Agenda packet — San Carlos City Council, June 12, 2023 (part 1 of 3)

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
June 12, 2023 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still recommended by the California Department of Health. To maintain public health and safety, please do not attend in person if you are experiencing respiratory symptoms (e.g. cough, runny nose, and/or sore throat).

Provide Public Comment. To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
Zoom. https://us02web.zoom.us/j/88256140939; or call 16699009128 and enter the Meeting ID #: 882 5614 0939
Meeting Webportal . www.cityofsancarlos.org/agenda Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment. If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely pursuant to Assembly Bill 2449.

MAYOR: Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS
a. Present a Proclamation Recognizing June 2023 as Pride Month.

7. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

8. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the balance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

9. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the April 24, 2023 City Council Regular Meeting Minutes. c. Approve the May 5, 2023 City Council Special Meeting Minutes. d. Adopt a Resolution Rejecting All Bids and Rebidding the 1232 Cherry Street Building Demolition Project C2216.
e. Deny Claim of Elizabeth Iniguez.
f. Deny Claim of Sandy Khalil.
g. Adopt a Resolution Appropriating $180,000 from the General Capital Fund (Fund 25) in Fiscal Year 202223 for the Removal of Landslide Preventative Measures; Authorizing the City Manager to Execute a Public Projects Agreement with Brannon Corporation in the amount of $163,811; and Authorizing an Expenditure of Contingency up to the Project Budget.

10. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the Biennial Budget for Fiscal Years 202325, Including the TwoYear Operating and Capital Budgets, for the City of San Carlos.
b. Consideration of Adopting a Resolution Electing the Population and Price Adjustment Factors and Establishing the 202324 Appropriations Limit of the City of San Carlos, Pursuant to California Constitution Article XIIIB and Section 7900 Et Seq. of the California Government Code.

11. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting. a. Consideration of Agendizing an Item to Review Construction Time Limits.

12. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In compliance with the Americans with Disabilities Act and Title VI, and as outlined in the City’s Reasonable Accommodations Policy, if you need special assistance or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 8024222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

1 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
June 12, 2023 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely pursuant to Assembly Bill 2449.

MAYOR: Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS
a. Present a Proclamation Recognizing June 2023 as Pride Month.

8. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

12. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

2 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
June 12, 2023 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely pursuant to Assembly Bill 2449.

MAYOR: Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS
a. Present a Proclamation Recognizing June 2023 as Pride Month.

8. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

12. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

3 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
June 12, 2023 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely pursuant to Assembly Bill 2449.

MAYOR: Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS
a. Present a Proclamation Recognizing June 2023 as Pride Month.

8. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

12. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

4 San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Regular Meeting
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
April 24, 2023 7:00 PM

MINUTES

ROLL CALL

City Council Present: Adam Rak, Mayor
Ronald Collins, Councilmember
John Dugan, Vice Mayor
Sara McDowell, Councilmember
Pranita Venkatesh, Councilmember

Staff Present: Kristina Bell, Police Chief
Nil Blackburn, Assistant City Manager
Marco Lao, Senior Accountant
Jeff Maltbie, City Manager
Andrea Mardesich, Assistant Community Development Director Rebecca Mendenhall, Administrative Services Director
Crystal Mui, City Clerk
Jesse Myers, Administrative Sergeant
Amy Newby, Parks and Recreation Director
Dave Pucci, Deputy Fire Chief
Gregory Rubens, City Attorney
Al Savay, Community Development Director

1. CALL TO ORDER

Mayor Rak called the meeting to order at 7:00 PM.

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

None.

3. PLEDGE OF ALLEGIANCE

Mayor Rak led the pledge of Allegiance.

4. CHANGES TO THE ORDER OF THE AGENDA

Councilmember Collins requested to move the P ublic Comments section up on the agenda before the Presentations section.

7. PUBLIC COMMENT

The Public Comments section was moved up on the agenda following Section 4 – Changes to the Order of the Agenda.

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Gary Waldeck distributed a letter to the Council outlining his concerns and requested a review of the City’s management system.

Gino Guidi, resident and an Industrial Arts Business Association Board Member, thanked Council for their partnership in the Industrial Arts District.

John Lilygren, resident, commented that he temporarily fixed a fence at North Crestview Park that had been damaged from a recent incident. He requested the City inspect the area.

Mayor Rak directed staff to look into Mr. Lilygren’s comments.

John Eakin, resident, expressed concerns regarding a home remodel project on Howard Avenue and requested a response to the questions he emailed to the Planning Division staff.

Mayor Rak directed staff to follow-up with Mr. Eakin’s comment.

Judy Weinbaun, resident, echoed Mr. Eakin’s concern regarding the remodel project on Howard Avenue and added that the City has an Accessory Dwelling Unit problem.

5. PRESENTATIONS

a. Present a City Coin to Community Volunteer Philip Abrams.

Mayor Rak presented a city coin to Phil Abrams for his community volunteers.

Mr. Abrams shared about his work in the community and thanked Council for the recognition and for their service to the City.

b. Present a Proclamation Recognizing April 2023 as Parkinson’s Awareness Month.

Mayor Rak p resented a proclamation to Vikas Chinnan recognizing Parkinson’s Awareness Month.

Mr. Chinnan, Parkinson’s Foundation California Chapter Advisory Board Member, thanked the Council for the recognition. He introduced Dr. Salima Brillman, Founder of the Parkinson's Disease and Movement Disorder Center of Silicon Valley, and shared his personal story with Parkinson’s disease.

Public Comment
Rachel Howsmon with the Parkin son Foundation announced the Moving Day San Francisco Walk on May 6th to raise awareness of Parkinson’s disease.

c. Present Proclamations Recognizing Arroyo Upper Elementary, Arundel Elementary, Brittan Acres Elementary, Heather Elementary, Mariposa Upper Elementary, White Oaks Elementary and San Carlos Charter Learning Center for Receiving the 2023 California Distinguished School Designation.

Mayor Rak recognized seven elementary schools in San Carlos for earning the designation of a 2023 California Distinguished School and presented proclamations to Assistant Superintendent Hans Barber, Arundel Principal Jennifer Gaboury, Brittan Acres Princip al Suzanne Fast, Heather Principal Diederich Bonemeyer and Charter Learning Center’s Executive Director, Francis Dickinson.

Mr. Barber thanked the Council for the recognition.

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6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS

Councilmember McDowell commended staff on the successful return of the farmers market and for the downtown planters. She also reported on attending the recent Chil dcare Roundtable discussion and ribbon cutting ceremony for the San Mateo County Navigation Center.

Mayor Rak also congratulated staff on the successful Farmers Market launch and commended Public Works on the water barriers and updates made in the downtown.

7. PUBLIC COMMENT

The Public Comments section was moved up on the agenda prior to Section 5 - Presentation.

8. CONSENT CALENDAR

MOTION: Approve the City Council Consent Calendar items ‘a’ through ‘f’.

MOVER: John Dugan
SECONDER: Ronald Collins
AYES: Collins, McDowell, Venkatesh, Dugan, Rak
NAYS: None.

RESULT: Motion Passed 5 – 0

a. Motion to Waive Reading of All Ordinances.

b. Approve the March 13, 2023 City Council Regular Meeting Minutes.

c. Approve the March 27, 2023 City Council Special Meeting Minutes.

d. Deny Claim of Gil Lubetzky.

e. Adopt a Resolution Authorizing the City Manager to Amend the Agreement with Hi -Tech Emergency Vehicle Service, Inc. and Appropriating Funds in Fiscal Year 2022 -23 from the Equipment Replacement Fund 0010 for the Change Order and Equip One Hi -Tech/Spartan Gladiator MFD 1500 GPM Type I Fire Pumper (Fire Engine) in an Amount Not to Exceed $50,000. Resolution 2023-046

f. Adopt a Resolution Authorizing the City Manager to Enroll in the State of California’s Purchase Card (CAL-Card) Program. Resolution 2023-047

9. PUBLIC HEARING

a. Consideration of Adopting a Resolution Authorizing Adjustments to the Cost of Services Schedule (User Fees), Park Facility Development, Sewer Capacity Charge and Traffic Impact Fee for Fiscal Year 2023 -24, and Adding a Visa/Police Clearance Request Form an d Beekeeping Fees to the Master Fee Schedule.

Administrative Services Director Rebecca Mendenhall presented on the proposed amendments to the Cost of Services Schedule (User Fees), Park Facility Development, Sewer Capacity Charge and Traffic Impact Fee for Fiscal Year 2023-24.

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Ms. Mendenhall, Amy Newby Parks and Recreation Director, City Attorney Greg Rubens, Assistant Community Development Director Andrea Mardesich, Assistant City Manager Nil Blackburn and City Manager Jeff Maltbie responded to Council questions.

Public Comments
None.

MOTION: Approve to Close the Public Hearing.

MOVER: John Dugan
SECONDER: Ronald Collins
AYES: Dugan, Collins, McDowell, Venkatesh, Rak
NAYS: None.

RESULT: Motion Passed 5 – 0

Council expressed concerns with the proposed fee for the removal of dead trees and discussed options.

MOTION: Adopt Resolution 2023 -048 Authorizing Adjustments to the Cost of Services Schedule (User Fees), Park Facility Development, Sewer Capacity Charge and Traffic Impact Fee for Fiscal Year 2023 -24, and Adding a Visa/Police Clearance Request Form and Beekeeping Fees to the Master Fee Sc hedule with an amendment to lower the dead tree removal fee to $100.

MOVER: Ronald Collins
SECONDER: John Dugan
AYES: Venkatesh, Dugan, Collins, McDowell, Rak
NAYS: None.

RESULT: Motion Passed 5 – 0

10. REPORTS TO COUNCIL

a. Receive the Annual Update on Police Services.

Police Chief Kristina Bell provided Council with an update on police services from 2022 and responded to Council questions.

Council recessed at 8:45 PM and reconvened the meeting at 8:51 PM.

11. STUDY SESSION

a. Receive a Progress Report on the Status of the Downtown Specific Plan Project and Provide Staff Direction on Preliminary Urban Design Concepts.

Planning Manager Lisa Porras provided Council with an overview of the Downtown Specific Plan Project, reviewed the community outreach and engagement and then turned the presentation over to Consultant Jami Williams with RRM Design Group to present the urban design concepts. Ms. Porras spoke on the community’s response to the design concepts and, along with Ms. Williams and City Manager Jeff Maltbie, responded to Council questions.

Council requested staff to confirm if the alley next to Hallmark is city owned.

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Public Comment
- Mark Bauhaus requested the consultants be more aggressive and provide more creative options.

- Heidi spoke on the importance of landscaping in the downtown area and requested smooth pavements for the mobile impaired.

- Sonia Elkes, resident, spoke on micro-mobility and echoed the previous public comment on the importance of accessibility and landscape.

The majority of Council spoke in favor of turning the 700 block into a full plaza and provided the below feedback:
- Consider access for delivery trucks
- A t a later stage, consider also widening sidewalks for the 600 and 800 blocks - B etter understand the need for parking
- Incentivize downtown workers to use the employee parking permit at the Wheeler Parking Plaza to make public parking spaces more available - Explore accessibility access closer to the closed area - If placing bollards on the 700 block, consider adding them to the other blocks as well

Council spoke in favor alleyway improvements that are well-lit and have art enhancements and directed staff to be clear on functionality and expectations, b e creative with the alleyways’ surface and explore options that could naturally slow and manage traffic.

Council provided the following feedback in regards to design elements for public spaces:
- D esignate space for music/performances in Harrington Park - B e mindful of Harrington Park’s unique constraints
- I ncorporate greenery in Harrington Park
- T ry to include a small natural play area for children - H ave public restrooms in Harrington Park and Wheeler Plaza - B e creative with ideas to actively use the Wheeler Plaza area that don’t specifically focus on dining, such as pop-up shops and activities , holiday market , art installation, community garden, and activities that are inviting for all ages and open later. - S et aside areas of Wheeler Plaza to be designed into something special at a later phase - In clude areas in Wheeler Plaza where the public can bring their own food to dine - Gather input from the Youth Advisory Council

12. AGENDA SETTING

None.

13. ADJOURNMENT

Mayor Rak adjourned the meeting at 10:28 PM i n memory of the nine fallen members of the 101st Airborne Division of the US Army.

Crystal Mui,
City Clerk

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San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
May 5, 2023 1:00 PM

MINUTES

ROLL CALL

City Council Present: Adam Rak, Mayor
Ronald Collins, Councilmember
John Dugan, Vice Mayor
Sara McDowell, Councilmember
Pranita Venkatesh, Councilmember (arrived 2:14 PM)

Staff Present: Adam Aronson, Economic Development & Housing Manager Louis Duran, Public Works Superintendent
William Hoch, IT Manager
Marco Lao, Senior Accountant
Grace Le, City Engineer
Jenny Liu, Senior Management Analyst
Jeff Maltbie, City Manager
Andrea Mardesich, Assistant Community Development Director Caitlyn Matoso, Recreation Supervisor
Tyler Muela, Recreation Manager
Crystal Mui, City Clerk
Lisa Porras, Advance Planning Manager
Angie Rodriguez, Human Resources Manager
Gregory Rubens, City Attorney
Wendy Schettino, Recreation Supervisor
Carrie Tam, Financial Services Manager
Chris Valley, Building Official
Megan Wooley-Ousdahl, Principal Planner

1. CALL TO ORDER

Mayor Rak called the meeting to order at 1:00 PM.

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

All Councilmembers are participating in this meeting in-person.

3. PLEDGE OF ALLEGIANCE

Mayor Rak led the Pledge of Allegiance.

4. PUBLIC COMMENT

None.

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5. STUDY SESSION

a. Discuss the Budget Process and General Overview.

City Manager Jeff Maltbie commenced the item by thanking finance and staff for their work on the budget. He provided background and an overview of the proposed budget.

Administrative Services Director Rebecca Mendenhall presented on the budget process, reviewed projections and responded to C ouncil questions. She then turned the presentation over to the following Department Heads to share about their dept and highlight their accomplishments and goals:
− Nil Blackburn, City Manager Department
− Crystal Mui, City Clerk Department
− Rebecca Mendenhall, Administrative Services Department − Al Savay, Community Development Department
− Amy Newby, Parks and Recreation Department
− Steven Machida, Public Works Department
− Kristina Bell, Police
− Dave Pucci, Fire

Fire Chief Pucci and Ms. Blackburn responded to Council questions.

Public Comment
None.

Councilmember McDowell requested staff consider adding adult Mental Health training as part of CERT Training.

Council recessed at 2:29 PM and reconvened at 2:39 PM.

b. Discussion of Recommended Two-Year Operating Budget for the Fiscal Years 2023-25.

City Manager Jeff Maltbie provided opening comments and noted a change from the staff report – he is no longer recommending any changes to the fire budget aside from the Cost of Living adjustment.

City Attorney Greg Rubens recused himself from this item as one of the recommended budget items would directly affect his status with the City.

Rebecca Mendenhall Administrative Services Director reviewed the recommended program changes and noted staff's additional budget recommendation to add $150,000 for tree replacement. Ms. Mendenhall, along with City Clerk Crystal Mui , Public Works Director Steven Machida, Building Official Chris Valley and City Manager Jeff Maltbie responded to Council questions.

Public Comment
None.

Council spoke in support of the recommended budget adjustments.

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Councilmember McDowell suggested the City continue the Chamber of Commerce’s previous tradition of presenting annual awards to the community and to consider a social media push notifying the community of the break from sewer rate increases this year.

c. Discussion of Recommended Capital Improvement Program for the Fiscal Years 2023-28.

Rebecca Mendenhall Administrative Services Director reviewed the five- year Capital Improvement Program (CIP) and outlined the new projects and projects with proposed changes.

Ms. Mendenhall, Public Works Director Steven Machida, City Manager Jeff Maltbie, Economic Development and Housing Manager Adam Aronson, Public Works Superintendent Lou Duran, Planning Manager Lisa Porras, IT Manager Will Hoch, and Parks and Recreation Director Amy Newby responded to Council questions.

Council provided the following suggestions and comments to consider:
− Proactively access landslides
− Continue encouraging consultants to transfer to the use of electric lawn equipment − Add additional electric vehicle charging stations in various city parking lots − Schedule a report from Silicon Valley Clean Water for an update their project to transfer treated water back into the reservoir
− Keep in mind that street slurry doesn’t work well on quiet streets where kids play − S taff from Community Development and Public Works should coordinate timing of projects to minimize the impact on streets

Public Comment
None.

Council provided the following direction to:
− R emove the Harrington Park turf project from the proposed CIP Budget − I ncrease $30,000 for banners in the Industrial Arts District − R eceive periodic updates in three and six months for the installation of ovens in the 817 Walnut condo project
− As a l ong-term goal, consider adding electric vehicle charging stations for employees and in parks
− S chedule an update report from the Community Foundation and consider removing the Community Foundation grant from the Fiscal Year 2024-25 operating budget
− S chedule an update report from CalWater

5. ADJOURNMENT

Mayor Rak adjourned the meeting at 4:50 PM.

Crystal Mui
City Clerk

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 12, 2023
ITEM TITLE: Adopt a Resolution Rejecting All Bids and Re-bidding the 1232 Cherry Street Building Demolition Project C2216.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution to reject all bids and re-bid the 1232 Cherry Street Building Demolition Project (“Project”) C2216.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with this recommendation and no additional funding is needed at this time. Funding for the Project comes from C2216, which has approximately $250,000 available that was approved for Fiscal Year (“FY”) 2022-23.

BACKGROUND:

During the FY 2022-23 budget process, the City Council approved the Project to demolish the existing building at 1232 Cherry Street and relocate the alley to its final location prior to the construction of the City’s affordable housing project.

Demolishing the building prior to the approval of the high-density affordable housing project will accommodate additional workspace for the contractor, relocate the alley to its final location, and allow for the relocation of underground infrastructure and utilities.

The final bid set documents were prepared and signed by the City Engineer on May 1, 2023.

ANALYSIS:

On May 8, 2023, the City advertised for bids for construction of the Project. On May 16, 2023, the City held a pre-bid meeting and bids were opened on May 30, 2023. Four bids were received with the following results:

Contractor Bid Amount
Engineer’s Estimate $200,000 - $250,000
Brannon Corporation $101,994.50
San Jose Demolition, Inc. $186,800
OBS Engineering, Inc. $260,170
Penkor General Contractors Inc. DBA Penkor Wrecking $273,200

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The lowest apparent bid was submitted by Brannon Corporation in the amount of $101,994.50.

Brannon Corporation made a clerical error in the tabulation of their bid schedule, which is significantly under the Engineer’s Estimate and does not accurately reflect the cost of the work.

The second lowest bid was submitted by San Jose Demolition, Inc. in the amount of $186,800.

Staff reviewed and determined San Jose Demolition, Inc. was not a “responsible bidder” and ineligible for contract award as they, and their listed subcontractor, do not have the required licensing to perform asbestos abatement for the Project.

The third lowest bid was submitted by OBS Engineering, Inc. However, the bid amount from OBS Engineering, Inc. exceeds the engineer’s estimate.

After evaluation of the bids, staff recommends rejecting all bids and re-bidding to ensure receipt of responsible, responsive, and competitive bids.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution to reject all bids and re-bid the 1232 Cherry Street Building Demolition Project C2216; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS REJECTING ALL BIDS AND RE-BIDDING THE 1232 CHERRY STREET BUILDING DEMOLITION PROJECT C2216.

WHEREAS, during the Fiscal Year 2022-23 budget process, the City Council approved the 1232 Cherry Street Demolition Project C2216 (“Project”) to demolish the existing building at 1232 Cherry Street and relocate the alley to its final location prior to the construction of the City’s affordable housing project; and

WHEREAS, demolishing the building prior to the approval of the high-density affordable housing project will accommodate additional workspace for the contractor, relocate the alley to its final location, and allow for the relocation of underground infrastructure and utilities; and WHEREAS, the final bid set documents were prepared and signed by the City Engineer on May 1, 2023; and
WHEREAS, the City advertised for bids for construction of the Project on May 8, 2023; and
WHEREAS, the City held a pre-bid meeting on May 16, 2023 and bids were opened on May 30, 2023; and

WHEREAS, the lowest apparent bid was submitted by Brannon Corporation in the amount of $101,994.50; and
WHEREAS, staff reviewed and determined Brannon Corporation made a clerical error in the tabulation of their bid schedule, which is significantly under the engineer’s estimate and does not accurately reflect the cost of the work; and
WHEREAS, the second lowest bid was submitted by San Jose Demolition, Inc. in the amount of $186,800; and
WHEREAS, staff reviewed and determined San Jose Demolition, Inc. was not a “responsible bidder” and ineligible for contract award as they, and their listed subcontractor, do not have the required licensing to perform asbestos abatement for the Project; and WHEREAS, the third lowest bid was submitted by OBS Engineering, Inc., but the bid amount from OBS Engineering, Inc. exceeds the engineer’s estimate; and WHEREAS, after evaluation of the bids, staff recommends rejecting all bids and re-bidding to ensure receipt of responsible, responsive, and competitive bids.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Carlos hereby rejects all bids and seeks to re-bid the 1232 Cherry Street Building Demolition Project C2216.
* * * * *

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I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the12th day of June 2023, by the following vote:

AYES, COUNCILMEMBERS:___________________________________________ NOES, COUNCILMEMBERS:___________________________________________ ABSENT, COUNCILMEMBERS:___________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 12, 2023
ITEM TITLE: Deny Claim of Elizabeth Iniguez.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Elizabeth Iniguez as recommended by the Sedgwick representative.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

This item is coming before the Council to act on the claim submitted by Elizabeth Iniguez. Staff recommends that the City Council deny the claim based on Sedgwick’s guidance.

The Tort Claims Act. California Government Code Sections 900, seq., mandates that all claims for money or damages against a public entity must be presented in writing to the public entity prior to filing suit. Generally, claims concerning personal injury, wrongful death, damage to personal property, or damage to crops must be presented to the public within six (6) months of the accrual of the claim. All other claims, principally claims on contracts and damage to real property, are subject to a one-year statute of limitations for presentation of the tort claim. Once a tort claim is received by the public entity, the entity has forty-five (45) days to act on the claim. A claim can be settled or rejected. If no action is taken within 45 days, the claim is deemed rejected by operation of law on the last day.

Claims Processing in San Carlos. When the City receives a claim, the claim is immediately forwarded to claims examiners at Sedgwick for investigation. After Sedgwick investigates the claim, Sedgwick provides a recommendation to the City on the handling of the claim.

About Sedgwick. Sedgwick is a leading global provider of technology-enabled risk, benefits and integrated business solutions. In July 2019, Sedgwick acquired York Risk Services Group (“York”). York was originally hired through the Pooled Liability Assurance Network Joint Powers Authority (“PLAN JPA”), and Sedgwick will continue claims administration services to provide claims administration services to the City. The City Council approved the City’s participation in the PLAN JPA (previously known as the Association of Bay Area Government Pooled Liability Assurance Network or “ABAG PLAN”) on November 27, 2017 and designated the Administrative Services Director and Senior Management Analyst as primary and alternate PLAN JPA Board members.

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ANALYSIS:

Elizabeth Iniguez filed a claim against the City for property damage when parked at a public parking lot. The claimant alleged that on December 15, 2022, she parked her vehicle in the Wheeler Plaza parking lot adjacent to a bank. The window, on the passenger side front door of claimant’s rental car, was broken and damaged. The claimant is claiming $380 in damages.

This does not appear to be a case of liability against the City. The City does not owe a duty to provide security for the public parking lot. For that reason, Sedgwick has recommended formal rejection of this claim. Security cameras were recently installed at the Wheeler Plaza parking lot.

In the future, access to recorded video images may be requested through the San Carlos Police Bureau of the Sheriff’s Office.

The Council’s rejection of this claim does not prevent City staff nor the staff of Sedgwick from continuing to work with the claimant to resolve the dispute.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny the claim of Elizabeth Iniguez; or

2. Do not deny claim of Elizabeth Iniguez; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Elizabeth Iniguez Claim Form

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Frequently Asked Questions
Have a problem with the car?
In the U.S. and Canada, Hertz can provide Roadside Assistance 24 hours a day, 365 days a year. Just call 1-800-654-5060 from anywhere in the United States or Canada, and a representative will make arrangements for you to be on your way as quickly as possible. Outside of the U.S. and Canada, you must contact the renting location.

Damage to a Hertz car
With the exception of ordinary wear due to reasonable use, you must return the car in the same condition it is when you receive it. In general terms, that means that you are responsible for any and all loss or damage to the Hertz car resulting from any cause including but not limited to collision, rollover, theft, vandalism, seizure, fire, flood, hail or other acts of nature or God. As an Optional Product, Hertz makes available Loss Damage Waiver – which is not insurance – wherein, for a fee paid to Hertz, Hertz will not hold you responsible for loss or damage to the car assuming that the car is used in accordance with the terms of the Rental Agreement. For more information on Optional Loss Damage Waiver, click here.

What if there is an accident/incident?
Click Hertz Vehicle Incident Report for details. You are also encouraged to call toll free 1- 800-654-5060 for emergency roadside assistance.

Hertz Vehicle Incident Report

Warning: Don’t lose your rental privileges
The Rental Agreement provides that, except in emergency situations, only Authorized Operators may operate the rental vehicle. Allowing unauthorized operators to drive the rental vehicle is a breach of the Rental Agreement and may result in the loss of applicable insurance protections and a voiding of Loss Damage Waiver – if any – and the loss of your future rental privileges.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 12, 2023
ITEM TITLE: Deny Claim of Sandy Khalil.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Sandy Khalil as recommended by the Sedgwick representative.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

This item is coming before the Council to act on the claim submitted by Sandy Khalil. Staff recommends that the City Council deny the claim based on Sedgwick’s guidance.

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ANALYSIS:

Claimant, Sandy Khalil, filed a claim against the City for purchasing a $100 gift card with a zero balance. The claimant alleged that on March 22, 2023, she purchased a $100 gift card from Target in Redwood City. The $100 gift card was given as a gift, and the user indicated that the card did not have any money in it.

This does not appear to be a case of liability against the City as the City did not sell the gift card to the claimant. In addition, Target is located in Redwood City and is not within the City of San Carlos’ jurisdiction. For these reasons, Sedgwick has recommended formal rejection of this claim.

The Council’s rejection of this claim does not prevent City staff nor the staff of Sedgwick from continuing to work with the claimant to resolve the dispute.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny the claim of Sandy Khalil; or

2. Do not deny the claim of Sandy Khalil; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Sandy Khalili Claim Form

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City of San Carlos
City Claim Form for all
Persons or Property
MAIL TO: CITY OF SAN CARLOS
ATT
N: Crystal Mui, City Clerk
600 Elm Street
San Carlos, CA 94070-1309

1. CLAIMS FOR DEATH, INJURY TO PERSON, OR TO PERSONAL PROPERTY MUST BE FILED NOT LATER THAN SIX (6) MONTHS AFTER THE OCCURRENCE (GOV’T. CODE, SEC. 911.2).

2. CLAIMS FOR DAMAGES TO REAL PROPERTY MUST BE FILED NOT LATER THAN ONE YEAR AFTER THE OCCURRENCE (GOV’T. CODE SEC. 911.2).

