Item 09 2025-00611 Fiscal Year (FY) 2025-26 Proposed Budget Overview — Sacramento City Council, May 13, 2025 (part 2 of 5)

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18 SECTION - 18
Fire
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Fire
Committed to excellence in enhancing and protecting life, property, and the environment.

The Fire Department began serving Sacramento residents in 18 50 as a volu nteer organization. By 1872, the Department became the first paid professional fire department west of the Mississippi. This year marks the Department’s 175 th anniversary of safeguarding Sacramento’s citizens. The Department responds to a variety of emergencies including fires, emergency medical calls, hazardous materials incidents, and specialized rescues, such as water, vertical, co nfined space, and animal. This year also marks a significant change to the Department’s emergency medical services, with the integration of Street Overdose Response Teams (SORT), single-role medic units and a partnership with Medic Ambulance all aimed at providing a ra nge of medical services to the public. Additionally, the Department provides emergency services, fi re code enforcement, public education, and fire investigations.

• Fire Administrative Services: Responsible for managing the department’s budget, revenue, 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 structural collapse),
rescues, hazardous materials incidents, wildland
fires, and other emergencies. Provides
emergency medical services including advanced
life support and transportation.

• Office of the Chief Manages the Fire Department, sets its vision, ensures operational effectiveness, and aligns
divisions with goals and community needs. The
Chief oversees resources, personnel,
emergency strategies, policies, and
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collaboration, ensuring high standards of service
and safety.

• Technical Services: Provides essential support functions to all divisions, which includes acquisition and repairs
of necessary equipment, and 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
safety issues, completes plan reviews and
conducts inspections of construction projects,
coordinates annual life 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

• The Sacramento Fire Department (SFD) ran 108,578 incidents last year, averaging approximately 300 per day. The department managed 491 structure fires, which equate to about 1.34 per day. Including grass, dumpsters, vehicles, and other fires, the total number of incidents was 5,109, or 14 per day. • Continues to keep the public informed on multiple media platforms, including local media outlets, being responsive to media inquiries and keeping the public informed of emergencies and events within our community.
• Over 450 fires were investigated where 45% of fires investigated were incendiary in nature, leading to a 27 percent arrest rate.
• Over 15,200 fire and life safety inspections were performed and over 3000 plan reviews.
• Five EMS Trainees successfully completed their Paramedic Internships and have been hired as either Sacramento Fire Service Paramedics or Fire Recruit Paramedics. Additionally, ten EMS Trainees are currently progressing through various phases of paramedic training.
• Sacramento EMS Corps: In collaboration with Public Works Alliance, Youth Forward, and other community -based organizations, SFD was awarded a $1.4 million grant to provide EMT training directly within the community. • Implementation of two Street Overdose Response Teams (SORT), enabling EMS to provide alternative responses.
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• Implementation of a tiered EMS response model by entering a public/ private contract with Medic Ambulance to provide BLS ambulance response. • Development and implementation of the Fire Service EMT and Paramedic Program.

DEPARTMENT EFFICIENCIES

• Transitioned to Image Trend, a new emergency management software, aligning better with county standards.
• Started a department-wide fee study to assess and optimize cost recovery. • Hired six Fire Prevention Trainees to fill vacancies due to retirements. • Implementation of a new fire inspection record management system and field inspection technology.

• Transitioned the Sacramento Area Girls Camp from Fall to Spring to better align with other DOR programs launching in the Summer.
• Relocated the Sacramento Fire Reserves Program and the EMS Internship Program to provide expanded space and dedicated classroom facilities. • The EMS Division consistently fulfills federal, state, and county requirements for reporting, training, education, incident review, and infection control. • We have collaborated with our regional EMS partners to develop a strategy for managing EMS-related incidents based on urgency and severity. • The EMS Division continues to use the City-wide Telehealth program. • Continue to collaborate with the fleet division to ensure the management of the fire equipment replacement cycle. At the same time, addressing supply chain and vehicle parts issues.
• Implementation of Image Trend software – Computer-based software to replace our aging Records Management System.
• The SFD Continues to recruit community members for EMT, while we also have an upgrade program for current EMT’s to Paramedic. This upgrade enhances our program's diversity.
• The SFD continues to work closely with the Regional Fire Diversity Advisory Board to establish new methods to connect with community members who have never explored a career in the fire service.
• The SFD continues to develop relationships with learning institutions. community- based organizations, and veterans who may not have traditionally thought of the fire service as a career.
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• The department is committed to continuing to train and support the next generation of fire recruits, Emergency Medical Technicians, and paramedics, fostering an inclusive and diverse workforce while ensuring high standards of service. This dedication to diversity and excellence not only enriches our team but also enhances the quality of emergency services provided to our community.

OBJECTIVES FOR FY2025/26
• Expand the Fire Service EMT and Paramedic Program to enhance emergency response capabilities.
• Full roll out and expand the Transport to Alternative Destination (TAD) Program. • Initiate a Tactical Emergency Medical Service (TEMS) Program in collaboration with SPD and DCR.
• Launch a Mobile Integrated Health (MIH) Program to enhance community services. • Explore opportunities to modernize our delivery service and replace aging assets within the divisions.
• Expand the scope of work and staffing of the Health and Wellness Coordinator to provide therapeutic interventions, preventative maintenance & limit workers compensation impacts and loss of duty time.
• Work closely with the Regional Fire Diversity Advisory Board to establish new methods to connect with women who have never explored a career in the fire service. • C ontinue to work towards establishing a greater connection with our community-based organizations (CBOs), neighborhood leaders, and organizations to fortify the department with new members from our community interested in a public safety career.
• Continued evaluations of all divisions to determine cost-effective measures to provide good community service.

• Continue to work with Sacramento Regional Fire Dispatch (SRFECC) to ensure seamless communication and coordination during emergencies, while maintaining crew accountability. Also, continue efforts to reduce call volume and improve the dispatch process and efficiencies, making the department's assets available for the most complex fire and medical emergencies.

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BUDGET AND POSITION CHANGES

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Diversity, Outreach &
Recruitment
Delete three positions (1.0 FTE - Program Supervisor, 1.0 FTE - Fire Captain,

1.0 FTE - Firefighter Admin) and add one position (1.0 FTE - Administrative Analyst) in the Diversity, Outreach and Recruitment (DOR) Division.

Measure U - (898,460) (2.00)
Fire Administrative
Services
Delete one position (1.0 FTE - Senior Accountant Auditor) in Fire Fiscal. General Fund - (121,541) (1.00) Fire Ops/EMS Increase Revenue for Fire District Reimbursement (Fruitridge/ Pacific and Natomas Fire Districts).

General Fund (350,000) - -
Fire Ops/EMS Delete one position (1.0 FTE - Support Services Manager) and add one position (1.0 FTE - Program Specialist) in the EMS Division to support the expansion of services, including Advanced Life Support (ALS) and Basic Life Support (B
LS) deployment, the Street Overdose Response Team, Telehealth, and Mobile Integrated Health, ensuring operational efficiency, compliance, and effective resource management.

General Fund - (3,113) 0.00
Fire Ops/EMS Add two positions (2.0 FTE - Firefighters Administrative). Due to lawsuits filed by various state, local, and tribal governments, the City has been awarded funding to support future opioid abatement initiatives. These two positions will be fully f
unded through the settlement, and the choice to use a Firefighter Administrative position instead of an Administrative Analyst stems from the specialized knowledge and experience of firefighter paramedics in patient care. They are trained to administer buprenorphine and other vital medications for opioid withdrawal, offering essential interventions in addiction care.

General Fund (337,018) 337,018 2.00
Fire Ops/EMS Increase revenue budget for Emergency Medical Services General Fund (2,500,000) - - Fire Ops/EMS Add one position (1.0 FTE - Firefighter Admin) to conduct the role of an EMS Corps Program Coordinator. The position is grant-funded through the California Employment Development Department for over two years. This grant supports s
alaries, materials, training, student stipends, and administrative costs ensuring sustainable program delivery and alignment with Sacramento's Racial Equity Statement goals.

General Fund (168,509) 210,684 1.00
Fire Ops/EMS Add one position (1.0 FTE - Firefighter Admin) to conduct the role of an EMS Corps Program Coordinator. The position is grant-funded through the California Employment Development Department for over two years. This grant supports s
alaries, materials, training, student stipends, and administrative costs ensuring sustainable program delivery and alignment with Sacramento's Racial Equity Statement goals.

Measure U - (42,175) -
Fire Ops/EMS Increase revenue budget for Inter-Governmental Transport/Ground Emergency Medical Transport (IGT/GEMT) of the Emergency Medical Services (EMS) Division.

General Fund (3,000,000) - -
Fire Prevention Add three positions (3.0 FTE - Fire Prevention Officer II). The addition of these positions will enhance the operations
of the Fire Prevention Division.

General Fund (551,250) 749,826 3.00
Fire Prevention Increase Revenue budget for Fire Prevention Division. General Fund (3,200,000) - - Fire Prevention Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Administrative Technician) to enhance event related activities in the Fire Prevention Division.

General Fund - (4,170) 0.00
Total Change (10,106,777) 228,069 3.00
Change
Fire FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $168,531,220 $182,934,784 $187,447,945 $187,447,945 $198,384,367 $ 10,936,422 Other Services and Supplies 20,304,862 21,565,356 31,248,463 31,248,463 31,306,873 58,410 City Property 691,349 461,207 522,038 522,038 522,038 - Multi-Year Operating Projects 4,270 - 1,286,444 - 1,210,083 1,210,083 Transfers (11,733) 31,237 - - - -
Labor and Supply Offset (484,008) (1,421,877) (697,636) (697,636) (2,263,094) (1,565,458) Total $189,035,960 $203,570,707 $219,807,254 $218,520,810 $229,160,267 $ 10,639,457 275
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Department Budget Summary (continued)
D
ivision Budget Summary
Staffing Levels
M

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

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $179,549,979 $193,528,267 $208,976,786 $207,690,342 $219,125,382 $ 11, 435,040 Measure U 8,985,980 9,542,440 10,330,468 10,330,468 9,534,885 (795,583) Ris k Mgmt 500,000 500,000 500,000 500,000 500,000 -
Total $189,035,960 $203,570,707 $219,807,254 $218,520,810 $229,160,267 $ 10,639,457 Change
Fire FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Fire Chief Division $ 1,363,544 $ 1,688,076 $ 900,881 $ 900,881 $ 941,428 $ 40, 547 Fire Ops/EMS Division 151,922,655 162,283,720 178,584,387 178,584,387 187,852,695 9,268,308 Training/Professional Standards Divsion 9,027,268 10,027,260 9,767,936 9,767,936 9,170,063 (597,873) Tech Services Division 24,797,668 27,617,757 28,395,260 27,108,816 29,447,729 2,338,913 Fire Administrative Services Division 1,924,825 1,953,894 2,158,790 2,158,790 1,748,352 (410,438) Total $189,035,960 $203,570,707 $219,807,254 $218,520,810 $229,160,267 $ 10,639,457 Change
Fire FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 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 615.00 644.00 644.00 644.00 647.00 3.00 Training/Professional Standards Divsion 45.50 45.50 45.50 45.50 44.50 (1.00) Tech Services Division 52.00 54.00 54.00 54.00 57.00 3.00 Fire Administrative Services Division 14.00 14.00 14.00 14.00 12.00 (2.00) Total 729.50 760.50 760.50 760.50 763.50 3.00
Funding Category Program Name FTE
FY2025/26
Proposed
Public Safety - Fire
Operations Diversity/Outreach/Recruitment 17.00 3,165,926 Fire Suppression - 6,368,957
Grand Total 17.00 9,534,883$
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FY2025/26 Proposed Budget

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 amount of hours the medic units are available. For example, a UHU of 0.50 indicates that a unit was utilized 50 percent 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 two years is to lower its ambulance UHU to an acceptable level while maximizing efficiency and capturing lost revenue. This will be accomplished by revamping the current emergency medical services (EMS) deployment model and adding needed resources. 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 calls 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 percent. 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 review service (for customers willing to pay for a faster turnaround time).

Fire Prevention conducts annual permit inspections 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.

FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Average Response Time 5 minutes 30
seconds
5 minutes 30
seconds
5 minutes 30
seconds
5 minutes 30
seconds
6 minutes 45
second
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Unit Hour Utilization (UHU) 0.50 0.45 0.45 0.53 0.49
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Percent of fire plan review s completed on time 96.61% 97.44% 95% 95% 97.56% FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
Development Services Fire Inspections Conducted 9,550 6,316 8,000 8,500 7,500 277
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19 SECTION - 19
Human Resources
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Human Resources
The Department of Human Resources delivers 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 external customers and job applicants. The department is responsible for comprehensive human resources services and programs to enhance efficiency and effectiveness of the organization.

• Benefit 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, commission, 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
(EEO), 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.
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• Risk Management/
Workers’ Compensation:

Provide environmental health and safety,
insurance, workers’ compensation, and liability
claims management.
• Diversity & Equity Provide ongoing training on equity, inclusion, and belonging applying department equity
assessments, and monitor performance
measures in operationalizing department
goals in racial equity with a particular focus
on workforce equity.

PROGRAMS/SERVICE HIGHLIGHTS

• Implemented the Workplace Violence Prevention Program and the Indoor Heat Illness Prevention Program per new Cal/OSHA workplace safety requirements.

• Supported the Emergency Vehicle Operations Course (EVOC) driver safety training program through effective recommendations based on collision data analysis, which have been used to integrate elements into the training program to focus on key areas and create more training opportunities.

• Workers’ Compensation managed 735 reports including Exposures, First Aids, Incidents, Future Medical Care, Indemnity and Medical Only claims, of which 295 were active claims requiring benefits for City employees and achieved a claim closing ratio of 115%, surpassing the annual goal of 100%, reducing financial impact, and ensuring timely employee care.

• Employment, Classification, and Development completed a comprehensive review and implementation of driver's license requirements for over 6,300 City positions to ensure compliance with Senate Bill 1100.

• The Office of Diversity and Equity (ODE) launched the Developing Equity Leadership Through Action training program, a reimagined version of the Equity and Inclusion Leadership Series. ODE, a long with the City Council, City Manager’s Office, and Racial Equity Alliance , helped to pass the Sacramento Centered on Racial Equity R esolution 2024- 0354 to operationalize equity through the City government.

DEPARTMENT EFFICIENCIES
• Implemented new software program to streamline management of the Citywide Leave Administration program.

• Workers' Compensation introduced a new automated text messaging system to simplify the prescription filling process for employees. The system provides pharmacy locations, a map feature, and other useful information to enhance accessibility during the prescription filling process.

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• Launched a digital reporting solution (Origami) that streamlines the submission, review, data collection, and recordkeeping process for vehicle collisions and employee injuries, and added Safety Data Sheets (SDS) and inspection checklists into the Origami platform for easier access to resources and more efficient tracking of records.

• Employment, Classification, and Development has enhanced self -identification options within the City’s human resources management system, eCAPS, to include a broader range of gender identities and veteran identification options. This update enables us to better understand the divers e makeup of our workforce and ensure our policies and practices are inclusive and equitable for all employees.

OBJECTIVES FOR FY2025/26
• Transition the eight retiree health reimbursement plans to a new recordkeeper to reduce investment fees paid by participants and enhance administrative support to the City.

• Continue to refine recruitment, selection, and hiring processes to remove barriers and increase efficiency, and implement a citywide on- boarding process to engage candidates from time of offer to time of hire to improve the City’s reputation as a preferred employer.

• Continue to advance and update the City’s Race & Gender Equity Action Plan (RGEAP) and begin phase 1 of implementing the SCORE resolution (2024-0354) to operationalize racial equity citywide.

• I mplement a new Workers’ Compensation Claims Administration system to enhance operational efficiency and improve the management of workers' compensation claims.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Benefit Services Delete two positions (1.0 FTE - Senior Staff Assistant and 1.0 FTE - Personnel Technician) and add one
position (1.0 FTE - Personnel Analyst) in HR Benefit
Services to align the required duties of administering
benefits and reconciling benefit costs and payments
with the correct job classification.

General Fund - (32,002) (1.00) Employment,
Classification, and
Development
Delete one position (1.0 FTE - Program Specialist) in
the HR Employment, Classification, and
Development Division, which would reduce
Organizational Development programming by 50%.

General Fund - (182,077) (1.00) Employment,
Classification, and
Development
Delete one position (1.0 FTE - Administrative Analyst)
in the HR Employment, Classification, and
Development Division, which would reduce
Organizational Development program by 100%.

General Fund - (134,300) (1.00) 283
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BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
HR Administration Delete one position (1.0 FTE - Administrative Analyst) in the HR Administration Division due to reduction in
management appointments due to hiring freeze and
layoffs.

General Fund - (131,918) (1.00) HR Administration Delete one position (1.0 FTE - Administrative Assistant) in the HR Administration Division
eliminating administrative support for all HR divisions.

Other HR division will have to pick up this work which
will result in reduced responses to internal and
external customers.

General Fund - (99,379) (1.00) HR Administration Transfer the ADA Education and Training project (I80000100) from Human Resources to Community
Development to enhance project efficiency and
ensure funding is used in a manner consistent with
its intended purpose.

General Fund 80,000 (80,000) - Labor Relations Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE Administrative Officer)
in HR Admin which provides department wide
support for contracts, and fiscal reconciliation. This
will align the correct job classification to the work
being performed.

General Fund - (870) - Office of Diversity
and Equity
Delete one position (1.0 FTE - Administrative Analyst)
in the Office of Diversity and Equity reducing internal Diversity, Equity, and Inclusion (DEI) programming
and initiatives.

Measure U - (112,831) (1.00) Workers'
Compensation
Delete one position (1.0 FTE - Program Specialist)
and add one position (1.0 FTE - Program Manager) in
the HR Leave Administration program to ensure that
the City is abiding by all leave laws and policies and
to improve response time in management of the
Citywide leave administration. This would positively
impact other departments and reduce long term
Workers' Compensation costs.

Workers'
Compensation
Fund
- (4,959) -
Workers'
Compensation
Delete one position (1.0 FTE - Administrative Analyst)
and add one position (1.0 FTE - Senior Personnel
Analyst) in the HR Leave Administration program to
ensure City is abiding by all leave administration laws and policies and reducing Workers' Compensation
costs.

Workers'
Compensation
Fund
- (14,707) -
Total Change 80,000 (793,043) (6.00) 284
FY2025/26 Proposed Budget

Department Budget Summary

Division Budget Summary

Staffing Levels

Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 11,535,813 $ 12,386,859 $ 13,686,163 $ 13,686,163 $ 13,232,992 $ (453,171) Other Services and Supplies 63,501,837 64,746,701 61,274,543 60,977,543 72,163,702 11,186,159 City Property 67,296 11,247 43,200 43,200 43,200 -
Multi-Year Operating Projects - - 182,250 182,250 102,250 (80,000) Transfers (82,847) (246,798) - - (99,342) (99,342)
Labor and Supply Offset 3,398,354 2,450,391 1,863,295 2,160,295 2,862,292 701,997 Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 4,219,935 $ 4,712,084 $ 5,643,675 $ 5,643,675 $ 4,804,054 $ (839,621) Interdepartmental Service 1,725,737 1,664,044 1,763,967 1,763,967 1,781,869 17,902 Measure U 499,655 481,252 503,285 503,285 432,127 (71,158) Marina - 4,811 4,000 4,000 - (4,000)
Parking - 4,811 4,000 4,000 - (4,000)
Recycling and Solid Waste 150,087 152,226 168,606 168,606 175,965 7,359 Fleet Management 59,614 14,433 16,000 16,000 - (16,000) Ris k Mgmt 25,969,628 51,460,096 50,031,693 50,031,693 60,157,009 10,125,316 Worker's Compensation Fund 45,795,797 20,854,643 18,914,225 18,914,225 20,915,250 2,001,025 Cty/Cnty Office-Water Planning - - - - 38,820 38,820
Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approv ed Amended Proposed Proposed/Amended HR Administration Division $ 1,619,354 $ 1,724,756 $ 2,338,888 $ 2,338,888 $ 1,983,806 $ (355,082) Benefit Services Division 1,214,386 1,203,015 1,300,438 1,300,438 1,223,392 (77,046)p y , p Divison 1,918,039 2,051,962 2,200,218 2,200,218 1,961,225 ( 238,993) Risk Management Administration Division 68,596,996 68,947,834 65,132,325 65,132,325 77,052,675 11,920,350 Workers' Compensation Division 2,855,472 3,083,064 3,519,916 3,519,916 3,595,914 75,998 Labor Relations Division 1,716,481 1,856,449 2,054,381 2,054,381 2,096,710 42,329 Office of Diversity and Equity Division 499,725 481,321 503,285 503,285 391,373 ( 111,912) Total $ 78,420,453 $ 79,348,400 $ 77,049,451 $ 77,049,451 $ 88,305,094 $ 11,255,643 Change
Human Resources FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended HR Administration Division 9.00 9.00 9.00 9.00 7.00 (2.00) Benefit Services Division 9.00 9.00 9.00 9.00 8.00 (1.00) Employment, Classification and Dev Divison 15.00 15.00 15.00 15.00 13.00 (2.00) 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 11.00 11.00 11.00 11.00 11.00 - Office of Diversity and Equity Division 3.00 3.00 3.00 3.00 2.00 (1.00) Total 83.00 83.00 83.00 83.00 77.00 (6.00)
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FY2025/26 Proposed Budget

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

PERFORMANCE MEASURES

HR Administration Division

The percentage of Equal Employment Opportunity (EEO) and Americans with Disabilities Act (ADA) complaints resolved without a substantiated finding of a policy violation—either by the City’s internal EEO Office or an external enforcement agency—or a monetary settlement is an important indicator of the City’s risk mitigation efforts. The City reduces potential liability by maintaining clear anti - discrimination policies and delivering ongoing EEO training to employees. These trainings —provided both online and in person— support a respectful and inclusive workplace culture and are offered at least quarterly, including as part of new employee onboarding.

Labor Relations Division

The Labor Relations Division makes every reasonable effort to resolve labor grievances at the lowest possible level. By resolving grievances internally, the City reinforces its commitment to honoring the terms of its memoranda of understanding (MOUs) with employee organizations. Early and efficient resolution also helps conserve City resources by avoiding the cost s associated with arbitration. The Labor Relations Division will continue to manage grievances in a timely, consistent, and good faith manner w ith the goal of achieving the highest possible resolution rate.

Risk Management Administration Division

One of the most significant risks of injury to Sacramento citizens and employees is vehicle accidents. With the support of City leadership and effective driver training through the Sacramento Regional Driver Training Facility and on- line training modules , the number of vehicle- related liability claims has decreased, even as the number of miles driven has increased. The number of City vehicle-related liability claims had been as high as 224 in 1997 and has been reduced dramatically since that time.

Funding Category Program Name FTE
FY2025/26
Proposed
Inclusive Economic Development
Operations Office of Diversity and Equity 2.00 391,373 Miscellaneous
Operations HR Administration - 40,754
Grand Total 2.00 432,127$
FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Percentage of EEO and ADA complaints resolved
w ithout a substantiated finding of a policy violation or a monetary settlement
57% 67% 86% 75% 75%
FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals E stimate Target
Percentage of grievances that come to the Department
and are resolved internally
66% 78% 80% 50% 50%
FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals Estimate Target
Number of vehicle-related liability claims filed against the City.
145 132 132 120 125
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20 SECTION - 20
Information Technology
287
FY2025/26 Proposed Budget

288
FY2025/26 Proposed Budget

Information Technology
The Department of Information Technology (IT) is committed to ensuring IT investments and strategic business technologies 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 functions range from relatively simple to extremely complex.

The IT Department is divided into eight areas:

• Data and Analytics Office:

Responsible for providing database
administrative services, developing a citywide
data strategy and governance plan, creating
departmental data- driven decision- making
processes, providing Business Intelligence
analytics and dashboards, and creating an AI
strategy.
• 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.
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FY2025/26 Proposed Budget

• IT Operations: Responsible for IT infrastructure services such as security, networks, telecommunications,
servers, storage, and backup to support all City
business, and Public Safety functions.
• IT Regional Support: Responsible for end-user device management, IT Service Desk operations, and end- user
technical training.
• Public Safety Information
Technology:

Responsible for applications development and
IT 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.

• Technology Administration: Responsible for strategic planning, fiscal, human capital resources, technology
procurement, telecommunications billing, and
administrative management of the Department.

PROGRAMS/SERVICE HIGHLIGHTS

• Launched the redesigned City of Sacramento public website to better engage with citizens and fulfill our commitment to digital service and transparency. The new website is designed to provide visitors with enhanced user experience, mobile- friendly design, improved search capabilities, topic-based navigation, and a fresh, modern look. The department also enhanced compliance with the Americans with Disabilities Act and made it easier for visitors to find the information they need. As part of the website launc h, the department implemented a domain name change from www.cityofsacramento.org to www.cityofsacramento.gov, with a goal to improve security, credibility, search engine optimization and branding.

• The IT Department provides 311 resources 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 2024, 311 answered over 312,000 phone calls of which 54,000 were handled by our virtual agent without any human interaction. 311 also processed a total of 511,000 requests which originated through phone, web, mobile app, and email.

Among the many challenges the City faced, the 311 team was able to accomplish this important work while working remotely.

• The Digital Equity Response program was expanded through partnerships with telecommunications providers, Economic Development, and Community -Based Organizations to address digital access gaps in underserved communities. It provides computers, prepaid mobil e hotspots, and crucial knowledge to help 290
FY2025/26 Proposed Budget

Sacramento residents access community, education, medical, and government services. The program utilizes both City and private funding to support these initiatives.

DEPARTMENT EFFICIENCIES

• The City’s network core infrastructure was upgraded to enhance connectivity between the City’s Enterprise and Public Safety Data Centers, supporting the City Cloud Initiative. The upgrade also provides connectivity to all city facilities and internet service providers. By consolidating the enterprise and public safety IT network environments, it will simplify technical support, maintenance and operations, leading to cost savings for the City.
• Upgraded the C ity’s firewalls for Enterprise, Police, and Fire departments to enhance cybersecurity and protect sensitive data. The consolidation of the public safety firewalls will improve support, maintenance, and operations while reducing cost. This upgrade strengthens the City’s defense against cyber threats, improves firewall performance and efficiency, and ensures better access to data centers and internet-based applications.
• Enhanced the 311 Natural Language Interactive Voice Recognition (IVR) system to autonomously handle complex calls from citizens. Artificial Intelligence feature enables callers to receive services without waiting to speak with a 311 agent. The system efficiently addresses hundreds of daily calls, such as external agency transfers, and schedules junk and appliance pickups. This allows the IVR system to efficiently handle routine tasks, freeing up 311 agents to focus on more complex requests that require human intervention.
• Upgraded the City’s Cashiering System from an outdated point -of-sale system to a state -of-the-art cloud -based cashiering solution that accepts payment from a wide range of services, programs, fees, and charges. The new enterprise revenue and cashiering system seamlessly integrates with the City's critical enterprise applications, including the Accela Permitting System, Customer Care and Billing, Business Operation Tax System, and Finance System. This integration enables streamlined automation and enhanced efficiency across different processes. • IT continues to digitize various departmental business processes by incorporating electronic forms, online payments, digital signatures, and business process automation. These initiatives expand digital service delivery, optimize city business processes, enhance user interfaces, and ensure citizens can access essential services remotely. Examples of initiatives include accepting electronic planning and building permit requests, and setting up electronic approval workflows for purchase requests, badge access, and procurement cards. • Automated and streamlined internal administrative processes such as the Personnel Action Request (PAR) process used for staff hire and re- hire actions, pay changes, separations, promotions, and transfers. These new online based processes resulted in increased productivity , more accurate information, and 291
FY2025/26 Proposed Budget

improved transparency.
• Expand the use of multi-factor authentication technology on enterprise applications across the organization to reduce the risk of security vulnerabilities and improve the user experience. Single Sign- On simplifies user authentication by allowing users to access multiple applications and services with just one set of credentials, enhancing convenience, productivity, and higher user satisfaction.

OBJECTIVES FOR FY2025/26

• Replace the outdated Citywide Document Management System (CCM) with a cloud-based solution. The CCM serves as the City’s main repository for documents and records, integrating with enterprise business systems. Transitioning to a cloud solution will enhance efficiency, accessibility, security, and compliance, fostering greater transparency and cost-effectiveness.
• Replace and migrate the outdated and unsupported Police Department Human Resource Information System with the City's Finance and Human Resources System. This integration will consolidate essential Human Resource functions into a unified system, enabling the standardization of business processes across the organization, enhancing transparency, improving efficiency, and reducing costs.

• The IT Disaster Recovery and Business Continuity project for the City of Sacramento aims to improve the IT Department's resilience by updating its Business Impact Analysis (BIA) and Disaster Recovery Plan (DRP). The project focuses on creating a comprehensive and actionable roadmap for recovery strategies, communication processes, and business resumption plans. By enhancing these key elements, the goal is to ensure the IT department can efficiently respond to disruptions, minimize downtime, and restore services swiftly, ensuring continuous support for the C ity’s operations during emergencies or crises.
• Modernize the Information Technology job classifications and organizational structure under the Citywide Classification Study to reflect the critical work the department performs.
• Implement Customer 360 to enhance the delivery of 311 service requests, improve citizen satisfaction, and streamline business operations. This involves streamlining business processes and workflows to improve overall efficiency in service delivery, integrating data from various internal systems with the 311 systems. The goal is to provide citizens with a clear view of their interactions throughout the service request lifecycle, aiming to improve transparency.
• Enhance and expand the Customer Relationship Management (CRM) system and AI-based IVR system to reduce the 311 call wait time. Additional departments 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 service level and transparency while reducing the operating cost for the 292
FY2025/26 Proposed Budget

department.
• Implement a cloud- based code enforcement case management system to streamline the business process and improve customer 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 Unified Endpoint Management (UEM) solution. UEM is the key to addressing mobile and traditional end- user devices, maintaining continuity of end-user computing operations, and delivering seamless IT administration in the current era of expanded remote work.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

General Fund - 55,096 -
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Parking - 920 -
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Water - 7,202 -
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Wastewater - 2,149 -
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Recycling and
Solid Waste
- 4,535 -
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FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Community
Center
- 2,385 -
Citywide IT Systems Increase on-going funding for the City's Adobe Experience Manager (AEM) license upgrade. The City's website and
mass communication system, powered by AEM, serves as
a central platform for providing information, services, and fostering engagement with residents, businesses, and
visitors. Adobe is transitioning away from its standard basic license and hosting services, moving all customers to the Enterprise subscription, which offers additional features.

Storm Drainage - 2,713 -
Enterprise Applications
Management
Offset two positions (1.0 FTE - Senior Department Support Specialist and 1.0 FTE - Department Support Specialist I) with revenue received from a proposed Technology Fee in the Community Development Department. These positions
are critical for providing applications support for the City’s Code Enforcement System. Without these resources, the
department will experience delays in issue resolution, which can disrupt critical workflows, reduce operational efficiency, and hinder the department’s ability to track enforcement cases.

General Fund - (311,400) -
IT Operations Offset one position (1.0 FTE - Systems Engineer) with one- time funds using Parking Fund. This position maintains the technical infrastructure that supports the City's parking operations including network connectivity, equipment used at parking facilities, and tools mounted on enforcement vehicles. Without Systems Engineer, the entire Parking
Division’s operations may be at risk for outages and service disruptions which could lead to significant revenue loss.

This position will transition to Cost Plan in FY2026/27 and be fully reimbursable by the Parking Fund.

General Fund - (138,621) -
IT Operations Offset one position (1.0 FTE - Systems Engineer) with one- time funds using Parking Fund. This position maintains the technical infrastructure that supports the City's parking operations including network connectivity, equipment used at parking facilities, and tools mounted on enforcement vehicles. Without Systems Engineer, the entire Parking
Division’s operations may be at risk for outages and service disruptions which could lead to significant revenue loss.

This position will transition to Cost Plan in FY2026/27 and be fully reimbursable by the Parking Fund.

Parking - - -
Technology Administration Increase funding to support the IT Training Development Plan to address a significant gap in staff skills and
knowledge base that is required to support the City’s
technical environment and critical business systems.

Training helps maintain and enhance intellectual capital providing direct value to the organization.

General Fund - - -
Total Change - (375,021) -
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Department Budget Summary

Division Budget Summary

Change
Information Technology FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 29,325,537 $ 31,569,052 $ 34,243,986 $ 34,243,986 $ 35,518,763 $ 1,274,777 Other Services and Supplies 3,254,048 2,034,322 2,414,813 2,414,813 1,176,394 (1,238,419) City Property (570,376) 416,456 369,195 369,195 369,195 - Multi-Year Operating Projects - - 518,000 460,000 435,000 (25,000) Transfers (894,834) (918,092) (793,076) (793,076) (1,426,896) (633,820) Labor and Supply Offset (812,907) (673,449) (925,934) (925,934) (804,931) 121,003 Total $ 30,301,469 $ 32,428,288 $ 35,826,984 $ 35,768,984 $ 35,267,525 $ (501,459) Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 18,643,125 $ 20,941,027 $ 21,347,351 $ 21,289,351 $ 21,183,299 $ (106,052) Interdepartmental Service 9,240,302 9,049,522 6,466,909 6,466,909 6,021,778 (445,131) Gas Tax 2016 163,957 166,053 188,806 188,806 190,296 1,490 Measure U 518,773 509,218 751,819 751,819 450,685 (301,134) STA RT 5,000 5,000 5,000 5,000 5,000 -
Parking 18,414 16,283 20,039 20,039 20,247 208
Water 151,299 181,928 1,902,449 1,902,449 2,423,527 521,078 Wastew ater 62,435 58,233 1,161,888 1,161,888 1,017,109 (144,779) Recycling and Solid Waste 1,236,111 1,265,473 2,561,131 2,561,131 2,374,664 (186,467) Community Center - - - - 2,385 2,385
Storm Drainage 82,511 39,550 1,210,291 1,210,291 1,168,869 (41,422) 4th R Program 16,000 16,000 16,000 16,000 16,000 -
Storm Drainage Property Fee - - - - 209,175 209,175
Worker's Compensation Fund 163,541 180,001 195,301 195,301 184,491 (10,810) Total $ 30,301,469 $ 32,428,288 $ 35,826,984 $ 35,768,984 $ 35,267,525 $ (501,459) Change
Information Technology FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Cityw ide GIS Support Division $ 1,780,237 $ 1,954,747 $ 2,212,438 $ 2,212,438 $ 2,222,342 $ 9,904 Data and Analytics Office Division - - 949,192 949,192 911,636 (37,556) DOU Systems Support Division 4,245,422 4,662,925 5,030,419 5,030,419 5,228,771 198,352 Enterprise Applications Management Division 4,120,618 4,963,438 5,539,993 5,539,993 5,674,618 134,625 IT Regional Support Division 2,783,367 2,812,311 2,610,883 2,552,883 2,722,983 170,100 Technology Administration Division 3,514,283 3,469,901 4,249,882 4,249,882 2,939,313 (1,310,569) Public Safety IT Division 4,636,419 4,992,310 5,419,133 5,419,133 5,583,155 164,022 Sacramento City 311 Division 3,774,874 4,056,113 4,498,177 4,498,177 4,857,873 359,696 IT Operations Division 5,446,248 5,516,542 5,316,867 5,316,867 5,126,833 (190,034) Total $ 30,301,469 $ 32,428,288 $ 35,826,984 $ 35,768,984 $ 35,267,525 $ (501,459) 295
FY2025/26 Proposed Budget

Staffing Levels

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 staffing, self -service effectiveness, and the demand for the services offered by the City.

IT Regional Support Division

The IT Department tracks support requests and regularly surveys internal customer satisfaction. Satisfaction survey requests are automatically generated for all customers who contact the department for IT support.

Change
Information Technology FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Cityw ide GIS Support Division 13.00 13.00 12.00 12.00 12.00 - Data and Analytics Office Division - - 5.00 5.00 4.00 (1.00) DOU Systems Support Division 27.00 27.00 27.00 27.00 27.00 - Enterprise Applications Management Division 33.00 36.00 37.00 38.00 37.00 (1.00) IT Regional Support Division 20.00 22.00 16.00 16.00 16.00 - Technology Administration Division 7.00 7.00 7.00 7.00 7.00 - Public Safety IT Division 31.00 32.00 31.00 31.00 31.00 - Sacramento City 311 Division 41.50 41.50 41.50 41.50 43.50 2.00 IT Operations Division 30.00 30.00 26.00 25.00 25.00 -
Total 202.50 208.50 202.50 202.50 202.50 -
Funding Category Program Name FTE
FY2025/26
Proposed
Community Response
Operations Sacramento City 311 - 377,238
Miscell
aneous
Operations IT Regional Support - 35,000
PD Systems Support - 38,447
Grand Total - 450,685$
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Percent of 311 calls that are answ ered 73.0% 73.9% 77.2% 80.0% 85.0% FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals E stimate Target
Respondents rating the quality of IT service as good or excellent

99.0% 98.3% 97.9% 98.0% 99.0%
296
FY2025/26 Proposed Budget

IT Operations Division

The IT Operations Division and Public Safety 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 system availability/uptime percentages excluding 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. The performance measure tracks the system uptime/availability percentage rate for the enterprise database systems.

FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals E stimate Target
Netw ork services available
Public Safety systems 99.0% 99.0% 99.0% 99.0% 99.0%
All other systems 99.0% 99.0% 99.0% 99.0% 99.0%
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Enterprise database system available 99.9% 99.9% 99.0% 99.5% 99.9% 297
FY2025/26 Proposed Budget

298
FY2025/26 Proposed Budget

21 SECTION - 21

Police
299
FY2025/26 Proposed Budget

300
FY2025/26 Proposed Budget

Police
The mission of the Sacramento Police Department is to work in partnership with the community to protect life and property, solve neighborhood problems, and enhance the quality of life in our City.

• The Police Department (PD) endeavors to build public trust through community policing, service, professionalism, and a commitment to transparency, fairness, impartiality, and accountability. The PD is comprised of 733 sworn positions and 359.5 professional staff positions. We are focused on data-driven strategies to identify trends , allocate resources efficiently, and to prevent crime in our community. The PD continues to foster strong community partnerships , being vigilant in our efforts to proactively address crime and apprehend criminals. The PD values diversity of the public we serve and strives to provide a strong fabric of public safety through the implementation of best practices and dedicated service.

• Office of Investigations: Responsible for a broad scope of responsibilities to include investigating crimes, maintaining
evidence and additional critical city -wide
administrative functions . This office
encompasses the following divisions: Forensics;
Evidence and Property; Office of Violence
Prevention; Personnel Services; Recruiting and
Backgrounds; Employee Services; Natomas
School Resource Officers; Magnet and Cadet
programs; and Research, Development and
Training.

• Office of Operations: Responsible for providing frontline police services, including the Patrol D ivision (located
among three neighborhood substations) and the
specialty units assigned there.

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FY2025/26 Proposed Budget

• Office of Specialized Services: Responsible for Support Services; Records; the Communications Division (911 Center); and the
Metro Division which includes specialty teams
such as the K9, Special Weapons and Tactics
(SWAT), Impact, Homeland Security, Traffic, and
Air Operations.

• Office of the Chief: Responsible for developing and communicating the Department’s vision. This office oversees
Internal Affairs and the Public Information Office.

• Office of Strategy
and Compliance:

Responsible for planning, organizing, and
directing departmental policies, compliance, and
transparency. This office oversees Government
Affairs,
Professional Standards, Finance, Fleet
Management, Public Safety Information
Technology; Transparency, Compliance and
Strategy.

PROGRAMS/SERVICE HIGHLIGHTS
• Crime Violence Reduction Strategy: The PD is fully committed to focusing on reducing violent crime through collaboration with federal and regional public safety partners, enhanced crime analysis, identifying crime trends, dedicating additional resources to gun violence task forces, increasing our use of effective technologies, and maintaining our efforts with community -based organizations to apply evidence-based community violence interruption, dis ruption, and suppression strategies. During 2024, while working collaboratively with our Federal Partners, we seized over 2,000 pounds of narcotics and no less than 200 firearms. These seizures were the culmination of months -long investigations by our officers and our partner agencies. These seizures serve to disrupt criminal activity and contribute to the deterrence of violent crime in our city. Additionally, the PD, the Sacramento County District Attorney’s Office, and the California Department of Justice (Cal DOJ) partnered to form the Sacramento Regional Human Trafficking Task Force. This team is dedicated to recovering victims of human trafficking and connecting them with services provided by various community -based organizations. In 2024, the team investigated 65 separate human trafficking cases, which resulted in the recovery of 37 persons.

The Office of Violence Preventio n is integral to these efforts, and they work with community-based organizations to reduce community violence. Focused on community partnerships, this office administers gang prevention and intervention programs and strategies, such as the Gang Prevention & Intervention Task Force (GPIT) and the Evidence-Based Community Violence Interruption, Disruption, and Suppression (EBCVIDS) multi -year operating projects. With the advent of the implementation of these new strategies, the PD has seen a decline in violent crimes over the past five years.

302
FY2025/26 Proposed Budget

• National Public Safety Partnership (PSP): In October 2022, the Sacramento Police Department was one of six cities across the country that were inducted into the 2022 cohort of the National Public Safety Partnership (PSP) through the U.S.

Department of Justice Bureau of Justice Assistance (BJA). PSP was established by the U.S. Department of Justice (DOJ) to provide an innovative framework to enhance federal support of state, local, and tribal law enforcement and prosecution authorities in enhancing public safety and reduce violent crime. PSP supports law enforcement and community partners in deploying data- driven, evidence- based strategies tailored to local needs. This cooperative agreement, valued at $700,000, provides expedited, coordinated training and technical assistance (TTA) and an array of resources from DOJ to enhance local public safety strategies. In 2024, the PD secured a $500,000 BJA Capacity Building grant to continue this work on programs, specifically eliminating stop gaps and accelerating time-sensitive investigations through upgrading digital forensic solutions.

• Office of Strategy and Compliance: In 2023, the PD reorganized to create a new Strategy and Compliance Division . The division is made up of 1.0 FTE Government Affairs Manager, 2.0 FTE Administrative Analyst, and 1.0 FTE Administrative Technician positions to ensure internal and external compliance measures, such as:

o California legislative mandates (e.g. A ssembly B ill (AB) 481-Military Equipment Use (MEU), Senate Bill (SB) 1421/SB 16, SB 2/AB 89, AB 392, AB 48, AB 958, AB 1238 and AB 953 Racial and Identity Profiling Act (RIPA);
o National Best Practices for Policing, including proposed national certification standards;

o Statutory compliance with the Public Records Act (Release of Records); o California Commission on Peace Officer Standards and Training (POST) mandates;

o Force Investigations Team (FIT) and Use of Force Review Board (UOFRB) processes;

o Sacramento City Council resolutions, including mandatory Use of Force reporting;
o Body Worn Camera (BWC) Project (Constitutional Policing and Employee Evaluation Audits);

2020 2021 2022 2023 2024 5-Yr Avg %
CRI
MINAL HOMICIDE 44 58 54 40 45 48 -6.60%
RAPE 113 159 174 132 104 136 -23.80%
ROBBERY 873 991 1,243 1,190 1,016 1,063 -4.40%
AGGRAVATED ASSAULT 2,493 2,896 3,187 2,852 2,396 2,765 -13.30% BURGLARY 2,829 2,547 2,763 2,775 2,180 2,619 -16.80%
LARCENY-THEFT 8,996 9,745 10,247 8,995 8,432 9,283 -9.20% MOTOR VEHICLE THEFT 2,516 3,167 3,587 3,742 2,766 3,156 -12.30% Year-End Crime Statistics 2020 - 2024
Citywide Totals
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FY2025/26 Proposed Budget

o Sacramento Community Police Review Commission (SCPRC) recommendations; and
o Armored vehicle deployment.

The Office of Strategy and Compliance furthers the goals of assuring modern and equitable police practices, managing risk and strategic plan implementation, and compliance with local, state, and federal laws and regulations, as well as PD - initiated transparency efforts. The new d ivision will report directly to the Chief of Police, providing an executive level of review with a global perspective, to assist and advise the Chief with issues pertaining to police reform efforts and best practices.

• Transparency and Community Engagement: The PD has bolstered transparency efforts by encouraging inclusion, keeping residents better informed about major incidents, while fostering engagement and collaboration between the Department and community -based organizations. Examples include notification of armored vehicle deployment to the community and Mayor and Council; MEU Purchase notification; the establishment of a Community Advisory Council and the future Community Policy Advisory Board. The PD will continue to support community engagement efforts to include:

o Active Shooter Training
o Shop with a COP
o National Night Out
o Polar Plunge
o MLK March
o PBID Partnerships
o Neighborhood Association engagement by all area Commands o Oak Park Peace Walks
o Cops and Coffee
o Neighborhood Roll Calls
o Business Walks

• Employee Wellness: The PD has continued to invest in the health of department employees, through the enhanced Employee Services Unit (ESU) focused on building employee and organizational resiliency through physical, emotional, and financial wellbeing. Using grant funds to support wellness programs, the PD has created and implemented a POST certified course for employees that provided knowledge, training, and tools to develop anxiety reduction techniques, healthy work-life balance, mindfulness, physical fitness, financial fit ness, and creating supportive employee systems. Additionally, working with POST, the PD is developing an organizational wellness strategic plan. The PD believes that investment in employee wellness will assist officers and professional staff in making improved decisions resulting in better outcomes for our community.
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FY2025/26 Proposed Budget

• Recruiting: The PD is continuing recruiting efforts with a focus on diversity through print, digital, streaming, and social media platforms. These efforts range from traditional recruiting events to new digital content creation and delivery utilizing new technologies such as immersive 3D virtual reality experiences. Recruiting efforts have become more focused on programs such as the 30x30 Initiative, the California State University Sacramento’s Law Enforcement Candidate Scholars programs, and the Hiring Pipeline Program which includes the cadet, student trainee and community service officer programs. The PD has also initiated focused recruiting events at our Communications Center resulting in improved hiring outcomes. Other recruiting programs include:

o Bootcamp Wednesday
o Run with a Recruiter
o Career Fair/Hiring Workshops
o Conduct mock orals in preparation for the Oral Assessment o The Female Fitness Challenge
o Community Academy Day

DEPARTMENT EFFICIENCIES
• Emerging Technologies: The PD continued to expand and integrate the use of emerging technologies such as Police Observation Devices (PODs), Unmanned Aerial Systems (UAS) and the deployment of smart phones to operations staff to enhance connectivity to essential law enforcement databases.

o PODS: The PD’s 146 PODs are strategically located throughout the city and in 2024 they enabled officers to respond to and investigate nearly 967 POD generated calls-for-service. Officers use POD data to conduct follow-up on criminal investigations.

o License Plate Reader (ALPR): License Plate Reader (ALPR) technology was added to the PD’s technological resources. The PD began outfitting patrol vehicles with the new Fleet 3 in-car- camera Technology which is equipped with ALPR technology and captures multiple vehicle lanes and checks vehicle license plates against criminal justice databases.

o Unmanned Aerial Systems - Drone as First Responder: The PD explored a pilot program which expanded the UAS program. It assisted with area searches, rooftop checks, yard searches, searches for missing persons, and scene assessment. This program enhanced both community and officer safety while increasing employee efficiency. This program is an additional layer of de-escalation utilized by officers.

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FY2025/26 Proposed Budget

o Public Safety Camera Network: In 2024, the PD created a Public Safety Camera Network – this is an open ecosystem that integrates and enhances the business community, government, public safety and investigation assets. This network enables citizens and businesses to partner directly with the PD to register the location of their privately owned cameras and in some cases provide direct integration to the PD for live camera viewing. This network of cameras allows responding officers and investigators to more efficiently and effectively use cameras to respond to and investigate crimes within the City of Sacramento.

o Online Reporting: The PD is currently building out a new community online reporting system. The new system will allow community members to effortlessly submit their report via web or mobile app and receive automatic updates, enabling flexible communication through a multilingual process. It utilizes a powerful conversational AI system that listens, asks questions and adapts throughout the virtual investigation, submitting a report with zero wait time. In 2024, the community filed 13,579 online reports.

• Translation Services: T he PD Communications Center is working hard to build the best possible interface between our community and the services we provide by improving call proc ess by leveraging technology to assist with call triaging, redirecting, translation and locations services.

• Streamlining Records Requests: The PD receives thousands of records requests and our records division is currently working with our transparency and government affairs teams to route all requests for PD data through one portal to make it easier for the public to get what they need. They are also working with an external partner in developing an AI document redaction program which will enhance the release of records.

• Community Service Officer III: A Community Service Officer III (CSO III) is a career position that is non- sworn within the PD. The role of a CSO III often includes providing support to police officers in patrol, investigations, records, property and other divisions within the PD. They assist with various administrative tasks, engaging in community -based services, and conduct investigations.

• SPIDR Tech (Community Connect): The PD uses SPIDR Tech for several purposes, primarily focused on improving community engagement and customer service. SPIDR Tech is a customer service satisfaction survey program that sends surveys to Sacramento residents who have had contact with city officers. These surveys help gather feedback on the interactions and are audited bi -monthly to ensure compliance with relevant regulations.

Additionally, SPIDR Tech is integrated into the department's reporting system.

It provides updates to community members on the status of certain calls for service and police reports submitted to the Investigations Division. This 306
FY2025/26 Proposed Budget

technology helps maintain accountability and transparency within the department, ensuring that residents are kept informed about the progress of their reports and interactions with the police.

• Traffic Enforcement: After a successful reduction in collision fatalities in 2024, the Traffic Section has expanded its enforcement efforts this year. This will include a nighttime traffic team, working the evening commute and weekend hours to address DUI and sideshow issues, and continuing the data- driven approach to deployment. This strategy places resources in the areas where the collisions and dangerous driving behaviors are occurring, ensures coverage throughout the city, and collaborates with community partners to meet the goal of safer travel for all roadway users, such as pedestrians, bicyclists, and automobile drivers. In 2024, the PD conducted 21,944 traffic stops and issued 6836 citations (24% increase). Additionally, the city saw a reduction of 31% fatal collisions and 38% fewer traffic deaths.

OBJECTIVES FOR FY2025/26

For FY2025/26, PD priorities are:
• Operational Readiness and Response
• Crime Reduction
• Employee Investment
• Quality Police Service
• Strategic Governance

• Operational Readiness and Response: The PD
o Will maintain a constant state of readiness and preparedness to respond to the everyday needs of our city but also exceptional situations. o Will continue to invest in cutting -edge technology and training to enhance our personnel’s ability to respond swiftly and effectively to emergencies. o By optimizing our resource allocation, we will ensure that the PD is strategically positioned to prevent and deter crime.
• Crime Reduction: The PD
o Will employ data-driven strategies to identify trends and allocate resources to prevent and mitigate crime.
o By fostering strong community partnerships, we will empower residents to be active participants in crime prevention efforts.
o Will remain vigilant in our efforts to proactively address crime and apprehend criminals.
• Employee Investment: The PD
o Is dedicated to creating a positive and supportive work environment that values both our professional staff and officers' contributions. 307
FY2025/26 Proposed Budget

o By providing opportunities for professional development and advancement, we will empower our officers and professional staff to reach their full potential.
o Will prioritize mental health and wellness programs to support the overall well-being of our officers and professional staff. It will also ensure a positive and supportive work environment that values the contributions of all our staff.
o Provide opportunities for professional development and advancement, empowering our officers and professional staff to reach their full potential. • Quality Police Service: The PD
o Will strive to build trust and positive relationships with the community through transparent and accountable policing practices. o By actively listening to community concerns and feedback, we will tailor our policing strategies to meet the specific needs of our diverse population. o Will continue to uphold the highest standards of ethical conduct and integrity while promoting great customer service to our community members. • Strategic Governance: The PD
o Will develop and implement comprehensive strategic plans to guide our department's future direction.
o By leveraging data analytics, we will make informed decisions that drive positive outcomes.
o Will foster a culture of innovation and continuous improvement to ensure that our department remains adaptable to evolving challenges.

308
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Fiscal Operations Delete one position (1.0 FTE - Account Clerk II) from Fiscal Operations redistributing the department's accounts
payables amongst remaining staff and reducing backup
support for the division's other functions (e.g., travel, purchasing, asset seizure/forfeiture, alarm billing, etc.).

General Fund - (74,773) (1.00)
Force Investigations Team Offset one position (1.0 FTE - Police Officer) from the Force Investigations Team (FIT) using one-time funds from MYOP I11003300.

General Fund - (257,241) -
Office of the Chief Delete one position (1.0 FTE - Senior Staff Assistant) discontinuing executive support for the Deputy Chiefs.

General Fund - (84,104) (1.00)
Operations Offset three positions (3.0 FTE - Community Service Rep I) from Patrol Operations using one-time funds from MYOP
I11003300.

General Fund - (302,860) -
Personnel Delete twenty-three positions (23.0 FTE - Community Service Officer II) reducing the Hiring Pipeline Program to

23.0 FTE - Community Service Officer II positions.

Measure U - (2,193,786) (23.00)
Public Information Office Delete one position (1.0 FTE - Administrative Analyst) and add one position (1.0 FTE - Media Production Specialist II) to the Public Information Office (PIO). This change better suits the PIO's functions and activities.

General Fund - (22,174) -
Public Information Office Offset one position (1.0 FTE - Police Officer) from the Public Information Office (PIO) using one-time funding from MYOP I11003300.

General Fund - (167,894) -
Research, Development
and Training
Delete one positions (1.0 FTE - Police Officer) and offset two positions (2.0 FTE - Police Officer) from the Advanced Officer Training (AOT) unit using one-time funds from
MYOP I11003300.

General Fund - (524,631) (1.00)
Traffic Enforcement Delete two positions (2.0 FTE - Police Officer) and add one position (1.0 FTE - Police Sergeant) to the Traffic
Enforcement Division to supervise the night-time traffic enforcement team.

General Fund - (70,615) (1.00)
Youth, Parks, and
Community Enrichment
Eliminate funding for the Youth & Family Investments
program.

