Indian Wells City Council
May 18, 2023

CAPITAL IMPROVEMENgq1R15ittl ting Agenda May 18, 2023
1c17. City of Indian Wells FY 2024 thru FY 2029
Project Name Civic Center Paving/Maintenance Yard Improvements Project # 2023 -EQUIP -316-004
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Facilities & Equipment Type Start Date
City Council Goal Useful Life End Date
Status
ONew Project 0✓ Continuing Project
El Construction E Preliminary Design
Description & Justification
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 617,750.00
The Civic Center parking lots are due for rehabilitation. In addition, the maintenance yard functionality has been changed by solar installation. Reorganization of the yard would improve storage bays, increase proper drainage, and prevent contamination of retained materials.

Expenditures
Planning/Design
Construction $
Administration/Inspection $
Contingency $
FY 2024 FY 2025
FY 2026
FY 2027 FY 2028 Total
TOTAL
$ 120,000.00 $
- $
- $ - $ - $ 120,000.00
$ 450,000.00
- $ - $ - $ 2,750.00
- $ - $ - $ 45,000.00
$ 617,750.00
$ 450,000.00 $
$ $
2,750.00 $
- $
$122,750 $
45,000.00
495,000.00
Funding Sources FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Capital Improvement $ 122,750.00 $ 495,000.00 $ - $ - $ - $ 617,750.00 $ - $ - $ - $ - $ - $
$ - $
TOTAL $ 122,750.00 $ 495,000.00
$ 617,750.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
V City of Indian Wells FY 2024 thru FY 2029
Project Name SCE Charge Ready Program
Project # 2023 -EQUIP -316-013
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Facilities & Equipment Type Start Date
City Council Goal Useful Life End Date
Status
❑x New Project ❑ Continuing Project ❑ Preliminary Budget ❑x Construction ❑ Preliminary Design ❑ Final Design
Description & Justification
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 300,000.00
The State of California has provided funding to utilities to help offset the cost of Electric Vehicle Charging Station Installations. SCE's Charge Ready program provides infrastructure for electric vehicle charging at no cost to the City. SCE will design and construct all underground services necessary to install charging stations at City Hall. The City will provide the funding for the electric vehicle chargers.

Expenditures
Planning/Design
Construction $ 300,000.00 $ - $ - $ - $ - $ 300,000.00
Administration/Inspection
FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
Contingency
$ - $
Funding Sources
Capital lmprovement $ 300,000.00 $ - $ - $ $ - $ 300,000.00 TOTAL $ 300,000.00 $ - $ - $ - $ - $ 300,000.00
FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
$ - $ - $ - $ - $ - $
TOTAL $ 300,000.00 $
$ 300,000.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
V City of Indian Wells FY 2024 thru FY 2029
Project Name City Hall Restrooms
Project # 2023 -EQUIP -316-006
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Facilities & Equipment Type Start Date
City Council Goal Useful Life End Date
Status
❑x New Project ❑ Continuing Project ❑X Preliminary Budget ❑x Construction ❑J( Preliminary Design ❑ Final Design
Description & Justification
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 400,000.00
the restrooms within the City Hall building are dated, and in need of some repair. This project would remodel and refresh all restrooms nside of City Hall.

Expenditures
Planning/Design
Construction $ - $ - $ 300,000.00 $ - $ - $ 300,000.00
Administration/Inspection
Contingency
FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
$ $ 100,000.00 $ - $ - $ - $ 100,000.00
Funding Sources
TOTAL $ - $ 100,000.00 $ 300,000.00 $ - $ - $ 400,000.00 FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
Capital Improvement
- $ 100,000.00 $ 300,000.00 $
$ $ 400,000.00
$ - $ - $ - $ - $ - $
TOTAL $
- $ 100,000.00 $ 300,000.00 $
$ 400,000.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
V City of Indian Wells FY 2024 thru FY 2029
Project Name Replace City Hall Ductwork
Project # 2023 -EQUIP -316-008
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Facilities & Equipment Type Start Date
City Council Goal Useful Life End Date
Status
❑x New Project D Continuing Project ❑X Preliminary Budget ❑x Construction ❑J( Preliminary Design ❑ Final Design
Description & Justification
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 250,000.00
As part of the Energy Effciency project, HVAC units and wall thermostats were replaced at City Hall. With the new units came the realization that the HVAC zoning and ducting orientation needed to be repaired and reworked from the many updates to the layout at City Hall. In addition, the ducting in some areas has detoriated, leading to a loss of cooling/heating within the ceiling.

Expenditures
Planning/Design $ 40,000.00 $ - $ - $ - $ - $ 40,000.00 Construction $ 210,000.00 $ - $ - $ - $ - $ 210,000.00
Administration/Inspection
FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
$ - $
Contingency
$ - $
TOTAL $ 250,000.00 $
$ 250,000.00
Funding Sources FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Bond
$ 250,000.00 $
$ - $ - $ - $ - $ - $
$ $ $ $ 250,000.00
TOTAL $ 250,000.00 $
$ 250,000.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
V City of Indian Wells FY 2024 thru FY 2029
Project Name Update City Hall Aerials
Project # 2023 -EQUIP -316-011
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Facilities & Equipment Type Start Date
City Council Goal Useful Life End Date
Status
❑x New Project ❑ Continuing Project
❑ Construction ❑ Preliminary Design
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Description & Justification
Total Project Cost: $ 20,000.00
Beautiful aerial photographs adorn the walls within City Hall. Some are meant to demonstrate historical images, while others are intended to provide current reference. Updating the photographs with current aerial images will showcase the City as it reaches build out, and provide excellent reference points during meetings or research.

Expenditures
Planning/Design
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
Construction
$ - $ 20,000.00 $
$ 20,000.00
Administration/Inspection
$ - $
Contingency
$ - $
$ 20,000.00 $ - $ - $ - $ 20,000.00
TOTAL
Funding Sources FY 2024
Capital Improvement
FY 2025 FY 2026 FY 2027 FY 2028 Total
$ $ 20,000.00 $ - $ $ - $ 20,000.00
$
TOTAL $
- $ 20,000.00 $
- $ 20,000.00

Council Meeting Agenda May 18, 2023
Capital Improvement
Program
Storm Drain System

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
City of Indian Wells FY 2024 thru FY 2029
Project Name Whitewater Channel East Drop Structure
Project # 2023 -Drain -316-001
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Storm Drain Type Start Date
City Council Goal Useful Life End Date
Status
❑ New Project 0 Continuing Project
CI Construction 0 Preliminary Design
Description & Justification
O Preliminary Budget
O Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 1,452,017.00
Within the boundaries of the City's Golf Course, the Whitewater Channel has sustained damage to both of it's drop structures from previous storm events. The East Drop Structure design is pending with CVWD, and application has been made to FEMA for funds to construct.

Expenditures
Planning/Design
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
Construction
$ 1,452,017.00 $
- $
$ - $ - $ 1,452,017.00
Administration/Inspection
Contingency
$ - $ - $ - $ - $ -
TOTAL
$1,452,017 $ - $ - $ - $ - $ 1,452,017.00
Funding Sources FY 2024
FEMA $ 1,452,017.00 $ $ $ $ - $ 1,452,017.00
FY 2025 FY 2026 FY 2027 FY 2028 Total
$ -
TOTAL $ 1,452,017.00 $
- $
- $
- $
- $ 1,452,017.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
City of Indian Wells FY 2024 thru FY 2029
Project Name Whitewater Channel West Drop Structure
Project # 2023 -Drain -316-002
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Storm Drain Type Start Date
City Council Goal Useful Life End Date
Status
❑ New Project 0 Continuing Project
El Construction ❑ Preliminary Design
Description & Justification
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 1,484,368.00
Within the boundaries of the City's Golf Course, the Whitewater Channel has sustained damage to both of it's drop structures from previous storm events. The West Drop Structure design is complete, and the City is waiting on funding from FEMA to construct.

Expenditures
Planning/Design
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
Construction
$ 1,484,368.00 $
- $
$ - $ - $ 1,484,368.00
Administration/Inspection
Contingency
$ - $ - $ - $ - $ - $
TOTAL
$1,484,368 $ - $ - $ - $ - $ 1,484,368.00
Funding Sources FY 2024
FY 2025 FY 2026 FY 2027 FY 2028 Total
FEMA
$ 1,484,368.00 $ $ $ $ - $ 1,484,368.00
$ - $
TOTAL $ 1,484,368.00 $
- $
- $ 1,484,368.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
City of Indian Wells FY 2024 thru FY 2029
Project Name Low Flow Channel
Project # 2023 -Drain -316-005
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Storm Drain Type Start Date
City Council Goal Useful Life End Date
Status
E New Project 0 Continuing Project
El Construction ❑ Preliminary Design
Description & Justification
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 600,000.00
The Whitewater Channel conveys storm flows through the Indian Wells Golf Resort. When not conveying water from a large storm event, smaller flows stay within the low flow channel, a concrete ribbon down the center of the channel. This project will enlarge the width of the channel. The wider channel will allow for increaseed capacity, and allow for easier clean up with equipment.