3. ATTACH SEPARATE SHEETS, IF NECESSARY TO GIVE FULL DETAILS.

NAME OF CLAIMANT: _________________________________________________________________________________ CLAIMANT’S ADDRESS: __________ __________ _______
Street Apt. No City State Zip
EMAIL: __ __________________________________________________________________ HOME PHONE: _______ CELL PHONE: ____________________ WORK PHONE: ____________________ ADDRESS WHERE NOTICES SHOULD BE SENT IF DIFFERENT FROM ABOVE:
____________________________________________________________________________________________________ Name Street Apt. No City State Zip
EMAIL IF DIFFERENT FROM ABOVE: _____________________________________________________________________ AMOUNT OF CLAIM $________________________________________ (ATTACH COPIES OF BILLS/ESTIMATES) IF AMOUNT CLAIMED IS MORE THAN $10,000, INDICATE WHERE JURISDICTION RESTS:

LIMITED CIVIL CASE ________________________ UNLIMITED CIVIL CASE _________________________ DATE OF INCIDENT: _______________________________________________TIME: _____________________________ LOCATION OF INCIDENT: _____________________________________________________________________________

DESCRIBE THE INCIDENT OR ACCIDENT INCLUDING YOUR REASON FOR BELIEVING THAT THE CITY IS LIABLE

FOR YOUR DAMAGES

DESCRIBE ALL DAMAGES WHICH YOU BELIEVE YOU HAVE INCURRED AS A RESULT OF THE INCIDENT NAME(S) OF PUBLIC EMPLOYEE(S) CAUSING THE DAMAGES YOU ARE CLAIMING:

WERE POLICE AT SCENE? YES_______ NO_______
DATED: ____________________________ SIGNED: ___ _________________________________

ANY PERSON WHO, WITH INTENT TO DEFRAUD, PRESENTS ANY FALSE OR FRAUDULENT CLAIM MAY BE PUNISHED BY IMPRISONMENT OR FINE OR BOTH.

Theft of 100 dollars
I purchased a gift card for a birthday with an amount of $100 and when the person went to use it for the first time , it said that it had been already used and there was no money on it. I contacted multiple people and they will not solve it even though I had my original receipt they still don’t believe that someone else stole my money.

Target customer service and corporate will not help me, refer me to someone who can, and keep hanging up on me.

Target

3:0203/22/2023

100

Target 2485 El Camino Real Redwood City, CA 94063

Apt A

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 12, 2023
ITEM TITLE: Adopt a Resolution Appropriating $180,000 from the General Capital Fund (Fund 25) in Fiscal Year 2022-23 for the Removal of Landslide Preventative Measures; Authorizing the City Manager to Execute a Public Projects Agreement with Brannon Corporation in the amount of $163,811; and Authorizing an Expenditure of Contingency up to the Project Budget.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution appropriating $180,000 from the General Capital Fund (Fund 25) in Fiscal Year (“FY”) 2022-23 for the removal of landslide preventative measures, authorizing the City Manager to execute a public projects agreement with Brannon Corporation in the amount of $163,811, and authorizing an expenditure of contingency up to the project budget.

FISCAL IMPLICATIONS:

The Proposed FY 2023-25 Budget includes an appropriation of $180,000 in Fund 25 for this project in FY 2024. In order to begin the project sooner, this action would move the budget from FY 2024 into FY 2023. With the appropriation, there is sufficient budget to execute a public projects agreement with Brannon Corporation.

BACKGROUND:

Hillsides along roadways and within open space parks such as Big Canyon and Eaton Parks, failed, slipped, and eroded due to the heavy rains which caused the soil and debris to move down the slopes during the January and March 2023 storms.

Preventative measures were placed on the hillsides to temporarily protect and prevent further sliding of the soil during the remainder of the wet season. Preventative measures included tarpaulin, sandbags, staking, and flexible piping to collect and discharge runoff away from the hillside.

Staff retained Brannon Corporation in January and March 2023 to place these preventative measures through emergency authority due to the urgency, the number of sites, the work involved, and to allow maintenance staff to attend to other emergencies during the winter storms.

ANALYSIS:

With the conclusion of the winter season, these hillsides need to be uncovered to allow the soil to dry and survey the full extent of the damage. Staff will evaluate the full extent of the damage to

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determine the mitigation measures that are needed for permanent restoration of the hillside and prevent future sliding.

Due to the number of sites and the amount of work involved in removing these protective measures, staff recommends having the contractor that placed these protective measures also remove them.

Staff requested a proposal from Brannon Corporation for the removal of protective measures and requests an appropriation of $180,000 from Fund 25 in FY 2022-23.

Additionally, staff recommends authorizing the City Manager to execute a public projects agreement with Brannon Corporation in the amount of $163,811 and authorizing contingency up to the project budget.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution appropriating $180,000 from the General Capital Fund (Fund 25) in Fiscal Year 2022-23 for the removal of landslide preventative measures, authorizing the City Manager to execute a public projects agreement with Brannon Corporation in the amount of $168,311, and authorizing an expenditure of contingency up to the project budget; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROPRIATING $180,000 FROM THE GENERAL CAPITAL FUND (FUND 25) IN FISCAL YEAR 2022-23 FOR THE REMOVAL OF LANDSLIDE PREVENTATIVE MEASURES;

AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC PROJECTS AGREEMENT WITH BRANNON CORPORATION IN THE AMOUNT OF $163,811; AND AUTHORIZING AN EXPENDITURE OF CONTINGENCY UP TO THE PROJECT BUDGET.

WHEREAS, hillsides along roadways and within open space parks such as Big Canyon and Eaton Parks, failed, slipped, and eroded due to the heavy rains which caused the soil and debris to move down the slopes during the January and March 2023 storms; and WHEREAS, preventative measures were placed on the hillsides to temporarily protect and prevent further sliding of the soil during the remainder of the wet season; and WHEREAS, preventative measures included tarpaulin, sandbags, staking, and flexible piping to collect and discharge runoff away from the hillside; and WHEREAS, through emergency authority, staff retained Brannon Corporation in January and March 2023 to place these preventative measures due to the urgency, the number of sites, the work involved, and to allow maintenance staff to attend to other emergencies during the winter storms; and WHEREAS, with the conclusion of the winter season, these hillsides need to be uncovered to allow the soil to dry and assess the full extent of the damage; and WHEREAS, staff will evaluate the full extent of the damage from the storms to determine the mitigation measures that are needed for permanent restoration of the hillside and prevent future sliding; and
WHEREAS, due to the number of sites and the amount of work involved in removing these protective measures, staff recommends having the contractor that placed these protective measures also remove them; and
WHEREAS, staff requested a proposal from Brannon Corporation for the removal of protective measures and is requesting an appropriation of $180,000 from Fund 25 in Fiscal Year 2022-23; and
WHEREAS, staff recommends authorizing the City Manager to execute a Public Projects Agreement with Brannon Corporation in the amount of $163,811 and authorizing contingency up to the project budget.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby appropriates $180,000 from the General Capital Fund (Fund 25) in Fiscal Year 2022-23 for the removal of landslide preventative measures; authorizes the City Manager to execute a public projects agreement with Brannon Corporation in the amount of $168,311; and authorizes an expenditure of contingency up to the project budget.
* * * * *

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CITY COUNCIL

STAFF REPORT
MEETING DATE: June 12, 2023
ITEM TITLE: Consideration of Adopting a Resolution Adopting the Biennial Budget for Fiscal Years 2023-25, Including the Two-Year Operating and Capital Budgets, for the City of San Carlos.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution adopting the Biennial Budget for Fiscal Years (“FY”) 2023-25, including the Operating and Capital Budgets, for the City of San Carlos.

FISCAL IMPLICATIONS:

The attached proposed budget for the City of San Carlos represents appropriations in FY 2023- 24 totaling $124,905,200 and FY 2024-25 totaling $119,241,690. For additional financial overview information, please refer to the various summary sections in the attached proposed budget document.

BACKGROUND:

The City Council held a Budget Study Session on May 5, 2023 to review proposed changes in revenues, expenditures, transfers, programs, and capital projects for the FYs 2023-25 budget.

The attached proposed budget reflects the funding priorities that the City Council directed staff to incorporate into the proposed budget document.

ANALYSIS:

The proposed budget includes the following items that were added and/or modified at Council’s request following the Budget Study Session:
•Funding in the amount of $150,000 for tree replacement; •Funding in the amount of $180,000 for geotechnical engineering services to further assess the landslides in the City’s parks;
•Funding in the amount of $500,000 ($100,000 annually FY 23-24 through FY 27-28) for EV charging stations in City facilities;
•Funding in an additional amount of $30,000 for banners for the Industrial Arts area; •Removal of Harrington Park turf project in the amount of $150,000; and •Removal of $20,000 in FY 2024-25 for the Community Foundation grant program.

These recommendations have all been incorporated into this proposed budget. Additional detail on all of the funds can be found in the Budget Transmittal Letter, Basis of Budget Preparation, and Major Funds Summary documents in the proposed budget.

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ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the Biennial Budget for Fiscal Years 2023-25, including Operating and Capital Budgets for the City of San Carlos; or

2. Do not adopt a Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Proposed Fiscal Year 2023-25 Biennial Budget

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS ADOPTING THE BIENNIAL BUDGET FOR FISCAL YEARS 2023-25, INCLUDING THE TWO-YEAR OPERATING AND CAPITAL BUDGETS, FOR THE CITY OF SAN CARLOS.

WHEREAS, the City Council reviewed and discussed the proposed Biennial Budget for Fiscal Years (“FY”) 2023-25 during the Budget Study Session held on May 5, 2023 and provided general direction to staff on the recommendations contained therein during these public meetings; and
WHEREAS, the proposed budget was prepared in accordance with the financial policies of the City; and
WHEREAS, the proposed budget is a balanced expenditure plan that ensures the maintenance of adequate reserves during FYs 2023-25.

NOW, THEREFORE BE IT RESOLVED, by the San Carlos City Council as follows:

1. That the proposed budget for the City of San Carlos, totaling appropriations of $124,905,200 in FY 2023-24 and $119,241,690 in FY 2024-25, is adopted as the budget of the City for said fiscal years; and

2. That the City Clerk of the City of San Carlos is hereby directed to forward a copy of said approved and adopted budget to the County Controller of San Mateo County for filing pursuant to Government Code Section 53901.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 12th day of June 2023, by the following vote:

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MAYOR

ADAM RAK

MEMBERS OF THE CITY COUNCIL

JOHN DUGAN,

VICE MAYOR

RON COLLINS,

COUNCIL MEMBER

SARA MCDOWELL,

COUNCIL MEMBER

PRANITA

VENKATESH,

COUNCIL MEMBER

CITY TREASURER

INGE TIEGEL

CITY STAFF

JEFF MALTBIE
City Manager

REBECCA MENDENHALL
Administrative Services
Director

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CITY STAFF

AMY NEWBY
Parks & Recreation
Director

RAY IVERSON
Fire Chief

DAVE PUCCI
Deputy Fire Chief

CRYSTAL MUI
City Clerk/Director of Community
Relations

NIL BLACKBURN
Assistant City Manager

MARK MYERS
Acting Police Captain

GREG RUBENS
City Attorney

AL SAVAY
Community Development Director

STEVEN MACHIDA
Public Works Director

ACKNOWLEDGEMENTS

Cover Design:

Brian Cary

Cover Photographs:

Brian Cary

Budget Book Preparation:

City of San Carlos’ Finance & Administrative Services Division

Rebecca Mendenhall, Director of Administrative Services Tammy Mak, Senior Accountant
Marco Lao, Senior Accountant
Jenny Liu, Senior Management Analyst
Cheryl Hong, Management Analyst
Madeleine Payumo, Administrative Assistant

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TABLE OF CONTENTS

BUDGET OVERVIEW
Budget Message ..................................................................................................................... TBD Impact of State Budget, Legislation, and Regulations ............................................................ TBD Resolution Adopting the Biennial Budget for Fiscal Years (FYs) 2023-24 and 2024-25 ........ TBD Readers Guide to the Budget ................................................................................................. TBD Budget in Brief FY 2023-25 ........................................................................................... TBD Top Ten Budget Frequently Asked Questions (FAQs) .......................................................... TBD Basis of Budgeting and Accounting ........................................................................................ TBD Budget Process and Calendar ................................................................................................ TBD Major Funds Summary ............................................................................................................ TBD Gann Annual Appropriation Limit FY 2023-24 ........................................................................ TBD Gann Appropriation Limit Calculations .......................................................................... TBD Chart of Funds Subject to Appropriation ....................................................................... TBD Resolution Adopting Prop 4 Gann Appropriation (FY 2023-24) .................................... TBD Government Finance Officers Association (GFOA) Award ..................................................... TBD Community and Economic Profile ........................................................................................... TBD Top Ten Amazing Facts About the City of San Carlos ........................................................... TBD Community Satisfaction Survey Summary .............................................................................. TBD

FINANCIAL POLICIES
Financial Policies ..................................................................................................................... TBD Resolution Adopting Financial Policies ................................................................................... TBD Debt Management Policy ........................................................................................................ TBD Debt Disclosure Procedure Policy ........................................................................................... TBD Resolution Adopting Debt Management Policies .................................................................... TBD

STRATEGIC PLAN AND OBJECTIVES
Strategic Plan and Objectives ................................................................................................. TBD

FINANCIAL SUMMARIES
Fund Structure ....................................................................................................................... TBD Fund Balances: Operating Capital and Other Budgets........................................................... TBD Fund Balance Status (5-Year Trend) ...................................................................................... TBD Summary of Sources and Uses by Fund Type FY 2023-24 and FY 2024-25 ........................ TBD General Fund Summary .......................................................................................................... TBD General Fund Long Term Forecast......................................................................................... TBD General Fund Department Summaries ................................................................................... TBD General Fund Operating Budget Revenues and Expenditures FYs 2023-24 and 2024-25 ... TBD Allocation and Transfer Summary........................................................................................... TBD

REVENUES
Revenue Budget Assumptions ................................................................................................ TBD Citywide Operating Revenue by Major Category and Source ............................................... TBD Description of Major General Fund Revenue Sources .......................................................... TBD Revenues by Major Category and Source .............................................................................. TBD Revenue Detail by Fund ......................................................................................................... TBD Citywide Revenue Adopted Biennial Budget for Fiscal Years (FYs) 2023-24 and 2024-25... TBD General Fund Operating Revenues Multi-Year Comparison .................................................. TBD General Fund Operating Revenues by Type FYs 2023-24 and 2024-25 ............................... TBD Property Tax Dollar Breakdown .............................................................................................. TBD Property Tax Dollar Allocation – San Mateo County .............................................................. TBD Sales Tax by Major Industry Group ........................................................................................ TBD Sales Tax by Revenues per Capita ........................................................................................ TBD Sales Tax Revenue by Geographic Area ............................................................................... TBD

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TABLE OF CONTENTS

EXPENDITURES
Expenditures by Major Category and Source ......................................................................... TBD Citywide Expenditure Adopted Biennial Budget Fiscal Years (FYs) 2023-24 and 2024-25 ... TBD General Fund Operating Expenditures FYs 2023-24 and 2024-25 ........................................ TBD Operating Expenditures Multi-Year Comparison .................................................................... TBD

ORGANIZATION CHARTS
Citywide Organization Chart ................................................................................................... TBD Boards, Commissions, Committees, and Regional Joint Power Authorities (JPA) ................ TBD Major Municipal Service Lines and Operating Programs ....................................................... TBD

GENERAL GOVERNMENT
City Council ............................................................................................................................. TBD City Manager ........................................................................................................................... TBD City Attorney ............................................................................................................................ TBD City Clerk ................................................................................................................................. TBD City Treasurer ......................................................................................................................... TBD Administrative Services Department ....................................................................................... TBD Administration / Risk Management ................................................................................ TBD Leadership & Management .............................................................................. TBD General Liability/Risk Management .................................................................. TBD Workers’ Compensation Fund .......................................................................... TBD Post-Employment Benefits Fund ...................................................................... TBD General Fund – Non-Departmental .................................................................. TBD Equipment Replacement Fund ......................................................................... TBD Technology Replacement Fund ....................................................................... TBD San Carlos Library Bond Service Fund ............................................................ TBD Financial Services ......................................................................................................... TBD Human Resources ......................................................................................................... TBD Information Technology ................................................................................................. TBD

COMMUNITY DEVELOPMENT DEPARTMENT
Community Development Department .................................................................................... TBD Leadership and Management ........................................................................................ TBD Development and Permitting Services ............................................................ TBD Code Enforcement ............................................................................................ TBD Key Development Project Facilitation .............................................................. TBD Long Range Planning ....................................................................................... TBD Economic Development ................................................................................................. TBD Housing Compliance and Assistance ............................................................................ TBD

PARKS AND RECREATION DEPARTMENT
Parks and Recreation Department.......................................................................................... TBD Leadership and Management ........................................................................................ TBD Athletics ......................................................................................................................... TBD Adult Services ................................................................................................................ TBD Youth Services .............................................................................................................. TBD Personal and Family Development ............................................................................... TBD Special Community Events ............................................................................................ TBD

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TABLE OF CONTENTS

PUBLIC SAFETY
Police Bureau .......................................................................................................................... TBD Fire Department ...................................................................................................................... TBD

PUBLIC WORKS DEPARTMENT
Public Works Department ....................................................................................................... TBD Administration and Engineering..................................................................................... TBD Facilities and Maintenance ............................................................................................ TBD San Carlos Library Tenant Fund ................................................................................... TBD Fleet Maintenance ......................................................................................................... TBD Parks Maintenance ........................................................................................................ TBD Wastewater .................................................................................................................... TBD Stormwater .................................................................................................................... TBD Street Maintenance ....................................................................................................... TBD Measure A Traffic Congestion Fund ............................................................................. TBD Measure W Traffic Congestion Fund ............................................................................ TBD Gas Tax ......................................................................................................................... TBD Parking In Lieu ............................................................................................................... TBD Park In Lieu.................................................................................................................... TBD

PERSONNEL SUMMARY
Summary of Employee Compensation and Benefits .............................................................. TBD Summary of Full-Time Positions ............................................................................................. TBD Summary of Elected and Appointed Officials ................................................................ TBD Summary by Department ........................................................................................................ TBD

CAPITAL IMPROVEMENT PROGRAM
Capital Improvement Program Summary ............................................................................... TBD Capital Improvement Program Budget ................................................................................... TBD Capital Improvement Expenditures FYs 2023-28.......................................................... TBD Capital Improvement Program Chart ...................................................................................... TBD Capital Improvement Program Fund Summary ...................................................................... TBD Fund 06 Wastewater (Sewer) Fund ........................................................................................ TBD Fund 16 Gas Tax Fund ........................................................................................................... TBD Fund 25 General Fund Capital Projects Fund ........................................................................ TBD Fund 26 Child Care Fund ........................................................................................................ TBD Fund 27 Park in-Lieu Fund ..................................................................................................... TBD Fund 28 Parking in-Lieu Fund ................................................................................................. TBD Fund 29 Housing in-Lieu Fund ................................................................................................ TBD Fund 31 Low and Moderate Income Housing Fund ................................................................ TBD Fund 95 Library Improvement Fund........................................................................................ TBD Unfunded Projects List ............................................................................................................ TBD

DEBT SERVICE
Legal Debt Margin ................................................................................................................... TBD Compliance with Debt Policy .................................................................................................. TBD Debt Service Obligations ........................................................................................................ TBD

GLOSSARY
Glossary .................................................................................................................................. TBD Acronyms ................................................................................................................................ TBD

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June 12, 2023

Honorable Mayor and City Councilmembers
City of San Carlos
600 Elm Street
San Carlos, CA 94070

Honorable Mayor and Members of Council:

On behalf of the entire San Carlos staff, I am pleased to present the City of San Carlos Biennial Budget for F iscal Years 2023-24 and 2024-25, including the Operating Budget along with the Five-Year Capital Improvement Program Budget. The recommended budget reflects your priorities, the adopted strategic plan, and is consistent with the critical needs identified by our residents over this past year.

The purpose of the budget process is to identify the fiscally sustainable services that the City may reasonably expect to provide within the context of the City’s available financial resources. San Carlos has never been a “tax rich” city, in that only about 10% of property taxes paid by its residents goes toward funding the City. In fact, 100% of the property tax revenue the City receives only pays for about 80% of the cost to provide police and fire/emergency medical services alone.

San Carlos also doesn’t have any special revenue taxes, such as a local ¼ or ½ cent sales tax or a utility user tax. This presents many challenges to providing high quality services and improving infrastructure and facilities.

Those of us in City Hall are especially proud of how we manage our limited financial resources each year as we work to find new ways to do more than many cities, with less. Being efficient and effective with our precious tax revenue is a topic planned for and discussed by staff and the Council on a daily basis and features prominently in every decision made by our community representatives. Each year, San Carlos receives multiple awards and is recognized for innovative programs and projects and outstanding financial management and long-range planning.

The Biennial Budget for Fiscal Years (“FY”) 2023-25, including Operating and Capital Budgets, is the result of an inclusive and interactive staff budget development process, input received from the FY 2022-23 projections, the strategic planning process , the City Council Budget Study Session held on May 5, 2023, as well as Council direction given throughout the year. In particular, the proposed Five-Year Capital Improvement Program Budget includes funding in the amount of $188 million to fund strategic goals and to invest in our aging infrastructure. This is the largest capital budget we have ever proposed and is an increase of almost $100 million over the last Five-Year Capital Improvement Program that was included in the FY 2021-23 Adopted Budget.

HISTORICAL LOOK AT THE BUDGET
Even as the City, state, and nation experienced the Great Recession of 2009 and the COVID-19 crisis of 2020 , the City has been able to maintain positive fund balances due to cost cutting measures, conservative budgeting, and fiscal controls. This could not have been done without a

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tremendous partnership between executive management staff and the City Council. Maximizing our revenues while keeping annual operating costs under control has given us the ability to weather financial storms.

From 2008 to 2023, the City’s operating revenue has grown on average 5.7% per year. At the same time, the City’s operating expenses have grown, on average, by 4.4% per year. This has generated an annual average operating surplus (before any one-time expenses) of $5 million per year. This gives us the opportunity to take these savings and invest in our capital spending as well as pay down long-term pension obligations.

Our largest revenue source comes from property tax. As shown in the table below, the tax assessment rolls have grown 128%, or $7.4 billion, over the last fifteen years. This creates a stable revenue stream as values are locked in under Proposition 13 and grow at a rate of up to 2% per year.
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000

GENERAL FUND REVENUES AND EXPENDITURES
Revenues Expenditures

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Our second largest revenue source is sales tax and it has grown 85% over the past fifteen years. The City’s sales tax base is diverse. As such, we don’t rely on just one category. For example, if our sales tax base relied heavily on autos and transportation (car dealerships), we would have seen our revenue drop with each economic downturn. Our building and construction category continues to grow as residential and commercial development continues to grow.

In addition to the growth in revenues, the City used $12 million of prior years’ savings/surpluses to pay down our unfunded pension liabilities. This has resulted in annual and long-term savings. $0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000

NET TAXABLE ASSESSED VALUE
Secured Unsecured Net Total AV

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Had the City not made these payments, the trajectory of pension costs would have continued to rise.

ECONOMIC UPDATE
In April 2023, it was reported that the real gross domestic product (GDP) increased at an annual rate of 1.1 % in the first quarter of 2023 , according to the “advance” estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2020, real GDP increased at 2.6%.

The increase in the first quarter GDP reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investments that were partly offset by decreases in priv ate inventory investment and residential fixed investment. The increase in consumer spending reflected increases in both goods and $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

NET PENSION LIABILITY
Safety Miscellaneous Total Net Pension Liability

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services. Within goods, the leading contributor was motor vehicles and parts. Within services, the increase was led by health care and food services and accommodation.

According to our third-party consultant, HdL Companies, California saw a 4.7% increase in sales and use tax revenue in the fourth quarter of 2022, compared to the same period in 2021. High gas prices continued to burden commuters and seasonal travelers throughout the state, lifting fuel-service stations’ sales tax receipts 10% higher than a year ago. Gas prices of more than $5 per gallon did not detract consumers from spending at local restaurants and hotels. The building and construction sector was up 5.4%. Contractors accounted for most of the growth in the sector, which continues to experience steady housing demand and pent-up construction projects delayed by supply chain interruptions. With rising interest rates tempering sales activity, property owners maintained home improvement spending. These factors have all been incorporated into our proposed budget.

For more information about the City of San Carlos, please refer to the “Community & Economic Profile” document in the Budget Overview section of the budget document.

IMPACT OF STATE BUDGET, LEGISLATION & REGULATIONS
State Budget Overview and Highlights
For the past few years, Gov ernor Gavin Newsom had the luxury of calling his revised state budgets “unprecedented” and “historic.” On May 12, 2023 , he struck a much different tone, repeatedly emphasizing the value of prudence and restraint as he unveiled a revised, $306.5 billion state budget proposal.

The state started with a budget deficit for fiscal year 2023 -24, which grew to $31.5 billion since January. The Governor used a combination of funding deferrals, reversions of unused dollars, and shifts from the General Fund to balance the budget. The budget proposal also draws heavily on federal funding and a potential 2024 climate bond to meet environmental goals.

In a win for cities, the May budget proposal does reflect calls to avoid redirecting city funds to address the state's budget shortfalls. It also does not include deep cuts to existing appropriations to cities. The proposed budget even includes some modest, but important increases f or local governments, including more money for behavioral health care, adaptive reuse, fentanyl overdose aids, and flood control in the areas most impacted from the winter storms.

Specific areas of the budget are noted below:

Flooding

The probability of funding for the climate change priorities outlined in the Governor’s May Budget Revision are highly similar to the cut-and-delay plan proposed at the start of the year. However, the probability of the funding being available has become much less certain. The updated budget plan now relies on the potential drawdown of federal funding and the passage of a climate bond in 2024. Together, these assume tens of billions of dollars for environmental priorities. Despite the fiscal constraints, the Governor did provide substantial funding to the significant flood events in the Central Valley, putting up nearly $500 million in new funding for flood control, levee restoration, and small business relief. How much of this funding will be used to address Bay Area cities like San Carlos is uncertain.

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For the City of San Carlos, the December 31, 2022 storm and subsequent storms and flooding in January and February of 2023, had significant operational and financial impacts on residents, businesses, and the City. As of May 2023, the City has submitted $4.6 million in reimbursement requests through the FEMA PA Grant Program for damages sustained by the City. It is anticipated that there will be additional reimbursement requests submitted. What percentage of that request will be reimbursed has yet to be determined. Unfortunately, per the FEMA PA Grant Pr ogram Briefing on March 8, 2023, the City learned that landslides will not be considered for reimbursement. Landslide repairs on City -owned open spaces are estimated to cost $5M. The City has sufficient reserves to cover these costs and $5M is included in the capital budget to address four projects throughout the city.

Electrification

Consistent with Governor Newsom’s 2020 Executive Order on Electric Vehicles, climate change mitigation, adaptation, and resilience is one of the City’s seven adopted goals in its adopted 2023 strategic plan. The City’s Climate Mitigation and Adaptation Plan establishes the goal to reduce greenhouse gas emissions 40% by 2030 and 80% by 2050. The electrification of buildings and transportation are key components to achieving this goal. In an effort to promote electrification in the City as prioritized in the City’s 2021 Climate Mitigation and Adaptation Plan, the operating budget includes $100,000 per year to expand the availability of electric vehicle charging stations in multifamily buildings. The incentive will be offered to residents through a matching program administered by Peninsula Clean Energy. Furthermore, $50,000 has been allocated in the capital budget to conduct a fee study to develop an in lieu fee to offset green house gas emissions associated with projects that seek exemption from the City’s all electric reach codes and solar requirements. The City’s goal is to use this funding to implement electrification projects on public property.

Housing

The City is on track to meet its Regional Housing Needs Allocation (RHNA) of 2,735 units as required by the State. One of the City’s seven strategic goals is to “actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable housing supply by facilitating development of housing for all income levels. One of the ways the City intends to achieve this goal is through site acquisition. Because the City anticipates collecting significant revenue through its Commercial Linkage Fee over the coming years, this funding can be utilized to acquire property and construct affordable housing or convert existing market rate housing to affordable housing. $42.5 million in project funding for FY 2023-28 has been programmed for this purpose. Furthermore, plans are currently underway to demolish the existing City-owned building located at 1232 Cherry Street and make room for the City’s second affordable housing project. $250,000 has been appropriated in the capital improvement budget to begin demolition in late 2023.

Mental Health

The Governor is working with legislative leadership on a 2024 ballot initiative that would modernize the Mental Health Services Act (MHSA) to focus on housing and residential services for people experiencing homelessness and mental health and substance use disorders. In April 2023, a new, innovative navigation center for people experiencing homelessness in San Mateo County opened in Redwood City.