Measure U - (1,300,000) -
Total Change - (4,998,078) (27.00)
Change
Police FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $212,238,836 $220,149,548 $230,831,061 $230,831,061 $233,958,511 $ 3,127,450 Other Services and Supplies 13,992,002 14,093,333 13,597,950 13,597,950 14,147,308 549,358 City Property 445,878 519,616 513,119 513,119 513,119 - Multi-Year Operating Projects 6,988 1,362 9,279,008 4,974,395 10,088,606 5,114,211 Transfers (256,811) (260,168) - - (270,000) (270,000)
Labor and Supply Offset (8,068,677) (5,740,071) (3,364,488) (3,364,488) (3,968,618) (604,130) Total $218,358,216 $228,763,621 $250,856,650 $246,552,037 $254,468,926 $ 7,916,889 309
FY2025/26 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

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

Includes $402,941 for MYOP Gang Prevention and Intervention that is listed as Other Sources/Uses in Forecast

Change
FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Ap proved Amended Proposed Proposed/Amended General Fund $211,994,199 $221,995,035 $238,807,619 $234,503,006 $246,484,504 $ 11,981,498 Measure U 5,847,342 6,251,478 11,475,308 11,475,308 7,410,001 (4,065,307) Ris k Mgmt 516,675 517,108 573,723 573,723 574,421 698
Total $218,358,216 $228,763,621 $250,856,650 $246,552,037 $254,468,926 $ 7,916,889 Change
Police FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Chief Division $ 5,979,910 $ 6,295,082 $ 6,632,769 $ 6,632,769 $ 6,818,284 $ 185,515 Office of Strategy & Compliance 35,132,875 17,219,259 27,826,592 23,521,979 31,159,813 7,637,834 Office of Investigations Division 50,216,985 59,051,529 65,215,975 65,215,975 62,033,222 (3,182,753) Office of Specialized Services Division 41,246,730 43,162,949 46,845,531 46,845,531 48,330,270 1,484,739 Office of Operations Division 85,781,716 103,034,802 104,335,783 104,335,783 106,127,338 1,791,555 Total $218,358,216 $228,763,621 $250,856,650 $246,552,037 $254,468,926 $ 7,916,889 Change
Police FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Office of the Chief Division 28.00 30.00 25.00 25.00 25.00 - Office of Strategy & Compliance Division 143.80 52.00 50.00 50.00 49.00 (1.00) Office of Investigations Division 276.50 329.50 330.50 330.50 304.50 (26.00) Office of Specialized Services Division 255.66 263.66 263.00 263.00 264.00 1.00 Office of Operations Division 425.00 460.00 451.00 451.00 450.00 (1.00) Total 1,128.96 1,135.16 1,119.50 1,119.50 1,092.50 (27.00) Funding Category Program Name FTE
FY2025/26
Proposed
Public Safety - Police
Operations Hiring Pipeline - MU 61.50 4,916,662
Youth
MYOP Gang Prevention and Intervention - 1,402,941 OVP - ARPA Replacement - 1,000,000
Operations Violence Prevention 3.00 493,340
Grand Total 64.50 7,812,943$
310
FY2025/26 Proposed Budget

PERFORMANCE MEASURES
Department-wide

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 totals, as published by the California Department of Justice include: homicide, rape, robbery, aggravated assault, burglary, motor vehicle theft, larceny-theft, and arson.

The above Part 1 crime statistics were retrieved from the California Department of Justice’s Open Justice data portal and contain data of law enforcement agencies throughout the state. Sworn FTE data was retrieved from the California Commission on Peace Of ficer Standards and Training’s (POST) Agency Statistics portal, accessed on March 21, 2024.

FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Part 1 Crimes Reported per 1,000 Residents 43.76 37.43 33.94 30.07 32.01 Part 1 Crimes
E stimated Reported per 1,000
Ranking City Popula tion * Total PIC ** R esidents
1 Oakland 425,093 58,692 138.07
2 San Francisco 843,071 50,603 60.02
3 Bakersfield 411,109 17,420 42.37
4 Fresno 546,971 20,880 38.17
5 Sacramento 520,407 19.678 37.81
6 Los Angeles 3,814,318 139,003 36.44
7 Long Beach 458,813 16,221 35.35
8 Anaheim 340,160 10,724 31.53
9 San Jose 969,491 24,271 25.03
10 San Diego 1,385,379 30,868 22.28
*https://dof.ca.gov/forecasting/demographics/estimates-e1/ (as of 1/1/2024) **https://openjustice.doj.ca.gov/exploration/crime-statistics/crimes-clearances (2023) FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Part 1 Crimes Reported per Sw orn FTE Position 29.94 28.83 26.65 24.18 25.42 ed
Sw orn Part 1 Crimes
Filled E stimated Total Per 1,000 per Filled
City Sworn *
opu at o
** PIC *** R esidents Sw orn
Oakland 680 425,093 58,692 1.60 86.31
Bakerfield 454 411,109 17,420 1.10 38.37
Sacramento 650 520,407 19,678 1.25 30.27
San Francisco 1,801 843,071 50,603 2.14 28.10
Anaheim 400 340,160 10,724 1.18 26.81
Long Beach 644 458,813 16,221 1.40 25.19
Fresno 850 546,971 20,880 1.55 24.56
San Jose 1,001 969,491 24,271 1.03 24.25
San Diego 1,820 1,385,379 30,868 1.31 16.96
Los Angeles 8,602 3,814,318 139,003 2.26 16.16
Workload
Measure
Ranking
1 2
3 4
5 *https://post.ca.gov/Agency-Statistics (retrieved 3/24/2025) **https://dof.ca.gov/forecasting/demographics/estimates-e1/ (as of 1/1/2024) ***https://openjustice.doj.ca.gov/exploration/crime-statistics/crimes-clearances (2023) 6 7
8 9
10 311
FY2025/26 Proposed Budget

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. Currently, approximately 42 percent of sworn employees are women or minorities. The second measure reflects the percentage of new hires into sworn and Hiring Pipeline vacancies. The Department will continue 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 vital 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 priority. The response time of all calls is tracked by the Department’s Crime Analysis Unit.

The projections for the remainder of the current fiscal year and the next fiscal year 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 90% 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.

FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percentage sw orn SPD employees w ho are w omen or
minorities
43% 46% 47% 48% 48%
Percentage of new hires into sw orn or Hiring Pipeline Program vacancies that are w omen or minorities
76% 81% 83% 77% 80%
FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Key Measure in minutes
Median response time for priority 2 and 3 calls
( mm:s s )
12:09 12:17 11:56 11:48 11.52
FY22 FY23 FY24 FY 25 FY26
K ey Measure Actuals Actuals A ctuals E stimate Target
Percentage of 911 calls answ ered w ithin 15 seconds 92% 87% 84% 86% 90% 312
FY2025/26 Proposed Budget

22 SECTION - 22
Public Works
313
FY2025/26 Proposed Budget

314
FY2025/26 Proposed Budget

Public Works
We keep the City of Sacramento operating and moving forward.

The Public Works Department is dedicated to maintaining safer streets, sustainable infrastructure, and innovative mobility solutions. Over the past year, we have implemented tens of millions of dollars in transportation improvements, expanded electric vehicle charging and transit access, enhanced traffic safety, and completed critical road and facility upgrades. Additionally, the department has strengthened parking management through expanded permit programs and automated enforcement, while continuing to improve operations at the Sacramento Marina to better serve the boating community. These services are the responsibility of the following divisions:
• Engineering Services: Responsible for transportation funding support, project development, design and construction, survey and inspection, private development encroachment permits for work in public right -of-way, and map review and approval and staffing of the Disabilities Advisory Commission (DAC). • 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 streetscapes, tree health and maintenance, and right-of-way coordination.
• Office of the Director: Responsible for policy, legislative support, funding, special projects, recruitment and retention , employee enrichment, community outreach and marketing, and department-wide support.
• Mobility and Sustainability: Responsible for city and regional t ransportation planning and prioritization and coordination, directing key sustainability and Facilities and R eal
Prope rty Mgmt
M aintenance
Ser v i ces
M obility and
Sus tainability
R ecycling and
Solid W aste
Public Works
Engineering
Ser v i ces
F leet
M anagement
Office of the
Dire c t o r
Parking
Ser v i ces T ransportation
315
FY2025/26 Proposed Budget

mobility initiatives and grant applications, managing and updating mobility and sustainability initiatives, implementing key programs and initiatives , conducting community outreach and engagement, managing transportation assets and data, and coordinat ing citywide sustainability and climate related initiatives and programs.
• Parking Services: Responsible for curb management, parking enforcement, parking meters, retail lease space, parking garages, parking lots, and operation of the Sacramento Marina.
• Recycling and Solid Waste: Responsible for collecting residential garbage, recycle, organics, household hazardous waste, household junk, illegal dumping, and providing residential and commercial street sweeping services. The division is also responsible for commercial waste compliance and landfill post -closure maintenance and monitoring.
• Transportation: Responsible for maintenance and operations of streetlights and traffic signals, entitlements, traffic studies and investigations, traffic control devices, and active transportation design for traffic safety.

PROGRAMS/SERVICE HIGHLIGHTS

• The Parking Division’s implementation of the Supplemental Permit Parking (SPP) pilot program, allowing residents living in developments with little or no on- site parking the opportunity to purchase parking permits on the street, resulting in improved parking management and access to convenient parking solutions.

• The Parking Division extended discounted employee parking programs including the expansion of the on-street Merchant Permit Parking Program and updating the Discounted Employee Parking Program (DEPP) eligibility requirements for discounts in City garages.

• The Parking Division partnered with Sacramento Regional Transit to implement automated enforcement of bus zone and bike lane parking violations. This collaboration ensures that bus stops and bike lanes are safe for all users, promoting a more efficient and secure transit environment.

• The Department adopted a pavement moratorium on newly resurfaced streets, prohibiting trenching and excavation for utility work for up to five years on streets with asphalt overlays of at least half an inch and up to three years on streets with lighter resurfacing treatments. This new ordinance ensures the longevity and integrity of recently paved roads, promoting improved street conditions and reducing the need for costly repairs.

• The Department secured several grants, including $2.4 million to install Fleet charging stations, planning grants to improve mobility and safety in Old North Sacramento, South Sacramento, and along the Arden Way commercial corridor, 316
FY2025/26 Proposed Budget

an Active Transportation Grant for Northgate Boulevard, and safety improvement grants.
• The Mobility and Sustainability Division completed the Truxel Bridge Concept and Feasibility Study with an extensive and diverse community engagement effort, including early input from the United Auburn Indian Community to help guide the future phases of the bridge implementation.
• The Department continued implementation of the EV Blueprint, installed and 13 level 2 electric vehicle charging sites at City parks, community centers, and libraries. Partnered with the Sacramento Metropolitan Air Quality Management District to launch Our Community Car Share Program at the South Area Corporation Yard.
• The Mobility and Sustainability Division completed the Streets for People:

Neighborhood Connections Plan, paving the way for planned traffic calming and active transportation investments in Sacramento’s neighborhoods. • The Fleet Maintenance Division completed over 15,000 work orders on over 2,600 vehicles and equipment.
• The Recycling and Solid Waste Division implemented the Neighborhood Clean- up Grant Program offering up to $800 to recognized organizations for eligible clean- up programs; 22 projects awarded totaling $5,094 in granted funds. • The Recycling and Solid Waste Division distributed over 5,000 food waste collection bins to City of Sacramento residents to support the City’s organics recycling program totaling over 40,000 since June 2022. • The Facilities and Real Property Division oversees maintenance for over 400 city facilities. Recent projects include Roof and Siding Repair on the Steamers Building in Old Sacramento, replaced the flooring at Fire station 2 and 17, and updated the interior to the Winn Park building.
• The Department completed the Broadway Complete Streets Project, Dixieanne Clean & Green Alleys Project, 21st Avenue Beautification, Memorial Auditorium Sidewalk, Highway Safety Improvement Program (HSIP) Florin Road Signals, Norwood Access Improvements, and the Audible Signals Phase 1 Project. • The Engineering Services Division completed 4,240 plan reviews for $133,914,000 in private development investments throughout the city and completed 96.8% reviews on time. With the recordation of 45 final maps/parcel maps, there is potential for 1,165 new single family residential lots, 4 new city parks and several new condominiums and apartments.
• The Engineering Services Division successfully issued and provided construction oversight for nearly 6,000 temporary encroachment permits.

317
FY2025/26 Proposed Budget

DEPARTMENT EFFICIENCIES
• The Department implemented assertive recruitment strategies, such as organizing and attending career fairs within the community, recruitment marketing via social media, partnering with the Human Resources Department to create continuous hiring lists, and adjusting interview protocols that resulted in the reduction of vacancies from 42% in March 2023 to 22% in March 2025. • The Parking Division implemented hiring incentives for Parking Enforcement Officers, enabling the division to hire and retain nine new officers. This has strengthened our enforcement capabilities, allowing the Parking division to better serve the community.
• The implementation of a new parking guidance system for Memorial Parking Garage was a significant milestone. This system has improved parking efficiency and user experience by providing real -time information on available parking spaces.
• The
Maintenance Services Division successfully reduced vendor costs by $200,000 by adjusting streetscape maintenance services to twice a month. • The Department completed the first stage of a Governance Study to identify a more effective governance and financing model for the regional Sacramento Valley Station and surrounding district.
• Efforts to replace ornamental turf in medians with drought -tolerant landscaping is underway to decrease maintenance requirements and enhance water conservation. It is estimated that 10% of all ornamental turf will be removed by the end of the fiscal year.
• The Fleet Management Division partnered with the telematics provider to transmit data to the state repository for smog testing to reduce fleet technicians completing the tests manually. This gives the technicians more flexibility to assist with vehicle maintenance and repairs.
• The Fleet Management Division installed 6 new vehicle lifts to provide a safer shop environment; reviewed clean-up time in the maintenance shops which provided over 4,000 additional hours of billable time; Advanced Clean Fleet Regulations are underway to reduce emissions by increasing heavy duty electric vehicles and an administrative analyst was hired to research and ensure reporting compliance.
• The Facilities and Real Property Division is working with Information Technology and Risk Management departments to update the Facilities Asset Management System and centralize all City facilities into one asset database. • The Recycling and Solid Waste Division purchased the City’s first electric side- loading collection vehicle as a test pilot, with the goal of reducing carbon emissions and fuel expenses.
318
FY2025/26 Proposed Budget

• The Engineering Services Division updated the Construction Administration & Inspection Training Manual and started training the inspection team and created a new database in CMIS to develop and track change orders for all city construction projects.

• The Department began implementation of cost recovery efforts for public electric charging to offset the cost of electricity and ongoing operations and maintenance.

Overstay penalties will also be assessed to ensure turnover.

OBJECTIVES FOR FY2025/26
• Update the Pavement Conditions Report to reflect current conditions and maintenance strategies, including a detailed analysis of pavement quality by council district and disadvantaged areas.
• Complete the Electric Vehicle Blueprint, installing public chargers at key parks, libraries, and community centers, expanding electric car share with the Sacramento Metropolitan Air Quality District, and managing the e- bike lending program with the Sacramento Public Library.
• Complete the Streets for People Plan, Vision Zero Action Plan Update, Active Transportation Plan update, SacAdapt Transportation Infrastructure Adaptation Plan, Urban Forest Plan, update of the Transportation Systems Management Program (TSMP), and update to modernize the City’s Street Design Standards. • Repair and replace diesel exhaust systems in fleet maintenance shops. • Continue to implement AB 43 speed reduction measures to reduce speed limits in specified locations to address safety concerns.
• Complete an update on the Fleet Transportation Policy to effectively manage the use of City vehicles.
• Complete the analysis and start implementation of a plan to adhere to the Advanced Clean Fleet Regulation.
• Complete the construction for the Martin Luther King Jr. Library and begin construction for the North Sacramento Hagginwood library which are funded through “Building Forward, Library Infrastructure” state grants. • Replace the Air Conditioning Units at the Sacramento History Museum and replace the Roof and the Uninterruptable Power Supplies at the 911 communication Center.
• Explore efficient and convenient ways to distribute compost from the City’s organics recycling program at no cost to City residents to meet Senate Bill 1383 procurement requirements.
319
FY2025/26 Proposed Budget

• Commence construction to cap and close the final seven acres of the old City landfill site at Sutter’s Landing (28th Street) pending final regulatory approval. • Commence construction of the I Street Bridge Replacement project. • Complete environmental review of the Regional Bus Mobility Center at the Sacramento Valley Station.
• Establish a Project Dashboard for all transportation projects which will give internal and external customers a view of transportation projects to enhance project coordination and collaboration of all parties in the public right of way. • Create a Project Management Database to streamline reviews and approvals to make project delivery more efficient.
• Explore a flat fee for private development projects to make development more predictable.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Engineering Services Delete two positions (1.0 FTE - Engineering Technician I and 1.0 FTE - Engineering Technician III) and add two
positions (2.0 FTE - Assistant Civil Engineer) to increase staff capacity to work on various transportation projects.

General Fund (59,905) 60,705 -
Engineering Services Delete one position (1.0 FTE - Account Clerk II) and add one position (1.0 FTE - Accountant Auditor) to provide
staffing to address workload for grant accounting and
reimbursements.

General Fund (44,010) 44,379 -
Engineering Services Delete one position (1.0 FTE - Survey Technician II) and add one position (1.0 FTE - Supervising Construction
Inspector) to oversee inspection staff and consultants
working in the City right-of-way.

General Fund (40,010) 40,426 -
Facilities and Real Property Delete one position (1.0 FTE - Architectural Technician III) and add one position (1.0 FTE - Facilities and Real
Property Superintendent) in the Facilities Division to
manage upcoming major capital projects and support
internal construction processes and oversight.

General Fund (56,907) 56,907 -
Facilities and Real Property Delete one position (1.0 FTE - Mail Processor I) and add one position (1.0 FTE - Senior Staff Assistant) in the
Facilities Division to provide a greater range of needed services beyond processing mail.

General Fund - 6,740 -
Facilities and Real Property Replace Kinney Police Facility HVAC system as the system is past end of useful life.

Cal EPA - 557,000 -
Facilities and Real Property Increase funding for the Facility Reinvestment CIP (C13900000) to address ongoing cost increases.

Measure U - 300,000 -
Fleet Delete one position (1.0 FTE - Vehicle Service Attendant) and add one position (1.0 FTE - Fleet Service Coordinator) to address ongoing administrative needs in the shops and free up mechanics to spend more time working on vehicles.

Fleet
Management
- 3,182 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

General Fund - 319,096 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Measure U - 79,616 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Marina - 57 -
320
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Community
Center
- 141 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Parking - 1,709 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Recycling and
Solid Waste
- 217,309 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Storm Drainage - 39,383 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Wastewater - 37,310 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Water - 39,880 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency. 4th R Program - 59 -
Fleet Increase funding one-time in the Fleet Facilities CIP (B13000100) for repairs and replacement of outdated
equipment to ensure workers safety and improve efficiency.

Ris k Mgm t - 5,440 -
Maintenance Services Delete one position (1.0 FTE - Street Construction Laborer) and add one position (1.0 FTE - Street Maintenance
Supervisor) to have adequate supervisors to manage
multiple job sites in the In-Source Concrete Section.

General Fund (16,455) 16,455 -
Maintenance Services Increase expense budget one-time for Urban Forestry by $500,000 to address stump removal backlog from 2023
storm. This is being fully offset by Landscape and Lighting funds.

General Fund (500,000) 500,000 -
Maintenance Services Increase expense budget one-time for Urban Forestry by $500,000 to address stump removal backlog from 2023
storm. This is being fully offset by Landscape and Lighting funds.

Landscaping and
Lighting
500,000 - -
Parking Services Increase revenue and expense budgets for parking meter shop to reflect expanded operations (additional days and new metered spaces) and add two positions (1.0 FTE -
Parking Meter Repair Worker and 1.0 FTE - Parking
Facilities Maintenance Supervisor) to address expanded
meter operating days and increased locations.

General Fund (600,000) 403,524 2.00
Parking Services Increase revenue budget for parking enforcement to reflect higher anticipated revenues resulting from better hiring and retention strategies for parking enforcement officers and increase parking meter expense budget to replace existing meters with multi-space parking meters to reduce longer term maintenance costs and vandalism.

General Fund (2,500,000) 525,953 -
Parking Services Establish fees for Residential Permit Parking program to recover costs.

General Fund (1,088,581) 127,699 -
Parking Services Discontinue parking enforcement and maintenance contracts with the City of West Sacramento to focus limited City resources on City needs.

General Fund (252,098) - -
Parking Services Increase revenue and expense budgets for the Parking Fund to reflect higher ongoing growth in parking garage utilization.

General Fund (355,463) 303,551 -
Parking Services Increase the hourly rates in City parking garages to be consistent with the surrounding market.

Parking (344,462) 11,294 -
321
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Parking Services Repeal discounted parking rates in City garages for electric vehicles (EVs) as this legacy program is no longer
necessary to promote EV adoption.

Parking (53,411) 1,602 -
Parking Services Increase revenue and expense budgets for parking enforcement related to Automated Parking Enforcement
Program and for interim out-of-class pay.

General Fund (2,392,395) 495,943 -
Parking Services Expand on-street Merchant Parking Permit program to downtown employees to optimize parking use.

General Fund (46,800) 2,730 -
Parking Services Increase revenue and expense budgets for the Parking Fund to reflect higher ongoing growth in parking garage utilization.

Parking (550,000) 225,000 -
Parking Services Increase parking garage prepay and online reservation rates to balance market demand.

Parking (156,314) 4,689 -
Parking Services Increase monthly rates at City Parking Garages to reflect increasing costs and remain competitive with surrounding market.

Parking (101,493) 3,045 -
Parking Services Increase merchant parking validation coupon fee to better recover issuance costs and reduce misuse.

Parking (56,406) - -
Parking Services Increase revenue and expense budget for Marina Special Revenue Fund to reflect implementation of increased berth rates as of 1/1/25 and increased operating costs.

Marina (150,000) 75,000 -
Parking Services Increase parking meter rates to improve turnover of on- street parking inventory.

General Fund (3,517,464) 193,461 -
Parking Services Offset one position (1.0 FTE - Systems Engineer) with one- time funds from the Parking Fund. Position will move to the Cost Plan in FY2026/27.

Parking - 138,621 -
Recycling and Solid Waste Add 1.0 FTE Senior Integrated Waste Equipment Operator to operate front load recycling route to serve newer and planned higher density developments.

Recycling and
Solid Waste
- 106,860 1.00
Recycling and Solid Waste Conduct various additions and modifications in the Commercial Waste Compliance Division:
• Adjust revenue and expense budgets for commercial
waste
franchise fees and fines to reflect anticipated revenue and expenses.
• Increase the annual General Fund contribution toward the Illegal Dumping project (I15200200).
• Create a new capital project for Street Maintenance to address street and alley repair needs.
• Add one position (1.0 FTE - Senior Integrated Waste
Equipment Operator) and one specialized narrow street
sweeper.
• Reduce annual Measure U contribution to the Illegal
Dumping project (I15200200) to fund a greater share from commercial franchise waste fees.
• Reduce annual General Fund contribution to the Landfill Site Closur
e project (Y14000100) and 28th Street Landfill
Regulatory project (Y15000100).

General Fund (256,021) 826,591 1.00
322
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Recycling and Solid Waste Conduct various additions and modifications in the Commercial Waste Compliance Division:
• Adjust revenue and expense budgets for commercial
waste
franchise fees and fines to reflect anticipated revenue and expenses.
• Increase the annual General Fund contribution toward the Illegal Dumping project (I15200200).
• Create a new capital project for Street Maintenance to address street and alley repair needs.
• Add one position (1.0 FTE - Senior Integrated Waste
Equipment Operator) and one specialized narrow street
sweeper.
• Reduce annual Measure U contribution to the Illegal
Dumping project (I15200200) to fund a greater share from commercial franchise waste fees.
• Reduce annual General Fund contribution to the Landfill Site Closur
e project (Y14000100) and 28th Street Landfill
Regulatory project (Y15000100).

Measure U - (570,000) -
Transportation Delete three positions (3.0 FTE - Administrative Analyst) and add three positions (3.0 FTE - Associate Planner) to better meet the workload and responsibilities in the
Transportation Planning Section.

General Fund 37,543 (37,543) -
Transportation Delete three positions (3.0 FTE - Administrative Analyst) and add three positions (3.0 FTE - Associate Planner) to better meet the workload and responsibilities in the
Transportation Planning Section.

Gas Tax 2016 (37,543) - -
Transportation Add one position (1.0 FTE - Supervising Engineer) to oversee the Traffic Operations Center to better direct
increased planning and implementation of traffic-related technology and equipment.

General Fund (200,785) 199,517 1.00
Transportation Add one position (1.0 FTE - Supervising Engineer) to oversee the Traffic Operations Center to better direct
increased planning and implementation of traffic-related technology and equipment.

Gas Tax 2016 159,614 - -
Transportation Add six positions (1.0 FTE - Supervising Engineer, 1.0 FTE - Senior Engineer, 2.0 FTE - Assistant Civil Engineers, 1.0 FTE - Traffic Investigator III, and 1.0 FTE - Administrative Analyst) in the Transportation Division to implement
transportation safety improvements. Add one vehicle for the Traffic Investigator.

General Fund (913,417) 911,379 6.00
Transportation Add six positions (1.0 FTE - Supervising Engineer, 1.0 FTE - Senior Engineer, 2.0 FTE - Assistant Civil Engineers, 1.0 FTE - Traffic Investigator III, and 1.0 FTE - Administrative Analyst) in the Transportation Division to implement
transportation safety improvements. Add one vehicle for the Traffic Investigator.

Gas Tax 2016 174,614 46,500 -
Total Change (13,418,169) 6,321,210 11.00
323
FY2025/26 Proposed Budget

Department Budget Summary

Change
Public Works FY2022/23 FY2023/24 FY2024/25 FY2024/ 25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approve d Amended Proposed Proposed/Amended Employee Services $ 76,078,697 $ 79,729,909 $ 99,888,317 $ 99,888,317 $102, 866,427 $ 2,978,110 Other Services and Supplies 97,011,576 99,579,687 108,007,294 108,074,959 110, 923,068 2,848,109 City Property 12,245,053 12,615,406 28,447,183 31,672,585 26, 667,984 (5,004,601) Multi-Year Operating Projects - 361 17,912,803 5,838,905 9, 891,963 4,053,058 Transfers (174,510) 112,239 400,655 400,655 1,552,448 1, 151,793 Labor and Supply Offset (19,134,708) (23,634,633) (26,029,095) (26,029, 095) (27,047,873) (1,018,778) Operating Transfers 12,151,077 13,381,787 12,296,500 12,296,500 12, 560,800 264,300 Total $178,177,185 $181,784,754 $240,923,657 $232,142,826 $237, 414,817 $ 5,271,991 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/ 25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals App roved Amended Proposed Proposed/Amended General Fund $ 24,372,911 $ 24,559,858 $ 28,211,584 $ 26, 833,725 $ 32,784,305 $ 5,950,580 Interdepartmental Service 2,388,982 1,664,763 1,901,512 1, 901,512 1,835,479 (66,033) Gas Tax 2016 5,128,829 3,558,953 11,579,972 7, 203,893 8,084,723 880,830 Traffic Safety 253,425 285,000 306,882 306,882 343, 304 36,422 Citation I-5 Maintenance 43,349 66,454 40,000 40,000 40, 000 - New Measure A Maintenance 12,990,297 14,549,100 17,829,804 17, 829,804 16,913,236 (916,568) NMA Safety, Streets, Ped, Bic - - 5,500 5,500 5,500 -
Pow er Inn Rd Md 2003-01 9,920 9,842 11,732 11,732 13, 031 1,299 Neighborhood Lighting Dist 25,009 25,009 27,510 27,510 30, 261 2,751 Northside Subdiv Maint Dist 2,153 1,532 6,500 6,500 6, 500 - Subdiv Lndscpng Maint Dist 334,410 348,237 356,147 356,147 418, 141 61,994 Laguna Creek Maint Dist 51,346 51,580 51,580 51,580 103, 132 51,552 12th Street Maint Benefit Area 9,200 11,500 19,860 19,860 25, 916 6,056 Neighborhood Water Quality Dist 34,649 38,442 63,215 63,215 83, 122 19,907 N Nat Lndscp 99-02 676,974 655,380 754,301 754,301 896, 526 142,225 Willow creek Assmnt Md 16,546 24,047 38,000 38,000 38, 000 - Willow creek Lndscpng CFD 120,000 120,000 125,000 125,000 130, 000 5,000 N Natomas Lands CFD 3 732,827 615,000 733,750 733,750 871, 354 137,604 Village Garden N.-Mtce Dist #1 25,539 24,654 34,558 34,558 41, 488 6,930 Landscaping and Lighting 12,564,081 13,684,835 15,239,772 14, 824,772 16,095,963 1,271,191 Del Paso Nuevo Landscaping CFD 19,500 13,703 24,700 24,700 24, 873 173 Tow nship 9 CFD No. 2012-06 - - 2,000 102,000 2,000 (100, 000) Railyards Maint CFD No 2014-04 129,469 144,639 226,520 226,520 299, 556 73,036 Parkebridge CFD 2014-07 64,000 73,000 88,330 88,330 126, 433 38,103 SacMaintCFD2014-04 Annex Areas 36,758 40,559 133,713 133,713 133, 713 - SacMaintCFD2014-04 Area 01 98,750 98,750 132,750 132,750 132, 750 - Sac Services CFD 2018-05 - - 42,758 42,758 58,898 16,140 Measure U - 454,700 1,832,491 1,832, 491 1,231,276 (601,215) Land Park 3,015 32,850 32,850 32,850 32, 850 -
Marina 1,013,069 1,187,446 1,142,047 1, 142,047 1,329,098 187,051 Cal EPA 216 - - - - -
Transportation Development Impact Fee 95,956 20,428 - - - - Parking 6,315,923 7,279,374 8,672,824 8, 672,824 9,641,685 968,861 Water - - 55,849 55,849 - (55,849)
Wastew ater - - 55,850 55,850 - (55,850)
Recycling and Solid Waste 62,734,776 64,062,725 84,881,531 78, 207,831 80,799,024 2,591,193 Storm Drainage 406,000 387,877 461,850 461,850 305, 926 (155,924) Fleet Management 47,479,308 47,694,517 65,800,415 69, 762,222 64,536,755 (5,225,467) Total $178,177,185 $181,784,754 $240,923,657 $232, 142,826 $237,414,817 $ 5,271,991 324
FY2025/26 Proposed Budget

Division Budget Summary

Staffing Levels

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

Change
Public Works FY2022/23 FY2023/24 FY2024/25 FY2024/ 25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approve d Amended Proposed Proposed/Amended Climate Action and Sustainability Division - $ 454,700 $ 562,491 $ 562,491 $ 531,276 $ ( 31,215) Engineering Services Division (603,446) (482,236) 34,584 (203,790) (83, 630) 120,160 Office of the Director 2,152,743 2,157,915 2,465,716 2,465,716 2, 634,173 168,457 Parking Services Division 20,215,721 21,180,357 26,263,911 25,723,911 29, 570,880 3,846,969 Maintenance Services Division 25,003,595 25,673,884 30,880,086 28,467,257 30, 237,101 1,769,844 Mobility and Sustainability Division - - 1,541,256 1,541,256 1,652,786 111,530 Transportation Division 11,021,150 11,125,277 14,739,033 12,565,783 12, 208,728 (357,055) Fleet Management Division 47,479,308 47,694,517 65,800,415 69,762,222 64, 496,764 (5,265,458) Facilities & Real Property Mgmt Division 8,416,271 7,488,283 7,873,194 7,840,859 10, 193,236 2,352,377 Recycling & Solid Waste Division 64,491,844 66,492,057 90,762,971 83,417,121 85, 973,504 2,556,383 Total $178,177,185 $181,784,754 $240,923,657 $232,142,826 $237, 414,817 $ 5,271,991 Change
Public Works FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Climate Action and Sustainability Division - 4.00 4.00 4.00 4.00 - Engineering Services Division 80.00 79.00 79.00 79.00 79.00 - Office of the Director 13.00 12.00 11.00 11.00 10.00 (1.00) Parking Services Division 130.85 132.35 131.35 131.35 133.35 2.00 Maintenance Services Division 123.00 124.00 121.00 121.00 121.00 - Mobility and Sustainability Division - - 12.00 12.00 13.00 1.00 Transportation Division 72.00 72.00 65.00 65.00 72.00 7.00 Fleet Management Division 83.00 82.00 83.00 83.00 83.00 - Facilities & Real Property Mgmt Division 73.00 72.00 72.00 72.00 72.00 - Recycling & Solid Waste Division 191.30 191.30 191.30 191.30 193.30 2.00 Total 766.15 768.65 769.65 769.65 780.65 11.00
Funding Category Program Name FTE
FY2025/26
Proposed
Climate Action
Operations Climate Action and Sustainability 4.00 531,275 Community Response
MYOP PW Sustainability Program - 300,000
Illegal Dumping Program - 400,000
Grand Total 4.00 1,231,275$
325
FY2025/26 Proposed Budget

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.

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 sustai n adequate vehicle availability.

The California Global Warming Solutions Act of 2006 (Assembly Bill 32) requires California 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 responsible for the City’s street infrastructure system which includes over 3,118 lane m iles 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 56 (fair). Beginning in FY17 the City updated the method of calculating pavement conditions 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 lane miles of paved roadway. Patching potholes is an essential service and on average, the Maintenance Services Division patches over 2,000 potholes per month. Our customer commitment is to respond to 311 complaints for potholes within 48 hours of receiving t he request.

The City’s Urban Forestry Program maintains, sustains and enhances Sacramento's tree canopy through a variety of programs. Urban Forestry staff (internal and contractors) need to prune 890 trees monthly on average to stay consistent with our goal of 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 being pruned.

FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percent of all facility w ork order requests completed
w ithin a 30-day performance standard 53% 51% 60% 59% 60% FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percent of City vehicles available at 6:00 AM 92% 92% 92% 95% 95% FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percent of alternative fuel vehicles purchased 59% 61% 67% 75% 53% FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percentage of roads w ith a Pavement Condition Index
above 70 (good rating)
24% 23% 22% 22% 22%
FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percentage of 311 service requests for potholes
responded
92% 93% 93% 93% 95%
FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percentage of tree inventory pruned per annual cycle 75% 58% 60% 80% 80% 326
FY2025/26 Proposed Budget

Parking Services Division

The Parking Division is responsible for the collection and maintenance of over 6,100 paid on-street parking spaces within the Central City. The division continues to work with downtown and midtown merchants to repurpose metered spaces to accommodate customer pickup and delivery as well as implementing Al Fresco dining options. 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 affected by significant decline in revenue due lack of on-street parking meter utilization due to the pandemic. With a steady increase in utilization each year, meter revenue is projected to reach pre -pandemic levels in FY24/25.

Marina Division

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 to as low as 44 percent.

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 (recycling, organics and household junk) diverted from landfills is below the State threshold (as shown above), as a jurisdiction, the City government collection rate meets the state requirement at 50 percent diversion for Calendar Year 2022, the latest data available. The difference is due to the higher level of waste diversion by the majority of commercial waste haulers, which is not part of the City’s residential collection service. The City is also implementing diversion measures to reduce organic waste in landfills in accordance with SB 1383, which has a statewide goal of a 75 percent reduction from 2014 levels. Educating customers on proper recycling is central to seeing these percentages grow. Over 50 percent of the Division’s annual outreach expenditures are spent on increasing diversion.

In a given year, City Integrated Waste Equipment Operators service almost 18 million garbage, recycling and yard waste containers.

Complaints of missed collections represent the highest volume of solid waste related calls to City 311; however, the actual number of verifiable service miss represents only a fraction of one percent of the total containers collected annually.

FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Revenue generated per parking meter $1,317 $1,600 $1,744 $2,002 $2, 158 FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Marina slips occupancy rate 87% 87% 84% 86% 87%
FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Percent of City collected w aste diverted from landfill 42% 46% 47% 47% 48% FY22 FY23 FY24 FY2 5 FY26
K ey Measure Actuals Actuals Act uals E stimate Target
Number of complaints of missed pickups (per 1,000
refuse accounts)
11 10 9 9 9
327
FY2025/26 Proposed Budget

328
FY2025/26 Proposed Budget

23 SECTION - 23
Utilities
329
FY2025/26 Proposed Budget

330
FY2025/26 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 customers, City ratepayers. These services are crucial to safeguard the health and safety of the public, support economic development, protect the environment, and improve the quality 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, development, and rehabilitation of water resources infrastructure to comply with regulatory requirements.

DOU is organized into four operating divisions and the Office of the Director. The operating divisions consist of Business Services, Engineering and Water Resources, Water, and Wastewater & Drainage. This organizational structure allows for increased collaboration across business functions and enables 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, and long-
range financial planning; provides utility
customers with customer service and billing
services.

• Engineering and Water
Resources:

Provides engineering, construction, and/or
contract support for capital projects;
development review; department -wide
procurement for goods and services; water
conservation program implementation;
regional water policy activities; and in
collaboration with the Water and
Wastewater & Drainage Divisions, ensures
331
FY2025/26 Proposed Budget

compliance with state and federal
regulations.

• Office of the Director: Provides department leadership and direction by fostering a healthy work
environment, focusing on innovation,
sustainability, resiliency, and excellent
customer service . Engages in
government affairs by working on local,
state, and national legislative and policy
matters. Further public education, and
outreach; while planning for current and
future generations using a strategic plan
that protects, preserves , and enhances
water resources and the environment for
our community.

• Water: Provides o perations and maintenance
(O&M) of the water distribution system,
surface water treatment plants,
groundwater wells, and reservoirs; cross-
connection control program; construction
coordination with capital improvements
for infrastructure upgrades; water quality
monitoring and regulatory compliance;
research and development into regulatory
change, optimization of
processes, and
water quality issues.

• Wastewater & Drainage: Provides O&M for storm drainage, wastewater, and combined stormwater/
sewer systems, treatment plants,
wastewater and storm drainage pumping
facilities, levees, and O&M for electrical
instrumentation, SCADA, and for the
water, wastewater, and drainage system
assets. In addition, the division oversees
the citywid
e Underground Service Alert
(USA) program and citywide generator
program for emergency standby power
systems, to ensure operational readiness
and regulatory compliance.

DOU also provides administrative and financial support and oversight to the Water Forum.

The Water Forum consists of six (6.0) full -time employees and has two operating funds and one reimbursable fund. The Water Fund provides reimbursements for the City’s share of the costs associated with this joint effort with cost-share partners. 332
FY2025/26 Proposed Budget

PROGRAMS/SERVICE HIGHLIGHTS

• In December 2024, the Auditor’s office completed an independent review of the water and wastewater funds to determine the fiscal stability of the funds. The fund reviews were presented to the City Council and Utility Rate Advisory Committee.

The water and wastewater fund review s documented the capital and operating needs and outlined the rate adjustments needed to meet these needs at varying levels.

• Completed and submitted the City’s water system lead inventory in October 2024 as required by the US Environmental Protection Agency’s (EPA) Lead and Copper Rule Revisions (LCRR) including creating an interactive GIS map for our customers. The State Water Resources Control Board, Division of Drinking Water, accepted our inventory in February 2025.

• Completed an update of Americas Water Infrastructure Act risk and resilience assessment. Conducting an update every five years is a regulatory requirement.

Risk and resilience assessments and subsequent emergency response plan updates are used to identify and mitigate vulnerabilities, ensuring the safe and reliable delivery of drinking water.

• Completed and submitted the C ombined Sewer System (CSS) Report of Waste Discharge, Water Quality Assessment, and 2024 Long-Term Control Plan Update to the California Regional Water Quality Control Board in September 2024 as required by our CSS.

• Filed City protest to Delta Conveyance Project (tunnels), reached consensus on significant provisions in Water Forum 2.0 Agreement, successfully included language in Proposition 4 ballot measure that would favor DOU projects.

DEPARTMENT EFFICIENCIES
• In 2025 DOU will take over the management of the cross-connection tracking and reporting function from Sacramento County. The Cross Connection program team is importing data for a new public facing tracking and reporting software interface allowing private backflow device owners and testers to purchase tester tags. This creates an efficient means to improve follow up communication with private device owners and best supports the City’s responsibility to ensure that backflow devices are tested annually to ensure safety of water quality. DOU also updated City codes for cross-connection control standards and discontinuance of water service for violation of cross-connection control standards.

• Asset Management (AM) Program continues to support long- term DOU efficiencies and the AM Strategic Plan. An asset management framework document was prepared to describe data, analyses, reporting, and decision- 333
FY2025/26 Proposed Budget

making to mitigate risk and optimize the cost of managing water assets. This framework was used to initiate development of an asset management plan for water reservoirs and will act as a template for use with other DOU asset types. A failure risk model was developed and implemented for one wastewater force main and is a tool available for future pressurized pipe risk assessments. Additional data-management initiatives include the following: review and update of select drainage system asset inventories, revi ew and update of water treatment plant asset inventories, and analysis of asset attributes and data schema in support of future GIS Utility Network implementation.

• The City Council approved an amendment to the DOU d esignated reserve fund policy. This resulted in a release of funds from the restricted rate stabilization reserves for the water and wastewater funds and increased the capital reserve for water by $8.4 million and wastewater by $2.2 million.

• Completed automation of the routing sequence for meter readers by plotting all meter location sequences using GIS mapping instead of paper plots and maps.

This improves and reduces data upload time from a manual weekly process to a one-day process.

OBJECTIVES FOR FY 2025/26
• Deliver the FY2025/26 CIP water, wastewater, and drainage infrastructure programs on schedule and within budget.

• Work with the auditor’s office to complete an energy audit. The audit will evaluate the feasibility of DOU operations moving to 100% electric. This will include a cost- benefit analysis of DOU’s solar power purchase agreements, evaluating use of solar shares, cost-benefit analysis of participating in SMUD’s automated demand response program, and review of the impacts of fleet electrification on department operations and emergency responses.

• Support the auditor’s office in their independent financial review of the Storm Drainage Fund (6011) and the Storm Drainage Property Fee Fund (6021).

• Work with the selected rate consultant to develop a cost -of-service analysis, strategic communication plan and long- term funding plan for the water and wastewater funds that will support the FY2027/28 planned rate adjustments.

• Complete implementation of $7 million grant funded groundwater projects no later than December 31, 2025. The funds will be used towards construction of capacity enhancements of existing wells which will allow for groundwater production during drier hydrologic years.

334
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Business Services Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service
Quality Assurance program.

Water (7,528) 7,538 -
Business Services Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service
Quality Assurance program.

Wastewater 1,313 (1,302) -
Business Services Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service
Quality Assurance program.

Recycling and
Solid Waste
4,552 (4,515) -
Business Services Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service
Quality Assurance program.

Storm Drainage 1,313 (1,302) -
Business Services Delete one position (1.0 FTE - Customer Service Representative) and add one position (1.0 FTE - Customer Service Specialist) for the Business Services Division. This position will support the additional duties related to Control 1 Dispatching Operations and the Customer Service
Quality Assurance program.

Storm Drainage
Property Fee
350 (347) -
Engineering & Water
Resources
Add one position (1.0 FTE - Engineering Technician III) for the Engineering and Water Resources Division. This
position will provide resources to support implementation of the expanded Storm Drainage Capital Improvement
Program (CIP) and will support the Water, Wastewater,
and Private Development projects.

Storm Drainage (222,066) 119,028 1.00
Engineering & Water
Resources
Add one position (1.0 FTE - Construction Inspector II) and a Ford Maverick for the Engineering and Water Resources
Division. This position will provide resources to provide construction inspection services for expanding Water,
Wastewater, and Storm Drainage CIPs.

Water (238,377) 173,706 1.00
Engineering & Water
Resources
Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Water (1,998) 2,034 -
Engineering & Water
Resources
Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Wastewater 1,042 (1,026) -
Engineering & Water
Resources
Delete one position (1.0 FTE - Senior Maintenance Worker) and add one position (1.0 FTE - General Repair Worker) for the Engineering and Water Resources Division. The
classification for the General Repair Worker more closely aligns with the duties required in the Logistics Tool Room as compared to the Senior Maintenance Worker.

Storm Drainage 955 (941) -
335
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Office of the Director Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Water (18,648) 44,399 -
Office of the Director Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Wastewater 7,992 969 -
Office of the Director Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage 23,462 (15,873) -
Office of the Director Delete one position (1.0 FTE - Program Manager) and add one position (1.0 FTE - Government Affairs Manager) in the Office of the Director Government Affairs Section. The
Government Affairs Program is expanding to include
Sustainability, Security and Emergency Preparedness, and Department of Utilities (DOU) Department Support
Programs.

Storm Drainage
Property Fee
(12,806) 17,165 -
Wastewater & Drainage Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Water (57,256) 41,398 1.00
Wastewater & Drainage Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Wastewater 33,081 - -
Wastewater & Drainage Add one position (1.0 FTE - Instrument Technician II) and a Ford Maverick Crew Hybrid vehicle for the Wastewater and Drainage OandM Division. This position will provide
resources for the implementation of new software/hardware systems for the DOU Security Master Plan.

Storm Drainage 24,175 - -
Wastewater & Drainage Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance OandM Leadworkers); and add two positions
(2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

General Fund (49,278) - -
Wastewater & Drainage Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance OandM Leadworkers); and add two positions
(2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Water 136,634 (223,990) (2.00)
336
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Department Budget Summary

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Wastewater & Drainage Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance OandM Leadworkers); and add two positions
(2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Wastewater (44,798) - -
Wastewater & Drainage Delete two positions (2.0 FTE - Utilities Locator) and add two positions (2.0 FTE - Utilities Operations and
Maintenance OandM Leadworkers); and add two positions
(2.0 Utilities OandM Serviceworkers) for the Wastewater and Drainage OandM Division's Homeless Encampment
Program. Current FTE in the division are used for
encampment clean up, which reduces the team's ability to maintain other regulatory requirements, citizen and council requests, and other underground infrastructure needs.

Storm Drainage (500,059) 501,820 4.00
Wastewater & Drainage Add three positions (1.0 FTE - Utilities O and M Leadworker,

1.0 FTE - Utilities O and M Serviceworker, and 1.0 FTE
Administrative Technician) with a Ford F-250 Supercab and Vermeer Tow Trailer for the Wastewater and Drainage O
and M Division . These new positions will support the Trash Capture Program as a result of the Storm Drainage Capital Improvement Program.

Storm Drainage (331,720) 361,230 3.00
Wastewater & Drainage Add three positions (1.0 FTE - Utilities O and M Leadworker,

Storm Drainage
Property Fee
- 203,000 -
Total Change (1,249,665) 1,222,991 8.00
Change
Utilities FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended Employee Services $ 70,773,928 $ 77,264,711 $ 90,434,679 $ 91,134,312 $ 96,311,300 $ 5,176,988 Other Services and Supplies 38,864,297 41,899,334 48,646,003 48,610,964 52,028,387 3,417,423 City Property 2,250,779 1,741,902 2,213,953 2,224,953 2,051,493 (173,460) Multi-Year Operating Projects 3,791 - 11,043,308 8,297,151 16,619,407 8,322,256 City Debt Service - 18,396 - - - -
Transfers (586,473) (1,010,879) - - - -
Labor and Supply Offset 6,372,813 7,666,743 5,435,426 4,161,860 1,913,380 (2,248,480) Operating Transfers 23,750,646 26,141,786 25,675,900 25,675,900 25,661,000 (14,900) Total $141,429,781 $153,721,994 $183,449,269 $180,105,140 $194,584,967 $ 14,479,827 Change
FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Ap proved Amended Proposed Proposed/Amended General Fund $ 79,642 $ 67,203 $ 79,410 $ 79,410 - $ ( 79,410) Northside Subdiv Maint Dist - 8,000 8,000 8,000 8,000 - Neighborhood Water Quality Dist - - 3,000 3,000 3,000 - Willow creek Assmnt Md 25,900 19,537 20,774 20,774 20,774 - 337
FY2025/26 Proposed Budget
Department Budget Summary (continued)
D
ivision Budget Summary
S
taffing Levels
Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended N Natomas Lands CFD 3 258,957 223,892 300,000 300,000 300,000 - Landscaping and Lighting 64,837 83,337 98,000 98,000 98,000 - Tow nship 9 CFD No. 2012-06 - 317 9,000 9,000 9,000 -
Parkebridge CFD 2014-07 - - 10,000 10,000 10,000 -
SacMaintCFD2014-04 Annex Areas - - 36,500 36,500 36,500 - SacMaintCFD2014-04 Area 01 - - 298,120 298,120 298,120 - Golf 5,694 4,541 8,550 8,550 - (8,550)
Water Development Fees - 476 - - - -
Parking 1,906 1,993 1,359 1,359 - (1,359)
Water 74,934,026 79,334,552 94,939,711 93,871,522 97,993,975 4,122,453 Wastew ater 28,994,642 31,659,788 36,335,895 35,243,287 37,468,713 2,225,426 Recycling and Solid Waste 2,999,667 3,143,300 3,465,053 3,465,053 3,720,327 255,274 Community Center 4,983 4,983 4,983 4,983 - (4,983)
Storm Drainage 34,031,131 35,819,425 41,245,511 39,722,179 45,603,727 5,881,548 Storm Drainage Property Fee 11,666 3,332,091 5,527,109 5,867,109 7,423,713 1,556,604 Fleet Management 16,729 13,824 - - - -
Cty/Cnty Office-Water Planning - - 384,513 384,513 751,842 367,329 Habitat Management Element - 4,735 673,781 673,781 839,276 165,495 Total $141,429,781 $153,721,994 $183,449,269 $180,105,140 $194,584,967 $ 14,479,827 Change
Utilities FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Business Services Division $ 9,054,326 $ 9,765,909 $ 10,506,991 $ 10,452,804 $ 11,549,149 $ 1, 096,345 Engineering & Water Resources Division 7,894,696 8,712,228 11,811,941 11,094,013 10,884,301 (209,712) Office of the Director 49,941,782 53,011,548 69,845,751 69,472,294 72,362,795 2,890,501 Wastew ater & Drainage Ops & Maint Division 40,075,146 44,161,128 49,254,452 47,497,710 54,286,712 6,789,002 Water Operations & Maintenance Division 34,463,830 38,071,181 42,030,134 41,588,319 45,502,010 3,913,691 Total $141,429,781 $153,721,994 $183,449,269 $180,105,140 $194,584,967 $ 14,479,827 Change
Utilities FY2022/23 FY2023/24 FY2024/ 25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals App roved Amended Proposed Proposed/Amended Business Services Division 67.00 68.00 70.00 70.00 70. 00 - Engineering & Water Resources Division 77.72 83.00 83.00 88.00 91. 00 3.00 Office of the Director 32.18 34.18 42.18 42.18 41. 18 (1.00) Wastew ater & Drainage Ops & Maint Division 223.00 223.00 223.00 228.00 234. 00 6.00 Water Operations & Maintenance Division 173.00 174.00 171.00 171.00 171. 00 - Total 572.90 582.18 589.18 599.18 607. 18 8.00
338
FY2025/26 Proposed Budget

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 the 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.

The 3:00 minutes ASA is a lower tier (25th percentile) industry standard for combined utilities as documented in the 2017 American 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 indicator to measure effectiveness of the Department’s water conservation outreach and enforcement efforts. This percentage reduction is compared to our 20% by 2020 gallons per capita per day target as mandated by SBX7-7.

Operations & Maintenance Division

The number of sewage spills is measured to ensure regulatory compliance and to gauge the effectiveness of operational activit ies 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 sewage spills from the separated system.

FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals Estimate Target
City Manager Goal = 3:00 minutes or less 8:23 2:02 1:50 2:26 3:00 FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
% w ater conservation achieved (year-over-year) 33% 38% 35% 25% 30% FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals E stimate Target
# of sew age spills 3.00 per
100

3.00 per
100

4.15 per
100

2.50 per
100

2.50 per 100
miles
339
FY2025/26 Proposed Budget

340
FY2025/26 Proposed Budget

24 SECTION - 24
Youth, Parks, & Community
Enrichment
341
FY2025/26 Proposed Budget

342
FY2025/26 Proposed Budget

Youth, Parks, & Community Enrichment
To empower our youth, strengthen neighborhoods, and provide life- enriching programs for a beautiful livable community.

The City’s Youth, Parks, & Community Enrichment (YPCE) Department provides residents and visitors with beautiful parks and enriching programs to create a thriving community with healthy, strong, and cohesive neighborhoods. Program development and service delivery for the Department is guided by the following primary themes:
empowering and enriching Sacramento youth, protecting the City's green infrastructure, and optimizing the experience of living through people, parks, and programs.

Department services are structured as listed below.

• Administration: Responsible for department -wide support of fiscal management, human resources,
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 Community
Enrichment Commission and th e Ann Land &
Bertha Henschel Commission.
• All Ages
Recreation
Programming:

Responsible for citywide programs, and services
that navigate critical pathways for youth
development, and support lifelong recreation
and learning. Program areas support people of
all ages and abilities, civic engagement,
expanded learning, youth and adult enrichment
and sports programs, older adult services.
343
FY2025/26 Proposed Budget

• Aquatics and
Workforce
Development

• Community Centers
and Permitting:

Responsible for 17 city pools including the
regional North Natomas Aquatics C omplex,
Camp Sacramento along with YPCE workforce
development programs that provide work-based
opportunities for youth.

Responsible for a wide range of facilities that
support safe space, community livability, and a
high quality of life for all of Sacramento. This
includes 15 City-operated Community Centers
and Clubhouses, along with citywide permitting
and special events . Provides accessibility to
recreation, leisure enrichment and community
resources for all ages, including youth, teens,
active adults, and senior programs.
• Community
Enrichment

• Park Maintenance:

Currently, Recreation Administration is the only
department that resides in Community
Enrichment Division which will move under the
Administration Division for the FY2025/26
Approved Budget . The responsibilities of
Recreation Administration are similar to those
outlined in Administration.

Responsible for daily maintenance of 237 parks,
parkways, bike trails, and open space areas
spanning over 4,360 acres. Responsibilities
include maintenance of turf, landscape,
structures, and park amenities citywide. Includes
maintenance and operation of t he Old City
Cemetery, a State historic landmark that offers
tours and events thought the year
• Park Planning &
Development
Services:

Responsible for park planning, parkland
acquisition, park site amenity planning, policy
implementation, asset management and the
design and development of new and renovations
of existing neighborhoods, community, regional
parks and parkways.

• Park Rangers: Responsible for the public safety, service, and preservation of 237 parks , bike trails, aquatics
facilities, community centers and open space,
spanning across 4,360 acres and provide
support to the Incident Management team in
citywide response to homelessness.
344
FY2025/26 Proposed Budget

• Youth Development
Administration
Responsible for refining, developing, and promoting
the City’s overall strategic vision to achieve citywide youth development goals in accordance with the
Youth Development Plan, along with the
implementation of The Sacramento Children’s Fund
(Measure L)

PROGRAMS/SERVICE HIGHLIGHTS
• Workforce Development unit provides work -based learning programs and paid work experiences for youth ages 10- 18, incorporating youth development strategies into stipend based and paid work experience opportunities. More than 800 youth registered for the 22 cohorts of stipend- based programs at community centers throughout the city. Provided employment opportunities for 300 youth, completing 30 thousand hours of work at various parks, community centers, local businesses and schools. This accounts for over $1.1M dollars in direct yout h investment.
• The Expanded Learning section continued to partner with Robla School District, Twin Rivers Unified School District and Natomas Unified School District to receive Expanded Learning Opportunity Program funding to support increased participation in afterschool programs and to provide out of school time camps. The additional funding and partnerships will serve almost 1,000 students in the 2024/25 school year.

• The Aquatics section opened 11 neighborhood pools and four standalone wading pools for the 2024 summer season, while also operating the 10-month regional North Natomas Aquatics Complex and year-round community center. Core service program participation increased and included the following: Recreation swim provided a safe place to swim for over 98,000 visitors; over 650 aquatic classes were offered that served over 3,800 registrations in programs such as swim lessons, and basic water safety classes for drowning prevention; aquacise and lap swimming provided health and wellness opportunities to over 18,000 visitors to City run pools. Over $45,0000 in swim safe and lifeguard training scholarships were awarded to youth with financial need to participate in aquatics programs.

Additionally, the Aquatics section hosted several special events, including a floating pumpkin patch, an underwater egg hunt, and doggie dip days at City Pools.

The North Natomas Community Center hosted 89 private facility rentals for events including non-profit fundraisers, community fairs, birthday parties, quinquennia’s , wedding receptions, high school proms, and celebrations of life.

• Older Adult Services (OAS) provided respite for 143 family caregivers through the Triple-R Adult Day Program with approximately 9,100 units of service. Financial support to allow respite for family caregivers was provided to 33 % of the participants in the Triple- R program. OAS staff answered 9,872 calls or visits for Resource and Referral services at the Hart Senior Center , gave out over 8,000 345
FY2025/26 Proposed Budget

Meals on Wheels meals and delivered 58,680 units of service with in-person and virtual activities. New programs this year include intergenerational programming, grief support classes and the Hart Center Parking Permit program.

