Staff - Report Fiscal Year (FY) 2023-24 Proposed Budget Overview — Budget and Audit Committee, May 9, 2023 (part 1 of 3)

City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00314 5/9/2023 Discussion Item 2.

Fiscal Year (FY) 2023/24 Proposed Budget Overview
File ID: 2023-00314
Location: Citywide.

Recommendation: Pass a Motion forwarding the FY2023/24 Proposed Budget to City Council for consideration.

Contact: Howard Chan, City Manager, (916) 808-7488, [email protected], Office of the City Manager; Leyne Milstein, Interim Director of Finance, (916) 996-4065, [email protected], Department of Finance; Mirthala Santizo, Budget Manager, (916) 808-5078, [email protected], Department of Finance Presenter: Howard Chan, City Manager, (916) 808-7488, [email protected], Office of the City Manager, Leyne Milstein, Interim Director of Finance, (916) 996-4065, [email protected], Department of Finance; Mirthala Santizo, Budget Manager, (916) 808-5078, [email protected], Department of Finance Attachments:
1-Description/Analysis
2-FY2023/24 Proposed Budget
3-2023-2028 Proposed Capital Improvement Program
Description/Analysis
Issue Detail: The City Charter, Article IX Section II, requires the City Manager to deliver budget recommendations no later than 60 days prior to the start of the new fiscal year. The City Manager’s FY2023/24 Proposed Budget was released on May 1, 2023. This report transmits the FY2023/24 Proposed Budget (Budget) (Attachment 2) and the 2023-2028 Capital Improvement Program (CIP), which includes the FY2023/24 CIP Budget (Attachment 3) to Council for approval and is available at http://www.cityofsacramento.org/finance/budget.

A companion report including FY2022/23 budgetary and administrative authority adjustments will be discussed concurrently with this report. These adjustments are included in the FY2023/24 Proposed

Page 1 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.
discussed concurrently with this report. These adjustments are included in the FY2023/24 Proposed Budget, and any change would result in an amendment to the Budget.

Fiscal Challenges
After three years, the City of Sacramento continues to recover from the fiscal challenges resulting from the COVID-19 pandemic. While most revenue streams recovered faster than anticipated, some remain below pre-pandemic levels. The City now faces another challenge with rising inflation and interest rates and the slowdown of the economy, which will cause shortfalls in previously anticipated revenue growth. Increasing labor costs, supply costs and liabilities continue to put additional strain on the City’s financial forecast.

Revenue Overview
While the budget includes revenue increases, rising inflation and interest rates have not only slowed down growth in the current fiscal year, but it is anticipated to slow further in future fiscal years. While most revenue streams have recovered to pre-pandemic levels , revenues from off-street parking and those supporting some department programs and services have not fully recovered from the pandemic.

The following table highlights the forecast for the top four G/MU revenue sources representing 69% of all G/MU revenues.

Revenue Source ($ in 000s)
FY2022/23
Approved
FY2023/24
Proposed
FY2024/25
Projected
FY2025/26
Projected
FY2026/27
Projected
FY2027/28
Projected
Property Tax 202,210 219,236 225,675 232,308 239,140 246,177 Measure U Transaction & Use Tax 137,099 135,124 135,330 140,219 144,812 149,115 General Sales & Use Tax 108,467 110,227 110,625 115,155 119,562 123,846 Utility User Tax 65,665 68,165 68,506 68,848 69,193 69,539 Other Revenue 242,668 239,107 244,863 251,312 256,358 261,529 Total General/Measure U Revenue 756,109 771,859 784,999 807,842 829,064 850,205 Property Tax has an 8.4% increase in FY2023/24 and an average increase of 2.5% thereafter. Sales and Use Tax and Measure U Transaction and Use Tax changes range from -0.1% in FY2023/24 to

3.3% in FY2027/28. Utility User Tax has a 3.8% increase in FY2023/24 and a 0.5% increase thereafter.

Revenue from parking fees collected at City garages is projected to increase by 5.4% in FY2023/24 as operations continue to recover from the impacts of the pandemic. The City is anticipating annual parking fee revenue increases of 5% through FY2026/27 and a 1% increase in FY2027/28. However, even with projected revenue growth in the five-year forecast, estimated revenues in FY2027/28 remain below pre-pandemic levels. As employers continue to utilize hybrid work models, the decline in usage of City-owned parking garages will continue to impact revenues. To help stabilize the Parking Fund, Council approved a one-time General Fund support of $5.1 million in FY2021/22.

Page 2 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.

Parking Fund, Council approved a one-time General Fund support of $5.1 million in FY2021/22.

Despite this, the Parking Fund continues to project deficits over the term of the five-year forecast. If revenues continue to remain below pre-pandemic levels, the City will need to examine ways to meet its required obligations, including debt service payments for the Golden 1 Center. Additional one-time General Fund support of $633,000 is proposed for the Parking Fund in FY2022/23 to keep the fund positive in FY2023/24.

Staff will continue to monitor the ongoing recovery and impact to citywide and parking revenue streams.

Budget Overview
The Budget is $1.5 billion from all funding sources and supports 5,074.30 full-time equivalent (FTE) positions. This includes $771 million for General and Measure U (G/MU) Fund operations and capital projects, and $697 million for operations and capital projects in the City’s enterprise funds and other fund activities. This is a recovery and rightsizing budget. Staffing and other Department modifications reflect changes in post-pandemic operational needs and support Council’s priorities and initiatives and/or regulatory requirements. Most Department modifications are covered with increased Department revenues or expenditure offsets/reductions. The largest increase of $8.78M is due to the passage of Measure L (Children’s Fund).

A summary of the modifications included in the Budget for the G/MU Funds and the Enterprise Funds is provided below, and additional information can be found in the Budget Overview and department sections of the Budget (Attachment 2).

Page 3 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.

Department
(Fund) FTE Change
Net Budget
Change
City Manager (Innovation and Growth) 2.00 570,937 Convention and Cultural Services (Community Center) (4.00) 593,327 Convention and Cultural Services (Innovation and Growth) - 1,000,000 Public Works (Fleet Management) (1.00) 6,412 Public Works (Marina) - (127,727)
Public Works (Parking) 0.50 (785,940)
Utilities (Storm Drainage) 5.00 (2,803)
Utilities (Storm Drainage/Wastewater/Water) 5.00 419,279 Utilities (Wastewater) (1.72) (97,081) Utilities (Water) 1.00 160,226
Youth, Parks and Community Enrichment (4th R) - -

6.78 $ 1,736,630
Other Funds
Capital Improvement Program Overview
The 2023-2028 Proposed CIP totals $465.9 million. The G/MU Fund portion of the CIP is $71.7 million. The FY2022/23 CIP Budget totals $107.3 million, including $14.2 million in G/MU Funds,

Page 4 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.
million. The FY2022/23 CIP Budget totals $107.3 million, including $14.2 million in G/MU Funds, providing resources for 106 programs and projects. The CIP will be presented to the Council on May 16, 2023.

A summary of the modifications included in the CIP is provided below, and additional information can be found in the 2023-2028 Proposed Capital Improvement Program (Attachment 3).

Department
(Fund) FTE Change
Net Budget
Change
Information Technology (Various*) - 1,000,000
Police (General) - 120,000
Youth, Parks and Community Enrichment (Measure U) - 100,000 - $ 1,220,000
Capital Improvement Program
* Various Funds include General Fund, Gas Tax 2016, Recycling and Solid Waste, Storm Drainage, Wastewater and Water.

Use of Innovation and Growth Fund (Fund 2031)
The Innovation and Growth Fund (IGF) was established to focus resources on distinct capital program areas. IGF goals are to advance innovation, economic growth, and job creation. A proposed modification to the FY2023/24 Budget Resolution will allow the City to expand the usage of IGF to support innovation programs. The policy that currently governs the usage of IGF (Resolution No. 2016-0240) is outdated. More recent Council-approved strategies are based on the City’s current priorities, which include ScaleUp Sacramento: An Inclusive Economic Action Agenda (Motion No. 2021-0022) and sections one through five of the Inclusive Economic Development Investment Funding Guidelines (Motion No. 2019-0307). The proposed addition of Subsection A to Section 1.9 will allow the usage of IGF to be consistent with either ScaleUp Sacramento or sections one through five of the Inclusive Economic Development Investment Funding Guidelines.

Budget Hearings
The Council will consider the Budget during regularly scheduled meetings in May and June, with final budget adoption scheduled for June 13, 2023. The tentative hearing schedule is reflected below:

Page 5 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.

Date Time
Legislative
Body Subject
Proposed Budget
Week of May 1, 2023 TBD n/a FY2023/24 Budget Release
Tuesday, May 9, 2023 10:00 AMBudget and
Audit Committee
FY2023/24 Proposed Budget Overview and
Fees & Charges
Tuesday, May 9, 2023 5:00 PM City Council FY2023/24 Proposed Budget Overview and Consolidated Department Budgets
Tuesday, May 16, 2023 2:00 PM City Council (1) 2023-2028 Capital Improvement Program, (2) Citywide Fees and Charges, and (3) YPCE
Department budget
Tuesday, May 16, 2023 5:00 PM City Council (1) Fire Department Budget, (2) Police Department Budget
Tuesday, May 23, 2023 5:00 PM City Council HOLD
Tuesday, May 30, 2023 3:00 PM Budget and
Audit Committee
Adoption of the FY2023/24 Budget
Tuesday, June 13, 2023 5:00 PM City Council Adoption of the FY2023/24 Budget 1Schedule is subject to change, refer to agendas at: http://sacramento.granicus.com/ViewPublisher.php?view_id=21 2023 Budget Hearing Schedule1
Policy Considerations: The Budget maintains the direction provided by Council and prioritizes our City’s values of delivering quality core services while investing in inclusive economic development and providing critical support to the most vulnerable members of our community. The Budget includes continued resources for Council priorities related to inclusive economic development, youth, public safety, homelessness and essential core services. However, the City, as a matter of policy, must remain focused on efforts to right-size the organization to achieve budget sustainability (ongoing expenditures below ongoing revenues) in the short-term.

Economic Impacts: Not applicable.

Environmental Considerations:

California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines sections 15378 and California Public Resources Code section 21080 and are not subject to the provisions of CEQA (CEQA Guidelines section 15060(c)(3)). CEQA review for any project, which utilizes funds allocated under the FY2023/24 CIP Budget, has been or will be performed in conjunction with planning, design, and approval of each specific project as appropriate.

Sustainability: None.

Rationale for Recommendation: The Budget is reflective of a recovery and rightsizing budget.

There are sufficient resources to support the activities presented in the Budget.

Financial Considerations: The City’s Budget is balanced and reflects adopted Council policies,

Page 6 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.

Financial Considerations: The City’s Budget is balanced and reflects adopted Council policies, goals, and planning/programming guides. The following five-year forecast provides a multi-year view of revenues and expenditures, allowing an assessment of the fiscal consequences of both prior and current funding decisions in the context of forecasted revenues and expenditures.

In FY2021/22, Council set aside a $22.8 million commitment to address future budget challenges.

Only $12.9 million of the set aside was used and $10 million is recommended to be reserved to close the FY2024/25 estimated budget shortfall. In the companion report (File No. 2023-00367), staff recommends reserving an additional $20.5 million in FY2022/23 G/MU year-end resources for future budget development.

The forecast above does not include the costs for homeless services. Should the City continue to fund homeless services at the current level, expenditures will outpace revenues as early as FY2024/25.

The forecast below includes homeless services, which shows a larger overall deficit in future fiscal years. If the City were to be awarded additional resources from the State as part of the Homeless Housing, Assistance and Prevention (HHAP) grant program, the funding gap would decrease. Future State and Federal resources are unknown at this time; however, they will be included in future

Page 7 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.
forecasts when program funds have been awarded to the City.

While the Budget is balanced, increasing cost pressures in the out-years of the forecast will need to be addressed. Additional challenges in the G/MU Fund forecast are similar to what has previously been identified for Council and the Committee:
· California Public Employees’ Retirement System (CalPERS) pension costs will increase by $24.0 million (17.9%) over the next four years.
· Liability insurance premium is estimated to increase by $18.5 million (50%) over the next four years.
· Uncertainty with labor costs given that all eleven labor contracts will end before the close of calendar year 2023 and the forecast does not include future increases for COLAs or health insurance.
· Compliance with the Advance Clean Fleets Regulation, scheduled to be adopted in late April

Page 8 of 9 ends

File ID: 2023-00314 5/9/2023 Discussion Item 2.
· Compliance with the Advance Clean Fleets Regulation, scheduled to be adopted in late April 2023, will have a financial impact which is unknown at this time. · Homeless services will cost approximately $193 million over the next four years.

With the exception of future labor contract increases and the impact of the adoption of the Advance Clean Fleets Regulation, all other cost estimates are included in the forecast as presented.

Enterprise and Other Funds: The City’s Enterprise and other Funds are included in the Budget. Five- year forecasts for each of the enterprise funds are available in the Forecast section of the Budget. It is important to note that the Parking Fund continues to project deficits due to revenue losses from the pandemic and will continue to be impacted due to people working remotely or working a hybrid schedule. The following summary forecasts reflect the challenges in the Parking Fund. ($ in 000s)
FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
Beginning Fund Balance 3,817 2,209 368 (1,894) (3,439) (4,625) Revenue 15,608 16,418 17,284 18,104 18,965 19,187 Expenditures 18,102 18,258 19,546 19,649 20,151 19,476 Other Source/(Use) 886 - - - - -
Ending Funding Balance 2,209 368 (1,894) (3,439) (4,625) (4,914) Parking Fund
Additionally, the Golf Fund is projected to end the fiscal year in the negative. The deficit in the Golf Fund will be addressed in the future as the current debt liabilities mature.

Local Business Enterprise (LBE): Not applicable.

Page 9 of 9 ends

PROPOSED

CITY OF SACRAMENTO
FISCAL YEAR 2023/24 BUDGET

DARRELL STEINBERG
Mayor

LISA KAPLAN CAITY MAPLE
Councilmember, District 1 Councilmember, District 5

SEAN LOLOEE ERIC GUERRA
Councilmember, District 2 Vice Mayor, District 6

KARINA TALAMANTES RICK JENNINGS, II
Councilmember, District 3 Councilmember, District 7

KATIE VALENZUELA MAI VANG
Councilmember, District 4 Mayor Pro Tempore, District 8

HOWARD CHAN
City Manager

MICHAEL JASSO MARIO LA

RA LEYNE MILSTEIN
Assistant City Manager Assist ant City Manager Assistant City Manager RYAN
MOORE
Assistant City Manager
Prepared by

DEPARTMENT OF FINANCE
BUDGET, POLICY and STRATEGIC PLANNING DIVISION
Mirthala Santizo
Jason Bader Angie Galieote Nora Howard Linh Huynh Leila Menor Elizabeth Ramos Michael Tamayo In conjunction with Department Staff

CITY HALL
915 I STREET, 5 TH FLOOR
SACRAMENTO, CA 95814

3 4
FY2023/24 Proposed Budget

Table of Contents
SECTION – 1
Budget Message………………………………………………………………………. 9
Operating Budget Excellence Award……………………………………………….. 13 SECTION – 2
City at a Glance ………………………………………………………………………. 15
Sacramento at a Glance…..……………………………………………………... 17
History of the City of Sacramento ……………….…………………………... 17 Demographics.………………………………………………………………..... 18
Community Profile……………………………………………………………... 19
Capital Asset Statistics………………………………………………………... 20
SECTION – 3
Budget Overview……………………………………………………………………… 21
Proposed Budget Overview……………………………………………………… 23
Budget Modifications ………….……………………..………………………... 25
2023-2028 CIP ……………………………………...………………………..... 26
Budget Hearings…..…………………………………..………………………... 26
On the Horizon – Future Fiscal Challenges….……………………….……... 27 General Fund Revenues: Options and Opportunities…………………….… 29 Conclusion………………………………………………………………………. 30
Budget Modification Details……………………………………………………. 31
SECTION – 4
Understanding the Budget …………………………………………………………... 39
Budget Information……..………………………………………………………… 41
The Budget Presentation………………………………………………………. 41
The Budget Process…………………..……………………………………….. 41
Council Priorities………………………………………………………………... 42
Financial Management Policies……………….…………………………….... 43
Performance Measurement ……………………………………………..……. 44
Financial Information…………………………………………………………… 46
How to Read This Document………………………………………………….. 50

5 FY2023/24 Proposed Budget

SECTION – 5
The Forecast…………………………………………………………………………… 55
Proposed Financial Forecast……………………………………………………. 57
Financial Forecast………………………………………………………………… 57
General and Measure U Funds Overview……………………………………… 57
General/Measure U Fund Revenues……….…………………………………... 60
General and Measure U Fund Expenditures...………………………………… 73 Measure U Programming and Forecast………………………………………... 76 Enterprise Funds………………………………………………………………….. 80
SECTION – 6
Budget Schedules…………………………………………………………………….. 99
SECTION – 7
Mayor and City Council………………………………………………………………. 141
SECTION – 8
City Attorney…………………………………………………………………………… 147
SECTION – 9
City Auditor…………………………………………………………………………….. 155
SECTION – 10
City Clerk………………………………………………………………………………. 161
SECTION – 11
City Manager…………………………………………………………………………... 167
SECTION – 12
City Treasurer…………………………………………………………………………. 177
SECTION – 13
Community Development…………………………………………………………….. 183
SECTION – 14
Community Response…..………..…………………………………………………... 193
SECTION – 15
Convention and Cultural Services……..……………………………………………. 201 SECTION – 16
Finance…….…………………………………………………………………………… 213

6 FY2023/24 Proposed Budget

SECTION – 17
Fire………………...……………………………………………………………………. 223
SECTION – 18
Human Resources…………………………………………………………………….. 231
SECTION – 19
Information Technology…………….………………………………………………… 239
SECTION – 20
Police…………………………………………………………………………………… 249
SECTION – 21
Public Works….……………………………………………………………………….. 261
SECTION – 22
Utilities……………………………………..…………………………………………… 273
SECTION – 23
Youth, Parks, & Community Enrichment…………………………………………… 283 SECTION – 24
Citywide and Community Support…………………………………………………… 295
SECTION – 25
Debt Financing……………...…………………………………………………………. 307
SECTION – 26
Staffing…………………………………………………………………………………. 315
SECTION – 27
Multi-Year Projects…………………………………………………………………… 343
SECTION – 28
Financial Polices……………………………………………………………………… 359
Budget Control Policy…………………………………………………………….. 361
Debt Management Policy………………………………………………………… 363
Debt Management Policy - Disclosure…………………………………………. 383 DSCR and Development Services Fund Management Policy………………. 389 EMS Revenue Recovery and Fee Waiver Policy……………………………... 393 Fees and Charges Policy………………………………………………………… 399
General/Measure U (G/MU) Fund EUR Policy………………………………… 409 Interfund Loans……………………………………………………………………. 413
7 FY2023/24 Proposed Budget

Investment Policy…………………………………………………………………. 417
Other Post-Employment Benefits (OPEB)……………………………………... 429 Pension Funding………………………………………………………………….. 433
Risk Management Funding and Reserve Policy………………………………. 437 SCERS Investment Policy………………………………………………………... 441
SECTION – 29
Resources……….………………………………………………………….…………. 453
SECTION – 30
Resolution……….………………………………………………………………..……. 465

8 FY2023/24 Proposed Budget

1 SECTION - 1
Budget Message
9 FY2023/24 Proposed Budget

10 May 1, 2023
Honorable Mayor and City Council
Sacramento, California
Dear Mayor and Members of the City Council:

This letter transmits the proposed budget for fiscal year (FY) 2023/24. The proposed budget totals $1.5 billion for operations and capital projects. The General and Measure U budget represents 51.4%, or $771 million, of the total budget.

The proposed budget is balanced and represent s the City’s financial plan for the upcoming fiscal year. Sacramento has continued to recover from the financial challenges caused by the COVID-19 pandemic, and we are pleased that the worst of the pandemic’s fiscal impacts are behind us. However, economic headwinds persist due to rising inflation and interest rates and the overall slowing of economic growth. This proposed plan reflects prudent investments in staffing and progr ams to reflect community needs and support Council’s priority initiatives, which inclu de but are not limited to, creating affordable housing opportunities, ensuring the continued support and stability of our workforce, the key to delivering all of our City’s programs and services, and ensuring that programs and services are delivered safely, efficiently, and effectively.

The forecasts presented in this budget are based on trends collected over previous fiscal years as well as current financial modeling of data available as re cently as the end of March. This past fiscal year, sales tax and Measure U revenues reco vered faster than anticipated, and the City benefit ted from a healthy housing ma rket. With high inflation rates and the state of the curr ent economy, revenue growth is forecasted to slow down, and in some cases, is forecasted to be less than the current fiscal year. In addition, the City continues to experience revenue shortfa lls due to the pandemic (i.e., off-street parking), and it is unknown when such rev enues will return to pre-pandemic levels.

Although there is projected growth in ce rtain revenue areas, increasing labor costs, supply costs and liabilities will cause the City to have financial challenges in the future.

While we foresee challenges, as always, we will continue efforts to identify opportunities to provide long-term stability to our budgetary framework.

Federal support, via the Coronavirus Relief Fund and the American Rescue Plan Act funding totaling over $200 million, the City continues to operate vital assistance programs related to small businesses and commercial corridor revitalization; homelessness and housing; youth, workforce training and ga ng prevention; and arts and the creative Howard Chan
City Manager
City Hall
915 I Street, Fifth Floor
Sacramento, CA 95814-2604
916-808-5704
11 FY2023/24 Proposed Budget

economy. Core services -- such as the provis ion of clean and safe water, the consistent collection of recycling and solid waste and the ongoing maintenance of our parks, roads and streets -- remain a top focus for the City.

In addition, strategic investments the City has made in recent years continue to show their value and worth. This includes the McKi nley Water Vault, which has helped the City manage major storms and keep local neighborhoods from flooding; the City’s Zero-Dollar Impact Fee program, which has helped to create 2,500 new uni ts of affordable housing; and the City’s Safe Credit Union Convention and Performing Arts Center, which continues to bring thousands of residents and visitors to downtown Sacramento every week.

In my seventh year as City Manager, I offer a proposed budget that supports the overall vision articulated by the Council, one that strives to acknow ledge and benefit all Sacramentans. I would like to thank the Council for its commitment to ensuring the fiscal health of the City while deliver ing essential services in t he most cost-effective manner.

Continued commitment to this strategy will help ensure that the City can sustain critical community services and programs in the future.

Respectfully submitted,

Howard Chan
City Manager

12 FY2023/24 Proposed Budget

Operating Budget Excellence Award

The City’s FY2022/23 Approved Operating Budget received the Operating Budget Excellence Award from the California Societ y of Municipal Finance Officers (CSMFO).

The award process includes peer reviews of cities’ operating budgets. Peer review methods are employed to maintain standar ds, improve performance, and provide credibility.

In preparing the FY2023/24 Budget document, the award crit eria were followed and prepared in accordance with generally accept ed accounting principles. This document will be submitted to the CSMFO for consider ation for the Fiscal Year 2023/24 Operating Budget Excellence Award.

13 FY20232/24 Proposed Budget

14 FY2023/24 Proposed Budget

2 SECTION - 2
City at a Glance
15 FY2023/24 Proposed Budget

16 FY2023/24 Proposed Budget

Sacramento at a Glance

History of the City of Sacramento
The City of Sacramento was established in 1849 and became the capital for the State of California in 1854. Sacramento also se rves as the seat of Sacramento County government. It is the sixth largest city in California with a population estimated at 518,037.1 The population of the County of Sa cramento is estimated at 1,576,618. 1 Sacramento encompasses 101 square miles and is in the northern section of California’s Central Valley.

Sacramento is a charter city and operates under a Council-Manager form of government that currently provides for a nine-member elected City Council (Council), including an elected Mayor. There are no ot her elected City officials. Members of the Council serve alternating terms of four years, with the Mayor and Councilmembers representing even numbered districts up for reelection in ca lendar year 2024 and the Councilmembers representing odd numbered districts up for reelection in 2026. All registered voters in the City vote for the Mayor, while Councilmembers are elected by voters in specific districts.

The Council appoints the Cit y Manager, City Attorney, City Auditor, City Clerk, and the City Treasurer to carry out its adopted policies. That would The City provides a full range of municipal services including police, fire, water, sewer, storm drainage, solid waste, code enforcement, construction and maintenance of parks and streets, planning and development, recreation and cultural activities, community response, and general administration.

The Sacramento City Charter requires that the City Manager submit a proposed budget to the Council at least 60 days prior to t he commencement of each fiscal year. Once approved by Council, this annual budget serves as the foundation for the City of Sacramento’s financial planning and control. Budgetary control is maintained at the department level, by fund. B udgetary control for capital improvement projects is maintained at the individual project level.

The following information summarizes t he City’s key demographics and community profile.

1 Based on California Department of Finance estimates as of January 1, 2022. 17 FY2023/24 Proposed Budget

Demographics
The information presented is based on the 2017-
2021 American Community Survey (ACS) 1-Year
Estimates from the United States Census Bureau.

Population by Sex
Percent female persons 51.0%
Percent male persons 49.0%

Race and Origin
White 30.4%
Hispanic or Latino (of any
race) 29.3%
Asian 19.3%
Black or African American 10.7%
Two or more races 6.9%
Native Hawaiian and Other
Pacific Islander 2.3%
Some other race 0.3%
American Indian and Alaska
Native 0.8%

Age Distribution
0-14 years 16.0%
15-24 years 13.3%
25-64 years 55.7%
65 years and over 15.0%
Median age 36.3

Housing Status
Total 210,715
Occupied 202,093
Owner-occupied 103,994
Renter-occupied 98,099

Average Household Size
Owner-occupied unit 2.72
Renter-occupied unit 2.38

Residential Vacancy Rate
Vacant 8,622
Homeowner vacancy rate 0.9%
Rental vacancy rate 2.3%

Home Values
Median value of owner-
occupied units $449,600
Occupied units paying rent 96,275
Median gross rent $1,549

Commuting to Work
Mean travel time to work
in minutes 25.2

Occupation
Management, business,
science, and arts
occupations
110,913
Service occupations 40,986
Sales and office
occupations 53,780
Natural resources,
construction, and
maintenance occupations
19,986
Production, transportation,
and material moving
occupations
26,424

Household Income
Total households 202,093
Median household income $75,311
Mean household income $97,415

Individual Income
Per capita income $37,916
Median earnings for
workers $41,239

Education
Percent high school graduate
or higher 86.5%
Percent bachelor's degree or
higher 34.1%
18 FY2023/24 Proposed Budget

Community Profile
The information presented is based on the City’s
Annual Comprehensive Financial Report (ACFR)
for the fiscal year ending June 30, 2022.

Principal Employers
State of California 82,894
UC Davis Health System 16,075
Kaiser Permanente 12,301
US Government 10,698
Sutter Health 9,595
Dignity Health 7,488
Intel Corporation 6,013
San Juan Unified School
District 5,126
Los Rios Community College
District 2,833
Sacramento County 2,535

Operating Indicators
Police:

Citizen initiated calls for
service with officer
responses
155,159

Fire:

Number of incidents 108,924
Number of structure fires 1,199
Number of construction
inspections/reviews 9,517

Public Works:

Number of traffic
investigations completed 1,075
Residential garbage
disposed (in tons) 136,904

Youth, Parks, & Community
Enrichment:

Number of students enrolled in
START 1,770
Number of students enrolled in
4th R 1,484

Utilities:

Number of water accounts 147,150
Water distributed/pumped
(millions of gallons) 30,130
Number of wastewater
accounts 79,114
Wastewater
distributed/pumped
(millions of gallons)
6,042
Number of storm drainage
accounts 146,385
Storm drainage
distributed/pumped
(millions of gallons)
18,921

Community Development:

Number of building permits
issued 19,512
Building permit valuation (in
millions of dollars) $1,351
Number of animal licenses
issued 15,976
Number of animal
outplacements 6,256

Convention & Cultural Services:

Number of Community
Convention Center events 174
Community Convention
Center event attendance 446,168
Number of Zoo attendance 568,311

19 FY2023/24 Proposed Budget

Capital Asset Statistics
Police:

Number of stations 4
Number of patrol units 236
Number of aircraft 4
Number of watercraft 4

Fire:

Number of stations 24
Number of fire suppression,
support, or prevention vehicles 153
Number of watercraft 6

Public Works:

Miles of streets 3,118
Number of streetlights 39,604
Number of City parking
spaces 5,283
Miles of off-street bikeways 78
Number of City garages &
open parking lots 12
Number of City leased
garages & open parking lots 7

Youth, Parks, & Community
Enrichment:

Number of parks 230
Park acreage 4,829
Number of community centers 13
Number of swimming pools
(including wading pools) 28

Utilities:

Miles of water mains and
distribution lines 1,635
Miles of sanitary sewers and
storm drainage 1,967

Miscellaneous:

Number of boat harbor
slips 475
Number of Golf Courses 6

20 FY2023/24 Proposed Budget

3 SECTION - 3
Budget Overview
21 FY2023/24 Proposed Budget

22 FY2023/24 Proposed Budget

Proposed Budget Overview

Introduction
After three years, the City of Sacramento continues to recover from the fiscal challenges resulting from the COVID- 19 pandemic. While most revenue streams have recovered faster than anticipated, some remain below pre-pandemic le vels. The City now faces another challenge with rising in flation and interest rate s and the slowdown of the economy, which will cause shortfalls in previously anticipated revenue growth. Increasing labor costs, supply costs and liabilities cont inue to put additional strain on the City’s financial forecast. Despite these existing and new challenges, the City’s fiscal year (FY) 2023/24 Proposed Budget is balanced and reflects adopted Council policies, goals, and planning/programming guides.

The FY2023/24 Proposed Operating and Capital Improvement Program (CIP) Budgets (Budget) total approximately $1.5 billion from all funding sources and support 5,074.30 full-time equivalent (FTE) positions. This includes $771 million for G/MU Fund operations and capital projects, and $697 million for the City’s enterprise and other fund activities.

While the Budget includes revenue growth, it is less than anticipated and there continues to be financial challenges due to increasing expenses. Property tax, Sales tax and Measure U revenues experienced substantial growth in FY2021/22, however growth has slowed in the current fiscal year and is anticipated to slow further in FY2023/24.

Revenues from off-street parking and some department programs and services have not fully recovered from the pandemic. Ongoing impacts to the expenditure side of the budget include rising labor, employee pension, and liability costs. Expenses from homeless services at the current level will outpace re venues beginning in FY2024/25. The City’s ability to balance community needs with available resources continues to be an ongoing challenge.

This Budget reflects investment in staffing and programs to reflect community needs and support Council’s priority initiatives, wh ich include but are not limited to, creating affordable housing opportunities, supporting and stabilizing our workforce, and ensuring that programs and services are delivered safely, efficiently, and effectively. Key programs and projects include ongoing funding for the Department of Community Response to continue the City’s response to homelessne ss, continued funding of the affordable housing fee waiver program, th e launch of the Fire Department’s Single Role program which will create more effective career pat hways, and the estab lishment of the voter approved Children’s Fund project as required by Measure L. The Budget also includes adjustments to realign staffing and funding nece ssary to deliver programs and services in the coming fiscal year. Given the challenges identified in future fiscal years, resources are proposed to be redirected to address operational needs in the coming fiscal year and beyond.

23 FY2023/24 Proposed Budget

Total Proposed City Budget: $1.5 Billion

Revenues

Expenditures

Note: The above charts do not include other sources and uses as represented in Schedules 2A and 2B.

24 FY2023/24 Proposed Budget

Budget Modifications
A summary of the program and service c hanges included in the Budget for the G/MU Funds and the Enterprise Funds is provided below. Additional details are provided at the end of this section and in Department sections.

Department FTE Change
Net Budget
Change
Mayor/Council - 450,000
City Attorney - 236,583
City Clerk - 2,921
City Manager 1.00 141,112
City Treasurer - (600,000)
Community Development 4.00 945,254 Community Response (1.00) (129,871) Finance 2.00 (10,834)
Fire 31.00 (3,561,646)
Human Resources - 19,844
Information Technology 5.00 976,468 Police 5.20 1,785,113
Public Works - (972,667)
Youth, Parks and Community Enrichment 4.18 (1,102,451) Citywide Support - 9,813,780

51.38 $ 7,993,606
G/MU Funds (Operating/MYOPs)
Note: Of the $9.8 million increase in Citywide Support, $8.78 million reflects the City's obligation to the Children's Fund as required by Measure L.

Department
(Fund) FTE Change
Net Budget
Change
City Manager (Innovation and Growth) 2.00 570,937 Convention and Cultural Services (Community Center) (4.00) 593,327 Convention and Cultural Services (Innovation and Growth) - 1,000,000 Public Works (Fleet Management) (1.00) 6,412 Public Works (Marina) - (127,727) Public Works (Parking) 0.50 (785,940) Utilities (Storm Drainage) 5.00 (2,803) Utilities (Storm Drainage/Wastewater/Water) 5.00 419,279 Utilities (Wastewater) (1.72) (97,081) Utilities (Water) 1.00 160,226
Youth, Parks and Community Enrichment (4th R) - -

6.78 $ 1,736,630
Other Funds
25 FY2023/24 Proposed Budget

2023-2028 CIP
The 2023-2028 Proposed CIP totals $465.9 million. The G/MU fund portion of the CIP is $71.7 million. The FY2023/24 CIP Budget totals $107.3 million, funding 106 projects in all program areas in various geographic areas of the City, including $14.2 million in G/MU Funds. A summary of program and service changes included in the CIP is provided below.

Additional details are provided at the end of this section and in Department sections.

Budget Hearings
On May 9, 2023, the Budget and Audit Committee will hold the first public hearing on the Budget. The Council will consider the budget in May and June with adoption scheduled for June 13, 2023. These meetings provide the Council and public with an opportunity to provide input on the Budget. The following reflects the planned budget hearing schedule.

It is important to note t hat meeting dates may change as needed to address other City business.

Department
(Fund) FTE Change
Net Budget
Change
Information Technology (Various*) - 1,000,000 Police (General) - 120,000
Youth, Parks and Community Enrichment (Measure U) - 100,000 - $ 1,220,000
Capital Improvement Program
* Various Funds include General Fund, Gas Tax 2016, Recycling and Solid Waste, Storm Drainage, Wastewater and Water.

On the Horizon – Future Fiscal Challenges
In addition to the economic impact of the pandemic and state of th e current economy, ongoing challenges such as increasing labor costs and liabilities continue to compete with the priorities and needs of our community . The following summarizes a few of the challenges ahead, which could impact not only the G/MU Fund but the Enterprise Funds as well.

Rising Labor Costs
All contracts of the City’s eleven recognized employee organizations (REOs) will expire in calendar 2023. The City is currently in negotiations with two of the eleven REOs and the remaining nine will enter into negotiations within the calendar year. Future labor cost increases resulting from negotiations are not included as part of the five-year forecast.

Annual Pension Costs–California Public Employees’ Retirement System (CalPERS) CalPERS employer retirement contribution rates have increas ed significantly resulting from lowered expectations for future investment returns (discount rate). Based on estimates provided by CalPERS, the Cit y’s payment for unfunded liabilities (when investment returns do not achieve the tar get earning assumptions rate) will increase by $28.3 million over the term of the forecast, $23.1 million in the G/MU Fund.

In July 2022, CalPERS announced a preliminary -6.1% net return on investments for the 12-months ending 6/30/22. Once private equity losses were finalized in September 2022, the overall investment loss increased to -7.5%. The City worked with CalPERS actuaries to estimate and include the investment loss in the City’s five-year forecast. Should future investment returns not achieve the earning assumptions rate of 6.8%, the City’s payments toward the unfunded liability will further increase.

General Liability and Auto Liability Insurance (GL&AL)
Liability costs continue to rise with higher settlements and jury awards. Claims that were previously resolved in the $5 to $10 million range are now costing $20 to $30 million.

Public entities, including the City, have seen a dramatic increas e in large liability claims since 2011. This has resulted in the excess liability insurance market for public entities tightening nationwide. Insurers are leaving the marketplac e and further restricting capacity leading to increases in insurance premiums for the foreseeable future.

Additionally, property insu rance costs have been increasing since 2017 due to an increase in the number and cost of natural disasters. Recent winter storms nationwide will also contribute to a hardening property insurance market with increased costs.

Consistent with Council’s adopted Risk Management Funding and Reserve Policy, the General Fund contribution to the GL&AL Fund increased from $29.03 million in FY2022/23 to $34.49 milli on (17% increase) in FY2023/24. The Forecast section of the Budget provides additional information on GL&AL cost increases.

Other Post-Employment Benefits (OPEB)
The City currently provides a medical insur ance subsidy to retirees who meet certain longevity standards, on a pay as you go basis. This benefit was eliminated for all new hires between 2012 and 2014, except for Local 522 which eliminated the benefit in January 2020.
27 FY2023/24 Proposed Budget

Several years ago, the Governmental A ccounting Standards Board (GASB) set new standards (GASB Statement 45, subsequently updated by GASB Statement 75) that require reporting of the cost of the retir ee medical benefit on an accrued actuarial basis and to put forward a plan to fund the benefit. At one point, the City’s projected unfunded accrued liability for retiree benefits was $452 million (June 2014). To address this liability, the City began including contributions to the City’s OPEB Trust (Trust) in the FY2014/15 budget. In FY2015/16 the City adopted the OPEB Funding Policy. This policy directed staff to continue efforts to reduce and eventually eliminate this liability. Council also authorized the transfer of any available resources in the pension budget accounts at the end of the fiscal year to the Trust. The total OPEB liability for all funds was approximately $279 million as of June 30, 2022, and there is approximately $88.8 million (as of April 13, 2023) in the Trust to fund this liability.

Compliance with Zero Emission Vehicle (ZEV) regulations Consistent with the City’s Sustainability Policy and climate goals, the City is making all efforts to electrify its fleet. However, there are not sufficient funding programs to offset costs to install charging infrastructure and make necessary electrical upgrades at locations where electric City fleet vehicles are deployed. In addition, the California Air Resources Board is scheduled to adopt Advanc e Clean Fleets Regulation in late April 2023. As currently proposed, compliance with th is regulation requires 50% of vehicle purchases to be ZEVs starting January 1, 2024, and 100% ZEV purchases by 2027.

Staff has not yet analyzed the potential costs to upgrade electrical capacity, install charging infrastructure to support this level of ZEV vehicles, and complete fleet shop modifications so City technician s can meet requirements to se rvice electric vehicles at this accelerated pace. The cost could be tens to hundreds of millions of dollars to fully implement these regulations. In addition, there will be significantly higher costs associated with medium and heavy-duty electric vehicl es compared with curr ent models. Supply chain issues as well as lack of available proven ZEV models for many types of medium and heavy-duty vehicles will likely increase the need to retain older vehicles past recommended replacement. As a result, staff also anticipate increased costs associated with repairs of older vehicles and rental replacements while waiting extensive periods of time for ZEV delivery, which currently is frequently one to two years for some models.

Until the regulations have been adopted, guidelines have been set and analysis can be conducted, electrifying the fl eet will be a fiscal challenge. The City will update the five- year forecast once costs are known.

Current National Economic Conditions
Prior to the pandemic, the United States was experiencing the longest economic expansion in history. As a result of the pandemic the nation plunged into a short recession in the Spring of 2020, but the economy qui ckly rebounded in 2021. Growth continued in 2022, but growth has slowed in many econom ic sectors in 2023. Measured by the Consumer Price Index, inflation is running at 6% as of February 2023. To combat the high inflation, the Federal Reserve raised interest rates to 5% in 2023.

In the past year, the effects of the raisi ng inflation and interest rates have caused a decrease in revenues and increases in expenditures. The five-year forecast includes the 28 FY2023/24 Proposed Budget

impacts of the current economic slowdown. If the slowdown continues and/or becomes worse, the City could face larger deficits than what is currently projected in the forecast.

According to UCLA Anderson Forecast, gross domestic product will contract in 2023 and inflation will return to no rmal towards the end of 2024, wh ich will be between 2.8% and

3.4%. The City will continue to monitor inflation rates and review our all available forecasts and recommendations and recommend adjustments to the Budget if necessary.

General Fund Revenues: Options and Opportunities
The following are budget sustainability measures for Council’s consideration to ensure that the City’s financial position is sustainable over the long-term:
 American Rescue Plan (ARP): On March 11, 2021, President Biden signed into law the ARP which contains $325 billion to provide relief for states and local governments that lost significant rev enues due to the economic fallout from the pandemic while simultaneously continuing to provide needed services to the community. The City has received the entire allocation of $112.3 million.

In September 2021, the Council approv ed the ARP Fram ework and Funding Priorities. This framework committed funds for small businesses and commercial corridor revitalization; homelessness and hous ing; youth, workforce training, and gang prevention programs; arts and creative economy; and addressing organizational needs. ARP continues to fund these programs in FY2023/24.  Support state legislative efforts to maximize revenues for local government:

The City will continue to oppose legislat ion that calls for additional unfunded mandates on local governments. Further, the City will support legislation that increases and protects stat e-shared revenue, expands local opportunities for public-private partnerships, and collection of revenue from non-traditional vendors in the areas of transient occupancy taxes for online travel companies and Utility User Taxes (UUT). The City will also adv ocate for a solution to collect parking meter revenue lost due to ongoing abuse, while also ensuring access for those with disabilities.
 Update Business Operation Tax (BOT) (requires voter approval): In 2010 the national consulting firm Management Partners recommended that the City pursue changes to Sacramento’s BOT. BOT ra tes have not been adjusted since 1991.

During the 2010 budget hearings the changes were briefly considered but were subsequently withdrawn from consideration by the Council at the request of the business community. Management Partners also included this recommendation in their updated review presented to Council in 2020. Options include, but are not limited to, providing for a cost-of- living adjustment, and resetting the BOT minimums and caps. However, consider ation of this change may need to be deferred until our business community has had the opportunity to fully recover from the impacts of the pandemic.
29 FY2023/24 Proposed Budget

Conclusion
As the City continues to recover from the pandemic and manages the effects of the current state of the slowing economy, ensuring long-term sustainability of the G/MU Fund remains a priority. The City will continue to balance anticipated revenue growth with known fiscal challenges and community needs. Maximizing revenue opportunities, especially from Federal and State relief funding and grants will provide some relief from previous years’ revenue losses and help leverage limited resources for operational needs and community programming investments.

The City will monitor revenues and expenditures closely during the fiscal year and provide updates to Council as appropriate.

30 FY2023/24 Proposed Budget

Budget Modifications Details

Department Description
FTE
Change
Net Budget
Change
Mayor/Council Increase Mayor/Council District funding by $50,000 each to provide resources to address neighborhood, community, and business needs.
- 450,000
City Attorney Increase service and supplies budget to cover existing operational costs and other needed ongoing items.
- 212,858
City Attorney Increase for Officer Involved Shooting standby pay per Sacramento City Exempt Employees Association labor agreement.
- 23,725
City Clerk Delete a position (1.0 FTE Deputy City Clerk) and add a new position (1.0 FTE Senior Deputy City Clerk) to better align with the duties and responsibilities of the position.
- 2,921
City Manager Add a position (1.0 FTE Media and Communications Specialist) to increase the efficiency and effectiveness of the Media & Communications Division by assisting with public outreach and educational programs.

1.00 143,901
City Manager Delete a position (1.0 FTE Senior Staff Assistant) and add a position (1.0 FTE Administrative Technician) in the Office of Cannabis Management to assist with the quantity and complexity of the permit applications and to monitor updates and changes to grant reports and requirements. Position will be offset by the deletion of the position and a reduction in services and supplies. - (2,284)
City Manager Delete two vacant positions (1.0 FTE Program Manager and 1.0 FTE Administrative Technician) and add two positions (1.0 FTE Program Specialist and 1.0 FTE Administrative Analyst) in the Office of Emergency Services to align the needs of the department with the appropriate classification and to manage the workload and responsibility needed to maintain an effective and positive outcome to area hazards. Positions will be offset by the deletion of the positions and a reduction in services and supplies.
- (505)
City Treasurer Increase Pool A Revenue Budget to align with historical revenues. One-time revenue increase due to Pool A interest earnings from American Rescue Plan funds, Delta Shores and railyards bond proceeds with unknown withdrawals. - (600,000)
Community
Development
Delete a position (1.0 FTE Account Clerk II) in the Code Compliance Division and add a position (1.0 FTE Accounting Technician) to the Administrative Services Division as there is an increase in workload that requires higher-level review. No additional cost is associated with the new position.
- 9,026
Community
Development
Decrease revenue budget from Customer Service to align with actual revenues and historical trends.
- 356,599
Community
Development
Delete a position (1.0 FTE Customer Service Representative) and add a position (1.0 FTE Animal Services Adoption Coordinator) in the Animal Care Division to provide additional oversight to the robust volunteer program. - 30,317
Community
Development
Delete a position (1.0 FTE Customer Service Specialist) and add a position (1.0 FTE Administrative Analyst) in the Animal Care Division to support the veterinary, enforcement, and field services teams.
- 49,317
Community
Development
Add two positions (2.0 FTE Animal Control Officers) in the Animal Care Division and two vehicles to improve response time for service calls from the community.

2.00 512,828
Community
Development
Decrease revenue budget for Housing and Dangerous Building to align with actual revenues and historical trends.
- 490,000
Community
Development
Decrease revenue budget due to the loss of the Sacramento Abandoned Vehicle Service Authority funding. The program sunset on April 30, 2022, and Measure C failed to pass during the June 7, 2022, primary elections. - 405,292
Community
Development
Delete four positions (0.5 Youth Aide) and add a position (0.5 FTE Crew Leader) in the Code Compliance Division to lead and supervise the citywide graffiti abatement youth program.
- 1,153
G/MU Funds
31 FY2023/24 Proposed Budget

Department Description
FTE
Change
Net Budget
Change
Community
Development
Add a position (1.0 FTE Program Specialist) in the Code Compliance Division to oversee the hearings and appeals process and supervise section's staff.

1.00 158,311
Community
Development
One-time revenue budget increase for Neighborhood Code Compliance to align with actual revenues to be evaluated in the following fiscal year for sustainability. - (715,960)
Community
Development
One-time revenue budget increase for Business Compliance to align with actual revenues to be evaluated in the following fiscal year for sustainability. - (350,000)
Community
Development
Add a position (1.0 FTE Development Services Technician) in the Planning Division to handle increasing volume of work and meet customer service levels.

The cost of the position is being offset by increasing reimbursement for existing positions.

1.00 (1,629)
Community
Response
Delete a position (1.0 FTE Media and Communications Specialist) in the Office of the Director and transferred to the City Manager's Office. (1.00) (129,871)
Finance Delete three vacant positions (3.0 FTE Principal Accountants) and add three new positions (3.0 FTE Supervising Financial Analyst) in the Accounting Division to address the pay inequities between the level of responsibilities for the positions and salary. Positions will be offset by the deletion of the positions and increasing the special assessment revenues based on three year actuals. - (13,566)
Finance Add a position (1.0 FTE Senior Development Project Manager) in the Infrastructure Financing Division to manage five new Enhanced Infrastructure Finance Districts (EIFDs). Current staffing levels are unable to support the increased workload in forming and managing these EIFDs. The position costs for FY2023/24 will be offset by the Innovation & Growth Fund (IGF). Starting FY2024/25 position will be offset by the revenues generated from the EIFDs.

1.00 (4,493)
Finance Add a position (1.0 FTE Administrative Analyst) in the Procurement Division to support contract administrative duties and provide oversight and analysis of current programs that have grown in scope. Position will be offset by budgeting rebate revenues generated through contracted vendors.

1.00 3,634
Finance Delete a position (1.0 FTE Senior Staff Assistant) and add a new position (1.0 FTE Administrative Analyst) in the Revenue Division to align the needs of the department with the appropriate classification and allow the Program Manager to shift their focus to managerial duties. Position will be offset by the deletion of the position and a reduction in services and supplies.
- 3,591
Fire Delete vacant dual role firefighter paramedic/Emergency Medical Technician (EMT) positions (18.0 FTE Firefighter) and convert into single role positions (15.0 FTE Fire EMT and 15.0 FTE Fire Paramedic) and add 10 positions (5.0 FTE Fire EMT and 5.0 FTE Fire Paramedic) to implement the Single Role Program. Add positions (3.0 FTE Assistant Chief, 1.0 FTE Fire Captain Admin, 3.0 Fire Captain) to manage the day-to-day operations of the Single Role Program.

Positions will be offset by the deletion of the positions, new Advanced Life Support revenues and the Intergovernmental Transfer commitment of General Fund Balance.

29.00 -
Fire Add a position (1.0 FTE Fire Investigator II) in the Fire Investigation Division to determine fire origin and cause and the detection and apprehension of parties responsible for committing arson, fire-related crimes, and insurance fraud.

1.00 305,788
Fire Increase funding for the addition of two fleet vehicles for Fire Prevention Officers.

Costs will be offset by the projected increase in the fire prevention revenues. - -
Fire Add a position (1.0 FTE Fire Captain Admin) in the Fire Suppression Division in response to Assembly Bill 542 by early intervention/prevention, thus creating a healthier workforce.

1.00 318,678
Fire Increase revenues in the Fire Prevention, Operations, Special Operations and Emergency Medical Services divisions to better align with actual revenues received in prior years.
- (4,186,112)
G/MU Funds (continued)
32 FY2023/24 Proposed Budget

Department Description
FTE
Change
Net Budget
Change
Human Resources Delete a position (1.0 FTE Labor Relations Analyst) and add a position (1.0 FTE Labor Relations Officer) in the Labor Relations Division to assist with administrative operations of the City including the implementation of citywide policies through negotiations with Recognized Employee Organizations. The cost will be offset with Services and Supply savings.
- 9,470
Human Resources Delete two positions (2.0 FTE Investigator) and add two positions (2.0 FTE Labor Relations Administrative and Equal Employment Opportunity Investigator) in the Labor Relations Division to align the job classification to duties and skills required to perform the assigned work. Departments are charged back for the cost of investigations.
- 10,374
Human Resources Remove reimbursements from the Water Fund, Wastewater Fund and Storm Drainage Fund for 1.0 FTE Environmental Health and Safety Specialist. The Risk Management Division would like to retain this FTE if additional work arises to support the Utility Funds. If the FTE is filled, departments will be charged back for work performed.
- -
Information
Technology
Delete a position (1.0 FTE Department Systems Specialist II) and add one new position (1.0 FTE Information Technology Supervisor) in the DOU Systems Support Division to maintain Information Technology (IT) service levels necessary for Citywide operations.
- 70,680
Information
Technology
Add a position (1.0 FTE - Principal Applications Developer) in the Enterprise Applications Management Division for the expansion and the support of centralized Constituent Relationship Management (CRM), Grants Management System, and other digital services.

1.00 188,864
Information
Technology
Increase funding for ongoing support and capital enhancements for the Constituent Relationship Management (CRM) System. Of the $1.2M, $1M is for capital enhancements and $200K is for ongoing operating support. - 200,000
Information
Technology
Delete a position (1.0 FTE Senior Applications Developer) and add two new positions (2.0 FTE Information Technology Trainees) in the Enterprise Applications Management Division to create journey level career paths for prospective IT candidates.

1.00 3,750
Information
Technology
Increase funding for the IPRO Tech eDiscovery and Case Management Tool. - 188,970 Information
Technology
Add a position (1.0 FTE Administrative Analyst) in the IT Regional Support Division to oversee and manage the Software Asset Management Program.

1.00 131,599
Information
Technology
Delete a position (1.0 FTE Senior Information Technology Support Specialist) and add two new positions (2.0 FTE Information Technology Trainees) in the IT Regional Support Division to create additional capacity to handle IT requests and support incidents.

1.00 3,741
Information
Technology
Add a position (1.0 FTE - Principal Applications Developer) in the Public Safety IT Division to support the Fire Department.

1.00 188,864
Police Add a position (1.0 FTE Administrative Analyst) in the Alarm Billings Unit to support the increased false alarm workload and verify companies are complying with ordinance changes. The FTE cost will be offset by additional revenue generated.

1.00 1,599
Police Add three positions (2.0 FTE Dispatcher III, 1.0 FTE Supervising Dispatcher) in the Communications Unit to support the City Auditor's staffing recommendation and ensure the City has adequate recourses to meet the emergency needs of the growing population.

3.00 422,718
Police Delete one position (1.0 FTE Administrative Assistant) and add one position (1.0 FTE Administrative Technician) in the Office of Specialized Services’ Community Advancement Unit. This aligns the job classification to the job duties being performed.
- (387)
G/MU Funds (continued)
33 FY2023/24 Proposed Budget

Department Description
FTE
Change
Net Budget
Change
Police Add a position (1.0 FTE Administrative Analyst) to support the increased crime analysis and analytical needs of the Office of Investigations’ Crime Analysis Unit (CAU) for the community.

1.00 131,599
Police Delete six positions (2.8 FTE Security Officer) and add a position (1.0 FTE Program Specialist) in the CAU. The proposed change adds a necessary supervisor in the CAU.
(1.80) (7,186)
Police Add a position (1.0 FTE Administrative Analyst) in the Professional Standard Unit to ensure compliance with AB 481, requiring law enforcement to create, maintain, track and report on the use of equipment.

1.00 131,599
Police Add a position (1.0 FTE Administrative Technician) in the Violence Prevention Unit for administrative support and reporting functions.

1.00 105,171
Public Works Delete a position (1.0 FTE Office Specialist) and add a position (1.0 FTE Senior Accounting Technician) in Engineering Services to improve the organization structure and help facilitate Private Development projects and employee supervision. The cost is being offset with projects.
- (1,588)
Public Works Delete a position (1.0 FTE Electrical Construction Inspector III) in the Engineering Services Division. Position was transferred to the Department of Utilities. (1.00) (57)
Public Works Delete a position (1.0 FTE Supervising Construction Inspector) in the Engineering Services Division. Position was transferred to the Department of Utilities to assist with Capital Improvement Program (CIP) projects. (1.00) (77)
Public Works Add a position (1.0 FTE Arborist) to Urban Forestry in the Maintenance Services Division to manage all tree related contracts and services. This position will work with the Department of Utilities and the offsets will come from the following funds: Water (Fund 6005), Wastewater (Fund 6006) and from Storm Drainage (Fund 6011).

1.00 (1,895)
Public Works Delete a position (1.0 FTE Parking Enforcement Officer) and add a new position (1.0 FTE Parking Enforcement Supervisor) in the Parking Services Division to provide oversight of enforcement activities in the division. The cost is being offset with revenues.
- (1,604)
Public Works Add a position (1.0 FTE Administrative Analyst) in the Parking Services Division to manage the newly created Al Fresco Dining Program and collaborate with local businesses to maintain an effective program in the downtown and midtown area. The cost will be offset with revenues.

1.00 (13,401)
Public Works Increase funding in the Parking divisions operating and revenue budgets to support the increase in on-street reservation operating expenses and to better align with projected revenues.
- (949,474)
Public Works Move a position (1.0 FTE Operations General Supervisor) from the Parking fund to the General fund. Budgeting the labor cost for this position within the General Fund will better align with the on street primary duties of the position and the Parking Services division. The cost will be offset with reduced services and supplies.
- 621
Public Works Move a position (1.0 FTE Administrative Analyst) from Landfill Operations to Commercial Waste Compliance. Realigning the FTE will better support the division in regulating and enforcing commercial waste haulers within the city since Sacramento Waste Authority assistance terminated. The cost will be offset with services and supplies.
- (5,192)
Youth, Parks and
Community
Enrichment
Delete various positions (2.45 FTE total) and add three positions (1.0 FTE Aquatic Recreation Coordinator, 1.0 FTE Program Coordinator and 1.0 FTE Jr.

Plant Operator) to realign staffing to address programming needs in the Community Enrichment Division. Positions will be offset by the deletion of position and the increases in revenues made in the Division.

0.55 158,912
G/MU Funds (continued)
34 FY2023/24 Proposed Budget

Department Description
FTE
Change
Net Budget
Change
Youth, Parks and
Community
Enrichment
Delete various positions (2.81 FTE total) and add various positions (5.41 FTE total) in the Community Enrichment Division as the department has taken over the management of the Clunie Community Center, Shepard Garden, former Tiny Tots building and the Mckinley Rose Garden. Additional staffing is needed to manage, program and operate these facilities. Positions will be offset by the deletion of positions and the increases in revenues made in the Division.

2.60 210,199
Youth, Parks and
Community
Enrichment
Delete three positions (0.47 FTE Recreation Aide, 0.47 FTE Utility Worker and

1.0 FTE Recreation Superintendent) and add a position (1.0 FTE Recreation Manager) in the Community Enrichment Division to provide additional leadership support as operations have expanded at multiple facilities and spaces. Positions will be offset by the deletion of the positions.
(0.94) (8,582)
Youth, Parks and
Community
Enrichment
Delete four positions (0.10 FTE Recreation Aide, two 0.15 FTE Recreation Aides and 0.40 FTE Senior Recreation Aide) and add two positions (0.30 FTE Recreation Aide and 0.47 FTE Building Monitor) in the Community Enrichment Division to realign staffing to meet the updated programming needs of the Division. Positions will be offset by the deletion of the positions. (0.03) 2,671
Youth, Parks and
Community
Enrichment
Revenue adjustments to Aquatics, Community Recreation Services, Community Centers, Camp Sacramento, Older Adult Services and Permitting and Event's budget after evaluation of the department's history to better align with budget actuals.
- (1,790,000)
Youth, Parks and
Community
Enrichment
Increase funding in the operating to address the ongoing maintenance costs for landscaping associated with the construction of the new 64-acre Del Rio Trail. - 128,000
Youth, Parks and
Community
Enrichment
Delete a position (1.0 FTE Landscape Technician II) and add three positions (1.0 FTE Administrative Technician, 1.0 FTE Junior Landscape Assistant and 1.0 FTE Supervising Landscape Architect) in the Park Maintenance and Planning Division to address increased workload that are currently at an unsustainable level and expand programming. Positions will be offset by the deletion of the position and adjusting overhead charges to Capital Improvement Program (CIP) projects.

2.00 (1,844)
Youth, Parks and
Community
Enrichment
Reallocation of the FY2023/24 fleet replacement budget assumptions for vehicle unit 9972, which is no longer needed, to fund the purchase of other fleet vehicles/equipment in the Park Maintenance and Planning Division. - -
Youth, Parks and
Community
Enrichment
Revenue adjustments to Youth Enrichment's budget after evaluation of the department's history to better align with budget actuals. - 198,193
Citywide Support Increase funding for Visit Sacramento to continue to support tourism recovery through event support and production.
- 500,000
Citywide Support Increase the annual Sacramento Utility Rate Assistance Program budget (Multi- Year Operating Project - I14130100) due to program changes approved by Council in FY2022/23.
- 527,280

51.38 $ (1,792,894)
G/MU Funds (continued)
35 FY2023/24 Proposed Budget

Department
(Fund) Description
FTE
Change
Net Budget
Change
City Manager
(Innovation and
Growth)
One time funding to expand export markets and promote job creation through direct foreign investments and international business.
- 138,500
City Manager
(Innovation and
Growth)
Add two positions (1.0 FTE Economic Development Manager and 1.0 FTE Administrative Analyst) for the newly created Nighttime Economy Division in support of improving collaborative public safety efforts within the downtown core and business community.

2.00 432,437
Convention and
Cultural Services
(Community
Center)
Delete a position (1.0 FTE Administrative Assistant) in the Administration Division and add a position (1.0 FTE Assistant Director) to oversee department operations and facilitate department priorities.
- 36,747
Convention and
Cultural Services
(Community
Center)
Increase the services and supplies budget in the History Division to continue contracting with Downtown Sacramento Partnership for management services, maintenance services, overnight security, and events/activation for the Old Sacramento Historic District.
- 96,400
Convention and
Cultural Services
(Community
Center)
Increase funding for the Creative Edge Multi-Year Operating Project (MYOP) (I02181100) to support the expansion of the Cultural Arts Awards grant program. - 500,000
Convention and
Cultural Services
(Community
Center)
Delete various positions (12.0 FTE) and added various positions (8.0 FTE) to ensure event staffing needs are met at the SAFE Credit Union Performing Arts District.
(4.00) (39,820)
Convention and
Cultural Services
(Innovation and
Growth)
Increase funding for the Creative Edge MYOP (I02181100) to support grants, an internship program, and marketing activities related to film and media production in the City.
- 150,000
Convention and
Cultural Services
(Innovation and
Growth)
Increase funding for the Creative Edge MYOP (I02181100) to support the expansion of the Cultural Arts Awards grant program.
- 200,000
Convention and
Cultural Services
(Innovation and
Growth)
Increase funding for the Creative Edge MYOP (I02181100) to support creative placemaking activities at the neighborhood level.
- 650,000
Public Works
(Fleet
Management)
Delete three positions (3.0 FTE Equipment Service Worker) and add two positions (2.0 FTE Equipment Mechanic I) in the Fleet Division to provide additional support in vehicle maintenance and repairs for internal customers. The cost of the add/deletes provide a net savings.
(1.00) 10,021
Public Works
(Fleet
Management)
Delete a position (1.0 FTE Senior Equipment Service Worker) and add a position (1.0 FTE Operations General Supervisor) in the Fleet Division to oversee fleet shop operations and increase productivity. The cost is being offset with revenues.
- (3,609)
Public Works
(Marina)
Increase funding in the Sacramento Marina Division operating and revenue budgets to support the increase in Marina operating expenses and to better align with projected revenues.
- (127,727)
Public Works
(Parking)
Update a vacant (0.5 FTE Senior Parking Lot Attendant) position from 0.5 FTE to

1.0 FTE in the Parking Services Division to provide additional support in managing the City parking garages, surface lots, and other locations throughout the City. The cost is being offset with revenues.