Expenditures
Planning/Design
Construction
Administration/Inspection
Contingency
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
$ 75,000.00 $ - $
$ - $ 525,000.00 $
$ - $ - $
$ $ - $
TOTAL $75,000 $ 525,000.00 $
Funding Sources FY 2024
$ 75,000.00
$ 525,000.00
$ 600,000.00
FY 2025 FY 2026 FY 2027 FY 2028 Total
DWR
$ 75,000.00 $ 525,000.00 $ $ $ - $ 600,000.00
$ - $
TOTAL
$ 75,000.00 $ 525,000.00 $
- $ 600,000.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
V City of Indian Wells FY 2024 thru FY 2029
Project Name
Project #
Location
Plan Reference
Category
City Council Goal
Status
0 New Project
❑x Construction
Whitewater Channel Slope Stabilization
2023 -DRAIN -316-006
Department Public Works Priority
Contact Public Works Mgr Jurisdiction
Storm Drain Type Start Date
Useful Life End Date
❑x Continuing Project 0 Preliminary Budget
❑ Preliminary Design 0 Final Design
Description & Justification
❑ Final Budget
0 Env. ROW
Total Project Cost: $ 8,000,000.00
The project will line the Whitewater Channel downstream from the City's golf course. Concrete channel lining will be installed on the north and south sides of the channel slopes. Scour will be mitigated by deepened footings along the base of the wall. The channel lining will protect the slopes from erosion, lessening the impacts of sediment transport downstream from the project site.

Expenditures
Planning/Design $ 180,000.00 $ - $
Construction $ 1,810,000.00 $ 5,840,000.00 $
Administration/Inspection $ 10,000.00 $ 10,000.00 $
Contingency $ - $ 150,000.00 $
FY 2024 FY 2025
FY 2026 FY 2027
FY 2028 Total
$ - $
$ - $
$ - $
$ - $
$ $
Funding Sources
Housing Authority $ 2,000,000.00 $ - $
Community Funding $ - $ 2,000,000.00 $
CVWD $ - $ 1,000,000.00 $
Capital Improvement $ - $ 3,000,000.00 $
TOTAL $ 2,000,000.00 $ 6,000,000.00 $
TOTAL $ 2,000,000.00 $ 6,000,000.00 $
FY 2024 FY 2025
FY 2026 FY 2027
$ 180,000.00
$ 7,650,000.00
$ 20,000.00
$ 150,000.00
$ 8,000,000.00
FY 2028 Total
$
$ 2,000,000.00
$ 2,000,000.00
$ 1,000,000.00
$ 3,000,000.00
$ 8,000,000.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
City of Indian Wells FY 2024 thru FY 2029
Project Name Trash Capture Device Installation
Project # 2023 -Drain -316-003
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Storm Drain Type Start Date
City Council Goal Useful Life End Date
Status
❑ New Project 0 Continuing Project
El Construction ❑ Preliminary Design
Description & Justification
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 34,500.00
As part of the reissuance of the Colorado Water Boards General NPDES permit, unfunded mandates have been created that require the City to retrofit certain catch basins with trash capture devices. The City has installed four different types and watched their performance for the past 3 years. The balance of the project will install the rest of the required trash capture devices.

Expenditures
Planning/Design
Construction
Administration/Inspection
Contingency
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
TOTAL
$ -
$ 34,500.00 $
$ -
$ $
$34,500 $
Funding Sources FY 2024
$ 34,500.00
$ 34,500.00
FY 2025 FY 2026 FY 2027 FY 2028 Total
Capital Improvement
$ 34,500.00 $ - $ $ - $ $
$ - $ - $ - $ - $ - $
$ - $ - $ - $ - $ $
$ - $ - $ - $ $ $
34,500.00
TOTAL $ 34,500.00 $ - $ - $ - $ - $ 34,500.00

Council Meeting Agenda May 18, 2023

CAPITAL IMPROVEMENT PROJECTS
City of Indian Wells FY 2024 thru FY 2029
Project Name Update Master Drainage Plan
Project # 2023 -Drain -316-004
Location Department Public Works Priority
Plan Reference Contact Public Works Mgr Jurisdiction
Category Storm Drain Type Start Date
City Council Goal Useful Life End Date
Status
❑ New Project 0 Continuing Project
El Construction ❑ Preliminary Design
Description & Justification
❑ Preliminary Budget
❑ Final Design
❑ Final Budget
❑ Env. ROW
Total Project Cost: $ 200,000.00
The City's prior Storm Drain Master Plans were written in 1979 and updated in 1998. The proposed Citywide Storm Dran Master Plan Update is intended to be utilized as a guideline document for the identification of strom drain facilities needed to serve current and future land development projects under the City's buildout condition.

Expenditures
Planning/Design
Construction
Administration/Inspection
Contingency
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
Total
TOTAL
Funding Sources FY 2024
$ - $
$ 200,000.00 $
$ - $
$ $
$ 200,000.00 $
$ 200,000.00
$ 200,000.00
FY 2025 FY 2026 FY 2027 FY 2028 Total
Capital Improvement
$ - $ - $ 200,000.00 $ $ $
$ - $ - $ $ $ - $
$ - $ - $ $ - $ $
$ - $ - $ $ - $ - $
200,000.00
TOTAL $
- $ - $ 200,000.00 $

CITYWIDE
- $
- $ 200,000.00

Council Meeting Agenda May 18, 2023
Indian Wells
Financing Authority

Council Meeting Agenda May 18, 2023
Indian Wells Financing Authority
The Qty's overriding goal in issuing debt is to provide for infrastructure and capital project needs while ensuring debt is issued and managed prudently to maintain a sound fiscal position and protect credit quality. Accordingly, the Qty issues debt instruments, administers Qty debt proceeds, and makes debt service payments, acting with prudence, diligence, and attention to prevailing economic conditions.

Debt is an equitable means of financing projects and represents an essential means of providing for the infrastructure and project needs of the City. Debt is used to finance projects (i) if it meets the City goal of equitable treatment of all customers, (ii) if it is the most cost- effective means available, and (iii) if it is fiscally prudent, responsible, and diligent under the prevailing economic conditions.
2022 Lease Revenue Refunding Bonds
In February 2022, the Indian Wells Financing Authority issued lease revenue bonds in the amount of $13.9 million to provide funds to finance public improvements and energy efficiency improvements in the City. The bonds dated February 10, 2022, and issued at a premium of $1.3 million are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and mature in 2042. The bonds are payable from base rental payments to be made by the Qty for the right to the use of certain real property and improvements of the City pursuant to a Lease Agreement dated February 1, 2022. The balance on June 30, 2022, including the unamortized bond premium of $1.3 million, amounted to $15.2 million. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2023 $ 380,000 $ 586,874 $ 966,874
2024 470,000 495,050 965,050
2025 495,000 471,550 966,550
2026 515,000 446,800 961,800
2027 545,000 421,050 966,050
2028-2032 3,155, 000 1,669,000 4,824,000
2033-2037 3,890,000 927,150 4,817,150
2038-2042 4,480,000 341,625 4,821,625
bond premium
13, 930, 000
1,316,053
5,359,099
19, 289, 099
1,316,053
$ 15, 246, 053 $ 5,359,099 $ 20, 605,152
The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority under the Lease Agreement, may terminate the Lease Agreement and recover certain damages from the City or may retain the Lease Agreement and hold the Qty liable for all base rental payments thereunder on an annual basis.

Council Meeting Agenda May 18, 2023
Initiatives
• Provide funding for the following capital improvement projects:
o Renewable Energy Generation program,
o Streets and roads,
o Storm drain improvements
o Facilities and equipment
• Use of developer fees to fund annual debt service
Program Staffing Allocations
There are no staffing allocations for this program.

Workload Activity Measures
There are no Workload Activity Measures designated for this program.

Indian Wells Financing Authority Program Budget
FY2021/22 FY2022/23 FY2023/24 FY2023/24
Year End Year End Budget Projected
FY2024/ 25
Budget
FY2024/ 25
Projected
DEBT SERVICE FUND - 2022 LEASE REVENUE BONDS
4606301 582000 Debt Interest
4606301 583000 Cost of Issuance
4606301 583000 Debt Fees
4606301 599900 Operating Transfers Out
586,874
229,868
5,250 5,250
2,949,218 7,375,000
TOTAL INDIAN WELLS FINANCING AUTHORITY FUND 3.184.336 7.967.124 Tot al Indian Wells Financing Authority 3,184,336 7,967,124 495,050
5,500
7,375,782
7,876,332

7.876,332
-15.6%

0.0%

59.4%
-00114
471,550
5,500
477,050
477,050
-4.7%

0.0%

4.5%

93.9%

93.9%

Council Meeting Agenda May 18, 2023
Housing Authority

Council Meeting Agenda May 18, 2023
I ndian Wells Housing Authority Program
Indian Wells Housing Authority was created to promote and encourage affordable housing units' retention, rehabilitation, and development. Since its inception in 2012, the Housing Authority has purposely reserved funds to construct affordable housing communities to maintain RHNA compliance and reserve funds in the Mountain View and Indian Wells Villas Funds to maintain quality of life issues for the affordable housing residents.

Affordable housing units are those units occupied by households not exceeding the affordable income limits established by the Department of Housing and Urban Development (HUD).

Income limits are revised every year by the United States Department of Housing and Urban Development (HUD).

The Housing Authority includes three primary programs:

Housing Authority General Operations — Approves general operating expenditures for staff salaries and benefits, professional services such as annual audits and legal counsel, insurance premiums, and contributions to homelessness services.

Indian Wells Villas — The Indian Wells Villas Fund account for the rents, operations, and capital investment of the Indian Wells Villas affordable housing project within the City. The Indian Wells Villas project is a 90 -unit residential senior affordable housing community. This project is located along the North side of Highway 111 at the intersection of Village Center Drive.

Mountain View Villas —The Mountain View Villas Fund accounts for the rents, operations, and capital investments of the Mountain View Villas affordable housing project within the City. The Mountain View Villas project is a 128 -unit residential senior affordable housing community.

This project is located along the North side of Highway 111 at the intersection of Mountain Cove Drive.

