Exhibit A
City of Point Arena
Fiscal Year
2022-2023
Proposed
Budget
June 28, 2022
CITY OF POINT ARENA
451 School St. | PO Box 67 | Point Arena, CA 95468
(707) 882-2122 | pointarena.ca.gov
June 28, 2022
Honorable Members of the Point Arena City Council and Residents of Point Arena, Attached is the Proposed Fiscal Year 2022/23 Operating Budget for the City of Point Arena. This document represents the projected revenues that will be received by the city and the projected expenditures for conducting day-to-day operations and providing capital expenditures for the period of July 1, 2022 through June 30, 2023. The goal of developing this proposed budget was to produce a balanced financial plan retaining current service levels and addressing capital needs for residents of the City. I believe that goal has been achieved.
During the 2021/22 fiscal year, the City completed nearly $2 million in infrastructure repairs and upgrades at the Arena Cove parking lot and on Mill and Center Streets. These were once-in-ageneration projects that have improved the quality of life for residents and visitors. The figures used to review 2021/22 revenues and expenditures do not include the last two weeks of the fiscal year and only include partial reimbursements for capital projects. A final reconciliation of FY 2021/22 will be presented no later than the August 23 City Council meeting.
I’m happy to report that the City of Point Arena is the beneficiary of $165,080 in one-time unrestricted grant funding for the coming fiscal year. This funding arrives at an opportune time for needed repairs and replacement of capital equipment, vehicles, and infrastructure. City staff have made recommendations for expenditure of those funds to enhance and modernize core city services. More detail is provided further in this document.
Revenues to the City are projected to increase in the 2022/23 fiscal year, with Transit Occupancy Tax revenue now approaching nearly $200,000, by far the largest revenue generator for the City.
The return of Harborfest will provide much-needed funding for the rehabilitation of Point Arena Pier. These positive developments are tempered, however, by escalating prices and the potential for an economic recession that would negatively impact visitor-serving businesses.
I want to express my appreciation to the City Council for their leadership and guidance; to all our employees for their ongoing efforts to provide high-quality public services; and to all our residents for their civic participation and efforts to improve our community.
Sincerely,
Paul Andersen
City Manager
2 of 25 06/27/2022
CITY OF POINT ARENA, CALIFORNIA
PRELIMINARY 2022-23 OPERATING BUDGET
2021-22 Final
Budget
6/30/22 Estimated
Actuals
$ Change from
Adopted
% Change
from
Adopted
2022-23 Proposed
Budget
General Fund
General Revenues 414,800 527,146 112,346 27% 525,000
Planning Revenues 40,000 21,830 (18,170) -45% 21,830
COPS Funding 157,000 212,434 55,434 35% 200,000
Recycling Grant 5,000 5,000 - 0% 5,000
BLM Reimbursements 4,000 4,924 924 23% 5,000
Used Oil
Revenues 5,000 5,000 - 0% 5,000
Gas Tax Fund
Revenues 85,983 101,724 15,741 18% 95,000
Revolving Loan Fund
Revenues 16,000 12,158 (3,842) -24% 13,000
Total Governmental Funds 727,783 890,216 162,433 869,830 WWTP
Sewer Fees - Operations 219,000 300,824 81,824 37% 300,824 Sewer Fees - Capital 54,000 606 (53,394) -99% 606
Connection Fees 8,800 - (8,800) n/a -
Interest 395 134 (261) -66% 134
Pier
Fees & Services 43,400 41,104 (2,296) -5% 41,104
Storm Damage Grants - 17,314 17,314 17,314
Total Proprietary Funds 325,595 359,982 34,387 359,982
Total All Funds $ 1,053,378.00 $ 1,250,198.00 $ 196,820.00 $ 1,229,812.00 3 of 25 06/27/2022
FY 2022/2022 PROJECTED REVENUES
GENERAL FUND
Point Arena’s General Fund is reliant on sales tax, property tax, Transient Occupancy Tax (TOT), fees for services, and grants. General Fund revenues are expected to increase in FY 2022/23, with total annual revenue projected at $475,000.
$-
$20,000
$40,000
$60,000
$80,000
$100,000
Sales Tax - General
General Fund Sales & Use Tax
2017-2022
17-18 18-19 19-20
20-21 21-22 Est. 22-23 Proposed
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Transient Occupancy Tax
Transit Occupancy Tax 2017-
2022
17-18 18-19 19-20
20-21 21-22 Est. 22-23 Proposed
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Property Tax
Property Tax FY 2017-2022
17-18 18-19 19-20
20-21 21-22 Est. 22-23 Proposed
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Cannabis Excise Tax
Cannabis Excise Tax 2017-2022
17-18 18-19 19-20
20-21 21-22 Est. 22-23 Proposed
4 of 25 06/27/2022
SALES TAX
The Sales Tax category includes general sales and use taxes. Sales tax is an excise tax that applies to all retail sales of merchandise. Retailers are liable for reporting and payment of the tax. Use tax is an excise tax imposed on consumers of merchandise used, consumed, or stored in California and purchased from out-of-state vendors not collecting California sales tax. The statewide sales and use tax rate is 7.25%, of which the State receives 6.25%, and the City receives 1% (known as the Bradley Burns Local Sales and Use Tax).