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The space provides 240 temporary living spaces for unsheltered people, along with on- site support services such as trauma counseling, substance use treatment, and even health and dental care, a first for a San Mateo County non-congregate shelter. The total cost for the project is estimated to be $57 million, with annual operating costs at just over $5 million. The bulk of the funding -- just over $55 million -- came from a California Homekey grant, a statewide program launched in 2020 to provide local governments with money to create temporary or permanen t housing for people experiencing homelessness.

While challenges related to homelessness in San Carlos are not as complex as neighboring cities, the City continues to invest in proactive community measures such as community servicing officers, the Psychiatric Emergency Response Team, a mental health crisis co- response team, and Crisis Assistance Response and Evaluation Services (CARES). The City of San Carlos contracts for services from the San Mateo Sheriff’s Office, which increased by 40% from FY2022- 23 due primarily to increases in training costs, the cost of supplies and technology, and staffing.

Streets

In April 2017, the Governor signed into law the Road Repair and Accountability Act of 2017 (Senate Bill “SB” 1). SB 1 provides $5.2 billion annually statewide and is a significant investment in California’s transportation infrastructure. The law provides approximately $500,000 for the City’s local streets and roads. This revenue has been incorporated into the five- year capital project proposal. Howev er, due to the COVID -19 pandemic causing a reduction in fuel consumption and vehicle sales, Local Streets and Roads (LSR) revenues allocated to cities and counties by the state are lower than originally expected, but are largely being offset by tax rate increases stipulated in SB 1. LSR revenues are projected at $1.6 million in FY 2022-23 and $1.69 million on FY 2024-25. While sizable, these revenues are barely enough to address the proposed investment in the City’s streets.

In order to raise the City’s streets’ pavement condition index from 57 to 62 in the next five years, staff recommended an investment of $39 million in the City’s street resurfacing project over the next five years. Project funding includes funding from the General Capital Fund in the amount of $8.55 million and the Gas Tax Fund 16.

Vehicle In-Lieu

In FY 2004-05, Senate Bill 1096 was enacted, which directed Motor Vehicle License Fees (“VLF”) collected by the Department of Motor Vehicles from the cities and counties to the State. To make the cities and counties whole, the legislation specified that cities would be “backfilled” this revenue by the County as “property tax in- lieu” payment, rather than paid directly by the State. In Ap ril 2021, San Mateo County notified the City that it was experiencing a countywide shortfall in FY 2020-21 in the amount of $96 million due to a reduction in the number of non- basic aid school districts in the County, which in turn, resulted in less available property tax revenues to fund the FY 2020-21 VLF. The County worked with the State on recovery and it was paid in FY 2022- 23.

However, continued underfunding tax revenue from the State continues to create uncertainty in budgeting and planning and poses a long-term threat to the City. Fortunately, however, the City’s other revenue sources and reserves prove more stable and reliable.

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RECOMMENDED CHANGES TO THE FISCAL YEAR 2023-25 OPERATING BUDGET

General Fund

There are some new programs and/or funding requests that have been incorporated into the recommended budget.

A summary of these recommendations is shown below.

General Fund Program Enhancement FY 2023-24 FY 2024-25
Core
Values
Strategic
Objectives
City Council
Increase Grant Funding for Community Foundation 20,000$ -$ Add funding for Eucalyptus Avenue Holiday Event 40,000 41,200 City Government
Reclass Communications Coordinator to
Management Analyst 43,850 45,550
Convert Contract City Attorney Position to Full Time
in-house position 86,800 94,800
Add Legal Secretary and Operating budget to
support City Attorney 211,850 219,250
Reclass Admin Assistant to Deputy City Clerk 8,500 8,800 Add Full Time Accounting Technician I/II position 144,500 149,700 Community Development
Reclass Senior Building Inspector to Assistant
Building Official 29,900 30,600
Parks and Recreation
Increase Athletics Part-time Salaries offset by
additional revenue from classes (57,000) (58,700) Add Funding for Special Events 37,500 42,725
Add Funding for Employee Recognition Dinner 30,000 30,900 Public Safety
Increase Police Services Contract offset by Trust
Fund savings (prior year savings) 523,000 1,011,170 Public Works
Add Funding for Tree Maintenance 150,000 154,500
Add Funding for Crossing Guards 20,000 25,000
Reclass Mechanic to Senior Mechanic 3,100 2,800 Reclass Sr Engineer to Principal Engineer - - Total Operating Adjustments 1,292,000$ 1,798,295$
Pay down of CalPERS Unfunded Liability 3,000,000
Total One-time Adjustments 3,000,000$ -$
Funding Amount Strategic Focus Area

Staff-recommended operating additions to the base budget total $ 1,292,000 in FY 2023-24 and $1,798,295 in FY 2024-25.

Staff also recommends a one-time payment from the Unfunded Liabilities Assigned Fund balance in the amount of $3,000,000. As done in prior years, a prepayment of the unfunded liability will result in future gross savings of $4.7 million or $6.2 million depending on the method of prepayment chosen.

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FISCAL YEAR 2022-23 FINANCIAL PERFORMANCE

Before discussing recommendations for the FY 2023- 25 budget, it is helpful to review the projections for the current year. The City’s financial performance in FY 2022-23 is projected to be better than budgeted. The table below compares the Revised Budget and Projected Revenues and Expenditures for the General Fund – the City’s primary operating fund.

FY 2023
REV ISED*
FY 2023
PROJECT ED Variance Variance %
Operating Revenue
Business Registration 1. 06$ 1.22$ 0.16$ 14.5% Charges for Current Services 4.82 7.82 3.00 62.3% Fines & Forfeitures 0.31 0.31 - 0.0% From Other Agencies 0.04 0.17 0.11 306.1% Licenses & Permits 2.49 2.56 0.07 2.7% Other Revenues 0.91 0.95 0.05 4.8% Other Tax (Franchise Taxes) 1.95 2.04 0.09 4.4% Property Tax 16.52 17.05 0.53 3.2% Sales Tax 12.04 12.56 0.53 4.3% Transient Occupancy Tax 3.80 3.40 (0.40) -10.5% Other Uses of Money & Property 3.26 3.48 0.22 6.7% PAMF Target Revenue 0.85 0.85 - 0.0% Vehicle in Lieu 3.56 5.75 2.19 61.4% Total Revenues 51.61$ 58.13$ 6.52$ 12.6% General Fund E xpenses:

Salaries and Benefits 22.42 20.60 (1.81) -8.1% Operating Expense 32.61 33.57 0.96 2.9% Capital Outlay 0.18 0.18 - 0.0% Total Operating E xpenses 55.20$ 54.35$ (0.86)$ -1.6% Net Allocations and Transfers In 4.27 4.27 Net Allocations and Transfers Out (0.83) (0.83) Net Change in Operating Funds (0.15) 7.23 GENERAL FUND (In Millions)

*Revised Budget includes adjustments to revenues and appropriations made by the City Council during the fiscal year.

FY 2022-23 revenues are projected to be higher by approximately $6.52 million. Most of this variance is related to one -time revenues and reimbursements. Below are some of the larger variance explanations:

Business Registration. The revenue projected of $1.22 million, or $0.16 million over budget, can be attributed to the outsourcing of the business registration function to a third party. Business registration revenues are recorded as cash collected and the third party has more resources to ensure compliance and therefore has collected more than was previously expected.

Charges for Services. The revenue projected of $7.82 million is $3.00 million over budget, and is a direct result of the receipt of plan check fees from larger developments:
642 Quarry Road, 1021 Howard Avenue, 405 Industrial Road, 888 Bransten Road, and 987 Commercial Street. These large plan check fees are not budgeted as the timing of receipt of the funds can vary depending on the timing of the projects. It is highly unusual to receive this many large development fees in one fiscal year.

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From Other Agencies. The revenue projected of $0.17 million, or $0.11 million over budget, includes one- time funding r eceived from the Federal Emergency Management Agency (“FEMA”) grant to recover COVID losses for the period prior to March 2021 in the amount of $124,913. In June 2020, the City of San Carlos started the application process for eligible expenses such as labor, equipment, materials, and/or contract work that was related to the response of the disaster. After working with FEMA for more than two years, FEMA approved the City’s grant application.

Property Tax. The projected revenue of $17.05 million, represents an increase of $0.53 million over budget. This revenue is estimated based on information from the County and third party consultants. The primary reason for this increase is due to increases in the property tax assessment rolls to account for changes in property ownership and tenant improvements. The assessment rolls increased $1.74 billion, or 13%, over the prior fiscal year.

Sales Tax . The revenue projected of $12.56 million represents an increase of $0.53 million over budget. This revenue is based on information from third party consultants.

Growth has continued mostly in the categories of business and industry, fuel and service stations, general consumer goods , and restaurants and hotels. Restaurants have experienced a strong uptick with increased prices and a continued desire to dine out.

Transient Occupancy Tax. The revenue projected of $3.4 million represents a decrease of $0.40 million from budget. Although the hotel industry began to rally in FY 2021-22 following the COVID -19 pandemic, the industry has not yet returned to historical occupancy as business travel has not yet fully returned to pre-pandemic rates.

Other Uses of Money and Property. This includes rentals and investment income. The revenue projected of $3.48 million represents an increase of $0.22 million over budget.

Although interest rates have been trending less than 3%, the increase is generated from higher investment balances due to the timing of the payment of expenditures. The General Fund investment balance as of December 31, 2022 was $16.3 million, as compared to $1.7 million from the year before.

Vehicle In-Lieu. The revenue projected of $5.75 million represents an increase of $2.19 million from the revised budget. This estimate is based on the information from the County Controller’s Office. The revenue received in this fiscal year includes a one-time payment of $2.2 million repayment of the county-wide shortfall from two years ago (FY 2020- 21) and the increase in property assessed values . In FY 2004- 05, Senate Bill 1096 was enacted, which redirected Motor Vehicle License Fees (“VLF”) collected by the Department of Motor Vehicles from the cities and counties to the state. To make the cities and counties whole, the legislation specified cities would be “backfilled” this revenue by the County as a “property tax in-lieu” payment rather than paid directly by the state. If the “backfilled” amount exceeds a certain limit, there will not be enough money to fully cover the amount owed. In April 2021, San Mateo County notified the City that it was experiencing a county-wide shortfall in FY 2020-21 in the amount of $96 million due to a reduction in the number of non -basic aid school districts in the County, which in turn resulted in less available property tax revenues to fund the FY 2020-21 VLF. The County worked with the State on recovery and it was paid in this fiscal year, 2022-23.

Expenditures are projected to be $0.86 million less than the revised budget primarily due to salary savings from vacant positions during the year. The FY 2022-23 budget added 14 new positions

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and recruitment for each position takes three to six months to fill. In addition, 9 of those recruitments failed the first time and even multiple times, so positions were held open much longer than anticipated. These salary savings were offset by approximately $1 million in unanticipated expenses related to the significant storms and flooding events in December 2022 and January 2023.

PROPOSED BIENNIAL BUDGET FOR FISCAL YEARS 2023-25

The Biennial Budget includes 19 different funds. Rather than discuss the status of each of these funds in this report , the budget summary is grouped into five components: General Fund; Wastewater (Sewer); Other Revenue Funds; All Other Operating Funds (including debt servi ce and internal service funds); and Capital Project Funds. The following table identifies the total proposed expenditures by component, in which the Citywide appropriations for FY 2023-24 total $124.91 million and for FY 2024-25 total $119.24 million.

CITYWIDE BUDGET – ALL FUNDS (in millions)
Expenditures
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
General Fund 55.20$ 54.35$ 61.98$ 61.65$ Wastewater (Sewer) Fund 18.60 17.97 21.95 21.03 Other Revenue Funds 1.94 1.93 0.61 0.30 Total Operating Funds 75.74 74.25 84.53 82.98 Other Program Funds 3.22 2.99 3.36 4.60 Capital Improvement Funds 56.91 56.47 37.02 31.65 Total Citywide Budget 135.87$ 133.71$ 124.91$ 119.24$

GENERAL FUND BUDGET

The General Fund is the primary operating fund of the City and is used to account for most day-to- day activities. Revenue sources include, but are not limited to, property tax, sales tax, transient occupancy tax, current fees for services, and business registration.

The tables to follow compare the current fiscal year budget and projections to the FY 2022- 23 proposed budgets. The assumptions and recommendations are included in each of the sections following the table.

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Recommended Budget Revenue

2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Business Registration 1.06$ 1.22$ 1.26$ 1.32$ Charges For Current Services 4.82 7.82 5.12 4.99 Fines & Forfeitures 0.31 0.31 0.32 0.33 From Other Agencies 0.04 0.17 0.01 0.01 Licenses & Permits 2.49 2.56 2.59 2.67 Other Revenue 0.91 0.95 0.93 0.91 Other Taxes 1.95 2.04 2.10 2.12 Property Taxes 16.52 17.05 17.98 19.24 Sales Tax 12.04 12.56 13.06 13.43 Transient Occupancy Tax 3.80 3.40 4.20 4.77 Use Of Money & Property 3.26 3.48 2.97 3.03 PAMF Project 0.85 0.85 0.87 0.89 Vehicle In Lieu 3.56 5.74 3.91 4.16 Total Revenue 51.60$ 58.13$ 55.34$ 57.87$ GENERAL FUND REVENUES (in millions)

Fiscal Year 2023-24 Revenue Assumptions

Total General Fund revenue is budgeted at $55.34 million, an increase of 7.2% from the FY 2022- 23 revised budget. The majority of the increases are described below.

• Business Registration. The revenue amount is budgeted to increase by 19.0%, or $0.20 million, from the FY 2022-23 revised budget. Although this is a large increase over the FY 2022-23 revised budget, it is only an increase of 4.0% over the FY 2022-23 projected amount, which is in line with the increase specified in the City’s Municipal Code.

• Charges for Current Services. The increase of $0.31 million, or 6.4%, is primarily due to expansion of Parks and Recreation programming and special event revenues and the timing of plan check services related to development. The FY 2023- 24 budget assumes some fees from development projects and multi -residential projects expected to be submitted for review. These fees are typically pass through revenues and have a corresponding expense for professional consulting and technical experience necessary to facilitate these projects.

• Fines and Forfeitures. Budget at $0.32 million, which is approximately the same level as the FY 2022-23 revised budget.

• From Other Agencies. Budget at $0.01 million, which is approximately the same level as the FY 2022-23 revised budget. This revenue is from grant reimbursements which can fluctuate from year to year depending on availability.

• Licenses and Permits. The increase of $0.10 million, or 4.0%, is primarily based on the projected timing of development project permits for building, electrical, plumbing, and mechanical permits in the past year. The timing of when developers pull their permits can vary and as such this category can fluctuate greatly from year to year. The license and permit revenue for large projects typically lags several months or even years from the timing of plan check, as it takes longer to review these projects.

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• Other Revenues. These mainly include cost reimbursements from agencies such as the City and County Association of Governments and the Peninsula Traffic Congestion Relief Alliance (Commute.org). It also includes donations, sponsorships, and other miscellaneous receipts. Revenue is budgeted to increase by $0.02 million, or 2.6%, primarily due to inflationary costs.

• Other Tax (franchise tax). The revenue is budgeted to increase to $2.1 million, or 7.8%, from the FY 2022-23 revised budget. Although this is a large increase over the FY 2022- 23 revised budget, it is only an increase of 3.2% over the projected revenues and is in line with projected inflationary increases.

• Property Tax. The budget of $17.98 million, or 8.8% is based on the general assessment rolls and information provided by our third- party consultants. The primary reason is increases in the property tax assessmen t rolls to account for changes in property ownership and tenant improvements. The assessment rolls increased $1.74 billion, or 13%, over the prior fiscal year.

• Sales Tax. The increase of $1.02 million, or 8.5%, is based on information from our third- party consultants. Although the increase is 8.5% over the FY 2022-23 revised budget, the proposed budget is only 4% over the projected FY 2022- 23 revenues. Steady building materials, plumbing- electrical and contractor sales activity , purchases of non -auto equipment, and continued patronage of restaurants is driving these increases.

• Transient Occupancy Tax. The increase of $0.4 million, or 10.5%, like sales tax, is based on information from our third-party consultants. Although the hotel industry began to rally in FY 2021 -22 following the COVID -19 pandemic, the industry has not yet returned to historical occupancy as business travel has not yet fully returned to pre- pandemic rates.

The proposed budget includes the addition of one hotel that has been going through renovations for several years.

• Other Uses of Money and Property. This includes rentals and investment income. The decrease of $0.29 million is due to the assumption of the timing of cash disbursements and the allocations of the total investment portfolio amongst all of the funds. At the end of each quarter, investment income is allocated based on the percentage of cash in each fund. The amount of allocation can change from year to year based on the total cash balance held in each fund.

• PAMF Target Revenue. The increase is based on the terms of the Development Agreement.

• Vehicle in -Lieu. The revenue increase of $0.35 million, or 9.9%, is based on the information from the County Controller’s Office and our third -party consultants. In FY 2004-05, Senate Bill 1096 was enacted which redirected Motor Vehicle License Fees (“VLF”) collected by the Department of Motor Vehicles from the cities and counties to the state. To make the cities and counties whole, the legislation specified cities would be “backfilled” this revenue by the County as a “property tax in lieu” payment rather than paid directly by the state. The County has told us that if the “backfilled” amount exceeds a certain limit, there will not be enough money to fully cover the amount owed. As a result, San Mateo County has experienced a county-wide shortfalls in prior years. The FY 2022- 23 projection includes a one-time repayment of this revenue in the amount of $2.2 million from FY 2020-21.

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Fiscal Year 2024-25 Revenue Assumptions

Total General Fund revenue is budgeted at $57.87 million, an increase of 4.6% from the FY 2023- 24 proposed budget.

• Business Registration. The revenue is budgeted to increase in year two of the budget by 4.0%, or $0.05 million, from the FY 2023 -24 proposed budget. The increase is based on the annual percentage increase specified in the City’s Municipal Code.

• Charges for Current Services. Revenues are projected to decrease by $0.13 million, or

2.5%, due to the timing of large development plan check activities. As noted above, the timing of large-scale development projects can cause this category to fluctuate from year to year. There may be more projects on the horizon that would increase this revenue stream which will be adjusted during the mid-cycle budget review.

• Fines and Forfeitures. The revenue is proposed at $0.33 million, which is approximately the same level as the proposed FY 2023-24 budget.

• From Other Agencies. Revenues are projected to be at the same levels as the proposed FY 2023-24 budget.

• Licenses & Permits. Revenue is projected to increase by $0.08 million, or 3.0%. Similar to the current charges for services, this revenue stream is largely impacted by the timing of large-scale development projects.

• Other Revenue. Revenue is projected to decrease by $0.02 million, or 1.8%, mostly due to estimates in cost recovery assumptions.

• Other Tax (franchise tax). The revenue is primarily based on trend data from the past fiscal years.

• Property Tax. The revenue is projected to increase $1.26 million, or 7.0%, from the FY 2023-24 projected budget. This continues to assume the growt h in the assessment rolls associated with the large- scale development projects on the east side of the City. Staff continue to work closely with our consultants to project and monitor this revenue.

• Sales Tax. The revenue is projected to increase by $0.37 million, or 2.8%, as a result of assumed inflationary increases. This revenue is reviewed quarterly with our third- party consultants and is adjusted based on current and projected activity.

• Transient Occupancy Tax. The revenue is expected to grow by $0.57 million, or 13.5%, as a result of the anticipated rise in occupancy rates following the return and demand for business and residential travel.

• Other Uses of Money and Property. The revenue increase of $0.06 million, or 2.0%, includes lease revenue from three digital billboards.

• The PAMF Target Revenue. The budget is based on the terms of the Development Agreement.

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• Vehicle in-Lieu. Revenue is budgeted to increase by $0.25 million, or 6.3%, based on information received from the County Controller’s Office and our third-party consultants.

Recommended Budget Expenditure Assumptions

Operating Budget Expenditures
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Salaries & Benefits 18.21$ 16.38$ 20.21$ 20.97$ Legacy Obligations 4.20 4.21 3.47 3.67 Operating Expenditures 32.61 33.57 35.11 36.83 Capital Outlay 0.18 0.18 0.18 0.19 Total Operating Expenditures 55.20$ 54.33$ 58.98$ 61.65$ GENERAL FUND EXPENDITURES (In Millions)

Fiscal Year 2023-24 Expenditure Assumptions

The total General Fund expenditure amount is budgeted at $58.98 million, an increase of 6.8 % from the FY 2022 -23 revised budget expenditures of $55.20 million. As discussed above, the increase in expense includes the requested program and position changes.

• Salaries and Benefits. Projections have been funded at 100% based on all current known Memorandum of Understanding (MOU) provisions with each of our labor groups and units.

o The FY 2023- 24 CalPERS normal pension retirement rates. Miscellaneous employees Tier 1 (2.7% @ 55) 1 6.24%, Tier 2 (2.5% @ 55) 14.35%, and Tier 3 (2% @ 55) 12.13%. The PEPRA Tier 4 rate (2% @ 62) is at 7.75%. The City’s annual obligation for unfunded liabilities totals $ 957,000 for our Miscellaneous employees.

o CalPERS medical rates. Assumes the rates will continue to increase by approximately 10% per year.

o Other Post -Employment Benefits (OPEB) . These have been funded at approximately $994,800 based on information received from the actuarial study completed in 2022. The budget represents funding for our retiree medical trust at 100% of the annual required contributions.

• Legacy Obligations. These obligations represent CalPERS unfunded obligations associated with the former Belmont -San Carlos Fire Joint Powers Authority (“JPA”) and the former police department. The budget associated with the former JPA represents our

52.9% share of the annual unfunded liability, or approximately $2.0 million. The annual unfunded obligation associated with the former police department is approximately $1.5 million. As done in prior years, the payment related to the former police department will be credited back to the City by the County Sheriff’s Office under the current law enforcement services contract.

• Operating Expenditures. Increased by 7.7%, wit h overall professional services increasing for known contract arrangements and anticipated needs. In addition to professional services, the operating expenditures include utilities, office and field program supplies, equipment leases, maintenance, and training.

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• Capital Outlay. Increased by 4.0% for assumed capital outlay needs and an inflationary factor.

Fiscal Year 2024-25 Expenditure Assumptions

The total General Fund expenditures amount is budgeted at $61. 65 million for ongoing expenditures, an increase of 4.5% from the FY 2023-24 proposed budget.

• Salaries and Benefits. Expenditures for FY 2024-25 are proposed to be 3.7% higher than the proposed FY 2023-24 budget, taking into account the projected increases in CalPERS retirement rates, the medical rates, and the OPEB contributions.

• Legacy Obligations. These proposed expenses are budgeted to increase by $0.20 million, or 5.7%, over the FY 2023- 24 proposed budget based on the remaining legacy obligations with CalPERS.

• Operating Expenditures. Increase by 4.9%, with overall professional services increasing for known contract arrangements and anticipated needs. In addition to professional services, the operating expenditures include utilities, office and field program supplies, equipment leases, maintenance, and training. FY 2024- 25 includes the addition of the library maintenance costs that were previously coded to the Library Improvement Fund.

As discussed in more detail later, the proposed budget assumes the early payoff of the Library General Obligation Bonds and the closure of the associated debt and operating funds associated with the library building.

• Capital Outlay. Increased by for the restoration of certain line items and a 3% inflationary factor.

General Fund Recommended Budget Summary

The following table summarizes the current fis cal year revised budget and projections and the inclusion of all recommended staff additions for the FY 2023-25 General Fund budget.

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GENERAL FUND BUDGET (In Millions)
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Est Beginning Fund Balance
Unrestricted $ 3.13 $ 3.13 $ 1.28 $ 1.05 Restricted 40.98 40.98 47.16 36.74 Est Beginning Fund Balance $ 44.11 $ 44.11 $ 48.44 $ 37.79 Revenues 51.61$ 58.13$ 55.34$ 57.87$ Salaries & Benefits (22.42) (20.60) (23.68) (24.64) Operating Expenses (32.61) (33.57) (35.11) (36.83) Capital Outlay (0.18) (0.18) (0.18) (0.19) Net Allocations/Transfers In (Out) 3.44 3.44 3.85 4.10 Total Change in Operating Funds (0.15) 7.23 0.21 0.32 Net Transfers to Capital Fund 25 (2.90) (2.90) (7.85) (4.85) Paydown of Unfunded balance - - (3.00) - Net Change in Fund Balance (3.05)$ 4.33$ (10.64)$ (4.53)$ Est Ending Fund Balance
Unrestricted $ 1.90 $ 1.28 $ 1.05 $ 0.92 Restricted 39.16 47.16 36.74 32.35 Est Ending Fund Balance $ 41.06 $ 48.44 $ 37.79 $ 33.26

The fully funded staff and Council recommended budget results in unrestricted fund balances for FY 2023-24 and 2024-25 at approximately $1. 05 million and $0.92 million, respectively. These balances are projections and savings achieved throughout the years and will increase these balances accordingly.

As done in prior years, included in the FY 2023- 24 and 2024-25 budgets are recommendations to transfer capital reserves from the General Fund to the Capital Projects Fund (Fund 25). The recommended transfer amount for the FY 2023-24 is $7.85 million and for the FY 2024- 25 is $4.85 million. These transfers are necessary to fund improvements of City infrastructure, facilities, and other capital needs.

WASTEWATER (SEWER) FUND BUDGET

The Wastewater, or Sewer, Fund is used to account for sewage treatment, transmission, major replacements, and improvements to the City’s sewer system. Revenues received can only be used to fund sewer -related projects. The table below summarizes the current year’s revised budget and projections and the FY 2023- 25 proposed budgets for the Wastewater Fund (Fund 0006). The fund balances shown here do not reflect the Net Investment in Capital Assets which as of June 30, 2022 was $32.74 million.

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WASTEWATER (SEWER) FUND BUDGET (In Millions)
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Est Beginning Fund Balance
Restricted $ 33.86 $ 33.86 $ 34.99 $ 36.98 SVCW Investment 8.63 8.63 7.47 7.47 Est Beginning Fund Balance $ 42.48 $ 42.48 $ 42.46 $ 44.45 Revenues 22.27$ 22.56$ 27.87$ 27.75$ Salaries & Benefits (2.42) (2.01) (2.54) (2.64) Operating Expenses (5.40) (5.24) (5.27) (5.68) Debt Service (3.50) (3.50) (3.31) (4.34) Adjustment to SVCW Investment - (1.16) - - Capital Project Expenditures (7.28) (7.22) (10.83) (8.38) Net Allocations/Transfers In (Out) (3.46) (3.46) (3.93) (4.05) Net Change in Fund Balance 0.20$ (0.03)$ 1.99$ 2.66$ Est Ending Fund Balance
Restricted $ 34.06 $ 34.99 $ 36.98 $ 39.64 SVCW Investment 8.63 7.47 7.47 7.47 Est Ending Fund Balance $ 42.69 $ 42.46 $ 44.45 $ 47.11

Below are the highlights of the assumptions used in developing the FY 2023-25 Proposed Wastewater budget.

• Revenues. Budgeted at $27.87 million, this represents an increase of $5.6 million, or 25%, over the revised FY 2022-23 budget. The budgeted amount includes an assumption of $5 million of new development connection fees. Staff is proposing to forgo sewer rate increases in FY 2023-24 and a rate increase of 3% has been projected in FY 2024-25.

The additional revenues are used to fund the capital improvements outlined in the City’s Sewer Master Plan. Revenues are also used to fund the debt service associated with Silicon Valley Clean Water’s (SVCW) improvements to wastewater treatment infrastructure. The proposed amount for FY 2024- 25 is projected to decrease by 0.4% compared to the FY 2023-24 proposed budget primarily due to the one -time connection fees in FY 2023-24.

• Salaries and Benefits. Budgeted amounts are based on all current known MOU provisions and the additional funding for the post-employment benefits.

