Healdsburg City Council
June 1, 2026

WHEREAS, pursuant to the provisions of Article XIII D, Section 6, of the California Constitution (“Proposition 218”), prior to extending, imposing or increasing water and wastewater rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to water and wastewater rates together with an explanation of:
(1) the amount of the proposed rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by a majority of the parcels subject to the modified rates (“majority protest”); and WHEREAS, notice of the public hearing to consider proposed adjustments to the water and wastewater rates was mailed to property owners of record and customers of record in accordance with Proposition 218; and
WHEREAS, on May 6, 2024, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and
WHEREAS, the Rate Study recommends transitioning the existing capital reserve policy to a rate stabilization policy, eliminating the earmarking of reserves for specific capital purposes, and instead utilizing the capital reserve to complete preemptive capital replacement and fund maintenance costs in a manner that stabilizes rates; and WHEREAS, the mailed notice of public hearing included a statement that there is a 120- day statute of limitations for challenging the water and wastewater rates should the proposed water or wastewater rates be adopted; and
WHEREAS, the water and wastewater rates are “exempt charges,” within the meaning of Section 1 of Article XIII C of the California Constitution and the proposed Taxpayer Protection and Government Accountability Act (Initiative No. 21-0042) because they are charges that are imposed in accordance with and subject to Article XIII D of the California Constitution; and

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF HEALDSBURG DOES ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct, and incorporated herein by reference and each is relied upon independently by the City Council for its adoption of the Ordinance.

Section 2. The City Council finds that the adoption of this Ordinance is not considered a project under Public Resources Code Section 21065 and California Environmental Quality Act (“CEQA”) Guidelines Section 15378 because the Ordinance does not have the potential for 280
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Ordinance No. 1240

resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, as the Ordinance creates government funding mechanisms which do not involve any commitment to any specific project. The Ordinance is also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per CEQA Guideline Section 15061(b)(3). No specific water or wastewater projects are associated with this Ordinance. The Ordinance is policy-oriented and would create a funding mechanism for the development of future water or wastewater facilities. When and if specific water or wastewater projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice.

Section 3. The procedures followed and the water and wastewater rates referenced herein are in compliance with the California Constitution Article XIII D and Government Code section 53755.

Section 4. The City Council adopts the water and wastewater rate schedules in Exhibit B attached hereto and incorporated herein by this reference. These rates shall supersede previously adopted water and wastewater rates, with the exception of previously adopted Water Shortage Rate Surcharges.

Section 5. The City Council approves and adopts the Rate Study attached hereto as Exhibit A, which sets forth the basis for the water and wastewater rates.

Section 6. The water and wastewater rates, set forth in Exhibit B, may be amended from time to time by ordinance or resolution of the City Council.

Section 7. The City Council approves and adopts a reserve target for both the Water and Wastewater enterprises at the amount of revenue needed to sustain a 90-day operating reserve plus an additional one-million dollars, for each enterprise, to be used as a rate stabilization reserve.

Section 8. If any provision, section, paragraph, sentence or word of this Ordinance, or the application thereof to any person or circumstance, is rendered or declared invalid by any court of competent jurisdiction, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance, and their application to other persons or circumstances, shall not be affected thereby and shall remain in full force and effect and, to that end, the provisions of this Ordinance are severable.

Section 9. This Ordinance shall become effective thirty days after the date of its adoption.

Section 10. The City Clerk is directed to cause this Ordinance to be published in the manner required by law.
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Ordinance No. 1240

I, RAINA ALLAN, City Clerk of the City of Healdsburg, do hereby certify that the foregoing is a full, true, and correct copy of Ordinance No. 1240 passed and adopted by the Healdsburg City Council on the 20th day ofMay 2024. 283
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CITY OF HEALDSBURG
RESOLUTION NO 50-2022

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEALDSBURG ADOPTING A NEW RESERVE POLICY FOR

THE CITY LIGHTING AND LANDSCAPING ASSESSMENT

DISTRICT AND RESCINDING THE PREVIOUS POLICY
ADOPTED BY RESOLUTION NO. 95-2009
WHEREAS, the City Council ordered the formation of the Assessment District on November 4, 1996 to levy and collect assessments pursuant to the Landscaping and Lighting Act of 1972; and
WHEREAS, the City Council annually levies and collects assessments within the Healdsburg Landscaping and Lighting Assessments District; and WHEREAS, on March 21, 2022, the City Council adopted a resolution appointing Coastland Civil Engineering as the Engineer of Work for the City of Healdsburg’s Fiscal year 2022-23 Lighting and Landscape Assessment District and directed the preparation and filing of the annual Engineer’s Report, including any changes, pursuant to Section 22620 of the California Streets and Highway Code; and
WHEREAS, in 2009, the City Council adopted Resolution No. 95-2009, which established a 75%-100% reserve target for the district; and
WHEREAS, California Street’s and Highway Code limits reserve amounts for Lighting and landscape assessment districts to estimated costs of maintenance and servicing from the beginning of the fiscal year to December 10th or whenever the City expects to receive it’s apportionment of special assessment tax collections form the county, whichever is later; and WHEREAS, based on existing law, City staff recommend updating the reserve target to be based on 50% of budgeted expenses; and
WHEREAS, the reserve level proposed is realistic and worthwhile for the purposes of providing stability of operations; and
WHEREAS, the City Council has reviewed the policy and desires to update the policy to better align with the City’s current fiscal position and budget priorities; and WHEREAS, the continued administrative actions do not constitute a project under California Environmental Quality Act (“CEQA”) guidelines and are therefore exempt from further environmental review.
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City of Healdsburg
General Fund Surplus Policy

1. PURPOSE
The purpose of this policy is to establish a framework for allocating unanticipated annual surplus in the General Fund. This policy establishes a framework for identifying a surplus and the categories of expenditures in which staff will recommend surplus funds be allocated. The policy institutionalizes prudent financial management practices by promoting long-term strategic thinking and defining boundaries for use of one-time funds.

2. BACKGROUND
The City adopts a biennial budget with the goal of balancing the cost of providing services with the amount of revenues received. These planned expenditures and revenues can be further classified as recurring or non-recurring. Recurring expenditures are those that are included in the budget each year to maintain current service levels. Recurring revenues are those that can be reasonably expected to continue every year with some degree of predictability (property taxes, for example). A structurally balanced budget supports financial sustainability for multiple years into the future by balancing recurring revenues with recurring expenses.

The amount of money available after subtracting the total amount of expenditures made from the total amount of revenues received is the fund balance. The City has adopted a general fund reserve policy that requires maintenance of an unrestricted fund balance equal to at least 30% of the annual operating expenditures. The purpose of the reserve policy is to mitigate risks that could disrupt City services. If unforeseen economic conditions result in a reduction of expected revenues or catastrophic events require exorbitant one-time expenses the reserve is available to continue supporting essential recurring expenditures.

In addition to the budget process, the City prepares a long-term forecasting model that provides the opportunity to plan for longer term needs outside of the typical two-year budget cycle. The forecast provides a mechanism to understand the impacts of volatility on recurring revenues like Transient Occupancy Tax and Sales Taxes as well as growth trends associated with pension costs and other recurring expenditures. The forecast model is an important tool for identifying funding shortfalls and understanding the impacts of additional contributions.

3. POLICY

3.1 Definition of Surplus
For this policy, any anticipated remaining fund balance in the general fund that exceeds the reserve by $250,000 is defined as surplus. The $250,000 excess allows for reasonable variances within the estimated closing figures.

3.2 Financial Analysis and Review
A budget is a financial plan. Prudent fiscal management practices require ongoing analysis and updating of the City budget. Staff analyze the Cities financial condition and bring updates to Council for review on a quarterly basis. During these reviews staff recommend adjustments to revenues and expenditures to align budgeted expectations with current trends and reduce or Resolution No. 13-2026
Exhibit A
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increase expenditures based on City needs and the overall fiscal health of the organization. After the close of the fiscal year, staff will review the available fund balance and determine if a surplus exists. If a surplus is present staff will propose additional budgetary appropriations to allocate the surplus consistent with this policy during the first quarter review of the subsequent fiscal year.

3.3 Allocation of Surplus
Identified surplus funds will only be allocated for use on non-recurring expenditures to maintain a structurally balanced budget. Allocations of surplus funds are meant to improve the long-term fiscal health and prosperity of the City. Surplus funds will not increase long-term operational costs or expand the scope of operations. City staff will present surplus funding options consistent with the following categories.
• Actions that reduce City debt or liabilities, including but not limited to reducing fund deficits, paying off internal or external loans, early repayment of bonds, and additional contributions to the City’s unfunded pension obligations (CalPERS UAL). • Contributions that result in investment returns or expand future revenue potential, including but not limited to contributions to the Pension Trust Fund, and Long-Range Planning Fund.
• Investments to repair, replace, or expand existing capital assets including but not limited to deferred building maintenance, vehicle replacements, streets and drainage infrastructure, water and sewer infrastructure.

The ultimate responsibility for determining the allocation of surplus funds, consistent with this policy, rests with the City Council. The third quarter fiscal review will include appropriation adjustments to accommodate the approved allocations, but no expenditures will be incurred until the closing of the fiscal year. Staff will report back to council at the next quarterly financial update if for any reason approved surplus expenditures are not completed.

3.6 Review of Surplus Policy
Maintaining a structurally balanced budget that promotes sustainability of essential services requires a long-term plan. The City will review this policy at a minimum biennially, concurrent with preparation of the budget, to determine if changes to this policy are necessary to ensure resources are being allocated to priorities pertinent in the current financial landscape.

Resolution No. 13-2026
Exhibit A
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CITY OF HEALDSBURG

HEALDSBURG PUBLIC FINANCING AUTHORITY

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF

HEALDSBURG

DEBT MANAGEMENT POLICY
Effective August 8, 2017
This Debt Management Policy (the “Debt Policy”) establishes the parameters within which debt may be issued and administered by the City of Healdsburg (the “City”), the Healdsburg Public Financing Authority, and the Successor Agency to the Redevelopment Agency of the City of Healdsburg (collectively, the “Covered Entities”). Additionally, these policies apply to debt issued by a Covered Entity on behalf of assessment, community facilities, or other special districts, and conduit-type financing by a Covered Entity for multifamily housing or industrial development projects.

The Debt Policy may be utilized by staff of the Covered Entities with the discretion to deviate as determined appropriate by the City Manager/Executive Director or Finance Director/Treasurer, and may be amended by the governing board of the applicable Covered Entity as it deems appropriate from time to time in the prudent management of the debt and capital financing needs of the Covered Entities.

1. Findings
This Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and shall govern all debt undertaken by a Covered Entity.

The Covered Entities hereby recognize that a fiscally prudent debt policy is required in order to:
• Maintain the Covered Entities’ sound financial position. • Ensure the Covered Entities have the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
• Protect the Covered Entities’ credit-worthiness.
• Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the Covered Entities.
• Ensure that the Covered Entities’ debt is consistent with their planning goals and objectives and capital improvement program or budget, as applicable.

2. Policies
A. Purposes For Which Debt May Be Issued
(i) Long-Term Debt. Long-term debt may be issued to finance the construction, acquisition, 292
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2 and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City.
(a) Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years.

• When total debt does not constitute an unreasonable burden to the Covered Entities and the City’s taxpayers and/or ratepayers, as applicable. • When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. (b) Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
(c) The Covered Entities may use long-term debt financings subject to the following conditions:
• The project to be financed must be approved by the governing board of the Covered Entity.
• The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%.
• The Covered Entity estimates that sufficient revenues will be available to service the debt through its maturity.
• The Covered Entity determines that the issuance of the debt will comply with the applicable state and federal law.
(ii) Short-term debt. Short-term debt may be issued to provide financing for the Covered Entities’ operational cash flows in order to maintain a steady and even cash flow balance. Shortterm debt may also be used to finance short-lived capital projects; for example, the Covered Entities may undertake lease-purchase financing for equipment.
(iii) Financings on Behalf of Other Entities. The Covered Entities may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of Covered Entities. In such cases, the Covered Entities shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein. 293
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3 B. Types of Debt
The following types of debt are allowable under this Debt Policy:
• General obligation bonds (GO Bonds)
• Bond or grant anticipation notes
• Lease revenue bonds, certificates of participation (COPs) and lease-purchase transactions
• Other revenue bonds and COPs
• Tax and revenue anticipation notes (TRANs)
• Land-secured financings, such as special tax revenue bonds issued under the MelloRoos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes
• Tax increment financing to the extent permitted under State law • Conduit financings, such as financings for affordable rental housing and qualified 501(c)(3) organizations
The governing body may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.

C. Relationship of Debt to Capital Improvement Program and Budget The City and Covered Entities are committed to long-term capital planning. The City and Covered Entities intend to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the capital budget and the capital improvement plan.

The City and Covered Entities shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City and Covered Entities shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.

The Covered Entities shall integrate their debt issuances with the goals of the capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of their public purposes.

The Covered Entities shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.
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4 The Covered Entities shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund.

D. Policy Goals Related to Planning Goals and Objectives The City and Covered Entities are committed to long-term financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The Covered Entities intend to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the annual operations budget.

It is a policy goal of the City and the Covered Entities to protect taxpayers, ratepayers (if applicable) and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City and the Covered Entities will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.

When refinancing debt, it shall be the policy goal of the Covered Entities to realize, whenever possible, and subject to any overriding non-financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.

E. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the Covered Entities shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

Without limiting the foregoing, the Covered Entities will periodically review the requirements of and will remain in compliance with the following:
• Any continuing disclosure undertakings entered into by the Covered Entities in accordance with SEC Rule 15c2-12.
• Any federal tax compliance requirements, including, without limitation, arbitrage and rebate compliance.
• Investment policies as they relate to the use and investment of bond proceeds.

