SAN JOAQUIN COUNCIL OF GOVERNMENTS
555 E. Weber Avenue Stockton, California 95202 P 209.235.0600 F 209.235.0438 www.sjcog.org Leo Zuber
CHAIR
Robert Rickman
VICE CHAIR
Diane Nguyen
EXECUTIVE DIRECTOR
Member Agencies
CITIES OF
ESCALON,
LATHROP,
LODI,
MANTECA,
RIPON,
STOCKTON,
TRACY,
AND
THE COUNTY OF SAN
JOAQUIN
April 4, 2022
Dear M . :
Enclosed is a summary of the San Joaquin Council of Governments' Annual Financial Plan (AFP) for Fiscal Year 2022/23.
The SJCOG Board staff report is included in this letter as well as a copy of the adopting resolution. Pursuant to SJCOG's Joint Powers Agreement, following adoption of the budget by the SJCOG Board, it is to be delivered to member agencies for ratification by each governing body. Approval by a majority of the governing bodies representing 55% or more of the county's population is considered ratification.
Therefore, SJCOG requests you place SJCOG's Annual Financial Plan for Fiscal Year 2022/23 on a forthcoming agenda prior to June 30, 2022, for approval.
The Annual Financial Plan implements the FY 2022/23 Overall Work Program (OWP) that was also adopted by the SJCOG Board on March 24, 2022.
The attached proposed Annual Financial Plan (AFP) provides detail of revenues and expenditures by cost category and line item comparing the proposed FY 2022-2023 budgets with the current year (FY 2021-2022) adopted budget, as most recently amended, along with FY 2020-2021 actual expenditures. The total revenues and expenditures total $23,995,953.00. The proposed AFP represents the general fund budget for SJCOG. The revenues and expenditures in the AFP are the same as the Overall Work Program (OWP), however, presented in a traditional line-item format compared to the work element format of the OWP.
The attached includes a summary of revenues and expenditures in the AFP and schedules detailing each of those categories (Revenues, Service and Supplies, Transportation, Training and Travel, Professional Services and Fixed/Capital Assets).
The attached includes a summary of revenues and expenditures in the AFP and detail for each of those categories.
Readers should note several differences between SJCOG and its member agencies budgets:
SJCOG revenue sources are quite different from our member agencies.
SJCOG employs staff on an at-will basis, vis-à-vis civil service and has its own employee handbook and policies.
SJCOG has its own Financial and Accounting Policy guiding our financial matters including procurement procedures.
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SJCOG employees are exempted from Social Security except for Medicare.
As noted below, SJCOG offers a defined contribution retirement plan to its employees.
SJCOG has no CalPERS or post employments benefit obligations except limited sick leave conversion as noted.
The following assumptions are incorporated in the budget:
1. Work will not begin, and expenses will not be incurred unless anticipated revenue sources are secured.
2. The AFP anticipates SJCOG to be fully staffed. The budget includes a 5.94% pool that can be drawn upon for merit-based increases and potential promotions. The full impact of that pool is incorporated into the salary-driven benefits (retirement, Medicare, disability).
3. SJCOG has no significant liability exposure for post-employment benefits. a. The employee retirement program is a defined contribution program managed by the International City Managers Association Retirement Program (Mission Square Retirement).
b. SJCOG employee vacation accruals are capped at two times the individual’s annual leave.
c. Upon separation with 50 years of age or 20 years of SJCOG employment, an employee can convert accrued sick leave hours to be deposited into a Retirement Health Savings Account to pay for health-related expenses. The conversion is based upon the employee’s salary at retirement.
REVENUES
Compared to the current year amended AFP, SJCOG general fund operating revenues are proposed to decrease from $26,704,682.85 to $23,995,953.00, a decrease of $2,708,729.85.
Overall, federal funding for
general fund activities is
$619,632.58 or 8.54%
lower than FY 2021-22 due
primarily to consumption of
one year of Congestion
Mitigation/Air Quality
funds (CMAQ) for dibs,
SJCOG’s Transportation
Demand Management
program.
State funding sources are
lower $3,054,062.27 or 22.05% due to:
$1,154,000 drawdown on prior year’s Freeway Service Patrol funding. $1,900,000 is available for FY 22-23 future years of Freeway Service Patrol funding. $472,543 drawdown has occurred on four years of Senate Bill 1 (SB1) Sustainable Transportation Planning Grants offset by a FY 22-23 allocation of $341,671.
There is $250,000 from the State Transportation Improvement Program (STIP) for planning.
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Expenditure of $2,211,597.07 from the state grant for Sustainable Transportation Equity Project (STEP).
$31,777 is carried over from the prior year’s Affordable Housing & Sustainable Community grant.
Local revenues are higher by $955,965.00 or17.31% due to increased sales tax receipts bolstering the Local Transportation Fund by $512,165 and Measure K by $443,800.
EXPENDITURES
Salaries and Benefits are
proposed to decrease by
$4,886 or .9% from
$5,153,228.26 to
$5,148,342.22 compared
to the FY 21-22 amended
budget. The budget
includes a $200,000 or
5.68% of total salaries
pool for merit-based
raises. The salary-driven
benefits adjust
accordingly.
Services and Supplies are proposed to increase slightly by $42,500. Computer software and licensing has increased by $40,000 to support both a return to the office, working remotely and heightened cybersecurity. Non-capital equipment and furniture is increasing $15,000. Rents and leases-equipment is increased slightly by $6,000. General office supplies, postage and subscriptions are reduced a combined $18,500.
Transportation, Travel, and Training
Assuming work conditions are returning to normal, there will be more travel. In addition, with several new employees, more training expenses are expected. This budget is increased $34,000 up to $100,000. This will help to support such activities as the annual One Voice® trip.
Professional Services – Decreases $2,780,343.81 from FY 21-22 from $20,234,654.59 to 17,454,310.78
There is consumption of various grants and funding sources. For example, the SB-1 Sustainable Communities Grants consumed $560,000. The Regional Transportation Plan update is nearing the end of the cycle. This work consumed $322,000 in funding. The Sustainable Transportation Equity Project (STEP) has consumed $1,800,000.
Fixed Assets/capital remains the same as the previous year at $195,000.
Position Classification and Salary Schedule
Per board policy, the salary ranges at both the minimum and maximum levels are adjusted by the CPI change. The past year saw a 6.52% increase in CPI. This is not a 6.52% raise for all ATTACHMENT 4
employees, only and adjustment to the salary ranges to keep them competitive in the marketplace.
SJCOG staff would be pleased to appear before your policymakers to answer any questions they might have regarding this matter. We request ratification prior to June 30, 2022. Please let me know when this will be on your agenda. If you have any questions regarding this matter, don't hesitate to contact me at 235-0600.
Thank you for your assistance.
Sincerely,
STEVE DIAL
Deputy Executive Director/Chief Financial Officer
Attachments:
R-22-68
FY 2022-23 Annual Financial Plan Staff Report
FY 2022-23 Annual Financial Plan Board Summary
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Prepared by: Steve Dial, Deputy Executive Director/CFO, and Grace Orosco, Manager of Finance ATTACHMENT 4