• Community Centers provided programming opportunities and access to safe space for over 20,798 youth and teen visits through in- person afterschool and summer camps, Hot Spots Remix, and Recreation Explorer Camp (R.E.C.), serving youth ages 3- 5 in a play -based preschool program. Centers increased program offerings for older adults across the city, s erving 13, 114 meals in partnership with Meals on Wheels. Centers had over 34,000 senior visits and 31,000 fitness room visits.

• The Reservations office issued over 700 youth and adult sports field permits with over $4,300 waived through the sports field fee waiver program, and over 3,000 picnic reservation permits. Community Centers supported over $ 220,000 in fee waivers for community-based organizations to provide programming that supports youth, families, and seniors. Organizations include Senior Link, Agency on Aging, Dignity Health, Project Alpha and more.

• Park Planning and Development Services completed 23 park projects across the city and currently has 66 active park projects with an estimated budget of $39M.

YPCE Park Planning team has also completed over $24M In deferred maintenance projects sin ce FY 2019/20. Improvements include accessibility improvements, court resurfacing projects , playground replacements, restroom repairs and replacements. Recent deferred maintenance projects include Airport Little League Field Improvements , Chorley and Danny Nunn Park playground replacements, Ninos Site furnishings and soccer field renovations, Sport Court resurfacing at Woodlake, Ninos, and Glenbrook Parks.

• The Youth Development Administration team has supported $14M in grant programs and initiatives since FY2023/24, with over 80% being funded by Measure U. These grants support community based organizations and city -led programming in addressing the priorities of youth safety, violence prevention, workforce development, child- care and economic development in under resourced communities.

• In FY 2024/25, the Park Maintenance Division assumed maintenance responsibilities for seven new parkland facilities to include: Fong Ranch Park, Robert T. Matsui Waterfront Park, Westshore Park, Vine Park, Del Rio Trail , Oakbrook Community Garden, and Wood Park Community Garden.

• Adopted the Parks Plan 2040 on August 20, 2024, and began implementation of the key directions identified in the plan.

346
FY2025/26 Proposed Budget

DEPARTMENT EFFICIENCIES

• Park Planning and Development continues to engage with communities and pursue grant funding to supplement City funding as a mechanism to further address deferred maintenance.
• Community Centers continue serving residents across the city, providing critical community resources, programs, services and expanding operation and front counter operations, focused on quality and streamlined registrations. Centers also continue to provide emergency response support through activation of clean air, warming and cooling centers.
• The Reservations Office continues to improve the sports field allocation process.

Guidelines are posted on department website as “Athletic Field Use and Allocation Guidelines”. The purpose of the document is to outline the process and procedures for the scheduling of long term and year around sports and occasional or drop- in sports.
• The Park R anger team plays a key role in supporting the city’s Incident Management Team and rapid response efforts to address the impact of homelessness in our parks, responding to over 3,000 calls last year. Park Rangers have also implemented a conversion to Salesforce data collection software program, allowing Rangers to respond to over 4,000 311 calls for service last year. • Park Maintenance utilized nearly 30,000 volunteer hours in our parks in 2024, with a comparable wage value of over $1 million dollars. This is an enhancement to standard maintenance operations across all city parks.
• YPCE launched the updated Scholarship Program (restructured the Sports Field Fee Waiver/Reduction program to the Youth Program Scholarship Fund). The Youth Program Scholarship Fund now provides financial assistance to youth participants and organizations that qualify to enroll in a variety of recreation programs, reduced sports field fees and community center rental fees. • Streamlined roles and responsibilities within the administrative team to enhance workflow efficiency, ensuring consistent and high-quality customer service across the department. Implement ed clear accountability, cross -training, and standardized processes to improve responsiveness and service delivery.

OBJECTIVES FOR FY2025/26

• Our department operations continue to support the goals of creating pathways for youth development, quality parkland and recreation facilities, lifelong recreation and learning, and community livability and strong neighborhoods, and excellence in our service to our Sacramento community.

347
FY2025/26 Proposed Budget

• The Youth Development Administration team will continue Sacramento Children’s Fund (Measure L) implementation. This work includes contract awards, annual report development, program management, and fiscal oversight. • Continue to market , inform and assist community with accessing programs that remove financial barriers to participation such as the Youth Scholarship Program Scholarship and other scholarship and fee waiver and reduction programs, and monitor effectiveness and accessibility.
• Complete the Southside pool resurfacing and repair project to be able to open and operate during the summer of 2025 season and offer recreational swimming, swim lessons, and lap swimming.
• Explore funding options for additional stand-alone wading pool conversions to splash pads. Mama Marks splash pad will be open for the 2025 season. Design will begin on the Robertson Wading pool conversion this year. • Continue to strengthen YPCE VIP volunteer program and recruit volunteers across the department to enhance community efforts in park and program engagement and support.
• Continue to streamline evaluation services and performance measures departmentwide to reflect core services through a diversity and equity lens. • Continue to address deferred maintenance projects citywide, and recruit, hire and train staff to support all YPCE programs and operations.

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Administration and Park
Rangers
Discontinue Golf Subsidy. Subsidy is no longer necessary for vendor to continue maintenance services at current
levels.

Measure U (250,000) - -
Administration and Park
Rangers
Discontinue Golf Subsidy. Subsidy is no longer necessary for vendor to continue maintenance services at current
levels.

Golf Fund - - - Administration and Park
Rangers
Delete one position (1.0 FTE - Staff Assistant) in the Fiscal Management Division. Staff Assistant position no longer needed after administrative team restructure.

Measure U - (75,333) (1.00) All Ages Recreation
Programming
Delete seven positions (0.90 FTE - Program Coordinator
and six 0.38 FTE - Recreation Aide) from Expanded
Learning Division.

Measure U - (156,968) (3.18) All Ages Recreation
Programming
Delete three positions (two 0.50 FTE - Program Leader and

0.60 FTE - Program Leader) in Expanded Learning Division.

Measure U - (95,340) (1.60) All Ages Recreation
Programming
Increase Daily Program Fee Rate by 5% for Triple R and
Club Refresh Programs in Older Adult Services Division.

This fee increase will bring cost recovery to approximately 80%. Scholarships are available for Triple R Program.

General Fund (40,000) 40,000 -
348
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
All Ages Recreation
Programming
Increase Daily Program Fee Rate by 5% for Triple R and
Club Refresh Programs in Older Adult Services Division.

This fee increase will bring cost recovery to approximately 80%. Scholarships are available for Triple R Program.

Measure U - (40,000) -
All Ages Recreation
Programming
Delete one position (1.0 FTE - Program Coordinator)
Access Leisure Division.

Measure U - (79,901) (1.00) All Ages Recreation
Programming
Delete six positions (six 0.15 FTE - Recreation Leader
(Adpt Rec)) and add one position (0.47 FTE Recreation
Leader (Adpt Rec)) to realign non-career FTEs to fit
program needs in Access Leisure Division.

Measure U - (16,509) (0.43) All Ages Recreation
Programming
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

General Fund (13,884) 13,884 -
All Ages Recreation
Programming
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

Measure U - (13,884) -
All Ages Recreation
Programming
Delete three positions (0.15 FTE - Recreation Aide, 0.22 FTE - Recreation Aide, and 0.40 FTE - Recreation Aide) in the Community Recreation Division. Reduce internal hours of operation at 28th and B Skate and Urban Art Park.

Measure U - (29,091) (0.77) All Ages Recreation
Programming
Delete two positions (0.25 FTE - Recreation Aide and 0.40 FTE - Recreation Aide) in the Community Recreation
Division. Discontinue internally operated 28th and B Skate and Urban Art Park open hours and utilize contracted
instructors for all programming.

Measure U - (28,158) (0.65) All Ages Recreation
Programming
Decrease funding for Service and Supply Budget in Older Adults Services by reducing cost of Allied Security Services at Hart Senior Center.

Measure U - (13,815) -
All Ages Recreation
Programming
Change funding source for forty-five positions from Measure U Fund to START Fund. Move positions funded in
Expanded Learning Division to START Division. Positions support the Expanded Learning Opportunities Program
(ELOP) expansion of the After School Safety and Education Program operated by the START Division.

Measure U 571,290 (813,075) (20.70)
All Ages Recreation
Programming
Change funding source for forty-five positions from Measure U Fund to START Fund. Move positions funded in
Expanded Learning Division to START Division. Positions support the Expanded Learning Opportunities Program
(ELOP) expansion of the After School Safety and Education Program operated by the START Division.

START (805,245) 805,245 20.70
All Ages Recreation
Programming
Delete one position (0.12 FTE - Recreation Aide) and add one position (0.10 FTE - Senior Recreation Aide) to realign non-career FTE to fit program needs for the Summer Oasis summer camp in Expanded Learning Division.

Measure U - (74) (0.02) All Ages Recreation
Programming
Delete ten positions (4.0 FTE - Senior Recreation Aides) and add twelve Positions (0.35 FTE - Recreation Aide and eleven 0.40 FTE - Recreation Aides) in the 4th R Division. 4th R Program - 18,457 0.75 Aquatics and Workforce
Development
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

General Fund (309,000) 309,000 -
Aquatics and Workforce
Development
Increase revenue budgets in various divisions within the department due to planned and approved fee increases.

Measure U - (309,000) -
Aquatics and Workforce
Development
Add one position (0.40 FTE - Utility Worker) and decrease funding for service and supplies in the Aquatics Division by absorbing North Natomas Aquatic Complex pool
maintenance duties previously contracted out and reduce the scope of contracted custodial services.

Measure U - (113,824) 0.40 Aquatics and Workforce
Development
Delete four positions (two 0.80 FTE - Program Coordinator,

0.22 FTE - Recreation Aide, and 0.46 FTE - Recreation
Aide) and add one position (1.0 FTE - Program Coordinator) in the Youth Workforce Development Division. This will
reduce and consolidate Stipend Program staffing.

Measure U - (77,355) (1.28) 349
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Aquatics and Workforce
Development
Delete six positions (four 0.32 FTE - Youth Aide, 0.42 FTE - Youth Aide, and 0.48 FTE - Youth Aide) in Youth
Employment Division. This change will reduce number of
available opportunities for youth stipend based programs.

Measure U - (80,996) (2.18) Aquatics and Workforce
Development
Delete eight positions (two 0.40 FTE - Graduate Student Trainee and six 0.40 FTE - Student Trainee) and add one position (0.40 FTE - Senior Recreation Aide). This reduction will consolidate the Youth Workforce Development
Division.

Measure U - (104,324) (2.80) Community Centers &
Permitting
Delete thirteen positions (ten 0.80 FTE - Program Leader, two 1.0 FTE - Program Leader, 0.30 FTE - Recreation Aide, three 0.47 FTE - Recreation Aide, and six 0.20 FTE -
Recreation Aide) in the Community Center Division.

Measure U - (307,171) (5.71) Community Centers &
Permitting
Delete two positions (two 0.60 FTE - Customer Service
Assistant) and add one position (1.0 FTE - Program
Coordinator). The minimal increase will move the program slightly closer to cost recovery for supplies.

Measure U - (9,490) (0.20) Community Centers &
Permitting
Delete one position (0.80 FTE - Custodian II) in Community Center Division.

Measure U - (57,642) (0.80) Community Centers &
Permitting
Delete one position (1.0 FTE - Senior Accounting
Technician) and add one position (1.0 FTE - Accounting
Technician). Realign administrative team to accommodate internal restructuring.

Measure U - (94,157) (1.00) Community Centers &
Permitting
Delete one position (1.0 FTE - Program Leader) and add
two positions (1.0 FTE - Program Leader) to realign career staff to fit program and operational needs in Community Center Division.

Measure U - (9,301) -
Community Enrichment Delete one position (1.0 FTE - Senior Accounting Technician) and add one position (1.0 FTE - Accounting
Technician). Realign administrative team to accommodate internal restructuring.

Measure U - 86,535 1.00 Park Maintenance and
Planning
Remove 10 Outdated Fleet Equipment from YPCE’s
FY2025/26 Fleet Replacement Budget
Measure U - (1,494,551) -
Park Maintenance and
Planning
Add 16 New Grounds Maintenance Equipment Measure U - 780,600 - Park Maintenance and
Planning
Add Two Specialized Fire Prevention and Renovation
Equipment
Measure U - 464,677 -
Park Maintenance and
Planning
Add Three Utility and Transport Equipment Measure U - 117,265 - Park Maintenance and
Planning
Delete ten positions (10.0 FTE - Park Maintenance Worker) in the Park Maintenance Division. These are hard to fill positions and do not impact current maintenance service levels.

Measure U - (684,588) (10.00) Park Maintenance and
Planning
Delete 12 positions (twelve 0.45 FTE - Utility Worker) in the Park Maintenance Division.

Measure U - (205,884) (5.40) Park Maintenance and
Planning
Delete one position (1.0 FTE - Program Specialist) and add one position (1.0 FTE - Park Maintenance Superintendent) in the Parks Maintenance Division to realign position to meet operational needs in City Cemetery Division and Park Operation Division.

Measure U - 1,105 -
Total Change (846,839) (2,273,663) (35.87)
350
FY2025/26 Proposed Budget

Department Budget Summary

Division Budget Summary

Change
Youth, Parks, and Community E nrichment FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended Employee Services $ 38,740,212 $ 43,068,954 $ 45,775,945 $ 47,055,945 $ 46,177,531 $ (878,414) Other Services and Supplies 21,802,005 21,149,434 21,250,683 21,017,077 21,335,260 318,183 City Property 177,358 620,133 276,490 276,490 276,490 - Multi-Year Operating Projects - - 1,873,536 1,075,036 1,469,814 394,778 City Debt Service 56,556 384,659 - - - -
Transfers (146,803) 326,881 - - - -
Labor and Supply Offset (2,170,445) (3,105,221) (2, 088,984) (3,178,254) (3,291,548) (113,294) Operating Transfers (3,976,175) (1,069,748) - - - -
Total $ 54,482,707 $ 61,375,092 $ 67,087,670 $ 66,246,294 $ 65,967,548 $ (278,746) Change
FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Ap proved Amended Proposed Proposed/Amended General Fund $ 3,231,429 $ 4,210,277 $ 5,744,261 $ 5,447,261 $ 6,198,437 $ 751,176 Laguna Creek Maint Dist 150,000 101,000 129,707 129,707 120,000 (9,707) Neighborhood Water Quality Dist 30,000 30,000 31,101 31,101 57,000 25,899 N Natomas Lands CFD 3 1,644,743 1,805,031 1,890,000 1,656,394 2,055,000 398,606 Landscaping and Lighting 4,200,000 4,300,000 4,440,000 4,440,000 4,558,500 118,500 Neighborhood Park Maint CFD 1,882,000 1,982,000 2,232,000 2,232,000 2,400,000 168,000 Natomas Crossing CFD 2013-01 - - - - 27,600 27,600
NW Land Park CFD 2013-02 132,068 136,654 247,022 247,022 252,437 5,415 Tow nship 9 CFD No. 2012-06 175 283 2,000 2,000 1,000 ( 1,000) Railyards Maint CFD No 2014-04 - - 7,500 7,500 1,500 ( 6,000) Parkebridge CFD 2014-07 - 28,905 57,000 57,000 57,000 - SacMaintCFD2014-04 Annex Areas - - 1,200 1,200 - (1,200) Sac Services CFD 2018-05 38,539 99,334 150,000 150,000 200,000 50,000 Measure U 39,945,066 42,319,119 45,556,462 43,965,692 42,219,087 (1,746,605) STA RT 870,586 649,151 386,202 386,202 550,636 164,434
Land Park 89,000 89,000 89,000 89,000 89,000 -
Quimby Act 9,886 3,949 10,000 10,000 10,000 -
Golf (97,160) (103,650) (78,368) (78,368) 104,370 182,738 Disaster Relief Act - 4,594 - - - -
Park Development (3,746,090) (215,531) 823,641 823, 641 477,907 (345,734) 4th R Program 6,102,465 5,934,976 5,368,942 6,648,942 6,588,075 (60,867) Total $ 54,482,707 $ 61,375,092 $ 67,087,670 $ 66,246,294 $ 65,967,548 $ (278,746) Change
Youth, Parks, and Community E nrichment FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration & Park Rangers Division $ 3,253,388 $ 3,779,804 $ 3,789,236 $ 3,789,236 $ 5,785,331 $ 1,996,095 All Ages Recreation Programming 11,041,336 10,754,673 11,190,321 11,678,051 11,206,502 (471,549) Aquatics and Workforce Development 9,093,171 10,065,169 10,978,344 10,858,344 10,498,969 (359,375) Community Centers and Permitting 9,519,776 10,265,874 12,137,455 12,082,455 11,346,653 (735,802) Community Enrichment Division 1,624,109 1,988,211 1,895,097 1,895,097 1,290,550 (604,547) Youth Development Administration Division - 1,082,602 957,194 957,194 960,220 3,026 Park Maintenance & Planning Division 19,950,928 23,438,758 26,140,023 24,985,917 24,879,323 (106,594) Total $ 54,482,707 $ 61,375,092 $ 67,087,670 $ 66,246,294 $ 65,967,548 $ (278,746) 351
FY2025/26 Proposed Budget

Staffing Levels

MEASURE U

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

Change
Youth, Parks, and Community E nrichment FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Administration & Park Rangers Division 22.00 23.00 23.00 23.00 34.00 11.00 All Ages Recreation Programming 238.24 234.47 229.69 229.69 221.19 (8.50) Aquatics and Workforce Development 164.94 173.01 154.27 154.27 148.01 (6.26) Community Centers and Permitting 152.25 152.44 140.51 140.51 130.40 (10.11) Community Enrichment Division 9.00 11.00 10.00 10.00 6.00 (4.00) Youth Development Administration Division - 6.00 6.00 6.00 6.40 0.40 Park Maintenance & Planning Division 150.80 152.80 146.40 146.40 128.00 (18.40) Total 737.23 752.72 709.87 709.87 674.00 (35.87)
Funding Category Program Name FTE
FY2025/26
Proposed
Community Investment
MYOP Commission Stipends - 13,550
Fleet Ac
quisitions - 672,622
Operations Fiscal and Management Services 19.00 3,147,896 Historic City Cemetery 2.00 279,287
Older Adult Services 28.03 1,904,036
Park Operations Administration 113.00 14,242,522
Permitting and Events 6.74 667,009
Technology Service - 57,638
Public Safety - YPCE
Operations Park Rangers 15.00 2,127,898
Youth
MYOP Commission Stipends - 8,800
Fleet Acquisitions - 180,000
Mayor Council Economic Development Priorities - 300,000 YPCE Youth Program for Scholarship Fund - 200,000 Operations Access Leisure 8.05 512,010
Aquatics 78.70 4,798,421
Camp Sacramento 14.57 14,178
Community Centers 123.66 7,484,326
Community Recreation Services 11.74 536,933
Recreation Administration 6.00 1,290,549
Youth Development Administration 6.40 960,219
Youth Employment 54.74 2,794,062
Youth Expanded Learning 2.98 27,129
Grand Total 490.61 42,219,085$
352
FY2025/26 Proposed Budget

PERFORMANCE MEASURES
Parks Operations Division

Currently, the Park Maintenance Division maintains more than 3,439 acres of parkways, developed turf, landscape, recreation structures, and park amenities citywide. Services provided by this division include mowing, weeding, litter removal, playground 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 full- time equivalent Park Maintenance staff is generally assigned a service area. On average, a full-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.

Over 3000 volunteer hours are regularly provided by various groups, including Adopt -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. In FY24 the divsion transitioned from using 311 to track calls for service and implenmented new Salesforce software to more accurately track calls for service.

FY22 FY23 FY24 FY25 FY26
K ey Measure Actuals Actuals Actuals E stimate Target
Park maintenance cost per acre $6,446 $6,139 $6,058 $6,106 $6,150 FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Number of developed park acres maintained per FTE 24.31 19.55 23.71 30.08 30.50 FY22 FY23 FY24 FY 25 FY26
Key Measure Actuals Actuals A ctuals E stimate Target
Number of volunteer hours managed per developed
park acre

10.88 8.63 8.40 8.50 9.0
FY22 FY23 FY24 FY25 FY26
Key Measure Actuals Actuals Actuals E stimate Target
Number of safety calls responded to per Park Ranger 284 275 277 944 963 353
FY2025/26 Proposed Budget

354
FY2025/26 Proposed Budget

25 SECTION - 25
Citywide and Community Support
355
FY2025/26 Proposed Budget

356
FY2025/26 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. Below are the major expenditures budgeted in Citywide and Community Support (Citywide).

Employee Benefits and Insurance
• Employee Benefits ($5.2 million - $4.8 million in the General Fund and $0.5 million in the Measure U [MU] Fund):

o Employee leave payouts authorized by labor contracts; and o Vacation/sick leave termination payoffs;

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.

• Salary Savings (-$6.5 million – -$5.7 million in the General Fund and -$0.8 million in the MU Fund) – A salary saving factor of 1.1% has been added to Citywide. This is to recover the savings caused by vacancies and recruitment and will allow the City to incorporate it into other areas. A rolling three-year analysis was conducted on labor to determine the rate. The salary savings rate has decreased over the past several years due to the elimination of vacant positions. The rate may change in the future based on updated analysis and if any more positions are eliminated.

• General Liability & Auto Liability (GL&AL) ($47.5 million - $ 42.5 million in the General Fund and $5.0 million in the MU Fund) – The City contracts with Bickmore Risk Services (Bickmore) to estimate the annual budget needed to cover claim costs and expenses that will occur in the coming fiscal year and the program’s liability for outstanding claims. Bickmore utilizes historical City loss data to forecast the upcoming fiscal year’s cost of claims and expenses at various confidence levels. The City uses the recommended 80% confidence level when budgeting for claim costs and expenses. The General Fund contribution for GL&AL is budgeted in Citywide, while contributions from the other funds ($ 10.9 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 transferred employee retirement and healthcare benefits are included in the Citywide budget.

• Other Post-Employment Benefits (OPEB) ($11.6 million - $9.1 million in the General Fund) – The cost of retiree/beneficiary health (1,742 participants), dental (2,741 participants), vision (1,790 participants), and out-of-area (331 participants) insurance benefits as of June 30, 2023.
357
FY2025/26 Proposed Budget

• 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 ($2 78 million as of June 30, 2023). The balance in the CERBT was approximately $116.9 million as of April 17, 2024. The annual contribution for the OPEB Trust was eliminated in FY2021/22. Future funding to the Trust will continue to be transferred from year-end budgeted pension savings.

• Sacramento City Employees’ Retirement System ( SCERS) ($ 0.2 million - $ 0.1 million in the General Fund) – 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, 2023, the valuation of the fund will require additional contributions for the next four years. There were 739 participants (1 active) as of June 30, 2024.

• California Public Employees’ Retirement System ( CalPERS) ($182.5 million - $148.6 million in the General Fund and $ 10.8 million in the MU Fund) – Although CalPERS costs are not budgeted in Citywide , t his represents the City’s total contribution as well as the amounts negotiated for the employee paid portion of the employer cost ( -$3.8 million). Costs are budgeted in the managing department ’s budgets.

Citywide Maintenance Contracts and Utilities
• Information Technology Maintenance and Support Contracts ($5.6 million - $4.1 million in the General Fund and $0.3 million in the MU Fund) – Funds major contracts and support for the City’s human resources, financial and budgeting systems. The non -General Fund and non- MU Fund costs associated with these services are recovered through the cost allocation plan except for $0.9 million for computer software maintenance.

• Multi-tenant City -owned Buildings ($6.0 million in the General Fund) – C overs anticipated expenses associated with janitorial, security, utilities, and pest management services at various multi-tenant City-owned buildings (e.g., City Hall complex). The costs for non- General Fund operations are recovered through the City’s cost allocation plan.

Sacramento County Charges and Assessments
Citywide includes $4.5 million in the General Fund for Sacramento County Charges and Assessments. State law authorizes counties to charge other local government entities for the cost of assessing and collecting property tax revenues, for property -related assessments including flood control, and for costs associated with county jail operations (jail booking fees). In addition, the City pays its fair share of property-based assessments for various improvement districts and taxes on property owned by the City but located outside of City boundaries.

358
FY2025/26 Proposed Budget

Multi-Year Operating Projects (MYOPs)
Citywide includes $ 9.6 million in MYOPs. Of the $ 9.6 million, $9.3 million is the City’s obligation to the Children’s Fund as required by Measure L. The General Fund is $ 0.3 million, and the MU Fund is $4.8 million. There are -$4.8 million in reductions from ARPA Fund, Innovation and Growth Fund, New Measure A Fund and Water Fund. The General Fund and MU fund projects support citywide operating activities such as the Sacramento Utility Rate Assistance (SURA) program, litigation, the Powerhouse Science Center, and library maintenance. All projects are detailed on Schedule 9. Additional funding for departmental MYOPs is included in the various department operating budgets. Funding for these programs is moved into specific projects after the budget is approved.

Administrative Contingency
The General Fund Administrative Contingency may be used throughout the year, in accordance with Sections 4, 5, and 6 of the Budget Resolution, to adjust budgets for unforeseen expenses. The Administrative Contingency is $2 million.

Office of Arts and Culture (OAC)
Citywide includes $0.4 million for the OAC, which pays for professional services and commission stipends.

Redevelopment Agency Successor Agency (RASA)
In response to AB 26 (2011) which eliminated all redevelopment agencies in California, the City became the recognized RASA effective February 1, 2012, for all non- housing functions and obligations. As RASA, the City is entitled to be reimbursed for administrative costs associated with managing the transfer of non-housing assets, legal concerns, cash and debt management, and other administrative obligations. Under AB 26, the administrative budget to pay for staff costs to perform RASA duties is limited to 3% of the property tax allocated to RASA. The City budgeted $200,000 in revenue for staff support provided by the City Attorney’s Office, Finance, and other departments.

Miscellaneous
• Elections ($550,000) – Funds the cost of regular and special elections, as well as increased costs associated with special ballot measures and petition verification.

• Litigation ($60,000) – Covers the administrative costs associated with litigation, used annually as necessary. This funding is in addition to the Citywide Litigation MYOP ($500,000) included in Schedule 9 which provides annual funding for external support for the City’s litigation efforts.

• Service Fees ($516,282) – Covers the costs associated with banking, instructional, and various legal service fees. It also includes the City’s portion of the CalPERS payment for obligations associated with the Human Rights /Fair Housing PERS commission.

• Accident Replacement Vehicles ($250,000) – Funds costs associated with fleet accident repairs and replacements.

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FY2025/26 Proposed Budget

• Membership, Licenses and Dues ($450,000)

Citywide Revenues
An in -depth review of FY2025 /26 citywide revenues and the five- year forecast are included in Section 6 – The Forecast.

• Major Tax Revenues – All discretionary tax revenues including property, sales, and Utility Users Tax are budgeted in Citywide . Additional detailed information and a breakdown of budgeted revenue is available in Schedule 6. The expenditure budget ($500,000) represents consultant contracts for providing sales tax and Utility Users Tax revenue estimates.

Community Support
The City provides administrative and financial support to various local and regional operations or partners.

Property and Business Improvement Districts (PBIDs)
Citywide includes $18.5 million for PBIDs, which were created as a financing mechanism where property and business owners approve a special assessment to improve their commercial districts. The City currently collects and remits assessments for 18 different PBIDs throughout the City.

Visit Sacramento
Citywide includes $2.8 million in support for Visit Sacramento, comprised of $2.2 million from the 10% TOT that is deposited in the Community Center Fund and $0.6 million from the MU Fund. The $2.2 million from the Community Center Fund is for general operating support of Visit Sacramento per City Code 3.28, which has required the City to increase its contribution with inflation annually since FY1980/81. The $0.6 million from the MU Fund is for discretionary support including an annual reimbursement for VRO assessments.

Downtown Sacramento Partnership (DSP)
Citywide includes $ 375,000 for DSP to fund programs and activities along the Old Sacramento waterfront and downtown area . Also, $150,000 is included to conduct cleaning and maintenance work in the J , K, and L corridors ( Clean and Safe Improvements in Central Business District Project).

Greater Sacramento Area Economic Council (GSEC)
Citywide includes an annual contribution of $ 208,163 to support work conducted at GSEC. Contribution cost based on the per capita rate of $0.40 and the estimated population of Sacramento (520,408).

Sacramento Public Library Authority (SPLA)
The City has 12 libraries located within the City boundaries which are operated by the SPLA under a joint powers authority. Citywide includes $24.6 million, which includes $10.3 million from Library Services Parcel Tax and $14.3 million from the MU Fund to 360
FY2025/26 Proposed Budget

fund library operations and to partially fund the construction of the North Sacramento library.

The library’s mission is to provide the residents of Sacramento the services they expect while focusing on community needs for reading, learning needs of our youngest residents, creating welcoming spaces and providing experiences that include Science, Technology, Engineering, and Mathematics (STEM) and Science, Technology, Engineering, the Arts, and Mathematics (STEAM) learning opportunities for the entire community as well as increasing equity for our most vulnerable populations.

In 2014 and 2016, voters in the City of Sacramento declared their support for the Sacramento Public Library by passing two parcel taxes, Measure B and Measure X, for Library services which provide d funding for the operation of the City libraries and to maintain and add services, staff and technology. Both measures include a Maintenance of Effort (MOE) provision that requires prior -year reductions to General Fund operating revenue to be restored if the City provides additional funding to its non- public safety programs. The City’s MOE is $7.6 million and is provided from General Fund contributions. Measure B and Measure L sunset on June 30, 2026, and June 30, 2027, respectively. On May 21, 2024, Council adopted Ordinance 202 4-0013 to consolidate and extend the existing parcel taxes, which was subject to approval of the voters.

Measure E was added to the Statewide Municipal Election, held on November 5 , 2024, and 74% of the voters voted for the measure. As a result, the Library Services Parcel Tax is projected to generate $10.3 million in FY2025/26.

As of FY2024/25, the City’s libraries require at least $2 million for essential capital improvements, primarily focused on exterior upgrades such as parking lot maintenance and ADA enhancements. Additional interior maintenance needs will be addressed in future years as funding becomes available. A substantial investment of over $33.6 million from both the City and the State is dedicated to enhancing Sacramento's library infrastructure. Through the State of California’s Building Forward: Library Infrastructure Grant Program, approximately $15.1 million in grants have been awarded, requiring a City match of around $7.6 million. In addition, the City has committed an extra $10.9 million to fully support these critical projects. This significant funding will support major improvements, including a complete remodel of the Martin Luther King Jr. (MLK) Library with a budget of $15.8 million, and the renovation of the former Sacramento News and Review Building to expand the North Sacramento – Hagginwood Library (NSHL), with an investment of $14.3 million. The remaining $3.5 million has been allocated for critical infrastructure upgrades at the Central Library, Del Paso Heights Library, and Belle Cooledge Library. The City of Sacramento remains committed to investing in the long- term enhancement of its library facilities. These efforts will address increasing construction, material, and furnishing costs while ensuring modern, inclusive, and accessible spaces that serve all residents.

City staff will continue to work with Library staff to identify opportunities to address the structural gap between revenues and expenditure needs.

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FY2025/26 Proposed Budget

General Information
The following information below is not included in the Citywide Budget but is detailed to provide additional information on portions of the City’s FY2025/26 Approved Budget.

Economic Uncertainty Reserve (EUR)
The EUR was established in FY1983/84 and on April 26, 2016, the Council revised the EUR Policy (included in the Financial Policies section) which established:
• A minimum reserve level of 10% of budgeted General Fund revenues; and • A goal of achieving and maintaining the value of two months of regular ongoing General Fund expenditures in the reserve.

On June 12, 2019, the EUR Policy was amended to include MU resources in determining the annual set aside amount necessary to maintain a minimum General Fund reserve level of 10%. Further, the policy includes a goal of achieving and maintaining the value of two months of regular ongoing General Fund expenditures in the reserve.

Due to the funding gap in FY2024/25, the FY2024/25 EUR transfer to the reserve at year- end was one of the reduction strategies. In addition, the City Council suspended approximately $3.3 million of the FY2023/24 EUR contribution to restore/fund various programs, provide scholarships and fee waivers to communities negatively impacted by fee increases, and decrease a parking violation fee. In lieu of contributing to the EUR in FY2025/26, approximately $4.2 million will be placed in a Federal Funding reserve to partially help the City if the federal government withholds or rescinds federal revenues.

Due to the various uses, the EUR balance is estimated to be $76.4 million on July 1, 2025, which is approximately 9.1% of budgeted FY2025/26 General Fund revenues and below the target by $7,745,121.

Other Sources and Uses
Other sources and uses in the governmental, enterprise, internal and other governmental funds total $21.7 million.

Beginning Fund Balances
Beginning fund balances of the governmental, enterprise, internal, and other governmental funds total $485.3 million which represent available resources from the FY2023/24 Annual Comprehensive F inancial Report (ACFR) and anticipated activity in FY2024/25. Beginning balance by fund is included in the Budget Schedules section (Schedules 2A-2C).

Ending Fund Balances
Projected ending fund balances of the governmental, enterprise, internal, and other governmental funds total $429.4 million. Ending balance by fund is included in the budget schedules section (Schedules 2A -2C). The available balance of enterprise, internal service funds, and other governmental funds (excluding the Innovation and Growth Fund) may only be used for the specific purpose of the individual fund.

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FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Citywide Support Increase on-going funding for incremental increases for annual software licenses, subscriptions, system
maintenance, and technical support increases that support existing citywide business and technology systems and
applications. Ongoing software maintenance, subscriptions, and technical support are crucial for ensuring that business systems function optimally and maintain high availability.

Various* - 93,429 -
Citywide Support Increase funding to pay the annual software license fee for LaborSoft case management software used by Labor
Relations Division in HR to ensure cases are tracked for management of case deadlines, reduction in manual work
by staff, and to provide data and analytical reporting.

Additionally, increase funding for the annual maintenance of AbsenceSoft software used by the Leave Administration Divisi
on in HR to reduce manual work of staff in the program
and help ensure employees receive notices timely and all leaves are tracked for compliance.

General Fund - 90,000 -
Citywide Support Change funding source for the New Year's Eve fireworks from General Fund to the Community Center Fund.

General Fund - (70,000) -
Citywide Support Change funding source for Visit Sacramento for the continual support of tourism recovery through event support and production from General Fund and Measure U Fund to the Community Center Fund.

Measure U - (500,000) -
Citywide Support Change funding source for Visit Sacramento for the continual support of tourism recovery through event support and production from General Fund and Measure U Fund to the Community Center Fund.

Community
Center
- 500,000 -
Citywide Support Liquidate one-time funding in the Community Investment Program (I02001200). Return unused dollars to fund
balance.

General Fund - (76,567) -
Citywide Support Liquidate one-time funding in the Thousand Strong Program (I01000300). Return unused dollars to fund
balance.

Measure U - (1,500,000) -
Citywide Support Liquidate one-time funding in the Sacramento Riverfront Program (I02180200). Return unused dollars to fund
balance.

General Fund - (10,800) -
Citywide Support Liquidate one-time funding in the Sacramento Zoo Relocation Study Project (I02002100). Return unused
dollars to fund balance.

General Fund - (35,118) -
Citywide Support Liquidate one-time funding in the Arts Education and Community Outreach Project (I17001100). Return unused
dollars to fund balance.

General Fund - (56,618) -
Citywide Support Liquidate one-time funding in the Commission Stipends Program (I04000100). Return unused dollars to fund
balance.

General Fund - (13,700) -
Citywide Support Liquidate one-time funding in the Commission Stipends Program (I04000100). Return unused dollars to fund
balance.

Measure U - (24,750) -
Citywide Support Liquidate one-time funding in the Commission Stipends Program (I04000100). Return unused dollars to fund
balance.

Water - (3,100) -
Citywide Support Liquidate one-time funding in the Commission Stipends Program (I04000100). Return unused dollars to fund
balance.

NMA Safety,
Streets, Ped, Bic
- (1,001) -
Citywide Support Liquidate one-time funding in the Creative Economy Pilot Project (I18000300). Return unused dollars to fund balance.

Innovation and
Growth
- (14,431) -
Citywide Support Liquidate one-time funding in the Economic Development Initiatives Project (I02181000). Return unused dollars to fund balance.

Measure U - (200,650) -
363
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Division Description Fund
Revenue/
Offset
Adjustment
Expenditure
Change
FTE
Change
Citywide Support Liquidate one-time funding in the City Manager Youth Programs Project (I80020800). Return unused dollars to
fund balance.

Measure U - (157,076) -
Citywide Support Liquidate one-time funding in the Arts and Creative Economy Program (I17609000). Return unused dollars to
fund balance.

ARPA
Reinvestment
Fund
- (1,250,000) -
Citywide Support Liquidate one-time funding in the Code Service Homeless Response Team Project (I21000500). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (7,875) -
Citywide Support Liquidate one-time funding in the Animal Services for the Homeless Response Team Project (I21008500). Return
unused dollars to fund balance.

ARPA
Reinvestment
Fund
- 8,869 -
Citywide Support Liquidate one-time funding in the Vaccine Outreach and Education Project (I02612050). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (12,248) -
Citywide Support Liquidate one-time funding in the Old Sacramento Improvements Project (I02612030). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (5) -
Citywide Support Liquidate one-time funding in the ARPA Small Business Support Program (I02612000) for cleaning along corridors, street alley closures and paving, and the City of Festivals grant. Retur
n unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (92,741) -
Citywide Support Liquidate one-time funding in the Northgate Economic Recovery Project (I02612080). Return unused dollars to
fund balance.

ARPA
Reinvestment
Fund
- (1) -
Citywide Support Liquidate one-time funding in the ARPA Gang Prevention and Intervention Project (I02000600). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (947) -
Citywide Support Liquidate one-time funding in the Business Compliance Unit Night Team Project (I21000400). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (291,963) -
Citywide Support Liquidate one-time funding in the Community Neighborhood Improvements Program (D01000000). Return
unused dollars to fund balance.

General Fund - (70,137) -
Citywide Support Liquidate one-time funding in the Community Neighborhood Funding Program (D01000500). Return
unused dollars to fund balance.

General Fund - (3,438) -
Citywide Support Liquidate one-time funding in the Broadway/Alhambra Navigation Center Project (C15001100). Return unused
dollars to fund balance.

Measure U - (4,737) -
Citywide Support Liquidate one-time funding in the Parking Facilities Development Program (V15710000). Return unused dollars
to fund balance.

ARPA
Reinvestment
Fund
- (7,501) -
Citywide Support Liquidate one-time funding in the Comprehensive Siting Plan Location Buildout Project (C15001500). Return
unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (106,093) -
Citywide Support Liquidate remaining available fund balance in the American Rescue Plan Act (ARPA) Reinvestment Fund and
return unused dollars to the General Fund.

General Fund (3,454,582) - -
Citywide Support Liquidate remaining available fund balance in the American Rescue Plan Act (ARPA) Reinvestment Fund and
return unused dollars to the General Fund.

ARPA
Reinvestment
Fund
3,454,582 - -
Citywide Support Liquidate one-time funding in the Public Records Staffing Project (I11002800). Return unused dollars to fund balance.

ARPA
Reinvestment
Fund
- (21,309) -
364
FY2025/26 Proposed Budget

BUDGET AND POSITION CHANGES (continued)

Department Budget Summary

General Fund - 322,571 -
Total Change - (6,598,637) -
* Various Funds include Parking, Water, Wastewater, Solid Waste, Community Center, and Storm Drainage, Fleet, and Risk Management Funds. A full breakdown of the fee increases is listed in the Budget Modification section.

Change
Citywide and Community Support FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed Proposed/Amended Employee Services $ 18,270,106 $ 20,897,266 $ 9,491,135 $ 16,682,082 $ 11,075,554 $ (5,606,528) Other Services and Supplies 90,838,470 100,485,291 103,853,287 104,051,888 112,380,326 8,328,438 City Property 539,285 526,135 300,000 300,000 300,000 - Multi-Year Operating Projects - - 16,830,996 17,185,896 9,642,614 (7,543,282) Transfers 261,315 219,548 - - 375,141 375,141
Labor and Supply Offset 168,776 169,715 154,634 154,634 - (154,634) Contingency - - 2,000,000 1,914,453 2,000,000 85,547
Operating Transfers (838,984) (2,369,849) - - 154,634 154,634 Total $109,238,969 $119,928,106 $132,630,052 $140,288,953 $135,928,269 $ (4,360,684) Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approved Amended Proposed Proposed/Amended General Fund $ 52,522,239 $ 58,251,636 $ 72,567,792 $ 78,775,947 $ 75,669,553 $ (3,106,394) Interdepartmental Service 2,072,984 2,150,168 2,643,036 2,643,036 2,559,655 (83,381) ARPA Reinvestment Fund - - - - (1,294,338) (1,294,338)
Development Services 774,190 1,125,894 - - - -
Private Development 186,558 272,794 - - - -
Sheraton MOPA Project 257,604 370,355 - - - -
Innovation and Grow th 9,589 2,513,938 - 17,162 (14,431) (31,593) NMA Safety, Streets, Ped, Bic - - - - (1,001) (1,001)
Dow ntow n Plaza PBID 81,483 60,764 76,230 76,230 83,853 7,623 Old Sacramento PBID 157,871 152,253 145,530 145,530 160,083 14,553 Franklin Blvd PBID 54,720 56,488 95,288 95,288 104,817 9,529 Del Paso PBID 44,423 32,304 47,009 47,009 51,710 4,701
Stockton Blvd BIA 69,836 64,651 74,705 74,705 82,175 7,470 Oak Par k PBID 328,117 327,631 357,386 357,386 368,108 10,722 Franklin Boulevard PBID 206,083 209,519 228,152 228,152 239,560 11,408 Del Paso Prop & Business Imprv 495,476 484,824 551,095 551,095 567,628 16,533 Dow ntow n Management District 3,904,081 3,946,866 4,198,181 4,198,181 5,920,809 1,722,628 The River District PBID 671,791 703,808 751,570 751,570 789,149 37,579 N Natomas Transp Mgmt Assoc 1,740,746 1,892,525 1,970,000 1,970,000 2,100,000 130,000 Stockton Blvd PBID 408,653 412,411 447,745 447,745 461,177 13,432 Pow er Inn Area Prop & Business 534,253 568,659 615,386 615,386 640,001 24,615 Greater Broadw ay PBID 431,474 486,481 451,101 451,101 473,656 22,555 Midtow n Sacramento PBID 1,772,964 1,809,375 1,897,592 1,897,592 1,959,039 61,447 365
FY2025/26 Proposed Budget

Department Budget Summary (continued)

Division Budget Summary

Staffing Levels

Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY 2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approv ed Amended Proposed Proposed/Amended Library Services Parcel Tax 9,200,279 9,536,971 9,989,149 9,989,149 10,349,473 360,324 Mack Road PBID 684,398 708,067 752,038 752,038 774,599 22, 561 Sac Tourism Marketing District 7,457,635 8,382,486 3,568,492 3,568,492 3,568,492 - Sacramento TID 442,000 - - - - -
16th St PBID 185,248 183,730 194,344 194,344 202,118 7, 774 Measure U 18,862,853 19,578,736 27,095,919 27,936,842 26,079,832 (1,857,010) STA RT 5,821 4,487 4,704 4,704 4,626 ( 78)
Marina - 7,508 - 9,240 - (9,240)
Parking 159,922 173,708 88,609 203,693 81,633 ( 122,060) Water 873,095 946,758 615,515 784,268 537,693 ( 246,575) Wastew ater 300,885 320,998 202,880 202,880 176,425 ( 26,455) Recycling and Solid Waste 551,837 718,242 542,407 631,260 426,724 ( 204,536) Community Center 1,767,851 1,863,719 1,892,352 1,985,432 2,326,255 340,823 Storm Drainage 361,988 429,458 292,233 306,352 246,689 ( 59,663) 4th R Program 42,514 39,629 33,773 54,951 29,701 ( 25,250) Fleet Management 214,706 246,947 185,790 246,120 148,745 ( 97,375) Ris k Mgmt 28,562 24,979 16,293 27,616 16,162 ( 11,454) Worker's Compensation Fund 34,552 41,357 36,143 43,920 36,300 ( 7,620) Cty/Cnty Office-Water Planning 481,219 443,287 1,613 4,537 1,599 ( 2,938) Habitat Management Element 858,466 383,695 - - - -
Total $109,238,969 $119,928,106 $132,630,052 $140,288,953 $135,928,269 $ (4,360,684) Change
Citywide and Community Support FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approved Amended Proposed p
ed
Cityw ide Support Division $ 40,122,939 $ 47,422,175 $ 67,391,293 $ 67,746,193 $ 70,264,667 $ 2,518,474 Community Support Division 39,356,678 40,316,540 44,577,757 44,776,056 46,886,591 2,110,535 County Property Taxes & Charges 2,971,308 3,308,017 5,120,000 5,120,000 4,476,011 (643,989) Major Tax Revenues Division 7,938,373 9,044,268 500,000 500,000 500,000 - Reserves/Fund Contingency Division - - 2,000,000 1,914,453 2,000,000 85,547 Retired/Transfer Emp Benefit 1530 18,849,671 19,837,105 13,041,002 20,232,251 11,801,000 (8,431,251) Total $109,238,969 $119,928,106 $132,630,052 $140,288,953 $135,928,269 $ (4,360,684) Change
Citywide and Community Support FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended Community Support Division 7.00 6.00 - - - -
Total 7.00 6.00 - - - -
366
FY2025/26 Proposed Budget

MEASURE U

The following chart summarizes the Measure U programs in Citywide and Community Support.

Funding Category Program Name FTE
FY2025/26
Proposed
Arts/Creative Edge
Operations Arts Stablization - 270,833
Inclusive Economic Development
Operations Community Programs - 974,393
Library
MYOP SPLA Maintenance Program - 400,000
Operations Library JPA - 14,271,661
Miscellaneous
MYOP Powerhouse Science Center 600,000
Thousand Strong (1,500,000)
Economic Development Initiatives (200,650)
Commission Stipends Program (24,750)
SURA Program 5,400,000
City Manager Youth Programs (157,076)
Operations Citywide IT Maintenance and Support - 289,684 Employee Development - (737,255)
Gen Insurance/Termination - 5,363,020
Retired/Transfer Employee Benefits - 879,972
Youth
MYOP Fare Free Transit for Youth 250,000
Grand Total - 26,079,832$
367
FY2025/26 Proposed Budget

368
FY2025/26 Proposed Budget

26 SECTION - 26
Debt Financing
369
FY2025/26 Proposed Budget

370
FY2025/26 Proposed Budget

Debt Financing

The Debt Financing Program finances the cost of capital improvements through revenue bonds, assessment revenue bonds, lease revenue bonds, capital leases, notes payable, special tax bonds, or advances from other funds. Debt service payments are generally made in semi-annual installments. This budget contains debt service payments for all funds. A five- year projection on gross debt service allocated by fund is included in the Budget Schedules section (Schedule 10).

Central to debt management is ensuring the City's compliance with Federal, State, and local regulations. Other debt management functions include, but are not limited to:
• Making full and timely debt payments
• Maintaining investment grade credit ratings
• Ensuring compliance with bond covenants
• Facilitating project fund draws to ensure spend down pursuant to Internal Revenue Services (IRS) expenditure requirements
• Monitoring private activity/private use of tax-exempt financed assets and remediation as necessary
• Meeting the continuing disclosure reporting requirements of the Municipal Securities Rulemaking Board, the IRS, the California State Controller’s Office, and the California Debt and Investment Advisory Commission
• Providing ongoing information to rating agencies, municipal bond insurers, and bond investors
• Reviewing, assessing, and responding to inquiries (as appropriate) from bond investors, while ensuring no selective disclosure occurs • Assisting with the management of City funds associated with debt • Levy of special assessments and special taxes
• Managing the delinquency and foreclosure process
The City Treasurer’s Office is responsible for issuing debt on behalf of d epartments, the Sacramento Public Financing Authority*, assessment districts, community facilities districts and other qualified entities. Additionally, the City Treasurer’s Office provides support to the City’s Finance Department and Office of Innovation and Economic Development on the maintenance of redevelopment-related debt. Typical debt structures include revenue bonds, lease revenue bonds, land-secured (Mello-Roos) financings, short-term notes, and small- equipment leases (direct placement loans). Debt may be issued with fixed or variable interest rate structures.
*Prior to dissolution of redevelopment activities in January 2012, the City Treasurer’s Office issued debt on behalf of the Sacramento City Financing Authority (SCFA). Debt previously issued on behalf of the SCFA that remains outstanding is managed by the City Treasurer’s Office.
371
FY2025/26 Proposed Budget

Debt Limit
The City has approximately $761 million in General Fund lease obligations (inclusive of required principal and interest payments) as of June 30, 2025, the majority of which is expected to be paid from funds other than the City’s General Fund. State law sets the bonded limit for General Obligation bonds at 15% of the total assessed valuation of all real and personal property within the City. As of June 30, 2024, the City had no General Fund Obligation Bonds outstanding and had a total debt limit of approximately $10.71 billion associated with general obligation debt.

Summary of the City and Related Sacramento City Financing Authority and Sacramento Public Financing Outstanding Debt (does not include land- secured debt) are listed below.

The following summarizes what is included in the Debt Service Division Budgets:
• 2006 Capital Improvement Revenue Bonds (CIRBs), Series B, and E - included (1) General Fund backed lease revenue bonds for Tier 1 Community Reinvestment Capital Improvement Program ( CRCIP) projects supporting community non- profit organizations (Crocker Art Museum Association, B Street Theater, Studio for Performing Arts, community non-profit organizations for the arts and youth) which included loan agreements for some of the borrowed debt, and (2) refinancing of remaining debt associated with the 2001 CIRBs (water and golf capital improvement projects [CIPs]) , 2002 CIRBs (Civic Center, Sacramento Housing and Redevelopment Agency [ SHRA] projects and other CIPs) , and the 2003 CIRB (911 call center and other CIPs).
• 2015 Golden 1 Center (G1C) Lease Revenue Bonds - Financed the acquisition, construction, installation, and equipping of the Golden 1 Center in Downtown Commons.
• 2015 Refunding Revenue Bonds - Refunded (1) 2002 CIRB Series A which financed City Hall and SHRA CIPs, (2) 2003 CIRB which financed the 911 call center and other CIPs, (3) 2005 Refunding Revenue Bonds for solid waste, redevelopment and master lease program facilities, and (4) 2006 CIRB Series A & C which included General Fund backed lease revenue bonds to finance CRCIP projects (three new libraries, four community center renovations, regional park improvements, a new cattery building, and improvements to Fairytale Town, Discovery Museum, neighborhood/community lighting and transportation facilities) for the City and SHRA CIPs.
• 2016 H Street Refunding Bonds – Refinanced the 2002 Certificates of Participation issued jointly by the City of Sacramento and County of Sacramento to finance the construction of the California Musical Theater; savings from the refinancing benefited the California Musical Theater via lower debt service payments.
• 2017 Water Revenue Bonds – Financed the continuation of the City’s Accelerated Water Meter Program, replacement of aging pipelines, rehabilitation of certain 372
FY2025/26 Proposed Budget

components of the City’s water treatment plants, and miscellaneous capital projects.
• 2018 Transient Occupancy Tax Revenue Bonds – Financed the renovation of the Convention Center, the Community Center Theater, and the Memorial Auditorium.
• 2019 Sacramento Tourism Infrastructure District Assessment Revenue Bonds – Financed the construction of the second ballroom at the Convention Center.
• 2019 Wastewater Revenue Bonds – Financed the rehabilitation of various wastewater sumps, rehabilitation of infrastructure in the combined sewer system and the separated system, as well as in-line and underground storage structures. • 2020 Wastewater Revenue Refunding Bonds – Refinanced a portion of the 2013 Wastewater Revenue Bonds. Cashflow savings allowed the City’s Wastewater System to pay for additional capital improvements without the need to raise utility rates in the near-term.
• 2020 Water Revenue Refunding Bonds – Refinanced a portion of the 2013 Water Revenue Bonds. Cashflow savings allowed the City’s Water System to pay for additional capital improvements without the need to raise utility rates in the near-term.
• 2023 Water Revenue Refunding Bonds – Refinanced a portion of the 2020 Water Revenue Refunding Bonds. Cashflow savings allowed the City’s Water System to pay for additional capital improvements without the need to raise utility rates in the near-term.
• CA Department of Boating and Waterways Loans - Financed the expansion of the north and south basins of the City's Marina.
• Miscellaneous Debt (New Money) - Financing for the acquisition, replacement, restoration, modification, and improvement of various equipment (fleet, vehicles, parking meters, garbage cans, and elevator equipment). Included in this are the (1) American Recovery and Reinvestment Act, Mari na, and California Infrastructure and Economic Development Bank loans, and ( 2) financed improvements in various redevelopment project areas.
• Miscellaneous Debt (Refunding) – Refinanced numerous land-secured districts, primarily in Council District 1; savings benefit constituents who are part of those land-secured districts by way of reduced property taxes.

• State Revolving Fund Loan (Drinking Water Program) – Financed the Meter and Pipe Installation Project which benefited numerous areas throughout the city.

