Richmond City Council
June 21, 2022

FY 2022-23 BUDGET
& RENTAL HOUSING

FEE STUDY

CITY OF RICHMOND RENT PROGRAM
ADOPTED: MAY 31, 2022

Boardmembers
Virginia Finlay
Shiva Mishek
Alana Grice Conner
Carole Johnson
Michael Vasilas

City of Richmond Rent Program
440 Civic Center Plaza, Suite 200
Richmond, CA 94804
(510) 234-RENT [7368]
www.richmondrent.or
g

ACKNOWLEDGMENTS

Rent Program Department Team

Nicolas Traylor Charles Oshinuga Paul Cohen
Executive Director General Counsel Hearing Examiner

Fred Tran Palomar Sanchez Cynthia Shaw
Deputy Director Staff Attorney Administrative Analyst

Monica Bejarano Ramona Howell Moises Serano
Services Analyst Administrative Aide Administrative Aide

Abraham Gonzalez Christopher Villalta
Administrative Intern Administrative Intern

Special Thanks to the below City staff and departments:

IT Department Human Resource s Department Finance Department

Sue Hartman Sharrone Taylor Mubeen Qader Director Principal Personnel Analyst Budget Administrator

Randall Narron Delmy Cuellar
Senior Programmer Finance Manager
(Interim)

Vrenesia Ward
S r . B u d g e t A n a l y s t

TABLE OF CONTENTS

I. Rent Program Organization and Goals………………………………………………………………3 a. Mission Statement……………………………………………………………………………………..3 b. Organizational Chart and Labor Summary …..……….……………………………………..3 c. Progress towards the achievement of Fiscal Year 2021-22 Goals…………………5 d. Proposed Fiscal Year 2022-23 Goals………….……………………………………………….7

II. Proposed 2022-2023 Budget ……………. ………………………………………………….………..9 a. Budget …………………………………………………………………….………………………..….…..9
b. Line Item Descriptions……………………………………………………………………………...11

III. Expense and Revenue Projections
a. Expense and Revenue Summary……………………………………………………………….19

IV. 2022-2023 Rental Housing Fee Study……………………………………….…………………. 20 a. Introduction and Background……………………………………………………………………20 b. Structure of the Rental Housing Fee………………………………………………………....20 c. Applicable Unit Counts and Database Development…………………..………………22 d. Proposed Rental Housing Fees………………………………………………………………….25 e. Comparison to Previously Adopted Rental Housing Fee and Peer Jurisdictions……………………………………………………………………………………..………25
f. Conclusion and Recommended Actions.………………………………………………..….27

V. Unit Descriptions………..…………………………………………….……………………………………28

VI. Appendices………………………………………………………………………….……………..…………30

I. RENT PROGRAM ORGANIZATION AND GOALS

Mission Statement

The mission of the Rent Program is to promote neighborhood and community stability, healthy housing, and affordability for Richmond Tenants through the regulating of those Landlord/Tenant matters that reasonably relate to rents and evictions, while maintaining a Landlord’s right to a fair return.

Proposed Fiscal Year 2022-23 Organizational Chart and Labor Summary

The Richmond Rent Program was established following the adoption of the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance (Rent Ordinance) by a majority of Richmond voters in 2016. In accordance with the Rent Ordinance, an Executive Director appointed by a five-member Rent Board comprised of Richmond residents leads the Rent Program.

The following figures illustrate how the proposed staffing plan for the upcoming year compares to prior years. Of particular note is the proposed addition of two new personnel classifications, including that of a General Counsel and a Senior Rent Program Services Analyst, as well as the consolidation of the Public Information and Billing and Registration Units into one combined Public Information and Enrollment Unit (PIE). The rationale for these proposed changes to the organizational chart is described in further detail below.

Figure 1 contains the proposed organizational chart for the 2022-23 fiscal year, and Figures 2 and 3 provide a summary of full-time equivalents (FTEs) since Fiscal Year 2020-21.

Figure 1. FY 2022-23 Rent Program Organizational Chart

Figure 2. Proposed Fiscal Year 2022-23 Labor Summary

Authorized
Positions
2020/2021
Authorized
Positions
2021/2022
Proposed
Positions
2022/2023
Amount of
Change
21/22 -
22/23
Unit
Management 2.25 2.25 2.25 0
Legal 1.75 2.25 2.25 0
Public Information 4.6 N/A N/A N/A
Billing & Registration 2.9 N/A N/A N/A
Public Information & Enrollment N/A 6.75 6.75 0
Hearings 1.5 1.75 1.75 0
TOTAL    13 13 13 0

Figure 3. Proposed Fiscal Year 2021-22 Permanent Staff by Classification

Authorized
Positions
2020/2021
Authorized
Positions
2021/2022
Proposed
Positions
2022/2023
Amount
of
Change
21/22 -
22/23
Classification
Administrative Aide 3 3 3 0
Administrative Student Intern 1 1 1 0
Assistant Administrative Analyst 1 1 0 -1
Deputy Director 1 1 1 0
Executive Director 1 1 1 0
General Counsel N/A 1 1 0
Hearing Examiner 1 1 1 0
Rent Program Services Analyst I/II 3 2 2 0
Senior Rent Program Services /
Administrative Analyst N/A 1 2 1
Staff Attorney 2 1 1 0
Total    13 13 13 0

Proposed Reclassification for a Senior Administrative Analyst

The proposed Fiscal Year 2022-23 budget includes a reclassification from an Assistant Administrative Analyst position to a Senior Administrative Analyst (1 FTE). The reclassification would require approval from both the Personnel Board and City Council. This role will assist with managing the Hearings Unit, provide administrative support to the Executive Director, and the Legal Unit. This role will receive direction from the Executive Director and oversees the petition process for the Hearings Unit. The Senior Administrative Analyst will also take direction from the General Counsel, Hearing Examiner, and Staff Attorney in a supportive capacity, but does not direct, the legal work of the agency.

Furthermore, the position will manage and work closely with all phases of the Rent Board, including the coordination of meetings and communications with all Board Members and the public. This proposed change would not increase the overall number of full-time equivalents (FTEs) employed by the agency.

Consolidation of Public Information and Billing and Registration Units

The organizational chart for Fiscal Year 2021-22 includes a “Public Information and Enrollment Unit” that replaces the existing Public Information and Billing and Registration Units. This new organizational structure is anticipated to be advantageous to the agency for the following reasons:

 Improved compliance with enrollment, registration, and fee payment requirements In their conversations with community members, Rent Program Services Analysts (housing counselors) frequently discover rental units that are not in compliance with

the Rent Program in terms of property enrollment, tenancy registration, and fee payment requirements. Coordination between housing counselors and staff who oversee enrollment, registration, and fee payment operations is important, and the new organizational structure will support closer communication and collaboration to ensure that there is follow up after a rental unit found to be noncompliant.

 Greater efficiency in serving members of the public
Distinct units can create unnecessary silos. The Rent Program is a relatively small agency and will be better equipped to face surges in demand or unforeseen circumstances if all Public Information and Enrollment Unit staff have a foundational understanding of both the Rent Ordinance and its requirements, as well as internal policies and procedures regarding property enrollment, tenancy registration, and payment of the Rental Housing Fee. Under the previous organizational structure, staff members in the Billing and Registration Unit would not typically assist with preparation for community workshops, and staff in the Public Information Unit may not have been familiar enough with Billing and Registration processes to fully assist community members with a billing issue. The new proposed structure would provide greater flexibility and redundancy among staff roles.

 Promotes collaboration on large outreach projects
With 6.75 FTE, the new consolidated Public Information and Enrollment Unit will be the largest unit in the agency and better able to manage completion of large projects, such as mailing the Guide to Rent Control, rent validation reports, and Rental Housing Fee invoices to thousands of Landlords and Tenants. Mass-mailing projects also present opportunities to share information that community members may not otherwise seek out; for example, mailing of Rental Housing Fee invoices to all Landlords is an opportunity to share information about other aspects of the Rent Ordinance.

Progress Towards the Achievement of Fiscal Year 2021-22 Goals

As part of the Fiscal Year 2022-23 Rent Program budget development process, staff members identified a series of goals that the proposed budget would support. As was the case for the greater City of Richmond and the nation as a whole, the Covid-19 pandemic forced a reconsideration of goals and objectives for the 2021-22 fiscal year. Table 1, on the following page, provides a status update on the goals established for the 2021-22 fiscal year and notes the impacts of the Covid-19 pandemic.

Table 1. Progress towards achievement of Fiscal Year 2021-22 Goals Fiscal Year 2021-22 Goal Progress Towards Achievement
Develop a training schedule for Rent
Program Services Analysts (but
accessible to all staff), to ensure
housing counselors remain
knowledgeable on the requirements of
the Rent Ordinance and apprised of
any changes to Rent Board
Regulations and related State and
Federal laws.

Nearly complete.

Rent Program Services Analysts received
regular and ongoing support and training from the managing Staff Attorney on the Rent Ordinance and related laws and regulations. Senior staff members provided specific trainings on new regulations and processes as needed. Rent Program Services Analysts provided weekly informational sessions to support staff in the Public Information Unit to keep them apprised of changes to the law and current topics of
relevance. Rent Program Services Analysts also develops collateral to communicate updates to the community.

Continue to implement the mediation
program to provide free formal and
informal mediation services to
Landlords and Tenants as a means of
resolving disputes that have a
reasonable nexus to the Rent
Ordinance through the assistance of a
trained mediator.

Nearly complete
, but significantly impacted by the Covid-19
pandemic, work is ongoing. With mediation guidelines and administrative procedures in place, staff members continue to assess the bandwidth of the Public Information Unit to determine how many mediations may be scheduled per
month. The Covid-19 pandemic delayed the process of filling vacancies in the Public Information Unit and eliminated the possibility of in-person mediations. The Executive and Deputy Directors facilitated mediations as necessary, but the
mediation program has yet to be fully launched.

