PINOLE CITY COUNCIL
SPECIAL MEETING AGENDA
CITY COUNCIL
Devin T. Murphy, Mayor
Maureen Toms, Mayor Pro Tem
Cameron Sasai, Council Member
Anthony Tave, Council Member
Norma Martínez-Rubin, Council Member
TUESDAY
April 25, 2023
6:00 P.M
Please note: HYBRID MEETING FORMAT
Attend in Person: PINOLE CITY COUNCIL CHAMBERS - 2131 PEAR STREET OR
Attend VIA ZOOM TELECONFERENCE – Details provided below How to Submit Public Comments:
In Person: Attend meeting at the Pinole City Council Chambers, fill out a yellow public comment card and submit it to the City Clerk.
Via Zoom:
Members of the public may submit a live remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here. Zoom also allows you to join the meeting by phone.
From a PC, Mac, iPad, iPhone or Android:
https://us02web.zoom.us/j/89335000272
Webinar ID: 893 3500 0272
By phone: +1 (669) 900-6833 or +1 (253) 215-8782 or +1 (346) 248-7799 • Speakers will be asked to provide their name and city of residence, although providing this is not required for participation.
• Each speaker will be afforded up to 3 minutes to speak (subject to modification by the Mayor)
• Speakers will be muted until their opportunity to provide public comment.
When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute. To comment with your video enabled, please let the City Clerk know you would like to turn your camera on once you are called to speak.
Written Comments: All comments received before 3:00 pm the day of the meeting will be posted on the City’s website on the agenda page (Agenda Page Link) and provided to the City Council prior to the meeting. Written comments will not be read aloud during the meeting.
CORONAVIRUS ADVISORY
INFORMATION:
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City Council
Agenda – April 25, 2023
Email comments to [email protected] Please indicate which item on the agenda you are commenting on in the subject line of your email.
Please note: Updated COVID-19 safety protocols will be posted outside the City Council Chambers. Please review this information before entering the Council Chambers.
OTHER WAYS TO WATCH THE MEETING
LIVE ON CHANNEL 26. They are retelecast the following Thursday at 6:00 p.m. The Community TV Channel 26 schedule is published on the city’s website at www.ci.pinole.ca.us.
VIDEO-STREAMED LIVE ON THE CITY’S WEBSITE, www.ci.pinole.ca.us. and remain archived on the site for five (5) years.
If none of these options are available to you, or you need assistance with public comment, please contact the City Clerk, Heather Bell at (510) 724-8928 or [email protected] .
Americans With Disabilities Act: In compliance with the Americans With Disabilities Act of 1990, if you need special assistance to participate in a City Meeting or you need a copy of the agenda, or the agenda packet in an appropriate alternative format, please contact the City Clerk’s Office at (510) 724-8928. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
Note: Staff reports are available for inspection on the City Website at www.ci.pinole.ca.us. You may also contact the City Clerk via e-mail at [email protected] .
Ralph M. Brown Act. Gov. Code § 54950. In enacting this chapter, the Legislature finds and declares that the public commissions, boards and councils and the other public agencies in this State exist to aid in the conduct of the people's business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly. The people of this State do not yield their sovereignty to the agencies, which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created.
Pinole City Council
Agenda –April 25, 2023
1. CALL TO ORDER & PLEDGE OF ALLEGIANCE IN HONOR OF THE US MILITARY TROOPS
2. LAND ACKNOWLEDGMENT
Before we begin, we would like to acknowledge the Ohlone people, who are the traditional custodians of this land. We pay our respects to the Ohlone elders, past, present, and future, who call this place, Ohlone Land, the land that Pinole sits upon, their home. We are proud to continue their tradition of coming together and growing as a community. We thank the Ohlone community for their stewardship and support, and we look forward to strengthening our ties as we continue our relationship of mutual respect and understanding.
3. ROLL CALL, CITY CLERK’S REPORT & STATEMENT OF CONFLICT An official who has a conflict must, prior to consideration of the decision: (1) publicly identify in detail the financial interest that causes the conflict; (2) recuse himself /herself from discussing and voting on the matter; and (3) leave the room until after the decision has been made, Cal. Gov't Code § 87105.