0.50 897
Public Works
(Parking)
Delete a position (1.0 FTE Senior Building Maintenance Service Worker) and add a position (1.0 FTE Custodian I) in the Parking Services Division to better align with operational needs. The cost of the add/delete provides a net savings.

- (14,337)
Other Funds
36 FY2023/24 Proposed Budget

Department
(Fund) Description
FTE
Change
Net Budget
Change
Public Works
(Parking)
Increase funding in the Parking Division operating and revenue budgets to support the increase in off street parking and increase in operating cost. - (772,500)
Utilities (Storm
Drainage)
Add three positions (2.0 FTE Associate Engineers and 1.0 FTE Senior Engineer) in the Engineering & Water Resources Division to plan, design, and deliver projects for an expanded Capital Improvement Program (CIP) that will be offset through the new Storm Drainage Property Related Fee Capital Improvement Program (CIP).

3.00 2,054
Utilities (Storm
Drainage)
Add two positions (1.0 FTE Construction Inspector II and 1.0 FTE Supervising Construction Inspector) in the Engineering & Water Resources Division to support the Utilities' CIP. These positions were deleted from Public Works and will continue to be offset by the CIP.

2.00 (4,857)
Utilities (Storm
Drainage/
Wastewater/Water)
Delete five positions (0.72 FTE Student Trainee and 1.0 FTE Senior Office Specialist) in the Engineering & Water Resources Division to re-align positions within Utilities.
(1.72) (97,081)
Utilities
(Wastewater)
Add one position (1.0 FTE Program Specialist) to support regulatory requirements in the Wastewater Storm Drainage Division.

1.00 160,226
Utilities (Water) Add one position (1.0 FTE Administrative Analyst) for the Asset Management Program in the Engineering & Water Resources Division to provide critical infrastructure system support. The position is being partially offset by reducing the Department's operating budget and existing utility rate payer revenues.

1.00 74,914
Utilities (Water) Delete two positions (1.0 FTE Senior Engineer and 1.0 FTE Senior Engineering Technician) and add two new positions (2.0 FTE Associate Civil Engineer) in the Engineering & Water Resources Division to assist with the $30M Annual Pay-Go CIP. The cost of the two new positions are being offset by the CIP. - 16,530
Utilities (Water) Delete a position (1.0 FTE Storekeeper) and add two positions (1.0 FTE Administrative Analyst and 1.0 FTE Administrative Technician) in the Office of Director Division to support Security & Emergency Preparedness and Safety Programs. The cost of the positions are being partially offset by reducing department's operating budget and the HR-Risk Management interfund transfer has been deleted.

1.00 83,719
Utilities (Water) Add one position (1.0 FTE Public Information Coordinator) in the Office of Director Division to support water conservation outreach. The cost of the position is being offset by reducing professional services expense budget.

1.00 (3,039)
Utilities (Water) Add one position (1.0 FTE Machinist Helper) in the Water Operations and Maintenance Division to keep up with the maintenance of facilities and avoid critical failures.

1.00 89,362
Utilities (Water) Add one position (1.0 FTE Program Specialist) in the Water Operations and Maintenance Division to manage planning, coordination, and administration of Water Quality Laboratory and Research & Development section programs.

1.00 157,793
Youth, Parks and
Community
Enrichment (4th R)
Revenue and expenditure adjustments to 4th R's budget to reflect current operations post pandemic.
- -

6.78 $ 1,736,630
Other Funds (continued)
37 FY2023/24 Proposed Budget

Project Name (Number) Fund Name Description
Net Budget
Change
Office of Violence Prevention (OVP)
Disruption, Response, Intervention &
Prevention (I11003200)
Measure U Continue funding for community-based organizations' efforts to combat violence in Sacramento communities. The
program was established with one-time ARPA funds.
1,000,000
Measure L Youth Funding
(I80000100)
General Children's Fund as approved by voters with Measure L. 8,786,500 Total MYOPs $ 9,786,500
G/MU Funds Multi-Year Operating Projects (New)
Project Name (Number) Fund Name Description
Net Budget
Change
Digital Strategy (A07000700) Various
Funds*
Increase funding for ongoing support and capital
enhancements for the Constituent Relationship Management (CRM) System. Of the $1.2M, $1M is for capital
enhancements and $200K is for ongoing operating support. 1,000,000
Police Safety Equipment Program
(F11100800)
General Increase funding to replace ballistic protection equipment every five years. $600,000 is needed for the front/back replacement cycle.
120,000
Pedestrian and Bike Trail Repair
and Maintenance Program
(K15222100)
Measure U Increase funding in the CIP to address the ongoing capital needs for landscaping associated with the construction of the new 64-acre Del Rio Trail.
100,000
Total CIPs $ 1,220,000
* Various Funds include General Fund, Gas Tax 2016, Recycling and Solid Waste, Storm Drainage, Wastewater and Water.

Capital Improvement Program (CIP)
38 FY2023/24 Proposed Budget

4 SECTION - 4
Understanding the Budget
39 FY2023/24 Proposed Budget

40 FY2023/24 Proposed Budget

Budget Information
Budget Presentation
The presentation of the Budget includes both the FY2023/24 Proposed Operating Budget and the 2023-2028 Approved Capital Improvement Program (CIP) Budget which includes the FY2023/24 CIP Budget. The Budget documents are available on the City’s website at:
www.cityofsacramento.org/finance/budget.

The Budget includes technical informa tion concerning operat ing departments and estimated citywide revenues and expenses. The Forecast Section provides an outline of anticipated revenue, including an explanation of assumptions, and a five-year G/MU Fund forecast (revenues and expenditures). The Budget Schedules include detailed information on staffing, revenue estima tes, and proposed expenditures for the governmental funds, the enterprise, and other special revenue funds. The Staffing section provides a list of authorized positions for each department, by classification, including the changes in FTE.

The Budget Process
The Mayor and Council continued efforts to engage and educate the community on the budget process and the City’s financ ial challenges over the l ong-term by completing a community budget survey and facilitating discussions at the Budget and Audit Committee (Committee) and Council meetings in J anuary and February. The following graphic represents the City’s budget/program planning cycle:

The City’s fiscal year is July 1 through June 30. As such , the Council adopts the City's operating and capital budgets for a single fisca l year beginning July 1 and ending June 30 in the subsequent calendar year.
41 FY2023/24 Proposed Budget

To establish the annual budget, the Budget, Policy and Strategic Planning Division of the Finance Department, in coordi nation with the City Manager and the City’s operating departments, develops a proposed revenue and expenditure plan for the coming fiscal year. The existing approved expenditure plan is carried over from the prior year and:

 Labor costs are updated to reflect current salaries, minimum wage changes and adjustments for taxes as well as salary and benefit changes called for in union contracts. Estimates are also established for unrepresented employees.  Cost Plan allocations which reimburse the General Fund for support provided to the enterprise funds are updated based on services (acc ounting, budget, facility maintenance, human resources, informati on technology [IT], payroll as well as Council and Charter Offices) provided.
 Debt service is updated to reflec t the actual payments required.  Fleet (City vehicles) expenditures includi ng vehicle acquisition, fuel, operations and maintenance, and motor pool are updated based on established replacement schedules, prior year actual costs/usage and anticipated cost increases.  General Liability and Auto Liability in surance costs are updated based on annual experience and exposure cost allocation studies in accordance with the adopted Risk Management Funding and Reserve Policy.
 Retiree health care costs and pens ion payments for t he Sacramento City Employees’ Retirement System (SCERS) are updated based on actuarial reports.

Departments are also provided with an opportunity to request budget changes to address ongoing initiatives like repair and replacement of aging equipment and infrastructure, utilities, and staffing needs. These requests are submitted and reviewed by the City Manager’s Office. A summary of budget modi fications are outli ned in the Budget Overview Section.

A five-year revenue model has been develope d based on prior year actual revenue receipts and economic and revenue indicators to determine what resources, tax revenues, and other discretionary revenues will be available to support operating requirements. Detailed information on the revenue forecast, including estimated ongoing impacts of the pandemic, is included in the Forecast Section. Capital improvement programs and projects are identified and f unded with available G/MU Funds, enterprise funds, internal service funds, grants, tr ansportation, and other funding sources as identified in Schedule 4 and detailed in the 2023-2028 CIP.

Council Priorities
On February 14, 2017, the Council adopted the following Core Budget Policies and Guidelines (Resolution 2017-0078) for the annual budget. 42 FY2023/24 Proposed Budget

Financial Management Policies
The City of Sacramento develops its annual budget according to Council-adopted sustainable budget policies. These policies call for one-time funding sources to only be used for one-time operating and capital expenditures. Ongoing expenditures are to be matched with ongoing financing sources. Reserves are to be used in a planned and strategic manner. The five-year forecast for the G/MU Funds will be updated as new information becomes available. Full reviews of revenue receipts in comparison to the budgetary estimates are performed and corrective actions recommended, if necessary.

The ongoing core of the Council’s budget philosophy continues to be sustainability. The Council has adopted the following financial management policies that guide the development of the Budget, financial decision making, and fund management. These policies are included in the Financial Policy Section of the document.
 Budget Control
 Debt Management and Debt Management Disclosure
 Development Stabilization Contingency Reserve (DSCR) and Development Services Fund Management
 Emergency Medical Services (EMS) Revenue Recovery

1. City Council must adopt a balanced budget.

2. Funding decisions should be consistent with Council adopted policies.

3. The Economic Uncertainty Reserve shall be maintained at a minimum of 10% of budgeted General Fund revenues. Resources shall be added to maintain this level through the budget and midyear processes as necessary.

1. Maintain a fiscally sustainable, balanced budget.

2. The Mayor and Council’s priorities, based on community input, should drive the budget creation.

3. Continue a community-based budget process where city residents are engaged and educated on budget processes and provide feedback on budget priorities.

4. Look for ways to grow the reserve beyond its current goal.

5. All budget actions must be considered in a five-year context, with new revenues not counted or spent until realized. One-time resources should be used for one-time needs, not ongoing expenses.

6. Do not make spending decisions in isolation. Avoid spending money on one-off projects or without looking at the big picture. Understand long-term consequences and opportunity costs.

7. Keep Council informed on the fiscal condition of the City and conduct continuous evaluations for efficiencies and effectiveness.

8. The City must consistently look for opportunities to proactively grow revenues instead of being reactive.

9. Make every effort to identify private financing or federal and state grant opportunities before using City resources. Pursue new and enhance existing revenue sources.

10. Before new expenditures are made, identify return on investments and impacts; fiscal and social benefits.

11. Address unfunded long-term liabilities.

12. Remain a full-service city.

Budget Guidelines
Core Budget Policies
43 FY2023/24 Proposed Budget

 Fees and Charges
 General/Measure U (G/M U) Fund Economic Uncertainty Reserve (EUR)  Interfund Loans
 Investment
 Other Post-Employment Benefits (OPEB)
 Pension Funding
 Risk Management Funding and Reserve
 Sacramento City Employees’ Retirement System (SCERS) Investment Performance Measurement
A performance management program is an important tool in city management. It offers a method of measuring the success of programs and activities in achieving outcomes that reflect public priorities. The establishment and evaluation of performance metrics and business improvement activities will serve to inform operational and strategic decision- making throughout the organization. As a managem ent tool, it will aid in evaluating how well programs are providing quality services.

The National Performance Management Advisory Commission’s “A Performance Management Framework for State and Local Government,” provides a model for public sector performance management based on sev en key principles, which can be applied to local government planning, budgeting, management, and evaluation to bring together critical processes and decision making to impr ove results. The seven principles ensure that:

1. A results focus permeates strategies, processes, the organization culture, and decisions. While compliance with prescribed processes can assure fairness, fiscal integrity, or adherence to the law, it does not necessarily result in substantial benefits to the public. Perfo rmance management assures that the organization’s culture and processes are aligned with the goals the organization wishes to achieve.

2. Information, measures, goals, priorities, and activities are relevant to the priorities and well-being of th e government and the community . To achieve results, an organization must first establish goals and performance targets that are relevant to stakeholders. It then must ensure that all levels of the organization (e.g., policy makers, managers, staff, and others) understand ho w to implement performance management tools that will achieve those goals.

3. Information related to performance, decisions, regulations, and processes is transparent, i.e., easy to access, use, and understand. The transparency (i.e., completeness, organization, and understandability) of performance information is critical to fostering evidence-based planning, budget, and decision making.

4. Goals, programs, activities, and r esources are aligned with priorities and desired results. Effective performance management systems ensure alignment among an organization’s goals, priorities, programs, activities, resources, and desired results.
44 FY2023/24 Proposed Budget

5. Decisions and processes are driven by timely, accurate, and meaningful data. Collecting, storing, and applying perfo rmance data is essential to tracking and understanding results.

6. Practices are sustainable over time and across organizational changes . “Performance management is not an even t, a program, or a quick fix…” Efforts must be sustainable, flexible, and adaptable enough to keep up with inevitable changes, whether those changes take plac e within the organization’s leadership or the community in which the organization is located.

7. Performance management transforms the organization, its management, and the policy-making process. An organization that has been truly transformed by performance management uses evidence-based planning and management, objective goal setting, and alignment of its structure, system s, and resources to achieve its desired results.

The City has been working on performance management with departm ents to identify measures that address these principles. Wh ile department sections include a few key measures, there are many additional measures being tracked citywide. The City Manager’s Office directly oversees this program and is working on strengthening existing measures and adding measures that are important to the Council, our community, and the operating departments/management.

45 FY2023/24 Proposed Budget

FINANCIAL INFORMATION

Budget Basis
The City’s annual budget is pr epared on a modified accrual basis of accounting.

Governmental fund financial statements are reported using the current financial resources measurement focus and the m odified accrual basis of a ccounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For th is purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Property taxes, franchise taxes, licenses , intergovernmental revenue, special assessments, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and so have been recognized as revenues of the current fiscal period. All other revenue items are cons idered measurable and available only when cash is received by the government.

Expenditures are generally recorded when a lia bility is incurred, as under accrual accounting. However, debt service expenditur es, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Budgets are modified throughout the year when the tax base changes, fees are modified, new revenue sources are identified, or pr ograms are changed. Th e City Manager is authorized to administratively amend the budget during the year for transactions less than $250,000 without Council ap proval. All other appropriation adjustments during the year require Council approval. Unencumbered annual budget appropriations lapse at fiscal year-end except as specific ally identified in the annual budget resolution. Multi-year budget appropriations are automatically carried over into the next fiscal year.

Fund Structure
The City uses fund accounting to assure and demonstrate compliance with finance- related legal requirements. A fund is defined as a separate accounting entity with a self- balancing set of accounts recording cash and other financial resources together with related liabilities. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrict ions, or limitations. The City has three types of funds:
 Governmental Funds  Account for activities which are primarily supported by taxes or other mandatory payments. Most of the City’s basic services are included in governmental funds. There are three categories of Governmental Funds:
o The General Fund is the primary operating fund of the City and accounts for all financial resources except for those that are required to be accounted for in separate funds. Sources of General Fund revenues include taxes, licenses, permits, fees, fines, intergovernmental revenues, and charges for services, 46 FY2023/24 Proposed Budget

special assessments, interest income , and other resources available for discretionary funding.

The G/MU Fund EUR was established to provide resources for the Mayor and Council to manage the impact of economic fluctuations that negatively impact the City’s revenues.
- April 26, 2016 – Council-adopted the General Fund EUR Policy (Council Motion 2016-00440) establishing a minimum reserve level equal to 10% of annual General Fund revenues and a target reserve level equal to two months of regular ongoing General Fund expenditures, including transfers (17% of General Fund ex penditures). Resources to fund this reserve will be identified on an ongoi ng basis and can include positive year-end results or other one-time re sources available to the General Fund.
- February 5, 2019 – Council adopted the General/Measure U Fund EUR Policy (Resolution 2019-0248) addi ng the Measure U Fund to the original EUR Policy.
o The Measure U Fund was established to account for revenues collected from the half-cent transactions and use tax approv ed by voters in on November 6, 2012. On November 6, 2018, the voters approved a change to Measure U, increasing the tax to one cent. Measur e U was approved as a general tax and can be used for any general government purpose. This tax is charged on each dollar of taxable sales of goods purchased from retailers within the City of Sacramento, and on the taxable storage, use, or consum ption of goods purchased outside the city and delivered to a location within the city. o Other Governmental Funds include:
- Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes ot her than debt service or capital projects. These funds are generally r equired by statute, charter, or ordinance to finance specific governmental functions.
- Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest, or that are being accumulated for principal and interest maturing in future years.
- Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for governmental capital assets.
 Proprietary Funds  Account for services for which customer fees are intended to finance the costs of operations. There are two types of Proprietary Funds:
47 FY2023/24 Proposed Budget

o Enterprise Funds account for progr ams and services financed and operated similar to business-type activities which include services rendered to the general public on a fee basis.
- Community Center Fund accounts fo r the operation and maintenance of the City’s Convention Center Complex, including the Convention Center Theater, Memorial Auditorium, and the Community Center. - Parking Fund accounts for the operat ion and maintenance of five City parking garages and 39 surface parking lots (including lots owned by the State of California and numerous private owners).
- Solid Waste Fund accounts for the collection and disposal of refuse throughout the City and for landfill closure.
- Storm Drainage Fund accounts for the operation and maintenance of the City’s surface drainage system.
- Wastewater Fund accounts for t he operation and maintenance of the City’s wastewater system.
- Water Fund accounts for the operation and maintenance of the City’s water treatment and water transmission and distribution systems. o Internal Service Funds, i.e., the City’s Fleet Fund and Risk Management Fund, account for the activities that provide services delivered by one department to another department on a cost reimbursement basis.
 Fiduciary Funds  Account for activities that most closely resemble not-for-profit organizations, including trusts and agency activities. The City is:
o The trustee, or fiduciary, for its closed (effective January 1977) defined benefit pension plan – Sacramento City Employees’ Retirement System (SCERS). o Responsible for other assets, held on behalf of investors, in the City’s investment pool and individual investment accounts.
o Responsible for the assets received by the Successor Agency from the City’s former Assembly Bill X1 26 which dissolved redevelopment agencies in California.
o The agent for bonded assessment and comm unity facilities districts and responsible for ensuring the assets repor ted in these funds are used for their intended purposes.

Annual budgets are adopted for the governmental funds, enterprise funds, special revenue funds, and internal service funds. Expenditures are appropriated on a modified accrual basis, except the commitments rela ted to purchase orders and contracts are treated as expenditures in the year of commitment.
48 FY2023/24 Proposed Budget

49 FY2023/24 Proposed Budget

HOW TO READ THIS DOCUMENT

The Budget for each department is presented in a format that includes the following:

 Department mission stat ement (if available)
 Budget/staffing changes
 A department level budget summary table showing budget for:
 FY2020/21 Actuals
 FY2021/22 Actuals
 FY2022/23 Approved Budget
 FY2022/23 Amended Budget (as of February 2023)
 FY2023/24 Proposed Budget
 Variance
The summary table shows for each year:
 Budgeted expenditures by category
 Funding sources and amounts
 A division level summary budget table:
 FY2020/21 Actuals
 FY2021/22 Actuals
 FY2022/23 Approved Budget
 FY2022/23 Amended Budget (as of February 2023)
 FY2023/24 Proposed Budget
 Variance

 A division level summary staffing table:
 FY2020/21 Actuals
 FY2021/22 Actuals
 FY2022/23 Approved Budget
 FY2022/23 Amended Budget (as of February 2023)
 FY2023/24 Proposed Budget
 Variance

50 FY2023/24 Proposed Budget

DEPARTMENT BUDGET SUMMARY TABLE
The Budget for each department is compared wit h the prior year amended. A sample is as follows:

Column 1 – FY2020/21 actual expenditures by category and funding amounts by source.

Column 2 – FY2021/22 actual expenditures by category and funding amounts by source.

Column 3 – FY2022/23 Approved Budget by category and funding amounts by source.

Column 4 – FY2022/23 Amended Budget by ca tegory and funding amounts by source.

Column 5 – FY2023/24 Proposed Budget by category and funding amounts by source.

Column 6 – The budget change between th e FY2023/24 Proposed and the FY2022/23 Amended budget.

Change
Human Resources FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 10,146,890 $ 10,827,246 $ 12,406,712 $ 12,406,712 $ 12,647,112 $ 240,400 Other Services and Supplies 36,973,006 43,999,886 44,866,723 44,834,723 52,114,348 7,279,625 City Property 61,186 36,321 43,200 43,200 43,200 -
Multi-Year Operating Projects - - 213,250 103,250 235,810 132,560 T r a n s f e r s ( 6 3 , 9 4 5 ) ( 6 8 , 8 0 7 )--- -
Labor and Supply Offset 4,348,990 5,833,167 3,197,132 3,197,132 1,443,365 (1,753,767) Total $ 51,466,126 $ 60,627,813 $ 60,727,017 $ 60,585,017 $ 66,483,835 $ 5,898,818 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 3,474,946 $ 4,090,961 $ 4,730,981 $ 4, 698,981 $ 5,145,579 $ 446,598 Fleet Management 59,614 59,614 59,614 59,614 14,433 (45,181) Interdepartmental Service 1,648,618 1,673,537 1,725,737 1,725,737 1,664,044 (61,693) Marina - - - - 4,811 4,811
Measure U - - 473,906 473,906 456,897 (17,009)
Parking - - - - 4,811 4,811
Recycling and Solid Waste 117,545 117,545 150,087 150,087 152,226 2,139 Risk Mgmt 32,815,663 40,623,117 37,605,559 37,495,559 42,480,291 4,984,732 Storm Drainage 45,189 45,189 30,326 30,326 - (30,326)
Wastew ater 18,585 18,585 33,693 33,693 - (33,693)
Water 57,700 57,700 104,452 104,452 - (104,452)
Worker's Compensation 13,228,265 13,941,565 15,812,662 15,812,662 16,560,743 748,081 Total $ 51,466,126 $ 60,627,813 $ 60,727,017 $ 60,585,017 $ 66,483,835 $ 5,898,818 51 FY2023/24 Proposed Budget

DIVISION BUDGET SUMMARY TABLE

The Division Budget Summary table shows proposed expenditures for each division in the department. The tables look like the one below:

Column 1 – FY2020/21 actual expenditures by division.

Column 2 – FY2021/22 actual expenditures by division.

Column 3 – FY2022/23 Approved Budget by division.

Column 4 – FY2022/23 Amended Budget by division.

Column 5 – FY2023/24 Proposed Budget by division.

Column 6 – The budget change between the FY2023/24 Proposed and the FY2022/23 Amended Budget.

STAFFING LEVELS SUMMARY TABLE

The Staffing Levels Summary table shows proposed Full-Time Equivalent (FTE) positions for each division in the department. The tables look like the one below:

Column 1 – FTEs by division in FY2020/21.

Column 2 – FTEs by division in FY2021/22.

Column 3 – FTEs by division in the FY2022/23 Approved Budget.

Column 4 – FTEs by division for the FY2022/23 Amended Budget.

Column 5 – FTEs by division as Proposed for FY2023/24.

Column 6 – The budget change in FTEs by division between the FY2023/24 Proposed and the FY2022/23 Amended Budget.

Change
Human Resources FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division 10.00 9.00 9.00 9.00 9.00 -
Benefit Services Division 9.00 9.00 9.00 9.00 9.00 -
Employment, Classification and Dev Divison 15.00 15.00 15.00 15.00 15.00 - Risk Management Administration Division 17.00 17.00 17.00 17.00 17.00 - Workers' Compensation Division 19.00 19.00 19.00 19.00 19.00 - Labor Relations Division 10.00 10.00 11.00 11.00 11.00 - Office of Diversity and Equity Division - - 3.00 3.00 3.00 - Total 80.00 79.00 83.00 83.00 83.00 -
53 FY2023/24 Proposed Budget

54 FY2023/24 Proposed Budget

5 SECTION - 5
The Forecast
55 FY2023/24 Proposed Budget

56 FY2023/24 Proposed Budget

Proposed Financial Forecast

Financial Forecast
The financial forecast is a fiscal management tool that evaluates current and future fiscal trends and presents estimated information based on past, current, and projected financial conditions. This tool helps identify future revenue and expenditure trends that may have an immediate or long-term influence on Council's policies, strategic goals, and community programs and services.

General and Measure U (G/MU) Funds Overview
This section includes a five-year forecast for the G/MU Funds combined, a separate forecast for the Measure U Fund and the City’s Enterprise Funds. The information in these forecasts provides a current picture of the fiscal condition of the funds, establishing an important context to the decision-making necessary to maintain both essential community services and fiscal stability.

As mentioned previously, the City continues to recover from the fiscal impacts of the COVID-19 pandemic, but our financ ial condition is now affected by rising inflation and interest rates and the overall slowing of economic growth. While the major G/MU Funds including Property Tax, General Sales and Us e Tax, and the Transactions and Use Tax revenues performed better than originally predicted in the previous fiscal year, growth has slowed down and this slowing continues to in future fiscal years. Operating Department revenues including parking (off street) remain below pre-pandemic levels. These revenue sources as well as any State and Federal stimulus opportunities will be monitored closely.

Staff will provide updates to Council as appropriate.

The forecast of expenditures includes anticipated growth to address increasing costs for pension and liability insurance. The labor forecast assumptions include estimated increases for known pension costs and negot iated salary increases (steps) for employees. However, it does not include future labor growth (e.g., cost-of-living [COLA], health insurance). All contracts of the City’s eleven recognized employee organizations (REOs) will expire in calendar 2023. The City is currently in negotiations with two of the eleven REOs and the remaining nine will enter into negotiations within the calendar year.

The Five-Year G/MU Fund Forecast
Given the Council’s sustainable budget policy, proposed fiscal actions are evaluated in both a short and longer-term context. The five-year forecast is an essential tool in the City’s long-range financial planning process, providing a multi-year view of revenues and expenditures, allowing an assessment of the fiscal consequences of both prior and current funding decisions in the context of forecasted revenues and expenditures.

The five-year forecast is developed during the annual budget process based on the most recent national, State, regi onal and local economic data, trends, and changes in both economic conditions and anticipated future re venues trends and cost estimates are key components of the long-range forecasting proce ss. This allows the City to identify potential challenges and make course co rrections through budget and operational 57 FY2023/24 Proposed Budget

adjustments. In addition, if t here are significant changes to either revenues and/or expenditures during the year, outside of the budget or quarterl y reviews, the impact of those changes will be reported to Council as soon as practicable.

The Proposed FY2023/24 Budget is balanced; however, ri sing labor and liability costs place additional strain on our ability to produce a balanced budget starting in FY2025/26.

The current five-year forecast is presented below. It is important to note that the following forecast does not include the costs for homeless services.

Should the City continue to fund homeless services at the current level, expenditures will outpace revenues as early as FY2024/25. The forecast below includes homeless services, which shows a larger overall deficit in future fiscal years. If the City were to be awarded additional resources from the State as part of the Homeless Housing, Assistance and Prevention (HHAP) grant pr ogram, the funding gap would decrease. Future State and Federal resources are unknown at this time; however, they will be included in future forecasts when program funds have been awarded to the City.

5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING AVAILABLE FUND BALANCE 731 2,188 12,532 - - Revenues
Revenues 771,859 784,999 807,842 829,064 850,205 Other Sources 4,745 3,689 3,404 3,429 2,900 Total Revenues/Resources 776,604 788,687 811,246 832,493 853,105 Expenditures
Department Operating, Debt, and MYOPs 748,338 778,412 805,878 828,704 854,455 Capital Projects 14,167 14,635 14,444 14,469 13,941 EUR Contribution 3,857 4,009 4,146 4,260 4,386 Total Expenditures/Uses 766,361 797,056 824,469 847,434 872,781 Surplus/(Deficit) 10,243 (8,369) (13,223) (14,940) (19,676) Other Sources/(Uses)
Reserve for Future Budget Development (FY2020/21) - 10,000 - - - Reserve for Future Budget Development (FY2021/22) - 20,500 - - - Impact Fee Waiver Program - (3,000) (3,000) (3,000) (3,000) Total Other Sources/(Uses) - 27,500 (3,000) (3,000) (3,000) Voter-Approved Spending
Measure L (8,787) (8,787) (8,787) (8,787) (8,787) Total Voter
-Approved Spending (8,787) (8,787) (8,787) (8,787) (8,787) Surplus/(Deficit) with Other Sources 1,456 10,344 (25,009) (26,727) (31,463) ENDING AVAILABLE FUND BALANCE 2,188 12,532 (12,477) (26,727) (31,463) 58 FY2023/24 Proposed Budget

Additional challenges in the G/MU Fund forecast are detailed below:
 California Public Employees’ Retirement System (CalPERS) pension costs will increase by $24.0 million (17.9%) over the next four years.  Liability insurance premiums are estimat ed to increase by $ 18.5 million (50%) over the next four years.
 Uncertainty with labor costs given that all eleven labor contracts will end before the close of calendar year 2023 and t he forecast does not include future increases for COLAs or health insurance.
 Compliance with the Advance Clean Fl eets Regulation, scheduled to be adopted in late April 2023, will have a financial impact which is unknown at this time.
 Homeless services will cost approximately $193 million over the next four years.

With the exception of future labor contract s increases and the impa ct of the adoption of the Advance Clean Fleets Regulation, esti mates for the above challenges have been included in the forecast as presented.
5-Year Forecast
General (G) and Measure U (MU) Funds ($ in 000s)
FY2023/24
Projection
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING AVAILABLE FUND BALANCE 731 1,100 - - - Revenues
Revenues 771,859 784,999 807,842 829,064 850,205 Other Sources 4,745 3,689 3,404 3,429 2,900 Total Revenues/Resources 776,604 788,687 811,246 832,493 853,105 Expenditures
Department Operating, Debt, and MYOPs 748,338 778,412 805,878 828,704 854,455 Capital Projects 14,167 14,635 14,444 14,469 13,941 EUR Contribution 3,857 4,009 4,146 4,260 4,386 Total Expenditures/Uses 766,361 797,056 824,469 847,434 872,781 Surplus/(Deficit) 10,243 (8,369) (13,223) (14,940) (19,676) Other Sources/(Uses)
Reserve for Future Budget Development (FY2020/21) - 10,000 - - - Reserve for Future Budget Development (FY2021/22) - 20,500 - - - Impact Fee Waiver Program - (3,000) (3,000) (3,000) (3,000) Total Other Sources/(Uses) - 27,500 (3,000) (3,000) (3,000) Voter-Approved Spending
Measure L (8,787) (8,787) (8,787) (8,787) (8,787) Total Voter-Approved Spending (8,787) (8,787) (8,787) (8,787) (8,787) Surplus/(Deficit) with Other Sources 1,456 10,344 (25,009) (26,727) (31,463) Homeless Services
Schedule 9 MYOP Funding 11,368 11,414 11,460 11,507 11,555 Homeless Services Resources (HHAP) 19,833 - - - - Whole Person Care Savings 7,162 - - - - Current Year Savings/ARPA Scrub 2,922 - - - - Homeless Services Programming (42,373) (47,337) (47,451) (48,637) (49,853) Total Homeless Services (1,088) (35,923) (35,991) (37,130) (38,298) Surplus/(Deficit) with Homeless Services 368 (25,579) (61,000) (63,857) (69,761) ENDING A VAILABLE FUND BALANCE WITH HOMELESS SERVICES 1,100 (24,479) (61,000) (63,857) (69,761) 59 FY2023/24 Proposed Budget

General/Measure U Fund Revenues
The City’s G/MU Fund revenues continue to experience growth across most revenue sources. The following tabl e highlights the top four G/MU Fund revenue sources representing 69% G/MU Fund revenues.

The chart below provides a five-year year look back and forecast of G/MU Fund revenue growth. Property tax and sales tax continue to be the main catalyst for revenue growth within the City. G/MU Fund revenues are proj ected to increase by 52% from FY2017/18 through the term of the forecast in FY2027/28.

Property Tax
Property taxes account for 29% of all G/MU Fund revenues. Revenues related to property taxes are affected by fluctuati ons in the real estate market, levels of new construction activity, and the corresponding changes to the assessed value of those properties on the tax roll.

Revenue Source ($ in 000s)
FY2022/23
Approved
FY2023/24
Proposed
FY2024/25
Projected
FY2025/26
Projected
FY2026/27
Projected
FY2027/28
Projected
Property Tax 202,210 219,236 225,675 232,308 239,140 246,177 Measure U Transaction & Use Tax 137,099 135,124 135,330 140,219 144,812 149,115 General Sales & Use Tax 108,467 110,227 110,625 115,155 119,562 123,846 Utility User Tax 65,665 68,165 68,506 68,848 69,193 69,539 Other Revenue 242,668 239,107 244,863 251,312 256,358 261,529 Total General/Measure U Revenue 756,109 771,859 784,999 807,842 829,064 850,205 $420
$520
$620
$720
$820
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Millions
Fiscal Year Ending
All General/Measure U Funds
Actuals FY23 Approved Budget Projections
60 FY2023/24 Proposed Budget

Housing sales have slowed considerably over the past year as inflationary pressures have driven interest rates higher and reduced discretionary spending. According to the Sacramento Business Review (SBR) January 2023 Report, currently more than 50% of adults between age 18 and 29 are electing to live at home to avoid high real estate costs, thereby depressing demand for both single family and multifamily housing units. As for the commercial sector, SBR predicts increas ing interest rates al ong with high tenant improvement construction costs will have a significant impact on property values. Interest rates are expected to peak in 2023, and current forecasts indicate as much as a 15% drop in pricing over the next few years. Sales volume has declined, and potential investors are waiting to see how far pricing will fall before investing in new office projects.

Overall Real Estate Activity for the Sacramento Region

From January 2022 through January 2023, Norada Real Estate Investments reported the cost of housing per square foot in the Sa cramento region (region) decreased from $340 to $317 and the median home price decreased from $522,000 to $499,000. Fanny Mae expects both new and existing home sales volumes to drop by 5.4% and 19.2% respectively in 2023 across the nation. Concerns about housing affordability persist, with 59% of renters and 28% of homeowners spending more than 30% of their monthly income on housing.

Category
1/2023 vs 1/2022
% Change
Average Price per Square Foot -6.8%
Medium Sales Price -4.4%
Median Days on the Market 262.5%
Active Inventory 64.1%
Sales Volume -44.5%
Data provided by Norada Real Estate Investments, January 2023 report 61 FY2023/24 Proposed Budget

Total assessed value for Sacramento County’s FY2022/23 secured and unsecured roll surpassed $207 billion, an increa se of 7.9% countywide. Additionally, the Sacramento County Assessor’s (Assessor) 2022 Annual Report and monthly reports have highlighted several positive barometers for the City as follows:

 Total gross assessed value of secured/uns ecured properties in the City grew 7.6% from FY2021/22 to FY2022/23.
 City properties with Proposition 8 assessm ents (temporary reduction in property taxes due) decreased from 5,722 in Ma rch 2022 to 3,152 in March 2023, a 45% decrease adding $207 million to the City’s secured roll over the past twelve months.

The table below illustrates the assessed roll value that remains to be restored as a result of the housing crash during the Great Recession. Restoration of Proposition 13 values happens annually, while reductions as the result of a Proposition 8 appeals can be applied to the tax roll at any time during the year . Therefore, the reduc tion in pending appeals limits the City’s exposure to a reduction in roll value.

Summary of Proposition 8 Assessments by Land Use

In December 2022, the California State Boar d of Equalization directed the Assessor to apply the full 2% inflation factor (CCPI – California Consumer Pric e Index) to property values for taxation. Because the Assessor d oes not complete work on the tax roll until after the Budget is adopted, the forecast for property tax revenues is based on the Assessor’s “work in progress” and will be re-evaluated when final information is received in July. The property tax secured roll fore cast for FY2023/24 is 8. 7% higher than the FY2022/23 Approved Budget wh ich included 3.8% growth over FY2021/22 actuals.

Estimates over the term of the forecast include 3% from FY2024/25 through FY2027/28, assuming the application of the full 2% for the Proposition 13 grow th factor and that Proposition 8 properties will continue to be restored to their Proposition 13 values on the tax roll over time.

Consistent with current C ouncil budget guidelines, property tax growth in the former redevelopment areas accrues to the Innovation and Growth Fund, except for the amount required for the possessory interest tax paid on the Golden 1 Center, which will be used for the associated debt service payment.

Property Type Prop 8 Prop 13 % of Full Value
Commercial 1,992,967,814 2,768,071,162 72%
Single-Family Residence 575,428,134 628,719,604 92%
Multi-Family Residence 264,405,231 378,433,742 70%
Industrial 196,670,352 232,948,637 84%
Others 76,967,696 104,331,055 74%
City Total 3,106,439,227 4,112,504,200 76%
62 FY2023/24 Proposed Budget

Property Tax In-Lieu of Vehicle License Fees (VLF)
The State’s 2004 property tax for VLF swap permanently reduced the VLF rate from 2% to 0.65%, shifted the VLF revenue to the St ate General Fund to make up for reduced property taxes to schools and shifted property taxes from the school share to property tax in-lieu of VLF to cities/counties. The C ounty of Sacramento Audit-Controller Division provided updated information in October 2022 for FY2022/23 collections and indicated the City would receive an increase of 7.8% in estimated revenues when compared to FY2021/2022 collections. After revising t he FY2022/23 base upward by $1 million, 5% growth was applied to the new baseline in FY2023/24, with 3% annual growth in over the term of the forecast.

Property Transfer Tax and Supplemental Property Tax
Real Property Transfer Tax - A charge imposed by the City upon the passing of title from one owner to another. The City charges $2.75 for every $1,000 of the property’s sale price (0.00275%). This revenue stream has fluctuated significantly ranging as high as $18 million in FY2004/05 to a low of $4.4 million in FY2010/11.

Supplemental Property Tax - A supplementa l tax bill is generated when a property is reassessed due to a change in ownership (a sale , transfer, or transfer of fractional interest) or the result of new construction. The supplemental tax bill reflects any increase or decrease in property tax generated by the supplemental event.

These two sources of revenue can be volat ile, fluctuating with the housing market, reaching a combined high of $27.7 million in FY2005/06 and a low of $4.6 million in FY2010/11. During the first seven months of FY2022/23, real estate transactions decreased by 40% and the va lue of these transactions decreased by 32% when compared to the same period in the prior year. January 2023 transaction volume was the lowest in the past ten years. As inflati on continues to erode di sposable income and interest rates hover around 6-7% for a 30-year mortgage, buyers are reluctant complete transactions and sellers aren’t in a rush to sell if they’re locked in lower interest rates and have few options for an affordable mortgage upon the sale of their current property.

FY2021/22 was an all-time high of $19.0 m illion for transfer tax collections, however activity has come to what seems like a griding halt comparatively with current FY2022/23 projections in the $11-12 million range bas ed on collections through the first seven months of the fiscal year. Transfer Tax and Supplemental Property Tax revenue streams are expected to decrease by 5% annually from FY2024/25-FY2027/28 as higher interest rates, increased housing supply and inflationary factors weigh heavily on the real estate market.

The following graph reflects the significant effect the Great Recession had on these revenue sources and the gradual rebound over the last eleven years. Given the volatility of these revenues it is espec ially important to be aware of market trends and adjust the forecast early should overall sales volume and price decrease dramatically. 63 FY2023/24 Proposed Budget

Sales Tax
The biggest catalyst for growth in G/MU Funds continues to be sales tax which accounts for 32% of G/MU Fund revenues. General Sale s and Use tax is imposed on all retailers for the privilege of selling tangible personal property in the state, whereas use tax is imposed on the purchase for storage, use, or other consumption of tangible personal property purchased from any retailer within the City. General Sales and Use tax accounts for 14% of all G/MU Fund rev enue. The General Fund receiv es only one cent of every

8.75 cents of sales tax paid per dollar sale in Sacramento. The Measure U Transactions and Use tax, approved by voters in November 2018, applies to most transactions subject to sales tax and is also collected on purchas es made by residents outside of the City on items such as automobiles. Measure U Transactions and Us e tax revenues account for 18% of all G/MU Fund revenue. Measure U generates one cent on every 8.75 cents of sales tax paid per dollar sale in the City and on major purchases delivered within the City.

As consumers changed their purchasing habi ts during the pandemic, sales tax was minimally impacted as consumers shifted t heir purchasing power to online sales. The table below lists the percentage breakdown of each economic segment of the G/MU Fund sales tax forecasted in FY2023/24.

64 FY2023/24 Proposed Budget

Inflation reached a 40-year high in 2022 putting a strain on household budgets, affecting consumer confidence, and driving up the cost of living. Many consumers have tightened their purse strings in response to the rising cost of living. Research by intelligence company Morning Consult shows that 56% of U.S. consumers ar e willing to shop less overall. Shoppers are prioritizing staples over discretionary goods and big-ticket items as 75% said they will delay the purchase of an electronic device, while 36% said they will buy fewer groceries.

The California used vehicle market also shifted into a lower gear during 2022. Used vehicle registrations fell 15.5% from 2021 to 2022. The new vehicle market declined

10.2%. Record high prices at the beginning of 2022 and cooling demand as the economy softened are the key causes for the decline. Wholesale used vehicle prices have generally drifted lower during the past few months and new vehicle inventories continue to be constrained due to supply chain issues. This should provide some support to used vehicle sales during the next six to 12 months, although sales are likely to drift lower. Below average new vehicle sales during the past thr ee years is putting a squeeze on supplies of late model used cars. Registrations of vehicles three years old or newer declined by

23.8% in 2022.

Avenu Insights & Analytics, the City’s sales tax consultant, predicts a reduction in energy
prices will create downward pressure on taxable items shipped by plane, ship, train, truck or auto. Lower prices are usually followed by increased demand. With declining gasoline prices some spending will shift to other taxable purchases like restaurants and retail.

Some disposable income previously spent on taxable gasoline and diesel will be spent on non-taxable services. Some disposable income previously spent on rising non-taxable housing costs and monthly utilit ies will be spent on taxable goods. The possibility of a recession i
n 2023 or 2024 remains but continued low unemployment and a tight labor market indicate that a severe downturn is unlikely. Avenu’s baseline forecast assumes a mild recession starting in 2023Q3 and lasting for three quarters. Growth projections in the five-year forecast range from one to four percent from FY2023/34-FY2027/28.

General Retail 23.5%
Business to Business 18.8%
Transportation 17.0%
Food Products 16.8%
Construction 14.1%
County Pool 7.3%
Miscellaneous 2.5%
Total 100.0%
G/MU Sales Tax Breakdown
by Economic Segment
65 FY2023/24 Proposed Budget

The table below breaks down the prior four calendar years for the base 1% sales tax excluding Measure U providing a picture of the impact of the pandemic on the City’s sales tax revenues.
66 FY2023/24 Proposed Budget

YE 2019Q4 YE 2020Q4 YE 2021Q4 YE 2022Q4
Apparel Stores 2,902,376 2,012,819 3,174,709 3,053,126
Department Stores 5,883,940 5,108,578 5,725,539 6,014,833 Furniture/Appliance 2,458,629 2,071,701 2,576,139 2,818,738 Drug Store 2,441,289 3,007,201 3,058,457 2,506,005
Recreation Products 655,269 637,283 776,143 721,020
Florist/Nursey 564,546 1,023,337 1,131,393 462,616
Miscellaneous Retail 4,615,521 3,988,424 5,363,019 5,160,920 General Retail Total 19,521,570 17,849,343 21,805,399 20,737,258 Restaurants 12,917,784 8,702,846 11,966,392 14,103,333
Food Markets 3,508,385 3,463,708 3,608,980 3,740,949
Liquor Stores 482,395 508,478 568,461 597,894
Food Processing Equipment 546,817 409,807 517,886 658,712 Food Products Total 17,455,381 13,084,839 16,661,719 19,100,888 Auto Parts/Repair 2,277,144 2,207,793 2,431,884 2,538,615 Auto Sales - New 1,661,159 1,754,319 1,700,174 1,955,613 Auto Sales - Used 1,825,188 2,109,747 3,233,422 3,089,119 Service Stations 5,901,799 4,351,079 5,950,250 7,405,599 Misc. Vehicle Sales 2,034,358 1,937,268 1,878,961 1,759,897 Transportation Total 13,699,648 12,360,206 15,194,691 16,748,843 Building Materials Wholesale 8,084,853 8,114,676 9,636,920 11,780,286 Building Materials Retail 2,230,024 2,563,275 2,789,002 2,938,275 Construction Total 10,314,877 10,677,951 12,425,922 14,718,561 Office Equipment 1,700,268 1,637,698 1,703,892 1,989,294 Electronic Equipment 548,546 561,613 608,767 690,361
Business Services 777,159 581,749 791,869 769,709
Energy Sales 2,585,052 1,993,607 3,207,516 4,343,172
Chemical Products 583,061 560,832 637,674 780,526
Heavy Industry 3,478,837 4,103,700 4,341,097 4,462,159
Light Industry 1,469,047 1,559,543 1,416,180 1,618,074
Leasing 1,173,263 1,140,395 1,446,263 1,570,982
Biotechnology 422,446 489,143 643,322 642,510
I.T. Infrastructure 271,583 426,483 45,538 47,234
Green Energy 0 0 0 0
Business To Business Total 13,009,262 13,054,763 14,842,118 16,914,021 Health & Government 920,869 835,203 843,600 1,018,120
Miscellaneous Other 708,268 687,047 842,203 910,805
Miscellaneous Total 1,629,137 1,522,250 1,685,803 1,928,925 Net Pools/Admin/Adjustments 14,662,239 14,624,175 19,061,199 18,097,150 Total Measure U Receipts 90,292,114 83,173,527 101,676,851 108,245,646 General Sales and Use Tax
(Benchmark Calendar Year)
67 FY2023/24 Proposed Budget

The table below breaks down the prior four calendar years fo r the Measure U 1% Transactions and Use Tax providing a picture of the impact of the pandemic on the City’s sales tax revenues. Note: The YE 2019Q4 dat a includes a partial year of the 1% collections as the Measure went into effect on April 1, 2019.

YE 2019Q4 YE 2020Q4 YE 2021Q4 YE 2022Q4
Apparel Stores 3,112,418 3,314,608 4,537,199 4,246,741
Department Stores 5,895,930 6,863,657 7,693,316 7,017,943 Furniture/Appliance 2,504,060 3,321,200 3,816,206 3,687,463 Drug Store 1,780,102 2,831,878 2,958,556 2,510,370
Recreation Products 660,484 990,611 1,127,006 1,041,951 Florist/Nursey 507,285 1,107,988 1,242,221 544,740
Miscellaneous Retail 7,120,880 12,120,216 14,609,534 14,665,757 General Retail Total 21,581,159 30,550,158 35,984,038 33,714,965 Restaurants 9,948,366 9,137,664 12,650,266 14,959,626
Food Markets 2,913,821 3,571,195 3,644,632 3,839,338
Liquor Stores 381,358 547,432 611,326 631,836
Food Processing Equipment 612,811 646,340 772,089 973,459 Food Products Total 13,856,356 13,902,631 17,678,313 20,404,259 Auto Parts/Repair 2,216,441 2,754,574 3,025,042 3,141,105 Auto Sales - New 5,450,759 7,435,076 9,711,021 10,216,220 Auto Sales - Used 1,660,747 2,484,116 3,158,399 2,704,257 Service Stations 4,750,481 4,491,228 6,165,146 7,559,681 Misc. Vehicle Sales 507,817 1,017,347 949,713 983,086
Transportation Total 14,586,245 18,182,341 23,009,321 24,604,349 Building Materials Wholesale 6,554,339 8,885,831 10,201,143 12,288,984 Building Materials Retail 3,492,489 4,968,243 5,369,071 5,342,135 Construction Total 10,046,828 13,854,074 15,570,214 17,631,119 Office Equipment 4,483,460 6,364,797 5,672,304 6,058,157 Electronic Equipment 1,342,097 1,749,122 2,605,299 2,162,038 Business Services 1,648,732 2,139,682 2,299,918 2,632,326 Energy Sales 537,260 601,067 920,726 1,290,140
Chemical Products 609,717 900,393 895,664 988,313
Heavy Industry 3,127,311 4,685,877 5,019,884 5,290,153
Light Industry 4,863,580 6,058,772 6,727,706 7,203,709
Leasing 1,790,418 2,739,050 2,862,801 2,911,301
Biotechnology 48,942 163,824 231,526 205,872
I.T. Infrastructure 901,231 552,883 316,492 365,644
Green Energy 88,501 148,163 238,680 184,586
Business To Business Total 19,441,249 26,103,630 27,791,000 29,292,239 Health & Government 1,704,964 2,205,836 2,644,490 2,777,494 Miscellaneous Other 1,267,681 1,728,536 1,928,680 1,942,823 Miscellaneous Total 2,972,645 3,934,372 4,573,170 4,720,317 Net Pools/Admin/Adjustments (3,621,541) (2,239,334) 2,648,755 1,932,497 Total Measure U Receipts 78,862,941 104,287,872 127,254,811 132,299,745 Measure U Transactions and Use Tax
(Benchmark Calendar Year)
68 FY2023/24 Proposed Budget

Utility User Tax (UUT)
UUT is a usage tax on communication, electric, and gas charges billed to a billing or service address in the City as authorized in the City Code (Section 3.32). Measure O was approved by the voters in November 2008, reducing the 7.5% tax rate to 7% on telecommunication services, but was expanded to include Voice over Internet Protocol (VoIP), text messaging, and many other previously excluded technologies. The 7.5% tax rate continues to be in effect for gas, electric, and cable services. UUT is the City’s third largest revenue source, accounting for 9% of General Fund revenue. UUT was the most consistent revenue stream over the past five years but also faces the most potential for adversity with industry regulation and the market growth of unregulated media platforms. The follo wing graph represents the UUT revenues by source:

Cable, wireless and wired telecom revenue components continue to face regulatory and fiscal pressure across their respective industries. The City has reduced UUT revenue projections in previous fiscal years to address these underperforming sect ors. Electricity and gas now account for almost 70% of all UUT revenue providing overall growth despite continued losses by the other components. Based on revenues collected during the first seven months of FY2022/23, UUT is projected to increase by 3.8% in FY2023/24, and FY2024/25-FY2027/28 include 0.5% annual growth reflected in the following chart.

69 FY2023/24 Proposed Budget

Details on each of the five components that comprise the UUT is provided below.

Cable Subscriptions – Cable providers lost 3.5 million subscribers in 2022 compared to a 2.7 million subscriber loss in 2021. Comcast, the City’s biggest cable provider, took the biggest hit losing over 2 million subscribers. Comcast accounted for 64% of the City’s cable UUT receipts in FY2021/22. Avenu, Insights and Analytics forecasts an additional 13% decline in revenue by FY2026/27. The City’s cable revenue decreased by $930,000 through the first seven months of FY2022/23, versus the same period in FY2021/22. Cable accounts for $7.3 million (11%) of all UUT revenue.

Electricity – Energy will continue to be the main catalyst for UUT growth for the foreseeable future. Since FY2016/17, the electricity sector has increased its share of the UUT pie from 47% to a projected 53% in FY2022/23. SMUD is the City’s primary source of electricity and continues to face cost pressures for compliance, risk mitigation requirements, technology, and grid investments. SMUD’s Board of Directors approved a 2.0% rate increase on January 1, 2023 to combat these issues. During the first seven months of FY2022/23, the City’s electricity UUT revenue increased by 4.6% compared to the same period in FY2021/22.

Natural Gas – PG&E approved a rate increase effective March 1, 2023. The increase is needed to address the cost of maintaining aging infrastructure, paying off debt accrued during the energy crisis, cost overruns for new natural gas pipeline construction and the rising natural gas and wholesale electric energy price increases due to inflation and the war in Ukraine. The average bill will increase 8-9% on a monthly basis. UUT gas collections were up $2.1 million during the first seven months of FY2022/23 compared to FY2021/22. Gas accounts for $11.8 million (18%) of all UUT revenue.

Wired Telecommunications – Wired telecom revenues continue to decline due to competition among providers and the lack of product and service diff erentiation. Existing residential customers continue to migrate towards less expensive alternatives. Wired UUT revenue accounts for approximately 9.7 million or 15% of the total UUT base; however, the revenue stream has decreased by 47% since FY1999/ 00. Through the first seven months of 70 FY2023/24 Proposed Budget

FY2022/23 wired telecom revenue is down $339,000 (-6.0%) compared to the same period in FY2021/22.

Wireless Telecommunications – Many wireless providers are generating the majority of their revenue through data services, which are not tax able. On average, this equates to an allocation of approximately 70-85% to data usage. This has caused a 78% decrease in wireless revenues since FY2009/10. During the first seven months of FY2022/23, wireless UUT revenues have increased by $105,000 (5.1%) versus the same period in FY2021/22.

Wireless telecom accounts for $3.5 million (5.4%) of all UUT revenue.

Cannabis Business Operations Tax (CBOT)
The California Department of Tax and Fee Administration reported an 8.2% decrease in cannabis sales in 2022 compared to 2021, the first decrease since state legalization five years ago. California is now considered a mature market for cannabis and without federal legalization to export to other states, growth potential remains slim. In addition, higher State taxes and increased regulation are pus hing industry growth away. Cannabis tax revenue is generated from cultivation, manufact uring, testing, deliv ery, microbusiness, dispensary, and distribution. FY2021/22 CBOT revenue decreased by $1.7 million or -

6.8%. Based on collections through the fi rst seven months of FY2022/23, revenue collections are projected to be $22.0 million despite a budget of $23.6 million. The FY2023/24 budget will remain at $22.0 million with no additional growth in the out years until more data becomes available.

Fees and Charges
Local government has the ability to implement fees to fund Cit y facilities, infrastructure, and services. There are five main categories of fees that the City currently implements:

 Impact/Development fees
 Penalties/Fines
 Regulatory fees
 Rental fees
 Service fees

On February 7, 2006 (Resolution No. 2006- 106), Council formally adopted a citywide Fees and Charges Policy. This policy ensures that fees and charges reflect the Council’s direction regarding recovery of costs relat ed to providing programs and services. The policy sets the guidelines for cost recovery goals, determines the categories of cost recovery levels, and allows for the establishment and modification of fees and charges. If a fee is not adjusted in the budget process, to the extent feasible and/or appropriate, it should be increased biennially by a consumer price index (CPI) factor to keep pace with inflation.

Beginning in FY2014/15, the City used the Stat e of California Departm ent of Industrial Relations CPI, which is the same index used by the County Assessor to adjust the annual property tax roll for inflation. The annual revi ew of citywide fees and charges helps to ensure that the City’s recovery of costs for services keeps pace with changes in the cost- 71 FY2023/24 Proposed Budget

of-living index, as well as changes in methods or levels of service delivery. Fees and charges make up approximately 9.2% of G/ MU Fund revenues. As part of the annual budget process, the Finance Department will present t he annual Fees and Charges Update to Council for adoption in May 2023.

Pandemic Impact on Local Revenues
The public health emergencies associated with the pandemic are winding down, and normalcy has mostly returned to daily life. The State of Califor nia ended its COVID-19 State of Emergency on February 28, 2023, and the federal government has announced its intent to end its national emergency and public health emergency declarations on May 11, 2023. The improving outlook of the pandemic has resulted in most revenue streams, including the Transient Occupancy Tax (TOT) in the Community Center Fund, recovering to pre-pandemic levels. However, off-street parking fees in the Parking Fund are still below pre-pandemic levels. Should revenues fa il to recover to pre- pandemic levels and forecasted growth in this fund, it could compromise the City’s ability to make required debt service payments, resulting in the need for additional General Fund support.

Over three-quarters of fund revenues collected in the Community Center Fund are TOT.

In FY2022/23, TOT is estimated to reach 94% of FY2018/19 actual collections, the last fiscal year with TOT collections uninterr upted by the pandemic. In FY2023/24, TOT is estimated to exceed FY2018/19 actual collect ions, indicating full recovery from the pandemic. It is worth noting that the recovery is largely due to inflation in hotel room prices and additions to the supply of available hotel rooms, while market occupancy of hotel rooms is still below pre-pandemic levels. T hese revenues will continue to be monitored as the hotel market normalizes.

To help stabilize the Community Center Fund, Council approved one-time General Fund support of $6.7 million as par t of the FY2021/22 Midyear Budget Report. Due to the improving TOT forecast, the Community Center Fund no longer requires this support to maintain a positive fund balance over the nex t five fiscal years. The removal of this support from the Community Center Fund has been reflected in the Budget.

Revenue from parking fees collected at City garages is projected to increase by 5.4% in FY2023/24 as operations continue to recover from the impacts of the pandemic, which lowered the usage of City-ow ned parking garages. Additionally , the City is anticipating annual parking fee increases of 5% through FY2026/27 and a 1% increase in FY2027/28.

However, estimated revenues in FY2027/28 are still below pre-pandemic levels. As employers adopt hybrid work models, the decline in usage of City-owned parking garages will continue to impact revenues.

To help stabilize the Parking Fund, Council approved one-time General Fund support of $5.1 million as part of the FY 2021/22 Midyear Budget Report. Despite this, the Parking Fund is projecting deficits in the five-year fo recast. If revenues fail to recover over the next couple of years, the Cit y will need to examine ways to reduce operational costs to meet its required obligations , including debt service payment s for the Golden 1 Center.

The Budget reflects additional one-time General Fund support of $633,000 to the Parking 72 FY2023/24 Proposed Budget

Fund to keep the fund positive for the fiscal year. The fund condition will be reevaluated next fiscal year.

Most revenue streams have recovered to pre-pandemic levels, however certain economic conditions which the pandemic contributed to but did not cause directly, such as inflation’s impact on property tax, sales tax, and utility user tax, are addressed in the General Fund forecast section. The forecast and information as presented in this Budget are based on the best information available to date. Staff wil l continue to monitor the impacts to the City’s revenue streams as well as opportunities for State and Federal relief and provide updates to Council as new information is available.

General and Measure U Fund Expenditures
The single largest expenditure in the G/MU Fund is the cost of employees who support department operations through the delivery of programs and services to the community.

The Budget and forecast include scheduled step increases for employees based on existing labor agreements. However, as mentioned above, the forecast does not include future labor cost growth beyond 2023. In FY2023/24, labor costs are expected to increase by 3.7% compared to the FY2022/23 Amended Budget due to approved salary increases, movement of employees through salary st eps, pension cost increases and new position augmentations.

California Public Employees Retirement System (CalPERS) The City participates in the CalPERS pensi on plan managed by the State of California.

Contributions to the plan consist of the normal cost rate which is determined by looking at the annual cost of providing benefits to active employees for the upcoming fiscal year.

The normal cost should be viewed as the long-term contribution rate which both the City and the employees contribute toward.

The second component is a payment for th e unfunded accrued liability (UAL) which is determined by looking at the Market Value of Assets of the City’s two defined benefit plans (Miscellaneous and Safety) and comparing it with the accrued liability of that plan.

To the extent that the assets are different from the liability, the City is required to make a payment (determined by CalPERS) toward the UAL. The purpose of the UAL payment is to get the assets and liabilities back to even over time. The City’s current UAL with CalPERS is over $900 million.

The total employer contribution is the sum of the normal cost rate applied to an employer's reported payroll plus the UAL payment. These two components are the required contribution amount t hat employers pay CalPERS to fund their employees' pension benefits.

California Public Employees' Pension Reform Act (PEPRA): On January 1, 2013, PEPRA changed the way CalPERS retirement and health benefits are applied and placed compensation limits on members. PEPRA employees share 50/50 in the normal cost of the defined benefit plan with t he City. Whereas the normal co st contribution for classic members (employees or CalPERS member s prior to 2013) was capped at 7% for miscellaneous members and 9% for safety me mbers, unless REOs agreed to pick up a portion of the employer’s cost. In response to The Great Recession our REOs agreed to 73 FY2023/24 Proposed Budget

pick up a portion of the employer’s normal cost (1% for miscellaneous members and 3% for safety members).

For PEPRA members the cost sharing of the normal cost as well as the benefit changes has resulted in a reduced financial burden for t he City. As Classic members continue to transition to retirement, PEPRA employees have become a larger portion of the City’s workforce. The graph below ill ustrates the increase in PEPR A employees over the past five years.

CalPERS Discount Rate (earnings assumption)
In July 2021, in accordance with the CalPER S Funding Risk Mitigation Policy (Policy) approved by the Board in 2015, the discount rate was lowered from 7.0% to 6.8% following a 21.3% FY2020/21 fiscal year retu rn. Under the Policy, when CalPERS achieves a double-digit return on investments, a reduction in the discount rate is triggered.

The combined impact of all these changes was an increase in employer rates. These increases in costs are included as part of the five-year forecast.