Continue to develop an online filing
system for the submission of Property
Enrollment and Tenancy Registration
Progress is ongoing.

Online submission of forms and notices
has yet to be fully launched; staff members anticipate
systems will continue to be developed in the 2022-23 fiscal

forms, as well as the filing of rent
increase and termination of tenancy
notices on the City’s e-TRAKiT website.

year. There is also consideration to upgrade to more a
modern system that is suited for Rent Programs.

Publish and distribute the Guide to
Rent Control in Richmond and one-
page fact sheets on common topics
such as Just Cause for Eviction, Owner
Move-In evictions, the Ellis Act, and the
Relocation Ordinance.

Nearly complete
but significantly impacted by the Covid-19
pandemic. The Guide to Rent Control has been completed
and is slated to be distributed to Landlords and Tenants concurrent with the mailing of Rent Validation Reports for Fully Covered Rental Units. Landlords and Tenants of partially- covered Rental Units are anticipated to receive the Guide to Rent Control as well, in the absence of a Rent Validation Report. Originally planned to be completed during the 2020- 21 fiscal year, the distribution of such materials was
significantly delayed by the transition to remote work
necessitated by the Covid-19 pandemic. Staff members
anticipate completion of this task during the 2021-22 and 2022-23 fiscal year as the severity of the pandemic
decreases and restrictions lessen.

One-page fact sheets pertaining to Just Cause for Eviction, Owner Move-In evictions, the Ellis Act, and the Relocation Ordinance have been drafted and are in the process of being displayed on the Rent Program website.

Fiscal Year 2021-22 Goal Progress Towards Achievement
Develop and Execute a Comprehensive
Outreach Plan that includes, but is not
limited to, continuing to bolster our
social media presence, producing
informational, infographic, and/or
testimonial videos to highlight aspects
of the Rent Ordinance and services
provided by the Rent Program and
expanding outreach efforts to local
businesses, schools, non-profits,
neighborhood councils, and other
community stakeholders.

Progress is ongoing but was significantly impacted by
the
Covid-19 pandemic. During the 2020-21 fiscal year, the
Executive Director, in partnership with Public Information Unit staff members, spearheaded an outreach strategy to conduct site visits and make connections with local businesses, churches, and community centers. While the initiative gained momentum in the preceding fiscal year, progress was
severely stunted in Fiscal Year 2021-22 due to the risks of in- person contact remained during the Covid-19 pandemic.

Instead, outreach was primarily conducted through the
agency’s social media accounts, which proved to be an
effective means of sharing information. Informational
webinars were conducted, comprehensive fact sheets
created, podcasts recorded, and instruction videos were produced to be posted to the Rent Program website.

Launch Tenancy Registration Outreach
by beginning to mail out Notices of the
Maximum Allowable Rent (MAR) (sent
to Landlords and Tenants when
Tenancy Registration Forms are
submitted) and create a database
accessible to the public where
community members can research the
MAR for a particular Rental Unit.

Progress is ongoing
due to the limitations of remote work
during the Covid-19 pandemic. Over three-fourths of all rent- controlled tenancies have been registered to date; however, thousands of forms still need to be entered into the database.

Billing and Registration unit staff developed template forms and continue to work closely with the City’s IT department staff to ensure notices can be automatically generated and mailed to Landlords and Tenants to educate them about the Maximum Allowable Rent for their specific unit. Originally planned to be completed during the 2020-21 fiscal year, generating, and mailing of such reports was significantly delayed by the transition to remote work necessitated by the Covid-19 pandemic. Staff members anticipate initiation of this task during the 2021-22 fiscal year as the severity of the pandemic decreases and restrictions lessen. Staff is also considering a new database to transition the registration online.

Continue to improve collection of the
Rental Housing Fee (greater than 90%
compliance) through investing in
effective compliance and outreach
projects to ensure that all Rental Units
subject to the Rent Ordinance are
assessed the Rental Housing Fee and
all Landlords who should be paying the
Rental Housing Fee receive an invoice
and are made aware of their financial
obligation to the Rent Program.

On Track to Complete and compliance is ongoing. Revenue is continuously being collected. Total Rental Housing Fee
revenue is projected to approach 80% by the close of the fiscal year.

Continue to work collaboratively with
other City Departments to improve
rental housing inspection options,
seismic safety policy, enforcement of
the Relocation Ordinance, the
Richmond Rapid Response Fund (R3F)
Rent Assistance Program for

Displacement and Homelessness
Prevention, and the collection of other
City fees, such as the Business License
Tax, Fire Prevention Services Fee, and
Rental Inspection Program fee.

Progress is ongoing.

Rent Program staff continue to host
monthly meetings with the Richmond Police Department,
Code Enforcement, Richmond Housing Authority, and
Community Development Department to foster open
communication about issues pertaining to the Rent
Ordinance. In addition to monthly meetings, staff members in the Public Information and Billing and Registration Unit are frequently in communication with the Finance and Community Development Departments to streamline operations and
improve customer service provided to community members
by facilitating information sharing and identifying
opportunities for collaboration. The Finance Department currently updating their systems to invoice and credit fees for Measure U.

Continue to implement the
recommendations provided by Kevin
Harper CPA and Associates, including
monitoring budgeted versus actual
expenses and providing quarterly
reports to the Rent Board, updating the
Board’s 10-year financial projection,
and proposing budgetary policies for
the Board’s consideration.

Ongoing. Rent Program staff completes a variance report and compares budgeted revenues and expenditures monthly. The financing is currently in line with the 10-year financial projection. The Program is requesting to purchase an annual subscription to a system that’s custom to the Program’s needs. The solution will offer functions of CRM,
Billing/Invoice, Interaction Log, Registration, and Petition Management.

Proposed Fiscal Year 2022-23 Goals

The proposed Fiscal Year 2022-23 budget has been prepared for the Board’s consideration in acknowledgement of the following goals in three broad categories: Program Development, Outreach, and Program Sustainability and Compliance.

PROGRAM DEVELOPMENT:

1. Continue to invest in staff training and professional development to ensure staff members are knowledgeable on the requirements of the Rent Ordinance, Rent Board Regulations, and related State and Federal laws.

2. Continue to develop online services (e.g., filing system for the submission of Property Enrollment and Tenancy Registration forms, online appointment scheduling system, increasing Zoom counseling sessions, as well as the filing of rent increase and termination of tenancy notices).

OUTREACH:

1. Increase awareness of the Rent Ordinance by publicizing and distributing the comprehensive Guide to Rent Control in Richmond and continue to develop online outreach services (e.g., fact sheets, webinars, and podcasts on new pandemic related laws and other common topics such as Just Cause for Eviction, Owner Move- In Evictions, Rent Increases, the Rent Adjustment Petition process, the Ellis Act, and the Relocation Ordinance).

2. Expand education efforts through targeted outreach to specific groups, such as (but not limited to) tenants and providers of affordable housing, realtors, monolingual Spanish speaking households, small property owners, and problem properties (those with code violations).

3. Develop systems to produce Notices of the Maximum Allowable Rent (MAR) (sent to Landlords and Tenants when Tenancy Registration Forms are submitted), including a database accessible to the public where community members can research the MAR for a particular rental unit.

PROGRAM SUSTAINABILITY AND COMPLIANCE:

1. Provide highest level of service to the rental community. To properly administer these services, the Rent Program must continually collect the Rental Housing Fees to support the necessary operations.

2. Improve and focus on sustainability of the agency. The success of the Program is tied to the ability to retain, develop, and effectively deploy staff resources in the most effective and efficient manner possible.

3. Continue to work collaboratively with other City departments to improve rental housing inspection options, Richmond’s Rent Assistance Program, enforcement of the Relocation Ordinance, and the collection of other City fees (e.g., Business License Tax, Fire Prevention Services Fee, and Rental Inspection Program fee).

4. Continue to develop and refine the Rent Program’s database, transitioning from using the City’s TRAKiT database, to a new database solution designed to work specifically for the needs of the Rent Program. A more effective and efficient database will allow for more accurate billing, enhancing the Program’s collection rate, and improving the Program’s ability to accurately track lawful rents, Hearing’s decisions, eviction trends, etc. The anticipated long-term impact should be a decrease in overall long-term staff costs, by reducing the number of positions necessary to perform the work of the agency.

II. PROPOSED FY 2022-23 BUDGET

The figure below contains the revised Fiscal Year 2022-23 budget based on feedback provided by the Rent Board at its May 31, 2022, Special meeting. Detailed descriptions of the components within each line item are contained in the sections that follow.

Budget Notes

(1) Assumes a Fiscal Year 2021-22 Rental Housing Fee of $226 for Fully Covered units and $127 for Partially Covered units.
(2) See page 11 for detailed salary and wage assumptions. (3) The Rent Program is seeking the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages.
(4) Includes $100,000 for cloud-based solution – IT charge, $20,000 for consultants to complete Cost Pool and Fringe Benefits analysis, $2,205 TRAKiT annual fee, $4,000 for a property information subscription, $3,000 for a legal research subscription, $8,000 for scheduled interpretation, $6,000 for written translation, and $250 for on-demand interpretation services.
(5) Includes $125,000 contract with the Eviction Defense Center to assist with Unlawful Detainer cases, $75,000 for a contract with Bay Area Legal Aid for the weekly Housing Rights Clinics, and $10,000 for legal filing fees in the event of litigation. (6) In accordance with City personnel policies, eligible employees may receive reimbursement of up to $800 for higher education tuition. (7) Anticipated cost of Bar Association dues for three attorneys ($550 per Attorney). (8) Budgeted amount includes funds to satisfy the requirement to publish notices in the newspaper for public hearings as part of the budget adoption process, social media promotions, and promotional materials.
(9) Budgeted amount includes the cost of email accounts for Rent Board Members, business cards, and videoconference/webinar accounts.
(10) Budgeted amount reflects anticipated postage costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (11) Budgeted amount reflects anticipated printing costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (12) Lease of copy machines including a cost-per-copy amount. 36-month lease ends in 2022.
(13) Stipends for 2 UC Berkeley Public Service Center interns, ranging from $1,000 -$1,500 per intern.
(14) Rent Program is working with the City to determine the proper methodology of Cost Pool allocation, new methodology is under review.
(15) Budgeted reserve is equal to 18 percent of total operating expenses consistent with the Rent Board's proposed Reserve Policy.

