CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
6/12/2023
1 SUBJECT:
Fiscal Year 2023-24 Program Options, Master Fee Schedule, and Proposed Budget.
RECOMMENDED ACTION:
Review and discuss the Fiscal Year 2023-24 Proposed General Fund and Other Funds Budget, provide additional policy direction on the desired budget options and strategies for the upcoming FY 2023-24 Budget and hold a public hearing to adopt a Resolution with an updated Master Fee Schedule.
STAFF CONTACT:
Kevin Woodhouse, City Manager
[email protected] <mailto:[email protected]> 650-738-7409
Yulia Carter, Assistant City Manager
[email protected] <mailto:[email protected]>
650-738-7301
BACKGROUND:
Each year, the City of Pacifica adopts an annual operating budget that reflects the planned activities for the next fiscal year based on the best information available at the time of adoption.
At mid-year, staff revisits the projections and reports to the Council any changes needed to reflect new information and keep the City budget on track.
The City Council adopted the current FY 2022-23 Budget on June 27, 2022. On March 27, 2023, staff presented the FY2022-23 Midyear Budget analysis, which showed the budget was on track. During the mid-year budget review, the Council authorized additional adjustments to the FY 2022-23 Budget that were incorporated in developing the new FY2023-24 proposed budget.
On April 10, 2023, in the first budget study session, staff presented the Budget planning process, methodology, timeline, and long-term financial forecast. Unlike the forecast leading into the Budget last year when the City's long-term financial forecast projected a significant ongoing structural deficit, this condition has now been mitigated by improved post-COVID revenue projections and, most importantly, by Pacifica voters passing a new Measure Y - ½ Transactions & Use Tax in November 2022. As a result, the long-term financial forecast projected a positive outlook with a structurally balanced budget for FY 2023-24 and beyond but did not leave sufficient funds for needed service enhancements, adequate staffing and employee compensation levels, and ongoing investments in capital infrastructure.
On May 8, 2023, staff presented the General Fund Base Budget, Preliminary Budget Strategies for the FY 2023-24 Budget, and the Proposed Capital Improvement Plan for FY 2023-24. The Base Budget included an approximately $1.3 million preliminarily projected surplus available to address all service needs and meet Council priorities for the upcoming Budget. Staff received City Council feedback for developing the Recommended Budget options, which is the subject of this report. Since the last meeting, staff has prepared the Proposed FY 2023-24 Budget for all city funds.
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The primary focus of today’s discussion is to provide Council with the recommended program options for the FY 2023-24 Proposed Budget and get additional policy direction for any additional inclusions in the budget prior to the adoption at the next meeting. In addition, the recommended Master Fee Schedule for FY2023-24 is presented for Council consideration and adoption.
PUBLIC
MEETING
BUDGET STEP TIME FRAME
1 FY 2022-23 Mid-Year Budget Review to Council March 27, 2023 2 Council Workshops: FY2023-24 Strategic Planning,
Goals and Priority Setting
March 4, 2023
April 11, 2023
3 Budget Session 1: Budget Methodology, Budget Calendar, Long-Term Financial Outlook
April 10, 2023
4 Budget Session 2: FY 2023-24 Strategic Plan and Priorities, FY 2023-24 Base Budget, Preliminary Budget Strategies, and Introduction of FY 2023-28 CIP Program
May 8, 2023
5 Planning Commission: Review of the Proposed FY2023-28 CIP Plan for Conformity with General Plan
June 5, 2023
7 Budget Session 3: City Council Review and Approval of Proposed FY 2023-24 Budget Recommendations, Master Fee
Schedule Public Hearing
June 12, 2023
8 City Council Budget Hearing: Formal Adoption of the FY 2023-24 Operating and Capital Budget
June 26, 2023
Adjustments to the Base Budget
Since the last budget meeting on May 8, 2023, Finance has met with each department to discuss their base budget allocations and service-level requests for the proposed budget. As a result of these meetings, staff made a few minor adjustments to the General Fund baseline budget that are summarized below:
• Cannabis Revenue ($125,000) After some slowdown last year that resulted in a reduction of this current year’s budgeted Cannabis revenues, the current year to date collections support new projections restoring these revenues back to the original level of $800,000 for FY 2023-24, which is a $125,000 increase from the original conservative estimates used for the Base Budget.