The current sales tax rate in Point Arena is 8.375%, which is the lowest tax rate among Mendocino County’s four cities. It includes the following city and county taxes as follows:
• 1/2 cent – City of Point Arena “Pothole Tax”
• 1/8 cent – Library funding tax
• 3/8 cent – Measure B Mental Health funding tax
The pandemic certainly had an impact on sales tax revenues, with revenues down roughly 40%. The sales tax rate has begun to swing upward, but likely will not reach earlier levels for another couple of years. One important factor will be the role of inflation on sales tax revenue. One might surmise that the increase in the cost of goods would increase the amount of sales tax generated. However, the cost of gasoline is fixed and most groceries are not subject to sales tax.
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Sales Tax - General
General Fund Sales & Use Tax 2017-2022
17-18 18-19 19-20 20-21 21-22 Est. 22-23 Proposed
5 of 25 06/27/2022
TRANSIT OCCUPANCY TAX
Transit Occupancy Tax is the largest contributor to the General Fund. It suffered a decrease in the 19-20 budget year due to the pandemic which prevented travel. It surpassed previous levels in 20-21 as travel opened up and the Wildflower Boutique Motel opened.
For the 21-22 year, TOT nearly doubled as people began to feel comfortable traveling again. As reported by Visit Mendocino, “unlike many other California destinations, the rebound from the Shelter-in-Place (SIP) order in Mendocino County was fast and furious, ending the FY with massive gains in Transient Occupancy Tax (TOT).” There is concern that increased gas prices and inflation may put a damper on travel in the coming fiscal year.
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Transient Occupancy Tax
Transit Occupancy Tax 2017-2022
17-18 18-19 19-20 20-21 21-22 Est. 22-23 Proposed
6 of 25 06/27/2022
PROPERTY TAX
Property tax is a value-based tax imposed on real property and tangible personal property within the City’s jurisdiction. It includes two major elements: secured or real property (such as house and land on which the house was built), and unsecured or personal property (such as machinery).
Under Proposition 13, the general property tax rate cannot exceed 1% of a property’s assessed value plus other assessments as approved by the voters. The assessed value of real property that has not changed ownership increases by the California Consumer Price index change up to a maximum of 2% per year. Property is assessed at the full market value upon change of ownership. Newly constructed property is assessed at the full market value in the first year in which the construction is completed. Property tax revenue is collected by the county and allocated according to State law among cities, counties, school districts, and special districts.
Property tax has increased in Point Arena, largely due to the significant turnover in residential and commercial properties. Properties that had not changed hands for a significant period of time have seen property tax valuations escalate. That has increased the amount of property tax revenue accruing to the City of Point Arena. $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Property Tax
Property Tax FY 2017-2022
17-18 18-19 19-20 20-21 21-22 Est. 22-23 Proposed
7 of 25 06/27/2022
CANNABIS EXCISE TAX
The City of Point Arena has a 7% tax on recreational cannabis and a 3% tax on medical cannabis. Since the opening of the Green Room in 2016, taxes hovered at the $30,000 range, which contributed approximately xx% of general fund revenue.
With the recent closure of The Green Room, the City does not expect any cannabis tax revenue for FY 2022-23. In fact, the current owners have failed to pay their quarterly remittance for the past two quarters and the check for the quarter before-hand was returned for insufficient funds. All told, it is estimated that approximately $17,500 in taxes are owed. The City is in the process of trying to recoup those funds. $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Cannabis Excise Tax
Cannabis Excise Tax 2017-2022
17-18 18-19 19-20 20-21 21-22 Est. 22-23 Proposed
8 of 25 06/27/2022
FEES FOR SERVICES
Business license fees, franchise fees and planning fees also contribute to General Fund revenues.
The city collects approximately $14,000 in fees from Recology, PG&E and CalTrans. The maintenance contract with CalTrans is very outdated and should be renegotiated in the coming year. The waste hauler’s franchise is set to expire in 2025.
Business license fees have fluctuated due to the pandemic. It is not anticipated that these fees will recover soon; the license fee for The Green Room alone was $2500 which will not accrue to the city’s revenues in FY 22-23. The City will pursue an aggressive business license campaign at the beginning of the year and staff have identified several distributors who are not paying license fees while regularly servicing Point Arena.
Planning fees are charged on a cost-recovery basis. This past fiscal year saw several CDP applications filed with the required fees for processing. It is expected those funds will be utilized in 22-23 fiscal year as the applications are processed. The intent of cost recovery is to cover the costs of planning in processing CDP applications.
BLM REIMBURSEMENT
The City has a maintenance contract with the Bureau of Land Management to maintain the parking lot and visitor kiosk and perform maintenance duties on the Lands as requested. The 21-22 fiscal year was the last year of the contract and staff is working with BLM to extend the contract another five years.
COPS
The Citizens Option for Public Safety (COPS) program is utilized to contract for policing services in Point Arena. The contract is worth $100,000, of which the funding is covered by the grant program. The contract is up for review in the 22-23 fiscal year.
RECYCLING GRANTS
The City receives $5,000 annually for maintenance of the recycling facility at Arena Cove.
In past years the cost to the City has been about 50% higher than the grant. In the 21- 22, the City was able to reduce the expense for the facility by roughly half due to staff turnover and tighter control on the number of hours expended. 9 of 25 06/27/2022
The City also receives $5,000 annually for maintenance of a Waste Oil Program. In past years, cost of the program has been approximately 25% higher than the grant. The City continues to work on reducing staff expense for the program.