SALARIES AND WAGES
400001 – 400006
Permanent Employees
Proposed Allocation:
$1,287,802

The allocation reflects salary-related costs for all filled positions and includes a cost-of-living adjustment (COLA) for all non-exempt staff as set forth in the collective bargaining agreements with the City’s employee unions. The Deputy Director and General Counsel positions are proposed to forfeit cost-of-living adjustments in Fiscal Year 2022-23.

Position
Fiscal Year
2021-22
Salary
Fiscal Year
2022-23
Salary
Notes
Executive Director $153,336 $165,603 COLA for prior 3 fiscal years Hearing Examiner $145,380 $149,596 COLA – partial
General Counsel (formerly Staff
Attorney)
$145,380 $152,649 Reclassified from Staff
Attorney – December 2021
Deputy Director $120,000 $140,000 Hired August 2021
Staff Attorney $113,702 $117,000 COLA - partial
Subtotal Executive Staff $677,798 $724,848
Rent Program Services Analyst II $92,208 $83,724 Budgeted at Step 3 of Analyst II
Senior Administrative Analyst
(pending Personnel Board and
Council approval; budgeted
amount reflects 50% Senior
Administrative Analyst salary
schedule, Step I)

$74,244 $80,982 Reclassification from
Assistant Administrative
Analyst: Third Quarter
Rent Program Services Analyst I $70,968 $74,244 Budgeted at Step 5 of Analyst II
Senior Analyst (Personnel Board
and Council approved FY2021-22;
budgeted amount reflects Senior
Management Analyst salary
schedule)

$47,208
(50% annual
salary)
$85,896 Reallocate from Rent
Program Services Analyst
and reclassify as Senior
Analyst
Subtotal Local 21 Management
Staff
$284,628 $324,846
Administrative Aide $70,476 $70,476
Administrative Aide $32,160
(50% annual
salary)
$61,380

Hire March 2022
Administrative Aide $67,224 $70,476 Anticipated to receive regular step increase
Subtotal SEIU 1021 Staff $169,860 $202,332
Administrative Student Intern $21,518 $17,888
Administrative Student Intern $21,518 $17,888
Subtotal Part Time/Temp Staff $43,036 $35,776
TOTAL SALARIES $1,175,322 $1,287,802

SALARIES AND WAGES
400031
Overtime
Proposed Allocation:
$2,500

The allocation accounts for $2,500 for the Public Information and Enrollment Unit for work that cannot be completed during regularly scheduled hours. Most overtime hours are anticipated to be incurred during billing and registration periods, when there is a high volume of inquiries and thousands of mailers to print and assemble. The proposed allocation also accounts for overtime hours utilized during weekend or evening outreach events.

SALARIES AND WAGES
400048
Bilingual Pay
Proposed Allocation:
$11,172

The allocation accounts for the two percent (2%) salary premium granted to seven (6) bilingual staff members employed by the Rent Program. These staff members include:

 Staff Attorney (1 FTE)
 Hearing Examiner (1 FTE)
 Rent Program Services Analysts (1 FTE)
 Senior Rent Program Services Analyst (1 FTE)
 Administrative Aides (2 FTE)

SALARIES AND WAGES
400049
Auto Allowance
Proposed Allocation:
$4,200

The allocation accounts for an automobile allowance for the Executive Director, in the amount of $350 per month.

BENEFITS
400103 - 400151
Fringe Benefits
Proposed Allocation:
$809,518

The allocation accounts for benefits provided to full-time employees. Individual plan changes and/or actual rate changes during the fiscal year may affect the amount actually expended.

These benefits include:

 Health Benefits
o Health Insurance ($232,291)
o Dental Insurance ($17,520)

o Vision Insurance ($2,052)
o Employee Assistance Program ($216)
 Professional Development funds – 9 permanent employees are eligible for reimbursement of up to $750 for eligible expenses ($6,750)  Medicare Taxes ($18,207)
 Life Insurance ($4,139)
 Long-Term Disability Insurance ($12,342)
 Unemployment Insurance ($5,472)
 Workers’ Comp Insurance1
o Clerical staff ($24,001)
o Professional staff ($0)
 Other Post-Employment Benefits (OPEB) ($40,723)2
 Public Agency Retirement System (PARS) Benefits ($102)  Miscellaneous Benefits ($443,555)3

PROFESSIONAL AND ADMINISTRATIVE SERVICES
400201
Professional Services
Proposed Allocation:
$143,455

The allocation accounts for professional services provided by contractors. These services include:
 Cloud-based Solution suited for the Program’s critical needs and goals. The system will improve the efficiency, accuracy, and reliability of the critical data. The available modules consist of a CRM/Database to store all the rental unit data such as property addresses, landlord information, and activity/interaction log, which would include the history and summary of all submissions and notices filed with the Rent Program.

The system would also integrate billing/invoicing.

This will also allow online submissions of Property Enrollment forms, Tenancy Registration forms, and Rent Adjustment petitions.

1 The Rent Program is seeking for the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages. No charge will be included in the budget for Worker’s Compensation for Professional staff and Worker’s Compensation for Clerical staff had been adjust for the cap. 2 According to the California Department of Human Resources, through the collective bargaining process and under the authority of Government Code 22944.5, OPEB (Other Post-Employment Benefits) is the method by which the State of California, as the employer, and its employees jointly prefund health benefits that active employees will receive as state retirees. All employees in positions that are eligible for health benefits, whether or not currently enrolled, prefund OPEB. The state prefunds a matching contribution. 3 Miscellaneous benefits refer to the employer portion of CalPERS pension costs for miscellaneous (non-sworn) staff. CalPERS costs are remitted in two parts—one being a percentage of p ayroll each pay period (object code 400149) and the other being a flat dollar amount per FTE for the unfunded liability (object code 400151).

CalPERS provides an annual valuation report that specifies these rates/dollar amounts.

Finally, the solution will allow for comprehensive counseling and petition case management. Start-up costs and first year annual subscription (estimate $100,000).

 Consultants to review and analyze Cost Pool Allocation methodology provided by the City. A proper mechanism for charging overhead costs to the Rent Program needs to be established for the administrative support provided by the City of Richmond. The Rent Program and City will mutually solicit a new consultant to prepare a separate joint study to be used for cost allocation between the two parties (estimated $20,000).

 Translation Services
o Written translation ($8,000)
o Scheduled verbal interpretation ($6,000)
o On-demand verbal interpretation ($250)

 Property Information subscription ($250 per month, plus $1,000 annually for special reports, for a total of $4,000)
 Legal Information subscription ($250 per month, for a total of $3,000)  TRAKiT End User license for Citywide database ($2,205)

PROFESSIONAL AND ADMINISTRATIVE SERVICES
400206
Legal Services
Proposed Allocation:
$210,000

The allocation accounts for legal services provided by contractors for community members.

More specifically, the allocation includes funds for two categories of legal services:

1. Community Services Agency Contracts
o The Rent Program contracts with Bay Area Legal Aid in the amount of $75,000 to offer weekly legal service clinics for both Landlords and Tenants who are Richmond residents
o The Rent Program contracts with the Eviction Defense Center in the amount of $125,000 to provide legal referrals to individuals who need assistance with responding to Unlawful Detainer (eviction) lawsuits.

2. Legal costs
o The additional costs for legal filing fees in the event of litigation.

TRAVEL AND TRAINING
400245
Tuition Reimbursement
Proposed Allocation:
$800

The allocation accounts for reimbursement for tuition reimbursement, consistent with the City’s personnel policies ($800).

DUES AND PUBLICATIONS
400261
Memberships & Dues
Proposed Allocation:
$1,650

The allocation accounts for California BAR Association dues for three attorneys ($550 per attorney).

ADVERTISING AND PROMOTION
400271
Advertising & Promotional Materials
Proposed Allocation:
$800

The allocation accounts for newspaper announcements as required as part of the budget adoption process ($200) and monthly promotion on social media accounts ($600).

ADMINISTRATIVE EXPENSES
400280
Program Supplies
Proposed Allocation:
$5,380

The allocation includes funds for supplies not classified as office supplies, including:
 Emails for Rent Board Members ($100 per month, for a total cost of $1,200)  Business cards for staff members ($50 per order, for an estimated 12 orders, for a total cost of $600)
 Zoom Accounts
o 8 Standard Accounts ($1,313)
o 3 Webinar Accounts ($2,267)

OFFICE EXPENSES
400231
Postage and Mailing
Proposed Allocation:
$17,300

The allocation includes funds for mailing invoices, letters, and the Guide to Rent Control to Tenants and Landlords. Specifically, the allocation accounts for the following projects and assumes a postage rate of $0.58 per envelope for all projects, with the exception of the Guide to Rent Control mailing, which assumes a postage rate of $0.50 per envelope:
 Rental Housing Fee invoices to 5,716 Landlords: $3,315  Late Rental Housing Fee invoices to 1,905 Landlords: $1,105  Sending the Notice of Apparent Lawful Rent Ceiling to 1,000 Tenants and Landlords:
$580
 Sending Rent Validation Reports to 1,000 Tenants and Landlords: $580  Mailing the Guide to Rent Control to 23,439 Tenants and Landlords: $11,719

OFFICE EXPENSES
400232 – 400233
Printing and Binding
Proposed Allocation:
$24,904
The allocation includes funds for printing resources for community members, as well as invoices, letters, and the Guide to Rent Control for Tenants and Landlords. Specifically, the allocation accounts for the following projects:

 General print materials: $4,000 (includes $500 in account string 400233)  Rental Housing Fee invoices to 5,716 Landlords: $286
 Late Rental Housing Fee invoices to 1,905 Landlords: $95  Printing the Notice of Apparent Lawful Rent Ceiling for 1,000 Tenants and Landlords:
$50
 Printing Rent Validation Reports for 1,000 Tenants and Landlords: $50  Printing the Guide to Rent Control for 23,439 Tenants and Landlords: $19,923

OFFICE EXPENSES
400304
Equipment Rental
Proposed Allocation:
$9,000

The allocation provides for funding for the lease of combination printers, scanners, copiers, and fax machines at City Hall. In 2019, the Rent Program, in partnership with the Richmond Promise, Arts and Culture, and Department of Infrastructure, Maintenance, and Operations, entered into a 36-month lease for two machines for the second floor of 440 Civic Center Plaza building. The cost of the lease is shared equally among participating entities, while the cost-per-copy is charged to each entity. The cost to the Rent Program is approximately $666 per month, which includes $558 for the lease of two machines and approximately $108 for cost-per-copy charges ($0.0055 per page for black and white copies; $0.048 for color.)