In November 2021, the CalPERS Board (B oard) adopted new act uarial assumptions based on the recommendations in the Nove mber 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rate s of salary increases, and inflation assumption for public agencies. These new assumptions are incorpor ated in this actuarial valuation and will impact the required contribution for FY2023/ 24. In addition, the Board adopted a new strategic asset allocation as part of its Asset Liability Managemen t process. The new asset allocation, along with the new capi tal market assumptions and economic assumptions, support a discount rate of 6.8% . This includes a reduction in the price inflation assumption from 2.5% to 2.3%.

General Liability, Auto Liability, and Workers’ Compensation Insurance The City contracts with Bickmore Risk Services (Bickmore) to develop an actuarial estimate which establishes the appropriate amount to budget for claim costs for the coming fiscal year as well as the program ’s liability for outstanding claims. Bickmore utilizes historical City loss data to forecast the upcoming fiscal year’s cost of claims and expenses and the City utilizes the actuar y’s forecast at the recommended 80% confidence level when budgeting for claim costs and expenses. This means that the calculated amounts should be suffici ent 80% of the time to co ver the fiscal year’s costs for the Workers’ Compensation (WC) and GL&AL Funds. Consistent with Council’s PERS
Type
Approved
FY2017/18
Approved
FY2018/19
Approved
FY2019/20
Approved
FY2020/21
Approved
FY2021/22
Approved
FY2022/23
Proposed
FY2023/24
Classic 76% 69% 67% 61% 56% 52% 37%
PEPRA 24% 31% 33% 39% 44% 48% 63%
74 FY2023/24 Proposed Budget

adopted policy to maintain this funding level, the General Fund contribution to the GL&AL Fund was increased from $29.03 million in FY2022/23 to $34.49 million or 17% in FY2023/24. Insurance premiums have been risi ng in recent years, primarily excess liability premiums, and public entities will continue to experience a difficult insurance market in FY2023/24. A deterioration in lo ss experience and fewer insurance carriers willing to write public entity business are driving a tightening insurance market. The City’s loss history, which has seen an increase in large liability losses since FY2011/12, is also adding to an increase in insurance premiu ms. Property insurance rates are now on the increase due to years of catastrophic events such as the wildfires in California.

The General Fund contribution to the Work ers’ Compensation Fund increased from $12.35 million in FY2022/23 to $12.91 million in FY2023/ 24 or 4%. The graph below details the general liability, auto liability and workers’ compensation cost allocations for the General Fund over the past five fiscal years.

Recent information from Public Risk Innov ation, Solutions, and Management (PRISM), the member directed risk sharing pool where the City currently purchases excess liability and workers’ compensation insurance, states that in recent years, public entities, and the insurance industry as a whol e, are witnessing dramatic increases in liability loss development. The increase in size and number of large liability claims continues to create difficult market conditions. The excess liabili ty insurance market for public entities continues to tighten nationwide driven by in creases in plaintiff demands, rising jury verdicts and liability settlements, and high inflation. For example, the frequency of claims of $1M or higher has more than doubled in the last five years. The annual growth rate in jury verdicts from 2010 to 2020 was 11%. Additionally, there are many recent jury verdicts or settlements against California public en tities more than $30M. The number of reinsurers writing public entity business in California had been reduced to about one third of what it was in 2015, resulting in fe wer options for excess insurance and higher premiums. Concerns regarding potential exposure to loss, that may have been less $31M
$37M
$42M $41M
$47M
$‐
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
FY20 FY21 FY22 FY23 FY24
Millions
Fiscal Year Ending
Insurance Cost Allocation for the General Fund
General Liability Auto Liability Workers' Compensation
75 FY2023/24 Proposed Budget

concerning until recently, will likely yield co verage restrictions, new exclusions, and/or reduction in limits.

Along with increasing liabilit y costs and premiums, pro perty and pollution markets continue to harden with higher premium costs due to increases in the number and size of natural disasters.

Measure U Programming and Forecast - $142 million
Voter approval of the City of Sacramento Essential Se rvices Protection Measure (Measure U) in November 2018 authorized the extension and expansion of the City’s Measure U Transaction and Use Tax from a half-cent to a full cent effective April 1, 2019, which can be used for any general government purpose. This one-cent tax is charged on each dollar of taxable sales of goods purchased from retailers within the City of Sacramento, and on the taxable storage, us e, or consumption of goods purchased outside of the City and delivered to a location within the City. Measure U is projected to generate approximately $135.1 million in revenues for FY2023/24.

The G/MU Funds were presented separately in prior fiscal year financial forecasts.

However, in FY2019/20, the Council directed staff to combine the two funds (G/MU) and present them in a single forecast. While the Measure U Fund is included in the G/MU five- year forecast, the following forecast is included to provide additional transparency and details on the revenue estimates and budget ed expenditures. The Measure U Fund is projecting a deficit at the end of FY2023/24 as the growth in expenditures for ongoing programs, especially labor costs and service and supplies, is higher than revenue growth.

As presented, the Measure U Fund provides $142 million for ongoing programs and services for Affordable Housing, Arts/C reative Edge, Climate Action, Community Investment, Community Response, Homele ssness, Inclusive Economic Development, Library, Public Safety, and Youth. Detailed information on each program is included in the department sections.

76 FY2023/24 Proposed Budget

FY2023/24 Measure U Programming

Revenues and Expenditures in ($ in 000s)
FY2023/24
FTE
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
REVENUES 135,124 135,330 140,219 144,812 149,115

EXPENDITURES
Affordable Housing
Operations 21.00 1,998 2,070 2,104 2,161 2,215 Multi-Year Operating Projects 1,200 1,200 1,200 1,200 1,200 Affordable Housing Subtotal 21.00 3,198 3,270 3,304 3,361 3,415 Arts/Creative Edge
Operations 22.95 4,585 4,675 4,733 4,810 4,886 Multi-Year Operating Projects 114 114 114 165 114 Arts/Creative Edge Subtotal 22.95 4,699 4,789 4,847 4,975 5,000 Climate A ction
Operations 2.00 357 367 373 382 390 Multi-Year Operating Projects 300 300 300 300 300 Climate Action Subtotal 2.00 657 667 673 682 690 Com m unity Investm ent
Operations 183.57 19,305 19,705 19,946 20,283 20,608 Multi-Year Operating Projects 7,103 6,136 7,587 6,739 6,909 Capital Improvements 2,700 2,700 2,700 2,700 2,700 Community Investment Subtotal 183.57 29,109 28,541 30,233 29,722 30,218 Community R
esponse
Operations 124.00 14,274 14,656 14,887 15,211 15,524 Multi-Year Operating Projects 10,192 10,402 10,333 10,373 10,529 Community Response Subtotal 124.00 24,466 25,058 25,219 25,583 26,053 Homelessness
Operations 6.00 924 950 967 990 1,012 Multi-Year Operating Projects 2,146 2,146 2,146 2,146 2,146 Homelessness Subtotal 6.00 3,070 3,096 3,113 3,136 3,158 Inclusive Economic Development
Operations 33.00 7,417 7,596 7,716 7,873 8,026 Multi-Year Operating Projects 750 750 750 750 750 Inclusive Economic Developm ent Subtotal 33.00 8,167 8,346 8,466 8,623 8,776 Library
Operations - 14,272 14,272 14,772 15,272 15,872 Multi-Year Operating Projects 400 400 400 400 400 Library Subtotal - 14,672 14,672 15,172 15,672 16,272 Public Safety
Com m unity Developm ent
Operations 15.00 1,814 1,863 1,895 1,938 1,979 Multi-Year Operating Projects 322 51 290 - 307 Com munity Developm ent Subtotal 15.00 2,135 1,914 2,185 1,938 2,287 Fire
Operations 18.00 10,
121 10,158 10,348 10,553 10,760 Fire Subtotal 18.00 10,121 10,158 10,348 10,553 10,760 Police
Operations 63.50 5,802 5,965 6,074 6,217 6,357 Police Subtotal 63.50 5,802 5,965 6,074 6,217 6,357 Youth Parks & Community Enrichment (YPCE)
Operations 13.00 1,640 1,688 1,718 1,759 1,798 Multi-Year Operating Projects 30 - - 161 78 YPCE Subtotal 13.00 1,670 1,688 1,718 1,920 1,876 Public Safety Subtotal 109.50 19,729 19,725 20,324 20,627 21,280 Youth
Operations 391.50 24,364 24,945 25,376 25,906 26,430 Multi-Year Operating Projects 5,799 5,845 5,786 5,312 4,947 Youth Subtotal 391.50 30,163 30,789 31,162 31,218 31,376 Miscellaneous
Operations - 4,186 4,485 4,818 5,187 5,598 Multi-Year Operating Projects 234 234 234 234 234 Miscellaneous Subtotal - 4,420 4,719 5,052 5,421 5,832 Total Expenditures 893.52 142,349 143,672 147,565 149,020 152,069 Economic Uncertainty Reserve (EUR) Contribution (0.5% of Expenses) 712 718 738 745 760 Net Resources (revenues less expenditures) (7,936) (9,061) (8,085) (4,953) (3,714) 77 FY2023/24 Proposed Budget

FY2023/24 Measure U Programming (continued)

Summary of Measure U Programs:

Affordable Housing – $3.2 million, 21.0 FTE
 Resources for Specific Plans, Long Range Planning, and Zoning services in the Community Development Department, and to the City Manager’s Office to focus on planning and zoning a citywide housing policy and opportunities to promote development of additional housing.

Arts/Creative Edge – $4.7 million, 22.95 FTE
 Resources for nonprofit arts and cultural organizations through the Cultural Arts Award Program and for City pr ograms that promote cult ural and creative life including the Arts Education and Outreac h office, City’s Film and Media, Arts and Culture, History, Crocker Art Museum, and Creative Economy and Grants.

Climate Action – $657,000, 2.00 FTE
 Resources for sustainability and cost -saving energy programs to reduce the City's greenhouse gas emissions as required by State law and staff for the City’s Climate Action Initiatives Office.

Community Investment - $29.1 million, 183.57 FTE
 Resources for the Sacramento History Museum, Utility Rate Assistance Program, Facility Reinvestment and Americans with Disabilities Act Compliance Programs as well as park operations, older adult services, golf administration, city cemetery, permitting and events, and fiscal & technological support for the Youth, Parks & Community Enrichment Department (YPCE).

Community Response - $24.5 million, 124.0 FTE
 Resources for the Department of Community Response to provide an alternative response to homelessness model through community outreach; and additional resources to address illegal dumping, neighborhood code compliance, public safety accountabi lity, animal care/shelter, and the Sacramento City 311 Call Center activity.

Homelessness - $3.0 million, 6.0 FTE
 Resources for the Department of Co mmunity Response to coordinate with various Federal, State, local, nonpr ofit, and faith-based entities to end homelessness.

Revenues and Expenditures in ($ in 000s)
FY2023/24
FTE
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
Other Sources/Uses
Beginning Available Fund Balance 485 - - - - Homeless Services
Schedule 9 MYOP Funding 11,368 11,414 11,460 11,507 11,555 Homeless Services Resources 19,833 - - - - Whole Person Care Savings 7,162 - - - - Current Year Savings/ARPA Scrub 2,922 - - - - Homeless Services Programming (42,373) (47,337) (47,451) (48,637) (49,853) Homeless Services Subtotal (1,088) (35,923) (35,991) (37,130) (38,298) Revised Forecast 893.52 (8,540) $ (44,984)$ (44,075)$ (42,083)$ (42,012)$ 78 FY2023/24 Proposed Budget

Inclusive Economic Development - $8.2 million, 33.0 FTE  Resources for Community Programs, and City department s that promote inclusive economic and community dev elopment such as Community Engagement, Community Investment, Economic Development, Office of Diversity and Equity, and Railyards and Riverfront.

Library - $14.7 million
 Resources for the support and maintenanc e of the City’s twelve libraries.

Public Safety - $19.7 million, 109.50 FTE
 Resources to staff and support the hiring pipeline in Police, Diversity Outreach Recruitment Program and fire suppression in the Fire Department, park safety services in YPCE, and animal enforcement and field services in the Community Development Department.

Youth - $30.2 million, 391.50 FTE
 Resources for programs such as the Fare Free Transit, Y outh Sports Field Permit, Youth Pop-Ups, Gang Prevention, Powerhouse Science Center, and Family and Youth Investm ents. Resources also incl ude the operation of the City’s aquatics, community centers, youth employment, youth enrichment, Camp Sacramento, Fairytale Town, Sacramento Zoo, and recreation programs.

Miscellaneous - $4.4 million
 Resources for the Digital Equity Pr ogram, commission stipends for various Commissions, expanded technology support, and Citywide employee services/benefits costs related to staffing funded by Measure U. 79 FY2023/24 Proposed Budget

Enterprise Funds
Enterprise Funds capture the financial activity of government facilities or services that are self-supporting through the fees associated with operating t hat service. Revenues and expenditures are expected to sustain operational needs, maintenance, and replacement of aging infrastructure, comp ly with regulatory mandates, and maintain the financial stability of the funds.

The following chart provides an overview of the proposed changes included in the FY2023/24 Budget for the Enterprise Funds:

Additional information on each of these initiatives can be found in the related department sections.

Operational descriptions and updat es of each of the City’s Enterprise Funds are shown on the following pages, including a five-year forecast for each fund. The following chart summarizes the status of the Enterprise Funds.

Department Description Fund
Net Budget
Change
FTE
Change
Convention and
Cultural Services
Increase funding to realign various positions
to better serve department operations,
continue contract services for the Old
Sacramento Historic District, and support
expansion of the Cultural Arts Awards grant
program.

Community
Center
593,327 (4.00)
Public Works Position move to the General fund to assist with Commercial Waste Complicance
objectives.

Solid Waste
and Recycling
(126,974) (1.00)
Public Works Increase expense and revenue budgets and
adjust various positions to align with the
Parking division operational needs.

Parking (961,179) (0.50)
Utilities Add, delete and realign positions to support
continued operations and maintenance and
the Department's expanded Capital
Improvement and Multi-Year Operating
Programs. Costs are being offset by
reductions to operations, increases to
reimbursements, and ratepayer revenues.

Storm
Drainage/
Wastewater/
Water
479,621 9.28
Total Change (15,205)$ 3.78
80 FY2023/24 Proposed Budget

Fund Status
Community
Center
The revenues collected for the Community Center Fund continue to show growth and are anticipated to exceed pre-pandemic levels in FY2023/24. The Transient Occupancy Tax (TOT) is projected to be 115% of FY2018/19 actual collections in FY2023/24 due to high demand for tourism, rising hotel prices, and an increase in the supply of available hotel rooms. The User Fees collected for events held at the SAFE Credit Union Convention and Performing Arts District are projected to be about 90% of FY2018/19 actual collections for FY2023/24.

Parking A rate increase is not included in the five-year forecast. Although revenue from parking fees collected at City garages continues to stabilize from severe declines during the pandemic, projected revenues for FY2022/23 are still only about 79% of FY2018/19 actual collections. Revenue recovery continues to steadily increase as the economy recovers and more events return downtown, which will increase the utilization of the garages. The General Fund provided one-time support of $633,000 in FY 2023/24 in order maintain a positive fund balance. The Parking Fund will continue to be monitored.

Solid Waste The approved three-year rate increase through FY2023/24 is included in the five -
year forecast. Organics collection and disposal have been implemented to comply with Senate Bill 1383. The new law targets a 50% reduction in the landfill of organic waste in 2023 and a 75% reduction by 2025.

Storm Drainage A rate increase is not included in the five-year forecast. The anticipated revenues and use of fund reserves will provide sufficient resources to continue operations and maintenance, as well as to ensure compliance with state and federal regulations. A Reserve Fund Policy was adopted by City Council on January 24, 2023 for Department of Utilities' (DOU) enterprise funds to ensure sufficient funding is available to meet its operating, capital, and debt service Storm Drainage
Property Fee
A rate increase is not included in the five-year forecast. This fund was established through a voter-approved ballot measure in April 2022 to support a Storm Drainage Capital Improvement Program and associated operating costs.

In June 2022, a lawsuit was filed against the City that challenges the constitutionality of the measure. DOU is currently collecting the new fee but is not spending the proceeds pending the outcome of the litigation.

Wastewater A rate increase is not included in the five-year forecast. The anticipated revenues will provide sufficient resources to continue critical infrastructure repair and rehabilitation, as well as to ensure compliance with state and federal regulations. A Reserve Fund Policy was adopted by City Council on January 24, 2023 for DOU's enterprise funds to ensure sufficient funding is available to meet its operating, capital, and debt service obligations.

Water A rate increase is not included in the five-year forecast. The anticipated revenues and reserves will provide sufficient resources to continue critical infrastructure repair and rehabilitation, as well as to ensure compliance with state and federal regulations. A Reserve Fund Policy was adopted by City Council on January 24, 2023 for DOU's enterprise funds to ensure sufficient funding is available to meet its operating, capital, and debt service obligations. 81 FY2023/24 Proposed Budget

PAGE INTENTIONALLY LEFT BLANK

82 FY2023/24 Proposed Budget

The following tables provide a snapshot of the five-year forecast for each of the Enterprise Funds. Additional information for each of t he forecasts can be found in the following pages.

($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 17,942 8,717 8,066 10,717 13,969 18,772 Revenue 35,370 42,897 47,780 50,849 52,266 53,658 Expenditures 44,482 43,298 44,879 47,347 47,213 48,573 Other Source/(Use) (113) (250) (250) (250) (250) (250) Ending Funding Balance 8,717 8,066 10,717 13,969 18,772 23,607 ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 3,817 2,209 368 (1,894) (3,439) (4,625) Revenue 15,608 16,418 17,284 18,104 18,965 19,187 Expenditures 18,102 18,258 19,546 19,649 20,151 19,476 Other Source/(Use) 886 - - - - - Ending Funding Balance 2,209 368 (1,894) (3,439) (4,625) (4,914) ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projectio
n
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 30,358 26,699 31,141 35,918 35,378 33,137 Revenue 86,857 93,473 97,695 98,602 99,517 100,439 Expenditures 91,507 89,031 92,919 99,142 101,758 105,818 Other Source/(Use) 991 - - - - - Ending Funding Balance 26,699 31,141 35,918 35,378 33,137 27,758 ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 32,228 21,509 22,329 21,758 19,982 17,281 Revenue 40,122 39,839 40,053 40,136 40,208 40,260 Expenditures 38,057 39,019 40,624 41,912 42,909 44,141 Other Source/(Use) (12,784) - - - - - Ending Funding Balance 21,509 22,329 21,758 19,982 17,281 13,400 ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projectio
n
Beginning Fund Balance - 3,051 1,744 2,235 2,965 3,959 Revenue 19,264 19,500 19,518 19,523 19,531 19,541 Expenditures 16,213 20,807 19,027 18,793 18,537 23,343 Other Source/(Use) - - - - - - Ending Funding Balance 3,051 1,744 2,235 2,965 3,959 157 ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 25,451 20,414 22,419 23,911 24,659 20,083 Revenue 44,537 44,015 44,562 44,701 44,833 44,874 Expenditures 39,714 42,423 43,071 43,953 49,409 45,369 Other Source/(Use) (9,860) 413 - - - - Ending Funding Balance 20,414 22,419 23,911 24,659 20,083 19,588 ($ in 000s)
F Y2022/23
Estimated
F Y2023/24
Proposed
F Y2024/25
Projection
F Y2025/26
Projection
F Y2026/27
Projection
F Y2027/28
Projection
Beginning Fund Balance 101,960 62,378 49,320 45,098 26,123 4,6 66 Revenue 138,130 136,798 138,004 138,305 138,466 138,519 Expenditures 143,074 149,857 142,225 157,281 159,923 157,946 Other Source/(Use) (34,638) - - - - 25,408 Ending Funding Balance 62,378 49,320 45,098 26,123 4,666 10,647 Water F und
Community Center Fund
Parking Fund
Solid Waste F und
Storm Drainage Fund
Storm Drainage Property Fee Fund
Wastewater F und
83 FY2023/24 Proposed Budget

Community Center Fund (6010)

The Community Center Fund supports t he operations, debt service, and capital improvements for the SAFE Credit Union Conv ention & Performing Arts District, which includes the SAFE Credit Union Convention C enter, SAFE Credit Union Performing Arts Center, and Memorial Auditorium . This fund also provides su pport to cultural partners and the General Fund. The oper ational and financial goals for the Community Center Fund include maintaining successful fina ncial performance as an enterprise fund, optimizing facility utilizatio n through aggressive marketing, exceeding industry standards for customer service and facility maintenance, stimulating hotel market demand to generate TOT revenues, and offering a premier venue to contribute to the economic vitality of the downtown and Sacramento region.

On September 25, 2018, Council authorized the issuance of TOT revenue bonds. A total of $285.2 million in TOT Revenue, Tax Exempt bond funding was received to help finance the Convention Center Complex Renovation Pr oject. Debt service payments for these new bonds started in May 2019.

Over three-fourths of fund revenue collected in the Community Center Fund is TOT. For FY2023/24, TOT is projected to be about 115% of FY2018/19 ac tual collections. This estimated growth is due to the continuation of all of the Performing Arts District facilities being opened to hold events for the full fiscal year, increases in room nights being booked in the Sacramento area, and higher average daily rates for hotel rooms.

Additionally, in 1997, to maintain the financia l integrity of the Co mmunity Center Fund, the City Council approved a loan of up to $12 million from the Risk Fund, if needed, to offset any year-end deficit. Total borrowing was $10.4 million, including interest.

Repayment of the interfund loan began in FY 2005/06 and has continued each year. An annual payment of $250,000 is budgeted in FY20 23/24 with payments continuing in future years. As of the beginning of FY 2022/23, there is a remaining balance of approximately $5.0 million.

84 FY2023/24 Proposed Budget

FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 17,942 8,717 8,066 10,717 13,969 18,772

REVENUES
TOT 27,499 33,958 38,057 40,960 42,188 43,378 Charges, Fees, and/or Services 6,905 7,924 8,708 8,850 9,009 9,172 Interest 66 115 115 139 169 208 Other (Facility Fee) 900 900 900 900 900 900 TOTAL REVENUES 35,370 42,897 47,780 50,849 52,266 53,658

EXPENDITURES
Operating - Employee Services 9,475 9,456 9,928 10,425 10,946 11,494 Operating - Other 11,504 12,743 13,457 14,333 15,172 16,034 Debt Service 19,221 19,219 19,219 19,218 19,220 19,220 Multi-Year Operating Projects - 500 500 696 500 500 Capital Improvements 4,282 1,380 1,775 2,675 1,375 1,325 TOTAL EXPENDITURES 44,482 43,298 44,879 47,347 47,213 48,573 ANNUAL SURPLUS/(DEFICIT) (9,112) (401) 2,901 3,50 2 5,053 5,085
Other Source/Use(1) (113) (250) (250) (250) (250) (250) ENDING FUND BALANCE 8,717 8,066 10,717 13,969 18,772 23,607 Community Center Fund (Fund 6010)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2022/23 include additions to fund balance for prior reduction related to outstanding short-term portion of debt liability, and removal of one-time General Fund support provided to the fund during FY2021/22 Midyear. 85 FY2023/24 Proposed Budget

Parking Fund (6004)

The City of Sacramento operat es 5 City-owned parking garages, 9 City-owned surface lots, and 30 garages and surface lots that are managed for private owners to increase parking availability for residents and visitors. The Parking Services Division also manages over 60,000 square feet of retail space servicing 19 tenants within the various City parking structures.

Parking Fund revenue decreased to 52% of pre-pandemic levels in FY2020/21 and is projected to recover to 76% of pre- pandemic levels in FY2022/23. Revenue for FY2023/24 from parking fees collected at City garages is projected to increase 5% as the operation continues to recover from the impacts of the pandemic, which lowered the utilization at City-owned parking garages as employers adopted hybrid work environments. The Parking Services Division anticipates an additional 5% annual recovery in parking fees through FY2026/27 and a modest growth in subsequent years.

There are no rate increases in this model . Programs that prom ote a hybrid work environment and more event parking will contribute to future growth. The parking system’s utilization is projected to recove r to 95% of pre-pandemi c revenue levels in FY2027/28, but hybrid work models and retent ion of staff may continue to impact revenues.

Administrative fee revenue reflects a budge ted increase of $455,000 in FY2023/24 for historic and anticipated revenue from the managed locations as well as system hosting services. Rental revenue is based on curr ent and anticipated leases of commercial spaces. A minimal increase is anticipated in FY2023/24 as businesses stabilize from the pandemic closures and the annual increases to base r ent are applied per the Tenant Protection Program framework (Resolution No. 2021-0226) through FY2024/25.

Services and supplies costs have a budgeted in crease in FY2023/24 of approximately $1.1 million. Operating cost s have increased 33% since FY2017/18 due to increased security, repair and maintenance, technical services, utilities, and rental of land and building costs. FY2022/23 includes a budgeted labor reduction of $1.2 million for known vacancies. This labor reduction is also reflected in FY2023/24. This is not included in out- years of the forecast, but futu re labor savings are anticipated due to employee turnover rates. The forecast includes a 2% increase annually for expenses in the out-years beginning in FY2023/24.

Operating transfers include cost plan support, the in-lieu franchise tax, the in lieu property tax, support to the Office of the Director, and a $5.3 million support transfer from the Meter Shop. Debt service is projected to decrease by about 2%. Funding anticipated technology upgrades and replacement or upgrades of current infrastructure is included in the CIP.

The General Fund provided one-time support of $5.1 million to the Parking Fund in FY2021/22 and additional one-time support of $633,000 during FY2022/23. This support has ensured the Parking Fund will remain po sitive in FY2023/24; however the Parking Fund is still projecting deficits in the five-year forecast through FY2027/28. The fund will be evaluated on an annual basis and additional General Fund subsidies may be required.

86 FY2023/24 Proposed Budget

Column1 FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 3,817 2,209 368 (1,894) (3,439) (4,625)

REVENUES
Parking Fees 14,053 14,492 15,217 15,977 16,776 16,944 Administrative Fees 729 879 879 879 879 879 Interest (Operating Funds) 171 300 330 347 364 371 Real Property Rental 655 746 858 901 946 993 TOTAL REVENUES 15,608 16,418 17,284 18,104 18,965 19,187

EXPENDITURES
Operating - Employee Services 4,345 4,583 5,928 6,076 6,228 6,384 Operating - Other 2,401 2,510 2,689 2,883 3,084 3,223 Debt Service 10,280 10,077 9,781 9,577 9,680 8,783 Multi-Year Operating Projects 271 321 383 348 394 321 Capital Improvements 805 768 765 765 765 765 TOTAL EXPENDITURES 18,102 18,258 19,546 19,649 20,151 19,476 ANNUAL SURPLUS/(DEFICIT) (2,494) (1,841) (2,262) (1,545) (1,186) (289)
Other Source/Use(1) 886 - - - - - ENDING FUND BALANCE 2,209 368 (1,894) (3,439) (4,625) (4,914) Parking Fund (Fund 6004)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability. 87 FY2023/24 Proposed Budget

PAGE INTENTIONALLY LEFT BLANK

88 FY2023/24 Proposed Budget

Solid Waste Fund (6007)

The revenues in the Solid Waste Fund are generated through user service fees collected for residential solid waste management services.

The Recycling and Solid Waste (RSW) Division manages the colle ction of garbage, containerized organics, and recyclables. In additi on to direct solid waste services, the Division provides on-going post-closure m onitoring of landfills, street sweeping, hazardous waste disposal services, and code enf orcement services. To meet the state- mandated waste diversion requi rements, RSW provides public outreach to educate residents on recycling standards to reduce c ontamination, encourage composting, and proper disposal of household hazardous waste.

The following chart provides a five-year fore cast for the Solid Waste Fund and includes the rate adjustments approved by Council through December 31, 2024.

Column1
FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 30,358 26,699 31,141 35,918 35,378 33,137

REVENUES
Charges, Fees, and/or Services 85,105 92,409 96,631 97,538 98,453 99,375 Interest 380 750 750 750 750 750 Other (Intergovernmental) 1,372 315 314 314 314 314 TOTAL REVENUES 86,857 93,473 97,695 98,602 99,517 100,439

EXPENDITURES
Operating - Employee Services 22,445 22,264 23,155 24,081 25,044 26,046 Operating - Other 50,169 54,035 56,164 58,390 60,728 63,183 Debt Service 1,677 1,677 1,674 1,667 1,667 1,668 Multi-Year Operating Projects 16,371 8,975 10,778 13,964 13,279 13,881 Capital Improvements 845 2,081 1,148 1,040 1,040 1,040 TOTAL EXPENDITURES 91,507 89,031 92,919 99,142 101,758 105,818 ANNUAL SURPLUS/(DEFICIT) (4,650) 4,442 4,776 (540) (2,241) (5,379) Other Source/Use
(1)
991 - - - - - ENDING FUND BALANCE 26,699 31,141 35,918 35,378 33,137 27,758 Solid Waste Fund (Fund 6007)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability. 89 FY2023/24 Proposed Budget

Storm Drainage Fund (6011)

Revenue generated for the purpose of providing storm drainage services under the 1996 drainage fee schedule is deposited in the Storm Drainage Fund. Revenues are primarily derived from customer service fees and interest. Storm Drainage Fund revenues support the cost of storm drainage oper ations for pumping stations, wet weather treatment and storage, collection system maintenance, related engin eering services, floodplain management, customer service and billing, education programs, water quality monitoring, innovative “green” infrastructure progr ams, and regulatory compliance. Fund expenditures are divided among operating costs, debt service, and mu lti-year operating projects.

Rate adjustments for the stor m drainage utility are subject to a citizen vote. The Storm Drainage Fund has not had an increase since 1996, prior to the implementation of Proposition 218. As a result, revenue collec tion has not kept pac e with storm drainage system costs, and the utility has been historically und erfunded. The City worked closely with the community, the Utilit ies Rate Advisory Commission, and the City Council to develop a new Storm Drainage Property Fee (Fund 6021) to support capital infrastructure and related operating costs. The fee is current ly being collected but due to litigation, the funds are currently on hold. The Storm Drainage Fund will cont inue to rely on reserves for existing operations and maintenance.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion No. 2023- 0028), which has been incorporated into the five -year forecast. Approval of the policy allowed the DOU to formalize existing guidelines and practices for better financial management of the DOU enterpr ise funds. The balance of the unrestricted operating reserve associated with the Storm Drai nage Fund represents a commitment of $12.2 million that is incorporated into the available fund balance calculation.

The Storm Drainage Fund faces significant challenges over the next five years. Key issues for the Storm Drainage Fund include the following:

 Declining fund reserves, as the exis ting revenue will not be sufficient to cover future operating expenses.
 Upgrading drainage service to areas outside the City’s Combined Sewer System (CSS) to meet citywide standards.
 Improving drainage system reliability and contributing to the combined wastewater system repair.
 Maintaining state and federal regulatory compliance, e.g. National Pollution Discharge Elimination System (NPDES), floodplain management, and regional flood control efforts.
 Implementing a new tree inventor y and maintenance plan trees on DOU facilities, including flood control channels and levees that will provide consistent tree care and maintenanc e and defend the city against tree- related risk claims and lawsuits.
 Increasing maintenance needs of drai nage facilities related to the cleanup of waste and debris caused by homeless encampments.
90 FY2023/24 Proposed Budget

 Maintaining life and safety measures for DOU employees and regulatory requirements by increasing the safety training monitoring and management of training and certifications.
 Implementing an asset management syst em that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
 Increasing costs related to carbon neutral sustainability goals for fleet and facilities.
 Expanding and improving Supervisi ng Control and Data Acquisition (SCADA) system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber-attacks, across all four funds.

The following chart provides a five-year foreca st that addresses some of the challenges facing the Storm Drainage Fund, anticipated cost increases, regulatory requirements, and assumes no rate adjustments.

Column1 FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 32,228 21,509 22,329 21,758 19,982 17,281

REVENUES
Charges, Fees, and/or Services 39,706 39,369 39,671 39,760 39,849 39,928 Interest 416 440 351 345 328 301 Other (Intergovernmental) - 30 31 31 31 31 TOTAL REVENUES 40,122 39,839 40,053 40,136 40,208 40,260

EXPENDITURES
Operating - Employee Services 17,774 18,893 19,460 19,849 20,246 20,651 Operating - Other 17,660 17,999 18,580 19,121 19,679 20,258 Debt Service 235 235 233 232 233 233 Multi-Year Operating Projects 2,388 1,885 2,351 2,710 2,751 2,999 Capital Improvements - 6 - - - - TOTAL EXPENDITURES 38,057 39,019 40,624 41,912 42,909 44,141 ANNUAL SURPLUS/(DEFICIT) 2,065 820 (571) (1,776) (2,701) (3,881) Other Fund Sources/Uses
(1) (12,784) - - - - - ENDING FUND BALANCE 21,509 22,329 21,758 19,982 17,281 13,400 Storm Drainage Fund (Fund 6011)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2022/23 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability, and the Operating Reserve calculation ($12.2 million) for the DOU Reserve Fund Policy adopted by City Council on January 24, 2023 (Motion No. 2023-0028). 91 FY2023/24 Proposed Budget

Storm Drainage Property Fee Fund (Fund 6021)

Revenue generated for the purpose of providing storm drainage services under the 2022 drainage fee schedule is deposited in the Storm Drainage Property Fee Fund. Revenues are derived from customer fees and interest earnings. Services include costs associated with capital programs such as rehabilitation and replacem ent, regulatory, master planning, asset management, and improvement programs. These varying programs will:
repair aging and deteriorating storm drainage pipelines and infrastructure; keep pollution, trash, and debris out of loca l water sources; reduce long- term costs; and protect water supplies and infrastructure against floods and emergencies. Fund expenditures are summarized and reflected as operating costs, capital improvement costs, and multi-year operating project costs.

Rate adjustments for the stor m drainage utility are subject to a citizen vote. Storm drainage rates have not been increased since 1996, prior to the implementation of Proposition 218. As a result, revenues have not kept pace with storm drainage system costs and the Storm Drainage Fund (Fund 6011) c annot support a capital program. The City worked closely with the community, the Utilities Rate Advisory Commission, and the City Council to develop a new Storm Drainage Property Fee that was adopted by the City Council in April 2022. The new fee will su pport a capital improvement program and associated operating costs.

In June 2022, a lawsuit was filed against the City that challenges the constitutionality of the measure. The DOU is currently collecting the new fee but is not spending the proceeds pending the outcome of the litigation.

While the new fee will help address some level of capital replacement and regulatory requirements, it will not provide sufficient resources to fund all storm drainage aging infrastructure or regulatory needs. T he Storm Drainage Property Fee Fund faces significant challenges over the next five y ears. Key issues for the Fund include the following:

 Ongoing replacement of aging infrastr ucture to meet state and federal standards.
 Upgrading drainage service to areas outside the City’s CSS to meet citywide standards.
 Improving drainage system reliability and contributing to the CSS repair and rehabilitation or replacement.
 Design and construction of certified full trash capture devices and/or multi- benefit low impact development features that will prevent trash greater than 5 mm from being discharged to waterways for identified areas (high density residential, commercial, industrial, and mixed use) with litter to meet the requirements of the State Water Re sources Control Board’s Statewide Trash Provisions.
 Maintaining state and federal regulat ory compliance, e.g., NPDES, and supporting regional flood control efforts.
92 FY2023/24 Proposed Budget

 Implementing an asset management syst em that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
 Continued implementation of the Drainage Master Plan Program that develops hydrologic and hydraulic models and completes master plans for the City's 135 drainage basins.
 Improving the Drainage and Comb ined System to adequately handle intensity of weather events related to climate change.
 Expanding and improving SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber-attacks, across all four funds.

The following chart provides a five-year foreca st that addresses some of the challenges facing the Storm Drainage Property Fee Fund, anticipated cost increases, meets regulatory requirements, and assumes no rate adjustments.

Column1 FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE - 3,050 1,743 2,234 2,964 3,958

REVENUES
Charges, Fees, and/or Services 19,264 19,500 19,500 19,500 19,500 19,500 Interest - - 18 23 31 41 Other (Intergovernmental) - - - - - - TOTAL REVENUES 19,264 19,500 19,518 19,523 19,531 19,541

EXPENDITURES
Operating - Employee Services - - - - - - Operating - Other 3,647 3,712 3,660 3,700 3,741 3,784 Debt Service - - - - - - Multi-Year Operating Projects 1,250 1,700 1,250 826 472 460 Capital Improvements 11,316 15,395 14,117 14,267 14,324 19,099 TOTAL EXPENDITURES 16,213 20,807 19,027 18,793 18,537 23,343 ANNUAL SURPLUS/(DEFICIT) 3,050 (1,307) 491 730 994 (3,802) Other Fund Sources/Uses - - - - - -
ENDING FUND BALANCE 3,050 1,743 2,234 2,964 3,958 156 Storm Drainage Property Fee Fund (Fund 6021)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
93 FY2023/24 Proposed Budget

Wastewater Fund (Fund 6006)

Revenue generated to provi de wastewater collection services is deposited in the Wastewater Fund. Revenues are derived from customer service fees, recovery of Sacramento Regional County Sanitation District (SRCSD)-related operation and maintenance costs paid by the fund, inte rest earnings, and connection charges.

Wastewater Fund revenues cover the cost of wastewater collection and maintenance, storage and treatment of wet weather combi ned sewage, installation of new services, operation of sanitary pumping stations, re lated engineering services, customer service and billing, education pr ograms, water quality monitoring, regulatory compliance. Fund expenditures are generally divided among operating costs, debt service, capital improvement, and multi-year operating projects.

The City-operated wastew ater collection system consists of a combined wastewater system and a separated wastewat er system that, together, se rve approximately 60% of the city, primarily the northeastern, central, and southern sections of the city. The SRCSD serves the other areas of the city. While the City is responsib le for the limited treatment of its combined wastewater, it partners with SRCSD to treat the majority of the city’s wastewater. The City provides SRCSD with billing and collect ion services for properties within the service area in which wastewater collection is provided by the City.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion No. 2023- 0028), which has been incorporated into the five -year forecast. Approval of the policy allowed DOU to formalize existing guide lines and practices for better financial management of the DOU enterpr ise funds. The balance of the unrestricted operating ($10.3 million) and capital ($2. 2 million) reserves associat ed with the Wastewater Fund represents a commitment incorporated into the available fund balance calculation.

While prior rate adjustments have helped addr ess operational costs and some level of capital replacement, they have not provided sufficient resources to fund major capital replacement projects. The Wastewater Fund presents unique challenges due to the system’s growth potential and the age and nature of the system ’s infrastructure, which includes:

 Compliance with state and federal regul ations, (e.g., NPDES, including state-mandated rehabilitation of t he central city. The CSS collects wastewater from homes and businesses, as well as stormwater and urban runoff.
 Continued rehabilitation of the City’ s separated wastewater service area. A separated wastewater system colle cts wastewater from homes and businesses and does not collect stormwater.
 Incorporating the growth of new wa stewater services and the increasing costs for repair and reconstruction of the aging system.  Maintaining the financial strength of the fund for the purpose of raising sufficient capital to finance the rehabilitation of the CSS. 94 FY2023/24 Proposed Budget

 Maintaining life and safety measures for DOU employees and regulatory requirements by increasing the safety training monitoring and management of training and certifications.
 Implementing a new tree inventor y and maintenance plan trees on DOU facilities that will provide consistent tree care and maintenance; and defend the city against tree-related risk claims and lawsuits.  Implementing an asset management syst em that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
 Expanding and improving SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber-attacks, across all four funds.

The following chart provides a five-year foreca st that addresses some of the challenges facing the Wastewater Fund, anticipated cost increases, meets regulatory requirements, and assumes no rate adjustments.

Column1 FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 25,451 20,414 22,419 23,911 24,659 20,083

REVENUES
Charges, Fees, and/or Services 43,209 42,535 43,135 43,259 43,384 43,470 Interest 328 430 361 376 383 338 Other (Intergovernmental) 1,000 1,050 1,066 1,066 1,066 1,066 TOTAL REVENUES 44,537 44,015 44,562 44,701 44,833 44,874

EXPENDITURES
Operating - Employee Services 12,467 12,998 13,388 13,656 13,929 14,208 Operating - Other 17,917 19,518 20,009 20,434 20,870 21,314 Debt Service 3,908 3,911 3,910 3,913 3,911 3,909 Multi-Year Operating Projects 2,862 3,112 3,336 3,522 3,833 3,947 Capital Improvements 2,560 2,883 2,428 2,428 6,866 1,991 TOTAL EXPENDITURES 39,714 42,423 43,071 43,953 49,409 45,369 ANNUAL SURPLUS/(DEFICIT) 4,823 1,593 1,491 748 (4,576) (495) Other Fund Sources/Uses
(1) (9,860) 413 - - - - ENDING FUND BALANCE 20,414 22,419 23,911 24,659 20,083 19,588 Wastewater Fund (Fund 6006)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other Sources in FY2022/23 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability, and includes the Operating ($10.3M) and Capital ($2.2M) Reserves calculation for the DOU Reserve Fund Policy adopted by City Council on 1/24/2023, Motion No. 2023-0028. Other Sources in FY2023/24 include release of debt reserve for final payment of FY2012/13 Wastewater Bonds. 95 FY2023/24 Proposed Budget

Water Fund (Fund 6005)

Revenue generated to provide water services is deposited in the Water Fund. Revenues are derived from customer f ees, interest earnings, devel opment fees, tap sales, and reimbursements from other en tities for services provided. Water Fund revenues are structured to cover the costs of providing water services to customers. Services include water treatment, plant maintenance, water distribution system repair and maintenance, water conservation and education programs, water quality monitoring, related engineering services, customer service and billing, and the City-County Office of Metropolitan Water Planning. Fund expenditures are summarized and reflected as operating costs, debt service, capital improvement costs, and multi-year operating project costs.

The City Council passed the DOU Reserve Policy on January 24, 2023 (Motion No. 2023- 0028), which has been incorporated into the five -year forecast. Approval of the policy allowed DOU to formalize existing guidelin es and practices for better financial management of the DOU enterprise funds. The balance of the unrestricted operating ($26 million) and capital ($25.8 million) reserves associated with the Water Fund represents a commitment incorporated into the available fund balance calculation.

While prior rate adjustments have helped addr ess operational costs, the accelerated water meter program implementation, and some level of capital replacement, they have not provided sufficient resources to fund majo r capital replacement projects. The Water Fund faces significant challenges over the next five years. Key issues for the Water Fund include the following:

 Ongoing replacement and maintenance of aging infrastructure to provide safe and reliable drinking water to the community and meet state and federal standards.
 Continued implementation and monitoring of an aggressive water conservation program 1) consistent with meeting past state-wide water efficiency mandates and 2) responsive to new legislation establishing a framework for long-term improvements in urban water use efficiency and drought planning as California adapts to climate change.  Supporting regional, long-te rm water supply planning.  Developing wholesale and wheeling agr eements in support of effective regional water management.
 Meeting future debt service require ments related to rehabilitating and improving intake structures and treatment plants.
 Maintaining life and safety measures for DOU employees and regulatory requirements by increasing the safety training monitoring and management of training and certifications.
 Implementing an asset management syst em that will provide accurate reporting for operating, maintaining, and replacing infrastructure at appropriate lifecycle intervals.
96 FY2023/24 Proposed Budget

 Implementing a new tree inventory and maintenance plan for trees on DOU facilities that will provide consistent tree care and maintenance; and defend the city against tree-related risk claims and lawsuits.  Increasing costs for items vital to co llecting, treating, and delivering water to meet service levels. The most significant cost increases are for chemicals, utilities, and replacement and maintenance of water meters.  Expanding and improving SCADA system security program to meet regulatory compliance and to mitigate risk from escalating threats related to cyber-attacks, across all four funds.
 Maintaining state and federal regulatory compliance.

The following chart provides a five-year foreca st that addresses some of the challenges facing the Water Fund, anticipated cost incr eases, meets regulatory requirements, and assumes no rate adjustments.

Column1 FY2022/23
Estimated
FY2023/24
Proposed
FY2024/25
Projection
FY2025/26
Projection
FY2026/27
Projection
FY2027/28
Projection
BEGINNING FUND BALANCE 101,960 62,377 49,319 45,097 26,122 4,665

REVENUES
Charges, Fees, and/or Services 131,722 135,718 136,665 137,010 137,359 137,626 Interest 1,315 865 1,120 1,077 888 673 Other (Intergovernmental)
(1) 5,092 215 219 219 219 219 TOTAL REVENUES 138,129 136,798 138,004 138,305 138,466 138,519

EXPENDITURES
Operating - Employee Services 42,817 48,753 50,216 51,220 52,244 53,289 Operating - Other 34,918 35,930 36,604 37,118 37,644 38,174 Debt Service 34,686 36,016 33,144 35,996 35,984 35,977 Multi-Year Operating Projects 4,501 3,474 4,258 4,946 5,210 5,098 Capital Improvements 26,152 25,684 18,003 28,001 28,841 25,408 TOTAL EXPENDITURES 143,074 149,857 142,225 157,281 159,923 157,946 ANNUAL SURPLUS/(DEFICIT) (4,945) (13,058) (4,221) (18,975) (21,457) (19,427) Other Sources/Uses(2) (34,637) - - - - 25,408 .

ENDING FUND BALANCE 62,377 49,319 45,097 26,122 4,665 10,646 Water Fund (Fund 6005)
Revenue and Expenditure Five-Year Forecast
Dollars in Thousands
(1) Other (Intergovernmental) revenues in FY2022/23 include the 2022 Ground Water Transfer Program (GWTP) revenue of $4.5M. The GWTP is dependent on hydrology and subsequent influence on water markets and cannot be projected. (2) Other Sources in FY2022/23 include additions to fund balance for prior reductions related to outstanding short-term portion of debt liability and includes the Operating ($26.0M) and Capital ($25.7M) Reserves calculation for the DOU Reserve Fund Policy adopted by City Council on 1/24/2023, Motion No. 2023-0028. Other Fund Sources/Uses in FY2027/28 includes the use of the capital reserve to fund the FY2027/28 CIP. 97 FY2023/24 Proposed Budget

98 FY2023/24 Proposed Budget

6 SECTION - 6
Budget Schedules
99 FY2023/24 Proposed Budget

100
FY2023/24 Proposed Budget

Schedule 1A
Current Operations – Appropriations by Fund (in 000s)

Change
F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Governmental Funds 496,164 626,033 723,702 719,118 757,124 38,006 General Fund $ 495,650 $ 541,052 $ 580,939 $ 577,074 $ 617,475 $ 40,401 Measure U 515 84,981 142,764 142,044 139,649 (2,395)
Subtotal Governmental Funds 496,164 626,033 723,702 719,118 757,124 38,006 E nterprise F unds 273,980 277,499 350,316 333,410 354,496 21,086 Community Center 36,734 29,959 38,984 38,984 41,918 2,934 Parking 11,771 11,091 16,426 16,426 17,491 1,065
Solid Waste 57,475 63,960 92,659 78,214 86,950 8,736
Storm Drainage 32,610 33,306 38,706 38,072 39,013 941
Storm Drainage Property Fee - - 4,897 4,897 5,412 515
Wastew ater 31,750 32,552 38,098 36,593 39,539 2,946
Water 103,641 106,630 120,545 120,224 124,173 3,949
Subtotal Enterprise Funds 273,980 277,499 350,316 333,410 354,496 21,086 Internal Service Funds 93,343 98,540 121,585 124,951 122,371 (2,580) Fleet Management 46,123 42,795 66,883 70,359 62,032 (8,327) Risk Management 47,220 55,745 54,702 54,592 60,339 5,747 Subtotal Internal Service Funds 93,343 98,540 121,585 124,951 122,371 (2,580) Other Governmental Funds 114,081 20,336 121,829 118,054 126,775 8,721 4th R Program 581 5,935 3,125 3,125 5,406 2,281
ARPA Reinvestment - (112,313) 4,253 4,253 3,889 (363)
Assessment Reg and SDRIS 3 4 - - - -
C a l E P A 3---- -
CIP Reimbursable 56 23 - - - -
Citation I-5 Maintenance 34 47 40 40 40 -
Cityw ide Low Income Housing 2,453 2,791 3,100 3,100 2,390 (710) Cultural Services - Other 233 74 149 94 149 55
Debt Service Funds 8,042 4,140 10,832 10,832 10,691 (141) Development Services 423 313 2,266 2,266 2,266 -
Dow ntow n Impact Fee - - 25 25 100 75
Dow ntow n Management District 3,438 3,773 3,808 3,808 3,998 190 Externally Funded Programs 123 26 19 19 - (19)
Fairytale Tow n 76 103 50 50 50 -
Gas Tax 5,750 7,638 9,054 6,283 7,297 1,014
Golf 1,148 366 337 337 328 (9)
Greenbriar Impact Fee 38 32 - - - -
Innovation and Grow th 20,743 12,121 8,424 8,424 10,669 2,245 Jacinto Creek 58 25 - - - -
Land Park 167 144 172 122 122 -
Library Services Parcel Tax 8,446 8,777 9,271 9,271 9,642 372 Landscaping and Lighting 17,236 17,422 19,443 18,580 20,088 1,509 Marina 1,920 2,246 2,166 2,166 2,248 81
Measure A Maintenance 13,016 10,494 16,676 16,676 19,231 2,555 Museum of History, Science, & Tech 307 - - - - -
North Natomas Financing Plan 9,164 11,822 2,429 2,429 2,008 (421) Operating Grants 51 149 - - - -
Other 325 112 87 87 110 23
Park Development 184 1,638 442 442 442 -
Private Development 97 677 - - - -
101
FY2023/24 Proposed Budget

Schedule 1A (continued)
Current Operations – Appropriations by Fund (in 000s)

Change
F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Other Governmental Funds (continued)
Quimby Act 10 5 10 10 10 -
Railyards Impact Fee 1,369 11,666 - - 50 50
Redevelopment Bond Funds - - 9 9 9 -
River District I m pact Fee - - 25 25 25 -
Sheraton MOPA Project 149 107 - - - -
SHRA CDBG - - 29 29 29 -
So Natomas Comm Improv 2 9 - - - -
So Natomas Facility Benefit 23 16 - - - -
Special Districts 19,860 23,148 22,373 22,373 23,221 848 Special Districts - Capital (3,928) 2,203 - - - -
Special Program Donations - - 250 250 250 -
START 425 853 1,140 1,140 383 (757)
State Route 160 1 - - - - -
State Route 275 2 - - - - -
65th Street Area Impact Fee 5 - - - - -
Transportation Development Impact Fee 59 81 - - - -
Traffic Safety 412 253 350 350 350 -
Greenbriar Traffic Congestion 5 - - - - -
NMA Safety, Streets, Ped, Bic - - 7 7 6 (1)
Wastew ater Development Fees - 1,631 - - - -
Water Planning 1,368 1,682 1,417 1,382 1,226 (156)
Willow creek Fee District 130 - - - - -
Zoo 74 101 50 50 50 -
Subtotal Other Governmental Funds 114,081 20,336 121,829 118,054 126,775 8,721 Total $ 977,569 $ 1,022,407 $ 1,317,432 $ 1,295,533 $ 1,360,766 $ 65,233 102
FY2023/24 Proposed Budget

Schedule 1B
Current Operations – Appropriations by Department (in 000s)

Change
F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Mayor Offices 6,404,766 7,201,907 7,532,174 9,406,715 8,087,498 (1,319,217) Mayor/Council $ 6,405 $ 7,202 $ 7,532 $ 9,407 $ 8,087 $ (1,319) Subtotal Mayor Offices 6,405 7,202 7,532 9,407 8,087 (1,319) Charter Offices 25,659 30,643 44,347 44,705 47,251 2,547 City Attorney 9,994 11,549 11,945 12,107 12,982 876
City Auditor 1,369 1,706 1,714 1,714 1,847 133
City Clerk 2,627 3,150 3,794 3,834 3,839 5
City Manager 9,318 11,895 24,052 24,208 25,646 1,438
City Treasurer 2,350 2,344 2,842 2,842 2,937 95
Subtotal Charter Offices 25,659 30,643 44,347 44,705 47,251 2,547 Ope rating Office s 757,570 790,649 1,055,592 1,031,358 1,087,186 55,828 Community Development 36,047 40,340 52,713 52,567 53,802 1,235 Community Response - 2,977 25,037 25,037 16,825 (8,212) Convention and Cultural Services 14,003 21,314 24,254 24,005 27,859 3,854 Finance 11,000 11,804 14,005 14,005 14,412 406
Fire 143,477 130,624 173,335 172,440 191,702 19,263
Human Resources 51,466 60,628 60,727 60,585 66,484 5,899 Information Technology 23,217 25,801 29,454 29,454 32,750 3,296 Police 157,864 146,319 224,651 219,688 228,165 8,477
Public Works 156,914 160,388 228,354 213,817 221,790 7,973 Utilities 130,942 135,295 165,254 162,794 169,810 7,017 Youth, Parks, and Community Enrichment 32,639 55,157 57,807 56,965 63,587 6,622 Subtotal Operating Offices 757,570 790,649 1,055,592 1,031,358 1,087,186 55,828 Othe r Office s 187,935 193,913 209,961 210,064 218,241 8,177 Cityw ide and Community Support 95,759 96,965 131,608 131,711 137,670 5,959 Debt Service 116,164 101,319 104,838 104,838 105,714 876 Non-Appropriated (23,988) (4,371) (26,485) (26,485) (25,143) 1,342 Subtotal Other Offices 187,935 193,913 209,961 210,064 218,241 8,177 Total $ 977,569 $ 1,022,407 $ 1,317,432 $ 1,295,533 $ 1,360,766 $ 65,233 103
FY2023/24 Proposed Budget

Schedule 1C
Staffing by Department (in Full-time Equivalents)

Change
F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended Mayor Offices 37.00 37.00 37.00 40.00 40.00 -
Mayor/Council 37.00 37.00 37.00 40.00 40.00 -
Subtotal Mayor Offices 37.00 37.00 37.00 40.00 40.00 -
Charter Offices 189.00 183.00 180.00 180.00 183.00 3.00 City Auditor 10.00 10.00 10.00 10.00 10.00 -
City Manager 87.00 73.00 70.00 70.00 73.00 3.00
City Attorney 59.00 62.00 62.00 62.00 62.00 -
City Clerk 19.00 24.00 24.00 24.00 24.00 -
City Treasurer 14.00 14.00 14.00 14.00 14.00 -
Subtotal Charter Offices 189.00 183.00 180.00 180.00 183.00 3.00 Ope rating Office s 4,635.75 4,730.73 4,768.44 4,790.14 4,845.30 55.16 Finance 91.00 92.00 93.90 93.90 95.90 2.00
Information Technology 198.50 200.50 201.50 202.50 207.50 5.00 Human Resources 80.00 79.00 83.00 83.00 83.00 -
Police 1,097.96 1,126.96 1,128.96 1,128.96 1,134.16 5.20 Fire 712.50 717.50 729.50 729.50 760.50 31.00
Utilities 569.90 571.90 572.90 572.90 582.18 9.28
Public Works 747.35 751.15 766.15 766.15 765.65 0.50
Convention and Cultural Services 123.50 123.50 123.00 123.00 119.00 4.00 Youth, Parks, and Community Enrichment 724.54 720.22 716.53 737.23 741.41 4.18 Community Development 290.50 308.00 315.00 315.00 319.00 4.00 Community Response - 40.00 38.00 38.00 37.00 1.00
Subtotal Operating Offices 4,635.75 4,730.73 4,768.44 4,790.14 4,845.30 55.16 Othe r Office s 7.00 7.00 7.00 7.00 6.00 1.00
Cityw ide and Community Support 7.00 7.00 7.00 7.00 6.00 1.00 Subtotal Other Offices 7.00 7.00 7.00 7.00 6.00 1.00
Total 4,868.75 4,957.73 4,992.44 5,017.14 5,074.30 57.16 104
FY2023/24 Proposed Budget

Schedule 1D
Staffing by Fund (in Full-Time Equivalents)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Actuals Actuals Approved Amended Proposed Proposed/Amended M ayor/Council 37.00 32.00 32.00 35.00 35.00 -
City Auditor 10.00 10.00 10.00 10.00 10.00 -
City M anager 85.00 28.00 28.00 29.00 30.00 1.00
City Attorney 59.00 62.00 62.00 62.00 62.00 -
City Clerk 19.00 24.00 24.00 24.00 24.00 -
City Treasurer 14.00 14.00 14.00 14.00 14.00 -
Finance 91.00 92.00 93.90 93.90 95.90 2.00
Information Technology 198.50 200.50 201.50 202.50 207.50 5.00 Human Resources 44.00 43.00 44.00 44.00 44.00 -
Police 1,097.96 1,063.46 1,063.46 1,063.46 1,067.66 4.20 Fire 712.50 710.50 711.50 711.50 742.50 31.00
Public Works 425.00 429.00 431.00 431.00 433.00 2.00
Convention and Cultural Services 26.20 5.00 5.00 5.00 - (5.00) Youth, Parks, and Community Enrichment 573.95 12.00 12.00 12.00 14.00 2.00 Community Development 290.50 191.00 196.00 196.00 197.00 1.00 Citywide and Community Support 1.00 1.00 1.00 1.00 - (1.00) Subtotal General Fund 3,684.61 2,917.46 2,929.36 2,934.36 2,976.56 42.20 M ayor/Council - 5.00 5.00 5.00 5.00 -
City M anager - 43.00 40.00 39.00 39.00 -
Human Resources - - 3.00 3.00 3.00 -
Police - 63.50 65.50 65.50 66.50 1.00
Fire - 7.00 18.00 18.00 18.00 -
Convention and Cultural Services - 21.20 19.95 19.95 24.95 5.00 Youth, Parks, and Community Enrichment - 558.88 555.19 575.89 578.07 2.18 Community Development - 117.00 119.00 119.00 122.00 3.00 Community Response - 40.00 38.00 38.00 37.00 (1.00)
Subtotal M easure U Fund - 855.58 863.64 883.34 893.52 10.18 3,684.61 3,773.04 3,793.00 3,817.70 3,870.08 52.38

97.30 97.30 98.05 98.05 94.05 (4.00)
Convention and Cultural Services 97.30 97.30 98.05 98.05 94.05 (4.00)

61.25 61.25 61.25 61.25 60.75 (0.50)
Public Works 61.25 61.25 61.25 61.25 60.75 (0.50)
171.30 171.30 184.30 184.30 183.30 (1.00)
Public Works 171.30 171.30 184.30 184.30 183.30 (1.00)
123.18 123.18 125.36 125.36 130.00 4.64
Utilities 123.18 123.18 125.36 125.36 130.00 4.64

94.36 94.36 94.18 94.18 94.00 (0.18)
Utilities 94.36 94.36 94.18 94.18 94.00 (0.18)
352.36 354.36 353.36 353.36 358.18 4.82
Utilities 352.36 354.36 353.36 353.36 358.18 4.82
899.75 901.75 916.50 916.50 920.28 3.78
Par ki n g
Solid Waste
Storm Drainage
Wastewater
Water
Subtotal Enterprise Funds
Governmental Funds
General
M easure U
Subtotal Governmental Funds
Enterprise Funds
Community Center
105
FY2023/24 Proposed Budget

Schedule 1D (continued)
Staffing by Fund (in Full-Time Equivalents)

106
FY2023/24 Proposed Budget

Schedule 1E
Current Operations – Staffing and Appropriations by Department (in 000s)

Total
FY2023/24 FY2023/24 Operating
Total FTE Ope rating MYOP * Budge t
Mayor Offices 40 8,082,548 4,950 8,087,498
Mayor/Council 40.00 $ 8,083 $ 5 $ 8,087 Subtotal Mayor Offices 40.00 8,083 5 8,087
Charter Offices 183.00 36,759 10,492 47,251
City Auditor 10.00 1,847 - 1,847
City Manager 73.00 15,157 10,489 25,646
City Attorney 62.00 12,982 - 12,982
City Clerk 24.00 3,837 2 3,839
City Treasurer 14.00 2,936 1 2,937
Subtotal Charter Offices 183.00 36,759 10,492 47,251
Ope rating Office s 4,845.30 1,029,292 57,894 1,087,186 Finance 95.90 13,662 750 14,412
Information Technology 207.50 32,290 460 32,750
Human Resources 83.00 66,248 236 66,484
Police 1,134.16 217,876 10,289 228,165
Fire 760.50 190,038 1,665 191,702
Utilities 582.18 159,639 10,171 169,810
Public Works 765.65 206,819 14,970 221,790
Convention and Cultural Services 119.00 26,245 1,614 27,859 Youth, Parks, and Community 741.41 61,446 2,140 63,587
Community Development 319.00 49,571 4,231 53,802
Community Response 37.00 5,457 11,368 16,825
Subtotal Operating Offices 4,845.30 1,029,292 57,894 1,087,186 Other Offices 6.00 197,759 20,483 218,241
Debt Service - 105,714 - 105,714
Cityw ide and Community Support 6.00 117,188 20,483 137,670 Non-Appropriated - (25,143) - (25,143)
Subtotal Other Offices 6.00 197,759 20,483 218,241
Total 5,074.30 $ 1,271,892 $ 88,874 $ 1,360,766 *See schedule 9 for Multi-Year Operating Projects (MYOPs) included in the Department Budget charts. 107
FY2023/24 Proposed Budget

