Agenda — Lodi City Council, June 1, 2022 (part 1 of 2)

Revised 10/2021 5/25/2022 11:25
AM

For information regarding this Agenda please contact:

Olivia Nashed
City Clerk
Telephone: (209) 333-6702

C-3 Adjourn to Closed Session

NOTE: THE FOLLOWING ITEMS WILL COMMENCE NO SOONER THAN 7:00 P.M.

C-4 Return to Open Session / Disclosure of Action
A. Call to Order / Roll Call
H. Regular Calendar

Res. H-1 Adopt Resolution Approving Fiscal Year 2022/23 Financial Plan and Budget; Approving Fiscal Year 2022/23 Appropriation Spending Limit; Approving Classification, Job Description and Salary Range of New Administrative Analyst (Confidential and Represented); and Approving Fiscal Year 2022/23 Investment Policy (ISD)

LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi

Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
 Meeting ID: 825 2286 8353
 Passcode: 985648
 Phone number: 1 253 215 8782 or 1 346 248 7799
 Link: https://us06web.zoom.us/j/82522868353?pwd=cFh1S2VWUmZHR0pCbmZyTitHZ05kQT09 Public comment received via email, mail, or hand delivery will be provided to the City Council and included in the official minutes of the meeting, but will not be read aloud at the meeting. • Email – [email protected]
 Received no later than two hours prior to the meeting • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240  Received no later than two hours prior to the meeting 6:55 p.m. Invocation/Call to Civic Responsibility . Invocations/Calls may be offered by any of the various religious and non- religious organizations within and around the City of Lodi. These are voluntary offerings of private citizens, to and for the benefit of the Council. The views or beliefs expressed by the Speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the beliefs or views of any speaker.

AGENDA – Regular Meeting
Date: June 1, 2022
Time: Closed Session 6:45 p.m.

Regular Meeting 7:00 p.m.
*and via video conference:

Hilton Sacramento Arden West
2200 Harvard Street
Sacramento, CA 95815

CITY COUNCIL AGENDA
JUNE 1, 2022

PAGE TWO

B. Presentations
B-1 State Farm’s 100th Anniversary Proclamation (CLK)

B-2 PRIDE Month Proclamation (CLK)

B-3 Elder Abuse and Dependent Adult Abuse Awareness Month (CLK)

C. Consent Calendar (Reading; Comments by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion.

There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for April 29, 2022 through May 12, 2022 in the Total Amount of $5,391,823.74 (FIN)

C-2 Approve Minutes (CLK)
a) April 20 and May 4, 2022 (Regular Meetings)
b) May 3 and May 10, 2022 (Shirtsleeve Sessions)

Res. C-3 Adopt Resolution Authorizing a Motorcycle Trade-In and Replacement Purchase from Long Beach BMW, of Long Beach, and Appropriate Funds ($34,899) (PD)

Res. C-4 Adopt Resolution Authorizing City Manager to Execute Change Orders to 2021-2023 Sidewalk and Miscellaneous Concrete Repair Program ($201,000) and Appropriating Funds ($180,000) (PW)

Res. C-5 Adopt Resolution Authorizing City Manager to Execute Contract Amendment for 2021- 2022 Asphalt Materials ($63,333) (PW)

Res. C-6 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement for Renewal of IVR Hosted Monthly Subscription and Support with Milsoft Utility Solutions, of Abilene, Texas ($40,000/Year) (EU)

Res. C-7 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 with ESO Solutions , Inc., DBA Emergency Reporting (Formerly Known as Reporting Systems, Inc., a Washington Corporation) for Incident Reporting and Patient Care Reporting ($14,000) (FD)

Res. C-8 Adopt Resolution Authorizing City Manager to Execute a Change Order to Second One- Year Optional Extension to Professional Services Agreement with The Pun Group, LLP, of Santa Ana, to Add Funds for New Single Audit Requirements (Amount Not to Exceed $90,192 for Fiscal Year 2021-22 Audit and $422,156 for Life of Contract) (ISD)

Res. C-9 Adopt Resolution Authorizing City Manager to Execute Confirmation 0250 Under Support Services Program Agreement with Northern California Power Agency (NCPA) and Task Order ESG-NCPA- LODI03 with NCPA and Southern California Public Power Authority for Keep Your Cool Commercial Refrigeration Program ($52,830) (EU)

Res. C-10 Adopt Resolution Updating Previous Resolution to Add Position of Public Information Offi cer to Response Personnel List to Receive Portal-to-Portal Reimbursement for Office of Emergency Services Mutual Aid (FD)

Res. C-11 Adopt Resolution Approving Lower Sacramento Road Pavement Resurfacing Project for Road Repair and Accountability Act of 2017 Funding Fiscal Year 2022/23 (PW)

C-12 Appoint Sandra Vargas, Nancy Mellor, Lisa Hill, and Ian Scott to Lodi Improvement Committee (CLK)

CITY COUNCIL AGENDA
JUNE 1, 2022

PAGE THREE

C-13 Set Public Hearing for June 15, 2022 to Consider Ordinance Amending Lodi Municipal Code Title 17– Development Code, Chapter 17.34.060.A.3, “GC and Industrial Districts” to Revise Standards for Signs in These Zoning Districts, and Adding Section 17.34.070.H, “Electronic Message Signs on City Property” to Create a New Type of Advertising Sign Located on City-Owned Property (CD)

Res. C-14 Adopt Resolution Initiating Proceedings for Levy and Collection of Assessments, Resolution Res. Approving Annual Report, and Resolution Declaring Intention to Levy and Collect Assessments for Res. Lodi Consolidated Landscape Maintenance Assessment District No. 2003-1 for Fiscal Year 2022/23; and Set Public Hearing for July 20, 2022 (PW)

D. Comments by the Public on Non-Agenda Items

THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.3l) . The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need t o take action on that emergency arose after this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.

If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.

E. Comments by the City Council Members on Non-Agenda Items

F. Comments by the City Manager on Non-Agenda Items

G. Public Hearings – None

H. Regular Calendar (Continued)

Res. H-2 Adopt Resolution Approving Memorandum of Understanding between City of Lodi and Police Officers Association of Lodi for Period July 1, 2022 through June 30, 2025 (ISD)

I. Ordinances

Ord. I-1 Adopt Ordinance No. 2001 Entitled, “An Ordinance of the Lodi City Council Amending Lodi Municipal (Adopt) Code Article 2 – Administration and Personnel – by Adding Chapter 2.26, ‘Military Equipment Use Policy,’ to Provide for the Lodi Police Department’s Adoption of a Military Equipment Use Policy in Accordance with AB 481” (CLK)

Ord. I-2 Adopt Ordinance No. 2002 Entitled, “An Ordinance of the Lodi City Council Amending Lodi Municipal (Adopt) Code Title 13 – Public Services – by Repealing and Reenacting Chapter 13.16, ‘Solid Waste,’ in Its Entirety” (CLK)

J. Adjournment

Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.

______________________________
Olivia Nashed
City Clerk

CITY COUNCIL AGENDA
JUNE 1, 2022

PAGE FOUR

All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov . If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at leas t 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333- 6702. Solicitudes de interpretación de idiomas deben ser recibi das por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702.

Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.

Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/82522868353?pwd=cFh1S2VWUmZHR0pCbmZyTitHZ05kQT09.

AGENDA ITEM H-01

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2022/23 Financial Plan and Budget; Approving the Fiscal Year 2022/23 Appropriation Spending Limit; Approving the Classification, Job Description and Salary Range of the New Administrative Analyst (Confidential and Represented); and Approving the FY 2022/23 Investment Policy M
EETING DATE: June 1, 2022
P
REPARED BY: Deputy City Manager
RE
COMMENDED ACTION: Adopt resolution approving Fiscal Year 2022/23 Financial Plan and Budget; approving the Fiscal Year 2022/23 Appropriation Spending Limit; Approving the classification, job description and salary r ange of the new Administrative Analyst (Confidential and Represented); and approving the FY 2022/23 Investment Policy
B
ACKGROUND INFORMATION: Staff presented information regarding the FY 2022/23 budget at a series of shirtsleeve sessions on May 3rd, 10th and 17th. The draft budget document was made available to Council on May 17, 2022 and released for public review online on May 18, 2022. The full proposed budget document is available on the City’s webpage at:
www.lodi.gov/ArchiveCenter/ViewFile/Item/533
T
he budget documented presented to Council this evening for adoption is consistent with the draft released on May 18th and presented at the shirtsleeve sessions. Council and staff have made no changes.

