Pleasant Hill City Council
May 20, 2024

Long-Term
Financial Plan
General Fund
Fiscal Year
2024/2025
Through
Fiscal Year
2028/2029
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 i

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City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 ii
Table of Contents
Executive Summary ······································································································································· 1 Introduction···················································································································1 Economic Scenarios, and Status Quo and “Preferred” Service Levels ·················································1 Financial Challenges ·········································································································1 Summary and Next Steps····································································································2 Introduction ·················································································································································· 3 History ·························································································································3 Purpose························································································································3 Scope ··························································································································3 Development Process········································································································3 Forecast Background······································································································································ 5 Forecast Methodology·······································································································5 FY 2023/2024 Base Year·································································································5 Three Economic Scenario Forecasts····················································································5 General Fund Revenue Forecast····················································································································· 6 Revenue History ··············································································································8 Moderate Forecast of Revenue by Source ················································································8 Property Tax and Property Tax In-Lieu··················································································· 10 Property Tax············································································································· 10 Property Tax in Lieu of VLF ···························································································· 10 Sales Tax····················································································································· 10 Transient Occupancy Tax (TOT)··························································································· 11 Franchise Fees·············································································································· 11 Other Taxes and Assessments ···························································································· 11 Business License Tax ··································································································· 11 Utility User’s Tax (UUT)································································································ 11 Property Transfer Tax·································································································· 11 Licenses and Permits······································································································· 11 Use of Money and Property······························································································· 12 Other Revenue·············································································································· 12 Charges for Service········································································································· 12 Transfers from Other Funds ······························································································ 12 General Fund Expenditure Forecast···············································································································13 Expenditure History ········································································································ 13 Moderate Expenditure Forecast·························································································· 15 Rate of Inflation ············································································································ 19 Personnel — Salaries······································································································· 19 Personnel – Retirement Benefits························································································· 19 Personnel — Medical and Other Miscellaneous Benefits····························································· 20 Medical Insurance······································································································ 20 Other Miscellaneous Benefits························································································· 20 Benefit Buybacks and Contributions to Retiree Health Savings Plan············································· 20 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 iii
General Expenses ·········································································································· 21 Professional and Contract Services ······················································································ 21 Other — Conferences and Training ······················································································ 21 Other — Maintenance and Repairs ······················································································ 21 Other — Supplies and Materials·························································································· 21 Other — Utilities············································································································ 21 Other — Insurance/Risk Management ·················································································· 22 Other — Promotions and Contributions················································································· 22 Other — Fixed Assets······································································································ 22 Other — Debt Service······································································································ 22 Other —Transfers to Other Funds ······················································································· 23 Comparison/Balance of Moderate Scenario Revenues and Expenditures························································24 Five-Year Forecast·········································································································· 24 Optimistic and Pessimistic Scenario Revenues and Expenditures····································································27 Optimistic and Pessimistic Scenario Assumptions······································································ 27 Optimistic Scenario Forecast······························································································ 28 Pessimistic Scenario Forecast····························································································· 30 Revenue and Expenditure Balancing Options·································································································33 Revenue ····················································································································· 33 Continue to Aggressively Seek Regional, State, and Federal Funding············································ 33 Update Fees and Cost Allocation to Special Revenue Funds······················································ 33 Expenditure ················································································································· 33 Insource and Outsource Opportunities·············································································· 33 Modify Service Levels·································································································· 34 Increase Cost Sharing for Employee Benefits······································································· 34 Measure K Fund Forecast····························································································································· 35 City Assets and Liabilities······························································································································37 Summary and Next Steps······························································································································39 Appendices···················································································································································41 Appendix A — General Fund Reserve Policy ··········································································· 42 Appendix B — Chart of Positions························································································· 45 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 iv
List of Tables
Table 1: Status Quo Service Level Moderate Scenario Forecast········································································ 1 Chart 1: Unfunded Pension Liability················································································································ 2 Table 2. Ten-Year General Fund Revenue History, By Source··········································································· 6 Chart 2. General Fund Revenue History, By Source ························································································· 7 Table 3. Moderate Scenario Revenue Assumptions························································································· 8 Table 4. Moderate Scenario Revenue Forecast································································································ 8 Chart 3. Moderate Scenario Revenue Forecast································································································ 9 Table 5. Ten-Year General Fund Expenditure History, by Type······································································· 13 Chart 4. General Fund Expenditure History, by Type ····················································································· 14 Table 6. Moderate Expenditure Assumptions································································································ 15 Table 7. Moderate Scenario Expenditure Forecast, By Type··········································································· 15 Chart 5. Moderate Scenario Expenditure Forecast, By Type··········································································· 16 Table 8. Moderate Scenario Expenditure Forecast, By Department ······························································· 17 Chart 6. Moderate Scenario Expenditure Forecast, By Department ······························································· 18 Table 9. Forecasted Future Projected Normal Cost % Rates and Payment toward Unfunded Accrued Liability (Based on CalPERS Actuarial Valuation Reports dated June 30, 2016)·································· 19 Table 10. Moderate Scenario Five-Year Forecast··························································································· 24 Chart 7. Long-term Unfunded Actuarial Liability Payment ············································································· 24 Table11. Pension Participant Data················································································································ 25 Table12. Retiree Benefits Data ····················································································································· 26 Chart 8. Retiree Benefits Data ······················································································································ 26 Table 13. Optimistic, Moderate, and Pessimistic Scenario Revenue and Expenditure Assumptions················· 27 Table 14. Moderate Scenario Five-Year Forecast··························································································· 28 Table 15. Optimistic Scenario Expenditure Forecast······················································································ 29 Table 16: Optimistic Scenario Five-Year Forecast ·························································································· 29 Table 17. Pessimistic Scenario Revenue Forecast ·························································································· 30 Table 18. Pessimistic Scenario Expenditure Forecast····················································································· 31 Table 19. Pessimistic Scenario Five-Year Forecast ························································································· 31 Table 20. Measure K Fund···························································································································· 36 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 v
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City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 1 Executive Summary
Introduction
The Long-Term Financial Plan (LTFP) for Fiscal Year 2024/2025 through Fiscal Year 2028/2029 forecasts the City’s revenues, expenditures, and resulting fund balance for the General Fund (not including Measure K) over a five-year planning period. The LTFP is not intended to predict the future, but rather to create awareness regarding financial challenges and opportunities that the City could possibly face and inform the City’s financial and operational decision making to account for such possibilities.

Economic Scenarios, Status Quo, and “Preferred” Service Levels The LTFP forecasts the City’s revenues based on existing revenue mechanisms and expenditures based on current (“status quo”) service and staffing levels in the Fiscal Year (FY) 2023/2024 Budget. If the City maintains current service levels and experiences moderate economic conditions for revenues and expenditures, the City forecasts deficits for FY 2024/2025 through FY 2028/2029, if no corrective steps are taken, as shown in Table 1 below.

Table 1: Status Quo Service Level Scenario Forecast
Financial Challenges
The City’s General Fund has maintained a balanced budget over the last couple of fiscal years and the fund balance has grown to nearly $13.8 million through economic improvement, one-time federal funding due to the COVID pandemic, and salary savings from vacancies with the retirements of long tenured staff. Also, the City Council approved a pension trust in May 2022, by contributing $1.0 million of the General Fund reserve to assist with future pension liabilities and established a Pension Rate Stabilization Funding Policy to provide additional funds when revenue exceeds expense.

Even with these positive steps, the unfunded pension liability continues to increase at a much faster pace than the assumed revenue growth. The unfunded pension expense for FY 2023/2024 is $3.87 million and is estimated to increase to over $6.00 million in FY 2028/2029.

Here are some of the critical challenges the City is facing over the next several years:

1. Revenue Growth
a. The City is highly reliant on sales tax revenue, which makes up approximately 34%-35% of General Fund revenue and has had historic growth in the last couple of fiscal years. The estimate for FY 2023/2024 sales tax revenue is currently $10.6 million, and less than the previous two fiscal years, which was slightly over or near $11.0 million. The leveling off in sales tax revenue was to be expected as consumers were purchasing more goods online and new vehicles at higher levels due to the pandemic and the supply chain shortage. Also, the City lost

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Adopted Forecast Forecast Forecast Forecast Forecast
Revenues $30,607 $31,152 $32,102 $33,129 $34,193 $35,293 Expenditures $31,770 $33,425 $34,792 $36,141 $37,463 $39,113 (Deficit) ($1,163) ($2,273) ($2,690) ($3,012) ($3,270) ($3,820) Beginning Fund Balance $13,786 $12,623 $10,351 $7,661 $4,649 $1,379 Ending Fund Balance $12,623 $10,351 $7,661 $4,649 $1,379 ($2,442) City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 2 a couple large brick and mortar retailers recently as new tenants are being sought. Overall, sales tax revenue is estimated to grow between 2.5% to 3.0% annually, as these locations will eventually be filled and consumers continue to purchase goods. b. Property tax revenue is historically a stable revenue source and has grown an average of 6% annually due to rising home values and inflation (Proposition 218 caps inflation growth at 2%).

This is the City’s second highest revenue source and is approximately 28%-30% of the General Fund. Property tax is expected to grow between 3.5% to 4.5% annually with the sale of homes and higher inflation. This is less than the previous average as interest rates is higher on homes loans causing fewer home sales and the City has recaptured most of the revenue due to changes in assessed valuation during the Great Recession.