4. CITIZENS TO BE HEARD (Public Comments)
Citizens may speak under any item not listed on the Agenda. The time limit is 3 minutes and is subject to modification by the Mayor. Individuals may not share or offer time to another speaker. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future Council meeting. PLEASE SEE THE
COVERSHEET OF THE AGENDA FOR INSTRUCTIONS ON HOW TO SUBMIT PUBLIC COMMENTS
5. NEW BUSINESS
A. Fiscal Year (FY) 2023/24 General Fund Baseline Budget And Preliminary Council Requests For FY 2023/24 Budget Changes [Action: Discuss and provide direction (Guillory)]
B. Overview Of Draft Fiscal Year 2023-24 Through 2027-28 Capital Improvement Plan [Action: Discuss and provide direction (Kaur)]
6. ADJOURNMENT to the Special City Council Meeting of April 29, 2023 in Remembrance of Amber Swartz.
I hereby certify under the laws of the State of California that the foregoing Agenda was posted on the bulletin board at the main entrance of Pinole City Hall, 2131 Pear Street Pinole, CA, and on the City’s website, not less than 24 hours prior to the meeting date set forth on this agenda.
________________________
Heather Bell, CMC
City Clerk
POSTED: April 20, 2023 at 3:30 p.m.
CITY COUNCIL
REPORT 5A
DATE: APRIL 25, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: FISCAL YEAR (FY) 2023/24 GENERAL FUND BASELINE BUDGET AND PRELIMINARY COUNCIL REQUESTS FOR FY 2023/24
BUDGET CHANGES
RECOMMENDATION
City staff recommends that the City Council:
• Receive a report on the Fiscal Year (FY) 2023/24 General Fund baseline budget and direct staff to make adjustments to assumptions, if any; and • Inform staff of preliminary Council Member requests for potential FY 2023/24 General Fund budget additions or deletions.
BACKGROUND
The City operates on an annual budget cycle. Through the budget, the City Council approves revenue estimates and authorizes City staff to expend the City’s financial resources. City staff is responsible for preparing a proposed budget for City Council’s consideration, modification, and adoption.
The first step in the annual budget development process is for City staff to create a “baseline” budget for the upcoming fiscal year. The baseline budget for the upcoming fiscal year (FY 2023/24, in this case) contains all of the ongoing revenue and expenditure items from the current budget (FY 2022/23) adjusted for known or anticipated changes in economic conditions, costs of goods and services, contractual agreements, etc. Staff uses the baseline budget to then develop the proposed budget for the upcoming fiscal year and the status quo long-term financial forecast.
The City’s revenues and expenditures are partitioned into different “funds” to ensure that revenues that are intended for specific purposes are expended accordingly. The City’s main fund, which accounts for all of the City’s general revenues and supports most of the City’s core services, such as police, fire, community services and recreation, and street and facility maintenance, is the General Fund, which includes revenue from Measure S 2006 and Measure S 2014. General Fund resources can be spent on many different City activities. Because the General Fund is the largest and City Council Report
April 25, 2023 2
most flexible pool of City resources, it is the central focus of the City’s budget. The City has many other funds that account for revenues that are restricted for specific services and associated expenditures. These include funds such as the Sewer Fund, City staff has prepared the FY 2023/24 General Fund baseline budget to present to the City Council, both to seek Council’s feedback on the assumptions it contains as well as to inform the Council of the City’s underlying General Fund budget condition entering the upcoming fiscal year.
In short, the revenues of the FY 2023/24 General Fund baseline budget are very similar to the baseline revenues that the City forecasted for FY 2023/24 in the LongTerm Financial Plan (LTFP) for Fiscal Year (FY) 2022/23 - FY 2026/27, which was published in June 2022. The LTFP forecasted General Fund baseline revenues of $25,830,113 for FY 2023/24. The FY 2023/24 General Fund baseline budget forecasts revenues of $25,590,274. However, the expenditures of the FY 2023/24 General Fund baseline budget are higher than the expenditures forecasted in the LTFP. Whereas the LTFP forecasted General Fund baseline expenditures of $25,535,642 for FY 2023/24, the FY 2023/24 General Fund baseline budget forecasts expenditures of $26,054,332. So, whereas the LTFP forecasted a small General Fund surplus for FY 2023/24 ($294,471), the FY 2023/24 General Fund baseline budget forecasts a small General Fund shortfall for FY 2023/24 ($464,058). The factors driving this change are described below. This means that the City does not currently have the financial capacity to add new activities or expenditures to the General Fund budget unless it removes a commensurate amount of activities or expenditures.