Schedule 2A
Summary of Revenues, Appropriations, & Changes in Fund Balance (in 000s)

Governmental** E nterprise
Internal
Service Other Gov't Gross N et*
Funds Funds Funds Funds Total Total
Current Resources
Revenues 771,859 392,941 123,529 146,235 1,434,564 1,311,035 Taxes $593,737 $33,954 - $31,828 $659,520 $659,520
Licenses and Permits 34,683 110 - 5,640 40,433 40,433
Penalties 7,273 3 - 350 7,626 7,626
Concessions 1,854 4,406 1,949 8,690 16,900 14,951
Intergovernmental 18,754 2,853 - 32,010 53,616 53,616
Charges, Fees, and Services 71,180 350,708 9,698 67,375 498,960 489,263 Contributions from Other Funds 42,469 - - - 42,469 42,469 Miscellaneous Revenue 1,908 906 111,882 343 115,039 3,157 Total Current Resources 771,859 392,941 123,529 146,235 1,434,564 1,311,035 Current Requirements
Current Operations
Employee Services 634,759 115,689 14,466 4,311 769,226 754,760 Other Services and Supplies 172,895 94,596 74,007 34,158 375,656 301,649 City Property 2,932 2,336 28,320 217 33,805 5,485
Multi-Year Operating Projects 49,210 19,967 284 19,414 88,874 88,591 City Debt Service 16,951 71,135 46 17,582 105,714 105,668 Transfers (2,237) 1,720 180 337 - (180)
Labor and Supply Offset (124,956) 14,353 5,068 51,736 (53,798) (58,866) Contingency 2,000 - - (180) 1,820 1,820
Operating Transfers 5,570 34,700 - (801) 39,469 39,469
Subtotal Current Operations 757,124 354,496 122,371 126,775 1,360,766 1,238,395 Capital Improvements 14,167 48,197 202 44,754 107,320 107,118 Total Current Requirements 771,291 402,693 122,573 171,529 1,468,086 1,345,513 Other Fund Sources (Uses) (200) 163 (1,231) 10,487 9,219 10,450 Total Surplus (Deficit) 368 (9,590) (275) (14,807) (24,304) (24,028) Beginning Fund Balance 731 144,975 573 195,662 341,941 341,368 E nding Fund Balance $1,100 $ 135,385 $298 $180,855 $317,638 $317,340 * Net Total excludes Internal Service Funds (ISF).
** Governmental Funds reflect General and Measure U Funds combined. 108
FY2023/24 Proposed Budget

Schedule 2B
Detail of Revenues, Appropriations, and Changes in Fund Balance (in 000s)

Re s our ce s
Other
Total Current Sources Surplus /
R evenues Operations CIP Total (U ses) (D eficit) B eginning E nding Governmental Funds
General Fund $636,734 $617,475 $11,467 $628,942 $1,600 $9,393 $247 $9,639 Measure U 135,124 139,649 2,700 142,349 (1,800) (9,025) 485 (8,540) Subtotal Governmental Funds 771,859 757,124 14,167 771,291 (200) 368 731 1,100 En t e r p r is e Fu n d s
Community Center 42,897 41,918 1,380 43,298 (250) (651) 8,717 8,066 Parking 16,418 17,491 768 18,258 - (1,841) 2,209 368
Solid Waste 93,473 86,950 2, 081 89,032 - 4,442 26,699 31,141 Storm Drainage 39,839 39,013 6 39,019 - 820 21,509 22,329 Storm Drainage Property Fee 19,500 5,412 15,395 20,807 - (1,307) 3,050 1,743 Wastew ater 44,015 39,539 2,883 42,423 413 2,005 20,414 22,419 Water 136,798 124,173 25,684 149, 857 - (13,058) 62,377 49,319 Subtotal Enterprise Funds 392,941 354,496 48,197 402,693 163 (9,590) 144,975 135,385 Internal Service Funds
Fleet Management 61,959 62,032 202 62,234 - (275) 573 298 Risk Management 61,570 60,339 - 60,339 (1,231) - - -
Subtotal Internal Service Funds 123,529 122,371 202 122,573 (1,231) (275) 573 298 Other Governmental Funds
4th R Program 5,406 5,406 - 5,406 - - 928 928
Art In Public Places Projects ----- - 8 1 8 1
Assessment Reg and SDRIS ----- - 1 68 1 68
Cal EPA ----- - 1 ,316 1 ,316
CIP Reimbursable - - 21 21 21 - - -
Capital Improv. Revenue Bonds ----- - 3 0 3 0
Citation I-5 Maintenance - 40 - 40 - (40) 657 617
Cityw ide Low Income Housing 2,390 2,390 - 2,390 - - 240 240 Cultural Services - Other 155 149 - 149 - 6 1,156 1,162 Debt Service Funds 10,286 10,691 - 10,691 406 - 2,017 2,017 Development Services 3,616 2,266 1,350 3,616 - - - -
Dow ntow n Impact Fee - 100 - 100 - (100) 2,364 2,264
Dow ntow n Management District 3,998 3,998 - 3,998 - - 65 65 Ethel MacLeod Hart Trust ----- - 1 ,467 1 ,467
Fair Share Contributions ----- - 5 ,842 5 ,842
Fairytale Tow n 50 50 - 50 - - 4 4
Federal Capital Grant - - 5,104 5,104 5,104 - - -
Florin Road Storm and San ----- - 8 8
Gas Tax 14,320 7,297 4,396 11, 693 - 2,627 7,590 10,217 Golf 816 328 - 328 - 488 (3,346) (2,858)
Greenbriar Impact Fee ----- - 9 40 9 40
Innovation and Grow th 11,185 10,669 - 10,669 (2,500) (1,983) 7,708 5,725 Jacinto Creek ----- - 1 ,765 1 ,765
Land Park 23 122 - 122 - (99) 225 126
Library Services Parcel Tax 9,642 9,642 - 9,642 - - - - Landscaping and Lighting 20,019 20,088 1,415 21,503 - (1,484) 4,621 3,137 Major Street Construction 1,500 - 4,400 4,400 - (2,900) 7,131 4,231 Marcy Friedman ESC APP ----- - 1 2 1 2
Requirements Fund Balance
109
FY2023/24 Proposed Budget

Schedule 2B (continued)
Detail of Revenues, Appropriations, and Changes in Fund Balance (in 000s)

Re s our ce s
Other
Total Current Sources Surplus /
R evenues Operations CIP Total (U ses) (D eficit) B eginning E nding Marina 1,894 2,248 60 2,308 - (414) 535 121
Measure A Maintenance 15,177 19,231 325 19,556 - (4,379) 5,420 1,041 North Natomas Financing Plan 325 2,008 12 2,020 - (1,695) 29,651 27,957 Other - 110 - 110 - (110) 5,890 5,780
Other Capital Grants - - 7,457 7,457 7,457 - - -
Park Development 806 442 1,187 1,629 - (823) 21,971 21,148 Quimby Act 100 10 - 10 - 90 742 832
Railyards Impact Fee 50 50 - 50 - - 6,182 6,182
Redevelopment Bond Funds - 9 - 9 - (9) 4,171 4,162
River District Impact Fee - 25 - 25 - (25) 2,654 2,629
SHRA CDBG 29 29 - 29 - - - -
S o N a t o m a s C o m m I m p r o v 4 7 3---- 4 7 3 4 9 6 9 6 8 S o N a t o m a s F a c i l i t y B e n e f i t ----- - 3 , 5 9 3 3 , 5 9 3 So Natomas I-5 Developer Impr ----- - 6 2 2 6 2 2
Special Districts 24,641 23, 221 - 23,221 - 1,420 10,269 11,689 S p e c i a l D i s t r i c t s - C a p i t a l ----- - 1 , 4 3 4 1 , 4 3 4 Special Program Donations 250 250 - 250 - - - -
START 658 383 - 383 - 274 - 274
I - 5 S u b r e g i o n a l C o r r i d o r M i t i g ----- - 1 4 9 1 4 9 Street Cut 25 - 25 25 - - 45 45
Sunset, Meadow s A/D Maint ----- - 1 5 8 1 5 8
Transportation Development 400 - 400 400 - - 33 33
6 5 t h S t r e e t A r e a I m p a c t F e e ----- - 6 0 3 6 0 3 T r a n s p o r t a t i o n D e v I m p a c t F e e 1 , 0 0 0---- 1 , 0 0 0 4 , 0 5 2 5 , 0 5 2 Traffic Safety 350 350 - 350 - - 6 6
Tree Planting Replacement 120 - 120 120 - - - -
Road Maint and Rehabilitation 11,533 - 12,572 12,572 - (1,039) 4,029 2,990 NMA Traffic Control & Safety 1,518 - 1,813 1,813 - (295) 866 571 NMA Safety, Streets, Ped, Bic 2,210 6 2,597 2,603 - (393) 965 572 W a s t e w a t e r D e v e l o p m e n t F e e s ----- - 4 , 1 7 1 4 , 1 7 1 Water Development Fees - - 1,500 1,500 - (1,500) 36,182 34,682 Water Planning 1,220 1,226 - 1,226 - (6) 553 547
W i l l o w c r e e k F e e D i s t r i c t ----- - 2 , 2 7 2 2 , 2 7 2 Z o o 5 0 5 0- 5 0- ---
Subtotal Other Governmental Funds 146, 235 126,775 44,754 171,529 10,48 7 (14,807) 195,662 180,855 Total $1,434,564 $1,360,766 $107,320 $1, 468,086 $9,219 (24,304) $341,941 $317,638 Requirements Fund Balance
Other Governmental Funds (continued)
110
FY2023/24 Proposed Budget

Schedule 2C
Summary of Revenues, Expenditures, and Budgeted Fund Balances (in 000s)

*Governmental Funds reflect General, and Measure U Funds combined.

FY2019/20 FY2020/21 FY2021/22 FY2022/23 FY2023/24
Approved Approved Approved Approved Proposed
Governmental Funds*
Revenues 609,072 589,064 665,245 743,069 771,859
Total Resources 609,072 589,064 665,245 743,069 771,859 E xpenses
Operations 579,019 613,750 666,956 723,702 757,124
CIP 23,988 11,280 14,623 18,096 14,167
Total Requirements 603,007 625,030 681,579 741,799 771,291 Other Fund Sources (Uses) 19,990 19,500 15,913 1,089 (200) Beginning Fund Balance 11,233 17,042 589 4,761 731
Ending Fund Balance 37,288 577 168 7,120 1,100
E nterprise Funds
Revenues 336,792 329,402 330,673 373,458 392,941
Total Resources 336,792 329,402 330,673 373,458 392,941 E xpenses
Expenses 303,898 327,060 318,333 350,316 354,496
CIP 17,354 42,810 41,165 43,527 48,197
Total Requirements 321,252 369,870 359,498 393,842 402,693 Other Fund Sources (Uses) (250) (2,727) (3,071) (250) 163 Beginning Fund Balance 207,997 212,227 239,840 248,632 144,975 Ending Fund Balance 223,287 169,032 207,944 227,998 135,385 Internal Service Funds
Revenues 89,897 100,253 103,762 121,562 123,529
Total Resources 89,897 100,253 103,762 121,562 123,529
E xpenses
Expenses 90,887 100,271 102,598 121,585 122,371
CIP 202 202 209 202 202
Total Requirements 91,089 100,473 102,807 121,787 122,573 Other Fund Sources (Uses) 708 (262) (1,597) 298 (1,231) Beginning Fund Balance 1,432 1,083 2,646 403 573
Ending Fund Balance 948 601 2,005 476 298
Othe r Gove rnm e ntal Funds
Revenues 122,989 126,148 126,393 138,135 146,235
Total Resources 122,989 126,148 126,393 138,135 146,235 E xpenses
Expenses 114,139 120,981 108,720 121,829 126,775
CIP 38,875 68,563 39,534 70,265 44,754
Total Requirements 153,014 189,544 148,254 192,094 171,529 Other Fund Sources (Uses) 15,257 32,845 (658) 38,007 10,487 Beginning Fund Balance 159,543 163,527 161,403 190,936 195,662 Ending Fund Balance 144,775 132,975 138,883 174,984 180,855 111
FY2023/24 Proposed Budget

Schedule 3
Contributions to General Fund Support (in 000s)

Cost* In-Lieu In-Lieu Voter Approved
Allocation Property Franchise General
Plan Tax Tax Tax
Fund FY2022/23 FY2023/24 FY2022/23 FY2023/24 FY2022/23 FY2023/24 FY2022/23 FY2023/24 Enterprise Funds
Community Center 1,908$ 2,002$ 456$ 456 $ 1,310$ 1,562$ - - Parking 1,427 1,273 244 244 1,164 1,449 - - Solid Waste 4,807 4,884 - - - - 9,343 10,146 Storm Drainage 2,876 3,174 - - - - 6,437 6,492 Wastewater 2,541 2,450 - - - - 4,598 4,636 Water 7,267 7,558 - - - - 14,484 14,484 Total Enterprise Funds 20,826 21,341 700 700 2,474 3,011 34,862 35,758

Internal Service Funds
Fleet Management 2,400 2,089 - - - - - - Risk Management 3,260 1,451 - - - - - - Total Internal Service Funds 5,659 3,540 - - - - - - GRA ND TOTA L 26,485$ 24,881$ 700$ 700 $ 2,474$ 3,011$ 34,862 $ 35,758$ *COST ALLOCATION PLAN
Most of the City’s centralized services reside in the General Fund. Each year a study is conducted to identify and assign each fund’s fair share of these centralized service costs on a reasonable and consistent manner. Then these charges are incorporated in non-General Fund departments Budget.
112
FY2023/24 Proposed Budget

Schedule 4
Summary of Capital Funding by Funding Source (in 000s)

Fund Description
Budge t
Through
02/2023 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 Total
Five -ye ar
Funding
1001: General Fund $ 177,498 $ 11,467 $ 11,935 $ 11,744 $ 11,769 $ 11,241 $ 58,156 1003: ARPA Reinvestment Fund 5,997 - - - - - -
2001: Sacto Transp.Sales Tax-Cip. 1,471 - - - - - -
2002: Gas Tax 2016 19,296 4,396 1,671 1,671 1,671 1,671 11,078 2007: Major Street Construction 24,629 4,400 1,400 1,400 1,400 1,400 10,000 2008: Street Cut 882 52 52 52 52 5 1 26
2012: Transportation System Management 380 - - - - - -
2013: Transportation Development 2,485 400 400 400 400 400 2,000 2016: Development Services 19,490 1,350 1,414 1,517 1,590 1,662 7,533 2019: Citation I-5 Improvements 417 - - - - - -
2020: So Natomas Comm Improv 1,436 - - - - - -
2021: So Natomas Facility Benefit 220 - - - - - -
2023: New Measure A Specific Project 16,187 - - - - - - 2025: New Measure A Construction 2,589 - - - - - -
2026: New Measure A Maintenance 3,234 325 385 385 385 385 1,865 2028: Prop 1B - Local Street & Road 21 - - - - - -
2031: Innovation and Grow th 990 - - - - - -
2032: Fair Share Contributions 353 - - - - - -
2035: Tree Planting Replacement 928 120 120 120 120 120 600 2036: Road Maint and Rehabilitation 28,832 12,572 12,572 12,572 12,572 12,572 62,860 2038: NMA Traffic Control & Safety 7,819 1,813 1,813 1,813 1,813 1,813 9,067 2039: NMA Safety, Streets, Ped, Bic 11,375 2,597 2,597 2,597 2,597 2,597 12,986 2220: Sunset, Meadow s A/D Maint 1,600 - - - - - -
2230: N Natomas Lands CFD 3 123 - - - - - -
2232: Landscaping and Lighting 7,051 1,415 615 615 615 615 3,875 2235: Florin Road Storm and San 90 - - - - - -
2401: Measure U 46,228 2,700 2,700 2,700 2,700 2,700 13,500 2502: Special Program Donations 287 - - - - - -
2504: Special Recreation 842 - - - - - -
2507: Land Park 172 - - - - - -
2508: Quimby Act 7,044------
2601: Old Sac Market 85------
2603: Golf 93------
2605: Zoo 1------
2607: Art In Public Places Projects 26 - - - - - -
2608: Marina 8456 06 06 06 06 0 3 00
2609: Marcy Friedman ESC APP 1,000------
2700: Block Grant/Housing & Redev 6,912 - - - - - -
2701: Disaster Relief Act 3------
2703: Externally Funded Programs 369 - - - - - -
3001: 1993 Series B Cop 600 - - - - - -
3002: 2002 Capital Improv. Revenue Bonds 2 - - - - - -
3003: 2003 Capital Improv. Revenue Bonds 21,749 - - - - - - 3004: 2006 CIRB - Tax Exempt 3,623 - - - - - -
3005: 2006 CIRB - Taxable 361 - - - - - -
3006: 2006 CIRBs Ser C Cap Projs 115 - - - - - -
3008: Willow creek Fee District 788 - - - - - -
3201: N. Natomas Financial Plan 171 - - - - - -
3202: Railyards/Richards/Dow ntow n 359 - - - - - -
3204: Park Development 34,687 1,187 - - - - 1,187
3206: NNFP Public Facilities Fee 119 12 12 12 12 12 58
3210: Dow ntow n Impact Fee 907------
3215: Transportation Development Impact Fee 6,619 - - - - - - 113
FY2023/24 Proposed Budget

Schedule 4 (continued)
Summary of Capital Funding by Funding Source (in 000s)

Fund Description
Budge t
Through
02/2023 FY2023/24 FY2024/25 FY2025/26 FY2026/27 FY2027/28 Total
Five -ye ar
Funding
3311: N Laguna Creek Park CFD 70 - - - - - -
3314: N Natomas Drng CFD 97-01 418 - - - - - -
3323: CFD 97-01 Series C 68 - - - - - -
3328: N Natomas Drng 2005 CFD 97-01 551 - - - - - -
3333: CFD 97-01 Construction 247 - - - - - -
3338: Florin Depot Industrial Park 564 - - - - - -
3701: Sacto Housing & Redev Agency 3,853 - - - - - -
3702: CIP Reimbursable 19,429 21 21 21 21 21 105
3703: Federal Capital Grant 74,371 5,104 8,664 - - - 13,768 3704: Other Capital Grants 96,876 7,457 - - - - 7,457
3802: 2006 Army Depot TA 1,479 - - - - - -
3803: 2006 Army Depot TE 715 - - - - - -
6001: Water Development Fees 37,724 1,500 5,400 1,000 1,000 1,000 9,900 6004: Parking 37,557 768 765 765 765 765 3,828
6005: Water 131,390 25,684 18,003 28,001 28,841 25,408 125,936 6006: Wastew ater 18,121 2,883 2,428 2,428 6,866 1,991 16,595 6007: Recycling and Solid Waste 31,240 2,081 1,148 1,040 1,040 1,040 6,349 6008: Landf ill Closure 5,195 - - - - - -
6009: Sacramento Marina 874 - - - - - -
6010: Community Center 19,886 1,380 1,775 2,675 1,375 1,325 8,530 6011: Storm Drainage 15,953 6 - - - - 6
6012: 4th R Program 653 - - - - - -
6021: Storm Drainage Property Fee 11,316 15,395 14,117 14,267 14,324 19,099 77,202 6205: Water Grant Reimbursement 5,488 - - - - - -
6206: Wastew ater Grant Reimbursement 450 - - - - - -
6207: Solid Waste Grant Reimbursement 721 - - - - - -
6310: Water Revenue Bonds 6,662 - - - - - -
6311: Water Revenue Bonds Ser. 2017 1,938 - - - - - -
6312: Drinking Water SRF Loan 107,167 - - - - - -
6320: Wastew ater Revenue Bonds 545 - - - - - -
6321: Wastew ater Revenue Bonds 2019 6,580 - - - - - -
6330: 2018 TOT Revenue Bonds, Tax Exempt 294,180 - - - - - - 6331: 2018 TOT Revenue Bonds, Taxable 20,033 - - - - - - 6332: 2019 STID Revenue Bonds 53,900 - - - - - -
6501: Fleet Management 8,612 202 202 202 202 202 1,010
6502: Risk Mgmt 10------
Total $ 1,483,441 $ 107,320 $ 90,242 $ 88,030 $ 92,163 $ 88,123 $ 465,877 114
FY2023/24 Proposed Budget

Schedule 5
Article XIIIB Appropriation Limit Calculation (in 000s)

"GANN" Appropriations Limit
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the "Gann Initiative." The Proposition created Article XIIIB of the State Constitution, placing certain limits on the amount of revenue that can be appropriated each fiscal year. The limit is based on actual appropriations during FY1978/79 (base year) and is recalculated each fiscal year based on certain inflation and population factors. Only those revenues that are considered "proceeds of taxes" are subject to the limit. Proceeds of taxes are, however, allowed to be spent on several types of appropriations that do not count against the limit, including voter approved debt, the costs of complying with court orders and federal mandates, and expenditures for qualified capital outlays. The City is in compliance with Article XIIIB for each of the fiscal years as shown below.

APPROPRIATION LIMIT (Section 1) FY2019/20 FY2020/21 FY2021/22 FY2022/23 FY2023/24 Prior year limit 805,638$ 849,122$ 890,747$ 945,554$ 1,016,435$ Multiply by:

Change in CPI or Per Capita Personal Income 1.0385 1.0373 1.0573 1.0755 1.0755 Change in Population 1.0149 1.0113 1.0040 0.9995 0.9995 Total Appropriation Limit 849,122$ 890,747 $ 945,554$ 1,016,435$ 1,092,629$ PROCEEDS OF TAXES (Section 2)
Total governmental revenue 731,951$ 715,212$ 791,638$ 881,204$ 918,093$ Add taxes in enterprise funds:

Transient Occupancy Tax 28,433 12,589 18,628 26,359 33,872 Add user fees in excess of cost: - - - - - Deduct:

Non-proceeds of tax revenue (256,436) (265,669) (251,937) (270,816) (289,818) General obligation debt service - - - - - Qualified capital outlay (12,005) (6,962) (7,793) (15,454) (12,173) Total Proceeds of Taxes 491,943$ 455,170 $ 550,536 $ 621,293$ 649,974$ APPROPRIATIONS SUBJECT TO LIMIT (Section 3)
Total Governmental Funds:

Operating appropriations 693,158$ 734,731$ 775,676$ 845,531$ 883,899$ CIP appropriations 62,863 79,843 54,157 88,361 58,921 Add:

Enterprise fund tax appropriation 28,433 12,589 18,628 26,359 33,872 User fees in excess of cost - - - - - Current proceeds of taxes
appropriated to reserves 38,590 7,385 7,922 20,970 13,020

Deduct:

Non-proceeds of tax revenue (256,436) (265,669) (251,937) (270,816) (289,818) General obligation debt service - - - - - Qualified capital outlay (12,005) (6,962) (7,793) (15,454) (12,173) Total Appropriations Subject to Limit 554,603$ 561,917 $ 596,653 $ 694,951$ 687,721$ 115
FY2023/24 Proposed Budget

Schedule 6
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Governmental Funds
Taxes
Property Taxes - Current Secured $ 124,894 $ 132,062 $ 137,099 $ 137,099 $ 149,018 Property Taxes - Current Unsecured 4,669 4,642 4,220 4,220 4,585 Property Taxes - In Lieu VLF 51,809 54,619 57,896 57,896 61,775 Property Taxes - Prior Secured 1,231 1,166 1,070 1,070 1,157 P roperty Taxes - P rior U nsecured 94 95 40 40 76
Property Taxes - Redevelopment Passthrough 2,584 2,757 1,885 1,885 2,624 Property Taxes - Supplemental 2,974 4,531 2,734 2,734 2,597 Subtotal Property Taxes 188,256 199,872 204,944 204,944 221,833 Business Operations Taxes (BOT) 8,527 9,660 8,523 8,523 8,836 Cannabis Business Operations Tax (CBOT) 25,395 23,674 23,592 23,592 21,966 General Sales and Use Taxes 209,734 240,315 244,235 244,235 245,351 Property Taxes - Resident Development 1,059 885 349 349 1,013 Public Safety Sales Tax 6,437 8,200 6,430 6,430 9,014
Real Property Transfer Taxes 15,544 19,372 16,659 16,659 10,768 Transient Occupancy Tax 2,924 5,232 5,289 5,289 6,792
Transient Occupancy Tax - Prior 168 142 - - -
Utility Users Tax - Current 62,089 65,388 65,665 65,665 68,165 Utility Users Tax - P rior 75 73 - - -
Subtotal Other Taxes 331,953 372,941 370,743 370,743 371,904 Total Taxes 520,209 572,813 575,687 575,687 593,737
Licenses and Permits
Alley Parking Permit 31 8 - - -
Alley Parking Permits - 2 7 7 3
Animal Licenses 347 371 520 520 520
Building Trades Certification - - 1 1 1
Burglar Alarm Permits 1,064 984 1,000 1,000 1,130
Business Permits and Licenses 364 345 353 353 360
Cellular Revocable Permits 880 1,476 1,500 1,500 1,814
Construction Permits 13,074 13,064 12,732 12,732 12,714 Dance Permits 286 21 01 01 0
Emergency Permits 7 6 7 7 7
Excavation Permits 452 72 52 52 5
Home Occupation Permits 228 172 156 156 156
Marijuana Cultivation Permit 1,160 1,339 1,558 1,558 1,558 Marijuana Delivery Permit 590 868 484 484 484
Marijuana Dispensary Permit 625 635 624 624 624
Marijuana Manufacturing Permit 185 316 280 280 280
Marijuana Other Business Permit 583 718 666 666 666
Miscellaneous Licenses and Permits 4 12 - - -
Neighborhood Responsibility 3,393 2,338 - - -
On-Site Plan Review Permit 55 73 87 87 87
Plan Check Fees 7,579 7,932 9,155 9,155 10,254
Public Works Review 7 8 - - -
116
FY2023/24 Proposed Budget

Schedule 6
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Governmental Funds (continued)
Licenses and Permits (continued)
Sign and Billboard Permit 39 50 63 63 63
Sign and Billboard Permits 72 313 240 240 240
Special Event Permits 53 371 122 122 252
Special Use Permits 2,416 3,051 3,177 3,177 3,354
Street Vendor Permits 21 26 5 5 5
T a x i P e r m i t s 2 02 03 23 23 2
Tow ing Vehicle Permits 32 34 45 45 45
Tree Fee 1 - - - -
Subtotal Licenses and Permits 32,898 34,624 32,848 32,848 34,683 F ines, F orfeitures, and Penalties
Delinquency Charges 156 260 - - -
Fines and Penalties 7,440 9,794 7,082 7,082 7,273
Transient Occupancy Tax - Penalty - 3 - - -
Subtotal Fines, Forfeitures, and Penalties 7,284 10,057 7,082 7,082 7,273 Interest, R ents, and Concessions
Interest on Investments 1,807 1,259 2,500 2,500 1,500
Interest on Receivables 136 121 125 125 125
Real Property Rental 455 521 229 229 229
Subtotal Interest, Rents, and Concessions 2,398 1,901 2,854 2,854 1,854 Intergovernmental
Fire District Reimbursement 7,226 9,435 5,870 5,870 8,875 Miscellaneous Governmental Revenue 5,217 6,484 3,545 3,545 4,520 Miscellaneous Other Federal 5,121 2,507 1,210 1,210 1,210 Other Agency Payments 2,388 4,893 1,232 1,292 1,210
Other Agency Training Reimbursement 4 - - - -
Other County Payments 369 949 425 425 425
Other Recoveries 371 283 130 130 133
Other State Payments 2,118 2,787 76 76 76
P.O.S.T. Reimbursement 96 219 167 167 167
Planning Technology Fee 1 - - - -
Redevelopment Agency Services 256 538 680 680 373
Sacramento County Support - Metro Arts 43 - - 388 -
Sacramento County Support - Museums 459 459 459 258 258 State Homeow ners Property Tax 936 1,104 1,200 1,200 1,045 State Mandated Reimbursement SB 90 332 454 212 212 212
State Motor Vehicle In Lieu Tax 375 596 - - 250
Subtotal Intergovernmental 25,311 30,708 15,205 15,452 18,754 Charges, F ees, and Services
Administrative Fee 570 654 527 527 505
ALS Fees 27,415 29,426 30,518 30,518 31,500
Animal Shelter Fees and Charge 299 246 340 340 340
Appeal Fees 12 14 - - -
117
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Governmental Funds (continued)
Charges, F ees, and Services (continued)
City Attorney Fees 3 - - - -
Code Enforcement Fee 3,615 5,172 3,471 3,471 3,231
Community Services Fees 221 885 754 754 1,428
Compliance Fee 1,261 589 3,548 3,548 448
Concessions 27 85 115 115 115
Demolition Charges 355 369 599 599 417
DUI Fees 105 6 2 2 32
Facility Use Fees 561 1,882 1,012 1,012 1,632
Fire Permit Fees 1,280 1,240 1,244 1,244 1,326
Franchise Fees 5,659 8,829 4,418 4,418 7,571
Housing and Dangerous Buildings 72 75 182 182 111
Jail Booking Fee Recovery 320 19 40 40 40
Law n and Garden Service - 3 - - -
Miscellaneous Proprietary Revenue 24 30 32 32 32
Non-Subsidized Parent Fees 6 - - - -
Other Departmental Service 7,598 9,024 9,337 9,337 9,738 Other Fees 42 203 - - 1
Other General Fees and Charges 190 73 28 28 28
Parking Fees 6 10 1 1 5
Parking Meter Receipts 5,157 8,428 8,419 8,419 9,919
Parking Meter Removal Fees 1,085 688 370 370 520
Recyclables Sales 7 5 15 15 15
Registration Fees 114 169 135 105 105
Service Fees 80 68 35 35 35
Special Assessments - Administ 423 483 74 74 150
Special Assessments - Service SD 165 - - - -
Street Sidew alk and Curb Repair 1,291 2,115 1,525 1,525 1,525 Subdivision Map Processing - Planning - - 30 30 30
Sw imming Pool Fees 51 261 133 133 383
Third Party Recoveries - Vehicle 366 40 - - -
Tour Fees - 2 - - -
Vehicle Abatement SAVSA 590 603 405 405 -
Subtotal Charges, Fees, and Services 58,971 71,654 67,309 67,279 71,180 Contributions from Other Funds
Contributions from Other Funds Accounts 37,058 38,895 41,035 41,035 42,469 Subtotal Contributions from Other Funds 37,058 38,895 41,035 41,035 42,469 Miscellaneous R evenues
Escheat 1,144 627 242 242 242
Gifts and Donations 30 23 - - -
One-time Budgeted Revenue Adj - - 450 560 1,666
Other Departmental Services - - 357 357 -
Sale of Real or Personal Property 107 26 - - -
Subtotal Miscellaneous Revenue 1,281 676 1,049 1,158 1,908 Total General Funds $ 685,410 $ 761,328 $ 743,069 $ 743,395 $ 771,859 118
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
E nterprise Funds
Community Center
Box Office Fees $ (94) $ 1,484 $ 1,016 $ 1,016 $ 1,016 Catering Fees - 449 550 550 1,125
Concessions - 154 275 275 275
Facility Use Fees 180 3,687 2,924 2,924 3,230
Ins ur anc e Fee - - 1 1 1
Interest on Investments 1,167 276 67 67 115
Miscellaneous Governmental Revenue - 660 51 51 80
Other Fees 7 865 900 900 900
Real Property Rental 13 636 591 591 700
Registration Fees - 1 - - -
Royalties 16 1,716 866 866 866
Service Fees - 487 631 631 631
Transient Occupancy Tax 14,704 26,117 26,359 26,359 33,872 Transient Occupancy Tax - Penalty (2) 17 3 3 3
Transient Occupancy Tax - Prior 842 709 83 83 83
Subtotal Community Center 16,834 37,259 34,316 34,316 42,897 Parking
Administrative Fee 480 542 424 424 774
Delinquency Charges - 4 - - -
Facility Use Fees 21 19 - - -
Interest on Investments 212 171 300 300 300
Miscellaneous Governmental Revenue - 19 - - -
Other Fees 1 31 - - 20
Other General Fees and Charges 8 31 - - -
Other Recoveries 451 36 - - -
Parking Fees 9,108 12,440 12,540 12,540 14,492
Real Property Rental 291 504 501 501 746
Royalties (7) 52 - - 40
Sale of Real or Personal Property 1 - - - -
Vehicle or Equipment Rental 47 47 - - 45
Subtotal Parking 10,616 13,894 13,766 13,766 16,418
Solid Waste
Facility Use Fees 192 177 182 182 182
Fines and Penalties 26 (10) - - -
Interest on Investments 459 363 750 750 750
Miscellaneous Governmental Revenue 139 159 - - -
Miscellaneous Proprietary Revenue 51 35 - - -
Other Agency Payments 296 43 33 33 33
Other Departmental Services 29 10 - - -
Recyclables Sales 186 132 100 100 100
Sale of Real or Personal Property 18 15 - - -
Service Fees 127 167 - - -
Utility Services Charges 72,589 75,575 85,105 85,105 92,409 Subtotal Solid Waste 74,112 76,666 86,170 86,170 93,473 119
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
E nterprise Funds (continued)
Storm Drainage
Compliance Fee 100 84 110 110 110
Interest on Investments 490 354 440 440 440
Interest on Receivables 45 35 - - -
Miscellaneous Governmental Revenue 123 25 30 30 30
Miscellaneous Proprietary Revenue 30 22 15 15 15
Other Fees 221 27 30 30 50
Other General Fees and Charges - 1 - - -
Other Recoveries 8 (8) - - -
Plan Check Fees 48 61 55 55 55
Sale of Real or Personal Property 4 - - - -
Service Fees 43 52 50 50 50
Subdivision Map Processing - Engineering 2 2 - - -
Utility Services Charges 38,574 39,761 38,574 38,574 39,074 Vehicle or Equipment Rental 21 49 15 15 15
Subtotal Storm Drainage 39,709 40,465 39,319 39,319 39,839 Storm Drainage Property Fee
Utility Services Charges - - 20,250 20,250 19,500
Subtotal Storm Drainage Property Fee - - 20,250 20,250 19,500 Wastewater
Interest on Investments 687 402 430 430 430
Interest on Receivables 3 - - - -
Miscellaneous Governmental Revenue 5 61 - - -
Miscellaneous Proprietary Revenue 51 49 - - 48
Other Agency Payments - 4 - - -
Other Bonds Issued 3 - - - -
Other Recoveries - (9) - - -
Regional Sanitation District 1,192 1,186 1,000 1,000 1,050 Sale of Real or Personal Property 22 - - - -
Service Fees 70 114 60 60 75
S e w e r P e r m i t s 6 48 06 56 57 2
Subdivision Map Processing - Engineering 2 2 2 2 2
Utility Services Charges 42,614 42,999 41,988 41,988 42,338 Subtotal Wastew ater 44,713 44,888 43,545 43,545 44,015 Water
Capital Contributions 59 48 - - -
Catering Fees 2 - - - -
Cellular Revocable Permits 16 52 55 55 55
Fines and Penalties - 1 - - -
Fire Hydrant Use Fee 59 143 125 125 125
Fleet Vehicle Revenue - 9 - - -
Interest on Investments 1,216 1,466 865 865 865
Miscellaneous Governmental Revenue 54 64 100 100 60
Miscellaneous Proprietary Revenue 115 85 50 50 100
120
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
E nterprise Funds (continued)
Water (continued)
Other Agency Payments 46 1,710 1,000 1,000 1,600
Other Bonds Issued 70,784 22,646 - - -
Other Fees 40 58 - - -
Other General Fees and Charges - 5 - - -
Other Recoveries 63 269 - - -
Park Impact Fee - 61 - - -
Residential Construction Water 214 168 125 125 160
Service Fees 147 155 150 150 200
Special Item Revenue 4,473 - - - -
Subdivision Map Processing - Engineering 2 2 - - 2
Utility Service Extensions 18 50 36 36 20
Utility Services Charges 137,840 132,576 132,191 132,191 132,191 Utility Shut-Of f Fee 1 - 95 95 -
Water Flow Test Fee 179 277 100 100 220
Water Tap Sales 1,241 1,058 1,200 1,200 1,200
Subtotal Water 216,568 160,903 136,092 136,092 136,798
Total Enterprise Funds $ 402,551 $ 374,075 $ 373,458 $ 373,458 $ 392,941 121
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Internal Service Funds
Fleet Management
Fleet Charges Accident Repair $ 526 $ 636 $ 609 $ 609 $ 765 Fleet Charges O & M 19,798 21,454 23,185 23,185 21,323
Fleet Vehicle Revenue 27,846 19,383 33,255 36,819 28,279 Gasoline and Oil Sales 6,724 9,739 8,409 8,409 9,348
Interest on Investments 222 154 200 200 200
Miscellaneous Governmental Revenue 18 7 - - -
Miscellaneous Other Federal 573 118 - - -
Other Recoveries 409 83 - - -
Sale of Real or Personal Property-Salvage 509 824 438 438 856 Vehicle or Equipment Rental 787 1,150 1,062 1,062 1,189 Subtotal Fleet Management 57,413 53,548 67,158 70,722 61,959 Risk Management
Interest on Investments 1,184 953 500 500 500
Interest on Receivables - 281 66 66 60
Other Departmental Services 1,705 1,388 - - -
Risk Fund In-Lieu Insurance 45,311 50,992 53,488 53,488 60,660 Service Fees - - 100 - 100
Third Party Recoveries - Property 642 2,335 250 250 250 Third P arty R ecoveries Workers' C om pensation 3 1 - - - Subtotal Risk Management 48,875 55,993 54,404 54,304 61,570 Total Internal Service Funds $ 106,288 $ 109,541 $ 121,562 $ 125,026 $ 123,529 122
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Other Gove rnm ental Funds
4th R Program $ 583 $ 4,455 $ 3,156 $ 3,156 $ 5,406 65th Street Area Impact Fee 11 38 - - -
AR P A R einvestm ent Fund - 546 - - -
Art In Public Places Projects 5 4 - - -
Assessment Reg and SDRIS 2 1 - - -
Cal EPA 221 215 113 113 -
Capital Improv. Revenue Bonds 3 2 - - -
CIP Reimbursable 56 23 - - -
Citation I-5 Improvements 4 3 - - -
Citation I-5 Maintenance 8 5 - - -
Cityw ide Low Income Housing 2,194 2,292 3,100 3,100 2,390 Cultural Services - Other 152 225 155 155 155
Debt Service Funds 3,636 4,578 10,076 10,076 10,286
Development Services 2,109 2,012 3,817 1,551 3,616
Dow ntow n Impact Fee 323 1,020 - - -
Dow ntow n Management District 3,497 3,655 3,808 3,808 3,998 Ethel MacLeod Hart Trust 291 153 - - -
Externally Funded Programs 109 26 19 - -
Fair Share Contributions 662 306 - - -
Fairytale Tow n 76 103 50 50 50
Gas Tax 11,461 12,457 12,754 12,754 14,320
Golf 1,765 842 816 816 816
Greenbriar Impact Fee 1,191 1,503 - - -
I-5 Subregional Corridor Mitig 2 1 - - -
Innovation and Grow th 10,260 11,391 11,185 11,185 11,185 Jacinto Creek 91 33 - - -
Land Park 93 163 23 23 23
Landscaping and Lighting 18,178 18,742 19,336 19,336 20,019 Library Services Parcel Tax 8,446 8,777 9,271 9,271 9,642 Major Street Construction 3,750 3,289 1,500 1,500 1,500 M arcy Friedm an E SC AP P 1 - - - -
Marina 2,147 2,111 1,678 1,678 1,894
Measure A Maintenance 13,924 16,187 15,658 15,658 15,177 Museum of History, Science, & Tech 1 - - - -
NMA Safety, Streets, Ped, Bic 2,062 2,432 2,330 2,330 2,210 NMA Traffic Control & Safety 1,423 1,645 1,594 1,594 1,518 North Natomas Financing Plan 10,747 11,351 - - 325
Operating Grants 51 149 - - -
Other 56,963 56,277 - - -
Park Development 8,487 8,698 766 806 806
Private Development 1,369 364 - - -
Quimby Act 342 301 100 100 100
Railyards Impact Fee 3,826 11,686 50 50 50
Redevelopment Bond Funds 130 80 - - -
R iver District I m pact Fee 11 1,386 - - -
Road Maint and Rehabilitation 8,776 11,332 10,109 10,109 11,533 123
FY2023/24 Proposed Budget

Schedule 6 (continued)
Revenue Budget (in 000s)

FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24
Actuals Actuals Approved Amended Proposed
Other Governmental Funds (continued)
Sheraton MOPA Project 149 107 - - -
SHRA CDBG - - 29 29 29
So Natomas Comm Improv 6 480 473 473 473
So Natomas Facility Benefit 567 387 - - -
So N atom as I -5 Developer I m pr 6 5 - - -
Special Districts 19,801 24,806 22,169 22,169 24,641
Special Districts - Capital 222 128 - - -
Special Program Donations - - 250 - 250
START 482 486 658 658 658
State Route 16 Relinquishment 3 - - - -
S t r e e t C u t 5 24 02 52 52 5
Sunset, Meadow s A/D Maint 17 13 - - -
Traffic Safety 347 200 350 350 350
Transportation Development 8 981 400 400 400
Transportation Development Impact Fee 2,174 2,802 1,000 1,000 1,000 Tree Planting Replacement 98 202 120 120 120
Wastew ater Development Fees 4,317 17,096 - - -
Water Development Fees 5,094 4,701 - - -
Water Planning 1,199 886 1,147 1,147 1,220
Willow creek Fee District 150 118 - - -
Zoo 75 101 50 50 50
Other Governmental Funds $ 211,465 $ 141,846 $ 138,135 $ 135,640 $ 146,235 124
FY2023/24 Proposed Budget

Schedule 7A
Operating Grants - $105.5 million

This section provides an overview of significant grant activities that Departments conduct with federal, state, and local sponsorship to advance City objectives and supplement City programs. Grant payments for non-labor items are charged dire ctly to the grant fund.

Grant payments for labor are noted in the grant fund and show as a grant recovery in the General Fund or other funds to which the employees are assigned. This information is not all-inclusive and is intended as a general summary of the City’s success in receiving grants. Resources for capital programs are also included in the 2023-2028 CIP.

Significant grant amounts that will benefit FY2023/24 ar e summarized by department below.

CITY MANAGER - $77,188,588

FY2022/23 Go-Biz Cannabis Equity Grants for Local Jurisdictions $1,563,722 The Go-Biz social equity grants focus on t he inclusion and support of individuals in California’s legal cannabis marketplace w ho are from communities that have been negatively or disproportionately impacted by cannabis criminalization. The grant funds are intended to reduce barriers for entrance into the legal cannabis industry for social equity community members.

FY2021/22 Department of Cannabis Control, Local Jurisdiction $5,566,415 Assistance Grant
Funding is intended to support local jurisdictions in aiding provisional license holders meet those requirements that are necessary to attain an annual state license.

FY2023/24 Homeless Housing, Assistance and Prevention II $678,168 Use of the Homeless Housing, Assistance and Prevention II funding is envisioned as part of the Homelessness and Rehousing Plan adopted as part of the COVID-19 Relief Funding and Response, including for an Operational Reserve at the La Mancha Homekey Supportive Housing Project, ongoing youth sheltering c ontracts, and tiny homes placement and operations in the Comprehensive Siting Plan.

FY2023/24 Homeless Housing, Assistance and Prevention IIII $24,791,417 The Homeless Housing, Assistance and Prevent ion IIII funding allocation continues existing sheltering programs and expands pr evention programming. Requires grantees to expend funds on evidence-based solutions that prevent, reduce and end homelessness. Staff recommended the HHAP- 4 cycle provide funding for permanent housing in addition to continued support of youth sheltering, and continued operations of North Fifth Street, X Street Navigation, Meadowview Navi gation, Grove Bridge to Housing, city motel shelters, and other local sheltering spaces.

125
FY2023/24 Proposed Budget

FY2022/23 State Senate Bill 170, California Natural Resources Agency $1,922,368 Planting Justice Tree Nursery
Transform the vacate tree nursery located at 1920 34th Avenue into a nationally significant center for urban agriculture, social entrepr eneurship, multifaceted biodiversity, youth mentorship, and farmer training. As part of the Budget Act of 2021 (Senate Bill 170, Chapter 240).

FY2022/23 State Senate Bill 170, California Natural Resources Agency $1,000,000 Sacramento LGBT Community Center Improvements
State approved grant funding for the LGBT Center is being administered by the California Natural Resources Agency. The funds wil l be used to lessen the Sacramento Pride Properties, Inc.’s mortgage burden on its property at 1015 20th St reet. This will result in reducing the operational burden of the Sacramento LGBT Community Center and ensure that the LGBTQ+ community will always have a place to call home in the region and future philanthropic support can be primarily focused on advancing the mission and serving more people.

FY2023/24 California Natural Resources Agency $1,000,000 Mini Sacramento - Children’s Play Area
Mini Sacramento is a proposed children’s play area located at the Old Sacramento Schoolhouse. The purpose of this project is to cultivate inclusivity within the City of Sacramento by providing a unique, playful framework for social inclusion and interaction.

Mini Sacramento will reintroduce the dive rsity of Sacramento through themed play structures. A state funded grant allocated by Assemblymember McCarthy.

FY2023/24 State Senate Bill 126, Section 96 City of Sacramento $30,000,000 Railyards Rehabilitation
Pass-through grant funds to support the rehabilitation of the Sacramento Railyards (Railyards). The subrecipient, Downtown Ra ilyard Venture, LLC, will use the state grant funds to pay for a portion of t he considerable remaining infrastructure that must be built in the Railyards, which will catalyze rehabilitation of the Railyards.

FY2023/24 State of California Volunteers, $ 6,980,080
Californians for All: Youth Workforce
State grant to support Californians for All Youth Workforce Development program to fortify career pathways into public sector and high-growth jobs and institute a more cohesive youth workforce ecosystem that better aligns the efforts of public agencies, education systems, community-based organizations, and employers within growing local industries.

State grant to support the Cit y's efforts to develop public sector pathways including training youth to step into ex isting high-need positions and building out sustainable pre- apprenticeship and on-the-job training (OJT) programs that support long-term COVID-19 recovery and climate change mitigation goals.

FY2022/23 Board of State and Community Corrections Proposition 64 $536,919 A City in partnership with PRO Youth & Families to implement a tailored version of our #SacYouthWorks program entitled #SacYouthWorks_Futures (#Futures). Responding to the needs of Sacramento youth from communities most impacted by the passage of 126
FY2023/24 Proposed Budget

Proposition 64 - legalizing the Adult Use of Marijuana - the program aims to support Sacramento youth in creati ng pathways to healthy futures and college/career success. #Futures integrates under age marijuana and substance use prevention education and advocacy into a work-based learning model.

FY2022/23 National League of Cities Institute, Youth Excel Initiative $149,499 The National League of Cities Inst itute Youth Excel Initiative (NLCI) is to support costs associated with implementing the City's Youth Excel Action Plan. The program aims to build knowledge about educational options and career pathways that create access to quality jobs in STEM industries; gain understanding of key strategies to build systems to promote economic equity for marginalized young people and their communities; and strengthen policy and practice by intentionally engaging wit h youth and equity-focused youth-serving community-based organizations.

FY2016/17 State Department of Health Care Services $3,000,000 Whole Person Care (WPC) Program
The Department of Community Response managed the City’s WPC programs which were designed to be experimental and innovative to address the unprecedented homelessness crisis. DCR managed the federal funding that was provided to the City upon completion of certain Pathways program milestones. Since then, the Pathways program has ended, and the State Department of Health Care gr ant funds are for fu ture WPC audit risk assessments and other audit-related expenses.

COMMUNITY RESPONSE - $13,999,560

ESG Step Up Outreach and Housing Coordination Program $56,781 (Emergency Solutions Grant)
The Scope of Work includes, but is not limited to, essential services necessary to reach out to unsheltered homeless individuals and families, connect them with emergency shelter, housing, or critical services, and provide them with urg ent, non-facility-based care. Component services generally consist of engagement, case management, emergency health and mental health services.

FY2023/24 Homeless Housing Assistance and Prevention III $13,942,779 Use of the Homeless Housing, Assistance and Prevention III funding is envisioned as part of the Homeless and Rehousing Pl an adopted as part of the COVID-19 Relief Funding and Response, including ongoing youth sheltering contracts, the Meadowview Navigation Center, Emergency Bridge Housing at the Grove, the North 5th Street Navigation Center, and the City Motel Program.

CONVENTION & CULTURAL SERVICES - $1,215,000

National Endowment for the Arts $150,000
The City of Sacramento Office of Arts & Culture (OAC) will seek a $150,000 grant to support sub granting for arts projects as a local arts agency.

127
FY2023/24 Proposed Budget

California Arts Council State and Local Partners Grant $65,000 This grant is made to County designated agencies for participation in the California Arts Council’s State and Local Partner program. Sacram ento Office of Arts & Culture is the County’s designated agency. This grant will support capacity building and investment in unincorporated Sacramento County.

California Department of Natural Resources Grant $500,000 The Center for Sacramento His tory was awarded funding from the State of California through the Department of Natural Resources and Assemblymember McCarty’s office in the amount of $500,000. The funding will be used to purchase compact shelving for the Center’s offsite storage at McClellan.

Sacramento Historical Society $500,000
In December 2022, the Sacram ento Historical Society was awarded $900,000 from the Joan Didion estate to distri bute in the Sacrament o region. The estate was seeking a names opportunity for Didion. The Society is donating $500,000 of the award to the City to be used toward a new building for t he Center for Sacramento History and are requesting a naming opportunity.

FIRE DEPARTMENT - $1,332,150

Urban Search and Rescue (US&R) $1,332,150 The National US&R system is a cooperative effort between the Department of Homeland Security (DHS), Federal Emergency Management Agency, participating state emergency management agencies, and local public safety agencies across the country. The system is built around a core of sponsoring agencie s prepared to deploy US&R task forces immediately and initiate US&R operations at DHS’s direction. US&R operational activities include locating, extricating, and providing on-site medical treatment to victims trapped in collapsed structures, victims of weapons of mass destructi on events, victims of major flooding and, when assigned, performing in cident command or other operational activities. California has 8 of the 28 US&R Task Forces. The City of Sacramento’s Fire Department is the sponsoring agency of California Task Force 7 (CA-TF7). DHS provides financial support in the form of grants/cooperative agreements to each of the sponsoring agencies. The Department is solely respon sible for the administrative management of CA-TF7. As required by the cooperative agreement, the Department will use this grant to train task force personnel, maintain a state of readiness and acquire necessary equipment and supplies. Funding is included to staff the following positions: one Battalion Chief, one Administrative Analyst, one Ad ministrative Technician, and two Cache Logisticians. Funding for this program varies annually and is provided on an annual basis from DHS.

128
FY2023/24 Proposed Budget

POLICE DEPARTMENT - $8,377,829

FY2019/20 Urban Area Security Initiative $2,687,750
FY2020/21 Urban Area Security Initiative $3,097,500
This program provides funding from the U.S Departm ent of Homeland Security through the State of California to enhanc e the five mission areas of the National Preparedness Goal: Prevention, Protection, Mitigation, Response and Recovery.

FY2021/22 Citizens’ Option for Public Safety $781,337
FY2022/23 Citizens’ Option for Public Safety $800,102
This State-mandated program provides funding to local law enforcement jurisdictions to support law enforcement activities. Annual allocations are determined by population, based on the most recent January estimate pr ovided by the California Department of Finance.

FY2022/23 Selective Traffic Enforcement Program $390,000 This is a federal grant program, passed through the State of California’s Office of Traffic Safety. The grant objectives are to reduce the number of traffic-related injuries and fatalities. Funded strategies include tra ffic safety enforceme nt, outreach, and engagement activities to reduce motorist, bi cyclist, and pedestrian injuries and fatalities attributable to driving under t he influence (DUI) and unsafe driving (e.g., speed, texting, etc.).

FY2022/23 Gang Violence Suppression $363,000
This state-mandated program provides funding to local law enforcement jurisdictions to support a comprehensive, cohesiv e, strategic, and tactical plan to effectively address issues that are associated with or contribut e to gang involvement and violent crime. A portion of funds is awarded to local criminal justice partners such as the Sacramento County’s District Attorney’s Office, the Sacramento County Probation Department, the Sacramento City Unified School District as well as community-based organizations such as Another Choice, Another Chance and the La Familia Counseling Center.

FY2021/22 Edward Byrne Memorial Justice Assistance Program $258,140 This federal program provides annual funding to state and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system. This grant will support future costs for ShotSpotter technology in the North Sacramento area.

UTILITIES - $2,343,250

Department of Water Resources (DWR), $375,200
Flood Maintenance Assistance Program (FMAP) Grant
The FMAP program provides State funds to Local Maintaining Agencies (LMAs) for eligible maintenance activities to obtain a cceptable maintenance levels of the State’s Flood Control Facilities Plan (levees, channels, and structures). As an LMA, the Department of Utilities Wastewater and Drainage Division Levee Maintenance Section is responsible for maintaining and inspecting 3. 66 miles of levee on the Sacramento River 129
FY2023/24 Proposed Budget

and 19 miles of levees in the South Sacr amento Streams Group (Morrison Creek). The City has been awarded the DWR FMAP Grant for five years.

Department of Water Resources, Floodplain Management $621,161 Protection and Risk Awareness Program, Prop 68 Grant (Basin 147) The objective of this project is to impr ove how the drainage system conveys stormwater and reduce the flooding to the properties and infrastructure for the Basin 147 watershed.

The recommended alternative to achieve t hat goal through hydr aulic and operational improvements is to construct a detention basin on a vacant lot on 6122 Dias Avenue to hold back the peak flows until the drainage system downstream of the basin is able to recover.

Department of Water Resources, $306,000
Prop 1 Round 3 Delta Flood Emergency Response Grant
This grant allows for the purchase of equipment for flood emergency response. Including the purchase of 50 Motorola portable radios and associated bank battery charges for daily operations and ten bank charger stations. Flood Fight materials such as sandbags, stakes, Visqueen (plastic sheeting), and strong wall to protect critical infrastructure and enhance local and regional supplies. The Departm ent of Utilities (DOU) also included purchasing levee patrol supplies to assist st aff in emergency high water monitoring and patrolling, and riprap rock to create emergen cy material stockpiles for critical infrastructure.

Department of Water Resources, $740,889
Sacramento and San Joaquin Drainage District (SSJDD) Grant Program This grant is a three-year program to address the abate ment of illegal dumping and hauling of materials and debris on property owned by the City of Sacramento and San Joaquin Drainage District (SSJDD), managed and controlled by the Central Valley Food Protection Board (CVFPB). The City of Sacramento, Department of Utilities, will provide all labor and expertise for surveying, docum enting, clean-up, collecting, removal, and disposal services involving clean-up abatement actions on an as-needed basis per county and city guidelines, standards, and operating procedures.

Sierra Institute for Community and Environment, $300,000 A Grantee of the Department of Water Resources: Leak Free Sacramento Homeowners within the City with residential leaks will be able to apply to have a City contracted plumber to repair leaks and replace inefficient fixtures. The program, through this grant, will focus on customers in disadvantaged community areas, as defined by the DWR mapping tool census tracks. The project will result in approximately 89 acre-feet per year of conserved water.

YOUTH, PARKS, & COMMUNITY ENRICHMENT - $1,365,968

START (Students Today Achieving Results for Tomorrow) $753,792 START has funding of $753,792 from the California Department of Education (DOE) After School Education and Safety (ASES) grant fo r this after-school literacy and enrichment 130
FY2023/24 Proposed Budget

program that serves over 415 elementary school children da ily in the Robla Unified School District.

Workforce Innovation and Opportunity Act (WIOA)/Youth $89,216 Program Development
The Sacramento Employment and Training Agency provides funding to support 60 in school youth (ages 16-21 years old) each year. Activities are individualized and may include paid work experience, tutoring, l eadership development opportunities, adult mentoring, comprehensive gui dance and counseling, and a minimum of one year of follow-up services.

ASES Program $172,960 Grant funding from the Departm ent of Education (DOE) provides after-school academic support, enrichment activities, recreation, and sports for students at middle schools in the Sacramento City Unified School District (SCUSD). The school district is the “grantee” who contracts with the City for the delivery of the program.

CalCOMPASS Project $350,000 Grant funding from the California Department of Aging provides funding to support CalCOMPASS Pilot Project. CalCOMMPASS is a 13-month pilot project to meet the needs of diverse older adults and families in a co mmunity setting through the provision of dementia care services, provided at licensed Adult Day Programs and Adult Day Health Care Centers, to address the health and wellb eing of older adults and their caregivers, prevent or delay instituti onalization and advance health equity. The Triple R Adult Day Program will provide person-ce ntered care and support services for individuals and families experiencing dementia and serve as a model program for the State.

131
FY2023/24 Proposed Budget

Schedule 7B
City Grant Awards

This section provides an overview of grants awarded by the City of Sacramento, to non- profits, businesses, community-based organizations, or other entities to support essential City programs. The information provided is a general summary of the grants awarded during calendar year 2022 and in cludes the program’s name, grantee, grant amounts, and funding source.