Initiatives
• Maintain quality of life issues for the affordable housing residents • Maintain compliance under SB 341 and California Housing law • Maintain compliance with Regional Housing Needs Assessment (RHNA) • Update Indian Wells Housing Element
• Development of an Accessory Dwelling Unit (ADUs) program

Council Meeting Agenda May 18, 2023
Program Staffing Allocations
Full Time Equivalents FY2021/ 22 FY2022/ 23 FY2023/ 24 FY2024/ 25 City Manager
Deputy City Manager
City Clerk
Office Assistant
Community Development Director
Housing Manager
Planner
Sr. Administrative Assistant
Administrative Assistant
Finance Director
Assistant Finance Director
Accountant
Accounting Technician I I I
Accounting Technician II
Information Technology Manager
Public Works Director
Public Works Manager
Senior Engineer
Administrative Assistant
Management Analyst II
Public Works Field Supervisor
Maintenance Worker I I I
Maintenance Worker II
Maintenance Worker I
Maintenance Worker I
Total Full Time Equivalents

0.25 0.15

0.10 0.00

0.55 0.00

0.15 0.70

0.00 0.25

0.20 0.00

0.10 0.10

0.05 0.15

0.00 0.03

0.01 0.15

0.05 0.15

0.05 0.05

0.05 3.29

0.15 0.15

0.05 0.00

0.20 1.00

0.00 0.00

0.10 0.20

0.10 0.05

0.00 0.00

0.05 0.05

0.05 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 2.15

0.15 0.15

0.05 0.00

0.20 1.00

0.00 0.00

0.10 0.20

0.10 0.05

0.00 0.00

0.05 0.05

0.05 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 2.15

0.15 0.15

0.05 0.00

0.20 1.00

0.00 0.00

0.10 0.20

0.10 0.05

0.00 0.00

0.05 0.05

0.05 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 2.15
Workload Activity Measures
There are no Workload Activity Measures designated for this program.

Council Meeting Agenda May 18, 2023
I ndian Wells Housing Authority Program Budget
FY2021/22 FY2022/23 FY2023/24 FY2023/24 FY2024/25 FY2024/25 Year End Year End Budget Projected Budget Projected
_- u. 1: . _.. .. . .. . . . .- - -.. .. - •1 , ..
2564601 511000
2564601 521100
2564601 522000
Regular Employees (2.65 FTE)
Retirement - Employer
FICA
2564601 523000 Croup Insurance
2564601 524000 OPEB Benefit
512,503
52,823
31,849
82,910
137,955
2564601 525100 Retirement 401A 16,661
2564601 526000 Vehicle Allowance 799
2564601 526100 Employee FICA Benefit 25,963
2564601 526200 HRA Medical Benefit 4,440
Total Salary and Benefits
413,104
51,288
25,528
83,683
123,931
13,149
3,833
19,791
2,557
428,087
53,148
26,454
86,718
128,426
13,626
3,972
20,509
2,650

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%
865,903 736,864 763,590 3.6%
2564601 531000 Professional Services 180,408 201,200 257,000 27.7% Appraisals
Audit
Legal
Legislative
2564601 544000 Building & Grounds Maintenance
Landscape Maintenance
Solar Maintenance
LED Fixtures
ADA Maintenance
2564601 552000 Communications
14,030 75,000
2,500
22,000 22,770
15,000 15,525
200,000 207,000
20,000 20,700
82,500 10.0%
70,943 73,426
4,759 4,925
1,700 1,759
5,099 5,277
2,500 0.0%
2564601 558000 Insurance Expense 303,581 248,200 255,375 2.9% General Liability and Worker's Comp
Property, Earth, Flood Insurance
2564601 561000 Office Expense
2564601 591600 Indirect Costs
2564601 592000 Oommunky Assistance
2564601 599900 Operating Transfers Out
2,000
21,404 23,676
250,000 250,000
87,019
22,176 23,284
233,200 244,860
2,000
25,395
250,000
86,855

0.0%

7.3%

0.0%
-0.2%
TOTAL OPERATING 1,635,325 1,626,459 1,725,216 6.1%

HOUSI NG AUTHORI TY CAPITAL
2564601 545000 Infrastructure (Capital)
Modify WVVR Channel Bank
537,682 12,140,000
2,500,000 -79.4%
2,500,000 5,500,000

TOTAL CAPITAL
537,682 12,140,000

2.500,000 0.0%

TOTAL OPERATING & CAPTI AL
2534601 509000 IW Villas Operating Cost
2534601 509100 IW Villas Maintenance
2534601 599900 Operating Transfers Out
2,173.007 13,766.459
607,244 764,000
145,908 240,000
1,650,000
4,225,216 -69.3%
790,000 3.4%
300,000 25.0%

TOTAL INDIAN WELLS VILLAS FUND
753.152
2,654.000
1,090.000 -58.9%
438,789
54,477
27,115
88,686
131,637
13,967
4,071
21,022
2,716
782,680
265,995
85,388
2,500
268,144
2,000
26,267
250,000
86,990
1,769,963
5,500,000
5,500,000
7,269,963
817,650
300,000

1.117.650

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5 %

3.5%

3.5 ,,

0.0%

5.0%

0.0%

3.4%

0.0%

0.2%

2.6%
120.0%
120.0%

72.1 %

3.5%

0.0%

2.5%
2544601 509000 MV Villas Operating Cost
823,112
1,175,000
1,210,000

3.0%
1,252,350

3.5%
2544601 509100 M V Villas Maintenance
134,207
275,000
550,000
100.0%
400,000
-27.3%
2544601 599900 Operating Transfers Out
-
2,800,000
-
-100.0%
-

TOTAL MOUNTAIN VIEW VILLAS FUND
957,319
4,250,000
1,760,000
-58.6%
1,652,350
-6.1%

TOTAL HOUSING AUTHORI TY FUNDS
3 883,478
20,670,459
7,075 216
-65.8%
10,039,963

41.9%

Council Meeting Agenda May 18, 2023
Successor Agency
to the
Former Indian Wells
Redevelopment Agency
Program

Council Meeting Agenda May 18, 2023
Successor Agency to the Former Indian Wells
Redevelopment Agency Program
Pursuant to Assembly Bill No. 1X 26 and the California Supreme Court decision challenging the constitutionality of AB 26, all redevelopment agencies in the State were dissolved as of February 1, 2012, including the Redevelopment Agency of the City of Indian Wells (the "Redevelopment Agency"). Successor agencies to the former redevelopment agencies were designated to wind down the affairs of the former redevelopment agencies.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another local government unit will agree to serve as the "successor agency" to hold the assets until they are distributed to other state and local government units. On January 12, 2012, the Qty Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-03.

AB 26 provides that a successor agency is to be designated as the successor entity to the former Redevelopment Agency, vested with all authority, rights, powers, duties, and obligations previously awarded to the former Agency under the Community Redevelopment Law (Health & Safety Code, § 33000 et seq.); with certain exceptions.

The Successor Agency administers the payments of bonded debt service and other debt obligations of the former Redevelopment Agency. Payments for these obligations are secured from incremental tax revenues generated within the redevelopment project areas.

The activities of the City, as a successor agency, are overseen by an Oversight Board ("Oversight Board") until all the debts of the Agency are paid off, all Agency assets liquidated, and all property taxes previously paid to the Agency are redirected to local taxing agencies.

The Successor Agency is required to prepare the "Recognized Obligation Payment Schedule" ("ROPS") listing outstanding obligations of the Agency for the next year. Once the ROPS has been completed, the Successor Agency submits the ROPS to the Oversight Board for approval.

Upon Oversight Board approval, the ROPS is submitted to the State Department of Finance for inspection and final review. The State Department of Finance requires submission of the new annual ROPS no later than February 1, prior to the reporting year.

Successor Agency Debt
As of June 30, 2022, the Agency debt was $84.0 million, as described below. The debt service listed below matures in different years and is scheduled to be repaid entirely by 2035. Annual principal retirements range between $10.0 million and $10.8 million.

Council Meeting Agenda May 18, 2023
Account Number
Balance Sheet
453.00.00.02357.000
453.00.00.02358.000
453.00.00.02360.000
453.00.00.023)X.000
Description
Bonds Payable:
2014 A -T Tax Allocation Bonds
2015 A Tax Allocation Bonds
2016 A Tax Allocation Bonds
2020 A Tax Allocation Bonds
Subtotal
Add (less) deferred amounts:
453.00.00.02359.000 2015 A Premium
453.00.00.02361.000 2016 A Premium
453.00.00.02225.000
453.00.00.02145.000
453.00.00.02145.001
453.00.00.02145.008
Subtotal
Total bonds payable
Other liabilities:

Accrued Interest
Consolidated Loan Payable
RDA Operating Loan Payable
Interfund Loan Payable-SERAF
Subtotal
Total long-term liabilities
Amount Due to City
Balance at Balance at
6/30/2021 Additions Deletions 6/30/2022
8,385,000 (4,110,000) 4,275,000
14,375,000 (1,615,000) 12,760,000
36,660,000 (110,000) 36,550,000
7,220,000 (450,000) 6,770,000
66,640,000 (6,285,000) 60,355,000
1,512,539 (245,276) 1,267,263
5,548,954 (421,440) 5,127,514
7,061,493 (666,716) 6,394,777
73,701,493 (6,951,716) 66,749,777
1,015,960 874,626 (1,015,960) 874,626
16,400,000 16,400,000
1,339,192 (1,339,192) -
1,473,000 (1,473,000)
20,228,152 874,626 (3,828,152) 17,274,626
93,929,645 874,626 (10,779,868) 84,024,403
In a letter dated November 8, 2013, from the California Department of Finance, the Oversight Board Resolution No. 2013-05 was approved, and the loan from the Qty of Indian Wells for $1.3 million was determined to be for legitimate redevelopment purposes and therefore, approved as an enforceable obligation. In a letter dated November 22, 2013, from the California Department of Finance, the loan between the Successor Agency and the Qty of Indian Wells for $16.4 million was determined to be for legitimate redevelopment purposes and, therefore, approved as an enforceable obligation.

