Public Hearing on Proposed Budget for 2024-25, Proposed Levy of the Municipal Services Special Tax, and Proposed Levy of the Special Municipal Sewer Tax and Consideration of the Proposed Operating and Other Funds Budgets, Schedule of Fees and Charges

City of Piedmont

COUNCIL AGENDA REPORT
DATE: June 17, 2024
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Public Hearing on Proposed Budget for 2024-25, Proposed Levy of the Municipal Services Special Tax, and Proposed Levy of the Special Municipal Sewer Tax and Consideration of the Proposed Operating and Other Funds Budgets, Schedule of Fees and Charges, and Appropriations (Gann) Limit

RECOMMENDATION
Take the following actions with regard to the proposed Fiscal Year 2024-25 budget with a separate motion for each of the items:
a. Adopt the following resolution which approves the 2024-25 Operating Budget and sets total appropriations at $40,837,416 (Table 1).

Resolved, that the City Council adopts the Proposed 2024-25 Operating Budget in the amount of $40,837,416.
b. Adopt the following resolution which approves the 2024-25 Other Funds Budget and sets total appropriations at $30,599,089 (Table 1, bottom).

Resolved, that the City Council adopts the Proposed 2024-25 Other Funds Budget in the amount of $30,599,089.
c. Adopt the following resolution which approves updates to the City’s adopted Schedule of Fees and Charges as reflected in Attachment A.

Resolved, that the City Council approves the updated fees and charges as set forth in the Schedule of Fees and Charges in Attachment A .
d. Approve the following resolutions necessary to establish the annual appropriations limit for 2024-25 as presented in Attachment B.

Resolved, that the population percentage increase for the County of Alameda be used for computing the 2024-25 appropriation limit for the City of Piedmont.

Be It Further Resolved, that the use of growth in the California Per Capita Personal Income be used for computing the appropriation limit for the City of Piedmont for 2024-25.

Be It Further Resolved, that following public notice of the availability of the documentation used in the determination of the appropriation limit pursuant to Section 7910 of the Government Code and Article X111(B) of the California Constitution, as amended by Proposition 111 and SB 88, the City Council does hereby establish the appropriation limit for 2024-25 of $32,425,416. e. Adopt the following resolution necessary to levy the Fiscal Year 2024-25 Municipal Services Special Tax.

WHEREAS, the City Council, in accordance with the provisions of Chapter 20B of the City Code, has held a public hearing relating to the need to assess the Municipal Services Special Tax for the 2024-25 tax year commencing July 1, 2024; and WHEREAS, the City Council, after fully considering all of the information and materials before it, determines in accordance with Section 20B.2 of the City Code that the cost of providing the general municipal services for the 2024-25 tax year exceeds the amount of funds generated through other revenue and income for such services; and WHEREAS, the City Council further determines that a general Municipal Services Special Tax must be levied for the 2024-25 tax year in order to provide the municipal services required by the residents of the City; and
WHEREAS, after reviewing the financial and tax data available, the City Council determines that the amount to be raised by the Municipal Services Special Tax is estimated at $2,623,000 and that the tax should be set at the rates set forth hereafter.

NOW, THEREFORE, BE IT RESOLVED, that based upon the foregoing findings and determinations the City Council does hereby levy a general Municipal Services Special Tax in the estimated amount of $2,690,000 for the 2024-25 tax year pursuant to Chapter 20B of the City Code at the rates set forth hereafter:

Single Family Residence
0 to 4,999 sq. ft. $ 610
5,000 to 9,999 sq. ft. $ 686
10,000 to 14,999 sq. ft. $ 792
15,000 to 20,000 sq. ft. $ 904
Over 20,000 sq. ft. $ 1,031
Commercial Properties
0 to 10,000 sq. ft. $ 1,031
Over 10,000 sq. ft. $ 1,547
Multi-Family Residence per unit $ 423
Parcels Divided by Tax Code Area Line $ 625
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f. Adopt the following resolution necessary to levy the Fiscal Year 2024-25 Special Municipal Sewer Tax.

WHEREAS, the City Council, in accordance with the provisions of Chapter 20E.4 of the Piedmont Municipal Code, has held a public hearing relating to the need to assess the Special Municipal Sewer Tax for the 2024-25 tax year commencing July 1, 2024; and WHEREAS, the City Council, after fully considering all of the information and materials before it, determines in accordance with Section 20E.2 of the City Code that the maximum amount to be raised by the Special Municipal Sewer Tax is $3,140,000; and WHEREAS, under the provisions of Section 20E.3, the tax for the fiscal year beginning July 1, 2024 shall be set forth hereafter; and
WHEREAS, that based upon the foregoing findings and determinations, the City Council does hereby levy a Special Municipal Sewer Tax with an estimated revenue of $3,140,000 for the 2024-25 tax year pursuant to Chapter 20E of the Piedmont Municipal Code at the rates set forth hereafter.

NOW, THEREFORE, BE IT RESOLVED, that based upon the foregoing findings and determinations the City Council does hereby levy a Special Municipal Sewer Tax with an estimated revenue of $3,140,000 for the 2024-25 tax year pursuant to Chapter 20E of the City Code at the rates set forth hereafter:

Single Family Residence
0 to 4,999 sq. ft. $ 699
5,000 to 9,999 sq. ft. $ 797
10,000 to 14,999 sq. ft. $ 919
15,000 to 20,000 sq. ft. $ 1,072
Over 20,000 sq. ft. $ 1,263
Commercial Properties
0 to 10,000 sq. ft. $ 1,263
Over 10,000 sq. ft. $ 1,742
Multi-Family Residence per unit $ 582

Parcels Divided by Tax Code Area Line $ 699

BACKGROUND
The City Charter requires that a public hearing be held prior to adoption of the budget, the levy of the Municipal Services Special Tax, and the proposed levy for the Special Municipal Sewer Tax. This is the second of two scheduled public hearings. The first public hearing was held on June 3, 2024 and was preceded by a series of four City Council Study Sessions devoted to establishing City goals and priority projects, as well as examining revenue projections and noteworthy budget variables, which took place in March and April of this year.

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Next year, the City anticipates public dialogue and future consideration of the merits of adopting a two year budget. This budget cycle, the City prepared a forecast of second year of revenues and expenditures to introduce the concept to staff.

The following items have been incorporated into the Proposed Budget as presented at the June 3, 2024 City Council Meeting:
• Facilities Capital Fund:

Additionally, in accordance with direction received from the Financial Planning and Budget Advisory Committee, the Transfer Tax estimate in the Ten-Year Projections is being increased from $3.8 million to $4.2 million for Fiscal Years ending 2026 and beyond. The $4.2 million is in line with the 10 year average for this revenue source. The $400,000 in additional annual revenue is being transferred to the Facilities Capital Fund.

Following closure of this second public hearing, the City Council may direct additional adjustments to the draft documents that will be reflected in the final adopted budget.

DISCUSSION
The Proposed 2024-25 Budget projects an Operating Net Income of $1.7 million in the General Fund. After Capital Transfers of $2.0 million (primarily ARPA funds) to the Facilities Capital Fund and $1.4 million to the Facilities Maintenance and Capital Improvements Fund, the General Fund will experience a Net Loss estimated at $1.7 million, which results in a projected ending General Fund balance of $6.8 million, or 17% of operating expenditures.

A number of key factors provide important context for the next fiscal year and the foreseeable future:

The 6th Cycle Piedmont Housing Element for 2023 to 2031 continues to represent a significant investment of City time and resources. To date, hundreds of community members have participated by attending public meetings, community workshops, completing surveys, submitting comment letters, and using online planning tools. This investment in a thoughtful, inclusive, and open planning process has produced Piedmont’s housing plan, which the City is now implementing.

Thoughtful planning has positioned the City to transform growth into a benefit for the community as a whole. Significant efforts were initiated beginning in FY 2021-22 and this process will continue through FY 2024-25.

Development of the City’s newest facility is in progress. In November 2020, voters approved the sale of up to $19.5 million of bonds to be used in the construction of a new community pool and related facilities. In December 2021, after obtaining a Standard & Poor’s “AAA” rating, the City successfully sold $19.5 million in General Obligation bonds at very favorable interest rates, netting FY 2024-25
Hillside Park Renovation $ 100,000
Space Planning:

City Hall and 801 Magnolia $ 50,000
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the City $24.4 million in available project funds. Due to rapid inflation in construction costs, the total all-in project budget, including the pools, building, offsite right of way improvements, full facility electrification, and two bid additives (Scoreboard/Timing System and Upgraded Lighting) is estimated to be $28.9 million. An increase of $1.0 million, bringing the total overall budget to $29.9 million, was approved by the City Council in December 2023. The increase was due to unforeseen costs to remove two buried fuel tanks along with the contaminated soil, as well as construction delays due to weather and PG&E. The pool is now targeted to open in the early 2025.

Expenditures beyond the initial $24.4 million raised in the bond offering will be primarily funded by major private donors, the Piedmont Recreational Facilities Organization (PRFO) fundraising campaign, support from the Kroeger estate and the California Energy Design Assistance Program, an AVA Community Energy loan associated with the electrification of the pool, and internal capital funds.

Interest in the future of our aged facilities is also on the horizon. The City has reached a point of critical mass with the deficiencies identified in Piedmont’s essential services buildings that house public safety. In FY 2023-24, an ad hoc subcommittee of the City Council revisited prior work performed to date and led discussion of the topic with the entire governing body. Unanimous consensus included direction to prioritize a master planning framework and develop an actionable series of next steps. Staff is including $600,000 in the FY 2024-25 Capital Budget to develop a phased plan for the Civic Center area that prioritizes future address of the City’s Public Safety Facilities.

City Council Budget Study Sessions
A series of four City Council Study Sessions devoted to establishing City goals and priority projects, as well as examining revenue projections and noteworthy budget variables, took place in March and April of this year.

The first two convenings were focused on governance and goal setting. Through a consensus building process, the City Council established five overarching goals to guide priorities, policies and operations:

1. Financial Stability – Prioritize financial health and stability with efficient staffing, responsible budgeting and long range forecasting.

2. Community Wellness & Inclusion – Focus on public safety, civic engagement and program offerings as pathways to community vitality.

3. City Infrastructure – Maintain and improve reliable municipal infrastructure and facilities for public use and enjoyment.

4. Effective Government – Support policies and structures that provide for the delivery of high quality city services.

5. Environmental Stewardship – Encourage the reduction of the community’s carbon footprint and ways to positively influence consumer choice.

The City Council also identified four key efforts for FY 2024-25 that are to be prioritized. These include completion of the Community Pool project, the Dispatch Center Relocation project, the Agenda Report Page 5
Sidney and Irene Dearing Memorial project and substantial progress toward addressing a future Public Safety Building within the Civic Center area.

Two subsequent sessions explored revenue projections and expenditures required to preserve existing service levels, as well as recommendations to manage risk, increase efficiency, and improve delivery of public services. Major capital projects were discussed in detail.

Since that time, staff have worked in earnest to identify pathways to achieving a balanced budget that accomplishes high priority objectives.

The proposed Budget includes the following items:

Planning & Building Permit Processing
• Maintain part time staff but at a lower level than last year until the staffing and fee analysis study is completed and actional recommendations are available. o The budget for part time staff was reduced from $538,000 in FY 23-24 to $417,000 in the Proposed FY 2024-25 budget.

Facilities Project Manager – Part Time
• The part time Facilities Manager will oversee the management, renovation, and maintenance of the City’s physical assets, including all buildings and associated infrastructure, including HVAC, alarm systems, and ADA improvements. o Salary and taxes of $108,000 are included in the proposed budget.