Grant Program Name Grantee Amount Awarded
City Manager
ARPA City of Festivals City of Festivals Organizations 700,000 ARPA Funding Grant with DSP in Old Sac Downtown Sacramento Partnership 800,000 ARPA Shop916 Yiftee, Inc. 250,000
Center for Worker's Right's Grant Agreement Center for Worker's Rights 550,000 Child Action ARPA Grant Agreement Child Action Inc 881,000 Child Action FCCH Start up Stipend Child Action Inc 225,044 DSP ARPA Grant Agreement for Clean and Safe Improvements in CBD Downtown Sacramento Partnership 1,150,000 FCCH Start up Stipend California Capital Women's Business Center 100,000 Food Assistance Program Sacramento Food Bank and Family Services 500,000 Food Justice Program Meals on Wheels by ACC 223,130
NorCal Resist Fund 113,966
South Sacramento Christian Center 117,295
Marginalized Community and Small Business Coalition (MCSBC) Program California Black Chamber of Commerce Foundation, Inc. 500,000 Midtown ARPA Grant Agreement Midotwn Sacramento PBID Corporation 635,000 Minority Business Assistance and Recovery Kickstart (MBARK) Program Sacramento Asian Pacific Chamber of Commerce 2,800,000 North Area Façade Pilot Various Organizations 64 grants 2,000,000 Northgate Boulevard Nonprofit Support The Health Communication Research Institute 560,350 Northgate Boulevard Small Business Recovery (NBSBR) Program Sacramento Hispanic Chamber of Commerce Foundation 2,000,000 R Street Partnership R Street Partnership 180,000
Subtotal American Rescue Plan Fund 14,285,785$
Economic Gardening Economic Gardening Organizations 349,900 Subtotal Innovation & Growth Fund 349,900$
CMC Program Expansion Project California Mobility Center 1,000,000 Economic Development Opportunity Center La Familia Counseling Center, Inc. 2,000,000 SacBuildsSkills2Careers Youth Workforce Development Organizations 321,834 Subtotal Measure U Fund 3,321,834$
Economic Mobility Ambassadors Economic Mobility Ambassadors and Businesses 95,000 Sacramento LGBT Community Center Improvements Pride Properties, Inc. 1,000,000 #SacYouthWorks: Futures - Youth & Family Underage,
Cannabis Prevention, and Outreach
PRO Youth and Families, Inc. 718,101
Subtotal Operating Grants 1,813,101$
City of Sacramento Railyeards Rehabilitation Downtown Railyard Venture 30,000,000 Planting Justice Tree Nursery Planting Justice Tree Nursery 2,000,000 Subtotal Other Capital Grants 32,000,000$
City Manager Total 51,770,620$
Community Response
ARPA Shree Enterprises, LLC 225,000
Shree Enterprises, LLC 950,000
Siyaram Hotels, LLC 99,998
Siyaram Hotels, LLC 350,000
Sky Riders 350,000
Step Up on Second Street 701,196
Emergency Shelter Response First Step Communities - Safegrounds 2,240,290 Outreach Services Capitol Station dba the River District 249,475 Women and Family Shelter Project WEAVE 300,000
Subtotal American Rescue Plan Fund 5,465,959$
Community Response Sacramento Regional Coalition to end Homelessness 100,000 Homeless Housing, Assistance and Prevention II (HHAP II) Waking the Village 30,000 Subtotal General Fund 130,000$
Women and Family Shelter Project City of Refuge 1,459,410 Saint John's Program for Real Change 101,827

Subtotal Measure U Fund 1,561,237$
Congregate Sheltering Program Shelter Inc 3,447,202
Homeless Housing, Assistance and Prevention (HHAP) Wind Youth Services 100,228 Homeless Housing, Assistance and Prevention II (HHAP II) Sacramento LGBT Community Center 387,699 Homeless Housing, Assistance and Prevention III (HHAP III) Arden Acres 150,000 Subtotal Operating Grants 4,085,129$
Community Response Total 11,242,325$
Department
132
FY2023/24 Proposed Budget

Schedule 7B (continued)
City Grant Awards

Grant Program Name Grantee Amount Awarded
Convention and Cultural Services
ARPA Sacramento Convention and Visitors Bureau 1,500,000 Subtotal American Rescue Plan Fund 1,500,000$
Cultural Arts Awards (CAA) ARTners 5,317
Atrium 916 18,113
B St Theater for Children 34,162
Balance Dance Project 5,672
Big Idea Theatre 5,989
Brazilian Center for Cultural Exchange of Sacramento 6,166 Broad Room Creative Collective 6,040
Broadway Sacramento 21,717
Calidanza Dance Company 16,482
California Lawyers for the Arts 19,031
Camellia Symphony Association 5,000
Capital Public Radio 21,717
Capital Stage Company 21,274
Casa de Brazilian Folkloric Arts 14,867
Celebration Arts 6,541
Chalk It Up to Sacramento 16,267
Crocker Art Museum Association 34,162
DBA Arts, Inc 5,000
DDSO 8,302
Department of Sound 17,718
Empire Arts Collective 5,582
Fairytale Town 8,302
Folsom Symphony, Inc 7,330
GIRLS Rock Sacramento 15,156
Hmong Youth and Parents United 17,083
Lu Mien Community Services 6,040
KVIE 17,711
Latino Center of Art and Culture 28,256
Lenaea High School Theatre Festival 5,000
LOAA Foundation 17,415
Los Rios Community College District AKA Sacramento
Shakespeare Festival 5,000
Mandarins of Sacramento, Inc 32,771
National Academic Youth Corp dba Sojourner Truth African Heritage Museum 19,003
Natomas Arts and Education Foundation 6,941
Nu Art Education, Inc DBA NorCal School of the Arts 17,562 Rincones de mi Tierra Grupo Folklorico 15,377
Sacramento Mens Chorus 6,834
Viewpoint Photographic Art Center 5,000
Voices of California, CA Delta Chapter of BHS 5,000
916 Ink 20,480
Subtotal G
eneral Fund 551,379$
Cultural Arts Awards (CAA) Sacramento Ballet 21,717
Sacramento Film + Media Grants Emend the Mass Media Group 2,500 Emend the Mass Media Group 5,000
Goodsides LLC 5,000
Leslie Silver Enterprises dba Madpix Films 5,000
Marcus Johnson 5,000
Melissa Muganzo-Murphy dba Muganzo Ent. 10,000
Melissa Muganzo-Murphy dba Muganzo Ent. 2,500
On Native Ground 5,000
Robert Young dba Digital Curanderas 5,000
Ryan Graham dba Orchard Fort 5,000
Sacramento Children's Chorus 6,336
Sacramento Children's Museum 19,478
Sacramento Choral Society and Orchestra 5,000
Sacramento Comedy Spot 18,325
Sacramento Fine Arts Center 5,000
Sacramento French Cultural Society DBA Sacramento French Film Festival 6,141
Sacramento LGBT Community Center 25,870
Sacramento Master Singers 6,261
Sacramento Regional Assoc of Malayalees 5,000
Sacramento Theatre Company 8,302
Sacramento Valley Chapter of Sweet Adelines International 7,481 Sacramento Valley Spark 5,844
Sacramento Youth Symphony 19,013
Sisters of NIA, Incorporated 5,936
Sol Collective (Freedom Bound Center, Inc) 32,758
St. HOPE Academy 26,992
Department
133
FY2023/24 Proposed Budget

Schedule 7B (continued)
City Grant Awards

Grant Program Name Grantee Amount Awarded
Convention and Cultural Services (continued)
Strauss Festival of Elk Grove, Inc. 5,000
Stuart Harmon dba Continental Drift 5,000
Studio T Urban Dance Academy (3 Point 0) 18,948
Studios for the Peforming Arts (CLARA) 30,439
The Library of MusicLandria 16,338
The Regents of the University of California 29,088
University Enterprises, Inc DBA Sacramento State Sponsored Research 5,000
Verge Center for the Arts 20,203
Wellspring Women's Center 16,601
Women's Wisdom Art 15,453
Subtotal Measure U Fund 437,526$
Seeding Creativity Aaron Jay Cardoza 10,000
Alexandria Griffith 10,000
Andreas Tillman Jr. dba Dre-T 10,000
Andri Tambunan 10,000
Antonio Smith 10,000
Aster K . Foley dba Dead Penny Press 10,000
Brenden Lowe 10,000
Brianna James 10,000
Carlos Rene Ayala 10,000
Christopher J. Lango 10,000
Citalin Rodriguez 10,000
Daniel Herrera 10,000
Deborah Pittman 10,000
Dewayne Ewing Jr. dba Consci8us 10,000
Douglas Winter dba Doug Winter Studio 10,000
Emily Perez dba Macondo Music 10,000
Eric Tagg 10,000
Faith J. McKinnie 10,000
Franceska Gamez 10,000
Jayda Irene Preyer dba Jayda Irene 10,000
Jennifer Ann Merrill dba Jennifer 10,000
Jennifer Packer dba Jennifer Lugris 10,000
Jermaine Tilson 10,000
Jodi M. Connelly 10,000
Kachiside Madu dba Make It Madu Images 10,000
Khanstoshea Johnson-Zingapan 10,000
Kimberly Garza 10,000
Laurelin Gilmore 10,000
Lawrence M. Williams 10,000
Lisa M. Daniels 10,000
Matthew Osivwemu dba Dare 2 Be Diffirent 10,000
Meghna Bhat 10,000
Miguel Angel Mayagoytia Sosa 10,000
Mone't Ha-Sidi 10,000
Muzi L. Ro
we 10,000
Nancy Ledesma dba Ramona Garcia 10,000
Natachi Mez 10,000
Nicole C. Limon 10,000
Rieko Kotoku 10,000
Salvin Chahal 10,000
Sepncer K. Tsang 10,000
Stephanie Yu dba Steph Rue 10,000
Sunny Eselekhomhen 10,000
Tamara M. Knox 10,000
Venetia-Renee L. James 10,000
Subtotal Operating Grants 450,000$
Convention and Cultural Services Total 2,938,905$
Police
Evidence-Based Community Violence Interruption, Disruption and Suppression (EBCVIDS) Grant Program Brother 2 Brother Mentoring 249,999 City of Refuge 25,000
Helping Our People Eat 249,999
Impact Sacramento 25,000
Neighborhood Wellness Foundation 25,000
Rose Family Creative Empowerment Center 25,000
Self Awareness & Recovery 100,000
Voice of the Youth 200,000
Department
134
FY2023/24 Proposed Budget

Schedule 7B (continued)
City Grant Awards

Grant Program Name Grantee Amount Awarded
Police (continued)
Evidence-Based Community Violence Intervention (EBCVI) Grant Program Academics 4 Athletes 56,250 California Wraparound 56,250
Hawk Institute 75,000
Helping Our People Eat 56,250
Hooked on Fishing, Not on Violence 56,250
Neighborhood Wellness Foundation 75,000
Sacramento County of Education 50,000
Sacramento Youth Center 75,000
Subtotal American Rescue Plan Fund 1,399,998$
Gang Prevention and Intervention Taskforce (GPIT) Academics 4 Athletes 83,330 Brother 2 Brother 249,990
Help Our People Eat 83,333
Impact Sac 249,999
Neighborhood Wellness Foundation 249,990
Rose Family Creative Empowerment Center 83,333
Subtotal Measure U Fund 999,975$
Gang Violence Suppression Another Choice, Another Chance 35,000 Brother to Brother Mentoring 10,000
La Familia Counseling Center 10,000
Sacramento City Unified School District 75,000
Sacramento County District Attorney's Office 70,000
Sacramento County Probation Department 20,000
Urban Area Security Initiative City of Auburn 8,000
City of Folsom 165,000
City of Lincoln 6,500
City of Rocklin 16,000
City of Roseville 438,940
City of West Sacramento 273,500
City of Woodland 33,500
County of Placer 142,500
County of Sacramento 650,000
Foresthill Fire Protection District 5,000
Newcastle Fire Protection District 2,000
Penryn Fire Protection District 2,000
Placer Hills Fire Protection District 3,800
Sacramento Metropolitan Fire District 105,000
South Placer Fire Protection District 12,000
Subtotal Operating Grants 2,083,740$
Police Total 4,483,713$
Youth, Parks & Community Enrichment
Community Reinvestment (SB 170) Alchemist CDC OBO Community Connections 95820 Project 50,000 Gender He
alth Center 250,000
Grant Drum Line Music Association Program 75,000
NeighborWorks Sacramento 250,000
Our Daughter’s Destiny 70,000
Pesticide Action Network North America OBO International Garden of Many Colors 50,000
Sacramento City College 1,000,000
Sacramento Girls on the Run 100,000
Sacramento Hispanic Chamber of Commerce 150,000
SCUSD - Hiram Johnson High School 1,000,000
Sojourner Truth Museum 125,000
Studio T Arts Urban Dance Academy 500,000
UC Davis Childcare Center 4,380,000
Yes2Kollege Educational Resources Inc 150,000
Yisrael Family Farms 50,000
Lower American River Parkway Public Access Improvements (SB 170) Sacramento County 3,500,000 Sacramento Regional Conservation Corps 100,000
Sacramento Valley Conservancy 3,000,000
Subtotal Other Capital Grants 14,800,000$
Ann Land & Bertha Henschel Memorial Fund Grant Acc Senior Services 3,600 Alchemist CDC 8,000
Community Against Sexual Harm 3,600
First Step Communities 10,000
Meals On Wheels By Acc 9,000
My Sister's House 8,000
Reimagine Mack Road Foundation 7,680
Repairing The Breach Neighborhood Project 4,500
River City Food Bank 10,000
Roberts Family Development Center 3,400
Department
135
FY2023/24 Proposed Budget

Schedule 7B (continued)
City Grant Awards

Grant Program Name Grantee Amount Awarded
Youth, Parks, & Community Enrichment (continued)
Sacramento LGBT Community Center 3,640
Sacramento Loaves & Fishes 4,500
Sacramento Regional Family Justice Center 6,000
South Sacramento Christian Center 5,760
South Sacramento Interfaith Partnership Food Closet 8,000 Stanford Settlement Neighborhood Center 8,000
The Salvation Army 5,200
Weave, Inc. 10,000
Wellspring Women's Center 6,000
Women's Civic Improvement Club 3,480
Women's Empowerment 10,000
Subtotal Ann Land/Berthal Henschel Fund 138,360$
Youth, Parks & Community EnchrichmentTotal 14,938,360$
Grand Total 85,373,923$
Department
136
FY2023/24 Proposed Budget

Schedule 8
Reclassification Requests (in Full-Time Equivalents)
all requests are subject to Human Resources approval

The City is currently undergoing a citywide classification and compensation study as approved by Council. Until this is completed individual reclassification requests are not being considered. The following summarizes the next steps in this study.

 Citywide Classification and Compensation Study
The Human Resources Department is authorized to work with the Finance Department and all represented unions to review existing job classifications and compensation structures for positions in the City to ensure they are internally equitable and externally competitive.

137
FY2023/24 Proposed Budget

Schedule 9
Multi-year Operating Projects (MYOPs)
This section provides an overview of FY2023/24 appropriations to existing and new MYOPs. Appropriations will be transferred to the respective project July 1, 2023. The information is a general summary of MYOPs in each department by fund, project number, project name, budget as of March 2023, balance as of March 2023, and FY2023/24 funding amount.

Department
Fund
Project
Numer
Project Name Total Project
Budget as of
March 2023
Estimated
Balance as of
March 2023
FY2023/24
Funding
City Clerk's Office
General Fund I04000100 Commission Stipends - - 50,850 Measure U I04000100 Commission Stipends - - 33,900 Water I04000100 Commission Stipends - - 3,500 New Measure A Streetscape, Safety, Pedestrian &
Bicycling Fund I04000100 Commission Stipends - - 5,500 - - 93,750 City Manager's Office
General Fund I06420000 Cannabis Policy and Enforcement 47,136,116 32,274,685 2,018,300 Innovation and Growth E18000400 Powerhouse Science Center 3,000,000 163,628 400,000 I02001500 City Hall Tech Program 625,000 354,803 125,000 I02180100 Centene Emp Incentive 10,800,000 10,800,000 2,700,000 I02180400 Forgivable Loan 2,301,000 2,267,833 500,000 I02180900 Inclusive Economic Development 1,000,000 699,000 1,000,000 I02182000 Financial Empowerment 685,000 19,991 450,000 I02184000 Sacramento Economic Gardening 2,022,000 557,310 813,750 I18000100 RAILS Grant Program 5,970,709 3,687,714 1,000,000 I22000100 Specific Plans - - 132,000 I80020500 Major League Soccer Stadium 2,100,000 951,102 300,000 Measure U I01000300 Thousand Strong 1,911,954 1,284,214 750,000 I02180910 Economic Development and Youth Priorities 10,350,000 7,775,465 300,000 City Manager's Office Total 87,901,779 60,835,744 10,489,050 Community Development
Development Services I22000000 General Plan Update 18,974,122 7,510,879 2,266,000 1 General Fund I22000000 General Plan Update 726,578 337,445 73,000 I06000999 Fleet Acquisitions - - 83,630 Measure U I06000999 Fleet Acquisitions - - 321,500 I22000100 Specific Plans 4,635,256 2,475,872 1,200,000 Special Program Donations I13000400 F.O.C.A.S. 3,705,706 761,440 250,000 1 Community Development Total 28,041,662 11,085,636 4,194,130 Community Response
Measure U I02000200 Homeless Housing Initiative 22,796,022 3,935,623 2,146,000 I23000100 Community Outreach 15,826,738 8,383,029 9,222,213 Community Response Total 38,622,760 12,318,652 11,368,213 Convention and Cultural Services
Community Center I02181100 Creative Edge - - 500,000 Innovation and Growth I02181100 Creative Edge - - 1,000,000 Measure U I17000700 Cultural Arts Awards 114,000 114,000 114,000 Convention and Cultural Services Total 114,000 114,000 1,614,000 Finance
Downtown Impact Fee I06132110 Central City Fee District 125,000 25,000 100,000 NNFP Drainage Fee I22200100 N Natomas Admin Control 284,940 50,000 25,000 I22200600 Basin 6 Drainage 3,438,343 755,701 300,000 NNFP Pub Land Acquisition I22200100 N Natomas Admin Control 546,313 42,313 50,000 NNFP Public Facilities Fee I22200100 N Natomas Admin Control 1,911,423 115,331 200,000 Railyards Impact Fee I06132100 Railyards Fee District 75,000 45,111 50,000 River District Impact Fee I06132120 River District Fee District 75,000 38,033 25,000 Finance Total 6,456,019 1,071,489 750,000 Fire
General Fund I06000999 Fleet Acquisitions - - 1,664,500 Fire Total - - 1,664,500 Human Resources
Risk E08000100 Driver Training Program 1,739,000 612,476 100,000 1 I06000999 Fleet Acquisitions - - 133,560 Human Resources Total 1,739,000 612,476 233,560 Information Technology
General Fund I07000900 Webgrant Restructuring Program 1,149,558 76,731 260,000 Measure U I07001100 Digital Equity 200,000 - 200,000 Information Technology Total 1,349,558 76,731 460,000 1These are reimbursable projects and have corresponding revenue budgets. 2New MYOPs
138
FY2023/24 Proposed Budget

Schedule 9 (continued)
Multi-year Operating Projects (MYOPs)

Department
Fund
Project
Numer
Project Name Total Project
Budget as of
March 2023
Estimated
Balance as of
March 2023
FY2023/24
Funding
Police
General Fund I06000999 Fleet Acquisitions 5,171,699
I11002300 Police Observation Devices (PODs) 174,786 30,677 30,999 I11002400 Police Impact Teams 3,408,220 666,113 583,664 I11002500 Police ShotSpotter Gunshot Detection System 767,200 21,833 320,892 I11002700 Police Information Technology Infrastructure 946,562 739,800 482,747 Measure U I11003000 Gang Prevention and Intervention 1,411,696 406,678 1,398,567 I11003100 Family and Youth Investments 1,300,000 56,000 1,300,000 I11003200 OVP Disruption, Response, Intervention & Prev e - - 1,000,000 2 Police Total 8,008,464 1,921,100 10,288,568 Public Works
General Fund I06000999 Fleet Acquisitions - - 386,950 I13000100 Electrical Safety Program 730,259 42 100,000 I15230200 Disab ility Advisory Commission 19,200 359 25,050 Measure U I15200200 Illegal Dumping 3,142,219 188,219 970,000 I15220300 Sustainab ility Program (PW) 273,986 127,789 300,000 Parking I15001000 SVS Operations and Management 1,084,000 178,568 221,000 I15001211 City of Festivals Program 1,389,000 109,775 100,000 Solid Waste I06000999 Fleet Acquisitions - - 6,975,000 I14120200 Solid Waste Outreach 3,468,834 973,800 200,000 I14120500 Solid Waste Container Replacement 15,693,245 284,839 1,800,000 Gas Tax I06000999 Fleet Acquisitions - - 2,975,000 I15221700 Transportation Planning 500,000 411,843 250,000 Landscaping & Lighting I06000999 Fleet Acquisitions - - 607,000 Fleet I06000999 Fleet Acquisitions - - 50,000 Public Works Total 26,300,743 2,275,234 14,960,000 Utilities
Storm Drainage I14100000 Storm Drainage Planning and Management 18,014,836 1,919,886 1,885,261 Storm Drainage Property Fee I14100000 Storm Drainage Planning and Management 1,250,000 1,250,000 1,700,000 Wastewater I06000999 Fleet Acquisitions - - 1,445,000 I14600000 Wastewater Planning and Management 14,396,253 5,561,465 1,667,077 Water I06000999 Fleet Acquisitions - - 645,000 I14400000 Water Planning and Management 28,061,689 5,154,115 2,825,282 Utilities Total 61,722,778 13,885,466 10,167,620 Youth, Parks, and Community Enrichment
General Fund I19101100 Oak Park Clinic Building Maintenance 210,854 210,854 56,726 I19101200 Cesar C
havez Park Maintenance 81,141 75,948 24,764 Measure U I06000999 Fleet Acquisitions - - 1,833,345 I19143000 Youth Sports Field Permit Program 570,000 570,000 200,000 Youth, Parks, and Community Enrichment Total 861,995 856,802 2,114,835 Citywide and Community Support
ARPA Reinvestment Fund I02000200 Homeless Housing Initiative - - 223,710 I11002800 Public Records Staffing 2,258,754 1,162,283 1,413,036 I11002900 2021 CHP Grant 2,264,059 2,247,520 1,777,703 I21000400 Building Compliance Unit Night Team 1,018,353 633,507 698,705 I21008500 Animal Services for Homeless Response 753,230 580,105 (223,710) General Fund I80000100 Measure L Youth Funding - - 8,786,500 2 I80310000 Citywide Litigation Project 2,538,686 1,573,268 500,000 Measure U E18000400 Powerhouse Science Center 600,000 600,000 600,000 I02181400 Fare Free Transit for Youth 2,750,000 - 1,000,000 I14130100 Ut ility Rate Assistance Program 4,772,720 1,510,381 5,300,000 I15220100 SPLA Maintenance Program 800,000 365,653 400,000 Citywide and Community Support Total 17,755,802 8,672,716 20,475,944 Grand Total 278,760,560$ 113,612,046$ 87,260,170$ 1These are reimbursable projects and have corresponding revenue budgets. 2New MYOPs
139
FY2023/24 Proposed Budget

Schedule 10
Five-Year Projected Net Debt Service by Fund (in 000s)

This section provides the five-year projected Net Debt Service by fund, which is Debt Service expenses less revenues and offsets.

Fund Type FY2023/24 FY 2024/25 FY2025/26 FY2026/27 FY2027/28 Governmental Funds
General Fund $ 16,951 $ 16,578 $ 16,567 $ 16,631 $ 16,858 Subtotal Governmental Funds 16, 951 16,578 16,567 16,631 16,858 E nterprise Funds
Community Center 19,219 19,219 19,218 19,220 19,220
Parking 10,077 9,781 9,577 9,680 8,783
Solid Waste 1,677 1,674 1,667 1,667 1,668
Storm Drainage 235 233 232 233 233
Wastew ater 3,911 3,910 3,913 3,911 3,909
Water 36,016 36,004 35,996 35,984 35,977
Subtotal E nterprise Funds 71,135 70,821 70,604 70,694 69,791 Internal Service Funds
Fleet Management 46 45 45 45 45
Worker's Compensation Fund (60) (54) (48) (42) (36)
Subtotal Internal Service Funds (14) (9) (3) 3 9
Other Governmental Funds
2006 CIRBs, Series B (CRCIP) - 312 312 241 -
2015 Golden 1 Center Revenue Bonds 406 460 404 47 677
Golf 435 435 435 435 435
Innovation and Grow th 1,100 1,100 1,100 1,100 1,100
Marina 1,182 1,207 1,257 1,257 1,257
NNFP Public Facilities Fee 587 573 577 579 582
NNFP Reg Park Land Acquisition 846 825 831 834 838
Sacramento TID 2,740 2,7 42 2,742 2,739 2,743
Subtotal Other Governmental Funds 7,297 7,655 7,658 7,232 7,633 Total $ 95,369 $ 95,045 $ 94,825 $ 94,560 $ 94,291 140
FY2023/24 Proposed Budget

7 SECTION - 7
Mayor and City Council
141
FY2023/24 Proposed Budget

142
FY2023/24 Proposed Budget

Mayor and City Council
The Mayor and City Council, consisting of the Mayor and eight Councilmembers, are the policy-making body for the City of Sacramento. The goal of the Council is to govern the City in a manner that is both responsive to the needs and concerns of City residents and financially sound.

The Mayor and City Council (Council) pass City ordinances, provide administrative direction and authority by resolution, appr ove new programs, and approve the annual budget. The Council acts as Sacramento’s Financing Authority, Housing Authority, Public Financing Authority, and Redevelopment Agency Successor Agency. They also appoint the City’s Charter Officers (City Attorney, City Auditor, City Clerk, City Manager, and City Treasurer) and the Director of the Office of Public Safety Accountability.

 Mayor and City Council: The governing body of the City. The Mayor is elected by all city voters and Councilmembers are
elected by voters in each specific Council District.

The Mayor appoints Councilmembers to serve on
various regional boards, commissions, and joint
powers authorities.

 Office of Public Safety
Accountability:

Provides an independent review of complaints
involving police and fire employees as a means
of furthering relationships between the City’s
public safet
y departments and the community.

PROGRAMS/SERVICE HIGHLIGHTS

 Provide work experience opportunities in the Mayor’s and City Council Offices to high school and college youth through the City’s volunteer internship program, Thousand Strong program, and various university and fellowship programs.  Sponsor and/or organize community ev ents such as movie nights, musical entertainment, holiday celebrations, cultural celebrations, community resources, and farmer’s markets to enhance the communities’ experience of living in the City.  Financially support community organizations t hat provide services to City residents in the areas of racial equity, health and wellness, homelessness, teen learning, arts and culture, and youth sports.
143
FY2023/24 Proposed Budget

 Hold ongoing community meetings throughout the City to share information and gather ideas that support and connect residents to one another and local government.
 Through the ceremonial resolution proce ss, recognize community-oriented civic celebrations, causes, issues, companies , organizations, and individual residents that have achieved notable m ilestones or made c ontributions to the city and/or community. Also, honor and recognize the passing of residents.  Issue Keys to the City via the Mayor’s Office for residents reaching the 100-year milestone birthday or who have demonstr ated remarkable service to the City throughout their life.

DEPARTMENT EFFICIENCIES

 Utilizing the 311 system and integrated c onstituent management system to support constituents in tracking neighborhood complaints and requests for service.

OBJECTIVES FOR FY2023/24

 Continue evaluating and incorporating new and existing information technology tools to achieve sustainable services , increase transpar ency, and strengthen community engagement.
 Continue using websites and social medi a to share information and to communicate in a timely fashion with the community on issues of interest and impact.  Continue providing work experience opportu nities (internships) to college and high school students focused on building meaningful skill sets that will aid the student in obtaining full-time employment.
 Continue using electronic communication s whenever possible to limit the use of printed materials. Printed materials will be made available to constituent communities, as necessary.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Mayor/Council Increase Mayor/Council District funding by $50,000 each to provide resources to address neighborhood,
community, and business needs.

General - 450,000 - Total Change $ - $ 450,000 - 144
FY2023/24 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

Change
Mayor/Council FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended* Proposed Proposed/Amended Employee Services $ 6,132,981 $ 6,626,779 $ 6,517,407 $ 6,517,407 $ 7,253,160 $ 735,753 Other Services and Supplies 397,527 600,868 1,007,817 2,882,358 827,388 (2,054,970) City Property 3,681 17,704 2,000 2,000 2,000 -
Multi-Year Operating Projects - - 4,950 4,950 4,950 -
L a b o r a n d S u p p l y O f f s e t ( 1 2 9 , 4 2 3 ) ( 4 3 , 4 4 3 )--- - Total $ 6,404,766 $ 7,201,907 $ 7,532,174 $ 9,406,715 $ 8,087,498 $ (1,319,217) Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended* Proposed Proposed/Amended General Fund $ 4,961,591 $ 4,927,365 $ 5,080,035 $ 6,954,576 $ 5,642,077 $ (1,312,499) Interdepartmental Service 1,443,175 1,43 3,202 1,503,943 1,503,943 1,477,587 (26,356) Measure U - 841,340 948,196 948,196 967,834 19,638
Total $ 6,404,766 $ 7,201,907 $ 7,532,174 $ 9,406,715 $ 8,087,498 $ (1,319,217) *The Amended FY2022/23 Budget includes carryover of unspent FY2021/22 Budget and/or transfers to capital projects. *The Amended FY2022/23 Budget includes carryover of unspent FY2021/22 Budget and/or transfers to capital projects.

Change
Mayor/Council FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended* Proposed Proposed/Amended Office of the Mayor $ 1,660,805 $ 1,885,366 $ 1,847,639 $ 2,073,914 $ 1,914,776 $ (159,138) City Council District 1 467,219 544,439 271,353 572,735 650,611 77,876 City Council District 2 460,518 454,544 592,042 849,420 650,611 (198,809) City Council District 3 516,514 615,343 271,353 391,273 650,611 259,338 City Council District 4 529,676 515,195 592,042 787,879 650,611 (137,268) City Council District 5 519,620 641,304 271,353 383,563 650,611 267,048 City Council District 6 501,257 664,941 271,353 791,451 650,611 (140,840) City Council District 7 472,769 546,331 592,042 861,586 650,611 (210,975) City Council District 8 577,444 493,104 592,042 784,629 650,611 (134,018) Mayor Council Operations Division - - 1,282,759 962,069 - (962,069) Off ice of Public Safety Accountability Division 698,944 841,340 948,196 948,196 967,834 19,638 Total $ 6,404,766 $ 7,201,907 $ 7,532,174 $ 9,406,715 $ 8,087,498 $ (1,319,217) *The Amended FY2022/23 Budget includes carryover of unspent FY2021/22 Budget and/or transfers to capital projects.

Change
Mayor/Council FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Mayor 12.00 12.00 12.00 15.00 15.00 -
City Council District 1 2.50 2.50 2.50 2.50 2.50 -
City Council District 2 2.50 2.50 2.50 2.50 2.50 -
City Council District 3 2.50 2.50 2.50 2.50 2.50 -
City Council District 4 2.50 2.50 2.50 2.50 2.50 -
City Council District 5 2.50 2.50 2.50 2.50 2.50 -
City Council District 6 2.50 2.50 2.50 2.50 2.50 -
City Council District 7 2.50 2.50 2.50 2.50 2.50 -
City Council District 8 2.50 2.50 2.50 2.50 2.50 -
Off ice of Public Safety Accountability Division 5.00 5.00 5.00 5.00 5.00 - Total 37.00 37.00 37.00 40.00 40.00 -
145
FY2023/24 Proposed Budget

MEASURE U
The following chart summarizes the Office’s Measure U programs.

Funding Category Program Name FTE
FY2023/24
Proposed
Community Response
Operations Office of Public Safety Accountability 5.00 962,884 Miscellaneous
MYOP Commission Stipends - 4,950
Grand Total 5.00 $ 967,834
146
FY2023/24 Proposed Budget

8 SECTION - 8
City Attorney
147
FY2023/24 Proposed Budget

148
FY2023/24 Proposed Budget

City Attorney
The mission of the Sacramento City Attorney’s Office is to provide the highest quality legal services to the City of Sacramento.

The Office of the City Attorney serves as legal counsel to the City Council, City Officers and Department staff, boards and commissions as well as the Administration, Investment and Fiscal Management Board, Sa cramento City Financing Auth ority, and Sacramento Regional Arts Facilities Financin g Authority. The Office prov ides legal representation in criminal, civil and administrative litigat ion, renders advice and counsel, and prepares ordinances, resolutions, contracts, opinions, and other legal docum ents for the City and its related entities. The City Attorney’s Office is organized into four operational divisions and an administration division.

 Administration:

Develops and implements office policies and
procedures; monitors over all office performance;
prepares and administers the office budget; develops
and implements education and training; handles all
personnel hiring, evaluati on, and other personnel
matters; assembles and analyzes office productivity
data, including the production of an annual report; and engages in long-range planning.

 General Counsel &
Advisory Division:

Provides advisory and tr ansactional advice and
support to charter offices and city departments on all
aspects of municipal law including: Brown Act; Public
Records Act; CEQA and National Environmental
Policy Act (NEPA); water law; propositions 26 and
218; public bidding, construction and procurement;
contract negotiation, dra fting and review; prevailing
wages; transportation modes; real estate
procurement, conveyance and leasing; solid waste
disposal; landfill regulation; and various other areas of municipal law.

 Litigation Division:

Defends and prosecutes ci vil litigation cases on
behalf of the City and its officers and employees
acting in the course and scope of employment; and
provides legal support to Risk Management.

149
FY2023/24 Proposed Budget

PROGRAMS/SERVICE HIGHLIGHTS

General Counsel & Advisory
 Aided in the drafting of a first-in-the- nation ordinance creating a youth liaison to City Council, to enhance youth participation at Council meetings.  Assisted City staff (pl anning division and utilities department) in drafting ordinances for alternate water systems (dual plumbing) an d prohibiting gas infrastructure for certain new buildings of three stories or less.

 Assisted the planning division and build ing division in enac ting an ordinance making local amendments to the 2022 Ca lifornia Green Standar ds Code that prohibited gas infrastructure for certain new buildings three stories or less.  Advised the Community Development De partment on the drafting of the 2040 General Plan (scheduled for adoption in 2023).

 Advised on the implement ation of new housing laws on topics including accessory dwelling units, ministerial housing approvals, urban lot splits, and issues raised under the Housing Accountability Act and advised on several housing projects that will bring much needed housing to the City, including Joshua’s House, which will provide a place to stay and comfort care to terminally ill indi viduals experiencing homelessness.

Litigation & Human Resources
 Led the Officer Involved Shooting Response Team, which responds to these critical incidents to perform real-time information gathering and early liability assessment.
 Khoua Vang v. City of Sacramento : Plaintiffs alleged civ il rights violations and wrongful death in this officer-involved shooting case. Senior Deputy City Attorneys Sean Richmond and Matthew Day tried the case in Federal Court. The result was a hung jury heavily favoring the City.
 Community
Advocacy & Public
Safety Division:

 Strategic Projects
& Research
Division:

Works collaboratively with City departments on code
enforcement, social nuisance abatement, public safety
issues, including prosecuting code violations through
administrative, civil, or criminal proceedings, and social nuisances through civil liti gation and training, and
advising staff on enforcement matters.

Provides strategic suppor t to the City Council’s
policymaking function by providing legal advice and
response on multi-departmental projects and Council
initiatives, including i ssues of homelessness,
economic development, cannabis regulations, and
emergency management.

150
FY2023/24 Proposed Budget

 Represented the City in many discipline arbitrations involving many Departments and issues ranging from terminations and suspensions to compensation and seniority issues.
 Angela Updegraff v. City of Sacramento: This case involved a tree branch that fell and struck Plaintiff, causing significant injuries. Senior Deputy City Attorneys Chance Trimm and Matthew Day tried the case in Superior Court and obtained a defense verdict.
 Curtis Luckey v. City of Sacramento : Plaintiff alleged he was falsely arrested by the Sacramento Police Department. Division attorneys filed a motion for summary judgment which the Superior Court granted, resulting in judgment in favor of the City.

Community Advocacy & Public Safety
 Continued to close illegal residentia l cannabis grow houses and collect a substantial amount of administrative and civil penalties.  Led the Justice for Neighbors team to abate social and physical nuisance properties throughout the City.
 Assisted the Department of Community Response and the City Manager’s Office with producing the Citywide Homelessness Response Protocols establishing a priority ranking system to address encampments and criteria for removal.  Assisted the Police Depar tment with training and pro ducing confidential police personnel records pursuant to Senate Bi ll 1421 and Assembly Bill 748 state disclosure laws.
 Assisted the Police Departm ent with training and guidance on petitioning the courts for emergency gun violence restraining orders against persons posing a danger to self or others.

Strategic Projects & Research
 Emergency Shelter and Enforcement Ac t of 2022 (ESEA). Drafted and advised on the voter approved ESEA, as well as t he related homelessness partnership agreement between the City and County of Sacrament o, and the City’s and County’s collaboration protocol; all of which commi t the City and County to work together to address the local homelessness crisis, with a focus on unified outreach, enrollment of services, mental health services, and temporary and permanent housing.
 Railyards Community Facilities District (C FD) Special Tax Bonds, Series 2022.

Represented the City in the $30 million b ond issuance for the Railyards CFD, which included the review and revision of the master indent ure, supplement indenture, bond purchase agreem ent, and the preliminary of ficial statement. The Bond proceeds are expected to be used for the acquisition and construction of a storm drainage pump station and outfall fac ility as well as other water and storm 151
FY2023/24 Proposed Budget

drain improvements, roadw ays and traffic improvem ents, and landscaping and park improvements.
 La Familia Opportunity Center Grant Ag reement. Drafted a $2 million grant agreement between the city and La Familia Counseling Center , Inc., for the acquisition and construction of the La Familia Opportunity Center. The Center will serve as a community hub and provide critical services and resources to some of the city’s most disadvantaged neighborhoods.
 Public Benefits and Mixed Income Housing Policy. Assist ed with the adoption of the policy and the completion of the first policy project with CT Gateway LLC at 3400-3401 Stockton Blvd. The project invo lved a $15 million in vestment for 230 units, with 161 affordable housing units, including low- and moderate-income units.

This project contributes to the City’s efforts to reduce homelessness by increasing the number of affordable housing units in the city and by utilizing non-housing city funds to create a public benefits fund to pr oduce more projects that support the community.
 Railyards Infrastructure Grant Project Delivery Agreement. Drafted a project delivery agreement between the city and the master developer of the Railyards project, Downtown Railyard Venture, LLC, under which the city will provide up to $30 million in State-allocated funds fo r the design and construction of public infrastructure that will spur development in the Railyards.

DEPARTMENT EFFICIENCIES

 Implemented return to work plan formu lated last FY using current COVID-19 protocols and health orders, and allowing for flexible staf f hours, thus minimizing impact on City Hall resources.
 Incorporating new office space CH4131 to existing City Attorney suite, minimizing costs by using carryover budget, utilizing existing furnishings and electronic equipment where possible.
 Currently reducing hard copy materials c ontained in the City Attorney’s resource library and converting hard copy publications to electronic where possible, to better facilitate the new hybrid work environment, and reduce staff resources needed for manual publication updates.
 Cooperatively sourced e-discovery softwar e with the City Clerk and IT Department to allow for efficient handling of PRA documents and emails, and case related documents, resulting in greater accu racy in data and record management, and legal compliance.

OBJECTIVES FOR FY2023/24

 Follow through with process put in plac e to enhance the Office Diversity, Equity and Inclusion goals designed to improve internal commitment for recruitment and hiring, outreach to the community, and operations within the City Attorney’s Office. 152
FY2023/24 Proposed Budget

 Continue to advise the Council and Cit y departments regarding recent changes to cannabis laws and regulations, and the ongoing development of the Cannabis Opportunity Reinvestment and Equity program.
 Assist the Council and Cit y Manager with interpretation and implementation of recently passed Measure L (Sacramento Children & Youth Health and Safety Act); Measure M (Redistricting); Measure N (Sacramento Tourism and Economic Development Facilities); and Measure O (Emergency Shelter Act).  Assist the Council and City Manager with issues related to the cancellation of the statewide emergency relat ed to COVID-19, and citywi de impacts including the health and safety of employees and citi zens, economic recovery, access to available funding, and return-to-work protocols.
 Provide citywide training through City U courses to include Public Records Act, public contracting, First Amendment issues, and the Brown Act.

BUDGET AND POSITION CHANGES

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
City Attorney Increase service and supplies budget to cover existing operational costs and other needed ongoing items.

General - 212,858 - City Attorney Increase for Officer Involved Shooting standby pay per Sacramento City Exempt Employees Association
labor agreement.

General - 23,725 - Total Change $ - $ 236,583 - Change
City Attorney FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 10,889,645 $ 12,308,760 $ 13,045,497 $ 13,045,497 $ 13,987,257 $ 941,760 Other Services and Supplies 323,364 440,580 318,392 479,938 529,466 49,528 City Property 8,819 33,163 13,750 13,750 13,750 -
Labor and Supply Offset (1,227,831) (1,233,585) (1,432,284) (1,432,284) (1,547,991) (115,707) Total $ 9,993,998 $ 11,548,917 $ 11,945,355 $ 12,106,901 $ 12,982,482 $ 875,581 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 7,378,195 $ 8,638,526 $ 8,990,539 $ 9,152,085 $ 10,467,827 $ 1,315,742 Cty/Cnty Office-Water Planning 10,000 12,457 13,684 13,684 14,257 573 Interdepartmental Service 2,395,712 2,432,221 2,426,557 2,426,557 1,983,763 (442,794) Measure U - 229,033 254,577 254,577 245,744 (8,833)
Storm Drainage 42,018 42,602 46,526 46,526 48,475 1,949 Wastew ater 42,018 47,336 52,000 52,000 54,178 2,178
Water 126,055 146,742 161,472 161,472 168,238 6,766
Total $ 9,993,998 $ 11,548,917 $ 11,945,355 $ 12,106,901 $ 12,982,482 $ 875,581 153
FY2023/24 Proposed Budget

Division Budget Summary

Staffing Summary

MEASURE U
The following chart summarizes the Office’s Measure U programs.

Change
City Attorney FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Attorney Division $ 9,993,998 $ 11,548,917 $ 11,945,355 $ 12,106,901 $ 12,982,482 $ 875,581 Total $ 9,993,998 $ 11,548,917 $ 11,945,355 $ 12,106,901 $ 12,982,482 $ 875,581 Change
City Attorney FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Attorney Division 59.00 62.00 62.00 62.00 62.00 -
Total 59.00 62.00 62.00 62.00 62.00 -
Funding Category Program Name FTE
FY2023/24
Proposed
Community Response
Operations City Attorney Department - 245,744 Grand Total - $ 245,744
154
FY2023/24 Proposed Budget

9 SECTION - 9
City Auditor
155
FY2023/24 Proposed Budget

156
FY2023/24 Proposed Budget

City Auditor
The mission of the Office of th e City Auditor is to provide a catalyst for improvements of municipal operations, promote credible, efficient, effective, fair, focused, transparent, and a fully accountable City Government.

The Office of the City Auditor is an essential element of the City of Sacramento's public accountability, built on the standards of independence, objectivity, and technical accuracy.

The audit process involves verifying compliance with laws and regulations, identifying internal control weaknesses and failures, and assessing whether the City has acquired and used its resources efficiently. The Offi ce of the City Auditor con ducts performance audits in accordance with Generally Accepted Government Auditing Standards and has strict quality assurance programs to ensure that staff exercise due professional care, adequately plan audits, and prepare work papers that contain sufficient and compelling evidence to support any statements of fact in its audit reports. The Office of the City Auditor consists of the following operations:
 Performance Auditing: Provides independent, objective, and reliable information regarding the City's ability to meet its
goals and objectives and establish an adequate
system of internal controls.

 Research and Analysis: Provides independent, objective, and reliable research and analysis related to a wide variety of
topics including revenues, expenditures, diversity,
and community livability.

 Whistleblower Investigative
Audits:

Conducts investigative audits of allegations of
potential improper governm ent activities (i.e.
fraud, waste, or abus e) reported through the
Cit
y’s whistleblower hotline.

PROGRAMS/SERVICE HIGHLIGHTS

 Developed an Annual Work Plan using several quantitative and qualitative techniques, sources, and stakeholder input to identify areas of high audit and research potential.
157
FY2023/24 Proposed Budget

 Continued to be a leader in providing diversity information related to the City’s workforce. Issued the 2021 Audit of City Employee Workforce Diversity and Salary Trends. Conducted a workplace survey of City employees to gather feedback on workplace climate, leadership opportunities, and discrimination in relation to the City’s diversity and inclusion efforts; results were published in a summary report and interactive dashboards on the City Auditor’s website.  Issued an Audit of the City’s Financial Co ndition. This report provided detailed analysis of the City’s financial health using two methodologies. The analysis found that although the COVID-19 pandemic impacted the City’s financial condition in fiscal years 2020 and 2021, Sacramento’s financial condition slowly improved during the review period and Sacramento is performing better than many of its peers. However, its performance on the debt and solvency ratios lagged the peer group.
 Issued an audit of the Cit y’s funding to Wide Open Walls (WOW) and David Sobon Events. The audit found that the City ex ecuted a contract with DSE, when WOW was the actual service provider and that the City provided WOW with two $25,000 sponsorships to fund the Del Paso mural project without written agreements. Both of these issues compromised the City’s ability to audit the funding provided to the two organizations.
 Conducted a Community Survey of Sacr amento residents to understand how they feel about the quality of services provided, facets of livability, use of resources, and present and future needs of the community as a whole.  Issued an Audit of the City’s Cannabis Code Enforcement Unit (CCEU). This audit made eleven recommendations aimed at improving the City’s cannabis code enforcement processes, developing po licies and procedures, and establishing performance metrics.
 Issued Language Access Gap Analysis, Survey Results, and Policy Recommendations. The Office partnered with Nimdzi Insights, LLC to conduct the work. The report made 16 recommendations aimed at improving language access services.
 Monitored the status of over 140 open audit recommendations by conducting follow-up reviews every six months.
 Conducted investigative audits of various whistleblower allegations regarding potential improper government activities (i.e., fraud, waste, or abuse).

DEPARTMENT EFFICIENCIES

 Continued our agreement wit h Missionmark to explore the potential for developing audit software that will streamline internal audit processes and reduce processing time. Areas for improvement currently under review include report indexing, supporting documentation referencing, and time tracking. 158
FY2023/24 Proposed Budget

 Managed online dashboards that provide the public with interactive information on the status of whistleblower investigations, audit recommendations, and gender and ethnic composition of City employees.

OBJECTIVES FOR FY2023/24

 Improve the efficiency and effectiveness of City operations by performing audits and conducting independent research and analysis.
 Deter and detect improper government activiti es (i.e., fraud, waste, or abuse) by managing the City’s Whistleblower Hotline and conducting investigative audits of whistleblower allegations.
 Provide work experience opportunities (internships) to college and high school students focused on building meaningful sk ill sets that will ai d the students in obtaining full-time employment.

Department Budget Summary

Division Budget Summary

Staffing Levels

Change
City Auditor FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 1,404,193 $ 1,763,346 $ 1,709,032 $ 1,709,032 $ 1,847,344 $ 138,312 Other Services and Supplies 109,683 90,066 163,581 163,581 163,581 - City Property 5,725 6,066 5,000 5,000 5,000 -
Labor and Supply Offset (150,357) (153,391) (163,233) (163,233) (168,553) (5,320) Total $ 1,369,244 $ 1,706,088 $ 1,714,380 $ 1,714,380 $ 1,847,372 $ 132,992 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 894,435 $ 1,125,369 $ 1,100,904 $ 1,100,904 $ 1,271,362 $ 170,458 Interdepartmental Service 449,428 455,925 476,696 476,696 427,958 (48,738) Storm Drainage 4,568 22,463 24,620 24,620 26,649 2,029
Wastew ater 5,076 24,959 27,356 27,356 29,611 2,255
Water 15,736 77,372 84,804 84,804 91,792 6,988
Total $ 1,369,244 $ 1,706,088 $ 1,714,380 $ 1,714,380 $ 1,847,372 $ 132,992 Change
City Auditor FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Performance Auditing Division $ 889,843 $ 1,184,564 $ 1,138,153 $ 1,138,153 $ 1,269,660 $ 131,507 Research & Analysis Division 479,401 521,523 576,227 576,227 577,712 1,485 Total $ 1,369,244 $ 1,706,088 $ 1,714,380 $ 1,714,380 $ 1,847,372 $ 132,992 Change
City Auditor FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Performance Auditing Division 7.00 7.00 7.00 7.00 7.00 - Research & Analysis Division 3.00 3.00 3.00 3.00 3.00 - Total 10.00 10.00 10.00 10.00 10.00 -
159
FY2023/24 Proposed Budget

160
FY2023/24 Proposed Budget

10 SECTION - 10
City Clerk
161
FY2023/24 Proposed Budget

162
FY2023/24 Proposed Budget

City Clerk
The mission of the City Clerk’s Office is to provide quality public service and connect the public with the legislative process. We strive to ensure that the City’s legislative processes are open and public by providing a link between citizens and government with processes aimed toward transparency. Through efficient us e of City resources, we can ensure the preservation of Sacramento’s legislative history.

The City Clerk serves as the Clerk of the Council and is responsible for the preparation of agendas, the recording and maintenance of all Council actions, and the preparation and filing of public notices.

 Office of the City Clerk: The office through which the Council, City Departments, and the public look for general information regarding the City. As the official records keeper for the City, the Clerk is responsible for the coordination and administration of all City records, documents, and public files. The City Clerk manages Public Record Act (PRA) requests,
administers the City ticket policy and regulatory ticket distribution filings, conducts all bid openings, maintains the City’s municipal code an d charter, receives all
claims filed against the City, researches issues related to Council and Committee actions, maintains contract
and agreement files, regi sters lobbyists, manages
online campaign filings and campaign finance
submissions, administers City board and commission
files, administers oaths of office, presides as the
Elections Official for the City and the Filing Officer for Fair Political Practices Commission requirements, and
serves as the official custodian of the Cit
y Seal.
163
FY2023/24 Proposed Budget

 Mayor-Council
Operations:

Manages the administrative, personnel, and fiscal
operations of the City Clerk’s Office and Offices of the Mayor and Council, including the Office of Public Safety Accountability.

 Ethics and Compliance: This office supports the Ethics Commission and focuses on reviewing existing City codes and policies, and
educating and training staff, pu blic officials, and the community to ensure compliance. These guidelines are
found in the City Code and in adopted citywide policies.

PROGRAMS/SERVICE HIGHLIGHTS

 Continued to hire and train a diverse staf f in the responsibilities and requirements of the City Clerk’s Office.

DEPARTMENT EFFICIENCIES

 Continued the review of operations in the City Clerk’s Office and Offices of the Mayor and Council for implementation of “ best practices” for a more efficient workflow and accurate deliverables.
 Continued utilization of the Citywide Content Management System (CCM) as a tool in the implementation of a records management program focused on moving the City toward consistent administrati on and appropriate handli ng of the agency’s records and provide increased access to agency records to both internal and external customers.
 Provided training opportunities to City staff on procedures and resources associated with the Clerk’s Office to maintain institutional knowledge and provided training on new policy and legal requirements to ensure compliance.  Continued evaluation and implementation of new and existing information technology tools to achieve sustainable services, increase transparency, and provide new records and data to the public with an emphasis on virtual access.  Continued to utilize Microsoft Teams for better collaborati on and accountability between both in office and remote workers.

OBJECTIVES FOR FY2023/24

 Continue to utilize social media to communi cate in a timely fashion with citizens on issues managed by the Clerk’s Office.
 Utilize new functionality in the Office 365 suite to reduce duplication and improve responses to PRA requests.
 Continue to expand utilization of the CCM.
164
FY2023/24 Proposed Budget

 Continue to refine and expand our Boards and Commissions recruiting, onboarding, and ongoing training.
 Continue to evaluate and expand our pr ograms and technology tools to create more efficient processes and products for staff and citizens.  Optimize webpages associated with the Office of the City Clerk.

BUDGET AND POSITION CHANGES*

Department Budget Summary

Division Budget Summary

Staffing Levels

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
City Clerk* Delete a position (1.0 FTE Deputy City Clerk) and add a new position (1.0 FTE Senior Deputy City Clerk) to
better align with the duties and responsibilities of the position.

General (110,127) 113,048 -
Total Change $ (110,127) $ 113,048 -
* Position offset amounts will be finalized in the Approved Budget.

Change
City Clerk FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 2,192,635 $ 2,705,958 $ 3,159,263 $ 3,159,263 $ 3,206,092 $ 46,829 Other Services and Supplies 406,372 412,215 632,173 672,288 628,672 (43,616) City Property 30,345 28,422 2,000 2,000 2,000 -
Multi-Year Operating Projects - - 500 500 2,250 1,750
Labor and Supply Offset (1,930) 3,054 - - - -
Total $ 2,627,423 $ 3,149,649 $ 3,793,936 $ 3,834,051 $ 3,839,014 $ 4,963 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 1,668,288 $ 2,155,907 $ 2,787,197 $ 2,827,312 $ 2,697,965 $ (129,347) Interdepartmental Service 959,135 993,742 1,006,739 1,006,739 1,141,049 134,310 Total $ 2,627,423 $ 3,149,649 $ 3,793,936 $ 3,834,051 $ 3,839,014 $ 4,963 Change
City Clerk FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Clerk Division $ 2,470,062 $ 3,038,136 $ 3,516,421 $ 3,556,536 $ 3,559,749 $ 3,213 Office of Ethics & Compliance Division 78,040 50,039 187,795 187,795 189,545 1,750 Mayor-Council Operations Division 79,322 61,474 89,720 89,720 89,720 - Total $ 2,627,423 $ 3,149,649 $ 3,793,936 $ 3,834,051 $ 3,839,014 $ 4,963 Change
City Clerk FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Clerk Division 19.00 24.00 24.00 24.00 24.00 -
Total 19.00 24.00 24.00 24.00 24.00 -
165
FY2023/24 Proposed Budget

166
FY2023/24 Proposed Budget

11 SECTION - 11
City Manager
167
FY2023/24 Proposed Budget

168
FY2023/24 Proposed Budget

City Manager

The City Manager is the Chief Executive Officer of the City and is responsible for the leadership and direction of all operations, programs, and services, per City Charter. The City Manager facilitates the impl ementation of Council’s policies and priorities, provides policy recommendations to the Council concerning the annual budget, future needs of the City, and oversight of all City departments. The City Manager’s Office (CMO) contains a wide-range of high-profile programs that handle issue-specific needs such as: Innovation and Economic Development, Media and Communications, Cannabis Management, Government Affairs, Emergency Managem ent, Youth Development, Performance Management, and Climate Action and Sustainability.

It has been over three years since th e beginning of the global pandemic and unprecedented health crisis. During this time , the Office has coordinated the allocation of $89.6 million in Coronavir us Relief Funding. Those expenditures funded numerous response programs that resulted in approximately 1,400 loans to small businesses, 229 grants to small businesses to establish safe outdoor dining, workforce training for over 2,500 residents, extended learning programs for thousands of youth and 2,635 laptops and hot spots to name a few. As we transition from response to recovery, the Office has worked with many departments to implement the Mayor and Council approved priorities in the areas of Small Business and Commerc ial Corridor Revitalization, Homeless and Housing, Arts and the Creat ive Economy, and Valuing City Employees and Addressing Organizational Needs. To date, $111,599,609 of the $112.2 American Rescue Plan Act (ARPA) fundings has been obligated towards ov er 30 projects and programs including clean and safe for the corridors, COVID-19 vaccination awareness ca mpaign, arts and cultural grants, small business technica l assistance, youth summer programming, and housing assistance. Our Office will continue to work closely with residents, small businesses and community-based organizations as we lead the city through the economic recovery.

169
FY2023/24 Proposed Budget

PROGRAMS/SERVICE HIGHLIGHTS

Chief of Staff
 The Office of Governmental Affairs provides oversight and coordinates and develops policies for local, state, and federal legislative activities including management of the City’s contract lobbyists. The Office identifies state and federal funding opportunities and works with lobbyists and elected officials to secure needed resources. The Office serves as staff to Council’s Law and Legislation Committee, is responsible for the design and implementation of the annual state and federal legislative and policy platform and all Fair Political Practice Commission reporting.
 Media and Communications coordinated wit h all departments to share relevant information and engage citizens in important City services, projects and initiatives.

This included managing a $1 million contract with a third-party service provider to create a new COVID-19 vacci nation outreach campaign, translating outreach materials into multiple languages, placing local media ads, working with media outlets both local and national and suppor ting events and workshops. Materials created and disseminated fostered neighb orhood/community involvement, promoted access to civic, recreational and educational resources, and encouraged a safe and healthy environment for all.
 The Performance Management program provides acc ountability and supports decision-making to inform City operations and ensures that the City serves the community in the most effective and efficient way possible. All Departments track performance management data on their core operations and have developed dashboards to track high level outcomes.

Community and Economic Development
 The Office of Innovation and Economic Development (OIED) focuses on opportunities to support and increase job creation, busin ess growth, and development activities. Accomplishments fo r the office in the last fiscal year include continuing deploying state and fe deral funds for economic recovery programs including Food Access; Al Fres co Dining; Small Business Technical Assistance; Workforce Development; Childcare, Housing Development, Commercial Corridor Support; Emergency Rental Assistance; Financial Empowerment Center Expansion; and Outreach and Engagement.  The OIED led the effort to approve financ ing of 889 new residential units and the rehabilitation of 70 to 100 existing affordable units. Approval and implementation of the Aggie Square Anti-displacement and Housing Stabilization program.  Creation of the Nighttime Economy positio n in OIED to serve as a liaison with the City, business partners and t he community to collaboratively address the issues facing entertainment and nighttime economy.
170
FY2023/24 Proposed Budget

 OIED concluded the second cohort of t he Economic Gardening Program 2.0 which assisted 10 small businesses by pairing them with business experts who assisted them in developing growth strategies. The participating businesses experienced revenue and employment growth.
 The OIED Community Engagement Team launched a Community Ambassador Program to bring trusted messengers to the community.
 The Office of Youth Development (OYD) continues to onboard team members and is charged with deepening systems-wide in tegration of the Citywide Youth Development Plan & Framework (Plan) and facilitating greater cohesion across multiple stakeholders, systems and prioriti es that touch young people. Over the past year, the Youth Development Poli cy Manager continues to manage multiple citywide projects and grant programs in- line with Plan goals and in response to pandemic impacts/emergent youth needs, including the highly successful #SacYouthWorks program; continues to manage the $6 million FY2020/21 midyear allocation to children and youth services including the City of Sacramento Youth Development Plan Funding Grant Program. The OYD has begun designing the competitive solicitation and grant -making processes for FY2021/22 midyear allocation to support children and yout h organizations with general operating support and capacity building.
 The Office of Cannabis Management (OCM ) coordinates cannabis policy and outreach. OCM administers the local cannabis equity program, reviews and processes cannabis business permits, which includes the oversight and coordination of an interdepartmental team to ensure th e safe and legal operation of cannabis businesses and provides logistical support for cannabis administrative appeal hearings. OCM operates a $1.5 million local equity grant and zero-interest loan program funded by state equity grants, helps fund a youth cannabis education and prevention program, and is leveragi ng technology upgrades in compliance with State requirements to migrate provisional license holders to annual licenses.

OCM has also implemented a marketing program for local equity cannabis businesses.

Municipal Services
 The Office of Climate Action and Sustainabi lity leads City efforts to address climate change and achieve a resilient, carbon zero future. The Office continues to support the Climate Implementation Work Plan an d development of the City’s Climate Action and Adaptation Plan. Work under way includes support for the City’s electrification initiatives and trans portation work, in addition to climate communications, coordination, and air quality monitoring partnership.

Public Safety
 Office of Emergency Management (OEM) coordinates internal and allied agency communication, planning, preparedness, re sponse, and recovery during all hazards affecting the city , including managing activations of Crisis Action Teams and the Emergency Operations Center. During the last fiscal year, staff responded 171
FY2023/24 Proposed Budget

to several crises including severe weather, civil unrest, and wildfires. Additionally, staff updated several internal and interagency plans and memorandums of understanding (MOU) to improve cohes ion and unified response with other government agencies and non-government organizations.

OBJECTIVES FOR FY2023/24
 The OYD team will finalize the design and begin formal implementation of the City’s first evaluation, learning and continuous quality improvement system (CQI System) to be applied across all youth inve stments while centering racial equity and social justice, these broad areas include: Research, Data, Evaluation & Learning, Grants Administration & M anagement, Organizationa l & Professional Development, and Community Engagement & Strategic Partnerships.  Aggregate and distill existing resolutions a nd strategic plans from across City departments that do or can im pact youth in significant ways, into a focused Citywide Youth Action Pl an centered on equity and in clusive of youth and community voice.
 Work closely with the City’s Youth Workforce Manager to strengthen the City’s youth workforce pipeline and develop/begin implementing a robust public sector pathway for young people.
 With a focus on equity and inclusion, cont inue to implement innovative approaches to strengthening Sacramento’s work force, neighborhoods, and commercial corridors.
 Implement the Climate Im plementation Work Plan and related climate planning efforts, and coordinate for new state and federal funding opportunities.  Create processes for department engagem ent and capacity building, while strengthening community collaboration.
 Continue to advance catalytic projects, like Aggie Square, in a way that maximizes inclusive economic opportunities for adjacent communities.  Pursue opportunities to permanently implem ent programs, like Al Fresco, that were developed during the Pandemic and incr ease economic growth options for Sacramento’s small businesses.
 Explore and implement policies to st reamline housing development and increase the stock of housing opportunities at all levels.
 Continue to work closely with the Counc il in developing sound policies related to the cannabis industry and local cannabis e quity, including monitoring of Department of Justice clearance results for cannabis businesses and community outreach regarding potential changes to City regulations for on-site consumption, administer a local cannabis equity no-intere st revolving loan, create competitive grant opportunities to fund business start- up costs, reduce barrier of entry and 172
FY2023/24 Proposed Budget

provide comprehensive business support to cannabis entrepreneurs and meet State requirements transferring provisional license holders to annual licenses.  Educate and inform parents and young peopl e about the potential hazards of cannabis use by adolescents and teens.

BUDGET AND POSITION CHANGES*

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Economic
Development
One time funding to expand export markets and promote job creation through direct foreign investments and international business.

Innovation
and Growth
- 138,500 -
Media &
Communications
Add a position (1.0 FTE Media and Communications
Specialist) to increase the efficiency and effectiveness of the Media & Communications Division by assisting with public outreach and educational programs.

General - 143,901 1.00 Nighttime Economy Add two positions (1.0 FTE Economic Development Manager and 1.0 FTE Administrative Analyst) for the newly created Nighttime Economy Division in support of improving
collaborative public safety efforts within the downtown core and business community.

Innovation
and Growth
- 432,437 2.00
Office of Cannabis
Management*
Delete a position (1.0 FTE Senior Staff Assistant) and add a position (1.0 FTE Administrative Technician) to assist with the quantity and complexity of the permit applications and to monitor updates and changes to grant reports and
requirements. Position will be offset by the deletion of the position and a reduction in services and supplies.

General (109,185) 106,901 -
Office of Emergency
Services*
Delete two vacant positions (1.0 FTE Program Manager and

1.0 FTE Administrative Technician) and add two positions (1.0 FTE Program Specialist and 1.0 FTE Administrative Analyst) to align the needs of the department with the appropriate classification and to manage the workload and responsibility needed to maintain an effective and positive outcome to area hazards. Positions will be offset by the deletion of the positions and a reduction in services and supplies.

General (292,340) 291,835 -
Total Change $ (401,525) $ 1,113,574 3.00 * Position offset amounts will be finalized in the Approved Budget.