T
he General Fund for FY 2022/23 is presented with revenues and expenditures of $73,892,170. The June 30, 2023 unreserved fund balance is projected to be $15,989,386. The remaining fund expenditures are showing in the table below, bringing the City’s total FY 2022/23 budget to $262,928,000.

Electric Utility 92,284,650$ Wastewater Utility 21,953,670$ Water Utility 13,394,190$ Transit 12,169,430$
Employee Benefits 9,635,970$ Parks, Recreation & Cultural Srvs 8,186,200$ Streets 6,916,570$ Self Insurance 5,424,900$
Capital Outlay 5,077,500$ Community Development 3,696,690$ Library 2,623,170$ Fleet Services 2,450,190$
Community Grants 1,693,920$ Debt Service 1,643,120$ Vehicle & Equipment Replacement 1,452,770$ Special Revenue & Grants 326,890$ Trust & Agency 76,000$ TDA 30,000$
City Wide Expenses by Fund

Staffing Changes: The budget proposes 442 full time employees, a net increase of 13 from FY 2021/22 authorized positions. The recommended changes are shown in the table below:

• Add (0.4) Management Analyst in Fire; eliminate (0.4) Management Analyst in Parks, Recreation and Cultural Services – this position has been split 60/40 between Fire and PRCS for over five years as a cost savings measure. Both departments are in need of full time analytical work that has been difficult to achieve under the current arrangement. Staff is requesting to fully fund the Management Analyst in Fire and proposes an Administrative Analyst for PRCS as listed below. • A dd (2) Administrative Analyst – (1) represented and (1) confidential – t his new classification would provide analytical support in areas of budget, programs, grants and contracts. This position is being recommended for PRCS and Human Resources. The job description for the Administrative Analyst is attached to this report. The salary scales for both positions are as follows:

• Add (1) Budget Manager – this position is being requested on a six-month basis for succession planning in the Internal Services Department/Budget Division due to an upcoming retirement. • A dd (1) Administrative Assistant – this position is being requested for the Police Department to provide staff support in state- mandated program reporting and submissions, false alarm program, website development and community outreach.
• A dd (1) Police Sergeant – this position is being requested in the Police Department to provide supervision over the Traffic Division, school resource officers and community services officers. By assigning these duties to this new position, higher level staff will be able to focus on newly added units and programs. • A
dd (1) Property and Evidence Technician – this position is being requested on a six -month basis for succession planning in the Police Department due to an upcoming retirement.

Job Title Department +/-
Management Analyst Fire - Administration +0.4
Management Analyst Parks, Rec & Cultural Srvs - Administration -0.4 Administrative Analyst Parks, Rec & Cultural Srvs - Administration +1 Administrative Analyst - C Internal Services - Human Resources +1 Budget Manager (Temp) Internal Services - Budget +1
Administrative Assistant Police - Administration +1
Police Sergeant (Traffic) Police - Operations +1
Property & Evidence Tech (Temp) Police - Support Services +1 Management Analyst Public Works - Administration +1
Administrative Assistant Community Development - Administration +1 Administrative Clerk Community Development - Administration -1 CDD Program Specialist Community Development - Administration +1 Building Inspector I Community Development - Building +1 Electric Foreman Electric Utility - Construction +1
Administrative Clerk Electric Utility - Management Services +1 Electrician Public Works - Water Services +1
W/WW Maintenance Worker Public Works - Water Services +1 Total +13
Position: Step 0 Step 1 Step 2 Step 3 Step 4
Administrative Analyst - Conf. 63,241.07$ 66,403.13$ 69,723.28$ 73,209.45$ 76,869.92$ Administrative Analyst - (LCMMA) 60,229.59$ 63,241.07$ 66,403.13$ 69,723.28$ 73,209.45$

• Add (1) Management Analyst – this position is being requested in Public Works Administration to oversee the solid waste contract and will help to develop, coordinate and implement source reduction, recycling, composting and other programs as required by legislation. This position will be funded through Waste Management.
• Add (1) Administrative Assistant and eliminate (1) Administrative Clerk in Community Development – the Administrative Clerk position was approved at FY 22 mid- year however the supported needed for the Planning Commission, SPARC and LIC requires the higher level Administrative Assistant. Additionally, the Administrative Assistant was eliminated at FY 21 mid- year; this will restore the lead administrative function for the department.
• A
dd (1) CDD Program Specialist – this position is being requested to provide assistance with increased grant funding and programs in Community Development. It will provide assistance in grant applications, administration of grants, notice of funding availability (NOFA), Annual Action Plan, Consolidated Action Plan and other State/Federal reporting requirements.
• A dd (1) Building Inspector I – this position is being requested in Community Development to address the increased demand for inspections. This position also examines plans and projects to ensure compliance with codes and regulations.
• A dd (1) Electric Foreman – this position is being requested in Electric Utility to restore and previous position that had been converted to an operator to address emergencies and shortages. This position is needed to provide for three complete construction and maintenance crews for upcoming projects and activities.
• A
dd (1) Administrative Clerk – this position is being requested in Electric Utility to provide additional administrative support to all office and field personnel as well as assist with administrative support for the City's Business Development/Customer Programs Manager. This position will assist clerical staff with increased demands such as maintaining and processing rebates, invoice entry, contract payments, outage notifications, cal card reconciliations, payroll, permits, project master, time entry activities, and medical discount application processing.
• A
dd (1) Electrician – this position is being requested as a shared position in Water and Wastewater to address increased electrical maintenance of new traffic signals water and wastewater facilities which includes two water storage tanks and associated pump stations. • A dd (1) Water/Wastewater Maintenance Worker - this position is being requested as a shared position in Water and Wastewater to address infrastructure maintenance needs and demands for services.

FY 2022/23 Investment Policy – staff will be bringing the annual investment policy with the annual budg et adoption each year. The investment policy is attached to this report. There are no changes requested for FY 2022/23.

FISCAL IMPACT: The 2022/23 budget provides an expenditure plan for all funds. The All -Funds expenditure budget is project to be $262,928,000. General Fund revenues and expenses are projected at $73,892,170.

FUNDING AVAILABLE: N/A

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

Attachment A – Appropriations Spending Limit
Attachment B – Job Specification for Administrative Analyst Attachment C – Investment Policy
ATTACHMENT A
AMOUNT
Last Year's Limit 124,907,868
Adjustment Factors
1 Population % 1.0064
2 Inflation % 1.0755
Total Adjustment % 1.0824
Annual Adjustment 10,290,310
Adjustments None
Total Adjustment 10,290,310
2022‐23 APPROPRIATIONS SPENDING LIMIT 135,198,178
AMOUNT
Proceeds of Taxes 59,980,830
Exclusions ‐
Appropriations subject to limitations 59,980,830
Current Year Limit 135,198,178
OVER (UNDER) LIMIT (75,217,348)
2022‐23 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
2022‐23 APPROPRIATIONS SPENDING LIMIT
2022‐23
Appropriations Subject to Limitation
CITY OF LODI July 2022

ADMINISTRATIVE ANALYST

DEFINITION
Under general direction performs a variety of complex and technical duties in support of a department, division or Citywide activities and functions; makes recommendations for action and assists in policy, procedure, and budget development and implementation; fulfills other administrative assignments in functional areas such as grant administration, contract administration, public informati on, legislative monitoring, and regulatory compliance.

SUPERVISION EXERCISED AND RECEIVED
This classification works under the general direction from higher level staff, and may provide technical oversight to other staff.