• Parks, Beaches, & Recreation - Program Revenues (net revenue increase of $114,900).
The revenues in the PB&R General Fund base budget have been increased by $205,600 primarily due to the operational programs in Childcare, Seniors in Action, and Oceana pool programs projected to fully return to the pre-COVID level. These revenues are partially offset by the increased expenditures in these recreational programs related to hiring an additional part-time staff of about $90,000, resulting in a net increase in revenues of $114,900.
• Fire Department - Adjustments. The last year’s OES reimbursable overtime expense that was carried over to the preliminary Base Budget was removed, allowing for an additional net change transfer of $149,000 to the Fire Equipment Fund and a $100,000 increase to the regular overtime budget to account for the contractual salary increases that went in effect at the beginning of the current year and to be consistent with the projected actuals for the year.
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• Community Center Roofing CIP Project ($210,000). The 2022-2027 Adopted Capital Improvement Program Budget appropriated $325,000 towards the Community Center roof project in FY 2022-23. The project will replace the Community Center roof due to age and deterioration and prepare the roof for the new solar installation that will be completed by Peninsula Clean Energy in the near future. The City recently bid on this project. Seven bidders provided bids with a project low bid of $464,196. After adding contingency and construction management cost, the total project budget will be $585,000, requiring an additional allocation of $210,000 towards this project in order to move forward into construction. The City Manager recommends funds from the Disaster Accounting Fund (Fund 38) be transferred to the Capital Project Fund (22) for this project.
• The Wastewater Operating Expenses ($93,066). The base budget for the Wastewater Operating Fund (18) was increased by $93,066 to account for the increased cost of chemical expenses, sludge removal, and higher utility charges.
City Manager’s Recommendations for the FY 2023-24 Budget The goal of any budget process is to develop the City's Budget by completing a full analysis of the City's revenue structure and current service level to identify necessary service increase and/or reduction options, which, when combined, will reach a balanced and sustainable budget.
Since the last meeting, each City Department has been given an opportunity to submit their prioritized budget requests with reference to the Council’s specific goals and strategies in the newly adopted Strategic Plan. The Recommended Budget is balanced and includes prioritized programs and services recommended for funding in the FY 2023-24.
In developing budget recommendations for service changes, the City Manager had to balance the future financial sustainability with the Council’s strategic vision, staffing, organizational capacity, and impacts on the City operations and services provided to the community. The budget recommendations also fulfill the six budget strategies recommended by the City Manager and supported by the City Council from the May 8, 2023, budget session. The goal of this budget process was to identify necessary and required service change options, which in combination, maintain a balanced and sustainable budget.
To this end, the City Manager reviewed department requests and is making the following budget recommendations for the Council’s consideration, as presented below and in Attachments 5-6.
In the attachment, each budget option form shows how the recommendation ties to the Strategic Plan. Out of 16 Budget options recommended for FY 2023-24, 11 of them directly impact the General Fund at a total cost of $606,800, including seven programmatic changes that will result in an additional ongoing costs of $259,800 and four one-time budget recommendations (including multi-year limited-term or pilot programs) budgeted at $347,000. Other funds include four one-time expense amendment recommendations at an additional cost of $1,166,378, and one ongoing revenue adjustment budget option for $1.6 million.
The complete list of Recommended Budget Options across all funds is presented below. While all of these are important, they are listed in order of the City Manager’s priority should the Council wish to consider reducing the list:
1. Two-year pilot program for the Community Wellness and Crisis Response Team that includes funding for the Mental Health Clinician - General Fund $140,000 (One-time).