MISCELLANEOUS EXPENSES
400321 - 400322
Miscellaneous Contributions and Expenses
Proposed Allocation:
$4,000

The allocation provides for the Rent Program to continue to partner with the UC Berkeley Public Service Center to retain a student intern for the 2021-22 academic year. The estimated cost is approximately $2,000 per intern. The allocation also includes $2,000 for miscellaneous expenses based on minor unforeseen program needs throughout the year.

OFFICE SUPPLIES
400341
Office Supplies
Proposed Allocation:
$5,000

The Rent Program purchases office supplies through the City’s purchasing division which contracts with an office supply vendor. This allocation covers traditional office supplies necessary to maintain daily professional operations.

UTILITIES
400401
Telephone
Proposed Allocation:
$500

The allocation covers the cost of the Executive Director’s work cell phone service. During the Covid-19 pandemic, the Executive Director’s cell phone has been utilized by program staff to handle incoming calls to the main Rent Program phone line.

SUPPLEMENTAL INSURANCE
400552
General Liability Insurance
Proposed Allocation:
$9,300

The allocation covers the cost of a supplemental liability insurance policy (SLIP) for the Rent Program. More specifically, the policy accounts for Errors and Omissions and General Liability coverage.

COST POOL
400574 – 400591
General Liability, Admin Charges, Space
Proposed Allocation:
$48,217

The allocation covers General Liability, Administrative Charges, and space at City Hall for the Rent Program.

The Rent Program has been in discussions with the City of Richmond to evaluate the new methodology and accuracy of the allocation that covers General Liability and Administrative Charges. Staff reviewed the allocation for Gene ral Liability and Administrative Charges from the Finance (Budget) Department since being advised by the Finance Department that the Cost Pool amounts were anticipated to increase significantly.

The City’s new methodology must align with California law which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program.

Rent Program leadership are engaged in on-goin g discussions with the City Attorney’s, City Manager, Human Resources, and Finance Department regarding the budgeted Cost Pool and Fringe Benefits amounts. Rent Program st aff have reached a tentative solution and understanding with the City to hire consultants to review and analyze the Cost Pool Allocation methodology provided by the City. A proper me chanism for charging overhead costs to the Rent Program needs to be established for the ad ministrative support provided by the City of Richmond. The Rent Program and City will mutually solicit a new consultant to prepare a separate joint study to be used for cost a llocation between the tw o parties (Professional Services estimated $20,000).

 General Liability and Workers’ Compensation at a total cost of $0. The City’s new methodology must align to Section 50076 of the California Government Code which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program. Until this methodology has been researched and validated by consultants hired jointly with the City, no charge will be included in the budget.

 Administrative Charges (previously referred to as “Indirect Costs”) are allocated to City Departments to reimburse the General Fund for administrative services performed by central service departments (e.g. Information Technology (IT), Human Resources, Finance Department, City Manager, City Attorney, City Clerk, and City Council.) Allocations are determined in the City’s Cost Allocation Plan (CAP) which is conducted by an external consultant on a periodic basis. The Rent Program was not included in the most recent Cost Allocation Plan. The City Manager’s Office was used as the basis for the original figure in prior years. The new CAP was conducted by NBS, and the latest report dated April 25, 2022, requires further research and validation on the consultant’s findings. The City’s new methodology must align to Section 50076 of the California Government Code which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program. Until this methodology has been researched and validated by consultants hired jointly with the City, no charge will be included in the budget. The cost allocated in the budget is $0.

 Civic Center Allocation refers to the cost of space at 440 Civic Center Plaza. The cost of this space is based on the percentage of total occupied square footage at City Hall.

This percentage is then applied to the total annual debt service. Based on the most recent assessment conducted in 2017, the Rent Program is presumed to occupy

0.9% of the total square footage at City Hall. Since the Rent Program’s square footage has increased each year since 2017, the budgeted allocation has increased accordingly. The City anticipates conducting a new assessment in the near future, and as such, the cost of these charges may increase or decrease depending on their findings. The cost allocated in the budget is $48,217.

III. EXPENSE AND REVENUE PROJECTIONS

Overview
In accordance with the Rent Ordinance, the Rent Program’s budget is funded by a Residential Rental Housing Fee, paid by all Richmond Landlords. Table 2, below, contains a summary of funds expended and collected for departmental operations since the Program’s establishment in 2017. Collection efforts for all assessed fees are ongoing. In 2019, the Rent Board entered into a contract with a collection services agency to recover unpaid fees.

To date, the agency has collected approximately $50,000 in outstanding fee revenue. This figure is expected to grow as collection efforts continue.

Table 2. Expense and Revenue Summary

FISCAL YEAR BUDGETED
AMOUNT
FUNDS

EXPENDED

FEE REVENUE

COLLECTED
4 COLLECTION
RATE
2017-185
FY 16-17 (partial):
$1,150,433 $1,967,834 $2,753,3516 77% FY 17-18:
$2,425,338
2018-19 $2,804,925 $2,047,186 $2,192,672 78%
2019-20 $2,923,584 $2,264,738 $2,684,140 92%
2020-21 $2,896,242 $2,137,638 $2,778,234 96%
2021-22 $2,893,854 $2,178,4197 $2,362,6268 80%9 +

PROJECTED
Source: City of Richmond Rent Program, 2022 (reports generated using eTRAKiIT and MUNIS software systems.)

10-Year Financial Projection

A ten-year financial projection of revenue, expenses, and reserves is contained in Appendix B of this report. The projected Rental Housing Fee collection rate for the 2021-22 fiscal year is expected to be above 80 percent. There may be a slight decrease in the collection rate from prior years primarily attributable to the challenges posed by the Covid-19 pandemic.

Not only have many property owners experienced financial hardship because of the effects of the pandemic, but the Rent Program and City of Richmond’s ability to collect revenue has also been negatively impacted by the shift to remote work, which has significantly reduced staff time in the office and eliminated the possibility for property owners to pay the Rental Housing Fee in person at City Hall.

4 Includes revenue collected by the collection agency.
5 Includes the FY 2016-17 Rental Housing Fee (December 2016 – June 2017) 6 Includes revenue collected in FY 2017-18 for both the FY 2016-17 and FY 2017-18 fees. 7 Represents projected total expenses through the end of FY 2021-22. 8 Represents projected total revenues through the end of FY 2021-22, excluding interest. 9 Represents a collection rate based on projected expenses and revenues through the end of FY 2021-22.

IV. FISCAL YEAR 2022-23 RENTAL HOUSING FEE
STUDY

Introduction and Background

Section 11.100.060(l)(1) of the Rent Ordinance provides all Landlords shall pay a Residential Rental Housing Fee to fund the Rent Program budget. The amount of the Rental Housing Fee is established annually by the Richmond Rent Board and approved by the City Council.

Under Section 50076 of the California Government Code, fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service. Those fees must be approved by the City Council, as the legislative body, in public session.

The fee study is designed to allow the Rent Program to recover costs of all budgeted operations, including, but not limited to:

 Personnel costs of staff, benefits, and overtime;
 Risk management of general and supplemental liability insurance;  Charges allocated to City Departments to reimburse the General Fund for administrative services by central service departments (i.e. City Council, City Manager, City Attorney, City Clerk, Finance, HR, etc.);  Information Technology (IT) expenses associated with a property and rent- tracking database and maintenance of computer hardware and software;  Legal costs to support enforcement and defense of legal challenges to the Rent Ordinance;
 Costs of education and outreach, including the printing and distribution of print materials and hosting of community workshops and seminars;  Contracts for translation and other professional services;  An operating reserve to fund unanticipated costs and variations in collection of the Rental Housing Fee.

Structure of the Rental Housing Fee

Consistent with direction from the Rent Board in 2017, its first year of existence, the Fiscal Year 2016-17 and FY 2017-18 Rental Housing Fees were established as “flat fees,” applicable to all units regardless of partial or full applicability under the Rent Ordinance. This approach was utilized during the first 1.5 years of program startup since the tasks and associated benefits of the agency’s startup were reasonably shared among Rental Units regardless of status.

For the 2018-19 Fiscal Year, the Rent Board adopted a tiered fee, much like that contemplated in the 2017 Fee Study prepared by Management Partners. Under this approach, costs of program administration are allocated among three components or layers:
a general “program” layer (calculated at 55% of costs), a “just cause” layer (20% of total costs), and a “rent control” layer (25% of costs). Such allocations correspond with the

amount of resources spent administering each component of the program. Staff members recommend the Board continue to utilize a tiered-fee approach in its determination of the Fiscal Year 2022-23 Rental Housing Fee to ensure the requirements of Section 50076 of the California Government Code are met. The figure on the following page illustrates this concept and identifies key example tasks associated with each program component. This list is not exhaustive; the tasks below are identified for illustrative purposes only.