EXAMPLES OF DUTIES
Plans and organizes administrative studies relating to the activities or operations of the department, functional area to which assigned, or the operations of the City as a whole; Assists in the development of goals, objectives, policies and procedures; investigates, interprets, analyzes and prepares recommendati ons in relation to proposals for new programs, grants and/or servic es; analyzes, interprets and explains City policies and procedures; confers with members of the public to explain procedures and policies; Gathers information from departments and out side agencies in the performance of assigned studies;
Provides assistance in the preparation of the departmental budget and monitors the expenditures during fiscal year;
Serves as department liaison with Human Re sources, Payroll or Risk Management and other departments as needed;
Reviews contracts, invoices, vouchers, and other City agreements and performs various financial analysis and reconciliations;
Provides technical assistance to others on administrative and analytical matters; may develop or utilize computer applications to a ssist with analytical studies or departmental operations;
Prepares technical reports, correspondence, and other written materials; Provides excellent customer service and demonstrates tact and diplomacy when discussing sensitive and confidential matters;

ATTACHMENT B

CLASS SPECIFICATION CITY OF LODI
Administrative Analyst

When assigned to Human Resources:

Prepares recruitment materials includi ng job announcements, writes and places advertising, assembles mailing lists, and pr epares and issues candidate notices; May screen job applicants to determine eligib ility; Schedules, administers, and scores written, performance, or or al examinations; Compiles, organizes and evaluates data related to testing and job dat a files; Locates individuals to serve on interview boards; Participates in job fairs as needed;

Conducts routine position classification and sa lary studies; Calculates salary levels; Prepares salary publications; Responds to salary surveys from outside agencies;

Performs complex calculations related to ex amination statistics, sick leave conversion, COBRA payments and eligibility periods, benef its coverage and payments, retirement calculations, and related;

Composes and types confidential corres pondence pertaining to Human Resources; Compiles data for use in a variety of spec ial reports; Prepares and maintains a variety of complex records and files including federal and state reporting, affirmative action, position control, salary hist ory, negotiated agreement s, training logs, personnel files, and related matters;

Administers requests for leaves of absence, including Pregnancy Disability Leave (PDL), Family Medical Leave Act (FMLA), California Family Rights Act (CFRA), and personal leaves of absence;

Performs other duties relat ed to the operation of the depar tment and the City including additional duties that enable t he department and City to meet the diverse needs of its community.

MINIMUM QUALIFICATIONS

Knowledge of:

Fundamentals of the law, regulations and policies governing benef its, insurance, COBRA, employment and labor laws, and City policies and procedures;

Basic principles and procedures of related area of assignment such as insurance, benefits, retirement, recruitment and selection, and position classification;

Systems and methods for record keeping, report preparation, and file maintenance;

Applicant tracking and Human Resources Info rmation Systems (HRIS); General office methods including the operation of personal computers and standard office equipment.

Ability to:

Interpret, explain, and apply complex regulations, rules, and agreements;

CLASS SPECIFICATION CITY OF LODI
Administrative Analyst

Perform professional analytical work in support of an assigned department, division or program;

Assist in the administration of various pay roll programs, such as insurance, benefits, retirement, and employees deductions and/or time;

Maintain confidentiality of Human Resources related materials and issues;

Multi-task and manage workload and priorities with frequent disruptions;

Prepare a variety of written reports, re cords, and correspondence using a personal computer; Accurately enter and maintain data and generate reports in an applicant tracking and HRIS system; Perform complex arithmetical and bas ic statistical calculations accurately;

Communicate clearly and concisely, both orally and in writing;

Provide excellent customer se rvice to internal and external customers; Establish and maintain effective working relationships with those contacted in the course of the work.

EDUCATION AND EXPERIENCE
Any combination equivalent to education and experience that would likely provide the required knowledge and ability would be qualifying. A typical combination is:

Education:

Bachelor’s degree from an accr edited college or university with coursework related to human resources management, business administration, finance, or other related field.

Experience:

Five years of increasingly responsible cler ical experience including one year performing analytical work in a Human Resources (w hen assigned to a Human Resource position) or Finance office (when assigned to a Departmental position).

LICENSES AND CERTIFICATES
Possession of a valid Driver's License (class C) issued fr om the California Department of Motor Vehicles.

WORK/ENVIRONMENTAL CONDITIONS
Work is generally performed in an office setting with extensive public contact and frequent interruptions.

Primary functions require sufficient physical ab ility to work in an office setting; to stand or sit for prolonged periods of time; to occasionally stoop, bend, kneel, crouch, reach and twist; to lift, carry, push and/or pull light to moderate amounts of weight; to operate office equipment requiring repetitive hand movement and fine coordination including use of a computer keyboard; a ttending meetings and take notes ; talk or hear, in person and

CLASS SPECIFICATION CITY OF LODI
Administrative Analyst

by telephone; and using personal computer s, cell phones, and/or hand held electronic devices.

*FLSA Status: EXEMPT

CITY OF LODI

INVESTMENT POLICY
Fiscal Year 2022/23
Resolution 2022 -

ATTACHMENT C

TABLE OF CONTENTS

1.1 PURPOSE ............................................................................................................................................ 1

1.2 POLICY ................................................................................................................................................. 1

1.3 SCOPE ................................................................................................................................................. 1

1.4 PRUDENT INVESTOR STANDARD .................................................................................................... 1

1.5 PUBLIC TRUST .................................................................................................................................... 2

1.6 ETHICS AND CONFLICTS OF INTEREST ......................................................................................... 2

1.7 OBJECTIVES ....................................................................................................................................... 3

1.8 LIMITING MARKET VALUE EROSION ............................................................................................... 4

1.9 STATEMENT OF INVESTMENT POLICY ........................................................................................... 4

1.10 DELEGATION OF AUTHORITY......................................................................................................... 4

1.11 MONITORING AND ADJUSTING THE PORTFOLIO ........................................................................ 4

1.12 INTERNAL CONTROL ....................................................................................................................... 5

1.13 REPORTING ...................................................................................................................................... 5

1.14 AUTHORIZED INVESTMENTS .......................................................................................................... 6

1.15 BANKS AND QUALIFIED BROKER/DEALERS ................................................................................. 7

1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS ....................................................................... 8

1.17 SAFEKEEPING AND COLLATERILIZATION ................................................................................... 8

1.18 ADMINISTRATION ............................................................................................................................ 9

2.1 INTERNAL CONTROLS - GENERAL .............................................................................................. 11

2.2 INTERNAL CONTROL PROCEDURES ........................................................................................... 12

2.3 TREASURY FUNCTION RESPONSIBILITIES ............................................................................... 13

2.4 BROKER/DEALER QUESTIONNAIRE ........................................................................................... 14

2.5 BROKER DEALER CERTIFICATION ............................................................................................. 16 GLOSSARY.………………………… ……………………………… ……………………..……………………..17

CITY OF LODI

INVESTMENT POLICIES
1 1.1 PURPOSE
The purpose of this policy is to state the City’s policies for the investment of surplus funds in the City treasury in a prudent and systematic manner conforming to all state and local statutes governing the investment of public funds. Safety of principal is given the highest priority. In addition, this statement is intended to formalize investment-related activities to provide the highest investment return with maximum security while meeting daily cash flow demands. The ultimate goal is to protect the City’s pooled investment cash while enhancing the City’s economic status.

1.2 POLICY

It is the policy of the City of Lodi to invest public funds in a manner which will provide a sound investment return with maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statues governing the investment of public funds.

The City of Lodi’s investment policy has three objectives: (1) protect principal, (2) provide for liquidity needs, and (3) obtain the most reasonable rate of return possible within the first two objectives. The overarching theme of this policy is to utilize the “prudent investor” standard (see discussion below). This affords a broad range of investment opportunities so long as the investment is prudent and permissible under current state and local law.

1.3 SCOPE

The investment policy applies to all funds under the direct authority of the City Treasurer of the City of Lodi, including but not limited to the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds and Trust and Agency Funds. All funds are accounted for in the City’s Comprehensive Annual Financial Report.

Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements. Proceeds of bonds will be invested in accordance with the ordinance, resolution, indenture or other agreement governing the issuance of the bonds.

1.4 PRUDENT INVESTOR STANDARD

The prudent investor standard requires all those involved in the investment process to act as if the assets in the portfolio are their own. By the prudent investor standard, the rules outlined in this policy, and other applicable state and local laws and regulation, are binding constraints to be considered in taking any action.

The City Council, Treasurer and all persons authorized to make investment decisions on behalf of the City are trustees and therefor fiduciaries subject to the prudent investor standard. The “prudent investor” standard, is in accordance with Government Code Section 53600.3 which states “…all governing bodies of local agencies or persons authorized to

CITY OF LODI

INVESTMENT POLICIES
2 make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard.

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, 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 agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
It is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time.

It is further recognized, that in a well-diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis.

These occasional losses must be considered within the context of the overall investment program objectives and the resultant long tem rate of return.

The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner, appropriate action is taken to control adverse developments, and the relieved parties acted at all times in a fashion that met their fiduciary obligation to the City of Lodi.

1.5 PUBLIC TRUST

All participants in the investment process shall act as fiduciaries and custodians of public funds. Investment officials shall recognize the portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

1.6 ETHICS AND CONFLICTS OF INTEREST
As a minimum standard, the City Treasurer and all other personnel authorized to make investment decisions are governed by The Political Reform Act of 1974 regarding disclosure of material financial interests as well as Government Code Section 87103. The City Treasurer and all other personnel authorized to make investment decisions shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. The Treasurer is

CITY OF LODI

INVESTMENT POLICIES
3 required to make known to the City Manager and City Council any conflicts of interest that may arise immediately upon becoming aware of a potential conflict. The Treasurer and other key finance personnel are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPCC).