Proceeds of debt will be held either (a) by a third-party trustee or fiscal agent, which will disburse such proceeds to or upon the order of the Covered Entities upon the submission of one 295
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5 or more written requisitions by the City Manager/Executive Director or Finance Director/Treasurer, or his or her written designee, or (b) by the Covered Entity, to be held and accounted for in a separate fund or account, the expenditure of which will be carefully documented by the Covered Entity.
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City of Healdsburg Investment Policy 1 Year 2025/26
Investment Policy
Fiscal Year 2025-2026
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City of Healdsburg Investment Policy 2 Year 2025/26

TABLE OF CONTENTS
I. MISSION STATEMENT.................................................................................................. 3 II. SCOPE
A. Pooling of Funds........................................................................................................ 3 B. Funds Included in this Policy ..................................................................................... 3 C. Funds Excluded from this Policy ............................................................................... 3 III. GENERAL OBJECTIVES
A. Safety.......................................................................................................................... 3 B. Liquidity..................................................................................................................... 4 C. Yield (Return on Investment)..................................................................................... 4 IV. STANDARDS OF CARE
A. Prudence..................................................................................................................... 4 B. Ethics and Conflicts of Interest .................................................................................. 4 C. Delegation of Authority.............................................................................................. 5 D. Investment Management Committee.......................................................................... 5 E. Internal Controls......................................................................................................... 5 V. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ............................... 5 VI. SAFEKEEPING AND CUSTODY .................................................................................. 5 VII. SUITABLE AND AUTHORIZED INVESTMENTS
A. Investment Types ....................................................................................................... 6 B. Investment Summary Table ...................................................................................... 11 C. Collateralization ....................................................................................................... 12 D. Socially Responsible Investing ................................................................................ 12 E. Investments Not Approved....................................................................................... 13 F. Investment Pools/Money Market Funds................................................................... 13 VIII. INVESTING PARAMETERS
A. Diversification .......................................................................................................... 14 B. Maximum Maturities................................................................................................ 14 IX. REPORTING
A. Quarterly Reporting to City Council........................................................................ 14 B. Reporting to California Debt and Investment Advisory Commission (CDIAC)...... 15 X. PERFORMANCE STANDARDS .................................................................................. 15 A. Market Yield (Benchmark)....................................................................................... 15 B. Marking to Market ................................................................................................... 15 C. Review of Investment Portfolio................................................................................ 15 XI. INVESTMENT POLICY COMPLIANCE AND ADOPTION
A. Policy Compliance and Changes.............................................................................. 16 B. Annual Statement of Investment Policy................................................................... 16 C. Exceptions................................................................................................................ 16 APPENDIX: GLOSSARY OF INVESTMENT TERMS .............................................................17 300
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City of Healdsburg Investment Policy 3 Year 2025/26
I. MISSION STATEMENT
It is the policy of the City of Healdsburg (“City”) to invest public funds in a manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds.

II. SCOPE
This investment policy applies to all the financial assets of City of Healdsburg. These funds are accounted for in the City’s audited Annual Financial Report. If the City invests funds on behalf of another agency and, if that agency does not have its own policy, the City's investment policy shall govern the agency's investments.

A. Pooling of Funds
Except for cash in certain restricted and special funds, the City shall consolidate cash balances from all funds to maximize investment earnings. Investment income shall be allocated to various funds in accordance with generally accepted accounting principles.

B. Funds Included in this Policy
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Fiduciary Funds
Utility Funds
Any new fund created by City Council unless specifically exempted C. Funds Excluded from this Policy
This investment policy does not apply to bond proceeds, deferred compensation funds, retirement or other post-employment benefits trust funds as these are governed under separate California Government Code sections or other documentation.

III.GENERAL OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities are safety, liquidity and yield.

A. Safety
Preservation of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk. To attain this objective, the City shall diversify its investments by investing funds among several financial institutions and a variety of securities offering independent returns.

1. Credit Risk
The City shall minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by:
 Limiting investments to securities allowed by this policy  Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business
 Diversifying the investment portfolio so as to minimize the impact any one industry/investment class can have on the portfolio
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City of Healdsburg Investment Policy 4 Year 2025/26

2. Interest Rate Risk
To minimize the negative impact of material changes in the market value of securities in the portfolio, the City shall:
 Structure the investment portfolio so that securities mature concurrent with cash needs to meet anticipated demands, thereby avoiding the need to sell securities on the open market prior to maturity
 Diversify the City’s investments among maturities
 Invest a portion of the operating funds primarily in shorter-term securities, and overnight investment vehicles, including but not limited to, money market mutual funds, the State of California’s Local Agency Investment Fund (“LAIF”), and local government investment pools (“LGIP”).

B. Liquidity
The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds, LAIF, or LGIPs, which offer same-day liquidity for short-term funds.

C. Yield (Return on Investment)
The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the liquidity characteristics of the portfolio. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STANDARDS OF CARE
A. Prudence
The standard of prudence to be used by City investment officials shall be the “prudent investor standard” in that a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of an enterprise of a like character and with like aims. This standard shall be applied in the context of managing the overall portfolio. City investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

B. Ethics and Conflicts of Interest
Officers and employees involved in the City investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions.

City employees and investment officials shall disclose any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City immediately to the City of Healdsburg City Manager and 302
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annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

C. Delegation of Authority
In accordance with the City of Healdsburg's Municipal Code, herewith established, the Finance Director, who serves as City Treasurer is authorized to invest the City's funds in accordance with California Government Code 53600 et seq. In the absence of the City Finance Director, the investment of funds will be delegated to the Finance Manager.

The Finance Director may also delegate investment decision making and execution authority to an investment advisor. The advisor shall follow this policy and such other written instructions as are provided.

D. Investment Management Committee
An investment committee may be appointed by the City Manager for the purpose of determining investment strategies and to monitor performance. This committee would include the City Manager, the Assistant City Manager, the Finance Director and the Electric Utility Director. The committee may make recommendations regarding portfolio diversification, economic outlook and overall risk management.

E. Internal Controls
The City Finance Director is responsible for establishing and maintaining a system of written internal controls. The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by City employees and officers. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

The internal controls shall address the following points:

1. Control of collusion

2. Separation of transaction authority from accounting and recordkeeping

3. Custodial safekeeping

4. Delivery versus payment (DVP)

5. Clear delegation of authority to subordinate staff members

6. Written confirmation of transactions for investments and wire transfers

7. Wire transfer agreements
V. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Finance Director shall establish selection criteria for pre-approval of financial institutions and security broker/dealers to do business with the City. The City Finance Director shall maintain a list of City approved financial institutions, registered investment advisors and security broker/dealers who are authorized to provide investment services to the City. These may include primary dealers, or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). To qualify for consideration, a financial institution or a security broker/dealer must also have an office in California, and that office must perform the transactions with the City.

If the City has an investment advisor, the investment advisor may use its own list of 303
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City of Healdsburg Investment Policy 6 Year 2025/26
authorized broker/dealers to conduct transactions on behalf of the City.

VI. SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis which will ensure that securities are deposited in an eligible financial institution prior to the release of funds. Securities shall be held by a third-party custodian designated by the City Finance Director and evidenced by safekeeping receipts with a written custodial agreement. The only exception to the foregoing shall be depository accounts and securities purchases made with: LAIF, time certificates of deposit, LGIPs, and money market mutual funds, since the purchased securities are not deliverable. Settlement instructions sent to the safekeeping agent shall require authorization. The City Finance Director shall be bonded to protect the public against possible embezzlement and malfeasance. Safekeeping procedures shall be reviewed annually by an independent external auditor and any irregularities noted shall be reported promptly to the City Council.

VII. SUITABLE AND AUTHORIZED INVESTMENTS
The City shall be governed by the California Government Code, Sections 53600 et seq. If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City's policy. The City shall be required to present those changes in the annual review of the policy and to incorporate the new legislation within the policy. Surplus funds are defined as funds not required for the immediate necessities of the City and include investments in individually managed portfolio(s), money market fund(s) and/or State LAIF, and all portfolio limitations and restrictions shall apply to this aggregate amount.

For purposes of compliance with the California Government Code and the City’s Investment Policy, minimum credit rating requirements included in this section shall be based on the credit ratings at the time of purchase. If the credit rating of the issuer is downgraded, subsequent to purchase, below the minimum rating requirement, it shall be reported to the Finance Director with a recommendation, and ongoing information shall be provided if the bond is not sold. The Finance Director shall include a status report on any such downgraded bonds to the City Council in the monthly report to City Council. Percentage limitations of surplus funds invested are noted for the various investment instruments. Where there is a specified percentage limitation for a particular category of investments, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in values or assets shall not constitute a violation of that restriction.

Except as provided below, no more than five (5) percent of the City’s surplus funds may be invested in any one institution, regardless of sector. The types of investments which are excluded from this limitation are: United States Treasury and federal agency/government sponsored enterprise (GSE) obligations, obligations of the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and the Inter-American Development Bank (IADB), money market funds and other investment pools.

A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

The City is empowered by statute to invest in the following types of securities and are those that the City Finance Director is trained and competent to handle.

A. Investment Types
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1. Bonds issued by the City, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the local agency.

2. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

3. Federal Agency or United States government-sponsored enterprise obligations (GSE), participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

4. State of California and Local Agency Obligations. Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state; and bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state including bonds payable solely out of the revenues from revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Notes eligible for investment shall be rated in a category of "A" or its equivalent or better by a Nationally Recognized Statistical-Rating Organization.

5. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. .

Notes eligible for investment shall be rated in a category of “A” or its equivalent or better a Nationally Recognized Statistical Rating Organization.

6. Medium-Term Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five (5) years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases of medium-term notes may not exceed thirty (30) percent of the City's surplus funds. Notes eligible for investment shall be rated in a category of "A" or its equivalent or better by at least two Nationally Recognized Statistical-Rating Organizations.

7. Commercial Paper of “prime” quality of the highest ranking or the highest letter and number rating as provided for by a Nationally Recognized Statistical-Rating Organization. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (a) or paragraph (b):
a. The entity is organized and operating in the United States as a general corporation and has total assets in excess of five hundred million dollars ($500,000,000). In addition, its debt other than commercial paper, if any, must be rated “A” or higher by a Nationally Recognized Statistical-Rating Organization.
b. The entity is organized within the United States as a special purpose corporation, trust, or limited liability company and has a program-wide credit enhancement including, but not limited to, over-collateralization, letters of credit, or a surety bond. In addition, the entity has commercial paper that is rated “A-1” or higher, or the equivalent, by a Nationally Recognized Statistical-Rating Organization.

Eligible commercial paper shall have a maximum maturity of two hundred and seventy (270) days or less. The City may not invest more than twenty-five (25) 305
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percent of its surplus funds in commercial paper.

8. Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, savings association, federal association, a state or federal credit union or by a statelicensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed thirty (30) percent of the City's surplus money invested. Deposit notes and bank notes purchased through a broker or dealer shall be included with negotiable certificates of deposit in calculating allowable maximum percentages.

Negotiable certificates of deposit shall be rated in a long-term rating category of "A" or its equivalent or better or a short-term rating category of A-1 or its equivalent or better by a Nationally Recognized Statistical-Rating Organization.

No rating is required if the purchase amount is within the FDIC insurance coverage amount, currently $250,000 maximum per FDIC member.

9. Time Deposits. The City may invest in time deposits, also known as nonnegotiable Certificates of Deposit at commercial banks and savings and loan associations that are collateralized in accordance with the California Government Code. To be eligible to receive City funds, the depository institution shall have received an overall rating of not less than “satisfactory” in its most recent evaluation of its record of meeting the credit needs of California’s communities, including low and moderate-income neighborhoods. In selecting depositories, the credit worthiness of institutions shall be considered. Banks and savings and loan associations seeking to establish an investment relationship with the City shall submit an audited financial report that shall be reviewed for compliance with the City's investment standards. Any institution not providing an audited annual financial report shall be removed from the approved list and all funds maturing will be withdrawn. A list of eligible institutions shall be maintained. Qualification shall be determined by the following criteria:
a. Tangible capital must equal or exceed one and a half (1½) percent; core capital must equal or exceed three (3) percent; and, risk-based capital must equal eight (8) percent of assets adjusted for assigned risk-weightings. b. Return on assets of a minimum of a half of one (½) percent; a return on equity of a minimum of eight (8) percent; an equity to assets ratio of a minimum of five (5) percent; and, City investments shall be no greater than a half of one (½) percent of the total assets of the depository. c. Independent auditor's statement must have a clean opinion.

10. Savings accounts. Savings accounts when used in conjunction with the City's checking accounts at a qualified bank where funds are collateralized in accordance with the California Government Code.

11. U. S. Government money market funds registered with the Securities and Exchange Commission and which comply with rule 2a7 of the Investment Company Act of 1940. The dollar weighted average maturity of the portfolio shall be less than ninety (90) days and the portfolio is managed to maintain a one dollar ($1.00) share price. Also, the fund shall meet either of the following criteria: (a) Attained the highest ranking or the highest letter and numerical rating provided by not less than two Nationally Recognized Statistical-Rating Organizations; (b) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by Code section 53601 subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).

The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall 306
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not exceed twenty (20) percent of the City’s moneys that may be invested pursuant to this section. However, no more than ten (10) percent of the City’s funds may be invested in shares of beneficial interest of any one mutual fund.

12. Repurchase Agreements. Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of any securities authorized by the Code, so long as the proceeds of the repurchase agreement are invested solely to supplement the income normally received from these securities.

The City shall adopt as a standard the Bond Market Association Master Repurchase Agreement and shall maintain a list of approved counterparts and limit counter parties to primary dealers rated "A" or better by two Nationally Recognized Statistical-Rating Organizations. Reverse repurchase agreements and securities lending agreements shall require City Council authorization separate from City Council approval of this policy. Securities lending agreements shall include the following safeguard measures: terms of lending agreements, indemnification provisions, reinvestment guidelines, liquidity provisions, credit risks and monitoring requirements. Additionally any securities lending agreement shall be reviewed by the City Attorney to ensure the City’s interests are properly protected.
a. Investments in repurchase agreements may be made, on any authorized investment, when the term of the agreement does not exceed one year. b. Reverse repurchase agreements or securities lending agreements may be utilized when the security to be sold on the reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the City for a minimum of thirty (30) days prior to sale; the total of all reverse repurchase agreements on investments owned by the City does not exceed twenty (20) percent of the base value of the portfolio; and the agreement does not exceed a term of ninety-two (92) days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between sale of a security using a reverse repurchase agreement and the final maturity date of the same security.

13. A mortgage passthrough security, collateralized mortgage obligation, or other mortgage- backed securities that are issued or guaranteed by federal agencies and GSE’s. Securities eligible for investment under this subdivision will have a maximum remaining weighted average life of five years or less. Purchase of securities authorized by this subdivision shall not exceed thirty (30) percent of the City’s surplus moneys that may be invested pursuant to this section.

14. Equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by a Nationally Recognized Statistical Rating Organization and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision shall not exceed ten (10) percent of the City’s surplus moneys that may be invested pursuant to this section.

15. Local Agency Investment Fund (LAIF). The City may invest in LAIF, established by the California State Treasurer, up to the maximum allowed by LAIF. The City's investment in LAIF is based on, among other criteria, the following information provided by LAIF: A written statement of portfolio management goals, objectives and polices, including a description of eligible investment securities; a disclosure of LAIF's safekeeping practices; eligible LAIF participants, the monthly transaction limit, and minimum and maximum deposit and withdrawal amounts permitted; calculation of quarterly earnings and apportionment, including gains 307
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and losses; disclosure of administrative costs and the assessment process; monthly statements of the City's transaction activity and balances; monthly summaries of LAIF investment data, including market valuation and accrued interest; and a description of the audit process.

The California Government Code states that moneys placed for deposit in LAIF 308
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are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any state official or agency based upon the State’s failure to adopt a budget by July 1 of each new fiscal year.

16. Supranational Obligations – Supranational obligations are defined as United States dollar denominated senior unsecured, unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by at a Nationally Recognized Statistical Rating Organization. There is a thirty (30) percent limit on the percentage of the portfolio that can be invested in this category.

17. Local Government Investment Pools - Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in Code Section 53601 subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
a. The adviser is registered or exempt from registration with the Securities and Exchange Commission.
b. The adviser has not less than five years of experience investing in the securities and obligations authorized in Code Section 53601 subdivisions (a) to (q), inclusive.
c. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

18. Sonoma County Pooled Fund – The City may invest in the Sonoma County Pooled Fund managed by the Sonoma County Treasurer up to the maximum permitted by State Law. However, at no time shall deposits in the County Pool exceed 10% of the total portfolio.
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B. Summary Table of Suitable and Authorized Investments US Treasury Bills, Bonds and Notes 100% None Full faith and credit of the United States Government.

Federal Agency Securities 100% None Implied guarantee of the US Government.

Local Agency Bonds 30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service,
such as Moody’s or S&P.

State of California
Obligations
30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service, such as Moody’s or S&P.

CA Local Agency
Obligations
30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service
such as Moody’s or S&P.

Obligations of other 49
States
30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service, such as Moody’s or S&P.

Money Market Funds 20% 10% persingle
issuer
Multiple requirements including highest ranking by two
nationally recognized rating agencies, must have fund advisor registered with the SEC, have more than $500 million under management, etc.

Commercial Paper 25% 5% persingle
issuer
Multiple requirements including highest ranking A-1, P-1, by a nationally recognized rating agency, and must have total assets exceeding $500 million.

Negotiable Certificates of Deposit 30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service, such as Moody’s or S&P.

Repurchase Agreements 20% 5% persingle
issuer
Signed Security Loan Agreement in file. Underlying securities must be valued at 102% or greater of the funds borrowed against. Reverse Repurchase Agreements are specifically not authorized under this investment policy.

Medium-term Corporate Bonds 30% 5% persingle
issuer
Shall be rated in a rating category of “A” or its equivalent or better by two nationally recognized rating services, such as Moody’s or S&P.

Agency-Backed Mortgage Pass-Though
Securities and Collateralized Mortgage
Obligations
30% None Implied guarantee of the US Government.

Privately Issued Asset-Backed
Securities
10% 5% persingle
issuer
Shall be rated in a rating category of “AA” or its equivalent or better by a nationally recognized rating service such as Moody’s or S&P.

Supranationals 30% 10% persingle
issuer
Shall be rated in a rating category of “AA” or its equivalent or better by a nationally recognized rating service, such as Moody’s or S&P.

Joint Powers Authority (Local
Government Investment Pools)
100% None Multiple requirements including registration with SEC, at least 5 years of experience with securities included here, and total assets in excess of $500 million.

Local Agency Investment Fund 100% State maximum Investment of funds in the California LAIF which allows the State Treasurer to invest through the Pooled Money
Investment Account
Sonoma County Pooled Fund 10% 10% of total
portfolio
Pooled money investment fund obligation of Sonoma
County
Investment Type Maximum
Percentage
of Portfolio
Maximum par
value per
name
Credit/Minimum Quality Requirements
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C. Collateralization
Collateralization shall be required on two types of investments: Certificates of deposit and repurchase (and reverse repurchase) agreements. A collateral agreement must be current and on file before any funds can be transferred for collateralized certificates of deposit. Collateral shall be held by an independent third party with whom the City has a current written custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted in accordance with the following requirements:

1. Certificates of Deposit
a. Government securities used as collateral require one hundred and two (102) percent of market value to the face amount of the deposit b. Promissory notes secured by first trust deeds used as collateral require one hundred and fifty (150) percent of market value to the face amount of the deposit
c. Irrevocable letters of Credit issued by the Federal Home Loan Bank of San Francisco require one hundred and five (105) percent of market value to the face amount of the deposit
d. No collateral is required for Certificates of Deposit covered by FDIC insurance

2. Repurchase and Reverse Repurchase Agreements
a. Only U.S. Treasury securities or federal agency securities are acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement.

The total market value of all collateral for each repurchase agreement must equal or exceed one hundred and two (102) percent of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one (1) day, the value of the underlying securities must be reviewed on an ongoing basis according to market conditions. Market value must be calculated each time there is a substitution of collateral. b. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to a repurchase agreement.

D. Socially Responsible Investing
It is the City’s objective to disallow investment in the industries identified in the table below. To achieve this objective, the City will apply the Socially Responsible Investment (“SRI”) Parameters detailed herein to investments authorized and governed by this Investment Policy. The SRI Investment Parameters will be implemented by utilizing industry and subindustry classifications as defined by Sustainalytics1, and Sustainalytics Product Involvement evaluations, as applicable. 1 Sustainalytics is a subsidiary of Morningstar Inc. that rates the sustainability of over 16,000 companies based on their environmental, social, and corporate governance performance.
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SRI Investment Parameters
Exclusion #1: Fossil
Fuels
Industry/Subindustry Exclusions:
(1) Energy Services
(2) Oil & Gas Producers
(3) Refiners & Pipelines
Exclusion #2: Tobacco Industry/Subindustry Exclusions:
(1) Tobacco
Exclusion #3: Firearms
Product Involvement:
(1) Small Arms –
Revenue/Ownership > 50%
If a previously purchased investment no longer satisfies the SRI Investment Parameters set forth herein, the City will continue to hold that investment unless the City sells or directs its investment advisor to sell that investment.

E. Investments Not Approved
Any security type or structure not specifically approved by this policy is hereby prohibited. Security types, which are hereby prohibited include, but are not limited to: reverse repurchase agreements used as a leveraging vehicle, "exotic" derivatives structures such as range notes, dual index notes, inverse floating-rate notes, leveraged or de-leveraged floating-rate notes, interest-only strips that are derived from a pool of mortgages and any security that could result in zero interest accrual if held to maturity, or any other complex variable or structured note with an unusually high degree of volatility or risk.

F. Investment Pools/Money Market Funds
A review of the pool/fund is required prior to investing, and on a continual basis. The investigation will, at a minimum, obtain the following:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings  A description of how the pool/fund maintain reserves, retained earnings, etc. or is all income after expenses distributed to participants  A fee schedule that discloses when and how fees are assessed.  The eligibility of the pool/fund to invest in bond proceeds and a description of its practices.
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Money market funds must be registered with the Securities and Exchange Commission and which comply with rule 2a7 of the Investment Company Act of 1940. The dollar weighted average maturity of the portfolio shall be less than ninety (90) days and the portfolio is managed to maintain a one dollar ($1.00) share price.

Also, the fund shall meet either of the following criteria: (a) Attained the highest ranking or the highest letter and numerical rating provided by not less than two Nationally Recognized Statistical-Rating Organizations; (b) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by Code section 53601 subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, , and with assets under management in excess of five hundred million dollars ($500,000,000).

VIII. INVESTING PARAMETERS
A. Diversification
The City shall diversify its investments by security type, issuer, maturity, and financial institutions. No percentage limitations are established for United States government, United States government agencies and United States government sponsored enterprises; however percentage limitations are established for other permitted investments, as noted in Section VII of this policy. The investments shall be diversified by limiting investments to avoid over-concentration in securities from a specific issuer or business sector (excluding U.S. Treasury and Federal Agency securities), limiting investment in securities that have higher credit risks, and investing in securities with varying maturities.

B. Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which, at the time of the investment, has a term remaining to maturity in excess of five (5) years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment. For purposes of compliance with this section, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

In addition to the five (5) year limitation on investments specified in this policy, the average maturity of the City's combined portfolio shall not exceed three (3) years without prior approval of the City Council.

IX. REPORTING
The Finance Director shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program.

A. Reporting to City Council
Monthly. In accordance with California Government Code Section 53607, the City shall make a monthly report of transactions to the City Council.

Quarterly. In accordance with California Government Code Section 53646, the City Finance Director shall submit to City Council an investment report that summarizes 313
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all securities in the portfolio. The report shall include:

1. Investment type

2. Issuer

3. Maturity date

4. Book value

5. Market value

6. Source of valuation

7. Statement of compliance with the investment policy

8. Statement of the ability to meet expenditures for the next six months In addition, a narrative shall accompany the portfolio addressing noteworthy items or the current investment climate. Annually, the City Finance Director shall provide a review of the City's Investment Policy.

B. Reporting to California Debt and Investment Advisory Commission (CDIAC) The City shall forward copies of investment portfolio reports and copies of the annual City of Healdsburg’s Statement of Investment Policy to CDIAC on an as-required basis.

X. PERFORMANCE STANDARDS
The investment portfolio shall be managed in accordance with the parameters specified within this policy and always within consistently safe and prudent treasury management procedures.

A. Market Yield (Benchmark)
The City’s overall investment strategy is active : Investments are purchased with the intent to hold to maturity, however, may be sold prior to maturity to adjust the portfolio duration or improve the risk structure, liquidity, yield, or return potential of the portfolio in response to market condition or City needs. If an investment advisory firm is retained by the City, the City portfolio shall be compared to a market benchmark in order to determine whether market returns are being achieved. In addition, the quarter-to-date LAIF apportionment rate, the three-month U.S. Treasury Bill and the two-year U.S. Treasury Note shall also be considered useful benchmarks of the City’s portfolio performance.

B. Marking to Market
The market value of the portfolio shall be calculated at least quarterly. This will ensure that review of the investment portfolio, in terms of value and price volatility, has been performed. In defining market value, consideration shall been given to pronouncements from the Government Accounting Standards Board (GASB) that address the reporting of investment assets and investment income for all investment portfolios held by governmental entities. The fair value of all securities reported in the City’s portfolio is based on currently quoted market prices.

C. Review of Investment Portfolio
The securities held by the City must be in compliance with Authorized and Suitable Investments at the time of purchase. The City Finance Director shall establish procedures to report to the City Council, major and critical incidences of noncompliance identified through the review of the portfolio. 314
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XI. INVESTMENT POLICY COMPLIANCE AND ADOPTION
A. Policy Compliance and Changes
Any deviation from the policy shall be reported to City Council at the next scheduled meeting. The City Finance Director shall promptly notify the City Council of any material change in the policy, and any modifications to the policy must be approved by the City Council.

B. Annual Statement of Investment Policy
The City Finance Director shall render a written Investment Policy that shall be reviewed at least annually by the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The City Council shall consider the annual Investment Policy and any changes therein at a public meeting. The Investment Policy shall be adopted by resolution of the City Council.

C. Exceptions
An exception to the policy may exist with respect to the Cultural Trust Fund, Senior Center Trust Fund and other similar trust funds where the Finance Director is the Trustee and only the income from such funds may be used. The investment policy authorizes the deviation of extending beyond the five-year maturity limitation outlined. Additionally, these funds may be invested with a responsible institution or nonprofit agency to maximize return on investment and/or manage community giving.
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APPENDIX

GLOSSARY OF INVESTMENT TERMS
ASKED: The price at which securities are offered for sale; also known as offering price.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet.

Book value is often acquisition cost plus/minus amortization and accretion, which may differ significantly from the security’s current value in the market.

BROKER: Someone who brings buyers and sellers together and is compensated for his/her service.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by a Nationally Recognized Statistical-Rating Organization.

CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

CURRENT YIELD (CURRENT RETURN): A yield calculation determined by dividing the annual interest received on a security by the current market price of that security.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DIVERSIFICATION: Dividing investment funds among a variety of security types by sector, maturity and quality ratings offering independent returns. 316
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DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small-business firms, students, farmers, farm co-operatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions and insurance companies.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States.

Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., twelve Regional Banks and about 5,700 commercial banks that are members of the system.

FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA): A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

GOVERNMENT SECURITIES: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."
INTEREST RATE RISK: The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value. 317
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INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points:
 Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer.
 Separation of transaction authority from accounting and record keeping - By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.  Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping.
 Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities.  Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities.
 Written confirmation of transactions for investments and wire transfers - Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.  Development of a wire transfer agreement with the lead bank and third-party custodian - The designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): Chapter 730, Statutes of 1976 of the State of California, established the Local Agency Investment Fund. This fund enables local governmental agencies to remit money not required for immediate needs to the State Finance Director for the purpose of investment. In order to derive the maximum rate of return possible, the State Finance Director has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Finance Director.

At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein.

Prior to the distribution, the State's costs of administering the program are deducted from the earnings.

MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.
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MARKET RISK: The risk that the value of a security will raise or decline as a result of changes in market conditions.

MARKET VALUE: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the sellerborrower.

MATURITY: The date upon which the principal or stated value of a financial obligation is due and payable.

MONEY MARKET MUTUAL FUND: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

MUTUAL FUND: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.

NATIONALLY RECOGNIZED STATISTICAL-RATING ORGANIZATION (NRSRO):

Standard and Poor’s, Moody’s, and Fitch Financial Services are examples of such organizations.

OFFER: An indicated price at which market participants are willing to sell a security or commodity. Also referred to as the "Ask price."
PAR VALUE: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REINVESTMENT RISK: The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.

REVERSE REPURCHASE AGREEMENT: An agreement of one party (for example, a financial institution) to purchase securities at a specified price from a second party (such as a public agency) and a simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specific date.

RISK: Degree of uncertainty of return on an asset.

RULE 2A-7 OF THE INVESTMENT COMPANY ACT: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).
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SAFEKEEPING SERVICE: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vault for protection and security.