• Silicon Valley Clean Water (“SVCW”). Plant operations are budgeted at $0.16 million, or 4.2%, less than the prior year. The budget is based on the Long-Range Financial Plan provided by SVCW in January 2023 and the SVCW Adopted Budget that was approved by the SVCW Board in April 2023. FY 2024 -25 expenditures are proposed to be $0.3 million, or 8.2%, higher than the proposed FY 2023-24 amount to adjust for inflation.

• Other Operating Expenditures. Budgeted at $0.2 million for FY 2023-24 and $0.01 million in FY 2024-25 is relatively the same level as the FY 2022-23 revised budget. This expenditure category also includes utilities, field program supplies, office supplies, equipment maintenance, and training.

• Bond Payments. Budgeted at $3.31 million, or $0.19 million, lower than the prior year.

This category includes the debt service payments and the estimated State Revolving Fund (“SRF”) loans. The debt service payments are directly tied to the timing of the bond

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issuance and the payments on the SRF loans used for capital infrastructure at the sewer treatment facility. The proposed amount for FY 2024- 25 is $1 million higher than the proposed FY 2023-24 budget.

• Capital Projects. Budgeted at $10.83 million and $8.38 million for FY 2023- 24 and FY 2024-25, respectively. Additional detail on the capital projects has been included in the Capital Improvement Program Budget section of the budget book.

OTHER REVENUE FUNDS BUDGET

The Other Revenue Funds are used to account for revenue sources for which expenditures are restricted by law or administrative action to specific purposes. The Other Revenue Funds include National Pollutant Discharge Elimination System (“NPDE S”) (Fund 0015), Police Grants (Fund 0017), and Library Tenant (Fund 0095).

The table below summarizes the current year’s revised budget and projection and the FY 2023- 25 proposed budget for the Other Revenue Funds.

OTHER REVENUE FUNDS BUDGET (In Millions)
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Est Beginning Fund Balance $ 3.53 $ 3.53 $ 2.20 $ 2.12 Revenues 1.17$ 1.16$ 1.18$ 0.91$ Operating Expenses (0.58) (0.58) (0.61) (0.30) Capital Expenditures (1.36) (1.35) - - Net Alloc/Transfers In (Out) (0.56) (0.56) (0.64) (1.79) Net Change in Fund Balance (1.33)$ (1.33)$ (0.07)$ (1.18)$ Est Ending Fund Balance $ 2.20 $ 2.20 $ 2.12 $ 0.94

Below are the highlights of the assumptions used in developing the proposed FY 2023-25 Other Revenue budgets.

• Revenues. Budgeted to increase by $0. 01 million, or 0.7 %, in F Y 2023-24 and then decrease by $0. 27 million, or 23 %, in F Y 2024-25. The main revenue source for the NPDES fund is the NPDES fees collected through the County. The revenue for the Police Grant fund is the Citizens’ Option for Public Safety (COPS) program. The Library Tenant fund revenue includes rental revenue from the current tenants , South Bayside Waste Management Authority and Star Vista. In FY 2024-25, staff recommends that the General Obligation bond for the library be paid off which will close out the Library Tenant Fund and move any future tenant revenue to the General Fund.

• Operating Expenditures. These include: utilities , field program supplies, annual permit renewal from the Bay Area Air Quality Management D istrict, equipment maintenance, motorcycle law enforcement , and library building maintenance and repairs. Operating expenditures reflect an increase of $0.02 million, or 4.0%. The proposed expenditures for FY 2024-25 are projected to decrease by 50.8% as any expenses associated with the library have been moved back to the General Fund.

• Capital Outlay. This includes capital projects associated with the library building. There are open projects including the general library maintenance and repairs and the generator project that will be completed by the end of FY 2024-25.

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• Net Allocations and Transfers. Fiscal Year 2024- 25 reflects the closure of the Library Tenant Fund to payoff the debt obligation, transfer funds associated with operating expense and the remaining fund balance will be restricted for library work in the General Capital Fund 0025.

OTHER PROGRAM FUNDS

The Other Program Funds are used to account for special activities and services performed by a designated department for other departments on a cost reimbursement basis. The Other Program Funds include: Workers Compensation (Fund 0032); General Liability (Fund 0033); Post - Employment Benefits (Fund 0035); and City Debt Service (Fund 0093). The table below summarizes the current year’s revised budget and projection, and the FY 2023-25 proposed budgets for the Other Program Funds.

OTHER PROGRAM FUNDS (In Millions)
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Est Beginning Fund Balance $ 2.50 $ 2.50 $ 2.37 $ 2.45 Revenues 1.16$ 1.24$ 1.57$ 1.63$ Operating Expenses (3.22) (2.99) (3.36) ( 4.60) Capital Outlay Expenditures - - - - Net Allocations In (Out) 1.62 1.62 1.86 2.24
Net Change in Fund Balance (0.44)$ (0.13)$ 0.08$ (0.73)$ Est Ending Fund Balance $ 2.06 $ 2.37 $ 2.45 $ 1.72

Below are the highlights of the assumptions used in developing the FY 2023-24 and 2024- 25 Other Program Funds proposed budgets.

• Revenues. Budgeted to increase by $0.42 million, or 35.9%, in FY 2023-24 to reflect the contribution adjustment for the increase insurance costs and the additional positions in previous years. The proposed amount for FY 2024-25 is projected to increase by $0. 06 million, or 3.6%, over FY 2023-24 to account for inflationary adjustments.

• Insurance Expenses. Budgeted to increase by $0.18 million, or 12.6%, in FY 2023- 24 over FY 2022-23 projections and budgeted to increase $0.2 million, or 12.2%, in FY 2024- 25 over FY 2023- 24 estimates. The City is a member of the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) for general liability and property insurance.

The insurance renewal market is extremely tough and more difficult to find coverage at reasonable rates since providers are leaving the market. The liability program for PLAN is expected to increase 11% and the property program is expected to increase 40.3% across all members. Based on the actuarial studies, the City’s insurance rates are estimated to increase 3.1% for general liability and 38.5% for property. In addition, workers ’ compensation insurance rates are estimated to increase 33% for the next fiscal year.

• Other Post Employment Obligations . The expenditure budgets for F Y 2023-24 and 2024-25 include a contribution of approximately $1.1 million for the post -employment benefits based on information received from the actuarial study completed in 2022. The budget represents funding for our retiree medical trust at 100% of the annual required contribution and approximately 100% of the longevity trust annual required contribution

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based on the previous study. The City’s pay-as-you-go amount totals approximately $0.93 million annually.

• Debt Service Obligations. The City’s General Obligation Bond is scheduled to be paid off on August 1, 2026. In celebration of the City’s Centennial in 2025, it is recommended that we pay the bond off one year early using the excess fund balance in the Library Tenant Fund.

CAPITAL PROJECT FUNDS BUDGETS

The Capital Project Funds include: Equipment Replacement (Fund 0010); Measure A (Fund 0014); Gas Tax (Fund 0016); Measure W (Fund 0018); General Capital (Fund 0025); Child Care Impact Fee (Fund 0026); Park In-Lieu (Fund 0027); Parking In-Lieu (Fund 0028); Housing In-Lieu (Fund 0029); and Low and Moderate Income Housing (Fund 0031).

The capital project budget funds major one-time and on-going infrastructure improvement needs, including: resurfacing and sidewalk projects; traffic safety improvements; park construction and improvements; storm drainage improvements; facility improvements; and enterprise technology projects. Funds are often accumulated in this budget over a period of years and then are spent when a sufficient amount of revenue is available to pay for desired projects.

CAPITAL PROJECT FUNDS (In Millions)
2022-23
Revised
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
Est Beginning Fund Balance $ 75.51 $ 75.51 $ 35.36 $ 34.95 Revenues 17.20$ 14.47$ 29.89$ 23.04$ Operating Expenses (0.76) (0.76) (0.79) (0.81) Capital Project Expenditures (56.15) (55.71) (36.23) (30.84) Net Allocations In (Out) 1.85 1.85 6.71 4.36 Net Change in Fund Balance (37.86)$ (40.15)$ (0.42)$ (4.26)$ Est Ending Fund Balance $ 37.65 $ 35.36 $ 34.95 $ 30.69

Capital Improvement Program Budget for FY 2023-24 through FY 2027-28

The Council was presented with a Five-Year Capital Improvement Program Budget as part of the Budget Study Session held on May 5, 2023. As there are many approved projects, a detailed listing of the proposed changes in funding for these projects can be found in the Capital Improvement Program section of this budget document. The proposed Capital Improvement Program Budget will draw down on capital fund balances over the duration of the projects and will fund the following project categories, totaling $188 million, over the next five years.

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Project Category
Wastewater
Fund Gas Tax Fund General Capital
Fund
Child Care
Fund Parks in Lieu Housing Funds
Sewage Improvements and
Replacements 54,630,000$
Street Improvements 41,145,000$ 8,025,000$
Storm Drainage System 7,750,000$
Traffic and Transit 2,850,000$
Parks and Recreation 7,100,000$ 1,650,000$
Planning 4,050,000$
Child Care 9,000,000$
Housing 48,000,000$
Facilities and Technology 3,527,100$
TOTAL 54,630,000$ 41,145,000$ 33,302,100$ 9,000,000$ 1,650,000$ 48,000,000$ PROJECTED SPENDING OVER NEXT FIVE YEARS (FY 2023 - FY 2028)

Capital Improvement Program – Unfunded List: As we have done in previous budgets, the five- year Capital Improvement Program contains a list of unfunded projects. This list shows projects that are desirable but are currently beyond the means of the City to fully fund and construct. These projects total approximately $204 million. A complete list of Unfunded Capital Projects may be found in the Capital Improvement Program staff report.

GENERAL FUND RESERVES
The Government Finance Officers Association (“GFOA”) has issued its best practice in determining the appropriate level of unrestricted fund balance in the General Fund to be at a minimum of no less than two months of regular general fund operating revenues or expenses, which equates to approximately 17%. The GFOA definition of Unrestricted Fund Balance includes three general categories: Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance.

When looking at the total reserve percentages, all categories need to be considered. In the Annual Comprehensive Financial Report, the categories that make up the unrestricted fund balance as defined by the GFOA are the following: Economic Uncertainty Reserve, Strategic Property Acquisition Reserve, Unfunded Liability Reserve , Facility and Infrastructure Reserve, and the Unassigned Fund balance. For our purposes, we will consider our reserves to be those defined as committed and assigned as noted in the following chart. Even excluding the unassigned fund balance, the City maintains healthy reserves well above the GFOA best practice guidelines.

As a general practice, use of reserves should not be used to offset annual operating expenses as these are not a continuous source of funding.

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Projected
FY 22-23
% of
FY 23
Exp
Proposed
FY 23-24
% of
FY 24
Approp
Proposed
FY 24-25
% of
FY 25
Approp
Committed Fund Balances:

Economic Uncertainty 9.24$ 17.0% 10.03$ 17.0% 10.48$ 17.0% Strategic Property Acquisition 7.19 7.19 7.19 Assigned Fund Balances:

Unfunded Liabilities 3.00 - -
Facility/Infrastructure 26.94 19.09 14.24 Ending Reserve Balances 46.37$ 85.3% 36.31$ 61.6% 31.92$ 51.8% Unassigned Fund Balance 1.28 1.05 0.92 Nonspendable Fund Balances 0.78 0.43 0.43 Total Ending Fund Balance 48.43$ 37.80$ 33.27$ RESERVE FUND BALANCES - GENERAL FUND (In Millions)

• Economic Uncertainties Reserve. The City established an Economic Uncertainties Reserve that is equivalent to at least 12.5% of the City’s General Fund expenditures, with a funding goal closer to 20% being highly desirable.

• Strategic Property Reserve. In October 2010, the Council approved and authorized the establishment of a Strategic Property Acquisition Reserve. Appropriations from this reserve can only be made by formal action of the City Council. Generally, appropriations and access to these funds will be reserved for funding strategic property acquisitions by the City.

• Assigned Reserves for Specific Purpose. As per Governmental Accounting Standards Board (“GASB”) Pronouncement 54 for Fund Balances, assigned fund balances include amounts that are constrained by the government’s intent that they be used for specific purposes. As per the Council’s direction, the City Manager is authorized to assign amounts for a specific purpose. After the audit is complete, staff reviews the prior year savings and recommends transfers into these funds. The current assigned fund balance is for Unfunded Liabilities and Facilities and Infrastructure Improvements.

The Facility and Infrastructure Reserve was created as a way to use savings generated from prior fiscal years to help pay for capital projects. Transfers from this reserve are made annually to the General Capital Improvement Fund to fund projects.

CONCLUSION
We take this opportunity to thank San Carlos staff for their continued cooperation and participation in preparation of the Fiscal Year 2023- 25 budget document. A special thank you is extended to Financial Services Manager Carrie Tam, Senior Accountant Tammy Mak, Senior Accountant Marco Lao , Senior Management Analyst Jenny Liu, Management Analyst Cheryl Hong, and Administrative Assistant Madeleine Payumo, for their efforts in bringing this document forward.

Although the City has already made millions of dollars in program and service reductions over the past several years and continues to budget conservatively, many significant internal and external threats to the City’s long term fiscal sustainability still exist.

These threats include:

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READER’S GUIDE TO THE BUDGET

Purpose
The budget is an instrument that sets policy, summarizes public service programs provided by the city government, and explains how the programs are funded. It is the biennial plan for coordinating revenues and expenditures. The budget presented covers the period of July 1, 2023 to June 30, 2025. The amounts shown for FY 2023-24 and FY 2024-25 are proposed and subject to adoption through an appropriation resolution by the City Council. Below are some of the larger sections of the budget document.

Budget Overview
This section provides the City Manager’s transmittal letter to the City Council, basis of budget and accounting, budget process, budget calendar, statistical information, and a summary of the recent community survey. Within this section, you can also find financial policies and information on the City’s strategic plan and objectives.

Financial Policies
This section provides the reader with the most recently adopted financial policies and debt management policies and procedures. In June 2008, the City Council approved financial policies formalizing longstanding practices that have been used in the past to prepare the budget. The policies were established to ensure that the City’s finances are managed in a manner that will:

1. Continue to provide for the delivery of quality services;

2. Maintain and enhance service delivery as the community grows, in accordance w ith the General Plan;

3. Guarantee a balanced budget to ensure that the City is always living within its means; and

4. Establish reserves necessary to meet known and unknown future obligations.

Strategic Plan and Objectives
The Strategic Plan is developed through an annual process that involves the City Council and City professional staff in facilitated, collaborative working sessions. The process is completed early each year so that the Strategic Plan can be incorporated into the City’s budget.

The plan is a document comprised of the City’s mission, vision and core values statements, the strategic goals and objectives for the next planning period, and detailed work plans that will accomplish the goals. Included in this section is also a summary of the pr ojects that have been identified and proposed to achieve these goals.

Financial Summaries, Revenues and Expenditures
This section provides an overview of the fund structure , including a chart that defines the 19 separate funds in the City. This section also includes fund balance summaries, revenue and expenditure summaries, discussion of major revenue sources, and information on the City’s top two revenue sources: property and sales tax.

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Department Program Budgets
This section provides organization charts and detailed budget information by program for every department. This includes a brief description of the department’s major services, personnel resources, department objectives, past accomplishments and goals for the next two fiscal years, as well as revenue and expenditures by department and division. Performance measures for each program are included in program budget pages to measure the program’s outcome and impact.

Capital Improvement Program
This section includes a summary highlighting the five-year Capital Improvement Program (CIP) both by fund and category. Each project has it s own page with additional information on the project and proposed timeline for completion, as well as revenues or funding sources and capital and operating expenditures. The Unfunded CIP List shows projects that have been identified but not yet included in the funding recommendations.

Debt Service
This section includes financial data on the City’s current debt obligations, the relationship between current debt levels and legal limits, and the effects of existing debt levels on current operations.

In addition to the five-year debt schedule and obligations, this section also includes the most current bond rating.

Glossary
The glossary section provides definitions of budget -related terminology and acronyms found throughout the document.

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City of San Carlos Fiscal Years (FY) 2023-25

BUDGET-IN-BRIEF
TOTAL CITY BUDGET – ALL FUNDS | FY 24 $125 MILLION | FY 25 $119 MILLION The fundamental purpose of the City's Financial Plan is to link what we want to accomplish for the community with the resources necessary to do so. Through the Financial Plan process, in the City Council establishes major city goals, tasks, and the necessary resources for community programs and projects.

STRATEGIC GOALS | $136.6M | 5 YEAR TOTAL INVESTMENT
(In alphabetical order)

CHILD CARE
$9M TOTAL

CLIMATE CHANGE MITIGATION, ADAPTATION, AND RESILIENCE
$19.9M TOTAL

DOWNTOWN

HOUSING

MOBILITY, TRAFFIC AND TRANSPORTATION INFRASTRUCTURE

NORTHEAST AREA SPECIFIC PLAN

RECREATION SERVICES
$4.6M TOTAL
$48.0M TOTAL
$52.0M TOTAL
$1.5M TOTAL
$1.6M TOTAL

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GENERAL FUND OPERATING BUDGETS | FY 24 $59M | FY 25 $62M The General Funds in the primary operating fund of the City and is used to account for most day -to-day activities. Revenue sources include, but are not limited to, property tax, sales tax, transient occupancy tax, current fees for services, and business registration. (Note: Amounts below do not include the one-time CalPERS pension pay-down of $3m in FY 24.)

CAPITAL IMPROVEMENT PROJECTS $188M | 5 YEAR TOTAL INVESTMENT Capital Improvement Projects account for a major portion of the City’s budget. Capital Projects help maintain or improve a City asset, often called infrastructure (roads, bridges, community facilities, etc.) Projected spending over the next five years (Fiscal Years 2023-2028) total $188 million and fund the following categories.

GENERAL FUND RESERVES
General Fund Reserves at the end of Fiscal Year 2023-24 are projected at $36 million, which equates to 62% of the General Fund expenditures and exceeds the City Council’s minimum reserve policy of 20% and the Government Finance Officers Associate recommendation of 17%. The Facility and Infrastructure Reserve is a way to use prior year savings to fund infrastructure projects. This reserve will be spent down with the timing of future projects.

$55M
Sewage
Improvements
&
Replacements

$49M
Street
Improvements

$8M
Storm Drainage
System
$3M
Traffic & Transit
$9M
Parks &
Recreation
$4M
Planning
$9M
Child Care
$48M
Housing
$4M
Facilities &
Technology

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TOP 10 FREQUENTLY ASKED BUDGET QUESTIONS
1) How much of my property tax payment goes to the City? Approximately 13.3% of your property tax bill goes to the City of San Carlos. For example, if you have property assessment of $2,000,000, even though your property tax bill is $20,000, only $2,655 goes to the City. This is due to the limits that were established by Proposition 13 in the late 1970’s. Please see table below for a breakdown of property tax dollar:

Taxing Entities Percentage of Distribution
ERAF Share of San Mateo County 11.955%
San Mateo County 15.200%
San Carlos Elementary General Purpose 21.270%
Sequoia High General Purpose 17.890%
ERAF Share of San Carlos General Fund 2.473%
San Carlos General Fund 10.800%
San Mateo Junior College General Purpose 7.770%
County Education Tax 4.040%
County Library 3.960%
Mid-Peninsula Regional Open Space 2.100%
Sequoia Hospital District 1.677%
County Harbor District 0.404%
Bay Area, Air Pollution 0.239%
Mosquito Abatement 0.220%
Total 100.000%
2) W
hat are the major categories of property tax?
The major categories of property tax include residential, commercial, industrial, unsecured, and other. Please see the chart below for parcel and taxable value information.

A
lthough there are more residential parcels than commercial, the top 10 property owners are comprised of mostly commercial and industrial properties.

Category # Parcels Net Taxable Value % of Total
Residential 10,125 11,567,728,737$ 74.4%
Commercial 464 1,464,899,784 9.4%
Industrial 388 1,908,269,890 12.3%
Unsecured 508,848,926 3.3%
Other 276 93,708,394 0.6%
Totals 11,253 15,543,455,731$ 100.0%
FISCAL YEAR 2022-23

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3) W
hat is the City’s sales tax rate and how much goes back to the City? The
City’s sales tax rate is 9.375%, out of which 1% goes back to the City. For example, if you make a purchase in the amount of $100, even though you pay sales tax of $9. 37, onl
y $1 goes to the City. The rest of the sales tax goes to various entities. Please see the gr
aphic below for a breakdown of where your sales tax dollars go:

Owner Use Type Net Taxable Value % of Total
1 Are-San Francisco No 63 LLC Industrial 622,462,606$ 4.00% 2 SC Transit Village LLC Lessee Residential 159,839,061 1.03% 3 BMR-201 Industrial Road LLC Industrial 130,917,173 0.84% 4 Bgogc-150 Industrial Owner LLC Industrial 118,515,228 0.76% 5 Hudson Skyway Landing LLC Commercial 118,264,511 0.76% 6 San Carlos Partners LLC Industrial 116,660,200 0.75% ARE San Francisco No 92 Holding LLC Industrial 114,199,200 0.73% 7 Equity One San Carlos LLC Commercial 104,508,405 0.67% 8 GC Net Lease San Carlos Investors LLC Commercial 94,525,474 0.61% 9 GI ETS Shoreway LLC Commercial 76,946,269 0.51% Top 10 Total 1,656,838,127$ 10.66%
Top 10 PROPERTY OWNERS FISCAL YEAR 2022-23

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4) What are the major sources of sales tax?
Major sources of sales tax include the following industry groups:
• Autos & Transportation
• Building & Construction
• Business & Industry
• Food & Drugs
• Fuel & Service Stations
• General Consumer Goods
• Restaurants & Hotels
Please see Sales Tax by Major Industry Groups bar chart on page ___. 5) What are the different type of funds?
The City has several different funds including the following:
• General Fund. The General Fund is the primary operating fund of the City and is used to account for most day to day activities.
• Enterprise (Sewer) Fund. The Enterprise Fund or Wastewater (Sewer) Fund is used to account for City operations that are financed and operated like a private business.
• Other Special Revenue Funds. Revenue funds are used to account for rev enue s
ources for which expenditures are restricted, by law or administrative action, to specific purposes.
• Capital Funds . The Capital Funds are used to account for the acquisition or construction of major capital improvements other than those financed by the Enterprise Fund.
• City Debt Service Fund. The Debt Service Fund is used to account for the accumulation of annual tax levies earmarked for payment of principal and interest on the 2015 General Obligation Bonds that were used to finance the construction of the San Carlos Library.
• Internal Service Funds. The Internal Service Funds are used to account for special activities and services performed by a designated department for other departments on a cost reimbursement basis.

P
lease see City of San Carlos Fund Structure on page ____ for additional information on all the budgetary funds.
6) W
hat are the other sources of revenue?
Sa
les and property tax are two of the biggest sources of revenue. Aside from sales and property tax, there are other sources of revenue:
• Tr
ansient Occupancy Tax is tax paid by the hotels guests and remitted by the hotels to the City.
• Licenses & Permits is revenue generated by construction permits.

TBD
TBD

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• Use of Money & Property is revenue generated from property rentals, leas e i
ncome, three digital billboards, and investment income. • Vehicle in-Lieu is revenue generated by vehicle registration fees. • Capital Projects Funding includes solid waste franchise fee, Education Revenue Augmentation Fund, Measure A and W, Measure M, gas tax, Child Care fund, user fees, grants, developer fees, traffic impact fee, housing in- lieu fee, and the commercial linkage fee.
• Fines & Forfeitures/PAMF Revenue includes vehicle code fines, building permit violations, parking fines, non-sufficient funds charge, and revenue based on the terms of the Development with the Palo Alto Medical Foundation. • Business Registration/Other Tax is generated by a registration fee paid by all businesses operating within the city and franchise fees. • Other Revenue Categories include cost reimbursements from other agencies. • Charges for Services include development plan check fees and recreation programs and reservations.
• Enterprise Revenue includes fees related to sewer service assessment and connection.

P
lease see the Revenues section of the budget book on page ____ for the adopted revenue.
7) W
hat has the City done to reduce costs to the taxpayers? For
over a decade, the City has been a strong advocate for shared services. Our shared services model has proven very successful in reducing our costs while increasing or maintaining the same level of service to the community. Contracting with larger agencies f
or public safety maximizes the response times since larger agencies have more resources to pull from. In addition, the City can help offset the administrative costs of the ot
her agency by sharing these resources. The City has the following shared serv ice agr
eements:
• Law
Enforcement Services (Police Services) contracted with the County of San Mateo Sheriff’s Office since 2010.
• Dispatch Services contracted with the County of San Mateo since 2012. • Fire and Emergency Services contracted with the City of Redwood City since 2013.

In addition to shared service arrangements, the City implemented pension reforms and/or tiers prior to the passage of the State Public Employees’ Pension Reform Act of 2013 (“PEPRA”). The reforms included reduction of pension benefits and the elimination of employer paid retiree health benefits for employees hired after 2009 . These reforms reduced the long-term obligations of the City. Along with these reforms, the City has used prior year savings to pay down the remaining outstanding obligations, which will save the City over $895,000 annually for the next eight years (2021-2028) and $451,000 over the following eight years (2029-2036).

TBD

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Ther
e are 101 budgeted positions for the City for Fiscal Year 2023-24 . Please see the Personnel Summary section of the budget on page ____ for position changes and positions by department.
9) W
hat are the Five-Year Capital Improvement Projects?
Ther
e is a number of Capital Improvement Projects. For information on these projects, please see the Capital Improvement Program section on page ___ of the budget book. 10) W
hat is the total budget of the City?
The t
otal budget of the City for Fiscal Year 2023-24 is $124,905,200. The total General Fund budget is $61,976,850.

The t
otal budget of the City for Fiscal Year 2024-25 is $119,241,690. The total General Fund budget is $61,652,890.

TBD
TBD
8) How many employees work for the City?

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BASIS OF BUDGETING AND ACCOUNTING

BASIS OF BUDGETING
The City of San Carlos budget document contains revenues, appropriations , and other financial information pertaining to all City operating and capital budgets, including the five- year Capital Improvement Program and the proprietary funds. The City’s budget goal is to achieve a balanced budget with revenues, including reimbursem ents or transfers from other funds for services provided, equal to or greater than expenditures.

The budgets of governmental fund types (General Fund, Other Revenue, and Capital Projects Funds) of the City are budgeted and accounted for using the modified accrual basis of accounting, which recognizes revenues when they become susceptible to accrual – i.e., measurable and available. Expenditures are recognized when the fund liability is incurred. The accrual basis of accounting is generally used to budget for the Enterprise Funds and Internal Service Funds, except for depreciation, debt principal payments, and capital outlay (see Basis of Accounting below).

The City’s accounting system is maintained on a fund basis in accordance with governmental accounting standards. Each fund is considered a separate accounting entity with a self- balancing set of accounts that record assets, liabilities, fund equity, revenue, and expenditures.

The appropriated budget is prepared by fund, function/program (e.g., public safety), and department (e.g., Community Development).

Budgetary control is maintained at the department/program level. Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments, but within the same fund, can be approved administratively (by the Administrative Services Director or City Manager). However, transfers of appropriations that change total fund appropriations must be approved by the City Council.

Departments monitor and control budgets using the City’s financial system, through reports of revenue, and expenditure accounts. The financial system monitors expenditures at the line item budget level, immediately notifying the requestor of available funding levels. The Council is also provided with a quarterly financial status report that reflects year-to-date expenditures and revenues compared to budget. In addition, a financial status report and five-year forecast are included as part of the mid-cycle budget review and adjustment process, which is completed every other spring and submitted to the Council for review and approval.

BASIS OF ACCOUNTING
The Annual Comprehensive Financial Report (ACFR) presents the status of the City’s finances in accordance with Generally Accepted Accounting Principles (GAAP). In most cases, this conforms to how the City prepares its budget. Exceptions are as follows:
• Compensated absences are recorded as earned by employees (GAAP basis), as opposed to being expended when paid (Budget basis);
• Principal payments on long-term debt within the Debt Service Fund reduce the amount of debt remaining on a GAAP basis, as opposed to being expended on a Budget basis;

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• Capital Outlay is recorded as assets on a GAAP basis and expended on a Budget basis; and
• Depreciation expenses are recorded on a GAAP basis only.