It is important to note that the baseline budget is not the same as the proposed budget.
Once the baseline budget is set, it is built upon to produce the proposed budget, which will include non-recurring items, such as special initiatives and projects, and capital improvement projects. The City can adopt a balanced budget even if the baseline budget has a small shortfall. That would require that the City Council remove some activities and expenses from the baseline budget.
City staff presented the FY 2023/24 General Fund baseline budget to the Finance Subcommittee on April 12, 2023. The Subcommittee did not direct any changes to the assumptions embedded in the baseline budget. Staff has since made refinements to the baseline budget, particularly fine tuning some cost allocation between the General Fund and other funds and ensuring that the baseline does not include any one-time expenses.
The City instituted a new approach to the budget process beginning last year with the development of the FY 2022/23 budget. City staff asked the City Council to surface its preliminary ideas for additions or deletions to the budget early in the budget development process, so that City staff had adequate time to estimate the cost of any such additions or deletions as well as confirm the operational feasibility of such additions or deletions. City staff asked the City Council to surface those ideas at the special City Council meeting at which the General Fund baseline budget was City Council Report
April 25, 2023 3
presented. City staff is again requesting that the City Council surface its preliminary ideas for additions or deletions to the budget at the special Council meeting at which the General Fund baseline budget is presented, which for FY 2023/24, will be on April 25, 2023. It is important to note, as stated above, that the FY 2023/24 baseline budget has a small shortfall, which means that the City does not currently have the financial capacity to add new activities or expenditures to the General Fund budget unless it removes a commensurate amount of activities or expenditures.
REVIEW AND ANALYSIS
Budget Development Process
As noted above, the City goes through an annual process of developing a budget for the upcoming fiscal year. The City’s budget development process is considered an “incremental” budget process, meaning that the budget for the upcoming year is developed based on the current year’s budget and includes incremental changes. City staff takes the following steps to create the Preliminary Proposed budget:
• Finance Department will use the current FY 2022/23 budget, which incorporates any mid-year changes approved by the City Council, as the starting point;
• Finance Department creates a “baseline budget” for FY 2023/24 by taking the ongoing revenues and expenditures included in the current FY 2022/23 budget and factoring in known or assumed changes in economic conditions, costs of goods and services, contractual agreements, etc.;
• Departments submit requests for changes from the baseline budget to address proposed special projects or increased service levels; and • Finance Department and City Manager consider department requests for changes to the baseline budget and prepare a Preliminary Proposed budget for the City Council’s consideration.
Fiscal Year (FY) 2023/24 General Fund Baseline Budget
The FY 2023/24 General Fund baseline budget includes recurring General Fund revenues, such as the tax revenues, public safety charges, other revenues, and transfers in. Revenues reflect growth rate assumptions. Recurring General Fund expenditures have also been adjusted. This includes increases in the salaries/wages to account for salary increases, increases in benefits consistent with updated rates, and inflationary increases in operations and maintenance. The baseline budget assumes no change in the staff levels or programs. The baseline budget illustrates whether, if the City maintains its current revenue mechanisms and staffing and service levels, the budget would be balanced or not. It is a public finance best practice, and a goal of the City’s Financial Policy on a Structurally Balanced Budget, to create a proposed General Fund operating budget that is structurally balanced, meaning that ongoing revenues equal or exceed ongoing expenditures.
City Council Report
April 25, 2023 4
A notable change to the baseline budget is that it does not include the Fire Department. Effective March 1, 2023, the City entered into an agreement with the Contra Costa County Fire Protection District (CCCFPD) to operate the two Pinole fire stations and provide fire protection and emergency medical services to residents. The baseline budget includes funding for the fire services agreement based on the contract amount for FY 2023/24.
Table 1 below illustrates the FY 2022/23 General Fund baseline budget and the FY 2023/24 General Fund baseline budget.