The City received a $20,000 grant to implement provisions of a recent organic recycling program. Staff is exploring ways to utilize the program. 10 of 25 06/27/2022
CITY OF POINT ARENA, CALIFORNIA
PRELIMINARY 2022-23 OPERATING BUDGET
2021-22 Final
Budget
6/30/22 Estimated
Actuals
$ Change from
Adopted
% Change
from
Adopted
2022-23 Proposed
Budget
General Fund
Administration Costs 319,376 338,370 18,994 6% 340,000
Legislative Costs 24,059 22,056 (2,003) -8% 23,000
Planning Costs 50,200 48,056 (2,144) -4% 50,000
Public Safety Costs 106,388 116,712 10,324 10% 120,000
Recycling Costs 8,100 3,062 (5,038) -62% 5,000
Maintenance Costs 22,531 20,318 (2,213) -10% 22,000
Parks Costs 36,837 55,908 19,071 52% 60,000
Used Oil
Expenses 5,433 7,188 1,755 32% 7,200
Gas Tax Fund
Expenses 50,860 160,350 109,490 215% 110,000
Revolving Loan Fund
Expenses 26,463 11,454 (15,009) -57% 13,000
Total Governmental Funds 650,245 783,474 133,229 750,200 WWTP
Operations Costs 176,548 157,390 (19,158) -11% 160,000
Capital Costs 29,760 54,302 24,542 82% 55,000
Pier
Operating Costs 83,789 116,356 32,567 39% 117,000
Storm Damage Mitigation - - - -
Repair & Replacement Costs 41,374 210,000 168,626 408% 45,000 Total Proprietary Funds 331,471 538,048 206,577 377,000 Total All Funds $ 981,716.23 $ 1,321,522.00 $ 339,805.77 $ 1,127,200.00 11 of 25 06/27/2022
FY 2022/2023 PROJECTED GENERAL FUND EXPENDITURES
Salaries & Wages
29%
Payroll Taxes & Benefits
12%
Administration Costs
10%
Professional Services
21%
Program Supplies & Services
28%
12 of 25 06/27/2022
City of Point Arena
P&L - Governmental (exc. Fixed Assets)
July 2021 through May 2022
Admin Legislative Maintenance Total Parks Planning Recycling Safety Streets (GF) (GF) (GF) (GF) (GF) (GF) (GF) (GF) Total GF
Ordinary Income/Expense
Income
4100 ꞏ Property Taxes
4101 ꞏ Property Tax, Secured, Current 81,079.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 81,079.21 Total 4100 ꞏ Property Taxes 81,079.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 81,079.214108 ꞏ Sales Tax - General 65,817.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 65,817.604109 ꞏ Sales Tax - Streets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4111 ꞏ Transient Occupancy Tax 147,266.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 147,266.994112 ꞏ VLF Swap 44,819.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 44,819.00 4116 ꞏ Cannabis Excise Tax - Rec 7,649.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,649.81 4117 ꞏ TOT Measure AC 29,453.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29,453.38 4125 ꞏ BLM Reimbursements 0.00 0.00 4,923.66 0.00 0.00 0.00 0.00 0.00 4,923.66 4200 ꞏ Gas Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004250 ꞏ RMRA SB1 Funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004300 ꞏ Grant Revenues 4311 ꞏ ARPA Covid 53,705.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 53,705.004310 ꞏ Grants - CDBG 1,200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,200.00 4320 ꞏ Grants - MCOG 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,914.51 9,914.51 4330 ꞏ STP D1/Streets & Hwy Dis 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4340 ꞏ COP's AB1913 Allocation 0.00 0.00 0.00 0.00 0.00 0.00 159,576.83 0.00 159,576.83 4300 ꞏ Grant Revenues - Other 11,095.00 0.00 0.00 0.00 0.00 5,000.00 0.00 0.00 16,095.00 Total 4300 ꞏ Grant Revenues 66,000.00 0.00 0.00 0.00 0.00 5,000.00 159,576.83 9,914.51 240,491.34 4410 ꞏ Franchise Fees 5,088.45 0.00 0.00 0.00 0.00 6,000.00 0.00 0.00 11,088.45 4420 ꞏ Business License Fee 5,378.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,378.75 4440 ꞏ Planning Fees/Permits 50.00 0.00 0.00 0.00 11,065.00 0.00 0.00 0.00 11,115.00 4510 ꞏ Interest Income 617.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 617.114520 ꞏ Rents & Concessions 0.00 0.00 0.00 365.00 0.00 0.00 0.00 0.00 365.004590 ꞏ Principal Collected 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4990 ꞏ Miscellaneous Sales & Services 5,824.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,824.69 Total Income 459,044.99 0.00 4,923.66 365.00 11,065.00 11,000.00 159,576.83 9,914.51 655,889.99 Gross Profit 459,044.99 0.00 4,923.66 365.00 11,065.00 11,000.00 159,576.83 9,914.51 655,889.99 Expense
