 as of June 30, 2022.
Revenues
Revenues, which are special assessments, have essentially remained constant.
Personnel
This fund’s budget compensates the Public Works Department for time spent maintaining areas of the Cipriani Estates Subdivision.
179
Packet Pg. 200 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
This category reflects the necessary items to provide required maintenance to the district’s facilities and a landscape maintenance contract.
Capital Projects/Fixed Assets
There are no capital projects or fixed assets reflected. It is anticipated that during the fiscal year, a play structure and/or shade structure, along with added table and barbecue pit, will be brought to the Council for approval, at which time, the budget will be amended.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations for this district at this time. 180
Packet Pg. 201 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 181
Packet Pg. 202
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Cipriani Estates Benefit Assessment District
Budget Narrative for FY 2022-2023
Budget Fund 312
DEPARTMENTAL MISSION
This assessment district is administered to provide maintenance and replacement of certain public improvements in the Cipriani Estates subdivision. The streets, streetlights, and storm drains will be maintained for the benefit of the residents of the subdivision in an efficient manner.
DEPARTMENTAL PROGRAMS
• Maintain streets, lighting, striping, and signage in the Cipriani Estates Subdivision. • Maintain the Stormwater Drainage System in the Cipriani Estates Subdivision.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained streetlights.
• Maintained the Storm Drainage System.
• Construction documents were prepared for the upcoming Slurry Seal Project and all streets in the Cipriani Estates subdivision will be included in the contract DEPARTMENTAL GOALS FOR FY 2022-2023
• All streets in the Cipriani Estates subdivision will be included in the Slurry Seal contract • Maintain streets in an efficient and effective manner. • Repair potholes as needed.
• Restripe streets as needed.
• Fund streetlight utilities.
• Replace street signs as needed.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $4,586 or 18% in expenditures, and no change in revenues, when compared to the FY 2021-2022 Approved Budget.
As a result, the Requested Net Cost is increased by $4,586.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $517,800 as of June 30, 2022. 182
Packet Pg. 203 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
Revenues, which are special assessments, have been constant.
Personnel
This budget pays for Public Works Department staff that maintains the district’s assets.
Services and Supplies
This budget pays for maintenance supplies for streets and drainage to meet the needs of the area.
In addition, this budget includes:
• Funds to maintain and improve the storm drain area.
• Funding a portion of a Stormwater Plan and a Master Plan for street maintenance. • Maintaining the electric gate for emergency access as needed. • Restriping and replacing signs as needed.
Capital Projects/Fixed Assets
There is no capital project included in this budget this fiscal year.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by this district is intended to minimize the maintenance financial obligations generated by the development of this subdivision on the City’s General Fund.
There are no major policy considerations for this district. 183
Packet Pg. 204 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 184
Packet Pg. 205
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Industrial Business Park Landscape District
Budget Narrative for FY 2022-2023
Budget Fund 314
DEPARTMENTAL MISSION
This Assessment District funds the maintenance of the landscaped areas within the public rightof-way in the Gonzales Agriculture Industrial Business Park.
DEPARTMENTAL PROGRAMS
• Maintain the Gonzales Industrial Park public right-of-way landscaping. • Maintain entrance ways to the Gonzales Industrial Business Park. • Maintain the Percolation Pond at the west end of Katherine Street.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained the stormwater percolation pond.
• Maintained street landscaping.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Maintain the stormwater percolation pond.
• Improve street landscaping maintenance.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an overall increase of $448 or
1.2% in expenditures, and $8,000 or (35%) in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is decreased by ($7,552).
Estimated Fund Balance
The year-end Fund Balance is estimated to be $77,400 as of June 30, 2022, which is sufficient to offset this Fund’s Net Cost.
Revenues
Revenues have been adjusted to reflect anticipated assessments based on prior year actuals.
Personnel
This fund’s budget compensates the Public Works Department for time spent maintaining the landscaped areas along the roadways within the Industrial Park. 185
Packet Pg. 206 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
This category reflects the necessary items to provide required maintenance to the district’s facilities and funds the landscape maintenance contract.
Capital Projects/Fixed Assets
There is no capital project included in this budget or this fiscal year.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by this district, are intended to minimize the maintenance financial obligations generated by development of the Industrial Park on the City’s General Fund.
186
Packet Pg. 207 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 187
Packet Pg. 208
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Industrial Business Park Benefit Assessment District Budget Narrative for FY 2022-2023
Budget Fund 316
DEPARTMENTAL FUND MISSION
This Assessment District funds the maintenance of the street lighting, striping, and signage in the Industrial Business Park. The streets, streetlights, roadway signs, and storm drains are maintained for the benefit of the properties in the Industrial Park.