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April 25, 2023 5
Table 1 – Comparison of FY 2022/23 and FY 2023/24 General Fund Baseline Budgets FY2022/23 FY 2023/24 $ Change % Change
Baseline Baseline
Sources
PROPERTY TAX $ 4,776,626 $ 5,678,211 $ 901,585 19%
SALES TAX 4,582,095 4,621,023 38,928 1%
LOCAL SALES TAX - MEASURE S 2006 & 2014 4,902,000 4,972,000 70,000 1% UTILITY USERS TAX 1,934,150 2,085,485 151,335 8%
FRANCHISE TAX 786,790 794,658 7,868 1%
INTERGOVERNMENTAL TAX 2,215,948 2,385,800 169,852 8%
TRANSIENT OCCUPANCY TAX 440,000 453,200 13,200 3%
BUSINESS LICENSE 412,500 433,125 20,625 5%
CHARGES FOR SERVICES 1,405,108 1,432,539 27,431 2%
OTHER REVENUES 549,640 488,753 (60,887) -11%
Total Revenues 22,004,857 23,344,794 1,339,937 6%
TRANSFERS IN 2,016,612 2,245,480 228,868 11%
Total Sources 24,021,469 25,590,274 1,568,805 7%
Uses
By Category
SALARIES & WAGES 11,492,312 9,407,231 (2,085,081) -18%
BENEFITS 7,496,535 6,050,317 (1,446,218) -19%
OPERATIONS AND MAINTENANCE 3,298,050 2,539,667 (758,383) -23% CCCFPD FIRE SERVICES AGREEMENT - 5,674,781 5,674,781 0% CAPITAL OUTLAY 294,993 350,274 55,281 19%
DEBT SERVICE 596,107 611,107 15,000 3%
Total Expenditures By Category 23,177,997 24,633,377 1,455,380 6% TRANSFERS OUT 1,420,955 1,420,955 - 0%
Total Uses By Category 24,598,952 26,054,332 1,455,380 6% By Department
CITY COUNCIL 188,396 175,858 (12,538) -7%
CITY MANAGER 565,943 503,471 (62,472) -11%
CITY CLERK 586,347 565,499 (20,848) -4%
CITY TREASURER 8,662 8,727 65 1%
CITY ATTORNEY 321,057 325,433 4,376 1%
FINANCE 632,747 810,961 178,214 28%
HUMAN RESOURCES 768,472 902,040 133,568 17%
NON-DEPARTMENTAL 2,466,824 2,532,547 65,723 3%
POLICE DEPARTMENT 10,268,311 11,185,847 917,536 9%
FIRE 5,514,428 5,703,689 189,261 3%
PUBLIC WORKS 2,292,429 2,357,900 65,471 3%
COMMUNITY DEVELOPMENT 526,464 516,625 (9,839) -2%
RECREATION 458,872 465,736 6,864 1%
Total Uses By Department 24,598,952 26,054,332 1,455,381 6% Net Surplus/(Deficit) (577,483) (464,058)
City Council Report
April 25, 2023 6
General Fund Revenues
As noted above, the revenues of the FY 2023/24 General Fund baseline budget are very similar to the baseline revenues that the City forecasted for FY 2023/24 in the LTFP for FY 2022/23 - FY 2026/27.
Property Tax
Property tax is an ad valorem tax imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (movable property). The fixed statutory rate is 1% of assessed valuation. Assessed value is based on the 1975 property values with subsequent increases limited to 2% or CPI growth, whichever is less. Property tax is made up of four components—secured (basic and Redevelopment Property Tax Trust Fund (RPTTF); unsecured; supplemental; and property transfer tax). The baseline budget assumes a net 19% increase in property tax due. This is due to a 1% increase in basic property tax revenue and a significant ongoing increase due to a final payment having been made in FY 2022/23 on one significant former Redevelopment Agency debt (the repayment to the Housing Set Aside Fund of the 2009-10 & 2010-11 SERAF loans) and the penultimate payment of another significant former Redevelopment Agency debt (Pinole Vista Redevelopment Project 2015A Tax Allocation Refunding Bond). Property tax revenue is expected to see another significant ongoing increase beginning in FY 2024/25 because the final payment of the former Redevelopment Agency Pinole Vista Redevelopment Project 2015A Tax Allocation Refunding Bond debt will be made in FY 2023/24.
Sales Tax
The overall sales tax rate on purchases made in Pinole is 9.75%. Of that amount, the City receives the statewide standard 1% (referred to as the Bradley Burns sales tax) plus 0.5% due to Measure S 2006 and 0.5% due to Measure S 2014. The FY 2023/24 baseline budget assumes a 1% growth rate in the City’s sales tax revenue, consistent with projections provided by HdL, the City’s sales tax consultant.