373
FY2025/26 Proposed Budget

Department Budget Summary

Change
Debt Service FY2022/23 FY2023/24 FY2024/25 FY 2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Approv ed Amended Proposed Proposed/Amended Other Services and Supplies $ 35,054 $ 34,968 - - - - City Debt Service 100,022,293 99,853,237 105,168,181 105,168,181 105,380,686 212,505 Labor and Supply Offset - 89,800 - - - -
Total $100,057,347 $ 99,978,004 $105,168,181 $105,168,181 $105,380,686 $ 212,505 Change
FY2022/23 FY2023/24 FY2024/25 FY2024/25 FY 2025/26 More/(Less) Funding Summary by Fund/Special District Actuals Actuals Approv ed Amended Proposed Proposed/Amended General Fund $ 16,871,890 $ 16,811,881 $ 16,578,414 $ 16,578,414 $ 16,566,564 $ (11,850) Innovation and Grow th 1,100,000 1,100,000 - - - -
Sacramento TID 2,721,149 2,690,894 2,742,250 2,742,250 2,741,750 (500) Golf 435,367 435,252 435,087 435,087 434,933 ( 154)
Marina 1,151,565 1,182,235 1,207,235 1,207,235 1,257,235 50,000 NNFP Public Facilities Fee 585,777 587,446 573,171 573,171 577,045 3, 874 NNFP Reg Park Land Acquisition 843,481 845,886 825,331 825,331 830,908 5, 577 CFD-Dev Fee - 1,660 - - - -
2006 CIRBs, Series B (CRCIP) 1,737,520 1,356,318 1,512,650 1,512,650 1,510,059 (2,591) 2006 CIRBs (Refunding), Series E 257,336 238,057 231,037 231,037 231,156 119 2015 Golden 1 Center Revenue Bonds 2,214,684 2,276,470 8,889,286 8,889,286 9,086,258 196,972 2015 Refunding Revenue Bond 14,127 25,730 - - - -
2016 Lease Financing-H Street 673,618 669,203 674,515 674,515 669,250 ( 5,265) Parking 10,279,935 10,076,516 9,780,506 9,780,506 9,576,631 (203,875) Water 36,049,899 36,497,046 32,677,464 32,677,464 35,723,284 3,045,820 Wastew ater 3,915,667 3,489,386 3,910,458 3,910,458 3,913,157 2,699 Recycling and Solid Waste 1,677,781 1,676,733 1,674,299 1,674,299 1,666,892 (7,407) Community Center 19,072,753 18,863,763 20,318,486 20,318,486 20,318,464 (22) Storm Drainage 235,021 235,205 232,860 232,860 232,486 ( 374) Water Revenue Bonds (5,960) 42,098 2,860,241 2,860,241 - ( 2,860,241) Water Revenue Bonds Ser. 2017 315 1,926 - - - -
Drinking Water SRF Loan - - - - - -
Water Rev Ref Bonds Ser 2020 814 4,168 - - - -
Water Rev Ref Bonds Ser 2023 - (23,030) - - - -
Wastew ater Revenue Bonds (805) 429,270 - - - -
Wastew ater Revenue Bonds 2019 199 1,140 - - - -
Wastew ater Rev Ref Bonds Ser 2020 113 539 - - - -
2018 TOT Revenue Bonds, Tax Exempt 37,298 117,417 (696,666) (696,666) (214) 696,452 2018 TOT Revenue Bonds, Taxable 119,356 246,530 696,715 696,715 - (696,715) 2019 STID Revenue Bonds 22,691 52,192 - - - -
Fleet Management 45,755 46,073 44,842 44,842 44,828 ( 14) Total $100,057,347 $ 99,978,004 $105,168,181 $105,168,181 $105,380,686 $ 212,505 374
FY2025/26 Proposed Budget

Division Budget Summary

Change
Debt Service FY2022/23 FY2023/24 FY 2024/25 FY2024/25 FY2025/26 More/(Less) Budget Summary Actuals Actuals Ap proved Amended Proposed Proposed/Amended 2018 TOT Revenue Bonds $ 18,979,407 $18,977,710 $ 18,968,535 $ 18,968,535 $ 18,968,250 $ (285) 2017 Water Revenue Bonds 3,380,982 3,379,824 3,375,663 3,375,663 3,376,288 625 2020 Water Revenue Refinance Bonds 6,982,969 6,619,504 5,200,307 5,200,307 9,091,004 3,890,697 2023 Water Revenue Refinance Bonds - 807,854 1,259,100 1, 259,100 3,282,000 2,022,900 2015 G1C Lease Revenue Bonds Division 12,114,684 11,976,470 18,289,286 18,289,286 18,286,258 (3,028) 2015 Refunding Revenue Bonds 9,930,402 9,922,524 9,925,687 9,925,687 9,898,312 (27,375) 2019 STID Revenue Bonds Division 2,743,839 2,743,086 2,742,250 2,742,250 2,741,750 (500) 2013 Water Revenue Bonds 5,724,694 5,719,874 5,719,500 5,719,500 - (5,719,500) 2013 Wastew ater Revenue Bonds 826,789 828,072 - - - -
2019 Wastew ater Revenue Bonds 2,116,289 2,117,576 2,116,375 2,116,375 2,116,375 - 2020 Wastew ater Revenue Refinance Bonds 926,341 928,612 1,749,241 1, 749,241 1,751,954 2,713 2006 CIRBs Series B, D, E Division 24,533,572 24,065,122 23,954,435 23,954,435 23,965,207 10,772 Miscellaneous Division-Debt Service 11,797,378 11,891,775 11,867,802 11,867,802 11,903,288 35,486 Total $100,057,347 $99,978,004 $105,168,181 $105,168,181 $105,380,686 $ 212,505 375
FY2025/26 Proposed Budget

376
FY2025/26 Proposed Budget

27 SECTION - 27
Staffing

377
FY2025/26 Proposed Budget

378
FY2025/26 Proposed Budget

Citywide Staffing Summary

Department
FY2024/25
Amended
FY2025/26
Proposed
Mayor/Council 43.00 43.00
City Auditor 1

0.00 10.00
City Attorney 64.00 64.00
City Clerk 24.00 24.00
City Manager 64.00 52.00
City Treasurer 14.00 14.00
Community Development 318.00 315.00
Community Response 38.00 38.00
Convention and Cultural Services 124.50 124.50
Finance 94.00 103.00
Fire 760.50 763.50
Human Resources 83.00 77.00
Information Technology 202.50 202.50
Police 1,119.50 1,092.50
Public Works 769.65 780.65
Utilities 599.18 607.18
Youth, Parks, and Community Enrichment 709.87 674.00 Total 5,037.70 4,984.83
379
FY2025/26 Proposed Budget

Mayor/Council
FY2024/25
Amended
FY2025/26
Proposed Change
Chief of Staff to the Mayor 1.00 1.00 - City
Council 4.00 4.00 -
Council Representative 1.00 1.00 - Director of Public Safety Accountability 1.00 1.00 - Executive Assistant (MC) 13.00 13.00 - Mayor 1.00 1.00 -
OPS Accountability Analyst 2.00 1.00 (1.00) OPS Accountability Inspector General 1.00 1.00 - OPSA Assistant Director 1.00 1.00 - OPSA Community Engagement Coordinator - 1.00 1.00 OPSA Deputy Inspector General 1.00 1.00 - OPSA Investigator 4.00 2.00 (2.00) OPSA Senior Investigator - 2.00 2.00 Senior Advisor to the Mayor 3.00 3.00 - Senior Council Representative 8.00 9.00 1.00 Special Assistant to the Mayor 1.00 1.00 - Staff Aide MCS 1.00 - (1.00)
Total 43.00 43.00 -
380
FY2025/26 Proposed Budget

City Attorney
FY2024/25
Amended
FY2025/26
Proposed Change
Assistant City Attorney 2.00 2.00 - Chief Assistant City Attorney 1.00 1.00 - City Attorney 1.00 1.00 -
Deputy City Attorney II 3.00 3.00 - Investigator 1.00 1.00 -
Law Office Administrator 1.00 1.00 - Legal Secretary (Ex) 9.00 9.00 - Legal Staff Assistant (Ex) 2.00 2.00 - Paralegal (Ex) 6.00 6.00 -
Paralegal Technical Support 1.00 1.00 - Senior Deputy City Attorney 29.00 29.00 - Senior Legal Staff Asst (Ex) 1.00 1.00 - Special Assistant to City Attorney 1.00 1.00 - Supervising Deputy City Attorney 4.00 4.00 - Supervising Legal Secretary 2.00 2.00 - Total 64.00 64.00 -
381
FY2025/26 Proposed Budget

City Auditor
FY2024/25
Amended
FY2025/26
Proposed Change
Assistant City Auditor 1.00 - (1.00) Assistant Director - 1.00 1.00 City Auditor 1.00 1.00 -
Fiscal Policy Analyst 3.00 3.00 - Principal Fiscal Policy Anlyst 2.00 2.00 - Senior Fiscal Policy Analyst 3.00 3.00 - Total 10.00 10.00 -
382
FY2025/26 Proposed Budget

City Clerk
FY2024/25
Amended
FY2025/26
Proposed Change
Administrative Analyst 6.00 6.00 - Assistant City Clerk 1.00 1.00 - City Clerk 1.00 1.00 -
Council/Clerk Operations Manager 1.00 1.00 - Deputy City Clerk 8.00 8.00 -
Program Specialist 3.00 3.00 -
Senior Deputy City Clerk 3.00 3.00 - Staff Assistant-Mayor Council 1.00 1.00 - Total 24.00 24.00 -
383
FY2025/26 Proposed Budget

City Manager
FY2024/25
Amended
FY2025/26
Proposed Change
Accountant Auditor 1.00 - (1.00) Administrative Analyst 16.00 13.00 (3.00) Administrative Officer 2.00 1.00 (1.00) Administrative Technician 4.00 1.00 (3.00) Assistant City Manager 4.00 4.00 - Assistant Director 1.00 1.00 -
Assistant to the City Manager 1.00 1.00 - Cannabis Manager 1.00 - (1.00) City Housing Manager 1.00 1.00 - City Manager 1.00 1.00 -
Community Engagement Manager 1.00 1.00 - Development Project Manager 10.00 8.00 (2.00) Director of Emergency Management 1.00 1.00 - Director of Governmental Affairs 1.00 1.00 - Economic Development Manager 3.00 3.00 - Executive Assistant (CMO) 1.00 1.00 - Graphic Designer 1.00 1.00 -
Media and Communications Officer 1.00 1.00 - Media and Communications Specialist 2.00 2.00 - Neighborhood Services Area Manager 1.00 1.00 - Program Specialist 4.00 3.00 (1.00) Senior Development Project Manager 4.00 4.00 - Special Projects Manager 2.00 2.00 - Total 64.00 52.00 (12.00)
384
FY2025/26 Proposed Budget

City Treasurer
FY2024/25
Amended
FY2025/26
Proposed Change
Administrative Analyst 1.00 1.00 - Banking Operations Manager 1.00 1.00 - Chief Investment Officer 1.00 1.00 - City Treasurer 1.00 1.00 -
Debt Analyst 1.00 1.00 -
Investment Officer 1.00 1.00 -
Investment Operations Analyst 1.00 1.00 - Senior Debt Analyst 2.00 2.00 - Senior Investment Officer 1.00 1.00 - Treasury Analyst 2.00 2.00 -
Treasury Assistant 1.00 1.00 -
Treasury Manager 1.00 1.00 -
Total 14.00 14.00 -
385
FY2025/26 Proposed Budget

Community Development
FY2024/25
Amended
FY2025/26
Proposed Change
Account Clerk II 2.00 2.00 -
Accountant Auditor 1.00 - (1.00) Accounting Technician 5.00 5.00 - Administrative Analyst 8.00 9.00 1.00 Administrative Assistant 1.00 1.00 - Administrative Officer 1.00 1.00 - Administrative Technician 5.00 5.00 - Animal Care Services Manager 1.00 1.00 - Animal Care Technician 16.00 16.00 - Animal Control Officer I 4.00 9.00 5.00 Animal Control Officer II 8.00 3.00 (5.00) Animal Services Coordinator 6.00 6.00 - Assistant Architect 1.00 1.00 - Assistant Code Enforcement Officer 6.00 6.00 - Assistant Director 1.00 1.00 -
Assistant Planner 8.00 6.00 (2.00) Associate Civil Engineer 3.00 3.00 - Associate Planner 18.00 18.00 -
Building Inspector I 16.00 16.00 -
Building Inspector II 15.00 15.00 - Building Inspector III 20.00 20.00 - Building Inspector IV 13.00 13.00 - Chief Animal Control Officer 1.00 1.00 - Chief Building Official 1.00 1.00 - Code Enforcement Manager 1.00 1.00 - Code Enforcement Officer 25.00 25.00 - Code and Housing Enforcement Chief 1.00 1.00 - Crew Leader (Landscape&Learning) 0.50 0.50 - Customer Service Representative 18.00 18.00 - Customer Service Specialist 8.00 8.00 - Customer Service Supervisor 3.00 3.00 - Deputy Chief Building Official 1.00 1.00 - Development Project Manager 5.00 5.00 - Development Services Technician I 6.00 4.00 (2.00) Development Services Technician II 4.00 6.00 2.00 Development Services Technician III 4.00 4.00 - Director of Community Development 1.00 1.00 - Junior Planner 1.00 2.00 1.00
Painter 1.00 1.00 -
Permit Services Manager 1.00 1.00 - Permit Services Supervisor 1.00 1.00 - Pl
anning Director 1.00 1.00 -
Plans Examiner III 1.00 1.00 -
Principal Building Inspector 3.00 3.00 - Principal Planner 6.00 6.00 -
Program Manager 2.00 2.00 -
Program Specialist 7.00 7.00 -
Public Information Coordinator 1.00 1.00 - 386
FY2025/26 Proposed Budget

Community Development (continued)
FY2024/25
Amended
FY2025/26
Proposed Change
Registered Veterinary Technician 7.00 7.00 - Senior Accountant Auditor 1.00 1.00 - Senior Accounting Technician 1.00 1.00 - Senior Animal Care Technician 2.00 2.00 - Senior Animal Control Officer 2.00 2.00 - Senior Architect 2.00 2.00 -
Senior Code Enforcement Officer 5.00 5.00 - Senior Development Project Manager 2.00 1.00 (1.00) Senior Engineer 1.00 1.00 -
Senior Painter 1.00 1.00 -
Senior Planner 11.00 11.00 -
Supervising Building Inspector 8.00 8.00 - Supervising Code Enforcement Officer 2.00 2.00 - Supervising Engineer 1.00 1.00 - Supervising Financial Analyst 1.00 1.00 - Support Services Manager 1.00 - (1.00) Urban Design Manager 1.00 1.00 - Veterinarian 3.00 3.00 -
Youth Aide 0.50 0.50 -
Zoning Investigator 2.00 2.00 - Total 318.00 315.00 (3.00)
*The Animal Control Officer I and II change is due to changes between flex positions. *The Assistant Planner, Associate Planner and Junior Planner (2.0 FTE) change is due to changes between flex positions.
*The Development Services Technician I and II change is due to changes between flex positions. 387
FY2025/26 Proposed Budget

Community Response
FY2024/5
Amended
FY2025/26
Proposed Change
Accountant Auditor 1.00 1.00 -
Administrative Analyst 6.00 6.00 - Administrative Assistant 1.00 1.00 - Administrative Technician 1.00 1.00 - Assistant Director 1.00 1.00 -
Director of Community Response 1.00 1.00 - Neighborhood Resources Coordinator I 12.00 12.00 - Neighborhood Resources Coordinator II 7.00 7.00 - Program Manager 2.00 2.00 -
Program Specialist 4.00 4.00 -
Senior Staff Assistant 1.00 1.00 - Support Services Manager 1.00 1.00 - Total 38.00 38.00 -
388
FY2025/26 Proposed Budget

Convention and Cultural Services
FY2024/25
Amended
FY2025/26
Proposed Change
Administrative Analyst 4.50 4.50 - Administrative Officer 2.00 2.00 - Administrative Technician 5.75 5.75 - Archivist 3.00 3.00 -
Art Museum
Registrar 1.00 1.00 -
Arts Administrator 1.00 1.00 -
Arts Program Assistant 2.00 2.00 - Arts Program Coordinator 2.00 2.00 - Arts Program Specialist 1.00 1.00 - Assistant Box Office Supervisor 2.00 2.00 - Assistant Director 1.00 1.00 -
Associate Curator of Art 1.00 1.00 - Booking Coordinator 1.00 1.00 - Building Maintenance Worker 1.00 1.00 - City Historian 1.00 1.00 -
Community Center Attendant I 10.00 10.00 - Community Center Attendant II 6.00 6.00 - Contract and Compliance Specialist 1.00 1.00 - Convention Center General Manager 1.00 1.00 - Cultural and Creative Economy Manager 1.00 1.00 - Curator of Art 1.00 1.00 -
Curator of Education 1.00 1.00 - Curator of History 1.00 1.00 -
Deputy Convention Center General Manager 1.00 1.00 - Director of Convention and Cultural Services 1.00 1.00 - Events Associate 14.50 14.50 -
Events Coordinator 5.00 5.00 -
Events Duty Person 2.30 2.30 -
Events Services Manager 3.00 3.00 - Events Services Supervisor 12.00 12.00 - Facilities and Real Property Superintendent 1.00 1.00 - Marina Aide 1.20 1.20 -
Mechanical Maintenance Supervisor 1.00 1.00 - Museum Security Supervisor 1.00 1.00 - Office Specialist 1.00 1.00 -
Program Manager 2.00 2.00 -
Program Specialist 2.00 2.00 -
Registrar 1.00 1.00 -
Senior Stationary Engineer 2.00 2.00 - Stagehand I 2.00 2.00 -
Stagehand II 2.00 2.00 -
St
ationary Engineer 6.00 6.00 -
Supervising Community Center Attendant 4.00 4.00 - Ticket Seller (Exempt) 6.25 6.25 - Zoo Attendant I 2.00 2.00 -
Total 124.50 124.50 -
389
FY2025/26 Proposed Budget

Finance
FY2024/25
Amended
FY2025/26
Proposed Change
Account Clerk II 4.00 4.00 -
Accountant Auditor 1.00 2.00 1.00 Accounting Technician 3.00 3.00 - Administrative Analyst 6.00 9.00 3.00 Administrative Assistant 1.00 1.00 - Administrative Officer 1.00 2.00 1.00 Administrative Technician 4.00 7.00 3.00 Budget Manager 1.00 1.00 -
Cannabis Manager - 1.00 1.00
Claims Collector 6.00 6.00 -
Contract and Compliance Specialist 2.00 2.00 - Customer Service Representative 15.00 14.00 (1.00) Customer Service Specialist 4.00 4.00 - Customer Service Supervisor 2.00 2.00 - Development Project Manager 2.00 2.00 - Director of Finance 1.00 1.00 - Enforcement and Collections Supervisor 1.00 1.00 - Finance Manager 3.00 3.00 -
Financial Services Supervisor 1.00 - (1.00) Payroll Technician 4.00 4.00 -
Principal Budget Analyst 3.00 3.00 - Procurement Services Manager 1.00 1.00 - Program Manager 4.00 5.00 1.00
Program Specialist 1.00 2.00 1.00 Senior Accountant Auditor 9.00 9.00 - Senior Accounting Technician 2.00 2.00 - Senior Budget Analyst 3.00 3.00 - Senior Claims Collector 1.00 1.00 - Senior Development Project Manager 4.00 4.00 - Special Districts Manager 1.00 1.00 - Supervising Financial Analyst 3.00 3.00 - Total 94.00 103.00 9.00
390
FY2025/26 Proposed Budget

Fire
FY2024/25
Amended
FY2025/26
Proposed Change
Account Clerk II 3.00 3.00 -
Admi
nistrative Analyst 9.00 10.00 1.00 Administrative Assistant 1.00 1.00 - Administrative Officer 1.00 1.00 - Administrative Technician 11.00 12.00 1.00 Cache Logistics Coordinator 2.00 2.00 - Contract and Compliance Specialist 1.00 1.00 - Customer Service Representative 3.00 2.00 (1.00) Deputy Fire Chief 3.00 3.00 -
Emergency Medical Service Trainee 10.00 10.00 - EMS Coordinator 2.00 2.00 -
Fire Assistant Chief 9.00 9.00 - Fire Battalion Chief 12.00 12.00 -
Fire Battalion Chief (Admin) 3.00 3.00 - Fire Captain 111.00 111.00 -
Fire Captain (Admin) 13.00 12.00 (1.00) Fire Chief 1.00 1.00 -
Fire Engineer 105.00 105.00 -
Fire Engineer (Admin) 4.00 4.00 - Fire Investigator I 5.00 5.00 - Fire Investigator II 2.00 2.00 - Fire Marshal 1.00 1.00 -
Fire Prevention Officer I 1.00 2.00 1.00 Fire Prevention Officer II 13.00 11.00 (2.00) Fire Prevention Officer Trainee 2.00 6.00 4.00 Fire Recruit 11.50 11.50 -
Fire Service Worker 3.00 3.00 - Firefighter 349.00 349.00 -
Firefighter (Admin) 3.00 5.00 2.00 Investigator 1.00 1.00 -
Media and Communications Specialist 1.00 1.00 - Office Specialist 6.00 6.00 -
Pick Up Driver 2.00 2.00 -
Program Specialist 1.00 2.00 1.00 Program Supervisor 1.00 - (1.00) Public Safety Administrative Manager 1.00 1.00 - Sacramento Fire EMT 20.00 20.00 -
Sacramento Fire Paramedic 20.00 20.00 - Senior Accountant Auditor 1.00 - (1.00) Senior Fire Prevention Officer 4.00 4.00 - Senior Staff Assistant 1.00 1.00 - St
ores Administrator 1.00 1.00 -
Stores Clerk I 1.00 - (1.00)
Stores Clerk II 3.00 4.00 1.00
Supervising Fire Service Worker 1.00 1.00 - Support Services Manager 1.00 - (1.00) Total 760.50 763.50 3.00
*The Stores Clerk I and Store Clerk II change is due to changes between flex positions. *The Fire Prevention Officer I, II and Fire Prevention Officer Trainee (5.0 FTE) change is due to changes between flex positions.
391
FY2025/26 Proposed Budget

Human Resources
FY2024/25
Amended
FY2025/26
Proposed Change
Accountant Auditor 1.00 1.00 -
Admi
nistrative Analyst 10.00 6.00 (4.00) Administrative Assistant 1.00 - (1.00) Administrative Officer - 1.00 1.00 Administrative Technician 1.00 1.00 - Director of Human Resources 1.00 1.00 - Diversity and Equity Manager 1.00 1.00 - Environmental Health and Safety Manager 1.00 1.00 - Environmental Health and Safety Officer 1.00 1.00 - Environmental Health and Safety Specialist 7.00 7.00 - Equal Employment Manager 1.00 1.00 - Equal Employment Specialist 1.00 1.00 - Human Resources Manager (Rep20) 3.00 3.00 - Labor Relations Adm/EEO Investigatior 2.00 2.00 - Labor Relations Analyst 1.00 1.00 - Labor Relations Officer 5.00 5.00 - Personnel Analyst 6.00 7.00 1.00 Personnel Technician 15.00 14.00 (1.00) Program Manager - 1.00 1.00
Program Specialist 3.00 - (3.00) Risk Manager 1.00 1.00 -
Senior Personnel Analyst 3.00 4.00 1.00 Senior Staff Assistant 4.00 3.00 (1.00) Staff Assistant 2.00 2.00 -
Workers Compensation Claims Assistant I 3.00 2.00 (1.00) Workers Compensation Claims Assistant II - 1.00 1.00 Workers Compensation Claims Manager 1.00 1.00 - Workers Compensation Claims Representative 6.00 6.00 - Workers Compensation Claims Supervisor 2.00 2.00 - Total 83.00 77.00 (6.00)
*The Worker's Compensation Claims Assistant I and II change is due to changes between flex positions. 392
FY2025/26 Proposed Budget

Information Technology
FY2024/25
Amended
FY2025/26
Proposed Change
311 Customer Service Agent 32.50 32.50 - 311 Customer Service Specialist 3.00 3.00 - 311 Customer Service Supervisor 3.00 3.00 - 311 Manager 1.00 1.00 -
Administ
rative Analyst 3.00 3.00 -
Administrative Technician 1.00 1.00 - Applications Developer 8.00 13.00 5.00 Assistant Director 1.00 1.00 -
Chief Information Officer 1.00 1.00 - Department Systems Specialist I 1.00 1.00 - Department Systems Specialist II 3.00 3.00 - Geographic Information Systems Specialist I 2.00 2.00 - Geographic Information Systems Specialist II 8.00 8.00 - Geographic Information Systems Specialist III 4.00 4.00 - Information Technology Manager 5.00 5.00 - Information Technology Supervisor 12.00 12.00 - Information Technology Support Specialist I 6.00 12.00 6.00 Information Technology Support Specialist II 8.00 11.00 3.00 Information Technology Trainee 17.00 3.00 (14.00) Media Production Specialist I 1.00 1.00 - Media Production Specialist II 1.00 1.00 - Principal Applications Developer 12.00 12.00 - Principal Systems Engineer 7.00 7.00 - Program Manager 3.00 3.00 -
Program Specialist 11.00 11.00 -
Senior Applications Developer 15.00 15.00 - Senior Department System Specialist 6.00 6.00 - Senior Information Technology Support Specialist 2.00 2.00 - Senior Systems Engineer 10.00 10.00 - Senior Telecommunications Technician 1.00 1.00 - Systems Engineer 10.00 10.00 -
Telecommunications Engineer III 3.00 3.00 - Telecommunications Technician I 1.00 1.00 - Total 202.50 202.50 -
*The Applications Developer, Information Technology Support Specialist I and II and Information Technology Trainee change is due to changes between flex positions
393
FY2025/26 Proposed Budget

Police
FY2024/25
Amended
FY2025/26
Proposed Change
Account Clerk I 1.00 - (1.00) Account Clerk II 1.00 1.00 -
Accountant Auditor 1.00 1.00 -
Accounting Technician 2.00 2.00 - Administrative Analyst 31.00 30.00 (1.00) Administrative Officer 5.00 5.00 - Administrative Technician 14.00 14.00 - Community Service Officer II 46.00 23.00 (23.00) Community Service Officer III 10.00 10.00 - Community Service Representative I 3.00 3.00 - Custodian II 5.00 5.00 -
Deputy Police Chief 3.00 3.00 - Dispatcher I 11.00 18.00 7.00
Dispatcher II 69.00 62.00 (7.00)
Dispatcher III 12.00 12.00 -
Evidence & Property Technician 9.00 9.00 - Fingerprint Clerk 3.00 3.00 -
Forensic Investigator I 8.00 3.00 (5.00) Forensic Investigator II 13.00 18.00 5.00 Governmental Affairs Manager 1.00 1.00 - Media and Communications Specialist 1.00 1.00 - Media Production Specialist I 1.00 1.00 - Media Production Specialist II 1.00 2.00 1.00 Personnel Transactions Coordinator 1.00 1.00 - Police Captain 11.00 11.00 -
Police Chief 1.00 1.00 -
Police Clerk II 17.00 17.00 -
Police Clerk III 2.00 2.00 -
Police Lieutenant 26.00 26.00 -
Police Officer 599.00 596.00 (3.00)
Police Records Specialist I 23.00 10.00 (13.00) Police Records Specialist II 33.00 46.00 13.00 Police Records Specialist III 3.00 3.00 - Police Records Supervisor 7.00 7.00 - Police Sergeant 95.00 96.00 1.00
Program Specialist 3.00 3.00 -
Public Safety Admin. Manager 1.00 1.00 - Senior Evidence/Property Tech 4.00 4.00 - Senior Police Records Supervisor 3.00 3.00 - Senior Staff Assistant 2.00 1.00 (1.00) Special Projects Manager 1.00 1.00 - St
udent Trainee (Most Majors) 28.50 28.50 - Supervising Dispatcher 3.00 3.00 - Supervising Forensic Investigator 4.00 4.00 - Supervising Property Assistant 1.00 1.00 - Total 1,119.50 1,092.50 (27.00)
*The Dispatcher I and II change is due to changes between flex positions. *The Forensic Investigator I and II change is due to changes between flex positions. *The Police Records Specialist I and II change is due to changes between flex positions. 394
FY2025/26 Proposed Budget

Public Works
FY2024/25
Amended
FY2025/26
Proposed Change
Account Clerk II 3.00 2.00 (1.00) Accountant Auditor 2.00 3.00 1.00 Accounting Technician 6.00 6.00 - Administrative Analyst 30.00 28.00 (2.00) Administrative Assistant 1.00 1.00 - Administrative Officer 4.00 4.00 - Administrative Technician 9.00 10.00 1.00 Arborist/Urban Forester 7.00 7.00 - Architectural Technician III 2.00 1.00 (1.00) Assistant Architect 1.00 2.00 1.00 Assistant Civil Engineer 17.00 22.00 5.00 Assistant Director 1.00 1.00 -
Assistant Electrical Engineer 1.00 - (1.00) Associate Architect 2.00 1.00 (1.00) Associate Civil Engineer 7.00 6.00 (1.00) Associate Electrical Engineer 1.00 2.00 1.00 Associate Mechanical Engineer 1.00 1.00 - Associate Planner - 3.00 3.00
Building Inspector IV 1.00 1.00 - Building Maintenance Worker 9.00 9.00 - Building Services Manager 2.00 2.00 - Carpenter 3.00 3.00 -
Code Enforcement Officer 5.00 5.00 - Concrete Construction Leadworker 2.00 2.00 - Construction Inspector I 1.00 2.00 1.00 Construction Inspector II 9.00 9.00 - Construction Inspector III 11.00 10.00 (1.00) Contract and Compliance Specialist 2.00 2.00 - Custodian I 4.00 4.00 -
Custodian II 1.00 1.00 -
Customer Service Representative 2.00 2.00 - Customer Service Specialist 3.00 3.00 - Development Project Manager 3.00 3.00 - Development Services Technician II 2.00 2.00 - Director of Public Works 1.00 1.00 - Electrical Construction Inspector II 2.00 2.00 - Electrician 3.00 3.00 -
Electrician Supervisor 1.00 1.00 - Electronic Maintenance Tech I 1.00 1.00 - Engineering Manager 2.00 2.00 - Engineering Technician I 2.00 - (2.00) E
ngineering Technician II - 1.00 1.00 Engineering Technician III 6.00 5.00 (1.00) Equipment Maintenance Supervisor 4.00 4.00 - Equipment Mechanic I 8.00 11.00 3.00 Equipment Mechanic II 25.00 22.00 (3.00) Equipment Mechanic III 7.00 7.00 - Equipment Serviceworker 22.00 22.00 - Facilities and Real Property Superintendent 2.00 3.00 1.00 Facilities Manager 1.00 1.00 -
Fleet Management Technician 3.00 3.00 - Fleet Manager 1.00 1.00 -
Fleet Service Coordinator 3.00 4.00 1.00 395
FY2025/26 Proposed Budget

Public Works (continued)
FY2024/25
Amended
FY2025/26
Proposed Change
HVAC Supervisor 1.00 1.00 -
HVA
C Systems Mechanic 6.00 6.00 -
Integrated Waste Equipment Operator 132.30 132.30 - Integrated Waste General Manager 1.00 1.00 - Integrated Waste General Supervisor 2.00 2.00 - Integrated Waste Planning Superintendent 1.00 1.00 - Integrated Waste Supervisor 10.00 10.00 - Licensed Land Surveyor 1.00 1.00 - Locksmith 1.00 1.00 -
Mail Processor I (Legacy) 1.00 - (1.00) Mail Processor II (Legacy) 1.00 1.00 - Maintenance Worker 16.00 16.00 -
Marina Aide 1.60 1.60 -
Marina Manager 1.00 1.00 -
Marina and Boating Facilities Attendant 3.00 3.00 - Media and Communications Specialist 1.00 1.00 - Operations General Supervisor 11.00 11.00 - Painter 3.00 3.00 -
Parking Enforcement Officer 48.00 48.00 - Parking Enforcement Supervisor 4.00 4.00 - Parking Facilities Maintenance Supervisor 1.00 2.00 1.00 Parking Lot Attendant 19.75 19.75 - Parking Lot Supervisor 5.00 5.00 - Parking Manager 1.00 1.00 -
Parking Meter Coin Collector 4.00 4.00 - Parking Meter Collection Supervisor 1.00 1.00 - Parking Meter Repair Worker 3.00 4.00 1.00 Planning Director 1.00 1.00 -
Plumber 4.00 4.00 -
Plumbing Supervisor 1.00 1.00 - Principal Planner 2.00 2.00 -
Program Manager 5.00 5.00 -
Program Specialist 14.00 14.00 -
Real Property Agent II 2.00 2.00 - Real Property Agent III 2.00 2.00 - Senior Accountant Auditor 1.00 1.00 - Senior Accounting Technician 3.00 3.00 - Senior Architect 2.00 2.00 -
Senior Code Enforcement Officer 1.00 1.00 - Senior Electronic Maintenance Technician 1.00 1.00 - Senior Engineer 16.00 17.00 1.00
S
enior Engineering Technician 2.00 2.00 - Senior HVAC Systems Mechanic 2.00 2.00 - Senior Integrated Waste Equipment Operator 9.00 11.00 2.00 Senior Landfill Engineering Technician 1.00 1.00 - Senior Maintenance Worker 1.00 1.00 - Senior Office Specialist 5.00 5.00 - Senior Parking Lot Attendant 5.00 5.00 - Senior Planner 1.00 1.00 -
Senior Tree Maintenance Worker 4.00 4.00 - Senior Tree Pruner 4.00 4.00 -
Staff Assistant 2.00 2.00 -
Street Construction Equipment Operator 7.00 7.00 - 396
FY2025/26 Proposed Budget

Public Works (continued)
FY2024/25
Amended
FY2025/26
Proposed Change
Street Construction Laborer 34.00 31.00 (3.00) S
treet Construction Laborer Trainee 9.00 11.00 2.00 Street Maintenance Supervisor 7.00 8.00 1.00 Streets Manager 1.00 1.00 -
Structural Maintenance Supervisor 2.00 2.00 - Supervising Architect 2.00 2.00 - Supervising Construction Inspector 3.00 4.00 1.00 Supervising Engineer 6.00 8.00 2.00 Supervising Financial Analyst 3.00 3.00 - Supervising Surveyor 1.00 1.00 - Support Services Manager 2.00 2.00 - Survey Party Chief 2.00 2.00 -
Survey Technician II 3.00 2.00 (1.00) Telecommunications Engineer I 1.00 1.00 - Telecommunications Engineer II 1.00 1.00 - Telecommunications Technician I 1.00 1.00 - Traffic Control and Lighting Supervisor 3.00 3.00 - Traffic Control and Lighting Technician I 2.00 7.00 5.00 Traffic Control and Lighting Technician II 5.00 3.00 (2.00) Traffic Control and Lighting Technician Trainee 8.00 5.00 (3.00) Traffic Investigator I 1.00 3.00 2.00 Traffic Investigator II 3.00 - (3.00) Traffic Investigator III 2.00 4.00 2.00 Traffic Supervisor 3.00 3.00 -
Traffic Worker I 8.00 8.00 -
Traffic Worker II 6.00 6.00 -
Traffic Worker III 2.00 2.00 -
Tree Maintenance Supervisor 1.00 1.00 - Tree Maintenance Worker 6.00 6.00 - Tree Pruner II 8.00 9.00 1.00
Tree Pruner Supervisor 2.00 2.00 - Tree Pruner Trainee 2.00 1.00 (1.00) Vehicle Service Attendant 2.00 1.00 (1.00) Total 769.65 780.65 11.00
*The Assistant Architect and Associate Architect change is due to changes between flex positions. *The Construction I and III change is due to changes between flex positions. *The Engineering Technician I and II (1.0 FTE) change is due to changes between flex positions. *The Equipment Mechanic I and II change is due to changes between flex positions. *The Street Construction Laborer and Trainee (2.0 FTE) change is due to changes between flex positions. *The Traffic Investigator I, II and III (3.0 FTE) change is due to changes between flex positions. *The Tree Pruner II and Trainee change is due to changes between flex positions. *The Assistant Civil Engineer and Associate Civil Engineer (1.0 FTE) change is due to changes between flex positions.
*The Assistant Electrical Engineer and Associate Electrical Engineer change is due to changes between flex positions.
*The Traffic Control and Lighting Technician I, II and Trainee change is due to changes between flex positions.
397
FY2025/26 Proposed Budget

Utilities
FY2024/25
Amended
FY2025/26
Proposed Change
Accountant Auditor 1.00 1.00 -
Accounting Technician 5.00 5.00 - Administrative Analyst 32.00 32.00 - Administrative Assistant 1.00 1.00 - Administrative Technician 13.00 14.00 1.00 Assistant Civil Engineer 13.00 14.00 1.00 Assistant Director 1.00 1.00 -
Assistant Electrical Engineer 1.00 1.00 - Assistant Water Cross Connection Control Specialist 4.00 4.00 - Associate Civil Engineer 12.00 12.00 - Blacksmith Welder 1.00 1.00 -
Business Services Manager 1.00 1.00 - Claims Collector 1.00 1.00 -
Construction Inspector II 1.00 2.00 1.00 Construction Inspector III 1.00 1.00 - Customer Service Representative 27.00 26.00 (1.00) Customer Service Specialist 7.00 8.00 1.00 Customer Service Supervisor 4.00 4.00 - Development Services Technician II 2.00 2.00 - Development Services Technician III 1.00 1.00 - Director of Utilities 1.00 1.00 - Electrical Design Technician 1.00 1.00 - Electrician 10.00 10.00 -
Electrician Supervisor 2.00 2.00 - Engineering Manager 1.00 1.00 - Engineering Technician II 2.00 2.00 - Engineering Technician III 1.00 2.00 1.00 Executive Director SAC CCOMWP 1.00 1.00 - General Repair Worker - 1.00 1.00 Generator Technician 5.00 5.00 - Governmental Affairs Manager - 1.00 1.00 Instrument Technician I 3.00 4.00 1.00 Instrument Technician II 8.00 8.00 - Instrumentation Supervisor 1.00 1.00 - IT Supervisor 2.00 2.00 -
Junior Engineer 2.00 1.00 (1.00) Junior Plant Operator 11.00 11.00 - Machinist 16.00 16.00 -
Machinist Helper 16.00 16.00 -
Machinist Supervisor 4.00 4.00 - Media and Communications Specialist 1.00 1.00 - Met
er Reader 4.00 4.00 -
Meter Reading Supervisor 1.00 1.00 - Office Specialist 2.00 2.00 -
Personnel Transactions Coordinator 1.00 1.00 - Plant Operator 35.00 35.00 -
Process Control Systems Specialist 7.00 7.00 - Program Manager 7.00 6.00 (1.00) Program Specialist 16.00 16.00 -
Public Information Coordinator 1.00 1.00 - Senior Accountant Auditor 1.00 1.00 - Senior Electrician 3.00 3.00 -
Senior Engineer 20.00 20.00 -
398
FY2025/26 Proposed Budget

Utilities (continued)
FY2024/25
Amended
FY2025/26
Proposed Change
Senior Engineering Technician 1.00 1.00 - Senior Generator Technician 2.00 2.00 - Senior Maintenance Worker 3.00 2.00 (1.00) Senior Personnel Transaction Coordinator 1.00 1.00 - Senior Plant Operator 17.00 17.00 - Senior Staff Assistant 5.00 5.00 - Senior Store Keeper 1.00 1.00 - Storekeeper 4.00 4.00 -
Stores Administrator 1.00 1.00 - Student Trainee 0.18 0.18 -
Supervising Construction Inspector 1.00 1.00 - Supervising Engineer 7.00 7.00 - Supervising Financial Analyst 1.00 1.00 - Supervising Generator Technician 1.00 1.00 - Supervising Plant Operator 8.00 8.00 - Supervising Water Quality Chemist 1.00 1.00 - Support Services Manager 1.00 1.00 - Utilities Locator 9.00 7.00 (2.00) Utilities Operations and Maintenance Leadworker 75.00 78.00 3.00 Utilities Operations and Maintenance Manager 2.00 2.00 - Utilities Operations and Maintenance Serviceworker 91.00 98.00 7.00 Utilities Operations and Maintenance Serviceworker Apprentice 4.00 - (4.00) Utilities Operations and Maintenance Superintendent 8.00 8.00 - Utilities Operations and Maintenance Supervisor 19.00 19.00 - Utility Construction Coordinator 2.00 2.00 - Utility Services Inspector 2.00 2.00 - Water Conservation Representative 3.00 3.00 - Water Conservation Specialist 4.00 4.00 - Water Cross Connection Control Specialist 1.00 1.00 - Water Quality Chemist 5.00 5.00 - Water Quality Lab Technician 4.00 4.00 - Total 599.18 607.18 8.00
*The Assistant Civil Engineer and Junior Engineer change is due to changes between flex positions. *The Instrument Technician I, II (1.0 FTE) change is due to changes between flex positions. *The Utilities Operation and Maintenance Serviceworker and Serviceworker Apprentice (4.0 FTE) change is due to changes between flex positions.
399
FY2025/26 Proposed Budget

Youth, Parks, & Community Enrichment
FY2024/25
Amended
FY2025/26
Proposed Change
Accounting Technician 2.00 3.00 1.00 Administrative Analyst 10.00 10.00 - Administrative Assistant 1.00 1.00 - Administrative Officer 5.00 5.00 - Administrative Technician 4.00 4.00 - Aquatic Specialist 1.80 1.80 -
Aquatics Recreation Coordinator 4.00 4.00 - Aquatics Recreation Supervisor 2.00 2.00 - Assistant Camp Caretaker 0.35 0.35 - Assistant Camp Chef 1.03 1.03 - Assistant Camp Sacramento Supervisor 1.00 1.00 - Assistant Director 1.00 1.00 -
Assistant Pool Manager 10.80 10.80 - Associate Landscape Architect 3.00 3.00 - Associate Planner 1.00 1.00 -
Building Monitor 13.96 13.96 -
Camp Aide 5.00 5.00 -
Camp Caretaker 0.50 0.50 -
Camp Chef 1.50 1.50 -
Camp Host 0.50 0.50 -
Camp Program Director 1.99 1.99 - Camp Recreation Leader 1.70 1.70 - Camp Sacramento Supervisor 1.00 1.00 - Cashier (Aquatics) 5.85 5.85 -
Chief Animal Control Officer 1.00 1.00 - Community Center Attendant I 2.00 2.00 - Contract and Compliance Specialist 1.00 1.00 - Crew Leader (Landscape and Learning) 6.80 6.80 - Custodial Supervisor 1.00 1.00 - Custodian II 16.60 15.80 (0.80)
Customer Service Assistant 9.60 8.40 (1.20) Customer Service Representative 10.00 10.00 - Customer Service Specialist 1.00 1.00 - Customer Service Supervisor 1.00 1.00 - Director of Youth, Parks & Community Enrichment 1.00 1.00 - General Repair Worker 1.00 1.00 - Graduate Student Trainee 0.80 - (0.80) Graphic Designer 1.00 1.00 -
Graphics Assistant 1.00 1.00 -
Irrigation Technician 5.00 5.00 - Junior Landscape Assistant 2.00 2.00 - Junior Plant Operator 3.00 3.00 - Lifeguard 17.40 17.40 -
Park Equipment Operator 1.00 1.00 - Park Maintenance Manager 1.00 1.00 - Park Maintenance Superintendent 2.00 3.00 1.00 Park Maintenance Worker 36.00 26.00 (10.00) Park Maintenance Worker I 23.00 23.00 - Park Maintenance Worker II 43.00 43.00 - Park Maintenance Worker III 5.00 5.00 - Park Plan Design and Development Manager 1.00 1.00 - Park Safety Ranger 10.00 10.00 -
400
FY2025/26 Proposed Budget

Youth, Parks, & Community Enrichment (continued)
FY2024/25
Amended
FY2025/26
Proposed Change
Park Safety Ranger Assistant 2.00 2.00 - Park S
afety Ranger Supervisor 2.00 2.00 - Parks Supervisor 7.00 7.00 -
Plant Operator 1.00 1.00 -
Pool Manager 6.05 6.05 -
Program Coordinator 48.95 48.45 (0.50) Program Coordinator (Adaptive Recreation) 3.00 2.00 (1.00) Program Coordinator (Older Adults) 6.40 6.40 - Program Developer 19.00 19.00 -
Program Developer (Older Adults) 2.00 2.00 - Program Leader 11.95 7.55 (4.40)
Program Manager 1.00 1.00 -
Program Specialist 4.00 3.00 (1.00) Program Supervisor 17.00 17.00 -
Program Supervisor (Older Adults) 2.00 2.00 - Recreation Aide 160.06 157.40 (2.66)
Recreation Aide (Older Adults) 7.05 7.05 - Recreation General Supervisor 3.00 3.00 - Recreation Leader (Adaptive Recreation) 5.48 5.05 (0.43) Recreation Manager 3.00 3.00 -
Recreation Superintendent 4.00 4.00 - Senior Accounting Technician 3.00 2.00 (1.00) Senior Landscape Architect 1.00 1.00 - Senior Lifeguard 21.70 21.70 -
Senior Planner 1.00 1.00 -
Senior Recreation Aide 30.21 26.71 (3.50) Senior Recreation Aide (Older Adults) 5.64 5.64 - Staff Assistant 1.00 - (1.00) Student Trainee (Most Majors) 2.40 - (2.40) Supervising Landscape Architect 1.00 1.00 - Support Services Manager 1.00 1.00 - Utility Worker 11.10 6.10 (5.00)
Youth Aide 30.70 28.52 (2.18)
Total 709.87 674.00 (35.87)
401
FY2025/26 Proposed Budget

402
FY2025/26 Proposed Budget

28 SECTION - 28
Multi-Year Projects
403
FY2025/26 Proposed Budget

404
FY2025/26 Proposed Budget

DESCRIPTION
This section contains information on operating grants and projects. New operating grants and projects are approved by Council and are managed in accordance with Sections 10 through 12 of the Budget Resolution. New appropriations included in the FY2025/26 Operating Budget are included on Schedule 9.

EXISTING OPERATING GRANTS
The following is a list of existing operating grants, the total budget, and available budget based on data available as of April 2025:

Project
Description Project #
Total
Budget
Available
Budget
General Fund
2016 AFG Source Capture Grant G12902500 55,943 0
2023 AFG G12904000 129,544
129,544
C19-Great Plates Emerg Food G02610300 0 0
CalVIP - GPITF G02000700 124,700 0
CalVIP Cohort 3 Grant 2020-23 G02000710 127,158 69,554
FY15/16 OHV Grant G11015100 6,459 (0)
FY16 Adaptive Sports G19100400 20,922 0
FY19 - ASES - SCUSD G19041290 20,885 0
FY2016/17 OHV Program G11015118 16,711 0
FY2017/18 State OHMVR Grant G11015119 14,613 0
FY2019/20 S.A.V.E. Program G11012419 15,404 (0)
FY2020/21 SAVE GRANT G11012420 17,413 4,360
FY23 SAVE Grant G11012423 16,787 16,787
FY24 GO-Biz Equity Grant G02420700 750,000 513,026
HHAP Homeless Grant Program G02000950 880,000 0
LGBTQ+ Historic Experience G21000800 34,400 34,400
Youth RIV Grant FY19-23 G02001300 24,570 6,000
General Fund Total 2,255,509 773,672
Measure U
2016 AFG Source Capture Grant G12902500 390,000 3,801
CalVIP Cohort 3 Grant 2020-23 G02000710 154,838 60,611
FY23 - SCUSD ASES G19041340 25,945 1
Measure U Total 570,783 64,413
Enterprise Funds
RW Efficiency Acceleration GP G14110200 265,543 148,349 Enterprise Funds Total 265,543 148,349
Other Funds
2016 AFG Source Capture Grant G12902500 723,071 0
2017 CHP (2017-ULWX-0028) G11017000 1,875,000 0
2017 Urban Search & Rescue G12501700 1,254,520 433
2018 OTS BIKE/PED (PS18013) G11016300 75,000 3,886
2019 OTS STEP (PT19103) G11016219 403,304 40,483
2019 UASI G11016919 2,687,737 0
2020 AFG COVID-19 Supplemental G12903000 174,531 25,393 2020 OTS STEP (PT20148) G11016220 375,000 157,359
2020 UASI G11016920 2,894,500 (8,592)
2020 Urban Search and Rescue G12502000 1,270,549 0
2021 CHP Grant G11017021 1,875,000 491,128
405
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
Other Funds (continued)
2021 UASI G11016921 3,097,000 (11,056)
2021 Urban Search and Rescue G12502100 1,514,228 107,910 2022 JAG G11017822 258,140 0
2022 SHSGP G12903600 140,000 1,908
2022 Urban Search and Rescue G12502200 1,490,627 230,289 2023 UASI (2023-0042) G11016923 3,097,000 2,926,384
2023 Urban Search and Rescue G12502300 1,422,956 95,747 2024 NSP Capacity Building G11018800 500,000 500,000
2024 Urban Search and Rescue G12502400 1,459,884 1,194,520 2025 STEP (PT25216) G11016225 400,000 400,000
Annual Funds for CA-TF7, US&R G12501900 1,249,568 0
AR Floodplain & Side-Channel G14140400 1,662,598 1,310
ASPCA Grants G21002300 16,000 4,005
Brownfields Revolving Loan G02180100 750,000 363,380
BSCC Officer Wellness G11018700 480,297 480,297
C19-Great Plates Emerg Food G02610300 19,777,029 665,574 C19-Homeless Response Prgm G02001700 252,552 (0)
C19-US DOJ CESF G02610400 795,286 518,584
CA Healthy Rivers Prop 68 G14140800 131,680 19,844
CA OPR - South Sac Fam-Youth G02000440 2,000,000 0
CAC State and Local Partnershi G17606000 43,250 8,379
CalCompass Grant G19090910 350,000 9,611
CalGRIP Safe Comm 4/10-3/12 G11007100 382,639 2,196
California Local Equity Grant G02420100 1,197,120 12
CalRecycle SB 1383 Local Assis G15003300 1,349,680 1,349,680 CalVIP - GPITF G02000700 868,700 467,883
CalVIP Cohort 3 Grant 2020-23 G02000710 2,718,004 887,993 CERT Support Grant Program G12903500 15,000 352
Champlain Tower Collapse G12704800 127,631 0
Citizens Option G11018100 276,143 12,447
Citizens Option G11018400 339,210 338,285
Citizens Option - Growth G11018500 326,221 326,221
City/County Fine=Fee Justice G02002000 50,000 32,129
CNRA - Cmnty Reinvst Proj. G02000420 2,089,582 2,058,090 Community Benefit Partnership G02000610 125,000 105,000 CY20 Curbside Supplemental Pay G15312000 177,095 138,601 CY21 Curbside Supplemental Pay G15312100 154,089 152,669 CY22 Curbside Supplemental Pay G15312200 129,848 79,848 CY23 Curbside Supplemental Pay G15312300 131,564 131,564 DEL ORO - TRIPLE R SUBSIDY G19090900 6,000 0
ECE Workforce Training Program G02180340 394,000 132,987 ECE Workforce Training- SBA G02180360 850,000 635,729
Economic Mobility Ambassadors G02002200 400,000 316,606 EJG2G Neighborhood Resilience G15250100 981,042 36,618
ERF 3-R Street to Housing G02610610 5,846,243 201,055
ERF4L Community Response Grant G23000200 8,885,636 8,885,636 FIRE FY05 HOMELND SECURITY2541 G12901000 95,169 1
FitLot_AARP_Grant G19090800 7,020 7,020
FY 2021 JAG G11017821 248,731 0
FY 2021/22 ABC Grant G11017222 97,500 2,150
FY15/16 OHV Grant G11015100 24,351 0
FY16 Adaptive Sports G19100400 70,967 0
FY1617 Citizen's Option Growth G11016700 294,826 2,557
FY17 OTS - Bike/Ped G11015500 125,425 22,476
FY18 Citizen's Option G11016800 754,331 7,924
FY18 Citizen's Option Growth G11017400 367,710 67,155
FY18 JAG (2018-DJ-BX-0855) G11017500 252,397 7,916
FY18/19 Citizen's Option Grwth G11018000 426,297 22,890 FY19 - ASES - SCUSD G19041290 139,230 0
406
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
Other Funds (continued)
FY19 Citizen's Option G11017300 740,696 0
FY19 JAG (2019-DJ-BX-0685) G11017800 246,833 1,644
FY20 CitzOpt Growth G11017920 436,881 0
FY20 JAG (2020-DJ-BX-0740) G11017820 220,111 6,603
FY2016/17 CITY LE GRANT (BSCC) G11015900 168,138 161,209 FY2016/17 OHV Program G11015118 48,037 4,780
FY2017/18 State OHMVR Grant G11015119 23,746 612
FY2019/20 S.A.V.E. Program G11012419 100,600 15,627
FY2020 ABC Grant G11017220 100,000 27,324
FY2020/21 ABC GRANT G11017221 64,429 (10,444)
FY2020/21 SAVE GRANT G11012420 174,134 (506)
FY20-21 City-County Payment G15302100 125,152 95,152
FY2021 OTS STEP G11016221 385,000 155,450
FY21 DBW BSEE G11018300 22,001 5,814
FY21-22 City-County Payment G15302200 127,305 37,305
FY22 - EEMI G02002100 95,000 41,012
FY22 - WIOA G19090220 83,640 7,972
FY22 DCC Grant G02420400 5,786,617 4,823,301
FY22 OTS STEP (PT22190) G11016222 400,000 217,617
FY22 UASI G11016922 3,097,000 528,946
FY22-23 City-County Paymen G15302300 128,873 1,833
FY23 - SCUSD ASES G19041340 172,961 0
FY23 - WIOA G19090230 89,216 16,002
FY23 ABC G11017223 75,000 33,379
FY23 Go-Biz Equity Grant G02420600 1,563,723 0
FY23 OTS STEP (PT23162) G11016223 390,000 218,476
FY23 SAVE Grant G11012423 167,870 14,718
FY23-24 City-County Payment G15302400 129,707 16,867
FY24 - SCUSD ASES G19041350 172,961 181
FY24 - WIOA G19090240 222,263 631
FY24 GO-Biz Equity Grant G02420700 1,250,000 0
FY25 - WIOA G19090250 222,263 127,337
Gang Violence Supp - Parent G11017600 475,322 475,322
Hawaii Wildfires G12705600 178,500 38,328
HHAP 2 G02000960 388,111 32,249
HHAP 3 G02000970 (33,990)
HHAP Homeless Grant Program G02000950 12,715,816 0
Homeless Emergency Aid Program G02000820 154,562 4,562
Hurricane Fiona Deployment G12705300 63,000 28,432
Hurricane Florence G12703700 1,123,200 240,339
Innovation Grant 2019 G21002000 75,000 0
Innovations Grant Program G11017700 134,186 97,717
JAG 10/08-9/12 G11006518 614,921 0
Kentucky Floods Deployment G12705200 84,000 5,236
KY Tornados G12705100 23,206 1
Legacy Disposal Site Abatement G15003100 750,000 644,453 LGBTQ+ Historic Experience G21000800 66,667 0
Marysville & Grand - EPA Grant G02180110 800,000 799,962 Meadowview Farmers Market G02180350 500,000 4,133
More Pets and People Together G21002523 165,215 41,271
NEA ARP Grant G17608000 487,500 0
NEA Arts Collective Grant G17607000 75,000 45,000
Neighborhood Equity Initiative G02180320 300,000 0
New Mexico Wildfire Deployment G12705800 49,000 (22,588) NLCI's Youth Excel Initiative G19080700 158,820 6,460
Northeast Sacramento G02001200 300,000 6,642
OED ARPA Grant G17609000 4,200,000 172,769
OTS FY18 STEP (PT18072) G11016200 567,331 182,357
OTS FY2024 STEP (PT24166) G11016224 400,000 202,418
407
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
Other Funds (continued)
OTS Grant G12904200 165,000 1
Petco Innovation Showdown G21001800 250,000 50,285
Petco Love 2024 G21002800 80,000 32,456
PS Charities Adoption Prep G21002900 30,000 30,000
Puerto Rico Earthquake G12704200 34,019 1
RW Efficiency Acceleration GP G14110200 148,350 0
SacDA eSCARS G11018900 44,881 6,636
Sanitation Grant G02000900 150,000 0
SHRA IPA (B -18-MC-06-0003) G02180200 60,000 4,700
SLP-23-20672-100 G17606100 70,800 67,800
SLP-24-24881-100 G17606110 62,959 62,959
Solar Permitting Platform G21008000 100,000 72,544
Street Soccer USA Project G02000410 800,000 0
SYW_BSCC Prop 64-3 G19080800 2,999,915 1,612,268
SYW_BSCC Prop. 64-2 G19080600 999,555 1,285
Tropical Cyclone Dorian G12704000 623,200 97,086
Tropical Cyclone Douglas G12704100 525,400 230,077
Tropical Cyclone Ida G12705000 66,000 36,073
Tropical Cyclone Idalia G12705700 49,000 31,033
Tropical Cyclone Laura/Marco G12704400 31,558 0
Tropical Cyclone Zeta G12704600 15,400 3,289
Tropical Storm Debby G12705900 73,500 73,500
UASI Hmland Sec 07 11/07-6/10 G11005700 3,336,000 (0)
UCDavis Grants G21002500 5,000 0
USDA Urban Forest Grant G15252000 1,000,000 832,523
Used Oil Payment Program-OPP14 G15003040 69,303 38,103
Vermont Flooding G12705500 49,000 19,869
Youth RIV Grant FY19-23 G02001300 999,780 (37,669)
Youth Service Corps G02180370 2,874,428 2,756,088
Other Funds Total 142,813,270 40,199,283
Total All Funds 145,905,104 41,185,717
408
FY2025/26 Proposed Budget

EXISTING OPERATING PROJECTS
The following is a list of existing operating projects, the total budget, and available budget based on data available as of April 2025:

409
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
General Fund (continued)
Gang Prev & Intervention - GF I02000600 547,191 177,483 Homeless Housing Initiative I02000200 874,620 487,456
Illegal Dumping I15200200 1,856,860 600,000
Impact Teams I11002400 4,587,221 (11,085)
JFN Emerg. Home Rpr. Pilot I21000700 200,000 0
Justice for Neighbors (JFN) I03000100 2,606,518 1,194,177 Language Access Program I02000410 250,000 250,000
Low Income Spay/Neuter Program I13000600 656,396 9,091
Major League Soccer I80020500 549,000 3,715
Mayor's Office LT Positions I01002500 568,720 224,135
Measure U Committee Initiative I80010000 25,000 0
Mental Wellness Program I11002600 568,850 262,938
Nextgen Mobile Computer Repl. I11000100 1,291,292 (0)
Northgate Blvd. PBID I02186000 68,000 17,442
Oak Park Clinic Building Maint I19101100 326,007 325,007 Oak Park Community Enhancement I19708000 117,103 17,144 Oak Park Rev. Fund Loan Prog. I02423100 1,100,000 0
OCM - Cannabis Program I06420000 18,766,766 18,766,516
Office of Violence Prevention I11003000 169,881 164,881 Park Safety I19160000 431,529 296,601
PDIT Critical Infrastructure I11002700 2,005,083 1,011,422 Police Observation Dvcs (PODs) I11002300 197,804 (23,820) RASA Support I80005010 1,500,000 702,718
Respite Centers Program I23002000 500,729 135,272
Sac Zoo Relocation Study I02002100 275,000 64,545
Sacramento Riverfront I02180200 309,638 0
SEED Corporation I18000200 50,083 15,614
ShotSpotter I11002500 1,402,692 (6,292)
Stockton Blvd Housing Dvlpmnt I02189010 5,000,000 0
Summer Night Lights I02000700 300,000 0
Summer Night Lights I11002100 600,000 0
Supplemental Waste Programs I15230000 792,976 0
SVS Operations and Mgmt I15001000 1,567,752 519,149
Thousand Strong (ETP Pilot) I01000300 345,902 1
Training and Outreach I08000300 3,738,334 2,590,540
Truth, Reform, & Recon Project I01140100 320,000 320,000 UTILITY RATE ASST PRGM I14130100 210,047 (35)
Webgrant Restructuring Project I07000900 1,669,558 53,344 Whole Person Care I02000900 19,006 1
Wong Center Senior Housing I02189020 2,796,005 0
Youth Pop Up Events I19143100 2,721,000 211,000
Youth Services Program I19140000 25,000 0
General Fund Total 104,948,650 46,166,073
Measure U
13th / C Housing I02189060 600,000 600,000
CA Rural Legal Assistance I02000800 1,750,000 0
City Manager Youth Programs I80020800 250,000 170,734
Commission Stipends I04000100 24,750 24,750
Community CTR/CH Fee Waiver I19146000 300,000 79,171
Community Response I23000100 7,903,911 7,801,493
Cultural and Economic Vitality I17001000 6,431 6,431
Cultural Arts Awards I17000700 1,178,000 660,477
Digital Equity I07001100 600,000 400,000
EBCVIDS (DRIP) I11003200 309,067 309,067
ED Initiatives I02181000 500,000 209,035
Fare Free Transit for Youth I02181400 4,000,000 250,000 Financial Empowerment I02182000 300,000 0
Fire - DOR Program I12000200 609,895 609,895
Forgivable Loan Program I02180400 1,233,990 0
410
FY2025/26 Proposed Budget

411
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
Enterprise Funds (continued)
Sacramento River Source Water I14520300 1,183,894 357,112 SAFCA LEVEE MAINTENANCE I14120300 43,281 7,849
SCADA Planning Program I14010900 403,409 305,615
Sewer System Mgmt Plan I14110100 2,977,226 823,678
SOLID WASTE OUTREACH I14120200 3,868,834 852,699
SSMP Eng/Regulatory Support I14620100 544,545 237,696
Storm Drainage Planning & Mgmt I14100000 2,250,000 2,250,000 SVS Operations and Mgmt I15001000 1,526,000 78,719
SW CONTAINER REPLACEMENT I14120500 1,929,458 1,875,002
Wastewater Planning Prog I14610200 933,492 801,397
WATER CONSERVATION I14120400 642,368 553,133
WATER MASTER PLAN PROGRAM I14510200 283,284 211,053
Water Meter Replacement Prgm I14010500 7,315,820 (0)
Enterprise Funds Total 58,428,424 21,976,202
Other Funds
13th / C Housing I02189060 1,400,000 1,400,000
2021 CHP Grant I11002900 4,044,804 (12,634)
65th Street Impact Fee Program I06000600 1,008,228 61,228 905 S Street I21006600 318,975 264,042
Alchemist CDC Site Acquisition I02180610 900,000 0
American River Source Water I14520400 969,800 529,279
Animal Svcs for Homeless Resp I21008500 529,520 (8,868) APP Maintenance I17000500 276,462 164,890
ARPA Grant Liaison Consulting I02612060 1,049,943 10,185 Arts & Creative Economy Prog I17609000 125,001 125,001
Arts and Cultural Equity Grant I17000600 500,000 14,988 Arts Ed and Community Outreach I17001100 310,180 72,380 Basin 6 Drainage I22200600 7,096,296 466,531
BONDED CFD/AD APPLICATIONS I22310100 2,555,317 516,403
BRLF Program Income I02180800 1,775,758 1,052,860
Busins Complnc Unit Night Team I21000400 1,473,669 304,128 CENTRAL CITY FEE DISTRICT I06132110 275,000 158,957
City Hall Tech Program I02001500 304,197 0
Citywide Strategic Plan Pjt, I02000400 20,000 250
Code Service Homeless Rsp Team I21000500 205,683 7,875
COLLEGE SQUARE REIMBURSEMENT I22310200 30,000 13,800
Commission Stipends I04000100 1,001 1,001
Community Response I23000100 971,351 971,351
CONJUNCTIVE USE-GRNDWTR WELLS I14510100 500,000 500,000 CORE I02420000 (1,050,000) 0
Council-Led Strategic Init. I01002200 250,000 250,000
County COVID-19 Testing & Vac I12000100 398,363 72,354
Creative Economy Pilot Project I18000300 500,000 14,431 CRF/LARP Grants I19101400 450,000 450,000
CSS Management Plan I14630200 46,776 46,776
Cultural and Economic Vitality I17001000 36,000 35,000
Cultural Arts Awards I17000700 250,000 22,255
D1-Youth Workforce Program I19142000 100,000 58,349
Delta Shores Fee District I06132130 3,466,119 951,064
Developmnt Software Maintenanc I21000800 1,550,000 912,287 Digital Equity I07001100 250,000 0
ELOP Program I19150000 1,380,829 1,122,271
Enhanced Infrastructure (EIFD) I02000520 465,000 65,092 ESC Art Maintenance I17000400 189,516 129,516
F.O.C.A.S. (13086) I13000400 3,005,110 334,629
Fairytale Town Expansion I17006100 1,800,000 0
Financial Empowerment I02182000 2,205,000 140,002
Fire Opioid Settlement I12000300 1,687,394 1,588,371
FLOOD CONTROL PLANNING I14010100 56,202 0
412
FY2025/26 Proposed Budget

Project
Description Project #
Total
Budget
Available
Budget
Other Funds (continued)
Forgivable Loan Program I02180400 1,751,500 1,626,500
FY23 Affordable Housing I02189050 0 0
FY24 ELOP Program I19150100 1,428,625 561,585
FY25 - ELOP Program I19150200 1,428,625 685,822
Gang Prev & Intervention - GF I02000600 7,500 0
General Plan Update I22000000 14,148,601 906,543
Gobler-Park Trust Cold Storage I17009100 32,500 32,500
Grant HS Quadrangle I02187000 200,000 200,000
Hart Trust Proj Fund - FY22-26 I19122000 205,763 205,763 Health & Wellness Program I08000200 3,000 3,000
Homeless & Community Outreach I23004000 4,418,571 4,418,571 Homeless Housing Initiative I02000200 5,240,589 228,402 Illegal Dumping I15200200 638,660 (0)
Inclusive Business Assistance I02612040 2,230,414 0
Inclusive Economic Development I02180900 3,000,000 2,699,000 JCPA ADMINISTRATIVE CTRL 3131 I22205100 653,869 80,379
Kaiser Railyards Med. Complex I21006700 895,295 709,252 Keep Our Waters Clean Outreach I14520200 26,698 19,016
KIDS PLAY MC KINLEY-MAINT 4711 I19000800 12,870 7,151
Major League Soccer I80020500 600,000 600,000
MBI I02180700 995,400 393,912
Measure L Youth Funding I80000100 19,024,500 19,024,500 N NATOMAS ADMIN CONTROL I22200100 16,897,844 1,579,775
NATOMAS CENTRAL CFD 2006-02 I22340000 100,000 55,692
NATOMAS LANDING CFD2008-01 I22310500 64,500 55,221
NATOMAS MEADOWS CFD I22310000 62,000 42,329
NEIGH PARK MAINT CFD 4815 I22300000 598,056 77,300
NN Youth Workforce Dev Prog I19145000 191,000 110,799
NON-BONDED SERVICE DIST APPLS I22300100 803,986 82,713
North Area Economic Recovery I02612090 75,000 75,000
Northgate Economic Recovery I02612080 221,462 215,608
NPDES STORMWATER PRGM I14010200 0 0
NSacto Code Enforce. &Outreach I21000600 450,000 433,574 Oak Park Rev. Fund Loan Prog. I02423100 1,108,197 1,108,197 PANHANDLE ANNEXATION 4811 I22209000 124,990 3,466
PBID/BIA APPLICATIONS I22310600 45,000 20,815
PDIT Critical Infrastructure I11002700 43,797 43,797
PROJECT PONY 2112 I11001900 6,600 5,202
RAILYARDS FEE DISTRICT I06132100 2,193,000 108,863
Regional Community Policing In I11001600 49,871 3,545
RIVER DISTRICT FEE DISTRICT I06132120 178,224 62,943
Sac Ent. Dev. Academy Ph1 I02183000 475,000 228,006
Sacramento Canopy Hotel I21006400 (0)
Sacramento Econ Gardening 3yr I02184000 3,730,875 1,456,835 Sacramento Innovation Grant I18000100 4,970,709 461,014 SACRAMENTO RAILYARDS 2006 FINP I22208000 740 1
Sacramento River Source Water I14520300 918,700 247,882 Sacramento Riverfront I02180200 12,379 0
SAFCA LEVEE MAINTENANCE I14120300 7,355,938 1,491,797
SOLID WASTE OUTREACH I14120200 737,041 (5,001)
SPD TRAINING FACILITY 2157 I11002000 46,700 58
Stockton Blvd Anti-Displacemnt I02189030 60,000 0
Telegrapher I21006500 490,445 446,735
TMA SHUTTLE I22200700 1,318,200 192,000
Transportation Planning MYOP I15221700 1,000,000 681,642 Vaccine Outreach and Education I02612050 1,000,000 12,248 Wastewater Planning Prog I14610200 29,203 29,203
Water Forum 2.0 I80240100 1,141,000 48,676
WATER MASTER PLAN PROGRAM I14510200 1,026,847 1,020,168 413
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EXTERNALLY FUNDED PROGRAMS
The following is a list of existing externally funded programs, the total budget, and available budget based on data available as of April 2025:

Project
Description Project #
T
otal
Budget
Available
Budget
General Fund
Powerhouse Science Center E18000400 3,000,000 0
Railyards Project Management E02000100 496,353 263,450
General Fund Total 3,496,353 263,450
Measure U
Powerhouse Science Center E18000400 1,800,000 600,000
Measure U Total 1,800,000 600,000
Internal Service Funds
Driver Training Acadmy (SRDTA) E08000100 1,635,573 452,425 Robla Facility Safety Training E08000200 1,500 1,500
Internal Service Funds Total 1,637,073 453,925
Other Funds
2023/2024 CA-TF7 US&R MOBEX E12000300 519,000 128,311
Academy Activities 7/07-6/11 E11002200 1,003,859 100,599 AFSCME - Anti-Displacement E02000120 5,000,000 3,660,000 AM/PM POD E11007132 15,000 2,544
CA TF7 Mobex 2022 E12000200 150,000 150,000
Clean CA Beautification Rt 99 E17001100 115,100 0
DMV ANTI-AUTO THEFT E11005400 (61,563) (64,688)
Federal Forfeiture - DOT E11006900 17,129 0
Federal Forfeiture - Justice E11008300 62,284 62,284
Federal Forfeiture - Treasury E11008200 331,952 331,952 Federal Forftr - DOT E11003200 1,099,987 2,917
FY15 AB109/RCISP E11006400 147,080 76,115
Los Rios Vocational Trng E11006500 830,625 830,625
Phoenix Park PODs E11007125 36,685 7,328
PODs - Arden Fair Assoc. E11007118 68,000 4,193
PODs - Beazer Homes & The Cove E11007129 15,699 2,797
PODs - Housing Authority E11007127 19,850 7,123
PODs - Jackson Lab E11007120 48,256 19,367
PODs - MO Florin West E11007121 9,000 115
PODs - Power Inn Alliance E11007131 27,996 9,313
PODs - RT E11007128 37,500 12,221
PODs - Stockton Blvd Patnshp. E11007130 7,340 3,012
PODs - Stockton Blvd Prtnshp E11007119 13,820 1,205
PODs - The Cove E11007124 36,700 8,797
PODs Arden Fair FY2020 E11007122 42,500 42,500
PODs MO Capital Nursery E11007123 6,000 0
PODs Providence Place E11007126 16,657 5,968
Police Observation Devices E11007100 98,712 6,372
Powerhouse Science Center E18000400 6,650,000 400,000
SAR-Smart Growth Program E01000100 15,000 0
State Forfeiture - H & S E11008000 1,736,580 1,715,007
State Forfeiture - Hlth & Sfty E11006718 1,089,722 145
State Forfeiture Drug&GangPrev E11006818 160,522 58,205 State Forfeiture Drug&GangPrev E11008100 528,655 523,655 State Forftr - Hlth & Sfty E11002800 4,415,816 154
VOCATIONAL ED TRAINING - FIRE E12000100 6,997,041 1,255,322 Other Funds Total 31,308,504 9,363,459
Grand Total 38,241,930 10,680,835
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29 SECTION - 29
Financial Policies

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Budget Control Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents
Purpose
Background
Policy

3.1 Annual Budget Development

3.2 Budget Amendments

Related Regulatory References
Council Motion 2016-0121

Effective Date: April 26, 2016

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Budget Control Policy

1. PURPOSE
The purpose of this policy is to ensure the City makes informed fiscal decisions that take into account the full costs, in terms of dollars and service impacts, of implementing spending increases during the fiscal year. To maintain a structurally balanced budget, any spending increases must be accompanied by compensatory revenue increases or spending decreases that clearly identify the associated opportunity costs.

2. BACKGROUND
The service plan for the City is based on an annual budget as required by the City Charter and by good financial and operational practices. Budgeting on an annual basis provides time to review all revenue sources, develop solutions to previously identified problems, and to discuss and decide on policies and priorities. An annual budget process also provides time for management to plan and more efficiently and effectively implement changes incorporated into the budget. Making significant mid- cycle changes outside of the orderly budget process can lead to poor decision- making due to incomplete information and to inefficient and ineffective operations or service delivery.

3. POLICY

3.1 Annual Budget Development :

The annual budget process will be the method used by the City to develop its service delivery priorities and the level and type of resources required to fund those services.

Before the City undertakes any changes that would create fixed ongoing expenses, the cost implications of such changes will be projected for current and future years.

3.2 Budget Amendments:

Changes to the budget and to service levels during the fiscal year will be minimized.

Changes during the fiscal year will generally be limited to technical adjustments, emergency funding, unforeseen circumstances, time- sensitive opportunities or issues, or new grants or awards. The creation of a new program, a higher service level, or other increases in expenditures, without associated revenues or reimbursements, during mid-budget cycle is discouraged. Changes outside of the annual budget process should only be considered during the midyear budget review.

Unexpected revenue shortfalls or other significant issues that may create a budget shortfall during the fiscal year are to be reported to the Council with recommendations by the City Manager as to whether a midyear budget adjustment should be made.

Budget amendments shall be considered and adopted by the Council except for where authority has been delegated as prescribed within the adopted Budget Resolution.
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Debt Management Policy

Scope: CITYWIDE

Administrative Entity
Office of the City Treasurer
(916) 808-5168
[email protected]

Table of Contents

Regulatory References
Council Resolution 2023-0111

Effective Date: May 02, 2023

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Debt Management Policy

1. Introduction

1.1 Background. The City of Sacramento (the “ City”) has a long history of issuing multiple types of debt and working with various residents, businesses, developers, and government agencies to achieve the most -effective financing solutions for necessary capital projects and capital improvements. Debt issuance is one way of financing these projects and improvements in a cost -efficient manner while maintaining generational equity. With its limited fiscal reso urces, the City will continue to explore the issuance of debt as an equitable means of meeting its infrastructure needs.

1.2 Purpose. This Debt-Management Policy (this “Policy”) sets forth the principles and objectives that should guide the City’s decisions to issue debt, and it establishes guidelines for responsibly managing debt. The core objectives of this Policy include the following:
(A) Minimize costs of debt service and issuance.
(B) Maintain access to cost-effective borrowing.
(C) Achieve and maintain the highest practical credit ratings of the various bond and credit types as well as the City’s overall credit rating. (D) Balance pay-as-you-go financing with debt financing. (E) Ensure full and timely repayment of debt.
(F) Maintain full disclosure and reporting with respect to debt and associated credit ratings, as well as debt that matured or were refunded/defeased within the past three years.
(G) Ensure compliance with federal, state, and local laws and regulations. (H) Promote the City’s best interests and protect the City’s financial stability when deciding whether to seek approval to issue debt and how to structure the debt. (I) Maintain internal-control procedures to ensure that the proceeds of each debt issuance are directed to the intended use.
(J) Maintain a high-level of transparency to debt stakeholders and consistency in debt decision making.

1.3 Scope of Application. This Policy applies to debt issued or incurred by the City (including debt issued by means of community facilities districts (“CFDs”) and debt the City issues for third parties – conduit financing), the Sacramento City Financing Authority, the Sacramento Public Financing Authority, and the Redevelopment 422
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Agency Successor Agency (collectively, “City Debt”). From time to time, however, compelling or extraordinary circumstances may arise that require the City Council, at the recommendation of the City Treasurer or the Debt Manager within the City Treasurer’s Office (the “Debt Manager”), to make an exception to this Policy. While there may be exceptions to this Policy, such exceptions shall not impair existing City programs, services, or staffing levels as noted in section 3.1(A) of this Policy or impair the City’s ability to satisfy existing financial obligations. Certain obligations of the City—such as Other Post -Employment Benefits and debt not involving the issuance of bonds or other long- term obligations (e.g., long-term loans obtained from the State Water Resources Control Boad)—are not subject to this Policy.

2. Governing Authority, Points of Contact, and Responsibility

2.1 Authority. The City’s debt program for all City funds must be operated in conformance with applicable federal, state, and other legal requirements, including authorizing sections of the City Charter and the City Code, and the various covenants of the City’s outstanding debt obligations.

2.2 Delegation of Authority . The City Council assigns its responsibility for managing and coordinating all activities related to the structure, issuance, and post-issuance management of all City Debt to the City Treasurer’s Office.

2.3 Point of Contact . The City Treasurer and the Debt Manager are responsible for maintaining communication to the bond market on the City’s behalf, with a policy and practice of full disclosure. This includes communication with rating agencies, bond insurers, investors, and other debt-related service providers about the City’s financial condition; the financial condition of enterprise funds that secure the repayment of enterprise revenue bonds; the financial condition of the assessment fund that secures the repayment of the assessment revenue bonds; and the relevant financial information of CFDs that secure special-tax bonds, as applicable.

As necessary, the City Treasurer or the Debt Manager will seek guidance from the City Attorney’s Office and the City’s disclosure counsel on the appropriateness of disclosing certain matters.

2.4 Responsibilities. Debt obligations may not be presented to the City Council for authorization without a joint assessment and recommendation by the City Manager’s Office and the City Treasurer’s Office, except as follows: bonds to issued through CFDs may be presented to the City Council for authorization by the City Treasurer’s Office without joint assessment and recommendation. City departments that propose debt -financed capital programs or small -equipment acquisitions must work in close coordination with the City Treasurer’s Office, the City Manager’s Office, the City Attorney’s Office, and the City ’s Department of Finance by providing information to facilitate the feasibility analysis and due- diligence process before the issuance or incurrence of debt. In preparing and reviewing bond-issuance documents and other related matters, the following roles 423
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serve as general guidance. Roles for a particular financing may differ slightly. (A) The City Treasurer’s Office—
(1) is responsible for selecting the structure, timing, method of issuance (public vs. private placement, negotiated vs. competitive sale), and other terms of debt issuance;
(2) serves as the primary contact between the City and rating agencies, investors, and all other financial market participants; (3) manages non-attorney members of the financing team (see section 4.6, “Professional Assistance”);
(4) leads the development of all necessary financing documents; (5) presents the financing structure and financing documents to the City Council for approval;
(6) manages the investment of debt proceeds in the acquisition and construction funds, bond-reserve funds, capitalized interest funds, and escrow funds;
(7) manages compliance with post -issuance requirements, including continuing-disclosure requirements (in accordance with the Supplemental Policy on Disclosure), private- activity analysis and remediation, and arbitrage requirements; and
8) conducts periodic reviews of this Policy and brings forward to the City Council any proposed amendments.
(B) The City Manager’s Office and appropriate City Departments under the City Manager’s purview—
(1) identifies and prioritizes projects through the City’s multi-year capital- improvement program;
(2) identifies sources of funds for payment of debt service; (3) identifies sources of funds for project operations and maintenance; (4) participates in document preparation and review such as, but not limited to: the preliminary and final official statements, rating agency presentations, and investor roadshows;
(5) participates in conference calls or meetings regarding the debt, e.g., due-diligence reviews, rating- agency presentations, and investor relations;
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(6) provides timely information as needed to comply with post -issuance requirements, including tracking expenditures of tax-exempt debt proceeds to comply with arbitrage requirements and annual reporting requirements; and
(7) notifies the City Treasurer’s Office before the City enters into (a) any agreements that qualify as “debt obligations” under SEC Rule 15c2-12, such as loans from non-City lenders, equipment leases, and grants; and (b) any amendments of such loans, leases, and grants.
(C) The City Attorney’s Office—
(1) provides independent verification of the City’s compliance with all applicable laws and regulations with the assistance of outside legal counsel;
(2) selects, retains, and manages outside legal counsel to assist with debt financing (e.g., bond counsel, disclosure counsel);
(3) protects the City’s interests;
(4) participates in document preparation and review; and (5) participates in conference calls or meetings regarding due- diligence review.
(D) The City Council—
(1) takes this Policy into account when, it authorizes the issuance or incurrence of City Debt;
(2) reviews and approves this Policy and, if necessary, reviews and considers the approval of recommendations to amend this Policy brought forward by the City Treasurer’s Office; and
(3) reviews and, if appropriate, approves supplemental policies that address various debt and financing instruments (if additional supplemental policies are adopted, then an amended version of Attachment A reflecting those policies must be attached to this Policy).

3. Capital Financing Considerations

3.1 Constraints. Except for debt issued through CFDs, new-money debt will affect the long-term affordability of all outstanding and planned new-money debt of the same credit type; the maintenance and operating costs of debt-financed improvements will also affect the City’s budget.
(A) The pledge of repayment implicit in the issuance of debt means that any future issuance of debt is limited; hence, when assessing the financial feasibility of financing a proposed project or acquisition, the City Council 425
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must consider (1) the total of all outstanding debt, including overlapping debt and the planned debt; (2) the City’s needs for special projects that benefit City constituents; (3) any feasibility report that has been prepared for the financing in accordance with section 3.3(A) or 3.3(B) below; (4) whether issuing debt to finance the proposed project or acquisition will necessitate reductions in the number and types of programs and services the City provides to constituents or reductions in the number of City employees; and (5) whether issuing such debt may impair the City’s ability to satisfy unfunded liabilities or other non-discretionary obligations. (B) Additionally, the necessary maintenance and operating costs of debt - financed projects will constrain the City’s budgetary flexibility and should be considered alongside debt capacity when evaluating any proposed financing.
(C) Finally, debt issuances should be coordinated with the City’s overall capital- improvement program and budget process to the extent possible.

3.2 Debt Capacity . The City’s ability to issue new -money debt is constrained by federal and state laws and regulations, the City Charter and the City Code, and the covenants of existing debt. The City Treasurer’s Office shall work to ensure that the City Council and the City Manager are aware of outstanding debt levels and of the ramifications if additional new -money debt is issued, including the additional financial constraints the City may face. As needed, the City Treasurer’s Office may perform debt -capacity analyses, with assistance by one of the City’s underwriters and one of the City’s municipal advisors, to evaluate the long- term effects of debt issuance in relation to the City’s objectives.

3.3. Feasibility. To ensure consistency with this Policy, the City Council shall not undertake or authorize the issuance or incurrence of debt—particularly new-money debt—without an assessment and recommendation of the City Manager’s Office and the City Treasurer’s Office.
(A) General-Fund or Lease- Revenue Bonds. In conjunction with the City Treasurer’s Office, the City’s Department of Finance shall prepare, for each long-term financing that will be supported by the general fund, an internal feasibility analysis (formal or informal) of the effect on current and future budgets and the City’s overall credit rating of the debt and the costs of operating the capital projects proposed to be financed. This analysis may be performed formally or informally and must also address the reliability of revenues to support debt service of outstanding general-fund obligation and general-fund lease revenue debt, as well as the proposed debt financing.

Total annual debt service for all general -fund obligation bonds and general- fund lease-revenue bonds, in each year they are outstanding, must not exceed 6% of annual budgeted general -fund revenues minus revenues that 426
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City departments generate by providing services directly chargeable to City residents and businesses. Examples of such department revenues include the Fire Department’s advanced life- support fee, the Police Department’s alarm-permitting fee, and the Community Development Department’s building permit and general plan fees. See the City Fee Database. (B) Transient Occupancy Tax Revenues. In conjunction with the City Treasurer’s Office, the City’s Department of Finance shall prepare, for each long- term financing that will be supported by special revenues, an internal feasibility analysis (formal or informal) that identifies the effect of both the financing and the operating costs of the financed capital projects on the City’s current and future budgets and the City’s overall credit rating. This analysis must also address the reliability of revenues that support debt service of outstanding special revenue debt, as well as the proposed debt financing. Projected revenues from the transient -occupancy tax (Sacramento City Code chapter

3.28) must equal or exceed 175 % of the maximum annual debt service for senior bonds and other senior parity obligations and 115% of the maximum annual debt service for all senior bonds, senior parity obligations, subordinate bonds, and subordinate parity obligations. The debt service coverage ratio of a CFD must equal or exceed 110% of the net special tax revenues (gross special tax revenues less priority administrative expenses) generated in each year the debt is outstanding.
(C) Community Facilities Districts (CFD). The debt service coverage ration of a CFD must equal or exceed 110% of the net special tax revenues (gross special tax revenues less priority administrative expenses) generated in each year the debt is outstanding, inclusive of party obligations. The value to lien ratio shall be, at a minimum, three to one (3:1) taking into account all special tax and special assessment liens applicable to the subject property. Value may be established by reference to the assessed value of the subject property as determined by the Sacramento County Assessor’s Office or by an appraisal thereof. Appraisals, when used to establish property values, shall be performed by a state certified real estate appraiser, as defined in subdivision © of Section 11340 pf the California Business and Professions Code selected by the City in accordance with the State of California appraisal standards and the Uniform Standards of Professional Appraisal Practice.

Such appraiser shall possess a Member of the Appraisal Institute (“MAI”) certification and be selected by the City. The definitions, standards and assumptions to be used in such an appraisal shall be the definitions, standards and assumptions set forth in the California Debt and Investment Advisory Commission’s “Appraisal Standards for Land- Secured Financing.” May, 1994, revised July, 2004.

A market absorption study may be required for projects that entail the following expected land use types:
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• Conventional office – non-owner user multi -tenant occupancy over 350,000 sq. ft. in one or more buildings.
• Medical office – non-owner user, multi-tenant occupancy over 250,000 sq. ft. in one or more buildings.
• Retail – anchored or non- anchored retail centers, multi -tenant occupancy over 100,000 sq. ft. in one or more buildings. Regional malls or retail power center are included in this category. • Mixed-use developments – anchored or non-anchored developments, multi-tenant occupancy over 250,000 sq. ft. in one or more buildings; and
• Corporate campus developments – typically conventional office research and development governmental or industrial. This land use type is predominantly large owner user profile, 250,000 sq. ft. or more in buildings.

The appraisal and/or absorption study shall be coordinated by, under the direction of, and addressed to the City. All costs associated with the preparation of the appraisal report and/or market absorption study shall typically be paid by the project proponent(s).

The City reserves the right to engage an independent licensed civil engineer or other consultants possessing similar expertise to estimate all land improvement (i.e., infrastructure) costs and summarize findings in a report.

The independent licensed civil engineer’s report shall be coordinated by, under the direction of, and addressed to the City. All costs associated with the preparation of the independent licensed civil engineer’s report shall be paid by the project proponent(s).

With respect to any CFD which is formed after April 1, 2023, the following requirements shall apply:

If the portion of the CFD (or improvement area, as applicable) which is undeveloped property (as defined by reference to the rate and method of apportionment of special tax) is responsible for 20 percent or more of the maximum special tax (as defined by reference to the rate and method of apportionment of special tax) levy in the fiscal year following the fiscal year in which the bonds are issued, the value to lien ration for such undeveloped property. Value may be established by reference to the assessed value of the subject property as determined by the Sacramento County Assessor’s Office or by an appraisal thereof. Such appraiser shall possess an MAI certification and be selected by the City.

Of, the value to lien ration required by the foregoing paragraph is not satisfied, prior to the release of the Preliminary Official Statement for the bonds to investors, the owner or owners of the undeveloped property in the CFD (or 428
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improvement area or tax zone, as applicable), shall deliver to the City or the bond trustee, an irrevocable instrument of credit from a financial institution rated “A” or better or otherwise acceptable to the City (a “security”), or cash in-lieu thereof, in an amount equal to two times the maximum special tax that may be levied on such undeveloped property in the fiscal year following the fiscal year in which the bonds are issued.

The security shall name the City, or its designed as a beneficiary and shall provide that the City, or its designee, may draw an amount equal to any delinquencies in payment of semiannual installments of the special taxes levied on such undeveloped property, The amount drawn on the security shall be applied in the same manner and for the same purposes as the delinquent special taxes would have been applied, provided that the payment of a draw under the security will not be deemed to cure the delinquency in payment of the special taxes. If the City draws upon the letter of credit or other irrevocable instrument of credit, owner or owners of the undeveloped property would be required to replenish the letter of credit to the previous letter of credit amount.

The security shall be released when the foregoing undeveloped property is responsible for less than 20 percent of the maximum special tax levy in the CFD (or improvement area or tax zone, as applicable). In the event the security is not renewed to continue to meet the requirements set forth above, the City may draw upon the full amount of the security. Provided that there are not special tax delinquencies on the undeveloped property to which the security relates, the City will return amounts drawn when the security is renewed, replaced or cash in- lieu thereof is provided as set forth herein if such amount are available in the special tax/redemption fund for the CFD (or improvement area, or tax zone, as applicable).
(D) Enterprise Funds. The City Manager’s Office and the City Treasurer’s Office shall evaluate the affordability of new -money debt for enterprise funds.

Enterprise rate levels must fully cover debt -service requirements and debt - service-coverage ratios as outlined in the applicable debt covenants, as well as the anticipated costs of operating , maint aining, and administering the capital improvements financed by the debt. At the time of debt issuance, the projected net system revenues of the enterprise fund should be sufficient to maintain a coverage ratio equal to or greater than 120% for parity obligations and bonds and 100% for aggregate parity, subordinate, and unsecured obligations. The ability to afford new debt for enterprise operations will be evaluated as an integral part of the City’s process for reviewing and setting rates for utilities services.
(E) Conduit Financing by a Joint -Powers Authority. The City may agree to the issuance of bonds by various joint -powers authorities (e.g., California Enterprise Development Authority, California Municipal Finance Authority , California Statewide Communities Development Authority). When the City is not the issuer of bonds for a project within the City, the City’s policy will be to require the issuer to assume full responsibility for the issuance and on-going 429
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compliance of the bond issue with federal and state laws. City Treasurer’s Office staff will rely upon information and documentation provided by the joint- powers authority or the prospective borrower of a project that desires to obtain tax-exempt financing. The City reserves the right to ask follow -up questions and request additional information as part of the review it deems appropriate.

When feasible, the City may hold the public hearing required by the Tax Equity and Fiscal Responsibility Act of 1986 (26 U.S.C. § 147(f)(2)) but is not required to do so.
(F) City-Issued Conduit Financing. Occasionally, the City Treasurer’s Office may determine that it is in the City’s best interest to issue bonds on behalf of another governmental entity or a 501(c)(3) corporation within the City’s boundaries. In these instances, neither the City’s general fund, nor the City’s other funds, nor the City’s taxing power will be pledged for repayment of the bonds. In addition, the City will rely on the financial analysis provided by the governmental entity or the 501(c)(3) corporation for purposes of due-diligence review before moving forward on the request to issue debt. The City reserves the right to make its issuance of conduit bonds contingent upon cooperation of the 501(c)(3) corporation and their team with a reasonable due diligence process. The City’s preferred method is for a joint-powers authority, of which the City is already a member, to be the issuer of conduit debt. (G) Small-Equipment Lease Financing. The City may move forward with a small- equipment lease financing at the request of City departments after analysis and due-diligence review by the City Manager’s Office, the City Department of Finance, and the City Treasurer’s Office. Requests from City departments must demonstrate the need (e.g., legal, environmental, cash flow) for small - equipment lease financing, and the City departments must prov ide realistic, projected drawdown schedules showing that borrowed funds will be spent in accordance with requirements of the Internal Revenue Service (the “ IRS”).

The City Treasurer’s Office will determine whether additional disclosure will be required at the time the financing is entered into and will make the decision based on consultation with the City’s disclosure counsel.

3.4 Capital Expenditure Considerations. The City will consider the following factors to evaluate pay -as-you-go financing versus debt financing for funding capital expenditures:
(A) Factors favoring pay-as-you-go.
(1) Projected revenues and fund balances are adequate and available to complete the proposed project, or the proposed project can be completed in phases.
(2) Utilizing projected revenues and fund balances to complete the financing of the proposed project may not necessarily materially impact metrics such as days cash on- hand or debt service coverage ratio, 430
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which would not lead to an impairment of the outlook or ratings of any City Debt.
(3) Existing debt levels might adversely affect the City’s credit ratings or ratings outlook.
(4) Market conditions are unfavorable or present difficulties in marketing the proposed debt.
(5) The proposed project’s useful life is less than five years. (6) Debt financing would be the preferred method, but circumstances require delaying the financing.
(7) Lack of clarity regarding when funding for improvements would be needed.
(B) Factors favoring debt financing.
(1) Current and projected revenues available for debt service are sufficient and reliable so that financings can be marketed with investment -grade credit ratings.
(2) Market conditions present favorable interest rates and demand for the City’s financings.
(3) The proposed project is mandated by federal or state law, by court or administrative order, or by a settlement related to a lawsuit or administrative action, and current resources are insufficient or unavailable to fund the project fully within the time required. (4) The proposed project is immediately needed to meet or relieve capacity needs or emergency conditions, and current resources are insufficient to fund the project fully within the time required.

4. Debt Issuance

4.1 Types and Purposes of Debt.
(A) Long-Term Debt. Long -term new-money debt may be used only to finance capital improvements, such as the costs of acquiring or improving land, infrastructure, facilities, or equipment, and only if it is appropriate to spread these costs over more than one budget year. Portions of l ong-term new - money debt may also be used to fund capitalized interest, costs of issuance, required reserves, and any other financing- related costs that may be legally capitalized. Long- term new -money debt may not be used to fund City operating costs, to fund services or programs or to fund maintenance related costs. The final maturity of long- term debt should not exceed 40 years. The following are the types of long- term debt that may be issued or incurred by the City or on which staff of the City Treasurer’s Office may work:
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(1) Special-Tax Revenue Bonds. Under the Mello- Roos Community Facilities District Act of 1982, codified at Government Code sections 53311 to 53368.3 (the “ Mello-Roos Act”), the City may issue special- tax revenue bonds to finance the construction or acquisition of various public improvements identified in the Rate and Method of Apportionment of Special Tax for each CFD. The Mello- Roos Act provides an efficient means of financing certain public capital facilities and services and promotes economic development in areas that lack sufficient infrastructure, such as infill or brownfield areas. Bonds may be issued to fund capital facilities so long as the estimated useful life of the public or non-public capital facilities is at least five years. These bonds must be approved by at least two- thirds of the qualified electors within the CFD.
(2) Marks-Roos Bonds. Under the Marks-Roos Local Bond Pooling Act of 1985, codified at Government Code sections 6584 to 6599.3 (the “Marks-Roos Act”), governmental entities, in consort with or as part of a joint-powers authority, may use a “pooled” financing technique for a broad array of public capital improvements. The City has used the Marks-Roos Act to issue refunding bonds for CFDs as well as for three redevelopment project areas when new - money debt was issued concurrently. Voter approval is not required.
(3) Property and Business Improvement District Bonds. Under the Property and Business Improvement District Law of 1994, codified at Streets and Highways Code sections 36600 through 36671, bonds may be issued to finance capital improvements with repayment of the bonds from assessments levied on the real property or businesses that benefit from the improvements financed.
(4) General-Obligation Bonds. These bonds may be issued by governmental entities that have the legal authority to levy ad valorem property taxes and other charges at whatever rate and amount is necessary to pay the debt. Under article XVI, section 18, of the California Constitution, these bonds may only be issued with two-thirds voter approval.
(5) Enhanced Infrastructure Financing District Bonds. These bonds may be approved by a public financing authority (“PFA”) established for the purpose of managing the affairs of the EIFD. While the PFA will be comprised of members appointed by the City ( certain City Council members and the City Council’s public designees), the PFA oversees a separate legal entity. The requirements of the EIFD and issuing EIFD bonds are identified in Government Code sections 53398.5 to 53398.88. 432
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In the event an EIFD desires the City to issue bonds, the Office of the City Treasurer may be asked to handle pre- issuance and issuance related matters on behalf of an EIFD. The Office of City Treasurer will manage the issuance of such EIFD bonds in accordance with this Policy in a manner conducive to obtain the lowest cost of borrowing possible. (6) Certificates of Participation and Lease- Revenue Bonds. These debt instruments are secured by a lease- leaseback arrangement between the City and another public entity. The City uses its general operating revenues (which are not expressly pledged) to pay rent owed under a lease. The payments are in turn used to pay debt service on lease- revenue bonds issued by a joint -powers authority or on certificates of participation executed and delivered by a trustee. Voter approval is not required because these debt instruments are not subject to the debt limit in article XVI, section 18 of the California Constitution. The City Council must annually appropriate funding for the payment of debt service associated with these types of debt instruments as part of the approval of the City’s budget.
(7) Revenue Bonds. These bonds are payable from revenue generated by a City enterprise, such as water and wastewater utilities. Because debt service on revenue bonds is paid solely from enterprise revenues and is not secured by any pledge of tax or general fund revenues, these bonds are not subject to the debt limit in article XVI, section 18 of the California Constitution. Revenue bonds are used for the improvements to the enterprise and are paid by ratepayers that benefit from the service provided by the enterprise. In the case of transient occupancy tax revenue bonds, such bonds are generally payable from the special tax portion of transient occupancy taxes the City collects less the annual transfer to Visit Sacramento.
(8) State Revolving Fund Loans or Other Similar Debt Instruments. An example is the Infrastructure State Revolving Fund Program, which provides financing to public agencies and non- profit corporations sponsored by public agencies; the loan proceeds are used for a variety of infrastructure and economic-development projects. Often the cost of borrowing through the loan programs is lower than the cost of issuing debt in the public market, but the final maturity of the loan may be limited. Additionally, the process to obtain a loan may take longer than publicly-issued bonds. Though generally less cost effective than a loan, bonds may afford the financing of projects with a need for expedited schedules.
(B) Short-Term Debt . Short-term debt may be used as an interim source of funding before the issuance of long- term debt. It may be issued for any governmental purpose for which long-term debt may be issued, including the 433
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payment of capitalized interest and other financing-related costs; it may also be used to address legitimate short -term cash -flow requirements during a given fiscal year, so that the City may continue to fund the operating costs of providing necessary public services; and it may be used to bridge the gap in financing before long-term debt is issued to meet the ongoing capital needs of a project or series of projects. The City will not engage in short -term borrowing solely for the purpose of generating investment returns (arbitrage).

Short-term debt usually may not exceed five years.
(1) Tax and Revenue Anticipation Notes (“ TRANs”). These are short-term notes used to cover cash shortfalls resulting from a mismatch between the timing of revenues and expenditures. The City may issue TRANs when needed to meet general -fund cash- flow needs in a fiscal year.

TRANs are secured by the property taxes and other revenues received later in the fiscal year. Voter approval is not required. Federal tax regulations often require that TRANs be repaid in the fiscal year in which they are issued to cover short-term cash-flow shortfalls. (2) Bond Anticipation Notes (“ BANs”). These are short -term interest - bearing notes issued in the anticipation of long- term bond issuances.

The City may issue BANs as a source of interim financing when the City Treasurer determines that doing so is prudent and advantageous to the City. Voter approval is not required.
(3) Grant Anticipation Notes (“ GANs”). These are short -term interest - bearing notes issued in anticipation of the receipt of grants. The City may issue GANs as a source of interim financing when the City Treasurer determines that doing so is prudent and advantageous to the City and the upcoming receipt of grants is guaranteed. Voter approval is not required.
(4) Lease-Purchase Financings. These financings may be used for the short-term financing of equipment. The term of a lease- purchase agreement is typically less than 10 years but may be as long as 15 years. Under this type of financing, the City and a bank enter into a master lease agreement for the lease- purchase of equipment up to a certain aggregate amount. The City and the bank then enter into separate “schedules of property” or “lease schedules” for each lease- purchase of equipment, and the City Council annually budgets and appropriates an amount sufficient to pay rent for the equipment under lease during that year; the failure to appropriate will result in termination of the lease- purchase agreement and the potential acquisition by the bank of the financed equipment. Voter approval is not required.

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(5) Commercial Paper Notes. These notes serve as a cash -management tool used primarily to provide short -term interim funding of capital expenditures that will ultimately be funded from a long- term bond or loan. Commercial -paper notes can reduce a project’s overall interest costs because only the amount needed for interim funding is borrowed, and interest rates on the interim funding are lower than the rates on the “permanent” funding with long- term bonds or loans. As of the date of this Policy, the City has never issued commercial paper notes, but the need for this type of short-term financing could arise in the future. (C) Other Debt. There may be special circumstances when other forms of debt are appropriate; these will be evaluated on a case- by-case basis. In such case, the City Treasurer’s Office may seek guidance from one of the City’s municipal advisors.
(D) Refunding. The City Treasurer’s Office will periodically review outstanding City Debt to identify refunding opportunities and evaluate the costs and benefits of restructuring or retiring outstanding obligations. Refunding will be considered (within federal tax-law constraints) when it will provide a net economic benefit or when it is needed to achieve City objectives relating to necessary changes in restrictive covenants, call provisions, operational flexibility, tax status, the issuer, debt -service profile , etc. The City may purchase City Debt in the open market for the purpose of retiring the debt when doing so is cost effective.
(1) Only one type of refunding transaction is allowed: a “current refunding,” which is when outstanding bonds are optionally redeemed within 90 days after the proceeds of refunding bonds are deposited into an escrow account with the escrow agent (typically the same entity as the trustee). (2) In general, when the City undertakes a current refunding for net economic benefit, the refunding should produce net-present-value debt- service savings of at least 5%. This 5% threshold is a goal rather than a requirement, as the City may have reasons to refund an issue that generates net-present-value savings of less than 5% (e.g., the refunding will eliminate unduly restrictive debt covenants) or conversely aim for a higher targeted minimum level of savings.
(3) The City may also issue taxable bonds to advance refund tax -exempt bonds with an optional redemption date more than 90 days after the proceeds of the taxable bonds are available. Whether the City moves forward with an advance refunding will depend on several factors, and the City Treasurer’s Office will work with one of the City’s municipal advisors to evaluate advance-refunding scenarios. In general, the goal will be to achieve net-present-value savings of at least 5%, but this is not a requirement.
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(4) When, during periods of economic distress, the City Council determines that annual debt service (i.e., principal and interest payments) for an outstanding issue of bonds might exceed available revenues, the City may issue new bonds to refund and restructure the outstanding bonds even though the net-present-value savings will be negative. Annual debt service on the refunding bonds would be lower than debt service on the refunded bonds in the first few years of the refunded bonds, but the term of the refunded bonds might extend beyond the term of the refunded bonds, thereby increasing overall total interest costs.

4.2 Public Policy Discussion . The proceedings to issue debt for projects that are controversial or of high public interest should be conducted with full transparency and public discussion (e.g., through community meetings, public outreach, City Council meetings).

4.3 Reimbursement of City Expenditures. If the City intends to reimburse itself from proceeds of tax -exempt debt for City expenditures made before issuance of the debt, then City staff must bring forward to the City Council, as soon as is practicable and in accordance with 26 C.F.R. § 1.150-2, a resolution declaring the City’s official intention to reimburse itself.

4.4 Method of Sale. Except to the extent a competitive process is required by law, the City Treasurer is responsible for determining the appropriate way method to offer City Debt to prospective investors. A negotiated sale is preferred because it (A) provides the City more flexibility in determining the structure, time, and date of the sale, which is advantageous in a volatile municipal -bond market; (B) permits the schedule for the issuance and sale of bonds to be expedited when necessary to meet the City’s goals; and (C) affords the chosen underwriter or senior managing underwriter (in the case of an underwriting syndicate) greater opportunity to premarket the City Debt to potential purchasers, including local investors, before the sale—all of which contributes to the City’s goal of achieving the lowest overall cost of borrowing. Criteria (C) is especially important to certain credit types such as special-tax revenue bonds, where there is a need to properly describe the background or the “story” of the particular special -tax revenue bonds for each financing so investors can have a better understanding of the risks of the financing and the project. Other methods of sale, such as competitive sale and private placement, may be considered on a case- by-case basis. For example, private placement debt may be appropriate when pending litigation or other risks or market conditions make a competitive or publicly negotiated sale difficult.

4.5 Pooled Financing. The City Treasurer is responsible for determining the appropriate use of third-party “pools” to issue City Debt. The current preferred method of sale is a direct issuance by the City led by one senior managing underwriter or co- senior managing underwriters. The appropriateness of pooled financing depends on the par amount of bonds to be issued, the complexity of the financing, and the need for 436
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greater bond- market penetration (institutional, retail, and high- net-worth individuals).

4.6 Professional Assistance . The City Treasurer may periodically select and retain service providers (other than bond and disclosure counsel, which the City Attorney’s Office selects and retains with input from the City Treasurer’s Office as appropriate) as needed to meet legal requirements and obtain specialized analytical services that facilitate the issuance of City Debt by minimizing borrowing costs . The City Treasurer will make these selections with the goal of achieving an appropriate balance between service (including experience, professional reputation, and market recognition) and cost. The City Treasurer may select service providers through a sole-source process of their choosing unless a competitive or other process is required by law or this Policy.

5. Debt Structure Features

5.1 Debt Repayment
(A) Useful Life. City Debt must be structured so that the weighted average maturity of the proposed debt is less than or equal to the weighted average economic or useful life of the capital projects or improvements to be financed. (B) Level Debt Service Preferred. To the extent possible, the structure of debt - service for long-term debt other than special-tax revenue bonds should have combined annual principal and interest payments that remain relatively constant to maturity, i.e., “level debt service.” But in some circumstances non- level debt service may be to the City’s advantage or is the norm—such as in the case of special tax revenue bonds where debt service increases by about 2% annually. The City Treasurer’s Office will determine the structure of the debt at the time of borrowing after considering pricing, cash flows, and other relevant factors and after consulting with the underwriter of the proposed debt and one of the City’s municipal advisors.

5.2 Credit Quality . The City should obtain and maintain the highest possible credit ratings when issuing short-term and long-term debt and will only issue bonds, for itself or others, that have a credit rating of “investment grade” or higher. 1∗ The City
will, however, consider the issuance of non- rated special-tax revenue bonds issued through CFDs , as well as the issuance of other non- rated bonds if circumstances warrant. In the context of non -rated land-secured bonds, the City reserves the right to not move forward with a financing requested by a developer for any reason. At a minimum key information must be provided to the City for

∗ For Moody’s Investor Service, “investment grade” means a rating of P-3 or higher for short-term debt and Baa3 or higher for long-term debt. For Standard & Poor’s, “investment grade” means a rating of A-3 or higher for short-term debt and BBB– or higher for long-term debt. And for Fitch Ratings, “investment grade” means a rating of F-3 or higher for short- term debt and BBB– or higher for long-term debt.
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review and consideration. The items include but are not limited to: a recorded final map on at least the first phase(s) of development, approved tentative maps on the balance of the district, no- redacted purchase and sale agreements for land sales of taxable property within the district within at least the last three years of the request to form the district, and definitive development plans including unit mix, village size and village phasing. Furthermore, the City reserves the right to not move forward wi th a financing if the development does not have complete or substantially complete backbone infrastructure and street improvements on at least the first phases of development (all in-ground utilities, streets, curbs, gutters, sidewalks), and is in a state of development ready to pull building permits. The City will not seek a rating for bonds unless the City Treasurer’s Office determines that the bonds are likely to receive an underlying (i.e. unenhanced) rating of BBB or higher.

The security shall be released when the foregoing undeveloped property is responsible for less than 20 percent of the maximum special tax levy in the CFD (or improvement area or tax zone, as applicable). In the event the security is not renewed to continue to meet the requirements set forth above, the City may draw upon the full amount of the security. Provided that there are not special tax delinquencies on the undeveloped property to which the security relates, the City will return amounts drawn when the security is renewed, replaced or cash- in-lieu thereof is provided as set forth herein if such amount are available in the special tax/redemption fund for the CFD (or improvement area, or tax zone, as applicable).

5.3 Credit Enhancement. The City Treasurer’s Office will work with one of the City’s municipal advisors and with the underwriter of the proposed City Debt (or senior managing underwriter, if there is an underwriting syndicate) to analyze the costs and benefits of obtaining bond insurance on a maturity -by-maturity basis for the proposed debt.

5.4 Non-Cash Reserve and Reduced Reserve. The City Treasurer’s Office will work with one of the City’s municipal advisors and with the underwriter of the proposed City Debt (or senior managing underwriter, if there is an underwriting syndicate) to analyze the costs and benefits of having no reserve, obtaining a surety reserve policy, or incorporating a debt service reserve based on a modif ied three-prong reserve test (26 C.F.R. § 1.148-2(f)(2))—for example, to 50% of maximum annual debt service or 10% of outstanding principal.

5.5 Fixed-Rate Debt. The City’s preferred interest-rate mode is fixed-rate.

5.6 Variable-Rate Debt. The City may issue variable- rate debt—i.e., debt that pays interest at a rate that resets according to a pre- determined formula or specified index or results from a periodic remarketing of the debt. Although the City might benefit from variable- rate debt in some transactions, issuing variable- rate debt passes an unknown obligation and risk to future City Councils. 438
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5.7 Derivatives. Derivatives might be appropriate for certain City borrowing programs.

For example, derivatives may be used in connection with the issuance of variable- rate debt. The City Treasurer’s Office will evaluate, with a written analysis provided by a municipal advisor, the use of derivatives on a case by-case basis to determine whether the potential benefits are sufficient to offset any potential costs and whether the derivatives are consistent with federal and state law and financially prudent.

5.8 Call Provisions. The City Treasurer’s Office will determine the call provisions for City Debt at the time of pricing, mindful that call provisions may affect the interest of potential investors and the price of the bonds. The City’s preferred structure is optional redemption at par to maintain flexibility for future refunding opportunities.

The City will not issue non -callable debt unless it is legally required or unless market conditions dictate otherwise; non-callable debt should not be issued solely to generate additional debt-service savings.

5.9 Bond Size. Unless otherwise directed by the City Treasurer in consultation with the City Manager, the minimum amount the City will finance through the issuance of bonds is $10 million unless circumstances justify a lower amount. The City may pursue other financing mechanisms—such as pay-as-you-go financing, inter-fund borrowing, lines of credit, and lease financing—for debt less than $10 million. In the case of s pecial tax r evenue bonds, special circumstances may exist that warrant the City Treasurer’s consideration of the developer’s request to issue bonds in an amount less than $10 million (e.g., if the bonds are for an infill or brownfield development project). The City Treasurer will determine whether to move forward with a debt financing with small par amount. 6 Debt Administration and Regulatory Compliance

6.1 Policies and Procedures for Post -Issuance Compliance. The City Treasurer’s Office must maintain written policies and procedures that require compliance with debt covenants and with federal, state, and local laws and regulations. The policies and procedures must address continuing- disclosure requirements; ar bitrage- rebate requirements, private- use limitations, other tax -compliance requirements; levy enrollment and administration; delinquency and foreclosure management; debt service and other payments; and permitted investments and uses of debt proceeds.

6.2 Federal Income Tax Compliance. The City Treasurer’s Office is responsible for keeping all records needed to comply with federal requirements for tax -exempt debt.
(A) For each bond issue, the City Treasurer’s Office will pay required rebate amounts, if any, no later than 60 days after each five-year anniversary of the issue date of the bonds and no later than 60 days after the last bond of the issue is redeemed.
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(1) During the construction of each capital project financed with debt proceeds, the City’s arbitrage consultant will typically be requested to prepare an interim arbitrage-rebate report at least once every 12 months until all proceeds deposited in the project fund (or acquisition and construction fund in the case of CFD financing) have been expended; if, however, the proceeds remaining in the project fund (or acquisition and construction fund) are equal to or less than 5% of the proceeds deposited into the project fund , (or acquisition and construction fund), then the City Treasurer’s Office may have the arbitrage consultant prepare the interim arbitrage-rebate reports according to the timeframe required by IRS regulations.
(2) After the construction proceeds have been fully expended or the balance in the project fund (or acquisition and construction fund) has fallen below 5% of the proceeds deposited, into the project fund (or the acquisition and construction fund), the City’s arbitrage consultant will prepare an interim arbitrage-rebate report on each five-year anniversary of the issue date of the bonds, or more frequently if warranted. (B) During the term of each issue plus three years, the City Treasurer’s Office will retain copies of all arbitrage reports, records relating to the use and investment of tax-exempt proceeds, documentation of private use, and other relevant documents associated with the issue. If the issue is refunded, then the retention period for the refunded issue is the life of the refunding issue plus three years. Training may be provided for all personnel working on the IRS’s post -issuance-compliance process. If any potential violations to complying with federal tax laws are discovered, then the City Treasurer or the Debt Manager, after consulting with the City Attorney’s Office, will contact bond counsel and determine what, if any, corrective actions are needed (e.g., participation in the IRS’s Voluntary Closing Agreement Program). (C) The City Treasurer or the Debt Manager will periodically review the City’s post-issuance compliance policies and procedures and will implement revisions as appropriate after consulting with the City Attorney’s Office and, if needed, bond counsel and disclosure counsel.
(D) When bonds (the refunding bonds) are issued to refund outstanding bonds (the refunded bonds), all remaining proceeds of the refunded bonds—e.g., all amounts remaining in the project fund, reserve fund, and other accounts, plus accrued interest—will be cons idered for purposes of IRS regulations to be “transferred proceeds” of the refunding bonds and, as such, will be subject to the arbitrage calculations for the refunding bonds. In addition, if the transferred proceeds represent more than 5% of the original deposit in the project fund (or acquisition and construction fund) of proceeds from the refunded bonds (see section 6.2(A)(1) above), then interim arbitrage calculations must be performed on an annual basis until the balance of the 440
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transferred proceeds is less than 5% of the original deposit at which point the arbitrage calculations will be completed every five years from the issuance date of the refunding bonds.