DEPARTMENTAL PROGRAMS
• Maintain roadway pavement, street lighting, striping, and signage for the Industrial Park based on available funding.
• Maintain the stormwater drainage system and regional detention basin in the Industrial Park.
ACCOMPLISHMENTS FOR FY 2021-2022
• Maintained street lighting, striping, and signage and the storm drainage system in the Industrial Park.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue maintenance of the storm drainage system in the Industrial Park. • Maintain the streets, streetlights, and signage.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents a slight increase of $1,500 or 2% in expenditures, and no change in revenues, when compared to the FY 2021-2022 Approved Budget.
As a result, the Requested Net Cost is increased by $1,500.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $212,000 as of June 30, 2022.
Revenues
Revenues have been adjusted to reflect anticipated assessments. For several years, the assessments were reduced because the fund had accumulated a decent balance; however, assessments are being increased based on the maintenance budget within the established range, to take care of improvements and maintenance needs.
188
Packet Pg. 209 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
This budget reflects a transfer to the General Fund to offset maintenance and administration support.
Services and Supplies
This budget includes funding for street and storm water retention basin maintenance.
Capital Projects/Fixed Assets
There is no specific capital project funded this year. The $10,000 is set aside for capital projects that may arise during the year.
MAJOR POLICY CONSIDERATIONS
The property tax assessments generated by this district are intended to minimize the maintenance financial obligations, generated by development of the Industrial Park on the City’s General Fund. 189
Packet Pg. 210 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 190
Packet Pg. 211
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Successor Agency
Budget Narrative for FY 2022-2023
Budget Fund 426
DEPARTMENTAL MISSION
This fund, which is administered by the City Manager’s Office, who serves as the Executive Director of the Gonzales Successor Agency, was set up to track expenditures and revenues for the Agency. As part of the elimination of Redevelopment (RDA), the State established a different process and organization structure to account for the tax increment. This process established a Successor Agency, Oversight Board, and a separate fund that would be used to reflect all tax increment proceeds.
ACCOMPLISHMENTS FOR FY 2021-2022
• The old RDA, now as the Successor Agency, continues to generate significant tax increment to both the City and other entities like the Gonzales Unified School District, Hartnell Junior College, and the County of Monterey. • As required by the State, successfully transitioned to the County Successor Agency as the overseer of this function; which was formally under the purview of the Gonzales Successor Agency.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to move towards submitting a last best and final Recognized Obligation Payment Schedule (ROPS) to DOF, which would essentially result in completing the dissolution process of the former Gonzales RDA.
• Continue to manage and oversee all the functions of the Gonzales Successor Agency.
FY 2022-2023 RECOMMENDED BUDGET
The Fund’s FY 2022-2023 Recommended Budget represents an increase of $11,566 or .9% in expenditures, and a slight increase in revenues, when compared to the FY 2021- 20221 Approved Budget. As a result, the Requested Net Cost is increased by $10,559.
Revenues
The budget reflects the revenue estimates of tax increment that will be received to cover the recognized obligations (ROPS) of the Successor Agency. What continues to be noteworthy is the increase in available tax increment revenues that continues to be driven by the growth in the Gonzales Agricultural Industrial Business Park. 191
Packet Pg. 212 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Expenditures
The budget includes the debt service expenses of the former RDA and the administrative costs of the Successor Agency.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget. 192
Packet Pg. 213 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 193
Packet Pg. 214
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) 194
Packet Pg. 215
Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Successor Agency - Housing
Budget Narrative for FY 2022-2023
Budget Fund 427
DEPARTMENTAL MISSION
This fund was set up to track expenditures and revenues for the Gonzales Successor Agency – Housing Fund. As part of the elimination of Redevelopment, the State established a different process and organization structure to account for the tax increment. This process established a Successor Agency, Oversight Board, and a separate fund that would be used to reflect all housing proceeds.
ACCOMPLISHMENTS FOR FY 2021-2022
• Resources from this fund where combined with the Community Development Fund to purchase the Marchetti property on South Alta Street for development of a much-needed senior housing project.
• Entered into an agreement with CHISPA to build the senior housing project on South Alta.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Work with housing agencies, developers, property owners, and non-profits to identify opportunities to improve farmworker and affordable housing for the community.
FY 2022-2023 RECOMMENDED BUDGET
The Fund’s FY 2022-2023 Recommended Budget represent a decrease in expenditures of ($10,000) or (100%), and no change in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost reflects a decrease by ($10,000).