1.7 OBJECTIVES

Funds of the City will be invested with the following objectives in priority order:

Safety:

Safety of principal is the foremost objective of the investment program. Investments of the City of Lodi shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The City of Lodi will diversify its investments by security type and institution. Financial institutions and broker/dealers will be prequalified and monitored as well as investment instruments they propose.

The City shall seek to preserve principal by mitigating two types of risk:

Credit Risk – Defined as the risk of loss due to failure of the issuer of a security. Credit risk shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City’s cash flow.

Market Risk – Defined as the market value fluctuations due to overall changes in the general level of interest rates. Market risk shall be mitigated by limiting the weighted average maturity of the City of Lodi s investment portfolio to three and one-half years, the maximum maturity of any one security to five years, and structuring the portfolio based on historic and current cash flow analysis, thereby eliminating the need to sell securities prior to maturity.

Liquidity:

The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This will be accomplished through maturity diversification in accordance with California Government Code 53635 and the State Local Agency Investment Fund with immediate withdrawal provision.

Yield:

CITY OF LODI

INVESTMENT POLICIES
4 The City’s investment portfolio shall be designed with the objective of attaining a sound yield (rate of return) through budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio. The City will attempt to obtain the most reasonable yield possible when selecting an investment, provided the criteria for safety and liquidity of the total portfolio are met.

1.8 LIMITING M ARKET VALUE EROSION

It is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines:

 All immediate and anticipated liquidity requirements shall be addressed prior to purchasing investments.
 Maturity dates for investments shall coinci de with significant cash flow requirements, where possible, to assist with cash requirements at maturity.  All securities shall be purchased with the in tent to hold all investments to maturity.

However, economic or market conditions may change, making it in the City’s best interest to sell or trade a security prior to maturity.

1.9 STATEMENT OF INVESTMENT POLICY

The City of Lodi’s Investment Policy shall be adopted by Resolution of the City Council. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidly and yield, and its relevance to current law and financial and economic needs. Any amendments to the policy shall be forwarded to the City Council for approval.

1.10 DELEGATION OF AUTHORITY

The Treasurer is designated by the authority of the legislative body as the investment officer of the City as provided for in Government Code Section 53607 and is responsible for the investment decisions and activities of the City. The Treasurer will develop and maintain written administrative procedures for the operation of the investment program, consistent with this investment policy. The Treasurer may delegate certain day to day functions as necessary to execute this policy and manage the portfolio in the most efficient and effective manner.

The Treasurer shall hereafter assume full responsibility for such transactions until such time as the delegation of authority is revoked, and shall make a quarterly report of such transactions to the legislative body.

1.11 MONITORING AND ADJUSTING THE PORTFOLIO

CITY OF LODI

INVESTMENT POLICIES
5 The Treasurer will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly. It is the City’s full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars.

1.12 INTERNAL CONTROL

The Treasurer will establish a system of written internal controls, which will be reviewed annually by the City’s independent audit firm. The controls will be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions.

1.13 REPORTING

The Treasurer will submit a quarterly investment report to the City Council, in accordance with Government Code Section 53646, to disclose the following information:
• A listing of individual securities held at the end of the reporting period by authorized investment category.
• Notation of Securities purc hased within the reporting period. • Percentage of the portf olio represented by each investment category. • Institution.
• Average life and final maturity of all investments listed. • Coupon, discount or earnings rate.
• Par value or cost of the security
• Current market value of securities with matu rity in excess of 12 months and the source of this valuation.
• Ability of the city to meet its expenditure requirements for the next six months or provide an explanation of why sufficient funds will not be available as required by Gov. Code 53646 (b)(3).

The quarterly investment report to the Lodi City Council, acting legislative authority, as endorsed by Government Code Section 53646, will be in addition to the Treasurer’s monthly report and accounting of all receipts, disbursements and fund balances.

CITY OF LODI

INVESTMENT POLICIES
6 1.14 AUTHORIZED INVESTMENTS

The City will invest surplus funds not required to finance the immediate needs of the City as provided in California Government Code Sections 16429.1, 53601, 53601.6, 53601.8, 53635, 53635.2, 53638 and 53684. In selecting authorized investments consideration must be given to credit ratings, maturities, current makeup of the City’s portfolio and collateralization of applicable instruments. A list of eligible instruments is provided below.

Permitted Investments Maturity Maximum % of
Portfolio
Minimum
Quality
Requirements
U.S. Treasury Obligations (Bills, notes and
bonds)
5 years 100% None
US Government Agency Securities and
Instrumentalities
5 years 100% None
Bankers Acceptances 180 days 40% None
Certificates of Deposit 5 years 100% None
Negotiable Certificates of Deposit 5 years 30% None
Commercial Paper 270 days 30% Credit Rating
of P1/A1 or
A1+/F1 or F1+
by Moody’s,
S&P or Fitch
California State Local Agency Investment
Fund
Indefinite 100% None
Passbook Deposits Indefinite 100% None
Mutual Funds and Money Market Mutual
Funds
N/A 20% Multiple
Requirements
per Gov’t
Code
Medium Term Corporation Notes 5 years 30% A-/A3/A- by
Moody’s, S&P,
or Fitch
Joint Powers Authority Pool Indefinite 30%
(Funds held at
NCPA shall not
count to this limit)
Multiple
Requirements
per Gov’t
Code
Certificate of Deposit Account Registry
Service (CDARS)
Indefinite 30% None

CITY OF LODI

INVESTMENT POLICIES
7 Supranational Obligations 5 years 30% AA-/Aa3/AA-
by Moody’s,
S&P, or Fitch
Municipal Securities (50 States or
California Local Agencies)
5 years 100% None

Investments not listed in this section, including those otherwise authorized by California Government Code are ineligible investments for the City of Lodi. Ineligible investments include, but are not limited to, common stocks, long term (over five years in maturity) notes and bonds, swaps, options, derivatives, repurchase and reverse repurchase agreements and swap agreements.

Pooled funds invested for the City by entities such as California State Local Agency Investment Fund, CalTRUST, NCPA, or other Joint Powers Authority Pools may invest in swaps, options, derivatives or repurchase and reverse repurchase agreements as permitted by California Government Code and the respective policy guidelines of the investing agency.

1.15 BANKS AND QUALIFIED BROKER/DEALERS

The Treasurer will consider the credit worthiness of institutions in selecting financial institutions for the deposit or investment of City funds. These institutions will be monitored to ensure their continued stability and credit worthiness.

The City shall conduct investment transactions only with qualified banks, savings and loans, and broker/dealers. The Treasurer shall investigate dealers who wish to do business with the City to determine that they are adequately capitalized, have no pending legal action against the firm or the individual broker and that they participate in markets appropriate to the City’s needs. Third parties in this category will be required to provide their most recent Consolidated Report of Condition (“call report”) prior to transacting business with the City and at the request of the Treasurer during the course of conducting business.

The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will be maintained of approved security brokers/dealers selected for credit worthiness. The City shall send a copy of the current investment policy to all broker/dealers approved to do business with the City. Written and signed confirmation, on company letterhead, of receipt of this policy shall be considered evidence that the dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this policy and all applicable state and federal laws and regulations.

CITY OF LODI

INVESTMENT POLICIES
8 In addition, all financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
• Audited financial statements
• Proof of Financial Industry Regul atory Authority registration. • Trading Resolution
• Proof of State Registration
• Certification of having read t he City of Lodi’s investment policy and depository contracts.

An annual review of the financial condition and registration of qualified bidders will be conducted by the Treasurer.

The City will not normally use more than three qualified dealer/brokers to obtain bids.

1.16 PURCHASE OF CDs FROM LOCAL INSTITUTIONS

To the extent reasonable and within the limits specified above, the Treasurer may purchase a Certificate of Deposit, up to the amount fully insured by the Federal Deposit Insurance Corporation (FDIC), from each bank and savings and loan institution located within the corporate limits of the City to promote economic development and as a statement of support for those institutions maintaining an office in Lodi. These investments are limited to those institutions which offer Certificates of Deposit insured by the Federal Deposit Insurance Act and have a Community Reinvestment Act Rating of satisfactory or above.

To aid in the diversification of the portfolio, additional Certificates of Deposit in amounts up to fully insured FDIC limits, may be purchased from local institutions provided the investment has the safety, liquidity and a rate of return comparable to that offered from LAIF at the time the original investment is made.

Additional Certificates of Deposit may be purchased from a single institution so long as the amounts are fully collateralized as described in Section 1.17.