Compliance with 6th Cycle Housing Element Requirements
• Professional Consulting Services line items address completion of the Housing Element, preparation of the Environmental Impact Report (EIR), associated General Plan amendments, the Moraga Canyon Specific Plan and other related deliverables. o Total expenditures will span two fiscal years totaling $2.2 million. The amount of $1,400,000 was included in the FY 2023-24 Budget and $829,000 is included in the Proposed FY 2024-25 Budget.
o Approximately $605,000 of the $829,000 will be funded via a carryforward from the FY 2023-24 Budget as costs were incurred at a slower pace than expected.

Dispatch Center Staffing
The current staffing model provides two Dispatchers for 10 hours during a 24-hour period, 4 days per week. Practically speaking, this form is achieved only 40% of the time due to vacations, sick time, and other absences.

National Fire Protection Association (NFPA) standards require a minimum staffing level of two Dispatchers. While past performance demonstrates the adequacy of current staffing for meeting today’s call volume, additional staffing would more closely model best practices and ensure that radio calls are answered promptly. The addition of two full time employees will provide two Dispatchers for 16 hours during a 24-hour period, 6 days per week, and 10 of 24 hours one day per week.

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• One additional Dispatcher position was included in the Approved FY 2023-24 Budget and this position was filled in January 2024.
• A second Dispatcher position was approved in December 2023, contingent upon the passing of Measure F (increased City Services Tax). Measure F passed in March 2024. o The position of Dispatch Supervisor is included in the Proposed FY 2024-25 Budget with total compensation of $175,000.
• Approximately $280,000 in grant funds from the State of California Citizens’ Option for Safety (COPS) program will be utilized in the initial two years of the staff expansion.

Systems Related Costs
The following project costs are included in the Proposed FY 2024-25 Budget:
• Records Management Project - $203,000.
o Records retention policy update
o Digitization of records currently in paper format, including historical property records, which will free up space in lower level of City Hall. o Full utilization of City’s Content Management Systems. o Destruction of obsolete records and reduction of offsite storage costs. • Enterprise Asset Management System – One-time implementation costs of $156,000 and annual software fees of $40,000 (ongoing).
o Tool for managing and tracking daily tasks and workflows, including labor and equipment costs.
o Allows staff to assign or request work orders.
o Automates numerous tasks currently being performed manually. o Includes a public portal for work requests, reporting issues, and complaints. • Business License Software - One time implementation costs of $50,000 and annual software fees of $25,000 (ongoing).
o Currently a labor intensive, manual, paper driven process. o Internal and external portal facing solution.
o Automates workflow between staff and licensees.

One Time & Cyclical Expenses
• Labor Negotiations
o All employee agreements expire on June 30, 2025.
o $230,000 is included in the Proposed Budget for the services of a labor negotiator and a compensation study for all full time positions.
• Recruiting and Succession
o Two executive retirements are anticipated in FY 2024-25. o $160,000 is included in proposed expenditures consisting of $106,000 succession costs and $54,000 recruiting expense.

Capital Projects
• Facilities Capital Fund supported projects presented in the FY 2024-25 Budget include but are not limited to:
o Community Pool Completion
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o Dispatch Center Relocation
o Phased Planning for Civic Center / Essential Services Buildings o Dearing Memorial Project
o Linda Beach Playground
o Sharon Avenue Storm Drain Improvements

GENERAL FUND REVENUES
The City is projecting General Fund revenues, not including grant pass throughs, in FY 2024-25 of $37,577,143 compared to the current FY 2023-24 projection of $37,563,836. Revenue by category is as follows:

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Property Related
Taxes $ 24,617,200 61% 24,572,000 $ 65% $ 45,200 0%
Recreation Related 3,969,000 10% 3,755,161 10% 213,839 6% City Service Taxes 2,804,500 7% 2,736,500 7% 68,000 2%
Other Agencies 2,951,305 7% 859,744 2% 2,091,561 243%
UUT & Franchise Fees 2,078,000 5% 1,960,000 5% 118,000 6% Building Permits &
Planning Fees 1,874,500 5% 1,845,500 5% 29,000 2%
Business and Sales
Taxes 985,000 2% 965,000 3% 20,000 2%
Other 970,943 2% 1,221,931 3% (250,988) -21%
Total $ 40,250,448 100% 37,915,836 $ 100% 2,334,612 $ 6% Pass Thru (ARPA,etc) (2,673,305) (352,000) (2,321,305)
Adjusted Total $ 37,577,143 $ 37,563,836 $ 13,307 0%
2024-25 2023-24
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The major sources of revenue in each category are:

Property Related Taxes
Property-related taxes are the City’s primary revenue source and account for $24,617,200 or 61% of General Fund revenues. This amount is an increase of $45,200 over the 2023-24 projected actual.

The FY 2024-25 Proposed Budget consists of:
• Property Tax revenues, which consist of taxes on secured and unsecured property, are budgeted at $18,994,000, an increase of $679,000 or 4% as compared to the FY 2023-24 projection.
o The 4% increase is based on estimates received from Alameda County. This increase is less than the past three years, which had annual increases of 4.5%, 8.0%, and 5.1%.
o The softening of the increase is due to a decline in the number of homes being sold and their average sales price. In addition, assessed valuation adjustments under Proposition 8 and 19 have also increased.
• Property Tax in Lieu of Motor Vehicle License Fee (MVLF) / Homeowners Tax Relief is budgeted at $1,823,200, a 4% increase over the prior year. o In 2004, the State Legislature permanently reduced the MVLF rate from two percent to 0.65 percent and compensated cities and counties for their revenue loss with a like amount of property taxes, dollar-for-dollar. Typically, the annual change in this tax corresponds with the change in property tax. • Real Property Transfer Tax revenue is budgeted at $3,800,000, a decline of $700,000 or 16%, from the prior year. Staff is budgeting this cautiously as high interest rates and high inflation have weakened the real estate market, causing Transfer Tax receipts to decline approximately 30% from their peak in FY 2020-21.

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Property Tax $ 18,994,000 77% 18,315, $ 000 75% 679,000 $ 4% MVLF / Homeowners
Relief 1,823,200 7% 1,757,000 7% 66,200 4%
Sub-Total 20,817,200 85% 20,072,000 82% 745,200 4%
Transfer Tax 3,800,000 15% 4, 500,000 18% (700,000) -16% Total $ 24,617,200 100% 24, $ 572,000 100% $ 45,200 0%
2024-25 2023-24
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Below is a table which summarizes the volatility of the housing market over the last several years (FY 2023-24 is estimated):

Annual Statistics Related to Real Property Transfer Tax Revenue Recreation Related Revenue
Recreation related revenue consists of revenues generated from recreation programs and facility rentals and is budgeted at $3,952,000 in 2024-25, an increase of $210,000 from the prior year.

The major components are:
• Recreation Programs – Revenue is budgeted at $2,853,500, an increase of $177,200, or 7%, over the FY 2023-24 projection. The increase is due to an additional week of summer camps and expanded PRD in-house camp offerings this summer. • Pre-School Program - Revenue is budgeted at $525,000, an increase of approximately $30,000, a 6% increase over the FY 2023-24 projection due to an increase in the number of preschool summer camps being offered.
• Facility Rentals – Staff has budgeted $573,000 for FY 2024-25 which is 1% higher than the prior year’s projection.
0 20
40 60
80 100
120
140
160
180
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
# of Homes Sold
$ Dollars
Avg. Sales Price Transfer Tax Collected # of Homes Sold Agenda Report Page 10
City Service Taxes
• Parcel Tax revenue, based on the ballot measure approved by 83% of voters in March 2020, is estimated at $2,690,000, an increase of $68,000 or 2.6% over the 2023-24 projection.

The annual tax increase is limited to the lower of CPI, which was 2.3%, or 4%. o In March 2024, 76% of Piedmont voters approved a 20% increase to the tax and extended the term for 12 years, effective July 1, 2025. • The Paramedic and Water Users Taxes remain unchanged. They are levied at $18.46 and $12.00 per parcel, respectively.

Revenues from Other Agencies
Revenues from Other Agencies are budgeted at $2,951,305, an increase of $2,091,561 from the FY 2023-24 projection. The bulk of the increase is due to the American Rescue Plan Act (ARPA) funds which are recognized as revenue when expended ($1.7 million) and an Alameda County Transportation Commission (ACTC) grant of $500,000. The ARPA funds are being used for the Dispatch Center Relocation project and the CTC funds for the 2024 Pavement project.

Utility User Taxes & Franchise Fees
Utility User Taxes are taxes collected from residents for the use of electricity, gas, and telephone.

Franchise Fees are contractual obligations collected from PG&E, Republic Services, and Comcast for the right to operate in the City.
• Utility User Taxes are budgeted at $1,460,000 which is 7% higher than the current year’s projection. The increase is due to expected rate hikes by PG&E.

Franchise Fees are budgeted at $618,000, a 3% increase over the current year projection of $600,000.

Building Permits and Planning Fees
This category consists of the following construction related activities: Building Permits, Planning Fees, Plan Check Fees, General Plan Maintenance Fee, and Records Management Fees.

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Parcel Tax $ 2,690,000 96% 2,622, $ 000 96% $ 68,000 3% Paramedic Tax 69,500 2% 69,500 3% - 0%
Water Users Tax 45,000 2% 45,000 2% - 0%
Total $ 2,804,500 100% 2,736, $ 500 100% $ 68,000 2%
2024-25 2023-24
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Proposed Revenue for FY 2024-25 is $1,874,500 compared to a projection of $1,845,500 for the current fiscal year primarily due to proposed fee increases. The proposal is to increase fees consistent with the rise in the Consumer Price Index.

Business and Sales Taxes
Business taxes consist of Business License and Real Estate Rental taxes. Business Licenses were relatively stable until an 18% jump in FY 2021-22 followed by a 30% increase in FY 2022-23. FY 2023-24 is tracking to the same level, and a modest increase (3%) is budgeted for FY 2024-25.

Rental taxes were increasing approximately 6% per year until leveling off in FY 2020-21. Sales taxes have hovered between $220,000 and $250,000 for the past three years.

Staff is estimating $985,000 in revenues, an increase of $20,000 or 2%, from the current year for this category.

Other Revenue
The major components of Other Revenue consist of these miscellaneous items: Ambulance Service Charges, Lease Revenue, Reimbursable Services, Interest and Unrealized Investment Results, and other miscellaneous receipts.

Staff is budgeting $970,943 for FY 2024-25 compared to a projection of $1,221,931 in the current fiscal year, a decrease of $250,988. The primary reason for the variance is lower interest income as interest rates are expected to decline. Additionally, FY 2023-24 included approximately $108,000 received for insurance claims.

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GENERAL FUND EXPENDITURES
The City is budgeting $39,770,718 in General Fund expenditures, an increase of 11% from last year’s projected expenditures. In developing the Proposed Budget, the City continues efforts to control and contain operating costs in all departments.

The following is a summary by cost categories:

General Fund Budget by Expenditure Category
Personnel Costs
Personnel related costs, which include salaries & wages, benefits, and retirement costs, are the largest overall expenditure in the General Fund at $24,597,820, which is $1,382,378 (6%) higher than the prior year projection. Such costs make up 62% of the total 2024-25 General Fund budget.