Revenues
The budget reflects the revenue estimates from housing rehabilitation loans being repaid back. In addition, while it doesn’t reflect funds from the loan provided to the Housing Authority of Monterey County as part of the Fanoe Housing project, due to lingering COVID-19 impacts; if they do materialize, the budget will be brought before the Council to adjust it accordingly.
Expenditures
No expenditures are anticipated for this fund.
195
Packet Pg. 216 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations in this fund at this time. 196
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Capital Infrastructure Fund
Budget Narrative for FY 2022-2023
Budget Fund 460
DEPARTMENTAL MISSION
This fund is administered by the City Manager’s Office whose Mission is to support the Vision and Mission of the City by providing professional leadership, develop innovative approaches, and creative partnerships in the management of the City and execution of City Council policies. This will be done by always holding to the highest ideals of public service and ethics.
DEPARTMENTAL PROGRAMS
This fund is used to pool resources from which the City may draw to finance local public capital improvements.
ACCOMPLISHMENTS FOR FY 2021-2022
● Continued active development and use of the City’s Economic Development effort. This included the website, marketing, and overall outreach.
● Successfully worked with Armanasco Public Relations Inc., that resulted in many positive articles and media contacts about the transformational work underway in the City.
DEPARTMENTAL GOALS FOR FY 2022-2023
● Continue to search for funding for critical infrastructure projects. ● Continue to identify, develop, expand, and promote economic business and grant opportunities.
FY 2022-2023 RECOMMENDED BUDGET
The Department’s FY 2022-2023 Recommended Budget represents no change in expenditures, and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is unchanged.
Revenues
The decrease in revenues is primarily due to the anticipated payment for a City loan provided to the Housing Authority of Monterey County that was used to build the Fanoe Apartments.
Personnel
There are no personnel costs allocated in this fund.
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Packet Pg. 219 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
There are no services and supplies reflected in this budget at this time. However, this budget reflects resources for continued enhancement to the City’s economic development efforts; help fund the work underway to improve and maintain the website current; and possibly retain professional help (consultants) to provide service to enhance the City’s revenue base, economic development, and/or infrastructure.
Capital Projects/Fixed Assets
There are no capital projects reflected in this fund.
MAJOR POLICY CONSIDERATIONS
The major policy consideration is that this fund provided resources to complete the Alta Street Rehabilitation Project as loan that will be repaid back from future TAMC Regional Transportation Tax funds.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Water Enterprise Fund
Budget Narrative for FY 2022-2023
Budget Fund 520
DEPARTMENTAL MISSION
This Water Enterprise Fund is for the operation and maintenance of the city’s water system (wells, pipelines, and water storage tanks). The water system is operated in an efficient manner in compliance with state regulations.
DEPARTMENTAL PROGRAMS
• Operate the City’s water system.
• Maintain and repair the water wells, pipelines, and water storage tanks. • Monitor and report on the quality of the water system. • Operate the Supervisory Control Access and Data Acquisition (SCADA) system to monitor and operate the water system.
ACCOMPLISHMENTS FOR FY 2021-2022
• Complied with regulatory water quality sampling and reporting requirements. • Produced and distributed consumer confidence reports. • Managed and maintained Gonzales’ municipal water and distribution system. • Maintained the cross-connection control program.
• Assisted consumers with leak detection as requested.
• Provided fire flow data to interested property owners upon request. • Replaced manually read meters with radio read meters to increase accuracy and efficiency. • Began reviewing and assessing the current Supervisory Control Access and Data Acquisition (SCADA) Computer Control Program to prepare to replace it. • Modified and updated the utility bill paying and disconnect process to align with the new state requirements.
• Completed Well #7 Project.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Maintain the water system in compliance with State, County, and regional regulations. • Provide treated potable water to all customers of the city without interruption. • Maintain consumer confidence reporting system.
• Maintain trained staff as water treatment and distribution operators. • Bring Well #7 fully on line.
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Packet Pg. 222 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an overall increase of $172,229 or 68% in expenditures, and $86,887 or 4.2% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost is increased by $82,342.
Estimated Fund Balance
The year-end Fund Balance is estimated to be $3,516,000 as of June 30, 2022.
Revenues
Revenues are projected to increase based on current and expected activity.
Personnel
The Public Works Department provides the personnel requirements for the Water Enterprise Fund.
Services and Supplies
This category includes the entire spectrum of office and operational supplies. It also reflects utilities for wells, and a variety of contract services for water quality monitoring, along with the debt service contract for the water tanks.
Capital Projects/Fixed Assets
The budget reflects a set aside in the event an anticipated repair or update occurs.