2. Unfunded Pension Liability
a. The City provides a pension benefit to current employees and retirees based on years of service.

The benefit payments along with the assumptions and contributions are determined by the California Public Employees’ Retirement System (CalPERS). The City has and continues to make the required annual contributions to CalPERS for this liability based on their investment returns and assumption changes. The City has minimal control over CalPERS and any significant changes would require the majority of the State Legislature to pass new legislation. Chart 1 below shows the CalPERS unfunded liability pension payments based on their current actuarial valuations.

These payments will continue to rise, until FY 2031/2032, and then level off based on their current assumptions and will not significantly decrease until FY 2037/2038.

Chart 1: Unfunded Pension Liability
Summary and Next Steps
The City has been on solid budgetary footing, but unless the economic cycle is better than assumed, the projected pension cost increases are not sustainable without corrective action. City staff intends to update the LTFP during FY 2024/2025 after the adoption of the Biennial Budget. In the future, the LTFP will be updated every off-budget year, so this information is available to the City Council, public, and staff prior to the preparation of the next Biennial Budget.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 3 History
Introduction
When the City Council created its goals for Fiscal Years 2013/2014, 2014/2015, and 2015/2016 in September 2013, it adopted the objective to “establish a long-termfinancial plan” as part of the goal of “a City that is financially sound.” The City published its first LTFP in August 2015, and envisioned creating updated LTFPsthereafter on a periodic basis.

Purpose
The purpose of the LTFP is to create awareness regarding financial challenges and opportunities the City could possibly face and inform the City’s financial and operational decision making to account for such possibilities.

Scope
The City of Pleasant Hill Long-Term Financial Plan for Fiscal Year 2024/2025 through Fiscal Year 2028/2029 addresses the revenues and expenditures of the City’s General Fund over a five-year planning period.

Development Process
The City’s first LTFP and this one was created using public finance best practices. Best practices are well summarized in the key publication on municipal long-term financial planning, the Government Finance Officers Association’s (GFOA) Financing the Future: Long-Term Financial Planning for Local Government.

GFOA, one of the leading professional associations in the public finance field, defines financial forecasting and long-term financial planning as follows:
■ Financial forecasting is the process of projecting revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios, and other salient variables.
■ Long-term financial planning is the process of aligning financial capacity with long-term service objectives. Financial planning uses forecasts to provide insight into future financial capacity so that strategies can be developed to achieve long-termsustainability in light of the government’s service objectives and financial challenges.

The main tasks required to create the LTFP were the following:
■ Review best practices, the work of peer jurisdictions, and academic and professional materials on the topic;
■ Review the City’s past forecasting work;
■ Analyze the economic environment to identify the major financial and operational challenges and opportunities that the City might face over the coming years; City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 4 ■ Forecast revenues and expenditures for different economic scenarios; ■ Identify policy alternatives, including changes to revenue sources and expenditures, that the City could use to rebalance its budget if needed; and
■ Gather feedback on a draft LTFP and gain Budget Committee and City Council approval of the final LTFP.

The LTFP development process was structured to support participation from a variety of stakeholders.

Staff shared information with and received input from Councilmembers and the public at Budget Committee and City Council meetings.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 5 Forecast Methodology
Forecast Background
As noted above, City staff consulted numerous resources and followed public finance best practices when creating the LTFP. The methodology used to create the forecasts for the LTFP for FY 2024/2025 through FY 2028/2029 is similar as that used for the City’s previous LTFP.

FY 2023/2024 Base Year
Staff used the adopted FY 2023/2024 budget as the basis of the forecast. Staff assumed that future City service levels and revenue sources would remain at current levels. Staff then forecasted revenues and expenditures for succeeding years by applying assumptions about possible future changes in economic conditions that could impact revenues and expenditures.

Revenues and expenditures are impacted by both cyclical and irregular changes in the City’s economy and demography. Future revenues and expenditures can be estimated using a number of techniques including qualitative/judgmental analysis and quantitative analysis. City staff used both qualitative and quantitative analysis as part of this forecast, as described below. Much of the forecast draws on information provided by outside experts, particularly the forecast of future revenues, which is based on detailed analysis conducted by the City’s outside revenue consultant, the HdL Companies.

Three Economic Scenario Forecasts
Staff created revenue and expenditure forecasts for three different possible economic scenarios, moderate (which staff considers most likely), optimistic, and pessimistic. The main characteristics of the moderate, optimistic, and pessimistic scenarios are shown below.

Moderate
■ Continued increase in revenues, particularly sales and property tax ■ Moderate inflation, but greater-than-inflation increases in employee retirement and medical benefit costs
Optimistic
■ More significant revenue increases
■ Still moderate inflation, but greater-than-inflation increases in employee retirement and medical benefit costs
Pessimistic
■ Smaller increases in revenues
■ Higher inflation, and greater-than-inflation increases in employee retirement costs and medical benefit costs
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 6 General Fund Revenue Forecast
As noted above, staff used the adopted FY 2023/2024 budget as the baseline for its revenue and expenditure forecasts. The City’s General Fund revenue history and forecast is described below.

Revenue History
As background, Tables 2 below illustrates the ten-year history of the City’s General Fund revenue by source.

Table 2. Ten-Year General Fund Revenue History, By Source REVENUES ($)

THOUSANDS
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Property Tax $5,267 $5,518 $5,760 $6,111 $6,448 $6,692 $7,220 $7,659 $8,038 $8,674 Sales Tax 7,508 7,737 8,598 8,437 8,547 8,595 9,499 9,232 11,378 10,906 Transient Occupancy
Tax (TOT) 1,610 1,931 2,107 2,222 2,244 2,544 2,167 1,601 2,237 2,232 Franchise Tax 1,828 1,805 1,890 1,958 2,001 1,961 2,055 2,061 2,629 2,370 Other Taxes and
Assessments 2,595 2,774 2,832 2,939 2,991 3,233 3,401 3,176 3,538 3,480 Licenses and Permits 584 532 714 673 937 936 992 979 1,380 1,707 Use of Money and
Property (39) 46 61 14 31 311 293 (36) (606) 343
Other-Revenue 416 316 212 266 158 122 194 97 174 256
Charges for Services 624 440 542 627 639 711 620 613 509 622 Transfers from Other
Funds 486 100 221 100 5 100 100 397 20 582
Total Revenues $20,879 $21,199 $22,937 $23,347 $24,001 $25,205 $26,541 $25,779 $29,297 $31,172 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 7 Chart 2. General Fund Revenue History, By Source
$5.3 $5.5 $5.8 $6.1 $6.4 $6.7 $7.2 $7.7 $8.0 $8.7
$7.5 $7.7 $8.6 $8.4 $8.5 $8.6 $9.5 $9.2
$11.4 $10.9
$6.0 $6.5 $6.8 $7.1 $7.2 $7.7
$7.6 $6.8
$8.4 $8.1
$2.1 $1.4
$1.8 $1.7 $1.8 $2.2
$2.2 $2.1
$1.5 $3.5
$0
$5
$10
$15
$20
$25
$30
$35
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23

HISTORICAL TEN-YEAR GENERAL FUND REVENUE
($ IN MILLIONS)
Property Tax Sales Tax Taxes and Assessments Other Revenue City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 8 Moderate Forecast of Revenue by Source
Table 3 below summarizes the major assumptions of the moderate revenue scenario by source. Following that, Table 4 illustrates the five-year revenue forecast under the moderate scenario. These assumptions and the resulting revenue forecast are explained in detail in the narrative below.

Table 3. Moderate Scenario Revenue Assumptions

REVENUE SOURCE MODERATE/MOST LIKELY ASSUMPTION
Property Tax and
Property Tax In-Lieu
Property tax forecast is based on projections provided by the City’s property tax consultant HdL Coren & Cone. Revenues are forecasted to grow 3.59% - 4.6% annually.

Sales Tax
Sales tax forecast is based on projections provided by both the City’s sales tax consultant, HdL Companies and Economic Development Manager. The forecast includes a slight decrease in FY 2023/2024 with the closures of two large retailers during the previous fiscal year and some one-time corrections by the California Department of Tax and Fee Administration. Sales tax is expected to recover based on the City’s spending patterns, inflation, and retailers filling those vacant locations. Revenues are forecasted to grow between 2.5% to 3.5% annually.

Transient Occupancy Tax (TOT)

2.0% annual increase in TOT generally. In FY 2018/2019, TOT revenue was $2.5 million (preCOVID) with the opening of Hilton Homewood Suites in July 2018. The projection in the previous LTFP was TOT revenue to be closer to $3.0 million. TOT dropped to $1.6 million in fiscal FY 2020/2021 due to COVID and has remained around $2.2 million the last couple of fiscal years.

This assumes a moderate recovery and assisted by the work done by the City’s Tourism Improvement District.

Business License Tax 3% annual increase.

Other Revenue 3% annual increase generally. Some amounts for FY 2023/2024 were updated based on actuals or current information.