6.3 Use of Proceeds from Tax -Exempt or Taxable Debt and of Assets Financed with Tax-Exempt Debt. The City Treasurer’s Office in conjunction with other City departments is responsible for the following:
(A) Monitoring the use of proceeds from tax-exempt and taxable debt and the use of assets financed or refinanced with tax-exempt debt throughout the term of the debt to ensure compliance with all covenants and restrictions in the documents relating to the debt and to ensure that the proceeds are directed to the intended use.
(B) Consulting with the City Attorney’s Office and bond counsel in reviewing contracts or other arrangements involving use of assets financed or refinanced with tax -exempt taxable debt to ensure compliance with all covenants and restrictions in the documents relating to the debt. (C) Maintaining records for any contracts or other arrangements involving the use of assets financed or refinanced with tax-exempt debt.
(D) Maintaining internal -control procedures related to the management and disbursement of proceeds, such as procedures requiring that proceeds are either (1) held by a third-party trustee or fiscal agent, which will disburse the proceeds to, or upon the order of, the City in accordance with one or more written requisitions; or (2) held by the City and deposited and accounted for in a separate fund or account, with withdrawals and expenditures carefully documented.

Consulting promptly with the City Attorney’s Office and bond counsel to develop a course of action to remediate any identified existing or potential violations of restrictions on the use of tax-exempt or taxable proceeds or the use of assets financed or refinanced with tax-exempt or taxable proceeds.

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Attachment A
Supplemental Policies
City of Sacramento Policies and Procedures For Use of Special Assessment and Mello-Roos Community Facilities District Financing For Infrastructure, Public Facilities, Programs and Services (Adopted on June 29, 1993, by Resolution No. 93- 381, updated on August 9, 1994, by Resolution 94-491 and on May 15, 2012) City of Sacramento Development Fee Financing Program for Commercial, Industrial and Residential Development Projects (Adopted January 1997 by Resolution No. 97- 002)
California Debt and Investment Advisory Commission Appraisal Standards for Land- Secured Financings CDIAC 04-07 (Adopted in May 1994 and revised in July 2004) City of Sacramento Debt -Management Policy – Supplemental Policy on Disclosure (Adopted on June 2, 2011, by Resolution No. 2011- 322 and updated on February 7, 2017, by Resolution No. 2017-0046; on June 19, 2018, by Resolution No. 2018-0251; on April 23, 2019, by Resolution No. 2019- 0122; and on December 10, 2019, by Resolution No. 2019-0453); on June 30, 2020, by Resolution No. 2020-0189; and on June 1, 2021, by Resolution No. 2021-0314 on November 1, 2022, by Resolution No. 2022-0329 and on May 2, 2023 by Resolution No. 2023-0111)

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Debt Management Policy - Disclosure
Supplemental Policy on Disclosure

Scope: CITYWIDE

Administrative Entity
Office of the City Treasurer
(916) 808-5168
[email protected]

Table of Contents

Regulatory References
Council Resolution 2023-0111

Effective Date: May 02, 2023

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Debt Management Policy - Disclosure

1. Introduction

1.1 This Supplemental Policy on Disclosure (“ Policy”) governs the City’s discharge fulfillment of its disclosure obligations related to municipal securities issued by the City or by related entities such as the Sacramento City Financing Authority, the Sacramento Public Financing Authority, and the Redevelopment Agency Successor Agency. In the event an Enhanced Infrastructure Financing District (“EIFD”) formed by the City issues bonds, the City, specifically the Office of the City Treasurer, may be asked to handle post issuance matters including continuing disclosure for EIFD bonds. While an EIFD is a separate legal entity from the City with a separate governing body from the City Council, if City staff is responsible with the continuing disclosure requirements for EIFD bonds, City staff will do so in accordance with this Policy.

(A) The City and its related entities issue obligations in the public capital markets from time to time. When bonds are issued, the City, whether acting for itself or for a related entity, is obligated to disclose all material information in compliance with federal securities laws, including the Securities Act of 1933, the Securities and Exchange Act of 1934, Rule 10b- 5 of the Securities and Exchange Commission (“SEC”), and Rule 15c2-12 of the SEC. California Government Code sections 8855 and 53359.5 require certain disclosures to the California Debt and Investment Advisory Commission and Government Code sections 12463.2, 53891, 53892, 53892.2, and 53892.3 require certain disclosures to the California State Controller’s Office.
(B) Incomplete, inaccurate, or misleading disclosure might have material financial consequences for the City, as well as City officers and employees.

For example:
• The SEC could bring civil actions charging that disclosure was negligent, reckless, or intentionally fraudulent; in addition, the SEC could refer cases to the U.S. Department of Justice for criminal prosecution.
• The SEC could impose cumbersome procedures and oversight on the City as conditions for settling civil actions.
• The City could suffer adverse publicity, which might reduce market access.
• The credit rating on the City’s debt could be downgraded, resulting in increased costs in future issuances.
• City officials could face personal fines for violations of securities laws. 444
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(C) Sound disclosure practices can provide both tangible and intangible benefits, including the following:
• Enhanced credibility in the municipal-bond marketplace. • Transparency with rating agencies, bond issuers, investors, and prospective investors.
• Improved decision making for prospective investors.
• Increased numbers of investors who purchase the City’s bonds in the primary and secondary markets.
• Demonstrated City commitment to providing timely disclosure to rating agencies, investors, and other stakeholders.
• The potential for a lower overall cost of borrowing.

1.2 Scope of Policy. This policy applies to City information and document, including the following, that a reasonable investor would consider significant or useful when deciding whether to invest in the City’s bonds:
(A) Initial-disclosure documents, i.e., preliminary, and final official statements. (B) Continuing-disclosure documents, i.e., annual financial information and event notices.
(C) Miscellaneous reports and presentations to the public.

2. Governing Authority, Point of Contact, and Responsibility

2.1 Authority. Either the City Treasurer or the Debt Manager within the City Treasurer’s Office (the “ Debt Manager ”) shall manage the City’s disclosure program in conformance with federal, state, and local requirements, including the Sacramento City Charter, the Sacramento City Code, and the City’s Debt - Management Policy.

2.2 Point of Contact. Either the City Treasurer or the Debt Manager will be the City’s point of contact for disclosure, primarily responsible not only for developing and distributing information but also for determining the materiality of information , based in part by guidance by the City Attorney’s Office and the City’s disclosure counsel.

2.3 Responsibility,
(A) The City Treasurer or the Debt Manager shall oversee all aspects of disclosure. As such, the City Treasurer or the Debt Manager shall review the form and content of the City’s documents and materials prepared, issued, or distributed in connection with the City’s disclosure obligations relating to its debt. Those documents and materials include not just preliminary and final official statements following:

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• Annual financial information provided to the Municipal Securities Rulemaking Board (“MSRB”) in accordance with SEC Rule 15c2- 12 and any applicable continuing- disclosure agreement or certificate (except that the City Treasurer and the Debt Manager are not responsible for the form and content of the City’s annual comprehensive financial report, which is prepared by the City’s Accounting Division and reviewed by the City’s external auditor). • Event notices provided to the MSRB in accordance with SEC Rule 15c2-12and any applicable continuing- disclosure agreement or certificate.
• Any other information provided to the MSRB for use by investors in making investment decisions.

Such information and notices will typically be provided through the MSRB’s Electronic Municipal Market Access website (known as “EMMA”), which the SEC has designated as the official source for municipal securities data and disclosure documents.

The City reserves the right to utilize certain services provided by a third- party dissemination agent such as the upload of disclosure fillings to EMMA, however as stated in section (c) below, the preparation, review, and final approval of all disclosure filings are the responsibility of the City. (B) Along with the City Treasurer and their staff, the City Attorney and the City Manager shall serve as integral members of the financing team, each responsible, as appropriate, for ensuring and certifying to the accuracy of information released to the market.
(C) The City is responsible for the content of its disclosure documents. The City Treasurer, City Attorney, and City Manager shall ensure the use of outside professionals for their respective areas of expertise is appropriate and that reliance upon outside professionals is reasonable and not excessive. The City Treasurer’s Office is responsible for the accuracy and completeness of information filed with EMMA, except with respect to certain information filed by developers and merchant builders or their respective consultants, in accordance with the respective developer’s or merchant builder’s limited scope continuing disclosure requirements for certain special-tax revenue bonds.
(D) The City Treasurer or the Debt Manager shall ensure that subject -matter experts, including City staff with relevant knowledge or expertise, are involved in developing and periodically reviewing and updating disclosure documents. For example, when obligations are secured by specific revenues, such as water or wastewater revenues, City staff who are knowledgeable about the relevant enterprise utility must be involved. (E) The City Treasurer and Debt Manager, in collaboration with the City Attorney, shall arrange for the engagement of disclosure counsel to assist 446
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the City in complying with disclosure requirements, as warranted. The City Treasurer or the Debt Manager shall also arrange for the periodic training of City Council members and City Council members’ staff (as determined by the City Treasurer or the Debt Manager), executive management and other employees who may contribute to or have involvement with the City’s primary offerings or continuing disclosure obligations, regarding the City’s disclosure obligations under federal securities laws. (F) City officers and employees serving as financing- team members are responsible for reviewing and commenting on draft documents. As part of their review, they must determine whether all material information— including confidential or politically sensitive inf ormation—has been included and is both accurate and relevant.
(G) City officers and employees and the officers and employees of related entities shall promptly provide all information, assurance, and certifications that the City Treasurer or the Debt Manager requests for compliance with federal securities laws. The City Manager and the City Attorney shall be required to promptly and fully respond to those requests.

3. Certifications

3.1 In connection with the City Council’s approval of preliminary or final official statements for publicly issued debt, as appropriate City officer or employee shall certify in writing, to the best of their knowledge, the documents do not make any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading.

The City Treasurer or the Debt Manager shall provide offering documents such as preliminary official statements to appropriate City officials (which may include the Mayor and City Council, City Manager, City Attorney, and other City officers and employees) in such a manner as to allow timely, informed decisions regarding disclosure.

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Development Stabilization Contingency Reserve (DSCR) and Development Services Fund Management Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents
Purpose
Background
Policy
Management of Activities in Fund 2016

Related Regulatory References
May 12, 2015 Resolution 2015-0123

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DSCR and Development Services Fund Management Policy

1. PURPOSE

The purpose of the DSCR and the Development Services Fund (Fund 2016) is to ensure the prudent management of development funds for the public and the City of Sacramento. The DSCR will be used to bridge gaps between budgeted and actual development revenues in the Community Development Department (CDD) during periods of significant revenue decline.

2. BACKGROUND

The Development Services Fund was established on February 23, 1999 (Reso 99- 077), to account for major plan review and building permit projects, cyclical surplus plan review and building permit revenues, and environmental impact review projects. In 1999 the City Council authorized the transfer of General Fund budget surpluses, during periods of high building activity, in the Development Services Department to be transferred to the Development Services Fund. The intent was that the Development Services Fund would be drawn down in years of lower building activity. Over time, these resources were used to fund ongoing workload, without an ongoing revenue stream. When the Fund could no longer support ongoing budgeted expenditures, the authority to carryover surpluses was removed from the annual budget resolution.

A sustainable funding plan for CDD building and planning operations is necessary for the department to be responsive to the economic climate. Establishing a DSCR Policy for Fund 2016 and Management Guidelines will provide the department resources during a downturn in development activity and time to react to those changes.

3. POLICY

The DSCR shall be established as set forth below and any changes to the policy will be presented to and approved by the City Council.

(a) The DSCR goal is one year’s worth of building, building plan check, and current planning revenues.

(b) The DSCR will be initially funded with the available fund balance upon completion of the FY2014/15 audited financial statements for Fund 2016.

(c) Beginning with FY2014/15 actual year-end revenues in excess of budget from CDD’s Building Inspection, Building Plan Check, Customer Service/Permit Counter, and Planning Operations, provided that the net year -end results (revenue and expenditure budget variance) of CDD are positive, will be transferred to the DSCR.
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(d) The DSCR will only be used to bridge gaps between projected and actual development-related revenues in CDD during periods of significant revenue shortfalls.

4. MANAGEMENT OF ACTIVITIES IN FUND 2016

The fund shall be used for the management of development activities, when those activities are intended to be fully offset by revenues as described below and summarized in Attachment 1.

(a) Environmental impact review or planning review in fully reimbursable projects (P2100xxxx)

i. Revenues and expenditures must balance upon closure

ii. Shortfalls in completed projects where recovery efforts are unsuccessful will be covered by a transfer from the DSCR so that the project may be closed with balanced revenues and expenditures

(b) Major development projects (I21xxxxxx) when building valuation is in excess of $50 million, to be adjusted annually according to the Consumer Price Index (e.g., high rise buildings, arenas, theaters in fully reimbursable projects)

i. Revenues and expenditures must balance upon closure

ii. Funds remaining in a completed project will be transferred first to the DSRC until the Reserve level is attained, then to the department’s General Fund operating budget

iii. Shortfalls in completed projects will be covered by a transfer from the DSCR so that the project may be closed with balanced revenues and expenditures

i. Technology for building or planning permitting systems: (e.g., Accela, CitizenServe, or eCAPS) to be managed in the separate capital projects (A21xxxxxx)

ii. General Plan and Community Plan updates: To be managed in a multi-year projects (I22xxxxxx) with separate child projects for the various plans/updates

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Emergency Medical Services (EMS) Revenue Recovery and
Fee Waiver Policy

Scope: CITYWIDE

Administrative Entity
EMS Division
Fire Department
(916) 808-5352
[email protected]

Table of Contents
Purpose
Background
Policy

Related Regulatory References
July 27, 1993 Resolution 1993-0434
October 2011 AB 678-Ground Emergency Medical Transport June 26, 2012 Resolution 2012-0214
March 18, 2014 Motion 2014-0053
December 5, 2017 Resolution 2017-0468
December 31, 2022 AB 678-Ground Emergency Medical Transport – Disbanded January 1, 2023 AB 1705-Plan Provided Ground Emergency Medical Transport

Effective Date: May 16, 2023

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EMS Revenue Recovery and Fee Waiver Policy

1) PURPOSE
a) To establish a policy for revenue recovery and fee waiver or reduction of costs associated with providing the City of Sacramento’s (City) EMS program. 2) DEFINITIONS
a) Advanced Life Support (ALS): This term is defined in Health and Safety Code section 1797.52.
b) Basic Life Support (BLS): This term is defined in Health and Safety Code section 1797.60.
c) Electronic Patient Care Report (ePCR): A patient care report, as defined in Sacramento County Emergency Medical Agency Policy No. 2305.22, in an electronic format. An ePCR is an electronic health record, within the meaning of Health and Safety Code section 1797.227, created for each patient by Fire Department staff at the time of service. The report is used to relay information between the responding unit and the receiving hospital staff. The report serves as documentation of the treatment provided.
d) Emergency: This term is defined in Health and Safety Code section 1797.70. e) Emergency Medical Services (EMS): This term is defined in Health and Safety Code section 1797.72. EMS includes Fire Department responses to provide ALS, BLS, and treat-not-transport patient care.
f) Fee Waiver: the forgiveness of all of a patient’s owed City Council approved EMS user fees, based on a formalized criteria and processes as outlined in this policy.
g) Fee Reduction: the forgiveness of a portion of a patient’s owed City Council approved EMS user fees, based on a formalized criteria and processes as outlined in this policy.
3) BACKGROUND
a) On July 27, 1993 (Resolution 93-434), the City established the ALS program.

As costs for ALS services continue to increase, the revenues generated by fees for service have not grown proportionally. The City is challenged to recover fee for service revenues due to several different reasons, one of them being payer mix. The City’s p ayer mix is currently 40 percent Medicare, 40 percent Medicaid, and 15 percent private insurance with the remainder being from self- insured and uninsured. In addition, there are federally mandated write- offs, which allow the City to collect only a small percentage of the actual billed 454
FY2025/26 Proposed Budget

amount from Medicare and Medicaid. In an effort to maximize reimbursements and cover direct costs the City has pursued additional recovery options. b) In October 2011, AB 678 enacted the Ground Emergency Medical Transport (GEMT) program. It provided for the reimbursement of transports of Medi -Cal patients who were not in managed care. On March 18, 2014, the Council authorized an agreement with Sacramento Metropolitan Fire District (Motion No. 2014-0053) to pursue reimbursements through the GEMT program. c) On June 26, 2012, the Council approved increases to the ALS fees for service (Resolution 2012-214) to increase cost recovery to address a portion of the structural variance between the cost of providing services and the revenue collected for those services.
d) On December 16, 2014, Council authorized the participation in the Rate Range Intergovernmental Transfer (IGT) program. IGT allows local governments to receive a federal reimbursement for transporting Medi -Cal patients that are in managed care.
e) On December 5, 2017, Council approved increased to the ALS fees for service (Resolution 2017-0468) to increase cost recovery to address a portion of the structural variance between the cost of providing services and the revenues collected for those services. The resolution allowed staff yearly to adjust the fees based on a medical Consumer Price Index (CPI).
f) On December 31, 2022, the Ground Emergency Medical Transport (GEMT) program ended.
g) On January 1, 2023, The Department of Health Care Services (DHCS) developed the Public Provider Ground Emergency Medical Transport (PP - GEMT) Intergovernmental Transfer Program (IGT), pursuant to AB 1705, to provide increased reimbursements to emergency medical transports provided by eligible public GEMT Providers through application of an add-on increase. h) While the City can assure the continuation of fee for service revenues, revenue recovery programs such as GEMT , IGT , and PP -GEMT are subject to the availability of state and federal funding.
4) EMS FEE RECOVERY POLICY
a) The EMS Program shall be fully offset by fees generated by services provided.

All revenues recovered for the provision of EMS services shall be used to cover direct and indirect costs to reduce the General Fund subsidy for this program. b) GEMT, IGT , and PP -GEMT revenues received in excess of the Fire Department’s approved General Fund revenue budget, during the fiscal year, shall be committed for future appropriations for the Fire Department.

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5) EMS FEE WAIVER POLICY
a) The City Manager or their designee may waive all or a portion of the EMS fees established by City Council as provided herein.
b) In no event shall any person be denied EMS services because of their inability or failure to pay the charges incurred for services provided. c) Procedures:
i. Fee Waiver Application:

1. An applicant or applicant’s l egal representative may subm it a completed Fee Waiv er A pplication w ith adequate s upporting documentation to the Fire Department f or re view a nd consideration. The Fee Waiver Application shall be on a form prescribed by the City Manager or their designee.

2. Fire Department staff, through assistance from a contracted billing company, will use reasonable research methods to confirm the validity of the information provided.

3. Upon completion of the application review process above, the contracted billing company will notify all applicants as instructed by the Fire Chief or their designee.

4. Fee waiver applications and supporting documentation will be retained in accordance with the City’s Record Retention Policy. d) Fee Waiver Conditions and Options:
i. Financial Hardship. A fee waiver may be granted in circumstances where a financial hardship is demonstrated. The determination of a financial hardship shall be based on the most recent Federal Poverty Level (FPL) chart provided by the Department of Health and Human Services (HHS). The Fire Chief may grant a waiver, reduction, or payment plan to applicants that demonstrate a financial hardship. 456
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ii.

The current poverty information is available at: https://aspe.hhs.gov/poverty - guidelines.

1. Waiver or Reduction: The Fire Chief may approve a full waiver or partial reduction of the remaining balance after all insurance payments have been posted based on the applicant’s ability to pay the remaining balance. Reductions may range from 25% to 50% based on the applicant’s financial hardship as reflected above.

2. Payment Plan: The Fire Chief may offer a low -cost monthly payment plan in lieu of, or in addition to, a reduction for applicants that have a verified financial hardship.
iii. Services Provided. A waiver may be granted in circumstances where the level of response or services provided do not justify application of the charges incurred. Such determination shall be based on the contents of the applicable ePCR or one or more of the following circumstances:

1. Th e call for service did not require response by Fire Department apparatus including an am bulance, engine comp any, or truck company;

2. T reatment or care provided to the applicant was at a lower level than the defined levels of ALS and BLS service;
iv. Th e applicant did not initiate the c all fo r ser vice, and the applicant refused care.

Household
Size
Poverty Level
(100% Waiver)
2X Poverty Level
(50% Reduction)
3X Poverty Level
(25% Reduction)
1 15,650 31,300 46,950 2 21,150 42,300 63,450 3 26,650 53,300 79,950 4 32,150 64,300 96,450 5 37,650 75,300 112,950 6 43,150 86,300 129,450 7 48,650 97,300 145,950 8 54,150 108,300 162,450 2025 Federal Poverty Levels
Note: For families/households with more than 5 persons, add $5,500 for each additional person. Poverty Levels will be updated annually. 457
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P
Fees and Charges Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents

1. Purpose

2. Policy

3. Proposition 26

Related Regulatory References
May 8, 2014 Resolution 2014-0111

Effective Date: July 1, 2015

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Fees and Charges Policy

1. P URPOSE
The City of Sacramento has the ability to determine the extent to which fees should be used to fund City facilities, infrastructure and services.

There are five main categories of fees that the City currently implements:
2  Impact/development fees are typically one-time charges levied by the City against new development to generate revenue for the construction of infrastructure and capital facilities needed to offset the effects of the new development.

 Service fees are charges imposed on persons or property that are designed to offset the cost of providing a government service. Sometimes these services are elective, such as fees for processing voluntary development permit applications, or providing service/recreation programs, while other service fees are not, such as mandatory service fees for trash or utility services. Such fees are typically reasonably related to the cost of providing the service for which the fee is imposed. Otherwise, the fee may constitute a special tax for which voter approval is required by Propositions 13, 62, and 218.

 Regulatory fees are imposed to offset the cost of a regulatory program, such as business regulatory fees, or to mitigate the past, present, or future adverse impact of a fee payer’s operations. While payment of a regulatory fee does not necessarily provide any direct benefit from payment of the fee, there must be a "nexus" between the activity and the adverse consequences addressed by the fee. Common examples of regulatory fees include inspection fees and business license fees designed to reimburse a local agency for the cost of monitoring the business and enforcing compliance with City code.

 Rental fees are charged for the rental of public property and include the rental of real property, parking spaces in a public parking lot, or the rental of community facilities such as a recreation or community room or picnic area. Rental fees are not subject to the general rule that the fee must bear a direct relationship to the reasonable cost of providing the service for which the fee is charged however, rental fees must be fair and reasonable.

 Penalties/Fines are payment required for non- compliance or failure to adhere to specific rules and/or requirements.

2 League of California Cities Website: Spring Meeting May 13-15, 1998Laurence S. Wiener, Esq.City Attorney of Beverly Hills and Westlake Village THE CITY ATTORNEY'S ROLE IN EVALUATING FEE STUDIES. 460
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This document sets forth guidelines for:

• Establishing cost recovery goals;
• Determining the categories of cost recovery levels in which to categorize/organize fees;
• Methods for determining which category a fee falls under; and • Establishment and modification of fees and charges.

2. POLICY

A. Cost Recovery Goals
In setting user fees and cost recovery levels, the following factors will be considered:
3 1) The amount of a fee should not exceed the overall cost of providing the

facility, infrastructure, or service for which the fee is imposed. In calculating that cost, direct and indirect costs may be included. That is:
• Costs which are directly related to the provision of the service; and • Support costs which are more general in nature but provide support for the provision of the service. For example, service fees can include reimbursement for the administrative costs of providing the service.

Development fees can include the cost of administering the program to construct public facilities that are necessary to serve new development.

2) The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection.

3) Fees should be sensitive to the “market” for similar services.

In addition, in setting enterprise fund fees and cost recovery levels, the following factors will be considered:

4) The City will set fees and rates at levels which fully cover the total direct and indirect costs, including operations, capital outlay and debt service of the enterprise programs.

5) The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable.

B. Categories of Cost Recovery Levels in Which to Categorize/Organize Fees

There are five categories of cost recovery levels in which to classify fees:

3 Government Finance Officers Association Website, Best Practices in Public Budgeting, City of San Luis Obispo: User Fee Cost Recovery Goals, 2005.
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1) Enterprise: Full direct and indirect cost recovery (100% of total costs) for enterprise services such as water, sewer, and solid waste, as well as impact/development fees.
2) High: Full direct cost recovery (81-100% of total costs). 3) Medium: Recovery between 41-80% of direct costs.
4) Low: Recovery between 0-40% of direct costs.
5) Other: Fees based on market, geography, assessment, project specific, legal limits, or specific Council policy.

The City may choose, for policy reasons, to set fees at less than full recovery.

For example, fees based on market, geography, assessment, project specific, statutory/legal limits, or specific Council policy. In some cases, the City will acknowledge that a subsidy is acceptable, or even necessary to ensure program access and viability.

C. Methods for Determining Which Category a Fee Falls Under

Implementation of higher cost recovery levels is appropriate under the following conditions (up to 100% of the cost of the service or program):
• The service is regulatory in nature (e.g., building permits, plan check fees); • The service is similar to services provided through the private sector; • Other private or public sector alternatives could or do exist for the delivery of
the service;
• Over-use of the service is specifically discouraged (e.g., police responses to disturbances or false alarms might fall into this category); and • Over-use of the service or facility is a specialized use that could be provided at a lower cost if not for specific nature or service (e.g., lighted fields).

Lower cost recovery levels are appropriate under the following conditions:
• There is no intended relationship between the amount paid and the benefit received. (It is likely that some recreation and human service programs fall into this category as it is expected that these programs will be subsidized by funds);
• Collecting fees is not cost -effective or will significantly affects the accessibility
to the service;
• The service is non -recurring, generally delivered on a peak demand or emergency basis, cannot be planned for and is not readily available from a private sector source (e.g., public safety services); and • Collecting fees would discourage compliance with regulatory requirements

and adherence is primarily self -identified, and as such, failure to comply would not be readily detected by the City.
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Other:
• Market pricing requires that there be a direct relationship between the amount paid and the level and cost of the service received or a direct relationship to actual prices being charged for the service in the current market.
• Legal specifications and/or limitations to the amount that is charged. • Adopted Council Policy setting specific fee.

Factors to Consider
The extent to which the total cost of service should be recovered through fees depends upon the following factors:
 The nature of the facilities, infrastructure or services;  The nature and extent of the benefit to the fee payer;  The effect of pricing on the demand for services; and  The feasibility of collection and recovery.

The chart below reflects these factors and the potential options for higher or lower cost recovery:
4 The Nature of the
Facilities,
Infrastructure or
Services
The Nature and
Extent of the Benefit
to The Fee Payers
Effect of Pricing on
the Demand for
Services
Feasibility of
Collection and
Recovery
Higher Cost Recovery In the case of fees for
facilities, infrastructure
and proprietary
services
5, total cost
recovery may be
warranted.

When a particular facility
or service results in
substantial, immediate
and direct benefit to fee
payers, a higher
percentage of the cost
of providing the facility
or service should be
recovered by the fee.

Because the pricing of
services can
significantly affect
demand, full cost
recovery for services is
more appropriate when
the market for the
services is strong and
will support a high level
of cost recovery.

In the case of impact
fees, which can be
collected at the time
of issuance of a
building permit, ease
of collection is
generally not a factor.

Lower Cost Recovery In the case of
governmental services6,
it may be appropriate for
a substantial portion of
the cost of such
services to be borne by
the City’s taxpayers,
rather than the
individual users of such
services.

When a particular facility
or service benefits not
only the fee payer but
also a substantial
segment of the
community, lower cost
recovery is warranted.

If high levels of cost
recovery affect
accessibility to or
negatively affect the
delivery of services to
lower income groups,
this should be
considered based on
the overall goals of the
program being
implemented.

Some fees may prove
to be impractical for
the City to utilize if
they are too costly to
administer.
4 Government Finance Officers Association Website, Best Practices in Public Budgeting, City of Fort Collins, CO: User Fee Policies, 2005.
5 Proprietary services are those which are provided for the benefit and enjoyment of the residents of the City 6 Governmental services are those which are provided by the City for the public good such as regulating land use, maintaining streets, and providing police and fire protection.
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D. Establishment and Modification of Fees and Charges
Fees will be reviewed and updated on an ongoing basis as part of the annual budget process to ensure that they keep pace with changes in the cost-of-living as well as changes in methods or levels of service delivery. At the beginning of the budget process each department will submit a list of proposed adjustments to their section of the master fee schedule. Each service must be assigned a target cost recovery level as defined above.

Maintaining competitive status and comparability with other cities should be considered when determining new fee levels. Those fees that are proposed for adjustment should be benchmarked against neighboring jurisdiction fee schedules or appropriate service markets. The benchmark analysis should be taken into consideration when making final pricing decisions.

However, the City may choose, for policy reasons, to set fees at less than full recovery. (for example, fees based on market, geography, assessment, project specific, statutory/legal limits or specific Council policy). As stated above, in some cases, the City will acknowledge that a subsidy is acceptable, or even necessary to ensure program access and viability. Where appropriate, fees that have not been increased in some time should have increases phased in over several years to avoid ‘sticker shock’ increases.

If a particular fee is not adjusted in the budget process, to the extent feasible and/or appropriate, it should be increased biennially by a CPI factor to keep pace with inflation. Beginning in FY2014/15 the City will use the State of California Department of Industrial Relations Consumer Price Index (CPI) which is the same index used by the County Assessor to adjust the annual property tax roll for inflation.

Biennially, the Finance Department shall determine the percentage change in this index and apply the increase or decrease to the master fee schedule, rounding up to the nearest whole dollar. Certain fees are exempt from an index adjustment, such as fees set by the State of California, percentage-based fees or those that have been identified as inappropriate for indexed fee increases (e.g., feasibility or fees that are based on market for services). Exempt fees are noted in the master fee schedule. Council may consider fee issues outside of the annual budget process on a case-by-case basis.

The City should conduct a comprehensive cost of service analysis every five to seven years to ensure fees and charges are set appropriately. Generally, fees may be adjusted based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery. For example, changes in processes and technology change the staff time required to provide services to the public. A cost -of-service study will identify and quantify these changes.

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3. Proposition 26

Proposition 26, the “Stop Hidden Taxes Initiative,” was passed by the voters on November 2, 2010, to amend Article XIII C of the State Constitution. According to the ballot measure, the intent of the measure is to ensure the effectiveness of Propositions 13 and 218 by providing a definition of a “tax” for state and local purposes “so that neither the Legislature nor local governments can circumvent these restrictions on increasing taxes by simply defining new or expanded taxes as ‘fees.” Accordingly, under Proposition 26 a tax has been very broadly defined.

Tax Defined:
“Tax” now means “any levy, charge, or exaction of any kind imposed by a local government, except for the following seven categories of charges:

Exception 1 – Benefit Conferred or Privilege Granted
A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.

Examples:
o Residential parking permit fees
o Professional licenses
o Business improvement assessments
Exception 2 – Government Service or Product
A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

Examples:
o User fees for park and recreation programs
o Weed abatement fees
o Sidewalk curb repairs
Exception 3 – Licenses and Permits
A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections , and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

Examples:
o Building inspections
o Cardroom license
o Business licenses

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Exception 4 – Use of City property
A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.

Examples:
o City-owned parking lots
o Swimming pools
o Convention Center rentals
o Golf green fees
Exception 5 – Fines and Penalties
A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law.

Examples:
o City Code fines and penalties (e.g., 1.28.020)
o Parking fines
Exception 6 – Property Development Charges
A charge imposed as a condition of property development.

Example:
o Development impact fees
Exception 7 – Proposition 218 Fees
Assessments and property related fees imposed in accordance with the provisions of Proposition 218, Article XIII D.

Examples:
o Utility fees for water, sewer, drainage, and solid waste o Street lighting assessments
Burden of Proof:

The paragraph following the seven enumerated exceptions states:
“The local government bears the burden of proving by a preponderance of the evidence [1] that a levy, charge, or other exaction is not a tax, [2] that the amount is no more than necessary to cover the reasonable costs of the government activity, and [3] that the manner in which those costs are allocated to a payor bears a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.” The latter two requirements only apply to the first three exceptions.

Thus, with the burden of proof now shifted to the City, that requires each department to take into consideration how it aims to prove that a proposed fee or fee increase is not a tax. The following analytical framework can assist in this regard.

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Burden of Proof: A 3-step Analysis

1. The City must make a threshold determination whether one of the exceptions applies.
o If none apply, it is a tax subject to voter approval.

2. If Exceptions 1, 2, or 3 apply, the City must also show that the fee revenue will not exceed the reasonable costs of providing the related governmental activity (at the aggregate level).

3. Finally, the City must show that the costs are fairly allocated to the individual payors.

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General/Measure U (G/MU) Fund Economic Uncertainty
Reserve (EUR) Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents

1. Purpose

2. Background

3. Policy

3.1 Minimum and Target Reserve Levels

3.2 Methods to Achieve Funding Levels

3.3 Criteria for Expenditure of Reserve Funds

3.4 Timeline for Replenishment of the EUR

Related Regulatory References
April 26, 2016 Council Motion 2016-0122
June 11, 2019 Resolution 2019-0248

Effective Date: July 1, 2019

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General/Measure U (G/MU) Fund Economic Uncertainty
Reserve (EUR) Policy

1. PURPOSE

To establish the targeted level of G/MU Fund operating reserves, a basic component of a financially strong city. Adequate reserves help sustain City operations when adverse or unexpected circumstances affect the City, providing resources to minimize service disruption in the event of temporary revenue shortfalls or unpredicted one- time expenditures. This policy establishes the amounts the City will strive to maintain in its Economic Uncertainty Reserve (EUR) and the conditions under which the reserve may be used.

2. BACKGROUND

Financial reserves strengthen the City’s financial status and provide valuable resources for unexpected events. Every fund of the City represents a stand-alone financial set of accounts and has its own operating characteristics, financial capabilities, and constraints. The level of reserves needed should be based on the financial and operating characteristics of each fund. In June 2011, the City Council adopted a goal of establishing a General Fund EUR equivalent to 10% of annual General Fund revenues.

According to the Government Finance Officers Association (GFOA), it is essential that governments maintain adequate levels of fund balance to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) in order to protect taxpayers and employees from unexpected changes in financial conditions.

GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain an unrestricted budgetary fund balance in their General Fund of no less than two months of regular general fund operating revenues or regular general fund operati ng expenditures (http://www.gfoa.org/appropriate- level- unrestricted-fund-balance-general-fund).

This policy establishes 10% of annual G/MU Fund budgeted revenues as the minimum level of funding in the City’s EUR and establishes two months of operating expenditures as a target reserve level. The policy also outlines the methods the City will utilize t o achieve the target reserve level, defines the conditions under which these funds can be used and describes how the City’s expenditure and/or revenue levels will be adjusted to match any new economic realities that are causing the use of fund balance reserves as a financing bridge.

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3. POLICY

3.1 Minimum and Target Reserve Levels

The City will maintain an EUR at a minimum of 10% of budgeted G/MU Fund revenues. The City will seek to achieve and maintain a G/MU Fund EUR equal to two months of regular ongoing G/MU Fund expenditures, including transfers ( i.e., 17% of G/MU Fund expenditures).

The EUR shall be reported as a commitment of fund balance in the G/MU Fund for external financial reporting. Appropriations from the EUR may only be made by a vote of the City Council to meet a critical, unpredictable financial need.

3.2 Methods to Achieve Funding Levels

The annual budget will include a minimum fund balance of 0.50% of total budgeted expenditures. If these resources are not required during the fiscal year this amount shall be transferred to the EUR. Additionally, unbudgeted one -time G/MU Fund revenues received in a fiscal year, which are not required to balance the budget as part of the midyear review or fiscal year -end close, shall be added to the EUR until the target reserve level is met.

During the budget process, staff shall review the current and five -year projected reserves to ensure that they are appropriate given the economic and financial risk factors the City faces.

3.3 Criteria for Expenditure of Reserve Funds
The EUR is intended to contend with significant short -term issues, inclusive of unexpected revenue shortfalls, higher than anticipated expenditures, or declared emergencies.

It is the intent of the Council to limit use of the EUR to address unanticipated, non- recurring needs. Reserves shall not normally be applied to recurring annual operating expenditures. The EUR may, however, be used strategically to allow time for the City to restructure its operations in a deliberate manner (as might be required in an economic downturn), but such use will only take place in the context of a Council-adopted long-term plan.

3.3 Timeline for Replenishment of the EUR

If the EUR is drawn down below the minimum level, a plan will be developed and implemented to replenish the reserve, generally from future surpluses.

Replenishing the EUR will be a priority use of one -time resources. Generally, the City should seek to replenish the EUR to the minimum reserve level within one to three years.

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Interfund Loans

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents

1. Purpose

2. Background

3. Policy

3.1 Long-term Loans

3.2 Short-term Loans

3.3 Prohibited Uses

Related Regulatory References
Council Motion 2015-0141

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Interfund Loans Policy

1. PURPOSE
The City’s Interfund Loan Policy documents the methods used by the City to demonstrate prudent financial management over interfund loans. The policy:
• Requires City Council approval of interfund loans, except for short-term working capital loans,
• Permits short-term interfund loans for working capital to cover Council- approved reimbursable grants and projects and other temporary timing differences in cash flows, and
• Prohibits interfund loans from being used to solve ongoing structural budget issues or hindering the accomplishment of any function or project for which the lending fund was established.

2. BACKGROUND
Interfund loans are the lending of cash from one City fund to another for a specific purpose and with a requirement for repayment. The practice of interfund loans is a recognized and necessary aspect of municipal finance. Such loans are typically short-term in nature and constitute the allocation of resources between individual funds for working capital purposes.

3. POLICY

3.1 Long-term Loans
Interfund loans, other than short-term working capital loans, must be approved by the City Council. Council approval will include the following terms of the loan:
• Purpose of Interfund Loan
• Identification of the source fund
o Availability of unrest ricted funds in the source fund o Review of multi-year plans for use of source fund cash o Analysis of legal or contractual restrictions
• Repayment of Interfund Loan
o Repayment must have a payment source and funding stream o Specific repayment schedule
o Interest imposed at a rate equal to at least investment earnings if loan did not occur
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• Other Considerations
o Feasibility of repayment
o Internal controls to monitor repayment

3.2 Short-term Loans
Short-term interfund loans for working capital to provide cash for Council- approved reimbursable grants and projects, are permitted. Short-term working capital loans are also permitted for temporary timing differences in cash flows when expenditures are incurred before revenue is collected. The source funds for working capital interfund loans are the Risk Fund and the General Fund.

3.3 Prohibited Uses
• Interfund loans will not be used to solve ongoing structural budget issues.
• Interfund loans will not hinder the accomplishment of any function or project for which the lending fund was established.

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Investment Policy

Scope: CITYWIDE

Administrative Entity
Office of the City Treasurer
(916) 808-5168
[email protected]

Regulatory References
Council Resolution 2020-0236

Effective Date: July 28, 2020

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Investment Policy
The purpose of this document is to set forth the investment and operational policies for the management of the public funds of the City of Sacramento. These policies are designed to ensure the prudent management of public funds under management by the Sacramento City Treasurer.

Although the Sacramento City Charter generally provides the City Treasurer with the authority to deposit and invest funds in the City Treasury, undertaking of the investment activities by the City Treasurer is subject to the annual delegation of investment authority from the City Council as the body being primarily responsible for the investment of City funds. Accordingly, these policies are applicable to the management of City treasury funds as that task may be delegated to the City Treasurer.

A copy of this policy statement will be provided to all investment brokers and dealers and others in related fields doing business with the City of Sacramento, and will be provided to other interested parties on request. In addition, this policy statement will be posted to the City Treasurer’s page of the City’s internet website.

An entity retained to provide investment-related services to the City of Sacramento shall not render services unless and until it confirms, in writing, that it has received and reviewed this policy statement, and is prepared to implement its terms, as appl icable to the services to be provided by the entity.

I. Governing Authority; Scope
Section 73 of the Sacramento City Charter vests the City Treasurer with authority to deposit and invest funds of the City treasury, subject to the annual delegation of investment authority from the City Council to the City Treasurer pursuant to Government Code section 53607. These policies shall apply to the City Treasurer’s investment of City treasury funds.

The City Treasurer investment program for all treasury funds shall be operated in conformance with applicable federal, state, and other legal requirements. This policy statement is intended to conform to Government Code sections 53600, et seq, and interpretation of these policies shall be consistent with those statutes.

II. Objectives
A. Primary Objectives
The primary objectives of investment activities, in order of priority, are safety, liquidity, and yield:

1. Safety
Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective is to mitigate credit risk and interest rate risk. Credit Risk. Credit risk is the risk of loss due to the failure of the security issuer or backer.

The City will minimize credit risk by:
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(a) Credit Risk. Credit risk is the risk of loss due to the failure of the security issuer or backer.

The City minimize credit risk by:
i. Limiting investments to the types of securities listed in Section VI of this Investment Policy
ii. Re-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business in accordance with Section IV.
iii. Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized.
(b) Interest Rate Risk. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates. The City will minimize interest rate risk by:
i. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity ii. Investing operating funds primarily in shorter-term securities, money market mutual funds, the Local Agency Investment Fund (“LAIF”) managed by the State of California, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy.

2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or LAIF which offer same day liquidity for short- term funds.

The staff of the City Treasurer’s Office shall (i) monitor the City’s budget formation and approval process and (ii) actively engage with City staff to assess and manage cash flow needs of the City.

3. Yield
The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the low level of risk being assumed. 479
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Securities shall generally be held until maturity with the following exceptions:
(a) A security with declining value may be sold early to minimize loss of principal. (b) A security swap would improve the quality, yield, or target duration in the portfolio.
(c) Liquidity needs of the portfolio require that the security be sold. (d) Where the sale of the security to realize capital, gains is advisable in the judgment of the investment officers.

B. Other Objectives

1. Pooling of Funds
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

Investment income will be allocated to the various funds proportionately based on their respective participation and in accordance with generally accepted accounting principles. The pooling of funds shall have no effect on the legal character of the pooled funds, i.e. funds whose use is restricted by law shall remain restricted and cannot be used as part of the City’s general fund.

2. Local Considerations
Where possible, as a secondary objective, funds may be invested for the betterment of the local economy. The City Treasurer may accept a proposal from an eligible institution that provides for a reduced rate of interest provided that such institution documents the use of deposited funds for local community development projects. • An eligible local community institution is defined as being headquartered in counties in and around Sacramento, including but not limited to Placer, El Dorado, Sutter, and Yolo.
• To be recognized as an eligible local community institution the entity must have had a 5 star “Superior” Rating from either Bauer Financial or IDC Financial Publishing for the past 4 consecutive quarters. Eligible institutions must submit their quarterly ratings to the City Treasurer’s office and maintain their 5-star rating continuously. If an eligible local community institution drops below the required 5 -star rating, they will have 1 quarter to cure the deficiency. If in the following quarter the institution does not re- achieve a 5- star rating with the same independent rating company, the City may withdraw funds allocated to that institution.
• Institutions who receive deposits from the City as part of a local community investment not eligible for FDIC insurance must be secured by collateral of 110% as described in California Government Code Section 53651 and 53652.
• Institutions who receive deposits from the City as part of a local community investment must commit to invest 50% of the deposits in the local community, 480
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within the City of Sacramento City limits.
• Institutions must provide a detailed semi-annual report to the City Treasurer’s Office that shows evidence that the institution is meeting the 50% local community investment mandate on the City’s deposits. If an institution cannot provide evidence that it has met the 50% local community investment criteria, the City may withdraw its deposits from the institution. • As a matter of prudence, the amount the City Treasurer may invest in eligible local community institutions will be limited to 3.5% of the institution's total assets, as determined by the quarterly independent financial reports. If, during the course of an investment with an eligible local institution, the City exceeds the maximum 3.5% deposit level, the City may withdraw any funds in excess of the limit to cure the deficiency.
• The city may place deposits with eligible local community institutions up to a total of 10% of the total in the City’s portfolio. If this amount is exceeded the City may withdraw funds from any institution to reduce the total community investment back below the maximum.

Although an eligible local community institution may meet all of the above stated criteria, it is not a guarantee that the City will maintain deposits. The City Treasurer retains the right to make deposit and withdrawal decisions based on the Primary Objectives of the Investment Policy stated above.

3. Favored Investments
Investments are encouraged in entities that have demonstrated significant commitment and cooperation (a) with foreclosure prevention efforts, including, without limitation, temporary moratoriums on foreclosures, renegotiation of the principle mortgage balances to reflect current values, and other good faith negotiations with homeowners in regard to delinquent mortgages, and/or (b) in offering free or low-cost banking services to low - and moderate- income residents who are part of the traditionally “unbanked” or “under-banked” population. The City Treasurer may take into consideration the level of effort an entity expends in either the foreclosure relief or community banking areas, or both, when considering competing investments. If the City Treasurer is satisfied with the record of an entity in regard to such efforts, then the Treasurer’s investment staff may invest in the securities of the entity, provided that the investment is otherwise consistent with the requirements of this Investment Policy statement.

III. Standards of Care
A. Prudence
In accordance with Government Code section 53600.3, the standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures developed by the City Treasurer and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided extraordinary deviations from expectations are reported by subordinate investment 481
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officers to the City Treasurer in a prompt fashion and that the sale of securities is carried out in accordance with the terms of this policy.

Pursuant to the "prudent person" standard, investment officers shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Funds shall be managed not for speculation where the sole goal of a transaction is to increase principal balances, but for investment intended to earn a reasonable rate of return on invested funds, considering the probable safety of their capital as well as the probable income to be derived. Despite that investment transactions are undertaken with care pursuant to the “prudent person” standard, it is recognized that invested funds are subject to the vagrancies of the markets beyond the control of the investment officers.

B. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions.

Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and investment officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

Investment officers shall file State Fair Political Practices Commission’s Statement of Economic Interests and make the disclosures required by the City’s conflict of interest policies.

C. Delegation of Authority
Authority to manage the City treasury investment program is granted to the City Treasurer pursuant to Sacramento City Charter section number 73, unless the Charter specifically indicates otherwise, subject to annual delegation of investment authority by the City Council pursuant to Government Code section 53607. Pursuant to the City Charter, the City Treasurer also is authorized to appoint deputies and employees, as prescribed by Council resolution, to implement the investment program. The City Treasurer and those employees appointed by the Treasurer to perform investment activities pursuant to these policies shall be referred to herein collectively as “investment officers.”
Investment officers shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy (“Investment Procedures Manual”). Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures manual. The investment officers shall be responsible 482
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for all transactions undertaken and shall establish a system of controls to regulate their activities.

IV. Authorized Financial Institutions, Depositories, and Broker/Dealers A. Selection
Financial institutions and depositories involved in implementing the City Treasurer’s investment activities are selected on a competitive basis in order to obtain high quality services by reliable, reputable and stable entities. The competitive process may be formal or informal, as determined by the City Treasurer in his or her discretion, with the objective of obtaining the quality of services necessary to serve the best interests of the City and relevant stakeholders, with services performed at competitive fees and rates. Such processes may occur from time to time by the City Treasurer’s Office whether at the time the City Treasurer contracts for the general banking services or otherwise. The firm or firms providing investment-related services may or may not be, at the discretion of the City Treasurer, the same firm providing general banking services. Among the factors that the City Treasurer may consider in obtaining such services are (i) minimum qualifications pertaining to capacity, satisfaction of requirements to conduct required business, i.e. licenses, permits, registrations, certifications, etc.; (ii) capitalization; (iii) insurance and bonding; (iv) safekeeping and custodial experience; (v) status in good standing; (vi) ability and capacity of the firm to provide a full range of services as may be required by the City Treasurer; (vii) extent of the value added by an entity over the services provided by firms then- providing investment-related services to the City Treasurer’s Office; and (viii) other attributes as may be determined by the City Treasurer from time to time. The City Treasurer may determine the number and nature of firms to be retained to provide investment-related services based upon the volume of existing and projected investment wor k. Those firms that are selected to execute transactions on behalf of the City shall do so in a good faith manner and in the best interests of the City, and shall disclose to and advise the investment officers of material facts that bear upon the pricing of a given transaction order given by investment officers. All financial institutions executing investment transactions shall satisfy the requirements of Government Code section 53601.5. All depositories shall satisfy the institutional qualifications and security requirements described in Government Code sections 53648 et seq.

B. Performance Review
All financial institutions and depositories shall maintain the qualifications and attributes deemed appropriate by the City Treasurer, including, but not limited to those enumerated in subsection A above, and shall perform their duties in a satisfactory manner. The City Treasurer, at his or her discretion, shall conduct periodic performance reviews to ensure the institutions and depositories are providing services in the best interests of the City.

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V. Safekeeping and Custody
A. Delivery vs. Payment
All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds.

B. Safekeeping
Securities will be held by an independent third- party custodian selected by the City Treasurer. The inventory and value of cash and securities held by the custodian will be reconciled on a daily basis. The custodial institution shall annually provide a copy of their most recent report on internal controls in accordance with Statement on Standards for Attestation Engagements No. 18, or SSAE 18.

C. Internal Controls, Investment Procedures Manual
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to guide the activities of the investment officers to ensure that the assets of the City are protected from loss, theft or misuse. Details of the internal controls system shall be documented in the Investment Procedures Manual and shall be reviewed and updated annually, as needed. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. The internal controls structure shall address the following points:

1. Prevention of collusion

2. Separation of transaction authority from accounting and recordkeeping

3. Custodial safekeeping

4. Avoidance of physical delivery securities

5. Clear delegation of authority to subordinate staff members

6. Written confirmation of transactions for investments and wire transfers

7. Development of a wire transfer agreement with the lead bank and third-party custodian
Accordingly, the City Treasurer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures or alternatively, compliance should be assured through the City annual independent audit.

VI. Suitable and Authorized Investments
A. Investment Types
Allowable investments of funds not required for the immediate use by the City are limited to those described in Government Code sections 16429.1 (Local Agency Investment Fund), 53601 (investment of surplus), 53601.8 (certificates of deposit), 484
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53635 (purchase of commercial paper by pools) and 53638 (bank deposits), as such statutes may be amended or renumbered from time to time. These allowable investments, and their permitted amounts and attributes, are set forth in a summary prepared and updated from time to time by the California Debt and Investment Advisory Commission (“CDIAC”) entitled, “Allowable Investment Instruments Per State Government Code, Applicable To All Local Agencies,” included CDIAC’s “Local Agency Investment Guidelines” publication that may be located at http://www.treasurer.ca.gov/cdiac/LAIG/guideline.pdf
B. Extended Maturities
The investment officers will observe the maximum maturity term of five years on various of the allowable investments. However, where a particular investment is found by the investment officers to be advantageous and consistent with these policies, but for a nominal exceedance of a 5- year maximum maturity caused by effect of the security’s issuance and maturity dates, or the settlement date of the transaction, or both, they are authorized to invest in the following obl igations with remaining maturities of five (5) years, plus not more than thirty (30) calendar days:

U.S. Treasury obligations, obligations of California or other states, California local agency obligations, U.S. Agency obligations and medium -term notes. The City Treasurer will provide notice to the City Council of such investments within periodic investment reports made to the Council. See, Section VIII.A. Pursuant to Government Code section 53601, investment officers shall not make investments in instruments with maturities longer than five (5) years, plus thirty (30) calendar days, without prior approval of the City Council.

C. Securities Lending
The investment officers at their discretion may engage in securities lending activities pursuant to securities lending agreements (as defined in Government Code section 53601(j)(5)(D)) provided that the following are satisfied:

1. Securities lending transactions are to be governed by agreements entered into by the City Treasurer and the agent or agents the City Treasurer engages to perform such transactions provided that such agreements (a) comply with the requirements of Government Code section 53601(j), and
(b) require the payment of cash collateral equal to or greater than 102% of the market value of the loaned security at the time of the loan.

2. The securities lending agreements may allow for the use of cash collateral for the reinvestment in securities that
(a) comply with the requirements of Government Code section 53601(j)(3)(D), and
(b) are securities whose direct investment is authorized by Government Code section 53601 and these policies,
(c) provided that nothing herein shall preclude the City Treasurer from entering into securities lending agreements that reduces the scope of 485
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investments made with cash collateral to something less than that allowed under subsections (a) and (b) above.

VII. Investment Parameters
A. Diversification
The City shall diversify its investment portfolio. To minimize risk of loss resulting from the over-concentration of assets in a specific maturity, issuer, or type of securities, all cash and cash equivalent assets in all City funds shall be diversified by maturity, issuer, and class of security. Diversification strategies shall be determined and revised on an ongoing basis by the investment officers for all funds covered by these investment policies. In establishing specific diversification strategies, these investment policies shall apply. The investment officers shall emphasize that portfolio maturities will be staggered to avoid undue concentration of assets in a specific maturity sector. Maturities selected shall provide for stability of income and reasonable liquidity.

B. Cash Management Funds

1. Liquidity shall be assured through practices ensuring that the payroll dates and dates of large disbursements are covered through maturing investments or marketable U.S. Treasury bills.

2. Positions in securities having potential default risk shall be limited in size pursuant to the maximum limits set forth in Government Code section 53601.

See Attachment A. Such securities include the following: Commercial paper; negotiable certificates of deposit, and Banker’s Acceptances.

3. Risks of market price volatility shall be controlled through maturity diversification.

4. Liquidity risk: Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as LAIF, money market funds, overnight repurchase agreements, and/or marketable securities that can be sold to raise cash in one day’s notice, to ensure that appropriate liquidity is maintained to meet ongoing obligations.

C. Competitive Bids
The investment officers shall obtain competitive bids from at least two brokers or financial institutions on all purchases and sales of investment instruments executed on the secondary market for consideration in excess of $15 million per purchase transaction.

VIII. Reporting
A. Investment Reports
The City Treasurer shall present to the City Council, the City Manager and the City’s internal auditor monthly investment reports that include the transactions as required by Government Code section 53607.

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B. Marking to Market
For purposes of preparation of the investment reports, the market value of the portfolio shall be calculated. In defining market value, considerations should be given to the GASB Statement 31 pronouncement.

C. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified within established against which portfolio performance shall be compared on a regular basis. The benchmarks shall be reflective of the actual securities being purchased and risks undertaken.

IX. Policy Considerations
A. Exemption
Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy, provided that the City Treasurer may take steps he or she deems appropriate to address non- compliant investments in the best interest of the City and pool participants. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.

B. Amendments
This policy shall be reviewed annually by the investment officers. Any change must be approved by the City Treasurer, followed by review and consideration by the City Council pursuant to Section X of these policies.

X. City Council Consideration of Investment Policy
This policy shall be reviewed and considered by the City Council on an annual basis pursuant to Government Code section 53646(a)(2).

XI. Miscellaneous
A. Statutory References
All statutory references cited in these policies shall refer to the statute as it may be amended or renumbered from time to time.