Utility Users Tax
Utility Users’ Tax (UUT) is an 8% tax levied on the consumption of telecommunication, gas, and electricity by businesses and residents in Pinole. The FY 2023/24 baseline budget assumes an 8% increase based on trend analysis. The electricity and gas segments in particular continue to increase substantially year over year.
Franchise tax
Franchise tax is levied at an average of 5% on public utilities and other corporations that furnish gas, electric, water, cable TV, refuse or similar services to citizens living within city boundaries. In Pinole, these specifically include Comcast, AT&T, PG&E, City Council Report
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and Republic Services. The various fees are delineated in franchise agreements and are paid directly to the city by these franchisees. Estimates are based on historical experience. The FY 2023/24 baseline budget assumes a 1% increase based on trend analysis.
Intergovernmental Taxes
Motor vehicle in-lieu fee (VLF) revenue is the City’s share of motor vehicle license fees levied, collected and apportioned by the State. VLF is a tax on the ownership of registered motor vehicles which takes the place of taxation of this personal property.
The VLF is paid annually at the time vehicle licenses are renewed based on current value adjusted for depreciation. The FY 2023/24 baseline budget assumes an 8% increase, consistent with projections provided by HdL, the City’s property tax consultant.
Transient Occupancy Tax
Transient occupancy tax (TOT) is a 10% tax levied by the City for the privilege of occupying quarters on a transient basis in accordance with Chapter 3.24 of Municipal Code. This tax is imposed upon persons staying 30 days or less in a motel or lodging facility, and short-term rentals, such as Airbnb. The FY 2023/24 baseline budget assumes a 3% growth rate based on industry trends.
Business License Tax
Business license tax is assessed on all businesses doing business within City limits in accordance with Municipal Code Title 5. The City charges business license tax in accordance with the provisions of Government Code 37101. Pinole’s tax is computed based on a flat tax (currently $160 per year) combined with a variable tax component based on the number of employees. The FY 2023/24 baseline budget assumes a 5% increase based on trend analysis.
Charges for Services
Charges for services is entirely comprised of payments that the City receives from the cities of Hercules and San Pablo for police dispatch services the City provides to those cities. The FY 2023/24 baseline budget assumes a 2% increase in these charges based on the formula in the current service agreement. A new agreement is currently under negotiation.
Other Revenue
Other revenue is made up of all other revenue sources, such as fees, permits, interest income, grants, reimbursements, and other miscellaneous revenue. These revenues are projected primarily using historical trend analysis. The FY 2023/24 baseline City Council Report
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budget assumes an 11% decrease mainly due to revenues previously generated by the Fire Department shifting to CCCFPD under the fire services agreement.
Transfers In
The transfer in comes from the Pension Section 115 Trust to offset the increase in pension costs in the General Fund. The amount transferred is based on the difference between the City’s base year (FY 2018/19) contribution toward employee pensions and the forecasted required City contribution in the budget year.
General Fund Expenditures
As noted above, the expenditures of the FY 2023/24 General Fund baseline budget are higher than the expenditures forecasted in the LTFP, for the reasons described below.
Salaries & Wages
Salaries and wages expenditures in the baseline budget are computed based on the City’s current FY 2022/23 staffing level. Approximately 74% of total citywide personnel costs are funded by the General Fund. The FY 2023/24 baseline budget accounts for the decrease in full time equivalent (FTE) positions due to the dissolution of the Pinole Fire Department and transfer of fire protection and emergency medical services to CCCFPD. Consistent with the City’s past practice, the baseline budget includes a 3% increase in all salaries to account for potential cost of living adjustments (COLAs) resulting from the labor negotiations that are currently underway with all City employee labor groups for new contracts that would be effective July 1, 2023.
Benefits
Benefits consist of retirement and fringe benefits. The City’s annual required contribution to the California Public Employees’ Retirement System (CalPERS) for City employees’ defined benefit pension is determined by the most recent CalPERS actuarial valuation reports. The FY 2023/24 baseline budget reflects the cost of the required employer contribution minus the employee contributions that the City has negotiated with its labor groups. As a result of negotiations between the City and the unions representing City employees, City employees’ contribution toward their pension benefit was reduced beginning in FY 2021/22 but is still significantly above that required by peer public agencies.