SECONDARY MARKET: A market is made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES LENDING: An agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises, (FLAB, FNMA, SLMA, etc.), and Corporations that have imbedded options, (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns), into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SWAP: Trading one asset for another.

TOTAL RETURN: The sum of all investment income plus changes in the capital value of the portfolio.

TREASURY BILLS: Short-term U.S. government non-interest bearing discounted debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

TREASURY BOND: A long-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of more than 10 years and issued in minimum denominations of $1,000.

TREASURY NOTE: A medium-term coupon-bearing U.S. Treasury security issued as a direct obligation of the U.S. Government and having an initial maturity of from one to ten years and issued in denominations ranging from $1,000 to $1 million or more.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission (SEC) Rule 15C3- 1 outlining requirements that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

VOLATILITY: A degree of fluctuation in the price and valuation of securities.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the security’s current price. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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City of Healdsburg
Pension Liability Funding Policy

1. PURPOSE
The purpose of this policy is to memorialize the methodology and process for funding current and future costs associated with the City’s contractual obligations to provide pension benefits as set forth in the City’s labor agreements. The policy also:
• Demonstrates prudent financial management practices;
• Promotes long-term and strategic thinking;
• Provides guidance in making annual budget decisions;
• Reassures bond rating agencies; and
• Demonstrates to employees and the public how the unfunded pension liability will be funded to ensure adequate funding for negotiated benefits.

2. BACKGROUND
A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. The City’s plan is a defined benefit plan. The payout typically depends on how long the employee works for the employer and the employee’s salary.

Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”), lowered from 7.0% to 6.8% as of July 1, 2021, and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminations, and retirements. The maximum employee contribution rates are set by law.

Current California law establishes that public employee retirement benefits are a form of deferred compensation and part of the employment contract. The Courts have established that the vested rights of public employees prevent not only a reduction in the benefits that have already been earned, but also a reduction in the benefits that a member is eligible to earn during future service.

As such, changes to the employees’ retirement benefits are considered a negotiable item and must go through the meet and confer process.

Over the years, the City has taken steps to control pension costs. In 2012 the City issued Pension Obligation Bonds to pay off CalPERS side funds at a lower interest rate and established second tiers for classic members. In 2013, the City adopted the Public Employee’s Pension Retirement Act (“PEPRA”). In 2015, the City established the Pension Stabilization Fund and began making contributions to the fund. In 2019, the City adopted the initial version of this policy.

3. POLICY

3.1 Establishment of Pension Stabilization Fund
Effective July 21, 2015 the Council adopted the PARS Public Agencies Post-Employment Benefits IRS Section 115 approved trust, also known as the Pension Stabilization Fund. The premise behind the Trust is to set-aside monies in the fund with a City determined investment policy and pull out the funds as needed to achieve a level contribution by the City’s budget. The Pension Stabilization Resolution No. 13-2024
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Fund is an important tool the City can use to limit the impact of future decisions made by CalPERS on the City’s finances and ensure the delivery of public services.

3.2 Governance and administration of the established Trust:

The City Council established the Trust and defined the initial goals and policies for the administration of the Trust funds. The City Manager and staff have overall responsibility for the Trust and will manage the Trust in accordance with the City Council’s adopted policies.

Trust Administrator, PARS, keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.

Trustee, currently US Bank, will be the plan’s trust and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursement on request.

Investment Manager, currently PFM Asset Management (PFMAM), will recommend investment portfolio allocations based upon the Pension Trust Funds. PFMAM has adopted Investment Guidelines based on initial City Council input, revised to comply with existing law in November 2021 (Attachment 1), and manages City assets in accordance with the guidelines.

The Asset Allocation Investment Strategy chosen by a Council committee is rated as Moderately Conservative in regard to risk tolerance. Attachment 1 provides more detail on the asset allocation and breakdown.:

This policy recognizes that there will be future market volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.

3.3 Liability Funding Plan: Use of Pension Stabilization Fund The City is required to make annual UAL payments to CalPERS to cover outstanding liabilities based on the amortization schedules for those liabilities. The amount of payment is forecasted annually by CalPERS and is impacted by annual return rates, changes to the discount rate, and changes in actuarial analysis inputs and outputs.

City staff will include in the two-year budget details on projected UAL costs and anticipated use of the Trust. Given the Trust’s ability to generate interest, the City will endeavor to limit trust fund withdraws, maximizing potential for Trust Fund growth over time.

3.4 Additional Contribution: Expansion of Pension Stabilization Fund The City will annually review its ability to make additional contributions to the Pension Stabilization Fund. Making additional contributions when funds are available will maximize interest earnings, extend the long-term benefits of the Trust, and provide further flexibility for future UAL funding. Actions to budget additional contributions will be proposed to Council as appropriate.

3.5 Transparency and Reporting
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a. Copies of the actuarial valuations for the City’s pension plans shall be published on the City’s website.
b. The City’s Annual Financial Statements shall be published on the City’s website. The financial statements include information on the City’s pension plans, contributions to the Trust, and the funded status of the plans.
c. The City’s annual operating budget shall include appropriations for contributions to the Trust, to CalPERS and the annual pension costs.

3.6 Review of Funding Policy
Funding pension liability requires a long-term plan. The City will review this policy at a minimum biennially, coincident with preparation of the actuarial valuations, to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund pension benefits.

Resolution No. 13-2024
Exhibit A
Funding of the City’s pension benefit should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and City residents. To achieve this level of transparency, the following information shall be available:
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Grant Administration Policy Page 1

CITY OF HEALDSBURG
Proposed Effective Date: June 21, 2016

GRANT ADMINISTRATION POLICY
Purpose
The purpose of this policy is to provide procedures for those overseeing the fiscal management of the City’s grant funded programs. Staff should always consult the Federal and State regulations and current guidelines for their respective grant programs for the most comprehensive and up-to-date information.

To ensure City departments are accountable for proper documentation, administration and activities.

SECTION 1: INTRODUCTION TO GRANT FUNDING

1.1 OVERVIEW OF THE GRANT LIFE CYCLE
Grant awards are funded as a result of a grant application being written in response to a “Funding Opportunity Announcement” (FOA), also known as a, “Request for Proposal” (RFP).

An initial funding opportunity announcement will include the following information:
• A general description of the program
• The authorizing statute for the grant funding
• Eligibility requirements
• Length of grant term
• Cost share or matching funds requirements
• Application requirements – forms, budgets, narrative, supporting documents • Due date for application
• Review/scoring criteria
A grant application is then written in response to this established criterion. This is the first stage of four major stages in a grant project’s life:

Initial Application – Grant application is submitted to grantor agency. Application must be complete per the requirements set forth in the Request for Application posted for the grant funding opportunity. Applications will typically contain the following information:
• Purpose of Project
• Scope of Project, including implementation plan (work plan) • Goals and Objectives of Project
• Detailed Budget
• Funding Agency Required Assurances
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Notification of Award – Grant applicant is notified of award and application. A Notice of Grant Award (NGA) will include all critical information including, but not limited to: the project and budget period, the amount of award including (if applicable) matching funds requirements, the grantee’s Grant Specialist assigned to the grant, and the applicable laws, regulations, and award conditions. The Authorized Organizational Representative (AOR) must then sign and return award documents to grantor agency. It is vital at this time, that all requirements, standards, guidance, schedule of grant fund draw downs, and special conditions be reviewed carefully by the Finance Director and Project Manager.

Performance Period - Grant applicant will manage the grant project according to requirements, standards, and guidelines contained within the grant terms and conditions. Quarterly, bi-annual, or annual, narrative and financial progress status reports will be required in accordance with the frequency established in the special conditions of the award document. Any modifications to the approved implementation plan should be submitted to grantor agency. Complete all deliverables as stated in grant application.

Please note: Funding agency approval is required for any major amendments to the project, such as changes in the scope of work, budget, major personnel, and the performance period.

Failure to request changes may result in cost disallowances by the funding agency or federal auditor.

Close Out - Upon completion of the performance period of the grant award, the grantee is required to submit a final report of activities and performance and the final financial report.

Recipients are generally required to submit all reports required by the terms and conditions of their award within 90 days of the completion of the project period. Financial records and supporting project documents should be retained for a period of five years from the date of submission of the final report package.

1.2 TYPES OF GRANT FUNDING
For the purpose of this policy and procedure manual, the City considers the term, “grant,” to include any of the following funding:

Project Grants – Project grants fund specific projects or the delivery of specific services (also known as a work plan) for a fixed period of time. Funding is awarded through a competitive process by which the funding agency solicits applications from eligible organizations through a “Request for Proposals” (RFP) process. Applications are evaluated on a preset scoring criteria and then awarded to the applicants whose proposals best fit this criteria.

Formula Grant Funding - Formula grant funding is allocated to recipients based upon a set of pre-existing criteria. They are generally non-competitive awards which are allocated to eligible entities according to population and/or other census criteria. Applicants who meet the minimum requirements of the application process are entitled to receive money. Programs funded through these types of grants are often ongoing and serve a select group of people such as individuals with disabilities or low-income children. Organizations are still required to submit an application to receive funding.

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Block Grant Funding - Block grant funding is distributed on a formula basis. Block grants have a broad range of eligible activities which address a general, as opposed to a specific, problem area. As block grants address a broad purpose area, block grant recipients are given more discretion to identifying problems within their service area and designing programs to address said problems.

Categorical/Discretionary Grant Funding - Categorical grants have a narrow range of eligible activities and only allow funding to be used for specific defined purposes. Categorical grant funding is distributed by a pre-determined formula or at the discretion of the federal agency.

These grants require administrative reporting to help ensure both financial and programmatic accountability.

1.3 GENERAL RISKS ASSOCIATED WITH GRANT FUNDING
Federal and State grants are awarded for specific “public purposes” and therefore, grantees are required to utilize funds awarded as agreed upon and stated in the grant award document. This agreement often requires adherence to additional criteria including Office of Management and Budget (OMB) Circulars and agency specific guidelines. Grant funding misuse, including fraud and waste, does occur and the consequences of these actions can include debarment from receiving future funding, administrative recovery of funds, and up to and including criminal prosecution. Misuse can be a result of simple mistakes, gross negligence, or actual criminal fraud.

Common funding misuse includes:

Conflict of Interest – Conflict of interest occurs when federal funds are used to purchase either goods or services from a party that did not participate through an open procurement process.

Goods or services should be purchased through what is commonly known as an “arm’s length,” where the grantee project staff and sub-contractors or vendors are not related parties including family members, or business associates.

Misuse of Funds – Misuse of funds can include, but are not limited to, charging personal expenses as business expenses to the grant, charging for costs or services that were not incurred, not tracking personnel costs correctly, and charging items to the grant that were not approved.

Theft – Theft of funds can be accomplished through a number of ways. It can include using funds for non-grant-related purposes such as purchasing personal items with grant funds, the theft of federally owned property acquired with grant funds, and reimbursement for expenses, goods, or services, that were not actually incurred.

1.4 BEST PRACTICES FOR EFFECTIVE GRANT MANAGEMENT
It is the responsibility of the recipient of grant funding to mitigate the inherent risks associated with the potential misuse of funds. Risk management involves actively recognizing and assessing potential risks to a grant funded program and developing a plan that includes strategies and Resolution No. 61-2016
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internal controls to manage said risks. This can be accomplished by understanding some of the general best practices of effective grant management.

BEST PRACTICES FOR GRANT MANAGEMENT

1. Understand Applicable Federal Requirements and Regulations Staff assigned to the management of an approved grant understands all of the federal requirements, including special conditions, which apply to the grant.

2. Follow the Approved Work Plan
Staff has a plan for implementation of the grant, as set forth in the approved work plan, and a process with which to track its progress and success.

3. Implement Effective Management and Administration Systems Staff has management and administrative systems in place that provide for accountability and ensure that grant deliverables are met in a timely manner.

4. Implement Effective Budget and Finance Systems
Staff understands financial management principles, including Generally Accepted Accounting Principles (GAAP) requirements for grant fund management and has a system for organization, management, and documentation of said funds.

5. Ensure Proper Documentation
Staff ensures grant related documents are organized and accessible for auditors.

SECTION 2: APPLICABLE REGULATIONS AND REQUIREMENTS

2.1 ORDER OF PRECEDENCE
As a recipient of grant funding, it is a requirement to work in compliance with the rules and regulations that are set forth in the award documentation. In order to understand the legal requirements, including federal and state regulations, OMB circular rules, and special conditions and provisions which apply to grant funding, it is important to understand the “order of precedence” or the hierarchy of laws and regulations which apply to a funded program.

The following order of precedence applies to federal and state grants:

1. Statutes - Enabling Legislative Statute

2. Regulations - Code of Federal Regulations

3. Executive Orders - Delegated Executive Legislation

4. OMB Circulars - Instructions to Federal Agencies

5. Policies & Procedures

2.2 APPLICABLE REGULATIONS & OMB CIRCULARS
Determining which regulations and corresponding cost principles apply to a particular recipient entity is governed by the type of recipient. The City is considered a “state and local government” Resolution No. 61-2016
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agency, and therefore, any Federal and State grant monies received by the City will need to follow the regulations as set forth by the funding agency.

Code of Federal Regulation
The Code of Federal Regulations (CFR) lists the general and permanent rules published in the Federal Register by each of the executive departments and agencies of the Federal Government.

The CFR is a systematic collection of rules that are published in the Federal Register by the executive departments and agencies within the Federal government. It is divided into 50 different Titles which represent areas subject to Federal regulation.

Regulations are created through an enabling statute of Congress and serve as administrative law.

The Federal Register is published every business day by the National Archives and Records Administration (NARA) and contains the most up to date Federal Agency Regulations.

OMB Circulars
The Office of Management and Budget (OMB) is charged with the responsibility of the oversight and preparation of the Federal budget, in addition to the supervision of the budget of the various Federal agencies. OMB oversees and coordinates the Administration's procurement, financial management, information, and regulatory policies and serves on behalf of the President of the United States in developing government wide policies which aid in ensuring that Federal grants are managed properly and that Federal grant monies are spent in accordance with applicable laws and regulations. A key part of this process is the issuance of OMB circulars, which serve as instructions to federal grant making agencies. Although legislation and regulations will be federal agency program specific, there are regulations that the Office of Management and Budget publish through their Circulars that apply to many federal grant programs.