1.17 SAFEKEEPING AND COLLATERILIZATION

All investment securities purchased by the City will be held in third-party safekeeping by an institution designated as primary agent. The custodian will hold these securities in a manner that establishes the City’s right of ownership. The primary agent will issue a safekeeping receipt to the City listing the specific instruments, rate, maturity and other pertinent information. Deposit type securities (i.e., certificates of deposit) will be collateralized.

CITY OF LODI

INVESTMENT POLICIES
9 Collateral for time deposits in savings and loans will be held by the Federal Home Loan Bank or an approved Agent of Depository. If collateral is government securities, 110% of market value to the face amount of the deposit is required. Promissory notes secured by first mortgages and first trust deeds used as collateral require 150% of market value to the face amount of the deposit. An irrevocable letter of credit issued by the Federal Home Loan Bank of San Francisco requires 105% of market value to the face amount of the public deposit.

The collateral for time deposits in banks should be held in the City’s name in the bank’s Trust Department, or alternately, in the Federal Reserve Bank. The City may waive collateral requirements for deposits which are fully insured up to limits prescribed by the FDIC.

The amount of securities placed with an agent of depository will at all times be maintained in accordance with California Government Code 53652.

1.18 ADMINISTRATION
The following administrative policies will be strictly observed:

Payment:

All transactions will be executed on a delivery versus payment basis which should be done by the City’s safekeeping agent.

Bid:

A competitive bid process in which no less than three competitive bids are obtained, when practical, will be used to place all investment purchases. Typically when soliciting bids, the Treasurer or Supervising Budget Analyst will specify through email with a blind copy to qualified brokers the following: maturity date, credit quality, eligible investment category, amount available to invest and security names the City will not consider due to overconcentration. The open window for providing offers shall be a minimum of one hour and the City’s review period shall be no more than one hour in order to minimize the risk of market price fluctuations between security offer and the City’s decision to purchase.

Securities not matching the requirements for the portfolio will not be considered in that solicitation. The Treasurer has the right to refuse all bids and reissue a solicitation. If less than three qualifying responses are received, the Treasurer may choose to select from the responses received or to reissue the solicitation.

Wire Transfers:

CITY OF LODI

INVESTMENT POLICIES
10 All wire transfers will be initiated by the Supervising Budget Analyst and approved by the Treasurer. The City’s utilizes electronic dual controls on all wire transfers requiring that approvers cannot be initiators and vice versa.

Pre-formatted wire transfers will be used to restrict the transfer of funds with preauthorized accounts only.

Confirmations:

Receipts for confirmation of a purchase of authorized securities should include the following information: trade date; par value; maturity; rate; price; yield; settlement date; description of securities purchased; net amount due; third-party custodial information. Confirmations of all investment transactions are to be received by the Treasurer not later than the business day immediately following the trade. Same day confirmations are preferred.

Pooled Cash:

The City will consolidate into one bank account and invest on a pooled concept basis.

Interest earnings will be allocated monthly based on current cash balances.

Bond Proceeds:

The City will comply with applicable federal tax law and regulations in connection with the investment of bond proceeds.

CITY OF LODI

INVESTMENT POLICY
11 2.1 INTERNAL CONTROLS - GENERAL

Through this system of internal control, the City is adopting procedures and establishing safeguards to prevent or limit the loss of funds invested or held for investment due to errors, losses, misjudgments and improper acts. Internal control procedures are not intended to address every possible situation but are intended to provide a reasonable and prudent level of protection for the City’s funds.

Objectives:

These procedures and policies are established to ensure:

• the orderly and efficient conduct of invest ment practices, including adherence to investment policies
• the safeguarding of surplus cash
• the prevention or detec tion of errors and fraud
• the accuracy and completeness of investment records
• the timely preparation of reliable investment reports

General Control Policies:

The following policies are to be used to safeguard investments:
• Organization
A description of responsibilities and procedures for the investment of City funds, lines of authority and reporting requirement will be maintained.

• Personnel
Only qualified and assigned personnel will be authorized to approve investment transactions; make and liquidate investments; maintain investment records; and maintain custody of negotiable instruments. Personnel assigned responsibility for the investment of City surplus funds will maintain their professional qualifications by continued education and membership in professional associations.

• Segregation of functions
No one having general ledger functions will have responsibility for the investment of City funds.

• Safekeeping
All securities are to be held in the name of the City of Lodi. The City will contract with a third party, usually a bank, to provide custodial services and securities safekeeping.

Although a cost is involved, the risk of losing physical securities outweighs the fees involved. Preference should be given to custodial services which include reporting

CITY OF LODI

INVESTMENT POLICY
12 services as part of their service, including marking the portfolio to market value, performance evaluation and internal reporting

• Reconciliation of records
Regular and timely reconciliation will be made of detailed securities records with the general ledger control account.

• Performance evaluation
Performance statistics will be maintained and reported monthly as provided in the Investment Policies.

2.2 INTERNAL CONTROL PROCEDURES

Assigned Responsibilities:

a. City Council responsibilities:
• Adoption of City’s investm ent policies by Resolution • Review and evaluation of investment performance.

b. Treasurer duties and responsibilities:
• Formulating, recommending and implem enting the City’s investment policies • Approves all investment transactions prior to execution of any transaction • Approves broker/dealer arrangements.

c. Supervising Budget Analyst duties and responsibilities:
• Recommends broker/dealer arrangements
• Recommends investments
• Executes investment transactions
• Maintains records of all investment transactions
• Prepares quarterly investment report for City Council review • Prepare fiscal year end investment repor ts for City’s independent audit firm review • Review’s financial conditi on of the City’s depositories (banks) at least annually for compliance with collateralization requirements under government code and financial condition and reports results to City Treasurer.

d. Financial Services Manager duties and responsibilities:
• Maintains general ledger control acc ount and duplicate records of investment transactions
• Verifies investment records and reconciles detailed securities records with general ledger control accounts.

CITY OF LODI

INVESTMENT POLICY
13 e. City’s independent audit firm:
• Will review the City’s investment po licies and procedures and make appropriate recommendations and findings as to compliance and steps to be taken to improve internal controls.

2.3 TREASURY FUNCTION RESPONSIBILITIES

FUNCTION

1. Recommendations:
• Recommends broker/dealer arrangements
• Recommends investments

2. Authorization of Investment Transactions
• Formal investment policy prepared by
• Formal investment policy approved by
• Investment transactions approved by
• Broker/deal arrangements approved by

3. Execution of Investment Transactions

4. Recording of Investment Transactions
• Recording of transactions in Treasurer’s records
• Recording of transactions in Accounting records

5. Safeguarding of assets and records
• Maintenance of Treasurer’s records
• Reconciliation of Treasurer’s records to
accounting records
• Review of (a) financial institution’s financial
condition, (b) safety, liquidity, and potential yields
of investment instruments, and (c) reputation and
financial condition of investment brokers
• Periodic reviews of collateral
• Review and evaluation of performance

6. Preparation of reports

7. Annual review of investment portfolio for
conformance to City’s investment policy

RESPONSIBILITIES

Supervising Budget Analyst
Supervising Budget Analyst

Treasurer
City Council
Treasurer
Treasurer
Supervising Budget Analyst

Supervising Budget Analyst
Financial Services Manager

Supervising Budget Analyst

Supervising Budget Analyst
City Council
Supervising Budget Analyst
City’s Audit Firm

CITY OF LODI

INVESTMENT POLICY
14 2.4 BROKER/DEALER QUESTIONNAIRE

BROKER/DEALER QUESTIONNAIRE
CITY OF LODI TREASURER’S OFFICE
P. O. Box 3006
Lodi, California 95241

1 . N a m e :

2 . B r a n c h A d d r e s s :

3. Telephone No.:

4. Primary Account Representative:

Name:

Title:

Telephone No.:

5. Is your firm a primary dealer in US Government Securities? Y/N

6. Identify the personnel who will be trading with or quoting securities to our agencies employees:

Name Title Telephone No.

7. National Headquarters Address:

C o r p o r a t e C o n t r a c t :

Telephone No.:

Compliance Officer (Name, Address, Telephone):

8. What was your firm’s total volume in US Government and Agency securities trading last calendar year?

9. Which securities are offered by your firm?
( ) US Treasury ( ) Commercial Paper
( ) US Treasury Notes ( ) BAs Domestic
( ) US Treasury Bonds ( ) BAs Foreign
( ) Agencies (specify) ( ) Repurchase Agreements
( ) Negotiable CD’s ( ) Reverse Repurchase Agreements

10. List your personnel who have read the City of Lodi Treasurer’s Investment Policy.

11. Please identify your public-sector clients in our geographical area who are most comparable to our government with which you currently do business.