The tables below summarize projected personnel costs by department and by type:

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Personnel Costs
$ 24,597,820 62% 23,215,442 $ 65% 1,382,378 $ 6%
Maintenance &
Operations 10,322,427 26% 8,826,713 25% 1,495,714 17%
Non-Departmental
4,450,471 11% 3,923,109 11% 527,362 13%
Aquatics Subsidy
400,000 1% 0 0% 400,000 NA
Total $ 39,770,718 100% 35,965,264 $ 100% 3,805,454 $ 11% 2024-25 2023-24
Agenda Report Page 13
Personnel Budget by Department
Personnel Budget by Type
In FY 2021-22 the City entered into four-year labor agreements with all City employees including its four bargaining units, as well as all unrepresented employees. With the goal of containing costs and setting total employee compensation to within -3 % of the median of Piedmont’s comparator cities, the City agreed to the following major terms:
• Salary increases in each of the next four years as follows: 3%, 3%, 3.25% 3.25%. • Continue medical benefit cost sharing but reset base to FY 2020-21 level. • Freeze employee cost sharing percentage for CalPERS at FY 2020-21 levels.

FY 2024-25 is the final year of these four-year agreements.

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Administration $ 1,974,807 8% 1,780,050 $ 8% 194,757 $ 11% Communications 376,711 2% 355,102 2% 21,609 6%
Public Works 2,489,967 10% 2,239,730 10% 250,237 11%
Planning & Building 1,913,950 8% 1,939,120 8% (25,170) -1% Recreation 2,247,780 9% 2,106,503 9% 141,277 7%
Police 7,702,445 31% 7,001,400 30% 701,045 10%
Fire 7,892,160 32% 7,793,537 34% 98,623 1%
Total $ 24,597,820 100% 23,215,442 $ 100% 1,382,378 $ 6% 2024-25 2023-24
Proposed % of % of
Category Budget Budget Projected Total $ Change %
Salaries $ 16,702,467 68% 16,371,788 $ 71% 330,679 $ 2% Health Insurance 2,150,899 9% 1,842,022 8% 308,877 17%
Retirement 4,765,838 19% 4,118,052 18% 647,786 16%
Other Benefits 978,616 4% 883,580 4% 95,036 11%
Total $ 24,597,820 100% 23,215,442 $ 100% 1,382,378 $ 6% 2024-25 2023-24
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Salaries expense for FY 2024-25 is budgeted at $16,702,467 which is a 2% increase compared to the FY 2023-24 projection. The increase is due to the following:
• 3.25% across the board wage increase per labor agreements. • The addition of the Dispatch Supervisor in the Police Department. • One temporary part-time position in Administration to lead specific records management projects, including digitization of property files.
• Succession costs of $106,000 included for transition activities associated with two key planned retirements.
• Assumption of full staffing.

These increases are partially offset by:
• Lower overtime costs as both the Police and Fire Departments are at full staff. • Decline in part-time costs in the Planning and Building Department.

In addition, as compared to the prior year projections, the most significant changes in personnel costs are as follows:
• Health Insurance – The proposed budget reflects an increase of $308,877 over last year.

The increase is primarily due to an assumed 5.0% increase in premium rates and the assumption of full staffing.
• Retirement - Employee retirement costs are projected to increase $647,786 over last year. o In FY 2018-19 CalPERS began phasing in the lowering of its discount rate from 7.5% to 7.0%. The full impact of this phase in will be completed in FY 2024-25. o In FY 2020-21, CalPERS experienced a very favorable investment return of 21.3%.

The large gain triggered the CalPERS Risk Mitigation Policy which lowered the discount rate to 6.8%. Then in FY 2021-22, the CalPERS portfolio lost 6.1%. These events resulted in a lower Unfunded Accrued Liability (UAL) payment ONLY in FY 2023-24, but Normal Cost increasing dramatically in FY 2023-24 and then stabilizing going forward.
o In FY 2024-25, staff is projecting that the Normal Cost, net of employee cost share, will increase by 3%, from $1,621,905 (9.9% of salaries) in FY 2023-24 to $1,718,015 (10.3% of salaries) in FY 2024-25. The Unfunded Liability Payment will jump 22% to $3,047,823, an increase of $551,676.

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• The Normal Cost is projected to increase slightly below the same rate as payroll expense going forward. As Tier 1 employees retire, the overall rate being paid declines. • The Cost Share offset will continue to decline as CalPERS Tier One employees retire. • Unfunded liability payments are projected to increase at an average rate of 9% for the next 7 years, then begin to flatten out.

Maintenance and Operations
Maintenance and Operations costs are budgeted at $10,322,427, amounting to 26% of the FY 2024-25 General Fund budget and an increase of $1,495,714 compared to the FY 2023-24 projection.

This category includes the following major expenses:
• Employee related – Conferences, travel, training, and memberships • Supplies – Department supplies
• Equipment – Vehicle maintenance and repair, fuel, and rentals • Contract Services – Third party recreational activity providers, legal, consulting, crossing guards
• IT related – Computer Courage contract, software licenses and strategic planning • Other – Public Works services (including street patching, landscaping, and tree pruning) • Utilities
Proposed % of % of
Category Budget Budget Projected Total $ Change %
Normal Cost $ 2,103,743 44% 2,035,178 $ 49% $ 68,565 3% Cost Share (385,728) -8% (413,273) -10% 27,545 -7%
Net Normal Cost 1,718,015 36% 1,621,905 39% 96,110 6%
Unfunded Accrued
Liability (UAL) 3,047,823 64% 2,496,147 61% 551,676 22% Total $ 4,765,838 100% 4,118,052 $ 100% 647,786 $ 16%
2024-25 2023-24
Agenda Report Page 16
The following summarizes maintenance and operations costs by department:

Maintenance and Operations Budget by Department
The most significant increases in Maintenance and Operations costs in the FY 2024-25 Proposed Budget as compared to the FY 2023-24 projection are as follows:
• Administration – Expenses are projected to be $798,075 (40%) higher year over year. The increase is primarily due to:
o IT related expenses – Increase in Client First consulting, software and Computer Courage staffing - $315,000.
o Labor Negotiations, including all city compensation study - $230,000. o Records Management Project - $203,000.
o Recruiting Expense - $54,000.
o Election expenses - $37,000.
• Public Works – Staff is budgeting an increase of $272,334. This increase consists of the following:
o Enterprise Asset Management system annual software fees - $42,500 o Increased utility costs - $47,500
o Maintenance and operating expenses increase due to inflationary pressures - $175,000
• Fire – Staff is projecting an increase of $141,795 over last year primarily due to costs associated with the Local Hazard Mitigation Plan. The City was awarded a grant of approximately $150,000 to fund this project.
• Planning and Building – Staff is budgeting an increase of $124,405. This increase is primarily due to:
o Carryforward of unspent funds for Supplemental Planning Services, which consists of Housing Element related programs and Objective Design Standards - $455,000.

Proposed % of % of
Category Budget Budget Projected Total $ Change %
Administration $ 2,813,275 27% 2,015,200 $ 23% 798,075 $ 40% Communications 173,060 2% 116,800 1% 56,260 48%
Public Works 2,473,980 24% 2,201,646 25% 272,334 12%
Planning & Building 1,019,155 10% 894,750 10% 124,405 14% Recreation 1,888,900 18% 1,843,637 21% 45,263 2%
Police 1,119,262 11% 1,061,680 12% 57,582 5%
Fire 834,795 8% 693,000 8% 141,795 20%
Total $ 10,322,427 100% 8,826,713 $ 100% 1,495,714 $ 17% 2024-25 2023-24
Agenda Report Page 17
o This is offset by lower specific plan and environmental consulting expenses - ($350,000).

Non-Departmental
Non-Departmental costs are budgeted at $4,450,471, comprising 11% of the 2024-25 General Fund budget. The following costs are included:
• Insurance costs, which include General Liability and Workers Compensation, comprise $3,030,000 and present a $520,000 increase from the estimated 2023-24 expense. The increase is primarily due to:
o Higher General Liability premiums caused by increased payroll, overall actuarial adjustments to the risk pool and increased property values. In FY 2022-23, the City increased its General Liability self-insured retention from $10,000 to $25,000 per claim, which reduced the premium increase from 20% to 15% year over year.

Workers Compensation costs are projected to increase 6% as higher premiums are expected to be offset by lower claims.
• Retiree Medical Premiums - Premiums are budgeted at $1,070,000 compared to $975,000 last year. The increase is due to one retirement in 2023-24, a 5% budgeted increase in premium costs, and an estimated three retirements in FY 2024-25. • Library Services – $350,471 is budgeted as a contribution to the City of Oakland, unchanged from prior years.

GENERAL FUND BALANCE
The FY 2024-25 Proposed Budget projects Operating Net Income of approximately $1,681,000.

Proposed Capital transfers for essential capital needs are:
• $2,016,000 - Capital Improvements (ARPA & Prop 68 Funds) • $ 850,000 - Facilities Maintenance, including sidewalk replacement/repair • $ 500,000 – 2025 Street Paving Project (ACTC Funds)
Proposed % of % of
Category Budget Budget Projected Total $ Change %
Insurance $ 3,030,000 68% $ 2,510,000 64% 520,000 $ 21% Retiree Medical
Premiums 1,070,000 24% 975,000 25% 95,000 10%
Library 350,471 8% 350,471 9% 0 0%
Miscellaneous 0 0% 87,638 2% (87,638) NA
Total $ 4,450,471 100% 3, $ 923,109 100% 527,362 $ 13%
2024-25 2023-24
Agenda Report Page 18
After these transfers, the General Fund ending balance will be approximately $6.8 million, or 17% of Operating Expenses. No further transfers are recommended at this time as the City’s goal is to maintain a General Fund reserve of +/- 18% of Operating Expenses.

RECREATION DEPARTMENT \ SCHOOLMATES \ AQUATICS
While the Recreation Department is a component of the General Fund, two programs under its purview, Schoolmates and Aquatics, are accounted for in separate funds. Below is a recap of the proposed 2024-25 budget and actual results from the prior five years:

Staff has historically targeted the Recreation Department to be cost neutral. Staff is projecting 95% total department cost recovery in FY 2023-2024 and proposing 96% for FY 2024-2025. This is after historic pandemic lows of 47% and 73% in FY 2019-20 and FY 2020-21 respectively, which then recovered to 96% and 98% in FY 2021-2022 and FY 2022-23, respectively.

Proposed Projected
June-19 June-20 June-21 June-22 June-23 BUD 2025 FY 23-24 $ VAR

RECREATION (GF)
Revenue $ 2,832,816 $ 1,261,674 $ 1,761,020 $ 3,149,170 $ 3,666,420 $ 3,951,643 $ 3,741,807 $ 209,836 Salaries 1,340,569 1,315,680 1,182,494 1,460,424 1,500,586 1,712,871 1,622,136 90,735 Benefits & Taxes 356,360 321,674 309,749 415,922 444,553 534,909 484,367 50,542 Operating Exp 1,215,631 1,028,856 912,727 1,419,944 1,781,636 1,888,900 1,843,637 45,263 Total Expenses 2,912,560 2,666,210 2,404,969 3,296,290 3,726,775 4,136,680 3,950,140 186,540 % of Revenue 103% 211% 137% 105% 102% 105% 106% 89%
Net Income/(Loss) $ (79,743) $ (1,404,536) $ (643,950) $ (147,120) $ (60,356) $ (185,037) $ (208,333) $ 23,296 Cost Recovery % 97% 47% 73% 96% 98% 96% 95%

SCHOOLMATES
Revenue $ 762,930 $ 632,868 $ 586,126 $ 1,101,085 $ 1,558,831 $ 1,481,000 $ 1,425,567 $ 55,433 Salaries 448,901 459,301 495,839 468,108 554,394 1,007,155 894,700 112,455 Benefits & Taxes 131,893 139,243 123,680 147,117 202,017 287,043 165,300 121,743 Operating Exp 122,180 111,409 86,836 91,808 180,634 204,500 120,000 84,500 Total Expenses 702,973 709,953 706,355 707,033 937,044 1,498,698 1,180,000 318,698 % of Revenue 92% 112% 121% 64% 60%
Net Income/(Loss) $ 59,957 $ (77,085) $ (120,229) $ 394,052 $ 621,786 $ (17,698) $ 245,567 $ (263,265) Cost Recovery % 109% 89% 83% 156% 166% 99% 121%

AQUATICS
Revenue $ 495,806 $ 338,829 $ (1,034) $ - $ - $ 316,000 $ - $ 316,000 Salaries 387,586 375,765 74,792 5,205 1,989 380,220 - 380,220 Benefits & Taxes 52,117 52,802 16,174 (2,618) 161 111,009 - 111,009 Operating Exp 254,239 190,320 45,293 14,330 19,476 266,000 - 266,000 Total Expenses 693,942 618,888 136,258 16,918 21,627 757,229 - 757,229 % of Revenue NA NA -13183% #DIV/0! #DIV/0!
Net Income/(Loss) $ (198,136) $ (280,059) $ (137,292) $ (16,918) $ (21,627) $ (441,229) $ - $ (441,229) Cost Recovery % 71% 55% -1% 0% 0% 42% #DIV/0!