SECTION 3: APPLICABLE REGULATIONS AND REQUIREMENTS

3.1 THE CITY’S GRANT ROLES AND RESPONSIBILITIES
Each City grant application work plan will designate an individual as the Project Manager. This designated staff member will be tasked with day to day management and oversight of the grant funded project as laid out in the funded work plan.

Furthermore, they are responsible for ensuring that grant deliverables are met in the time set forth in the approved work plan. The Project Manager will work in collaboration with the City’s Finance Director, or designee, on grant related reimbursements, draw-downs, and required federal reporting.

The roles and responsibilities of the Project Manager are as follows:

1. Provide the Finance Director with a copy of the grant award immediately upon award of the grant to the City. The Project Manager will also suggest that the City’s audit firm be contacted to provide the critical compliance requirements that will be evaluated in the Single Audit.

2. Be the City’s primary point of contact for Federal Grant Specialist personnel.

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3. Serves as liaison between Federal Grant Specialist personnel and the City’s project personnel.

4. Understand the administrative and fiscal grant requirements as set forth in the Notice of Award document.

5. Ensure that sub-contractors utilized are not currently suspended or debarred.

6. Develop an internal process to provide for continuous review and evaluation of the grant work plan throughout the span of the grant project.

7. Maintain a complete hard copy file of all required grant information.

8. Work in collaboration with the City’s Finance Department to ensure project expenditures are within the scope of the approved grant budget.

9. If required, submit recommendations for the changes to the approved work plan, deliverables, and budget to the City’s Finance Department, and if approved, submit said requests to the grantor agency.

10. Work collaboratively with the City’s Finance Department staff on submission of required financial reports.

11. Create and submit to grantor agency all required narrative reports.

12. Work collaboratively with the City’s Finance Department staff on submission of final grant close out report within 90 days of the completion of the project period.

The roles and responsibilities of the Finance Director and Finance Department are as follows:

1. Immediately upon the award of a grant, the Finance Director will contact the City’s audit firm so that the audit firm can provide to the City the critical compliance requirements that will be evaluated in the single audit.

2. Create and submit all reimbursement/draw down requests to grantor agency.

3. Monitor all grant charged costs and cost allocations.

4. Ensure proper charging of costs to grant activities.

5. Conduct regular financial compliance reviews of grant fund activities and associated costs.

6. Prepare internal financial reports for the City’s Grant Project Managers detailing grant expenditures.

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7. Create and submit, in collaboration with the City’s Project Managers, all required budget reports.

8. If required, work collaboratively with the City’s Project Managers to develop and submit budget request changes from grantor agency.

9. Develop an internal process for the closing of grant projects to ensure compliance with close out activities as set forth in the Notice of Award document.

10. Maintain all grant related source documentation for audit purposes.

3.2 AUTHORIZED ORGANIZATIONAL REPRESENTATIVE
An Authorized Organizational Representative (AOR), also commonly called an “Authorized Signatory,” is the individual who is authorized to sign all Notice of Award documents on behalf of the grantee.

On occasion, a grant award may require a supporting resolution; if one is needed it will be prepared by either the Project Manager or Finance Department and will be submitted to the Council for adoption.

The City Manager is the only authorized personnel that may accept and sign for grant award monies on behalf of the City.

3.3 AWARD NOTIFICATION, REVIEW, AND ACCEPTANCE PROCEDURE Upon receiving the Notice of Grant Award (NGA) package from the funding agency, the City’s Grant Project Manager will follow this review and acceptance procedure:

1. NGA will be forwarded to the City Manager for review and acceptance.

2. NGA agreement will be signed by the City Manager and then returned to the funding agency.

3. The City Manager will authorize the Project Manager to begin grant activities.

4. Project Manager will receive the original, executed grant award agreement documentation and a copy will be forwarded to the City’s Finance Department

5. Project Manager will review the grant award and schedule an initial project meeting at which time an implementation plan for stated grant work plan activities, as were set forth in the approved grant document, will be developed.

3.4 Grant Oversight and Monitoring
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Initial Project Meeting
Once the authorization from the City Manager to begin project activities is received, the Project Manager shall convene a “kick off” meeting with all appropriate City personnel that will be involved in grant activities within the first 30 days of receiving the grant award agreement.

Initial Grant Project Meeting Procedure

1. Review all funding agency requirements with project staff including applicable regulations and record keeping and reporting requirements.

2. Address any staff issues and concerns with the grant work plan.

3. Identify potential problems in grant implementation and create contingency plans.

4. Create an implementation timeline/schedule for grant work plan activities with roles and responsibilities and related activities clearly assigned to specific personnel.

5. Set up master project grant file.

Grant File Set Up
In order to provide for continuity across grant funded programs, grant master files should consist of the following documents:

1. Original grant application

2. Award letter & special conditions

3. Implementation schedule

4. Required reports

5. Modification documents

6. Monthly fiscal reports on grant activities

7. Miscellaneous – Correspondence with funding agency

8. Sub-grantee file, including subcontract agreements, etc.

3.5 GRANT REPORTING PROCEDURE
The Notice of Grant Award package for all grants will contain information on reporting requirements for grant funded projects. Reporting requirements will differ among funding agencies, and reports may be required on a monthly, quarterly, bi-annual, or annual basis.

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General report types are performance, financial, or close out reports. It is the Project Manager’s responsibility to ensure that all required reports are submitted to the funding agency before their respective due dates.

Grant Reporting Procedure

1. Upon receipt of NGA package, a grant report schedule will be set up by the Project Manager.

2. Immediately, provide a copy of the grant agreement upon receipt of the award to the City.

3. Two (2) weeks prior to the report due date, the Project Manager will meet with key project staff and the Finance Director to review the current status of the grant project and related finances.

4. The Project Manager will prepare the required narrative report and submit the report.

5. The Finance Director will prepare the required fiscal report and submit the report.

6. A hard copy of the narrative and fiscal report will be placed into the project master file.

Failure to submit required reports on time or failure to submit accurate reports can negatively affect current and future funding from the funding agency.

3.6 GRANT CLOSE OUT PROCEDURE
The Notice of Grant Award will state the period of the grant funded project and will state the last date of the project period. The close out of a grant funded project must be completed in a timely manner and consist of all required reports as stated in the NGA. The close out of a grant does not negate any additional requirements for reporting of property purchased with grant funds, grant records retention, or financial accountability. If any grant funds have not been expended during the approved grant project period, they must be returned to the funding agency. During the close out of any grant funded project, the following procedure should be followed:

Grant Close-Out Procedure

1. Review final supplies, materials, or equipment purchases. Additional charges made after the close out date will be disallowed by the funding agency.

2. Review all previously submitted funding agency required reports to verify accuracy (all required reports should be contained in the grant file).

3. Ensure all project staff effort has been correctly accounted for and is contained in the grant file.

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4. Schedule a grant close-out meeting with project staff to review all information in the grant file for accuracy.

5. Send closed grant file to appropriate location
SECTION 4: MANAGING BUDGET AND FINANCE ACTIVITIES

4.1 FINANCIAL MANAGEMENT SYSTEMS
Financial management systems serve a critical role in the grant management process in that they provide for internal controls that support the City’s ability to track grant expenditures, ensure allowability of costs, and provide that proper documentation is kept for grant related expenditures. Lastly, it provides the City with the ability to fulfill the federal granting agency’s financial reporting requirements.

It is the policy of the City to have financial management systems in place that provide the following:

1. Ensure adequate justification for grant expenditures as necessary and reasonable

2. Track Indirect Costs in an efficient manner

3. Track the flow of grant funds

4. Establish internal controls for grant cash management

5. Ensure compliance with A-133 Audit requirements
The City’s Finance Department is responsible for keeping all grant fund accounting records. As a recipient of grant funds, it is the responsibility of the City to:

1. Have processes in place for cash management

2. Maintain adequate financial records

3. Comply with reporting requirements

4. Conduct regular budget reviews

5. Report any budget related irregularity to the granting agency

4.2 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Generally accepted accounting principles (GAAP) are uniform minimum standards and guidelines for financial accounting and reporting. GAAP establishes appropriate measurement Resolution No. 61-2016
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and classification criteria for financial reporting. The City has adopted GAAP to provide for fiscal control and accounting procedures while managing grant funded programs.

4.3 THE A-133 AUDIT
Agencies that expend more than $500,000.00 in federal grant funds during a fiscal year (July 1- June 30) are required by OMB Circular A-133 to have a single audit. The purpose of the A-133 Audit is to review an agency’s compliance with federal program requirements, as established in a grant award. The auditing process analyzes and examines not only the financial requirements of a grant, but award work plan requirements and deliverables. Auditors are in search of weaknesses in an agency’s internal controls that govern their use of federal grant funds. Issues that are often reviewed during the A-133 process include:

1. Cash management

2. Allowable versus unallowable costs charged to the grant

3. Allowable versus unallowable grant activities

4. Property/equipment acquisition, management, and maintenance

5. Procurement/bidding processes

6. Adherence to requirements such as lobbying, civil rights, drug free workplace

7. Time of effort for project staff

8. Matching requirements (if applicable)
PREPARING FOR THE A-133 AUDIT PROCESS
Preparation for the A-133 audit should be part of daily operational processes that creates a system of checks and balances. It is the policy of the City’s Finance Department to have processes in place which support the following goals:

Provide for Risk Assessment – the City’s Finance Department will be diligent in identifying internal and external risk to a grant funded program’s finances.

Provide for Monitoring – the City’s Finance Department will have monitoring processes in place that will provide for internal controls to routinely review the financial management of grant funding.

SECTION 5: ENSURING PROPER DOCUMENTATION

5.1 GENERAL STANDARDS FOR SUPPORTING DOCUMENTATION
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Documents provide for a record of various financial events, transactions, or activities. Typical grant transactions may include: Personnel and benefits costs, equipment and supplies purchases, cost for contractor related services, and grant income or revenue. Supporting documentation provides the City with internal controls which in turn, provide evidence of who requested a transaction, why it was approved, and if it was a necessary transaction.

In order to support proper documentation for grants, the City’s personnel will utilize the following practices:

1. Standardized accounting forms or templates will be utilized whenever possible.

2. Accounting records will be supported by source documentation including copies of checks, paid bills, purchase orders, etc.

3. Full time effort of employees that are grant supported will be tracked by time and attendance records.

4. Accounting records for grant funds will contain the following information:

Authorizations, obligations, unobligated balances, outlays/expenditures, and income (if any).

5.2 RECORD RETENTION REQUIREMENTS
The City’s Finance Department is responsible for all grant fund accounting records. A separate folder is created for each billing cycle for each particular grant which includes all supporting documentation for expenditures and payment of reimbursement. An additional folder is maintained for all other notes and correspondence pertaining to the grant. The folders are kept in the Finance Department throughout the life of the grant. Upon completion and closeout of the grant project, the files are scanned into the electronic records retention system, catalogued, and sent off-site for storage. Grant files will be retained for a period of five years beyond the end date of the grant period, unless the grant agreement requires a longer period of retention.

Related records include the following:
• Notice of Award Package
• Required Narrative and Financial Reports
• All Related Financial Documentation
Appendix A: LIST OF ABBREVIATIONS
AOR – Authorized Organization Representative
CFR – Code of Federal Regulations
FOA – Funding Opportunity Announcement
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GAAP – Generally Accepted Accounting Principles
NARA – National Archives and Records Administration
NGA – Notice of Grant Award
OMB – The Executive Office of the President, Office of Management and Budget RFP – Request for Proposal
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CITY OF HEALDSBURG
RESOLUTION NO. ___-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ADOPTING THE 2026-27 BUDGET
WHEREAS, at the February 20, 2026, City Council meeting the City kicked off the budget development process, identifying the budget development goals and a public outreach strategy; and
WHEREAS, as part of the public outreach and engagement strategy the City held two public workshops, met with community organizations, launched three online budget tools and two paper budget surveys; and
WHEREAS, on February 17, 2026, the City Council reviewed and updated the Pension Liability Funding Policy and the General Fund Surplus Policy as part of the budget development process; and
WHEREAS, on April 20, 2026, the City Council received an update on the budget development process including feedback from the public engagement process; and WHEREAS, on May 11, 2026, the City Council held a duly noticed special meeting to review, and provide opportunities for and receive public comments regarding the proposed Fiscal Year 2026-27 budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:

1. Adopt the Fiscal Year 2026-27 budget as depicted on the attached Exhibit A.

2. Authorize the City Manager to take all necessary and proper steps to implement this budget, including making expenditures which require prior approval of the City Council as set forth in the Healdsburg Municipal Code and State law.