2. Replacing an expiring contract for body-worn cameras with the updated body-worn and in-car camera and tasers system provided by Axon. - General Fund $100,000 (Ongoing).
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3. Appropriation of $399,378 from the available balance of the Fire Equipment Fund (Fund 74) towards purchasing protective gear and radio equipment. - Fire Equipment Fund $399,378 (One-time).
4. Additional Funding of a 3-year Limited-Term Maintenance Worker I in Public Works Department - General Fund $122,000 (One-time).
5. Addition of the full-time Project Manager position to be funded in General Capital Fund 22 ($197,008). The Project Manager's time will be charged to already funded capital projects and will not have an additional direct General Fund impact unless the project is funded by the General Fund. - General Capital Fund 22 $197,008 (Ongoing).
6. Allocation of approximately half of the $3.4 million of Excess Educational Revenue Augmentation Funding (ERAF) revenues projected to collect in FY2023-24 in the Housing in Lieu Fund ($1.67 million) to start accumulating fund balance in this fund to be used for developing affordable housing in the future. - Housing in Lieu Fund $1,673,750 (Ongoing).
7. Additional allocation of $500,000 in Vehicle Replacement Fund 72 towards the purchase of new vehicles citywide in accordance with the City’s vehicle replacement schedule. - Vehicle Replacement Fund 72 (One-time).
8. Short Term Rental (STR) Compliance Enhancement Program to include funding for STR Ordinance revision, additional Sr. Code Enforcement Officer and legal cost to streamline the City’s STR regulations and provide adequate enforcement to the program. The overall cost of the program ($285,300) will be partially offset by the increased STR Permit Fees as presented in the updated Master Fee Schedule, that are project to generate $243,300 per year (150 STR cap) to the net cost of $42,000 in General Fund (Ongoing)
9. Additional allocation of $70,000 from the available Vehicle Replacement Fund balance (Fund 72) to fund the initial deposit (if required, subject to lease purchase agreement terms) for the lease purchase of a new Fire apparatus as further described in the attached budget form. Approval of this budget option also includes the ongoing future commitment of about $125K of annual lease payments for the next ten years, starting in FY 2025-26. Vehicle Replacement Fund (One-time) .
10. Allocation of $60,000 for the Implementation of the Economic Opportunities Study to include preparation of the RFP for the Beach Blvd. site as appropriate subject to Surplus Land Act (SLA) process, obtaining an official appraisal (MAI or Value Statement) of the Beach Blvd site, and conducting a feasibility assessment and developing an implementation plan for establishing a special / tax increment financing district such as CRD or EIFD for the Sharp Park and/or Rockaway districts. - General Fund, $60,000 (One-time).
11. Providing an additional six-month budget for marketing Pacifica as a destination and ShopPacifica / Workation Promotional Budget. The current year’s allocation includes a $50,000 allocation of ARPA funds for this purpose. The FY2023-24 Recommended allocation reduces this budget to $25,000 in General Fund (One-time).
12. Provide Annual funding for Citywide summer internship program as an effective way to augment staff’s work and create a path forward for potentially recruiting new employees in the future. - General Fund, $35,000 (Ongoing).
13. Adjustment to salary range for the vacant Recreation Manager position to set the salary closer to the market to enable a near future successful recruitment. - General Fund, $25,300 (Ongoing).
14. Increase in citywide special event budget of $30,000 to enhance the post-pandemic activities and attractions to ensure a positive community experience. Once developed, the program is expected to generate additional revenues that may increase the General Fund budget in future years. - General Fund, $30,000 (Ongoing).
15. Adding a Teen Program at the Community Center starting January 2024 will result in an increase in revenue of $3,400 and additional expenses of $8,000 to the net program cost of $4,600 in General Fund (Ongoing).
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16. Increase City Council’s conference, training budget and travel budget allocation by $22,900 to $38,000 to be transparent to the public and equitable amongst Councilmembers about funding for professional development activities. - General Fund $22,900 (Ongoing).
