SAN JOAQUIN COUNCIL OF GOVERNMENTS
555 E. Weber Avenue x Stockton, California 95202 x P 209.235.0600 x F 209.235.0438 x www.sjcog.org Robert Rickman
CHAIR
David Bellinger
VICE CHAIR
Diane Nguyen
EXECUTIVE DIRECTOR
Member Agencies
CITIES OF
ESCALON,
LATHROP,
LODI,
MANTECA,
RIPON,
STOCKTON,
TRACY,
AND
THE COUNTY OF SAN
JOAQUIN
March 27, 2023
Toni Lundgren
City of Manteca
1001 W. Center Street
Manteca, CA 95337
Dear Ms. Lundgren:
On March 23, 2023 the SJCOG Board adopted the Annual Financial Plan for FY 2023-24.
Attached is the board staff report 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 2023/24 on a forthcoming agenda prior to June 30, 2023, for ratification.
The Annual Financial Plan implements the FY 2023/24 Overall Work Program (OWP) that was also adopted by the SJCOG Board on March 23, 2023.
The attached Annual Financial Plan (AFP) provides detail of revenues and expenditures by cost category and line item comparing the proposed FY 2023-2024 budgets with the current year (FY 2022-2023) adopted budget, as most recently amended, along with FY 2021-2022 actual expenditures. The total revenues and expenditures total $41,687,240.00. 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.
Readers should note several differences between SJCOG and its member agencies’ budgets:
x SJCOG revenue sources are quite different from our member agencies. x SJCOG employs staff on an at-will basis, vis-à-vis civil service and has its own employee handbook and policies.
x SJCOG has its own Financial and Accounting Policy guiding our financial matters including procurement procedures.
x SJCOG employees are exempted from Social Security except for Medicare. x 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.
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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 5.02% 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.
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, 2023. 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 (209) 235-0584.
Thank you for your assistance.
Sincerely,
STEVE DIAL
Deputy Executive Director/Chief Financial Officer
Attachments:
R-23-104
FY 2023-24 Annual Financial Plan Staff Report
FY 2023-24 Annual Financial Plan Board Summary
ATTACHMENT 4
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