12. Have any of your clients ever sustained a loss on a securities transaction arising from misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, please explain.

CITY OF LODI

INVESTMENT POLICY
15 13. Have any of your public-sector clients ever reported to your firm, is officers or employees, orally or in writing, that they sustained a loss exceeding 10% of the original purchase price in a single year on any individual security purchased thorough your firm? Explain.

14. Has your firm ever been subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees ever been so investigated? Explain.

15. Has a public sector client ever claimed in writi ng that your firm or members of your firm were responsible for investment losses?

16. Please include samples of research reports that your firm regularly provides to public-sector clients.

17. Please explain your normal delivery proces s. Who audits these fiduciary systems?

18. Please provide certified financia l statements and other indicators regarding your firm’s capitalization.

19. Describe the capital line and trading limits that su pport/limit the office that would conduct business with our government.

20. What training would you provide to our employees and investment officers?

21. Has your firm consistently complied with the Federal Reserve Bank’s capital adequacy guidelines? As of this date, does your firm comply with the guidelines? Has your capital position every fallen short? By what factor (1.5x, 2x, etc.). Does your firm presently exceed the capital adequacy guidelines, measure of risk? Include certified documentation of your capital adequacy as measured by the Federal Reserve standards.

22. Do you participate in the Securities Investor Pr otection Corporation (SIPC) insurance program? If not, why?

23. What portfolio information do you require from your clients?

24. What reports, confirmations and paper trail will we receive?

25. Enclose a complete schedule of fees and charges for various transactions.

26. How many and what percen tage of your transactions failed last month? Last year?

27. Describe the precautions taken by your firm to protect the interest of the public when dealing with governmental agencies as investors.

28. Is your firm licensed by the State of California as a broker/dealer? Y/N ________

CITY OF LODI

INVESTMENT POLICY
16 2.5 BROKER/DEALER CERTIFICATION

CERTIFICATION ATTACHEDCERTIFICATION

I hereby certify that I have personally read the latest adopted resolution of investment policies and objectives of the City of Lodi Treasurer and the California Government Codes pertaining to the investments of the City of Lodi, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out to transaction conducted between our firm and the City of Lodi. All sales personnel will be routinely informed of the City of Lodi’s investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of Lodi of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.

S I G N E D T I T L E D A T E

COUNTERSIGNED DATE
(Person in charge of government securities operations)

NOTE: Completion of Questionnaire is only part of the City of Lodi’s Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Lodi.

On this ____________ day of ______________ 20_____ before me the undersigned Notary Public personally appeared
( ) personally known to me
( ) proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) subscribed to the within instrument and acknowledged that executed it.

State of

C o u n t y o f

WITNESS my hand and official seal.

Notary’s Signature

CITY OF LODI

INVESTMENT POLICY
17 GLOSSARY

AGENT: an agent is a firm or individual which executes orders for others or acts on behalf of others (the principal). The agent is subject to the control of the principal and does not have title to the principal’s property. The agent may charge a fee or commission for this service.

AGENCIES: federal agency securities and/or Government-sponsored enterprises.

AGREEMENT: an agreement is an arrangement or understanding between individual traders to honor market quotes within predetermined limits on dollar amount and size.

AMORTIZATION: straight-line reduction of debt by means of periodic payments sufficient to meet current interest charges and to pay off the debt at maturity.

ARBITRAGE: a technique used to take advantage of price differences in separate markets.

This is accomplished by purchasing securities, negotiable instruments or currencies in one market for immediate sale in another market at a better price.

ASKED: the price at which securities are offered.

AT THE MARKET: a trading term for the buying or selling of securities at the current market price rather than at a predetermined price.

BANKERS ACCEPTANCE (BA): a bearer time draft for a specified amount payable on a specified date. An individual or business seeking to finance domestic or international trade draws it on a bank. Commodity products collateralize the BA. Sale of goods is usually the source of the borrower’s repayment to the bank. The bank finances the borrower’s transaction and then often sells the BA on a discount basis to an investor. At maturity, the bank is repaid and the investor holding the BA receives par value from the bank.

BASIS PRICE: price expressed in yield-to-maturity or the annual rate of return on the investment.

BEAR MARKET: a period of generally pessimistic attitudes and declining market prices. (Compare: Bull market)

BELOW THE MARKET: a price below the current market price for a particular security.

BID AND ASKED OR BID AND OFFER: the price at which an owner offers to sell (asked or offer) and the price at which a prospective buyer offers to buy (bid). It is often referred to as a quotation or a quote. The difference between the two is called the spread.

BOND: an interest-bearing security issued by a corporation, government, governmental agency or other body, which can be executed through a bank or trust company. A bond is a

CITY OF LODI

INVESTMENT POLICY
18 form of debt with an interest rate, maturity, and face value, and is usually secured by specific assets. Most bonds have a maturity of greater than one year, and generally pay interest semiannually.

BOND ANTICIPATION NOTE (BAN): short-term notes sold by states and municipalities to obtain interim financing for projects which will eventually be financed by the sale of bonds.

BOND DISCOUNT: the difference between a bond’s face value and a selling price, when the selling price is lower than the face value.

BOND RATING the classification of a bond’s investment quality. (See: Rating).

BOND RESOLUTION: a legal order or contract by a governmental unit to authorize a bond issue. A bond resolution carefully details the rights of the bondholders and the obligation of the issuer.

BOOK VALUE: the amount at which a security is carried on the books of the holder or issuer.

The book value is often the cost, plus or minus amortization, and may differ significantly from the market value.

BROKER: a middleman who brings buyers and sellers together and handles their orders, generally charging a commission for this service. In contrast to a principal or a dealer, the broker does not own or take a position in securities.

BULL MARKET: a period of generally optimistic attitudes and increasing market prices. (Compare: Bear Market).

BUYERS MARKET: a market where supply is greater than demand, giving buyers an advantage in purchase price and terms.

CALL: an option to buy a specific asset at a certain price within a particular period.

CALLABLE: a feature which states a bond or preferred stock may be redeemed by the issuer prior to maturity under terms designated prior to issuance.

CALL DATE: the date on which a bond may be redeemed before maturity at the option of the issuer.

CALLED BONDS: bonds redeemed before maturity.

CALL PREMIUM: the excess paid for a bond or security over its face value.

CALL PRICE: the price paid for a security when it is called. The call price is equal to the face value of the security, plus the call premium.

CITY OF LODI

INVESTMENT POLICY
19 CALL PROVISION: the call provision describes the details by which a bond may be redeemed by the issuer, in whole or in part, prior to maturity. A Security with such a provision will usually have a higher interest rate than comparable, but noncallable securities.

CAPITAL GAIN OR LOSS: the amount that is made or lost, depending upon the difference between the sale price and the purchase price of any capital asset or security.

CAPITAL MARKET: the market in which buyers and sellers, including institutions, banks, governments, corporations and individuals, trade debt and equity securities.

CASH SALE: a transaction calling for the delivery and payment of the securities on the same day that the transaction takes place.

CERTIFICATE OF DEPOSIT (CD): debt instrument issued by a bank that usually pays interest. Institutional CD’s are issued in denominations of $100,000 or more. Maturities range from a few weeks to several years. Competitive forces in the marketplace set interest rates.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): deposits made with a “selected” depository institution, in accordance with California Government Code Section 53601.8, that uses a private entity to assist in the placement of certificates of deposit.

Such deposits shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The selected depository institution shall serve as custodian for each certificate of deposit that is issued with placement service for the City of Lodi’s account.

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

COLLATERAL NOTE: a promissory note, which specifically mentions the collateral, pledged by the borrower for the repayment of an obligation.

COMMERCIAL PAPER: short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporarily idle cash.

Such instruments are unsecured and usually discounted, although some are interest-bearing.

COMMISSION: the brokers or agent’s fee for purchasing or selling securities for a client.

COUPON: the annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value.

COVENANT: a pledge in the bond resolution or indenture of the issuing government to perform in a way that may benefit the bondholders, or to refrain from doing something that might be disadvantageous to them.

CITY OF LODI

INVESTMENT POLICY
20 COVER: the spread between the winning bid (or offer) and the next highest bid (or the next lowest offer). It is useful as a basis for evaluation of the bids.

COVERAGE RATIO: the ratio of income available to pay a specific obligation versus the total amount obligated. This is a measure of financial stability.