FISCAL YEAR ENDED
Agenda Report Page 19
Recreation Department Staffing Adjustments:
• Reclassify the Aquatics Supervisor position to the Recreation Supervisor classification and add incentives for Aquatics related certifications. This increases flexibility amongst the group, allowing any of the Supervisors to support Aquatics.

In 2023-24, staff is projecting Schoolmates cost recovery to be 121% and proposing a budget of 99% for FY 2024-2025. This cost recovery figure for FY 2023-2024 is well above the target due to the delay of Schoolmates related maintenance and capital projects and attaining full staffing.

The following staffing changes were approved in FY 2023-24 and will be fully implemented in FY 2024-25:
• Schoolmates Site Leads (2) and Assistant Site Leads (4) will remain part-time positions but will work more than 1,000 hours in a fiscal. As a result, the staff will be enrolled in CalPERS, will be eligible to enroll in the City’s medical insurance plan and be offered the PEMHCA minimum payment for medical benefits as required by law. Site Coordinators (2) will remain part-time, will be enrolled in CalPERS, and will receive full medical benefits. The goal of the additional part-time positions is to establish four core staff positions at each Schoolmates site and two core staff at each Mini-mates program to provide program stability, give staff the opportunity to work more hours and facilitate access to medical benefits for employee retention.

Aquatics Fund –The Proposed Budget assumes an early 2025 opening. The budget is consistent with the operational analysis prepared by the Isaac Sports Group and presented to the City Council in December 2022. Included in the Proposed Budget are the following expenses:
• Aquatics Supervisor - hired 8 months prior to opening. • Aquatics Coordinator - hired 4 months prior to opening. • Maintenance Technician (Part-Time) - hired 2 months prior to opening. • Lifeguards – Training.
• Operating expenses - $266,0050, of which $40,000 is for site furnishings.

The residual balance in the Aquatics Fund plus a General Fund subsidy of $400,000 is proposed to cover these startup costs.

OTHER FUNDS
In addition to the General Fund, the City maintains a number of major funds to provide for the long-term capital needs of the organization.

Street Infrastructure Maintenance & Replacement
The City’s FY 2024-25 budget for street infrastructure maintenance and replacement, including sidewalk repair, is $3.7 million. Funding sources include Gas Tax, SB1, Measure BB, and Measure F. These sources are funded by Sales and Gasoline taxes. The budget is based on estimates received from the County.

Agenda Report Page 20
In addition, the City has received a grant from Alameda County Transportation Commission for $500,000. The majority of available funding is dedicated to street resurfacing, with the balance dedicated to important sub-categories such as the implementation of projects prioritized by the approved Pedestrian & Bicycle Master Plan, and those related to the Complete Streets program.

The PCI (Pavement Condition Index) for the streets within the City of Piedmont is currently 61.

This is down from the 63 reported last year and 67 reported in 2019. This keeps the City’s overall average within the “Good” range.

An estimated $700,000 in additional annual spending above recent levels would be required to improve the PCI to 71 and reach the “Very Good” category.

Piedmont’s sidewalks are increasingly in disrepair. It is especially important to repair sidewalks as soon as possible to reduce the liability associated with accidents caused by unsafe sidewalks.

PCI Range Description 2024 2023 2022 2019
OVERALL 61% 63% 65% 67%
>70 Very Good 47% 50% 58% 49%
50-69 Good 22% 23% 17% 28%
24-49 Poor 22% 20% 20% 20%
0-24 Very Poor 9% 7% 5% 3%
Agenda Report Page 21
Staff has proposed a budget of $700,00 for sidewalk repair and replacement, which will be funded from the Facilities Maintenance Fund.

The City currently does not have the tools to adequately track the required maintenance of sidewalks. Staff have included in the Proposed Budget the implementation of an Enterprise Asset Management system to satisfy this and other maintenance related needs.

Facilities Maintenance Fund
The City Council established the Facilities Maintenance Fund in 2013 to provide a long-term plan for addressing City-owned facilities. In 2014, responsibility for facilities was transferred from the Recreation Department to the Public Works Department. Since that time, staff has been working to develop a thorough and well-documented plan that addresses deferred maintenance, ongoing maintenance and repair, and, importantly, the desire to build reserves to address long-term, lifecycle maintenance and replacement costs. The plan will continue to evolve and improve as staff closely monitors City needs.

In 2019-20, staff removed janitorial type expenses from this fund and are now accounting for them in the General Fund. Further, to better identify and quantify long term capital needs as opposed to ongoing maintenance costs, beginning in FY 2022-23 staff split this fund into two separate funds:
• Facilities Maintenance Fund (111) – Repairs and maintenance, scheduled maintenance, and sidewalk replacement\repair is funded annually by transfers from the General and Schoolmates Funds based on need.
• Facilities Capital Projects (112) – Capital projects for all City facilities including parks.

Funding is determined each year based on budget surplus, if any.

The following schedule summarizes the current Facilities Maintenance Fund plan. It is a roll up of scheduled maintenance and estimated repairs and maintenance for each City facility, as well as sidewalk replacement/repair.
2022-23 2023-24 2024-25 2025-26 2026-27 FY 2027
Actual Projected Budget Forecast Forecast Forecast

FACILITIES MAINTENANCE
Beginning Balance $ 347,583 $ 571,407 $ 429,407 $ 118,907 $ 128,007 $ 155,769 General Fund Subsidy $ 1,300,000 $ 850,000 $ 850,000 $ 1,500,000 $ 1,550,000 $ 1,250,000 Schoolmates Subsidy 70,075 38,000 32,000 95,600 64,104 81,628 Contributions \ Other Funding 50,615 - - - - -
Interest 17,483 8,000 15,000 24,000 25,000 21,000
Total Revenue $ 1,438,174 $ 896,000 $ 897,000 $ 1,619,600 $ 1,639,104 $ 1,352,628 Expenditures:

Sidewalks $ (601,662) $ (700,000) $ (700,000) $ (650,000) $ (650,000) $ (600,000) Annual Maintenance (223,978) (201,000) (215,000) (225,750) (234,780) (244,171) Scheduled Maintenance (388,710) (137,000) (292,500) (734,750) (726,563) (506,941) Total Expenditures $ (1,214,350) $ (1,038,000) $ (1,207,500) $ (1,610,500) $ (1,611,343) $ (1,351,112) Ending Balance $ 571,407 $ 429,407 $ 118,907 $ 128,007 $ 155,769 $ 157,285

FISCAL YEAR
Agenda Report Page 22
The schedule summarizes the current Facilities Capital Fund plan. It is a roll up of capital projects for all City facilities, including parks. Supporting schedules which detail each project are included in the Facilities Program documents.

The Facilities Capital Fund is estimated to have a balance of approximately $10.1 million as of June 30, 2024. Funding will be primarily from the General and Schoolmates Funds, when available. American Rescue Plan Act (ARPA) funds are being allocated for use on the Police Dispatch Center Relocation project in accordance with City Council direction. Construction begins in FY 2023-24.

Annual funding is determined based on available funds in the General Fund after consideration of the needs of the equipment replacement fund, facilities maintenance fund, and a General Fund reserve set aside in the range of +/-18%.

The Facilities Capital Fund includes major capital improvements currently being evaluated by the City in the column “FY 2027 & Beyond”. High-level assessments of the Police Department and Fire Department indicate considerable deficiencies in Essential Services Buildings.

Beyond the Essential Services Buildings, City staff anticipates future renovation of the City Hall basement and Recreation Department to improve accessibility and safety. Major improvements to Linda Beach, Coaches Field and Hillside Park are also being evaluated. The total cost of all these 2022-23 2023-24 2024-25 2025-26 2026-27 FY 2027
Actual Projected Budget Forecast Forecast & Beyond

FACILITIES CAPITAL FUND
Beginning Balance $ 10,059,535 $ 10,797,968 $ 10,077,736 $ 4,062,036 $ 2,576,036 $ 1,395,036 General Fund Subsidy $ 1,500,000 $ - $ - $ 400,000 $ 400,000 $ 400,000 Schoolmates Subsidy - - - - - -
ARPA Funding 232,533 250,000 1,896,800 - - -
Contributions \ Other Funding 36,298 - 219,000 - - -
Interest 245,472 450,000 300,000 61,000 39,000 -
Total Revenue $ 2,014,303 $ 700,000 $ 2,415,800 $ 461,000 $ 439,000 $ 400,000 Expenditures:

Facilities $ (619,712) $ (250,000) $ (4,625,000) $ (1,020,000) $ (1,100,000) $ (52,760,000) Parks (411,965) (601,992) (1,415,000) (669,000) (215,000) (26,105,000) Tennis Courts (80,238) (100,000) (100,000) - - (810,000) Sustainability - (43,240) (131,500) (158,000) (30,000) (752,000) Storm Drains (4,473) (100,000) (430,000) (100,000) (100,000) - Green Infrastructure - (250,000) (200,000) - (175,000) (775,000) Community Pool (72,562) (75,000) (1,500,000) - - -
Miscellaneous (86,920) - (30,000) - - -
Total Expenditures $ (1,275,870) $ (1,420,232) $ (8,431,500) $ (1,947,000) $ (1,620,000) $ (81,202,000) Ending Balance $ 10,797,968 $ 10,077,736 $ 4,062,036 $ 2,576,036 $ 1,395,036 $ (79,406,964) City of Piedmont
Five Year Capital Improvement Program

FISCAL YEAR
Agenda Report Page 23
projects is anticipated to exceed $65 million. Based on ten-year projections for the General Fund, the City does not have adequate funding to complete these projects.

Equipment Replacement Fund
The Equipment Replacement Fund sets aside funds in anticipation of the orderly replacement of City vehicles, heavy equipment, general equipment, as well as IT infrastructure. A replacement schedule has been developed detailing all equipment including the estimated year of replacement and estimated replacement cost.

The following is the proposed Equipment Replacement expenditures for FY 2024-25 of $1,146,175:

The Equipment Replacement Fund is estimated to have a balance of approximately $2.4 million as of June 30, 2024. Funding of $800,000 is needed for FY 2024-2025. Staff recommends transferring these funds in FY 2023-24 due to the projected surplus this year. $
Description Amount
Administration
Copy Machine $ 15,000
Communications
Broadcast & Streaming Equip. 100,000
Video Equipment 70,000
Public Works:

Storm Drain Camera 40,000
Recreation
Utility Electric Cart 30,000
Copy Machine 15,000
Police:

Vehicle - Patrol Unit 96,000
Fire:

Ambulance 379,335
IT:

Applications & Systems 236,000
Hardware 110,000
Desktops\Laptops\etc. 54,840
Total Proposed Expenditures $ 1,146,175
Agenda Report Page 24
The fund balance at the end of FY 2024-25 is projected at approximately $2.2 million, with an unrestricted fund balance of $1.6 million and a restricted balance of $600,000. The restriction is the City Council approved system rehabilitation loan to the Sewer Fund.