Table 4. Moderate Scenario Revenue Forecast
REVENUES ($)

THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
Property Tax $8,647 $9,005 $9,378 $9,803 $10,248 $10,711 Sales Tax 10,550 10,870 11,147 11,439 11,740 12,050
Transient Occupancy Tax
(TOT) 2,215 2,260 2,305 2,351 2,398 2,446
Franchise Tax 2,370 2,441 2,514 2,590 2,667 2,747
Other Taxes and
Assessments 3,369 3,462 3,557 3,656 3,758 3,862
Licenses and Permits 1,655 1,266 1,304 1,343 1,384 1,425 Use of Money and
Property 524 540 556 573 590 607
Other-Revenue 583 594 605 616 627 639
Charges for Services 539 555 572 589 606 625
Transfers from Other
Funds 155 160 164 169 174 180
Total Revenues $30,607 $31,153 $32,102 $33,129 $34,192 $35,292 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 9 Chart 3. Moderate Scenario Revenue Forecast
$8.6 $9.0 $9.4 $9.8 $10.2 $10.7
$10.6 $10.9 $11.1 $11.4 $11.7 $12.1
$8.0 $8.2 $8.4 $8.6 $8.8 $9.1 $3.5 $3.1 $3.2 $3.3 $3.4 $3.5 $0
$5
$10
$15
$20
$25
$30
$35
$40
Estimate Forecast Forecast Forecast Forecast Forecast
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29

MODERATE SCENARIO GENERAL FUND REVENUE
($ IN MILLIONS)
Property Tax Sales Tax Taxes and Assessments Other-Revenue City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 10 Property Tax and Property Tax In-Lieu
Property Tax
Property tax revenues are forecasted to increase each year due to higher assessed valuations on residential properties that have changed ownership and some minimal amounts to recapture from the temporary reductions in assessed value during the last recession. Property tax revenues are generally a very stable revenue stream. HdL Coren & Cone, the City’s property tax consultant, is forecasting that property taxes will increase in the range of 3.6%-4.6% annually on average. The City isforecasting revenue will increase from $4.3 million in FY 2024/2025 to $5.1 million in FY 2028/2029.

Property Tax in Lieu of VLF
The motor vehicle license fee (VLF) is an annual tax on the ownership of registered vehicles collected by the State Department of Motor Vehicles and then distributed to cities and counties. In 2004, the State Legislature permanently reduced the VLF tax from 2% to 0.65% of a vehicle’s current market value. The reduction in VLF revenue to cities and counties was offset by an increased transfer of property tax from the State to cities and counties. This transfer is called the “Property Tax In Lieu of VLF.” This revenue stream movesin lock step with regular property tax revenue. The City isforecasting ongoing increases to this revenue such that it will increase from $4.7 million in FY 2024/2025 to $5.6 million in FY 2028/2029.

Sales Tax
Based on projections provided by HdL Companies and the City’s Economic Development Manager, baseline sales tax revenue is projected to increase at the average growth rate of 3.5% for FY 2024/2025 to

2.5% for the remaining fiscal years. The assumption is based on the City’s past historical spending patterns, adjusting for online sales after the Supreme Court’s South Dakota v. Wayfair Inc. decision, inflation, and assumption that the retail space in Downtown Pleasant Hill will be filled. Sales tax revenues are forecast to increase from $10.6 million in FY 2023/2024 to $10.9 million in FY 2024/2025.

Transient Occupancy Tax (TOT)
The City has six hotels (Hyatt House; Courtyard by Marriott; Residence Inn by Marriott; Extended Stay America; Sun Valley Inn; Pleasant Hill Inn; and Hilton Homewood Suites) and they collect and remit a 10% transient occupancy tax. TOT revenue still has not recovered to pre-COVID-19 levels. In FY 2018/2019, the City received $2.5 million in TOT revenue with the opening of Hilton Homewood Suites.

The TOT expectation was nearly $3.0 million annually in the previous LTFP. The pandemic reduced personal and business trips and revenue dropped to $1.6 million in FY 2019/2020. The has improved the last couple of fiscal years to around $2.2 million annually. TOT revenue has the capacity to grow at a faster rate, but staff is currently forecasting an annual growth of 2% annually. This revenue source should be assisted by the outreach and promotional work being done by the City’s Tourism Improvement District. The City Council authorized the establishment of the Transient Occupancy Tax (TOT) by Ordinance No. 139 which was adopted in 1965.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 11 Franchise Fees
Franchise fees are rents paid by utilities or other businesses for the privilege of using the City’s right of ways (streets, alleys, sidewalks, etc.) to locate utility lines or operate vehicles. The City collects a franchise fee of 1% from Pacific Gas & Electric and 5% from cable operators (currently AT&T/Pacific Bell, Comcast and WAVE). The City also collects a 12% franchise fee from Republic Services. Franchise fee revenue has remained fairly constant during the past several years and is expected to increase 3.0% annually from $2.4 million in FY 2024/2025 to $2.7 million in FY 2028/2029.

Other Taxes and Assessments
Business License Tax
The City processed over several thousand business licenses over the past year. Revenue is expected to increase at approximately 3% annually, from $3.2 million in FY 2024/2025 to $3.6 million in FY 2028/2029. The City Council authorized the establishment of the Business License Tax by Ordinance No. 33 which was adopted in 1962.

Utility User’s Tax (UUT)
Utility user’s tax (UUT) is a 1% tax levied on telephone service. UUT revenue is expected to be level at $73,500. The City Council authorized the establishment of the Utility Users Tax (UUT) by Ordinance No. 524 which was adopted in 1983.

Property Transfer Tax
Property transfer tax is collected by the County on the sale of property at the rate of $0.275 per $500 of sales price and remitted to the City. Thisrevenue stream islevel at $268,300 annually. This revenue source has been impacted by changes in interest rates on homes and the slowdown of home sales in the City. The City Council authorized the establishment of the Property Transfer Tax by Ordinance No. 194 which was adopted in 1967.

Licenses and Permits
The licenses and permits category include revenues for building-related permits and fees. Revenue in this category has grown substantially in the past several years due to several major housing projects throughout the City. These projects are nearly complete and there is no current large development in the next budget cycle. Therefore, the revenues are reduced from $1.6 million in FY 2023/2024 to $1.3 million in FY 2023/2024 and then a 3% annual growth as home renovation projects continue throughout the City.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 12 Use of Money and Property
The use of money and property category includes interest and dividend income on the City’s investment of fund balances, primarily General Fund working capital and reserves. Interest rates have risen recently as the United States Treasury dealt with inflation concerns. Therefore, the City isforecasting that rates of return on the City’s investments will increase as they have gone from nearly 0% to 4.0% in the Local Agency Investment Fund. Revenues in this category are forecasted to range from $540,000 to $670,000 during the term of the forecast.

Other Revenue
This category includes numerous smaller revenues that do not fit within the categories listed above. This revenue streamis expected to grow by a 3.0%average annually,from$594,000 in FY 2023/2024to $639,000 in FY 2028/2029. This amount includes $250,000 which represents unanticipated revenue and/or expenditure savings annually.

Charges for Service
Revenues from charges for services are mainly comprised of fee-based payments for services of the Planning Division and Engineering Division. Revenue in this category is forecasted to increase slightly, from $555,000 in FY 2024/2025 to $625,000 in FY 2028/2029.

Transfers from Other Funds
The transfer from other funds category primarily consists of a $20,000 transfer each year from the Supplemental Law Enforcement Services (SLESF) grant received by the Police Department, which is held in the Supplemental Law Enforcement Services Fund, to the General Fund. The secondary transfer is for $130,000 of reimbursable costs by the Landscape and Lighting District 20 and 22 into the General Fund.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 13 General Fund Expenditure Forecast
As noted above, staff used the expenditures in the adopted FY 2023/2024 budget (and the service levels it supports) as the baseline for its forecasts. The City’s General Fund expenditure history and forecast is described below.

Expenditure History
As background, Table 5 below illustrates the ten-year history of the City’s General Fund expenditures by type.

Table 5. Ten-Year General Fund Expenditure History, by Type

EXPENDITURES
AND USES ($)

THOUSANDS
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Salaries $8,893 $9,453 $9,798 $10,652 $11,204 $12,001 $12,331 $12,473 $13,400 $13,663 Benefits 3,939 4,104 4,756 5,303 5,679 6,417 6,820 7,006 7,770 8,218 Benefit Buybacks &
Contributions to RHS 539 737 545 597 267 311 685 456 880 613 General Expenses 477 536 578 547 428 562 479 356 632 741 Professional and
Contract Services 1,450 1,424 1,814 1,790 1,851 2,336 2,002 1,308 1,899 1,693 Conferences and
Training 111 132 135 132 138 164 118 100 101 148
Maintenance and
Repair 187 196 182 216 310 284 312 265 360 344
Supplies and
Materials 255 320 323 367 313 452 507 455 499 489
Utilities 377 379 375 429 353 340 471 393 466 500
Insurance 401 522 505 957 674 708 766 648 806 1,034
Promotions and
Contributions 192 102 234 326 203 147 120 123 89 132
Fixed Asset 0 11 6 15 2 28 23 2 176 3
Debt Service 1,539 893 892 893 885 2 2 2 2 2
Transfer-Out 1,768 2,392 2,549 2,837 3,166 1,744 1,780 1,224 2,228 1,713 Total Expenditures
and Uses $20,128 $21,201 $22,692 $25,061 $25,473 $25,496 $26,416 $24,811 $29,308 $29,293 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 14 Chart 4. General Fund Expenditure History, by Type
$13.4 $14.3 $15.1 $16.6 $17.2 $18.7 $19.8 $19.9 $22.1 $22.5 $2.3 $1.7 $1.8
$1.9 $1.7
$0.9 $0.7 $0.6
$1.0 $1.0
$1.5 $1.4
$1.8
$1.8 $1.9 $2.3 $2.0 $1.3
$1.9 $1.7
$0.8 $0.9
$0.9
$1.0 $1.0
$1.1 $1.3 $1.1
$1.3 $1.3
$0.4 $0.5
$0.5
$1.0 $0.7
$0.7 $0.8 $0.6
$0.8 $1.0
$1.8 $2.4
$2.5
$2.8 $3.2 $1.7 $1.8
$1.2
$2.2 $1.7
$0
$5
$10
$15
$20
$25
$30
$35
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23

HISTORICAL TEN-YEAR GENERAL FUND EXPENDITURES
($ IN MILLIONS)
Salaries & Benefits General & Other Expenses
Professional and Contract Services Supplies and Materials & Utilities & Maintenance Insurance Transfer-Out
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 15 Moderate Expenditure Forecast
Table 6 below summarizes the major assumptions of the moderate expenditure scenario. Tables 7 and 8 illustrate the five-year expenditure forecast by expenditure type and department under the moderate economic scenario. These assumptions and the resulting expenditure forecast are explained in detail in the narrative below.