Beginning in July 2021, the Qty's General Fund started collecting $17.7 million in interfund loans between the Qty and the former Redevelopment Agency. The Qty has received $3.6 million in total loan payments and approval from the Riverside County Oversight Board for another $2.6 million.

Council Meeting Agenda May 18, 2023
Successor Agency Loan Repayments
(as of June 30, 2022)
Fiscal Year
Original Loan
Amount -
General Fund
Receivable
Whole
Payments
made to City
City 20%
Contributions
to the
Housing
Authority
Net
Payments
Held by the
City
Status
17,739,192
2022
16,400,000
1,339,192
267,838
1,071,354
Paid
2023
14,187,226
2,212,774
442,555
1,770,219
Paid
2024
11,600,000
2,587,226
517,445
2,069,781
Approved
2025
8,850,000
2,750,000
550,000
2,200,000
Estimated
2026
6,000,000
2,850,000
570,000
2,280,000
Estimated
2027
3,000,000
3,000,000
600,000
2,400,000
Estimated
2028
-
3,000,000
600,000
2,400,000
Estimated
Total
17,739,192
3,547,838
14,191,354
Administrative Costs
The Successor Agency incurs administrative expenses to wind down the former Redevelopment Agency. Such expenses reflect salaries, technical assistance, operating services and supplies, and other ancillary costs.

Initiatives
Wind down the remaining activities of the dissolved Redevelopment Agency.

Program Staffing Allocations
There are no staffing allocations for this program.

Workload Activity Measures
There are no Workload Activity Measures designated for this program.

Council Meeting Agenda May 18, 2023
Successor Agency Program Budget
Account Number

DEBT SERVICE FUND
FY2021/22 FY2022/23 FY2023/24 FY2023/24 FY2024/25 FY2024/25 Year End Year End Budget Projected Budget Projected
Actual Estimate Detail A. .ro.riation %chan.e Detail A..ro.riation %chame 4536301 582000 Debt Interest
2015 A Tax Allocation Bonds
2016 A Tax Allocation Bonds
2020 A Tax Allocation Bonds
2,099,087 2,518,701
503,250
1,664,350
130,775
Total Debt Service Fund

REDEVELOPMENT OBLIGATION RETIREMENT FUND
4566301 581100 Successor Agency Admin Fees
4566602 599900 Operating Transfers Out
2,099,087 2,518,701
338,901 300,000
14,244,013 8,315,146
TOTAL REDEVELOPMENT OBLIGATION RETIREMENT FUND 14,582,914 8,615,146 Total Successor Agency Program 16,682,001 11,133,847
2,298,375
2,298,375
240,000
10,668,062
10,908,062

13.209.417
-8.7%
400,625
1,615,100
120,616
-8.7%
-20.0%

28.3%

26.6%

18.6%
2,136,341
2,136,341
244,552
11,252,546
11,497,098
11 022 d20
-7.0%

7.0%

1.9%

5.5%

5.4 %

3.2%

Council Meeting Agenda May 18, 2023
Appendix

Council Meeting Agenda May 18, 2023
Glossary and Acronyms
Accountability: The extent to which one is responsible to a higher authority, legal or organizational, for one's actions in society or within one's position.

Accrual basis: Sometimes called "full accrual" basis. A basis of accounting in which revenues are recognized when earned regardless of when they are received, and expenditures are recorded when the liability is incurred, regardless of when it is paid.

Accumulated depreciation: The amount of depreciation collected to date during the existing useful life of Qty assets.

Actual: A column heading in the budget. Figures in the Actual column indicate actual financial information recorded for that period.

Ad valorem taxes: Revenue from taxes paid on real property and personal property is calculated based on the "value" of the property.

Americans with Disabilities Act (ADA): Americans with Disabilities Act, Public Law 336 of the 101st Congress, enacted July 26, 1990. The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and local government services, public accommodations, commercial facilities, and transportation. It also mandates the establishment of TDD/telephone relay services.

Adjusted budget: The current budget adopted by the city council, including any council - approved modifications authorized throughout the year and the prior year's encumbrances.

Administrative overhead: The cost applied based on employee salaries to fund the administration of the payroll system, employee benefits, labor relations, and ancillary services.

Adopted budget: The new allocation of expenditures and revenues for the current fiscal year as approved by the city council.

Allocate: To divide a lump -sum appropriation designated for expenditure by specific organization units and specific purposes, activities, or objects.

Amended budget: The official budget adopted and amended by a legislative body through the fiscal year.

Annual budget: A legally adopted budget applicable to a single fiscal year.

Appropriation: A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and the time when it may be expended.

Assessed valuation: A dollar value placed on real estate or other property by Riverside County as a basis for levying property taxes.

Council Meeting Agenda May 18, 2023
Asset: Anything having commercial or exchange value that a business, institution, or individual owns.

Audit: Conducted by an independent certified public accounting (CPA) firm; the primary objective of an audit is to determine if the city's financial statements present the city's financial position and results of operations in conformity with generally accepted accounting principles.

Balanced budget: A budget in which planned expenditures are within projected funds available.

Balance sheet: A financial statement reporting the organization's assets, liabilities, and equity activities.

Bond: A city may raise capital by issuing a written promise to pay a specific sum of money, called the face value or principal amount, at a specified date or future date, together with periodic interest at a special rate.

Budget: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year.

Budget calendar: A schedule of dates followed in the budget preparation, adoption, and administration.

Budget message: A general discussion of the proposed budget as presented in writing by the budget -making authority to the legislative body.

Capital budget: A budget implementing the capital improvement program.

Capital outlays: Expenditures that result in the acquisition of or addition to fixed assets.

Capital improvement construction or significant repair of city infrastructure, facilities, or buildings.

Capital improvement program: A plan for capital improvements to be implemented each year over a fixed period to meet capital needs arising from the long-term work effort. It sets forth each project or other contemplated expenditures in which the government is to have a part and specifies the total resources estimated to be available to finance the projected costs.

Capital outlay: The acquisition costs of equipment with a value of $5,000 or greater used in providing direct services.

Charter -mandated: As legally required by the city's charter, which is the document that spells out the purposes and powers of a municipality.

City council priorities: Formal annual priorities established by the city council in consultation with the city manager guiding the allocation of resources.

Council Meeting Agenda May 18, 2023
Citywide focus areas: Broad areas of service that align each program to a specific and tangible outcome for the community.

Citywide goals: Broad organizing principles that establish priorities across departments and provide the general framework for displaying performance measures and reporting financial information by the program. The citywide goals are determined by the city manager and may correspond to the citywide focus areas and the City of Indian Wells strategic plan.

Certificates of Participation (C.O.P): Lease -purchase financing used to construct or acquire capital facilities and equipment.

Community Development Block Grant (CDBG): Afederal grant that aims to develop viable urban communities by providing decent housing, a suitable living environment, and expanded opportunities for low and moderate -income persons. The City of Indian Wells receives an annual CDBG entitlement from the U.S. Department of Housing and Urban Development.

Contingency: An appropriation of funds during the fiscal year, such as disaster emergencies, federal and state mandates, revenue shortfall, or other unanticipated costs.

Continuing appropriation: Funds committed for the previous year's expenditure were not spent in the year of the budget but intended to be used in the succeeding year. The most common example is an appropriation for a capital project.

Contractual services: Services rendered to city activities by private firms, individuals, or other governmental agencies. Examples of these services include engineering, technology, law enforcement, and legal.

Customer service: Afunction of how well an organization can consistently exceed the customer's needs.

Debt service: The cost of paying the principal and interest on the money according to a predetermined schedule.

Department: A primary organizational unit of the city, assigned overall management responsibility for an operation or a group of related functions within an area.

Department strategic initiatives: Clear, measurable, and time -specific statements that address citywide goals, issue statements, and city council priorities over the next several years.

Designated fund balance: A portion of unreserved fund balance designated by city policy for specific future use.

Depreciation: The decrease in the value of physical assets due to use and the passage of time due mainly to wear and tear.

Development I mpact Fees: Fees placed on the development of land or conditions required for the approval of a development project, such as the donation (dedication or exaction) of

Council Meeting Agenda May 18, 2023
certain land (or money) for specific public uses. The fees are typically justified as an offset to the future impact of development on existing infrastructure.

Encumbrance: The legal commitment of appropriated funds to purchase an item or service.

To encumber funds means to set aside or commit funds for future expenditures. An encumbrance is not an expenditure; an encumbrance reserves funds to be expended.

Enterprise fund: Also known as a proprietary fund. GAAP requires state and local governments to use the enterprise fund type to account for "business -type activities" similar to those in the private sector.

Estimated carryover: Funds from prior years for multi -year grants and projects.

Expenditure: Decreases in net financial resources. Costs include current operating expenses that require the current or future use of net current assets, debt service, and capital outlays.

Expenses: Decreases in total net assets. Expenses represent the total cost of operations during a period regardless of the timing of related expenditures.

Financial strategic plan: The Qty's long-range budget planning tool to project and provide responses to fluctuations in structural revenue and expense in the general fund.

Fees for services: Charges for services levied by the government to recover costs associated with providing a service or permitting an activity. Examples of payments include monthly water, sewer, and garbage collection fees, Plan Checking Fees, Building & Engineering Permitting Fees, and Franchise Fees.