Figure 2. Fee Layers and Associated Tasks

The amount of the Rental Housing Fee applicable to a particular Rental Unit depends on its status. Units applicable to the Just Cause for Eviction requirements but exempt from the Rent Control provisions of the Ordinance (such as properties with only one dwelling unit on the parcel, governmentally subsidized units, condominiums, and permitted units built after February 1, 1995), are responsible for payment of Program and Just Cause for Eviction layers. Units subject to the Just Cause for Eviction and Rent Control provisions of the Rent Ordinance would be responsible for payment of all three layers. Units that are fully exempt from the Rent Ordinance are not responsible for payment of the Rental Housing Fee. Figure 3, below, identifies the types of units within each of these categories and the proposed fee.

Program Layer (55%)
•Agency administration and management
•Legal defense of the Rent Ordinance and agency policies •Preparing studies, regulations, and reports as directed by the Rent Board •Database development and maintenance
•Billing and collection of the Rental Housing Fee
•Website maintenance
•Development of informational materials
•Interdepartmental coordination
Just Cause for Eviction Layer (20%)
•Public education and outreach (i ncludes counseling on evictions) •Legal services referrals to community services agencies •Administration of Relocation Ordinance
•Administration of eviction-related complaints
•Evictions intervention mediations (payme nt plan agreements and mediations to avoid breach of lease/nuisance etc.)
•Processing of termination of tenancy notices and development of templates Rent Control Layer (25%)
•Public education and outreach (includes counseling)
•Legal services referrals to community services agencies •Administration of petition and hearings to adjudicate Rent Adjustment Petitions and Excess Rent Complaints
•Rent Registration and tracking of the Maximum Allowable Rent •Processing of rent increase notice s and courtesy compliance letters

Figure 3. Proposed Fees Applicable to Fully Covered, Partially Covered, and Fully Exempt Rental Units

Applicable Unit Counts and Database Development

The number of applicable Rental Units within each category is a critical input in the calculation of the Rental Housing Fees for partially and Fully Covered units. The Fiscal Year 2016-17 and 2017-18 Fee Study utilized data provided by the Contra Costa County Assessor’s Office to identify suspected Rental Units. While County Assessor data may be used to arrive at an estimated number of total Rental Units, it cannot produce an exact figure. Nevertheless, County Assessor data was the best and most readily available data at the time of the Fiscal Year 2016-17 and 2017-18 Fee Study.

Since the first iteration of the Rental Housing Fee Study in Fiscal Year 2017-18, staff have continued to refine the database of Rental Units in the City of Richmond, most notably through the completion of an exemption verification project of single-family homes in the City to accurately identify units that are truly rented. This project involved mailing an introductory letter and policy information to all single-family homes and condominiums possessing one of the following characteristics in the County Assessor database:

(1) No Homeowner’s Tax Exemption was claimed
(2) The site address of the property did not match the owner on record’s mailing address Approximately 15,500 properties met the above criteria. To confirm applicability under the Rent Ordinance, Rent Program staff members mailed information about the requirements of the Rent Ordinance to all the owners of properties that met the criteria above. Owners of $226
per Unit
$127
per Unit
$0
per Unit

properties in the City of Richmond that did not contain any Rental Units (for example, owners of condominiums that are owner-occupied) were required to complete and submit a Declaration of Owner Occupancy and/or Exemption form and submit documentation to allow staff members to approve the exemption. Rent Program staff members received and processed approximately 1,731 Declaration of Owner Occupation and/or Exemption forms.

Additional sources of data, including the identification of Rental Units not identified in the previous fee study, include:

 Rental Units enrolled in the Rent Program online at www.richmondrent.org/enroll  Rental Units identified by the Rental Inspection Program  Rental Units participating in the Section 8 Housing Choice Voucher Program  Rental Units with an active business license
 Rental Units in subsidized housing developments, such as those built with Low Income Housing Tax Credits (LIHTC), based on the inventory of deed-restricted affordable housing prepared by Rent Program staff members in 2017  Unknown Rental Units identified through Tenant inquiries and other sources to the Rent Program

Since the adoption of last year’s Rental Housing Fee, staff members have continued to refine the database of Rental Units through processing of Property Enrollment and Owner Declaration forms. These processes have further unveiled suspected Rental Units that are not truly rented, decreasing the total number of applicable Rental Units among which the Rent Program budget is divided to calculate the Rental Housing Fee. For example, the processing of Property Enrollment forms has unearthed many multifamily properties where an owner may occupy one unit. In such case, the status of a unit would be changed from “Compliant” or “Noncompliant” [Partially or Fully Covered Rental Unit] to “Owner Occupied.” The table on the following page summarizes these changes as of February 2021. In total, records indicate that the Rent Program is aware of 18,150 Rental Units applicable to the Rent Ordinance.

According to the 2019 American Community Survey (Table DP04), the number of renter- occupied housing units in Richmond is reported as 20,467 units, with a margin of error of 1,767. The American Community Survey is a sample, not a complete count, which is why the margin of error is reported. This means that there is estimated to be between 18,700 and 22,234 renter-occupied housing units in Richmond. This data suggests that there could be at least one thousand Rental Units absent from the Rent Program’s database. Rent Program staff are committed to dedicating resources to compliance and outreach projects to ensure that all Rental Units subject to the Rent Ordinance are assessed the Rental Housing Fee and all Landlords who should be paying the Rental Housing Fee receive an invoice and are made aware of their financial obligation to the Rent Program.

Table 3. Unit Status Counts, 2020 – 2022

NOTE: These numbers are continuously being verified and all figures are subject to change.

STATUS 2020
TOTAL
2021
TOTAL
2022
TOTAL
CHANGE

BETWEEN
2021
AND
2022

SUSPECTED FULLY COVERED
RENTAL UNITS 8 31 33 +2
FULLY COVERED RENTAL UNITS 7,425 7,484 7,632 +148
SUBTOTAL – FULLY COVERED UNITS 7,433 7,515 7,665 +150

SUSPECTED PARTIALLY COVERED

RENTAL UNITS (EXCLUDING GOV

SUBSIDIZED RENTAL UNITS)
120 203 124 -79

PARTIALLY COVERED RENTAL UNITS
(EXCLUDING GOV SUBSIDIZED RENTAL
UNITS)
5,568 5,497 5,863 +366
SUBTOTAL – PARTIALLY COVERED

UNITS (EXCLUDING GOV SUBSIDIZED

RENTAL UNITS)
5,688 5,700 5,987 +287

SUBTOTAL - GOVERNMENTALLY
SUBSIDIZED RENTAL UNITS 4,512 4,508 4,498 -10
TOTAL APPLICABLE UNITS 17,633 17,723 18,150 +427
OWNER OCCUPIED 5,463 5,625 5,759 +134
RENT FREE 250 259 250 -9
NOT AVAILABLE FOR RENT 317 315 265 -50
NOT APPLICABLE10 682 805 533 -272

TOTAL NON-APPLICABLE OR
CONDITIONALLY EXEMPT UNITS 6,712 7,004 6,807 -197

Rental Housing Fees Associated with Proposed FY 2022-23 Budget

Table 4, below, present the fees corresponding to the proposed Fiscal Year 2022-23 budget:

Table 4. Fiscal Year 2022-23 Proposed Budget and Rental Housing Fees

UNIT COUNTS PROPOSED FY
2022-23
CHANGE

FROM FY
2022 TO
2023
TOTAL BUDGET11 $3,062,686 +$175,923
(+6.1%)

FULLY COVERED
UNITS12 7,665 $226 +$8
(+3.5%)

PARTIALLY COVERED

UNITS (INCLUDING
SUBSIDIZED UNITS)13
10,485 $127 +$4
(+3.4%)
TOTAL REVENUE14 $3,106,686 +$168,372
(+5.7%)

Comparison to Previously Adopted Rental Housing Fee and Peer Jurisdictions

On May 4, 2021, the Richmond City Council adopted Resolution 65-20, approving the Fiscal Year 2021-22 Residential Rental Housing Fee in the City’s master fee schedule of $218 per Controlled Rental Unit and $123 per Partially Covered Rental Unit. Table 5, below, contains a historical comparison of the Residential Rental Housing Fees charged in previous years.

Table 5. Comparison of Proposed FY 2022-23 Rental Housing Fee to Prior Year Fees

FISCAL YEAR FULLY COVERED

RENTAL UNITS

PARTIALLY

COVERED RENTAL
UNITS

GOVERNMENTALLY

SUBSIDIZED RENTAL
UNITS15
2017-18 $145 $145 N/A
2018-19 $207 $100 $50
2019-20 $212 $112 N/A
2020-21 $219 $124 N/A
2021-22 $218 $123 N/A
2022-23 (Proposed) $226 $127 N/A

11 Total expenditures include a budgeted reserve equal to 18 percent of proposed expenses 12 Includes suspected Fully Covered Rental Units
13 Includes suspected Partially Covered Rental Units
14 Fees rounded to the nearest full dollar; includes revenue from collections agency and interest 15 Governmentally Subsidized Rental Units are not segregated from partially covered units. The only year in which that occurred was FY 18’-19’. As the same level of services are offered for both types of Rental Units, they are charged the same Fee.

Table 6 compiled by the Richmond Rent Program on this page compares the proposed Rental Housing Fee to fees in other jurisdictions with rent programs in the state of California.

This table calculates a per unit cost of administration, revealing that of California’s actively enforced programs. Richmond’s proposed fees are comparable to the peer jurisdictions with actively enforced rent programs, it is important to consider that Richmond’s average rental rates are also less than those in peer rent control jurisdictions.