CREDIT ANALYSIS: a critical review and appraisal of the economic and financial condition of a government agency or corporation. The credit analysis evaluates the issuing entity’s ability to meet its debt obligations, and the suitability of such obligations for underwriting or investment.

CURRENT MATURITY: amount of time left to the maturity of an obligation.

DEBENTURE: a bond secured by the general credit of the issuer rather than being backed by a specific lien on property as in mortgage bonds.

DEBT COVERAGE: this term is normally used in connection with revenue and corporate bonds. It indicates the margin of safety for payment of debt, reflecting the number of times by which earnings for a certain period of time exceed debt payable during the same period.

DEBT LIMIT (OR CEILING): the maximum amount of debt that can legally be acquired under the debt-incurring power of a state or municipality.

DEBT SERVICE: interest and principal obligation on an outstanding debt. This is usually for a one-year period.

DEFAULT: failure to pay principal or interest promptly when due.

DELIVERY VERSUS PAYMENT: securities industry procedure, common with institutional accounts, whereby delivery of securities sold is made to the buying customer’s bank in exchange for payment, usually in the form of cash. (Institutions are required by law to require “assets of equal value” in exchange for delivery.) Also called Cash on Delivery.

DERIVATIVE: contracts written between a City and a counter party such as a bank, insurance company or brokerage firms. Their value is derived from the value of some underlying assets such as Treasury Bonds or a market index such as LIBOR. Derivatives are used to create financial instruments to meet special market needs. Two contrasting reasons for the use of derivatives are: 1) to limit risk or transfer it to those willing to bear it; and, 2) to speculate about future interest rates and leverage in hope of increasing returns.

DISCOUNT: the difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after a sale also is considered to be at a discount.

CITY OF LODI

INVESTMENT POLICY
21 DIVERSIFICATION: dividing investment funds among a variety of securities offering independent returns.

DUE DILIGENCE: exercising of due professional care in the performance of duties.

FACE VALUE: the principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.

FANNIE MAE: trade name for the Federal National Mortgage Association.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): federal agency established in 1933 that guarantees (within limits) funds on deposit in member banks and performs other functions such as making loans to or buying assets from members banks to facilitate mergers or prevent failures.

FEDERAL FUNDS RATE: the rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA like GNMA was chartered under the Federal National Mortgage Association Act in 1938. 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. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

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., 12 regional banks and about 5,700 commercial banks that are members of the system.

CITY OF LODI

INVESTMENT POLICY
22 FIDUCIARY: an individual or group, such as a bank or trust company, which acts for the benefit of another party or to which certain property is given to hold in trust, according the trust agreement.

FISCAL YEAR: an accounting or tax period comprising any twelve-month period. The City’s fiscal year starts July 1.

FREDDIE MAC: trade name for the Federal Home Loan Mortgage Corporation.

FULL FAITH AND CREDIT: the unconditional guarantee of the United States government backing a debt for repayment.

GENERAL OBLIGATION BONDS (GO’s): bonds secured by the pledge of the municipal issuer’s full faith and credit, usually including unlimited taxing power.

GINNIE MAE: trade name for the Government National Mortgage Association.

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-through” is often used to describe Ginnie Maes.

HOLDER: the person or entity which is in possession of a negotiable instrument.

INDEBTEDNESS: the obligation assumed by a borrower, guarantor, endorser, etc. to repay funds which have been or will be paid out on the borrower’s behalf.

INDENTURE: a written agreement used in connection with a security issue. The document sets the maturity date, interest rate, security and other terms for both the issue holder, issuer and, when appropriate, the trustee.

INTEREST RATE: the interest payable each year on borrowed funds expressed as a percentage of the principal.

INVESTMENT: use of capital to create more money, either through income-producing vehicles or through more risk-oriented ventures designed to result in capital gains.

INVESTMENT PORTFOLIO: a collection of securities held by a bank, individual, institution, or government agency for investment purposes.

IRREVOCABLE LETTER OF CREDIT: instrument or document issued by a bank guaranteeing the payment of a customer’s drafts up to a stated amount for a specified period.

It substitutes the bank’s credit for the buyer’s and eliminates the seller’s risk. This

CITY OF LODI

INVESTMENT POLICY
23 arrangement cannot be changed or terminated by the one who created it without the agreement of the beneficiary.

ISSUE PRICE: the price at which a new issue of securities is put on the market.

ISSUER: any corporation or governmental unit, which borrows money through the sale of securities.

JOINT AND SEVERAL OBLIGATION: a guarantee to the holder in which the liability for a bond or note issue may be enforced against all parties jointly or any one of them individually so that one, several or all may be held responsible for its payment.

LAIF: trade name for California State Local Agency Investment Fund.

LEGAL INVESTMENT: a list of securities in which certain institutions and fiduciaries may invest as determined by regulatory agencies.

LEGAL OPINION: an opinion concerning the legality of a bond issue, usually written by a recognized law firm specializing in the approval of public borrowings.

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.

MARKETABILITY: the measure of ease with which a security can be sold in the secondary market.

MARKET ORDER: an order to buy or sell securities at the prevailing bid or ask price on the market.

MARKET VALUE: the price at which a security is trading and could presumably be purchased or sold.

MARKET VS. QUOTE: quote designates the current bid and ask on a security, as opposed to the price at which the last security order was sold.

MASTER REPURCHASE AGREEMENT: a written contract covering all future transactions between the parties to repurchase—reverse r epurchase agreements that establishes 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 seller-borrower.

MATURITY: the date that the principal or stated value of debt instrument becomes due and payable. It is also used as the length of time between the issue date and the due date.

CITY OF LODI

INVESTMENT POLICY
24 MONEY MARKET: the market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

MORTGAGE BOND: a bond secured by a mortgage on property. The value of the property used as collateral usually exceeds that of the mortgage bond issued against it.

NEGOTIABLE: a term used to designate a security, the title to which is transferable by delivery. Also used to refer to the ability to exchange securities for cash or near-cash instruments.

NO PAR VALUE: a security issued with no face or par value.

NON-NEGOTIABLE: a security whose title or ownership is not transferable through a simple delivery or endorsement. (See: Negotiable.)

OBLIGATION: a responsibility for paying back a debt.

OFFER: the price of a security at which a person is willing to sell.

OFFERING: placing securities for sale to buyers. The offering usually states the price and terms.

OPEN MARKET OPERATIONS: purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PAR VALUE: the stated or face value of a security expressed as a specific dollar amount marked on the face of the security; the amount of money due at maturity. Par value should not be confused with market value.

PAYING AGENT: the agency, usually a commercial bank, which dispenses the principal and interest payable on a maturing issue.

PORTFOLIO: the collection of securities held by an individual or institution.

PREMIUM: the amount by which the price paid for a security exceeds the par value. Also, the amount that must be paid over the par value to call an issue before maturity.

PRIMARY DEALER: a group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and

CITY OF LODI

INVESTMENT POLICY
25 Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRINCIPAL: the face or par value of an instrument. It does not include accrued interest.

PRUDENT INVESTOR RULE: an investment standard adopted by the State of California in 1995. It states that a trustee shall consider the entire investment portfolio when determining the prudence of an individual investment; diversification is explicitly required within a portfolio; suitability of an investment is a primary determinant; and delegation of investment management is acceptable.

PRUDENT MAN RULE: an investment standard established in 1630. It states that a trustee who is investing for another should behave in the same way as a prudent individual of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUOTATION (QUOTE): the highest bid to buy or the lowest offer to sell a security in any market at a particular time.

RATE OF RETURN: 1) the yield which attainable on a security based on its purchase price or its current market price. 2) This may be the amortized yield to maturity on a bond the current income returns.

RATING: the designation used by investors’ services to rate the quality of a security’s creditworthiness. Moody’s ratings range from the highest Aaa, down through Aa, A, Baa, Ba, B, etc., while Standard and Poor’s ratings range from the highest AAA, down through AA, A, BBB, BB, B, etc.

REFINANCING: rolling over the principal on securities that have reached maturity or replacing them with the sale of new issues. The object may be to save interest costs or to extend the maturity of the loan.

REGISTERED BOND: a bond whose principal and/or interest is payable only to that person or organization which is registered with the issuer. This form is not negotiable and it can be transferred only when endorsed by the registered owner.

REPURCHASE AGREEMENT (REPO): agreement between a seller and a buyer, usually of U.S. Government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. The attraction of repos is the flexibility of maturities that makes them an ideal place to “park” funds on a very temporary basis. Dealers also arrange reverse repurchase agreements, whereby they agree to buy the securities and the investor agrees to repurchase them at a later date.