The government-wide proprietary funds and fiduciary funds financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds including major and other governmental funds (non-major funds) are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers revenues reported in the governmental funds to be available if the revenues are collected generally within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, including lease liabilities, as well as claims and judgements and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital assets acquisitions, including entering into contracts which give the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of governmental long- term debt and financing through leases are reported as other financial sources.

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BUDGET PROCESS AND CALENDAR

BUDGET PROCESS

The City’s Municipal Code requires the City Manager to prepare and submit a proposed biennial budget to the City Council for approval. California Government Code Section 53901 requires that the City provide a copy of the adopted budget to the County Controller (Auditor) of San Mateo County within 60 days after the beginning of the fiscal year or before August 31.

The budget process commences six months prior to the beginning of the next fiscal year. The budget calendar establishes the timeline for the process, dates for submission of department requests, budget work sessions, and public hearings leading to final adoption of the budget.

The philosophy employed in creating this budget has been to focus the City’s efforts in continuing to provide quality “core” municipal services in the most efficient way possible.

Budget Development Process and Timeline

The City Manager, Assistant City Manager, Administrative Services Director, and Financial Services Manager provide guidance to the departments prior to preparation of department budgets related to economic outlook and parameters for budgeting.

Budget Preparation for FYs 2023-25 Commences. In developing the base budget for FYs 2023-25, staff made a number of revenue and expenditure assumptions. All of these assumptions were based on the projections and economic conditions known between January and March 2023 and reflect the adjustments approved by the City Council.

Strategic Planning. In January 2023, the C ity Council and Executive Management staff continued the annual strategic planning process begun in FY 2005-06. As part of this budget process, the City retained two facilitators to lead us through the City’s strategic planning process. The process resulted in the review of the City’s mission statement, vision statement, and core values, and the establishment of seven primary goals and several supporting objectives. Many objectives from this strategic planning process have been funded in this budget. The City Council appropriates the funds necessary to meet operating and capital activities and the adopted strategic goals and objectives. Budgetary adjustments are only considered within the framework of the adopted budget and the City Council’s directions, goals, and policies. This meeting was open to the public and the public was given an opportunity to comment.

Department Requests. In February 2023, City departments were provided with base budgets for FYs 2021-23 that included known increases in salaries and benefits, increases related to existing professional services contracts, and inflationary increases for operational expenditures. The revised budget and projections were also provided to the departments at that time. Department requests are based on budget instructions. Each request must relate to the organization’s program objectives and the priorities of the City. The requests are received and compiled by finance staff. The City Manager, Assistant City Manager, Administrative Services Director , and the Financial Services Manager met with each department individually to discuss and finalize the recommended budget options that were submitted for the Council’s consideration during the Budget Study Session.

Budget Study Session Held. On May 5, 2023, the City Council held a study session to discuss the general overview of the budget process, department responsibilities, accomplishments, goals , and recommendations for both the operating and capital budgets for FY s 2023-25. A Five-Year Capital Improvement Program Budget was also discussed and present ed as part of the Budget Study Session. Based on direction from the Council, the proposed changes from those study sessions have been incorporated into the proposed budget document. This meeting was open to the public,

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broadcast on the City’s TV channels and available on the City’s website following the meeting. The public was notified in advance of the meeting and allowed time to comment.

Budget Adoption. On June 12 , 2023, staff will present the Proposed City of San Carlos Biennial Budget for Fiscal Year s 2023-25, including both Operating and Capital Budget s, for adoption. This meeting is also open to the public, broadcast on the City’s TV channels and available on the City’s website following the meeting. The public was notified in advance of the meeting and allowed time to comment.

Performance Measurements

Several years ago, the City transitioned from annual departmental budgeting to a full program and performance-based biennial budget. Program and performance- based budgeting: focuses decisions around results and services versus organizational units; emphasizes performance over line items; shows the cost (budget) of services and the level of service available for the cost; provides a structure to consider programs as they contribute to City goals and outcomes; and serves as an investment perspective with dialog about the right service for the right price.

The City uses several different tools to accumulate performance data, including employee surveys, resident satisfaction surveys, and internal performance measurement activities. Included in this budget document are the results of a resident satisfaction survey that was completed in May 2023.

Overhead Cost Allocation Method

In an effort to clarify and simplify the allocation process, staff worked closely with professional consultants to develop a methodology and a model to ensure the equitable allocation of overhead costs to departments in a manner that is both transparent and sustainable. Through this approach, each department’s budget reflects total departmental costs, including all staff assigned to the department. The model calculates how much should be recovered from other City funds, based on average time spent on other/non -General Fund programs, as well as employing other service utilization factors. These indirect and direct overhead costs are represented as cost allocati ons or transfers to and from department budgets as indicated in the chart below.

Functional Units
General
Fund
Sewer
Enterprise
Fund
Other
Revenue
Funds
Capital
Funds
Internal
Service
Funds
City Council X X X X X
City Manager X X X X X
City Attorney X X X X X
City Clerk X X X X X
City Treasurer X X X X X
Administrative Services X X X X X
Community Development X X
Parks and Recreation X
Public Safety X

RELATIONSHIP BETWEEN DEPARTMENTS AND FUNDS

Budgetary Reserves

The Council has established the Fund Balance Policy, updated as of September 28, 2020 , which is included in the Financial Policies section of this budget document. The General Fund balances for FYs 2023-25 are detailed in the following table. Total operating expenditures are also listed to demonstrate the percentage level of reserves required per the City’s Fund Balance Policy.

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Projected
FY 22-23
% of
FY 23
Exp
Proposed
FY 23-24
% of
FY 24
Approp
Proposed
FY 24-25
% of
FY 25
Approp
Committed Fund Balances:

Economic Uncertainty 9.24$ 17.0% 10.03$ 17.0% 10.48$ 17.0% Strategic Property Acquisition 7.19 7.19 7.19 Assigned Fund Balances:

Budget Implementation

Once the budget is adopted, it is effective on July 1 and becomes the legal basis for the programs and services of each department of the City during the fiscal year. No department of the city government may spend in excess of the adopted and appropriated amounts, unless authorized by budget transfer as approved by the City Manager or designee. Financial and programmatic monitoring of departmental activities is necessary to ensure conformity with the budget takes place throughout the year. The budget can be found on the C ity website. Budget amendments may be made by the City Council to meet the changing needs of the C ity. The means by which the City Council may amend the budget include, but are not limited to, appropriation of additional funds and decreasing the amount of appropriated funds.

Capital Improvement Program

The City Council also adopts a Five-Year Capital Improvement Program. This budget is submitted by the City Manager with the operating budget, and public hearings are held and the budgets are legislatively enacted through adoption of resolutions and/or ordinances. Appropriations for project funds and grant funds do not lapse at year end, but continue until the purpose of the appropriation has been fulfilled or terminated. Amendments to these budgets may be affected by the City Council’s actions. The level of budget control is on a project basis with additional administrative con trols being exercised.

Budget Principles and Policies

• The operating budget will be prepared to fund current year expenditures with current year revenue. Surplus fund balances may be used to increase fund balance reserves, fund Capital Improvement Projects, or be carried forward to fund future years’ operating budgets when necessary to stabilize services and fund capital outlay. • We will assume normal inflationary growth in accordance with the consumer price index for operating expenses.
• We will assume pers onnel costs based on current memoranda of understanding in effect at the time.
• Any new or expanded programs will be required to identify new funding sources and/or off - setting reductions in expenditures in other programs.
• We will deliver service in the most cost-effective manner. • The budget will state the objectives of each of the operating programs. • The budget will fully account for and apportion all costs, fees , and General Fund transfers associated with the Special Revenue and Enterprise Funds.

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• All budget transfers require the approval of the City Manager or designee. However, transfers of appropriations that increase the total appropriations of a fund must be approved by the City Council.
• We will maintain a long-range fiscal perspective through the use of a biennial operating budget, a five-year capital improvement program, and a five-year financial forecast. • The biennial budget will be adopted by Resolution of the City Council , by July 1, every other year.
• A mid-cycle budget status report will be prepared and presented to the City Council in the spring of the first year of the budget that will include projections to year -end and any adjustments required for the second year of the biennial budget. • Staff will provide a quarterly written report to the Council on the City’s General Fund revenues and expenditures.

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FY 2023-25 BUDGET CALENDAR

DATE DEPARTMENT ITEM DUE Legal Requirement
January
2023
Finance Finance builds base budget to include
known increases in salaries and
benefits, increases related to existing
professional services contracts, and
inflationary increases for operational
expenditures
N/A
January 27,
2023
City Council
and Executive
Management
Staff
Strategic Planning Retreat – Public
Meeting
N/A
February 3,
2023
Finance Budget Instructions, Program Change
Forms and Draft Work
Programs/Performance Measurements
sent to Departments
N/A
February 3,
2023
Finance Finance provided Departments the
following information:

1. FY21 audited results

2. FY22 audited results

3. FY23 revised budget

4. FY23 current YTD/projections

5. FY24 base budget

6. FY25 base budget

7. Updated CIP summaries

8. Performance Measures
N/A
March 3,
2023
All Depts. 1. Review and send Finance any
updates FY23 Operating budget
projections.

2. Submit completed FY23-24 and
FY24-25 Operating Budget Forms
(if applicable)

3. Submit Work
Programs/Performance Measures

4. Submit CIP forms for any requested
adjustments or new projects
N/A
March 13 –
March 17,
2023
All Depts. Present preliminary Operating and CIP
Budget with all Program change forms
to the City Manager for review. Work
sessions with each Department over the
five day period.

N/A
May 5, 2023 All Depts. Budget Study Session with City Council – Public Meeting
N/A
June 5,
2023
Community
Development
Proposed CIP budget is presented to
Planning Commission for General Plan
Consistency Determination – Public
Meeting
State Planning and Zoning
Code Sections 64500,
64501, 65403
June 12,
2023
City Manager
and Admin
Services
Director
Present Budget to City Council for
adoption
City’s Municipal Code
Section 2.04.060
August
2023
City Clerk Forward a copy of approved and
adopted budget to the County Controller
(Auditor) of San Mateo County for filing.

California Government
Code Section 53901

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MAJOR FUNDS SUMMARIES

The City of San Carlos budget document contains revenues, appropriations , and other financial information pertaining to all City operating and capital budgets, including the five -year Capital Improvement Program. The budgets are accounted for using the modified accrual basis of accounting for governmental funds and accrual basis of accounting for proprietary funds. The City’s budget goal is to achieve a balanced budget with revenues, including reimbursements or transfers from other funds for services provided, equal to or greater than expenditures.

MAJOR FUND SUMMARIES

General Fund (Fund 0001)

General Fund r evenues for FY 2023-24 are budgeted to be $55,339,300, representing a 4.8% decrease over the projected revenues for FY 2022-23. The decrease in projected revenues is due to large development payments and a one- time repayment Vehicle in Lieu revenue from FY 2020- 21.

For FY 2024-25, operating revenues are budgeted to be $57,873,690 , representing an increase of

4.6% over the budgeted revenues for FY 2023-24. The increase in both years reflects continued growth expected from development activity and the expansion of programs. Property tax is expected to increase 8.8% in FY 2023-24 and 7.0% in FY 2024-25. Sales tax is projected to grow at 8.5% in FY 2023-24 and 2.8% in FY 202 4-25. Transient Occupancy Taxes are projected to grow 10.5 % in FY 2023-24 and 13.5% in FY 2024 -25 following the opening of a new hotel and the expectation that occupancy rates will return to pre-pandemic levels. Current Charges for Services are projected to grow

6.4% in FY 2023-24 with the continued demand for development permits and plan checks.

General Fund expenditures for FY 2023-24 are budgeted to be $58,976,850, representing a 8.5% increase over the budgeted expenditures for FY 2022-23. The increase in expense includes requested program and position changes, in addition to anticipated increases associated with retirement rates, employee medical benefits, post-employment benefits, and professional services associated with plan check reviews, economic development, recreational activities , and public safety services. The FY 2024-25 total expenditure budget is $61,652,890, a 4.5% increase over the FY 2023-24 expenditure budget.

General Fund net allocations and transfers in for FY 202 3-24 are budgeted to be $3, 845,000, representing an 11.7% increase over the estimated net allocations and transfers for FY 2022-23. Net allocations and transfers funding are budgeted in FY 2024-25 at $4,096,100, representing a 6.5% increase. This increase is a result of the increase in overhead charges to other funds in accordance with the contracted study that was performed in FY 2021-22.

The Other Sources/Uses of Funds category for FY 2023-24 has increased by $7.95 million from the FY 2022-23 projections. The category represents one-time funding for special items, including a $7.85 million transfer from the capital reserve to the Gas Tax and General Capital Funds for infrastructure improvements. The budget for FY 2023-24 also includes a $3.0 million payment to CalPERS to offset the unfunded pension liability. The FY 202 4-25 budget includes a $4.85 million contribution to the General Fund Capital Projects Fund.

The FY 202 3-24 budget reflects a total fund balance projection of $37,796,933 , including both restricted and unrestricted balances, and represents a decrease of 22% compared to the FY 2022-23 projected ending fund balance. This drop in fund balance is mainly due to the $7.85 million contribution to the General Fund Capital Projects Fund and Gas Tax Fund for infrastructure improvements, as well as the one-time payment to CalPERS. The FY 2024-25 estimated ending fund balance for the General Fund of $33,263,833 decreases by 12%. Similar to the prior year, this decrease is due to the transfer to the capital funds for infrastructure improvements.

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GENERAL FUND (RESTRICTED & UNRESTRICTED)
Projected FY
2022-23
Proposed FY
2023-24 Variance
%
Change
Proposed
FY 2024-25 Variance
%
Change
Est. Beg Fund Balance 44,110,159$ 48,439,483$ 4,329,324$ 9.8% 37,796,933$ (10,642,550)$ -22.0% Revenues 58,131,600 55,339,300 (2,792,300) -4.8% 57,873,690 2,534,390 4.6% Expenditures (54,345,476) (58,976,850) (4,631,374) 8.5% (61,652,890) (2,676,040) 4.5% Net Allocations/Transfers 3,443,200 3,845,000 401,800 11.7% 4,096,100 251,100 6.5% Other Sources/Uses (2,900,000) (10,850,000) (7,950,000) 274.1% (4,850,000) 6,000,000 -55.3% Est. Ending Fund Balance 48,439,483$ 37,796,933$ (10,642,550)$ -22.0% 33,263,833$ (4,533,100)$ -12.0%

Wastewater Fund (Fund 0006)

The Wastewater Fund revenues for FY 2023-24 are budgeted to be $27,866,500, representing an increase of 30.2% over the projected revenues for FY 2022-23. The increase reflects an assumption of $5 million from new development connection fees. Staff proposes to forgo sewer rate increases in FY 2023-24. However, a rate increase of 3% has been projected in FY 2024- 25. The FY 202 4-25 revenue budget of $27,746,000 is a 0.4% decrease over the FY 2023-24 estimates, primarily due to the one- time connection fees projected in the prior year . Revenues are used to fund the capital improvements outlined in the City’s Sewer Master Plan and to pay the debt service associated with Silicon Valley Clean Water (“SVCW”) improvements to the wastewater treatment infrastructure.

Wastewater Fund expenses for FY 2023-24 are budgeted to be $21,950,700, reflecting a 22.2% increase from estimated expenses for FY 202 2-23. Expenses in FY 20 24-25 are budgeted to be $21,031,300, a 4.2% decrease over the FY 2023-24 budget. The expense budgets reflect the timing of planned capital improvement project spending and the debt service requirements in the corresponding year. More detail on the capital projects can be found in the Capital Project Section of the budget.

Net allocations and transfers budgeted for FY 2023-24 of $3,928,100 reflect an increase of 13.5% as compared to FY 2022-23 projections. This increase reflects overhead allocation changes based on the comprehensive study performed by a third-party consultant last year. Net allocations and transfers out for FY 2024-25 of $4,053,100 are expected to increase by 3.2% over FY 2023-24 estimates. These increases reflect the estimated annual cost of living adjustments.

The ending fund balance, which includes those funds invested in capital assets and invested in SVCW, at the end of FY 202 3-24 is estimated to be $77,186,029. The fund balance is 2.6% higher than the fund balance estimate of $75,198,329 at the end of FY 2022-23. The increase is mainly due to the timing of capital project spendi ng. The estimated fund balance is projected to increase to $79,847,629 in FY 202 4-25. The increase is mainly due to the timing of capital projects and debt issuance for capital project spending at the SVCW Treatment Plant.

WASTEWATER (ENTERPRISE) FUND
Projected
FY 2022-23
Proposed
FY 2023-24 Variance
%
Change
Proposed
FY 2024-25 Variance
%
Change
Est. Beg Fund Balance 75,225,258$ 75,198,329$ (26,929)$ 0.0% 77,186,029$ 1,987,700$ 2.6% Revenues 21,401,123 27,866,500 6,465,377 30.2% 27,746,000 (120,500) -0.4% Expenditures (17,965,852) (21,950,700) (3,984,848) 22.2% (21,031,300) 919,400 -4.2% Net Allocations/Transfers (3,462,200) (3,928,100) (465,900) 13.5% (4,053,100) (125,000) 3.2% Est. Ending Fund Balance 75,198,329$ 77,186,029$ 1,987,700$ 2.6% 79,847,629$ 2,661,600$ 3.4%

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Capital Improvement Fund (Fund 0025)

Revenues for FY 202 3-24 in the Capital Improvement Fund, both restricted and unrestricted, are $7,192,100, representing a 26% decrease from the estimated revenues for FY 2022-23. The majority of this decrease is related to one-time grants, including funds from the American Rescue Plan Act (ARPA) funds that are being used to fund the new fire station. Revenues for FY 2024-25 are estimated to be $9,017,800, an increase of 25.4% from FY 2023-24 due to the timing traffic impact fees projected from large development that is used to offset traffic project costs.

Expenditures for FY 2023-24 are $11,727,100 and in FY 2024-25 are estimated to be $10,575,000 due to the timing of capital project spending. More detail on the capital projects can be found in the Capital Project Section of the budget.

The fund balance at the end of FY 2023-24, for both unrestricted and restricted balances, is estimated at $7,859,342 and at the end of FY 2024-25 is $5,753,578.

CAPITAL IMPROVEMENT FUND (RESTRICTED AND UNRESTRICTED)
Projected
FY 2022-23
Proposed
FY 2023-24 Variance
%
Change
Proposed
FY 2024-25 Variance
%
Change
Est. Beg Fund Balance 35,651,347$ 10,419,342$ (25,232,005)$ -70.8% 7,859,342$ (2,560,000)$ -24.6% Revenues 9,715,947 7,192,100 (2,523,847) -26.0% 9,017,800 1,825,700 25.4% Expenditures (35,722,952) (11,727,100) 23,995,852 -67.2% (10,575,000) 1,152,100 -9.8% Net Transfers 775,000 1,975,000 1,200,000 154.8% (548,564) (2,523,564) -127.8% Est. Ending Fund Balance 10,419,342$ 7,859,342$ (2,560,000)$ -24.6% 5,753,578$ (2,105,764)$ -26.8%

Housing Funds (Fund 0029 and Fund 0031)

Revenues for FY 202 3-24 for the Housing Funds are budgeted to be $15,201,300 , an increase of 1998.8% over the FY 2022-23 projections. FY 2023-24 revenues include one-time commercial linkage fees projected to be received from new commercial development . The FY 2024 -25 revenues are estimated to be $7,653,900 and reflect commercial linkage fees from more large developments on the east side of the city.

The FY 2023 -24 and FY 2024- 25 expenditures include capital project spending for below market housing projects. More detail on the capital projects can be found in the Capital Project Section of the budget.

The fund balance at the end of FY 2023 -24 is estimated to be $13,927,438 and is expected to decrease to $10,431,838 in FY 2024-25.

HOUSING FUNDS (RESTRICTED)
Projected
FY 2022-23
Proposed
FY 2023-24 Variance
%
Change
Proposed
FY 2024-25 Variance
%
Change
Est. Beg Fund Balance 23,149,252$ 15,342,538$ (7,806,714)$ -33.7% 13,927,438$ (1,415,100)$ -9.2% Revenues 724,300 15,201,300 14,477,000 1998.8% 7,653,900 (7,547,400) -49.6% Expenditures (8,125,814) (16,195,000) (8,069,186) 99.3% (10,715,400) 5,479,600 -33.8% Net Transfers (405,200) (421,400) (16,200) 4.0% (434,100) (12,700) 3.0% Est. Ending Fund Balance 15,342,538$ 13,927,438$ (1,415,100)$ -9.2% 10,431,838$ (3,495,600)$ -25.1%

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Price
Factor:

Population
Factor:

Fiscal Year Price
Adjustment
Population
Adjustment
Total
Adjustment
Appropriations
Limit
% of City
Appropriations
Subject to the
GANN Limit
2015 1.0117 x 1.0089 = 1.0207 $65,985,846 37.20%
2016 1.1064 x 1.0100 = 1.1175 $73,736,808 29.35%
2017 1.0878 x 1.0091 = 1.0977 $80,940,818 36.85%
2018 1.0369 x 1.0056 = 1.0427 $84,397,528 30.53%
2019 1.0367 x 1.0073 = 1.0443 $88,133,630 33.96%
2020 1.0385 x 1.0028 = 1.0414 $91,783,048 41.13%
2021 1.0373 x 1.0166 = 1.0545 $96,786,987 42.05%
2022 1.0573 x 0.9925 = 1.0494 $101,565,385 55.38%
2023 1.0755 x 0.9908 = 1.0656 $108,228,622 40.52%
2024 1.0444 x 0.9957 = 1.0399 $112,547,927 47.03%
(1)

TEN YEAR HISTORY OF PRICE AND POPULATION FACTORS &
TAX APPROPRIATIONS LIMIT (1)
FOR FISCAL YEARS 2015 to 2024

GANN ANNUAL APPROPRIATION LIMIT
FISCAL YEAR 2023-24
Appropriations Limitation, imposed by Propositions 4 and 111, establishes a formula to restrict the amount of revenues that can be appropriated in any fiscal year. The Limit is based on actual appropriations for base fiscal year 1978-79 and is increased annually using the growth in population and a price adjustment index, as well as commercial property development within the City during the year. Revenues that are restricted to the limitation are those which are referred to as “proceeds of taxes,” such as sales tax, property tax and business license tax.

The City must adopt an appropriation limit for each fiscal year. Beginning with the fiscal year 1990-1991, the law provides the local agency an option to calculate the adjustment factors by the following:

The percentage change in the California Per Capita Income Either the City’s own population growth or the population growth of the entire County.

In 1980, the State Legislature added Division 9 to Title I of the Government Code to implement Article XIIIB. This legislation required the governing body of each local jurisdiction in California to establish a tax appropriations limit on or before June 30 of each year for the following fiscal year, pursuant to which the City of San Carlos has been establishing this limit since 1981.

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Step 1 Total all appropriations (2023-24 operating and capital from general and special funds) 124,905,200 $
Step 2 Deduct:

1. Non-Tax Proceeds (71,507,000) $

2. Debt Service Payments (469,250) $
Add:

1. Excess user fees which exceed actual costs - $
Step 3 Equals appropriations subject to limit (Step 1 - Step 2) 52,928,950 $ Step 4 Compare against 2023-24 Appropriations Limit (from below) 112,547,927 $ Dollar Amount Under Limit (Step 4 - Step 3) 59,618,977 $ Percentage of Limit (Step 3/Step 4) 47.03%
Step 5 Fiscal Year 2022-23 Appropriation Limit 108,228,622 $ Fiscal year 2023-24 Growth Factor based on California Per Capita Step 6 Income 1.0444 --- and the County 103.99%
Population Change 0.9957
(1.0444*0.9957)
Step 7 FY 2023-24 Appropriations Limit (Step 5 x Step 6) 112,547,927 $ Step 8 FY 2023-24 Appropriations Subject to Limit (from above) 52,928,950 $ Step 9 Dollar Amount Under Limit (Step 7 - Step 8) 59,618,977 $ Step 10 Percentage of Limit (Step 8/Step 7) 47.03%

GANN APPROPRIATIONS LIMIT CALCULATIONS
FISCAL YEAR 2023-2024

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General Fund $61,976,850
Capital Improvement 37,015,100
Other Programs 3,962,550
Enterprise Sewer System 21,950,700
$124,905,200
Licenses & Permits $2,589,800
Business Registration 1,265,900
Fines & Forfeitures 319,000
Use of Money & Property 3,672,500
From Other Agencies 4,744,300
Charges for Services 5,122,800
Other Revenue 2,040,900
Sewer Operation & Maint. 27,866,500
NPDES 633,100
Capital Improvement Fund 25 3,080,200
Child Care Fund 26 3,600,000
In-Lieu Park Fund 27 288,300
Housing In-Lieu Fund 29 14,879,400
LMI Housing Fund 31 34,100
Post-Employment Benefits Fund 35 1,110,500
Library Rent & Concessions 259,700
$71,507,000
Debt Services $469,250
$71,976,250
Non-Tax Proceeds and Debt Services

CHART OF FUNDS SUBJECT TO APPROPRIATION
2023-24 Appropriation from Operating, Capital Improvement and Other

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DISTINGUISHED BUDGET AWARD FOR FISCAL YEAR 2021-23
The Government Finance Officers Association (GFOA) established the Distinguished Budget Presentation Awards Program in 1984 to encour age and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA's best practices on budgeting and then to recognize individual governments that succeed in achieving that goal.

The City of San Carlos has received this award for several years, including the FY 2021-23 Budget.

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City of San Carlos FY 2023-25 Budget
Community & Economic Profile

Location

San Carlos, “The City of Good Living,” is located in the center of the San Francisco Bay Area and has everything at its doorstep. San Francisco is 25 miles north and San Jose is 25 miles south. San Carlos boasts an ideal climate, good government, outstanding school system, attractive residential areas, a fine shopping district, excellent restaurants, a modern industrial and commercial area, and plenty of open space. At the northern end of Silicon Valley, San Carlos hosts several technology companies and is the address of many West Coast biotech and medical instrumentation firms. You’ll find friendly, involved people here and an inviting community atmosphere.

History

The first known inhabitants of San Carlos were the Ohlone Indians.

Ohlone is the name that was given to many related groups of Native Americans living along the coast between Monterey and San Francisco. Historians believe that two sub-tribes existed in and near San Carlos, including the Salson to the north of Belmont Creek and the Lhamshin.

In August 1775, Lt. Juan Manuel de Ayala brought his sailing ship, the “San Carlos”, into San Francisco Bay and anchored in what is currently known as Ayala cove. His mission was to develop a map of the Bay on which future Spanish ship captains could rely.

San Carlos formally entered the American era in 1854 when Timothy Guy Phelps became the first American to own and occupy land in the city. Another early settler of San Carlos was Nathanial Brittan. Brittan developed properties between Brittan Avenue and Pulgas Creek in the late 1800s. He helped establish water wells and also granted the Southern Pacific right-of-way for a second set of railroad tracks across his property.

The citizens of San Carlos voted to incorporate o n July 1, 1925. Frederick Drake, known as the “Father of San Carlos,” continued to promote the town and coined the motto “The City of Good Living.” Drake also founded the San Carlos Enquirer (now the Independent newspaper). He was a key organizer of nearby Sequoia High School and established the San Carlos Chamber of Commerce in 1926.

In 1940, San Carlos experienced its first big spurt in population and grew to 3,520 residents. In 1944, Dalmo Victor established the city’s first large electronics plant, followed soon after by Eitel McCullough, a vacuum tubes manufacturing firm.

Establishment of these two firms contributed to the quadrupling of the San Carlos population in the decade after 1940. In 1950, when the population was 14,371, the City boasted a total of 89 industries, wholesalers, manufacture rs, and distributors in a variety of commodities from electronics to cosmetics. By 1958, the electronics industry comprised a substantial segment of the city’s industrial area.