6100 ꞏ Salaries & Wages
6110 ꞏ Salaries & Wages, Regular 135,987.56 18.26 5,487.28 23,195.81 1,193.78 3,136.90 1,145.51 0.00 170,165.10 6120 ꞏ Overtime Wages 222.62 0.00 0.61 5.91 0.00 151.61 0.00 0.00 380.75 6140 ꞏ Vacation Pay 6,467.50 0.00 0.00 936.43 59.60 64.58 110.55 0.00 7,638.66 6150 ꞏ Sick Pay 3,597.22 0.00 0.00 3.16 30.54 15.40 14.05 0.00 3,660.37 6160 ꞏ Holiday Pay 3,871.47 0.00 365.31 1,058.87 35.43 97.49 12.83 0.00 5,441.40 6190 ꞏ Other Pay 1,687.24 3,800.00 0.00 0.00 0.00 7.98 0.00 0.00 5,495.22 Total 6100 ꞏ Salaries & Wages 151,833.61 3,818.26 5,853.20 25,200.18 1,319.35 3,473.96 1,282.94 0.00 192,781.506200 ꞏ Payroll Taxes & Benefits 6210 ꞏ FICA/Medicare - Employer 11,637.34 292.18 445.84 1,959.30 100.93 261.45 98.14 0.00 14,795.18 13 of 25 06/27/2022
Admin Legislative Maintenance Total Parks Planning Recycling Safety Streets (GF) (GF) (GF) (GF) (GF) (GF) (GF) (GF) Total GF
6220 ꞏ Unemployment Insurance 261.58 0.31 52.81 171.54 11.89 9.23 0.00 0.00 507.366240 ꞏ Health Benefits 6241 ꞏ Health Insurance - Employer 13,905.13 0.00 3,424.17 2,841.37 0.00 234.83 0.00 0.00 48,434.316242 ꞏ HSA - Employer 4,033.33 0.00 0.00 1,375.00 0.00 0.00 0.00 0.00 5,408.33 Total 6240 ꞏ Health Benefits 17,938.46 0.00 3,424.17 4,216.37 0.00 234.83 0.00 0.00 53,842.64 6250 ꞏ SIMPLE IRA - Employer 10,202.53 0.00 4.87 98.53 39.59 0.00 38.49 0.00 10,384.01 Total 6200 ꞏ Payroll Taxes & Benefits 40,039.91 292.49 3,927.69 6,445.74 152.41 505.51 136.63 0.00 79,529.196300 ꞏ General Administration Costs 6310 ꞏ Advertising/Noticing 0.00 360.00 0.00 0.00 882.00 0.00 0.00 630.00 1,872.00 6330 ꞏ Dues & Memberships 5,750.38 0.00 0.00 0.00 149.95 0.00 0.00 0.00 5,900.33 6340 ꞏ Liability Insurance 46,448.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 46,448.54 6345 ꞏ Event Insurance 0.00 0.00 0.00 2,041.00 0.00 0.00 0.00 0.00 2,041.00 6347 ꞏ Property Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6350 ꞏ Licenses/Permits/Fees 476.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 476.27 6360 ꞏ Office Supplies 2,757.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,757.39 6365 ꞏ Postage 1,324.87 0.00 0.00 0.00 30.52 0.00 0.00 0.00 1,355.39 6370 ꞏ Printing 379.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 379.00 6380 ꞏ Storage/Rents 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 50.00 6390 ꞏ Training/Travel 4,810.83 168.20 42.00 89.60 0.00 0.00 0.00 0.00 5,110.63 Total 6300 ꞏ General Administration Costs 61,947.28 528.20 42.00 2,180.60 1,062.47 0.00 0.00 630.00 66,390.55 6400 ꞏ Professional Services
6410 ꞏ Professional - Accounting 22,743.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,743.67 6420 ꞏ Professional - Audit 9,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,500.00 6430 ꞏ Professional - Consultant 0.00 0.00 0.00 3,909.24 0.00 0.00 0.00 0.00 3,909.246440 ꞏ Professional - Engineer 3,648.75 0.00 0.00 14,811.53 79,592.88 0.00 0.00 0.00 98,053.166450 ꞏ Professional - Legal 1,119.25 1,204.50 0.00 0.00 0.00 0.00 0.00 0.00 2,323.756460 ꞏ City Attorney 1,380.84 5,352.68 0.00 0.00 166.50 0.00 0.00 0.00 6,900.02 Total 6400 ꞏ Professional Services 38,392.51 6,557.18 0.00 18,720.77 79,759.38 0.00 0.00 0.00 143,429.84 6500 ꞏ Program Supplies & Services
6510 ꞏ Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 63.00 63.00 6521 ꞏ Rent - Equipment 4,827.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,827.21 6522 ꞏ Rent - Spaces 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6530 ꞏ Outside Services 5,698.48 0.00 0.00 11,779.56 124.00 0.00 10,934.63 11,016.13 39,552.806542 ꞏ Repairs/Maint - Equipment 0.00 0.00 1,934.95 1,183.75 0.00 0.00 0.00 1,493.10 4,611.806543 ꞏ Repairs/Maint - Streets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,700.90 1,700.90 6544 ꞏ Repairs/Maint - Infrastructure 0.00 0.00 0.00 570.96 0.00 0.00 0.00 0.00 570.96 6551 ꞏ Supplies - Safety 642.85 0.00 812.45 2,287.99 0.00 0.00 512.40 727.35 5,080.49 6552 ꞏ Supplies & Tools 2,637.22 638.33 3,463.73 3,694.60 0.00 0.00 0.00 572.73 11,006.61 6560 ꞏ Telephone 2,762.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,762.986561 ꞏ Utilities 11,368.73 0.00 263.80 3,852.65 0.00 0.00 0.00 3,132.46 18,617.64 6565 ꞏ Internet Fees 4,516.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,516.216571 ꞏ Vehicle - Fees -519.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -519.056572 ꞏ Vehicle - Fuel 0.00 0.00 673.00 957.94 0.00 0.00 0.00 156.30 1,787.24 6580 ꞏ COPS 0.00 0.00 0.00 0.00 0.00 0.00 91,666.63 0.00 91,666.63 Total 6500 ꞏ Program Supplies & Services 31,934.63 638.33 7,147.93 24,327.45 124.00 0.00 103,113.66 18,861.97 186,245.42 14 of 25 06/27/2022