Other benefits costs include employee medical/dental/vision care, workers’ compensation insurance, and others. The benefits cost in the FY 2023/24 baseline budget is based primarily on rate schedules provided by external agencies, such as CalPERS (for employee medical). The FY 2023/24 baseline budget assumes a net 17% decrease for the various benefits. The net decrease is mainly due to a decrease in staffing resulting from the transition of the Fire Department to CCCFPD, offset by a City Council Report
April 25, 2023 9
5% increase in health benefits and a 14% increase in workers compensation premiums.
Operations and Maintenance
Operations and maintenance is non-personnel related expenditures, such as professional services, utilities, and materials and supplies. FY 2023/24 baseline budget assumes a net 23% decrease in this category of costs, mainly due to expenditure reductions resulting from the transition of the Fire Department to CCCFPD, offset by a 10% increase in general liability insurance premiums and a 21% increase in ongoing operations and maintenance to address department operating needs.
Contra Costa County Fire Protection District (CCCFPD) Fire Services Agreement As noted above, effective March 1, 2023, CCCFPD provides fire protection and emergency medical services to residents. The baseline budget includes funding for the fire services agreement based on the contract amount for FY 2023/24. The City is working with CCCFPD to appropriately account for and credit the two agencies for one-time transition costs as well as ongoing costs of the arrangement.
Capital Outlay
Capital outlay includes non-major asset acquisitions and improvements, such as computer equipment and furniture. The FY 2023/24 baseline budget assumes a 19% increase to account for anticipated increases in the price of goods and services.
Major capital improvements funded by the General Fund and Measure Ss are not reflected in the FY 2023/24 baseline budget. Though they may span multiple fiscal years, capital projects are non-recurring in nature and are not accounted for in the baseline budget.
Debt Service
This category includes the payment of principal and interest that the City’s General Fund is responsible for repaying, which is just the 2006 pension obligation bonds (POBs) that were issued to fund a portion of the City’s unfunded accrued actuarial liability with CalPERS. The future required payments on this debt are forecasted based on the long-term debt obligation schedule. This debt will be fully paid and retired in FY 2035/36. The City of Pinole has very little debt overall. As of FY 2023/24, in addition to the POBs noted above, the City has 2016 Wastewater Revenue Refunding Bonds and the 2016 Clean Water State Revolving Fund loan, both of which are payable by the Sewer Enterprise Fund, not the General Fund. As of FY 2023/24, the Redevelopment Successor Agency has one remaining piece of debt, the Pinole Vista Redevelopment Project 2015A Tax Allocation Refunding Bond, which will be paid off in FY 2023/24.
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Transfers Out
Transfers out includes the transfer of funds from the General Fund and Measure S to other funds to support Recreation and Pinole Community Television (PCTV) operations. The transfer helps to stabilize the budgets in those areas as the operating costs are not fully recoverable. The FY 2023/24 baseline budget assumes a flat dollar amount consistent with past practice.
One-Time (Non-Recurring) Budget Items
The City Council allocated funds in the FY2022/23 General Fund budget for the following one-time items in table 2 below. The items are not expected to be completed in FY 2022/23, therefore the budget allocations will be carried forward to the FY 2023/24 preliminary proposed General Fund budget.
Table 2 – General Fund One-Time Budget Items
Item Amount
1. Active Transportation Plan $200,000
2. Brandt Street Improvements $170,000
3. Business Development/Community Help Reserve $10,000
4. Emergency Power for Critical Failure $200,000
5. Municipal Broadband Feasibility $60,000
6. On-Call Consultants for Capital Projects $150,000
7. Recycled Water Feasibility $60,000
8. Revitalization Reserve $10,000
9. Storm Drainage Master Plan $75,000
10. Weatherization/Energy Efficiency $250,000
Next Steps
The next step in the budget development process will be for staff to evaluate Council Members’ requests for potential additions/deletions to the baseline budget for incorporation into the Preliminary Proposed budget and the 10-year financial forecast.
FISCAL IMPACT
The presentation of the FY 2023/24 baseline budget does not itself have any fiscal impact to the City.
ATTACHMENTS
None
CITY COUNCIL
REPORT 5B
DATE: APRIL 25, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: MISHA KAUR, CAPITAL IMPROVEMENT AND ENVIRONMENTAL
PROGRAM MANAGER
SUBJECT: OVERVIEW OF DRAFT FISCAL YEAR 2023-24 THROUGH 2027-28
CAPITAL IMPROVEMENT PLAN
RECOMMENDATION
Staff recommends that the City Council receive an overview of the draft fiscal Year (FY) 2023-24 through 2027-28 Capital Improvement Plan (CIP) and provide direction.