Change
City Manager FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 10,299,076 $ 10,204,399 $ 11,859,812 $ 11,859,812 $ 12,494,582 $ 634,770 Other Services and Supplies 1,402,120 2,0 00,501 2,501,620 2,657, 606 2,767,031 109,425 City Property 26,740 58,274 24,326 24,326 24,326 -
Multi-Year Operating Projects - - 9,795,100 9,795,100 10 ,489,050 693,950 T r a n s f e r s ( 6 3 , 9 0 0 ) ( 1 1 , 5 0 2 )--- -
Labor and Supply Offset (2,196,557) (249,776) (129,075) (129,075) (129,075) - O p e r a t i n g T r a n s f e r s ( 1 4 9 , 1 1 2 ) ( 1 0 7 , 1 3 6 )--- - Total $ 9,318,367 $ 11,894,761 $ 24,051,783 $ 24,207,769 $ 25,645,914 $ 1,438,145 173
FY2023/24 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 7,214,392 $ 4,692,507 $ 7,126,584 $ 7,132,570 $ 7,584,306 $ 451,736 2003 North Sac TE TABS - - 9,000 9,000 9,000 -
Block Grant/Housing & Redev - - 29,250 29,250 29,250 -
B r n f l d R e v o l v i n g L o a n P r o g r a m 5 0 , 0 0 0 ( 1 0 0 , 0 0 0 )--- - Innovation and Grow th 140,962 254,058 7, 323,738 7,323,738 8,568,647 1,244,909 Interdepartmental Service 1,909,053 2,0 23,052 1,639,182 1,639,182 1,536,200 (102,982) Measure U 3,960 5,025,143 7, 924,029 8,074,029 7,918,511 (155,518) Total $ 9,318,367 $ 11,894,761 $ 24,051,783 $ 24,207,769 $ 25,645,914 $ 1,438,145 Change
City Manager FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the City Manager Division $ 3,941,637 $ 4,353,173 $ 3,886,438 $ 3,892,424 $ 4,063,413 $ 170,989 Office of Cannabis Management Division 1,091,119 1,113,817 3,604,070 3,604,070 3,611,971 7,901 Office of Climate Action Initiatives Division - 321,252 330,840 330,840 356,532 25,692 Office of Community Response Division 338,653 - - - 13,996 13,996 Office of D iversity and E quity D ivision - 254,654 - - - - Office of Innovation & Economic Dev Division 2,387 ,627 4,623,094 14,282,306 14, 432,306 15,620,057 1,187,751 Office of Emergency Management Division 551,372 428,342 602,639 602,639 605,225 2,586 Office of Violence Prevention Division 2 58,584---- -
Office of Homeless Services Divsion 2 89,580---- -
Office of Media & Communications Division 459,794 547,500 514,411 514,411 667,693 153,282 Office of Youth Development Division - 252,929 831,079 831,079 707,027 (124,052) Total $ 9,318,367 $ 11,894,761 $ 24,051,783 $ 24,207,769 $ 25,645,914 $ 1,438,145 Change
City Manager FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the City Manager Division 19.00 12.00 12.00 13.00 13.00 - Office of Cannabis Management Division 7.00 9.00 9.00 9.00 9.00 - Office of Climate Action Initiatives Division - 2.00 2.00 2.00 2.00 - O f f i c e o f C o m m u n i t y R e s p o n s e D i v i s i o n 1 3 . 0 0---- - Office of D iversity and E quity D ivision - 3.00 - - - - Office of Innovation and Economic Dev Division 31.00 34.00 34.00 34.00 36.00 2.00 Office of Emergency Management Division 3.00 3.00 3.00 3.00 3.00 - O f f i c e o f V i o l e n c e P r e v e n t i o n D i v i s i o n 2 . 0 0---- - O f f i c e o f H o m e l e s s S e r v i c e s D i v s i o n 8 . 0 0---- - Office of Media & Communications Division 4.00 4.00 4.00 4.00 5.00 1.00 Office of Youth Development Division - 6.00 6.00 5.00 5.00 - Total 87.00 73.00 70.00 70.00 73.00 3.00
174
FY2023/24 Proposed Budget

MEASURE U
The following chart summarizes the Office’s Measure U programs.

PERFORMANCE MEASURES

The Office of Innovation and Economic Development promotes a ‘business-friendly’ environment and provides assistance to encourage business growth and development. Tracking the number of businesses located in the city is a good indicator of a business- friendly environment. Source: ESRI Business Analyst**

In supporting the growth of business activi ty, Economic Development seeks to increase the number of job opportunities available to city residents. Tracking the total number of jobs in the city is a good indicator of increased opportunity for employment. Source: ESRI Business Analyst**

Changes in employment rates that correlate with job growth indicate job creation that is in harmony with the workforce needs. Source:

State of California Employment Development Department, Labor Market Information Division

The department promotes and facilitates investment and development opportunities within the city to revitalize targeted commerc ial areas. Continued physical development and investment in the City remains essential to create jobs, improve quality of life, and provide the necessary infrastructure to attrac t development and businesses. Tracking buildi ng valuation and monitoring its trend line i s an indicator of economic growth.

Funding Category Program Name FTE
FY2023/24
Proposed
Affordable Housing
Operations Housing 2.00 356,589
Climate Action
Operations Office of Climate Action Initiatives 2.00 356,532 Inclusive Economic Development
MYOP Thousand Strong - 750,000
Operations Community Engagement 8.00 1,421,846 Community Investment 8.00 1,382,849
Economic Development 10.00 1,673,100
Economic Development Administration 4.00 970,568 Youth
MYOP Economic Development and Youth Priorities - 300,000 Operations Office of Youth Development 5.00 707,027 Grand Total 39.00 $ 7,918,511
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of businesses in the city* 21,511 21,279 21,136 22,384 n/a FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of jobs in the city 276,858 272,403 286,896 285,037 n/a FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Employment rate 86.8% 91.1% 95% 95.4% n/a
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Total investments made in Sacramento, by building
permit valuation $1.35 billion $1.34 billion $1.46 billion $1.35 billion n/a 175
FY2023/24 Proposed Budget

*Number of businesses in the city could be tracked by new versus renewal, gross receipts, and gross payroll if the City's BOT processing system and software is updated.

**ERSI is an international supplier of geographic informat ion software system, geodatabase management, and business analytics data. ERSI extracts its business data from Dunn & Bradstreet. 176
FY2023/24 Proposed Budget

12 SECTION - 12
City Treasurer
177
FY2023/24 Proposed Budget

178
FY2023/24 Proposed Budget

City Treasurer
Provide banking, investment, and debt financing services for and to protect the fiscal integrity of the City of Sacramento.

The City Treasurer is responsible for the deposit and investment of all City funds. The City Charter also provides that the City Treasurer keep the C ouncil informed regarding the status of investments and City funds. Additionally, Council has directed that the City Treasurer shall also provide public finance and debt issuance services for the City.

PROGRAMS/SERVICE HIGHLIGHTS
 Negotiated and renewed Master Deposit ory Banking, Merchant, and Custodial Services Agreements.
 Assisted business units in adding addi tional payment methods (i.e., mobile payments, eCheck, Marina new pumps, et c.), adding to increased sales and a better customer experience, all while maintaining Payment Card Industry (PCI) Compliance; Coordinated and co-led t he team to another Clean Report of Compliance (RoC), using established Pa yment Card Industry Data Security Standard (PCI DSS) Policy and Procedures. The RoC was again 100% completed remotely.
 Provided debt financing services for the city as well as for various Community Facilities Districts (CFDs), which provided funding for facility dev elopment, land purchases, improvements, and the acquisition of equipment. Ensured compliance with post- issuance regulatory and disclosure matter s and covenants of debt obligations to ensure investment-grade ratings and/or outloo ks are maintained or eligible to be upgraded. Staff in the Debt Management Div ision continue to be efficient and effective – completing all debt management responsibilities, working through financings, and completing special projects, all despite multiple vacancies which have existed in the division since 2019.
 Worked with the Department of Utilities to develop a designated reserve policy for all three enterprise utility systems – Water, Wastewater, and Storm Drainage. The designated reserve policy established t he minimum and target reserve funding levels for three reserve categories and alig ns the informal protocols with industry best practices and the policies implemented by other large CA municipal utilities.

The reserve policy was approved by the Budget & Audit Committee and the City Council.
179
FY2023/24 Proposed Budget

 Managed the cash flow for the City, Sacramento City Employees’ Retirement System (SCERS), Sacramento Housing and Redevelopment Agency (SHRA), Sacramento Public Library Authority (SPLA), and other trust funds between the bank and the investment pools to gain interest earnings and provide liquidity in a prudent manner.

Consistently one of the top performing municipalities in the State of California. Staff is now managing in excess of $1.9 billion.
 SCERS Plan achieved over 95% f unding status in a year when equity and fixed income markets had significant negative retu rns. Staff continues to demonstrate disciplined investment strategies in both pos itive and negative market environments

DEPARTMENT EFFICIENCIES

 Automated the daily cash flow process that links the city and banking data in real- time, thus improving accuracy and efficiency.
 Streamlined trade processing and implem ented new reconciliation methods and procedures to ensure validity and reliability of investment records.  Utilized a third-party cons ultant to proactively monitor on an ongoing basis the credit ratings and outlook of outstanding bonds, thereby freei ng up City staff to focus on other debt management-related responsibilities.

OBJECTIVES FOR FY2023/24

 Develop and implement citywide banking policies and procedures that will complement existing procedures for Departments; Continue to evaluate and establish a citywide Credit Card Fee Policy.
 Work with City Council and Community Org anizations to explore the concept of a Public Bank for the City.
 Continue to maintain investor and rating agency relations of outstanding bonds issued by the City, Sacramento Cit y Financing Authority, Sacramento Public Financing Authority, and the Redevelopment Agency Successor Agency to maintain or improve applicable credit ratings. Continue to comply with all bond covenants and regulatory requirements to maintain the City’s tax-exempt status of bonds and loans.  Continue to work with Departments in performing feasibility analyses or obtaining cost- effective financing to pay for infrastructure or equipment acquisition costs, including the development of long-te rm finance and master plans. Evaluate refinancing opportunities.
 Work on the formation of the Natomas Enhance Infrastructure Financing District and the issuance of bonds for various commun ity facilities distri cts – Delta Shores Community Facilities District (Improve ment Area 1) and Greenbriar CFD (Improvement Area 2) to acquire infrastructure from the respective developers. 180
FY2023/24 Proposed Budget

 Work with the Mayor’s offi ce to determine the feasibility of an additional TOT debt issuance given the passing of Measure N.
 Continue to work wit h the Department of Utilities to complete the development of Long- Range Financial Plan – including the review of the Asset Management Program; Work with the Department of Public Works and other City departments on the Sacramento Valley Station Governance Study.
 Work with the State Controller’s Office (SCO) to re-claim dozens of property accounts that belong to various investment accounts. Assets date back to 1999 and SCO has advised that the process may take 6 months
 Conduct an RFP for a new software provider for robust fund accounting and portfolio management services for the Invest ment Division to replace inefficient legacy software from the year 2000.
 Build a succession and training plan that hel ps to cultivate staff in preparation for natural attrition.

BUDGET CHANGES AND POSITION CHANGES

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
City Treasurer Increase Pool A Revenue Budget to align with historical revenues. One-time revenue increase due
to Pool A interest earnings from American Rescue
Plan funds, Delta Shores and railyards bond proceeds
with unknown withdrawals.

General (600,000) - - Total Change $ (600,000) $ - - Change
City Treasurer FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 2,045,493 $ 2,080,381 $ 2,552,685 $ 2,552,685 $ 2,649,607 $ 96,922 Other Services and Supplies 325,580 290,904 275,547 275,547 280,547 5,000 City Property 1,816 1,824 10,000 10,000 5,000 (5,000)
Multi-Year Operating Projects - - 3,000 3,000 1,000 (2,000) Labor and Supply Offset (22,888) (29,068) 350 350 350 - Total $ 2,350,001 $ 2,344,041 $ 2,841,582 $ 2,841,582 $ 2,936,504 $ 94,922 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 1,960,349 $ 1,661,683 $ 1,678,363 $ 1,678,363 $ 1,707,095 $ 28,732 Interdepartmental Service 389,652 682,358 1,163,219 1,163,219 1,229,409 66,190 Total $ 2,350,001 $ 2,344,041 $ 2,841,582 $ 2,841,582 $ 2,936,504 $ 94,922 181
FY2023/24 Proposed Budget

Division Budget Summary

Staffing Levels

Change
City Treasurer FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended CityTreasurer Division $ 2,350,001 $ 2,344,041 $ 2,841,582 $ 2,841,582 $ 2,936,504 $ 94,922 Total $ 2,350,001 $ 2,344,041 $ 2,841,582 $ 2,841,582 $ 2,936,504 $ 94,922 Change
City Treasurer FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended City Treasurer Division 14.00 14.00 14.00 14.00 14.00 - Total 14.00 14.00 14.00 14.00 14.00 -
182
FY2023/24 Proposed Budget

13 SECTION - 13
Community Development
183
FY2023/24 Proposed Budget

184
FY2023/24 Proposed Budget

Community Development
We help plan, build, and maintain a great city.

The Community Development Department plans for growth, development, and prosperity in Sacramento; reviews and approves development applications and building permits; responds to issues related to the Health and Safety Code while ensuring well- maintained properties and preserving the existing housing stock; and provides animal care services. The Department consists of the following service areas.

 Administrative Services: Provi de centralized support for Department budgeting, accounting, personnel services,
procurement, boards and commissions, and
marketing and communications.

 Animal Care Services: Provide animal care services through enforcement of City codes with emphasis on public safety, cruelty,
and abuse investigations, sheltering, adoption, and
community outreach, along with a robust volunteer
program affording a hi gh level of community
engagement.

 Building: Protect public health and safety by regulating construction and development through provision of
permits, plan review, and building inspections.

Provide building applic ation and building permit
services and specialized development project
management services.

 Code Compliance: Promote and maintain a safe and desirable living and working environment through enforcement of
City and state codes. Programs and services include
neighborhood and busine ss code compliance,
graffiti abatement, weed abatement, substandard/
185
FY2023/24 Proposed Budget

dangerous building inspections, tenant protection,
vacant building monitori ng and residential rental
housing inspections.

 Planning: Provide a vision for a great city by leading the City’s planning, development, ur ban design, and historic
preservation efforts. Guide development for public
and private sector inve stment throughout our
community.

PROGRAMS/SERVICE HIGHLIGHTS
 Current Planning staff is on track to process approx imately 650 private development applications by the end of FY 2022/23. Notable projects this year have included:
o Approval of 550 residential lots within the Panhandle area with another 800 in-progress.
o Approval of Costco in Natomas and approximately 250,000 sq. ft. of industrial development at Northgate and I-80.
o Continued development in the Railyards, including the Central Shops project.
o Approval of almost 400,000 square f eet of industrial development at the Sacramento Army Depot.
o Continued development in the River District including approval of the Growers District and five residential blocks at Township 9. o First new residential construction in Delta Shores with more to come. o Approval of approximately 300 affor dable residential units via the City’s Ministerial Housing application process.
o A record 257 accessory dwelling units (ADU) citywide.  The Building Division provi des in-person counter services by appointment only on Tuesday and Wednesday 9am – 3:30pm. Vi rtual customer services for online submittals and email inquiries are availa ble 12am Monday – 12am Friday. Other notable highlights in the Building Division include:
o On November 29, 2022, the City Council adopted the New Building Electrification Ordinanc e and Infeasibility Waiver Guidance Document.

Effective January 1, 2023, all new cons truction of three stories and below are required to be all-electric, whic h will help reduce future carbon emissions.
186
FY2023/24 Proposed Budget

o On December 13, 2022, the Cit y Council adopted the Alternate Water Systems Ordinance. The Alternative Water Systems Ordinance outlines new graywater piping requirements which will apply to certain new non-residential buildings over 10,000 square feet beginning July 1, 2023. o The department developed shelf-ready ADU Plans for studio, one bedroom, and two-bedroom units.
o City Council adopted the 2022 Building Standards Code.  Since July 1, 2022, Animal Care Servic es has provided vaccinations, veterinary care, and spay/neuter services to 484 animals owned by 260 owners through the Animal Services Homeless Response Team.
 Code Compliance developed a community outreach and resource team to attend community events and proactively engage the community.
 CDD field personnel received an outst anding performance recognition by Risk Management for having the lowest collision frequency in the City.

DEPARTMENT EFFICIENCIES
 The Planning Division launched a ne w, online ADU Re source Center https://adu.cityofsacrament.org/ to provide customers with assistance planning and developing an accessory dwelling unit . Permit ready ADU plans are also available online.
 The Building Division im plemented 100% online submittals for residential production permits to provide a more transparent tracking mechanism, enhance accuracy, and streamline processing; plan review was transitioned to all electronic codes in lieu of hard copy.
 Animal Care Services has been decreasing t he length of stay for animals in shelter and foster, saving financial resources, and improving the quality of care for the animals.

OBJECTIVES FOR FY2023/24
 Adopt the 2040 General Plan and Climate Action & Adaptation Plan.  Deploy the Small Project Rapid Review (SPRR) program to replace, enhance, and automate the existing electronic over the counter (EOTC) services.  Recruit and retain veterinarian and medica l support staff to provide high quality veterinary care to shelter animals and to animals served in our community outreach programs.
 Code Compliance to implement an enhanc ed vacant lot and vacant building monitoring and enforcement program.
187
FY2023/24 Proposed Budget

 Housing and Dangerous Buildings to implement an owner-occupied low-income emergency housing repair program.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Administration/Code
Compliance
Delete a position (1.0 FTE Account Clerk II) in the
Code Compliance division and add a position (1.0
FTE Accounting Technician) to the Administrative
Services division as there is an increase in workload
that requires higher-level review. No additional cost is associated with the new position.

General (74,590) 83,616 - Building Decrease revenue budget from Customer Service to align with actual revenues and historical trends.

General 356,599 - - Animal Care Delete a position (1.0 FTE Customer Service Representative) and add a position (1.0 FTE Animal
Services Adoption Coordinator) to provide additional
oversight to the robust volunteer program.

Measure U (74,854) 105,171 - Animal Care Delete a position (1.0 FTE Customer Service Specialist) and add a position (1.0 FTE Administrative
Analyst) to support the veterinary, enforcement, and
field services teams.

Measure U (82,507) 131,824 - Animal Care Add two positions (2.0 FTE Animal Control Officers) and two vehicles to improve response time for service
calls from the community.

Measure U - 512,828 2.00 Code Compliance Decrease revenue budget for Housing and Dangerous Building to align with actual revenues and historical
trends.

General 490,000 - - Code Compliance Decrease revenue budget due to the loss of the Sacramento Abandoned Vehicle Service Authority
funding. The program sunset on April 30, 2022, and
Measure C failed to pass during the June 7, 2022,
primary elections.

General 405,292 (405,292) - Code Compliance Adjusting Measure U reimbursement from the General Fund for the Sacramento Abandoned Vehicle Service
revenue loss reduction.

Measure U - 405,292 - Code Compliance Delete four positions (0.5 Youth Aide) and add a position (0.5 FTE Crew Leader) to lead and supervise
the citywide graffiti abatement youth program.

General (17,776) 18,929 - Code Compliance Add a position (1.0 FTE Program Specialist) to oversee the hearings and appeals process and
supervise section's staff.

Measure U - 158,311 1.00 Code Compliance One-time revenue budget increase for Neighborhood Code Compliance to align with actual revenues to be
evaluated in the following fiscal year for sustainability.

General (715,960) 715,960 - Code Compliance Adjusting Measure U reimbursement from the General Fund for the revenue increase in Neighborhood Code
Compliance.

Measure U - (715,960) - Code Compliance One-time revenue budget increase for Business Compliance to align with actual revenues to be
evaluated in the following fiscal year for sustainability.

General (350,000) - - Planning* Add a position (1.0 FTE Development Services
Technician) to handle increasing volume of work and
meet customer service levels. The cost of the position
is being offset by increasing reimbursement for
existing positions.

Measure U (98,440) 96,811 1.00 Total Change $ (162,236) $ 1,107,490 4.00 * Position offset amounts will be finalized in the Approved Budget. 188
FY2023/24 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

Change
Community Development FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 31,671,148 $ 33,242,970 $ 39,201,854 $ 39,201,854 $ 40,662,660 $ 1,460,806 Other Services and Supplies 7,625,422 9,46 9,149 11,708,989 11,6 96,416 11,230,945 (465,471) City Property 113,048 374,110 181,641 181,641 181,641 - Multi-Year Operating Projects - - 3,987,033 3,853,600 4,231,430 377,830 Transfers 165,226 302,075 303,178 303,178 350,212 47,034 Labor and Supply Offset (3,527,423) (3,048,189) (2,669,503) (2,669,503) (2,854,591) (185,088) Total $ 36,047,420 $ 40,340,115 $ 52,713,192 $ 52,567,186 $ 53,802,297 $ 1,235,111 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 33,417,877 $ 29,508,143 $ 34,519,469 $ 34,519,469 $ 35,444,866 $ 925,397 Cityw ide Low Income Housing 2,453,037 2,790,748 3,100,000 3,100,000 2,390,000 (710,000) Development Services - - 2,266,000 2,266,000 2,266,000 - Landscaping and Lighting 200,000 137,294 348,000 250,000 255,000 5,000 Measure U - 7,979,219 12,229,72 3 12,181,717 13,196,431 1,014,714 Risk Mgmt (23,494) ( 75,289)--- -
Special Program Donations - - 250,000 250,000 250,000 - Total $ 36,047,420 $ 40,340,115 $ 52,713,192 $ 52,567,186 $ 53,802,297 $ 1,235,111 Change
Community D evelopment F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration Division $ 2,208,283 $ 2,360,484 $ 3,273,648 $ 3,273,648 $ 3,364,363 $ 90,7 15 Animal Care Services Division 5,841,691 6,298,828 7,359,055 7,350,007 8,223,907 873,900 Building Division 12,537,777 14,596,172 18,401,378 18,401,378 18,317,008 (84,370) Planning Division 6,188,058 6,717,548 11,725,809 11,725,809 11,659,248 (66,561) Code Compliance Division 9,271,612 10,367,083 11,953,302 11,816,344 12,237,771 421,427 Total $ 36,047,420 $ 40,340,115 $ 52,713,192 $ 52,567,186 $ 53,802,297 $ 1,235,111 Change
Community Development FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration Division 15.00 16.00 19.00 18.00 20.00 2.00 Animal Care Services Division 55.00 61.00 61.00 61.00 63.00 2.00 Building Division 82.00 87.00 89.00 90.00 89.00 (1.00)
Planning Division 52.00 52.00 54.00 54.00 55.00 1.00
Code Compliance Division 86.50 92.00 92.00 92.00 92.00 - Total 290.50 308.00 315.00 315.00 319.00 4.00
189
FY2023/24 Proposed Budget

MEASURE U

The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES

Animal Care Services Division

The live release rate is a key measure of the Front Street Animal Shelter's success in achieving its mission of saving lives. The live release rate can be affected by a variety of factors including the health of animals upon intake, the number of animals received due to bite/abuse/neglect investigations, staffing levels, and volunteer/community involvement.

Building Division

Most inspections are completed on the day that they are scheduled. Development activity is incr easing which will result in more inspections, especially as development resumes in North Natomas.

Most residential permits are minor in nature and may be approved in the online permitting platform. This measure is tracked nationally and offers a means of comparison with other agencies.

Funding Category Program Name FTE
FY2023/24
Proposed
Affordable Housing
MYOP Specific Plans - 1,200,000
Operations Long Range 13.00 985,731
Zoning 6.00 655,849
Community Response
Operations Animal Care Administration 12.00 914,151 Animal Care/Shelter 36.00 4,051,144
Neighborhood Code Compliance 40.00 3,250,686
Misellaneous
MYOP Commission Stipends - 3,500
Public Safety - Community Development
MYOP Fleet Acquisitions - 321,500
Operations Animal Enforcement/Field Services 15.00 1,813,870 Grand Total 122.00 $ 13,196,431
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of animals that are adopted, transferred, sent
to rescue, or returned to ow ner (live release rate) 85% 85% 85% 87% 90% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of development inspections performed on the
day scheduled 97% 99% 99% 98% 98%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percentage of residential building permits issued w ithin tw o days 85% 80% 85% 85% 85%
190
FY2023/24 Proposed Budget

Code Enforcement Division

Abandoned or inoperable vehicles are investigated by Neighborhood Code Compliance. When a Code Enforcement Officer confirms a vehicle violation, the vehicle is marked, and the registered owner of the vehicle has three days to remove the vehicle, or it may be towed.

Planning Division

The Planning Division tracks and reports on the time it takes to approve a staff hearing-level review. This review includes a technical analysis of the project to determine compli ance with guidelines and standards, is noti ced to the public, and is presented in a public hearing to the Zoning Administrator, Design Director, or Preservation Director.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Vehicle cases closed w ithin 21 days 70% 86% 52% 64% 75% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of director-level planning files completed w ithin 90 days 26% 39% 19% 50% 50%
191
FY2023/24 Proposed Budget

192
FY2023/24 Proposed Budget

14 SECTION - 14
Community Response
193
FY2023/24 Proposed Budget

194
FY2023/24 Proposed Budget

Community Response
The mission of the Department of Community Response is to serve as an alternative response that connects individuals in crisis with appropriate services and treatment options.

On July 1, 2020, the City Council directed the City Manager to develop an alternative response model for 911 calls that do not requi re traditional emergency services. This Office was originally created as a Division in the City Manager’s Office. The Division became the standalone Department of Community Response (DCR) effective July 1, 2021.

DCR deploys social workers and outreach specia lists who are trained to resolve certain crises such as behavioral health, homelessne ss, youth and family disturbances, school response, and substance use issues. The goal of DCR is to divert entry into jails and emergency departments by connecting indivi duals with appropriate services and treatment options to better resolve such crises.

To facilitate the shift toward this alternat ive response model, DCR is comprised of the following three offices:
 Office of Community Outreach: Responsible for responding to calls for service by deploying teams of social workers and outreach specialists who will use evidence- based practices such as cultural com petency, motivational interviewing, and strengths-based approaches t hat are not typically found within traditional emergency response models.
 Office of Homeless Services: Resp onsible for the City’s response to homelessness, which includes coordinating with various Federal, State, local, nonprofit, and faith-based entities to end homelessness and administering millions in contracts to fund emergency shelter, wraparound services, and housing projects.
 Office of the Director: Responsible fo r the strategic planning, fiscal, human resources, and administrative management of the Department.

195
FY2023/24 Proposed Budget

PROGRAMS/SERVICE HIGHLIGHTS
 The Office of Homeless Services (O HS) opened the Outreach & Engagement Center (OEC) on Auburn boulevard at the City-Owned former SMUD Science Center. The OEC provides engagement services during the daytime, and overnight respite to provide safety and stability for participants while waiting for entry into other community programs such as Em ergency Shelter, Transitional, and Permanent Housing. In the first four m onths of operation, the OEC served 277 people, and of the 193 who left the progr am, 50% exited to positive destinations through Permanent Housing or temporary shelter. Additionally, the OEC operated as a weather respite center during the extreme winter storms.  OHS successfully integrated all City-f unded Emergency Shelter programs into the Coordinated Access System (CAS). These City-funded programs were the first in the entire County to integrate into C AS which will streamlin e the process for community members to access appropriate services, reduce time spent on the street, and increase overall positive outcomes for City-funded programs.  The Office of Community Outreach (OCO ) established a management structure through the hiring of a Social Services Manager and two Program Specialists.

OCO further increased its ability to respond to calls for service by hiring nine additional Neighborhood Resource Coordinators.

 Since July of 2022, the Office of Commu nity Outreach, in partnership with its contracted outreach provider Hope Cooperative, has re sponded to more than 19,000 calls for service regarding community members experiencing homelessness. These calls for service include more than 7,500 calls for trash removal which resulted in nearly 30,000 cubic yards of garbage being removed from encampments. Addi tionally, Neighborhood Resource Coordinators and contracted outreach staff have provided more than 9,000 unique services to community members experiencing homelessness.

DEPARTMENT EFFICIENCIES

 OHS increased the analysis of the demogr aphics of guests served (such as age, race, physical and mental health condition s) and overall program outcomes to improve the efficiency of contract oversight for our Community Based Organizations.
 OCO has focused on creating data driven responses to calls for service involving unhoused community members. To bette r identify focus areas and deploy resources more efficiently, OCO partner ed with the IT Depar tment and GIS staff to develop heat maps showing the highest concentration of calls for service within the community.

 Developed 311 Dashboards for field us e which break down pending calls for service into localized neighborhoods. This allows staff to efficiently respond to calls in a smaller geographic area, significantly reducing response time. 196
FY2023/24 Proposed Budget

 Partnered with 311 and IT staff to increas e the sub-service types available for response in 311. The newly formed sub-service types allow the Department to respond to issues involving general iss ues with unhoused persons, as well as specific City ordinances for which DCR has been identified as the primary response agency.

OBJECTIVES FOR FY2023/24
 Further collaboration with the Count y in accordance with the Partnership Agreement to maximize consistency for c ontracted shelter programs, as well as work to identify sites in which the County can provide services to individuals and families experiencing homelessness.
 Increase the frequency of repor t outs related to program, client level, and outcome data for contracted programs in an effort to maximize transparency, accountability, and lean into greater return on investment of public funds. Including complying with the requirements of Measure O regarding regular monitoring and daily reporting of shelter bed utilization.
 OCO aims to continue the development of 311 dashboards and heatmaps to provide transparency for officials and co mmunity members. The Department will partner with the IT Department and GIS staff to develop a public facing dashboard and heatmap for public consumption, which contains only de-identified data.

Use a data driven approach to improve res ponse time of field staff to 311 calls.

OCO’s goal is to have the response to 311 calls outpace the rate of incoming new calls.
 Hire all funded Neighborhood Resource Coordinator positions and move toward increased coverage time. OCO, when fully hi red, will work to ha ve staff on-call during weekend hours in order to provide 7 day a week coverage to the community.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Office of the
Director
Delete a position (1.0 FTE Media and
Communications Specialist) in the Office of the
Director and transferred to the City Manager's Office.

Measure U - (129,871) (1.00) Total Change $ - $ (129,871) (1.00) 197
FY2023/24 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

MEASURE U
The following chart summarizes the Department’s Measure U programs.

Change
Community Response FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services - $ 2,624,706 $ 4,361,454 $ 4,361,454 $ 4,372,877 $ 11,423 Other Services and Supplies - 325,166 659,594 659,594 693,409 33,815 City Property - 88,985 420,000 420,000 390,856 (29,144) Multi-Year Operating Projects - 26,120 1 9,595,807 19,595,807 11,368,213 (8,227,594) Labor and Supply Offset - ( 87,602)--- -
Total - $ 2,977,374 $ 25,036,855 $ 25,036,855 $ 16,825,355 $ (8,211,500) Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Amended Amended Proposed Proposed/Amended Measure U - $ 2,977,374 $ 25,036,855 $ 25,036,855 $ 16,825,355 $ (8,211,500) Total - $ 2,977,374 $ 25,036,855 $ 25,036,855 $ 16,825,355 $ (8,211,500) Change
Community Response FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of Director Division - $ 813,820 $ 1,136,083 $ 1,136,083 $ 1,079,412 $ (56,671) Office of Community Outreach Division - 1,391,639 12,636,775 12,636,775 12,676,140 39,365 Office of Homeless Services Division - 511,267 11,263,997 11,263,997 3,069,803 (8,194,194) Office of Violence Prevention Division - 260,647 - - - - Total - $ 2,977,374 $ 25,036,855 $ 25,036,855 $ 16,825,355 $ (8,211,500) Change
Community Response FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of Director Division - 8.00 8.00 8.00 7.00 (1.00) Office of Community Outreach Division - 24.00 24.00 24.00 24.00 - Office of H om eless Services D ivision - 6.00 6.00 6.00 6.00 - Office of Violence Prevention Division - 2.00 - - - -
Total - 40.00 38.00 38.00 37.00 (1.00)
Funding Category Program Name FTE
FY2023/24
Proposed
Community Response
MYOP Community Outreach - 9,222,213
Operations Office of Community Outreach 24.00 3,453,927 Office of Director 7.00 1,079,412
Homelessness
MYOP Homeless Housing Initative - 2,146,000 Operations Office of Homeless Services 6.00 923,803 Grand Total 37.00 $ 16,825,355
198
FY2023/24 Proposed Budget

PERFORMANCE MEASURES

Community Response

[1] 311 Calls regarding a request to pick-up trash / debris in a public space. [2] 311 Calls regarding a homeless encampment within 500 feet from a school; this service type was not in use in FY22. [3] 311 Calls regarding a homeless encampment blocking a sidewalk; this service type was not in use in FY22. [4] All other 311 Calls related to homelessness not specifically broken out in this report. [5] Unhoused Self-Referral refers to 311 Calls from community members seeking services for themselves.

Source: 311

FY22 FY22 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
311 Calls Closed by Service Type
Trash (Cubic Yds Removed) [1] n/a n/a
8,805 (46,605
cubic yds)
12,600 (49,000
cubic yds)
12,600 (49,000
cubic yds)
Homeless Encampment 500ft from School [2] n/a n/a n/a 180 180 Homeless Encampment Blocking Sidew alk [3] n/a n/a n/a 1,650 1,700 Homeless Encampment Concern [4] n/a n/a 12,275 13,850 14,000 Unhoused Self-Referral [5] n/a n/a 373 1,950 2,000
199
FY2023/24 Proposed Budget

200
FY2023/24 Proposed Budget

15 SECTION - 15
Convention and Cultural Services
201
FY2023/24 Proposed Budget

202
FY2023/24 Proposed Budget

Convention and Cultural Services
The mission of the Convention and Cultural Services Department is to promote and preserve our unique culture and heritage by delivering accessible arts, leisure, and educational experiences to enrich people's lives and enhance the metropolitan area.

The Convention and Cultural Services Department (CCS) provides exceptional cultural, artistic, and leisure opportunities that enrich the quality of life and contribute to a vibrant metropolitan region. As key contribut ors to the region’s quality of life, our “Sacramento Treasures” serve both residents and visitors. Significant economic impact can be attributed directly to the numerous educational, cultural, and recreational events offered. These experiences are provided by our divisions and nonprofit partners. The Department includes the following operations and programs/services:

 CCS Administration: Provides overall Departm ent policy, oversees financial transactions, and assists divisions with
human resources functions.

 SAFE Credit Union
Convention and
Performing Arts District:

Consists of the SAFE Credit Union Convention
Center, SAFE Credit Union Performing Arts
Center, and Memorial Audito rium. This district is
the venue for a variety of events including major
conventions, trade shows, performing arts,
concerts, sporting events, seminars, weddings,
banquets, and high school graduations.

 Crocker Art Museum: The Crocker Art Museum brings people together and connects them in unexpected ways with art,
ideas, each other, and the world around them. The
Museum features the world’s foremost display of
California art and is renowned for its holdings of
master drawings. Other major collection areas
include international ceramics, European
paintings, and Asian, Afri can, and Oceanic art.

The Museum serves as the primar
y re gional
203
FY2023/24 Proposed Budget

resource for the study and appreciation of fine art
and offers a diverse spectrum of exhibitions,
events, and programs to augm ent its collections,
including films, concerts, studio classes, lectures,
children’s activities, and more.

 Fairytale Town: At Fairytale Town, children and families enjoy a magical, safe place to imagine, play, and learn.

This nonprofit storybook park and education
center promotes the imagination, creativity, and
education of children. More than 250,000 visitors
laugh and learn in a typica l year at the main park
while at-risk youth benefit from hands-on
exploration at the Sacramento Adventure
Playground located in South Sacramento.

 History: The Center for Sacramento History (CSH) is the official repository and research center for City and
County historical collections. The Center collects,
organizes, and preserves the region’s vast cultural
heritage, and makes it available to the public,
academics, students, genealogists, filmmakers,
and more. The division also serves as the
administrator for the Ol d Sacramento Riverfront
Historic District, which is the City’s largest tourist
attraction. The Center’s collections are displayed
in exhibitions created by Center staff at the
Sacramento History Museum and City Hall.

 Office of Arts and Culture: The City of Sacramento’s Office of Arts & Culture is the City’s chief point of interface with the
creative community. Together with other city and
civic partners, the Office of Arts & Culture is
working toward development of a vibrant and just
creative economy in Sacr amento. Creative Edge:

Sacramento’s Arts, Culture & Creative Economy
Plan is its guiding policy framework. The Office of
Arts & Culture is responsible for creative economy
grantmaking and educati onal programming as
well as the City’s Art in Public Places program and
Sacramento Film & Media. The Office of Arts &
Culture serves as a source of information on the
state and impact of the creative economy.

 SMUD Museum of
Science and Curiosity:

The new SMUD Museum of Science and Curiosity
(MOSAC) is a premier institution for informal
science education in Sacramento and the
204
FY2023/24 Proposed Budget

Northern California Region. The Museum piques
curiosity and sparks imagination with hands-on
interactive exhibits and programming that explore
the wonders of science, technology, engineering,
art, and math. The new state-of-the-art exhibits
address global and local issues and topics relating
to energy, water, health, nature, space, and
design engineering. The digital dome theater will
screen a variety of spectacular film and star
shows. The rotating galle ry will feature special
exhibitions that will continually bring new
experiences and ideas to the Sacramento region.

 Sacramento History
Museum:

The Sacramento History Museum is dedicated to
Sacramento’s rich and diverse history. The
Museum explores the stories of the area’s first
inhabitants, from the native peoples who originally
lived here to the thousands of immigrants who
came from around the world to seek their fortune
in California’s gold fields, and ultimately creating
an “indomitable city”. With engaging educational
programs serving thous ands of students each
year, public programming and tours of The Old
Sacramento Riverfront Dis trict, the Museum
brings Gold Rush history to life for visitors of all
ages.

 Sacramento Zoo: The Sacramento Zoo is one of the region's top attractions, with an annual attendance of more
than 500,000. The Zoo's collection consists of
more than 400 animals, diverse botanical life, and
several specialized gardens.

PROGRAMS/SERVICE HIGHLIGHTS

 The SAFE Credit Union Convention Center , SAFE Credit Union Performing Arts Center, and Memorial Auditorium collectively hosted 241 events, served 540,000 attendees, and contributed nearly $116 m illion in economic impact to the Sacramento region from January 1, 2022 to December 31, 2022.  Additional fencing and guard rails were installed around the SAFE Credit Union Convention and Performing Arts District to enhance the safety and security for our clients, staff, and patrons.
 The Office of Arts and Culture continued to advance the goals of the Creative Edge Plan. With support from the National Endowment for the Arts ($500,000), OAC was able to fund 45 artists to carry out several projects in the region. OAC also secured 205
FY2023/24 Proposed Budget

a $4.75 million grant from the California Arts Council to develop the Capitol Region Creative Corps project. OAC awarded $3.75 million in ARPA Creative Economy funding to area nonprofit arts and cultural organizations. OAC’s Art in Public Places program completed Community Murals Sacramento, with 10 murals, 39 artists and 1,771 community collaborations. Four new projects were kicked off in conjunction with the CalTrans Clean Ca lifornia program. Sacrament o Film + Media better aligned the film permitting process and 82 film permits were issued that resulted in 172 days of filming and $2.7 million in lo cal spending. OAC also launched the Sacramento Music Census and arts and entertainment regulatory review project.  The Crocker Art Museum attracted visitors from across the nation and around the world to Sacramento. The Museum served over 147,000 people. Audiences were served through a variety of in -person and virtual programs, community activities, and publications.
 During the first eight months of fiscal year 2023, approximately 260,000 visitors enjoyed a safe day out at the Zoo and were entertained, educated, and connected to wildlife. Two new capybaras, a newborn giraffe, and a temporary dragon exhibit were among the more popular additions with the guests. In addition, the “Behind- The-Scenes Tour” program continues to grow in popularity, and Zoo Summer Camp, which returned in fiscal year 2023, is expected to be in full swing in the summer of 2023.

DEPARTMENT EFFICIENCIES
 The $350 million C3 Project was complet ed, which improved guest experience and event flexibility at the SAFE Credit Union Convention Center, improved acoustics, and performance space, expanded restrooms and concessions at the SAFE Credit Union Performing Arts Center, and enh anced the patron experience at the Memorial Auditorium.
 The Engineering team has completed over $2.4 million in a variety of projects for and around the SAFE Credit Union Conv ention Center, SAFE Credit Union Performing Arts Center, and Memorial Auditorium.
 Directional signs and display screens were added throughout the SAFE Credit Union Convention Center.
 The Office of Arts and Cult ure began the work to create more uniform approaches to grant and public art commission processes, such as evaluation rubrics, application advising, and panel processes.
 With a new chef on board, the Zoo has streamlined its kitchen operation to improve both the efficiency and quality of the concession operation. In addition, the Zoo has realigned the education and animal ca re departments to improve efficiency while providing more programming to the public and maintaining excellent care for the animals.
206
FY2023/24 Proposed Budget

OBJECTIVES FOR FY2023/24

 Provide clean, well-maintained facilit ies to ensure the pub lic’s comfort and enjoyment during their visits following curre nt federal, state, and local guidelines including COVID-19 protocols, and mainta ining Global Biorisk Advisory Council certification at the SAFE Credit Union Convention Ce nter, SAFE Credit Union Performing Arts Center, and Memorial Auditorium.
 Complete the move of collections from the current off-site auxiliary storage facility at McClellan Park to a new, more secure, climate-controlled location that will be shared with the Crocker Ar t Museum. The move is planned to be completed by the end of 2023. The new space will give both the Crocker and the Center storage space that is desperately needed for their collections.  The Office of Arts and Culture will cont inue the roll-out of American Rescue Plan act support for the Creative Economy, incl uding projects focused on individuals, arts journalism, creative businesses and youth workforce development. OAC will carry out the Capitol Region Creative Corps program, maki ng grants for 25 projects and hiring five artists in residence at the City. OAC will also continue work on major Art in Public Places projects at the Convention Center and along the Del Rio Trail to name a few. OAC will publis h and distribute the Sacramento Music Census and complete the Arts and Entertainment Regulatory Review project.  The Zoo will continue to inspire apprec iation and respect for wildlife and nature through education, recreation, and conservation. The department will achieve this by maximizing educational and entertainment value to the roughly 500,000 visitors that currently participate in the Zoo’s programming while also continuing to explore strategic opportunities to reach even more people wit hin the Sacramento region and beyond in the future.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Administration* Delete a position (1.0 FTE Administrative Assistant) in the Administration Division and add a position (1.0
FTE Assistant Director) to oversee department
operations and facilitate department priorities.

Community
Center
(178,600) 215,347 -
History Increase the services and supplies budget in the History Division to continue contracting with
Downtown Sacramento Partnership for management
services, maintenance services, overnight security,
and events/activation for the Old Sacramento Historic
District.

Community
Center
- 96,400 -
Office of Arts and
Culture
Increase funding for the Creative Edge Multi-Year
Operating Project (MYOP) (I02181100) to support the
expansion of the Cultural Arts Awards grant program.

Community
Center
- 500,000 -
Office of Arts and
Culture
Increase funding for the Creative Edge MYOP
(I02181100) to support grants, an internship program,
and marketing activities related to film and media
production in the City.

Innovation
and Growth
- 150,000 -
207
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Department Budget Summary

Division Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Office of Arts and
Culture
Increase funding for the Creative Edge MYOP
(I02181100) to support the expansion of the Cultural
Arts Awards grant program.

Innovation
and Growth
- 200,000 -
Office of Arts and
Culture
Increase funding for the Creative Edge MYOP
(I02181100) to support creative placemaking activities
at the neighborhood level.

Innovation
and Growth
- 650,000 -
SAFE Credit Union
Convention and
Performing Arts
District*
Delete various positions (12.0 FTE) and added
various positions (8.0 FTE) to ensure event staffing
needs are met at the SAFE Credit Union Performing
Arts District.

Community
Center
(805,462) 765,642 (4.00)
Total Change $ (984,062) $ 2,577,389 (4.00)
* Position offset amounts will be finalized in the Approved Budget.

Change
Convention and Cultural Services FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 6,775,239 $ 8,861,654 $ 12,307,603 $ 12,307,603 $ 12,365,035 $ 57,432 Other Services and Supplies 5,305,583 8,565,482 8,606,898 8,357,764 10,323,579 1,965,815 City Property 152,159 25,523 83,000 83,000 63,000 (20,000) Multi-Year Operating Projects - - 114,000 114,000 1,614,000 1,500,000 Transfers (144,082) (157,728) - - - -
Labor and Supply Offset 1,187,306 1,426,226 1,377,766 1,377,766 1,476,323 98,557 Operating Transfers 726,369 2,593,005 1,765,100 1,765,100 2,017,300 252,200 Total $ 14,002,575 $ 21,314,164 $ 24,254,367 $ 24,005,233 $ 27,859,237 $ 3,854,004 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 5,096,002 $ 8,155,625 $ 1,199,891 $ 1,005,891 $ 727,827 $ (278,064) Community Center 8,045,968 8,827,520 18,014,713 18,014,713 20,871,974 2,857,261 Fairytale Tow n 76,018 103,383 50,000 50,000 50,000 -
H Street Theater 151,658 9,856 45,000 45,000 45,000 -
Innovation and Grow th - - - - 1,000,000 1,000,000
Measure U - 3,951,867 4,636,087 4,636,087 4,833,441 197,354 Museum of History, Science, & Tech 307,473 - - - - -
Old Sac Market 81,520 63,749 104,000 48,866 104,000 55,134 Old Sacto Maint Dist 65,246 67,190 67,220 67,220 66,715 (505) Winchester G & Mary Alice Felt 104,198 33,704 87,456 87,456 110,280 22,824 Zoo 74,493 101,271 50,000 50,000 50,000 -
Total $ 14,002,575 $ 21,314,164 $ 24,254,367 $ 24,005,233 $ 27,859,237 $ 3,854,004 Change
Convention and Cultural Services FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended CCS Administration Division $ 1,407,927 $ 2,112,507 $ 1,819,222 $ 1,819,222 $ 1,789,565 $ (2 9,657) SAFE CU Conv. & Perf. Arts Dist. Division 6,498,060 12,899,148 15,743,019 15,743,019 18,033,537 2,290,518 Crocker Art Museum Division 1,876,579 2,210,358 2,445,331 2,445,331 2,367,272 (78,059) Fairytale Tow n Division 89,036 124,301 62,245 62,245 62,245 - History Division 2,670,571 2,238,544 2,520,345 2,465,211 2,647,090 181,879 Sacramento Office of Arts and Culture Division 538,295 681,938 838,999 845,999 2,333,212 1,487,213 Pow erhouse Science Center Division 238,413 238,337 238,337 145,337 145,337 - Sacramento History Museum Division 250,702 260,933 251,528 143,528 143,528 - Sacramento Zoo Division 432,993 548,096 335,341 335,341 337,451 2,110 Total $ 14,002,575 $ 21,314,164 $ 24,254,367 $ 24,005,233 $ 27,859,237 $ 3,854,004 208
FY2023/24 Proposed Budget

Staffing Levels

MEASURE U

The following chart summarizes the Department’s Measure U programs:

PERFORMANCE MEASURES

Convention Center Complex Division

The SAFE Credit Union Convention and Performing Arts District provides both ticketed and free events to the public. Ticketed events include theater performances and consumer shows such as the Broadway Series, home-shows, concerts, conventions, and festivals.

An increase in tickets sold is an indicator of the strength of the shows and the demand for the events. These shows bring local attendees and visitors to the downtown core , which supports the economic vitality of Sacramento. Overall demand for event and production space at the SAFE Credit Union Convention and Performing Arts District, which includes the SAFE Credit Union Performing Arts Center and Memorial Auditorium, continues to grow. Beginning in June 2018, the Memorial Auditorium closed for renovations and reopened for events in June 2019. In July-August 2019, the SAFE Credit Union Convention Center and SAFE Credit Union Change
Convention and Cultural Services FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended CCS Administration Division 8.00 8.00 8.00 8.00 8.00 -
SAFE CU Conv. & Perf. Arts Dist. Division 89.30 89.30 90.05 90.05 86.05 (4.00) Crocker Art Museum Division 6.00 6.00 5.00 5.00 5.00 -
History Division 8.20 8.20 8.95 8.95 8.95 -
Sacramento Office of Arts and Culture Division 9.00 9.00 9.00 9.00 9.00 - Sacramento Zoo Division 3.00 3.00 2.00 2.00 2.00 -
Total 123.50 123.50 123.00 123.00 119.00 (4.00)
Funding Category Program Name FTE
FY2023/24
Proposed
Arts/Creative Edge
MYOP Cultural Arts Awards - 114,000
Operations Art in Public Places 3.00 - Arts Education and Outreach 2.00 212,492
Creative Economy and Grants 1.00 67,915
Crocker Art Museum 5.00 2,155,369
History 8.95 1,365,712
Office of Arts and Culture - Admin 2.00 268,475 Sacramento Film and Media 1.00 163,330
Community Investment
Operations Sacramento History Museum - 127,267 Youth
Operations Fairytale Town - 12,245
Powerhouse Science Center - 129,077
Sacramento Zoo 2.00 217,559
Grand Total 24.95 $ 4,833,441
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Total events and performances 81 0 174 405 410
Number of tickets sold 113,347 0 119,624 208,559 232,810 209
FY2023/24 Proposed Budget

Performing Arts Center closed for renovations and reopened for events in calendar year 2021. Additionally, in FY20, FY21 and FY22 there have been events/performances canceled due to the on-going COVID-19 pandemic.

The SAFE Credit Union Convention Center has followed a national trend in awarding exclus ive contracts for many services provided at the facility. Currently, the City has contracts with Centerplate for food and beverage; Encore for audio-visual; Smart City Networks for telecommunications; Ticketmaster for ti cketing; and Boingo for wireless communications . These exclusive contracts provide for consistent high levels of customer servic e, a financial return for the City, and a signi ficant vendor investment to a City asse t. The revenue generated is an indicator of the strength of our SAFE Credit Union Convention Center business primarily with conventions, conferences, tradeshows, and meetings. Wi th approximately 400 events and nearly 800,000 visitors annually, these events are vit al to the local economy bringing visitors to the downtown area supporting hotels, restaurants, and retail businesses. Beginning in June 2018, the Memorial Auditorium closed for renovations and reopened for events in June 2019. In July-August 2019, the SAFE Credit Union Convention Center and SAFE Credit Union Performing Arts Center closed for renovations and reopened for events in calendar year 2021. Additionally, in FY20, FY21 and FY22 there have bee n events/performances canceled due to the on-going COVID-19 pandemic.

Crocker Art Museum Division

The attendance figures are a direct refl ection of the exhibition and programmatic schedule. The decrease in attendance and membership figures are a direct reflection of the museum being closed to the public because of COVID-19.

Center for Sacramento History Division

The Center for Sacramento History (CSH) holds original, historical public records from the City and County. These records are an essential resource for accurate information about the Sacrament o region’s past and play a key role in reflecting the developmen t of our city and our legal system. We provide access to these records in- person and virtually to the public and researchers of all types, including students, genealogists, and historians. They use these records for their own per sonal research, for academic study, f or environmental and preservation purposes, to publish books and papers, and to produce film s and television series. Over the last 10 years, we have dramatically increased acce ss to our collections by placing collection guides and digitized material on the Online Archive of California and Archive.org, both national databases that have opened us to an ever-growing audience. By providing prompt and accurate research and response, CSH has facilitated the us e of Sacramento history collections in both mainstream and independent films shown on HBO, CNN, NBC, Netflix, and local news agenc ies, serving to raise the profile of our city nationally and internationally. Through the pandemic, CSH responded to research requests virtually, but as of April 2022 is again open for in-person research. Thanks to the increase in CSH materials and collection guides available online, our public usage continues to increas e.

In 2020, the City Manager’s office created the Office of Diversit y and Equity. The current priorities of this office are buildi ng the diversity, equity, and inclusion capacity of City staff and infrastructure and achieving workforce equity through a racial equity lens. As part of the City’s efforts, the City Manager’s Office asked CSH to create a series of short training videos for staff that provide a historical context for racism in our community and s how how systemic racism has always been a part of our region. Following the death of George Floyd in the summer of 2020, our concepts of our nati onal, state, and local history have been challenged. Today, we must engage in a conversation and exploration of the past to help us navigate a more equitable future. Our videos bring to light the stories of those who have traditionally been left out of the historical narrative. We work with scholars and community members to create these short films, and we have an academic advisor y committee that helps us determine themes, reviews our scripts, assists us in find ing community voices to include in the videos, and, when possible, serves as experts in the films.

Our films are available to City staff to view, and we make them accessible online for the public through our YouTube channel. T hey are also used at local historic sites and museums. Currently, we are working to create public screenings t hat will have discuss ions afterward. We are also developing a curriculum so the films can be used in schools to engage students in critical thinking abou t our region’s history, and we hope to use the videos and the research done for them in exhibitions and publications.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Total revenue of in-house vendors 1,465,650 0 8,218,022 11,000,000 12,500,000 FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Attendance 177,617 25,000 147,256 168,000 200,000
Membership 11,585 8,500 12,380 12,800 12,800
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of researchers assisted 87,302 40,000 147,962 150,000 160,000 210
FY2023/24 Proposed Budget

The Center for Sacramento History’s inventory consists of the following types of catalogued items: artifacts; photographs; government, business, and organizational records; personal and family manuscripts; audio, film, and video; and digital objects. These all tell the story of the Sacramento region. Each year we increase the amount of collection material available online. Following the reopening of the Center as the pandemic eases, we are able to utilize the work of students and volunteers again to digitize at a more consis tent rate. Now, thanks to a grant from the County, we are able to digitize our extensive television film collection in house with new digitization equipment and students to complete the work.

Office of Arts and Culture Division
Public Art Program

The Art in Public Places program is funded through an ordinance that requires at least two percent of eligible City and County capital improvement project budgets be set aside for public art. Several of the objects in the City and County public art collection have been recognized nationally. The number of projects in progress may significantly vary year-to-year based on funding for new construction.

Project timelines are generally multi-year and undergo an extensive public process of artist selection, community input, and oversight by Arts Commission staff. Gallery exhibitions are also produced as part of the program and funded by the City, County, and the Sacramento Municipal Utilities District (SMUD). The City and County public art collection includes more than 675 objects. Publi c artworks that are maintained or conserved year-to-year may vary due to funding and/or project complexity.

Any Given Child Program

A program developed by the John F. Kennedy Center for Performing Arts, Any Given Child, provides equitable access to arts education experiences for K-8 students during the school day. Services offered under the program include in-class arts residencies, schoo l assemblies delivered by local arts organizations, and professional developm ent workshops for teachers, school administrators, a nd artists. The structure of the fees-for-service menu distri buted to participating school districts changed. Districts now purch ase a specific number of Teaching Artist Resi dencies, Arts Exposure Events (assemblies), and seats at Professional Development workshops, to be used throughout the year.

Cultural Arts Awards (CAA) Program

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of items listed in collection's databases 130,426 134,000 130,377 133,000 135,000 FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Es t im at e Target Number of exhibitions produced 10 10 4 4 4
Number of artw orks conserved, maintained, or
repaired 15 15
10 10 10
Number of public art projects completed (installed) 10 10 21 10 15 Number of permanent public art projects in progress 30 30 21 30 15 Special events, w orkshops, lectures (New for FY20) 3 3 15 10 5 FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Es t im at e Target Number of arts education school assemblies organized 80 75 14 97 130 Number of participants reached through above events 18,500 18,000 4,250 24,250 30,000 Number of professional development events for artists
and classroom teachers 10 12 4 10 10
Number of artists and classroom teachers served in
professional development 224 314 83 110 120
Number of students served in six- or 10-w eek
residences 811 750 1,200 8,900 9,000
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of Cultural Arts Aw ard (CAA) grantees 57 0 69 67 67 CAA grant allocation $500,000 0 $950,000 $950,000 $950,000 Number of Cultural Equity Grant grantees 13 0 3 0 0
Cultural Equity Grant allocation $115,000 0 $240,000 0 0 211
FY2023/24 Proposed Budget

The Grants and Cultural Program provides support to Sacramento City and County nonprofit arts and cultural organizations throug h a diverse grant program. The number of grants awarded varies due to the results of the panel process and City/County funding allocations.

The Cultural Arts Awards (CAA) grants, our premier grant, offers general operating support or project support with grants that typically range from $1,000 to $25,000. The CAA grant is funded by both the County and City of Sacramento through the annual Transient Occupancy Tax (TOT) allocation during the annual budget process. The amount available to grant will increase as the TOT allocation increases.

The Cultural Equity (CE) grant provides project support or capacity building support with grants that range from $2,000 to $20, 000.

The CE grant was funded by a one-time allocation in FY2015/16 and FY2020/21.

The Artists in the Community grant funds arts education projects led by regional artists in partner ship with community non-arts organizations to reach underserved populations of all ages. Funding for this program has, in the past, been awarded partially through a state grant. FY2015/16 was the last year that grants under this program will be awarded.

Per the Americans for the Arts & Economic Prosperity Calculator, the economic impact of the Arts Commission's nonprofit grantee s is significant to the local economy, generating over $2 million in local government revenue and providing over 1,700 full-time equivalent jobs in the region.

Film and Media

Sacramento Film + Media became part of the Ci ty of Sacramento's Office of Arts & Cu lture in 2019. It carries out film permitti ng, promotes the City as a filmmaking destinati on, and serves as a general resource for, and a driver of, film and media industry development in the City of Sacramento. Sacramento Film + Media measures its progress through the number of film permits, hotel nights and extended stays, local hires and film production spend in the City. Sacramento Film + Media had a good year in 2020 despite closure due to the pandemic for part of the 2020 year because the region was permitting when others were not.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of Permits Issued 60 70 82 90 100
Number of Film Days 161 175 176 200 250
Total Amount of Production Company Spending in
Sacramento 1,450,000 1,750,000 2,735,645 2,500,000 2,750,000 Number of Local Hires 342 400 729 600 650
Number of Hotel Nights 351 400 637 600 650
212
FY2023/24 Proposed Budget

16 SECTION - 16
Finance
213
FY2023/24 Proposed Budget

214
FY2023/24 Proposed Budget

Finance
The mission of the Finance Department is to educate, inform, and provide excellent internal and external customer service with integrity, efficiency, and quality.

The Finance Department is responsible for overseeing the financial management of the City. The Department currently provides accounting, billing, budgeting, collection, infrastructure finance, parking citation, payroll, procurement, and revenue collection services. Internal services and programs include strategic planning and policy analysis.

 Accounting: Responsible for providing oversight for the system of internal controls to safeguard City assets and
preparing annual financial statements.

 Budget, Policy, and
Strategic Planning:

Responsible for the development and preparation
of the annual operating budget, five-year capital
improvement program, midyear budget report, and
quarterly financial reports. Supports the Council,
charter offices, and operating departments with
budgeting, financial support, forecasting, analysis
on special projects, and labor negotiations.
 Infrastructure Finance: Responsible for the formation and administration of financing plans, assessment districts, tax districts
and fee districts fo r development, and the
continuance of services in support of goals to
achieve sustainability and enhance livability.

 Office of the Director: Responsible for enhancing and maintaining the fiscal stability of the City.

215
FY2023/24 Proposed Budget

 Payroll: Responsible for issuing bi-weekly paychecks for active employees, monthly paychecks for
Sacramento City Employees ’ Retirement System
retirees and for maintaining and monitoring internal
controls to ensure transactions comply with current
labor agreements, payro ll policies, and State and
Federal laws and regulations.

 Procurement Services: Responsible for the development, implementation, and compliance with citywide policies for the
acquisition of goods and services through
competitive bidding, as well as contract and
purchase order administration. Procurement
oversees the citywide travel program.

 Revenue: Responsible for the adminis tration, coordination, and collection of monies associated with various
citywide debts and invoices, citations, fees, parking
permits, special business permits, business taxes,
hotel taxes and fees, utility taxes, real property
taxes, as well as other various city revenue
programs.

PROGRAMS/SERVICE HIGHLIGHTS
 Successfully pivoted to an all-virtual wo rk environment maintaining full functionality and customer service levels, fast turnaround times for purchase order dispatching, and prompt payments to employees and vendors.
 Established the Panhandle Impact Fee Program to fund infrastructure and facilities necessary to support development of 1,662 residential units.  Executed a contract for the replacement of the City’s BOT system that will provide better reporting including the ability to collect information to support our Race and Gender Equity Action Plan.
 Worked with hosting platforms, includ ing Airbnb and Expedia, to improve compliance with the City’s short-term rental ordinance.  Developed and implemented an electronic sole/single source justification form eliminating paper justifications and establishing an automated workflow.

DEPARTMENT EFFICIENCIES

 Installed an online appoi ntment scheduling application for cashiering appointments and cannabis business tax payments.
216
FY2023/24 Proposed Budget

 Looked for ways to optimize the use of districts and finance plans to build priority public improvements, fund services, and encourage private investment in the City.  Streamlined internal procurement proc esses and procedures using best practices to eliminate redundancies, increase staff effectiveness, and improve transparency.
 Worked with the City Treasurer to establish, implement, and streamline a wire transfer process for City Department requests.

OBJECTIVES FOR FY2023/24
 Complete installation of the new city wide point-of-sale (POS) cashiering system that will accept payments for most services, programs, fees, and charges. City Departments that collect revenue using in -person or online payments utilize a variety of software applications that impact cashiering operations. This system will streamline the process and ensure trans actions are recorded properly in the citywide financial system.
 Establish financing structures to facilitate development of Innovation Park (former Sleeptrain Arena site), t he Sacramento Valley Statio n Master Plan area, the Railyards, and the Panhandle.
 Implement new accounting and financi al reporting standards including Governmental Accounting Standards Board (GASB) Statements No. 84 (Fiduciary Activities), 87 (Leases), and 90 (Major Equity Interests).  Provide departments and fund managers with the tools necessary to forecast labor growth, especially as it relates to reti rement and other post-employment benefit costs.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Accounting* Delete three vacant positions (3.0 FTE Principal Accountants) and add three new positions (3.0 FTE
Supervising Financial Analyst) to address the pay
inequities between the level of responsibilities for the positions and salary. Positions will be offset by the
deletion of the positions and increasing the special
assessment revenues based on three year actuals.