Transfers Out
This category reflects a transfer to support the debt service for both Solar and Microgrid projects
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget at this time.
There will come a time in the near future that something will need to be done to improve fire flow in the industrial park. Planning has begun and several activities are being evaluated. 202
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Sewer Enterprise Fund
Budget Narrative for FY 2022-2023
Budget Fund 530
DEPARTMENTAL MISSION
The Sewer Enterprise Fund supports the operation and maintenance of the city’s sewer system in a cost-effective manner.
DEPARTMENTAL PROGRAMS
• Operate and maintain the City’s wastewater system in compliance with State, County, and Regional Water Board Regulations.
• Operate, repair, and maintain the Wastewater Treatment Plant. • Maintain sewer pipelines and associated manholes
• Maintain and operate five lift stations.
• Maintain a fats, oil, and grease program to protect infrastructure from unnecessary clogging. • Develop and maintain a computer control system.
• Maintain spill response capability.
• Plan for improvements to the existing system.
• Pretreatment Program for industrial dischargers
ACCOMPLISHMENTS FOR FY 2021-2022
• The wastewater system collected and treated approximately 1.1 million gallons of wastewater daily.
• Managed and maintained five sewer lift stations.
• Submitted quarterly and annual monitoring reports to the County Dept of Health and the Regional Board
• Completed the final design and CEQA document for the $25M Industrial Wastewater Treatment System.
• Submitted funding application for $25M Industrial Wastewater Treatment System Project to the State Water Resources Control Board for a State Revolving Fund loan. • Began developing the conveyance improvements to serve development projects in the City’s Sphere of Influence, east of US101.
• Initiated a Pretreatment Program for industrial dischargers DEPARTMENTAL GOALS FOR FY 2022-2023
• Meet regulatory sampling requirements in a cost-effective and efficient manner. • Provide training to staff to have them certified as operators in training (OIT), Grade I, and Grade II Operators.
• Secure funding for the $25M Industrial Wastewater Treatment System Project and issue the project for public bid.
• Complete a Pretreatment Program for industrial dischargers 205
Packet Pg. 226 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $150,883 or 9.9% in expenditures, and $69,500 or 4.5% in revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the requested net cost is increased by $81,383.
Fund Balance
The Fund Balance is estimated to be $296,000 as of June 30, 2022.
Revenues
Revenues are projected to increase based on existing use and activity.
Personnel
The Public Works Department provides the personnel requirements for the Sewer Enterprise programs.
Services and Supplies
This supplies and services portion of the budget is to meet the operational needs of the sewer system.
The budget also reflects an appropriation for emergency repairs, along with the sewer fund’s share of the payment for the financing used for the construction of the water tanks, and sewer expansion project.
Capital Projects/Fixed Assets/Land
The budget reflects capital equipment that may be needed during the year, and further improvements at the Wastewater Treatment Plant, and this fund’s share of the annual lease payments for associated city vehicles.
Transfers Out
The budget reflects transfers out to cover this fund’s allocated portion of the Solar Projects, Microgrid, and other activities.
MAJOR POLICY CONSIDERATIONS
Work continues on increasing the capacity of the Wastewater Treatment Plant, which will be done in the short term by building an Industrial Wastewater Treatment System and maximizing the efficiency of the existing plant.
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Garbage Enterprise Fund
Budget Narrative for FY 2022-2023
Budget Fund 540
DEPARTMENTAL MISSION
This Garbage Enterprise Fund is for the Solid Waste franchise agreement with the Salinas Valley Solid Waste Authority.
DEPARTMENTAL PROGRAMS
• Solid waste collection
• Street sweeping
• Gonzales Grows Green initiative
• Stormwater permit compliance
ACCOMPLISHMENTS FOR FY 2021-2022
• Managed approximately 1,800 solid waste customer accounts. • Monitored solid waste collections.
• Used a consultant for regulatory compliance and expanded reduce, reuse, and recycling efforts.
• Met the City’s AB 939 source reduction, reuse, and recycling requirements. • Kicked off city-wide organic waste collection as required under SB 1383 • Worked with the SVSWA to improve the solid waste collection and obtain better data.
This includes participating in quarterly franchise meetings. • The Gonzales Grows Green initiative continued to work with several businesses to reduce waste.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Meet regulatory requirements.
• Provide collection services to residents and businesses in Gonzales. • Conduct Community Cleanup events.
• Monitor and assist with customer complaints.
• Monitor franchise contract compliance.