3. Directs the City Manager to notify the City Council on a timely basis and prepare a budget adjustment when it appears a budget will be exceeded.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 1st day of June 2026 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
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ABSTAINING: Councilmembers:

SO ORDERED: ATTEST:
_________________________________ ____________________________________ J. Chris Herrod, Mayor Raina Allan, City Clerk
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Exhibit A
Fund Description FY 2026-27
101 General Fund $ 20,728,946
102 General Capital Replacement Fund 294,349
104 Enhanced Fire Protection Fund (Measure H) 1,179,032 105 Transaction & Use Tax Fund (Measure T) 2,719,501
106 Transient Occupancy Tax (TOT) - Affordable Housing 1,810,275 107 L & M Village Fund 852,101
201 Gas Tax Fund 352,900
202 Road Repair and Accountability Fund 225,000
211 Public Safety Fund 6,000
213 Opioid Settlement Fund 52,620
221 Lighting & Landscape Assessment District 1 83,143
222 Lighting & Landscape Assessment District 2 7,861
223 Lighting & Landscape Assessment District 3 94,998
224 Lighting & Landscape Assessment District 4 5,855
225 Lighting & Landscape Assessment District 5 21,821
226 Lighting & Landscape Assessment District 6 22,598
227 Lighting & Landscape Assessment District 7 49,437
280 Media Center Fund 30,000
301 General Debt Service Fund 107,778
403 Post RDA Successor Agency Fund 3,981,961
404 Post RDA Housing Agency Fund 50,665
405 Post RDA Debt Retirement Fund 3,719,961
510 Streets Fund 1,444,195
512 Streets Capital Project Fund 3,081,198
520 Water Fund 11,134,213
522 Water Capital Project Fund 3,979,755
530 Wastewater Fund 13,198,870
531 Drainage Fund 930,153
532 Wastewater & Drainage Capital Project Fund 5,075,710 540 Electric Fund 18,355,317
542 Electric Capital Project Fund 1,877,183
546 Electric Public Benefit Fund 626,007
547 Electric Cap and Trade Fund 1,928,534
570 Airport Fund 572,003
572 Airport Capital Project Fund 2,906,000
582 Community Services Capital Projects Fund 409,894
585 Community Services Fund 8,881,324
601 Insurance & Benefits Fund 2,322,216
602 Vehicle Services Fund 1,175,940
603 Information Services Fund 3,566,231
604 Building Maintenance Fund 2,331,798
622 Vehicle Replacement Fund 1,225,577
703 Senior Center Endowment Expendable Trust 5,500
706 Plaza Flowers Veterans Trust Fund 1,433
905 Parking Development Impact Fees Fund 150,000
910 Streets Development Impact Fees Fund 125,000
920 Water Development Impact Fees Fund 166,403
930 Wastewater Development Impact Fees Fund 1,026,855
931 Drainage Development Impact Fees Fund 809,287
Total $ 123,703,398
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CITY OF HEALDSBURG
RESOLUTION NO. ___-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ADOPTING THE 2027-28 BUDGET
WHEREAS, at the February 20, 2026, City Council meeting the City kicked off the budget development process, identifying the budget development goals and a public outreach strategy; and
WHEREAS, as part of the public outreach and engagement strategy the City held two public workshops, met with community organizations, launched three online budget tools and two paper budget surveys; and
WHEREAS, on February 17, 2026, the City Council reviewed and updated the Pension Liability Funding Policy and the General Fund Surplus Policy as part of the budget development process; and
WHEREAS, on April 20, 2026, the City Council received an update on the budget development process including feedback from the public engagement process; and WHEREAS, on May 11, 2026, the City Council held a duly noticed special meeting to review, and provide opportunities for and receive public comments regarding the proposed Fiscal Year 2027-28 budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg does hereby:

1. Adopt the Fiscal Year 2027-28 budget as depicted on the attached Exhibit A.

2. Authorize the City Manager to take all necessary and proper steps to implement this budget, including making expenditures which require prior approval of the City Council as set forth in the Healdsburg Municipal Code and State law.

3. Directs the City Manager to notify the City Council on a timely basis and prepare a budget adjustment when it appears a budget will be exceeded.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Healdsburg this 1st day of June 2026 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
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ABSTAINING: Councilmembers:

SO ORDERED: ATTEST:
_________________________________ ____________________________________ J. Chris Herrod, Mayor Raina Allan, City Clerk
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Exhibit A
Fund Description FY 2027-28
101 General Fund $ 21,933,993
102 General Capital Replacement Fund 284,674
104 Enhanced Fire Protection Fund (Measure H) 386,948
105 Transaction & Use Tax Fund (Measure T) 3,752,937
106 Transient Occupancy Tax (TOT) - Affordable Housing 1,790,308 107 L & M Village Fund 853,338
201 Gas Tax Fund 377,900
202 Road Repair and Accountability Fund 500,000
211 Public Safety Fund 5,000
213 Opioid Settlement Fund 55,107
221 Lighting & Landscape Assessment District 1 87,548
222 Lighting & Landscape Assessment District 2 8,394
223 Lighting & Landscape Assessment District 3 101,403
224 Lighting & Landscape Assessment District 4 6,181
225 Lighting & Landscape Assessment District 5 23,462
226 Lighting & Landscape Assessment District 6 23,969
227 Lighting & Landscape Assessment District 7 50,463
280 Media Center Fund 30,000
301 General Debt Service Fund 107,778
403 Post RDA Successor Agency Fund 3,976,467
404 Post RDA Housing Agency Fund 665
405 Post RDA Debt Retirement Fund 3,714,470
510 Streets Fund 1,522,405
512 Streets Capital Project Fund 4,479,001
520 Water Fund 10,021,423
522 Water Capital Project Fund 2,791,236
530 Wastewater Fund 13,368,047
531 Drainage Fund 1,018,102
532 Wastewater & Drainage Capital Project Fund 3,600,974 540 Electric Fund 19,307,491
542 Electric Capital Project Fund 1,518,825
546 Electric Public Benefit Fund 509,841
547 Electric Cap and Trade Fund 1,062,944
570 Airport Fund 444,896
572 Airport Capital Project Fund 767,500
585 Community Services Fund 9,115,918
601 Insurance & Benefits Fund 2,559,563
602 Vehicle Services Fund 1,223,464
603 Information Services Fund 3,721,650
604 Building Maintenance Fund 2,530,316
622 Vehicle Replacement Fund 456,632
703 Senior Center Endowment Expendable Trust 5,500
901 Fire Facilities Development Impact Fees Fund -
905 Parking Development Impact Fees Fund 120,000
910 Streets Development Impact Fees Fund 1,661,000
Total $ 119,877,733
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CITY OF HEALDSBURG
RESOLUTION NO. _____-2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEALDSBURG ADOPTING THE 2026-31 FIVE-YEAR

CAPITAL IMPROVEMENT PROGRAM
WHEREAS, City staff has prepared a Capital Improvement Program, designed to serve as both a financial and project planning document; and
WHEREAS, on May 11, 2026, the City Council held a duly noticed special meeting to review and provide opportunity for and receive public comments regarding the proposed five-year Capital Improvement Program; and
WHEREAS, on May 12, 2026, pursuant to Government Code sections 65103 and 65400, the Planning Commission reviewed the proposed Capital Improvement Program and determined that all of the projects contained in said program are consistent with the City of Healdsburg General Plan as to location, purpose and extent; and
WHEREAS, City staff reviewed the proposed Capital Improvement Program under the California Environmental Quality Act (“CEQA”) and determined that adoption of the program is not a project for CEQA purposes, therefore no environmental review is required.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Healdsburg hereby:

1. Based on the Planning Commission determination, finds the proposed 2026-31 five-year Capital Improvement Program consistent with the City of Healdsburg General Plan; and

2. Finds and determines that adoption of the Capital Improvement Program is not subject to CEQA review; and

3. Adopts the City of Healdsburg 2026-31 five-year Capital Improvement Program as summarized in the attached Exhibit A.

PASSED, APPROVED AND ADOPTED this 1st day of June 2026, by the following vote:

AYES: Councilmembers: ( )
NOES: Councilmembers: ( )
ABSENT: Councilmembers: ( )
ABSTAINING: Councilmembers: ( )
SO ORDERED: ATTEST:
________________________________ ____________________________________ J. Chris Herrod, Mayor Raina Allan, City Clerk
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Exhibit A
Fund Description FY 2026-27
101 General Fund $ 20,728,946
102 General Capital Replacement Fund 294,349
104 Enhanced Fire Protection Fund (Measure H) 1,179,032 105 Transaction & Use Tax Fund (Measure T) 2,719,501
106 Transient Occupancy Tax (TOT) - Affordable Housing 1,810,275 107 L & M Village Fund 852,101
201 Gas Tax Fund 352,900
202 Road Repair and Accountability Fund 225,000
211 Public Safety Fund 6,000
213 Opioid Settlement Fund 52,620
221 Lighting & Landscape Assessment District 1 83,143
222 Lighting & Landscape Assessment District 2 7,861
223 Lighting & Landscape Assessment District 3 94,998
224 Lighting & Landscape Assessment District 4 5,855
225 Lighting & Landscape Assessment District 5 21,821
226 Lighting & Landscape Assessment District 6 22,598
227 Lighting & Landscape Assessment District 7 49,437
280 Media Center Fund 30,000
301 General Debt Service Fund 107,778
403 Post RDA Successor Agency Fund 3,981,961
404 Post RDA Housing Agency Fund 50,665
405 Post RDA Debt Retirement Fund 3,719,961
510 Streets Fund 1,444,195
512 Streets Capital Project Fund 3,081,198
520 Water Fund 11,134,213
522 Water Capital Project Fund 3,979,755
530 Wastewater Fund 13,198,870
531 Drainage Fund 930,153
532 Wastewater & Drainage Capital Project Fund 5,075,710 540 Electric Fund 18,355,317
542 Electric Capital Project Fund 1,877,183
546 Electric Public Benefit Fund 626,007
547 Electric Cap and Trade Fund 1,928,534
570 Airport Fund 572,003
572 Airport Capital Project Fund 2,906,000
582 Community Services Capital Projects Fund 409,894
585 Community Services Fund 8,881,324
601 Insurance & Benefits Fund 2,322,216
602 Vehicle Services Fund 1,175,940
603 Information Services Fund 3,566,231
604 Building Maintenance Fund 2,331,798
622 Vehicle Replacement Fund 1,225,577
703 Senior Center Endowment Expendable Trust 5,500
706 Plaza Flowers Veterans Trust Fund 1,433
905 Parking Development Impact Fees Fund 150,000
910 Streets Development Impact Fees Fund 125,000
920 Water Development Impact Fees Fund 166,403
930 Wastewater Development Impact Fees Fund 1,026,855
931 Drainage Development Impact Fees Fund 809,287
Total $ 123,703,398
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04.06.2026
Job Classification
EXECUTIVE MANAGEMENT   A step B step  C step  D step E step A step B step C step D step E step Assistant City Manager $ 16,890.04 $ 17,734.13 $ 18,621.96 $ 19,552.14 $ 20,530.31 $ 97.44 $ 102.31 $ 107.43 $ 112.80 $ 118.44 City Manager $ 24,699.16 $ 142.50
Community Development Director $ 15,166.60 $ 15,925.48 $ 16,721.41 $ 17,558.50 $ 18,435.40 $ 87.50 $ 91.88 $ 96.47 $ 101.30 $ 106.36 Community Services Director $ 14,733.22 $ 15,469.04 $ 16,244.05 $ 17,055.67 $ 17,909.08 $ 85.00 $ 89.24 $ 93.72 $ 98.40 $ 103.32 Finance Director $ 14,733.22 $ 15,469.04 $ 16,244.05 $ 17,055.67 $ 17,909.08 $ 85.00 $ 89.24 $ 93.72 $ 98.40 $ 103.32 Fire Chief $ 15,793.15 $ 16,583.86 $ 17,412.45 $ 18,282.88 $ 19,197.74 $ 91.11 $ 95.68 $ 100.46 $ 105.48 $ 110.76 Housing Director $ 13,996.56 $ 14,695.58 $ 15,431.85 $ 16,202.88 $ 17,013.64 $ 80.75 $ 84.78 $ 89.03 $ 93.48 $ 98.16 Police Chief $ 16,433.56 $ 17,255.62 $ 18,118.22 $ 19,023.91 $ 19,975.38 $ 94.81 $ 99.55 $ 104.53 $ 109.75 $ 115.24 Public Works Director $ 16,095.64 $ 16,899.81 $ 17,746.51 $ 18,634.39 $ 19,567.54 $ 92.86 $ 97.50 $ 102.38 $ 107.51 $ 112.89 Electric Utilities Director $ 16,932.81 $ 17,779.72 $ 18,668.43 $ 19,602.89 $ 20,584.41 $ 97.69 $ 102.58 $ 107.70 $ 113.09 $ 118.76 Human Resources Analyst $ 8,693.80 $ 9,136.87 $ 9,602.13 $ 10,092.24 $ 10,607.18 $ 50.16 $ 52.71 $ 55.40 $ 58.22 $ 61.20 Chief Human Resources Officer $ 11,248.70 $ 11,822.31 $ 12,426.13 $ 13,060.13 $ 13,725.69 $ 64.90 $ 68.21 $ 71.69 $ 75.35 $ 79.19 MID-MGT & PROF EMPS ASSOC.  A step B step  C step  D step E step A step B step C step D step E step Accountant $ 8,108.28 $ 8,521.29 $ 8,956.51 $ 9,413.93 $ 9,893.58 $ 46.78 $ 49.16 $ 51.67 $ 54.31 $ 57.08 Administrative Analyst I $ 7,297.46 $ 7,662.34 $ 8,045.45 $ 8,447.73 $ 8,870.11 $ 42.10 $ 44.21 $ 46.42 $ 48.74 $ 51.17 Administrative Analyst II $ 8,108.28 $ 8,521.29 $ 8,956.51 $ 9,413.93 $ 9,893.58 $ 46.78 $ 49.16 $ 51.67 $ 54.31 $ 57.08 Assistant Engineer $ 7,844.09 $ 8,244.02 $ 8,663.94 $ 9,106.08 $ 9,570.44 $ 45.25 $ 47.56 $ 49.98 $ 52.54 $ 55.21 Associate Civil Engineer $ 9,228.36 $ 9,698.85 $ 10,192.88 $ 10,713.05 $ 11,259.34 $ 53.24 $ 55.95 $ 58.81 $ 61.81 $ 64.96 Building Official $ 11,037.39 $ 11,589.25 $ 12,168.72 $ 12,777.15 $ 13,416.01 $ 63.68 $ 66.86 $ 70.20 $ 73.71 $ 77.40 Business Services Manager $ 9,304.76 $ 9,769.99 $ 10,258.49 $ 10,771.42 $ 11,309.99 $ 53.68 $ 56.37 $ 59.18 $ 62.14 $ 65.25 Central Services Manager $ 9,743.50 $ 10,230.66 $ 10,742.22 $ 11,279.31 $ 11,843.28 $ 56.21 $ 59.02 $ 61.97 $ 65.07 $ 68.33 Chief Information and Security Officer $ 12,405.63 $ 13,025.91 $ 13,677.20 $ 14,361.06 $ 15,079.12 $ 71.57 $ 75.15 $ 78.91 $ 82.85 $ 86.99 City Clerk $ 9,939.83 $ 10,436.82 $ 10,958.68 $ 11,506.59 $ 12,081.94 $ 57.35 $ 60.21 $ 63.22 $ 66.38 $ 69.70 City Clerk/Public Information Officer $ 11,430.80 $ 12,002.34 $ 12,602.47 $ 13,232.59 $ 13,894.23 $ 65.95 $ 69.24 $ 72.71 $ 76.34 $ 80.16 Deputy City Clerk $ 7,333.11 $ 7,704.86 $ 8,099.11 $ 8,511.71 $ 8,946.80 $ 42.31 $ 44.45 $ 46.73 $ 49.11 $ 51.62 Deputy Director of Water and Wastewater $ 13,084.29 $ 13,738.50 $ 14,425.44 $ 15,146.70 $ 15,904.03 $ 75.49 $ 79.26 $ 83.22 $ 87.38 $ 91.75 Electric Operations Superintendent $ 14,797.78 $ 15,537.52 $ 16,314.40 $ 17,130.13 $ 17,986.63 $ 85.37 $ 89.64 $ 94.12 $ 98.83 $ 103.77 Emergency Response Coordinator $ 8,646.20 $ 9,078.52 $ 9,532.45 $ 10,009.07 $ 10,509.51 $ 49.88 $ 52.38 $ 54.99 $ 57.74 $ 60.63 Finance Manager $ 10,713.05 $ 11,259.35 $ 11,834.40 $ 12,438.22 $ 13,072.09 $ 61.81 $ 64.96 $ 68.28 $ 71.76 $ 75.42 Fire Marshal/Division Chief $ 12,757.88 $ 13,395.77 $ 14,065.56 $ 14,768.84 $ 15,507.28 $ 73.60 $ 77.28 $ 81.15 $ 85.20 $ 89.47 Information Technology Manager $ 11,486.68 $ 12,061.02 $ 12,664.07 $ 13,297.28 $ 13,962.15 $ 66.27 $ 69.58 $ 73.06 $ 76.72 $ 80.55 Lead Critical Intervention Specialist $ 10,667.92 $ 11,229.39 $ 11,820.41 $ 12,411.43 $ 13,032.01 $ 61.55 $ 64.78 $ 68.19 $ 71.60 $ 75.18 Parks and Open Space Superintendent $ 9,890.38 $ 10,384.90 $ 10,904.15 $ 11,449.35 $ 12,021.82 $ 57.06 $ 59.91 $ 62.91 $ 66.05 $ 69.36 Police Lieutenant $ 13,137.76 $ 13,794.65 $ 14,484.37 $ 15,208.60 $ 15,968.66 $ 75.79 $ 79.58 $ 83.56 $ 87.74 $ 92.13 Principal Civil Engineer $ 12,225.17 $ 12,838.13 $ 13,479.86 $ 14,152.92 $ 14,861.29 $ 70.53 $ 74.07 $ 77.77 $ 81.65 $ 85.74 Project Manager $ 8,766.94 $ 9,213.91 $ 9,683.24 $ 10,177.40 $ 10,696.38 $ 50.58 $ 53.16 $ 55.86 $ 58.72 $ 61.71 Public Information and Community Engagement Officer $ 9,166.67 $ 9,625.00 $ 10,106.25 $ 10,611.56 $ 11,142.14 $ 52.88 $ 55.53 $ 58.31 $ 61.22 $ 64.28 Recreation Manager $ 9,503.51 $ 9,978.70 $ 10,477.63 $ 11,001.51 $ 11,551.58 $ 54.83 $ 57.57 $ 60.45 $ 63.47 $ 66.64 Recreation Supervisor $ 7,414.31 $ 7,792.02 $ 8,189.32 $ 8,607.55 $ 9,046.68 $ 42.77 $ 44.95 $ 47.25 $ 49.66 $ 52.19 Senior Civil Engineer $ 10,820.21 $ 11,373.05 $ 11,952.02 $ 12,562.37 $ 13,202.78 $ 62.42 $ 65.61 $ 68.95 $ 72.48 $ 76.17 Senior Planner $ 10,713.05 $ 11,259.34 $ 11,834.40 $ 12,438.22 $ 13,072.09 $ 61.81 $ 64.96 $ 68.28 $ 71.76 $ 75.42 Monthly Salary  Hourly Equivalents
Resolution No. 27-2026
Exhibit A
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Senior Project Manager $ 10,441.51 $ 10,975.00 $ 11,533.70 $ 12,122.70 $ 12,740.69 $ 60.24 $ 63.32 $ 66.54 $ 69.94 $ 73.50 Utilities Engineering Manager $ 13,474.39 $ 14,148.11 $ 14,855.51 $ 15,598.29 $ 16,378.19 $ 77.74 $ 81.62 $ 85.70 $ 89.99 $ 94.49 Water and Wastewater Operations Superintendent $ 11,894.81 $ 12,489.55 $ 13,114.03 $ 13,769.72 $ 14,458.21 $ 68.62 $ 72.06 $ 75.66 $ 79.44 $ 83.41 Utility Maintenance Superintendent $ 11,259.80 $ 11,822.77 $ 12,413.93 $ 13,035.76 $ 13,686.37 $ 64.96 $ 68.21 $ 71.62 $ 75.21 $ 78.96 Utility Safety Compliance Coordinator $ 8,264.85 $ 8,678.09 $ 9,112.00 $ 9,567.58 $ 10,045.97 $ 47.68 $ 50.07 $ 52.57 $ 55.20 $ 57.96 HBG POLICE OFFICERS ASSOC   A step B step  C step  D step E step A step B step C step D step E step Police Dispatcher I $ 6,045.93 $ 6,354.36 $ 6,677.20 $ 7,018.32 $ 7,369.22 $ 34.88 $ 36.66 $ 38.52 $ 40.49 $ 42.51 Police Dispatcher II $ 6,354.36 $ 6,677.18 $ 7,018.31 $ 7,369.87 $ 7,738.37 $ 36.66 $ 38.52 $ 40.49 $ 42.52 $ 44.64 Police Dispatch Supervisor $ 8,937.82 $ 9,384.71 $ 9,853.95 $ 10,346.64 $ 10,863.97 $ 51.56 $ 54.14 $ 56.85 $ 59.69 $ 62.68 Police Officer $ 8,261.85 $ 8,674.96 $ 9,108.69 $ 9,564.14 $ 10,042.33 $ 47.66 $ 50.05 $ 52.55 $ 55.18 $ 57.94 Police Officer Recruit $ 7,848.75 $ 8,241.21 $ 8,653.26 $ 9,085.93 $ 9,540.22 $ 45.28 $ 47.55 $ 49.92 $ 52.42 $ 55.04 Police Records Technician $ 6,008.86 $ 6,314.15 $ 6,636.92 $ 6,975.81 $ 7,324.60 $ 34.67 $ 36.43 $ 38.29 $ 40.25 $ 42.26 Police Records Supervisor $ 7,432.38 $ 7,804.00 $ 8,194.21 $ 8,603.92 $ 9,034.11 $ 42.88 $ 45.02 $ 47.27 $ 49.64 $ 52.12 Police Sergeant $ 10,340.70 $ 10,857.76 $ 11,400.63 $ 11,970.65 $ 12,569.19 $ 59.66 $ 62.64 $ 65.77 $ 69.06 $ 72.51 Police Technician $ 5,278.60 $ 5,548.91 $ 5,831.34 $ 6,128.56 $ 6,434.96 $ 30.45 $ 32.01 $ 33.64 $ 35.36 $ 37.12 INT'L ASSOC OF FIREFIGHTERS     A step B step  C step  D step E step A step B step C step D step E step Fire Captain (56 hr. work week) $ 9,404.25 $ 9,883.14 $ 10,387.58 $ 10,917.57 $ 11,474.50 $ 38.75 $ 40.73 $ 42.81 $ 44.99 $ 47.29 Fire Engineer (56 hr. work week) $ 8,505.79 $ 8,939.42 $ 9,395.64 $ 9,874.47 $ 10,377.30 $ 35.05 $ 36.84 $ 38.72 $ 40.69 $ 42.76 Fire Engineer (40 hr.work week) $ 8,505.79 $ 8,939.42 $ 9,395.64 $ 9,874.47 $ 10,377.30 $ 49.07 $ 51.57 $ 54.21 $ 56.97 $ 59.87 Firefighter (56 hr. work week) $ 7,706.61 $ 8,100.75 $ 8,513.73 $ 8,948.23 $ 9,404.25 $ 31.76 $ 33.38 $ 35.08 $ 36.87 $ 38.75 Firefighter (40 hr. work week) $ 7,706.61 $ 8,100.75 $ 8,513.73 $ 8,948.23 $ 9,404.25 $ 44.46 $ 46.74 $ 49.12 $ 51.62 $ 54.26 Fire Inspector (40 hr. work week) $ 8,939.44 $ 9,395.64 $ 9,874.45 $ 10,377.29 $ 10,906.97 $ 51.57 $ 54.21 $ 56.97 $ 59.87 $ 62.92 INT'L BROTHERHOOD OF ELECTRICAL WORKERS (IBEW)  A step B step C step D step E step A step B step C step D step E step Accounting Assistant I $ 4,954.79 $ 5,202.53 $ 5,462.67 $ 5,735.81 $ 6,022.59 $ 28.59 $ 30.01 $ 31.52 $ 33.09 $ 34.75 Accounting Assistant II $ 5,430.13 $ 5,715.00 $ 5,998.30 $ 6,304.55 $ 6,625.11 $ 31.33 $ 32.97 $ 34.61 $ 36.37 $ 38.22 Accounting Technician $ 6,304.55 $ 6,625.11 $ 6,963.92 $ 7,318.36 $ 7,692.38 $ 36.37 $ 38.22 $ 40.18 $ 42.22 $ 44.38 Administrative Technician $ 6,963.92 $ 7,318.38 $ 7,692.37 $ 8,084.60 $ 8,496.40 $ 40.18 $ 42.22 $ 44.38 $ 46.64 $ 49.02 Assistant Planner $ 6,852.03 $ 7,194.64 $ 7,554.38 $ 7,932.10 $ 8,328.69 $ 39.53 $ 41.51 $ 43.58 $ 45.76 $ 48.05 Building Inspector I $ 7,769.26 $ 8,165.40 $ 8,582.40 $ 9,020.25 $ 9,480.27 $ 44.82 $ 47.11 $ 49.51 $ 52.04 $ 54.69 Building Inspector II $ 8,247.50 $ 8,668.41 $ 9,110.18 $ 9,574.09 $ 10,062.76 $ 47.58 $ 50.01 $ 52.56 $ 55.24 $ 58.05 Building Maintenance Technician I $ 5,529.41 $ 5,805.89 $ 6,096.19 $ 6,400.99 $ 6,721.04 $ 31.90 $ 33.50 $ 35.17 $ 36.93 $ 38.78 Building Maintenance Technician II $ 6,058.25 $ 6,367.08 $ 6,691.57 $ 7,032.98 $ 7,392.65 $ 34.95 $ 36.73 $ 38.61 $ 40.57 $ 42.65 Development Services Technician I $ 6,358.12 $ 6,676.02 $ 7,009.83 $ 7,360.32 $ 7,728.33 $ 36.68 $ 38.52 $ 40.44 $ 42.46 $ 44.59 Development Services Technician II $ 6,963.92 $ 7,318.38 $ 7,692.37 $ 8,084.60 $ 8,496.40 $ 40.18 $ 42.22 $ 44.38 $ 46.64 $ 49.02 Electric Engineering Technician I $ 8,205.80 $ 8,616.29 $ 9,047.62 $ 9,499.81 $ 9,975.46 $ 47.34 $ 49.71 $ 52.20 $ 54.81 $ 57.55 Electric Engineering Technician II $ 8,625.41 $ 9,056.74 $ 9,510.24 $ 9,985.88 $ 10,484.97 $ 49.76 $ 52.25 $ 54.87 $ 57.61 $ 60.49 Electric Coordinator/Inspector $ 9,601.95 $ 10,082.05 $ 10,586.16 $ 11,115.46 $ 11,671.23 $ 55.40 $ 58.17 $ 61.07 $ 64.13 $ 67.33 Electric Line Foreman $ 12,823.05 $ 13,464.21 $ 14,137.39 $ 14,844.29 $ 15,586.50 $ 73.98 $ 77.68 $ 81.56 $ 85.64 $ 89.92 Electric Materials Technician $ 7,718.09 $ 8,104.01 $ 8,509.20 $ 8,934.65 $ 9,381.39 $ 44.53 $ 46.75 $ 49.09 $ 51.55 $ 54.12 Electric Meter Technician $ 9,549.09 $ 10,026.75 $ 10,527.73 $ 11,054.82 $ 11,607.96 $ 55.09 $ 57.85 $ 60.74 $ 63.78 $ 66.97 Electric Meter Technician- Apprentice $ 7,202.45 $ 7,562.57 $ 7,940.70 $ 8,337.74 $ 8,754.63 $ 41.55 $ 43.63 $ 45.81 $ 48.10 $ 50.51 Engineering Technician $ 6,963.92 $ 7,318.38 $ 7,692.37 $ 8,084.60 $ 8,496.40 $ 40.18 $ 42.22 $ 44.38 $ 46.64 $ 49.02 Facility Worker $ 4,964.92 $ 5,217.73 $ 5,484.87 $ 5,763.74 $ 6,058.25 $ 28.64 $ 30.10 $ 31.64 $ 33.25 $ 34.95 Resolution No. 27-2026
Exhibit A
352
Item 8.b
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Fleet Mechanic $ 7,615.49 $ 8,005.12 $ 8,413.00 $ 8,841.72 $ 9,292.62 $ 43.94 $ 46.18 $ 48.54 $ 51.01 $ 53.61 Geographic Information System Technician $ 7,938.74 $ 8,336.21 $ 8,753.55 $ 9,190.76 $ 9,650.49 $ 45.80 $ 48.09 $ 50.50 $ 53.02 $ 55.68 Industrial Electrician $ 9,381.71 $ 9,850.80 $ 10,343.32 $ 10,860.49 $ 11,403.53 $ 54.13 $ 56.83 $ 59.67 $ 62.66 $ 65.79 Industrial Mechanic $ 7,653.27 $ 8,036.40 $ 8,437.76 $ 8,859.98 $ 9,303.03 $ 44.15 $ 46.36 $ 48.68 $ 51.12 $ 53.67 Instrumentation Technician $ 9,381.71 $ 9,850.80 $ 10,343.32 $ 10,860.49 $ 11,403.53 $ 54.13 $ 56.83 $ 59.67 $ 62.66 $ 65.79 Information Technology Engineering Specialist $ 8,065.23 $ 8,468.49 $ 8,891.93 $ 9,336.52 $ 9,803.35 $ 46.53 $ 48.86 $ 51.30 $ 53.86 $ 56.56 Laboratory Analyst $ 7,839.77 $ 8,231.76 $ 8,643.35 $ 9,075.51 $ 9,529.29 $ 45.23 $ 47.49 $ 49.87 $ 52.36 $ 54.98 Lineworker/Troubleshooter $ 11,605.66 $ 12,185.95 $ 12,795.24 $ 13,435.02 $ 14,106.75 $ 66.96 $ 70.30 $ 73.82 $ 77.51 $ 81.39 Lineworker/Troubleshooter Apprentice $ 8,434.17 $ 8,855.89 $ 9,298.67 $ 9,763.59 $ 10,251.78 $ 48.66 $ 51.09 $ 53.65 $ 56.33 $ 59.14 Mechanic - Equipment Service Writer $ 8,754.43 $ 9,201.40 $ 9,670.52 $ 10,163.11 $ 10,681.74 $ 50.51 $ 53.09 $ 55.79 $ 58.63 $ 61.63 Office Assistant I $ 4,808.72 $ 5,049.16 $ 5,301.62 $ 5,566.70 $ 5,845.03 $ 27.74 $ 29.13 $ 30.59 $ 32.12 $ 33.72 Office Assistant II $ 5,269.86 $ 5,539.60 $ 5,822.38 $ 6,118.19 $ 6,432.24 $ 30.40 $ 31.96 $ 33.59 $ 35.30 $ 37.11 Park Maintenance Worker I $ 5,430.13 $ 5,707.71 $ 5,998.30 $ 6,304.55 $ 6,625.11 $ 31.33 $ 32.93 $ 34.61 $ 36.37 $ 38.22 Park Maintenance Worker II $ 5,938.36 $ 6,241.98 $ 6,559.96 $ 6,894.85 $ 7,246.70 $ 34.26 $ 36.01 $ 37.85 $ 39.78 $ 41.81 Park Maintenance Foreman $ 6,691.57 $ 7,032.98 $ 7,392.65 $ 7,769.26 $ 8,165.40 $ 38.61 $ 40.57 $ 42.65 $ 44.82 $ 47.11 Payroll Technician $ 6,963.92 $ 7,318.38 $ 7,692.37 $ 8,084.60 $ 8,496.40 $ 40.18 $ 42.22 $ 44.38 $ 46.64 $ 49.02 Public Works and Utilities Materials Technician $ 6,691.57 $ 7,032.98 $ 7,392.65 $ 7,769.26 $ 8,165.41 $ 38.61 $ 40.57 $ 42.65 $ 44.82 $ 47.11 Public Works Field Technician $ 7,769.26 $ 8,165.40 $ 8,582.40 $ 9,020.25 $ 9,480.27 $ 44.82 $ 47.11 $ 49.51 $ 52.04 $ 54.69 Public Works Inspector $ 7,769.26 $ 8,165.40 $ 8,582.40 $ 9,020.25 $ 9,480.27 $ 44.82 $ 47.11 $ 49.51 $ 52.04 $ 54.69 Recreation Coordinator I $ 4,817.39 $ 5,058.24 $ 5,311.17 $ 5,576.73 $ 5,855.57 $ 27.79 $ 29.18 $ 30.64 $ 32.17 $ 33.78 Recreation Coordinator II $ 5,322.71 $ 5,588.83 $ 5,868.27 $ 6,161.70 $ 6,469.78 $ 30.71 $ 32.24 $ 33.86 $ 35.55 $ 37.33 Senior Accounting Assistant $ 5,998.30 $ 6,304.55 $ 6,625.11 $ 6,963.92 $ 7,318.38 $ 34.61 $ 36.37 $ 38.22 $ 40.18 $ 42.22 Senior Building Inspector $ 9,574.09 $ 10,062.76 $ 10,576.20 $ 11,115.70 $ 11,682.67 $ 55.24 $ 58.05 $ 61.02 $ 64.13 $ 67.40 Senior Electric Engineering Technician $ 10,161.05 $ 10,669.10 $ 11,202.57 $ 11,762.69 $ 12,350.84 $ 58.62 $ 61.55 $ 64.63 $ 67.86 $ 71.25 Senior Laboratory Analyst $ 8,662.14 $ 9,095.25 $ 9,549.99 $ 10,027.51 $ 10,528.88 $ 49.97 $ 52.47 $ 55.10 $ 57.85 $ 60.74 Senior Public Works Inspector $ 9,574.09 $ 10,062.76 $ 10,576.20 $ 11,115.70 $ 11,682.56 $ 55.24 $ 58.05 $ 61.02 $ 64.13 $ 67.40 Utility Conservation Analyst $ 8,576.14 $ 9,004.97 $ 9,455.21 $ 9,927.97 $ 10,424.37 $ 49.48 $ 51.95 $ 54.55 $ 57.28 $ 60.14 Utility Maintenance Foreman $ 7,025.06 $ 7,376.32 $ 7,745.14 $ 8,132.26 $ 8,539.03 $ 40.53 $ 42.56 $ 44.68 $ 46.92 $ 49.26 Utility Operator $ 8,582.40 $ 9,020.25 $ 9,480.27 $ 9,963.73 $ 10,471.95 $ 49.51 $ 52.04 $ 54.69 $ 57.48 $ 60.42 Utility Operator-In-Training $ 7,295.04 $ 7,667.21 $ 8,058.22 $ 8,469.17 $ 8,901.15 $ 42.09 $ 44.23 $ 46.49 $ 48.86 $ 51.35 Utility Worker I $ 5,430.13 $ 5,715.00 $ 5,998.30 $ 6,304.55 $ 6,625.11 $ 31.33 $ 32.97 $ 34.61 $ 36.37 $ 38.22 Utility Worker II $ 6,358.12 $ 6,676.02 $ 7,009.83 $ 7,360.32 $ 7,728.34 $ 36.68 $ 38.52 $ 40.44 $ 42.46 $ 44.59 Wastewater Operations Foreman $ 9,480.27 $ 9,963.73 $ 10,471.95 $ 11,006.24 $ 11,567.87 $ 54.69 $ 57.48 $ 60.42 $ 63.50 $ 66.74 Water Operations Foreman $ 9,480.27 $ 9,963.73 $ 10,471.95 $ 11,006.24 $ 11,567.87 $ 54.69 $ 57.48 $ 60.42 $ 63.50 $ 66.74 Resolution No. 27-2026
Exhibit A
353
Item 8.b
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04.06.2026
Department Bargaining Group
Authorized
Positions
City Manager's Office
City Manager Executive Management 1
Assistant City Manager Executive Management 1
Chief Information and Security Officer Mid-Management 1 Public Information and Community Engagement Officer Mid-Management 1 City Clerk/Public Information Officer Mid-Management 1
Chief Human Resources Officer Mid-Management 1
Central Services Manager Mid-Management 1
Human Resources Analyst Mid-Management 1
Mechanic - Equipment Service Writer IBEW 1
Administrative Analyst II Mid-Management
Administrative Analyst I Mid-Management
Geographic Information System Technician IBEW 1
Information Technology Engineering Specialist IBEW 2
Fleet Mechanic IBEW 1
Administrative Technician IBEW 1
Building Maintenance Technician II IBEW
Building Maintenance Technician I IBEW
Housing
Housing Director Executive Management 1
Administrative Analyst II Mid-Management
Administrative Analyst I Mid-Management
Finance
Finance Director Executive Management 1
Finance Manager Mid-Management 1
Business Services Manager Mid-Management 1
Accountant Mid-Management 2
Payroll Technician IBEW 1
Senior Accounting Assistant IBEW 1
Accounting Assistant II IBEW
Accounting Assistant I IBEW
Planning & Building
Community Development Director Executive Management 1
Building Official Mid-Management 1
Senior Planner Mid-Management 1
Senior Building Inspector IBEW 1
Building Inspector II IBEW
Building Inspector I
Development Services Technician II IBEW
1 1
1 3
1 2
Resolution No. 27-2026
Exhibit B
354
Item 8.b
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Development Services Technician I IBEW
Administrative Technician IBEW 1
Assistant Planner IBEW 1
Community Services
Community Services Director Executive Management 1
Parks and Open Space Superintendent Mid-Management 1
Recreation Manager Mid-Management 1
Project Manager Mid-Management 1
Recreation Supervisor Mid-Management 3
Park Maintenance Foreman IBEW 1
Park Maintenance Worker II IBEW
Park Maintenance Worker I IBEW
Office Assistant II IBEW 1
Recreation Coordinator II IBEW
Recreation Coordinator I IBEW
Facility Worker IBEW 1
Office Assistant I IBEW 1
Police
Police Chief Executive Management 1
Police Lieutenant Mid-Management 1
Police Sergeant HPOA 5
Lead Critical Intervention Specialist Mid-Management 1
Emergency Response Coordinator Mid-Management 1
Police Dispatch Supervisor HPOA 1
Police Officer HPOA 11
Police Records Supervisor HPOA 1
Police Dispatcher II HPOA
Police Dispatcher I HPOA
Police Technician HPOA 1
Fire
Fire Chief Executive Management 1
Fire Marshal/Division Chief Mid-Management 1
Fire Captain IAFF 3
Fire Inspector IAFF 2
Fire Engineer IAFF 3
Fire Fighter IAFF 3
Office Assistant II IBEW
Office Assistant I IBEW
Public Works
Public Works Director Executive Management 1
2 4
2 5
1 Resolution No. 27-2026
Exhibit B
355
Item 8.b
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Deputy Director of Water and Wastewater Mid-Management 1 Principal Civil Engineer Mid-Management 2
Utility Maintenance Superintendent Mid-Management 1
Senior Project Manager Mid-Management 1
Senior Public Works Inspector IBEW 1
Project Manager Mid-Management 1
Public Works Inspector IBEW 1
Utility Maintenance Foreman IBEW 2
Engineering Technician IBEW 2
Administrative Technician IBEW 1
Public Works and Utilities Materials Technician IBEW 1
Utility Worker II IBEW
Utility Worker I IBEW
Utility Engineering Manager Mid-Management 1
Water and Wastewater Operations Superintendent Mid-Management 1 Wastewater Operations Foreman IBEW 1
Water Operations Foreman IBEW 1
Industrial Electrician IBEW 1
Instrumentation Technician IBEW 2
Senior Laboratory Analyst IBEW 1
Industrial Mechanic IBEW 2
Utility Operator IBEW 4
Electric
Electric Director Executive Management 1
Electric Operations Superintendent Mid-Management 1
Electric Line Foreman IBEW 1
Lineworker/Troubleshooter IBEW
Lineworker/Troubleshooter Apprentice IBEW
Senior Electric Engineering Technician IBEW 2
Electric Meter Technician IBEW 1
Electric Coordinator/Inspector IBEW 1
Utility Conservation Analyst IBEW 1
Utility Compliance and Safety Coordinator Mid-Management 1 Electric Materials Technician IBEW 1
Administrative Technician IBEW 1
Total Full-time Employees 148
5 7
Resolution No. 27-2026
Exhibit B
356
Item 8.b
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CITY OF HEALDSBURG