Table 6. Moderate Expenditure Assumptions

EXPENDITURE TYPE MODERATE ASSUMPTION
Personnel - Salaries

3.25% average annual increase for FY 2024/2025 and 3.5% for FY 2025/2026 based on recent Memorandum of Understanding agreements with bargaining groups. 3.25% average annual increase for FY 2026/2027 through FY 2028/2029.

Personnel – Retirement Benefits
Employee pension benefit costs are forecasted to significantly increase based on the most recent actuarial information from the California Public Employees’ Retirement System (CalPERS).

Personnel – Medical and Other
Miscellaneous Benefits

6.0% annual increase in medical benefits costs. 3.0% annual increase in most other miscellaneous benefits
Operations and Maintenance
Expenses 3.0% average annual increase.

Transfers to Other Funds 3.0% average annual increase.

Table 7. Moderate Scenario Expenditure Forecast, By Type

EXPENDITURES AND
USES ($) THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
On-Going Expenditures
Salaries $14,996 $15,483 $16,025 $16,546 $17,084 $17,639 Benefits 9,455 10,403 11,003 11,598 12,143 12,992
Benefit Buybacks &
Contributions to RHS 474 489 507 523 540 558
General Expenses 775 798 822 847 872 898
Professional and Contract
Services 1,941 1,999 2,059 2,121 2,184 2,250
Conferences & Training 198 204 210 216 223 230
Maintenance & Repair 452 466 480 494 509 524
Supplies & Materials 382 393 405 417 429 442
Utilities 475 489 504 519 534 550
Insurance 1,475 1,519 1,565 1,612 1,660 1,710
Promotions & Contributions 162 166 171 177 182 187
Fixed Assets 29 30 31 32 33 34
Transfers to Other Funds 1,556 1,602 1,650 1,700 1,751 1,804 Debt Service 2 2 2 2 2 2
Attrition (600) (620) (641) (662) (684) (706)
Total Expenditures and
Uses $31,772 $33,423 $34,793 $36,142 $37,462 $39,114
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 16 Chart 5. Moderate Scenario Expenditure Forecast, By Type $24.3 $25.8 $26.9 $28.0 $29.1 $30.5
$1.2 $1.2 $1.2 $1.3 $1.3 $1.4
$1.9 $2.0 $2.1 $2.1 $2.2 $2.3
$1.3 $1.3 $1.4 $1.4 $1.5 $1.5
$1.5 $1.5 $1.6 $1.6 $1.7 $1.7
$1.6 $1.6 $1.7 $1.7 $1.8 $1.8
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Estimate Forecast Forecast Forecast Forecast Forecast
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29

MODERATE AVERAGE OF GENERAL FUND

EXPENDITURES
($ IN MILLIONS)
Salaries & Benefits General & Other Expenses
Professional and Contract Services Supplies and Materials & Utilities & Maintenance Insurance Transfers to Other Funds
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 17 Table 8. Moderate Scenario Expenditure Forecast, By Department

EXPENDITURES AND
USES ($) THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
On-Going Expenditures
City Council $169 $175 $181 $188 $195 $202
City Manager 1,161 1,199 1,242 1,283 1,326 1,371
Economic Development 388 401 416 429 444 459
Community Relations 352 363 376 388 400 413
City Attorney 545 562 579 596 614 633
City Clerk 150 155 161 167 172 178
City Treasurer 11 12 12 13 13 14
Finance 970 1,003 1,040 1,076 1,113 1,152
Computer Services 1,171 1,209 1,249 1,289 1,330 1,373
Human Resources 736 760 786 812 838 865
Risk Management 1,473 1,517 1,563 1,609 1,658 1,707
Public Safety 14,203 14,687 15,218 15,739 16,278 16,837 Municipal Buildings 153 157 162 167 172 177
Planning 1,137 1,177 1,220 1,262 1,306 1,351
Building Inspection 906 936 969 1,001 1,035 1,069
Engineering 1,310 1,355 1,404 1,452 1,502 1,553
Maintenance 2,817 2,913 3,017 3,121 3,228 3,340
Non Departmental 542 557 575 596 614 635
Unfunded PERS Liability 3,872 4,590 4,940 5,282 5,564 6,137 Assessment District 20 and
22 106 109 112 115 119 122
Transfer to Other Funds 200 206 212 219 225 232
Attrition/Vacancy Savings (600) (620) (641) (662) (684) (706) Total Expenditures and Uses $31,772 $33,423 $34,793 $36,142 $37,462 $39,114 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 18 Chart 6. Moderate Scenario Expenditure Forecast, By Department $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $1.9 $1.9 $2.0 $2.0 $2.1 $2.2 $0.7 $0.8 $0.8 $0.8 $0.8 $0.9 $2.9 $3.0 $3.1 $3.2 $3.3 $3.4 $1.5 $1.5 $1.6 $1.6 $1.7 $1.7 $14.2 $14.7 $15.2 $15.7 $16.3 $16.8
$6.4 $6.6 $6.9 $7.1 $7.4 $7.6 $3.9 $4.6 $4.9 $5.3 $5.6 $6.1 ($5)
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Estimate Forecast Forecast Forecast Forecast Forecast
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29

MODERATE AVERAGE OF DEPARTMENTAL

GENERAL FUND EXPENDITURES
($ IN MILLIONS)
City Council City Manager & City Attorney & City Clerk
Economic Development & Community Relations City Treasurer & Finance & Computer Services & HR Risk Management Public Safety
Community Development and Public Works Unfunded PERS Liability Transfer to Other Funds Non Departmental & Vacancy Savings City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 19 Rate of Inflation
Based on historic trends and forecasts from a number of different sources, City staff has assumed a general rate of inflation of 3.0% per year for the moderate economic scenario.

Personnel — Salaries
Personnel costs account for the majority of General Fund expenditures. Salaries are forecasted to increase based on the average increase of the labor agreements with all bargaining groups at 3.25% in FY 2023/2024, 3.25% in FY 2024/2025 and 3.5% in FY 2025/2026. The remaining forecasted years assumed an increase of 3.25% for FY 2026/2027 – FY 2028/2029. The LTFP assumes that staffing levels (the number of City employees) will remain at the levels in the FY 2023/2024 budget. It also assumes that a portion of General Fund salaries will continue to be funded by Capital Improvement and other Special Revenue Funds and includes savings for vacancy and attrition. Please see Appendix for the table of authorized staffing counts.

Personnel – Retirement Benefits
The LTFP assumesthat employee retirement benefit costs will grow asstated in the most recent actuarial information provided by CalPERS. The City is expected to contribute $2.2 million in FY 2023/2024 and $2.5 million in FY 2028/2029 toward the City’s annual “normal cost”.Normal costrelatesto an employee’s years of service. In addition, the City is expected to contribute $3.9 million in FY 2023/2024 increasing to $6.1 million in FY 2028/29 toward its unfunded pension liability. CalPERS provided the City with projected employer contributions for the next several years in the June 30, 2022 actuarial valuation report. This information is summarized in Table 9.

Table 9. Forecasted Future Projected Normal Cost % Rates and Payment toward Unfunded Accrued Liability (Based on CalPERS Actuarial Valuation Reports dated June 30, 2022) NORMAL COST % FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Miscellaneous (Non-Safety) Employees
Misc. Classic 12.47% 12.52% 12.50% 12.50% 12.50% 12.50% Misc. Tier 2 10.10% 10.15% 10.20% 10.20% 10.20% 10.20%
Misc. PEPRA 7.68% 7.87% 7.90% 7.90% 7.90% 7.90%
Safety Employees
Safety Classic 27.11% 27.30% 27.30% 27.30% 27.30% 27.30% Safety Tier 2 22.83% 23.00% 23.00% 23.00% 23.00% 23.00% Safety PEPRA 13.54% 13.76% 13.80% 13.80% 13.80% 13.80%
Normal Cost ($) per Budget/ Forecast $2,157 $2,227 $2,305 $2,380 $2,457 $2,537 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 20 PAYMENT UNFUNDED ACCRUED
LIABILITY PAYMENT ($ THOUSANDS) FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Miscellaneous (Non-Safety) Employees
Misc. Classic $1,827 $2,126 $2,269 $2,409 $2,523 $2,768 Misc. Tier 2 0 10 16 23 29 36
Misc. PEPRA 0 9 15 22 28 34
Subtotal Misc 1,827 2,145 2,300 2,454 2,580 2,838
Safety Employees
Safety Classic 2,034 2,411 2,589 2,761 2,902 3,212
Safety Tier 2 0 6 10 14 17 21
Safety PEPRA 11 28 41 53 65 66
Subtotal Safety 2,045 2,445 2,640 2,828 2,984 3,299
Total Unfunded Accrued Liability $3,872 $4,590 $4,940 $5,282 $5,564 $6,137 Personnel — Medical and Other Miscellaneous Benefits
Medical Insurance
The LTFP assumes that medical insurance premiums will increase by 6% annually. The City’s medical insurance premium cost increases from $1.8 million in FY 2023/2024 to $2.4 million in FY 2028/2029.