• Continue and expand Gonzales Grows Green programs.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an overall increase of $36,415 or
2.6% in expenditures, and $39,763 or 2.9% revenues, when compared to the FY 2021-2022 approved budget. As a result, the Requested Net Cost has decreased to $0. 209
Packet Pg. 230 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Revenues
Revenues are projected based on existing activity. Fees are set by the hauler and landfill operator and are passed through to the community.
Personnel
This budget reflects the allocation of salaries for administrative staff that support these functions.
Services and Supplies
This budget includes office and operational supplies and funding for the contract with the Gonzales Grows Green Consultant. The Stormwater Program is funded from this account. The franchisee, landfill, and solid waste authority are funded by this account.
Capital Projects/Fixed Assets
There is no capital project anticipated for this fund at this time.
Transfers
Transfers are based on the level of activity.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this fund. However, as a member of the Salinas Valley Recycles, there may be some future policy considerations that will be brought before the Council for approval. For example, the Salinas Valley cities and possibly the County, will evaluate and study the benefits of consolidating waste/garbage service. 210
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Solar Project Fund
Budget Narrative for FY 2022-2023
Budget Fund 550
DEPARTMENTAL MISSION
This Fund is for the six solar systems that provide electrical power for the associated City facilities. Future alternative energy projects will be included in this fund.
DEPARTMENTAL PROGRAMS
• Pays finance charges for current solar systems.
• Tracks solar rebates and cost effectiveness of the solar systems. • Maintains the solar systems.
• Planning and financing efforts for alternative energy projects.
ACCOMPLISHMENTS FOR FY 2021-2022
• Executed new operations and maintenance agreement with Engie • Cleaned and maintained solar systems.
• Monitored effectiveness of the solar systems.
DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue to monitor funds used for the Solar Project and SCADA System. • Plan for next system improvements.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents no change in expenditures and revenues, when compared to the FY 2021-2022 Approved Budget. As a result, the Requested Net Cost remains unchanged.
Revenues
Revenues reflected in the past, have been transfers from the Sewer and Water Enterprise funds, and General Fund necessary to cover the payments for the existing systems.
Personnel
There are no personnel costs associated with this fund. 213
Packet Pg. 234 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Services and Supplies
Costs reflected in this budget are essentially scheduled maintenance and debt service on both Solar Projects.
Capital Projects/Fixed Assets
There are no planned projects included in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget at this time. 214
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Gonzales Electric Authority Fund
Budget Narrative for FY 2022-2023
Budget Fund 560
DEPARTMENTAL MISSION
This Fund is for the Microgrid Energy Project being developed by the Gonzales Electric Authority (GEA) for the Gonzales Agricultural Industrial Business Park (GAIBP).
DEPARTMENTAL PROGRAMS
The goal of this project is to provide sustainable, reliable, and carbon-free electrical energy for the GAIBP at a competitive rate compared to PGE. Overtime, this fund will reflect the revenues generated and expenditures necessary to operate the microgrid.
ACCOMPLISHMENTS FOR FY 2021-2022
• Executed an agreement with Sage Energy/NV5 for Program Management Services. • Held bi-weekly progress meetings with Sage Energy/NV5 staff • Coordinated with Concentric Power on various aspects of the Microgrid Project • Coordinated with outside counsel and the City Attorney on the Retail Service Agreement • Met with the initial customers and presented them with the details on the Retail Service Agreement
• Prepared draft Lease Agreement for Concentric Power’s use the city’s WWTP and IWTF DEPARTMENTAL GOALS FOR FY 2022-2023
• Continue coordinating the project with Sage Energy/NV5 and Concentric Power • Execute Lease Agreement for Concentric Power’s use the city’s WWTP and IWTF • Finalize the Retail Service Agreement
• Execute the Retail Service Agreement with the initial five customers • Complete the design, obtain permits, and begin construction of the microgrid.
FY 2022-2023 RECOMMENDED BUDGET
This Fund’s FY 2022-2023 Recommended Budget represents an increase of $150,000 or 149% in expenditures and revenues. As a result, the Requested Net Cost is zero.
Revenues
Revenues are reflected as transfers in from the Water and Sewer Enterprise Funds. 216
Packet Pg. 237 Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget) Personnel
There are no personnel costs associated with this fund.
Services and Supplies
The budget reflects expenditures for legal and expert consultant services for the microgrid.
Capital Projects/Fixed Assets
There are no planned projects included in this budget.
MAJOR POLICY CONSIDERATIONS
There are no major policy considerations reflected in this budget at this time. 217
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Attachment: Budget FY 2022-2023 (2449 : FY 2022-2023 City and Successor Agency Budget)