General (533,640) 520,074 -
Infrastructure
Finance*
Add a position (1.0 FTE Senior Development Project
Manager) to manage five new Enhanced Infrastructure
Finance Districts (EIFDs). Current staffing levels are
unable to support the increased workload in forming and managing these EIFDs. The position costs for
FY2023/24 will be offset by the Innovation & Growth
Fund (IGF). Starting FY2024/25 position will be offset by the revenues generated from the EIFDs.

General/
Innovation
and Growth
(180,035) 175,542 1.00
217
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Procurement* Add a position (1.0 FTE Administrative Analyst) to support contract administrative duties and provide
oversight and analysis of current programs that have
grown in scope. Position will be offset by budgeting
rebate revenues generated through contracted vendors.

General (127,965) 131,599 1.00
Revenue* Delete a position (1.0 FTE Senior Staff Assistant) and add a new position (1.0 FTE Administrative Analyst) to
align the needs of the department with the appropriate
classification and allow the Program Manager to shift
their focus to managerial duties. Position will be offset by the deletion of the position and a reduction in services and supplies.

General (128,008) 131,599 -
Total Change $ (969,648) $ 958,814 2.00
* Position offset amounts will be finalized in the Approved Budget.

Change
Finance FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 10,534,781 $ 11,531,915 $ 11,957,009 $ 11,957,009 $ 12,523,994 $ 566,985 Other Services and Supplies 1,315,662 1,246,829 2,091,940 2,091,940 2,420,484 328,544 City Property 65,883 13,548 44,400 44,400 44,400 -
Multi-Year Operating Projects - - 1,050,000 1,050,000 750,000 (300,000) Transfers 64,003 64,003 64,003 64,003 64,003 -
Labor and Supply Offset (980,277) (1,052,045) (1,202,102) (1,202,102) (1,211,257) (9,155) Contingency - - - - (180,035) (180,035)
Total $ 11,000,052 $ 11,804,250 $ 14,005,250 $ 14,005,250 $ 14,411,590 $ 406,340 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 7,098,355 $ 7,667,981 $ 8,824,681 $ 8,824,681 $ 9,237,432 $ 412,751 12th Street Maint Benefit Area 4,556 2,966 2,937 2,937 1,693 (1,244) 16th St PBID 6,210 2,719 2,690 2,690 2,669 (21)
65th Street Area Impact Fee 4,515---- -
Central Midtow n Restaurant BID 33,448 49,304 64,484 64,484 220,233 155,749 Cty/Cnty Office-Water Planning 39,000 39,000 39,000 39,000 39,000 - Curtis Park CFD 2013-03 3,270 3,133 3,241 3,241 2,039 (1,202) Del Paso Nuevo Landscaping CFD 2,866 3,064 3,086 3,086 2,041 (1,045) Del Paso Prop & Business Imprv 2,937 2,863 2,828 2,828 2,781 (47) Dow ntow n Impact Fee - - 25,000 25,000 100,000 75,000
Dow ntow n Management District 6,100 3,494 3,450 3,450 3,380 (70) Franklin Blvd PBID - 60,298 - - - -
Franklin Boulevard PBID 2,255 2,769 2,738 2,738 2,709 (29) Greater Broadw ay PBID 2,427 2,893 2,857 2,857 2,839 (18) Greenbriar Impact Fee 11,936 13,252 - - - -
Handle BID No 2011-04 236,628 240,210 220,000 220,000 230,870 10,870 Interdepartmental Service 2,693,464 2,72 6,033 2,840,770 2,840,770 2,818,449 (22,321) Laguna Creek Maint Dist 13,933 8,112 8,028 8,028 5,862 (2,166) Landscaping and Lighting 330,239 344,324 349,832 349,832 503,429 153,597 Mack Road PBID 2,737 2,787 2,755 2,755 2,715 (40)
Midtow n Sacramento PBID 5,694 3,685 3,640 3,640 3,534 (106) 218
FY2023/24 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended N Nat Lndscp 99-02 28,504 29,234 29,556 29,556 20,765 (8,791) N Natomas Lands CFD 3 52,850 54,811 55,672 55,672 68,545 12,873 N Natomas Transp Mgmt Assoc 44,106 45,384 46,381 46,381 47,050 669 Natomas Crossing CFD 2013-01 - 476 866 866 23,576 22,710 Neighborhood Lighting Dist 18,333 10,985 10,869 10,869 3,370 (7,499) Neighborhood Park Maint CFD 43,788 45,973 46,996 46,996 52,048 5,052 Neighborhood Water Quality Dist 13,091 10,532 10,373 10,373 4,270 (6,103) NNFP Drainage Fee - - 750,000 750,000 325,000 (425,000) NNFP Public Facilities Fee - - 200,000 200,000 200,000 - NNFP Public Land Acquisition Fee - - 50,000 50,000 50,000 - Northside Subdiv Maint Dist 5,243 5,318 5,288 5,288 1,651 (3,637) NW Land Park CFD 2013-02 7,493 9,796 10,027 10,027 5,711 (4,316) Oak Park PBID 2,461 2,811 2,778 2,778 2,741 (37)
Old Sacto Maint Dist 4,814 2,870 2,840 2,840 3,345 505
Parkebridge CFD 2014-07 4,801 5,358 9,125 9,125 7,238 (1,887) Pow er Inn Area Prop & Business 3,814 3,372 3,321 3,321 3,194 (127) Pow er Inn Rd Md 2003-01 4,675 3,586 3,565 3,565 1,169 (2,396) Railyards Impact Fee - - - - 50,000 50,000
Railyards Maint CFD No 2014-04 6,214 8,012 8,205 8,205 6,539 (1,666) River District Impact Fee - - 25,000 25,000 25,000 -
Sac Services CFD 2018-05 - 8,664 9,866 9,866 7,415 (2,451) Sac Tourism Marketing District 72,357 130,723 72,908 72,908 72,908 - SacMaintCFD2014-04 Annex Areas 9,493 13,419 19,300 19,300 9,607 (9,693) SacMaintCFD2014-04 Area 01 10,361 10,367 16,820 16,820 5,613 (11,207) So Natomas Comm Improv 1,520 8,742 - - - -
So Natomas Facility Benefit 23,456 16,353 - - - -
Special District Info/Rpt Sys 3,437 4,296 - - - -
Stockton Blvd BIA 2,804 9,330 - - - -
Stockton Blvd PBID 2,589 6,293 2,779 2,779 2,771 (8)
Subdiv Lndscpng Maint Dist 28,872 29,605 28,622 28,622 13,827 (14,795) Sutter Business Imprvmt Area 64,341 116,079 150,000 150,000 200,000 50,000 The River District PBID 2,727 2,984 2,947 2,947 2,879 (68) Tow nship 9 CFD No. 2012-06 6,358 9,893 10,143 10,143 2,382 (7,761) Village Garden N.-Mtce Dist #1 16,076 7,803 6,663 6,663 1,791 (4,872) Willow creek Assmnt Md 9,308 6,638 6,590 6,590 4,080 (2,510) Willow creek Lndscpng CFD 5,595 5,657 5,733 5,733 5,430 (303) Total $ 11,000,052 $ 11,804,250 $ 14,005,250 $ 14,005,250 $ 14,411,590 $ 406,340 Change
Finance FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Accounting Division $ 2,579,708 $ 2,872,114 $ 3,169,938 $ 3,169,938 $ 3,183,331 $ 13,393 Budget Office Division 1,173,510 1,503,826 1,693,588 1,693,588 1,736,700 43,112 Office of the Director Division 833,652 781,589 709,097 709,097 666,870 (42,227) Revenue Division 3,125,117 3,197,761 3,815,032 3,815,032 4,188,003 372,971 Payroll Division 1,130,160 1,206,596 1,243,018 1,243,018 1,268,106 25,088 Procurement Division 846,112 986,552 1,056,389 1,056,389 1,215,908 159,519 Infrastructure Finance Division 1,311,794 1,255,811 2,318,188 2,318,188 2,152,672 (165,516) Total $ 11,000,052 $ 11,804,250 $ 14,005,250 $ 14,005,250 $ 14,411,590 $ 406,340 219
FY2023/24 Proposed Budget

Staffing Levels

PERFORMANCE MEASURES

Accounting Division

Review and approval of vendor payments is centralized in order to ensure consistency with generally accepted accounting principles and the City's procurement policies. Timely vendor payments fulfill the City's obligations relative to contract compliance and in some circumstances allow the City to take advantage of prompt payment discounts. The Accounts Payable Automation Project is expected to improve the timeliness of vendor payments.

Finance Administration Division

Delivering timely and quality financial planni ng and reporting documents is important to the City's goals of transparency and p rudent financial management.

Procurement Division

Issuing centralized purchase orders ensures compliance with the City's procurement policies and procedures. Timely review and issuance of purchase orders is critical in fulfilling the program and service delivery needs of Departments.

Change
Finance FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Accounting Division 20.00 20.00 20.00 20.00 20.00 -
Budget Office Division 7.00 8.00 8.00 8.00 8.00 -
Office of the Director Division 3.00 3.00 3.00 3.00 3.00 - Revenue Division 40.00 40.00 40.90 40.90 40.90 -
Payroll Division 8.00 8.00 9.00 9.00 9.00 -
Procurement Division 7.00 7.00 7.00 7.00 8.00 1.00
Infrastructure Finance Division 6.00 6.00 6.00 6.00 7.00 1.00 Total 91.00 92.00 93.90 93.90 95.90 2.00
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of vendors paid w ithin 30 days 78% 83% 82% 80% 80% Number of days for Accounting to review and approve
a vendor invoice and process a payment 4 4 4 4 4
"Prompt Payment" discounts taken $100,000 $114,597 $82,365 $100,000 $80,000 "Prompt Payment" discounts lost $10,000 $20,044 $39,788 $10,000 $30,000 Percent of discounts taken 91% 89% 69% 90% 73%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Obtain unmodified audit opinion on Annual
Comprehensive Yes Yes Yes Yes Yes
Obtain Government Finance Of ficers Association
Certificate of Achievement for Annual Comprehensive
Financial Report Yes Yes Yes Yes Yes
Proposed balanced budget presented to City Council 60
days prior to the beginning of the fiscal year Yes Yes Yes Yes Yes Obtain California Society of Municipal Finance Officers Operating & Capital Budgeting Aw ards Yes Yes Yes Yes Yes FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of days for Procurement Services to review a
requisition and issue a purchase order 3 3 3 3 3
220
FY2023/24 Proposed Budget

Revenue Division

Collection of revenues associated with the provision of specific programs and services reflects prudent financial management and is necessary to achieve the resources incl uded in the City's annual budget. Invoices unpaid for 30 days or longer are considered delinquent. Collection efforts on delinquent invoices are initiated centrally by the Revenue Division to recover funds owed to the City for services provided.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of delinquent receivables collected 50% 50% 50% 50% 50% 221
FY2023/24 Proposed Budget

222
FY2023/24 Proposed Budget

17 SECTION - 17
Fire
223
FY2023/24 Proposed Budget

224
FY2023/24 Proposed Budget

Fire
Committed to excellence in enhancing and protecting life, property, and the environment.

The Fire Department started serving the residents of Sacramento in 1850 as a volunteer organization. In 1872, the Department became the first paid professional fire department west of the Mississippi. The Department responds to many types of emergencies including fires, emergency medi cal calls, hazardous materials incidents, and specialized rescues, such as water, vertical, confined space, and animal. The Department provides emergency services, fi re code enforcement, public education, and fire investigations.

 Fire Administrative Services: Responsible for departmental support of budget, revenues, accounts payable, procurement,
contracts, council reports and grants. Provides
personnel services including hiring, payroll,
workers’ compensation, and testing.

 Fire/Emergency Medical
Services (EMS):

Responds to fires, technical (e.g., Urban Search
& Rescue, water, and heavy rigging), rescues,
hazardous materials incidents, wildland fires, and
other emergencies. Provides emergency
medical services including advanced life support
and transportation.

 Office of the Chief Responsible for developing and providing direction for the Department.

 Technical Services: Provides essential support functions to all divisions, which includes acquisition and repairs
of necessary equipment, information technology;
coordination of all facility maintenance, repairs,
and construction; and fleet maintenance, repairs,
and acquisition. Enforces codes and ordinances
related to fire and life sa fety issues, completes
plan reviews and conducts inspections of
construction pro
jects, coordinates annual life
225
FY2023/24 Proposed Budget

safety inspections of commercial buildings, and
investigates fires.

 Training/Professional
Standards:

Responsible for essential fire recruit training
including in-service, continuing education, and
outreach/recruitment. Provides oversight and
investigative services related to personnel and
civilian complaints and disciplinary actions.

PROGRAMS/SERVICE HIGHLIGHTS

 Successful recruitment and hiring of th e department's 23rd Fire Chief, Chris Costamagna, two new Deputy Chiefs, and three Fire Assistant Chiefs.  Developed EMS Trainee Job Specificati on, Tuition Assistance Agreement, Job Announcement, and all processes and manuals to run the program effectively. Job posted and closed at 150 applicants within 14 hours for 20 positions.  The Sacramento Fire Department (SFD) ran 109,342 incidents, a 3.5% increase in call volume. The Sacramento Fire Department EMS Division totaled 72,338 incidents in 2022.
 Investigated 528 Fires where 47% of the fires investigated were (Arson) incendiary, leading to a 35% arrest rate.
 Successfully hosted a two-day Girl's Camp with 46 campers, a 46% increase from the previous year. The total percentage of youth of color is 57%. Thirty-six campers resided in the City and County of Sacramento.
 The recent opening of statio n 14 demonstrates our ongoing commitment to upgrading and replacing our aging infrastructure.
 The training division provided 138,537 hours of training through the Los Rios Community College Educational partnership and 74,278 hours of apprentice level training through the California Joint Apprenticeship Committee (CALJAC) partnership—a total of 212,815 training hours is a record high for the training division.

DEPARTMENT EFFICIENCIES

 Continued to support the City of Sacramento’s COVID prevention plan.  Continue to collaborate with th e fleet division to ensure the management of the fire equipment replacement cycle. While addr essing supply chain and vehicle parts issues.
 Achieved State Fire Training (SFT) and California Specialized Training Institute (CSTI) Site certification for Hazardous Materials Technical Specialist series to allow course delivery for SFD personnel qualification to assist with Type1 Hazardous Materials Unit staffing.
226
FY2023/24 Proposed Budget

 The new Construction Inspection Unit will continue to utilize emerging technology offered by the city to streamline scheduling and expa nd flexibility in conducting inspections. This has allowed for increased availability to accommodate time-sensitive inspection requests and increased accessibility to the development community.  Continued to work with our EM S partners in the surrounding area to develop a plan to distribute EMS calls according to the urgency and severity of the call.  Continued evaluations of the EMS Division to determine cost-effective measures to provide good community service.

OBJECTIVES FOR FY2023/24
 The department will continue to work toward s establishing a greater connection with our community-based organizations (CBOs), neighborhood leaders, and organizations as we fortify the department.
 The Fire Logistics Division is investi gating a new asset manage ment software to streamline equipment management and provide easier re-supply.  Collaborate with City Departments and the community on developing and implementing a Telehealth Program, whic h will provide precise service to the community.
 Plan and execute promotional assessment processes for the rank of Battalion Chief and Captain at the direction of the Executive Team.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Emergency Medical
Response
Delete vacant dual role firefighter
paramedic/Emergency Medical Technician (EMT)
positions (18.0 FTE Firefighter) and convert into
single role positions (15.0 FTE Fire EMT and 15.0
FTE Fire Paramedic) and add 10 positions (5.0 FTE
Fire EMT and 5.0 FTE Fire Paramedic) to implement
the Single Role Program. Add positions (3.0 FTE
Assistant Chief, 1.0 FTE Fire Captain Admin, 3.0 Fire
Captain) to manage the day-to-day operations of the
Single Role Program. Positions will be offset by the
deletion of the positions, new Advanced Life Support
revenues and the Intergovernmental Transfer
commitment of General Fund Balance.

General (2,745,201) 2,745,201 29.00
Fire Investigation Add a position (1.0 FTE Fire Investigator II) to determine fire origin and cause and the detection and
apprehension of parties responsible for committing
arson, fire-related crimes, and insurance fraud.

General - 305,788 1.00 227
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Department Budget Summary

Division Budget Summary

Staffing Levels

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Fire Prevention Increase funding for the addition of two fleet vehicles for Fire Prevention Officers. Costs will be offset by
the projected increase in the fire prevention revenues.

General (82,000) 82,000 - Fire Suppression Add a position (1.0 FTE Fire Captain Admin) in response to Assembly Bill 542 by early
intervention/prevention, thus creating a healthier
workforce.

General - 318,678 1.00 Various Increase revenues in the Fire Prevention, Operations, Special Operations and Emergency Medical Services
divisions to better align with actual revenues received in prior years.

General (4,186,112) - - Total Change: $ (7,013,313) $ 3,451,667 31.00 Change
Fire FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $153,145,653 $157,986,266 $153,249,453 $153,249,453 $171,238,640 $ 17,989,187 Other Services and Supplies 16,741,409 20,236,451 18,947,019 18,936,749 18,975,503 38,754 City Property 210,217 474,858 955,488 955,488 522,038 (433,450) Multi-Year Operating Projects - 70,943 885,000 - 1,664,500 1,664,500 Transfers 20,765 22,984 - - - -
Labor and Supply Offset (26,640,614) (48,167,385) (701,797) (701,797) (698,277) 3,520 Total $143,477,430 $130,624,118 $173,335,163 $172,439,893 $191,702,404 $ 19,262,511 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $142,977,430 $122,209,256 $162,949,260 $162,053,990 $181,080,966 $ 19,026,976 Measure U - 7,914,862 9,885,903 9,885,903 10,121,438 235,535 Risk Mgmt 500,000 500,000 500,000 500,000 500,000 -
Total $143,477,430 $130,624,118 $173,335,163 $172,439,893 $191,702,404 $ 19,262,511 Change
Fire FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Budget Summar y Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Fire Chief Division $ 649,929 $ 797,846 $ 816,728 $ 816,728 $ 870,283 $ 53,555 Fire Ops/EMS Division 117,725,794 101,549,261 137,728,622 137,718,352 153,360,721 15,642,369 Training/Professional Standards Divsion 2,535,010 5,183,153 8,648,087 8,538,087 9,171,757 633,670 Tech Services Division 21,088,546 21,719,024 24,217,533 23,442,533 26,351,911 2,909,378 Fire Administrative Services Division 1,478,150 1,374,834 1,924,193 1,924,193 1,947,732 23,539 Total $ 143,477,430 $130,624,118 $173,335,163 $172,439,893 $191,702,404 $ 19,262,511 Change
Fire FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Fire Chief Division 3.00 3.00 3.00 3.00 3.00 - Fire Ops/EMS Division 616.00 614.00 615.00 615.00 644.00 29.00 Training/Professional Standards Divsion 28.50 35.50 45.50 45.50 45.50 - Tech Services Division 51.00 51.00 52.00 52.00 54.00 2.00 Fire Administrative Services Division 14.00 14.00 14.00 14.00 14.00 - Total 712.50 717.50 729.50 729.50 760.50 31.00
228
FY2023/24 Proposed Budget

MEASURE U

The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES

Emergency Operations Division

The accepted national standard for response times is 5:00 minutes in an urban environment. Response time is defined by 4:00 minutes travel time plus 1:00 minute turnout time, which is the time from dispatch received until time leaving the station.

The acceptable standard measurement of ambulance usage is UHU. UHU is the ratio of the number of hours spent delivering emergency medical services to the total number of hours the medic units are available. For example, a UHU of 0.50 indicates that a unit was utilized 50% of the total amount of time available throughout the year. A high UHU means lower availability for calls. Poor availability can negatively affect response times.

The ambulance industry has utilized the following general scale when evaluating overall UHU:

The Fire Department's goal over the next tw o years is to lower its ambulance UHU to an acceptable level while maximizing efficienc y and capturing lost revenue. This will be accomplished by revamping the current EMS deployment model. The department will also continue to work with its EMS partners in the surrounding area to develop a priority dispatch system that would distribute EMS ca lls according to the urgency and severity of the call, helping to further reduce UHU.

Fire Administration Division

The Division is responsible for performing fire plan review services. Over the last year, fire plan review services were on time at a rate of over 90%. Although this is an impressive statistic, the reality is that each customer expects their projects to be reviewed within our published turnaround times. Moreover, the department is working on implementing an expedited plan revi ew service (for customers willing to pay for a faster turnaround time).

Fire Prevention conducts annual permit inspection as mandated by local and state code. These inspections are estimated to increase over the next year due to the number of new buildings constructed that will require annual fire permits. Due to a shift of personnel to work on development services inspections, the number of Annual Fire Permit Inspections conducted dropped.

Funding Category Program Name FTE
FY2023/24
Proposed
Public Safety - Fire
Operations Diversity/Outreach/Recruitment 18.00 3,752,481 Fire Suppression - 6,368,957
Grand Total 18.00 $ 10,121,438
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Average Response Time
5 minutes 42
seconds
5 minutes 30
seconds
5 minutes 30
seconds
5 minutes 30
seconds
5 minutes 30
seconds
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Unit Hour Utilization (UHU) 0.40 0.45 0.50 0.45 0.45 FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of fire plan review s completed on time 94% 95% 96.61% 95% 95% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Development Services Fire Inspections conducted 9,967 9,800 9,550 9,500 9,500 229
FY2023/24 Proposed Budget

230
FY2023/24 Proposed Budget

18 SECTION - 18
Human Resources
231
FY2023/24 Proposed Budget

232
FY2023/24 Proposed Budget

Human Resources
The Department of Human Resources deliver s programs and services to customers which result in a positive experience.

The Department of Human Resources (HR) is responsible for providing responsive employment and personnel services to the City’s managers and employees as well as providing information and assistance to exte rnal customers and job applicants. The department is responsible for comprehensive human resources serv ices and programs to enhance efficiency and effectiveness of the organization.

 Benefits Services: Provide employee and retiree benefit administration, new employee benefit
orientations, coordination of the Defined
Contribution Plans Committee, and budgeting
for the department.

 HR Administration: Provide support for exempt hires, contracting support, board, commi ssion, and legislative
support, and special projects.
 Labor Relations: Provide employee contract negotiations, implementation of labor agreements,
discipline, grievance administration, citywide
leave policies, equal employment
opportunity, Americans with Disabilities Act
(ADA) coordination for employees,
applicants, and program participants, and
development of citywide policies and
procedures.

 Employment, Classification &
Development:

Provide employment services, recruiting,
testing, classification and compensation
studies, and citywide training and
organizational development.
233
FY2023/24 Proposed Budget

 Risk Management/
Workers’ Compensation:

Provide environmental health and safety,
insurance, workers’ compensation, and liability
claims management.
 Diversity & Equity Provide ongoing training in racial equity practice, applying depart equity
assessments, and monitor performance
measures in operatio nalizing department
goals in workforce equity.

PROGRAMS/SERVICE HIGHLIGHTS

 Offered a variety of ongoing and new trainings to City employees via CityYOU, including, but not limited to, Lean Whit e and Yellow Belt Training, “Women in Leadership with BOLD Speaker Series,” Analytical Academy, and the City of Sacramento's internal Leadership Develo pment Program, called "The Leadership Challenge.”
 Continued to manage the citywide classification and compensation study to update job descriptions and evaluate compensation.
 Continued to refine and implement changes to the civil service examination process and protocols to remove barriers and to speed up the hiring process.  Completed audit of employee and retiree enrollment in City dental plans.  Conducted a foundational role of gover nment and racial equity training for employees from each department’s equity teams.
 Audited commercial driver training records to ensure all commercial drivers have a valid and current driver proficiency veri fication and Department of Transportation (DOT) drug and alcohol training record on file. Led efforts to update records for any employees identified as missing one and sa ved all information into the Learning Management System under the appropriate activity created and implemented Smith System driver training.
 The Office of Diversity and Equity began the implementation of the Race and Gender Equity Action Plan (RGEAP) 2020-2025. The RGEAP will utilize assessment measures based on the Global Diversity and Inclusion Benchmark Model, Results Based Accountability framework and Govern ment Alliance on Race & Equity (GARE) theory of change to build a systemic approach to produce positive outcomes that inform our equity efforts along the workforce continuum.  Workers’ Compensation managed a total claim increase of 30% from the prior fiscal period due in large part to the surge in work-related COVID-19 claims which accounted for 35% of new losses.
 Transitioned to a new Employee Assist ance Program provider for enhanced services to employees.
234
FY2023/24 Proposed Budget

 Labor Relations negotiated and implemented an updated “Remote Work” policy, replacing a 25-year-old outdated “Telework” policy.

DEPARTMENT EFFICIENCIES
 Further streamlined the personnel trans action approval process by implementing additional Personnel Action Request subm ission options and ePARs for pay-rate changes and terminations.
 Implemented new “On Demand” training feat ure, providing more flexibility for departments to request and set up trainings ta ilored to the development needs of specific workgroups.
 Contracted with a medical provider to conduct onsite physical exams to efficiently clear candidates through the pre-employ ment screening process during seasonal mass hiring periods.
 Labor Relations staff completed the digital scanning of 40+ years of historical labor relations paper documents.

OBJECTIVES FOR FY2023/24
 Continue to refine recruitm ent, selection, and hiring pr ocesses to remove barriers and increase efficiency.
 Continue to advance the City’s Race & Gender Equity Action Plan (RGEAP) in partnership with the City Manager’s Office.
 Engage with stakeholders on the next phase of the citywide classification and compensation study and continue to manage the study to meet established project goals.
 Identify a solution for electronic reporting that captures incident (accident/injury) information quickly and disseminates it to key stakeholders for timely review and follow through to reduce future events.
 Develop a citywide training matrix that identifies health and safety training requirements by classification.
 Complete audit of employee and reti ree enrollments in City vision plans.  Negotiate 11 successor labor agreements with the City’s recognized employee organizations and update the City’s Skelly officer program.

235
FY2023/24 Proposed Budget

BUDGET CHANGES AND POSITION CHANGES*

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Labor Relations* Delete a position (1.0 FTE Labor Relations Analyst) and add a position (1.0 FTE Labor Relations Officer)
to assist with administrative operations of the City
including the implementation of citywide policies
through negotiations with Recognized Employee
Organizations. The cost will be offset with Services
and Supply savings.

General (168,994) 178,464 -
Labor Relations* Delete two positions (2.0 FTE Investigator) and add two positions (2.0 FTE Labor Relations Administrative
and Equal Employment Opportunity Investigator) to
align the job classification to duties and skills required to perform the assigned work. Departments are
charged back for the cost of investigations.

General (331,416) 341,790 -
Risk Management Remove reimbursements from the Water Fund, Wastewater Fund and Storm Drainage Fund for 1.0
FTE Environmental Health and Safety Specialist.

Risk Management would like to retain this FTE if
additional work arises to support the Utility Funds. If the FTE is filled, departments will be charged back for work performed.

Risk, Water,
Wastewater,
Storm
Drainage
(168,471) 168,471 -
Total Change $ (668,881) $ 688,725 -
* Position offset amounts will be finalized in the Approved Budget.

Division Budget Summary

Staffing Levels

MEASURE U
The following chart summarizes the Office’s Measure U programs.

PERFORMANCE MEASURES

HR Administration Division

The percentage of Equal Employment Opportunity (EEO) or Americans with Disabilities Act (ADA) complaints resolved without filings resulting in cause or monetary settlements. The City's liability is reduced by maintaining policies and educating staff, therefore creating an inclusive and productive work environment. The City has required all employees to re ceive in-person EEO training, and it wil l continue to provide in-person training to comply with state law as well as to provide training to new employees on at least a quarterly basis.

Change
H uman R esources F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division $ 1,515,347 $ 1,645,888 $ 2,006,636 $ 2,006,636 $ 2,139,606 $ 132 ,970 Benefit Services Division 1,016,853 1,165,041 1,202,329 1,202,329 1,205,362 3,033 Employment, Classification & Dev Divison 1,700,365 1,758,658 2,024,944 2,024,944 2,050,499 25,555 Risk Management Administration Division 43,228,268 51,382,963 50,130,348 50,020,348 55,573,441 5,553,093 Workers' Compensation Division 2,591,627 2,958,229 3,143,378 3,143,378 3,183,751 40,373 Labor Relations Division 1,413,666 1,717,034 1,745,476 1,713,476 1,874,279 160,803 Office of Diversity and Equity Division - - 473,906 473,906 456,897 (17,009) Total $ 51,466,126 $ 60,627,813 $ 60,727,017 $ 60,585,017 $ 66,483,835 $ 5,898,818 Change
Human Resources FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division 10.00 9.00 9.00 9.00 9.00 -
Benefit Services Division 9.00 9.00 9.00 9.00 9.00 -
Employment, Classification and Dev Divison 15.00 15.00 15.00 15.00 15.00 - Risk Management Administration Division 17.00 17.00 17.00 17.00 17.00 - Workers' Compensation Division 19.00 19.00 19.00 19.00 19.00 - Labor Relations Division 10.00 10.00 11.00 11.00 11.00 - Office of Diversity and Equity Division - - 3.00 3.00 3.00 - Total 80.00 79.00 83.00 83.00 83.00 -
Funding Category Program Name FTE
FY2023/24
Proposed
Inclusive Economic Development
Operations Office of Diversity and Equity 3.00 456,897 Grand Total 3.00 $ 456,897
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percentage of EEO and ADA complaints resolved
w ithout resulting in cause and/or monetary settlements 61% 71% 57% 68% 70% 237
FY2023/24 Proposed Budget

Labor Relations Division

The Department makes every effort to resolve each labor grievanc e it receives. By resolving grievances internally, the City demonstrates its commitment to upholding the terms of the memorandums of understanding (MOUs) with employee organizations. In addition, the City saves time and other resources by handling grievances internally rather than through arbitration. Human Resources will continue to handle grievances expeditiously and with great diligence to achieve a 100 percent resolution rate.

Risk Management Administration Division

One of the most significant risks of inju ry to Sacramento citizens and employees is vehicle accident s. With the support of City leadership and effective driver training through the Sacramento Re gional Driver Training Facility, the number of City-owned veh icle liability claims have been reduced even as more miles are being driven each year. The number of City vehicle-related liability claims had been as high as 224 in 1997 and has been reduced dramatically since that time.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Percentage of grievances that come to the Department
and are resolved internally 95% 90% 66% 33% 80%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Maintain number of City-ow ned vehicle related claims
filed against the City to under 145. 107 135 145 145 145 238
FY2023/24 Proposed Budget

19 SECTION - 19
Information Technology
239
FY2023/24 Proposed Budget

240
FY2023/24 Proposed Budget

Information Technology
The Department of Information Technology (IT) is committed to ensuring IT investments and strategic business technologi es are innovative, reliable, equitable and deliver the highest possible value to the City and its constituents.

The IT Department manages a full range of information technology and related services for all Departments and the public 24 hours a day, seven days a week. The City’s IT systems, infrastructure, information, and func tions range from relatively simple to extremely complex.

The IT Department is divided into seven areas:

 Department of Utilities IT
Systems Support:

Responsible for providing a full range of IT
services to support the Department of Utilities.
 Enterprise Applications
Management:

Responsible for the development and
management of citywide software systems,
data, and applications.
 IT Operations: Responsible for IT infrastructure services such as security, networks, telecommunications,
servers, storage, and backup to support City
business functions.
 IT Regional Support: Responsible for end-user device management, IT Service Desk operations, and end-user
technical training.
 Office of the Chief
Information Officer (CIO):

Responsible for strategic planning, fiscal, human
capital resources, and administrative
management of the Department.
 Public Safety Information
Technolo
gy:

Responsible for applications development,
network infrastructure, and help desk and
241
FY2023/24 Proposed Budget

desktop support for the Sacramento Fire and
Police Departments.
 Sacramento City 311: Responsible for assisting the public and internal departments with all non-public safety service
requests, and questions regarding City services
and policies.

PROGRAMS/SERVICE HIGHLIGHTS

 The IT Department provides 311 resour ces for our community to request city services. 311 is the primary point of contact with residents and acts as the front door for many. The City's 311 has grown substantially since it started back in 2008.

In 2022, 311 answered over 304K phone calls of which 32K were handled by our virtual agent without any human interacti on. 311 also processed a total 490K requests which originated through phone, w eb, app, and email. Among the many challenges that the City faced, the 311 team was able to accomplish this important work while working remotely.
 Expanded the Sacramento Digital Equity Response program to further address the Communities insufficient or lack of digi tal access which was exacerbated by the COVID-19 pandemic. This program provides digital services, devices, training, and the knowledge necessary fo r Sacramento residents to connect to essential community, education, medical, and government services by leveraging City and private funding sources.

 In the wake of the COVID-19 pandemic , many City employees had to rapidly transform their daily work from an onsite city facility to a remote work environment.

IT supports thousands of remote workers by providing technology tools that allow for seamless and secure remote connectivity to business systems, information, and online public meetings.

DEPARTMENT EFFICIENCIES

 Implemented a Natural Language Interactive Voice Recognition (IVR) system for 311. Voice recognition allows callers to speak and receive services without having to wait to speak to a 311 agent. Hundreds of calls are addressed each day quickly and efficiently by the system. The IVR system frees up 311 agents to handle more complex requests that cannot be handled by the automated system.  Automated hundreds of business proce sses throughout City departments. This included the implementation of digital signat ure processes and workflows along with the automation of hundr eds of online web forms. These efforts enabled the City to efficiently provide vital City se rvices throughout the pandemic with low or no touch services.
 Automated and streamlined in ternal administrative processes such as the Personnel Action Request process used fo r staff hire and re-hire actions, pay changes, separations, promotions, and transfers. These new online based 242
FY2023/24 Proposed Budget

processes resulted in increased producti vity, more accurate information, and improved transparency.
 The Department is committed to cont inuous improvement to reduce energy consumption and support the City’s green initiatives. Among many other initiatives, IT has reduced the number of physical se rvers by more than 95%, resulting in significant energy savings.
 Implemented advanced multi-factor authentication technology across the organization into all public-facing and cloud applications. This solution created a single sign-on dashboard view of pub lished applications and one universal directory for all City and Public Safety users.

OBJECTIVES FOR FY2023/24

 Implement a Grants Management Information System that will administer the end- to-end lifecycle of all Cit y grants (awarded and received), improve business efficiencies, and more effectively m anage grants citywide. The system will streamline the grant request and tracking process and will generate analytics based on grant related data.
 Modernize the Information Technology job classifications and organizational structure under the Citywide Classification Study to reflect the critical work the department performs.
 Enhance and expand the recently im plemented Customer Relationship Management (CRM) system and AI-based IVR system to reduce the 311 call wait time. Additional department s will transition to the CRM system to automate business processes, set service levels and standard turnaround times, increase communication on case status and resolutions with citizens. These initiatives will significantly improve the customer serv ice level and transparency while reducing the operating cost for the department.
 Implement a cloud-based code enforce ment case management system to streamline the business proc ess and improve the custom er experience. The system aims to modernize the business processes by automating and integrating with other enterprise applications. In addition, the system will improve analytics and reporting to help management make data driven business decisions.  Implement a modern Unifie d Endpoint Management (UEM) solution. UEM is the key to addressing mobile and traditional en d-user devices, maintaining continuity of end-user computing operations, and delivering seamless IT administration in the current era of expanded remote work.

243
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES*

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Department of
Utilities (DOU)
Systems Support
Delete a position (1.0 FTE Department Systems
Specialist II) and add one new position (1.0 FTE
Information Technology Supervisor) in the DOU
Systems Support Division to maintain Information
Technology (IT) service levels necessary for Citywide
operations.

General (120,411) 191,091 -
Enterprise
Applications
Management
Add a position (1.0 FTE - Principal Applications
Developer) for the expansion and the support of
centralized Constituent Relationship Management
(CRM), Grants Management System, and other digital
services.

General - 188,864 1.00 Enterprise
Applications
Management
Increase funding for ongoing support and capital
enhancements for the Constituent Relationship
Management (CRM) System. Of the $1.2M, $1M is for
capital enhancements and $200K is for ongoing
operating support.

Various** - 1,200,000 - Enterprise
Applications
Management*
Delete a position (1.0 FTE Senior Applications
Developer) and add two new positions (2.0 FTE
Information Technology Trainees) to the Enterprise
Applications Division to create journey level career
paths for prospective IT candidates.

General (190,836) 194,586 1.00
IT Operations Increase funding for the IPRO Tech eDiscovery and Case Management Tool.

General - 188,970 - IT Regional
Support
Add a position (1.0 FTE Administrative Analyst) to
oversee and manage the Software Asset
Management Program.

General - 131,599 1.00 IT Regional
Support*
Delete a position (1.0 FTE Senior Information
Technology Support Specialist) and add two new
positions (2.0 FTE Information Technology Trainees)
to the Regional Support Division to create additional
capacity to handle IT requests and support incidents.

General (190,845) 194,586 1.00
Public Safety IT Add a position (1.0 FTE - Principal Applications Developer) to support the Fire Department.

General - 188,864 1.00 Total Change $ (502,092) $ 2,478,560 5.00
* Position offset amounts will be finalized in the Approved Budget. ** Various Funds include General Fund, Gas Tax 2016, Recycling and Solid Waste, Storm Drainage, Wastewater and Water.

Change
Information Technology FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 25,680,221 $ 26,615,158 $ 28,686,603 $ 28,686,603 $ 32,009,724 $ 3,323,121 Other Services and Supplies (136,533) 1,235,156 1,531,435 1,531,435 1,582,450 51,015 City Property (392,642) (516,933) 369,195 369,195 369,195 - Multi-Year Operating Projects - - 460,000 460,000 460,000 - Transfers (869,511) (866,994) (767,836) (767,836) (814,870) (47,034) Labor and Supply Offset (1,064,786) (664,917) (825,470) (825,470) (856,786) (31,316) Total $ 23,216,749 $ 25,801,469 $ 29,453,927 $ 29,453,927 $ 32,749,713 $ 3,295,786 244
FY2023/24 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 12,662,725 $ 14,147,930 $ 17,457,782 $ 17,457,782 $ 20,915,234 $ 3,457,452 4th R Program 16,000 16,000 16,000 16,000 16,000 -
Gas Tax 2016 107,191 131,471 128,272 128,272 151,414 23,142 Interdepartmental Service 8,778,131 9,368,683 9,240,302 9,240,302 9,049,522 (190,780) Measure U - 489,277 718,773 718,773 709,218 (9,555)
Parking 10,955 14,000 13,282 13,282 17,224 3,942
Recycling and Solid Waste 1,268,502 1,184,222 1,396,259 1,396,259 1,370,529 (25,730) START 5,000 5,000 5,000 5,000 5,000 -
Storm Drainage 46,009 53,798 92,162 92,162 47,756 (44,406) Wastew ater 61,149 65,995 66,452 66,452 76,878 10,426
Water 135,726 167,311 156,102 156,102 210,937 54,835
Worker's Compensation 125,361 157,782 163,541 163,541 180,001 16,460 Total $ 23,216,749 $ 25,801,469 $ 29,453,927 $ 29,453,927 $ 32,749,713 $ 3,295,786 Change Information Technology F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Cityw ide GIS Support Division - - $ 1,855,430 $ 1,855,430 $ 2,143,367 $ 287,937 DOU Systems Support Division 3,703,414 3,831,630 4,151,393 4,151,393 4,662,024 510,631 Enterprise Applications Management Division 5,226,691 5,292,393 4,035,941 4,035,941 4,698,392 662,451 IT Regional Support Division 2,465,031 2,652,450 2,749,291 2,749,291 3,004,591 255,300 Office of CIO Division 357,536 1,486,121 3,326,434 3,326,434 3,081,894 (244,540) Public Safety IT Division 4,058,203 4,302,089 4,549,716 4,549,716 5,223,703 673,987 Sacramento City 311 Division 3,017,570 3,476,170 3,783,302 3,783,302 4,002,441 219,139 IT Operations Division 4,388,304 4,760,617 5,002,420 5,002,420 5,833,301 830,881 Total $ 23,216,749 $ 25,801,469 $ 29,453,927 $ 29,453,927 $ 32,749,713 $ 3,295,786 Change
Information Technology FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Cityw ide GIS Support Division - - 13.00 13.00 13.00 -
DOU Systems Support Division 27.00 27.00 27.00 27.00 27.00 - Enterprise Applications Management Division 45.00 45.00 33.00 33.00 35.00 2.00 IT Regional Support Division 20.00 20.00 20.00 20.00 22.00 2.00 Office of CIO Division 6.00 7.00 7.00 7.00 7.00 -
Public Safety IT Division 29.00 30.00 30.00 31.00 32.00 1.00 Sacramento City 311 Division 41.50 41.50 41.50 41.50 41.50 - IT Operations Division 30.00 30.00 30.00 30.00 30.00 -
Total 198.50 200.50 201.50 202.50 207.50 5.00
245
FY2023/24 Proposed Budget

MEASURE U
The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES
IT 311 Division

The percentage of calls answered is a measure of call center st affing, self-service effectiveness, and the demand for the servi ces offered by the City.

IT Regional Support Division

The IT Department tracks support requests and regularly surveys internal customer sa tisfaction. Satisfacti on survey requests ar e automatically generated for all customers who contact the department for IT support.

IT Operations Division

The IT Operations Division and Public Safe ty IT Division maintain and operate the City 's network, telecommunications, and fiber systems that support enterprise voice and data systems. Network and telecommunication systems are mission critical and an integral part of City business operations. This performance measure captures the network syst em availability/uptime percentages excludin g scheduled maintenance periods.

The IT Operations Division manages and maintains a wide variety of data and systems that house critical mission information for City business systems. This performance measure tracks the system uptime/availability percentage rate for the enterprise database systems.

Funding Category Program Name FTE
FY2023/24
Proposed
Community Resoonse
Operations Sacramento City 311 - 315,771
Miscellaneous
MYOP Digital Equity - 200,000
Operations IT Regional Support - 35,000
PD Systems Support - 38,447
Youth
Operations Office of CIO - 120,000
Grand Total - $ 709,218
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of 311 calls that are answ ered 80% 84% 73% 80% 80% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Respondents rating the quality of IT service as good or excellent 80% 98.3% 99% 99% 99%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Netw ork services available
Public Safety systems 99% 99% 99% 99% 99%
All other systems 99% 99% 99% 99% 99%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Enterprise database system available 99.9% 99.9% 99.9% 99.9% 99.9% 246
FY2023/24 Proposed Budget

Enterprise Applications Management Division

The objective of the Open Data Initiative is to promote increased transparency, accountability, and efficiencies by making public data available in a reliable standardized electronic form. The site contains options for citizens to request new datasets, easily embed data in websites, and share information with social media networks. This performance measure reports and tracks the number of datasets published.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Data published on OpenData 85 110 120 143 150
247
FY2023/24 Proposed Budget

248
FY2023/24 Proposed Budget

20 SECTION - 20
Police
249
FY2023/24 Proposed Budget

250
FY2023/24 Proposed Budget

Police
The mission of the Police Department is to work in partnership wi th the community to protect life and property, solve neighborhood problems, and enhance the quality of life in our City.

The Police Department (PD) is dedicated to the philosophy of service and professionalism through the principles of community policing and endeavors to build public trust with all member s of the community. The D epartment is committed to transparency, fairness, and impa rtiality and supports accountability at all levels of the organization. The men and women of the PD are a professional and well-trained police force (769 sworn positions and 365.16 professional staff posit ions). All PD employees value the diversity of the public they serve and strive to prov ide a strong fabric of public safety through the implementation of best practices and dedicated service.

 Office of Investigations: Responsible for the development of information leading to the arrest of criminal offenders. This
office encompasses the following divisions:

Forensics; Evidence and Property; Records;
Human Resources; and Research, Development
and Training.

 Office of Operations: Responsible for providing frontline police services, including the Patrol division (located
among three neighborhood substations) and the
Communications division (911 Center).

 Office of the Chief: Responsible for developing and communicating the Department’s vision. This office oversees the
Public Information Office, Government Affairs,
Internal Affairs, Professional Standards, Finance,
Fleet Management, Public Safety Information
Technology, and Special Projects units.

 Office of Specialized Services: Responsible for Outreach and Engagement, Support Services, Contract Services, Emergency
Services, Office of Violence Prevention, and the
Metro division which includes specialt
y teams
251
FY2023/24 Proposed Budget

such as the K9, Special Weapons and Tactics
(SWAT), and Air Operations units.

PROGRAMS/SERVICE HIGHLIGHTS

 In October 2022, the Sacr amento Police Department was one of six cities across the country who were awarded the National Public Safety Partnership (PSP) grant through the U.S. Department of Justice Bureau of Justice Assistance (BJA). The National Public Safety Partnership was established by the U.S. Department of Justice (DOJ) to provide an innovative fr amework to enhance federal support of state, local, and tribal law enforcement and prosecut ion authorities in enhancing public safety. PSP supports law enforcement and community partners in deploying data-driven, evidence-based strategies tailored to local needs. This grant, valued at $700,000, will provide expedited, coordinated training and technical assistance (TTA) and an array of resources from DOJ to enhance local public safety strategies. This grant has already enhanced SPD’s al ready strong partnerships with our local and Federal law enforcement partners.

 Continued to focus training efforts through the Advanced Officer Training (AOT) Team. The primary role of the AOT Team is to seek, develop, refine, and deliver the highest caliber of law enforcement related training utilizing a variety of modalities to engage the learner s, improve officers’ skills, abilities, perspectives, and wellness, thus improving outcomes in the field. Training is designed to be seamless and integrated throughout each em ployee’s career. The AOT team develops training that is consistent with department policy, contemporary law, current industry best practices, and in compliance with California Peace Officer Standards and Training (POST). This training includes crisis intervention, less- lethal tools and tactics, implicit bias, critical decision making, peer intervention, and de-escalation. The Emergency Vehicle O peration Course ( EVOC) instructors developed and administered augmented driver ’s training focused on the highest employee collision factors in our continued efforts to reduce the collision rate. A list of all course curriculum can be f ound on the Department’s website under the transparency tab.

 Continued to build community tr ust through transparency and community partnerships. The Department has bolstered transparency efforts by encouraging inclusion, keeping residents better info rmed about major inci dents, and fostering collaboration between the Department and community- based organizations. PD partnered with organizations such as Neig hborhood Wellness, Brother to Brother and other nonprofits, faith- based leaders, and education administrators to co- produce safer, more positive, and longer-l asting outcomes. PD has endeavored to keep the community more informed th rough a variety of sources including traditional news outlets, social media, web-based media, and face-to-face interactions at regular and special meetings with community members. 252
FY2023/24 Proposed Budget

 Continued to invest in the health of Department employees based on an enhanced Employee Services Unit (ESU) focused on building employee and organizational resiliency through physical, emotional, and financial wellbeing. The Department used wellness grant funds to create and im plement a POST certified course for employees that provided knowledge, tr aining, and tools to develop anxiety reduction techniques, healthy work-life balance, mindfulness, physical fitness, financial fitness, and creating supportive employee systems. The Department has been awarded state funding for the addition of a Law Enforcement Wellness consultant to develop an annual assessm ent and evaluation of all sworn and professional staff. The Department believes that investment in employee wellness will assist officers and prof essional staff in making bet ter work-related decisions resulting in better outcomes for our community.
 Continuous recruiting efforts with a focu s on diversity recruitment through print, digital, streaming, and social media platforms. These efforts range from traditional recruiting events to new digital cont ent creation and delivery utilizing new technologies such as immersive 3D virtual reality experiences. Recruiting efforts have become more focused through program s such as the 30x30 Initiative, the California State University Sacrament o’s Law Enforcement Candidate Scholars programs, and the Hiring Pipeline Program.

 Continue violence prevention efforts with the transfer of the City’s Office of Violence Prevention to the Police Departm ent. This office has been responsible for the City’s response to gang and gun viol ence which includes administering a gang prevention and intervention gr ant program and overseeing the implementation of other ev idence-based violence pr evention activities. OVP continued the Evidence-Based Community Violence Intervention (EB-CVI) and Evidence-Based Violence Interruption, Disruption, and S uppression (EB-VIDS) grant programs in FY2022/23. OVP will continue to operate the programs in FY2023/24.

DEPARTMENT EFFICIENCIES
 The Department has worked collaboratively with the City and contractors to create promotional and hiring exams that are both gender and race neutral in alignment with the City’s Workforce Equity Goals. Additionally, the hiring process has been converted to “blind applications” to ensure that biases are minimized or eliminated in the hiring and promotional processes. The Department continues to examine the recruiting and hiring process to ensure it is fair, equitable, and accessible to all members of our community.
 Continued to build upon the existing Admi nistrative Services Division which among other units, includes the Professional Standards Unit, the Inspections and Standards Team, the Force Investigat ion Team, and the Video Redaction Team.

The responsibilities of these units include the monitoring of changing law to assure policy compliance and best practices, conducting department audits, and administrative investigations to ensure superior service and the redaction of video to assure timely release in compliance with State law and City policy. 253
FY2023/24 Proposed Budget

 The Department continues to expand and integrate the use of emerging technologies such as Police Observat ion Devices (PODs), Unmanned Aerial Systems (UAS), the Real Time Crime Center (RTCC), and the deployment of smart phones to operations staff to enhance connectivity to e ssential law enforcement databases. The Department’s 141 PODs are strategically located throughout the city and in 2022, they enabled officers to respond to and investigate nearly 1,000 POD generated calls-for-service. In addition, officers use POD data to conduct follow-up on criminal investigations. The Department expanded the UAS program which assists with area sear ches, rooftop checks, yard searches, searches for missing persons, and scene assessment. The program enhances both community and officer safety while increasing empl oyee efficiency. This program is an additional layer of de-escalation utilized by officers. The RTCC allows for the centralization of data from various sour ces, all of which can be displayed on a video wall system. Information from the RTCC is used to provide real-time information during critical incidents and large-scale events.  Continued to work diligently to redac t and release video, audio, and other records related to incidents which fall under t he release requirements mandated by State laws (e.g., Senate Bill (SB) 1421 (2017/2018) and Senate Bill 16 (2021/2022)). The Department has also published a comprehens ive index of incidents meeting the criteria for public disclosure which is now posted to the Department’s transparency website. This index will be continually updated, and ad ditional materials will be added as they become available to provide accountability and transparency to the public.

OBJECTIVES FOR FY2023/24
 Expand community engagement and transparency
o Maintain, enhance, and expand the Department transparency webpage;

o Proactive release of videos that are of public interest in addition to officer- involved shooting videos;
o Partner with academic institutions to gather community input through continued surveys and studies, specifically an updated survey following the 2019 effort will be conducted by the California Endowment, California Wellness, California State University Sacramento (CSUS), and the University of San Diego;
o The addition of profes sional staff to expedite SB 1421, SB 16, and other Public Records Act requests;
o Refocus professional staff to comp ly with reporting requirements to the POST Certification Commission as required by SB 2 (2021/2022); o Intentional and increased focus on attr acting, hiring, and retaining a more diverse workforce through a variety of virtual and in-person efforts; 254
FY2023/24 Proposed Budget

o Continue to foster collaborative partnerships with City departments and external organizations focused on youth engagement; and o Continue to participate in the 30x30 Initiative to address the under- representation of women in line-level and leadership law enforcement positions.
 Reduce violent crime
o Continue to collaborate with the Offi ce of Violence Prevention to work together on integrated strategies;
o Expand upon existing relationships and viol ent crime strategies with local, State, and Federal law enforcement partners with a focus on violent crimes through the strategies of the PSP grant;
o Work closely with Sacramento-area non-profit organizations focused on prevention, intervention and disruption of the cycle of violence; o Partner with California State Un iversity Sacramento’s Institute of Social Research (ISR), in surveying comm unity residents to solicit feedback regarding rising violent crime, including gun violence; o Partner with the University of S an Diego which is leading a community survey to assess community concer ns and seek input on community policing strategies. This particular surv ey also will also specifically seek input from the youth in the community;
o Use of internal analytical tools in or der to guide investigative efforts towards the specific areas experiencing increases in violent crime; o The addition of a Police Social Services Administrator focused on services navigation and community healing following incidents of violent crime; o Continue to work closely with WEAVE, Inc. to reduce the incidents of domestic violence in the community and work closely with victims of sex assault and family violence; and
o Complete technology upgrades to the RTCC to include an expanded video wall and improved software.
 Enhance service and professionalism
o Advanced Officer Training continues to create and deliver cutting edge training, to ensure officers can deliver the highest level of service; o The introduction of focused customer service training that includes best practices and instructed, in part, by the Chief of Police; o Expand the Department mentorship progr am for employees at all levels; 255
FY2023/24 Proposed Budget

o Further develop the Inspections and St andards Team’s capacity to conduct methodical audits to assess policy co mpliance, professionalism, and the constitutionality of arrests and the associated reports; o Continue the thorough review of use of force incidents through the Use of Force Review Board process in which senior executive management reviews and evaluates all uses of force to assure policy compliance; o Continue the Use of Force Review Committee’s ongoing evaluation of significant uses of force to seek training solutions that increase community and officer safety and improve outcomes; and
o Establish a mobile police substati on program which increases community engagement and access to police services.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Alarm Billing Unit* Add a position (1.0 FTE Administrative Analyst) to support the increased false alarm workload and verify
companies are complying with ordinance changes.

The FTE cost will be offset by additional revenue
generated from the Alarms Unit.

General (130,000) 131,599 1.00
Communications Unit Add three positions (2.0 FTE Dispatcher III, 1.0 FTE Supervising Dispatcher) to support the City Auditor's
staffing recommendation and ensure the City has
adequate recourses to meet the emergency needs of
the growing population.

General - 422,718 3.00 Community Advancement
Unit
Delete one position (1.0 FTE Administrative Assistant)
and add one position (1.0 FTE Administrative
Technician) in the Office of Specialized Services’
Community Advancement Unit. This aligns the job
classification to the job duties being performed.

General (106,788) 106,401 -
Crime Analysis Unit Add a position (1.0 FTE Administrative Analyst) to support the increased crime analysis and analytical
needs of the Office of Investigations’ Crime Analysis
Unit (CAU) for the community.

General - 131,599 1.00 Crime Analysis Unit Delete six positions (2.8 FTE Security Officer) and add a position (1.0 FTE Program Specialist) in the
CAU. The proposed change adds a necessary
supervisor in the CAU.

General (167,422) 160,236 (1.80)
Department-wide Increase funding to replace ballistic protection equipment every five years. $600,000 is needed for
the front/back replacement cycle.

General - 120,000 - Professional Standards Unit Add a position (1.0 FTE Administrative Analyst) to ensure compliance with AB 481, requiring law
enforcement to create, maintain, track and report on
the use of equipment.

General - 131,599 1.00 Violence Prevention Unit Add a position (1.0 FTE Administrative Technician) for administrative support and reporting functions.

Measure U - 105,171 1.00 Violence Prevention Unit Continue funding for community-based organizations' efforts to combat violence in Sacramento
communities. The program was established with one-
time ARPA funds (new Multi-Year Operating Project -
I11003200).

Measure U - 1,000,000 - Total Change: $ (404,210) $ 2,309,323 5.20
* Position offset amounts will be finalized in the Approved Budget. 256
FY2023/24 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

MEASURE U

The following chart summarizes the Department’s Measure U programs.

Change
Police FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $192,923,510 $202,416,418 $208,831,036 $208,831,036 $210,988,090 $ 2,157,054 Other Services and Supplies 10,490,057 13,141,712 12,981,327 12,981,327 13,067,595 86,268 City Property 612,814 382,820 513,119 513,119 513,119 - Multi-Year Operating Projects - - 9,065,188 4,102,188 10,288,568 6,186,380 City Debt Service - 13,475 - - - -
Transfers (253,615) (227,150 )--- -
Labor and Supply Offset (45,908,719) (69,408,714) (6,739,427) (6,739,427) (6,692,531) 46,896 Total $157,864,048 $146,318,562 $224,651,243 $219,688,243 $228,164,841 $ 8,476,598 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $157,361,959 $142,224,982 $215,358,739 $210,395,739 $217,693,420 $ 7,297,681 Measure U - 3,585,697 8,728,821 8,728,821 9,907,479 1,178,658 Risk Mgmt 502,089 507,884 563,683 563,683 563,942 259
Total $157,864,048 $146,318,562 $224,651,243 $219,688,243 $228,164,841 $ 8,476,598 Change
Police FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Budget Summar y Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Chief Division $ 16,104,307 $ 14,883,623 $ 12,352,409 $ 20,503,724 $ 28,814,234 $ 8,310,510 Office of Investigations Division 39,686,545 35,072,735 61,244,227 48,379,286 57,352,019 8,972,733 Office of Specialized Services Division 24,435,293 23,798,993 29,145,496 27,474,005 28,590,896 1,116,891 Office of Operations Division 77,637,903 72,563,211 121,909,111 123,331,228 113,407,692 (9,923,536) Total $157,864,048 $146,318,562 $ 224,651,243 $219,688,243 $228,164,841 $ 8,476,598 Change
Police FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Chief Division 58.80 71.80 72.80 72.80 84.00 11.20 Office of Investigations Division 255.50 312.50 311.50 311.50 355.50 44.00 Office of Specialized Services Division 119.66 118.66 123.66 123.66 124.66 1.00 Office of Operations Division 664.00 624.00 621.00 621.00 570.00 (51.00) Total 1,097.96 1,126.96 1,128.96 1,128.96 1,134.16 5.20 Funding Category Program Name FTE
FY2023/24
Proposed
Public Safety - Police
Operations Hiring Pipeline - MU 63.50 5,802,308
Youth
MYOP Gang Prevention and Intervention 1,398,567
Family and Youth Investments 1,300,000
OVP Disruption, Response, Intervention & Prevention 1,000,000 Operations Violence Prevention 3.00 406,604 Grand Total 66.50 $ 9,907,479
257
FY2023/24 Proposed Budget

PERFORMANCE MEASURES

Department-wide

*Table 8: Offenses Known to Law Enforcement_California_By_City_2020, source: https://cde.ucr.cjis.gov/LATEST/webapp/#, FBI Uniform Crime Report, January – December 2020.

*Table 8: Offenses Known to Law Enforcement_California_By_City_2020, source: https://cde.ucr.cjis.gov/LATEST/webapp/#, FBI Uniform Crime Report.
** Participating Agency Staffing Report, source:
https://post.ca.gov/Portals/0/post_docs/hiring/le-employment-stats.pdf, January 2021.

The measure of crime is an indicator of safety in a community. Safe neighborhoods and safe public spaces create a sense of wellbeing for residents and visitors. Crime rate comparisons to California’s other large cities provide a baseline to measure progress in managing crime. The universal benchmark of crime is referred to as Part 1 crime. Part 1 crimes are reported to the US Department of Justice as part of the Uniform Crime Reporting (UCR) system and include: Ho micide, Rape, Robbery, Aggravated (Felony) Assault, Burglary, Larceny (Theft), Motor Vehicle Theft, and Arson.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Part 1 Crimes Reported per 1,000 Residents 39.96 37.88 43.76 46.97 42.14 Rank ing*
1 2
3 4
5 6
7 8
9 10
Part 1 Crimes
Reported per 1,000
City Residents
San Diego 20.61
San Jose 27.41
Los Angeles 28.70
Long Beach 32.53
Riverside 33.31
Sacramento 34.28
Fresno 37.42
Bakersfield 45.38
San Francisco 49.38
Oakland 64.57
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Part 1 Crimes Reported per Sw orn FTE Position 28.28 26.22 29.98 32.85 29.33 Workload Part 1 Crimes Sw orn FTE
Measure Reported per per 1,000
Ranking* City Sworn FTE ** Residents**
1 Los Angeles 11.71 2.45
2S a n D i e g o 15.93 1.29
3 Long Beach 18.67 1.74
4 San Francisco 19.81 2.49
5F r e s n o 25.56 1.46
6 Sacramento 25.94 1.32
7S a n J o s e 26.47 1.04
8 Riverside 30.75 1.08
9 Oakland 38.53 1.68
10 Bakersfield 43.61 1.04
258
FY2023/24 Proposed Budget

The above Part 1 crime statistics were retrieved from the Federa l Bureau of Investigation’s (FBI) Crime Data Explorer and contain data received from law enforcement agencies across the country. The data reflected in this tables is from 12,974 of 18,952 reporting agencies from January to December 2020. Sworn FTE data was retrieved from the California Commission on Peace Officer Standards and Training’s (POST) Participating Agency Report, January 2021.

On January 1, 2021, the FBI retired the Summary Reporting S ystem (SRS) and implemented the National Incident-Based Reporting System (NIBRS). In 2021, only 15 of 740 California law enforcement agencies reported NIBRS data to the FBI, and in 2022, 25 agencies made submissions – only three of the top 10 cities reported in 2022. Therefore, there is insufficient 2022 data for comparison.

The Department recognizes that a workforce that mirrors the community it serves is important. It is committed to an intentional and increased focus on attracting, hiring, and retaining a more diverse workforce through a variety of virtual and in-person efforts. The first measure reflects the percentage diversity among all Police employees. The second measure reflects the percentage of new hires into sworn and Hiring Pipeline vacancies. The Department will conti nue its efforts to increase the number of women and minority new hires into sworn and Hiring Pipeline vacancies.

Field Services Division

The timely arrival of a police officer to a reported crime is vi tal to prevent injury or death, apprehend suspected criminals, identify witnesses and evidence, and enhance the solvability of the crime. The Police Department prioritizes all calls for service with emergency and in-progress crimes given the highest prio rity. The response time of all calls is tracked by the Department’s Crime Analysis Unit.