Additional information about these budget options can be found in Attachments 5-6 to this report.
Projected Fund Balance Structure and Budgetary Reserves The Proposed FY 2023-24 Operating Budget is being presented as a balanced budget, meaning that the City’s operating expenditures do not exceed general revenues.
If all program options identified in this report are approved by City Council, the General Fund will project an ending surplus of about $333,844 and maintain all previously approved reserves necessary for long-term fiscal and operational sustainability.
After factoring in the above-mentioned budget options, the General Fund Base Budget revenues and transfers are projected at $47.6 million. The total General expenditures and transfers out are also budgeted at $48.6, which includes a one-time contribution of the projected FY2022-23 Measure Y revenues of $650,000 towards the FY 2023-24 CIP Budget for additional street resurfacing.
The table below demonstrates the Net change to the General Fund Balance.
FY 2023-24 Adj
Base Budget
6/12/23
Proposed
Budget FY
2023-24 Change
Revenues:
Operating Revenues $ 47,385,500 $ 47,632,200 $ 246,700
Operating Transfers In 1,291,900 1,291,900 -
Total Revenues 48,677,400 48,924,100 246,700
Expenditures and Transfers :
Operating Expenditures 43,715,226 44,564,056 848,830
Operating Transfers Out 3,376,200 3,376,200 -
Capital Transfers Out 650,000 650,000 -
Total Expenditures and Transfers 47,741,426 48,590,256 848,830 Surplus (Deficit) $ 935,974 $ 333,844 $ (602,130)
FY 2023-24 RECOMMENDED BUDGET
NET GENERAL FUND SURPLUS (DEFICIT)
After applying all changes described above, the Proposed General Fund Budget will have a $333,844 surplus, leaving a little short of $8.5 million in the Unassigned General Fund Balance, which is about 18% of the City’s Operating expenditures in addition to 10% or $4.8 million minimum policy reserve.
The City’s Fund Balance Policy identifies fund balances (or reserves) that fall into the following categories: non-spendable items or portions of fund balance that cannot be liquidated, restricted amounts for use by outside agencies, committed amounts by Council action such as emergency /contingency reserves and assigned balances to pay off unfunded liabilities and to fund infrastructure improvements.
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In accordance with GASB Statement No. 54 requirements and the City policy, the Council established the following designations or contingencies of the General Fund Committed Balance.
➢ Budget Shortfall Policy Reserve of 10% of Expenditures ($4.8 million) ➢ Facilities Maintenance & Replacement (restored back to $0.2 million) ➢ Compensated Absences Reserve ($0.2 million)
➢ Child Care Reserve ($0.5 million)
➢ Legal Reserves ($0.1 million)
The General Fund balances for the FY 2023-24 Recommended Budget are detailed in the table below. If all options presented in this report are approved by the Council, the City will have a balanced FY 2023-24 Budget with an undesignated General Fund Balance of approximately $8.5 million.