Admin Legislative Maintenance Total Parks Planning Recycling Safety Streets (GF) (GF) (GF) (GF) (GF) (GF) (GF) (GF) Total GF
6900 ꞏ Other Expenses
6980 ꞏ CDBG Mini-grants 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.006910 ꞏ Miscellaneous Expense 619.13 0.00 310.00 25.00 0.00 0.00 0.00 0.00 954.136950 ꞏ Finance Charges 75.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 75.006900 ꞏ Other Expenses - Other 0.00 0.00 0.00 500.00 0.00 0.00 0.00 0.00 500.00 Total 6900 ꞏ Other Expenses 694.13 0.00 310.00 525.00 0.00 0.00 0.00 0.00 1,529.13 7000 ꞏ Capital Expenses
7400 ꞏ Infrastructure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 7000 ꞏ Capital Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8200 ꞏ Debt Service - Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Expense 324,842.07 11,834.46 17,280.82 77,399.74 82,417.61 3,979.47 104,533.23 19,491.97 669,905.63 Net Ordinary Income 134,202.92 -11,834.46 -12,357.16 -77,034.74 -71,352.61 7,020.53 55,043.60 -9,577.46 -14,015.64 Net Income 134,202.92 -11,834.46 -12,357.16 -77,034.74 -71,352.61 7,020.53 55,043.60 -9,577.46 -14,015.64 15 of 25 06/27/2022
POINT ARENA PIER ENTERPRISE FUND
The 2021-2022 fiscal year saw major changes at Point Arena Pier.
New staff was brought on board and they have tightened up the operation and spent a majority of time working on significant deferred maintenance -- particularly of the boat hoist, product hoist, and floating dock.
Repair & Replacement Fund
Due to this enhanced focus on Repair & Replacement (R&R), approximately 40% of costs at the pier were attributed to R&R and 60% to operations. In a “normal year” it would be closer to a 75% operations - 25% R&R split.
This maintenance had large cost. Approximately $24,000 was expended to:
• Replace green shed garage door -- $4,500
• Rental of boom lift for hoist maintenance -- $4,000
• Paving of the Pier deck -- $5,000
• Preparation of a Lake/Streambed Maintenance Agreement with CA Fish & Wildlife for routine maintenance of Arena Creek -- $3,500
The rest of the R&R expenses were for tools, safety supplies, and paint. The R&R fund was placed in a negative position because there was no Harborfest fundraiser in the fiscal year.
The Point Arena Pier has reached it’s 35-year life span. The City will begin the process of interacting with the Department of Boating & Waterways to obtain state funding for the repair and replacement of certain components of the Pier, including the floating dock. This will likely be a multi-year endeavor.
In the coming year, it will need a full engineering and technical study to fulfill the requirement of the State Lands Lease and to determine the extent of rehabilitation needed. Estimated cost is $30,000.
Operations
On the operations side, the Pier continues to lose more money that it generates.
Pier revenues were approximately $41,000; expenses were approximately $86,000 for a net loss of $45,000 which in the past has been covered by the general fund. 16 of 25 06/27/2022
WWTP ENTERPRISE FUND
The Point Arena Wastewater Treatment Plant serves a population of approximately 450, treating primarily domestic wastewater from single-family dwellings, with additional flows coming from restaurant, school and commercial establishments. The Plant provides service to approximately 150 parcels and treats wastewater from approximately 289 ESD.
The wastewater operations and repair & replacement funds are typically quite stable. The plant is funded by sewer assessments on property owners with service connections which provides a steady and reliable source of revenue.
In this past year, the city has begun an Inflow & Infiltration Study of the wastewater system to identify needed repairs to qualify for funding from the State Water Resources Control Board. Funding for the study is being reimbursed as progress is made.