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Other Post-Employment Benefits (OPEB)

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents
Purpose
Background
Policy

Effective: February 16, 2016

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Other Post-Employment Benefits (OPEB) Policy

1. PURPOSE

In order to assure that the City’s Other Post-Employment Benefits (OPEB) program is financially sustainable, the program should accumulate adequate resources in a systematic and disciplined m anner over th e active servi ce life of benefitting employees. The City’s OPEB Funding Policy documents the met hod the City will use to determine its actuarially determined contributions to fund the long-term cost of benefits to City employees and retirees. The policy also:

• Demonstrates prudent financial management practices;
• Promotes long-term and strategic thinking;
• Provides guidance in making annual budget decisions;
• Reassures bond rating agencies; and
• Demonstrates to employees and the public how OPEB will be funded to ensure adequate funding for negotiated benefits.

2. BACKGROUND

The City provides OPEB benefits to active employees hired before specific dates based on negotiated labor agreements and the unrepresented resolution. The City’s OPEB benefits consist of a cash contribution benefit for retiree medical and dental benefits and subsidized premiums resulting from blending retirees and active employees in the same risk pool. For police and miscellaneous employees, the cash benefit amount is $300 per month for retirees only and $365 per month for retirees with dependents. Police employees hired after September 3, 2013, and miscellaneous employees hired after June 30, 2012, are not eligible for OPEB benefits. For fire employees hired before January 14, 2015, the cash benefit amount is the total of the lowest cost $25 co- pay health plan premium for one plus an additional 5.28 percent of that cost; the lowest cost PPO dental plan for one; and $25.

Fire employees hired on or after January 14, 2015, are eligible for a cash benefit amount up to $774 monthly from the date of retirement until the retiree reaches Medicare eligibility age, and up to $387 monthly from the date the retiree reaches Medicare eligibility. Fire employees pay $45 per month, with a City match of $45 per month, deposited to a separate trust fund to pay for the benefit.

The City’s OPEB cash benefit is prorated based on years of service – 50 percent for employees with ten to fifteen years of service, 75 percent for employees with fifteen to twenty years of service and 100 percent for employees with twenty years of service or more.

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Currently, the City has $363 million in underfunded long- term liabilities associated with retiree medical benefits from all funding sources, $309 million attributable to the General Fund. While the benefit was historically funded on a pay -as-you-go (pay- go) basis, paying only the actual cost of the benefit for retirees in the current fiscal year, financial accounting standards require the City to account for the benefit as if it were actuarially funded. If the City does not replace the current plan of pay -go combined with minimal contributions to the City’s relatively new OPEB trust fund, the City’s pay-go obligation will continue to grow, consuming resources that would otherwise pay for vital programs and services.

Consistent with best practices, in January 2013 Council authorized the establishment of an irrevocable trust with an initial General Fund investment of $2 million. Another $2 million was contributed to the trust in FY2013/14. The FY2014/15 and FY2015/16 ap proved budgets each included a $1 million contribution to the trust, bringing the total funding for the trust to $6 million. The approved FY2014/15 and FY2015/16 Budget Resolutions also included authority to direct available budgetary resources in the pension budget accounts at the end of the fiscal year to the OPEB Trust.

3. POLICY

3.1 OPEB Actuarially Determined Contribution (ADC)

The City will engage an OPEB actuary to determine the City’s ADC based on biennial actuarial valuations. The ADC will include the normal cost for current service and amortization of the unfunded liability. The normal cost 1 will be
calculated using the entry age normal cost method using appropriate economic and non-economic assumptions approved by the City.

The City will review the actuarial valuations to validate the completeness and accuracy of the employee census data and the reasonableness of the actuarial assumptions. Actuarial valuations involve estimates and assumptions about
the probability of occurrence of events far into the future. Actuarially determined am ounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future.

3.2 Funding the ADC
The City will continue to appropriate in the annual budget for contributions to the OPEB Trust and the pay-go costs of OPEB for current retirees, as well as use one-time savings in pension contributions to make additional contributions to the OPEB Trust.

1 Normal Cost – the current year cost of the program to provide the benefit for current employees in the future. 491
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The City will fully fund the ADC within 10 years, or by Fiscal Year 2025-26, by reducing the gap between its current OPEB funding and the ADC with a combination of City contributions, employee contributions, and OPEB plan changes.

The City will achieve “full funding” of its OPEB plan within 30 years, or by Fiscal Year 2045-46, with a 20-year amortization of the unfunded liability after the 10- year ramp-up period. Full funding of the OPEB plan is defined as funding 100 percent of the accrued liability on an actuarial basis.

3.3 Transparency and Reporting
Funding of the City’s OPEB should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and Sacramento residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the biennial actuarial valuations for the City’s OPEB plan shall be made available to the City Council.
b. The City’s Comprehensive Annual Financial Report shall be published on its website. This report includes information on the City’s OPEB plan, contributions to the OPEB Trust, and the funded status of the plan. c. The City’s annual operating budget shall include appropriations for contributions to the OPEB Trust and pay-go costs.

3.4 Review of Funding Policy
Funding OPEB requires a long-term plan. The City will review this policy at a minimum biennially, coincident with preparation of the actuarial valuations, to determine if changes to t his p olicy are necessary t o ensure adequate resources are being accumulated to fund OPEB benefits. Pol

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Pension Funding

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents

1. Purpose

2. Background

3. Policy

3.1 CalPERS ADC

3.2 SCERS ADC

3.3 Transparency and Reporting

3.4 Review of Funding Policy

Related Regulatory References
Council Motion 2015-0095 (May 5, 2015)
CalPERS
SCERS

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Pension Funding Policy

1. PURPOSE

The City’s Pension Funding Policy documents the met hod the City w ill use t o determine its act uarially determined contr ibutions to f und the long-term cost of benefits to the plan participants and annuitants. The policy also:

• Provides guidance in making annual budget decisions; • Demonstrates prudent financial management practices; • Reassures bond rating agencies; and
• Shows employees and the public how pensions will be funded.

2. BACKGROUND

The City provides defined benefit retirement benefits through the California Public Employees’ Retirement System (CalPERS) and the Sacramento City Employees’ Retirement System (SCERS). CalPERS is a multiple -employer public employee defined benefit pension plan. SCERS is a single-employer defined benefit pension plan.

All full-time and certain part-time City employees hired after January 28, 1977 and City safety employees, regardless of date of hire, are eligible to participate in CalPERS. CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and their beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance.

All full-time, non-safety employees hired before January 29, 1977, were eligible to participate in SCERS. SCERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by the City Charter.

The financial objective of a defined benefit pension plan is to fund the long-term cost of benefits provided to the plan participants. In order to assure that the plan is financially sustainable, the plan should accumulate adequate resources in a systemati c and disciplined manner over the active service life of benefitting employees. This funding policy outlines the method the City will utilize to determine its actuarially determined contributions to fund the long- term cost of benefits to the plan participa nts and annuitants.

Pension Funding: A Guide for Elected Officials , issued by eleven national groups including the U.S. Conference of Mayors, the International City/County Management Association, and the Government Finance Officers Association, established the following five general policy objectives for a pension funding policy:
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1. Actuarially Determined Contributions. A pension funding plan should be based upon an actuarially determined contribution (ADC) that incorporates both the cost of benefits in the current year and the amortization of the plan’s unfunded actuarial accrued liability.

2. Funding Discipline. A commitment to make timely, actuarially determined contributions to the retirement system is needed to ensure that sufficient assets are available for all current and future retirees.

3. Intergenerational equity. Annual contributions should be reasonably related to the expected and actual cost of each year of service so that the cost of employee benefits is paid by the generation of taxpayers who receives services from those employees.

4. Contributions as a stable percentage of payroll. Contributions should be managed so that employer costs remain consistent as a percentage of payroll over time.

5. Accountability and transparency. Clear reporting of pension funding should include an assessment of whether, how, and when the plan sponsor will ensure sufficient assets are available for all current and future retirees.

3. POLICY

3.1 CalPERS ADC

CalPERS actuaries will determine the City’s ADC to CalPERS based on annual actuarial valuations. The ADC will include the normal cost for current service and amortization of any under-funded amount. The normal cost will be calculated using the entry age normal cost method using economic and non- economic assumptions approved by the CalPERS Board of Administration.

The City will review the CalPERS annual actuarial valuations to validate the completeness and accuracy of the member census data and the reasonableness of the actuarial assumptions.

3.2 SCERS ADC
The City will determine its ADC to SCERS using the following principles:

a. The ADC will be calculated by an enrolled actuary and will include the normal cost for current service and amortization to collect any under- funded amount.
b. The normal cost will be calculated using the entry age normal cost method using the following assumptions:

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i. Economic assumptions such as the investment rate of return and average salary increase will be reviewed with the actuary to confirm reflection of the best anticipated experience.
ii. Non-economic assumptions, such as rates of separation, disability, retirement, mortality, etc. shall be determined by City management in consultation with the actuary to reflect current experience. c. The un-funded actuarial accrued liability, or the difference between the accrued liability and actuarial value of assets, will be amortized over a declining number of years given the closed status of the plan. d. The actuarial value of assets will be determined using a 3- year smoothed market value to minimize volatility of the City’s ADC. e. The City’s ADC to SCERS will be stated in an annual contribution amount, rather than as a percentage of pay, given the closed status of the plan.

3.3 Trans parency and Reporting
Funding of the City’s pension plans should be transparent to vested parties including plan participants, annuitants, the SCERS Administrative, Investment, and Fiscal Management (AIFM) Board, the City Council and Sacramento residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the annual actuarial valuations for the City’s CalPERS plans shall be made available to the City Council.
b. A copy of the annual actuarial valuation for SCERS shall be made available to the City Council and the SCERS AIFM Board. c. The City’s Comprehensive Annual Financial Report shall be published on its website. This report includes information on the City’s annual contributions to the pension systems and their funded status. d. The City’s annual operating budget shall include the City’s contributions to SCERS and CalPERS.

3.4 Review of Funding Policy
Funding a defined benefit pension plan requires a long-term horizon. As such, the City will review this policy at least every five years to determine if changes to this policy are needed to ensure adequate resources are being accumulated.

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Prior Year Savings Guideline Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents
Purpose
Background
Policy

3.1 Criteria for Prior Year Savings Guideline Policy

3.2 Funding Priorities

Related Regulatory References
Council Motion 2025-0045

Effective Date: February 11, 2025

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Prior Year Savings Guideline Policy

3. PURPOSE
The purpose of this policy is to create a new funding mechanism to address the City’s long-term liabilities and long-term fiscal challenges.

4. BACKGROUND
The City is facing significant financial challenges. The City’s budget is facing a structural deficit with the pace of expense growth exceeding revenue growth in the Fiscal Year (FY) 2024/25 Approved five- year forecast. In addition, the City has significant unfunded liabilities including $1.4 billion in unfunded pension liabilities, $1.4 billion in unfunded capital and deferred maintenance needs over the next five years, and $0.2 billion in unfunded Other Post Employment Benefits (OPEB) liabilities for retirees. To support budget balancing and provide dedicated funding to address the City’s long-term liabilities,

3. POLICY

3.1 Criteria for Prior Year Savings:

Prior year savings include net positive year -end budgetary results from the General Fund, Measure U Fund and/or any future general-purpose fund.

3.2 Funding Priorities:
• 1st Priority – Budget balancing if there is a projected deficit in the coming budget year. Council may consider strategic one-time investments.

• 2nd Priority – Restore Economic Uncertainty Reserve to the minimum balance established by Council policy (currently 10% of General/Measure U revenues) if there is no projected budget deficit in the coming budget year.

• 3rd Priority – If the first two priorities are met, any remaining prior year savings will be allocated as follows:
• One-third – To a new special fund for capital projects and deferred maintenance.
• One-third – To a new special fund for unfunded pension liabilities and/or OPEB liabilities.
• One-third – Discretionary.

)

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Risk Management Funding and Reserve Policy

Scope: CITYWIDE

Administrative Entity
Department of Finance
(916) 808-5845
[email protected]

Table of Contents

1. Purpose

2. Background

3. Policy

Related Regulatory References
Motion: 2015-0094 (May 15, 2015)

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Risk Management Funding and Reserve Policy

1. PURPOSE

The City’s Risk Management Funding Policy documents the City’s approach to providing adequate financial resources to fund the City’s General and Auto Liability and Workers Compensation Programs and establishing and maintaining adequate reserves in the Risk Management Internal Service Fund.

2. BACKGROUND

The City has been self -insured for workers' compensation and for general and auto liability since 1971 and 1976, respectively. The General and Auto Liability and Workers Compensation Programs charge City Departments and funds for the costs of providing for claims, as well as for the cost of administering the claims.

3. POLICY

(a) In order to methodically and consistently measure the City’s projected claims, the City will contract with a professional outside actuary to prepare annual actuarial valuation reports for both categories of claims. Program funding will be based on the annual actuarial valuation reports. (b) The City’s funding policy will provide program funding at the 80 percent confidence level, including recognition of anticipated investment income.

Confidence level is used by actuaries to determine the realistic possibilities that a given funding rate will be sufficient to cover all claims that might be incurred in any one program year. An 80 percent confidence level indicates that the funding rate should be adequate eight out of 10 years. (c) The City shall maintain a Risk Management Reserve dedicated to mitigation of the risk of loss arising from potential claims and lawsuits against the City for general and auto liability as well as workers’ compensation claims. The Risk Management Reserve shall be funded at the following levels:

General and Auto Liability – In addition to annual funding of projected claims at the 80 percent confidence level, the City shall maintain a reserve equal to two Self-Insured Retention allotments.

Workers’ Compensation – In addition to annual funding of projected claims at the 80 percent confidence level, the City shall maintain a reserve equal to two SIR allotments.

If the SIR amount changes in future years, the two SIR allotments will continue to be the reserve requirement for both programs.

If either program maintains a balance above the minimum funding and reserve requirement, the excess reserves will be used to subsidize City 500
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contributions over a 1 -5 year period depending upon the amount of the excess and the City’s economic condition.

If either program has excess claims requiring additional contributions to the fund, the City will increase contributions over a 1- 3 year period depending on the amount of the shortfall and the City’s economic condition to get to the minimum funding and reserve requirement.

If one program has excess reserves and the other program has a shortfall, transfers between programs may be implemented to reduce or eliminate the program shortfall.

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Sacramento City Employees’ Retirement System (SCERS)
Investment Policy

Scope: CITYWIDE

Administrative Entity
Office of the City Treasurer
(916) 808-5168
[email protected]

Table of Contents

1. Introduction

2. Investment Philosophy

3. Investment Goals and Objectives

4. General Investment Policies

5. Suitable and Authorized Investments

6. Authorized Financial Institutions, Depositories, Broker/Dealer

7. Safekeeping and Custody

8. Reporting

9. Policy Considerations

Regulatory References
Council Resolution 2020-0236

Effective Date: July 28, 2020

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Sacramento City Employees’ Retirement System (SCERS)
Investment Policy

1. INTRODUCTION

This Investment Policy encompasses the investment goals, objectives and policies of the Sacramento City Employees' Retirement System (“SCERS” or “System”). The purpose of the Investment Policy is to assist the Administration, Investment and Fiscal Management Board (“AIFM Board” or “Board”) and its Investment Managers
1 to effectively supervise and monitor
SCERS’ investment program.

Pursuant to Section 383 of the Sacramento City Charter (“Charter”), the AIFM Board is charged with the exclusive responsibility of managing and investing the System’s funds. Also, pursuant to Section 383 of the Charter, the Board has adopted, and the Sacramento City Council has approved, this Investment Policy, which governs the investment activity undertaken by the Board.

This Investment Policy addresses the following issues:
• The investment goals of SCERS’ investment program; and

• The general investment policies for the management of funds of the System.

The Investment Policy is designed to provide sufficient flexibility to capture investment opportunities as they may occur, while setting forth reasonable parameters to ensure prudence and care in the execution of the investment program.

2. INVESTMENT PHILOSOPHY

The Board believes that its investment policies, in aggregate, are to be the most important determinants of its investment success. Compliance with investment policies should therefore be monitored rigorously. The Board also believes that performance of the total portfolio and individual asset classes, as well as the performance of any retained Investment Manager, should be monitored and compared to appropriate, predetermined performance benchmarks.

The Board believes that prudent management of risk is a central element of the investment function. Toward this end, the Board believes that diversification among asset classes will reduce risk and enhance returns of the overall investment portfolio in the long term.

1 “Investment Managers” are financial or investment advisers and consultants retained by the Board to assist in the management and investment of the System’s funds. 504
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The Board believes that market efficiency and opportunities vary among asset classes and may change over extended periods of time. Therefore, the Board believes that SCERS’ portfolio management strategies should adapt over time to reflect the changing nature of capital markets.

AIFM BOARD’S MISSION STATEMENT

The Board’s primary mission in managing the System’s funds is described as follows:

• To ensure that sufficient funds will be available to provide participants and their beneficiaries with all benefits due as specified in SCERS’ retirement plan documents

• To give priority to the financial interests of participants and beneficiaries over all other financial interests;

• To comply with all applicable fiduciary standards; and,

• To reduce the cost of funding benefits for both the City of Sacramento, as the participating employer, and the individual participants of SCERS.

3. INVESTMENT GOALS AND OBJECTIVES

In accordance with Board’s Mission Statement, the overarching goal of SCERS’ investment program is to generate adequate long-term returns that, when combined with employer and employee contributions, will result in sufficient assets to pay the present and future obligations of SCERS.

The following objectives are intended to assist in achieving this goal:

• SCERS should earn, on a long-term average basis, a total real rate of return in excess of SCERS’ actuarial assumed rate of real return

• SCERS’ assets will be managed on a total return basis, which takes into account the considerable importance of the preservation of capital.

Additionally, SCERS follows the principle that different degrees of investment risk exist and each generally is rewarded with a varying degree of return.

• The Board will operate in an efficient manner that fulfills its fiduciary responsibility and contributes to the overall effectiveness of the System.

It is the purpose of the SCERS’ investment program to assure that sufficient financial assets are available to provide SCERS’ participants and their beneficiaries with all benefits due as specified in the System’s governing provisions set forth in the Charter. Therefore, the participants' and beneficiaries' financial interests shall take precedence over all other financial interests.
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To achieve these objectives, SCERS allocates its assets (asset allocation) with a strategic, long-term perspective of the capital markets.

4. GENERAL INVESTMENT POLICIES

FIDUCIARY DUTIES

The Board’s investment activity on behalf of SCERS is mandated by the Sacramento City Charter. Section 383 of the Charter establishes the broad requirement that all investments must be permissible by law for investment of trust funds pursuant to Section 16040 of the California Probate Code. Accordingly, the Board, in discharging its duties to the System, acts as a fiduciary governed by requirements imposed on trustees. In the context of the System, the Board is required to model and manage the System’s investment program based on principals outlined under the prudent person standard.

Pursuant to the "prudent person" standard, the Board and its Investment Managers shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the System, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the System. Funds shall be managed not for speculation, but for investment intended to earn a reasonable rate of return on invested funds, considering the probable safety of their capital as well as the probable income or return to be derived. Despite that investment transactions are undertaken with care pursuant to the “prudent person” standard, it is recognized t hat invested funds are subject to the vagrancies of the markets beyond the control of the investment officers.

The fiduciary duties of the Board shall be carried forward by retained Investment Managers. The policies expressed in this Investment Policy shall be as applicable to and binding upon the Investment Managers as they are to the Board.

AUTHORITY TO INVEST AND DELEGATION THEREOF

Pursuant to Section 383 of the Charter, the AIFM Board is charged with the exclusive responsibility of managing and investing the System’s funds. The Board is authorized by Sections 382 and 383 of the Charter to engage the services of one or more financial or investment advisors and consultants to assist it in the management and investment of the System’s funds, collectively referenced herein as the “Investment Managers.” As such, the Board from time to time may select and retain professionals within the investment and financial field to implement the SCERS investment program. Once retained, such professionals must acknowledge in writing their fiduciary responsibility to the System and agree that SCERS’ investment objectives and policies as expressed in this Investment Policy will be followed. It is expected that such professionals will at all times conduct themselves as fiduciaries in the same manner as does the Board.

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PERFORMANCE MEASUREMENT

The performance of professionals retained to implement the SCERS investment program shall be reported and measured against, on an absolute basis, the actuarial assumed rate of return, and, on a relative basis, one or more market benchmarks customized as appropriate to the nature, type and extent of the investments held by the System pursuant to these policies. To the extent the Board retains Investment Managers to execute specific objectives (as opposed to broad investment objectives), such benchmarks shall be appropriate to the stated objectives.

The Board shall retain the services of a consultant to determine appropriate performance benchmarks and to report on the investment performance of the System’s funds against such benchmarks. Such reports shall be made not less than on a quarterly basis and shall cover varying time periods as directed by the Board, e.g. performance over the current fiscal year, the past 12-months, one or more past calendar or fiscal years, or since inception, as appropriate with the long-range investment goals of the System’s funds.

DIVERSIFICATION

The Board shall diversify holdings in the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized.

In addition, the diversity of the portfolio among various sectors of the marketplace will minimize the impact of potential losses from any one sector. Such sectors may be demarked by market capitalization of issuers (e.g. small, middle and large capitalization corporations), by location (e.g. domestic vs. foreign corporations), by industry, and by public or private issuers of debt.

LIQUIDITY REQUIREMENTS OF THE SYSTEM

SCERS’ funds shall be managed and invested in a manner to provide liquidity sufficient to pay the ongoing expenses of the System and the payment of benefits to retirees when due. To the extent feasible, the Board shall raise funds to cover expenses and benefits in an orderly and efficient manner, while minimizing adverse effects on investment strategies implemented by the Board from the untimely forced liquidation of investments.

As part of the SCERS investment program, the liquidity needs of the System shall be addressed in accordance with the following practices:

(a) Setting aside cash generated from (i) the liquidation of securities to accomplish Board-approved asset allocations or other Board directive; (ii) the liquidation of securities in the normal course of managing the investment portfolios pursuant to this policy; and (iii) the maturity or redemption of securities as may occur from time to time within the investment portfolios; and (iv) the receipt of dividends and interest.

(b) Structuring the investment portfolio so that securities mature to meet 507
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cash requirements of the System, thereby avoiding disadvantageous sales of fixed income securities prior to maturity.

(c) Investing liquid funds required to pay current expenses and benefits in the City’s Pool A treasury pool to be managed in accordance with investment policies adopted by the City Council.

ASSET ALLOCATION AND RISK MANAGEMENT OF INVESTMENTS

Strategic Asset Allocation

The Board annually shall review and determine the allocation of investments to various broad asset classes. The asset allocation policy shall be structured for not less than a one- year period. The asset allocation policy shall be developed with the assistance of the Investment Manager, and shall address the following considerations:

• Historical and anticipated capital market performance (returns and risks) of various asset classes;

• The expected correlation of returns among various asset classes;

• Inflation, interest rates, and other economic assumptions;

• The difference between the current and the projected asset values of the Plan; and,

• The actuarial rate of return.

The allocation of investments to various asset classes shall be reviewed annually and reflected in duly adopted resolutions of the Board. The objective of the Board’s annual review of the overall asset allocation policy for the System’s funds is to provide a sound, fiduciary structure to the investment process. The asset allocation target exposures are established after thorough review and analysis of the System’s fund's expected rates of return opportunities and the associated risk of attempting to achieve the targeted return. The asset allocation policy identifies the asset classes to be used and designates the percentage allocation to each asset class in the System’s investment portfolio. If necessary to fulfill its fiduciary obligations to the System, the Board may revise the asset allocation policy at any time it determines that circumstances justify such revision.

As its primary risk management tool, the Board shall allocate the investment portfolio between broad asset classes, such as between fixed income assets (notes, bonds, other debt instruments, and secured real estate mortgages) and equity assets (such as stocks)(“First Tier Allocations”). Within each broad asset class, the Board may also provide allocations between investments within those broad classes of assets (“Second Tier Allocations”). An example of this is the allocation of equity investments amongst shares of foreign corporations, shares of large capitalization corporations and the selection of shares of corporations providing attractive dividend yields. 508
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The Board formulates the overall risk profile of the investment pool by considering the above factors and establishing the First Tier Allocations. However, at any point in time, the actual First Tier Allocations may vary from the Board-approved percentage allocations by plus or minus 5.0% without altering the intended risk profile. In establishing any Second Tier Allocations, the Board, by resolution, may establish variances of allocations to allow the Board and Investment Managers greater flexibility in making advantageous investments that otherwise are consistent with the requirements of this Investment Policy.

The discretion to shift funds within the limits of such variances in First and Second Tier Allocations may be exercised in order to take advantage of market dynamics, to preserve capital, to avoid liquidating investments at inopportune times, or for such other reason as to further the prudent investment of the System’s funds.

In the selection of specific investments, the Board and its Investment Managers shall adhere to the asset allocations and variances duly established by the Board, while adhering to the overriding prudent person standard.

Rebalancing of Portfolios

The target allocations and variances will guide the decision as to which asset class should receive contributions when available and how the investments are rebalanced from time to time. Rebalancing is an effective tool used to maintain the risk profile of the total fund and to potentially enhance returns. Risk is controlled by calling cash to reduce portfolio values in over-allocated asset categories and providing cash to increase portfolio values to under- allocated asset categories to maintain target asset allocation policy weights.

This rebalancing shall be performed periodically, as necessary, but not less than biannually, to redistribute assets to achieve the target allocations within any established variance.

5. SUITABLE AND AUTHORIZED INVESTMENTS

AUTHORIZED INVESTMENTS

Allowable investments of SCERS’ funds shall be consistent with the requirements of this Investment Policy and Sacramento City Charter Section 383. Specific allowable investment types are set forth below. As used in this Section V, exchange traded funds (“ETF’s”) may include (a) leveraged ETF’s that result in enhanced price movements over that generated by the underlying assets held by the ETF’s, (b) inverse ETF’s that incorporates a contrary or short position in the underlying assets, and (c) ETF’s that combine both leveraged and inverse strategies.

INVESTMENT TYPES

Domestic Equity

Investments may include equity investments provided the equity is a common or preferred stock of a domestic corporation and sold on a public or registered stock exchange within the United States. At the discretion of the Board and Investment 509
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Managers, investments may be made in mutual funds and exchange traded funds whose assets consist of such domestic equities.

International Equity

Investments may include equity investments provided the equity is a common or preferred stock of a foreign corporation provided (a) the resident country of the corporation has an operative financial exchange or over -the-counter market, a convertible currency, and a political, economic and investment structure which facilitates the availability of securities to foreign investors, and (b) the ownership of such shares are represented by American Depository Receipts (ADR) sold on a public or registered stock exchange within the United States. At the discretion of the Board and Investment Managers, investments in foreign corporations may be made in dollar-denominated mutual funds and exchange traded funds whose assets consist of such foreign equities.

Domestic Fixed Income

SCERS’ funds may be invested in debt securities, including convertible bonds, issued by solvent domestic corporations or by local, state or federal governments, political subdivisions, or public agencies, including, without limitation, the City of Sacramento and Sacramento Redevelopment Agency through the City of Sacramento Financing Authority.

At the discretion of the Board and Investment Managers, investments in the debt of domestic corporations may be made in individual issues and dollar -denominated mutual funds and/or exchange traded funds whose assets consist of such domestic debt securities.

International Fixed Income

SCERS’ funds may be invested in investment grade foreign debt securities issued by a solvent foreign corporation or by foreign sovereignties. At the discretion of the Board and Investment Managers, investments in the debt of foreign corporations may be made in individual issues and dollar -denominated mutual funds and/or exchange traded funds whose assets consist of such foreign debt securities.

Commodities

SCERS’ funds may be invested in commodities, including, without limitation, precious metals, agricultural products, oil and natural gas. Such investments may be in the form of dollar-denominated exchange traded funds that track the price changes of targeted commodities.

SECURITIES LENDING

The Board may engage in a securities lending program to provide the System with an opportunity to earn incremental income and offset administrative expenses. The program may be managed by the custodian (see Section VII.B), and/or a qualified third- party securities lending agent. The lending program should remain transparent to the Board 510
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and should not impede the SCERS investment program.

The securities lending program consists of two separate functions. The first function is the lending of SCERS’ eligible portfolio securities (domestic and international equities and bonds) to approved and qualified borrowers through an agent, subject to the terms and conditions specified in SCERS’ securities lending contract. Domestic loans must have a minimum initial collateralization level of 102% and international loans must have an initial collateralization level of at least 105%.

The second function is the reinvestment of cash proceeds generated by the lending of SCERS’ portfolio securities. This function is an investment management function, and as a result is governed by the same prudent person rules employed by the Board and its Investment Manager. Accordingly, the investment of cash collateral shall be in securities permitted by the Board as satisfying the prudent person standard. Cash and non-cash collateral may be invested in commingled funds or in separately managed accounts.

OPTION STRATEGIES

Utilization of options is allowed as a prudent way to take advantage of certain market dynamics in order to increase the overall returns of the investment portfolio without incurring undue risk, and/or to protect positions in a declining market. By Board Resolution 09-003, dated October 26, 2009, the Board has authorized the writing and selling of call options on existing security positions and the purchase of put options to protect existing security positions. Pursuant to Resolution 09-003, the following limitations are placed on the use of such authorized options: (1) The fair market value of securities underl ying existing and proposed option contracts may not exceed 30 percent of the market value of the investment portfolio measured at the time each new option contract is evaluated, and (2) the time from the inception of an option position to its expiration date shall not exceed 90 days.

REAL ESTATE MORTGAGES

SCERS’ funds may be lent to owners of real property provided the Board is satisfied with the credit worthiness of the borrower, the attributes of the real property, the suitability of the loan-to-value ratio, the interest rate on the loan, the reliability of the source of debt service funds, among other factors bearing on the desirability of the loan. No loans shall be made unless it is secured by a first position deed of trust, junior only to taxes and assessments entitled to priority by state statute, and supported by appropriate title insurance.

6. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, BROKER/DEALER

SELECTION

Financial institutions and depositories involved in implementing the Board’s investment activities are selected on a competitive basis in order to obtain high quality services by reliable, reputable and stable entities. The competitive process may be formal or informal, as determined by the Board in its discretion, with the objective of obtaining the quality of services necessary to serve the best interests of SCERS and its members, 511
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with services performed at competitive fees and rates.

Among the factors that the Board may consider in obtaining such services are (i) minimum qualifications pertaining to capacity, satisfaction of requirements to conduct required business, i.e. licenses, permits, registrations, certifications, etc.; (ii) capitalization; (iii) insurance and bonding; (iv) safekeeping and custodial experience; (v) status in good standing; (vi) ability and capacity of the firm to provide a full range of services as may be required by the Board; (vii) extent of the value added by an entity over the services provided by firms then-providing investment-related services to the Board; and (viii) other attributes as may be determined by the Board from time to time. The Board may determine the number and nature of firms to be retained to provide investment -related services based upon the volume of existing and projected investment work. Those firms that are selected to execute transactions on behalf of the System shall do so in a good faith manner and in the best interests of the System, and shall disclose to and advise the Board of material facts that bear upon the pricing of a given transaction order given by investment officers.

In lieu of conducting its own competitive process for the selection of supporting financial institutions, the Board may utilize the custodians, banks, brokers, dealers and other financial institutions utilized by the City in the management and investment of its funds. Such institutions must be duly selected and approved by the City Council. Prior to engaging any City-approved institution, the Board must be satisfied with the selection process used by the City.

PERFORMANCE REVIEW

All financial institutions and depositories shall maintain the qualifications and attributes deemed appropriate by the Board, including, but not limited to those enumerated in subsection A above, and shall perform their duties in a satisfactory manner. The Board, in its discretion, shall conduct periodic performance reviews to ensure the institutions and depositories are providing services in the best interests of the System.

7. SAFEKEEPING AND CUSTODY

DELIVERY VS. PAYMENT

All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds.

CUSTODY OF SYSTEM ASSETS

SCERS shall contract to utilize the services of a master custodian that shall transfer assets to and from the System’s funds as directed by the Board and/or the Investment Managers. Also, the custodian shall settle purchases and sales of securities, collect income, and disperse funds for approved expenditures or investments. Other services provided by the custodian include, but are not limited to, cash management, portfolio 512
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transition services, securities lending services, compliance monitoring services and information/accounting services. The inventory and value of cash and securities held by the custodian will be reconciled on a daily basis. The custodial institution shall annually provide a copy of their most recent report on internal controls in accordance with Statement on Standards of Attestation Engagements, No. 18 (SSAE No. 18).

INTERNAL CONTROLS

The Investment Managers shall establish and maintain an internal control structure designed to guide the activities of investment officers to ensure that the assets of the System are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. The internal controls structure shall address the following points:
• Prevention of collusion

• Separation of transaction authority from accounting and recordkeeping

• Custodial safekeeping

• Avoidance of physical delivery securities

• Clear delegation of authority to subordinate staff members

• Written confirmation of transactions for investments and wire transfers

• Development of a wire transfer agreement with the lead bank and third- party custodian

8. REPORTING

INVESTMENT REPORTS

The Investment Manager shall present to the Board monthly investment transaction reports and quarterly performance reports.

MARKING TO MARKET

For purposes of preparation of the investment reports, the market value of the portfolio shall be calculated.

9. POLICY CONSIDERATIONS

ETHICS AND CONFLICTS OF INTEREST
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Board members, the Investment Manager, and all other persons materially involved in the selection of investments (collectively, “Involved Persons”) shall refrain from personal business activity that could conflict with the proper execution and management of the SCERS investment program, or that could impair their ability to make impartial decisions.

All Involved Persons shall disclose any material interests in financial institutions with which they conduct business or invest in. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. All Involved Persons shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the System.

All Involved Persons shall file State Fair Political Practices Commission’s Statement of Economic Interests and make the disclosures required by the City’s conflict of interest policies.

EXEMPTION

Any investment held at the time these policies are duly adopted that does not meet the guidelines of this policy shall be exempted from the requirements of this policy, provided that as soon as practicable the Board and its Investment Manager shall take appropriate steps to address non-compliant investments in the best interest of the System. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.

AMENDMENTS

This policy shall be reviewed annually by the Board. The Investment Managers may recommend changes to the Board for its consideration. Any changes adopted by the Board must be approved by the City Council.

CITY COUNCIL CONSIDERATION OF INVESTMENT POLICY

This policy shall be reviewed and approved by the City Council pursuant to Section 383 of the Charter.

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30 SECTION - 30
Resources
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Glossary

Account - The primary accounting field in the budget used to describe the type of financial transaction.

Actual - Actual level of expenditures/FTE positions approved for fiscal year as noted.

Amended - Level of expenditures/FTE positions reflecting adjustments made during the current fiscal year.

Appropriation - An authorization by the Council, which permits officials to incur obligations and expend City resources, for a specific purpose within a fiscal year.

Assessment - Revenue collected for City services that benefit properties in specific areas or districts.

Assessment District - A separate local government agency formed to provide specific services. Property owners within the Assessment District boundary pay the district in proportion to the benefits or services they receive.

Balanced Budget - The amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available resources.

Beginning/Ending Fund Balance - Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year's expenses. Not necessarily cash on hand (also refer to Fund Balance).

Budget - An annual financial plan consisting of Proposed/Approved expenditures for specified purposes and the Proposed/Approved means of financing them.

California Public Employees’ Retirement System (CalPERS) – The nation’s largest public pension fund, providing health and retirement benefits to more than 2 million state, public school, and local public agency employees, retirees, and their families. The City contracts for retirement benefits only.

Capital Assets - Capital assets include land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period (fiscal year).

Capital Improvement - A specific undertaking involving procurement, construction or installation of facilities or related equipment that improves, preserves, enhances, or modernizes the City’s provision of municipal services, has a useful life of at least five years, and costs in excess of $20,000. CIPs may include construction or major repair of City buildings and facilities such as streets, roads, storm drains, traffi c signals, parks, community centers, etc.
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Capital Improvement Program (CIP) - An ongoing five-year plan of single and multiple- year capital expenditures which is updated annually.

Carryover - Appropriated funds remaining unspent at the end of the fiscal year, which can be retained by the project to which they were appropriated so that they may be expended in the next fiscal year.

Charter Offices - City Attorney, City Auditor, City Clerk, City Manager, and City Treasurer.

Citywide and Community Support - Program costs that do not relate to any one department, but represent costs of a general citywide nature, such as debt service.

Combined Sewer System (CSS) - Sewers that are designed to collect rainwater runoff, domestic sewage, and industrial wastewater in the same pipe. Combined sewer systems transport their wastewater to a sewage treatment plant, where it is treated and then discharged to a water body.

Community Facilities District (CFD): The Mello-Roos Act (1982) allows any county, city, special district, school district, or joint powers authority to establish a CFD that allows for financing of public improvements (e.g., sewers, streets) and services. To establish a CFD, voters within the district must approve its creation by two-thirds.

Debt Financing - Issuance of bonds and other debt instruments to finance municipal improvements and services.

Debt Service - The costs of paying the principal and interest on borrowed money according to a predetermined payment schedule.

Department - “Department” refers to the Council; City Manager; City Attorney; City Auditor, City Clerk; City Treasurer; Convention and Cultural Services; Community Development; Community Response; Finance; Fire; Human Resources; Information Technology; Police; Public Works; Utilities; Youth, Parks, & Community Enrichment; and Citywide and Community Support.

Dept ID - A sub-unit of a department or division.

Division - A roll-up of units within a department. There are one or more units within a division.

Employee Services - The personnel costs of a City program, including wage/salary, direct and indirect benefits, such as health insurance, social security costs, retirement contribution, workers’ compensation, unemployment insurance, etc.

Enterprise - A governmental facility or service that is self -supporting through fee and charge revenue.

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Enterprise Funds - These funds are used to account for operations for which it is the stated intent that the costs of providing services to the public on a continuing basis be financed or recovered primarily through user charges and space rentals, e.g., Water Fund, Wastewater Fund (also known as the Sewer Fund).

Equipment - Capital outlay for tangible property of a relatively permanent nature, such as vehicles or equipment with a unit cost of $20,000 or more.

Expenditure Class - A roll-up of accounts: employee services, services and supplies, property, debt service, and interdepartmental transfers.

Expenditure - The actual spending of funds authorized by an appropriation. Expenditures are divided into the following “classes” of individual line items:
• Employee Services
• Services and Supplies
• Equipment
• Debt Service
• CIP or Grant Labor Offset
• Capital Improvements

Externally Funded Program - Program revenues provided by external agencies which are restricted to a specified purpose.

Fiscal Year (FY) - A time period designated by the City signifying the beginning and ending period for recording financial transactions. Sacramento has a fiscal year from July 1 through June 30, referred to as FY2025/26 or FY26.

Full-Time Equivalent (FTE) - A unit indicating the workload of a position in order to distinguish workloads comparable to a full -time position. An FTE of 1.0 means that the position is equivalent to a full-time workload, while an FTE of 0.50 signals that the position is half-time.

Fund - A group of related accounts used to maintain control over resources that have been segregated for specific activities or objectives.

Fund Balance - The total dollars remaining after current expenditures for operations and capital improvements are subtracted from the sum of the beginning fund balance and current resources.

General Fund - The City's principal operating funds (General Fund and Measure U Fund), which is supported by taxes and fees and which, generally, has no restrictions on its use. Expenditures may be described as discretionary and non-discretionary. • Discretionary - That portion of the General Fund for which there are no restrictions on the use of the fees or taxes collected. 519
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• Non-discretionary - Expenditure of revenues which are collected by users of a program to offset the cost of the program. State law requires that fees charged cannot exceed the cost of the service.

Grant - Contributions of cash or other assets provided by external agencies, which are restricted to a specific purpose, have a time limit for use, and frequently are reimbursed after incurring eligible costs.

Growth Rate - Level at which expenditures and revenues are expected to increase annually.

Impact - Effects on the service level provided by a particular program due to budget changes.

Indirect Costs - Those elements of cost necessary in the performance of a service that are not readily identified to the unit of service, such as administration, supplies, etc.

Internal Service Fund (ISF) - An ISF provides services to all City departments and bills the various other funds for services rendered. ISFs are self -supporting. Only the expenditure by the ISF is counted in budget totals; the internal transfer from the department to the ISF is excluded to avoid double-counting expenditures.

Internal Service Fund Transfer - A transfer from operating funds to an ISF, e.g., Risk Management or Fleet Management.

Labor/Supply Offset (CIP/Grant/Labor) - Amounts for employee salaries and benefits expected to be charged to a CIP or grants, thus reimbursing the operating budget for these costs.

Measure U Fund – This fund was established to account for revenues collected from the transactions and use tax voted in on November 6, 2018 and took effect on April 1, 2019.

Measure U was approved as a general tax and 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, use, or consumption of goods purchased outside the City and delivered to a location within t he City.

Multi-year Operating Project (MYOP) – A project/program with funding for internal operations (e.g., community outreach, fleet acquisitions, grants, rebates, and studies) that do not result in capital assets.

Operating Budget - Annual appropriation of funds for ongoing program costs, including employee services, other services and supplies, equipment, and debt service.

Operating Transfers - Moving dollars from a fund receiving revenue to a fund which will expend the resources.

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Ordinance - A law or regulation made by a city or town government.

Other Governmental Funds - These funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes, e.g., Gas Tax Fund, Traffic Safety Fund, Operating Grant fund.

Other Post -Employment Benefits (OPEB) - Benefits that an employee will begin to receive at the start of retirement, not including pension benefits.

Proposition 218 - Passed by California voters in 1996 , Proposition 218 specifies requirements for how utility rates for water, sewer, drainage, and solid waste services are set and how the funds generated by those rates are used. Some of the requirements of include:

• Holding a public hearing prior to any rate changes for water, sewer, drainage, or solid waste services and notifying rate payers of that hearing via mail at least 45 days in advance.
• Using funds generated by a particular rate, such as water rates, for water operations and projects.

Project, Child: - A project that falls under the budget appropriation authority of a parent project. Child projects are not required of a parent project.

Project, Parent: - A project that has budget appropriation authority given by Council.

Parent project numbers usually end in zero-zero (00).

Resolution - A formal declaration by Council.

Resources - Total dollars available for appropriation during the fiscal year, including estimated revenues, fund transfers, and beginning fund balances.

Revenues - Income received from seven categories:
• Taxes - Revenue including sales tax, property tax, utility user tax, etc., collected to fund general operating City programs.
• Charges for Fees and Services - Fees charged to the user of any specific service provided by the City not supported by the General Fund. The fee cannot exceed the cost of providing the service.
• Licenses and Permits - Revenues collected for construction, maintenance, and/or operation of designated equipment, businesses, buildings, and private property including animals.
• Use of Money and Property - Interest earned on City investments or county- held funds.
• Inter-Governmental - Revenue disbursements from other agencies, such as State Motor Vehicle In-Lieu Tax and State Homeowners Property Tax Relief, and revenue reimbursement for services provided to other agencies. 521
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• Fines, Forfeitures, and Penalties - Revenues collected for violations of City ordinances, late payments, etc.
• Miscellaneous Revenues - Revenues not categorized above.

Revenues can also be classified as operating or non-operating in the enterprise activities.

Operating revenues are directly related to the fund’s primary service activity and consist primarily of user fees and charges. Non- operating revenues are incidental to, or by - products of the enterprise’s primary service, such as interest income or the Transient Occupancy Tax for the Community Center Fund.

Services and Supplies - Costs of contractual or outside services, office supplies, and equipment.

Special Revenue Funds - These funds are used to account for activities supported by specific taxes or other revenue sources. These funds are generally required by statute, charter, or ordinance to finance specific government functions.

Successor Agency - Pursuant to operation of California state law, the Redevelopment Agency was dissolved. Effective February 1, 2012, former activities and affairs of the Sacramento Redevelopment Agency were transformed to the City of Sacramento as the Successor Agency. The Successor Agency is authorized by law to accept and maintain the legal title, custody and dominion of records that were created by another agency.

Surplus - An excess of total current resources over total current requirements.

Total City Budget - The City’s total fiscal year expenditure budget (operating and capital) as approved by the Council.

Trust Funds - These funds are used to account for assets and activities restricted to a specific purpose in accordance with a trust agreement, e.g., Ethel MacLeod Hart Trust Fund.

User Charges/Fees - The payment of a fee for direct receipt of a public service by the party benefiting from the service.

Variance - Change in expenditures or staffing levels between fiscal years.

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ACRONYMS
A.B. Assembly Bill
ABCDs Automated Bids, Contracts, and Digital Signatures ACFR Annual Comprehensive Financial Report
ACH Automated Clearing House
ADA Americans with Disabilities Act
ALF American Leadership Forum
ALM Asset Liability Management
ALS Advanced Life Support
ARP American Rescue Plan 2021
ARRA American Recovery and Reinvestment Act
ASES After School Education and Safety
AWMP Accelerated Water Meter Program
AWWA American Water Works Association
BID Business Improvement District
BOE Board of Education
BOT Business Operations Tax
BWC Body Worn Camera
CAA Cultural Arts Awards
CalPERS California Public Employees’ Retirement System
CASH Community Against Sexual Harm
CA-TF7 California Task Force 7
CBOT Cannabis Business Operations Tax
CCM Citywide Content Management
CCOMWP City/County Office of Metropolitan Water Planning CCPI CA Consumer Price Index
CCR Consumer Confidence Report
CCS Convention and Cultural Services
CDD Community Development Department
CDTFA CA Department of Tax and Fee Administration
CE Cultural Equity
CEQA California Environmental Quality Act
CERBT California Employers' Retiree Benefit Trust
CFD Community Facilities District
CIO Chief Information Officer
CIP Capital Improvement Program or Project
CIRBs Capital Improvement Revenue Bonds
CIS Customer Information System
CIT Crisis Intervention Training
CLASS Childcare Learning and Student Support
CMO City Manager’s Office
CNG Compressed Natural Gas
CO2e Carbon Dioxide equivalent
COLA Cost of Living Adjustment
COPS Community Oriented Policing
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CORE Cannabis Opportunity Reinvestment and Equity
CPI Consumer Price Index
CRCIP Community Reinvestment Capital Improvement Program CRS Community Rating System
CSH Center for Sacramento History
CSS Combined Sewer System
CSUS California State University Sacramento
DACs Disadvantaged Area Communities
DCR Department of Community Response
DDW Department of Drinking Water
DHS Department of Homeland Security
DISTRICT SCU Convention & Performing Arts District
DMAs District Metered Areas
DOE Department of Education
DOU Department of Utilities
DSCR Development Stabilization Contingency Reserve
DSP Downtown Sacramento Partnership
DUI Driving Under the Influence
DWR Department of Water Resources
eCAPS Electronic Citywide Accounting and Personnel System EEO Equal Employment Office
EGUSD Elk Grove Unified School District
EIFD Enhanced Infrastructure Financing District
EIR Environmental Information Regulation
ELAP Environmental Laboratory Accreditation Program
EMS Emergency Medical Services
EOC Emergency Operations Center
ERP Enterprise Resources Planning
EUR Economic Uncertainty Reserve
EVOC Emergency Vehicle Operations Course
F.O.C.A.S. Friends of the City’s Animal Shelter
FDIC Federal Deposit Insurance Corporation
FEC Financial Empowerment Center
FEMA Federal Emergency Management Agency
FMAP Flood Maintenance Assistance Program
FTE Full-time equivalent
FUEL Family, Unity, Education, and Legal Network
FY Fiscal Year
G1C Golden 1 Center
GARE Government Alliance on Race and Equity
GASB Governmental Accounting Standards Board
GL&AL General Liability and Auto Liability
HHAP Homeless Housing, Assistance and Prevention
HR Human Resources
ICMA International City/County Management Association
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IRS Internal Revenue Service
ISA International Society of Arboriculture
IST Inspection and Standards Team
IT Information Technology
JPA Joint Powers Agreement
LAFCo Sacramento Local Agency Formation Commission
LDI Liability Driven Investment
LMA Local Maintaining Agencies
LPRs License Plate Readers
MG Million Gallons
MICC Mobile Incident Command Center
MOE Maintenance of Effort
MOFIE Mayor’s Office of Innovation and Entrepreneurship MOSAC SMUD Museum of Science and Curiosity
MYOP Multi-year Operating Project
NACHA National Automated Clearing House Association
NPDES National Pollutant Discharge Elimination System
OAC Office of Arts and Culture
OCM Office of Cannabis Management
OEG Office of Economic Growth
OEM Office of Emergency Management
OPEB Other Post-Employment Benefits
PAR Personnel Action Request
PARCS Parking Access and Revenue Control System
PBIDs Property and Business Improvement Districts
PCI Payment Card Industry
PCI DSS Payment Card Industry Data Security Standard
PCR Patient Care Reports
PD Police Department
PELLET-B Police Entry Level Law Enforcement Test
PEPRA Public Employees’ Pension Reform Act
PERS California Public Employees’ Retirement System
PG&E Pacific Gas and Electric
PODs Police Observation Devices
POP Problem Oriented Policing
POS Point-of-Sale
POST Police Officers Standard and Training
PPE Personal Protective Equipment
PPP Public-Private Partnerships
PRAs Public Records Act
PRISM Public Risk Innovation, Solutions, and Management PTTVC Prime-Time Teen Virtually Connected
RAILS Rapid Acceleration, Innovation & Leadership
RASA Redevelopment Agency Successor Agency
REO Recognized Employee Organization
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RFP Request for Proposal
RGEAP Race and Gender Equity Action Plan
RSW Recycling and Solid Waste Division
SACOG Sacramento Area Council of Governments
SAFER Staffing for Adequate Fire & Emergency Response Grants SAMS Software Asset Management System
SASD Sacramento Area Sewer District
SAVSA Sacramento Abandoned Vehicle Service Authority
S.B. Senate Bill
SCADA Supervising Control and Data Acquisition
SCERS Sacramento City Employees’ Retirement System
SCMS Security Camera Monitoring System
SCU SAFE Credit Union
SCUSD Sacramento City Unified School District
SCVB Sacramento Convention and Visitors Bureau
SCXEA Sacramento City Exempt Employees Association
SETA Sacramento Employment and Training Agency
SFD Sacramento Fire Department
SHRA Sacramento Housing and Redevelopment Agency
SMAC Sacramento Metropolitan Arts Commission
SMHST Sacramento Museum of History, Science, and Technology SMUD Sacramento Municipal Utility District
SPCA Society for the Prevention of Cruelty to Animals
SPLA Sacramento Public Library Authority
SRCSD Sacramento Regional County Sanitation District
SRF State Revolving Fund
SSO Sanitary Sewer Overflows
START Students Today Achieving Results for Tomorrow
STEAM Science, Technology, Engineering, Art, and Math
SURA Sacramento Utility Rate Assistance
SUV Sport Utility Vehicle
SWA Solid Waste Authority
SWAT Special Weapons and Tactics
SWRCB State Water Resources Control Board
TOT Transient Occupancy Tax
UAL Unfunded Accrued Liability
UAS Unmanned Aerial System
UHU Unit Hour Utilization
URAC Utility Rate Advisory Commission
US&R Urban Search & Rescue
UUT Utility User Tax
VLF Vehicle License Fee
VoIP Voice over Internet Protocol
VPN Virtual Private Network
WC Workers’ Compensation
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YDPM Youth Development Program Manager
YPCE Youth, Parks, and Community Enrichment

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31 SECTION - 31
Resolution
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RESOLUTION NO 2025-XXXX

Adopted by the Sacramento City Council

June XX, 2025

Approving the Fiscal Year 2025/26 Operating and
Capital Improvement Program Budgets

BACKGROUND
A. Article IX, section 111, of the City Charter requires the City Manager to present a balanced budget to the Mayor and City Council no less than 60 days before the beginning of each fiscal year.

B. The City of Sacramento, through the leadership and direction of the Mayor and City Council, has maintained a sustainable budget philosophy. Given this concept of fiscal sustainability, the City Council adopted the following core budget policies and budget guidelines on February 14, 2017 (Resolution No. 2017-0078):

Core Budget Policies

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 must be added to maintain this level through the budget and midyear processes, as necessary.

Budget Guidelines

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 City Council informed on the fiscal condition of the City and conduct continuous evaluations for efficiencies and effectiveness. 531
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8. The City must consistently look for opportunities to proactively grow revenues instead of simply 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.

C. On June 11, 2019, the City’s Economic Uncertainty Reserve (EUR) Policy was amended to include Measure U resources in determining the amount to be set aside in reserves (Resolution No. 2019-0248) as directed by the City Council on February 5, 2019 (Resolution No. 2019-0047).

D. The FY2025/26 Approved Budget (which includes the Operating Budget and the Capital Improvement Program [CIP] Budget) are consistent with City Charter requirements and the City Council’s adopted Core Budget Policies and Budget Guidelines.

E. The Mayor and Council conducted budget discussions during May and June 2025 to discuss and consider the City’s FY2025/26 Budget.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. Preliminary Matters.

1.1. The Budget changes attached as Exhibit A and the Summary of FTE attached as Exhibit B are hereby approved.

1.2. The FY2025/26 Operating and CIP Budgets (collectively the Approved Budget), as defined in section 3. 2 below, and attached as Exhibit C and D are hereby approved.

1.3. The 2025-2030 CIP, which provides a comprehensive five- year plan for the City’s capital project expenditures and attached as Exhibit D , is hereby approved.

1.4. Sections 2 through 20 below, which define the authority and responsibilities of the City Manager in implementing the Approved Budget, are hereby approved.

1.5. The City Manager is authorized to incorporate final decisions of the Council, and to refine and add content, as may be needed to meet Government Finance Officers Association and /or California Society of Municipal Finance Officers budgeting-award requirements into the Approved Operating and CIP Budgets to create the FY2025/26 Approved Budget.
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1.6. The attached Exhibits A through D are part of this resolution.

1.7. The City’s Debt service must be limited to 6% of total General Fund (includes Measure U Fund) revenues, excluding Department revenues.

1.8. The City Treasurer shall conduct a financial stress test on the General Funds before the issuance of any bonds.

1.9. Available resources in the Innovation and Growth Fund (Fund 2031) shall be transferred to the General Fund as needed to offset projected deficits shown in the General Fund five-year forecast included in the Approved Budget. (A) Expand the usage of the Innovation and Growth Funds consistent with either ScaleUp Sacramento: An Inclusive Economic Action Agenda (Motion No. 2021- 0022) or sections one through five of the Inclusive Economic Development Investment Funding Guidelines (Motion No. 2019-0307).

Section 2. Scope.

This resolution defines the authority and responsibilities of the City Manager in implementing the Approved Budget and supersedes Resolution No. 2024-0193.

Section 3. Definitions.

3.1. “Account” is the primary accounting field in the budget used to describe the nature of the financial transaction (overtime, professional services, debt, etc.).

3.2. “Approved Budget” means the Approved Operating Budget (Operating Budget) and the Approved Capital Budget (CIP Budget), which are attached as Exhibits C and D and reflects the FY2025/26 Proposed Operating and CIP Budgets, as amended by the Council to incorporate the approved Budget Changes attached as Exhibit A, and a summary of position changes as displayed in Exhibit B.

3.3. “City Manager” means the City Manager or, if so designated, the Director of Finance.

3.4. “Department” means Mayor and City Council; City Manager; City Attorney; City Auditor; City Clerk; City Treasurer; Community Development; Community Response; Convention and Cultural Services; Finance; Fire; Human Resources; Information Technology; Police; Public Works; Utilities; Youth, Parks, and Community Enrichment; and Citywide and Community Support.

3.5. “Full Time Equivalent” and “FTE” mean the decimal equivalent of a position, e.g., one full -time position is 1.00 FTE and one quarter -time position is 0.25 FTE.

Section 4. Approved Budget Appropriations, FTEs, and Adjustments.

4.1. The City Manager is authorized to make any expenditure and resource adjustments to the Operating Budget based on final Council action to adopt the Operating Budget.
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4.2. The City Manager is authorized to establish the appropriations and FTE as shown in Schedules 1A, 1B, 1C, 1D, and 1E and the fund summaries, including transfers, as shown in Schedules 2A, 2B, and 2C, as displayed in Exhibit C.