Other Miscellaneous Benefits
The LTFP assumes that other miscellaneous employee benefits, including workers’ compensation insurance, dental insurance, vision insurance, life insurance, and long-term disability insurance, increase by the forecasted rate of inflation. These expenditures are expected to grow by 3.0% annually on average.

Benefit Buybacks and Contributions to Retiree Health Savings Plan This category includes the payment to employees for their unused vacation and sick leave. It also includes reimbursement to past retirees, out of their unused sick leave balances, for medical premiums. (Note that the City eliminated this benefit during prior labor negotiations). The City has had several recent retirements of long-term staff (i.e. retirements of the former City Manager and Police Chief) has caused this expenditure to be high in recent years. Expenditures in this category are expected to grow from by

3.0% annually on average, from $474,000 in FY 2023/2024 to $558,000 in FY 2028/29.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 21 General Expenses
This category includes expenditures for postage, printing, memberships, and publications, as well as other miscellaneous expenditures. General expenses are expected to range from $775,000 in FY 2023/2024 to $898,000 in FY 2028/2029.

This category also includes the funding for economic development projects and programsthat have been approved by the Economic Development Committee. In the past, all economic development projects and programs were funded solely by the Redevelopment Agency. Since the Agency’s elimination in 2012, they are now funded by the City’s General Fund. The City is currently using American Rescue Plan Act (ARPA) funds to assist with these projects and programs the last couple of years. The City Council authorized $500,000 in ARPA funds to support local business after the pandemic.

Professional and Contract Services
This category includes expenditures for contractual specialized services such as legal, auditing, and contracted animal control services. The expenditures in this category are expected to grow by 3.0% annually on average, from $1.9 million in FY 2023/2024 to $2.3 million in FY 2028/2029.

Other — Conferences and Training
This category includes expenditures for conferences and training. Staff and elected officials normally receive training or attend conferences on topics such as conflicts of interest/ethics, sexual harassment, legislation impacting the City, and worker health and safety. The expenditures in this category are expected to grow by 3% annually on average, from $198,000 in FY 2023/2024 to $230,000 in FY 2028/2029.

Other — Maintenance and Repairs
This category includes expenditures for routine maintenance and capital maintenance of three City buildings: City Hall, the Police Department building, and the Public Services Center (corporation yard). (The contractor that operates the City’s fourth building, the downtown parking structure, is responsible for routine maintenance of that structure, while the City is responsible for capital maintenance.) Capital repairs to any of these buildings, such as the renovations proposed for the Police Department building would be listed in the next Capital Improvement Plan (CIP). The expenditures in this category are expected to grow by 3% annually on average, from $452,000 in FY 2023/2024 to $524,000 in FY 2028/2029.

Other — Supplies and Materials
This category includes expenditures for supplies and materials such as office supplies, landscape supplies, graffiti removal supplies, and expenditures for small tools. The expenditures in this category are expected to grow by 3% annually on average, from $382,000 in FY 2023/2024 to $442,000 in FY 2028/2029.

Other — Utilities
This category includes expenditures for utilities for City Hall, the Police Department building, and the Public Services Center. The expenditures in this category are expected to grow by 3% annually on average, from $475,000 in FY 2023/2024 to $550,000 in FY 2028/2029.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 22 Other — Insurance/Risk Management
The City is provided with insurance coverage through the Municipal Pooling Authority (MPA), a joint powers authority that is governed by a board of member municipalities. General liability (normal and excess coverage) has grown substantially over the last decade from $401,000 in FY 2013/14 to $1.0 million FY 2022/2023. The increase in the general liability premium has been driven from events beyond the City’s control. Insurance premiums have increased due to high settlement claims connected to public safety claims nationwide. Also, natural disasters from wildfires to floods have caused massive claims and insurance costs. These events have caused reinsurance costs to rise significantly since fewer carriers are willing to cover the losses, especially in California, since there is no tort reform. For purposes of the forecast, we are assuming these costs will increase by 3% annually based on recent premium estimate and average from $1.5 million in FY 2023/2024 to $1.7 million in FY 2028/2029. Worker’s compensation insurance is included in the Personnel- Medical and Other Miscellaneous Benefits category for the purpose of the LTFP. For purposes of the forecast, the assumption are these costs will increase by 3% annually on average from $673,000 in FY 2023/2024 to $792,000 in FY 2028/2029.

Other — Promotions and Contributions
This category includes funding of City Council grants for programs such as Meals on Wheels, Rogers Ranch, the Senior Nutrition Program at the Pleasant Hill Recreation and Park District, and other programs. The City is forecasting thatthese costs will average from $162,000 in FY 2023/2024 to $187,000 in FY 2028/2029.

Other — Fixed Assets
“Fixed assets” are long-lived assets that cannot easily be converted to cash, such as land, buildings, and equipment. The City uses this expenditure category to account for the purchase of furniture and equipment for the City’sfacilities. The expendituresin this category are expected to grow by 3% annually on average, from $29,000 in FY 2023/2024 to $34,000 in FY 2028/2029.

Other — Debt Service
This category covers expenditures for the payment of City debt. The City has one debt issue that is for the construction of the City Library, but this debt service is covered with Measure K funds which is discussed separately. The only current expense is a fiscal agent fee of approximately $2,000 annually.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 23 Other —Transfers to Other Funds
This category includes transfers from the City’s General Fund to other funds that specifically support information technology, vehicle replacement, Assessment District 20 and Assessment District 22, and capital projects for City Buildings. The most significant transfers are the following:
■ Approximately $1.2 million annually to the Police and Computer Technology Replacement Fund for information technology projects, as exhibited in the City’s Information Technology Plan, which can be found on the City’s website;
■ Approximately $200,000 annually to the Vehicle Replacement Fund for the maintenance and replacement of City vehicles and equipment;
■ Approximately $103,000 annually to the Commercial Landscape and Lighting District and Landscaping and Lighting District Assessment Fund for Assessment District 20 and Assessment District 22 maintenance activities; and
■ Approximately $100,000 annually to the Capital Projects Fund for capital projects for City buildings.

All of the transfers listed above are forecasted to increase by 3.0% annually. In total, the expenditures in this category are expected to grow from $1.6 million in FY 2023/2024 to $1.8 million in FY 2028/2029.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 24 Comparison/Balance of Moderate Scenario
Revenues and Expenditures
The tables below illustrate the surplus/deficit and ending fund balance that the City would experience over the next five and maintain current service levels, experience a moderate economic scenario, and not take any steps to rebalance its budget.

Five-Year Forecast
As seen in Table 10 below, if the City were to experience a moderate economic scenario, the City would need to balance the budget by using fund balance. Most revenues are projected to grow at the rate of inflation, however key expenditures including medical and pension unfunded liability are expected to grow faster. The fund balance is projected to decline from $12.6 million in FY 2023/2024 to -$2.4 million during FY 2028/2029.

Table 10. Moderate Scenario Five-Year Forecast

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Adopted Forecast Forecast Forecast Forecast Forecast
Revenues $30,607 $31,152 $32,102 $33,129 $34,193 $35,293 Expenditures $31,770 $33,425 $34,792 $36,141 $37,463 $39,113 (Deficit) ($1,163) ($2,273) ($2,690) ($3,012) ($3,270) ($3,820) Beginning Fund Balance $13,786 $12,623 $10,351 $7,661 $4,649 $1,379 Ending Fund Balance $12,623 $10,351 $7,661 $4,649 $1,379 ($2,442) CalPERS
Unfunded Actuarial Liability Forecast
The City’s largest growing expense is the unfunded pension liability. As stated previously, this amount will grow to over $6 million annually based on the current forecast by CalPERS. These amounts are subject to change pending on the investment returns earned by CalPERS. The following is the baseline estimate of the unfunded liability pension costs over the next 15 years. The chart below shows the amounts peaking in the early FY 2030’s and will significantly decline in FY 2037/2038.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 25 Chart 7. Long-term Unfunded Actuarial Liability Payment Participant Information
The City’s pension liability is relatively large to the overall General Fund budget, but it is also important to understand the participant data and the average benefit received by retirees. CalPERS is distribuint benefits to 131 Miscellaneous Retirees and 93 Safety Retirees which $33 thousand and $56 thousand, respectively. Additional information is shown in the tables and graphs below:

Table 11. Pension Participant Data
Participant Data June 30, 2021 June 30, 2022
Plans Active
Transfer
&
Separated Retired Total Active
Transfer
&
Separated Retired Total
Misc Tier I 30 55 122 207 21 52 130 203
Misc Tier II 8 10 0 18 14 10 0 24
Misc PEPRA 27 38 1 66 31 42 1 74
Safety Tier I 19 26 85 130 13 25 92 130
Safety Tier II 4 2 1 7 5 2 1 8
Safety PEPRA 19 11 0 30 21 11 0 32
Total 107 142 209 458 105 142 224 471
$3.87 $4.59 $4.94 $5.28 $5.56 $6.14 $5.89 $6.02 $6.14 $6.08 $6.01 $5.87 $5.63 $5.20 $3.49

0.00%

20.00%

40.00%

60.00%

80.00%
100.00%
$0.00
$2.00
$4.00
$6.00
$8.00
CalPERS Unfunded Actuarial Liability Payment
($ in millions)
UAL Payment Baseline Funded Ratio Baseline
City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 26 Table 12. Retiree Benefits Data
Retiree Benefits June 30, 2021 June 30, 2022
Plans Retired Avg Benefit Total Benefit Retired Avg Benefit Total Benefit Misc Tier I 122 $31,382 $3,828,648 130 $33,413 $4,343,650 Misc Tier II 0 $0 $0 0 $0 $0
Misc PEPRA 1 $4,871 $4,871 1 $4,969 $4,969
Safety Tier I 85 $52,938 $4,499,713 92 $56,217 $5,171,944 Safety Tier II 1 $8,347 $8,347 1 $8,514 $8,514
Safety PEPRA 0 $0 $0 0 $0 $0
Chart 8. Retiree Benefits Data
122
0 1
85 1 0
130
0 1
92 1 0
$31,382
$0
$4,871
$52,938
$8,347
$0
$33,413
$0
$4,969
$56,217
$8,514
$0 0
20 40
60 80
100
120
140
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Misc Tier I Misc Tier II Misc PEPRA Safety Tier I Safety Tier II Safety PEPRA Retiree Benefits
June 30, 2021 Retired June 30, 2022 Retired June 30, 2021 Avg Benefit June 30, 2022 Avg Benefit City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 27 Optimistic and Pessimistic Scenario
Revenues and Expenditures
The revenue and expenditure forecasts shown above assume that there will be a moderate economic climate, which represents a modest, steady economic expansion. Below are forecasts for optimistic and pessimistic economic climates, the purpose of which is to provide a sense of a full range of budget situations that the City could face.

Optimistic and Pessimistic Scenario Assumptions
Table 12 below summarizes the major assumptions of the optimistic, moderate, and pessimistic scenarios. The optimistic scenario represents a slightly stronger economic expansion, whereas the pessimistic scenario represents an economic slowdown.

Table 13. Optimistic, Moderate, and Pessimistic Scenario Revenue and Expenditure Assumptions

REVENUE OPTIMISTIC

SCENARIO

MODERATE SCENARIO PESSIMISTIC

SCENARIO
Property Tax and
Property Tax In-Lieu
Assumes an increase of 1%
annually on moderate
scenario.

Property tax forecast is based on projections
provided by the City's property tax
consultant HdL Coren & Cone. Revenues are
forecast to grow 3.59% - 4.59% average
annually.

Assumes a reduction of
1% annually on
moderate scenario.

Sales Tax
Assumes an increase of
1% annually on moderate
scenario.

Sales tax forecast is based on projections
provided by both the City’s sales tax
consultant, HdL Companies and Economic
Development Manager. Revenues are
forecasted to grow between 2.5% to 3.5%
annually).

Assumes a reduction of
1% annually on
moderate scenario.

Transient
Occupancy Tax (TOT)
Assumes a 4% annual
increase in TOT
generally.

2.0% annual increase in TOT generally. In
fiscal 2019, TOT revenue was $2.5 million
(pre-COVID), and a new hotel had just
opened. The projection at that time was $3.0
million. TOT dropped to $1.6 million in fiscal
2021 and has been around $2.2 million that
the last couple of years.

Assumes 1.0% annual
increase in TOT
generally. Same
assumption as moderate
scenario regarding
HiltonHomewood Suites
and the TID.

Business License Tax 3.5% annual increase. 3% annual increase. 2.5% annual increase.

Other Revenue 3.5% average annual
increase. 3.0% average annual increase. 2.5% average annual increase.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 28 EXPENDITURES OPTIMISTIC

SCENARIO

MODERATE SCENARIO PESSIMISTIC

SCENARIO
Personnel – Salaries Assumes 3% increase
after year 3.

3.25% average annual increase for years 1 and 2,

3.5% for year 3 based on MOUs, assume 3.25% for
out years.

Assumes 4.0% for years
after year 3.

Personnel –
Retirement Benefits
Same as moderate
scenario.

Mostrecent actuarial information from the
California Public Employees' Retirement System
(CalPERS).

Same as moderate
scenario.

Personnel –
Medical and Other
Miscellaneous
Benefits
Same as moderate
scenario.

6.0% annual increase in medical benefits costs.

3.0% annual increase in most other
miscellaneous benefits.

Same as moderate
scenario.

Operations and
Maintenance
Expenses

2.5% average annual
increase. 3.0% average annual increase. 3.5% average annual increase.

Transfersto
Other Funds

2.5% average annual
increase. 3.0% average annual increase. 3.5% average annual increase.

Vacancy
Rate

5.0% of personnel costs,
which is approximately
$1.0M
The City has historically assumed full employment
based on authorized full-time equivalents by the
City Council. Vacancies are not assumed but occur
due to retirements and/or career changes. This is
currently assumed at 3% of personnel costs which
is approximately $600 thousand.

1.5% of personnel costs,
which is approximately
$300 thousand.

Optimistic Scenario Forecast
Based on the assumptionslisted above, Table 13 below containsthe optimistic scenario revenue forecast and Table 14 below contains the optimistic scenario expenditure forecast.

Table 14. Moderate Scenario Five-Year Forecast
REVENUES ($)

THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
Property Tax $8,647 $9,095 $9,472 $9,901 $10,350 $10,818 Sales Tax $10,550 10,979 11,258 11,553 11,857 12,171
Transient Occupancy
Tax (TOT) $2,215 2,305 2,351 2,398 2,446 2,495
Franchise Tax $2,370 2,453 2,527 2,603 2,680 2,761
Other Taxes and
Assessments $3,369 3,479 3,575 3,674 3,777 3,881
Licenses and Permits $1,655 1,272 1,311 1,350 1,391 1,432 Use of Money and
Property $524 543 559 576 593 610
Other-Revenue $583 597 608 619 630 642
Charges for Services $539 558 575 592 609 628
Transfers from Other
Funds $155 160 164 169 174 180
Total Revenues $30,607 $31,441 $32,400 $33,435 $34,507 $35,618 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 29 Table 15. Optimistic Scenario Expenditure Forecast

EXPENDITURES AND USES
($) THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
On-Going Expenditures
Salaries $14,996 $15,444 $15,985 $16,505 $17,041 $17,595 Benefits 9,455 5,812 6,064 6,315 6,578 6,855
Benefits UAL 474 4,591 4,939 5,250 5,470 5,950
Benefit Buybacks & Contributions
to RHS 775 489 507 523 540 558
General Expenses 1,941 794 818 843 868 894
Professional and Contract Services 198 1,989 2,049 2,110 2,173 2,239 Conferences & Training 452 203 209 215 222 229
Maintenance & Repair 382 464 478 492 506 521
Supplies & Materials 475 391 403 415 427 440
Utilities 1,475 487 501 516 531 547
Insurance 162 1,511 1,557 1,604 1,652 1,701
Promotions & Contributions 29 165 170 176 181 186
Fixed Assets 1,556 30 31 32 33 34
Transfers to Other Funds 2 1,602 1,650 1,700 1,751 1,804 Debt Service (600) 2 2 2 2 2
Attrition (1,000) (1,030) (1,061) (1,093) (1,126) (1,159) Total Expenditures and Uses $30,772 $32,944 $34,302 $35,605 $36,849 $38,396 Given the revenues and expenditures forecasted under the optimistic scenario, Table 15 below illustrates the resulting General Fund deficits and ending fund balance. Estimates for FY 2023/24–2027/28 assume

3.5% annual growth rate for revenues and expenditures.

Table 16: Optimistic Scenario Five-Year Forecast

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Adopted Forecast Forecast Forecast Forecast Forecast
Revenues $30,607 $31,441 $32,400 $33,435 $34,507 $35,618 Expenditures $30,298 $32,944 $34,302 $35,605 $36,849 $38,396 (Deficit) $309 ($1,503) ($1,902) ($2,170) ($2,342) ($2,778) Beginning Fund Balance $13,786 $14,095 $12,592 $10,690 $8,520 $6,177 Ending Fund Balance $14,095 $12,592 $10,690 $8,520 $6,177 $3,399 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 30 Pessimistic Scenario Forecast
Based on the assumptions listed above, Table 16 below contains the pessimistic scenario revenue forecast and Table 17 below contains the pessimistic scenario expenditure forecast.