The Wastewater Plant has some infrastructure repair needs. They are included on the proposed funding list highlighted later in this document. • Back-up Generator – funded by CalOES PSPS Safety Grant ($90,000) • Influent Lagoon Mixer ($20,000)
• Effluent Pump & Piping Upgrade ($40,000)
• Replacement of Chlorine Injection Unit ($12,000)
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City of Point Arena 12:40 PM
P&L Enterprise 06/27/2022
July 2021 through May 2022 Accrual Basis
PRF PR - Other WWR WW - Other
(PR) (PR) Total PR (WW) (WW) Total WW TOTAL
Ordinary Income/Expense
Income
4300 ꞏ Grant Revenues
4360 ꞏ State Water Grants 0.00 0.00 0.00 61,430.00 0.00 61,430.00 61,430.004300 ꞏ Grant Revenues - Other 8,657.00 0.00 8,657.00 0.00 0.00 0.00 8,657.00 Total 4300 ꞏ Grant Revenues 8,657.00 0.00 8,657.00 61,430.00 0.00 61,430.00 70,087.004440 ꞏ Planning Fees/Permits 0.00 6,414.00 6,414.00 0.00 0.00 0.00 6,414.004510 ꞏ Interest Income 0.00 0.00 0.00 0.00 67.15 67.15 67.154610 ꞏ Boat Storage 0.00 4,113.48 4,113.48 0.00 0.00 0.00 4,113.484620 ꞏ Fish Poundage 0.00 16,664.31 16,664.31 0.00 0.00 0.00 16,664.314640 ꞏ Launch Fees 0.00 13,123.94 13,123.94 0.00 0.00 0.00 13,123.944710 ꞏ Sewer Service Fees 0.00 0.00 0.00 0.00 258,893.08 258,893.08 258,893.084715 ꞏ Sewer Fees R&R Allocation 0.00 0.00 0.00 763.81 0.00 763.81 763.81 4990 ꞏ Miscellaneous Sales & Services 0.00 1,463.20 1,463.20 0.00 0.00 0.00 1,463.20 Total Income 8,657.00 41,778.93 50,435.93 62,193.81 258,960.23 321,154.04 371,589.97 Gross Profit 8,657.00 41,778.93 50,435.93 62,193.81 258,960.23 321,154.04 371,589.97 Expense
6100 ꞏ Salaries & Wages
6110 ꞏ Salaries & Wages, Regular 28,286.78 40,110.08 68,396.86 26,044.74 45,059.36 71,104.10 139,500.96 6120 ꞏ Overtime Wages 670.38 1,365.06 2,035.44 326.41 872.85 1,199.26 3,234.706140 ꞏ Vacation Pay 1,194.00 7,466.36 8,660.36 197.67 2,387.03 2,584.70 11,245.06 6150 ꞏ Sick Pay 202.20 2,814.47 3,016.67 1,123.60 4,846.94 5,970.54 8,987.21 6160 ꞏ Holiday Pay 1,141.53 1,979.72 3,121.25 1,468.58 2,156.15 3,624.73 6,745.98 6170 ꞏ On-Call Pay 0.00 0.00 0.00 0.00 10,110.00 10,110.00 10,110.00 6190 ꞏ Other Pay 100.26 336.80 437.06 98.18 1,426.19 1,524.37 1,961.43 Total 6100 ꞏ Salaries & Wages 31,595.15 54,072.49 85,667.64 29,259.18 66,858.52 96,117.70 181,785.34 6200 ꞏ Payroll Taxes & Benefits
6210 ꞏ FICA/Medicare - Employer 2,375.00 3,888.43 6,263.43 2,236.88 5,116.87 7,353.75 13,617.18 6220 ꞏ Unemployment Insurance 196.22 301.81 498.03 103.61 193.23 296.84 794.87 6240 ꞏ Health Benefits
6241 ꞏ Health Insurance - Employer 0.00 4,666.81 4,666.81 1,239.48 4,623.78 5,863.26 10,530.07 6242 ꞏ HSA - Employer 0.00 1,650.00 1,650.00 0.00 0.00 0.00 1,650.00 Total 6240 ꞏ Health Benefits 0.00 6,316.81 6,316.81 1,239.48 4,623.78 5,863.26 12,180.07 6250 ꞏ SIMPLE IRA - Employer 319.82 0.00 319.82 42.40 0.00 42.40 362.22 Total 6200 ꞏ Payroll Taxes & Benefits 2,891.04 10,507.05 13,398.09 3,622.37 9,933.88 13,556.25 26,954.34 18 of 25 06/27/2022
PRF PR - Other WWR WW - Other
(PR) (PR) Total PR (WW) (WW) Total WW TOTAL
6300 ꞏ General Administration Costs
6310 ꞏ Advertising/Noticing 0.00 317.00 317.00 0.00 0.00 0.00 317.00 6350 ꞏ Licenses/Permits/Fees 323.00 282.61 605.61 0.00 27,109.00 27,109.00 27,714.61 6360 ꞏ Office Supplies 0.00 97.53 97.53 0.00 211.30 211.30 308.836390 ꞏ Training/Travel 0.00 481.82 481.82 0.00 89.60 89.60 571.42 Total 6300 ꞏ General Administration Costs 323.00 1,178.96 1,501.96 0.00 27,409.90 27,409.90 28,911.86 6400 ꞏ Professional Services