Fire Access Maintenance District (FAMD): Pursuant to Resolution No. 73-18 adopted by the Indian Wells Oty Council, the Indian Wells Fire Access Maintenance District No. 1 (FAMD) was formed for the purposes specified as follows: "That the public interest and convenience require and a Maintenance District was formed for maintaining and operating access roadways, rights of way, and easements for fire protection purposes, including, but not limited to the grading or regarding, paving or repaving, planking or re -planking, macadamizing or re -macadamizing, graveling or re -graveling, and oiling or re -oiling thereof, and any structures, barriers, gates or other facilities necessary to restrict the use thereof to fire access vested in the subservient lands, all as now exist or may hereafter be constructed in or for said Maintenance District and of benefit to said Maintenance District but not of benefit to the Qty of Indian Wells as a whole, which district said Council hereby determines will be the District benefited by the maintenance and operation of said improvements."
Fiscal year: A 12 -month period to which the annual operating budget applies, and at the end, a government determines its financial position and the results of its operations.

Fixed assets: Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, and improvements other than buildings, machinery, and equipment.

Franchise fee: Afranchise fee is charged for using public right-of-way and property within the city for public or private purposes. The city currently assesses franchise fees on cable television, utilities, and trash collection contractors.

Council Meeting Agenda May 18, 2023
Fringe benefits: Any of a variety of non -wage or supplemental benefits (health/dental/life insurance, pension contributions, and auto allowance) that employees receive in addition to their regular wages.

Fund: Afiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, which are segregated to carry out specific activities or attain objectives by special regulations, restrictions, or limitations.

Fund balance: A term used to express equity (assets minus liabilities), governmental fund types, and trust funds. However, for budgeting purposes, a working capital definition of current assets minus current liabilities is used for the computation.

General fund: The city's primary operating fund; all revenues not allocated by law or contractual agreement to a specific fund are accounted for in the general fund. Except for subvention or grant revenues restricted for particular uses, general fund resources can be utilized for any legitimate governmental purpose.

Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practices at a particular time. They include broad guidelines for general application, detailed techniques, and policies. In addition, GAAP provides a standard by which to measure financial presentations.

Goal: A goal is an idea of the future or desired result that a person or group envisions, plan, and commit to achieving. People endeavor to reach goals within a finite time by setting deadlines.

Governmental Accounting Standards Board (GASB): Governmental Accounting Standards Board is the accounting profession's regulatory body for governmental accounting. The Board determines what constitutes GAAP for governmental agencies.

Governmental funds: Funds generally used to account for tax -supported activities. There are five different types of governmental funds: general funds, special revenue funds, debt service funds, capital projects funds, and permanent funds.

Grant: Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity, or facility.

Housing Authority: The agency providing oversight for the Successor Agency in the Qty of Indian Wells, governed by a seven -member board.
nfrastructure: The Qty's basic facilities (e.g., streets, water, sewer, public buildings, and parks).

Council Meeting Agenda May 18, 2023
I ntergovernmental revenue: Revenue collected by one government and distributed (usually through some predetermined formula) to another level of government(s).

I nvestment revenue: Revenue received as interest from the investment of funds not immediately required to meet cash disbursement obligations.

Joint powers authority (J.P.A.): Ajoint venture comprised of two or more governmental entities sharing the cost of providing a public service.

Legally adopted budget: The total of the allocations of each city fund, including budgeted transfers between funds.

Liability: A claim on the assets of an entity.

Line -item budget: A budget that lists detailed expenditure categories (salary, materials, telephone service, travel, etc.) separately, along with the amount budgeted for each specified category.

Measurements focus: The accounting convention which determines (1) which assets and which liabilities are included on an entity's balance sheet and (2) whether its operating statement presents "financial flow" information (revenues and expenditures) or "capital maintenance" information (revenues and expenses).

Mission statement: A broad statement of a department's purpose in meeting the public service needs for which it is organized.

Modified accrual basis: The accrual basis of accounting where revenues are recognized when they become both "measurable" and "available" to finance expenditures of the current period.

All governmental and expendable trust funds are accounted for using the modified accrual basis of accounting.

Municipal code: A book that contains aty Council -approved ordinances currently in effect.

The Code defines City policy concerning planning, zoning, building, etc.

Net budget: The legally adopted budget less all interfund transactions. Those amounts in the budget representing transfers and interfund reimbursements, which in effect are double counted from the perspective of the entire budget, are subtracted from the legally adopted budget amount.

Operating budget: The portion of the budget pertains to the daily operations providing governmental services. The program budgets contained within the annual budget form the operating budget.

Operating transfers: Legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended, transfers of tax revenues from a special revenue fund to a debt service fund, transfers from the general fund to a special revenue or capital projects fund, operating subsidy transfers from the general or a special revenue fund to

Council Meeting Agenda May 18, 2023
an enterprise fund, and transfers from an enterprise fund other than payments instead of taxes to finance general fund expenditures.

Ordinance: Aformal legislative enactment by the City Council. It is the full force and effect of The Law within Qty boundaries unless pre-empted by a higher form of law. An ordinance has a higher legal standing than a resolution.

Personal services: The costs of labor, including salaries and fringe benefits.

Personnel: Reflects total full-time, part-time, and temporary budgeted positions, expressed as full-time equivalents (FTE). (Example: two half-time positions equal one FTE.) Policy: A direction that must be followed to advance toward a goal. The direction can be a course of action or a guiding principle.

Preliminary budget: A budget in its initial preparation stage before review and formulation by the formal budget -making authority. In the primary step, a budget consists of various estimates forecasting current costs into the future and new or modified spending proposals for the future.

Prior year encumbrances (PYE): Money set aside from last year's budget to pay for items or services ordered during that year but received in the current fiscal year. The encumbrance is removed when the items or services are received and paid for.

Program: A group of activities organized to accomplish primary goals and objectives.

Program budget: A budget organized by programs. A program used in this application is a grouping of related activities, projects, and services that are similar in purpose. The expenditure focus of a program budget is associated with the nature of work and services performed.

Property tax: A limited tax levy that may be imposed for any purpose.

Proposed budget: The budget is formulated and presented by the budget -making authority.

It is submitted to the legislative body for review and approval.

Real property transfer tax: Collected by the county auditor -controller and is based on the value of the property sold or otherwise changed in the title. The rate is proscribed by the state revenue & taxation code.

Reserve: That portion of a fund's balance is designated and legally restricted for a specific purpose and is, therefore, not available for general appropriation.

Revenues: The historical and projected yield of taxes and other sources of income that a government unit receives for public use.

Risk management: An organized attempt to protect an organization's assets against accidental loss in the most cost-effective manner.

Council Meeting Agenda May 18, 2023
Sales tax: A tax on the purchase of goods and services distributed by the state based on the point of sale.

Secured property: As the property tax is guaranteed by placing a lien on the real property, the secured property is that real property in which the value of the lien on the real property and the personal property located thereon is insufficient to assure payment of the tax.

Special assessment: A levy against specific properties to defray part or all the costs of a specific improvement or service deemed to benefit those parties primarily.

Special revenue funds: Funds used to account for the proceeds from specific revenue sources that are legally restricted to expenditures for specific purposes.

Strategic business plan: Department plans aligned to community and city council priorities and organized around a program structure. The plan is based on stakeholder feedback containing issue statements, strategic objectives, mission statements, line of business purpose statements, program purpose statements, and performance measures at the program level. The plan guides a department's operations over the next two to five years.

Strategic I nitiative: A readily measurable statement of aim or expected accomplishment within the fiscal year. A good idea of strategic initiative should imply a specific standard of performance for a given program:
• An operational objective focuses on service delivery. • A strategic managerial initiative focuses on those aspects of management that help staff achieve operational, strategic initiative, i.e., staff training, work -plan development, etc.

Strategic objectives: Specific, measurable time -dependent statements of achievement that respond to significant issues and council priorities. Objectives must be associated with citywide focus areas. Strategic objectives are a component of department strategic business plans.

Subventions: Revenues collected by the state (or another level of government) are allocated to the city on a formula basis. The significant grants received by the Qty from the State of California include sales tax, no/low property tax cities allocation, vehicle license fees, and gas tax.

Supplies and services: A general category used for clarifying expenditures for various supplies and services commonly used within a fiscal year.

Tax increment: The funding mechanism for Redevelopment Agencies in California. When Agencies provide or assist in providing financial assistance to improve blighted areas of a city, the associated assessed value of the improved real property increases. This "incremental" increase in estimated value results in an increase in property tax revenue known as a "tax increment." Tax increment revenue must remain in the Redevelopment Agency to be used for repaying any debt incurred by the Agency and for additional approved projects. The California Health and Safety Code governs the use of tax increment revenue by Redevelopment Agencies.

Council Meeting Agenda May 18, 2023
Trust & agency funds: Also known as fiduciary fund types, these funds account for assets held by the Qty in a trustee capacity or as an agent for private individuals, organizations, or other governmental agencies.

Taxes: Compulsory charges levied by the government for financing services performed for the common benefit. This term does not include specific charges against persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, sewer service charges.

Transparency: The availability of public information about government rules, regulations, and operations (programmatic and financial) to encourage community participation and improve the decision -making process.

Undesignated fund balance: A portion of the fund balance that is not reserved for specific purposes or obligated in any manner. Undesignated fund balance is a crucial indicator of financial health.

Unsecured property: As the property tax is guaranteed by placing a lien on the real property, the unsecured property is that real property in which the value of the lien is insufficient to assure payment of the property tax.

Unsecured tax: A tax on tangible personal property such as office furniture, equipment, and boats that are not secured by real property.

User fees: The payment for direct receipt of public service by benefiting from the service.

Working capital: The difference between current assets and current liabilities.

Year -End: This term means as of June 30th (the end of the fiscal year).