Table 17. Pessimistic Scenario Revenue Forecast
REVENUES ($)

THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
Property Tax $8,647 $8,915 $9,284 $9,705 $10,146 $10,604 Sales Tax $10,550 10,761 11,036 11,325 11,623 11,930
Transient Occupancy
Tax (TOT) $2,215 2,237 2,282 2,327 2,374 2,422
Franchise Tax $2,370 2,429 2,501 2,577 2,654 2,733
Other Taxes and
Assessments $3,369 3,445 3,539 3,638 3,739 3,843
Licenses and Permits $1,655 1,260 1,297 1,336 1,377 1,418 Use of Money and
Property $524 537 553 570 587 604
Other-Revenue $583 591 602 613 624 636
Charges for Services $539 552 569 586 603 622
Transfers from Other
Funds $155 160 164 169 174 180
Total Revenues $30,607 $30,887 $31,827 $32,846 $33,901 $34,992 City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 31 Table 18. Pessimistic Scenario Expenditure Forecast

EXPENDITURES AND USES
($) THOUSANDS
FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29
Estimate Forecast Forecast Forecast Forecast Forecast
On-Going Expenditures
Salaries $14,996 $15,599 $16,145 $16,670 $17,212 $17,771 Benefits 5,583 5,812 6,064 6,315 6,578 6,855
Benefits UAL 3,872 4,591 4,939 5,280 5,600 6,230
Benefit Buybacks &
Contributions to RHS 474 489 507 523 540 558
General Expenses 775 802 826 851 876 902
Professional and Contract
Services 1,941 2,009 2,069 2,132 2,195 2,261
Conferences & Training 198 205 211 217 224 231
Maintenance & Repair 452 468 482 496 512 527
Supplies & Materials 382 395 407 419 431 444
Utilities 475 491 507 522 537 553
Insurance 1,475 1,527 1,573 1,620 1,668 1,719
Promotions & Contributions 162 167 172 178 183 188
Fixed Assets 29 30 31 32 33 34
Transfers to Other Funds 1,556 1,610 1,658 1,709 1,760 1,813 Debt Service 2 2 2 2 2 2
Attrition (300) (309) (318) (328) (338) (348)
Total Expenditures and Uses $32,072 $33,888 $35,275 $36,638 $38,013 $39,740 Given the revenues and expenditures forecasted under the pessimistic scenario, Table 18 below illustrates the resulting General Fund deficits and ending fund balance. Estimates for FY 2023/24-2027/28 assume 2.5% annual growth rate for revenues and expenditures.

Table 19. Pessimistic Scenario Five -Year Forecast

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Adopted Forecast Forecast Forecast Forecast Forecast
Revenues $30,607 $30,887 $31,827 $32,846 $33,901 $34,992 Expenditures $32,072 $33,888 $35,275 $36,638 $38,013 $39,740 (Deficit) ($1,465) ($3,001) ($3,448) ($3,792) ($4,112) ($4,748) Beginning Fund Balance $13,786 $12,321 $9,320 $5,872 $2,080 ($2,032) Ending Fund Balance $12,321 $9,320 $5,872 $2,080 ($2,032) ($6,780) City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 32 PAGE INTENTIONALLY BLANK.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 33 Revenue and Expenditure Balancing Options
As described above, the City is forecasting a declining General Fund balance budget over the five- and ten-year planning period if it experiences moderate economic conditions and funds current service levels. Should the City find itself in a position needing to adjust revenues and/or expenditures to maintain a balanced budget in the future, below are some options for consideration.

Revenue
Continue to Aggressively Seek Regional, State, and Federal Funding The City has been very successful in obtaining regional, State, and federal funding for capital projects, particularly related to transportation. The City should continue to seek additional funding from these sources and consider opportunities to be more aggressive in pursuing new funding types.

Update Fees and Cost Allocation to Special Revenue Funds The General Fund comprises the majority of the City’s total budget. The City nonetheless has significant non-General Fund accounts, particularly those related to regional, State, and federal funding for capital projects. It is now an appropriate time forthe City to conduct a thorough costrecovery analysisrelated to fees and a cost allocation plan related to overhead expenses and special revenue funds. Such an analysis and plan would likely indicate that the City’sfees could be increased to more fully recover the City’s costs to provide targeted services and that a larger portion of certain City costs that are currently paid for out of the General Fund could more appropriately be paid by special revenue funds.

Revenue Enhancements
The City could consider additional revenue enhancements such as a parcel tax, property transfer tax, or sales tax in the short to medium term to provide services at current levels. Any possible tax increase would require additional steps and placed on the ballot for voters to decide.

Expenditure
The City has historically demonstrated prudent cost containment in its operations. Should the City be in a position of needing to reduce expenditures in the future, a number of options are available, some of which are described below.

Insource and Outsource Opportunities
The City has periodically analyzed whether costs or quality could be improved by insourcing or outsourcing different operations. City staff believes that the current insourcing and outsourcing arrangements provide the best combination of value and quality and will continue to evaluate new opportunities that arise.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 34 Modify Service Levels
The City’s current service levels have been set by the City Council based on community priorities and expectations and available resources. The City Council continuously monitors community priorities and embodies them in the City Council goals and the biennial budget. The City Council could, in response to changes in priorities or available resources, modify City service levels, which could result in reduced expenditures.

Increase Cost Sharing for Employee Benefits
The salaries and benefits of City employees represent approximately 63% of the City’s General Fund budget (not including CalPERS Unfunded Actuarial Liability payments). The City’s General Fund contribution in the FY 2023/2024 budget toward employee benefits is $6.1 million which is 19% of total General Fund expenditures, respectively. The City did recently reach agreements with all of the bargaining groups through FY 2025/2026. The City can negotiate for increased employee contributions toward retirement and medical benefits or reduced medical benefits through employee labor agreement negotiations. City employees have paid an increasing amount for their retirement and medical benefits over time, and the benefits have also been reduced over time. Nonetheless, given the significant amount that the City continues to contribute for these benefits, increasing employee contributions to retirement and medical benefits is an option to explore for future expenditure reductions if necessary.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 35 Measure K Fund Forecast
Measure K, a half-cent transactions & use tax (or sales tax), was approved by Pleasant Hill voters at the November 8, 2016 election. The tax took effect April 1, 2017 for a 20-year period. The measure will generate over $4 million each year in additional revenue for the City.

This additional revenue will be used for important City services including:
• Repaving and maintaining neighborhood streets
• Maintaining and upgrading the City’s storm drains
• Adding new sidewalks, and walking and bike paths
• Constructing a new community library; and
• Funding other city projects and services that Pleasant Hill residents and the City Council identify as key priorities.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 36 Table 20: Measure K Fund

MEASURE K FUND
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Estimate Forecast Forecast Forecast Forecast Forecast
BEGINNING FUND BALANCE $4,458 $3,145 $3,145 $3,145 $3,145 $3,145

REVENUES
TRANSACTIONS USE TAX 5,435 5,623 5,764 5,914 6,068 6,226 INTEREST INCOME 21 21 22 23 24 25
TRANSFER-IN 0 440 0 0 0 0
TOTAL REVENUES 5,456 6,084 5,786 5,937 6,092 6,251

EXPENDITURES
LIBRARY PROJECT 455 30 35 0 0 0
LIBRARY OPERATIONS AND MAINTENANCE 373 694 714 735 757 780 ADMINISTRATION 8 8 8 8 8 8
DEBT SERVICE 2,492 2,492 2,492 2,492 2,492 2,492

TRANSFER-OUT
STREETS AND ROADS 2,584 1,110 1,901 2,027 2,126 2,228
STORM DRAIN IMPROVEMENT 518 0 380 405 425 446
PEDESTRIAN AND BICYCLE 339 0 256 270 284 297
CITY PROJECTS 0 1,750 0 0 0 0
TOTAL EXPENSES 6,769 6,084 5,786 5,937 6,092 6,251
REVENUES LESS (EXPENDITURES) (1,313) 0 0 0 0 0
ENDING FUND BALANCE $3,145 $3,145 $3,145 $3,145 $3,145 $3,145 The City Council issued $26.4 million in private placement debt issue with Bank of Montreal (formerly Bank of the West) to construct the library. The City Council established a reserve for Measure K funds consisting of a $2.5 million debt reserve (Resolution 13-23) and an annual $75K library facility reserve (FY 2022/2023 – FY2023/2024 Biennial Budget). The final debt service payment is on June 1, 2032.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 37 City Assets and Liabilities
The LTFP focuses primarily on the City’s budget, which presents its projected annual income (revenue) and expenses (expenditures) for a set period of time. The LTFP also considers long-term assets and liabilities if the assets yield income or the liabilities become due during the forecast period.

Over the five- and ten-year planning horizon of the LTFP, the City expects that the value of its assets will increase significantly,specifically the value of its capital assets, primarily due to improvementsfunded by Measure K (including the new library building) and SB 1 (local road improvements).

As of FY 2023/2024, the City’s only debt is the for the construction of the new library for $26.4 million but funded by Measure K. The City also does not have any “other post-employment benefit” (OPEB) liability because it does not provide a retiree medical benefit to employees.

The City does have one significant unfunded liability, an employee pension benefit liability with CalPERS.

The City has taken steps to reduce its unfunded pension liability, but demographic changes and new policies at CalPERS intended to strengthen the financial position of the system are driving pension liability and required City contributions higher, and the City expects that trend to continue over the coming decade. Although the City will eventually pay off its unfunded pension liability by continuing to make required annual contributions to CalPERS, this liability is the City’s largest, and requires continuous monitoring and funding opportunities (i.e. Section 115 Pension Trust).