Sewer Fund
The Sewer Fund is used to account for costs related to the inspection, maintenance, repair, and replacement of the sanitary sewer system in the City. In July 2014, the City and other East Bay jurisdictions entered into a Consent Decree Order (CDO) mandated by the U.S. Environmental Protection Agency (EPA) which requires the City to complete a rehabilitation of the sewer system and to establish a comprehensive monitoring of system performance. With the CDO finalized, and all of the mandated improvement measures identified, the City has moved forward with definitive plans to achieve full compliance.

To this end, the City Council previously approved loans totaling $800,000 to the Sewer Fund from the Equipment Replacement Fund and the Facilities Maintenance Fund. These loans made the need for increasing the Sewer Tax or Real Property Transfer Tax unnecessary and provided the resources needed to initiate the next phase of required sewer rehabilitation.

With the approval of a low-interest loan by the State Water Resources Control Board (SWRCB), construction of Phase V of the sewer rehabilitation project began in 2017-18 and was completed in the first quarter of FY 2018-19. Thereafter, Phase VI design work began in FY 2022-23 with construction anticipated to begin in FY 24-25. All phases of rehabilitation are projected to be completed over the next decade, ahead of the overall schedule established under the CDO.

Sewer Fund Recap
Projected Proposed
SEWER FUND Budget
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Beginning Balance $4,081,447 4,118,449 $ $ 2,942,231 $ 3,238,843 $ 6,945,999 $ 6,952,429 Sewer Service Charges \ Interest 3,222,000 3,270,000 3,345,100 3,444,024 3,637,595 3,741,674 Loan Proceeds 0 0 2,585,998 3,231,000 0 969,963
Total Revenue 3,222,000 3,270,000 5,931,098 6,675,024 3,637,595 4,711,636 Operating Costs 1,280,000 1,343,000 1,392,150 1,443,408 1,496,828 1,552,469 Capital Costs:

General Sewer Replacement 540,000 250,000 262,500 275,625 289,406 303,877 Capital Equipment 400,000 80,000 0 0 0 0
Phase VI 300,000 2,250,000 3,231,000 0 0 0
Phase VII 0 0 0 500,000 1,000,000 2,379,850
Debt Service 664,998 523,218 748,836 748,836 844,931 1,103,142 Total Expenditures 3,184,998 4,446,218 5,634,486 2,967,869 3,631,165 5,339,338 Ending Balance $ 4,118,449 $ 2,942,231 $ 3,238,843 $ 6,945,999 $ 6,952,429 $ 6,324,727 Projected
Agenda Report Page 25
In addition to the construction of rehabilitation projects, the Sewer Fund reimburses the General Fund for sewer related expenses charged to the General Fund. Public Works and Finance have refined expense estimates and captured actual costs related to personnel, supplies and services.

Based on the data collected, the proposed transfer for FY 2024-25 is projected at $900,000, an increase of $10,000 over the last fiscal year.

Pension Rate Stabilization Fund
In 2017-18, the City established a Pension Rate Stabilization Fund. The City partnered with the Public Agency Retirement Services (PARS) to establish a Section 115 Trust. The trust allows for the smoothing of rising pension costs which are expected to more than double over the next ten years. Through the deposit of funds into the Section 115 Trust Program, the City could expect to earn a rate of return greater than what would be attained through the City’s investment with the State of California Local Agency Investment Fund (LAIF). The higher return is made possible because the Section 115 Trust Program is not prohibited by State law from making purchases of higher yield equities.

In May 2018, the City transferred $2.0 million from the General Fund into the Pension Rate Stabilization Fund with an additional transfer of $750,000 in November 2018. In February 2021, the City engaged actuarial firm Bartel & Associates to refresh the City’s ten-year pension expense projections. The projections increased approximately $3.0 million as compared to the long-range plan. The increase was due to CalPERS lower than expected investment results in FY 2019-20 and the effect of the changes in its amortization policy. Amortization periods for the Unfunded Accrued Liability have been shortened from 30 years to 20 years, which lowers overall liability, but increases annual payments. Due to this change, an additional $1.0 million was transferred to PARS in October 2021.

The City’s long-term plan now indicates that the City may need to draw down on the PARS fund as early as FY 2025-26 to pay annual pension payments and maintain a reasonable General Fund reserve of +/-18%.

Agenda Report Page 26
Table 1 – City of Piedmont Budget Summary

OPERATING BUDGET

CURRENT ESTIMATED PROPOSED BUDGET
BUDGET EXPENDITURES BUDGET %
EXPENDITURES: 2023-24 2023-24 2024-25 CHANGE
ADMIN. & COMMUNICATIONS $ 4,425,281 $ 4,269,227 $ 5,337,853 20.6% PUBLIC WORKS 4,590,740 4,441,376 4,963,947 8.1%
PLANNING & BUILDING 3,664,244 2,833,870 2,933,105 -20.0% RECREATION 3,578,567 3,950,140 4,136,680 15.6%
POLICE 8,188,633 8,063,080 8,821,707 7.7%
FIRE 8,397,967 8,487,537 8,726,955 3.9%
NON-DEPARTMENTAL 3,947,471 3,923,109 4,450,471 12.7%
TOTAL GENERAL FUND 36,792,903 35,968,339 39,370,718 7.0%

OTHER OPERATING FUNDS
SCHOOLMATES FUND 1,433,377 1,180,000 1,466,698 2.3%
TOTAL OPERATING EXPENDITURES $ 38,226,280 $ 37,148,339 $ 40,837,416 6.8%

OTHER FUNDS BUDGET
EXPENDITURES:

ATHLETIC FACILITY PRESERVATION 40,000 40,000 42,000 5.0% COPS 380,000 282,000 175,000 -53.9%
GAS TAX 550,000 600,000 300,000 -45.5%
MEASURE BB 1,800,000 1,105,000 1,825,000 1.4%
MEASURE D 35,000 36,200 36,500 4.3%
MEASURE F - VRF 90,000 90,000 40,000 -55.6%
SB1 ROAD MAINTENANCE 280,000 280,000 290,000 3.6%
TRAFFIC SAFETY 9,000 10,500 11,000 22.2%
TOTAL SPECIAL REVENUE FUNDS 3,184,000 2,443,700 2,719,500 -14.6% CAPITAL IMPROVEMENT 50,000 50,000 500,000 900.0%
AQUATICS PROJECT 21,483,000 11,835,000 12,518,066 -41.7% EQUIPMENT REPLACEMENT 1,974,000 1,238,294 1,146,175 -41.9% FACILITY CAPITAL PROJECT 6,186,000 1,345,232 6,931,500 12.1% FACILITY MAINTENANCE 1,757,500 1,038,000 1,207,500 -31.3% TOTAL CAPITAL PROJECT FUNDS 31,450,500 15,506,526 22,303,241 -29.1% AQUATICS BOND 1,273,225 1,273,525 1,272,900 0.0%
TOTAL DEBT SERVICE FUNDS 1,273,225 1,273,525 1,272,900 0.0% AQUATICS 225,271 - 757,229 236.1%
SEWER 2,724,999 2,294,998 3,546,219 30.1%
TOTAL ENTERPRISE FUNDS 2,950,270 2,294,998 4,303,448 45.9% TOTAL OTHER FUNDS $ 38,857,995 $ 21,518,749 $ 30,599,089 -21.3% GRAND TOTAL $ 77,084,275 $ 58,667,088 $ 71,436,505 -7.3%

CITY OF PIEDMONT
FY 2024-2025 BUDGET SUMMARY
Agenda Report Page 27

APPROPRIATIONS (GANN) LIMIT
State law approved by the voters and known as the Gann Initiative places limits on the amount of tax-generated revenue (Proceeds of Taxes) that cities can receive and appropriate each year. The limit is based on actual appropriations during 1978-79 and is adjusted annually by cost-of-living and population growth factors. Only specific revenues are classified as Proceeds of Taxes.

The passage of Proposition 4 in November 1979 established the annual appropriation limit requirement beginning in 1980-81 (using 1978-79 as the base) for state and local entities. If an entity received excess funds (over the limit) in any one year, it could only use the funds in the subsequent year if below the Appropriations Limit that year.

Senate Bill 1359 provided for implementing Proposition 4. The State Department of Finance is required each year to notify local governments of the changes in the cost of living or change in California Per Capita Income, whichever is lower, along with the population change from the prior calendar year. Using this data, the City Council would then adopt a resolution stating the amount of the appropriation limit for the new fiscal year.

Proposition 111 and SB 88 modified Proposition 4 to allow the annual adjustment factors to be altered beginning with the 1990-91 calculation. Rather than using the lesser of California Per Capita Income or U.S. CPI to measure inflation each year, the city may choose to use the growth in the California Per Capita Income or the growth in the non-residential assessed valuation due to new construction within the city. Also, rather than using only the population growth of the city, each city may choose to use the population growth within its county.

The Calculation of Appropriation Subject to Limit for 2024-25 is attached. This computation includes the calculations necessary to determine the City's appropriation limitation for 2024-25.

The carry forward 2023-24 Appropriation Limit, adjusted by the Cost of Living factor of

1.0362% and the population factor of .9946% (from the Department of Finance) establishes the 2024-25 Appropriation Limit at $32,425,416. The City’s appropriations subject to limit totals $31,843,194, which is $582,222 below the calculated limit.

FEES & CHARGES
The City annually reviews its fee schedule and adopts updates to certain specific fees and charges where determined necessary. It is generally City policy to establish fees and charges for City services which fully reimburse the City for the associated costs of providing services, and thus planning permit fees, building fees, and other fees for services are adjusted on a regular basis. Staff review existing fees and charges 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.

Based on increases in costs, including related staff costs, staff are recommending a 2.6% increase in the following categories of fees in the Planning & Building Department:

Building Division Fees
o Building Permit and Inspection Fees
o Plan Check Fees
Agenda Report Page 28
o Other Fees and Permits
o Title 24 Plan Check
Planning Division Fees
o Design Review Permit – Expedited Review
o Design Review Permit – Director Review
o Design Review Permit – Planning Commission Review
o Variance
o Conditional Use Permit
o Other Review
o Subdivision/Map Act
o California Environmental Quality Act (CEQA)
o Filming Permit
o Other Fees
In addition, rental fees for Community Hall, Amphitheatre, and Tea House have increased between 2% and 3%.

Fees in the categories above have been adjusted, but all fees are shown in the schedule for ease of reference. Based on staff estimates of City costs of service, the amounts recommended for fees and charges, including increases, do not exceed the reasonable cost of providing the services.