Designations Actual
FY 2021-22
Revised
2022-23
FY 2023-24 Adj
Base Budget
6/12/23
FY 2023-24
Proposed
Beginning Fund Balance $ 15,846,029 $ 16,292,224 $ 18,538,367 $ 18,538,367 Total Revenue 43,652,465 50,677,370 48,677,400 48,924,100 Total Operating Expenditures 40,206,270 47,776,227 47,091,426 47,940,256 Total Capital Project Expenditures 3,000,000 655,000 650,000 650,000 Ending Fund Balance 16,292,224 18,538,367 19,474,341 18,872,211 Non-Spendable 4,111,067 4,885,091 4,600,000 4,600,000
Assigned Reserves
Policy Level of 10% of Expenditures 3,810,040 4,777,623 4,709,143 4,794,026 Facility Maintenance & Replacement 205,000 55,000 205,000 205,000 Compensated Absences 200,000 200,000 200,000 200,000
Child Care Reserve 488,591 488,591 488,591 488,591
Legal Reserves 100,000 100,000 100,000 100,000
Assigned Reserves 4,803,631 5,621,214 5,702,734 5,787,617 Total Designations 8,914,698 10,506,304 10,302,734 10,387,617 Unassigned Fund Balance 7,377,526 8,032,063 9,171,607 8,484,594 Operating Expenses 40,206,270 47,776,227 47,091,426 47,940,256 Unassigned Fund Balance as % of Op. Expenses 18% 16.8% 19% 18% FY2023-24 RECOMMENDED BUDGET
GENERAL FUND (ASSIGNED & UNASSIGNED BALANCES)
Maintaining a sufficient level of the projected ending fund balance is necessary for fiscal and operational sustainability. After factoring in the restricted reserves and operating contingency, the ending undesignated General Fund balance is projected close to $8.5 million or 18% of the General Fund operating expenditures (excluding one-time capital transfers), which is slightly above the Government Finance Officers Association of the US and Canada (GFOA) recommendation for government entities of no less than two months of regular general fund operating expenditures, which is approximately $7.9 million for the City of Pacifica in FY2023-
24. Other Funds
Staff used the same basic assumptions for all other funds to factor in a 2% cost of living Pacifica City Council 7
June 12, 2023
increase for most contract and professional services categories and 1% for materials and supply categories. The summary of Revenues, Expenditures, and Fund Balances for all of the City’s fund categories is shown in the table below and further described in Attachment 7. Revenues under expenditures for Enterprise Fund and Internal Service Fund reflect the uses of the available fund balance for one-time needs (e.g. capital investments in Wastewater insfrastructure or vehicle replacement purchases in Motor Pool Fund).
Fund Name
Projected Fund
Balance
6/30/2023
Revenues &
Transfers In
Proposed Budget
Expenditures &
Transfers Out
Proposed Budget
Revenue
Over (Under)
Expenditures
Projected Fund
Balance
6/30/2024
GENERAL FUND $ 18,538,367 $ 48,924,100 $ 48,590,256 $ 333,844 $ 18,872,211 ENTERPRISE FUNDS 21,619,153 19,739,000 28,066,231 (8,327,231) 13,291,922 SPECIAL REVENUE FUNDS 21,372,802 17,596,900 16,852,479 744,421 22,117,223 INTERNAL SERVICE FUNDS 2,667,158 4,986,100 5,821,490 (835,390) 1,831,768 DEBT SERVICE FUNDS 5,317,384 2,499,800 2,499,800 0 5,317,384 Total Other Funds $ 50,976,497 $ 44,821,800 $ 53,240,001 $ (8,418,201) $ 42,558,296 Total All Funds $ 69,514,864 $ 93,745,900 $ 101,830,257 $ (8,084,357) $ 61,430,507 Enterprise Funds consist of Wastewater Operating and Capital and Beach Parking Funds.
Enterprise funds are used for services that are financed and operated in a manner similar to a private business enterprise. The FY 2023-24 total enterprise funds budget is $28.1 million,
27.8% of the City’s overall budget. Sewer funds are used to account for sewage collection, treatment, major replacements, and maintenance and protection improvements to the sewer system. Sewer charges of $19.0 million are based on a 3.5% rate increase in FY 2023-24. The sewer operating expenditures include the same inflationary base budget assumptions. The Salaries and Benefit costs of approximately $5.5 million are based on 28 FTE allocated to the Sewer Fund and include all current MOU provisions.
The Beach Parking Fund is used to account for parking services to residents and visitors. The revenues are projected at $0.7 million, which aligns with the FY 2022-23 Revised Budget.
Special Revenue and Capital Funds are used to account for specific revenue sources or financial resources for which expenditures are restricted by law or administrative action to specific purposes. This Category includes Gas Tax and Streets Funds, General Capital, Drainage, Housing in-lieu, Parking in-Lieu, Park in-Lieu, PB&R Special Revenue and Roy Davies Trust, Disaster Accounting, and other funds.