REVENUE ANTICIPATION NOTES (RAN): short-term notes sold in anticipation of receiving future revenues. The notes are to be paid from the proceeds of those revenues.

CITY OF LODI

INVESTMENT POLICY
26 REVENUE BOND: a state or local bond secured by revenues derived from the operations of specific public enterprises, such as utilities. Such bonds are not generally backed by the taxation power of the issuer unless otherwise specified in the bond indenture.

SAFEKEEPING: a service banks offer to customers for a fee, where securities are held in the bank’s vaults for protection.

SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities.

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

SECURED DEPOSIT: bank deposits of state or local government funds which, under the laws of certain jurisdictions, must be secured by the pledge of acceptable securities.

SECURITIES: investment instruments such as bonds, stocks and other instruments of indebtedness or equity.

SECURITIES & EXCHANGE COMMISSION: agency created by Congress to protect investors in securities transactions by administering securities legislation.

SERIAL BOND: bonds of the same issue, which have different maturities, coming due over a number of years rather than all at once. This allows the issuer to retire the issue in small amounts over a long period of time.

SETTLEMENT DATE: date by which an executed order must be settled, either by buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale for them.

SINKING FUND: a reserve fund set aside over a period of time for the purpose of liquidating or retiring an obligation, such as a bond issue, at maturity.

SPECIAL ASSESSMENT BONDS: bonds that are paid back from taxes on the property that is benefiting from the improvement being financed. The issuing governmental entity agrees to make the assessments and earmark the tax proceeds to repay the debt on these bonds.

SPREAD: the difference between two figures or percentages. For example, it may be the difference between the bid and asked prices of a quote, or between the amount paid when bought and the amount received when sold.

SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development; International Finance Corporation, or Inter-American Development Bank.

CITY OF LODI

INVESTMENT POLICY
27 TAX ANTICIPATION NOTES (TAN): short-term notes issued by states or municipalities to finance current operations in anticipation of future tax collections which would be used to repay the debt.

TAX-EXEMPT BONDS: interest paid on municipal bonds issued by state and local governments or agencies is usually exempt from federal taxes, and in some cases, the state and/or local taxes. The interest rate paid on these bonds is generally lower than rates on non-exempt securities.

TERMS: the conditions of the sale or purchase of a security.

TREASURY BILL (T-BILL): a non-interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS AND NOTES: obligations of the U. S. government which bear interest.

Notes have maturities of one to seven years, while bonds have longer maturities.

TREASURY BONDS: long-term coupon bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

TRUSTEE: a bank designated as the custodian of funds and the official representative for bondholders.

UNDERWRITER: a dealer bank or other financial institution, which arranges for the sale and distribution of a large batch of securities and assumes the responsibility for paying the net purchase price.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement 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 loans 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.

YIELD: the annual rate of return on an investment, expressed as a percentage of the investment.

YIELD CURVE: graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from the shortest to the longest available.

The resulting curve shows if short-term interest rates are higher or lower than long-term

CITY OF LODI

INVESTMENT POLICY
28 rates. For the most part, the yield curve is positive (short-term rates are lower), since investors who are willing to tie up their money for a longer period of time usually are compensated for the extra risk they are taking by receiving a higher yield.

RESOLUTION NO. 2022 - ____

A RESOLUTION OF THE LODI CITY COUNCIL

ADOPTING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2022 AND ENDING JUNE 30, 2023; APPROVING THE 2022/23 APPROPRIATIONS SPENDING LIMIT;

APPROVING JOB SPECIFICATION AND SALARY RANGE FOR
ADMINISTRATIVE ANALYST (CONFIDENTIAL AND REPRESENTED); AND APPROVE THE FISCAL YEAR 2022/23 INVESTMENT POLICY

========================================================================

WHEREAS, the City Manager submitted the 2022/23 Financial Plan and Budget to the City Council on May 17, 2022; and

WHEREAS, the 2022/23 Financial Plan and Budget was prepared in accordance with the City Council’s goals, budget assumptions, and policies; and

WHEREAS, the City Council conducted public budget review meetings on May 3, 10, and 17, 2022; and

WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for 2022/23; and

WHEREAS, the Appropriations Spending Limit and the annual adjustment factors selected to calculate the Limit are part of the Financial Plan and Budget; and

WHEREAS, the City’s five-year capital improvement program is presented and included in the Fiscal Plan and Budget document; and

WHEREAS, the City of Lodi Investment Policy is adopted each year.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lodi as follows:

1. That the 202 2/23 Financial Plan and Budget, as proposed by the City Mana ger be approved as follows:

General Fund FY 2022/23 Budget
Police Department 29,997,060
Fire Department 17,730,630
Internal Services 6,546,100
Parks, Rec & Cultural Services 5,961,790
Non-Departmental 4,728,900
Public Works 3,751,040
Library 1,772,220
City Attorney 825,880
City Clerk 801,930
City Manager 791,680
Eco Devopment 500,240
Code Enforcement 484,700
Total General Fund 73,892,170

2. That the funds for the 202 2/23 Financial Plan and budget are appropriated in the document on file in the City Clerk’s Office; and

3. That the Appropriations Spending Limit be increased by $10,290,310 from the 2021/22 level of $ 124,907,868 to the 2022 /23 level of $ 135,198,178 in accordance with the calculations on Attachment A; and

4. That staffing position additions and deletions are approved as shown in the table below effective July 1, 2022; and

Other Funds FY 2022/23 Budget
Electric Utility 92,284,650
Wastewater Utility 21,953,670
Water Utility 13,394,190
Transit 12,169,430
Employee Benefits 9,635,970
Parks, Recreation & Cultural Srvs 8,186,200
Streets 6,916,570
Self Insurance 5,424,900
Capital Outlay 5,077,500
Community Development 3,696,690
Library 2,623,170
Fleet Services 2,450,190
Community Grants 1,693,920
Debt Service 1,643,120
Vehicle & Equipment Replacement 1,452,770
Special Revenue & Grants 326,890
Trust & Agency 76,000
TDA 30,000
Total Other Funds 189,035,830
Job Title Department +/-
Management Analyst Fire - Administration +0.4
Management Analyst Parks, Rec & Cultural Srvs - Administration -0.4 Administrative Analyst Parks, Rec & Cultural Srvs - Administration +1 Administrative Analyst - C Internal Services - Human Resources +1 Budget Manager (Temp) Internal Services - Budget +1
Administrative Assistant Police - Administration +1
Police Sergeant (Traffic) Police - Operations +1
Property & Evidence Tech (Temp) Police - Support Services +1 Management Analyst Public Works - Administration +1
Administrative Assistant Community Development - Administration +1 Administrative Clerk Community Development - Administration -1 CDD Program Specialist Community Development - Administration +1 Building Inspector I Community Development - Building +1 Electric Foreman Electric Utility - Construction +1
Administrative Clerk Electric Utility - Management Services +1 Electrician Public Works - Water Services +1
W/WW Maintenance Worker Public Works - Water Services +1 Total +13

5. That the City Council approves the salary range as indicated below and approves the job description as written Administrative Analyst on Attachment B; and

6. That t he City Council approves the FY 2022 /23 Investment Policy as provided in Attachment C; and

7. That the City Council approves the City’s five -year Capital Improvement Project Program as follows:

Dated: June 1, 2022
========================================================================

I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 1, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-____
Position: Step 0 Step 1 Step 2 Step 3 Step 4
Administrative Analyst - Conf. 63,241.07$ 66,403.13$ 69,723.28$ 73,209.45$ 76,869.92$ Administrative Analyst - (LCMMA) 60,229.59$ 63,241.07$ 66,403.13$ 69,723.28$ 73,209.45$ FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27
19,588,000 28,650,500 21,972,000 14,674,500 11,929,500
City of Lodi 5-Yr Capital Improvement Program
ATTACHMENT A
AMOUNT
Last Year's Limit 124,907,868
Adjustment Factors
1 Population % 1.0064
2 Inflation % 1.0755
Total Adjustment % 1.0824
Annual Adjustment 10,290,310
Adjustments None
Total Adjustment 10,290,310
2022‐23 APPROPRIATIONS SPENDING LIMIT 135,198,178
AMOUNT
Proceeds of Taxes 59,980,830
Exclusions ‐
Appropriations subject to limitations 59,980,830
Current Year Limit 135,198,178
OVER (UNDER) LIMIT (75,217,348)
2022‐23 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
2022‐23 APPROPRIATIONS SPENDING LIMIT
2022‐23
Appropriations Subject to Limitation
CITY OF LODI July 2022