By: Michael Szczech, Finance Director
Attachment A - Schedule of Fees and Charges
Attachment B - Calculation of Appropriation Subject to Limit (Schedules 1 – 3) Attachment C - Department of Finance Price & Population Information Agenda Report Page 29
City of Piedmont Fee Schedule
2024-25 Proposed Budget
Fee Schedule
Attachment A Agenda Report Page 30
City of Piedmont Fee Schedule
2024-25 Proposed Budget
This Page Left Intentionally Blank
Attachment A Agenda Report Page 31
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
Home Occupation Permit Application Fee $100
Street Use Permit Application Fee $50
State Disability Access Fee $4 Added to Business Licenses pursuant to GC4467
Bank Non-Sufficient Funds Fee $35
Bank Stop Payment Fee $31

DESCRIPTION FEE COMMENTS
Banner Hanging Fee $105 Piedmont Groups
Banner Hanging Fee $300 Outside Piedmont Groups
Encroachment Permits (Work in Right-ofWay) $564 Depending on project site and scope, and deposit might be required
Encroachment Permits with Engineering
Review $911
Revocable Encroachment Permit (for semiperminant improvements in the Right-ofWay or within easements $1,030
Sidewalk Inspection $265
Sewer $272
Solid Waste Self Haul Permit $272
Exemption from Curbside Placement of
Solid Waste Carts No Fee Requires annual renewal

SCHEDULE OF FEES AND CHARGES
II. PUBLIC WORKS
I. ADMINISTRATION

SCHEDULE OF FEES AND CHARGES
Agenda Report Page 32
Attachment A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
Job Value of work being done: Fee based on value of work $1 to $500 Base Fee of $76
$501 to $2,000 Base Fee of $82 +
($4.35 for every $100)
$2,001 to $25,000 Base Fee of $148 +
($21.11 for every $1,000)
$25,001 to $50,000 Base Fee of $663 +
($15.12 for every $1,000)
$50,001 to $100,000 Base Fee of $1,062 +
($10.42 for every $1,000)
$100,001 to $500,000 Base Fee of $1,619 +
($8.38 for every $1,000)
$500,001 to $1,000,000 Base Fee of $4,872 +
($7.09 for every $1,000)
Over $1,000,000 Base Fee of $8,964 +
($4.53 for every $1,000)
Plan Check Fee
Job Value of work being done: Fee based on value of work $1 to $500 Base Fee of $25
$501 to $2,000 Base Fee of $30 +
($3.17 for every $100)
$2,001 to $25,000 Base Fee of $71 +
($13.66 for every $1,000)
$25,001 to $50,000 Base Fee of $404 +
($10.25 for every $1,000)
$50,001 to $100,000 Base Fee of $668 +
($6.80 for every $1,000)
$100,001 to $500,000 Base Fee of $1,026 +
($5.46 for every $1,000)
$500,001 to $1,000,000 Base Fee of $3,148 +
($4.58 for every $1,000)
Over $1,000,000 Base Fee of $5,803 +
($3.05 for every $1,000)
Permit Renewal
Length of Permit Expiration:
less than 180 days No Fee
181 to 365 days 50% of Original Permit &
Inspection Fee
more than 365 days 100% of Original Permit &
Inspection Fee
General Plan Maintenance Fee Job value x $0.02 Fee based on value of work.

Solar PV projects exempt.

Records Management Fee 5% of Permit & Inspection Fee
5% of Permit Renewal Fee
Sewer and Solar PV projects
exempt
III. PLANNING AND BUILDING
Building Division Fees
Building Permit & Inspection Fees
Agenda Report Page 33
Attachment A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
III. PLANNING AND BUILDING
Building Division Fees
Job Value of work being done: Fee based on value of work $1 to $3,850 Base Fee of $0.50
Over $3,850 Base Fee of $0.50 +
([Job Value - $3,850] / $1*$0.0001)
Job Value of work being done: Fee based on value of work $1 to $25,000 Base Fee of $1.00
$25,001 to $50,000 Base Fee of $2.00
$50,001 to $75,000 Base Fee of $3.00
$75,001 to $100,000 Base Fee of $4.00
Over $100,000
Base Fee of $4.00 +
([Job Value - $100,001] /
$25,000*$1.00)
Other Fees & Permits
Change in Approved Building Permit
(CAP) $901
Solar Energy Related Permits $3961
Change of Address Fee $1101
Drop Box $721
Garage Sale Permit $35
Hourly Rates:

Building Official $113 hr.

Planning & Building Director $170 hr.

Plans Examiner $99 hr.

Senior Planner $96 hr.

Associate Planner $81 hr.

Housing Records Search $1011
New Sewer Connection $1,4331
Penalty Fee - Starting Construction
without Permit 50% Permit/Inspection Fee Cost + 50% of Cost Planning Commission Mailing List No Fee
Residential Rental Safety Inspection $244
Prescriptive Compliance $1011
No increase in conditioned floor area $1681
Addition area only $2041
Addition plus existing area combined $2731
New home or structure $3091
Strong Motion Instrumentation & Seismic Hazard Mapping Program (SMIP) Determined by State
Calif SB 1473 Fee (Determined by State Effective 1/1/2009) Title 24 Plan Check
1 Includes $29 Records Management Fee
Agenda Report Page 34
A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
III. PLANNING AND BUILDING
Building Division Fees
Design Review Permit – Expedited
Review
General Applications $2504
Windows & Doors $2874
Changes to Previously Approved
Permits $3934
Design Review Permit - Director
Review
Construction <$7,400 $5153
Construction $7,401 - $66,611 $7683
Construction $66,612 - $125,819 $9383
Construction $125,820 - $185,020 $1,3843
Sequential DRP-DRs referred to PC $153 Surcharge
Design Review Permit - Planning
Commission Review
Construction $185,021 - $259,036 $1,8463
Construction $259,037 or more $2,1933
New House $5,3883
Variance
One Variance with Design Review $1,075
One Variance without Design Review $1,4533
Each Additional Variance $527
Conditional Use Permit
Conditional Use Permit $2,7193
Conditional Use Permit (Minor
Modification) $8843
Other Review
Additional Bedroom Permit $2804
Administrative Extension $4104
Appeal $8564
Accessory Dwelling Unit Permit (with
or without Exception) $1,0154
Modification to Approved ADU Permit $3934
Fence, Retaining Wall or Site Feature
Design Review Permit $6604
SB 684 Subdivision $20,0001
SB 9 Housing Development $2,1814
Other Review
Agenda Report Page 35
Attachment
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
III. PLANNING AND BUILDING
Building Division Fees
Modification to Approved SB 9 Permit $3934
Sign Design Review Permit $1,0964
Short-Term Rental Permit $3994
AB 939 Information Report $1534
Zoning Amendment $3,2133
Subdivision/Map Act
Parcel Merger deposit/cost to process $1,8673 Deposit for cost to process1 Parcel Map $4,5263 Deposit for cost to process1
Tentative Map $8,0583 Deposit for cost to process1
SB 9 Urban Lot Split $2,1054
California Environmental Quality Act
(CEQA)
Initial Study/Negative Declaration $53,8653 Deposit for cost to process1 Environmental Impact Report (EIR) $107,7303 Deposit for cost to process1 Filming Permit
Still Photography $1,7784
Commercial Video $2,1654
Motion Picture Video $2,6924
Wireless Communication Facility
(WCF) Permit
WCF Permit for small cell facilities
located in the City right-of-way $4,486 per site3
Eligible Facility Request Permit $2,6913
WCF Permit for all facilities other than
small cell in City right-of-way $12,3783 Deposit for cost to process1 WCF Independent Technical Review
for all facilities other than small cell in
City right-of-way
$12,3783 Deposit for cost to process1
Other Fees
Reasonable Accommodation No Fee Fee(s) required for other related permit(s)
Development Agreement $6,7273
+ 30% Admin. Fee
Deposit for cost to process1
+
admin. fee
Applications and Reviews not listed
above $3,6623 Deposit for cost to process1
CA Dept. of Fish & Wildlife Fee Fee per CA DFW2
+
$505 City processing fee³
Agenda Report Page 36
Attachment
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule

DESCRIPTION FEE COMMENTS
III. PLANNING AND BUILDING
Building Division Fees
2 DFW is the California Department of Fish and Wildlife, which requires a separate, additional fee. 3 Includes $58 Records Management Fee
4 Includes $29 Records Management Fee. No planning fees for applications filed per Section 17.38.075, Preapproved Plans. 1 An initial deposit is required at application submittal. If the deposit declines to less than $1,000, an additional deposit is required. Applicant may apply for return of unused funds at completion of project.

Attachment A Agenda Report Page 37
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
IV. RECREATION
Current Proposed Last
DESCRIPTION Fee FY 2024-25 Adjustment
Tennis Fees
Adult Tennis Decal $50.00 $50.00 6/3/2019
Youth Tennis Decal $28.00 $28.00 6/3/2019
Weekday Tennis Court $6.25/hr $6.25/hr 7/1/2018
Weekend Tennis Court $8.25/hr $8.25/hr 7/1/2018
Weekend Tennis Court - Youth $6.00/hr $6.00/hr 7/1/2017 Weekday Tennis Court - Youth $0.00/hr $0.00/hr 7/1/1994 Community Non-Profit $7.00/hr $7.00/hr N/A
Annual Tennis Team Fee $195.00 $195.00 6/3/2019
City Recreation Facilities - Fields and Picnic Area
$180.00 $180.00 7/1/2018
Piedmont Non-Profit $150.00 $150.00 7/1/2018
Piedmont Resident - Business Use $350.00 $350.00 7/1/2018 Piedmont Community Hall
Weekday (Monday-Thursday and Friday before 3:00 pm) 2-hour minimum; No Weddings Base Rental Rate $220.00/hr $226.00/hr 7/1/2024
Resident Discount Rate $170.00/hr $176.00/hr 7/1/2024
Non-Profit Rate $105.00/hr $111.00/hr 7/1/2024
Friday Evenings and Sundays (8 hours)
Base Rental Rate $4,725.00 $4,867.00 7/1/2024
Additional time $220.00/hr $226.00/hr 7/1/2024
Resident Discount Rate $3,045.00 $3,260.00 7/1/2024
Additional time $170.00/hr $176.00/hr 7/1/2024
Additional time requested within 7
days of rental $265.00/hr $271.00/hr 7/1/2024
Saturdays (8 hours)
Base Rental Rate $5,250.00 $5,408.00 7/1/2024
Additional time $265.00/hr $271.00/hr 7/1/2024
Resident Discount Rate $3,412.00 $3,623.00 7/1/2024
Additional time $215.00/hr $221.00/hr 7/1/2024
Additional time requested within 7
days of rental $315.00/hr $321.00/hr 7/1/2024
Community Hall Rental Deposit $1,000.00 $1,000.00 7/1/2016 Tea House
With Community Hall Rental (Friday-Sunday) $475.00 $490.00 7/1/2024 Without Community Hall Rental (Monday-Thursday $675.00 $690.00 7/1/2024 Piedmont Resident
Attachment A Agenda Report Page 38
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
IV. RECREATION
Current Proposed Last
DESCRIPTION Fee FY 2024-25 Adjustment
Amphitheater
With Community Hall Rental (Friday-Sunday) $375.00 $387.00 7/1/2024 $475.00 $490.00 7/1/2024
Excedra Plaza (4 hours and up to 200 chairs)
With Hall Rental (Community or Veterans) $525.00 $525.00 7/1/2022 Without Hall Rental $625.00 $625.00 7/1/2022
Without Community Hall Rental (MondayThursday) Wedding Ceremonies Only Agenda Report Page 39
A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
IV. RECREATION
Current Proposed Last
DESCRIPTION Fee FY 2024-25 Adjustment
Mobile Bar Trailer (Trailer Rental Only)
With Community Hall Rental (Friday-Sunday) 8 hours $1,200.00 7/1/2024 With Community Hall Rental (Monday-Thursday) 3-hour minimum $200/hr 7/1/2024 Off-Site Rental (Inside Piedmont City limits) 4-hour minimum $250/hr 7/1/2024 Mobile Bar Deposit $750 7/1/2024
Piedmont Veterans Memorial Hall
Weekday (Monday-Thursday and Friday before 3:00 pm) 2-hour minimum Base Rental Rate $185.00/hr $185.00/hr 7/1/2022
Resident Discount Rate $135.00/hr $135.00/hr 7/1/2022
Non-Profit Rate $95.00/hr $95.00/hr 7/1/2022
Friday 3:00 pm-Sunday (8 hours)
Base Rental Rate $2,625.00 $2,625.00 7/1/2022
Additional time $210.00/hr $210.00/hr 7/1/2022
Resident Discount Rate $1,705.00 $1,705.00 7/1/2022
Additional time $160.00/hr $160.00/hr 7/1/2022
$265.00/hr $265.00/hr 7/1/2022
Non-Profit Rate (4 hours) $540.00 7/1/2024
Additional time $120.00/hr 7/1/2024
Veterans Memorial Hall Rental Deposit $750.00 $750.00 7/1/2016 801 Magnolia Main Hall
Piedmont Community Based Organization $30.00/hr $30.00/hr 7/1/2022 Community Based Organization $50.00/hr $50.00/hr 7/1/2022 Private Rental Resident $80.00/hr $80.00/hr 7/1/2022
Private Rental Non-Resident $125.00/hr $125.00/hr 7/1/2022 801 Magnolia Rental Deposit $500.00 $500.00 7/1/2022
Schoolmates Programs
$11.20/hr $11.20/hr 7/1/2022
Schoolmates Flexible Hourly Option $13.40/hr $13.40/hr 7/1/2022 Minimates Programs $11.20/hr $11.20/hr 7/1/2022
Preschool Programs
$18.25/hr $18.75/hr 7/1/2024
Additional Non Resident Fee $30.00/mo $30.00/mo 7/1/2022 Preschool Programs
Additional time requested within 7 days of rental
Schoolmates Programs
Agenda Report Page 40 Attachment A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
Current Proposed
DESCRIPTION Fee 2024/25 Comments
Animal Control Services
Animal Releases $46 $46
Dog License Fees
Spayed/Neutered:
1 year $17 $17
2 year $28 $28
3 year $38 $38
Senior (55 years or older)/Disabled $5 $5
Non-spayed/Non-neutered:
1 year $33 $33
2 year $55 $55
3 year $77 $77
Senior (55 years or older)/Disabled $10 $10
Lost Dog License Replacement $10 $10
Lost Dog License Replacement $3 $3
(55 years or older)/Disabled
Late Fees as stated in section 4.26 of Piedmont City Ordinance Off Leash Area License Fees
Spayed/Neutered:
1 year $18 $18
2 year $28 $28
3 year $38 $38
Non-spayed/Non-neutered:
1 year $43 $43
2 year $65 $65
3 year $87 $87
Lost License Replacement $10 $10
Out of Jurisdiction – Off Leash Area:

Annually Non-spayed $70 $70
Annually Spayed $38 $38
Off Leash Fines 1ST P/A 2ND P/A 2ND P/A
Violation of off Leash Provisions Resolution 67-8 $100 $100 $100 Civil Court Subpoenas
Police Employees $275 $275 Deposit and actual cost after appearance
Attachment Agenda Report Page 41
A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
Current Proposed
DESCRIPTION Fee 2024/25 Comments
False Alarm Responses
1-3 in any 12-month period $0 $0
4 in any 12-month period $50 $50
5 in any 12-month period $150 $150
6 in any 12-month period $300 $300
7 or more in any 12-month period ($100 increase for each subsequent false alarm) LiveScan Fingerprinting
Resident $31 $31
Non-Resident $56 $56
Additional Non-Piedmont PD Fee:

Department of Justice $33 $33
Federal Bureau of Investigation $20 $20
Firearms $29 $29
Child Abuse $15 $15
Non-listed Agency fees upon request
Police Clearances
Alien/U.S. Immigration $26 $30
No increase has been made for
several years. Increase calculated at
.5 hourly rate.

Naturalization Service $26 $30
No increase has been made for
several years. Increase calculated at
.5 hourly rate.

U.S. Citizenship/Travel Abroad $26 $30
No increase has been made for
several years. Increase calculated at
.5 hourly rate.

Alcoholic Beverage Control $26 $30
No increase has been made for
several years. Increase calculated at
.5 hourly rate.

Police Reports
Traffic Accident Reports .10 /page .10/page
Public Records .10/page .10/page
Subpoena Duces Tecum New fee in 2024-2 $15 Legislatively Set Police Photographs
Photographs $5.00 each $5.00 each
Digital Images $5.00 each $5.00 each
Video/Audio Duplication $15 $15
Safekeeping
Weapons $50 $50
Attachment A Agenda Report Page 42
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
Current Proposed
DESCRIPTION Fee 2024/25 Comments
(Family Codes 6218 & 6304 and Penal Code 12021.3)
Vehicle Release
Vehicle $110 $125
Increase due to fee survey by staff.

Vehicle release fees range from $125 ‐
$250
Concealed Weapon Permit
Standard/2Yr $400
New Fees based on DOJ costs and
staff time for backgrounds
Judicial/3Yr $422
New Fees based on DOJ costs and
staff time for backgrounds
Non-Retiree Reserve/4Yr $446
New Fees based on DOJ costs and
staff time for backgrounds
Attachment Agenda Report Page 43
A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
Current Proposed
DESCRIPTION Fee 2024/25 Comments
Repossession Release
Vehicle $15 $15
(Government Code 41612)
Party Responses
Multiple Responses Hourly Rate -
$1,000 limit
Hourly Rate -
$1,000 limit
Driving Under the Influence Emergency Response Cost Recovery Per Accident caused by DUI Officer(s) Rate
+ Expenses -
Officer(s) Rate
+ Expenses -
Charged to arrestee $12,000 limit $12,000 limit
Adminstrative Citation
Piedmont City Ordinance $100 $100
Solicitors/Sidewalk Vendor Permit (requires City
Business License) $56 $56 (Direct cost for LiveScan)
Attachment A Agenda Report Page 44
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
Section Description 1st P/A 1st P/A 2nd P/A

11.38 Obedience to Signs $61 $61 $76

11.47a Within divisional island unless marked $61 $61 $76

11.47b Within 15’ of property line of another street $61 $61 $76

11.47d Public steps, public walks when indicated by signs/red paint $71 $71 $86

11.47e As indicated by sign or red curb $71 $71 $86

11.48 Parking within allotted space $61 $61 $76

11.5 Park wrong way on one-way street $61 $61 $76

11.51 Parked inside limit markers for funeral service $61 $61 $76

11.52 Park for consecutive $76 $76 $92

11.53 Parked on street to be $61 $61 $76

11.55 Parked on grades exceeding 3% $61 $61 $76

11.56 Parallel parking $61 $61 $76

11.57 Angle parking $61 $61 $76

11.58 Parking for more than 10 minutes 6:00 p.m. to 5:00 a.m. $61 $61 $76

11.59 Temporary, emergency “No Parking” signs $71 $71 $86

11.6 Repairing, greasing vehicle in street $61 $61 $76

11.61 Parking on private property $128 $128 $148

11.62 Parking more than legal time $71 $71 $86

11.64 Green curb marking $71 $71 $86

11.65 Yellow curb marking $71 $71 $86

11.66 White curb marking $71 $71 $86
Special passenger loading Zone $71 $71 $86

11.68 Loading zone generally $71 $71 $86

11.75.1 Removal of key from unattended vehicle $61 $61 $76

11.82 Parking District Violation $61 $61 $76

21.5 Vehicles over 80” wide between 10:00 p.m. and 6:00 a.m. $61 $61 $76

21.7 Parked commercial vehicle in residential $61 $61 $76

11.84 Blocking Driveway in Civic Center Area $128 $128 $148

PARKING PENALTY SCHEDULE
Agenda Report Page 45
Attachment
A
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
V. POLICE
California Vehicle Code
Section Description 1st P/A 1st P/A 2nd P/A
21113(a) Parking on School Grounds $61 $61 $76
22500 (A-H,J,K) Illegal Parking $61 $61 $76
22500 (I) Bus Zone $306 $306 $335
22500 (L) Disabled Ramps $306 $306 $335
22502 Improper Curb Parking $61 $61 $76
22507.8 (A-C) Disabled Zone $306 $306 $335
Second offense of 22507.8 $556 $556 $582
Third offense of 22507.8 $791 $791 $816
22511.56 (b) Misuse of Disabled Permit $306 $306 $335
22514 Blocking Fire Hydrant $61 $61 $76
22515 Unattended Vehicles $61 $61 $76
22516 Locked Vehicle $61 $61 $76
22522 Access Ramps $306 $306 $335
Fine and Penalty Assessment following issuance of written notice to pay fine.

Fine and Second Penalty Assessment 30 days after notice and forward to Department of Motor Vehicles for collection on registration payment.

Attachment Agenda Report Page 46
A
Administration Citation Bail
Municipal Code Violation Description Amount Active Date Notice

3.4.1 Running at Large Prohibited in Parks $100 01/01/2012 +6 days

3.4.4 (a) Off Leash Area Hours $100 01/01/2012 +6 days

3.4.4 (b) No Smoking in Off Leash Areas $100 01/01/2012 +6 days

3.4.4 (c) Vaccine, Off Leash Permit, License Reqd $100 01/01/2012 +6 days

3.4.4 (d) < 4 Months/Females in Heat Prohibited $100 01/01/2012 +6 days

3.4.4 (e) Owner Carry Leash/Voice Control $100 01/01/2012 +6 days

3.4.4 (f) Max 3 Dogs/Dogs in Sight $100 01/01/2012 +6 days

3.4.4 (g) Aggressive/Unruly/Rough Play Prohibited $100 01/01/2012 +6 days

3.4.4 (h) Dangerous/Vicious Dogs Prohibited $100 01/01/2012 +6 days

3.4.4 (j) Dog Defecation Must be Removed $100 01/01/2012 +6 days

3.4.4 (k) Commerical Uses Prohibited $100 01/01/2012 +6 days

3.4.5 Off Leash Permit Required $100 01/01/2012 +6 days

4.10 Removal of Registration Tags Prohibited $100 01/01/2012 +6 days

4.12 Counterfeit Tags Prohibited $100 01/01/2012 +6 days

4.13 Running At Large Prohibited $100 01/01/2012 +6 days

4.16 Duty to Report Bite $100 01/01/2012 +6 days

4.17 Interference with Police K9 Prohibited $100 01/01/2012 +6 days

4.2 Dog License Required $100 01/01/2012 +6 days

4.34 (a) Removal of Dog Defecation Required $100 01/01/2012 +6 days

4.34 (b) Dog Defecation Container Required $100 01/01/2012 +6 days

4.9 Inspection of Tag Required $100 01/01/2012 +6 days
Attachment A Agenda Report Page 47
Parking Bail
Municipal Code Violation Description Amount Active Date Notice