CITY COUNCIL AGENDA STAFF REPORT
MEETING DATE: June 1, 2026
SUBJECT: City Council Subcommittee to Interview Planning Commission Applicants PREPARED BY: Raina Allan, City Clerk
STRATEGIC INITIATIVE(S):
- Provide Effective Governance
RECOMMENDED ACTION(S):

Appoint a City Council Subcommittee to interview the applicants for the Planning Commission.

COMMUNITY ENGAGEMENT/OUTREACH:

The Planning Commission vacancy is being published in the Press Democrat and the Healdsburg Tribune on May 21, 2026, May 28, 2026 and June 4, 2026. Information on the vacancy is also being posted on the City’s social media Platforms and the website.

BACKGROUND:

On June 30, 2026, three Planning Commission terms will expire. Staff has opened the recruitment for those three seats. At the time of this posting, staff has received two applications for the Planning Commission. The deadline to apply for the Commission is June 4, 2026.

DISCUSSION/ANALYSIS:

Staff recommends the City Council form a subcommittee to interview the Planning Commission applicants and make recommendations to the full Council at the June 15, 2026, meeting, on the best qualified candidates to fill the positions.

ENVIRONMENTAL STEWARDSHIP:

Not Applicable.

ALTERNATIVES:

The City Council could pursue an alternative plan to make the appointments without the formation of a subcommittee.

FISCAL IMPACT:

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There is no fiscal impact related to the proposed action.

ENVIRONMENTAL ANALYSIS:

Pursuant to Title 14, the California Code of Regulations, Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”) guidelines, the proposed action is an administrative activity of the City that will not result in direct or indirect physical changes to the environment.

ATTACHMENT(S):

Item 8.c
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5/27/2026 – Page 1

CITY OF HEALDSBURG

CITY COUNCIL FUTURE AGENDA ITEMS
(NOTE: The schedule is tentative and subject to change pending final publication and posting of the City Council meeting agenda) June 15, 2026 Parks Make Life Better Month Proclamation Employee Anniversaries - Erica Christopherson (5 years) Fire Services Contract
PSA with Child Parent Institute for Juvenile Diversion
PSA with Humane Society of Sonoma County for Animal Care and Control Services Annual Update to the City’s Utility Wildfire Mitigation Plan Villa Chanticleer Modernization Project Architectural Services Contract Amendment Physical Security Plan for City Electric Facilities
Approve PSA and budget adjustment for consultant assistance to establish quiet zones Swim Center Joint Use Agreement
Agreement eSolutionsOne Inc. for ServiceNow Hardware Asset Management Development Services Notice of Completion – Victory Studios
L&M Quarterly Report
Terms of Service for Reach For Home
Consolidating the General Municipal Election with the Statewide General Election MOU Extension with Magical Bridge
Approve the Urban Water Management Plan
Ordinance related to water shortage contingency plan – 2nd Reading Landscaping and Lighting Assessment District
Weed Abatement Public Hearing
Multicultural Center: Painting Contract Award and Funding Commitments from Corazon and Healthcare Foundation
Breathless Wines – Pedicab Operation
Standards of Cover Study- Fire Department Service, Response and Staffing Review Appointment of Library Commissioner
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5/27/2026 – Page 2
August 3, 2026
First Amendment to Amended and Restated Joint Exercise of Powers Agreement for Sonoma County Waste Management Agency
Magical Bridge Foundation: Design/Construction Agreement and Funding Commitment Percent for Arts Update
August 17, 2026
Farmers’ Market Agreement
Badger Park Schematic Design Contract
September 8, 2026
(Tuesday) Contract Amendment to Housing Land Trust of the North Bay September 21, 2026
Agriculture & Open Space District Agreements for Laura Fish Somersal Park and Badger Park (NOTE: The schedule is tentative and subject to change pending final publication and posting of the City Council meeting agenda) Item 12.a
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