The projections for the remainder of t he current fiscal year and the next fiscal y ear are based on current trends. Comparable jurisdictional data is not available as each agency uses different criteria and policies governing the definition of priority calls for service.

The faster a call to 911 is answered, the faster units can be dispatched and made available at the scene of an emergency. The State of California standard is answering 95% of all 911 calls within 15 seconds. Call answer times are tracked by the Department’s Communications Center. The projection for the remainder of the current fiscal year is based on prior month averages. The projection for next fiscal year is based on the minimum state standard. Actual results vary depending on staffing and call volume.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Percentage sw orn SPD employees w ho are w omen or
minorities 42% 42% 43% 45% 46%
Percentage of new hires into sw orn or Hiring Pipeline Program vacancies that are w omen or minorities 72% 68% 76% 72% 73% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Key Measure in minutes
Median response time for priority 2 and 3 calls
(mm:ss) 10:55 11:36 12:09 12:16 11:44
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Percentage of 911 calls answ ered w ithin 15 seconds 97% 97% 91% 88% 95% 259
FY2023/24 Proposed Budget

260
FY2023/24 Proposed Budget

21 SECTION - 21
Public Works
261
FY2023/24 Proposed Budget

262
FY2023/24 Proposed Budget

Public Works
We keep the City of Sacramento operating and moving forward.

The Public Works Department focuses on delivering public projects in a timely manner, managing parking resources to meet the needs of residents, businesses, employers, and visitors, maintaining transportation infrastr ucture, planning for long-range transportation needs, maintaining the City’s urban forest, managing the City’s fleet, facilities, and real property assets, and providing recycling and solid waste services. These services are the responsibility of the following divisions:
 Engineering Services: Responsible fo r transportation funding support, project development, design and construction, survey and inspection, private development encroachment permits for wo rk in public right-of-way, and map review and approval.
 Facilities and Real Property Management: Responsible for facility maintenance, design management and construction, real estate, Americans with Disabilities Act (ADA) barrier removal, multi-use building management, and citywide mail services.  Fleet Management: Responsible for purchases, maintenance, and management of all fleet assets and citywide fueling infrastructure.  Maintenance Services: Responsible for maintenance of roads and bridges, sidewalks, curbs, gutters, and street scapes, tree health and maintenance, and right-of-way coordination.
 Office of the Director: Responsible for po licy, legislative support, funding, special projects, sustainability efforts, em ployee enrichment, and department-wide support.
 Parking Services: Responsible for curb management, parking enforcement, parking meters, retail lease space, parking garages, parking lots, and operation of the Sacramento Marina.

263
FY2023/24 Proposed Budget

 Recycling and Solid Waste: Res ponsible for recycling and refuse collection, yard waste collection, household hazardous waste collection, household junk pickup, street sweeping, illegal dumping cleanup, and landfill post-closure maintenance and monitoring.
 Transportation: Responsible for maintenance and operations of streetlights and traffic signals, entitlements, traffic studies and invest igations, traffic control devices, and long-range transportation planning including active transportation and design for traffic safety.

PROGRAMS/SERVICE HIGHLIGHTS
 The Transportation Division conducted extensive community engagement and completed the Transportation Priorities Pl an, the first effort to comprehensively prioritize over 700 planned transportati on investments based on community values.
 The Parking Division established the permanent Al Fresco Outdoor Dining Program to allow qualifying local rest aurants to create safe and durable outdoor patios within the City’s right-of-way.
 The Recycling and Solid Waste Divisio n successfully launched an organics recycling program in July 2022. The Div ision delivered over 15,000 food waste only containers to residents who were pr eviously yard waste exempt and began weekly collection for all residential customers starting July 1, 2022.  The City was awarded $7.9 million in State “Building Forward, Library Infrastructure” Grants for f our libraries, including Be lle Cooledge, Central, Del Paso, and Martin Luther King Jr. Libraries. These grants along with $3.9 million of City matching funds will allow the City to address deferred maintenance items at these libraries.
 The Engineering Services Division subm itted nearly $200 million in competitive grant requests for transporta tion project funding from federal, state, and local funding programs.
 The City was awarded nearly $16 million in the inaug ural State Clean California Grant Program.
 The Parking Division, Sacramento Marina operation installed 4 new fuel pumps that are Europay, Mastercard, Visa (EMV ) chip ready and compliant, offering the first ever pay-at-the-pump service for Marina customers.  The Maintenance Services Division a ssisted with weed abatement on a 102-acre lot purchased by the City.
 The Transportation Division completed two transportation plans to improve corridor safety at Freeport Boulevard and Northgate Boulevard, collaborating with community partners to identify feasible corridor concepts that have broad support. 264
FY2023/24 Proposed Budget

 The Transportation Division significantly increased funding for the 2022/23 Speed Lump program and installed treatments on over 30 neighborhood street segments citywide.
 The Transportation Division completed the Traffic Impact Guidelines Update.  The Fleet Division updated all City vehi cles with GPS to newer more advanced tracking devices.
 The first City Electric Refuse Truck was purchased by the Fleet Management Division, projected to be delivered and in service before the end of 2023.  The Engineering Services Division deliver ed 11 capital improvement projects in construction worth over $27 million.
 The Engineering Services Division su pported construction of 61 private development projects totaling over $80 million in public improvements.  The Engineering Services Division provid ed construction oversight for more than 3,500 encroachment permits and offsit e improvement plans, and 2,000 transportation permits for large trucks.
 The Facilities Division completed the $1. 8 million cold shell remodel of the de- commissioned Fire Communications building located in Winn Park.  The Facilities Division completed three pr ojects at Capitol Garage: the Parking Service Operation Center Tenant Improvement, the Stairwell Improvement Project and the Fire Riser Replacement Project.
 The Facilities Division completed the $1.6 m illion in fire repairs that damaged the George Sim Community Center.
 The Facilities Division completed the 35t h Avenue Building’s Heating, Ventilation, and Air Conditioning (HVAC) replacement project.

DEPARTMENT EFFICIENCIES
 The Parking Services expanded the on-str eet reservation program to include a reservation fee for non-metered spaces to help manage on-stre et turnover and keep parking spaces open for public use.
 The Maintenance Services Division launched a program to retrofit 5% of all streetscapes infrastructure with drought-tolerant landscaping every year to reduce maintenance needs and increase water conservation.
 New GPS devices in City vehicles prov ide greater data gathering capabilities, including energy consumption of electric vehicles.
 The Facilities Division continues to design and will ultimately install multiple fleet Electric Vehicle (EV) char gers throughout the city to serve its green fleet, which 265
FY2023/24 Proposed Budget

will allow City employees to charge City Fleet electric vehicles at or near assigned work locations, eliminating the need to travel elsewhere to charge.  The Engineering Services Division c ontinued the practice of using on-call consultants for inspection to handle peak workloads without permanent increases in staffing.
 Supported ongoing implementat ion of the Al Fresco permit module by allowing electronic permit application submittals including yearly renewals and payments.  The Engineering Services Division used ava ilable funding to continue retrofitting streetlights with Light Em itting Diode (LED) to save on energy, equipment, and maintenance costs, as well as reduce negative environmental impacts.  The Engineering Services Division impl emented training with utility companies to improve coordination, communication and understanding of design expectations for relocations and roadway construction.

OBJECTIVES FOR FY2023/24
 Implement a boat lift policy to allow for lifts to be installed at the Marina to encourage long-term customer retention.
 Establish an online dem and-based commuter parking special at City owned garages to support employees who have a hybrid schedule.  Continue to convert decorative turf in medi ans to reduce water consumption to comply with the 2006 Assembly Bill (AB) 1881, which established landscape water conservation standards.
 Continue working with Sacramento communities on creating an Active Transportation Plan to replace the Bicycl e Master Plan and Pedestrian Master Plan.
 Complete an update to modernize the City’s Street Design Standards.  Complete the update to the City’s Transportation Systems Management Program (TSMP) to require new dev elopment to support transportation options other than single passenger vehicles.
 Implement AB 43 speed reduc tion measures to reduce s peed limits in specified locations to address safety concerns.
 Complete an update on the Fleet Transporta tion Policy to effectively manage the use of City vehicles.
 Begin design, permitting, and constructi on on four libraries funded through State “Building Forward, Library Infrastructure” Grants.

266
FY2023/24 Proposed Budget

 Complete the Sacramento Regional Or ganics procurement and find a long-term home for organics recycling in conjunction with the County of Sacramento and the City of Folsom.
 Join the regional partnership which incl udes County of Sacramento, and cities of Citrus Heights, Elk Grove, Folsom, Galt, and Rancho Cordova to meet Senate Bill 1383 edible food recovery regulatory requirements.
 Update the Construction Inspection Manual for the documentation and process standardization of inspections of the City’s public infrastructure.  Work with other departments to create an updated Geographic Information System (GIS) map for all City Capital Improvement (CIP) projects to increase internal and external coordination and to update the public on project status and contact information.
 Create a policy to address decorative street lighting in the City working with official entities such as Property Business Im provement Districts (PBID)s and other business, neighborhood, and community associations.
 Complete the Urban Forest Plan in c onnection with the City’s General Plan and Climate Action and Adaptation Plan.
 Complete the Electric Vehicle Blueprint, installing public chargers at key libraries and community centers.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Engineering
Services*
Delete a position (1.0 FTE Office Specialist) and add
a position (1.0 FTE Senior Accounting Technician) to
improve the organization structure and help facilitate
Private Development projects and employee
supervision. The cost is being offset with projects.

General (92,441) 90,853 - Engineering
Services*
Delete a position (1.0 FTE Electrical Construction
Inspector III) in the Public Works department. Position was transferred to the Department of Utilities.

General (105,065) 105,008 (1.00)
Engineering
Services*
Delete a position (1.0 FTE Supervising Construction
Inspector) in the Public Works department. Position
was transferred to the Department of Utilities to assist with Capital Improvement Program (CIP) projects.

General (162,981) 162,904 (1.00)
Fleet Delete three positions (3.0 FTE Equipment Service Worker) and add two positions (2.0 FTE Equipment
Mechanic I) to provide additional support in vehicle
maintenance and repairs for internal customers. The
cost of the add/deletes provide a net savings.

Fleet
Management
(184,569) 194,590 (1.00)
Fleet* Delete a position (1.0 FTE Senior Equipment Service Worker) and add a position (1.0 FTE Operations
General Supervisor) to oversee fleet shop operations
and increase productivity. The cost is being offset with revenues.

Fleet
Management
(164,640) 161,031 -
267
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Maintenance
Services*
Add a position (1.0 FTE Arborist) to Urban Forestry to
manage all tree related contracts and services. This
position will work with the Department of Utilities and the offsets will come from the following funds: Water
(Fund 6005), Wastewater (Fund 6006) and from
Storm Drainage (Fund 6011).

General (169,425) 167,530 1.00
Parking Services* Delete a position (1.0 FTE Parking Enforcement Officer) and add a new position (1.0 FTE Parking
Enforcement Supervisor) to provide oversight of
enforcement activities in the division. The cost is
being offset with revenues.

General (92,759) 91,155 - Parking Services Add a position (1.0 FTE Administrative Analyst) to manage the newly created Al Fresco Dining Program
and collaborate with local businesses to maintain an
effective program in the downtown and midtown area.

The cost will be offset with revenues.

General (145,000) 131,599 1.00
Parking Services Increase funding in the Parking divisions operating and revenue budgets to support the increase in on-
street reservation operating expenses and to better
align with projected revenues.

General (1,662,000) 712,526 -
Parking Services* Move a position (1.0 FTE Operations General Supervisor) from the Parking fund to the General fund.

Budgeting the labor cost for this position within the
General Fund will better align with the on street
primary duties of the position and the Parking
Services division. The cost will be offset with reduced services and supplies.

General/Parking (174,618) 175,239 - Parking Services Increase funding in the Sacramento Marina Division operating and revenue budgets to support the
increase in Marina operating expenses and to better
align with projected revenues.

Marina (216,500) 88,773 -
Parking Services* Update a vacant (0.5 FTE Senior Parking Lot Attendant) position from 0.5 FTE to 1.0 FTE to provide
additional support in managing the City parking
garages, surface lots, and other locations throughout
the City. The cost is being offset with revenues.

Parking (79,250) 80,147 0.50 Parking Services Delete a position (1.0 FTE Senior Building Maintenance Service Worker) and add a position (1.0
FTE Custodian I) to better align with operational needs in the Parking Service Division. The cost of the
add/delete provides a net savings.

Parking (84,380) 70,043 - Parking Services Increase funding in the Parking Division operating and revenue budgets to support the increase in off street
parking and increase in operating cost.

Parking (1,860,000) 1,087,500 -
Recycling and
Solid Waste*
Move a position (1.0 FTE Administrative Analyst) from
Landfill Operations to Commercial Waste
Compliance. Realigning the FTE will better support
the division in regulating and enforcing commercial
waste haulers within the city since Sacramento
Waste Authority assistance terminated. The cost will
be offset with services and supplies.

General/
Recycling and
Solid Waste
(132,166) 126,974 -
Total Change $ (5,325,794) $ 3,445,872 (0.50)
* Position offset amounts will be finalized in the Approved Budget. 268
FY2023/24 Proposed Budget

Department Budget Summary

Change
Public Works FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 73,528,035 $ 75,278,542 $ 87,331,821 $ 87,331,821 $ 89,020,249 $ 1,688,428 Other Services and Supplies 77,448,754 86,163,534 95,789,562 95,780,907 99,011,439 3,230,532 City Property 14,290,289 8,118,718 33,775,447 37,346,231 28,806,486 (8,539,745) Multi-Year Operating Projects - - 22,025,966 3,927,600 14,970,450 11,042,850 Transfers 546,549 (116,207) 400,655 400,655 400,655 -
Labor and Supply Offset (19,995,861) (19,717,612) (21,720,747) (21,720,806) (22,258,845) (538,039) Operating Transfers 11,096,037 10,661,178 10,750,900 10,750,900 11,839,500 1,088,600 Total $156,913,803 $160,388,152 $228,353,604 $213,817,308 $221,789,934 $ 7,972,626 Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 21,977,909 $ 23,757,866 $ 21,924,944 $ 21,894,230 $ 23,635,918 $ 1,741,688 12th Street Maint Benefit Area 8,400 8,400 9,200 9,200 11,500 2,300 Cal EPA 3,060 128 - - - -
Citation I-5 Maintenance 34,098 46,619 40,000 40,000 40,000 - Del Paso Nuevo Landscaping CFD 9,000 19,500 19,500 19,500 24,700 5,200 Fleet Management 45,510,805 42,363,429 66,421,060 69,896,844 61,841,017 (8,055,827) Gas Tax 2016 5,638,161 7,501,764 8,925,850 6,154,816 7,145,308 990,492 Greenbriar Traffic Congestion 4,768 ---- -
Interdepartmental Service 2,401,352 2,331,646 2,388,982 2,388,982 1,664,763 (724,219) Laguna Creek Maint Dist 46,500 51,579 51,580 51,580 51,580 - Land Park 32,666 5,257 32,850 32,850 32,850 -
Landscaping and Lighting 12,651,909 12,753,330 14,475,000 13,710,000 14,931,950 1,221,950 Marina 999,563 1,124,985 1,014,897 1,014,897 1,060,836 45,939 Measure U - (20,550) 1,270,000 1,270,000 1,270,000 -
N Nat Lndscp 99-02 570,191 588,937 589,380 589,380 655,380 66,000 N Natomas Lands CFD 3 580,000 686,440 615,000 615,000 615,000 - Neighborhood Lighting Dist 25,009 25,009 25,009 25,009 25,009 - Neighborhood Water Quality Dist 33,470 34,473 50,980 50,980 50,980 - New Measure A Maintenance 13,016,447 10,494,214 16,676,087 16,676,087 19,231,429 2,555,342 NMA Safety, Streets, Ped, Bic - - 6,600 6,600 5,500 (1,100) Northside Subdiv Maint Dist 2,830 2,799 6,500 6,500 6,500 - Parkebridge CFD 2014-07 30,005 64,001 64,000 64,000 73,000 9,000 Parking (169,763) (92,642) 6,042,287 6,042,287 7,308,694 1,266,407 Pow er Inn Rd Md 2003-01 10,977 9,919 9,920 9,920 10,024 104 Railyards Maint CFD No 2014-04 81,033 110,705 157,750 157,750 157,750 - R ecycling and Solid Waste 52,014,129 57,205,537 86,067,816 71,622,484 80,242,197 8,619,713 SacMaintCFD2014-04 Annex Areas 29,620 35,165 93,713 93,713 133,713 40,000 SacMaintCFD2014-04 Area 01 63,371 83,266 98,750 98,750 98,750 - State Route 160 1,000---- -
State Route 275 2,000---- -
Storm Drainage 336,050 360,499 406,000 406,000 462,475 56,475 Street Tree Fee (401)---- -
Subdiv Lndscpng Maint Dist 306,645 330,975 334,410 334,410 348,237 13,827 Tow nship 9 CFD No. 2012-06 - - 2,000 2,000 2,000 -
Traffic Safety 412,145 253,000 350,000 350,000 350,000 - Transportation Development Impact Fee 58,634 81,407 - - - - Village Garden N.-Mtce Dist #1 16,894 20,711 25,539 25,539 31,924 6,385 Wastew ater ---- 5 6,475 5 6,475
Water ---- 5 6,475 5 6,475
Willow creek Assmnt Md 28,325 24,785 38,000 38,000 38,000 - Willow creek Lndscpng CFD 147,001 124,999 120,000 120,000 120,000 - Total $156,913,803 $160,388,152 $228,353,604 $213,817,308 $221,789,934 $ 7,972,626 269
FY2023/24 Proposed Budget

Division Budget Summary

Staffing Levels

MEASURE U
The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES
Facilities & Real Property Management Division

This measure indicates how quickly work order requests are completed. Work order categories include "emergency" with a one-day performance standard, "priority" with a seven-day performance standard, and "standard" with a 30-day performance standard.

Change
Public Works FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Engineering Services Division $ (1,061,058) $ (466,105) $ (72,022) $ (237,022) $ (192,022) $ 45,000 Office of the Director 2,219,984 2,182,914 2,593,778 2,593,599 2,359,676 (233,923) Parking Services Division 19,042,432 18,839,588 21,470,502 21,455,200 24,079,053 2,623,853 Maintenance Services Division 21,534,363 22,406,420 28,244,831 25,199,831 29,153,539 3,953,708 Transportation Division 10,235,008 10,719,362 12,554,449 12,228,415 13,352,248 1,123,833 Fleet Management Division 45,510,805 42,363,429 66,421,060 69,896,844 61,841,017 (8,055,827) Facilities & Real Property Mgmt Division 5,879,692 5,468,863 6,670,369 6,654,957 6,552,311 (102,646) Recycling & Solid Waste Division 53,552,576 58,873,680 90,470,637 76,025,484 84,644,112 8,618,628 Total $156,913,803 $160,388,152 $ 228,353,604 $213,817,308 $221,789,934 $ 7,972,626 Change
Public Works FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Engineering Services Division 80.00 80.00 80.00 80.00 79.00 (1.00) Office of the Director 12.00 12.00 13.00 13.00 13.00 -
Parking Services Division 131.05 130.85 130.85 130.85 132.35 1.50 Maintenance Services Division 123.00 123.00 123.00 123.00 124.00 1.00 Transportation Division 71.00 72.00 72.00 72.00 72.00 - Fleet Management Division 83.00 83.00 83.00 83.00 82.00 (1.00) Facilities & Real Property Mgmt Division 71.00 72.00 73.00 73.00 72.00 (1.00) Recycling & Solid Waste Division 176.30 178.30 191.30 191.30 191.30 - Total 747.35 751.15 766.15 766.15 765.65 (0.50)
Funding Category Program Name FTE
FY2023/24
Proposed
Climate Action
MYOP Sustainability Program - 300,000
Community Investments
CIP City Facility Reinvestment Program - 2,100,000 Facility ADA Compliance Program - 500,000 Community Response
MYOP Illegal Dumping - 970,000
Grand Total - $ 3,870,000
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of all facility w ork order requests completed
w ithin a 30-day performance standard 60% 50% 53% 63% 65% 270
FY2023/24 Proposed Budget

Fleet Management Division

This measure indicates what percentage of overall City vehicles are available to operators for City services. The division is collecting information to measure staffing ratios and estimated service demands for each shop to appropriately staff each shop to sustain adequate vehicle availability.

The California Global Warming Solutions Act of 2006 (Assembly Bill 32) requires Califor nia to reduce its GHG emissions to 1990 levels by 2020. The City's Fleet Management Division Sustainability Policy states that annual purchases of fleet replacement vehicles will include a minimum commitment of 50% for alternative fuel and/ or alternatively powered vehicle replacements by 2018, and 75% by 2025. Starting in FY2019/20 target includes renewable diesel purchases, not previously included.

Maintenance Services Division

The Maintenance Services Division is respons ible for the City's street infrastructu re system which includes over 3,118 lane miles of paved roadway. The Maintenance Services Division's goal is to work towards a Pavement Condition Index of 70 (good) from its current rating of 59 (fair). Beginning in FY17 the City updated the method of calculating pavement condition from the Pavement Quality Index to the industry standard Pavement Condition Index.

The Maintenance Services Division is responsible for the street infrastructure system which includes the maintenance of 3,118 l ane miles of paved roadway. Patching potholes is an essential service and on average, the Maintenance Services Division patches 1,281 potholes per month. Our customer commitment is to respond to 311 complaints for potholes within 48 hours of receiving the request.

The City's Urban Forestry Program maintains, sustains, and enhances Sacramento's tree canopy through a variety of programs.

Urban Forestry staff's (internal and contractors) need to prune 8 90 trees monthly on average to stay consistent with our goal o f maintaining a less than seven-year pruning cycle for all of our 75,000 plus public trees. However, beginning in FY20 a lack of staffing has created a backlog for trees pruned.

Parking Services Division

The Parking Division is responsible for the collection and maintenance of over 6,400 paid on-street parking spaces within the Central City. In the last two years the divisi on has worked with downtown and midtown merc hants to repurpose metered spaces to accommodate customer pickup and delivery as well as implementing Al Fresco dining opt ions. Throughout the City, there are over

3.5 million parking meter customer transactions per year.

*Beginning in the last quarter of FY2019/20 results were affect ed by significant decline in re venue due to lack of on-street pa rking meter utilization due to COVID-19.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of City vehicles available at 6:00 AM 93% 93% 92% 92% 95% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of alternative fuel vehicles purchased 45% 46% 59% 61% 75% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percentage of roads w ith a Pavement Condition Index
above 70 (good rating) 27% 25% 24% 24% 24%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percentage of 311 service requests for potholes
responded to w ithin 48 hours 93% 91% 92% 93% 95%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percentage of tree inventory pruned per annual cycle 83% 65% 75% 60% 75% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Revenue generated per parking meter $1,620* $806* $1,317 $1,584 $1,743 271
FY2023/24 Proposed Budget

The Sacramento Marina has 475 available boat slips, which can accommodate boats varying in length from 25 to 50 feet. Historically, the Marina had an average 94 percent occupancy rate; however, during the Great Recession the occupancy rate dipped as low as 44 percent. With the improved economy, new management, and new ameni ties in place, the Marina had a 23 percent increase in occupancy rates from FY2016 to FY2022.

Recycling & Solid Waste Division

California state law requires that at least 50 percent of the waste generated within the city limits be diverted from landfills . While the percent of City-collected residential waste diverted from landfill is below the State threshold (as shown above), as a jurisdiction, the City government collection rate exceeds t he state requirement at 47 percent diversi on for Calendar Year 2021, the latest data available. The difference is largely due to the recycling of construction and demolition material collected by commercial waste haulers, which is not part of the City's residential collection service. Educating customers on proper recycling is central to seeing th ese percentages grow. Over 50 percent of the Division's annual outreach expenditures are spent on increasing diversion.

City Integrated Waste Equipment Operators service almost 18 million garbage, recycling, and yard waste containers. Complaints o f missed collections represent the highest volume of solid waste rela ted calls to City 311; however, the actual number of verifia ble service misses represents only a fracti on of one percent of the total containers collected annually. In FY2017/18 the departmen t redefined the term "misses" to include "kicks," which is when the driver goes back the same day to collect the missed containers if the incident is reported prior to 2:00 pm.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Marina slips occupancy rate 82% 87% 87% 88% 89%
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Percent of City collected w aste diverted from landfill 45% 43% 42% 45% 43% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Number of complaints of missed pickups (per 1,000
refuse accounts) 12 15 11 12 12
272
FY2023/24 Proposed Budget

22 SECTION - 22
Utilities
273
FY2023/24 Proposed Budget

274
FY2023/24 Proposed Budget

Utilities
The mission of the Department of Utilities is to provide dependable, high-quality water, wastewater, and storm drainage services in a fiscally and environmentally sustainable manner.

The Department of Utilities (DOU) provides and maintains water, wastewater, and storm drainage services and facilities for its custom ers, City ratepayers. These services are crucial to safeguard the health and safety of the public, support economic development, protect the environment, and improve the qualit y of life in our city. DOU works in conjunction with other City Departments as well as regional , state, and federal agencies in the operation, maintenance, developmen t, and rehabilitation of water resources infrastructure.

DOU is organized into four operating divisions and the Offi ce of the Director. The operating divisions consist of Business Se rvices, Engineering and Water Resources, Water and Wastewater & Drain age. This organizational stru cture allows for increased collaboration across business functions and enabl es DOU to focus efforts on customer priorities.

 Business Services: Provides fiscal support by enhancing and maintaining the financial stability of our
Water, Wastewater, and Drainage Funds
through accounting, budgeting, logistics,
and long-range financial planning; provides
utility customers with customer service and
billing services.

 Engineering and Water
Resources:

Provides engineering support for capital
projects, development review and plant and
field support units; in collaboration with the
Water, Wastewater, and Drainage
Divisions, ensures compliance with state
and federal regulations.

 Office of the Director: Provides department leadership and direction including fostering a healthy
work environment, focusin
g on
275
FY2023/24 Proposed Budget

innovation, resiliency, and excellent
customer service, engaging in local,
state, and national legislation and policy,
furthering public education, and
stakeholder outreach; planning for
current and future generations by
protecting, preserving and enhancing
water resources, the environment, and
the community.

 Water: Operates and maintains water production
and distribution facilities to provide
drinking water of the highest quality to
City residents and cust omers; performs
water quality monitoring and regulatory
reporting to ensure compliance with all
state and federal drinking water
regulations; engages in research and
development to optimize and improve
processes and procedures.

 Wastewater & Drainage: Operates and maintains facilities for wastewater and storm drainage pumping,
levee systems, and the combined
stormwater-wastewater system, along
with a large network of stormwater and
wastewater pumping facilities.

PROGRAMS/SERVICE HIGHLIGHTS

 DOUs’ Development Impact Fee Nexus Study was succ essfully completed in February 2023. This study identifies adequate fees for new development projects to support the water, storm drainage, and sewer infrastructure needed for future growth within the City.
 Voters approved the Water Pollution and Flood Prevention Measure in April 2022. The new fee is estimated to generate $19.5 million in revenue annually and will fund vital improvements in the City’s aging stormwater infrastructure to help prevent flooding and protect water quality. In June 2022, a lawsuit was filed against the City that challenges the constitutionality of the measure. The Department of Utilities is currently collecting the new fee but is not spending the proceeds until ther e are developments in the litigation.
 The Department of Utilities delivered the triennial Public Health Goal Report for drinking water.
276
FY2023/24 Proposed Budget

 The City Auditor’s office is conducting an audit to assess the controls over DOU’s Supervisory Controls and Data Acquisition (SCADA) system, including the controls in place designed to deter and detect fraud. This audit will assess security risks associated with SCADA and make recommendations for improvement.  DOU generated $4.5M from a Gr oundwater Substitution Transfer in FY2022/23 and reinvested that revenue into groundwater infrastructure and water efficiency programs in disadvantaged communities. By using a por tion of the City’s previously stored groundwater supplies, that equivalent amount of surface water remained in the river for ecosystem benefits prior to delivery to the downstream buyers. The department has already started replenishi ng the aquifer during the win ter of FY2022/23. More information is available on the City’s website.
(https://www.cityofsacramento.org/Utilities/Water/Current-Projects/Groundwater-Substitution- Transfer)
 Responded efficiently and effectively to multiple bomb cyclone and atmospheric river storm events, working to minimize flooding, property damage, and water quality impacts while ensuring the reliability of essential services, for the health and safety of the public. These events have helped to inform of us of areas where we will need to invest for climate change adaptation.
 Successfully implemented revision control measures to improve security of operational technology applications.
 Water Division Operations & Maintenanc e incorporated the Water Information Management System (WIMS) into the operational toolbox for the water production and water quality teams. WIMS is a fl exible data management tool which streamlines and optimizes water operations with user-defined alerts and modeling tools to help resolve, predict, and prevent process disruptions. WIMS also provides tools needed for calculations, reporting, and analysis, incorporating data from SCADA, Laboratory Information Management System (LIMS), and daily process monitoring for real time-analysis of water quality and water production data.

DEPARTMENT EFFICIENCIES
 DOU worked with the Budget and Audit Committee at the direction of the City Council to develop program limits for the Sacramento Utility Rate Assistance (SURA) Program to ensure a sustainable program. City Council adopted a 40% flat percentage discount for current non-legacy participants on March 7, 2023. Staff will also include a 10,000- participant level maximum in FY2023/24 budget development. These program limits will provide a long-term sustainable program for the City of Sacramento residents, reduce administrative oversight, and improve budgeting practices to avoid fluctuations in the annual budget.
 DOU partnered with the City Treasurer's office to formalize two existing reserve fund practices, operating and rate stabilization, and created a capital reserve. City Council adopted the policy on December 6, 2022. The policy will demonstrate DOU's sound financial acumen to bond inve stors, rating agencies, and other stakeholders and 277
FY2023/24 Proposed Budget

provide a firm foundation for financial creditworthiness and sustainability. In addition, the reserves will provide valuable resources to minimize disruption in the event of temporary revenue shortfalls or unpredicted one-time expenditures from emergencies.  The completion of the Combined Wastew ater Treatment Plant (CWTP) Lighting Retrofit project in 2023 has replaced the existing lighting at the DOU campus at 35th Avenue with Light Emitting Diode (LED) fixtures which reduce energy consumption by 40-60 percent, require less maintenance, and enhance the lighting levels. Cost savings for this project will be realized within an estimated 4.5 years of project completion and future potential energy savings are significant.

OBJECTIVES FOR FY 2023/24
 Facilitate, coordinate, and collaborate with operatin g departments and the City Treasurer's Office to deliver a department-wide Long Range Financial Plan.  Finalize the Billing Disburseme nt Agreement in accordance with the Master Service Agreement with Sacramento County Regional Sanitation District.  Implementation of adjusted development impa ct fees to a level that supports the General Plan’s forecasted development/growth within the city.  Deliver the FY2023/24 CIP wate r, wastewater, and drainage infrastructure programs on schedule and within budget.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Engineering &
Water
Resources*
Add three positions (2.0 FTE Associate Engineers
and 1.0 FTE Senior Engineer) to plan, design, and
deliver projects for an expanded Capital Improvement
Program (CIP) that will be offset through the new
Storm Drainage Property Related Fee Capital
Improvement Program (CIP).

Storm
Drainage
(473,522) 475,576 3.00
Engineering &
Water
Resources*
Add one position (1.0 FTE Administrative Analyst) for
the Asset Management Program to provide critical
infrastructure system support. The position is being
partially offset by reducing the Department's operating budget and existing utility rate payer revenues.

Water (54,648) 129,562 1.00
Engineering &
Water
Resources*
Add two positions (1.0 FTE Construction Inspector II
and 1.0 FTE Supervising Construction Inspector) to
support the Utilities' CIP. These positions were
deleted from Public Works and will continue to be
offset by the CIP.

Storm
Drainage
(276,091) 271,234 2.00
Engineering &
Water
Resources*
Delete two positions (1.0 FTE Senior Engineer and

1.0 FTE Senior Engineering Technician) and add two
new positions (2.0 FTE Associate Civil Engineer) to
assist with the $30M Annual Pay-Go CIP. The cost of
the two new positions are being offset by the CIP.

Water (549,366) 565,896 -
278
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Engineering &
Water
Resources
Delete five positions (0.72 FTE Student Trainee and

1.0 FTE Senior Office Specialist) to re-align positions within Utilities.

Storm
Drainage/
Wastewater/
Water
- (97,081) (1.72)
Office of the
Director*
Delete a position (1.0 FTE Storekeeper) and add two
positions (1.0 FTE Administrative Analyst and 1.0 FTE
Administrative Technician) to support Security &
Emergency Preparedness and Safety Programs. The
cost of the positions are being partially offset by
reducing department's operating budget and the HR-
Risk Management interfund transfer has been deleted.

Water (150,683) 234,402 1.00
Office of the
Director*
Add one position (1.0 FTE Public Information
Coordinator) to support water conservation outreach.

The cost of the position is being offset by reducing
professional services expense budget.

Water (97,557) 94,518 1.00
Wastewater and
Drainage
Operations and
Maintenance
Add one position (1.0 FTE Program Specialist) to
support regulatory requirements in the Wastewater
Storm Drainage Division.

Wastewater - 160,226 1.00
Water
Operations and
Maintenance
Add one position (1.0 FTE Machinist Helper) to keep
up with the maintenance of facilities and avoid critical failures.

Water - 89,362 1.00
Water
Operations and
Maintenance
Add one position (1.0 FTE Program Specialist) to
manage planning, coordination, and administration of
Water Quality Laboratory and Research &
Development section programs.

Water - 157,793 1.00
Total Change $ (1,601,867) $ 2,081,488 9.28
* Position offset amounts will be finalized in the Approved Budget.

Change
Utilities FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 65,090,150 $ 67,850,839 $ 76,559,964 $ 76,559,664 $ 79,810,446 $ 3,250,782 Other Services and Supplies 32,673,341 35,122,545 41,156,318 42,176,945 44,405,476 2,228,531 City Property 4,153,704 1,610,393 2,100,903 2,240,903 2,237,523 (3,380) Multi-Year Operating Projects - - 10,639,992 7,018,992 10,171,120 3,152,128 Transfers (1,090,080) (764,570 )--- -
Labor and Supply Offset 5,820,817 7,326,065 8,781,799 8,781,799 7,042,587 (1,739,212) Operating Transfers 24,294,267 24,150,096 26,015,488 26,015,488 26,143,155 127,667 Total $130,942,199 $135,295,368 $165,254,464 $162,793,791 $169,810,307 $ 7,016,516 279
FY2023/24 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

PERFORMANCE MEASURES

Business Services Division

The Departments Average Speed to Answer (ASA), is the number of seconds a customer waits in the queue prior to being answered by a Customer Service Representative. The ASA is one of th e key performance indicators (KPI), to measure the Departments organizational performance and effectiveness in responding to customer questions and or concerns about their utility billing accounts.

Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 70,219 $ 77,272 $ 79,410 $ 79,410 $ 79,410 $ - Community Center 4,983 4,983 4,983 4,983 4,983 -
Fleet Management 196,105 16,007 200,000 200,000 - (200,000) Golf 5,333 4,045 8,550 8,550 8,550 -
Landscaping and Lighting 53,661 86,678 70,000 70,000 98,000 28,000 N Natomas Lands CFD 3 150,624 180,582 300,000 300,000 300,000 - Neighborhood Water Quality Dist - - 3,000 3,000 3,000 - Northside Subdiv Maint Dist - - 8,000 8,000 8,000 -
Parkebridge CFD 2014-07 - - 10,000 10,000 10,000 -
Parking 2,600 11,555 1,359 1,359 1,359 -
R ecycling and Solid Waste 2,988,418 3,126,181 2,925,539 2,925,539 3,121,424 195,885 SacMaintCFD2014-04 Annex Areas - - 36,500 36,500 36,500 - SacMaintCFD2014-04 Area 01 - - 298,120 298,120 298,120 - Storm Drainage 28,475,932 32,008,827 37,639,597 37,004,924 37,964,667 959,743 Storm Drainage Property Fee - - 4,897,094 4,897,094 5,412,050 514,956 Tow nship 9 CFD No. 2012-06 - - 9,000 9,000 9,000 -
Wastew ater 26,519,567 28,127,263 33,851,892 32,346,892 35,255,448 2,908,556 Water 72,467,084 71,640,100 84,890,646 84,569,646 87,179,022 2,609,376 Willow creek Assmnt Md 7,672 11,876 20,774 20,774 20,774 - Total $130,942,199 $135,295,368 $165,254,464 $162,793,791 $169,810,307 $ 7,016,516 Change
Utilities FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Business Services Division $ 7,562,469 $ 8,660,520 $ 11,528,639 $ 9,854,996 $ 9,958,538 $ 103,542 Engineering & Water Resources Division 6,701,429 8,639,482 18,457,468 13,182,498 12,171,929 (1,010,569) Office of the Director 48,002,589 47,545,686 61,065,641 60,216,349 64,224,168 4,007,819 Wastew ater & Drainage Ops & Maint. Division 36,776,618 37,551,054 35,745,128 41,216,360 44,375,620 3,159,260 Water Operations & Maintenance Division 31,899,093 32,898,625 38,457,588 38,323,588 39,080,052 756,464 Total $130,942,199 $135,295,368 $165,254,464 $162,793,791 $169,810,307 $ 7,016,516 Change
Utilities FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(L ess) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Business Services Division 59.00 67.00 67.00 67.00 68.00 1.00 Engineering & Water Resources Division 84.54 85.54 91.72 91.72 96.00 4.28 Office of the Director 13.18 14.18 14.18 14.18 17.18 3.00 Wastew ater & Drainage Operations & Maintenance Division 228.18 228.18 223.00 223.00 223.00 - Water Operations & Maintenance Division 185.00 177.00 177.00 177.00 178.00 1.00 Total 569.90 571.90 572.90 572.90 582.18 9.28
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
City Manager Goal = 3:00 minutes or less 8:06 5:34 8:23 3:00 Goal 3:00 Goal 280
FY2023/24 Proposed Budget

The 3:00 minutes ASA is a lower tier (25th percentile) industr y standard for combined utilities as documented in the 2017 Ameri can Water Works Association (AWWA) Utility Benchmarking Performance Management for Water and Wastewater Report.

Engineering & Water Resources Division

The percentage of water conservation achieved citywide is not only a required performance measure to comply with the City Council Resolution for water conservation, but also a key performance i ndicator to measure effectiveness of the Department’s water conservation outreach and enforcement efforts. This percentage r eduction is compared to our 20% by 2020 gallons per capita per day target as mandated by SBX7-7.

Operations & Maintenance Division

The number of sanitary sewer overflows (SSOs) is measured to ensure regulatory compliance and to gauge the effectiveness of operational activities and capital improvements that have been implemented to achieve this compliance. The primary permit with respect to the separated system is the waste discharge requirements permit issued by the State Water Resources Control Board. The goal of this permit is to minimize SSOs from the separated system.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
% w ater conservation achieved (year-over-year) 31% 26% 33% 25% 25% FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
# of sanitary (w astew ater) overflow s

2.90 per
100

2.50 per
100

3.00 per
100

2.70 per
100

2.50 per 100
miles
281
FY2023/24 Proposed Budget

282
FY2023/24 Proposed Budget

23 SECTION - 23
Youth, Parks, & Community
Enrichment
283
FY2023/24 Proposed Budget

284
FY2023/24 Proposed Budget

Youth, Parks, & Community Enrichment
To empower our youth, strengthen neighborhoods, and provi de life-enriching programs for a beautiful livable community.

The City’s Youth, Parks, & Co mmunity Enrichment (YPCE) Department provides residents and visitors with beautiful parks and enr iching programs to create a thriving community with healthy, strong, and cohesive neighborhoods. Program development and service delivery for the D epartment is guided by the following primary themes:
empowering and enriching Sacramento youth, protecting the Cit y's green infrastructure, and optimizing the experience of living through people, parks, and programs.

Department services are structured as listed below.
 Youth: Responsible for creating, delivering, and fostering citywide programs, trai nings, projects, and
services that navigate critical pathways for youth
development including youth participation
opportunities, community involvement,
relationship building, and skill building. Programs
serve young people between the ages of 5-24 in
the following areas: Ex panded Learning, Youth
Workforce Development, and Civic Engagement.
 Administration

Responsible for department-wide support of fiscal
management, human resour ces, procurement,
grant writing and management, lease
management, and administrative operations that
include managing Gifts to Share (a nonprofit that
supports City events, projects and programs), the
Parks and Recreation Commission and the Ann
Land & Bertha Henschel Commission.
 Community Enrichment: Responsible for a wide range of programs, services and facilities that support safe space,
285
FY2023/24 Proposed Budget

community livability, and a high quality of life for all of Sacramento. Provides recreation, leisure
enrichment and community resources for all ages,
including youth, teens, active adult, and senior
programs.
 Park Maintenance: Responsible for daily maintenance of 234 parks, parkways, bike trails, and open space areas
spanning over 4,360 acre s. Responsibilities
include maintenance of turf , landscape,
structures, and park amenities citywide. This
Division also maintains and operates the Old City
Cemetery, which is a Stat e historic landmark that
offers monthly tours and events.

 Park Planning &
Development Services:

Responsible for park planning, parkland
acquisition, park master planning, policy
implementation, asset management and the
design and development of new and renovations
of existing neighborhood, community, and
regional parks
 Safety: Responsible for preserving, protecting, and
enforcing park regulations of 234 parks with 4,360
acres of parks, parkways, open space, community
centers, aquatic facilities, and bike trails.

PROGRAMS/SERVICE HIGHLIGHTS
 YPCE continued to offer professional de velopment opportunities, focusing on youth development, in priority areas such as: safely engaging young people, mental wellness supports and tools, and general technical training needed for new programming models.

 YPCE offered a variety of Youth Workfo rce Development programs serving 874 young people ages 10 – 24, an increase of 13% with the return of Jr. Rec Aide (an interactive work readiness training pr ogram for ages 15-17), and Young Leaders of Tomorrow (a self-advocacy and leader ship program for ages 10-13). These programs empower young peopl e with opportunities to improve communication, problem solve, work as a team, and provides them with fundamental skills needed when seeking employment. Programs are offered city wide, year-round.

 Expanded Learning Opportunity Program (ELOP) fundi ng from Robla School District (RSD) allowed for the expansion of the existing ASES/START elementary afterschool program. Not only will the number of students served be increased, but new grade levels such as Transitional Kindergarten and Kindergarten students will be able to benefit from the service. ELOP funding will allow new enrichment 286
FY2023/24 Proposed Budget

opportunities, further coordination of the academic part of the program and added 12 part-time positions.

 The Aquatics section opened all 12 neighbo rhood pools, four wading pools, and a brand-new regional aquatics center and community center for the summer of 2022 and safely operated them with zero critical incidents. Participation in aquatics programming increased with 96,752 rec swim visits (73% increase), 2,601 sets of swim lessons (24% increase), 7,134 water aerobics visits (31.5% increase), 385 swim team registrations (10% increase), and 4,873 lap swim visits (3% increase).

Over $30,000 was awarded in Swim Safe Scholarships that included free swim lessons, swim team scholarships, lifeguard scholarships and lifeguard certification reimbursements.

 Older Adult Services provided respite for 80 family caregivers through the Tripe-R Adult Day Program with 4,680 units of service. Additionally, Triple-R staff provided resource and referral services to 496 peopl e. In November 2022, YPCE received a $350,00 grant from t he State of California for t he CalCOMPASS project, a 13- month pilot program to meet the needs of diverse ol der adults and families in a community setting through the provision of dementia care services. Triple-R was selected as one of seven model licensed Adult Day Programs and Adult Day Health Care Centers, to address the health and wellbeing of older adults and their caregivers, prevent or delay institutionalization and advance health equity.

 The Community Center team provided programming opportunities and access to safe space for over 6,500 youth and t eens through in-person afterschool and summer camps, Hot Spots Remix (an updated Hot Spot teen special event series) and Recreation Explorer Camp (R.E.C.) se rving youth ages 3-5 in a play-based preschool program, which was a 62% increase in participation. Drive-thru and in- person special events were hosted city wide and welcomed over 10,000 families, which was a 25% increase in participation. Centers have also increased program offerings for older adults across the city and opened an additional Meals on Wheels location with over 12,000 senior visits and 14,000 fitness room visits.  The Reservations office issued over 500 youth and adult sports field permits and over 1,300 picnic reservation permits. Community Centers also waived over $197,000 in community center rental s through the Council Approved Fee Resolution.
 Park Planning and Development invested ov er 4 million in completed projects across the city. Projects completed include Matsui Park – Access Project, Freeport irrigation, Temple Park, Cabrillo Irrigation, Airfield Park Phase II, Land Park Farm and Garden, Neilson Park improvements and Shore Park Picnic Area.

DEPARTMENT EFFICIENCIES

 Continue to engage with the Department’s Park planning consultant in the development of the Par ks Plan 2040 that addresses the City’s commitment to 287
FY2023/24 Proposed Budget

Equity and Health within the park and recreation system. The projected completion date for the Parks Plan 2040 is 2023, follo wing the adoption of the City’s General Plan Update.
 Community Centers mobilized staffing and resources to continue serving the community, providing critical community resources, programs, services and expanding front counter and operating hours to include Saturdays, exceeding pre- pandemic service levels. In addition to offering a variety of recreation programming, centers continue to prov ide emergency response support through activation of clean air, warming and cooling centers.
 YPCE addressed deferred maintenance iss ues at several pools including the completion and initiation of resurfacing projects to support safe reopening and operations. Staff successfully opened a new regional aquatics’ facility and community center, providing programming, rentals, and special events to residents citywide and beyond
 YPCE partnered with Geographi c Information System (G IS) team to map park amenities and land uses. GIS applications provide Department, City staff and the public with a method to easily acce ss and share geographic information. The database allows coordination across all divi sions using the same data to support asset management and administrative functions.

 To address disparities in service leve ls in Sacramento’s Park system in an equitable manner, YPCE developed a Geogr aphic Information System mapping tool to analyze park amenity data through an equity lens. This mapping tool helps staff better understand the overall distributi on of amenities in relation to under- resourced communities in Sacramento. The equity lens incorporates the following metrics: Community Ranking based on CalEnviroScreen 4.0, Child Density Ranking, and Quality of Se rvice using park maintenance data. YPCE also takes into account other factors including lit an d unlit sports fields , the quality of the sports field maintenance, and availability of restrooms and parking. Equity scores will help determine if a particular field has a high potential to serve an under- resourced community and ensure invest ments in field maintenance are made equitably.

OBJECTIVES FOR FY2023/24

 Complete YPCE’s Parks Plan 2 040, including developing a Needs, Recommendations, and Cost Analysis, and Final Parks Plan for approval by Council, followed by the development of YPCE’s Strategic Plan for 2024-2028.

 Utilize the Geographic Information System mapping tool and equity scores obtained to help prioritize field improvements such as field lighting, maintenance, and field reservation allocations to under resourced communities in Sacramento.

This would also be incorporated into the YPCE’s Park Project Programming Guide.  Evaluate and update sports field use guidel ines and policies related to allocation process and on-going maintenance. This will include an updated sports field and 288
FY2023/24 Proposed Budget

amenities inventory and re-evaluating the field allocation process through an equity lens.
 Continue to address deferred maintenance projects citywide and recruit, hire and train staff to support all YPCE programs and operations.  Develop and expand YPCE Vo lunteer Program for residents of all ages to support volunteer efforts in parks and programs, including the McKinley Rose Garden that the department resumed operations of in December 2022.
 Implementation of specialized and incl usive recreation programming for youth and teens with disabilities department-wide and including partnerships with Alta Regional Center, school districts, Sacramento State.

BUDGET AND POSITION CHANGES*

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Community
Enrichment
Delete various positions (2.45 FTE total) and add
three positions (1.0 FTE Aquatic Recreation
Coordinator, 1.0 FTE Program Coordinator and 1.0
FTE Jr. Plant Operator) to realign staffing to address
programming needs. Positions will be offset by the
deletion of position and the increases in revenues
made in the Division.

Measure U (105,218) 264,130 0.55
Community
Enrichment
Delete various positions (2.81 FTE total) and add
various positions (5.41 FTE total) as the department
has taken over the management of the Clunie
Community Center, Shepard Garden, former Tiny
Tots building and the Mckinley Rose Garden.

Additional staffing is needed to manage, program and
operate these facilities. Positions will be offset by the deletion of positions and the increases in revenues
made in the Division.

Measure U (150,873) 361,072 2.60
Community
Enrichment
Delete three positions (0.47 FTE Recreation Aide,

0.47 FTE Utility Worker and 1.0 FTE Recreation
Superintendent) and add a position (1.0 FTE
Recreation Manager) to provide additional leadership
support as operations have expanded at multiple
facilities and spaces. Positions will be offset by the
deletion of the positions.

Measure U (196,812) 188,230 (0.94)
Community
Enrichment*
Delete four positions (0.10 FTE Recreation Aide, two

0.15 FTE Recreation Aides and 0.40 FTE Senior
Recreation Aide) and add two positions (0.30 FTE
Recreation Aide and 0.47 FTE Building Monitor) to
realign staffing to meet the updated programming
needs of the Division. Positions will be offset by the
deletion of the positions.

Measure U (30,693) 33,364 (0.03) Community
Enrichment
Revenue adjustments to Aquatics, Community
Recreation Services, Community Centers, Camp
Sacramento, Older Adult Services and Permitting and
Event's budget after evaluation of the department's
history to better align with budget actuals.

Measure U (1,790,000) - - 289
FY2023/24 Proposed Budget

BUDGET AND POSITION CHANGES* (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustme nt
Expenditure
Change
FTE
Change
Park Maintenance
and Planning
Increase funding in the operating and capital budget to address the ongoing maintenance and capital costs
for landscaping associated with the construction of
the new 64-acre Del Rio Trail. Of the $228K, $128K is
operating and $100K in capital.

Measure U - 228,000 - Park Maintenance
and Planning
Delete a position (1.0 FTE Landscape Technician II)
and add three positions (1.0 FTE Administrative
Technician, 1.0 FTE Junior Landscape Assistant and

1.0 FTE Supervising Landscape Architect) to address
increased workload that are currently at an
unsustainable level and expand programming.

Positions will be offset by the deletion of the position and adjusting overhead charges to Capital
Improvement Program (CIP) projects.

Measure U (395,785) 393,941 2.00
Park Maintenance
and Planning
Reallocation of the FY2023/24 fleet replacement
budget assumptions for vehicle unit 9972, which is no
longer needed, to fund the purchase of other fleet
vehicles/equipment.

Measure U (158,647) 158,647 -
Youth Revenue adjustments to Youth Enrichment's budget
after evaluation of the department's history to better
align with budget actuals.

Measure U 198,193 - - Youth Revenue and expenditure adjustments to 4th R's
budget to reflect current operations post pandemic.
4th R (2,250,000) 2,250,000 -
Total Change $ (4,879,835) $ 3,877,384 4.18
* Position offset amounts will be finalized in the Approved Budget.

Change
Youth, Parks, and Community Enrichment FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 32,344,365 $ 36,974,487 $ 40,255,934 $ 40,325,162 $ 42,734,837 $ 2,409,675 Other Services and Supplies 12,065,967 18,324,379 18,232,023 18,118,545 20,689,746 2,571,201 City Property 216,258 1,145,133 301,802 276,570 276,490 (80) Multi-Year Operating Projects 1,200 - 1,081,132 308,949 2,140,285 1,831,336 City Debt Service 4,391 900,318 - - - -
Transfers 138,634 171,075 - - - -
Labor and Supply Offset (12,109,918) (2,336,595) (2,064,139) (2,064,139) (2,254,732) (190,593) O p e r a t i n g T r a n s f e r s ( 2 1 , 5 4 2 ) ( 2 1 , 6 0 2 )--- - Total $ 32,639,355 $ 55,157,195 $ 57,806,752 $ 56,965,087 $ 63,586,626 $ 6,621,539 290
FY2023/24 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

Change
FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 24,113,082 $ 1,455,943 $ 1,557,590 $ 1, 587,590 $ 3,138,544 $ 1,550,954 4th R Program 521,670 5,852,218 3,082,118 3,082,118 5,365,214 2,283,096 Externally Funded Programs - - 19,000 19,000 - (19,000) Golf (11,206) (80,229) (106,878) (106,878) (115,942) (9,064) Laguna Creek Maint Dist 63,197 162,946 175,000 175,000 126,000 (49,000) Land Park 134,015 139,000 139,000 89,000 89,000 -
Landscaping and Lighting 4,000,000 4,100,000 4,200,000 4,200,000 4,300,000 100,000 Measure U - 37,553,290 43,230,356 42,408,691 45,648,624 3,239,933 N Natomas Lands CFD 3 1,487,667 1,578,785 1,745,000 1,745,000 1,815,000 70,000 Neighborhood Park Maint CFD 1,682,000 1,782,000 1,882,000 1,882,000 1,982,000 100,000 Neighborhood Water Quality Dist 16,564 28,651 30,000 30,000 30,000 - NW Land Park CFD 2013-02 24,578 85,663 164,800 164,800 164,800 - Park Development 183,769 1,637,548 441,860 441,860 441,860 - Parkebridge CFD 2014-07 - - 57,000 57,000 57,000 -
P a r k i n g 5 3---- -
Quimby Act 10,307 5,273 10,000 10,000 10,000 -
Railyards Maint CFD No 2014-04 - - 7,500 7,500 7,500 -
Sac Services CFD 2018-05 - 13,418 40,000 40,000 150,000 110,000 SacMaintCFD2014-04 Annex Areas - - 1,200 1,200 1,200 -
START 413,533 842,690 1,129,206 1,129,206 373,826 (755,380) Tow nship 9 CFD No. 2012-06 126 - 2,000 2,000 2,000 -
Total $ 32,639,355 $ 55,157,195 $ 57,806,752 $ 56,965,087 $ 63,586,626 $ 6,621,539 Change
Youth, Parks, and Community E nrichment F Y2020/21 F Y2021/22 F Y2022/23 F Y2022/23 F Y2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration & Safety Division $ 2,272,431 $ 3,412,114 $ 3,389,339 $ 3,319,339 $ 3,352,005 $ 32,666 Community Enrichment Division 9,709,698 17,842,650 23,243,758 23,243,758 24,755,262 1,511,504 Park Maintenance & Planning Division 14,654,251 23,086,146 22,364,828 21,593,163 24,700,642 3,107,479 Youth Division 6,002,976 10,816,285 8,808,827 8,808,827 10,778,717 1,969,890 Total $ 32,639,355 $ 55,157,195 $ 57,806,752 $ 56,965,087 $ 63,586,626 $ 6,621,539 Change
Youth, Parks, and Community Enrichment FY2020/21 FY2021/22 FY2022/23 FY2022/23 FY2023/24 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration & Safety Division 22.00 22.00 22.00 22.00 21.00 (1.00) Community Enrichment Division 315.89 313.92 309.53 309.53 321.10 11.57 Park Maintenance & Planning Division 149.80 148.80 150.80 150.80 152.80 2.00 Youth Division 236.85 235.50 234.20 254.90 246.51 (8.39) Total 724.54 720.22 716.53 737.23 741.41 4.18
291
FY2023/24 Proposed Budget

MEASURE U

The following chart summarizes the Department’s Measure U programs.

PERFORMANCE MEASURES
Park Maintenance and Planning Division

Currently, the Park Maintenance Division maintains more than 3,654 acres of parkways, developed turf, landscape, recreation structures, and park amenities citywide. Se rvices provided by this di vision include mowing, weeding, litter removal, playgroun d inspections, irrigation repair, and restroom cleaning.

The department has established minimum service levels to ensure safe and clean parks and facilities. To accomplish this, each fulltime equivalent Park Maintenance staff is generally assigned a service area. On average, a fu ll-time equivalent staff's service area is approximately 26 acres. Any increase to park acreage, given existing staffing, has a direct negative impact on service levels.

Funding Category Program Name FTE
FY2023/24
Proposed
Community Investment
MYOP Fleet Acquisitions - 1,803,345
Operations Fiscal and Management Services 8.00 1,331,704 Golf Admin - 250,000
Historic City Cemetery 3.00 411,210
Older Adult Services 29.03 2,057,665
Park Operations Administration 135.80 14,221,611 Permitting and Events 7.74 848,203
Technology Service - 57,638
Public Saftey - YPCE
Operations Park Safety Services 13.00 1,640,229 Miscellaneous
MYOP Commisson Stipends - 25,450
Youth
MYOP Youth Sports Field Permit Program - 200,000 Operations Access Leisure 10.03 645,010
Aquatics 87.85 5,208,982
Camp Sacramento 16.62 566,198
Community Centers 144.70 9,220,316
Community Recreation Services 14.13 791,018 Recreation Administration 11.00 1,942,468
Youth Employment 65.23 3,251,919
Youth Enrichment - (20,247)
Youth Expanded Learning 31.94 1,165,905
Grand Total 578.07 $ 45,618,624
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals Estimate Target
Park maintenance cost per acre $5,286 $5,736 $6,446 $6,736 $6,117 FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Number of developed park acres maintained per FTE 25.82 19.70 24.31 24.49 26.91 292
FY2023/24 Proposed Budget

Over 3000 volunteer hours are regularly provided by various groups, including A dopt-a-Park, park ambassadors, and countless cemetery volunteers each month. Volunteers supplement the department's routine park maintenance and beautification. Maintenance staff provides volunteer participants supervision, tools, garbage removal services, and horticultural expertise.

Park Safety Division

The Park Safety Rangers provide security response to service requests received via 311 calls, routinely patrol areas of all parks, and when requested provide security support to City special events. In addition, the Park Rangers frequently address issues related to and coordinate outreach for people experiencing homelessness, address issues of criminal activity, and provide emergency assistance within city park areas. A full-time ranger can handle 450 calls per year. As we add more staff, it will help distribute the workload.

FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Number of volunteer hours managed per developed
park 9.8 8.43 10.88 7.94 9.00
FY20 FY21 FY22 FY23 FY24
Key Measure Actuals Actuals Actuals E stimate Target
Number of safety calls responded to per Park Ranger 501 240 284 400 500 293
FY2023/24 Proposed Budget

294
FY2023/24 Proposed Budget

24 SECTION - 24
Citywide and Community Support
295
FY2023/24 Proposed Budget

296
FY2023/24 Proposed Budget

Citywide and Community Support

Citywide Support
This section includes City costs, programs and revenues that are not directly associated with an individual department. Belo w are the major expenditures budgeted in Citywide and Community Support (Citywide).

Employee Benefits and Insurance
 Employee Benefits ($5.9 m illion - $5.4 million in the General Fund and $0.5 million in the Measure U [MU] Fund):

o Employee leave payouts authorized by labor contracts; o Vacation/sick leave termination payoffs; and
o Unrepresented and represented employee labor adjustments.

Budget authority is transferred from this program to departments to reimburse actual costs incurred. Reimbursements are done on a proportional basis if the actual costs incurred by departments exceed the available resources in Citywide.

 General Liability & Auto Liability (G L&AL) ($36.9 million - $34.6 million in the General Fund and $2.3 million in the MU Fund) – The City contracts with Bickmore Risk Services (Bickmore) to estimate the annual budget needed to cover claim costs and expenses that will occur in the coming fiscal year and the program’s liability for outstanding claims. Bickmore utilizes historical City loss data to forecast the upcoming fiscal year’s cost of cl aims and expenses at various confidence levels. The City uses the recommended 80% confidence level when budgeting for claim costs and expenses. The General Fund contribution for GL&AL is budgeted in Citywide, while contributions from the other funds ($7.5 million) are budgeted in the managing department’s section (e.g., Solid Waste Fund contributions are in Public Works).

Retired/Transfer Employee Benefits
The costs associated with retired and tran sferred employee retirement and healthcare benefits are included in the Citywide budget.

 Other Post-Employment Benefits (OPEB) ($11.0 million - $8.4 million in the General Fund) – The cost of retiree/beneficiary health (1,759 participants), dental (2,724 participants), vision (1,671 participants), and out-of-area (338 participants) insurance benefits as of June 30, 2021.

 OPEB Trust ($0) – The City funds OPEB benefits on a pay-go basis. In 2014 the City established a California Employers' Retiree Benefit Trust (CERBT) Fund to address the increasing OPEB liability ($279 million as of June 30, 2022). The balance in the CERBT was approximately $8 8.8 million as of April 13, 2023. The annual contribution for the OPEB Trust wa s eliminated in FY2021/22. Future 297
FY2023/24 Proposed Budget

funding to the Trust will continue to be transferred from year-end budgeted pension savings.

 Sacramento City Employees’ Retirement System (SCERS) ($1.4 million) – In FY2022/23, the SCERS fund was fully funded and the City stopped making contributions. However, based on the Foster & Foster SCERS Actuarial Valuation Report dated June 30, 2022, the valuation of the fund will require additional contributions for the next four years. There were 828 participants (2 active) as of June 30, 2022.

Budget and Audit CommitteeMay 9, 2023

Budget and Audit Committee
May 9, 2023