Table 6: Comparison of Program Budgets, Unit Counts, Fees, and Median Rents in Case Study Cities

JURISDICTION
2021-22

PROGRAM
BUDGET

APPLICABLE
RENTAL
UNITS

RENTAL

HOUSING FEES
(PER UNIT)

AVERAGE
RENT16

PORTION OF

FEE PASSED

THROUGH TO

TENANTS

ACTIVELY ENFORCED RENT PROGRAMS
BERKELEY $5,822,405 19,607 $250 $3,164
50%, City may
reimburse low-
income
Tenants17

EAST PALO
ALTO $400,930 2,325 $222 $2,662 50%
OAKLAND $5,954,690 65,000 $101 $2,772 50%

RICHMOND
$3,062,686
(proposed for
FY 2022-23)

7,665 Fully
Covered Units;
10,485
Partially
Covered Units

$226 per Fully
Covered Unit; $127
per Partially
Covered Unit
(proposed for FY
2022-23)

$2,537 None
SANTA MONICA $5,505,178 26,620 $198 $3,891 50%

COMPLAINT-DRIVEN RENT PROGRAMS
LOS ANGELES $7,575,111 631,000
$90 per Fully
Covered Unit; $30
per Partially
Covered Unit
$2,661 50%
WEST
HOLLYWOOD $2,335,728 15,800 $14418 $3,354
50% (excludes
Section 8
Tenants)
ALAMEDA $1,376,529
12,174 Fully
Regulated
Units; 1,887
Partially
Regulated
Units
$148 per Fully
Regulated Unit;
$100 per Partially
Regulated Unit; $0
for Subsidized
Units
$2,560 50%
SAN
FRANCISCO $9,381,302 173,000
$59 per apartment
unit; $29.50 per
residential hotel room

$3,230 50%

16 Source: RentCafe: The average apartment per square footage varies greatly depending on unit type, with less expensive and luxury alternatives for houses and apartments alike. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments, and 3- bedroom apartments offer more square footage. Zillow Rent Index (ZRI) was used as the source in prior year. 17 Pass-through only applies to tenancies that began prior to January 1, 1999. 18 West Hollywood’s Rent Program receives support from the City’s General Fund, and the $144 fee allows the program to recover 65% of total costs. The program would need to collect $221 per unit to recover 100% of costs.

Conclusion and Recommended Actions

The revised 2022-23 budget will support the overarching goal of the Rent Program; that is, to continue to develop as an actively enforced program that equips community members with an understanding of their rights and responsibilities under the Rent Ordinance. The Fiscal Year 2022-23 Fee Study will allow the agency to recover costs of all budgeted operations and does not necessitate changing the amount of the Rental Housing Fee.

The recommendations put forth by staff for consideration by the Rent Board are as follows:

 Adopt the proposed Fiscal Year 2022-23 Budget to provide the support necessary for continued development of all Rent Program operations.

 Receive and approve the Revised Fiscal Year 2022-23 Rental Housing Fee Study.

 Direct staff to prepare a resolution, consistent with the Rent Board’s approved Fee Study and Budget, recommending to the City Council adoption of a two-tier fee structure for Fiscal Year 2022-23 of $226 for Fully Covered Rental Units and $127 for Partially Covered Rental Units.

V. UNIT DESCRIPTIONS
Management Unit (2.25 FTE)
The Management Unit, comprised of the Executive Director, Deputy Director, and Senior Administrative Analyst (0.25 FTE), is responsible for guiding the development of the Rent Program agency and managing day-to-day operations. The Senior Administrative Analyst supports the Executive Director with confidential matters of the Rent Program and administers full collaboration with the Rent Board. The Management Unit also conducts policy research to support the agency and Rent Board, which includes conducting surveys and studies to help guide administrative improvements and the formation of sound public policy. The Management Unit oversees all personnel-related issues (hiring, training, discipline in conformance with MOU’s, etc.) Other duties include providing staff support to the Rent Board, including but not limited to the preparation of agendas, minutes, and documents for all Rent Board meetings. Central to the Management Unit’s duties are preparation, monitoring, and reporting of the annual Rent Program budget. The Management Unit also publishes the Rent Program Annual Report, required by the Rent Ordinance.

Legal Unit (2.25 FTE)
The Legal Unit includes Staff Attorneys (2 FTE) and a Senior Administrative Analyst (0.25 FTE). The duties of the Legal Unit include representing the Board in litigation, advising the Director and the Rent Board on legal matters (this may include the preparation of Confidential Legal Memoranda and ensuring compliance with Brown Act requirements, reviewing and opining on decisions on appeal, coordinating responses to public records act requests, training Rent Program Services Analysts, supervising investigations and lawsuits for non-compliance, reviewing contracts, and responding to legal challenges to the Ordinance and applicable regulations. Staff members in the Legal Unit are also responsible for drafting regulations for consideration by the Rent Board and establishing processes to monitor rent increase and termination notices in accordance with the requirements of the Rent Ordinance.

Public Information and Enrollment Unit (6.75 FTE)
The Public Information and Enrollment Unit, comprised of a Senior Rent Program Services Analyst, Administrative Aides (3 FTE), Rent Program Services Analysts (2 FTE) and Administrative Student Intern (0.75 FTE), is responsible for educating community members about Landlord and Tenant rights and responsibilities under the Rent Ordinance, as well as related State and Federal laws. This includes maintenance of the agency’s property enrollment and tenancy registration database. The enrollment and tenancy registration database is an essential tool used to generate accurate Rental Housing Fee invoices, track the Maximum Allowable Rent for Controlled Rental Units, and manage contact and case information for all Rental Units in the City of Richmond. Public Information and Enrollment Unit staff members are responsible for planning and executing the annual billing cycle of the Rental Housing Fee and managing the collection of revenue, including late fees. Community education is provided in the form of one-on-one counseling, facilitating mediation sessions, drafting print materials such as the Guide to Rent Control, and providing direct referrals to community legal services agencies. Staff members in this unit also plan, prepare, and conduct monthly community educational workshops for Landlords and Tenants, maintain

the agency’s social media accounts, and assist Landlords and Tenants with the filing of Rent Adjustment Petitions.

Hearings Unit (1.75 FTE)
The Hearings Unit consists of a Hearing Examiner, who is supported by a Senior Administrative Analyst (0.5 FTE) and an Administrative Student Intern (0.25 FTE). The main functions of the Hearings Unit include administering the petition process, conducting hearings, and issuing decisions, conducting settlement conferences, acting as a back-up resource on interpretation of the Rent Ordinance and regulations, assisting with drafting public information documents such as the Guide to Rent Control and other print and online materials and maintaining all forms required for administration of the Rent Adjustment Petition process. Staff members in the Hearings Unit also assist with special projects, such as working with City staff to develop rent registration/tracking software to adjust rents in the Maximum Allowable Rent database.

VI. APPENDICES

Appendix A: Adopted FY 2022-23 Budget and Fee Study Calculations

Appendix B: Ten-year Financial Projection

FY 2022‐23 Rent Program Budget APPENDIX A
# UNITS Proposed Fee Revenue
Program
Fee
Just Cause
Fee
Rent Control
Fee
7,665 $226 $1,729,668 2022-23 87.60$ 39.53 $ 98.52 $ 10,485 $127 $1,333,019
$3,062,687
BUDGET
Object # City Account Description
FY 18-19

ACTUALS
FY 19-20

ACTUALS
FY 20-21

ACTUALS
FY 21-22

PROPOSED
FY 22-23
PROPOSED Notes
Program
Allocation
(%)
Program
Allocation ($)
Just Cause
Allocation
(%)
Just Cause
Allocation
($)
Rent Control
Allocation (%)
Rent Control
Allocation ($)

REVENUES
340445 Fees/Admin Fees 2,189,703 2,681,689 2,764,961 2,893,854 3,062,687 (1) 361701 Int & Invest/Pooled-All Other 367 11,537 6,096 14,460 14,000 364867 Revenue from Collections 133 13,042 24,796 30,000 30,000 TOTAL REVENUES 2,190,203 2,706,268 2,795,854 2,938,314 3,106,687