BACKGROUND
The Capital Improvement Plan (CIP) is a multi-year plan/forecast of the City’s capital improvement projects. The City creates an updated CIP each year based on the condition of the City’s current capital assets, the desire for new capital assets, and available funding. The CIP serves as a tool for staff to plan, implement, and manage improvements and ongoing upgrades to the City’s infrastructure.
A variety of funding sources support projects in the CIP. The first year’s program is adopted by the City Council as the Capital Budget, as a counterpart to the annual Operating Budget. The fiscal resources are appropriated only in the first year, the subsequent four years of the CIP are important for long term planning and subject to further review and modification.
The draft FY 2023-24 through 2027-28 CIP is comprised of projects that fall into the following broad categories:
• Facilities
• Parks
• Sanitary Sewer
• Stormwater
• Streets and Roads
• Infrastructure Assessments
On April 12, 2023, staff presented an overview of the draft FY 2023-24 through 2027-28 CIP to the Finance Subcommittee. Clarification was provided for various projects and the City Council Report
April 25, 2023 2
project sheets have been updated to reflect the information shared with the Finance Subcommittee. A project sheet was also created for RO2304 to reflect the funding approved by City Council on February 21, 2023, for immediate improvements at two intersections on Tennent Ave.
REVIEW & ANALYSIS
Many projects in the CIP currently underway have been carried over from previous years, several of which are multi-year efforts. Over the past few years, due to limited staff and resources, certain projects were prioritized projects because they were either already underway, had a regulatory component, or were grant funded and had sensitive funding timelines. Several projects were recommended for deferral due to various factors, which include:
• Dependency on completion of precursor capital projects/master plans in progress; • Dependency on other capital projects for coordinated, efficient implementation; • Pending grant award results and obligations to complete grant funded projects; • Coordination with private developers and utilities on associated projects; and • Limited staff resources
On February 7, 2023, Staff presented a Capital Projects Prioritization Matrix which will serve as a planning and evaluation tool to optimize the use of available resources. Staff will utilize this tool to generate rankings for projects which will appear in the Preliminary Proposed five - year CIP which is scheduled for presentation to City Council in May 2023.
Below is a summary of projects in the draft FY 2023-24 through 2027-28 CIP:
Complete projects:
Staff has completed or anticipates completion of the following projects by June 30, 2023:
• FA2002 – Electric Vehicle Charging Stations
• PA2203 – Playground Rubberized Surface Improvements
• IN2104 – Local Road Safety Plan
• IN2001 – Sanitary Sewer Master Plan
Therefore, these projects do not appear in the draft FY 2023-24 through 2027-28 CIP.
New projects for FY 2023-24:
The draft FY 2023-24 through 2027-28 CIP includes three new projects:
• RO2304 – Safety Improvements at Tennent Ave./Pear & Plum • RO2303 – Pinole Smart Signals
• RO2302 – Safety Improvements on Arterial Roadways
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April 25, 2023 3
Both RO2303 and RO2302 are partially grant funded. Project RO23 Removed projects:
• SW2002 Adobe Road Repair and Drainage Improvements
• FA2201 – Faria House Renovations
Combined projects:
• RO2501 – Residential Slurry Seal, RO2401 – Cape Seal, and RO2301 Residential Slurry Seal have all been combined into a single project referenced as RO2301 Road Rehabilitation
The FY 2023/24 – 2027/28 CIP contains 32 planned public improvement projects, which includes 3 new projects. In addition, there are 7 infrastructure assessments programmed for FY 2023/24 – 2027/28.
FISCAL IMPACT
The draft FY 2023-24 through 2027-28 Capital Improvement Plan (CIP) includes $54,230,599 in identified projects of which, $30,270,300 are listed as unfunded. The draft FY 2023-24 through 2027-28 CIP constitutes the proposed FY 2023-24 budget in the amount of $14,292,853, of which $1,320,300 is listed as unfunded. Years two through five of the CIP will be used in forecasting funding needs.
ATTACHMENT(S)
A. Draft FY 2023-24 through 2027-28 Capital Improvement Plan