4.3. The City Manager is authorized to modify FTE classifications by Department as necessary to implement the reclassifications and studies authorized by Schedule 8, as displayed in Exhibit C.

4.4. The City Manager is authorized to revise any appropriation made in the Approved or Amended Budget where the revision is of a technical nature and is consistent with the Council’s intent.

4.5. The City Manager may authorize the use of the Old Sacramento Public Market Fund (Fund 2601) for the development, repair, and maintenance of the north and south public markets.

4.6. The City Manager is authorized to make annual loan payments to the Risk Fund from the Community Center Fund subject to the availability of funds. As of June 30, 2024, the balance of the Risk Fund loan to the Community Center Fund totaled approximately $4.7 million.

4.7. The City Manager is authorized to pay off a $15 million loan from the Risk Fund as a result of the legal settlement with year-end budgetary surplus from the General Fund (Fund 1001). As of June 30, 2025, the repayment balance is $15. million.

4.8. Following budget adoption, the City Manager is authorized to do the following:
(A) Transfer appropriations from the operating budget and establish or adjust revenue and expenditure budgets for externally funded programs (EFPs), multi-year operating projects (MYOPs), and operating grants as shown in Schedule 9 displayed in Exhibit C.
(B) Adjust any appropriation made in the Approved Budget to reflect changes from amounts budgeted for updated labor (for example, changes in retirement rates, payroll taxes, health benefits), fleet (including accident recovery costs), utilities in Citywide Support, 311 Call Center (reimbursements based on call data), cost plan, and risk -management changes, from available fund balance or reserves for the respective funds. (C) Adjust budgets to reflect all required debt service and related payments, including adjustments to rate stabilization reserves, pursuant to City debt agreements.
(D) Revise and establish indirect cost rates to be applied to hourly salary rates in order to achieve full cost recovery of services; and adjust the Operating Budget to reflect the indirect cost rate plan for FY2025/26.

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Section 5. Economic Uncertainty Reserve Policies and Transfers from Contingency and Reserve Funds.

5.1. The Council-adopted EUR Policy as amended on June 11, 2019 (Resolution No. 2019-0248) establishes a minimum reserve level equal to 10% of annual General/Measure U Fund revenues and a target reserve level equal to two months of regular ongoing General Fund and Measure U Fund expenditures, including transfers (17% of General Fund and Measure U Fund expenditures).

Resources to fund this reserve will be identified on an ongoing basis and can include positive year -end results or other one- time resources available to the General/Measure U Fund.

5.2. The General/Measure U Fund EUR is maintained to bridge the gap between projected revenue and expenditures during periods of significant revenue declines, expenditure growth, or both. Consistent with Governmental Accounting Standards Board Statement No. 54 (Fund Balance Reporting and Governmental Fund Type Definitions), the Council -adopted parameters for using the EUR are as follows:
(A) The City Manager may recommend a release from the EUR when the gap between projected revenue and expenditures is greater than $1 million in the proposed budget.
(B) Any release from the EUR requires the Council’s approval. (C) These parameters may be changed only by resolution of the Council.

5.3. The City Manager is authorized to maintain an EUR reserve below the minimum threshold prescribed in the Council-adopted EUR Policy in FY2025/26 and forgo $4.2 million in EUR contributions from the FY2025/26 General Fund and Measure U Fund to appropriate in a Federal Funding Reserve to protect the City against the federal government withholding or rescinding revenues.

5.4. The City Manager is authorized to make appropriation changes (increases or decreases) less than $250,000 by fund from available fund balance.

Appropriation changes, whether increases or decreases, including $250,000 or more require Council approval, except for payments to employees for vacation and sick leave payouts. Payments to employees for vacation and sick leave payout may be approved by the City Manager.

5.5. The City Manager is authorized to make appropriation changes (increases or decreases) less than $250,000 to any Department or project from Administrative Contingency established in the General Fund. Appropriation changes (increases and decreases) more than and including $250,000 to the Department or project require Council approval.

5.6. Transfers must not be made from an available fund balance or Administrative Contingency if the transfer will result in a negative balance. 535
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5.7. The City Manager is authorized to release the General Fund (Fund 1001) and Measure U (2401) commitments of fund balance for future budget development as needed to submit a balanced budget.

5.8. Use of committed fund balance reserves, except as authorized in section 5. 7, requires the Council’s approval by resolution.

Section 6. Appropriation Increases and Decreases.

6.1. All appropriation changes (increases or decreases) $250,000 or more to the Approved Budget require Council approval by resolution.

6.2. The City Manager is authorized, upon completion of the audited financial statements for FY202 4/25, to adjust FY2025/26 fund contingencies by the amount of net changes in available fund balance. The available fund balance in the General Fund must be included and explained in the report to the Council accompanying the Annual Comprehensive Financial Report (ACFR).

6.3. Residual balances from unexpended debt proceeds will revert to the appropriate fund and used for the lawful purposes as specified in the conditions of the debt issuance. The City Manager is authorized to establish appropriations and account for the expenditure of these unexpended proceeds.

Section 7. Appropriation Transfers.

7.1. Operating appropriation transfers within the same Department and the same fund, including the Department’s established fleet MYOP, require the City Manager’s approval.

7.2. Appropriation transfers between two or more Departments, less than $250,000, must be approved by the City Manager. Such transfers more than and including $250,000 requires Council approval by resolution.

Section 8. Staffing Changes.

8.1. Any increase or decrease in FTE by department or by fund as authorized in the Operating Budget, by subsequent approval of the Council, or by the City Manager in accordance with this resolution, is subject to approval by the Council except for renewals or expansion of fully offset grants or EFPs as specified in section 8.2.

8.2. The City Manager is authorized to adjust staffing levels for renewals, expansions, or reductions to fully offset Council -approved operating grants or EFPs. Grant/EFP positions must be terminated upon completion or cancellation of the grant/EFP unless specifically continued by a Council resolution that includes a source of replacement funding. Any existing positions approved on the assumption that the City would receive a grant or other reimbursements must have continued funding verified before filling the position.

8.3. Any reassignment of authorized FTE and employee-services funding associated with the FTE, within a Department and within the same fund, may be made at 536
FY2025/26 Proposed Budget

the discretion of the Department director with the approval of the City Manager as long as there is no net change to authorized FTE and funding levels.

8.4. The City Manager is authorized to modify any authorized FTE classification as necessary to reflect current incumbent status based on the established flexibly staffed classifications included in Council-approved labor contracts.

8.5. All new job classifications or classification changes (as identified in Exhibit C, Schedule 8) are subject to classification review and approval by the Director of Human Resources.

8.6. The City Manager is authorized to adjust staffing levels in the Police and Fire Training Academies based on projected vacancies.

8.7. The Director of Human Resources is authorized to establish non -budgeted positions (NBPs) for the following:
(A) Mayor and Council Offices, to be funded from their existing operations budgets.
(B) Departments as needed to reflect address critical staffing circumstances.

Departments must have sufficient labor savings to cover the cost of NBPs, and none of the NBPs may be used for more than one year. Departments will seek budget authority to convert NBPs to authorized FTE positions or the NBPs will be eliminated during the budget process.

Section 9. Revenue Budget.

9.1. The FY2025/26 revenue budget is summarized in Exhibit C, Schedule 6.

9.2. Any increase or decrease greater than (and including) $250,000 by fund in estimated revenue by Department to the Approved Budget requires the Council’s approval.

9.3. The City Manager is authorized to implement biennial Consumer Price Index increases if the increases are warranted based on the adopted Fees and Charges Policy.

9.4. Proceeds from the sale of General Fund and Redevelopment Agency Successor Agency surplus land, unless otherwise specified, will be budgeted in the Innovation and Growth Fund (Fund 2031).

9.5. Unbudgeted one-time general revenue received in a fiscal year, which is not required to balance the budget as part of the midyear review or fiscal year -end close, will be added to the General Fund/Measure U EUR.

9.6. The City Manager is authorized to adjust General Fund revenues supporting Measure U department operations to actuals received and to adjust the appropriate transfers between the funds.

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FY2025/26 Proposed Budget

Section 10. Capital Improvements.

10.1. Capital projects and/or appropriations will be used for the following:
(A) Repairs, maintenance, improvements, or acquisitions with a total cost of at least $20,000 and a useful life that exceeds one fiscal year; and (B) Community/Neighborhood projects as approved in separate resolutions by the Council.

10.2. Council approval is required for the establishment or cancellation (without completion) of a CIP, except as provided below:
(A) The City Manager is authorized to approve and establish one or more capital projects for internal City operations related to improvements and minor construction of existing City-owned or occupied buildings if the total cost to deliver each project is less than $250,000. Projects will be managed in the City Facility Improvement (C15100000) project. (B) Capital projects may be subdivided into separate sub-projects as needed to administer, manage, and deliver the original scope of the project, without further Council action.
(C) Projects established for agreements the City Manager executes in accordance with Sacramento City Code chapter 18.18. The City Manager is authorized to make all necessary budgetary adjustments when the City accepts improvements constructed under these agreements.

10.3. Capital appropriations must be used solely for the originally approved project or projects except as provided in this section.

10.4. Completed and inactive projects will be closed annually, except for projects that have existing litigation or payment disputes. An inactive project is one where transaction activity is less than $1,000 over the prior three years. Closures are the responsibility of the designated project manager. The managing department and the City Manager are each authorized to process the necessary documentation to close inactive projects.

10.5. Each fiscal year, all multi -year CIP projects in existence on June 30 will be continued except as provided otherwise in section 10.4. The FY2025/26 CIP Budget is summarized on Schedules 2 and 4 as displayed in Exhibit C and on Schedule 4 as displayed in Exhibit D.

10.6. Each fiscal year, unobligated appropriations for all inactive projects, as defined in section 10.4, will expire on June 30 following the third full year of the last appropriation to the project. Projects requiring continuing appropriations will require Council action through programming within the CIP or through a separate appropriation to the project authorized by resolution of the Council.

10.7. Each fiscal year, on June 30, the balance of each CIP project must be zero or have a positive balance by fund. Projects with spending in excess of available 538
FY2025/26 Proposed Budget

budget from all funding sources (i.e., with negative balance) will be treated as follows:
(A) If the CIP balance exceeds budget by less than $250,000, the CIP must first be corrected within each fund, and then any remaining negative balance must be corrected by a transfer from the CIP manager’s Operating Budget (all transfers less than $250,000 mus t be made as provided for in section 6.1).
(B) If expenditures exceed the budget by more than and including $250,000, a corrective plan of action must be submitted to the Council for approval by resolution.

10.8. Community/Neighborhood projects and appropriations established with one- time funding sources under Resolution No. 2004-551 (6/29/04) and associated staff report, is governed by the following procedures:
(A) Savings of up to and including $50,000 due to lower-than-expected costs or the securing of alternative funding sources may be administratively reprogrammed into other projects within the same Council District at the request of the Council District Office and with the approval of the City Manager.
(B) Savings above $50,000 may be reprogrammed upon approval by resolution of the Council.

10.9. Except as provided in section 10.8, the City Manager is authorized to transfer appropriations less than $250,000 as follows:
(A) General, Measure U, and Capital Bond Funds:
(1) From a project that has not been completed, if a revised project estimate confirms that upon completion there will be project savings. (B) All other funds from Project A to Project B if:
(1) Project A is complete and has savings; or
(2) Project A has not been completed and a revised project estimate confirms that there will be project savings upon completion.

10.10. Upon completion and closure of a capital project, the City Manager is authorized to transfer any remaining project balance as follows:
(A) To the available fund balance of the respective fund, the Capital Projects Base Reserve in the Utilities CIP or, in the case of the General Fund, Administrative Contingency; or in the case of capital grants, to amend the revenue and expenditure budgets to actual revenues received and expenditures incurred.
(B) As provided for in section 10.9.
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10.11. Except for projects covered by section 10.10, the City Manager is authorized to increase or decrease project budget appropriations by less than $250,000 for each project. Appropriation changes more than and including $250,000 in total for any project must be approved by resolution of the Council. The City Manager’s administrative authority to adjust budgets for capital projects will be reset after budgetary actions are authorized by the Council. If the appropriation is from available fund balance, it is subject to the provisions in section 5.

10.12. Projects funded by New Measure A Project Construction Sales Tax are included within the CIP Budget for planning purposes. Work on CIP projects funded by New Measure A Project Construction Sales Tax (Fund 2023) is done before receiving funding, and project funding and authorization for these projects must be as follows:
(A) Fund 2023 revenue and expenditure budgets will not be loaded into the City’s financial system until STA Board approval and Council appropriation through separate Council action.

10.13. Projects funded by reimbursable (grant) funds are included within the Operating and CIP Budgets for planning purposes. Work on CIPs funded by these sources is done before receiving funding, and project funding and authorization for these projects must be as follows:
(A) Funds 2700, 3702, 3703, 3704, 6205, 6206, 6207, and 6211. Revenue and expenditure budgets will not be loaded into the City’s financial system until agreements (Program Supplements/E -76s, Individual Project Agreements, Cooperative Agreements, etc.) have been executed by the City and the funding authority.
(B) Funds 3703 and 3704. The City is eligible to receive federal or state funding, or both, for certain transportation projects through the California Department of Transportation (Caltrans). Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and Fund Transfer Agreements must be executed by Caltrans before such funds can be claimed. The City Manager is authorized to execute on the City’s behalf all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and Fund Transfer Agreements, and any amendments thereto.

The City Manager is authorized to transfer matching funds as specified in the approved CIP from the state and federal Grant Match (T15007200) CIP, and to enter the revenue and expenditure budgets as reflected in the grant agreement, only if the amount differs by less than $250,000 from what was reflected in the Approved CIP Budget that authorized the project funding. Project agreements that differ by more than and including $250,000 from the anticipated budget require the Council’s approval by resolution.
(C) For projects in funds 6205, 6206, and 6211 that result from an existing Operations and Maintenance Agreement for facilities maintained by the 540
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City but are owned or co-owned with Regional San and Sacramento Area Flood Control Agency, the City Manager or designee is authorized to do the following:
(1) Establish and/or adjust revenue and expenditure budgets of up to $250,000 for any emergency repair or replacement projects; and (2) Adjust revenue and expense budget based on actuals for project closure.

10.14. The 2025-2030 CIP Budget (Schedule 4, Exhibits C and D) includes projects that are directly supported by user and developer fees and utility rebates. The City Manager is authorized to adjust department revenue budgets and CIP expenditure budgets for projects as identified in the General Government section of the CIP that are directly supported by fees and rebates based on the actual fees and rebates collected, less any operating costs associated with delivering the service.

10.15. The City Manager is authorized to adjust revenue and expenditure budgets to reflect actual revenues received and expenditures incurred in compliance with the original grant award and any amendments. If the grant is not renewed or is changed by more than and including $250,000, the managing department must return to the Council for corrective action.

Section 11. Operating Grants.

11.1. Council approval is required for the establishment or cancellation (without completion) of an operating grant except as follows:
(A) Where the operating grant is less than $250,000 and does not require any of the following:
(1) any increase or decrease, by department or by fund, in FTE as authorized in the Approved Budget or by any subsequent approval by the Council or the City Manager in accordance with this resolution;
(2) matching funds from City resources; or
(3) any ongoing service or funding by the City.
(B) The City Manager is authorized to establish operating grants and authorize spending and allocation of resources more than and including $250,000 in advance of formal agreements in response to governmental requests for public-safety assistance related to homelessness, disasters and national-security risks. The department responding to these events shall report to the Council within 60 days after receiving formal program documents from the requesting governmental agency or agencies to obtain approval to enter into agreements and accept reimbursements. 541
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(C) Operating grants may be subdivided into separate sub- projects as needed to administer, manage, and deliver the original scope of the project, without further Council action.

11.2. The City Manager is authorized to adjust FTE and associated service and supplies budget, in accordance with section 8.2, for renewals or expansions of fully offset grants previously approved by the Council.

11.3. If a grantor requires Council action as a condition of funding the grant, the establishment of the grant requires Council approval regardless of the grant amount.

11.4. Each fiscal year, all multi-year operating grant budgets in existence on June 30 will be continued in the next fiscal year.

11.5. The City Manager is authorized to adjust revenue and expenditure budgets for renewals, up to the amount previously approved by the Council, and augmentations less than $250,000 of fully offset grants.

11.6. The City Manager is authorized to establish revenue and expenditure budgets for federal or state grant -funded youth programs and parks -and-recreation programs based on the prior year award before receipt of signed agreements.

Project funding and appropriations must be adjusted based on the final grant agreement. If the grant is not renewed or is changed by more than and including $250,000, the managing department must return to the Council for corrective action.

11.7. Each fiscal year, on June 30, the balance of each grant budget must be zero or have a positive balance by fund. Grants in excess of the budget from all funding sources (total budget has a negative balance) will be treated as follows:
(A) If the Grant balance exceeds budget by less than $250,000, the Grant must first be corrected within each fund, and then any remaining negative balance must be corrected by a transfer from the Grant manager’s Operating Budget (all transfers of less than $250,000 must be made as provided for in section 6.1).
(B) If the project balance exceeds budget by more than and including $250,000, a corrective plan of action must be submitted to the Council for approval by resolution.

11.8. The City Manager is authorized to adjust grant and operating expenditure budgets to account for Council-approved grant match and retention obligations.

11.9. The City Manager is authorized to adjust revenue and expenditure operating grant budgets to reflect actual revenues received and expenditures incurred upon closure of a project in compliance with the original grant award and any amendments.

11.10. Award and Distribution of City Grants.
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(A) Council approval is required: (1) to award grants to an individual, non - profit, business, or community-based organization that applies for a City grant more than and including $250,000; and (2) to execute contracts with the grantees for the services to be provided.
(B) Consistent with Council direction, the City Manager is authorized: (1) to award grants to an individual, non-profit, business, or community- based organization that applies for a City grant in amounts less than $250,000; and (2) to execute contracts with the grantees for the services to be provided.
(C) The award and distribution of grants must comply with any Citywide Grant Distribution Policy.
(D) Before grant funds are distributed, the City and the grantee must execute a City contract that outlines the public benefit, timelines, and reporting requirements.
(E) For grant contracts of any amount, the City Manager is authorized to execute amendments consistent with the authority granted to the City Manager in section 3.04.020 of the City Code and related policies. (F) The annual budget must list all grants awarded the previous calendar year.

Section 12. Externally Funded Programs (EFP).

12.1. Council approval is required for the establishment or cancellation (without completion) of an EFP, except as follows:
(A) Where the EFP is less than $250,000 and does not require any of the following:
(1) any increase or decrease, by department or by fund, in FTE as authorized in the Approved Budget or by any subsequent approval by the Council or by the City Manager in accordance with this resolution;
(2) matching funds from City resources; or
(3) any ongoing service or funding by the City.
(B) EFPs may be subdivided into separate sub- projects as needed to administer, manage, and deliver the original scope of the project, without further Council action.

12.2. Each fiscal year, all multi -year EFP budgets in existence on June 30 will be continued in the next fiscal year.

12.3. The City Manager is authorized to adjust revenue and expenditure budgets for EFP renewals, up to the amount previously approved by Council, and augmentations less than $250,000.
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FY2025/26 Proposed Budget

12.4. Each fiscal year, on June 30, the balance of each EFP budget must be zero or have a positive balance by fund. EFPs in excess of the budget from all funding sources (total budget has a negative balance) will be treated as follows:
(A) If the EFP balance exceeds budget by less than $250,000, the EFP must first be corrected within each fund, and then any remaining negative balance must be corrected by a transfer from the EFP manager’s Operating Budget (all transfers of less than $250, 000 must be made as provided for in section 6.1).
(B) If the project balance exceeds budget by more than and including $250,000, a corrective plan of action shall be submitted to the Council for approval by resolution.

12.5. EFPs with existing contracts approved by the Council, funding ongoing operations and studies, can be adjusted annually (revenues and expenditures) based on the actual revenues received.

Section 13. Multi-Year Operating Projects (MYOP).

13.1. A MYOP is used for the following:
(A) Economic Development Assistance and Development Programs (e.g., inclusionary housing).
(B) Planning, audit, and other consultant studies that will take more than one fiscal year to complete.
(C) Department fleet (vehicle or equipment) acquisition charges. (D) Other projects and activities that are multi -year in nature and are not capital improvement projects.

13.2. Council approval is required for the establishment or cancellation (without completion) of a MYOP, except as provided in section 13.7.

13.3. MYOPs may be subdivided into separate sub-projects as needed to administer, manage, and deliver the original scope of the project without further Council action.

13.4. Each fiscal year unobligated appropriations in existence on June 30 for existing MYOPs will be continued in the next fiscal year except as noted in sections

13.10, 13.11, and 18.11.

13.5. MYOPs must be used solely for the originally approved program or study.

Completed or inactive MYOPs will be closed annually. An inactive project is one where transaction activity is less than $1,000 over the prior three years.

Closures are the responsibility of the designated project manager. The managing department and the City Manager each have the authority to process the necessary documentation to close inactive projects. 544
FY2025/26 Proposed Budget

13.6. The Police and Fire Departments are authorized to use Measure U MYOPs savings from vacancies for background investigations, recruit academies, and overtime associated with restored programs and operations.

13.7. The City Manager is authorized to establish and adjust budgets for private development activities (Funds 2016 and 2018) managed in MYOPs that are fully offset by development fees.

13.8. Each fiscal year, on June 30, the balance of each MYOP must be zero or have a positive balance by fund. Projects in excess of the budget from all funding sources (total budget has a negative balance) will be treated as follows:
(A) If the MYOP balance exceeds budget by less than $250,000, the MYOP must first be corrected within each fund, and then any remaining negative balance must be corrected by a transfer from the MYOP manager’s Operating Budget (all transfers of less than $250,000 must be made as provided for in section 6.1).
(B) If the MYOP balance exceeds budget by more than and including $250,000, a corrective plan of action must be submitted to the Council for approval by resolution.

13.9. The City Manager is authorized to increase or decrease MYOP budget appropriations by less than $250,000 for each project. Transfers that exceed and including $250,000 in total for any MYOP require Council approval by resolution.

13.10. The City Manager is authorized to review MYOPs on an annual basis and return excess funds to the fund balance or contingency of the respective fund (e.g., Fleet, Measure U, Utility Rate Assistance).

13.11. The Utility Box Artwork (I17000800) MYOP General Fund budget can be amended up to $450,000 ($50,000 for each Councilmember and the Mayor) based on requests and resources provided from the operations budgets of the elected official initiating the request.

13.12. MYOPs with existing contracts approved by the Council funding ongoing operations and studies, can be adjusted annually (revenues and expenditures) based on the actual revenues received.

13.13 The City Manager or designated project manager is authorized to administer and manage the Sacramento Utility Rate Assistance (SURA) Program (I14130100) up to the annual budget of $5.4 million.

13.14 Expand program goals in the Workforce Development Framework (I02180900; Reso 2022-0169, Section 1) to include all ages under the priority population criteria.
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FY2025/26 Proposed Budget

Section 14. In-Lieu Property Taxes and In-Lieu Franchise Fee.

An in-lieu property tax and in- lieu franchise fee are hereby imposed on the Community Center (Fund 6010) and Parking (Fund 6004) Funds in the amounts provided in Schedule 3 as displayed in Exhibit C. The Council finds that the in- lieu property tax as detai led in Schedule 3 represents the property -tax revenue that would be received by the General Fund if the real and personal property owned by these enterprises were taxable under private ownership. The in- lieu franchise fee as detailed in Schedule 3 represen ts the franchise fees that the City would receive from private entities as a rental or a toll for the use of city streets and rights-of-way.

Section 15. Appropriation Limits.

The appropriation limit and the appropriations subject to the limit are hereby amended in accordance with article XIIIB of the California Constitution for FY2025/26, as detailed in Schedule 5 as displayed in Exhibit C.

Section 16. Midyear Report.

16.1. The City Manager shall present a Midyear Budget Report including a revised estimate of the financial condition of all funds, estimated revenues and expenditures, and recommendations for eliminating any projected fund deficits to the Council.

16.2. The Council will act on any projected fund deficits as part of the midyear review.

Section 17. Adjustments for Revenue Offset Programs and Services.

17.1. The City Manager is authorized to adjust revenue and expenditure budgets in special revenue funds based on actual revenues collected to provide appropriation authority for operating costs associated with delivering the service. If there are forecasted budget deficits in the future fiscal years, the City Manager is authorized to commit non- mandated General Fund revenues and positive net year-end results to future budget development reserves.

17.2. The City Manager is authorized to make the following adjustments to Department Operating Budgets or fund balance:
(A) Adjust Fire Department revenue and expenditure budgets based on actual revenues received for Department strike- team services provided throughout California.
(B) Adjust operating department revenue and expenditure budgets based on actuals revenues received for providing reimbursable services to the Golden 1 Center as outlined in the City’s agreement to provide services. (C) Adjust the revenue budget for the Sacramento Police Department’s Secondary Employment Program to reflect actual revenues received and adjust the expenditure budget by a like amount for providing reimbursable services as outlined in the City’s Secondary Employment Agreement.
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FY2025/26 Proposed Budget

(D) Adjust the revenue and expenditure budgets for facility maintenance and repair services provided to outside agencies and entities (15004521 - 338020) and for private property concrete maintenance and sidewalk repairs (15001641-343010) to reflect actual revenues received for these services.
(E) Increase the revenue (Account 391320) and fleet -replacement expenditure (Account 474210) budgets in the Fleet Fund (Fund 6501) based on departmental fleet purchasing changes (additional or early replacement) approved by the Council during the fiscal year and upon completion of audited financial statements to allow the continued purchasing of prior-year-funded replacement vehicles.
(F) Transfer excess parking meter revenue from the General Fund (Fund 1001) to cover eligible costs that are incurred in the Parking Fund (Fund 6004) if the full costs of the current fiscal year operations for parking meters has been recovered and the department has positive net year - end results.
(G) The Rental Housing Inspection Program Fees are established to recover the costs of the program. If the full cost of the current-year operations for that program have been recovered, then excess revenues for the program will be committed to fund a reserve equal to one year’s revenue budget for the program.

If these operations do not achieve the budgeted revenues or if program costs exceed the program budget, then resources must be transferred from the commitment of fund balance for the Rental Housing Inspection Program to cover the shortfall.
(H) Increase the revenue and expenditure budgets in the Garcia Bend Park (L19703600) CIP based on the actual revenues received from increased boat launch ramp fees at Garcia Bend Park, provided that the Department has positive net revenues after all Parking Services Division costs related to the Garcia Bend launch ramp are paid.
(I) Adjust the Police Department revenue and expenditure budgets based on actual revenues received for mutual aid provided to other jurisdictions.

(J) Establish Department of Utilit ies revenue and expenditure budgets for any projects that result from an existing operations and maintenance agreements for facilities maintained by the City, but owned or co- owned with an outside agency for less than $250,000 in the Water Grant Reimbursement Fund (Fund 6205), the Wastewater Grant
Reimbursement Fund (Fund 6206), and the Storm Drainage Grant Fund (Fund 6211) for an agency’s share and to adjust revenue and expense budget based on actuals for project closure.

17.3. The City Manager is authorized to make the following adjustments between Department operating budgets and CIPs or MYOPs:
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FY2025/26 Proposed Budget

(A) Adjust the revenue budget for the City Attorney’s Office and the expenditure budget in the Justice for Neighbors (JFN) (I03000100) MYOP based on the actual fees, penalties, and other revenues collected from third parties for Public Nuisance, Social Nuisance, and JFN actions brought by the City Attorney.
(B) Adjust the Community Development Department operating budget for spay/neuter and unaltered pet -licensing revenue accounts (Account 341380 [Program Code 13006] and 351020) and increase the Animal Care Low Income Spay/Neuter Program (I13000600) MYOP expenditure budget in the General Fund (Fund 1001) to reflect 50% of the penalty fees and 50% of unaltered pet-licensing fees collected in accordance with Sacramento City Code section 9.44.215.D.
(C) Adjust the revenue budget for the Convention and Cultural Services Department franchise fee to reflect actual revenues received and increase the expenditure budget by a like amount in the Old Sacramento Service Courts & Support Facilities (M17700000) CIP.
(D) Adjust the Convention and Cultural Services revenue budget for Memorial Auditorium Facility Fee revenues and the Memorial Auditorium Improvements (M17101000) CIP expenditure budget based on actual fees collected, less any operating costs associated with delivering this service.
(E) Adjust the Convention and Cultural Services revenue budget for SAFE Credit Union Performing Arts Center Facility Fee revenues and the Performing Arts Center Improvements (M17101800) CIP expenditure budget based on the actual fees collected, less any operating costs associated with delivering this service.
(F) Adjust the Public Works Department revenue budget to reflect actual revenues received and the Sacramento Valley Station Operations and Management (I15001000) MYOP expenditure budget by a like amount. (G) Increase the Public Works Department revenue and expenditure budgets for launch-ramp activities to reflect actual revenues received and transfer any resulting year-end savings for these activities to the Harbor Dredging (M17500000) CIP if the Department has positive net year-end results. (H) Adjust the Public Works Department revenue budget and the expenditure budget in the Shared-Rideable Implementation (K15195100) CIP based on the actual revenues received from the Shared- Rideable permit fees, except for the portion of the fee assessed to offset parking -meter- revenue loss.
(I) Adjust the Public Works Department revenue budget (15001021) and the expenditure budget in the Tree Planting and Replacement (R15188500) CIP based on actual revenues received in the Tree Planting and Replacement Fund (Fund 2035).
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FY2025/26 Proposed Budget

(J) Adjust the Youth, Parks, and Community Enrichment Department revenue budget for recreation- program fees and increase the expenditure budget in the Recreation Facility Improvement (L19800200) CIP if the full cost of the current fiscal -year operations for this CIP have been recovered and the Department has positive net year-end results. (K) Adjust appropriations made in the Approved Budget for fleet replacements from amounts budgeted for updated fleet -replacement costs less than $250,000 by department and by fund and transfer expenditure budgets from department operating budgets to the Fl eet Acquisitions (I06000999) MYOP if the department is projecting expenditure savings in excess of the transfer.
(L) Increase the transfer from the Community Center Fund (Fund 6010) to the General Fund (Funds 1001/2401) to offset the annual budget provided for in Schedule 9 for the Powerhouse Science Center (E18000400) EFP as authorized by Council through December 2048, if Transient Occupancy Tax revenues exceed budget by an amount up to $600,000 at year -end and if the Community Center F und has positive year-end available fund balance.
(M) Increase the Youth, Parks, and Community Enrichment Department revenue budget for the all -weather sport field facility fees received and increase the expenditure budget in the Granite All Weather Field (L19806000) CIP, provided that the Department has positive net year - end General Fund (Funds 1001/2401) results.
(N) Adjust the Transportation CIP budget to meet the City’s SB 1 Maintenance of Effort (MOE) requirements.
(O) Adjust Community Development Department’s revenue budget for the Housing Trust and Housing Impact administrative fees to reflect actual revenues received and increase the expenditure budget by a like amount in the General Plan Update (I22000000) MYOP.

17.4. The City Manager is authorized to make the following adjustments to CIPs and MYOPs:
(A) Adjust the revenue and expenditure budgets in the Old Sacramento Garbage Service Courts (M17700000), Old Sacramento District Improvements (M17700100), and the Joe’s Crab Shack & Rio City Café Repairs and Maintenance (B18119000) CIPs based on actual ren t proceeds available after payment of all fees to the State of California and funding of annual required maintenance costs.
(B) Adjust revenue and expenditure budgets in the Energy Reinvestment Program (C13001900) CIP to reflect actual energy rebates and incentives received.
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FY2025/26 Proposed Budget

17.5. The City Manager is authorized to implement the following fiscal transactions as needed to properly manage and account for the City’s cannabis revenues and expenditures:
(A) Adjust the Citywide revenue budgets for all Business Operations T axes relative to Cannabis activities based on actual revenues received and increase the expenditure budget in the Cannabis Policy and Enforcement (I06420000) MYOP as necessary to cover costs.
(B) Adjust the revenue budget for the City Manager’s Office of Cannabis Management operations (02001101) to reflect actual revenues received and increase or decrease the expenditure budget in the operating budget by a like amount. At year -end excess resources must be transferred to I06420000 to offset the cost of enforcement. If there are inadequate revenues available, resources must be transferred from I06420000 to cover the actual operating costs incurred in 02001101.
(C) Establish or increase the revenue budget(s) for fines and administrative penalties collected in accordance with Sacramento City Code section

8.132, relating to the cultivation of cannabis, in the department were collected and increase the expenditure budget in I06420000 to support enforcement activities based on actual revenues received. (D) Adjust the revenue budget for Housing and Dangerous Building fines, fees, and penalties collected by the Community Development Department and the expenditure budget in I06420000 at year-end based on actual revenues received.
(E) Transfer expenditure budgets between I06420000 and the Cannabis Opportunity, Reinvestment and Equity (CORE) (I02420000) MYOP to support CORE program operations.
(F) Transfer expenditure budgets between I06420000 and the Youth Cannabis Outreach & Education program (I06420500) MYOP to support prevention workload in the Office of Youth Development.

17.6. The City Manager is authorized to implement the following fiscal transactions as needed to properly manage and account for the City’s efforts toward reducing homelessness:
(A) Adjust the revenue and expenditure budgets to reflect actual contributions received from external partners in the Homeless Housing Initiatives (I02000200) MYOP to support homeless-services programs. (B) Each fiscal year, unobligated General Fund (Funds 1001/2401) appropriations in existence in the Department of Community Response Office of the Director (23001011) on June 30 must be transferred to the Homeless Housing Initiatives (I23001000) MYOP if the Department has positive net year-end results.
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FY2025/26 Proposed Budget

(C) Each fiscal year, unobligated General Fund (Funds 1001/2401) appropriations in existence in the Office of Community Outreach (23001021) on June 30 must be transferred to the Community Response (I23000100) MYOP if the Department has positive net year-end results. (D) Each fiscal year, unobligated General Fund (Funds 1001/2401) appropriations in existence in the Office of Homeless Services (23001031) on June 30 must be transferred to the Homeless Housing Initiatives (I23001000) MYOP if the Department has positive net year - end results.

(E) Each fiscal year, unobligated General Fund (Funds 1001/2401) appropriations in existence in the Office of Violence Prevention (11001491) on June 30 must be transferred to the Gang Prevention and Intervention (I11003000) MYOP if the Department has positive net year- end results.

17.7. The City Manager is authorized to implement any necessary financial transactions for the administration of revolving loan fund programs authorized by the Council.

17.8. The City Manager is authorized to use Emergency Medical Services Revenue Recovery funds (Intergovernmental Transfer - Ground Emergency Medical Transport and Public Provider – Ground Emergency Medical Transport) to cover overages from the Single Role program and related equipment and vehicles as necessary.

Section 18. Year-End Process and Carryover Authority.

18.1. Each fiscal year, all purchase-order commitments outstanding on June 30, and associated appropriations, are hereby continued.

18.2. If there is not a budgetary surplus in the General Fund (Funds 1001/2401) at year-end, the City Manager shall suspend the General Fund transfers and carryovers authorized in this section. If there is a budgetary surplus in the General Fund and there are forecasted budget deficits in the future fiscal years, the City Manager is authorized to commit non- mandated General Fund revenues and positive net year -end results to future budget development reserves.

18.3. Each fiscal year, unobligated appropriations in existence on June 30 for the Council operations budget will be carried over to the next fiscal year.

18.4. Each fiscal year, unobligated General Fund appropriations in existence in the Arts Stabilization budget (80001065) on June 30 must be transferred to the Cultural and Economic Vitality (I17001000) MYOP if the department has positive net year-end General Fund results.

18.5. Each fiscal year, revenues in excess of budget in Building Inspection, Building Plan Check, Customer Service/Permit Counter, and Planning Operations areas of the Community Development Department must be transferred to the 551
FY2025/26 Proposed Budget

Development Stabilization Contingency Reserve (DSCR), consistent with the adopted DSCR policy, if the Department has positive net year-end results.

If these operations do not achieve the budgeted revenues or if program costs exceed the program budget, then resources must be transferred from the DSCR to these areas of the Community Development Department to cover the shortfall.

18.6. Each fiscal year, unobligated General Fund appropriations in existence in the Human Resources Department on June 30 must be transferred to the Training and Outreach (I08000300) MYOP if the Department has positive net year -end General Fund results.

18.7. Each fiscal year, unobligated net appropriations in existence on June 30 in the Information Technology (IT) Department operations General Fund budget and the citywide IT budget in Citywide and Community Support must be transferred to the IT Critical Infrastructure (A07000700) CIP to create a funding mechanism for future citywide technology initiatives, which the City Manager will review annually.

18.8. Each fiscal year, unobligated appropriations in the City’s California Public Employees’ Retirement System budget account(s) (413170/413172) that are not required to balance the budget must be transferred to the City’s other post- employment benefit trust.

18.9. Each fiscal year, if the START Fund (Fund 2501) has a deficit, unobligated General Fund (Funds 1001/2401) appropriations in existence in the Youth, Parks, and Community Enrichment Department on June 30 must be transferred to Fund 2501 to cover any deficit associated with the general- and auto-liability insurance premiums if the Department has positive net year-end General Fund results.

18.10. Each fiscal year, the Fleet Acquisitions (I06000999) MYOP will be reviewed, and excess funds will be returned to the fund of origin.

18.11. E ach fiscal year, unobligated net appropriations in existence on June 30 in the Public Works Department (15005861) must be transferred to the Commercial Waste Compliance (I15220000) MYOP.

18.12. Each fiscal year, any unspent Measure U Fund (Fund 2401) appropriations in the Youth, Parks, and Community Enrichment Department on June 30 must be transferred to the Measure U Park Improvements (L19706000), Citywide Pool Assess/Repair (L19706500), or Recreation Facility Improvements (L19800200) CIPs until the backlog of deferred maintenance, for existing projects within the programs, are completed.

18.13. The City Manager is authorized to make all necessary budgetary adjustments to account for the interfund Loan from the Risk Fund (Fund 6502) to the General Fund (Fund 1001) related to the agreement with the City and the Natomas Basin Conservancy Loan.

552
FY2025/26 Proposed Budget

18.14. Each fiscal year, transfer up to $500,000 of available operating grant resources to the Public Safety Capital Improvement Program (F11101000) for specialty vehicle and equipment purchases.

18.15. Each fiscal year, any unspent Measure U Fund (Fund 2401) appropriations in the Diversity, Outreach and Recruitment (DOR) program on June 30 must be transferred to the Fire – Diversity, Outreach and Recruitment Program (I12000200) MYOP as long as any Fire Department year -end deficits can be covered with available year -end General Fund (Funds 1001/2401) budgetary surplus.

18.16 Each fiscal year, a portion of unspent appropriations in the Youth Sports Field Permit Program MYOP (I19143000) on June 30 may be transferred to the Measure U Park Improvements (L19706000), to be used to address the backlog of deferred maintenance for sports fields.

18.17 The City Manager or their designee is authorized to make all necessary budgetary and accounting adjustments related to the Zero-dollar Rate Program (I21002600) to the various impact fees affected by the Reduced Residential Development Impact Fees for Affordable Dwelling Units Program.

Section 19. Year-End Reporting.

19.1. Each fiscal year, after any adjustments specifically provided for in other sections of this resolution, all appropriations in the Operating Budget that remain unspent and unencumbered (unobligated) on June 30 will revert to the available fund balances of the respective funds. Any budgetary surplus in the General Fund (Funds 1001/2401), determined as part of the fiscal year -end close process, will be reported in the ACFR as Assigned for Next Year’s Budget, Unassigned, or as specifically directed below or in a subsequent resolution.

19.2. All unrealized investment gains determined as part of the fiscal year-end close process will be reported in the ACFR as Assigned for Unrealized Investment Gains, as those gains are not available for appropriation.

Section 20. Miscellaneous Controls and Considerations.

20.1. Expenditures by fund at the department level must not exceed the Operating Budget as amended by any subsequent approval by the Council or the City Manager in accordance with this resolution.

20.2. Subject to the City Manager’s approval, projected fund deficiencies in any department must be corrected as follows in accordance with the sections of this resolution governing transfers and appropriations by reducing expenditures in the department (e.g., restricting purchase orders, freezing vacant positions) or by an appropriation transfer from Administrative Contingency or available fund balance, or both, subject to the provisions of section 5. 553
FY2025/26 Proposed Budget

20.3. The City Manager is authorized to eliminate funds as required for proper accounting and fiscal management when the purpose of a fund has expired, and its fund balance has been expended.

20.4. In all staff reports that come before the Council, net budgetary impacts on all funds, including indirect impacts, must be stated clearly and concisely so that the Council has a full understanding of the financial consideration and impacts of its decisions.

20.5. The City Manager shall begin using an equity lens in the review of all budgetary recommendations to Council including the annual budget, midyear budget and staff reports as soon as practical after development of a shared definition of equity in coordination with the community, development of associated outcomes and measures and Council’s creation and adoption of an Equity Resolution.

Resolution Exhibits:

Exhibit A – Budget Changes
Exhibit B – Staffing Summary
Exhibit C – FY2025/26 Approved Operating Budget
Exhibit D – 2025-2030 Approved Capital Budget

554
FY2025/26 Proposed Budget

Exhibit A

FY2025/26 BUDGET CHANGES

(will be added after Budget Adoption)

555
FY2025/26 Proposed Budget

Exhibit B

CITYWIDE STAFFING SUMMARY (By Department)

Department
FY2024/25
Amended
FY2025/26
Re-Org
FY2025/26
Add deletes
FY2025/26
Augmentation/Reduction
FY2025/26
Proposed
Mayor/Council 43.00 - - - 43.00 City Auditor 10.00 - - - 10.00 City Attorney 64.00 - - - 64.00 City Clerk 24.00 - - - 24.00 City Manager 64.00 (8.00) (1.00) (3.00) 52.00 City Treasurer 14.00 - - - 14.00 Community Development 318.00 - - (3.00) 315.00 Community Response 38.00 - - - 38.00 Convention and Cultural Services 124.50 - - - 124.50 Finance 94.00 8.00 - 1.00 103.00 Fire 760.50 - - 3.00 763.50 Human Resources 83.00 - (1.00) (5.00) 77.00 Information Technology 202.50 - - - 202.50 Police 1,119.50 - (1.00) (26.00) 1,092.50 Public Works 769.65 - - 11.00 780.65 Utilities 599.18 - - 8.00 607.18 Youth, Parks, and Community Enrichment 709.87 - (3.98) (31.89) 674.00 Total 5,037.70 - (6.98) (45.89) 4,984.83 556
FY2025/26 Proposed Budget

Exhibit B

CITYWIDE STAFFING SUMMARY (By Fund)

FY2024/25
Amended
FY2025/26
Re-Org
FY2025/26
Add/deletes
FY2025/26
Augmentation/Reduction
FY2025/26
Proposed
General Fund
Mayor/Council 32.00 - - - 32.00 City Auditor 10.00 - - - 10.00 City Attorney 64.00 - - - 64.00 City Clerk 24.00 - - - 24.00 City Manager 30.00 (9.00) (1.00) - 20.00 City Treasurer 14.00 - - - 14.00 Community Development 196.00 - - (2.00) 194.00 Convention and Cultural Services - - - - - Finance 94.00 8.00 - 1.00 103.00 Fire 742.50 - - 4.00 746.50 Human Resources 44.00 - (1.00) (4.00) 39.00 Information Technology 202.50 - - - 202.50 Police 1,032.00 - (1.00) (3.00) 1,028.00 Public Works 432.00 - - 10.00 442.00 Youth, Parks, and Community Enrichment 13.00 - - - 13.00 Citywide and Community Support - - - - - Subtotal General Funds 2,930.00 (1.00) (3.00) 6.00 2,932.00 Measure U
Mayor/Council 11.00 - - - 11.00 City Manager 32.00 1.00 - (3.00) 30.00 Community Development 122.00 - - (1.00) 121.00 Community Response 38.00 - - - 38.00 Convention and Cultural Services 25.95 (2.00) - - 23.95 Fire 18.00 - - (1.00) 17.00 Human Resources 3.00 - - (1.00) 2.00 Police 87.50 - - (23.00) 64.50 Public Works 4.00 - - - 4.00 Youth, Parks, and Community Enrichment 547.93 (20.70) (4.73) (31.89) 490.61 Subtotal General Funds 889.38 (21.70) (4.73) (60.89) 802.06 Enterprise Funds
Community Center
Convention & Cultural Services 98.55 2.00 - - 100.55 Parking
Public Works 60.75 - - - 60.75 Solid Waste
Public Works 183.30 - - 1.00 184.30 Storm Drainage
Utilities 135.00 - 2.00 6.00 143.00 Wastewater
Utilities 94.00 - - - 94.00 Water
Utilities 364.18 - (2.00) 2.00 364.18 Subtotal Enterprise Funds 935.78 2.00 - 9.00 946.78 Internal Service Funds
Fleet Management
Public Works 83.00 - - - 83.00 Risk Management
Human Resources 17.00 - - - 17.00 Workers' Compensation
Human Resources 19.00 - - - 19.00 Subtotal Internal Service Funds 119.00 - - - 119.00 FY2025/26 SUMMARY OF FULL-TIME EQUIVALENT (FTE)
557
FY2025/26 Proposed Budget

Exhibit B

CITYWIDE STAFFING SUMMARY (By Fund) (continued)

Other Governmental Funds
4th R Program
Youth, Parks, and Community Enrichment 132.70 - 0.75 - 133.45 Innovation and Growth
City Manager 2.00 - - - 2.00 Marina
Public Works 6.60 - - - 6.60 START
Youth, Parks, and Community Enrichment 16.24 20.70 - - 36.94 City/County Office-Water Planning
Utilities 6.00 - - - 6.00 Subtotal Other Governmental Funds 163.54 20.70 0.75 - 184.99 TOTAL 5,037.70 - (6.98) (45.89) 4,984.83 558
FY2025/26 Proposed Budget

Exhibit C

FY2025/26 APPROVED OPERATING BUDGET

(will be added after Budget Adoption)

559
FY2025/26 Proposed Budget

Exhibit D

APPROVED 2025-2030 CAPITAL IMPROVEMENT PROGRAM

(will be added after Budget Adoption)

560
City of Sacramento
PROPOSED BUDGET | FISCAL YEAR 2025/26
Finance Department
CityofSacramento.org
PROPOSED BUDGET | FISCAL YEAR 2025/26 | CITY OF SACRAMENTO

CITY OF SACRAMENTO FACTS
• The City of Sacramento was founded in 1849 and is the oldest incorporated city in California.
• In 1920, city voters adopted a Charter (municipal constitution) and a City Council/City Manager form of government.
• The City is divided into eight districts.
• Elected members of the City Council serve a four-year term. • The Mayor is elected by all voters in the City. In 2002, voters approved a measure for the Mayor to serve full-time. All other Councilmembers are elected by district and serve part-time. • The Mayor and other Councilmembers have an equal vote in all matters.
• The City of Sacramento currently encompasses approximately 100 square miles.
• The City of Sacramento population is estimated at 520,407.

KEVIN MCCARTY
Mayor

LISA KAPLAN
Councilmember, District 1

ROGER DICKINSON
Councilmember, District 2

KARINA TALAMANTES
Vice Mayor, District 3

PHIL PLUCKEBAUM
Councilmember, District 4

CAITY MAPLE
Councilmember, District 5

ERIC GUERRA
Mayor Pro Tem, District 6

RICK JENNINGS, II
Councilmember, District 7

MAI VANG
Councilmember, District 8
City of Sacramento
PROPOSED CAPITAL IMPROVEMENT PROGRAM | 2025-2030
PROPOSED CAPITAL IMPROVEMENT PROGRAM | 2025-2030 | CITY OF SACRAMENTO Finance Department
CityofSacramento.org

KEVIN MCCARTY
Mayor

LISA KAPLAN
Councilmember, District 1

ROGER DICKINSON
Councilmember, District 2

KARINA TALAMANTES
Vice Mayor, District 3

PHIL PLUCKEBAUM
Councilmember, District 4

CAITY MAPLE
Councilmember, District 5

ERIC GUERRA
Mayor Pro Tem, District 6

RICK JENNINGS, II
Councilmember, District 7

MAI VANG
Councilmember, District 8

PROPOSED

CITY OF SACRAMENTO

CAPITAL IMPROVEMENT PROGRAM
2025-2030

KEVIN MCCARTY
Mayor

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

ROGER DICKINSON ERIC GUERRA
Councilmember, District 2 Mayor Pro Tem, District 6

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

PHIL PLUCKEBAUM MAI VANG
Councilmember, District 4 Councilmember, District 8

LEYNE MILSTEIN
Interim City Manager

MICHAEL JASSO MARIO LARA Assistant City Manager Assistant City Manager

LEYNE MILSTEIN RYAN MOORE
Assistant City Manager Assistant City Manager

Prepared by

DEPARTMENT OF FINANCE

BUDGET, POLICY, AND STRATEGIC PLANNING DIVISION

PETER COLETTO MIRTHALA SANTIZO

JASON BADER NORA HOWARD BRIAN MARTIN LEILA MENOR

ELIZABETH RAMOS MICHAEL TAMAYO CHAM TU

in conjunction with CIP coordinators and staff

2025-2030 Proposed Capital Improvement Program

Table of Contents Page

EXECUTIVE SUMMARY AND OVERVIEW
Transmittal Letter ............................................................................................................. 1 Capital Budgeting Excellence Award ............................................................................... 3 Proposed Overview of the 2025-2030 CIP ....................................................................... 4

HOW TO READ THIS DOCUMENT
Key Sections .................................................................................................................... 9 The Budget Process ...................................................................................................... 10 The CIP Review Process ............................................................................................... 10 General Plan Consistency – Section C .......................................................................... 11 Program Area Summaries – Sections D-I ...................................................................... 12 Unfunded Capital Needs – Section J ............................................................................. 17 Description of Major Funding Sources – Section K ........................................................ 17 Indexes – Sections L-O .................................................................................................. 17 Resources – Section P .................................................................................................. 17

SECTION A – BUDGET SCHEDULES
Schedule 1 – Capital Budget by Fund .......................................................................... A-1 Schedule 2 – Capital Budget by Program Area ........................................................... A-2 Schedule 3 – Fund and Program Area Summaries ...................................................... A-3 Schedule 4 – Capital Improvement Program: Total Fund Summary ............................ A-4 Schedule 5 – Capital Improvement Program: Total Program Summary ...................... A-8

SECTION B – SACRAMENTO AREA MAPS
City Council Districts .................................................................................................... B-1 Community Plan Areas ................................................................................................ B-2 Shovel-Ready Areas .................................................................................................... B-3 Neighborhood Commercial Revitalization Areas .......................................................... B-4 Bikeways ...................................................................................................................... B-5

SECTION C – GENERAL PLAN CONSISTENCY
Introduction .................................................................................................................. C-1 FY2025/26 New, Site-Specific CIPs ............................................................................. C-4

SECTIONS D-I – PROGRAM AREA SUMMARIES

SECTION D – General Government
Introduction .................................................................................................................. D-1 Major Funding Sources ................................................................................................ D-2 Major Programs and Projects ...................................................................................... D-4 Map .............................................................................................................................. D-5 Programmatic Details ................................................................................................... D-6

2025-2030 Proposed Capital Improvement Program

ii
Table of Contents (continued) Page
SECTION E – Public Safety
Introduction .................................................................................................................. E-1 Major Funding Sources ................................................................................................ E-1 Major Programs and Projects ...................................................................................... E-2 Programmatic Details ................................................................................................... E-4

SECTION F – Convention, Culture, and Leisure
Introduction .................................................................................................................. F-1 Major Funding Sources ................................................................................................ F-1 Major Programs and Projects ...................................................................................... F-3 Map .............................................................................................................................. F-4 Programmatic Details ................................................................................................... F-5

SECTION G – Parks and Recreation
Introduction .................................................................................................................. G-1 Major Funding Sources ................................................................................................ G-2 Major Programs and Projects ...................................................................................... G-4 Map .............................................................................................................................. G-5 Programmatic Details ................................................................................................... G-6

SECTION H – Transportation
Introduction .................................................................................................................. H-1 Major Funding Sources ................................................................................................ H-3 Major Programs and Projects ...................................................................................... H-5 Map .............................................................................................................................. H-8 Programmatic Details ................................................................................................... H-9

SECTION I – City Utilities
Introduction ................................................................................................................... I-1 Major Funding Sources ................................................................................................. I-2 Major Programs and Projects ....................................................................................... I-3 Map ............................................................................................................................... I-6 Programmatic Details .................................................................................................... I-7

SECTION J – UNFUNDED CAPITAL NEEDS
Introduction ................................................................................................................... J-1 Unfunded Deferred Maintenance .................................................................................. J-2 Unfunded New Assets .................................................................................................. J-2 Major Long-Term Projects ............................................................................................ J-3 General Government – Section D ................................................................................. J-3 Public Safety – Section E .............................................................................................. J-7

2025-2030 Proposed Capital Improvement Program

iii
Table of Contents (continued) Page
Convention, Culture, and Leisure – Section F .............................................................. J-8 Parks and Recreations – Section G ............................................................................ J-10 Transportation – Section H ......................................................................................... J-11 City Utilities – Section I ............................................................................................... J-14 Unfunded Capital Needs Itemized Project List ............................................................ J-16

SECTION K – DESCRIPTION OF MAJOR FUNDING SOURCES
Major Funding Types ................................................................................................... K-1 Major Funding Sources ............................................................................................... K-1 Debt .......................................................................................................................... ... K-1 Fund 1001 – General Fund .......................................................................................... K-2 Fund 1003 – American Rescue Plan Act Reinvestment Fund ..................................... K-3 Funds 2002 and 2036 – Gas Tax and Road Maintenance & Rehabilitation Account Funds ................................................................................................................ K-4 Fund 2007 – Major Street Construction Fund .............................................................. K-5 Fund 2008 – Trench Cut Fee Fund .............................................................................. K-6 Fund 2013 – Transportation Development Act Fund ................................................... K-7 Fund 2016 – Development Services Fund ................................................................... K-8 Funds 2023, 2026, 2038, and 2039 – New Measure A
Construction and Maintenance Funds ............................................................... K-9 Fund 2035 – Tree Planting and Replacement Fund .................................................. K-10 Fund 2232 – Landscaping and Lighting District Fund ................................................ K-11 Fund 2401 – Measure U Fund ................................................................................... K-12 Fund 2608 – Marina Fund .......................................................................................... K-13 Fund 3204 – Park Development Impact Fee Fund .................................................... K-14 Fund 3206 – North Natomas Financing Plan Public Facilities Fee Fund ................... K-15 Funds 3702, 3703, and 3704 – Capital Grant Funds ................................................. K-16 Fund 6001 – Water Development Fee Fund .............................................................. K-17 Fund 6002 – Sewer Development Fee Fund ............................................................. K-18 Fund 6004 – Parking Fund ........................................................................................ K-19 Fund 6005 – Water Fund ........................................................................................... K-20 Fund 6006 – Wastewater Fund .................................................................................. K-21 Fund 6007 – Solid Waste Fund ................................................................................. K-22 Fund 6010 – Community Center Fund ....................................................................... K-23 Fund 6011 – Storm Drainage Fund ............................................................................ K-24 Fund 6012 – 4th R Program Fund .............................................................................. K-25 Fund 6021 – Storm Drainage Property Fee Fund ...................................................... K-26 Fund 6501 – Fleet Management Fund ....................................................................... K-27

Sacramento City CouncilMay 13, 2025

Sacramento City Council
May 13, 2025