Acronyms:

AB
ADA
ALC
AQMD
BLM
CDARS
CDBG
CEQA
CI P
CFL
CNG
COLA
COPS
CPI
Assembly Bill
Americans with Disabilities Act
Architecture and Landscape Committee
Air Quality Management District
Bureau of Land Management
Certificate of Deposit Account Registry Service
Community Development Block Grant
California Environmental Quality Act
Capital Improvement Program
Compact Fluorescent Lamp
Compressed Natural Gas
Cost of Living Adjustment
Community Oriented Public Safety
Consumer Price Index

Council Meeting Agenda May 18, 2023
CVAG Coachella Valley Association of Governments
CVWD Coachella Valley Water District
DOT Department of Transportation
ECOC Emergency Communications and Operations Center
FAMD Fire Access Maintenance District
FTE Full -Time Equivalent
FOR Focus on Results
HOA Home Owners Association
HVAC Heating, Ventilating, and Air Conditioning
FY Fiscal Year
GAAFR Governmental Accounting, Auditing, and Financial Reporting GASB Governmental Accounting Standards Board
GFOA Government Finance Officers Association
I CMA International City/County Management Association
I WGR Indian Wells Golf Resort
JPA Joint Powers Authority
LED Light Emitting Diode
LEED Leadership in Energy and Environmental Design
MOU Memorandum of Understanding
OPEB Other Post -Employment Benefits
OSHA Occupational Safety and Health Act
PUC Public Utilities Commission
PYE Prior Year Encumbrances
RHNA Regional Housing Needs Assessment
SCAG Southern California Association of Governments
SCAQMD Southern California Air Quality Management District SCE Southern California Edison
TOT Transient Occupancy Tax
TUMF Transportation Uniform Mitigation Fee
UUT Utility Users Tax
VLF Vehicle License Fee

Council Meeting Agenda May 18, 2023

INDIAN WELLS CITY COUNCIL
May 18, 2023
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, Finance Director
Subject: Indian Wells Golf Resort Implementation Goals and Deliverables for the Fiscal Year 2023-24 Budget Cycle

RECOMMENDED
ACTION:

Council APPROVES the Indian Wells Golf Resort Implementation Goals and Deliverables for the Fiscal Year 2023-24 Budget Cycle.

BACKGROUND:

On April 6, 2023, the City Council held a planning session to develop the Indian Wells Golf Resort (IWGR) Strategic Planning Goals. During the meeting, the City Council collaborating with Resident input set the Golf Resort Strategic Planning Goals, which will serve as a community roadmap shaping the future of the Golf Resort in the coming year.

Listening to Community needs, the City committed funds to enhance public communications and transparency with Residents. Part of the program was the creation of a new stand-alone budget for the Golf Resort. The separate budget provides detailed information regarding operations and capital planning.

The form of this new budget book is still in its evolutionary phase. Transparency and improved resident communication regarding the operations of the Golf Resort led the City Manager to this iteration of the budget book. Resident engagement is critical to the future development of the budget book. In addition to providing a detailed budget broken out by individual profit center, the new budget details the Golf Resort's business plan, the marketing plan, and offers unique insight into guest demographics and the competitive market set. This means all operating procedures and measurements are now in one place.

The IWGR Financial Goals include:
• IWGR is profitable before the amenity subsidy and after capital and maintenance expenses. The breakout of projected net income by the department is as follows:

Council Meeting Agenda May 18, 2023
Indian
Projected Net Income
Wells Golf Resort
Goal (%) by Department
Met Goal
Minimum
Goal
Maximum
Goal
Budgeted
Goal
Golf, including golf maintenance

25.0%

30.0%
Yes
Merchandise

27.0%

33.0%
Yes
Vue

8.0%

12.0%
Yes
Vue - Cost of Sales

30.0%
n/a
Yes
Vue - Labor

50.0%
n/a
Yes
Beverage Carts

38.0%

42.0%
Yes
Banquets

30.0%

35.0%
Yes
Food Truck

30.0%

35.0%
Yes
Shots in the Night

30.0%

35.0%
Not Yet
General & Administrative
Decrease 5% from last
year actual
Stayed Flat
to Last Year -
No Increase
Not Yet
Building Maintenance
Decrease 5% from last
year actual
Stayed Flat
to Last Year -
No Increase
Not Yet
• IWGR management to develop strategies to increase customers and check averages in all operations (e.g., Vue restaurant, banquets, golf, etc.). • IWGR management to identify opportunities to improve efficiency and operations to be more cost-effective while maintaining quality.
• Consider golf resort operating profits and energy savings from the new solar project to fund future capital needs.
• Remove the payroll allocation.

To ensure the Council's strategic goals are included in the Golf Resort's annual budget, the City developed the attached Implementation Goals and Deliverables list. The Implementation Goals and Deliverables list identifies seven key areas that are to be included in the new Golf Resort Budget, including:

1. Profitability

2. The General Fund Amenity Subsidy

3. Allocated Payroll

4. Projected Net Income by Department

5. Operating strategies incorporated into the new budget.

6. Capital Budgeting

Council Meeting Agenda May 18, 2023

7. Development of the New Concepts, the Business Plan, and the Marketing Plan These goals and deliverables are consistent with the Council's goals developed during the strategic planning session.

FINANCE COMMITTEE REVIEW:

The Finance Committee met on April 27, 2023, to review the Implementation Goals and Deliverables and has approved for City Council consideration today. During the discussion, the Committee inquired if Troon supported the list. The goals and deliverables were vetted with Troon. Troon supports the list and recognizes that some goals are quickly attainable while others are aspirational and serve as motivators.

ATTACHMENTS:

1. Indian Wells Golf Resort Implementation Goals

At the dais: Presentation
5/18/2023

INDIAN WELLS
Indian Wells Golf Resort Budget Deliverables
Fiscal Years 2023/24
May 18, 2023

Establishing Implementation Goals
• IWGR is profitable before the amenity subsidy and
after capital and maintenance expenses.
• Removes allocated payroll
• Direct charges only based on the actual timecard.

Establishing Implementation Goals
• Develop strategies to increase customers in all
operations.
• Identify opportunities to improve efficiency and cost- effectiveness.
• Consider golf resort operating profits and energy
savings to fund future capital needs

Meeting Financial Performance Targets
Indian
Projected Net Income
Wells Golf Resort
Goal (%) by Department
Met Goal
Minimum
Goal
Maximum
Goal
Budgeted
Goal
Golf, including golf maintenance

25.0%

30.0%

27.6%
Yes
Merchandise

27.0%

33.0%

30.5%
Yes
F&B All Outlets Consolidated

15.0%

20.0%

19.5%
Yes
Vue

8.0%

12.0%

8.4%
Yes
Vue - Cost of Sales

30.0%
n/a

29.5%
Yes
Vue - Labor

50.0%
n/a

50.0%
Yes
Beverage Carts

38.0%

42.0%

38.0%
Yes
Banquets

30.0%

35.0%

33.0%
Yes
Food Truck

30.0%

35.0%

21.6%
No
Shots in the Night

30.0%

35.0%

30.0%
Yes
General & Administrative
Decrease 5% from last
year actual
Increased

5.3% to Last
Year Actual
Missed City
Target by
$242k
Building Maintenance
Decrease 5% from last
year actual
Increased

4.5% to Last
Year Actual
Missed City
Target by
$100k

Council Meeting Agenda May 18, 2023
Indian Wells Golf Resort
Fiscal Year 2023-24 Budget
Implementation Goals and deliverables

1. Profitability
a. Golf Resorts should be operated profitably before the Golf Arnenity Subsidy and after capital expenditures.

2. General Fund Amenity Subsidy
a. Specific to the budget and monthly financial statements, the Amenity Subsidy shall be displayed as follows:
i. Golf Arnenity subsidy — below the Net Income Line
ii. F&B and Merchandise — included in the Revenue line

3. Allocated payroll.
a. No allocated payroll based on revenue.
b. Each profit center shall be based on the staff working in the profit center.

In Troon's terminology, this is known as direct payroll. c. The Consolidated summaries in Golf and F&B and the Consolidated Financial Report shall contain all payroll costs required to operate the programs.
d. Remove allocated payroll lines from the budget and the monthly financial statements.
i. Direct payroll only.

4. Projected Net Operating Income by Department
a. As a Goal, the Budget should project Net Income as a % of Revenue as follows:
i. Golf, including golf maintenance: 25% to 30%
ii. Merchandise: 27% to 33%
iii . VUE: 8% to 12%

1. Cost of sales goals around 30%

2. Labor goals around 50%
iv. Beverage Carts: 38% to 42%
v. Banquets: 30% to 35%
vi. Food Truck & SI TN: 30% to 35%
vii. These expectations exclude costs associated with building maintenance and G&A and are calculated to maintain profitability before the golf amenity subsidy and after capital.

5. Operating strategies incorporated into the new budget. a. Operate as a profitable business every year.
i. This could include limiting operating times and services during unprofitable periods.

ATTACHMENT #1

Council Meeting Agenda May 18, 2023
ii. Identify opportunities to reduce operating losses during the first half of the fiscal year.
iii. Develop a worst -case scenario budget for the period June through September.
b. Evaluate COS and labor controls consistent with brand standards and revenue expectations.
c. Develop strategies to implement efficiencies to decrease G&A and building maintenance and golf maintenance costs. The savings goal is 5%.

6. Capital Budgeting:
a. Capital budget is limited to the replacement of existing equipment. b. The City Council approves all other capital improvements. i. An initial ROI analysis with preliminary figures will be included for each new capital project for Council consideration as deemed appropriate.
ii. If Council provides investigative approval, the ROI analysis will be restated as design and construction figures are confirmed.