EXPENSES
400001 Salaries & Wages/Executive 530,092 639,594 649,356 677,798 724,848 (2) 55% 398,666 20% 144,970 25% 181,212 400002 Salaries & Wages/Mgmt-Local 21 294,152 263,080 183,838 284,628 324,846 (2) 55% 178,665 20% 64,969 25% 81,212 400003 Salaries & Wages/Local 1021 128,866 150,317 168,422 169,860 202,332 (2) 55% 111,283 20% 40,466 25% 50,583 400006 Salaries & Wages/PT-Temp 49,557 45,905 32,244 43,036 35,776 (2) 55% 19,677 20% 7,155 25% 8,944 400031 Overtime/General 4,778 2,094 1,312 2,500 2,500 55% 1,375 20% 500 25% 625 400048 Other Pay/Bilingual Pay 6,993 9,064 9,719 11,377 11,172 55% 6,145 20% 2,234 25% 2,793 400049 Other Pay/Auto Allowance 4,200 4,200 4,200 4,200 4,200 55% 2,310 20% 840 25% 1,050 400050 Other Pay/Medical-In Lieu of 2,700 1,500 - 2,400 - 55% - 20% - 25% - 400079 Comp Absences/WC-Prof-Mgt-Tec 1,486 5,328 - - - 55% - 20% - 25% - Subtotal - Salaries & Wages 1,022,823 1,121,084 1,049,091 1,195,799 1,305,674 718,120 261,135 326,418 400103 P-Roll Ben/Medicare Tax-ER Shr 14,937 16,389 15,313 15,992 18,207 (3) 55% 10,014 20% 3,641 25% 4,552 400104 P-Roll Ben/PERS Benefits - - - - - 55% - 20% - 25% - 400105 P-Roll Ben/Health Insurance Be 146,557 136,575 128,611 140,309 232,291 (3) 55% 127,760 20% 46,458 25% 58,073 400106 P-Roll Ben/Dental Insurance 16,652 17,021 17,534 15,508 17,520 (3) 55% 9,636 20% 3,504 25% 4,380 400109 P-Roll Ben/Employee Assistance 430 473 422 464 216 (3) 55% 119 20% 43 25% 54 400110 P-Roll Ben/Professional Dev-Mg 3,728 5,200 1,500 3,750 6,750 (3) 55% 3,713 20% 1,350 25% 1,688 400111 P-Roll Ben/Vision 2,106 2,095 2,049 2,052 2,052 (3) 55% 1,129 20% 410 25% 513 400112 P-Roll Ben/Life Insurance 5,557 4,006 3,433 3,713 4,139 (3) 55% 2,276 20% 828 25% 1,035 400114 P-Roll Ben/Long Term Disabilit 9,408 10,100 9,259 10,076 12,342 (3) 55% 6,788 20% 2,468 25% 3,086 400116 P-Roll Ben/Unemployement Ins 1,860 5,100 4,960 5,730 5,472 (3) 55% 3,010 20% 1,094 25% 1,368 400117 P-Roll Ben/Personal/Prof Dev 750 1,493 1,500 5,250 2,250 (3) 55% 1,238 20% 450 25% 563 400118 P-Roll Ben/Worker Comp-Injury Appt - - 692 359 - (3) 55% - 20% - 25% - 400121 P-Roll Ben/Worker Comp-Clerica 13,806 12,154 14,541 19,240 24,001 (3) 55% 13,201 20% 4,800 25% 6,000 400122 P-Roll Ben/Worker Comp-Prof 69,352 60,744 74,891 79,290 - (3) 55% - 20% - 25% - 400127 P-Roll Ben/OPEB 39,338 43,623 42,145 22,763 40,723 (3) 55% 22,398 20% 8,145 25% 10,181 400130 P-Roll Ben/PARS Benefits 642 434 50 94 - (3) 55% - 20% - 25% - 400149 P-Roll Ben/Misc 123,021 140,616 139,314 151,638 156,287 (3) 55% 85,958 20% 31,257 25% 39,072 400151 P-Roll Ben/Misc (UAL) 162,985 235,683 271,234 271,391 287,268 (3) 55% 157,997 20% 57,454 25% 71,817 Subtotal Fringe Benefits 611,127 691,706 727,447 747,618 809,518 445,235 161,904 202,380 400201 Prof Svcs/Professional Svcs 32,112 38,241 10,957 18,350 143,455 (4) 55% 78,900 20% 28,691 25% 35,864 400206 Prof Svcs/Legal Serv Cost 137,614 193,742 149,994 210,000 210,000 (5) 10% 21,000 70% 147,000 20% 42,000 400220 Prof Svcs/Info Tech Services 2,375 - 2,142 - - 55% - 20% - 25% - 400241 Travel & Trng/Meal Allowance 359 - - - - 55% - 20% - 25% - 400242 Travel & Trng/Mileage 1,284 17 - - - 55% - 20% - 25% - 400243 Travel & Trng/Conf, Mtng Trng 280 - - - - 55% - 20% - 25% - 400245 Travel & Trng/Tuition Rmb/Cert 800 800 - 800 800 (6) 55% 440 20% 160 25% 200 400261 Dues & Pub/Memberships & Dues 824 1,590 1,453 1,650 1,650 (7) 55% 908 20% 330 25% 413 400263 Dues & Pub/Subscription 1,500 - - - - 55% - 20% - 25% - 400271 Ad & Promo/Advertising & Promo Materials 1,559 2,106 1,702 5,675 800 (8) 55% 440 20% 160 25% 200 400272 Ad & Promo/Community Events 1,563 1,722 - - - 55% - 20% - 25% - 400280 Adm Exp/Program Supplies 5,292 1,600 3,432 3,950 5,380 (9) 55% 2,959 20% 1,076 25% 1,345 Subtotal Prof & Admin Services 185,563 239,819 169,680 240,425 362,085 104,647 177,417 80,021 400231 Off Exp/Postage & Mailing 10,849 5,905 6,528 22,647 17,300 (10) 55% 9,515 20% 3,460 25% 4,325 400232 Off Exp/Printing & Binding 12,071 3,295 3,428 25,807 24,404 (11) 55% 13,422 20% 4,881 25% 6,101 400233 Off Exp/Copying & Duplicating 46 - 236 500 500 55% 275 20% 100 25% 125 400304 Rental Exp/Equipment Rental 8,721 4,532 2,488 8,000 9,000 (12) 55% 4,950 20% 1,800 25% 2,250 400321 Misc Exp/Misc Contrib 3,000 - 1,500 3,000 2,000 (13) 55% 1,100 20% 400 25% 500 400322 Misc Exp/Misc Exp 3,061 2,262 - 2,925 2,000 55% 1,100 20% 400 25% 500 400341 Off Supp/Office Supplies 8,721 6,024 1,891 6,795 5,000 55% 2,750 20% 1,000 25% 1,250 400344 Off Supp/Computer Supplies 18 783 - - - 55% - 20% - 25% - Subtotal Other Operating 46,486 22,801 16,072 69,674 60,204 33,112 12,041 15,051 400401 Utilities/Tel & Telegraph 254 414 551 500 500 55% 275 20% 100 25% 125 400538 Contract Svcs/Other Contract Svcs - - 103 - - 55% - 20% - 25% - 400552 Prov Fr Ins Loss/Ins Gen Liab 8,029 8,765 9,047 9,300 9,300 55% 5,115 20% 1,860 25% 2,325 400574 Cost Pool/(ISF)-Gen Liab 55,701 75,144 69,513 79,937 - (14) 55% - 20% - 25% - 400586 Cost Pool/(CAP)-Admin Charges 51,454 51,454 51,454 52,481 - (14) 55% - 20% - 25% - 400591 Cost Pool/(IND)Civic Ctr Alloc 52,420 47,026 50,289 50,286 48,217 55% 26,519 20% 9,643 25% 12,054 400601 Noncap Asst/Comp Hrdware<5K - 6,526 - 10,800 - 55% - 20% - 25% - 400604 Noncap Asst/Furniture <5K 13,328 - - - - 55% - 20% - 25% - TOTAL EXPENSES 2,047,186 2,264,738 2,143,246 2,456,820 2,595,497 1,333,024 624,099 638,374 OPERATING RESERVE 560,985 424,794 420,821 429,944 467,190 (15) 55% 256,954 20% 93,438 25% 116,797 TOTAL BUDGET 2,804,925 2,923,584 2,896,242 2,886,764 3,062,687 1,589,978 717,537 755,172 Notes:
(1) Assumes a Fiscal Year 2022-23 Rental Housing Fee of $226 for Fully Covered unit and $127 for Partially Covered units (2) See page 11 of the budget and fee study report for detailed salary and wage assumptions (3) The Rent Program is seeking the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages. (4) Includes $100,000 for cloud-based solution - IT charge, $20,000 for consultants - Cost Pool and Fringe Benefits, $2,205 TRAKiT annual fee, $4,000 for a property information subscription, $3,000 for a legal research subscription, $8,000 for scheduled interpretation, $6,000 for written translation, and $250 for on-demand interpretation services. (5) Includes $125,000 contract with the Eviction Defense Center to assist with Unlawful Detainer cases, $75,000 for a contract with Bay Area Legal Aid for the weekly Housing Rights Clinics, and $10,000 for legal filing fees in the event of litigation.
(6) In accordance with City personnel policies, eligible employees may receive reimbursement of up to $800 for higher education tuition. (7) Anticipated cost of Bar Association dues for three attorneys ($550 per Attorney). (8) Budgeted amount includes funds to satisfy the requirement to publish notices in the newspaper for public hearings as part of the budget adoption process and social media promotions. (9) Budgeted amount includes the cost of email accounts for Rent Board Members, business cards, and videoconference/webinar accounts. (10) Budgeted amount reflects anticipated postage costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (11) Budgeted amount reflects anticipated printing costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (12) Lease of copy machines including a cost-per-copy amount. 36-month lease ends in 2022. (13) Stipends for UC Berkeley Public Service Center interns, ranging from $1,000 -$1,500 per intern. (14) Rent Program is working with the City to determine the proper methodology of Cost Pool allocation, new methodology is under review. (15) Budgeted reserve is equal to 18 percent of total operating expenses consistent with the Rent Board's proposed Reserve Policy.

ADOPTED FY 2022 - 2023 RENT PROGRAM BUDGET AND FEE STUDY

FEE STUDY
1 City of Richmond Rent Program
10-Year Financial Projections
As of April 2022
APPENDIX 2
Object # City Account Description 2018-19 2019-20 2020-21 2021-22 2021-22 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 REVENUES Actual to 3/31/22 Projected Total
340445 Fees/Admin Fees (a) 2,189,703 2,681,689 2,764,961 2,225,353 104,431 2,329,784 3,062,687 3,093,314 3,155,180 3,218,284 3,282,649 3,348,302 3,415,268 3,483,574 3,553,245 361701 Int & Invest/Pooled-All Other 367 11,537 6,096 3,668 1,542 5,210 14,000 14,280 14,566 14,857 15,154 15,457 15,766 16,082 16,403 364867 Revenue from Collections 133 13,042 24,796 17,426 10,206 27,632 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Total Revenues 2,190,203 2,706,268 2,795,854 2,246,447 116,179 2,362,626 3,106,687 3,137,594 3,199,746 3,263,141 3,327,803 3,393,759 3,461,035 3,529,655 3,599,648