One way to evaluate the overall financial strength of the City, including consideration of assets and liabilities, is to look at the City’s bond rating. A bond rating assesses an organization’s ability to repay debt and is also used as a broad indicator of an organization’s financial health. The City’s Pleasant Hill Joint Powers Financing Authority debt received an AA rating from Standard & Poor’s, which means the obligor’s capacity to meet its financial commitments is very strong. The City expects to retain a strong rating in the future based on the findings of the LTFP.

The City’s Annual Comprehensive Financial Report (ACFR), which is published following the end of each fiscal year and can be found on the City’s website, contains a thorough discussion of the City’s short- and long-term assets and liabilities.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 38 PAGE INTENTIONALLY BLANK.

City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 39 Summary and Next Steps
The City has been on solid budgetary footing, but unfunded pension liability is outpacing revenue growth. Based on the LTFP assumptions, it is unlikely that the City will be able to provide the current service levels without revenue enhancements and/or modification of service. Measure K discussed above has assisted the City fund the construction of the library, infrastructure repair and replacement, and facility improvements but not ongoing operational service needs. The LTFP will be used as a guide when making operational and financial decisions. City staff intendsto update the LTFP next year with the adoption of the City’s Biennial Budget and on a periodic basis going forward.

The following table shows the summary revenue and expenditures from the Executive Summary to illustrate the costs of the unfunded pension costs.

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Adopted Forecast Forecast Forecast Forecast Forecast
Revenues $30,607 $31,152 $32,102 $33,129 $34,193 $35,293 Expenditures (not including UAL
expense) $27,898 $28,835 $29,852 $30,859 $31,899 $32,976 Surplus $2,709 $2,317 $2,250 $2,270 $2,294 $2,317
UAL Expenditures $3,872 $4,590 $4,940 $5,282 $5,564 $6,137 (Deficit) ($1,163) ($2,273) ($2,690) ($3,012) ($3,270) ($3,820) Beginning Fund Balance $13,786 $12,623 $10,351 $7,661 $4,649 $1,379 Ending Fund Balance $12,623 $10,351 $7,661 $4,649 $1,379 ($2,442) UPDATE:

The Budget Committee requested an update on estimates for FY 23/24 at the April 2024 meeting.

The decrease in estimated expenditures reflects salary savings from vacancies in the City Manager Department ($350K), City Clerk Division ($83K), and Police Department ($601K). The following table reflects the most current information as of May 2024:

GENERAL FUND
($) THOUSANDS
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29
Revised Estimate Forecast Forecast Forecast Forecast Forecast Revenues $30,426 $31,152 $32,102 $33,129 $34,193 $35,293 Expenditures (not including
UAL expense) $26,640 $28,835 $29,852 $30,859 $31,899 $32,976 Surplus $3,786 $2,317 $2,250 $2,270 $2,294 $2,317
UAL Expenditures $3,872 $4,590 $4,940 $5,282 $5,564 $6,137 (Deficit) ($86) ($2,273) ($2,690) ($3,012) ($3,270) ($3,820) Beginning Fund Balance $13,786 $13,700 $11,428 $8,738 $5,726 $2,455 Ending Fund Balance $13,700 $11,428 $8,738 $5,726 $2,455 ($1,365) City of Pleasant Hill Long-Term Financial Plan Fiscal Year 2024/2025 Through 2028/2029 40 PAGE INTENTIONALLY BLANK.
41 City of Pleasant Hill Long-Term Financial Plan Appendices Appendices
Appendix A — General Fund Reserve Policy
Appendix B — Chart of Positions
City of Pleasant Hill Long-Term Financial Plan
Appendices 42
Appendix A – General Fund Reserve Policy
Appendix A – General Fund Reserve Policy
Appendix A
City of Pleasant Hill Long-Term Financial Plan
Appendices 43
Appendix A – General Fund Reserve Policy
Appendix A – General Fund Reserve Policy
City of Pleasant Hill Long-Term Financial Plan
Appendices 44
Appendix A – General Fund Reserve Policy
Appendix A – General Fund Reserve Policy
City of Pleasant Hill Long-Term Financial Plan Appendix B – Chart of Positions 45 Appendix B — Chart of Positions
POSITION FY 2022/2023 FY 2023/2024

CITY COUNCIL
City Council 5.00 5.00
Administrative Analyst I
1 0.12 0.12
Total 5.12 5.12

CITY MANAGER DEPARTMENT
City Manager2 0.90 0.90
Assistant City Manager3 0.85 0.85
Economic Development Manager 1.00 1.00
Public Information Officer4 1.00 1.00
Principal Management Analyst5 0.85 0.85
Administrative Analyst I
1 0.88 0.88
Human Resources Analyst6 0.10 0.10
Office Assistant I 0.50 0.50
City Clerk Recorder 1.00 1.00
Total 7.08 7.08

CITY ATTORNEY DEPARTMENT
City Attorney7
Human Resources Analyst6 0.20 0.20
Total 0.20 0.20

CITY TREASURER DEPARTMENT
City Treasurer 1.00 1.00
Total 1.00 1.00

INFORMATION TECHNOLOGY DEPARTMENT
Chief Technology Officer 1.00 1.00
Information Technology Coordinator8 0.10 0.10
Information Technology Specialist 1.00 1.00
Total 2.10 2.10
City of Pleasant Hill Long-Term Financial Plan Appendix B – Chart of Positions 46 POSITION FY 2022/2023 FY 2023/2024

FINANCE DEPARTMENT
Finance Manager9 0.90 0.90
Accountant10 0.90 0.90
Payroll Technician 1.00 1.00
Accounting Technician (I/II) 14 3.00 3.00
Total 5.80 5.80

HUMAN RESOURCES DEPARTMENT
Human Resources Manager 1.00 1.00
Human Resources Technician 1.00 1.00
Human Resources Analyst 0.70 0.70
Total 2.70 2.70

COMMUNITY DEVELOPMENT DEPARTMENT

BUILDING DIVISION
Chief Building Official 1.00 1.00
Building Inspector 2.00 2.00
Permit Technician 1.00 1.00
Administrative Specialist 1.00 1.00
Total 5.00 5.00

ENGINEERING DIVISION
City Engineer 1.00 1.00
Senior Civil Engineer14 3.00 3.00
Assistant Engineer 1.00 1.00
Construction Inspector 1.00 1.00
Administrative Specialist 1.00 1.00
Administrative Secretary12 1.00 1.00
Total 8.00 8.00
47 City of Pleasant Hill Long-Term Financial Plan Appendix B – Chart of Positions POSITION FY 2022/2023 FY 2023/2024

PLANNING DIVISION
City Planner13 0.95 0.95
Senior Planner 1.00 1.00
Associate Planner14 2.00 2.00
Assistant Planner 1.00 1.00
City Code Investigator11 0.93 0.93
Administrative Specialist14 1.00 1.00
Total 6.88 6.88

MAINTENANCE DEPARTMENT
Maintenance Superintendent4 0.25 0.25
Maintenance Supervisor14 1.00 1.00
Maintenance Worker II 9.00 9.00
Maintenance Worker I 4.00 4.00
Fleet Services Coordinator 1.00 1.00
Building Trades Worker 2.00 2.00
Administrative Specialist 1.00 1.00
Total 18.25 18.25
48 City of Pleasant Hill Long-Term Financial Plan Appendix B – Chart of Positions POSITION FY 2022/2023 FY 2023/2024

POLICE DEPARTMENT
Police Chief 1.00 1.00
Police Captain 1.00 1.00
Police Lieutenant 2.00 2.00
Sergeant 6.00 6.00
Corporal 5.00 5.00
Police Officer14 29.00 29.00
Dispatcher I 6.00 6.00
Dispatcher II 4.00 4.00
Dispatch Supervisor 1.00 1.00
Community Services Officer II 1.00 1.00
Community Service Officer I
14 1.00 1.00
Executive Assistant to the Chief 1.00 1.00
School Resource Officer 0.50 0.50
Administrative Specialist 1.00 1.00
Support Services Supervisor 1.00 1.00
Information Technology Coordinator8,14 0.90 0.90
Total 61.00 61.00
Other Funds 3.53 3.53
GRAND TOTAL 125.00 125.00
Note: Fractional staff numbers due to certain positions being allocated among multiple departments 1 Allocated to City Council, Economic Development, and City Manager Departments 2 Also allocated 0.10 to the Successor Agency (Other Funds) 3 Also allocated 0.15 to the Successor Agency (Other Funds) 4 Also allocated 0.25 to the Waste Management Fund and 0.50 to the Gas Tax Fund (Other Funds) 5 Also allocated 0.15 to the Housing Successor Agency (Other Funds) 6 Allocated to City Manager and City Attorney Departments and Human Resources Division 7 Hired on a contractual basis
8 Allocated to Computer Services Division and Police Department 9 Also allocated 0.10 to Successor Agency (Other Funds) 10 Also allocated 0.10 to Successor Agency (Other Funds) 11 Allocated 0.0.7 to Vehicle Abatement (Other Funds)
12 Permanent Part Time pensionable position
13 Allocated 0.05 to the Housing Successor Agency (Other Funds) 14 Frozen one budgeted position which maybe unfrozen if increase in revenues/or reduction in expenditures to offset salaries and benefits 49 City of Pleasant Hill Long-Term Financial Plan Appendix B – Chart of Positions PAGE INTENTIONALLY BLANK.