The FY 2023-24 revenues for this category are $17.6 million. The FY 2023-24 expenditures of $21.6 million for this Category represents around 17% of the City's total budget and include the recommended FY 2023-24 CIP Budget allocation and the following recommended budget option as already mentioned above:
• Addition of the full-time Project Manager position to be funded in General Capital Fund 22 ($197,008). The Project Manager's time would be charged to already funded capital projects and will not have an additional direct impact on General Fund unless the project is funded by the General Fund.
Internal Service Funds serve the needs of the City and are used to account for Citywide services on a cost-reimbursement basis. These funds accommodate the vehicle, employee benefits, and risk management needs of the City and are supported by the funds that receive the benefit. The FY 2023-24 budget for this category is $6.1 million, which is 6% of the City’s budget. The Motor Pool Replacement and Fire Equipment Funds are funding the following City Manager’s budget recommendations in the FY 2023-24 as already mentioned above:
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• Additional allocation of $500,000 in Vehicle Replacement Fund 72 towards the purchase of new vehicles citywide in accordance with the City’s vehicle replacement schedule. • Additional allocation of $70,000 from the available Vehicle Replacement Fund balance (Fund 72) towards the initial deposit for the lease purchase of a new Fire apparatus as further described in the attached budget form.
• Appropriation of $399,378 from the available balance of the Fire Equipment Fund (Fund 74) towards the purchase of protective gear and radio equipment Both the Motor Pool Replacement Fund and the Fire Equipment Fund have sufficient resources to fund the FY 2023-24 requests that are further detailed in Attachment 6.
The Debt Service Fund is used to account for all ongoing debt payment obligations. The FY 2023-24 Budget of $2.5 million factors-in all debt service payment obligations according to the current debt service schedules and includes the payment on the Pension Obligation Refunding Bonds and the Civic Center improvement project financing. The Debt Service Fund represents around 2% of the City’s total budget.
Additional details on any individual funds and their projected fund balances can be found in Attachment 7.
Master Fee Schedule & Charges
The Master Fee Schedule, which includes all City user fees, charges for services, and business license tax rates, is revised annually, as required by Pacifica Administrative Policy No.2. The proposed Master Fee Schedule for FY 2023-24 is provided as Attachment 1 to this report. Some fees charged for City services are set at a flat dollar amount meeting the consistency benchmark with the neighboring agencies and the needs of the community (i.e., recreation class fees). At the same time, others may result from a comprehensive study and also depend on the amount of time spent on services (i.e., development review). In this latter case, the City uses an hourly rate that reflects the staff costs to provide the service. The Cost Allocation Plan and Fee Study, last developed in 2013, helped determine the cost of providing the service and have been used as a budget baseline since that time, adjusted annually by CPI. Fee Increases must be revisited and analyzed annually to be consistent with legal restrictions and regulatory guidelines.
The City’s methodology used to formulate the proposed changes has been derived from the December 2022 Consumer Price Index from the U.S Bureau of Statistics for Western Metropolitan Area (San Francisco-Oakland-Hayward).
The FY2023-24 proposed fee changes reflect an approximate increase by the change in the Consumer Price Index (CPI) of 4.9% if deemed appropriate by the department administering the fees or specified in the Municipal Code for most fees, excluding fees governed by regulatory or other restrictions or allowable cost recovery recommendations. Any proposed new fees are highlighted in orange in the Master Fee Schedule attachment.
Staff recommendations for new fees and fees that are subject to a substantial increase above the CPI price index are based on the internal analysis of staff’s time and related 3rd-party costs associated with these services. The analysis was done to make sure the City accurately accounts for the true cost of providing these programs and services, and ensure adequate recovery of such cost, especially for services that provide private benefit (e.g. majority of building and planning services), while some public safety services or children & senior activities may be subsidized as they provide public benefit, in which case the fees may have stayed unchanged or received an small increase below the CPI.