6440 ꞏ Professional - Engineer 0.00 0.00 0.00 99,276.51 573.75 99,850.26 99,850.26 6450 ꞏ Professional - Legal 0.00 5,032.50 5,032.50 0.00 0.00 0.00 5,032.50 6460 ꞏ City Attorney 370.00 65.65 435.65 0.00 0.00 0.00 435.65 Total 6400 ꞏ Professional Services 370.00 5,098.15 5,468.15 99,276.51 573.75 99,850.26 105,318.416500 ꞏ Program Supplies & Services 6521 ꞏ Rent - Equipment 3,369.58 790.38 4,159.96 0.00 0.00 0.00 4,159.96 6530 ꞏ Outside Services 3,881.50 502.93 4,384.43 19,889.35 1,485.00 21,374.35 25,758.78 6541 ꞏ Repairs/Maint - Building 4,900.92 0.00 4,900.92 0.00 0.00 0.00 4,900.92 6542 ꞏ Repairs/Maint - Equipment 2,790.77 474.39 3,265.16 0.00 0.00 0.00 3,265.16 6544 ꞏ Repairs/Maint - Infrastructure 5,481.07 0.00 5,481.07 0.00 0.00 0.00 5,481.07 6551 ꞏ Supplies - Safety 1,779.86 1,214.87 2,994.73 0.00 1,496.55 1,496.55 4,491.28 6552 ꞏ Supplies & Tools 2,479.38 3,327.36 5,806.74 128.76 3,106.72 3,235.48 9,042.22 6560 ꞏ Telephone 0.00 409.10 409.10 0.00 681.78 681.78 1,090.88 6561 ꞏ Utilities 0.00 8,079.74 8,079.74 0.00 23,342.69 23,342.69 31,422.436565 ꞏ Internet Fees 100.00 0.00 100.00 0.00 0.00 0.00 100.00 6571 ꞏ Vehicle - Fees 0.00 0.00 0.00 0.00 85.30 85.30 85.306572 ꞏ Vehicle - Fuel 59.43 1,055.58 1,115.01 0.00 3,140.36 3,140.36 4,255.37 Total 6500 ꞏ Program Supplies & Services 24,842.51 15,854.35 40,696.86 20,018.11 33,338.40 53,356.51 94,053.37 6600 ꞏ Enterprise Supplies & Services
6610 ꞏ Chlorine 0.00 0.00 0.00 0.00 17,660.79 17,660.79 17,660.79 6630 ꞏ Lab/Testing 0.00 0.00 0.00 0.00 9,400.00 9,400.00 9,400.00 Total 6600 ꞏ Enterprise Supplies & Services 0.00 0.00 0.00 0.00 27,060.79 27,060.79 27,060.796900 ꞏ Other Expenses 6910 ꞏ Miscellaneous Expense 0.00 117.14 117.14 0.00 50.35 50.35 167.49 6950 ꞏ Finance Charges 0.00 0.00 0.00 629.53 2,155.98 2,785.51 2,785.51 Total 6900 ꞏ Other Expenses 0.00 117.14 117.14 629.53 2,206.33 2,835.86 2,953.00 Total Expense 60,021.70 86,828.14 146,849.84 152,805.70 167,381.57 320,187.27 467,037.11 Net Ordinary Income -51,364.70 -45,049.21 -96,413.91 -90,611.89 91,578.66 966.77 -95,447.14 Net Income -51,364.70 -45,049.21 -96,413.91 -90,611.89 91,578.66 966.77 -95,447.14 19 of 25 06/27/2022
Construction
Year
Project Location Project Description Funding Estimated Cost Fall 2021
FY 20-21
Riverside Drive & Center
Street Renovation
Completion of Riverside Dr. renovation with 1000 sq. ft. of dig outs, base replacement, asphalt fill followed with a 2”x 420' by 25’ AC overlay. (Approximate). Center Street - Construct a 330' concrete drainage swale, Roadbed Reconstruction and AC throughout.
RMRA,
RSTP(d1),
LPPF
Estimated Construction
Cost including
Construction
Management: $312,000
Fall 2021
FY 20-21
East End of Mill Street
Reconstruction,
Sidewalk, Drainage and
Asphalt Replacement
Remove the eastern 500 feet of the roadway, regrade to an even cross slope correcting northside drainage. Install subsurface drainage on south side of the street. Replace approx. 450 feet of sidewalk on south side.
Bring the Northside sidewalks into a more typical residential sidewalk/roadway height ratio and replace where needed. Repave Roadway. Consider cul-de-sac development as a new project.
RMRA,
RSTP, LPPC,
MCOG
Partners
Fund, CRSSA
Estimated Construction
Cost including
Construction
Management:
$1,358,640
FY 21-22*
Port Road Rehab, Main
St. to Iversen. Sidewalk
Replacement &
Additions, Drainage
Improvements and
Resurface Street
From Main St. west on northside of Port Rd., replace 280' of sidewalk (ADA). From Iversen to Main construct 425' of sidewalk on southside. From Iversen toward Main remove 12,600 sq.' of asphalt, regrade and pave, including subsurface drainage improvements. Past the Arena Cove/Road Rd Cutoff on Port Rd. install 140' of ADA sidewalk down to barrier, past barrier path a 6' multi-use path to bike lane on Iversen.
LPPF, ATP,
RMRA,
STBGP,
Estimated Project Costs:
Design, Specifications,
Construction &
Construction
Management, $620,000
FY 22-23* Windy Hollow Road
Rehab or Rebuild .6 miles of Roadway within the City limits. Project A:
grind out failed sections, recompact, replace asphalt and seal. Project B:
Full reconstruction of the existing roadway and paved areas. Project C:
Project B plus one bike lane (permitting may run higher).
Funding
TBD, Local
Partner?
Estimated:
Project A - $400,000,
Project B - $970,000,
Project C - $1,200,000
2021-2024*
FYs 21-22,
22-23, 23-24,
24-25
Sidewalk Repair,
Replacement and New
Sidewalk Program.