7. Development of the New Concepts, the Business Plan, and the Marketing Ran a. These plans, at a minimum, should include strategies to capture the following:
i. Protect the Brand — we need to attract the right kind of new rounds and covers. Maintain the golf rate.
ii. Expand summer and shoulder seasons.
iii. Drive additional golf rounds in summer and shoulder seasons. iv. Increase VUE covers annually.

1. Increase resident covers by 10%

2. Increase golfer use by 30%.

3. Develop a VUE resident campaign.

4. Establish a local marketing campaign to encourage and attract new hotel guests, business lunches, and locals to support VUE.
v. Commit up to 1% of gross revenue to develop a local marketing plan budget.
b. New VUE concept
i. Work with Council to establish a new VUE identity.

Council Meeting Agenda May 18, 2023

INDIAN WELLS CITY COUNCIL
May 18, 2023
To: City Council
From: City Manager Department
Prepared by: Chris Freeland, City Manager
Subject: Request to Place Discussion Regarding Governance on a Future Agenda

RECOMMENDED
ACTION:

Council DISCUSSES and provides DIRECTION to staff on Council Member Bruce Whitman request for a future agenda item on Governance.

DISCUSSION:

At the April 6, 2023, City Council Meeting, Councilmember Bruce Whitman requested a staff report on Governance be added to the May 18, 2023, City Council agenda.

The institutional structures of California cities provide guidance on how cities are governed. Cities are typically categorized as either being a general law or charter city framework, operate under the city manager -council or mayor -council form of government, and provide services to the community either independently (e.g., own police and fire department) or as a contract city. Indian Wells is a charter city that operates under the city manager -council form of government and provides many services to the community through various contracts (e.g., Riverside County Sheriff for police and CalFire for fire services). This structure in Indian Wells, along with numerous documents, policies and procedures, and norms all influence how Indian Wells is governed.

As a city manager -council form of government, the Indian Wells City Council serves as the policy makers who are responsible for establishing the priorities and strategic goals of the community. The city manager is responsible for managing the day-to-day operations of the city, implementing city council policies, and recommending changes to programs and projects to the city council for their consideration.

In its article on governance, the Institute for Local Government (ILG) states that "when elected officials and top management professionals' partner and govern efficiently, municipal agencies can more effectively serve their constituencies. ILG is a non-profit organization that works closely with cities, counties, and special districts to promote good

Council Meeting Agenda May 18, 2023
government at the local level. Attached are tips for success in leadership and governance from ILG that outline the functions, roles, and suggest best practices for cities.

As a new councilmember, Councilmember Whitman asked to have this matter agendized to provide the community with a better understanding of the roles of the council and city manager, but to also encourage a discussion between stakeholders on various governance matters.

The City of Indian Wells is subject to several governing and operational documents, including:
• California State Constitution and various State codes • Indian Wells Charter
• Municipal Code
• City Council Policy Manual
• Employment Agreement with the City Manager
• Employment Agreement with the City Attorney
• Other various contracts (e.g., Troon Golf, Riverside County Sheriff's Department, CalFire, etc.).

From time to time, it is appropriate for the City Council as the governing body of the City to review its governing documents. Councilmember Whitman is seeking the City Council's guidance on how to educate the community on the role and importance of each of these governing documents and determine if the City Council has an interest in reviewing and making possible revisions. Is there merit to a Governance Study Session of the City Council? Perhaps a City Council Ad -Hoc Committee to address Governance? ATTACHMENTS:

1. Institute for Local Government -Leadership and Governance

Council Meeting Agenda May 18, 2023
I1G

INSTITUTE FOR

LOCAL GOVERNMENT
Leadership & Governance:

Tips for Success
Electeds and Staff Bring a Different & Necessary
Perspective
Understanding and embracing different perspectives is part of what makes our democratic institution at the local level so great. Both perspectives are vital when making decisions in the community's interests. • Elected officials focus on what their constituents value and need from the agency; and • Staff has technical expertise in policy areas and what can work, given their day-to-day experiences with implementing agency policies, practices and service delivery that can help inform the decision -making process.'
Bridging Function
Elected officials play a key bridging function between the community needs and staff; the chief executive officer in turn plays a bridging function between elected officials and staff.

Provides
services to
public
Staff
Technical analysis of
policy options
Implements
vision, policies
and programs.

Holds staff
accountable.

Public
Chief
Executive
Bridge between staff
and electeds
Elects and
provides input
to elected
officials
Electeds
Bridge between
public and staff
Electeds set
vision, adopt
budgets and hold
system
accountable
Leadership & Governance: Tips for Success
December 2015 1 www.ca-ilg.org 1 1
ATTACHMENT #1

Council Meeting Agenda May 18, 2023
Role Division
Current thinking is that elected and appointed officials operate in all four dimensions of the governance process: mission, policy, administration and management, although to differing degrees.2 The graphic 3 below illustrates this phenomenon. The curved line illustrates the division of roles between governing boards and executive staff; how this line looks for each local agency varies.

Dimensions of the governmental process
Illustrative tasks for
council
Determine "purpose,"
scope of services, tax
level, constitutional
issues
Pass ordinances;
approve new projects
and programs; ratify
budget
Make implementing
decisions (e.g., site
selection); handle
complaints; oversee
administration
Suggest management
changes to manager;
review organizational
performance in
manager's appraisal
Illustrative tasks for
Elected officials' sphere administrators
Mission
Policy
Administration
Management
Appointed official's sphere
Advise (what city "can"
do may influence what
it "should" do); analyze
conditions and trends
Make recommenda-
tions on all decisions;
formulate budget;
determine service
distribution formulae
Establish practices and
procedures and make
decisions for imple-
menting policy
Control the human,
material, and informa-
tional resources of
organization to support
policy and administra-
tive functions
The curved line suggests the division between the elected officials' and the appointed official's spheres of activity, with the council to the left and the manager to the right of the line. The division represented is intended to roughly approximate a "proper" degree of separation and sharing. Shifts to either the left or right would indicate improper incursions.

Source: Reprinted with minor editing from James H. Svara. "Dichotomy and Duality: Reconceptualizing the Relationship between Policy and Administration in Council -Manager Cities." Public Administration Review45 (1985): 228. Used with permission of the American Society for Public Administration.

Leadership & Governance: Tips for Success
December 2015 1 www.ca-ilg.org 12

Council Meeting Agenda May 18, 2023
Role Clarity
A shared understanding of the chief executive's role and the governing board's expectations optim izes the working relationship. This understanding is informed by local charter and ordinance provisions that provide the overall framework for the relationship.
• The process of developing such a shared understanding begins with the hiring process and each participant in the process being forthright about their respective expectations. • An annual evaluation process is an ongoing opportunity for such communication, particularly as governing board members change.

Staff will be most able to perform to expectations if those expectations are clear and mutually acceptable.

Tips for Governing Board Members
Setting Goals and Priorities. A helpful practice is
to have the governing board establish priorities and
strategic goals for the organization; such goals and
priorities are a tool to guide the chief executive and
staff on where to focus their efforts.4
Establishing an annual time for board reflection on
community priorities would also offer an opportunity
to discuss decorum among members and the
executive -board relationship.

Limited Resources Means Difficult Trade-offs.

An unhappy reality is that there are likely insufficient resources to accomplish everything that the
community and elected governing board members
desire. This reality creates challenges for the chief
executive in proposing a budget as well as well as
managing the agency work force.

Finding Common Ground. A key skill for a
governing board member is finding areas of
agreement and common interests with other board
members. Within the parameters of the state's open
meeting laws, work with the other governing board
members to find areas of agreement on what
courses of action best serves the public's interests.

In the event that board members disagree, clear
ground rules can quell acrimony before it becomes a
public spectacle.

When the Governing Board Changes
Staff's job is to implement the policies adopted
by the governing body. This includes
implementing changes in policy direction when
the philosophy of the governing board
changes.

New majorities on boards sometimes impute
the policy preferences of the previous boards
to staff. This causes them to worry that staff
will not be as diligent in implementing changes
to previous policies. They sometimes believe
staff has to change in order for policies to
change.

This is another area where frank and ongoing
communication is helpful. Most professional
staff understand that policy directions change
and that their role is to implement that change,
as long as the policy falls within the bounds of
the laws and public service ethics.

Allow a certain amount of time for staff and the
new majority to get to know one another and
see if a productive working relationship can
occur.

Leadership & Governance: Tips for Success
December 2015 1 www.ca-ilg.org 1 3

Council Meeting Agenda May 18, 2023
Understanding that Public Policymaking Involves Value Choices. Policy choices tend to be choices among different values, including the values of fairness, compassion, efficiency, individual rights, common good and others. The "correct" answer is likely to be an elusive goa1,5 particularly since members of the community as well as other members of the governing board are likely to give different values different weight.

Chief Executive Works for the Entire Board. All members of the body were elected by the community to participate in the agency's decision -making processes. As a result, the chief executive's responsibility is to strive for positive working relationships with all members of the body equally and provide information equally to all members of the body.

Communications Needs. Let the chief executive know what kinds of communications work for you.

While the chief executive's job is to share information with all members of the governing body equally (and typically through a combination of written communications and one-on-one meetings), governing body members will often have different communications preferences as to what combination of these two techniques work best for them.

Transparent Decision -Making. The governing board makes decisions (and gives staff direction) at open and well -publicized governing board meetings. These decisions occur after listening to, inquiring of and learning from interactions with all segments of the community and staff.

The Benefits of Collaboration. Be forthright on your objectives and goals with the chief executive, so he or she can do what is possible to help you achieve them (as opposed to "going around" him or her). A chief executive will try to be as responsive as possible to the needs of individuals on the governing board; however understand that significant tasks are likely to require governing body buy in and some tasks may conflict with priorities and policies adopted by the full governing body.