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The significant amendments other than routine annual CPI adjustments are summarized below:
There are eight categories of fees that correspond to the department administering the fees.
Below are the highlights of the changes for each department.
Finance:
o The Short-Term Rental application permit fee is recommended to increase from $158 in FY23 to $1,622. This increase will help fund the STR compliance program included in the FY 2023-24 work plan (Attachment 5). o Credit/Debit Card Service Fee: Effective July 1, 2023, it is recommended all credit or debit card payments will be subject to a service fee of 2.9% to help offset the credit card processing companies’ billing of the City. Customers can avoid these fees by paying with cash or checks.
Parks, Beaches, and Recreation (PB&R):
o Community Picnic Areas: An Inflatable Bounce House fee of $30 is added.
This is a new pilot program driven by community support. This fee is in line with surrounding city’s fees for this type of permit.
o Oceana Pool Rental and Pool Party Program: The fee was increased by $5, which is less than the 4.9% COLA. This increase was needed to assist in supporting the rising cost of pool chemicals and staffing. The $5 increase is in line with market rates.
o Recreation Swim, Water Aerobics, Lap Swim: The All-Access Pass for Adults was increased by $3, which is less than the 4.9% COLA. This increase was needed to assist in supporting the rising cost of pool chemicals and staffing. The $5 increase is in line with market rates.
o Senior Programs: a replacement of Membership card is added for $5. o Child Care Registration Fees: The One-time Non-Refundable Fee per child at the time of entry into the full-cost program (pre-school and school-age) was increased by $5, which is slightly above the 4.9% COLA. This fee is justified by the rising cost of staffing, materials, and supplies and is still below the market rate.
The Annual registration per child for the summer program slot and Annual registration non-refundable fee per child at the time of entry into the program (state pre-school) has been deleted as they were redundant and captured in other fees.
o Kindergarten/School-age School Year (Sept-June) Monthly Rates per Child:
The Annex Programs “Before School, Before and After School, and State Sponsored Child-Care Before and After and Breaks have all had a fee increase of $10, which is below the 4.9% COLA. This increase is needed to assist in supporting the rising cost of staffing, materials, and supplies, rent, etc. o Surf Camps: A new fee of $200 is added for non-profit surf camps/schools permitted to run camps at Pacifica State Beach. This nominal fee will cover the departmental administrative costs of the program.
o Film Photo Shoots: Major commercial filming for $1,200 per day (Additional fees may be determined based on vehicles/additional staff/time/impact on area) is raised above the 4.9% COLA. This aligns with the market rate for major film shoots that would potentially be more disruptive than smaller shoots.
Planning:
o General Planning Fees: Heritage Tree Permits and Heritage Tree Permit Appeal Fee is removed from PW- Engineering to Planning. A tree Permit Appeal Pacifica City Council 10 June 12, 2023
of $577 (raised from $426) is adjusted to align with the other City appeals fees. o Building Permit Fees: Building permit fees are calculated based on the progressive rate structure, which might be lower than prior years' amounts to correct prior year mistakes.
o Plan check and Other Building Permit and Inspection Fees: Staff has adjusted the General Plan Maintenance Fee to 0.252% of construction value (0.05%) to reflect the consultant, staff, and city attorney costs associated with the next comprehensive General Plan update and two Housing Element updates that will occur in the next 20-year planning period. These estimates are based on actual costs incurred for the 2040 General Plan update process and costs to-date for the 2023-2031 Housing Element Update. Revenue from this fee over the next 20 years is estimated to be approximately $1.9 million. o Solar Photovoltaic System: The fee is capped by Government Code section 66015, which allows up to $440 + additional fees based on system size for residential systems and $1000 + additional fees based on commercial systems.
We’ve previously estimated one hour total of the reviewer and permit tech time for residential permits and 1.5 hours of reviewer time and permit tech time for commercial permits.
o In Solar Thermal Systems: Solar thermal systems needs to be broken out as their own fee, as required by law.