11.38 OBEDIENCE TO SIGNS OR CURB MARKINGS $61 01/20/2023 +7 days

11.47A DIVIDING ISLAND PARKING PROHIBITED $61 01/20/2023 +7 days

11.47B W/I 15' OF INTERSECTION PARKG PROHIB. $61 01/20/2023 +7 days

11.47D PUBLIC STEPS/WALKS INDICATED BY SIGN $71 01/20/2023 +7 days

11.47E RED ZONE OR POSTED NO PARKING $71 01/20/2023 +7 days

11.48 OUT OF MARKED PARKING SPACE $61 01/20/2023 +7 days

11.5 ONE WAY STREET FACING WRONG WAY $61 01/20/2023 +7 days

11.51 FUNERAL SERVICE PARKG > 3 MIN $61 01/20/2023 +7 days

11.52 72 HOUR CONTINUOUS PARKING $76 01/20/2023 +7 days

11.53 STREET CLEAN/REPAIR POSTED NO PARK $61 01/20/2023 +7 days

11.55 CURBING OR BLOCKING WHEEL REQUIRED $61 01/20/2023 +7 days

11.56 PARALLEL PARKG REQ. W SOME EXCEPTION $61 01/20/2023 +7 days

11.57 ANGLE PARKG REQ. IF MARKED BY LINES $61 01/20/2023 +7 days

11.58 10 MIN MAX PARKG 6PM‐6AM WITH 2 OCC $61 01/20/2023 +7 days

11.59 TEMPORARY NO PARKING SIGNS VIOLATED $71 01/20/2023 +7 days

11.6 REPAIRING/GREASING VEHICLE IN STREET $61 01/20/2023 +7 days

11.61 PRIVATE PROPERTY PRK W/O PERMISSION $128 01/20/2023 +7 days

11.62 OVERTIME PARKING $71 01/20/2023 +7 days

11.64 GREEN ZONE $71 01/20/2023 +7 days

11.65 YELLOW ZONE PEOPLE 3 MIN MAT. 20 MIN $71 01/20/2023 +7 days

11.66 WHITE ZONE PARKG EXCESS ‐ 3 MIN/SIGN $71 01/20/2023 +7 days

11.67 SPECIAL PASSENGER ZONE POSTED TEMP $71 01/20/2023 +7 days

11.68 LOADING ZONE POSTED/MARKED ON CURB $71 01/20/2023 +7 days

11.75.1 REMOVAL OF KEY FROM UNATTENDED VEH $61 01/20/2023 +7 days

11.82 PARKING DISTRICT VIOLATION $61 01/20/2023 +7 days

11.84 CIVIC CENTER DRIVEWAY BLOCKED $128 01/20/2023 +7 days

21.5 OVER 80" WIDE BETWEEN 10PM‐6AM $61 01/20/2023 +7 days

21.7 COMM VEHICLE RES DISTR OVER 5 HRS $61 01/20/2023 +7 days 21113(A) SCHOOL GROUNDS PROHIBITED PARKING $61 01/20/2023 +7 days 22500(A) INTERSECTION PARKING PROHIBITED $61 01/20/2023 +7 days 22500(B) CROSSWALK PARKING PROHIBITED $61 01/20/2023 +7 days 22500(C) SAFETY ZONE PARKING PROHIBITED $61 01/20/2023 +7 days 22500(D) FIRE DEPT DRVWAY PARKING PROH 15 FT $61 01/20/2023 +7 days 22500(E) DRIVEWAY PARKING IN FRONT OF PROH $61 01/20/2023 +7 days 22500(F) SIDEWALK PARKING OVER OR ON $61 01/20/2023 +7 days 22500(G) OBSTRUCT TRAFFIC PARKING BY CONSTR $61 01/20/2023 +7 days 22500(H) DOUBLE PARKING PROHIBITED $61 01/20/2023 +7 days 22500(I) BUS ZONE RED CURB/SIGN FOR TRANSIT $306 01/20/2023 +7 days 22500(J) TUBE/TUNNEL PARKING PROH WITHIN $61 01/20/2023 +7 days 22500(K) BRIDGE PARKING ON PROHIBITED $61 01/20/2023 +7 days 22500(L) DISABLED RAMP/CURB CUT PARKG PROH $306 01/20/2023 +7 days 22502A 18 " FROM CURB/FACING WRONG WAY $61 01/20/2023 +7 days 22507.8A DISABLED PARKING ONLY $306 01/20/2023 +7 days
22507.8B DISABLED STALL BLOCKED $306 01/20/2023 +7 days 22507.8C1 DISABLED BOUNDARY LINE $306 01/20/2023 +7 days Attachment A Agenda Report Page 48
Municipal Code Violation Description Amount Active Date Notice 22507.8C2 DISABLED CROSSHATCHED LINES $306 01/20/2023 +7 days 22511.56(B) DISABLED PLACARD OR PLATE MISUSED $306 01/20/2023 +7 days 22514 FIRE HYDRANT UNOCCUPIED W/I 15 FEET $61 01/20/2023 +7 days 22515 UNATTENDED VEH RUNNING/NO BRAKE SET $61 01/20/2023 +7 days 22516 LOCKED VEH OCCUPANT CANNOT ESCAPE $61 01/20/2023 +7 days 22522 ACCESS RAMP PARKING PROH W/IN 3 FT $306 01/20/2023 +7 days 5200 PLATE MISSING $50 01/20/2023 +7 days
5201 OBSCURING READABILITY OF LICENSE PLATE $50 01/20/2023 +7 days 5204 TABS NOT CURRENT/ATTACHED TO PLATE $50 01/20/2023 +7 days Attachment A Agenda Report Page 49
City of Piedmont
2024‐25 Proposed Budget
Fee Schedule
DESCRIPTION Current Proposed
Fee 2024/2025 Comments
Base Rate $3,331.40 $3,664.87 Fees effective as of
Mileage $75.17 $82.69 07/01/2023, set by Alameda County Board of Supervisors
Oxygen $248.88 $273.79
Treatment/Non-Transport $668.13 $735.01
VI. FIRE
Ambulance Fees

END OF FEE SCHEDULE
Attachment A Agenda Report Page 50
SCHEDULE 1
2024-25 Appropriation Limit 32,425,416
schedule 2
Total Appropriation 2024-25
Operation
ADMINISTRATION & COMMUNICATIONS 5,337,853
PUBLIC WORKS 4,963,947
PLANNING & BUILDING 2,933,105
RECREATION 4,136,680
POLICE 8,821,707
FIRE 8,726,955
NON-DEPARTMENTAL 5,917,169 40,837,416
Other & Capital Projects
Athletic Facility Preservation 42,000
COPS & Juvenile Officer Grant Fund 175,000
Community Development Projects 11,000
Equipment Replacement 1,146,175
CIP and Facility Maintenance Fund 8,639,000
Gas Tax 300,000
Measure D 36,500
Sewer Projects 3,546,219
Aquatics Project and Bond 14,548,195
Streets Projects 2,155,000 30,599,089 71,436,505
Less:

Non-Proceeds of Taxes 18,241,058
Appropriated Reserves 21,352,253 39,593,311
2024-25 Appropriations Subject to Limit 31,843,194
schedule 3
2024-25 Amount below Appropriation Ceiling 582,222

CITY OF PIEDMONT
Calculation of Appropriation Subject to Limit
Proposed Budget
Fiscal Year Ended June 30, 2025
Attachment B Agenda Report Page 51
SCHEDULE 2
2024-25
2024-25
Per Capita - State 3.62+100 = 1.0362
100
Population - County -0.54 + 100 = 0.9946
100
Calculation of factor for 2024-25 1.03620 x 0.9946 1.0306 2023-24 Appropriation Limit
2023-24 Limit 31,474,529 $ 28,852,529
Muni Tax Voter Approved 2,622,000
31,474,529
2024-25 Appropriation Limit
2024-25 Limit 28,852,529 x 1.0306 = $ 29,735,416
Muni Tax Voter Proposed 2,690,000
Total 2023-24 Appropriation Limit 32,425,416
Cumulative Growth Rate For
Information Provided by State Department of Finance

CITY OF PIEDMONT
Computation of Appropriation Limitation
Attachment B Agenda Report Page 52
SCHEDULE 3

CITY OF PIEDMONT
Summary of Estimated Revenue by Category
Appropriation Limitation
Fiscal Year Ended June 30, 2025
Proceeds Non-Proceeds From Taxes
From Users Federal
Taxes Fee & State Other
TAXES
Property Taxes 18,994,000
Sales & Use Taxes 225,000
Franchises:

Pacific Gas & Electric 160,000
Waste Management 295,000
Cable TV 163,000
Property Transfer Tax 3,800,000
Muni Tax 2,690,000
Ad Valorem Tax for Pool 1,489,494
Business License & Rental Tax 760,000
Utility Users Tax:

Gas & Electric 1,300,000
Telephone 160,000
Water 45,000
Sub-Total 29,463,494 618,000 0 0

LICENSES & PERMITS
Dog License 22,000
Building and Other Permits 823,500
Sub-Total 0 845,500 0 0

FINES & FORFEITURES
Vehicle Code Fines 26,000
Sub-Total 0 0 0 26,000

REVENUE FROM USE OF

MONEY OR PROPERTY
General Fund
Interest Earnings 350,000
Community Hall Rental 480,000
Veterans Hall Rental 72,732
Other Rentals 133,521
Equipment Replacement -Int. Earnings 85,000
Gas Tax & SB1 RMRP Fund 8,000
Facilities Maintenance Fund 315,000
Aquatics Project Fund 165,000
Schoolmates-Interest Earnings 40,000
Sewer Fund - Interest Earnings 100,000
Sub-Total 350,000 1,399,253
Attachment B Agenda Report Page 53
SCHEDULE 3 (Continued)
Proceeds Non-Proceeds From Taxes
From Users Federal
Taxes Fee & State Other

REVENUE FROM OTHER AGENCIES
State of California
Motor Vehicle License Fee 1,747,200
1/2 Cent Sales Tax (Public Safety) 133,000
Gasoline Taxes and SB1 RMRP 599,500
Homeowners Property Tax Relief 76,000
P.O.S.T. 10,000
State Grants: COPS 110,000
Miscellaneous Federal, State and County Grants 2,808,305 Alameda County
County Paramedic Tax 69,500
Abandoned Vehicle Abatement 4,000
ACTC Sales Tax (Measure BB) 1,150,000
Measure D 36,000
Measure F 41,000
Sub-Total 2,029,700 36,000 3,527,805 1,191,000

CHARGES FOR CURRENT SERVICES
Variance/Design Review 185,000
Plan Check Fees 345,000
General Plan Maintenance Fee 490,000
Record Management Fee 31,000
Sewer Service Charges 3,170,000
Ambulance Service Charges 300,000
Recreation (Incl. Athlethi, Schoolmate, Aquatics) 5,335,500 Other: Police Service,Variance Appeal 61,000
Sub-Total 0 9,917,500 0 0

OTHER REVENUE
Sale of Property 0
Other Revenue 91,000
Other - Private Donations 589,000
General Liability & Workers Comp. Contribution 0
Sub-Total 680,000
Proceeds From Taxes 31,843,194 12,816,253 3,527,805 1,897,000 Non-Proceeds From Taxes 18,241,058
TOTAL REVENUE 50,084,252
Attachment B Agenda Report Page 54
April 30, 2024
Dear Fiscal Officer:

Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.

Each local jurisdiction must use their percentage change in population factor for January 1, 2024, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2024-25. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2024-25 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2024. Please note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Richard Gillihan

RICHARD GILLIHAN
Chief Operating Officer
Attachment
Agenda Report Page 55
Attachment C
May 2024
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2024-25 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2024-25 appropriation limit.
2024-25:

Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1.0362 x 1.0017 = 1.0379

Attachment C Agenda Report Page 56

Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Alameda
Alameda 1.21 76,309 77,234 78,071
Albany -0.14 20,354 20,325 20,325
Berkeley 0.12 125,181 125,327 125,327
Dublin -0.03 71,600 71,575 72,917
Emeryville 4.95 12,686 13,314 13,314
Fremont -0.63 230,713 229,250 229,250
Hayward -0.58 160,699 159,770 159,770
Livermore -0.48 85,235 84,828 84,828
Newark -2.36 47,762 46,635 46,635
Oakland -0.52 427,085 424,873 425,093
Piedmont -0.88 10,878 10,782 10,782
Pleasanton -1.17 76,861 75,960 75,960
San Leandro -1.01 87,984 87,098 87,098
Union City -1.26 67,279 66,432 66,432
Unincorporated -1.18 147,743 146,006 146,067
County Total -0.54 1,648,369 1,639,409 1,641,869
Attachment C Agenda Report Page 57

Piedmont City CouncilJune 17, 2024

Piedmont City Council
June 17, 2024