Sidewalks will be prioritized for replacement or addition. Some sidewalk improvements may be included in other streets projects . A sidewalk construction program partnering with property owners may be needed.
RMRA, RSTP
(d1), ATP,
LPPF, grants
TBD
2021-2022 Fiscal Year City of Point Arena Streets & Roads PAPT = Point Arena Pothole Tax LPPF(C) = SB 1 Local Partnership Program Formulaic (Competitive) TBD = To Be Determined LTF = Local Transportation Fund ATP=Active Transportation Program RMRA = Road Maintenance & Repair Act SB 1 RSTP (d1) = Regional Surface Transportation Program STBGP = Surface Transportation Block Grant Program Capital Improvement Program 2020-2024 Budget Years (Revised 11/16/2021) * The order in which these projects are developed may be altered based on the availability of funding. 20 of 25 06/27/2022
CAPITAL PROJECTS FUNDING
STREETS
2022-2023 Project
• Windy Hollow Road – rehab and rehabilitation of .6 miles of city road. Approx. $550,000 funded through Local Partnership Program with 25% City match drawing on funding from the Mendocino Council of Governments
PARKS
$177,000 available through Prop 68 Per Capita Grant. No match required. • Downtown Park -- $78,500
• Arena Cove Park – $78,500
• BLM City Hall Trailhead -- $20,000
BACKUP POWER
CPO Wilson also requested the installation of a backup generator to ensure the Wastewater Treatment Plant’s ability to continue operating during power outages.
The City received a one-time grant of $153,000 from the CA Office of Emergency Service which allows for the purchase and installation of a generator at the plant. Special Projects Manager Richard Shoemaker recently researched and acquired a mobile generator with the ability to charge City Hall and the Arena Cove and Cypress Meadows lift stations. $25,000 -- Public Safety Reserve for future public safety needs. $13,000 -- Electrical analysis of backup power needs of WWTP and lift stations $12,000 -- Mobile generator
$5000 -- Administrative staff time.
The estimated balance remaining is approximately $98,000 and expires October 31, 2022 if not utilized.
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OTHER GRANT FUNDED PROJECTS
• Wastewater Treatment Inflow & Infiltrations Study -- $450,000 from CA Water Resources Control Board
• Local Coastal Program Update -- $250,000 from Housing and Community Development (HCD)
• Veterans Building Technical & Feasibility Study -- $250,000 from Community Development Block Grant/HCD
• Sea Level Rise Risk & Vulnerability Study -- $100,000 from Coastal Commission 22 of 25 06/27/2022
Fiscal Year 2022-2023 City Budget
ONE TIME GRANT FUNDING
The City of Point Arena is the beneficiary of $165,080 in one-time unrestricted grant funding. This funding arrives at an opportune time for needed repairs and replacement of equipment, infrastructure and vehicles.
FUNDING SOURCES
Coronavirus State and Local Fiscal Recovery Funds (SLFRF) $107,410
The American Rescue Plan granted every incorporated city in the country funding based on per capita population size. Point Arena’s share is $107,410. This money can be utilized for any public benefit.
Public Agency Risk Sharing Authority (PARSAC) Safety Grant $57,670
As a member of PARSAC, the city received an annual “safety grant.” When PARSAC merged with the California Intergovernmental Risk Authority (CIRA) in 2021, the annual grant was converted to a one-time grant that can be used for any public benefit.
TOTAL FUNDING: $165,080
SPENDING OPTIONS
This one-time funding represents approximately 20% of the annual City budget. Although the funding can be used for any purpose, your City Manager recommends utilizing this funding for one-time repair and replacement of aging facilities and vehicles Staff in the Public Works, Pier, Wastewater, and Administration Departments have provided a list of what are considered to be the most critical needs that will provide maximum benefit to improving the quality of services providedby the City of Point Arena. 23 of 25 06/27/2022
DEPARTMENTAL REQUESTS
PUBLIC WORKS
Work Truck Replacement
Estimated cost: $20,000
Current work truck has more than exceeded its lifespan.
Zero Turn Mower
Estimated cost: $7,500
Enhances the ability and ease of maintaining city parks and properties.
TOTAL REQUEST: $27,500
ARENA COVE & PIER
Boom Truck
Estimated cost: $30,000
For boat hoist maintenance and ancillary activities such as banner hanging.
Forklift Replacement
Estimated cost: $20,000
Current forklift is over twenty years old.
Pier Restroom Upgrades
Estimated cost: $10,000
Replace doors and doorframes and repair broken window tiles.
TOTAL REQUEST: $60,000
WASTEWATER TREATMENT
Influent Lagoon Mixers
Estimated cost: $20,000
Improves wastewater treatment process, resulting in less solids, higher quality effluent, and helps prevent violations of the Clean Water Act.
Effluent Pump and Piping Upgrade and Repair
Estimated cost: $40,000
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Replace unserviceable check valves, replace two pumps, and install timer.
Replace Chlorine Injection Unit
Estimated cost: $10,000
The current unit is antiquated and not designed for a corrosive environment and breaks down as a result.
TOTAL REQUEST: $70,000
ADMINISTRATION
City Hall Upgrades
$7,500
Reconfiguration of City Hall offices and equipment to enable ”hybrid” meertings.
Administrative Expenses
$2,500
Grant management and reporting.
TOTAL REQUEST: $10,000
GRAND TOTAL REQUEST: $167,500
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