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Early in its history, the City of San Carlos adopted the motto “City of Good Living.” That phrase stuck and is still used daily. With an ideal climate, charming neighborhoods, a thriving business/industrial district, and a small airport adjoining a commercial area, San Carlos continually attracts new residents and businesses.

Government Services

The City of San Carlos provides government services to the San Carlos community. The members of the City Council serve as the policy -making body. City voters elect five Council members to staggered four-year terms. The City Council meets regularly on the second and fourth Mondays of each month at 7:00 p.m. in the Council Chambers at 600 Elm Street and may call additional special meetings. These meetings are televised on the City’s government access station, Comcast Channel 27, and Uverse Channel 99. All meetings of the City Council, the Planning Commission, and other City committees are open to the public , except when certain personnel matters and legal items are discussed.

The City Council appoint s members to five commissions, one advisory board, and one advisory council to advise it on matters of special interest:

• Parks, Recreation & Culture Commission
• Planning and Transportation Commission
• Museum of San Carlos History
• Residential Design Review Committee
• Economic Development Advisory Commission
• Youth Advisory Council

For additional information regarding each advisory commission, please refer to the San Carlos City Roster, available at the City Clerk’s Office , by calling (650) 802-4222, or on the City’s website at www.cityofsancarlos.org.

Population

The City of San Carlos has grown at a constant pace since its incorporation in 1925. In the 1950s the city had the reputation as the West’s fastest growing town. The population briefly dipped in the 1970s but rose steadily in subsequent years. The 2022 California Department of Finance estimates that 29,837 people currently reside in San Carlos. The Association of Bay Area Governments (ABAG) projects that the population in San Carlos will grow to 34,940 by 2040, representing a 17% increase from today. As the population increases, it is important that there are enough jobs, housing, and public services to support growth.

In general, San Carlos residents are older,
have a higher household income , and a
higher chance of being employed than
people in other parts of San Mateo County.

As of 2022, the median age in San Carlos
was 40.7, slightly older than the median
age in San Mateo County of 39.8 and the
Bay Area median age of 38. 3. As the
population ages, it is likely that the need for
housing and services for seniors will
increase.

35 37
39 41
43 San Carlos San Mateo County San Francisco County
2022 Median Age in San Carlos, San Mateo
County, and SF County
Source: U.S. Census Bureau

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Economic Data

According to the April 2023 report
from the California Employment
Development Department (EDD), the
unadjusted unemployment rate for the
city increased from 2.3% in March
2022 to 2.8% in April 2023, which is an
increase of 0.5% over the past year .

The unemployment rate reflects that
our local economy remains to be
stable and well . The City of San
Carlos has lower unemployment rate,
compared with the rate of 4.5% for
California and 3. 4% for the nation
during the same period.

San Carlos residents also have a higher median household income than all of San Mateo County and the Bay Area. In 2021 , the median household income was $ 204,570. The 2021 median household income for San Mateo County and the County of San Francisco was $ 133,612 and $126,187 , respectively.

A surge in mortgage interest rates and a shortage of homes for sale suppressed California home sales in April, while the statewide median home price climbed above the $800,000 level for the first time in six months, increasing 3% from $791,490 in March to $814,340. According to data from the California Association of Realtors, the median price of a single- family home in San Mateo County increased slightly from $1.86 million in March 2023 to $1.97 million in April 2023. This represents a decrease of 18%, as compared with the median sales prices of $2.4 million from the same period a year ago. San Mateo’s neighboring counties, San Francisco ($1. 58 million) and Santa Clara ($1. 8 million) median home prices also dropped by 23% and 8.6% respectively, as compared a year ago.

In San Carlos, the median price of a single-family home decreased by $252,750 from $1,869,500 to $1,616,750 from the same period a year ago. The drop in median price from last year was due partly to the strong price surge in early 2022 when homebuyers rushed into the market to take advantage of low rates before the Federal Reserve began aggressively raising rates. A surge in borrowing costs also contributed to the market weakness.

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Statewide
San Francisco
San Carlos
Santa Clara
San Mateo
April 2023 Median Sold Price of Existing
Single-Family Homes
Source: California Association of Realtors
Source: California Employment Development Department

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Culture & Recreation

In San Carlos there are two museums, 12 churches, a modern library, a youth center, an adult community center, six newspapers, a TV station, a cable TV system, ten channel antenna reception (includes all major TV stations), eight financial institutions, 14 parks and eight playgrounds. San Carlos is a short distance from major golf courses, the Pacific Ocean, state parks, camping and other recreational and cultural destinations.

Other Statistics

Source: City Business Registration Data

Average Temperature Rainfall

Period Min. Max Inches
January 44.0 59.0 0.0
April 50.0 68.0 1.1
July 63.0 86.0 0.0
October 57.0 88.0 0.9
Yearly 53.5 75.3 9.5
Source: Weather Spark
Ethnic Breakdown

2022 2019

White 67.30% 67.90%

Asian 18.40% 16.40%

Hispanic 9.50% 8.90%

Black 0.70% 0.70%

Other 4.10% 6.10%
Source: U.S. Census Bureau
2022 Top Ten Employers in San Carlos

Number of
Employer Employees Products/Services

Natera Inc 934 Lab Services
Pacific Gas & Electric Co 323 Utilities
The Home Depot 291 Retail
Check Point Software Tech Inc 225 Information Technology Delta Star 214 Manufacturing
Chemocentryx, Inc 182 Biopharmaceutical
Joby Aero Inc 170 Transportation Service
Allakos Inc 163 Biotechnology
Atreca Inc 140 Biopharmaceutical
Though Stream 132 Software Development

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Source: San Mateo County Assessor 2012/13-2021/22 Combined Tax Rolls

Top Ten Property Tax Payers
Prior Year and Ten Years Ago

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The Top Ten Amazing Facts About the City of San Carlos

1. Famous people from San Carlos include Kathryn Bigelow (Film writer and director, winner of Academy Award
Best Director in 2010, The Hurt Locker), Dana Carvey
(Actor/Comedian, Saturday Night Live, Wayne’s World),
Rex J. Walheim (Astronaut on Space Shuttle Atlantis), Barry Bonds (San Francisco Giants, All-Time Home Run Record
Holder), and Brad Lewis (Producer, winner of Academy
Award Best Animated Film in 2007 – Ratatouille).

2. From 1921 – 1922, San Carlos was home to car racing.

The Greater San Francisco Speedway was a mile-and-
one-quarter board track located on 140 acres between
McCue Street on the north and Brittan Avenue on the
south between Old County and Industrial Roads. The
track had a 38-degree bank, and racers could reach
death-defying speeds of more than 110 miles per hour.

The first race was on December 11, 1921, with a $25,000 purse.

3. From 1942 – 1944, the U.S. Army came to San
Carlos. H and H Ranch (at the top of today’s
Club and Crestview Drives) was used as the U.S.

Army War Dog Reception and Training Center.

Approximately 4,500 dogs were trained at the
facility and 1,200 could be accommodated at
any one time.

4. The Chicken’s Ball of San Carlos was first
performed in 1940 and raised $325 for the public
schools in San Carlos. The Chicken’s Ball is a biennial fund-raiser for the school district and was originally designed like the 1900s-era San Francisco Barbary Coast saloon shows. No one, not even reporters, knows what will be in the show prior to opening night.

5. In 1964, the Circle Star Theatre opened at 1800 Industrial Road.

Billed as the “Theatre of Tomorrow” the Circle Star was a theater in the round featuring a revolving circular stage with seating no further than 50 feet away from the stage. Many famous artists performed at Circle Star including: Frank Sinatra; Barry Manilow; Dionne Warwick; Sonny and Cher; Al Green; and the Carpenters.

6. Elected in 2002, the first female governor of Michigan, Jennifer Mulhern Granholm, served as Miss San Carlos in 1977.

7. In 1988, a chess match was held over the phone between Neville Arroues, a resident of San Carlos, and a 14-year-old Jamie

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Galatas, a resident of San Carlos’ sister city Croydon, Australia. The match was the first event of the cities’ cultural exchange program.

8. Concerts in the park actually began in 1939 following construction of the Burton Park Amphitheater. The Amphitheater was
removed in the late 1990’s when the San
Carlos Youth Center was built.

9. In 1999, the San Carlos Youth Center
opened. Many children were involved in
the project during construction and signed
the building’s beams as a form of time
capsule for future generations to find.

10. San Carlos was long inhabited by the Ohlone Indians. In the late 1800s, settlers began to develop properties between Brittan Avenue and Pulgas Creek. Citizens of San Carlos finally voted to incorporate the city on July 1, 1925. In July 2025, the City will turn 100 and will be having its centennial celebration.

S o u r c e : Images of America – San Carlos; Veronico, Nicholas and Betty

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COMMUNITY SATISFACTION SURVEY – 2023 Results

Providing San Carlos with high- quality services and facilities to its residents in an equitable, sustainable, transparent, responsive, and friendly manner to foster an inclusive, safe, and healthy community now and in the future is the mission statement of the City of San Carlos. To ensure the City is accomplishing this mission, the City conducts two different community surveys. The first type of survey, and the focus of this report, is a Citizen Opinion Survey, which is conducted every two years and serves as a performance measurement tool to understand residents’ needs and priorities and measure how well the City is performing. The second type of survey, is the Community Characteristics Survey, and was last conducted in 2022. The Community Characteristics Survey is designed to provide the City with a better understanding of the San Carlos community itself, including its priorities and lifestyles.

The 2023 Citizen Opinion Survey is completed, and the results are provided in a comprehensive report, available at https://www.ci tyofsancarlos.org/residents/community-surveys. The survey was conducted by True North Research, an experienced and quality team who has conducted these surveys for the City since 2012. This latest survey was conducted during the month of April 2023 with 721 respondents.

Some of the key results of the 2023 survey include:
• Compared with 2021, community satisfaction increased in the following areas:
 Percent of residents who perceived that the City manages its finances well increased to 79.8% in 2023 from 78.6% in 2021.
 Percent of residents who indicated that they trust the City increased to 80.9% in 2023 from 77.7% in 2021.
 Percent of residents who perceived City staff to be professional increased to

93.5% in 2023 from 88.7% in 2021.
 Percent of residents who stated that they are satisfied with the C ity’s communications efforts increased to 84% in 2023 from 82.4% in 2021.  Percent of residents who expressed that they are satisfied with the City’s efforts to provide municipal services increased to 82.7% in 2023 from 82.1% in 2021.

• Per Table 3 on page 16 of the 2023 Report, ”Satisfaction with Service by Study Year,” respondents expressed statistically significant increases in satisfaction with the City’s efforts to reduce traffic congestion on City streets (+7%) and provide more public parking downtown (+6%) between 2021 and 2023, whereas satisfaction with the City’s efforts to maintain storm drains, sewers, and creeks ( -25%) and maintain a low crime rate ( -5%) declined during the same period.” A change in opinion is considered “statistically significant” when the surveyor can be 95% confident that the differences reflect an actual change in public opinion between the two studies.

• Per Figure 8 on page 13 of the 2023 Report, “Importance of Services,” “Providing fire protection, prevention and emergency medical services” was listed as #1 in 2021 and 2023. “Maintaining storm drains, sewers, and creeks” rose to #2 in 2023 from #7 in 2021. “Provide affordable housing” and “provide more public parking downtown” remained at bottom of the list both years.

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• Regarding the City’s communication efforts, page 7 of the 2023 Report states, “Whereas many cities have witnessed a significant decline in satisfaction with city -resident communications over the past decade, San Carlos has managed to keep the overall satisfaction level between 82% and 85% dating back to the first survey in 2014, with 2023’s 84% placing in the upper end of the range. The fact that San Carlos residents primarily rely on city-sponsored sources of information to find out about San Carlos news, events, and programming— including City newsletters, the City’s website, and email—is undoubtedly one of the reasons for this stability in satisfaction over the past nine years.”

• Per Table 1 on page 10, “Quality of Life,” “Limiting growth and development” continues to be one of the top recommended improvements to improve the quality of life in San Carlos since 2016.

• Per Figure 31 on page 37, “Funding Priorities,” of the 13 funding priorities, infrastructure and emergency services took the top five spots. To contrast, “improve network of trails” ranked 10 and “housing programs” ranked 11. 7.

• Per Figure 33 on page 40, “Recreational Amenities,” 62.7% of respondents felt there were not enough swimming pools in the City and more respondent felt there were not enough volleyball courts and pickleball courts, than tennis courts.

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CITY OF SAN CARLOS

FINANCIAL POLICIES

The following Financial Policies have been established to ensure that the City’s finances are managed in a manner that will:

• Continue to provide for the delivery of quality services; • Maintain and enhance service delivery as the community grows in accordance with the General Plan;
• Guarantee a balanced budget assuring that the City is always living within its means; and • Establish reserves necessary to meet known and unknown future obligations.

To achieve these goals, the following Financial Policies are presented that include General Policies; Revenue Policies; Cost of Service Policies; Reserves and Fund Balance Policies; Expenditure and Budget Policies; Capital Improvement Policies; Fixed Assets and Infrastructure Asset Policies; Investment Policy and Debt Management Policy.

A. GENERAL POLICIES

1) We will manage our financial assets in a sound and prudent manner. 2) We will maintain sound financial practices in accordance with State law. 3) We will direct the City’s financial resources toward meeting our long- term goals as identified by Council through the Strategic Planning and Team Building Retreat process. 4) We will manage and develop programs to ensure our long- term ability to pay all the costs necessary to provide the level and quality of service required by our citizens. 5) We will maintain accounting systems in conformance with generally accepted accounting principles. The financial records will be audited annually by an independent auditing firm.
6) We will establish and maintain investment policies in accordance with State laws in which the major goals are safety and liquidity of investments, above yield.

B. REVENUE POLICIES

1) We will strive to maintain a diversified and stable revenue base that is not overly dependent on any land use, major taxpayer, revenue type, restricted revenue, or external revenue.

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2) We will aggressively pursue revenue collection and auditing to assure that moneys due are accurately received in a timely manner.
3) We will seek Federal and State grants and reimbursements for costs whenever possible. 4) We will investigate potential new revenue sources.
5) We will work proactively with the League of California Cities and local communities to monitor legislation that may impact the City financially. 6) We will avoid targeting revenues for specific purposes whenever possible. 7) We will impose user fees when appropriate.
8) We will adopt a user fee policy that establishes desired levels of cost recovery and determines the minimum frequency of user fee reviews.
9) We will maintain and further develop methods to track major revenue sources and evaluate financial trends.
10) We will establish methods to maximize the accuracy of revenue forecasts. 11) Revenues will be estimated using accepted standards and estimates provided by the State and other governmental agencies.

C. COST OF SERVICES POLICIES

1) Fees and charges for services will be determined based on the total direct and indirect cost of the activity, including administrative overhead and depreciation, where applicable. In certain circumstances, it may be appropriate to subsidize fees, where full cost recovery may be unrealistic.
2) We will recover the costs of new facilities and infrastructure necessitated by development, consistent with State law.
3) We will consider requiring large developments to prepare a fiscal analysis that will measure the direct and indirect costs of the project, as well as the benefits to the City. 4) Managers should be aware of the cos t of services and propose the most effective methodology for providing those services.

D. RESERVES AND FUND BALANCE POLICIES (per GASB 54)

1) We will work toward establishing, dedicating and maintaining reserves annually to meet known and estimated future obligations. The hierarchy followed to deplete these reserves is as follows: first unassigned fund balance will be depleted; second assigned fund balances will be deleted at discretion of the City Manager; and lastly committed fund balances will be depleted in accordance with item 3a(ii) or 3b(ii) below, and formal action of the City Council.
2) The Government Finance Officers Association (GFOA) has issued their best practice in determining the appropriate level of unrestricted fund balance in the General Fund to be at a minimum of no less than two months of regular general fund operating revenues or expenses which equates to approximately 17%. The GFOA definition of unrestricted fund balance includes three general categories: committed fund balance, assigned fund balance and unassigned fund balance. For the City’s purpose, we will include committed and assigned balances when reviewing the reserve percentages. The total of these two categories will be maintained at or above the GFOA best practice amount.

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3) We will commit amounts of fund balance for specific purposes as determined by formal action of the City Council, which include but are not limited to committing fund balance reserves for the following:
a. Economic Uncertainties (as updated by Council June 13, 2016) i. General Fund committed fund balance for Economic Uncertainties equal to a minimum of 12.5% of the General Fund expenditures with a target of increasing to 20% of General Fund expenditures.
ii. Once established, appropriations from the Economic Uncertainties fund balance commitment can only be made by formal action of the City Council.

Generally, appropriations and access to these funds will be reserved for emergency situations. Examples of such emergencies include, but are not limited to: catastrophic disaster (declared by Governor); budgeted revenue taken by another government entity; or a more than 5% drop in projected revenue to the General Fund.
b. Strategic Property Acquisitions (as approved by Council October 25, 2010) i. General Fund committed fund balance for Strategic Property Acquisitions accumulates funds from the proceeds of future sales of City properties, as directed by the City Manager or City Council.
ii. Once established, appropriations from the Strategic Property Acquisitions fund balance commitment can only be made by formal action of the City Council. Generally, appropriations and access to these funds will be reserved for funding strategic property acquisitions by the City. c. Equipment and Vehicle Replacement Reserves
i. A Replacement Fund will be maintained as a separate fund for budgetary purposes to fund the replacement costs of existing non- sewer-related vehicles, major equipment and information technology items when they reach the end of their useful liv es. The sewer -related items will be maintained in the Wastewater Fund. The Replacement Fund will be analyzed by staff at least annually as part of the budget update process, for changes in assets, useful lives, estimated replacement costs and appropriate funding levels. This fund is to be maintained at a level sufficient to fund 100% of the assets, based on estimated replacement costs and useful lives.

4) We will assign amounts of fund balance for specific purposes as determined by City Manager recommendation, as delegated by formal action of the City Council, which include but are not limited to assigning fund balance reserves for the following:
a. Liability insurance.
b. State Budget Contingencies.
c. Undesignated litigation.
d. Replacement of facilities and infrastructure.
e. Continuing appropriations (encumbrances and projects carried over from a prior year to the new fiscal year).
f. Debt service for future debt obligations/payments.

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E. EXPENDITURE AND BUDGET POLICIES

1) The operating budget will be prepared to fund current year expenditures with current year revenue. Surplus fund balances may be used to increase fund balance reserves, fund Capital Improvement Projects or be carried forward to fund future years’ operating budgets when necessary to stabilize services and fund capital outlay. 2) We will assume normal inflationary growth in accordance with the consumer price index for operating expenses.
3) We will assume personnel costs based on current Memoranda of Understanding in effect at the time.
4) Any new or expanded programs will be required to identify new funding sources and/or off-setting reductions in expenditures in other programs. 5) We will deliver service in the most cost effective manner. 6) The budget will state the objectives of each of the operating programs. 7) The budget will fully account for and apportion all costs, fees and General Fund transfers associated with Special Revenue and Enterprise Funds.
8) All budget transfers require the approval of the City Manager or designee. However, transfers of appropriations that increase the total appropriations of a fund must be approved by the City Council.
9) We will maintain a long-range fiscal perspective through the use of a biennial operating budget, a five-year capital improvement program and a five-year financial forecast. 10) The biennial budget will be adopted by Resolution of the City Council by July 1 st every other year.
11) A mid-cycle budget status report will be prepared and presented to the City Council in the spring of the first year of the budget that will include projections to year-end and any adjustments required for the second year of the biennial budget. 12) Staff will provide a written report to Council quarterly on the City’s General Fund revenues and expenditures.

F. CAPITAL IMPROVEMENT POLICIES

1) We will construct capital improvements in accordance with an adopted capital improvement program.
2) We will develop a five -year plan for capital improvements to be reviewed and, if necessary, updated as part of the budget proces s. Future capital expenditures will be projected for a five- year period based on changes in the community population, real estate development or replacement of infrastructure.
3) We will coordinate preparation of the Capital Improvement Budget with preparation of the Biennial Operating Budget. Future operating costs associated with new capital improvements will be projected and included in Operating Budget forecasts. 4) We will identify the estimated costs and potential funding sources for each proposed capital project before it is submitted to Council for approval. 5) We will attempt to determine the least costly financing method for all new projects.

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G. FIXED ASSET AND INFRASTRUCTURE ASSET POLICIES

1) We will capitalize all assets with a cost greater than $5,000 and a useful life of more than one year.
2) All fixed assets and infrastructure assets are assigned an asset number that is recorded in the fixed asset software. Where applicable, the asset number is affixed or tagged to the asset.
3) Infrastructure related capital projects will be capitalized as construction in progress until completed. Costs to be capitalized include direct costs such as labor, materials and transportation, indirect costs such as engineering and construction management and ancillary costs such as construction period interest.
4) Repairs and maintenance to infrastructure assets will generally not be subject to capitalization unless the repair extends the useful life of the asset. 5) A physical inventory process will be initiated by staff when appropriate.

In addition, the City has three other financial policies that are reviewed and approved separately by the City Council. The three other financial policies are:

1) Investment Policy – last adopted by the City Council on August 22, 2022 via Resolution 2022-091;

2) Debt Management Policy - last adopted by the City Council on January 22, 2018 via Resolution 2018-010; and

3) Debt Disclosure Procedure Policy - last adopted by the City Council on May 28, 2019 via Resolution 2019-037.

These policies can be found on our website in the following location:
https://www.cityofsancarlos.org/government/departments/administrative-services/finance/budget- financial-reports-policies.

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CITY OF SAN CARLOS

DEBT MANAGEMENT POLICY

ADOPTED MAY 22, 2023
RESOLUTION 2023-058

This Debt Management Policy (this “Policy”) establishes the parameters within which debt may be issued and administered by the City of San Carlos, the San Carlos Housing Authority and each other entity for which the City Council of the City serves as the governing body, other than the Successor Agency to the San Carlos Redevelopment Agency. The Successor Agency to the San Carlos Redevelopment Agency has adopted a separate debt management policy.

A. PURPOSE

The purpose of this Policy is to establish guidelines and parameters for the effective governance, management and administration of debt and other financing obligations issued by the City.

As used in this Policy, “City” shall mean the City of San Carlos and/or its related entities, as the context may require. As used in this Policy, “debt” shall be interpreted broadly to mean bonds, notes, certificates of participation, financing leases, or other financing obligations, but the use of such term in this Policy shall be solely for convenience and shall not be interpreted to characterize any such obligation as an indebtedness or debt within the meaning of any constitutional debt limitation where the substance and terms of the obligation comport with exceptions thereto. This Policy shall apply to all debt issued or sold to third party lenders or investors and does not pertain to City internal inter-fund borrowings or any employee benefit obligations.

B. BACKGROUND

The City and its related entities are committed to fiscal sustainability by employing long- term financial planning efforts, maintaining appropriate reserves levels and employing prudent practices in governance, management, budget administration and financial reporting.

Debt levels and their related annual costs are important long- term obligations that must be managed within available resources. A disciplined thoughtful approach to debt management includes policies that provide guidelines for the City and i ts related entities to manage their collective debt program in line with those resources. Therefore, the objective of this policy is to

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provide written guidelines and restrictions concerning the amount and type of debt and other financing obligations issued by the City and its related entities and the ongoing management of the debt portfolio.

This Policy is intended to improve the quality of decisions, assist with the determination of the structure of debt issuance, identify policy goals, and demonstrate a commitment to long- term financial planning, including a multi-year capital plan. Adherence to a local debt policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner.

C. CONDITIONS AND PURPOSES OF DEBT ISSUANCE

1. Acceptable Conditions for the Use of Debt

The City believes that prudent amounts of debt can be an equitable and cost - effective means of financing major infrastructure and capital asset and project needs of the City. Debt will be considered to finance such projects if:

a) The project has been, or will be, included in the City’s capital improvement plan or has otherwise been coordinated with the City’s planning goals and objectives.

b) The project can be financed with debt not exceeding the term specified in Section E.1 of this Policy, to assure that long- term debt is not issued to finance projects with a short useful life.

c) It is the most cost-effective funding means available to the City, taking into account cash flow needs and other funding alternatives.

d) It is fiscally prudent and meets the guidelines of this Policy. Any consideration of debt financing shall consider financial alternatives, including pay-as-you-go funding, proceeds derived from development or redevelopment of existing land and capital assets owned by the City, and use of existing or future cash reserves, or combinations thereof.

e) The project to be financed will provide benefit to constituents over multiple years.

2. Acceptable Uses of Debt and Proceeds of Debt

The primary purpose of debt is to finance one of the following:

a) The City will consider long -term financing for the acquisition, substantial refurbishment, replacement, or expansion of capital assets (including but not limited to land improvements, infrastructure projects, equipment and water rights) for the following purposes:

i. Acquisition and or improvement of land, right-of-way or long-term easements.

ii. Acquisition of a capital asset with a useful life of three or more years.

iii. Construction or reconstruction of a facility.

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iv. Although not the primary purpose of the financing effort, project reimbursables that include project planning design, engineering and other preconstruction efforts; project -associated furniture fixtures and equipment; capitalized interest, original issue discount, underwriter’s discount, and other costs of issuance.

b) Refunding, refinancing, or restructuring debt (including without limitation the refinancing or advance funding of City pension obligations), subject to refunding objectives and parameters discussed in Section G.

3. Short-Term Debt

a) In the event of temporary shortfalls in cash flow for City operation costs due to timing of receipt of revenues and the lack of cash on hand to cover the temporary deficit, the City may consider interim or cash flow financing, such as anticipation notes. In compliance with applicable state law, any such notes shall be payable either (i) not later than the last day of the fiscal year in which it is issued, or (ii) during the fiscal year succeeding the fiscal year in which issued, but in no event later than 15 months after the date of issue, and only if such note is payable only from revenue received or accrued during the fiscal year in which it was issued.

b) Short-term debt may be used to finance short-lived capital projects, such as lease purchase financing or equipment.

c) Prior to issuance of any short-term debt, a reliable revenue source shall be identified for repayment of the debt.

4. Internal Control Procedures Concerning Use of Proceeds of Debt

One of the City’s priorities in the management of debt is to assure that the proceeds of the debt will be directed to the intended use for which the debt has been issued.

In furtherance of this priority, the following procedures shall apply:

a) The Administrative Services Department – Finance Division (Finance Division) shall retain, for the applicable period specified in Section H.4. of this Policy, a copy of each annual report filed with the California Debt and Investment Advisory Commission (“ CDIAC”) pursuant to Section 8855(k) of the California Government Code concerning (1) debt authorized during the applicable reporting period (whether issued or not), (2) debt outstanding during the reporting period, and (3) the use during the reporting peri od of proceeds of issued debt.

b) In connection with the preparation of each annual report to be filed with CDIAC pursuant to Section 8855(k) of the California Government Code, the Finance Division shall keep a record of the original intended use for which the debt has been issued, and indicate whether the proceeds spent during the applicable one- year reporting period for such annual report comport with the intended use (at the time of original issuance or as modified pursuant to the following sentence). If a change in intended use has been authorized subsequent to the original issuance of the debt, the

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Finance Division shall indicate in the record when the change in use was authorized and whether the City Council, City Manager, or another City official has authorized the change in intended use. The Administrative Services Director or his or her designee shall report apparent deviations from the intended use in debt proceeds to the City Manager for further discussion, and if the City Manager determines appropriate in consultation with legal counsel (which may be bond counsel, if applicable, or the City Attorney), to the City Council.

c) If the debt has been issued to finance a capital project and the project timeline or scope of project has changed in a way that all or a portion of the debt proceeds cannot be expended on the original project, the Administrative Services Director shall consult with the City Manager and legal counsel (which may be bond counsel, if applicable, or the City Attorney) as to available alternatives for the expenditure of the remaining debt proceeds (including prepayment of the debt).

d) Financings on behalf of other entities - The City may also find it beneficial to issue debt on behalf of other governmental agencies, such as Silicon Valley Clean Water (SVCW), to further the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the f inancial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

D. TYPE OF FINANCING INSTRUMENTS; AFFORDABILITY AND PLANNING POLICIES

The City recognizes that there are numerous types of financing structures and funding sources available, each with specific benefits, risks, and costs. All potential funding sources are reviewed by management within the context of this Policy and the overall portfolio to ensure that any financial product or structure is consistent with the City’s objectives. Regardless of what financing structure(s) is utilized, due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, and analysis of the impact on City creditworthiness and debt affordability and capacity.