EXPENSES
Salaries & Wages
400001 Salaries & Wages/Executive 530,092 639,594 649,356 501,534 175,535 677,069 724,848 739,345 754,132 769,214 784,598 800,290 816,296 832,622 849,275 400002Salaries & Wages/Mgmt-Local 21 294,152 263,080 183,838 106,525 35,508 142,033 324,846 331,343 337,970 344,729 351,624 358,656 365,829 373,146 380,609 400003Salaries & Wages/Local 1021 128,866 150,317 168,422 103,883 36,490 140,373 202,332 206,379 210,506 214,716 219,011 223,391 227,859 232,416 237,064 400006 Salaries & Wages/PT-Temp 49,557 45,905 32,244 25,690 9,970 35,660 35,776 36,492 37,221 37,966 38,725 39,500 40,290 41,095 41,917 400031 Overtime/General 4,778 2,094 1,312 1,251 542 1,793 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 400048 Other Pay/Bilingual Pay 6,993 9,064 9,719 5,854 1,956 7,810 11,172 11,395 11,623 11,856 12,093 12,335 12,581 12,833 13,090 400049 Other Pay/Auto Allowance 4,200 4,200 4,200 3,150 1,050 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 400050 Other Pay/Medical-In Lieu of 2,700 1,500 - - - - - - - - - - - - - 400058 OTHER PAY/Bonuses - - - 34,200 - 34,200 - - - - - - - - - 400079 Comp Absences/WC-Prof-Mgt-Tec 1,486 5,328 - - - - - - - - - - - - - Subtotal - Salaries & Wages 1,022,823 1,121,084 1,049,091 782,086 261,052 1,043,138 1,305,674 1,331,703 1,358,253 1,385,334 1,412,957 1,441,132 1,469,871 1,499,184 1,529,084 Fringe Benefits 400103 P-Roll Ben/Medicare Tax-ER Shr 14,937 16,389 15,313 11,377 3,801 15,178 18,207 18,570 18,940 19,318 19,703 20,096 20,497 20,905 21,322 400104 P-Roll Ben/PERS Benefits - - - - - - - - - - - - - - - 400105 P-Roll Ben/Health Insurance Be 146,557 136,575 128,611 117,105 42,264 159,369 232,291 236,922 241,645 246,463 251,378 256,390 261,503 266,718 272,038 400106 P-Roll Ben/Dental Insurance 16,652 17,021 17,534 9,858 3,408 13,265 17,520 17,869 18,226 18,589 18,960 19,338 19,723 20,117 20,518 400109 P-Roll Ben/Employee Assistance 430 473 422 198 43 241 216 220 225 229 234 238 243 248 253 400110 P-Roll Ben/Professional Dev-Mg 3,728 5,200 1,500 - - - 6,750 6,885 7,022 7,162 7,305 7,450 7,599 7,750 7,905 400111 P-Roll Ben/Vision 2,106 2,095 2,049 1,159 401 1,560 2,052 2,093 2,135 2,177 2,221 2,265 2,310 2,356 2,403 400112 P-Roll Ben/Life Insurance 5,557 4,006 3,433 2,491 835 3,326 4,139 4,222 4,306 4,392 4,479 4,568 4,660 4,752 4,847 400114 P-Roll Ben/Long Term Disabilit 9,408 10,100 9,259 5,566 1,309 6,875 12,342 12,588 12,839 13,095 13,356 13,622 13,894 14,171 14,454 400116 P-Roll Ben/Unemployement Ins 1,860 5,100 4,960 3,175 1,305 4,480 5,472 5,581 5,692 5,806 5,922 6,040 6,160 6,283 6,408 400117 P-Roll Ben/Personal/Prof Dev 750 1,493 1,500 - - - 2,250 2,295 2,341 2,387 2,435 2,483 2,533 2,583 2,635 400118 P-Roll Ben/Worker Comp-Injury Appt - - 692 - - - - - - - - - - - 400121 P-Roll Ben/Worker Comp-Clerica 13,806 12,154 14,541 5,886 2,040 7,926 24,001 24,479 24,968 25,465 25,973 26,491 27,019 27,558 28,108 400122 P-Roll Ben/Worker Comp-Prof 69,352 60,744 74,891 35,268 12,241 47,508 - - - - - - - - - 400124 P-Roll Ben/CON-MEDICL EE Share - - - - - - - - - - - - - - 400127 P-Roll Ben/OPEB 39,338 43,623 42,145 29,429 10,153 39,582 40,723 41,535 42,363 43,208 44,069 44,948 45,844 46,758 47,691 400130 P-Roll Ben/PARS Benefits 642 434 50 274 130 404 - - - - - - - - - 400149 P-Roll Ben/Misc 123,021 140,616 139,314 94,260 32,508 126,768 156,287 159,403 162,581 165,822 169,129 172,501 175,941 179,450 183,029 400151 P-Roll Ben/Misc (UAL) 162,985 235,683 271,234 192,396 64,905 257,301 287,268 292,995 298,836 304,795 310,872 317,071 323,394 329,843 336,422 Subtotal Fringe Benefits 611,127 691,706 727,447 508,443 175,340 683,783 809,518 825,656 842,117 858,907 876,033 893,502 911,320 929,494 948,032 Prof & Admin Services
400201Prof Svcs/Professional Svcs 32,112 38,241 10,957 7,491 4,166 11,657 143,455 146,324 149,251 152,236 155,280 158,386 161,554 164,785 168,080 400206Prof Svcs/Legal Serv Cost 137,614 193,742 149,994 139,578 62,498 202,076 210,000 214,200 218,484 222,854 227,311 231,857 236,494 241,224 246,048 400220Prof Svcs/Info Tech Services 2,375 - 2,142 - - - - - - - - - - - - 400241Travel & Trng/Meal Allowance 359 - - - - - - - - - - - - - - 400242Travel & Trng/Mileage 1,284 17 - - - - - - - - - - - - - 400243Travel & Trng/Conf, Mtng Trng 280 - - - - - - - - - - - - - - 400245Travel & Trng/Tuition Rmb/Cert 800 800 - - - - 800 800 800 800 800 800 800 800 800 400261Dues & Pub/Memberships & Dues 824 1,590 1,453 1,197 1,043 2,240 1,650 2,400 2,448 2,497 2,547 2,598 2,650 2,703 2,757 400263Dues & Pub/Subscription 1,500 - - - - - - - - - - - - - - 400271Ad & Promo/Advertising & Promo 1,559 2,106 1,702 3,928 3,087 7,016 800 816 832 849 866 883 901 919 937 400272Ad & Promo/Advertising & Promo 1,563 1,722 - - - - - - - - - - - - 400280Adm Exp/Program Supplies 5,292 1,600 3,432 934 468 1,402 5,380 5,487 5,597 5,709 5,823 5,940 6,058 6,180 6,303 Subtotal Prof & Admin Services 185,563 239,819 169,680 153,128 71,262 224,390 362,085 370,027 377,412 384,944 392,627 400,464 408,457 416,610 424,926 Other Operating
400231Off Exp/Postage & Mailing 10,849 5,905 6,528 14,222 3,628 17,850 17,300 17,646 17,999 18,359 18,726 19,100 19,482 19,872 20,270 400232Off Exp/Printing & Binding 12,071 3,295 3,428 735 175 910 24,404 24,892 25,390 25,898 26,416 26,944 27,483 28,033 28,593 400233Off Exp/Copying & Duplicating 46 - 236 - - - 500 510 520 531 541 552 563 574 586 400304Rental Exp/Equipment Rental 8,721 4,532 2,488 1,928 808 2,736 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 400321Misc Exp/Misc Contrib 3,000 - 1,500 1,500 1,500 3,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 400322Misc Exp/Misc Exp 3,061 2,262 - 173 - 173 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 400341Off Supp/Office Supplies 8,721 6,024 1,891 5,802 3,022 8,824 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 400344Off Supp/Computer Supplies 18 783 - - - - - - - - - - - - - Subtotal Other Operating 46,486 22,801 16,072 24,360 9,133 33,493 60,204 61,408 62,636 63,889 65,167 66,470 67,800 69,156 70,539 400401Utilities/Tel & Telegraph 254 414 551 407 136 543 500 510 520 531 541 552 563 574 586 400538Contract Svcs/Other Contract Svcs - - 103 150 150 301 - - - - - - - - - 400552 Prov Fr Ins Loss/Ins Gen Liab 8,029 8,765 9,047 8,991 1,076 10,067 9,300 9,486 9,676 9,869 10,067 10,268 10,473 10,683 10,896 400574 Cost Pool/(ISF)-Gen Liab 55,701 75,144 69,513 59,954 19,983 79,937 - - - - - - - - - 400586 Cost Pool/(CAP)-Admin Charges 51,454 51,454 51,454 39,361 13,120 52,481 - - - - - - - - - 400591 Cost Pool/(IND)Civic Ctr Alloc 52,420 47,026 50,289 37,713 12,573 50,286 48,217 49,181 50,165 51,168 52,192 53,235 54,300 55,386 56,494 400601 Noncap Asst/Comp Hrdware<5K - 6,526 - - - - - - - - - - - - - 400604 Noncap Asst/Furniture <5K 13,328 - - - - - - - - - - - - - - TOTAL EXPENSES 2,047,186 2,264,738 2,143,143 1,614,594 563,826 2,178,419 2,595,497 2,647,972 2,700,779 2,754,643 2,809,583 2,865,623 2,922,783 2,981,087 3,040,557 Net Operating Surplus 143,017 441,530 652,711 631,853 (447,646) 184,207 511,190 489,622 498,966 508,498 518,220 528,136 538,251 548,568 559,092 Starting Fund Balance 178 125,341 509,296 425,157 584,010 1,065,200 1,544,822 2,033,789 2,532,287 3,038,506 3,551,643 4,074,894 4,608,462 Annual Contribution to Reserves - - 500,000 25,354 30,000 10,000 10,000 10,000 12,000 15,000 15,000 15,000 15,000 RESERVE BALANCE $ - - 500,000 525,354 630,000 640,000 650,000 660,000 672,000 687,000 702,000 717,000 732,000 RESERVE BALANCE % - - 23% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Minimum Necessary Starting Fund Balance (b) 363,070 432,583 441,329 450,130 459,107 468,264 477,604 487,131 496,848 506,759 Historical Actuals Projection