ALTERNATIVE ACTION:
The City Council is asked to provide input and direction on the FY2023-24 Proposed Budget. No alternative action is identified.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
A balanced and structurally sustainable budget is consistent with all City Council strategic goals.
Maintaining the Master Fee Schedule is consistent with the City’s goal to achieve long-term financial sustainability by allowing the City to ensure that City-wide revenue meets the cost of providing City-wide services.
FISCAL IMPACT:
Because the recommendation is to review and discuss budget options, no direct fiscal impact is associated with this item. City Council direction on the proposed budget options will be factored in the FY 2023-24 Budget document that will be brought forward for adoption on June 26, 2023.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1- Master Fee Schedule FY23-24 Final (PDF)
Attachment 2 - Summary of FY2023-24 Recommended Budget Program Options (PDF) Attachment 3 - FY2023-24 Recommended Budget General Fund Revenues (PDF) Attachment 4 - FY2023-24 Recommended Budget General Fund Expenditures (PDF) Attachment 5 - FY2023-24 General Fund Budget Options - Budget Forms (PDF) Pacifica City Council 11 June 12, 2023
Attachment 6 - FY2023-24 Other Funds Budget Options - Budget Forms (PDF) Attachment 7 - FY2023-24 Revenue Amendment Options - Budget Forms (PDF) Attachment 8 - FY2023-24 Projected Fund Balance (PDF)
Pacifica City Council 12 June 12, 2023
RESOLUTION NO. ________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA TO APPROVE AND
INCREASE CERTAIN USER FEES AND CHARGES AS DESCRIBED IN ADMINISTRATIVE POLICY NO. 2
WHEREAS, Administrative Policy 2 sets forth procedures for the review and approval of City fees and charges; and
WHEREAS, it is City policy to establish fees and charges for City services which fully reimburse the City or maximize the City cost recovery for the associated services; and WHEREAS, all fees and charges shall be reviewed and updated annually in conjunction with the review of the City’s budget to insure that they are adequate and to relate them to their associated program cost;
WHEREAS, the Assistant City Manager has requested City departments to review their fees and charges to utilize the previously performed fee study to ensure compliance with the City policy for full recovery of City costs; and
WHEREAS, regular review and modifications to fees and charges are necessary to insure that they are adequate; and
WHEREAS, the City of Pacifica uses the San Francisco – Oakland – Hayward (Bay Area) Price Index for All Urban Consumers (CPI-U) in December of each year as a guideline for future annual increases, which was 4.9% in December 2022; and WHEREAS, staff has modified fees and charges as is described in the Administrative Policy 2 attached hereto as Attachment 1; and
NOW THEREFORE THE PACIFICA CITY COUNCIL RESOLVES AS FOLLOWS:
BE IT RESOLVED that based on evidence in the record, the amounts recommended for fees and charges, including increases, do not exceed the reasonable cost of providing the services.
BE IT FURTHER RESOLVED THAT:
1. The modifications to fees and charges set forth as subject to regular CPI increase (or below CPI), and marked as such in Attachment 1 are hereby approved and become effective on August 13, 2023 or 60 days following the public hearing on June 12, 2023
2. The modifications to fees and charges set forth as new fees and/or fees that are proposed to increase above the CPI price index, marked as such in Attachment 1 are hereby approved and become effective on August 13, 2023 or 60 days following the public hearing on June 12, 2023
3. All fees and charges listed in the Attachment 1 - City of Pacifica Fees & Charges Master Fee Schedule will become part of Administrative Policy 2. Any fees and charges that have been previously adopted by resolution and are not being modified in Attachment 1 are incorporated for ease of reference only and without modifying or amending such fees or the underlying approvals in any manner.
Pacifica City Council 13 June 12, 2023
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 12th day of June 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 14 June 12, 2023
ATTACHMENT 1