Prior to the issuance of debt or other financing obligations to finance a project, the City will carefully consider the overall long-term affordability of the proposed debt issuance. The City shall not assume more debt or other financing obligations without conducting an objective analysis of the City’s ability to assume and support additional debt service payments. The City will consider its long-term revenue and expenditure trends, the impact on operational flexibility and the overall debt burden on the taxpayers. The evaluation process shall include a review of generally accepted measures of affordability and will strive to achieve and or maintain debt levels consistent with its current operating and capital needs.

1. General Fund-Supported Debt – General Fund Supported Debt generally include Certificates of Participation (“COPs”) and Lease Revenue Bonds (“LRBs”) which are lease obligations that are secured by an installment sale or by a lease -back arrangement between the City and another public entity. Typically, the City appropriates available General Fund moneys to pay the lease payments to the other public entity and, in turn, the public entity uses such lease payments received to pay debt service on the bonds or Certificates of Participation.

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General Fund Supported Debt may also include bonds issued to refund obligations imposed by law, such as judgments (judgment obligation bonds (“JOBs”)) or unfunded accrued actuarial liabilities for pension plans (pension obligation bonds (“POBs”)).

These obligations do not constitute indebtedness under the state constitutional debt limitation and, therefore, are not subject to voter approval.

Payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is available, and lease payments may not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule. The lessee (the City) is obligated to include in its Annual Budget and appropriate the rental payments that are due and payable during each fiscal year the lessee has use of the leased property.

The City should strive to maintain its net General Fund-backed annual debt service at or less than [8%] of available annually budgeted revenue. This ratio is defined as the City’s annual debt service requirements on General Fund Supported Debt (including, but not limited to, COPs, LRBs, JOBs, and POBs) compared to total annual General Fund Revenues net of inter-fund transfers out.

2. Revenue Bonds – Long-term obligations payable solely from specific special fund sources, in general, are not subject to a debt limitation. Examples of such long- term obligations include those which are payable from a special fund consisting of restricted revenues or user fees (Enterprise Revenues) and revenues derived from the system of which the project being funded is a part.

In determining the affordability of proposed revenue bonds, the City will perform an analysis comparing projected annual net revenues (exclusive of depreciation which is a non-cash related expense) to estimated annual debt service. The City should strive to maintain a coverage ratio of 110% (or such higher coverage ratio included in the City’s existing financing documents), using historical and/or projected net revenues to cover annual debt service for bonds. To the extent necessary, the City shall undertake proceedings for a rate increase to cover both operations and debt service costs, and create debt service reserve funds to maintain the required coverage ratio.

The City may enter into agreements and other long- term obligations supporting revenue bonds issued by joint powers authorities of whom the City is a member, including, for example, Silicon Valley Clean Water (SVCW) and South Bayside Waste Management Authority (SBWMA).

3. Special Districts Financing – Special districts primarily consist of Community Facilities Districts (“CFDs”) and 1913/1915 Act Assessment Districts (“Assessment Districts”). The City will consider requests for special district formation and debt issuance when such requests address a public need or provide a public benefit.

Each application will be considered on a case by case basis, and the Finance Department may not recommend a financing if it is determined that the financing could be detrimental to the debt position or the best interests of the City.

4. General Obligation Bonds – Notwithstanding their name, General Obligation Bonds are not general obligations of the City, but instead they are payable from

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and secured by a dedicated, voter -approved property tax override rate ( i.e., a property tax in excess of the 1% basic ad valorem pro perty tax rate which has received the approving two- thirds vote of the City’s electorate). While the dedicated revenue stream to repay the debt makes General Obligation Bonds an attractive option, additional considerations for this financing mechanism incl ude the time and expense of an election, the possibility that the electorate will not approve the ballot measure, and the legal bonding capacity limit of the assessed value of all taxable property within the City. (At the time of the adoption of this Policy, the legal bonding capacity limit for a California general law city is 3.75% of the assessed value of all taxable property within the City.)

5. Tax Increment Financing – Tax increment financing is a financing method whereby a portion of ad valorem property taxes (commonly called the “tax increment”) that are allocated to an entity, such as a successor agency to redevelopment agency (Successor Agency), an enhanced infrastructure financing district (“EIFD”), a community revitalization and investment authority (CRIA) or an infrastructure and revitalization financing district (“IRFD”), and the entity is permitted to incur debt payable from and secured by the tax increment revenues.

While tax increment debt for redevelopment agencies and Successor Agencies is entitled to the benefits of Article XVI, Section 16, of the California Constitution, no similar provision exists for EIFDs, CRIAs and IRFDs at the time of adoption of this Policy. Therefore, when considering EIFD, CRIA or IRFD financing, or other types of tax increment financing which may be permitted by law in the future, debt limit concerns should be analyzed with respect to the proposed structure and taken into account in determining the practical viability of the proposed financing.

6. Conduit Debt – Conduit financing provides for the issuance of securities by a government agency to finance a project of a third party, such as a non- profit organization or other private entity. The City may sponsor conduit financings for those activities that have a general public purpose and are consistent with the City’s overall service and policy objectives. Unless a compelling public policy rationale exists, such conduit financings will not in any way pledge the City’s faith and credit.

7. Short-Term and Other Debt – Tax and revenue anticipation notes, bond or grant anticipation notes, etc.

E. STRUCTURE OF DEBT

1. Term of Debt – In keeping with Internal Revenue Service regulations for tax - exempt financing obligations, the weighted average maturity of the debt should not exceed 120 percent of the weighted average economic life of the facilities or projects to be financed, unless specific circumstances exist that would mitigate the extension of time to repay the debt and it would not cause the City to violate any covenants to maintain the tax-exempt status of such debt, if applicable.

2. Rapidity of Debt Payment; Level Payment – To the extent practical, bonds will be amortized on a level repayment basis, and revenue bonds will be amortized on a level repayment basis considering the forecasted available pledged revenues to achieve the lowest rates possible. Bond repayments should not increase on an annual basis in excess of 2% without a dedicated and supporting revenue funding stream.

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Accelerated repayment schedules reduce debt burden faster and reduce total borrowing costs. The Administrative Services Department will amortize debt through the most financially advantageous debt structure and to the extent possible, match the City’s projected cash flow to the anticipated debt service payments. “Backloading” of debt service will be considered only when one or more of the following occur:

a) Natural disasters or extraordinary or unanticipated external factors make payments on the debt in early years prohibitive.
b) The benefits derived from the debt issuance can clearly be demonstrated to be greater in the future than in the present.

c) Such structuring i s beneficial to the aggregate overall debt payment schedule or achieves measurable interest savings.

d) Such structuring will allow debt service to more closely match projected revenues, whether due to lower project revenues during the early years of the project’s operation, inflation escalators in the enterprise user rates, or other quantifiable reasons.

3. Serial Bonds, Term Bonds, and Capital Appreciation Bonds – For each issuance, the City will select serial bonds or term bonds, or both. On the occasions where circumstances warrant, Capital Appreciation Bonds (CABs) may be used.

The decision to use term, serial, or CAB bonds is driven based on market conditions.

4. Reserve Funds – To the extent that the use of available City moneys to fund a reserve fund provides an economic benefit that offsets the cost of financing the reserve fund from bond proceeds (as determined by the Administrative Services Director in consultation with the City’s municipal advisor and, if applicable, the underwriter for the bonds), the City may use legally permitted moneys to fund a reserve fund (in cash or through the purchase of a debt service reserve surety bond or insurance policy) for the proposed bonds, up to the maximum amount permitted by applicable law or regulation. Typically, this amount is equal to the least of: (i) maximum annual debt service on the bonds, (ii) 10% of the principal amount of the bonds (or 10% of the sale proceeds of the bonds, within the meaning of Section 148 of the federal Internal Revenue Code) , or (iii) 125% of average annual debt service on the bonds.

F. USE OF ALTERNATIVE DEBT INSTRUMENTS

Alternative debt instruments and financing structures sometimes can provide a lower cost of borrowing in the short run, but may involve greater medium-term or long-term risk. Due diligence review must be performed for each transaction, including the quantification of potential risks and benefits, analysis of the impact on City creditworthiness and debt affordability and capacity, and an evaluation of the ability of the City to withstand the medium-term or long-term risk attendant to alternative debt instruments, including the feasibility of exit strategies.

1. Variable Rate Debt

Variable rate debt affords the City the potential to achieve a lower cost debt depending on market conditions. However, the City will not seek the use of variable-rate debt due to the potential risks of such instruments.

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2. Derivatives

The City will not use derivative products for any transaction, nor will the City allow any financing structure to create current or future exposure to the risks of derivatives.

G. REFUNDING GUIDELINES

The Administrative Services Director shall monitor all outstanding City debt obligations for potential refinancing opportunities. The City will consider refinancing of outstanding debt to achieve annual savings or to refinance a bullet payment or spike in debt service. Except for instances in which a bullet payment or spike in debt service is being refinanced, absent a compelling reason or financial benefit to the City, any refinancing should not result in an increase to the weighted average life of the refinanced debt.

Except for instances in which a bullet payment or spike in debt service is being refinanced, the City will generally seek to achieve debt service savings which, on a net present value basis, are at least 3% of the debt being refinanced. The net present val ue assessment shall factor in all costs, including issuance, escrow, and foregone interest earnings of any contributed funds on hand. Any potential refinancing shall additionally consider whether an alternative refinancing opportunity with higher savings is reasonably expected in the future. Refundings which produce a net present value savings of less than 3% will be considered on a case-by-case basis.

H. MARKET COMMUNICATION, ADMINISTRATION, AND REPORTING

1. Rating Agency Relations and Annual or Ongoing Surveillance – The Administrative Services Director shall be responsible for maintaining the City’s relationships with S&P Global Ratings, Fitch Ratings and Moody’s Investors Service, as applicable. These agencies’ rating criteria often change and the City cannot control the decisions made by any rating agency. However, for each debt issue that the City will seek a rating assignment, the City will strive to obtain and maintain the highest possible underlying, uninsured rating. In addition to general communication, the Administrative Services Director shall:

a) Ensure the rating agencies are provided updated financial statements of the City as they become publicly available.

b) Communicate with credit analysts at each agency as may be requested by the agencies.

c) Prior to each proposed new debt issuance, schedule meetings or conference calls with agency analysts and provide a thorough update on the City’s financial position, including the impacts of the pr oposed debt issuance.

2. Council Communication – The Administrative Services Director should report feedback from rating agencies, when and if available, regarding the City’s financial strengths and weaknesses and areas of concern relating to weaknesses as they pertain to maintaining the City’s existing credit ratings.

3. Continuing Disclosure Compliance – The City shall remain in compliance with Rule 15c2-12, promulgated by the Securities and Exchange Commission under

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the Securities Exchange Act of 1934, by filing (to the extent required by the applicable continuing disclosure undertaking) its annual financial statements and other financial and operating data for the benefit of its bondholders within 270 days of the close of the fiscal year, or by such other annual deadline required in any continuing disclosure agreement or certificate for any debt issue. The City shall maintain a log or file evidencing that all continuing disclosure filings have been made promptly.

4. Debt Issue Record-Keeping – A copy of all debt-related records shall be retained at the City’s offices. At minimum, these records shall include all official statements, bond legal documents/transcripts, resolutions, trustee statements, leases, and title reports for each City financing (to the extent available).

Such records shall be retained while any bonds of an issue are outstanding and during the three-year period following the final maturity or redemption of the bond issue or, if later, while any bonds that refund bonds of that original issue are outstanding and for the three year period following the final maturity or redemption date of the latest refunding bond issue.

5. Arbitrage Rebate – The use of bond proceeds and their investments must be monitored to ensure compliance with all arbitrage rebate requirements of the Internal Revenue Code and related Internal Revenue Service regulations, in keeping with the covenants of the City and/or related entity in the tax certificate for any federally tax- exempt financing. The Administrative Services Director shall ensure that all bond proceeds and investments are tracked in a manner which facilitates accurate calculation; and, if a rebate payment is due, such payment is made in a timely manner.

I. CREDIT RATINGS

The City will consider published ratings agency guidelines regarding best financial practices and guidelines for structuring its capital funding and debt strategies to maintain the highest possible credit ratings consistent with its current operating and capital needs.

J. SB 1029 COMPLIANCE

Senate Bill 1029, signed by Governor Brown on September 12, 2016, and enacted as Chapter 307, Statutes of 2016, requires issuers to adopt debt policies addressing each of the five items below:

i. The purposes for which the debt proceeds may be used.

Section C.2 (Acceptable Uses of Debt and Proceeds of Debt) and Section C.3 (Prohibited Use of Debt and Proceeds of Debt) address the purposes for which debt proceeds may be used.

ii. The types of debt that may be issued.

Section C.3 (Short -Term Debt), Section D (Types of Financing Instruments; Affordable and Planning Policies), Section E (Structure of Debt) and Section F (Use of Alternative Debt Instruments) are among the provisions that provide information regarding the types of debt that may be issued.

iii. The relationship of the debt to, and integration with, the issuer's capital

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improvement program or budget, if applicable.

Section C.1 (Acceptable Conditions for the Use of Debt) provides information regarding the relationship between the City's debt and Capital Improvement Program.

iv. Policy goals related to the issuer's planning goals and objectives.

As described in Section B (BACKGROUND), Section D (TYPES OF FINANCING; AFFORDABILITY AND PLANNING POLICIES) and other sections, this Policy has been adopted to assist with the City’s goal of maintaining fiscal sustainability and financial prudence.

v. The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use.

Section 4 (Internal Control Procedures Concerning Use of Proceeds of Debt) provides information regarding the City's internal control procedures designed to ensure that the proceeds of its debt issues are spent as intended.

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1 CITY OF SAN CARLOS AND THE SAN CARLOS SUCCESSOR AGENCY Debt Disclosure Procedure Policy
APPLICABLE CODES AND REGULATIONS:

Section 17 of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934, and regulations adopted by the Securities and Exchange Commission (“SEC”) under those acts, particularly “Rule 10b-5” under the 1934 Act.

PURPOSE:

These Debt Disclosure Procedures (the “Procedures”) memorialize and communicate procedures in connection with obligations, including notes, bonds, loans and other debt obligations, issued by or on behalf of the City of San Carlos and the San Carlos Successor Agency (the “City”), or for which the City supplies material information to potential purchasers of the obligations (such as bonds for Silicon Valley Clean Water), so as to ensure that the City continues to comply with all applicable disclosure obligations and requirements under the federal securities laws.

BACKGROUND:

The City may from time to time issue revenue bonds, notes, loans or other debt obligations or supply material information to potential purchasers of bonds, notes, loans or other debt obligations issued by other entities (such as Silicon Valley Clean Water) (collectively, “Obligations”) in order to fund or refund capital investments, other long-term programs and working capital needs . In offering Obligations to the public, and at other times when the City makes certain reports, the City must comply with the “anti -fraud rules” of federal securities laws. (“Anti -fraud rules” refers to Section 17 of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934, and regulations adopted by the Securities and Exchange Commission under those acts , particularly “Rule 10b-5” under the 1934 Act.)
The core requirement of these rules is that potential investors in Obligations must be provided with all “material” information relating to the offered Obligations. The information provided to investors must not contain any material misstatements, and or omit material information that would be necessary to provide to investors a complete and transparent description of the Obligations and the City ’s financial condition. In the context of the sale of securities, a fact is generally considered to be “material” if there is a substantial likelihood that a reasonable investor would consider it to be important in determining whether or not to purchase the securities being offered.

When Obligations are issued to the public, the two central disclosure documents that are prepared are a preliminary official statement (“POS”) and a final official statement (“OS”, and collectively with the POS, “Official Statement”). The Official Statement generally consists of : (i) the forepart that describes the specific transaction including maturity dates, interest rates, redemption provisions, the specific type of financing, the project and other matters particular to the financing; (ii) a section that provides information on the City ( the “ City Section”) ; and ( iii) various other appendices, including the City’s audited financial report, form of the proposed legal opinion and forms of continuing disclosure undertaking s of the City . Investors use the Official Statement as

one of their primary resources for making informed investment decisions regarding the Obligations.

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2 DISCLOSURE PROCEDURE:

When the City determines to issue Obligations (or participate in an offering of Obligations being undertaken by another entity), the City Manager requests the involved departments to commence preparation of the portions of the Official Statement (including particularly the City Section) for which they are responsible. While the general format and content of the Official Statement may not normally change substantially from offering to offering, except as necessary to reflect major events, the City Manager and other relevant City staff are responsible for reviewing and preparing or updating the portion of the Official Statement that is within their particular areas of knowledge.

Once the draft POS has been substantially updated, the entire draft POS is shared with the City Council for review and input before approval.

Members of the financing team, including Bond and Disclosure Counsel and a municipal advisor (the “Municipal Advisor”), assist staff in determining the materiality of any particular item and in the development of specific language in the City Section. Members of the financing team also assist the City in the development of a “big picture” overview of the City ’s financial condition, included in the City Section. This overview highlights particular areas of interest . Bond and Disclosure Counsel has a confidential, attorney -client relationship with officials and staff of the City.

The City Manager, Administrative Services Director, or a member of the financing team at the direction thereof, schedules one or more meetings or conference calls with the financing team (which may include City officials, City Attorney, Bond and Disclosure Counsel, the City’s Municipal Advisor (and the underwriters of the Obligations, and the underwriters’ counsel, if the proposed financing is being undertaken as a negotiated transaction)). New drafts of the forepart of the draft POS and the City Section are then circulated and discussed. Such communications may occur via electronic means rather than by meetings or conference calls. During this part of the process, there is substantial contact among City staff and other members of the financing team to discuss issues that may arise, determine the materiality of particular items and ascertain the prominence in which the items should be disclosed.

Prior to distributing a POS to potential investors, there is typically a formal conference call with City officials involved in the preparation of the POS and members of the financing team (and the underwriters and the underwriter s’ counsel, if the financing is a negotiated transaction) during which the POS is reviewed in its entirety to obtain final comments and to allow the underwriters (if the proposed financing is being undertaken as a negotiated transaction) , to ask questions of the City’s senior officials. This is referred to as a “due diligence” meeting.

A substantially final form of the POS is provi ded to the members of the City Council in advance of approval to afford such members an opportunity to review the POS, ask questions and make comments. The substantially final form of the POS is approved by the City Council, which generally authorizes certain senior staff to make additional corrections, changes and updates to the POS in consultation with the City Attorney and Bond and Disclosure Counsel.

At the time the POS is posted for review by potential investors, senior City officials execute certificates deeming certain portions of the POS complete (except for certain pricing terms) as required by SEC Rule 15c2-12.

Between the posting of the POS for review by potential investors and delivery of the final OS to the underwriter for redelivery to actual investors in the Obligations, any changes and developments will have been incorporated into the POS, including particularly the City Section, if

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3 required. If necessary, to reflect developments following publication of the POS or OS, as applicable, supplements will be prepared and published.

In connection with the closing of the transaction, one or more senior City officials execute certificates stating that certain portions of the OS, as of the date of each OS and as of the date of closing, do not contain any untrue statement of material fact or omit to state any material fact necessary to ensure the statements contained in the OS, in light of the circumstances under which they were made, are not misleading. The City Attorney also provides an opinion letter (generally addressed to the underwriter s) advising that information contained in the City Section, as applicable (or specified portions thereof) as of its date did not, and as of the date of the closing, does not contain any untrue statement of a material fact or omitted or omits to state any material fact necessary to ensure the statements therein, in light of the circumstances under which they were made, are not misleading. The City Attorney does not opine to the underwriters or to other third parties as to any financial, statistical, economic or demographic data or forecasts, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion and certain other matters that are customarily excluded. Bond and Disclosure Counsel also provides a negative assurance letter (addressed to the underwriters) with respect to the City Section. Bond and Disclosure Counsel does not give negative assurances to the underwriters or to other third parties as to any financial, statistical, economic or demographic data or forecasts, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, or information contained in appendices to the OS and certain other matters that are customarily excluded.

CITY SECTION:

The information contained in the City Section is developed by personnel under the direction of the City Manager, with the assistance of the financing team. In certain circumstances, additional officials will be involved, as necessary. The following principles govern the work of the respective staff that contribute information to the City Section:
• City staff members involved in the disclosure process are responsible for being familiar with their responsibilities under federal securities laws as described above. • City staff involved in the disclosure process should err on the side of raising issues when preparing or reviewing information for disclosure. Officials and staff are encouraged to consult the City Attorney and Bond and Disclosure Counsel if there are questions regarding whether an issue is material or not.
• Care should be taken not to shortcut or eliminate any steps outlined in the Procedures on an ad hoc basis. However, the Procedures are not necessarily intended to be a rigid list of procedural requirements, but instead to provide guidelines for disclosure review. If warranted, based on experience during financings or because of additional SEC pronouncements or other reasons, the City should consider revisions to the Procedures. • The pr ocess of updating the City Section from transaction to transaction should not be viewed as being limited to updating tables and numerical information. While it is not anticipated that there will be major changes in the form and content of the City Section at the time of each update, everyone involved in the process should consider the need for revisions in the form, content and tone of the sections for which they are responsible at the time of each update.
• The City must make sure that the staff involved in the disclosure process is of sufficient seniority such that it is reasonable to believe that, collectively, they are in possession of material information relating to the City, its operations and its finances.

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4 TRAINING:

Periodic training for City staff involved in the preparation of the Official Statement (including the City Section) is coordinated by the finance team and /or the Administrative Services Director .

These training sessions are provided to assist staff members involved in identifying relevant disclosure information to be included in the City Section. The training sessions also provide an overview of federal laws relating to disclosure, situations in which disclosure rules apply, the purpose of the Official Statement and the City Section, a description of previous SEC enforcement actions and a discussion of recent developments in the area of municipal disclosure. Attendees at the training sessions are provided the opportunity to ask questions of finance team members, including the City A ttorney, concerning disclosure obligations and are encouraged to contact members of the finance team at any time if they have questions.

CONTINUING DISCLOSURE REQUIREMENTS:

In connection with the issuance or execution and delivery of Obligations, the City has entered into (and may in the future enter into) contractual agreements (“Continuing Disclosure Certificates”) to provide its audited financial statements and notice of certain events relating to the Obligations specified in the Continuing Disclosure Certificates. The City must comply with the specific requirements of each Continuing Disclosure Certificate. The City’s Continuing Disclosure Certificates generally require that the annual reports be filed no later than nine months after the end of the City ’s fiscal year (currently March 31 of each year, based on a fiscal year ending on June 30), and listed event notices are generally required to be filed within 10 business days of their occurrence.

Specific events that require “ listed event” notices are set forth in each particular Continuing Disclosure Certificate. The SEC adopted amendments to SEC Rule 15c2-12, effective February 27, 2019, adding two new listed events, as detailed in Exhibit A attached hereto. Importantly, these new events apply only to Continuing Disclosure Certificates entered into by the City after the February 27, 2019 effective date of the amendments.

The City shall be responsible for preparing and filing the annual reports and listed event notices required pursuant to the Continuing Disclosure Certificates. Particular care shall be paid to the timely filing of any changes in credit ratings on Obligations (including changes in the credit ratings of insurers of particular Obligations).

In addition, the City Attorney, City Manager, or other City staff will provide written notice to the Administrative Services Director of any default, event of acceleration, termination event, modification of terms (only if material or may reflect financial difficulties), or other similar events (collectively, a “Potentially Reportable Event”) under any agreement or obligation to which the City is a party and that may be a “financial obligation” as discussed below. Such written notice should be provided by the City Attorney to the Administrative Services Director as soon as the City Attorney receives written notice by staff, consultants, or external parties of such event or receives written notice of such event so that the Administrative Services Director can determine, with the assistance of D isclosure Counsel, whether notice of such Potentially Reportable Event is required to be filed on the Electronic Municipal Market Access (EMMA) portal pursuant to the disclosure requirements of SEC Rule 15c2-12. If filing on EMMA is required, the filing is due within 10 business days of such Potentially Reportable Event to comply with the continuing disclosure undertaking for the various debt obligations of the City. As noted above, the new reporting

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5 obligations apply only to Continuing Disclosure Certificates entered into by the City after the February 27, 2019 effective date of the amendments to SEC Rule 15c2-12.

For the City’s obligations and for those that the City partakes, the City Attorney, City Manager, or other City staff will report to the Administrative Services Director the execution by the City of any agreement or other obligation that might constitute a “financial obligation” for purposes of SEC Rule 15c2- 12 and that is entered into after February 27 , 2019. Amendments to existing agreements or obligations with “financial obligation” that relate to covenants, events of default, remedies, priority rights, or other similar terms should be reported to the Administrative Services Director as soon as the City Attorney or such other senior staff is receives written notice by City staff, consultants, or external parties of such event or receives a written notice of such amendment requests. Notice to the Administrative Services Director is necessary so that the Administrative Services Director can determine, with the assistance of D isclosure Counsel, whether such agreement or other obligation constitutes a material “financial obligation” for purposes of SEC Rule 15c2-12. If such agreement or other obligation is determined to be a material “financial obligation” or a material amendment to a “financial obligation” described above, notice thereof would be required to be filed on EMMA within 10 business days of execution or incurrence. As noted above, the new reporti ng obligations apply only to Continuing Disclosure Certificates entered into by the City after the February 27, 2019 effective date of the amendments to SEC Rule 15c2-12.

The types of agreements or other obligations that could constitute “financial obligations” and that could need to be reported on EMMA are discussed in the memorandum from Jones Hall, which serves as B ond and disclosure Counsel to the City and the San Carlos Successor Agency, as well as Silicon Valley Clean Water, which is attached hereto as Exhibit B.

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Exhibit A
Listed Events in SEC Rule 15c2-12

The Administrative Services Director or his or her delegate should review this list routinely to determine whether any event has occurred that may require a filing with EMMA.

For securities subject to SEC Rule 15c2-12, the following events require notice in a timely manner not in excess of ten (10) business days after the occurrence of the event with respect to the applicable securities:

1. Principal and interest payment delinquencies;

2. Non-payment related defaults, if material;

3. Unscheduled draws on debt service reserves reflecting financial difficulties;

4. Unscheduled draws on credit enhancements reflecting financial difficulties;

5. Substitution of credit or liquidity providers, or their failure to perform;

6. Adverse tax opinions, the issuance by the Internal Revenue Service (I.R.S). of proposed or final determinations of taxability, Notices of Proposed Issue or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security;

7. Modifications to rights of security holders, if material;

8. Bond calls, if material, and tender offers;

9. Defeasances;

10. Release, substitution, or sale of property securing repayment of the securities, if material

11. Rating changes;

12. Bankruptcy, insolvency, receivership or similar event of the obligated person;

13. Consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and

14. Appointment of a successor or additional trustee or the change of name of a trustee, if material.

For continuing disclosure undertakings entered into on or after February 27, 2019, the following events require notice in a timely manner not in excess of ten (10) business days after the occurrence of the event with respect to the applicable securities:

1. Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and

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7 2. Default, event of acceleration, te rmination event, modification of terms, or other similar event under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties.

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Exhibit B

Memorandum Regarding SEC Rule 15c2-12 Amendments from
Jones Hall, A Professional Law Corporation
Bond Counsel and Disclosure Counsel to the City and Successor Agency

See attached.

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475 Sansome Street
Suite 1700
San Francisco, CA 94111
t. 415.391.5780
f. 415.276.2088

RECOMMENDATION S FOR ISSUERS REGARDING
THE 2019 AMENDMENTS TO RULE 15C2 -12
February 2019

BACKGROUND
Rule 15c2-12 (the “Rule”) of the U.S. Securities and Exchange Commission (the “SEC”), promulgated under the Securities Exchange Act of 1934, requires that before the issuance of municipal securities to investors in a public sale, underwriters must reasonably determine that the issuer and other obligated persons have undertaken to provide certain disclosure information to the Municipal Securities Rulemaking Board (the “MSRB”) through its internet based EMMA system.