Ground Rules. A helpful practice is for the governing board as an entity to adopt, regularly review and update how the board will conduct its meetings and make decisions.6 Such protocols typically address meeting procedures (agenda preparation, how to put issues on the agenda, debate and voting procedures (parliamentary rules) and standards of decorum (civility).' Managing Difficult Board Members. Staff's role is to provide information to enable elected officials to knowledgeably participate in the decision -making process. However, from time to time, there will be difficult and divisive board members that create a challenging and uncomfortable environment for both the board and staff. There is no one -size -fits -all solution to solve such a problem. In the end, the board must manage its own behavior —not staff.$
Staff Preparation. If you have questions, concerns and/or information needs (or know that members of the community do), provide staff a heads up in advance of meetings so staff can be prepared to address them.

Unwelcome Information. One of staff's least favorite roles is providing information and analysis that will make one or more governing board members unhappy. Typically, providing such information is part of staff's job to avoid surprising the board. If pursuing a given course of action could have negative outcomes (a lawsuit, unintended consequences or a chance that a given goal will not be achieved), it is Leadership & Governance: Tips for Success December 2015 1 www.ca-ilg.org 14

Council Meeting Agenda May 18, 2023
staff's job to let the board know so the board can factor such information and risks into the decision. If possible, staff will also try to identify options and alternatives for reducing the risk of negative outcomes.

Directing Questions and Criticisms. Question, and if appropriate, criticize ideas, policies, programs or outcomes, but not the individuals involved (whether those individuals are fellow elected officials, staff or members of the public). Remember that staff is your tool to accomplish your objectives. Public praise for things you like will motivate; public criticism and embarrassment will discourage. Criticism or information regarding staff missteps should be directed to the chief executive to address.

Responding to Mistakes and Disappointing Outcomes. Mistakes are likely to happen in any organization. If something bad happened, ask what measures can and will be taken to prevent such missteps in the future.9
Tips for Chief Executive & Staff
Clear Goals and Priorities. A key task is for the governing body and chief executive work together to assure staff has clear direction on the agency's goals and priorities.

Goal setting workshops can be useful forums for establishing governing board and organizational priorities. This includes holding annual workshops in which goals are set, reviewed, updated and/or retained, as well as direction on how the group wants to be kept updated on progress, goals and priorities.10 Follow up, of course, is critical to maximizing a goal setting session's value." Such clarity enables staff to know where to devote scarce/limited resources in proposing budget and work program priorities for the governing board's consideration.

Documented goals and priorities serve as a reference point when issues and potentially competing priorities come up throughout the year. Priorities may need to change of course; the key is if a new priority is added, an old one must be subtracted.12
Engaging a broad range of the community in the conversation about hard choices can help the governing body in aligning agency goals with community wishes. Such processes offer important opportunities to inform and consult the community on what can be difficult tradeoffs due to scarce resources. Such engagement can also make the resulting decisions more enduring.

Focus on the Core Functions. For those areas over which the agency has discretion (for example, non - state mandated efforts without maintenance of effort requirements), the conversation can focus on identifying what is most important for the agency to accomplish. This tends to be an intersection of three things: what the community is passionate about, what the organization can be best at and what resources are available.13
Identifying this intersection does not necessarily mean that tasks outside the intersecting area will not get accomplished. Some functions may be more effectively accomplished by other agencies, community - based organizations or the private sector.

Leadership & Governance: Tips for Success December 2015 1 www.ca-ilg.org 1 5

Council Meeting Agenda May 18, 2023
Capacity Building. The entire community benefits from well -prepared and knowledgeable local officials.

Some tools for assisting with this goal include:14
• Leadership academies that help the public, including potential future governing board candidates, understand key elements of the agency's work and processes. • Candidate orientations that provide information about agency functions, pending policy issues, including budget issues and any regulations that apply to the campaigning process. • Newly elected official orientations conducted as soon as possible after election results are certified. Content should include the nuts and bolts of how to accomplish objectives in their new role, as well as briefings on current issues the agency faces, the status of long-range plans and capital projects, and the budget process. Connecting newly elected officials with former electeds who are respected in the community and can offer advice and share experience is also helpful.15 • Ongoing education through local workshops, references to helpful information about local governance and policy issues and conference attendance.

Credit for Commitment to Elective Office. One dimension of staff's role is to help governing board members receive the recognition they deserve for their actions as public servants.16 As media opportunities occur, ensure the electeds are aware so they may receive recognition for their service on community issues.

Evenhandedness. A positive working relationship with all governing body members regardless of personality, philosophy, positions on issues or whether the member is in the majority or minority on the body (remember majorities can change) can be another important success strategy. Communication preference may require that you spend more time with certain members. "Evenhandedness" does not necessarily mean communicating with all decision -makers in the same way.

A Sustained Effort. Successful relationships require ongoing effort and attention. Communication is a central element of this effort.
• Staff's role is to present information and analysis objectively, fairly and without spin. • This includes willingness, when necessary, to deliver unwelcome information and minimize surprises for the governing board.

When Elected Officials Disagree with Staff Recommendations and Analysis. Professionals recognize smart, conscientious and reasonable people can disagree on the best course of action (particularly given the differing perspectives that staff and electeds contribute to the analysis of what best serves the community's interests).
• Such disagreements are not and should not be taken personally. • All governing board decisions must be faithfully implemented, even those which differed from what staff recommended.
• Staff should never speak ill of elected officials, even to seemingly sympathetic and discreet listeners. Word of what was said inevitably seems to get back.

Attention to Detail. Doing the small things well helps governing board members trust staff on the big items.

Leadership & Governance: Tips for Success December 2015 I www.ca-ilg.org 16

Council Meeting Agenda May 18, 2023
Defining Success. Enjoying good relationships with elected officials is a worthy goal, with a few caveats. • Be clear on the lines (legal, ethical and professional) over which you are not willing to step, before finding yourself in a difficult situation.
• As difficult as it may be, your professional reputation for competence and integrity in the long term is a more valuable career asset than keeping a particular job.

International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999)
International City/County Management Association and National League of Cities, Leading Your Community:

A Guide for Local Elected Leaders (2008)
This resource reflects the insights and thoughts of a number of individuals, including: Kevin C. Duggan, West Coast Director, International City/County Management Association, Pete Kutras, Retired County Executive, Santa Clara, and Principal Consultant, Municipal Resource Group, LLC, Richard A. Haffey, County Executive Officer, Nevada County, and William Chiat, Director, CSAC Institute for Excellence in County Government. © 2015 Institute for Local Government. All rights reserved.

References
1 International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999) at 22.
2 Working Together: A Guide for Elected and Appointed Officials, at 19-20. 3 Based on the work of James H. Svara in "Dichotomy and Duality: Reconceptualizing the Relationship between Policy and Administration in Council -Manager Cities," Public Administration Review 45 (1998): 228. This material is reproduced with permission of John Wiley & Sons, Inc.
4 Kevin C. Duggan, A Key Ingredient for Success: An Effective City Council/City Manger Relationship, at 9. 5 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine, August 2009, available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia/020Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Their%20Work&subtitle=
6 See International City/County Management Association and National League of Cities, Working Together: A Guide for Elected and Appointed Officials (1999), at 59. Mike Conduff, Council Relations, PM Magazine (June 2012), available at http://webapps.icma.org/pm/9405/public/council.cfm?author=&title=Council%20Relations&subtitle= I See International City/County Management Association and National League of Cities, Leading Your Community: A Guide for Local Elected Leaders (2008) at 30-33.
6 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine (August 2009), available at http://webapps.icma.orq/pm/9107/public/feature3.cfm?author=Julia/020Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Thei r%20W ork&subtitle
9 A Key Ingredient for Success: An Effective City Council/City Manger Relationship, at http://webapps.icma.orq/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Thei r%20W ork&subtitle
10 Julia Novak and John Nalbandian, Preparing Councils for Their Work, PM Magazine (August 2009) available at http://webapps.icma.org/pm/9107/public/feature3.cfm?author=Julia/020Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Th ei r%20Work&s u btitle=
11 Mike Conduff, ICMA-CM, A Great Retreat!, PM Magazine (April 2012) available at http://webapps . icma.org/pm/9403/public/council.cfm?author=&title=Council %20Relations&subtitle= 12 Frank Benest, Ten New Rules for Elected Officials in Times of Economic Meltdown (2011) available at http://www.ca- il�q.org/posUleadership-strategies-times-econom ic-meltdown. 1 Adapted from Jim Collins, Good to Great in the Social Sectors, 2005 at 19 (the "hedgehog concept). Also recommended by Frank Benest in Ten New Rules for Elected Officials in Times of Economic Meltdown (2011) available at http://www.ca-ilq.org/posUleadership-strategies- ti mes-econom ic-meltdown.").
14 From Mike Conduff, Council Relations, PM Magazine (June 2012), available at http://webapps . icma.orq/pm/9405/public/council.cfm?author=&title=Council%20Relations&subtitle= 15 Preparing Councils for Their Work, PM Magazine, available at http://webapps.icma.orq/pm/9107/public/feature3.cfm?author=Julia%20Novak%20and%20John%20Nalbandian&title=Preparing%20Councils %20for%20Thei r%20W ork&subtitle=
16 This concept is part of the International City/County Management Association's Code of Ethics:

Tenet 6. Recognize that elected representatives of the people are entitled to the credit for the establishment of local government policies; responsibility for policy execution rests with the members.

Leadership & Governance: Tips for Success December 2015 1 www.ca-ilg.org 17