This information generally consists of financial and operating data and audited financial statements, which must be filed at least annually, and notices of certain listed events, notice of which must be filed within 10 business days after they occur . The issuer’s undertaking to provide this information is detailed in a continuing disclosure certificate or agreement signed in connection with the issuance of municipal securities.

AMENDMENTS TO THE RULE
In response to concerns that municipal bond investors were not receiving material information regarding private placements or bank loan transactions, the SEC has added two new listed events to the existing 14 listed events:
(15) incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights or other similar terms of a financial obligation, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms or other similar events under a financial obligation of an issuer, if any such event reflects financial difficulties.

These new listed events must be included in all continuing disclosure undertakings for transactions closing on or after February 27, 2019 (the “Compliance Date”) .

As used in new listed events 15 and 16, a “financial obligation” is (i) a debt obligation; (ii) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) a guarantee of (i) or (ii).

Exhibit B

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2 Notably, financial obligations are not (i) municipal securities for which a final official statement is provided to the MSRB, regardless of whether such filing is required under the Rule, provided that a continuing disclosure undertaking is also entered into, or (ii) ordinary financial and operating liabilities incurred in the normal course of business by an issuer.

Therefore, a “ financial obligation ” i s generally the incurrence of debt in a private transaction, without a public offering of securities that would trigger its own continuing disclos ure obligations. A “financial obligation” can include short-term and long -term obligations, regardless of whether such obligations are identified as securities, loans, leases or otherwise. Leases that may be considered financial obligations include privately placed certificates of participation and lease financings, but would likely not include operating leases of the issuer.

New listed event 15 applies only applies to financial obligations or covenants entered into after the Compliance Date . Importantly for issuers , there is no requirement to retroactively disclose private placement or bank loan transactions that closed before Compliance Date .

New listed event 16, however, requires the reporting of defaults, events of acceleration, termination events, modification of terms , or other similar events for any financial obligations outstanding, whether entered into before or after a continuing disclosure undertaking entered into on or after Compliance Date . The SEC has noted that it believes that ho lding an issuer responsible for any of its financial obligations for purposes of new listed event 16, regardless of when it was incurred, should not be overly burdensome since such events are significant in nature, issuers should be aware that such events have occurred , without the need for additional monitoring.

RECOMMENDATIONS FOR ISSUERS
New Continuing Disclosure Undertakings. All continuing disclosure undertakings entered into for transactions closing on or after the Compliance Date need to include new listed event 15 and new listed event 16 in order to comply with the Rule.

Reporting New Financial Obligations . In order to be in a position to file a listed event notice with respect to new listed event 15, issuers should be ready to determine whether or not a future borrowing or other transaction constitutes a “financial obligation, ” and if so, determine whether the financial obligation would be material to investors in the issuer’s bonds issued on or after the Compliance Date. If a new financ ial obligation is determined to be material, a notice must be filed on EMMA within 10 business days of the incurrence of the financial obligation.

Issuers should consider whether they will, as a matter of course, be posting entire transaction documents to EMMA, summaries of the material terms of the documents, or evaluate and decide on a case -by-case basis.

Reporting Events With Respect to Existing Financial Obligations. In order to be in a position to file a listed event notice with respect new listed event 16, issuers should begin examining all of their existing financial obligations, whether or not considered material, and creating a database of such financial obligations. Issuers may also want to identify covenants, events of defaults, remedies, priority rights and other similar terms in an effort to be prepared to easily identify events that may constitute a default, event of acceleration, termination event, modification o f terms or other similar event reflecting financial difficulty pursuant to new listed

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3 event 16. If the issuer determines that such an event has taken place, a notice must be filed on EMMA within 10 business days.

Issuers of municipal securities must be ready to comply with the amendments to the Rule on the Compliance Date , February 27, 2019 . The attorneys at Jones Hall can assist with any questions related to the amendments to the Rule, or the implementation of policies and procedures to ensure compli ance.

Sincerely,
/s/ David T. Fama & James A. Wawrzyniak Jr.

Jones Hall, A Professional Law Corporation
Tel: 415-391-5780
Email: [email protected]; [email protected] om

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CITY OF SAN CARLOS
2023 STRATEGIC PLAN

THE SAN CARLOS STRATEGIC PLAN
The
San Carlos Strategic Plan identifies current issues, needs and interests that are of strategic importance to the quality of life of the community. Addressing these issues requires the leadership focus of the City’s elected officials and professional staff for an extended period of time, typically several years. The Strategic Plan is not a summary of all City services. The issues identified in the plan are unique because they have an urgent impact on the community and because they are complex.

S
trategic goals are a central feature of the Strategic Plan. These are established to find ways to address the strategic issues now and into the foreseeable future. If a solution is found, and there is an on-going need to address the issue, this will occur through the C ity’s on-going service delivery system. At that time, the issue will no longer be identified as a strategic goal.

W THE S TRATEGIC PLAN IS DEVELOPED
The
Strategic Plan is developed through an annual process that involves the City Council and City professional staff in facilitated, collaborative working sessions. The process is completed early each year so that the Strategic Plan can be incorporated into the City’s budget.

The
plan is a document comprised of the City’s mission, vision and core values statements, the strategic goals and objectives for the next planning period and detailed work plans that will accomplish the goals.

S
trategic goals are identified based on the knowledge and understanding that each participant in the process has about what is of strategic importance to the community. City Council members are elected by the residents to govern and represent their needs and interests. They bring the perspective of the residents and business of the community. Professional City staff members are trained in local government management and services. They bring the perspective of how to address the complex issues that are of concern. Through the strategic planning work sessions, these two unique perspectives come together to identify the areas of focus for the next planning period.

HE STRATEGIC P LAN PROCESS
The
key steps to the process are listed below.

Cit
y Council Mini-Retreat. City Council, City Manager and City Attorney brainstorm the current community issues of strategic importance. This is a public meeting.

Cit
y Council and City Management Team Retreat. This is a facilitated, collaborative working session. The participants review accomplishments from last year; review the City’s mission, vision and values to ensure relevance; check the status of current strategic plan issues and progress; and identify new strategic issues to work on for the next year and possibly beyond. Council strategic goals and objectives are established at a high level through this process. The “handoff” is given to City staff to work through the details by refining the goals and objectives and developing work plans to achieve Council’s strategic goals. This is a public meeting.

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City M
anagement Team Retreat. This facilitated, collaborative working session with the City’s management team is designed to refine the strategic goals, develop objectives to achieve each goal and establish work plans that identify specific tasks, set timelines and assign responsibility for accomplishment. This is an internal staff meeting.

C
ouncil Adoption of Strategic Plan and Progress Updates. After all work sessions are complete, a final Strategic Plan is agendized for Council adoption at a regularly scheduled Council meeting.

City staff then periodically updates Council on the progress of strategic goals during future Council meetings. All of these Council meetings are public meetings.

M
ISSION
The
City of San Carlos provides high- quality services and facilities to its residents in an equitable, sustainable, transparent, responsive, and friendly manner to foster an inclusive, safe, and healthy community now and in the future.

V
ISION
The
City of San Carlos will continue to lead with confidence into the future as a desirable, vibrant, equitable, inclusive, and business friendly community, admired by all as a great place to live, learn, work, and play.

RE VALUES
Not in priority order
• Fos
tering a safe, diverse, welcoming, and engaged community that recognizes the i
mportance of social equity
• Ensuring fiscal responsibility and the sustainability of San Carlos’ resources, infrastructure, and social/cultural environment
• Proactively protecting our physical environment from the threats of climate change and reducing greenhouse gas emissions
• Recognizing the needs and challenges of the community and promoting its well-being. • Demonstrating high ethical and professional standards, including high quality customer service
• Leading and managing effectively by engaging the community, thinking strategically, remaining proactive, and planning for the future
• Supporting the well -being of employees, investing in their development, and aligning staffing and resources with the demand for City services 2023

STRATEGIC GOALS A ND OBJECTIVES
In alphabetical order

1. Child Care: The City of San Carlos will encourage and support the creation of child care facilities by reducing barriers to creation and expansion.

O
bjective #1: Develop a plan on how to apply child care funds that are collected through impact fees.

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Obj
ective #2: Consider zoning/co-location options for child care sites.

O
bjective #3 : Consider r educing or waiving City-controlled permit fees for child care projects.

O
bjective #4: Create/modify resources and learning opportunities for stakeholders.

2. C
limate Change Mitigation, Adaptation, and Resilience : The City of San Carlos will support sustainability initiatives and address climate change. As part of its focus on climate change, the City of San Carlos will continue to address vulnerability and adapt to changing climate conditions such as wildfires, flooding, drought, and sea level rise.

O
bjective #1: Plan and implement measures approved by the Council in the Climate Mitigation and Adaptation Plan (CMAP).

O
bjective #2: Perform community engagement and outreach.

O
bjective #3: Update emergency plans and policies.

3. D
owntown: The City of San Carlos will work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future.

O
bjective #1: Implement the community engagement strategy for the Downtown Specific Plan.

O
bjective #2 : Create the Downtown Specific Plan and corresponding implementation strategies.

O
bjective #3: Ensure that the vision and goals of the Downtown Specific Plan come to fruition.

O
bjective #4: Explore safe, interim improvements to parklets and surrounding areas while the Downtown Specific Plan is being developed and implemented.

4. H
ousing: The City of San Carlos will actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable supply by facilitating development of housing for all income levels.

O
bjective #1: Increase the number of Below Market Rate (BMR) housing units to meet local and regional housing requirements (e.g.: regional collaboration, grant programs, acquisition, and new development).

O
bjective #2: Facilitate completion of projects currently underway.

O
bjective #3: Increase housing production.

O
bjective #4: Consider General Plan amendments and rezoning in the Northeast Specific Plan to include housing.

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5. Mobi
lity, Traffic and Transportation Infrastructure: The City of San Carlos will actively pursue plans and strategies for improving mobility, traffic, parking, transportation infrastructure, and street maintenance while encouraging alternative modes of transportation to provide efficient, safe, and effective movement throughout the city.

O
bjective #1: Implement the Bicycle and Pedestrian Master Plan to encourage alternative modes of transportation and improve mobility.

O
bjective #2: Identify and implement citywide street and intersection projects an d i
nitiatives to improve traffic flow and parking.

O
bjective #3: Develop community education, reporting, outreach , and information tools using change management principles and practices.

O
bjective #4: Implement Safe Routes to School improvements to increase bicycle and pedes
trian safety.

O
bjective #5: Structure a partnership among the City, property owners, businesses, and employers and leverage resources to create effective trip reduction strategies through the creation of a Transportation Management Agency (TMA).

6. N
ortheast Area Specific Plan: The City of San Carlos will work with residents, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan i n r
esponse to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development.

O
bjective #1 : Create outreach and engagement opportunities that actively involve Northeast Area stakeholders and the San Carlos community in the visioning and development of the Specific Plan.

O
bjective #2 : Develop a “preferred scenario,” or a preferred plan for the future that envisions and describes the appropriate mix of land uses, mobility improvements, flooding and climate change strategies, and other necessary initiatives to plan for and support a thriving Northeast Area.

O
bjective #3: Initiate the environmental review of the preferred scenario.

7. R
ecreation Services: The City of San Carlos will explore new recreational opportunities by completing an assessment of parks, open space, and other recreation facilities to s
upport the health and well-being for community members of all ages.

O
bjective #1: Complete a Parks, Open Space, and other Recreational Opportunities Master Plan Assessment (12-24 month process).

O
bjective #2: Explore additional recreational opportunities at North Crestview Park that meet the needs of the community.

O
bjective #3: Assess new opportunities to implement Trails Connection Plan for public trails.

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STRATEGIC OBJECTIVE CAPITAL IMPROVEMENT PROGRAM PROJECTS * New Child Care Facility Development ($5,000,000)
* Child Care Space Reimbursement ($3,000,000)
* Family and Commercial Daycare Grant Program ($1,000,000) * Sewer and Storm Pump Station Assessment ($150,000)
* Sewer Model Update ($300,000)
* Shoreway Road Sewer Main Relocation Project ($605,000) * Tierra Linda Pump Station Improvements ($1,000,000)
* Sewer Capacity Assurance Improvements ($9,500,000)
* Storm Channel Sediment Removal ($2,150,000)
* Big Canyon Park Landslide Repair (Behind 995 Crestview Dr) ($1,000,000) * Big Canyon Park (Above 3144 Brittan Avenue) Landslide Repair ($1,500,000) * Big Canyon Park Landslide Repair (Behind 3141-61 Melendy Drive) ($1,500,000) * Dartmouth Road Landslide Repair (Between Garden Ln and Northam Ave) ($1,000,000) * Tree Replacement in Developed Parks ($150,000)
* Geotechnical Evaluation for Landslide Repair ($180,000) * General Plan Open Space Element Update ($300,000)
* Installation of New EV Stations in Public Parking Lots ($500,000) * Greenhouse Gas In-Lieu Fee Study ($50,000)
* Downtown Renovation Plan Design ($1,000,000)
* Downtown Renovation Plan Implementation ($3,500,000)
* Wheeler Plaza Garage Extra Lighting, Painting and EV Stations ($50,000) * Cherry Street Below Market Rate Housing Acquisition ($5,500,000) * Affordable Housing Site Acquisition/Construction, Affordable Housing In Lieu ($42,500,000) * Annual Street Resurfacing ($39,000,000)
* Annual Traffic Markings & Striping ($1,500,000)
* Annual Sidewalk Replacement/Reconstruction ($1,020,000) * Arroyo Ave and Chestnut St Safe Routes to School Improvements and Paving ($150,000) * Intersection Pedestrian Improvements (Arroyo/Woodland, Olive/Elm) ($1,500,000) * Safe Routes to School Intersection and Sidewalk Improvements ($4,500,000) * San Carlos Avenue Pedestrian Safety Improvements Phase IV ($1,500,000) * Four Corners Traffic Improvements ($2,000,000)
* Traffic Circle and Midblock Crossings (ADLP, Industrial, Crestview, and Morse) ($850,000) Northeast Area Specific Plan
($1,500,000) * Northeast Area Specific Plan Design ($1,500,000) * North Crestview Park Master Plan ($200,000)
* Parks Master Plan ($400,000)
* Trail Improvements ($800,000)
* Conceptual Design of Community Center ($200,000)
Child Care ($9,000,000)
Climate Change Mitigation,
Adaptation & Resilience
($19,885,000)
Downtown ($4,550,000)
Housing ($48,000,000)
Mobility, Traffic & Transportation
Infrastructure ($52,020,000)
Recreation Services ($1,600,000)

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City of San Carlos
Fund Structure

* Major Fund

Major Funds:

Major Funds are defined generally as having significant activities or balances in the current year. The City has determined the following funds as major funds: General Fund, Wastewater/Enterprise Fund, General Capital Project Improvement Fund, and the Housing Funds which are made up of the Housing in Lieu and the Low and Moderate Income Housing Fund.

Fund Descriptions:

0001

0006

City of San Carlos Budgetary Funds
General
Fund
0001 General
Fund*
Enterprise
Funds
0006 Wastewater
(Sewer)*
Other Revenue
Funds
0015
NPDES/Storm
Drainage
0017 Police
Grants
0095 Library
Tenant
Capital
Funds
0010 Equipment
Replacement
0014 Measure A
0016 Gas Tax
0018 Measure W
0025 General Capital
Project Improvement*
0026 Child Care Fund
0027 Park in Lieu
0028 Parking in
Lieu
0029 Housing in
Lieu*
0031 Low & Moderate
Income Housing Fund*
City Debt
Service
0093 2015 GO Bond
Internal
Service Funds
0032 Workers
Compensation
0033 Liability
Insurance/Risk
Mgmt
0035 Post Employment
Benefits
General Fund *– The General Fund is the primary operating fund of the City and is used to account for most day-to-day activities. Revenue sources include (but are not limited to) property tax, sales tax, transient occupancy tax, current fees for services and business registration.

Enterprise Fund *– The Enterprise Fund or Wastewater (Sewer) Fund is used to account for City operations that are financed and operated like private business enterprises. The Sewer Fund is used to account for sewage treatment, transmission, major replacements and improvements to the City’s sewer system.

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0015 NPDES/Storm Drainage – This fund is used to account for revenues received from assessments levied by the county on property and disburses funds in compliance with the provisions of the National Pollutant Discharge Elimination System (NPDES).

0017 Police Grants – This fund is used to account for grant activities and services paid for and reimbursed by grant funding. This fund includes grants from the following funding sources:

– Supplemental Law Enforcement Services Funds (SLESF) – Under the SLESF program (commonly referred to as the Community-Oriented Policing Services, or COPS grant) , cities a nd counties receive state funds to augment public safety expenditures.

0095 Library Tenant – This fund is used to track rents and other tenant activities in the San Carlos Library.

0010 Equipment Replacement – This fund is used to account for the anticipated replacement of general equipment and inventory needs. Some of the items included in this fund are vehicles, park equipment and computers and networking equipment. The source of funding for replacement is the General Fund.

0014 Measure A – This fund is used to account for the City’s share of a one-half cent sales tax restricted for transportation purposes. The revenue received is used to augment capital projects in the Gas Tax fund.

0016 Gas Tax – This fund is used to account for revenue received and expended under the State of California, Street and Highways Code Sections 2103, 2015, 2106, 2107 and 2107.5. These revenues must be expended for maintenance or construction of streets.

0018 Measure W – This fund is used to account for the City’s share of half -cent sales tax. The measure W went into effect in July of 2019 for 30 years. The funding is used to improve transit, relieve congestion, repair potholes, maintain streets and improve pedestrian safety.

Other ( Special) Revenue Funds – Revenue funds are used to account for revenue sources for which expenditures are restricted, by law or administrative action, to specific purposes.

Capital Funds – The Capital Funds are used to account for the acquisition or construction of major capital improvements other than those financed by the Wastewater Fund.

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0025 General Capital Project Improvement Fund – This fund is used to account for general capital projects including building construction, technology purchases and other infrastructure needs. The main source of revenue comes from the General Fund.

0026 Child Care Fund – This fund is used to account for Child Care development impact fees. Revenues collected is intended to provide for the capital improvements and augmentation to the child care system.

0027 Park In Lieu – This fund is used to account for development fees collected and used to finance the acquisition and construction of City parks.

0028 Parking in Lieu – This fund is used to account for fees charged to business in lieu of required p arking. These revenues are used to pay for parking lot improvements and repairs.

0029 Housing in Lieu* – This fund is used to account for development fees and other housing-related resources that must be used to finance affordable housing for City residents.

0031 Low and Moderate Income Housing Fund* – This fund is used to account for the housing activities assumed by the City when the former redevelopment agency was dissolved.

0093

0032 Workers Compensation – This fund is used to account for activities related to Workers’ Compensation claims and the premiums for coverage.

0033 Liability Insurance/ Risk Management – This fund is used to account for activities related to general liability claims against the City and premiums for coverage above the City’s risk retention level.

0035 Post-Employment Benefits – This f und is used to account for activities related to longevity and healthcare benefits for retired employees.

City Debt Service Fund – The Debt Service Fund is used to account for the accumulation of annual tax levies earmarked for payment of principal and interest on the 2015 General Obligation Bonds that were used to finance the construction of the San Carlos Library.

Internal Service Funds – The Internal Service Fu nds are used to account for special activities and services performed by a designated department for other departments on a cost reimbursement basis.

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FUND BALANCES: OPERATING, CAPITAL AND OTHER BUDGETS
Fund Title
0001 General - Unappropriated
0001 General - Restricted
0001 General -TOTAL
0006 Wastewater - Restricted
0006 Wastewater - Inv in SVCW
0006 Wastewater - Inv in Capital Assets
0006 Wastewater TOTAL
0017 Grants-Police - Restricted
0010 Equipment Replacement
0014 Measure A Tax - Restricted
0018 Measure W Tax - Restricted
0016 Gas Tax - Restricted
0025 General Fund Capital Improvement
0026 Child Care Fund
0027 Park In Lieu - Restricted
0028 Parking In Lieu Fee
0029 Affordable Housing in Lieu-Restrict.
0031 Low-Mod Housing Asset - Restricted
0093 Library - Bond Service
0095 Library - Tenant Imp.

Library Total
Operating & Capital Improvement Totals
0015 NPDES - Storm Drain Maint.
0032 Work Compensation Insurance
0033 Liability Insurance
0035 Post-employment Benefits
Internal Service Funds Total
Other Funds Total

GRAND TOTAL
AUDITED FISCAL YEAR 2021-22 BALANCES
Alloc In Alloc Out Net 7/1/2022
Revenue Expend. Tran In Tran Out Change Balance
41,800,500 (45,325,783) 3,856,600 (745,400) (414,083) 3,128,475 7,821,168 - - (1,000,000) 6,821,168 40,981,688 49,621,668 (45,325,783) 3,856,600 (1,745,400) 6,407,086 44,110,163 21,150,338 (10,370,206) 533,700 (3,794,200) 7,519,633 33,858,624 (222,042) - - (222,042) 8,625,973 (1,188,997) - - (1,188,997) 32,740,661 21,150,338 (11,781,245) 533,700 (3,794,200) 6,108,594 75,225,258 155,670 (217,901) - - (62,231) 287,506 - (67,834) 300,900 - 233,066 3,747,933 1,032,159 (90,816) (750,000) 191,343 736,596 465,386 - - (300,000) 165,386 327,349 1,446,257 (342,008) 4,025,000 (984,100) 4,145,148 8,973,355 9,741,804 (2,631,614) 1,200,000 (2,975,000) 5,335,191 35,651,349 - - - - - - 671,973 (209,982) - (200,000) 261,990 2,539,633 (2,381) (14,144) - - (16,525) 385,966 4,042,897 (797,913) (102,000) 3,142,984 14,659,803 29,843 (47,157) (102,000) (119,315) 8,489,449 355,742 (442,725) - - (86,983) 849,879 11,236 (284,248) - - (273,012) 2,538,919 366,978 (726,973) - - (359,994) 3,388,799 88,722,592 (62,253,369) 9,916,200 (10,952,700) 25,432,723 198,523,158 692,911 (120,967) (541,200) 30,744 700,693
(7,373) (197,891) 279,800 (99,500) (24,964) 294,758 (29,535) (1,251,636) 1,535,400 (138,000) 116,229 1,066,340 675,034 (885,000) - - (209,966) 285,253 638,126 (2,334,527) 1,815,200 (237,500) (118,701) 1,646,351 1,331,037 (2,455,495) 1,815,200 (778,700) (87,958) 2,347,043 90,053,629 (64,708,864) 11,731,400 (11,731,400) 25,344,765 200,870,201

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Packet Pg. 155

GRAND TOTAL
PROJECTED FISCAL YEAR 2022-23 BALANCES
Alloc In Alloc Out Net 7/1/2023
Revenue Expend. Tran In Tran Out Change Balance
52,185,233 (54,345,476) 4,273,900 (830,700) 1,282,957 4,411,432 5,946,367 - - (2,900,000) 3,046,367 44,028,055 58,131,600 (54,345,476) 4,273,900 (3,730,700) 4,329,324 48,439,487 21,401,123 (17,965,852) 552,500 (4,014,700) (26,929) 33,831,694 - - - - 8,625,973 - - - - - 32,740,661 21,401,123 (17,965,852) 552,500 (4,014,700) (26,929) 75,198,328 172,700 (157,600) - - 15,100 302,606 - (1,450,000) 373,000 - (1,077,000) 2,670,933 1,206,900 (91,600) (1,150,000) (34,700) 701,896 386,750 - - (600,000) (213,250) 114,099 1,978,800 (10,163,750) 5,275,000 (1,013,600) (3,923,550) 5,049,805 9,715,947 (35,722,952) 3,900,000 (3,125,000) (25,232,005) 10,419,343 - -
447,900 (800,642) - (1,400,000) (1,752,742) 786,892 8,600 (115,594) - - (106,994) 278,973 691,500 (4,687,463) (310,000) (305,100) (4,611,063) 10,048,740 32,800 (3,438,351) 310,000 (100,100) (3,195,651) 5,293,798 419,700 (457,800) - - (38,100) 811,779 284,400 (1,656,385) - - (1,371,985) 1,166,934 704,100 (2,114,185) - - (1,410,085) 1,978,714 94,878,720 (131,053,464) 14,374,400 ( 15,439,200) (37,239,544) 161,283,614 703,500 (118,700) (560,100) 24,700 725,393 5,200 (213,600) 288,200 (102,500) (22,700) 272,058 18,100 (1,359,451) 1,581,300 (142,100) 97,849 1,164,189 795,000 (958,000) - - (163,000) 122,253 818,300 (2,531,051) 1,869,500 (244,600) (87,851) 1,558,500 1,521,800 (2,649,751) 1,869,500 (804,700) (63,151) 2,283,892 96,400,520 (133,703,215) 16,243,900 ( 16,243,900) (37,302,695) 163,567,506

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Packet Pg. 156

GRAND TOTAL
PROPOSED FISCAL YEAR 2023-24 BALANCES
Alloc In Alloc Out Net 7/1/2024
Revenue Expend. Tran In Tran Out Change Est Balance
51,729,667 (58,976,850) 4,894,700 (1,049,700) (3,402,183) 1,009,249 3,609,633 (3,000,000) (7,850,000) (7,240,367) 36,787,688 55,339,300 (61,976,850) 4,894,700 (8,899,700) (10,642,550) 37,796,937 27,866,500 (21,950,700) 649,700 (4,577,800) 1,987,700 35,819,394 - - - - - 8,625,973 - - - - - 32,740,661 27,866,500 (21,950,700) 649,700 (4,577,800) 1,987,700 77,186,028 181,300 (163,900) - - 17,400 320,006 - (374,000) 460,000 - 86,000 2,756,933 1,234,500 (94,000) (1,200,000) (59,500) 642,396 395,500 - - (495,000) (99,500) 14,599 1,899,300 (7,725,000) 7,820,000 (1,180,800) 813,500 5,863,305 7,192,100 (11,727,100) 5,250,000 (3,275,000) (2,560,000) 7,859,343 3,671,700 - 3,671,700 3,671,700 297,100 (900,000) - - (602,900) 183,992 700 - (250,000) (249,300) 29,673 15,167,000 (16,045,200) - (317,300) (1,195,500) 8,853,240 34,300 (149,800) - (104,100) (219,600) 5,074,198 427,500 (469,250) - - (41,750) 770,029 283,800 (316,200) - - (32,400) 1,134,534 711,300 (785,450) - - (74,150) 1,904,564 113,990,600 (121,892,000) 19,074,400 ( 20,299,700) (9,126,700) 152,156,914 713,100 (125,600) (638,700) (51,200) 674,193
5,700 (275,400) 382,100 (106,500) 5,900 277,958 26,300 (1,488,600) 1,736,200 (147,800) 126,100 1,290,289 1,114,700 (1,123,600) - - (8,900) 113,353 1,146,700 (2,887,600) 2,118, 300 (254,300) 123,100 1,681,600 1,859,800 (3,013,200) 2,118, 300 (893,000) 71,900 2,355,792 115,850,400 (124,905,200) 21,192,700 ( 21,192,700) (9,054,800) 154,512,706

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Packet Pg. 157

GRAND TOTAL
PROPOSED FISCAL YEAR 2024-25 BALANCES
Alloc In Alloc Out Net 7/1/2025
Revenue Expend. Tran In Tran Out Change Est Balance
57,462,588 (61,652,890) 5,163,500 (1,067,400) (94,202) 915,047 411,102 - - (4,850,000) (4,438,898) 32,348,790 57,873,690 (61,652,890) 5,163,500 (5,917,400) (4,533,100) 33,263,837 27,746,000 (21,031,300) 669,300 (4,722,400) 2,661,600 38,480,994 - - - - - 8,625,973 - - - - - 32,740,661 27,746,000 (21,031,300) 669,300 (4,722,400) 2,661,600 79,847,628 187,100 (168,800) - - 18,300 338,306 - (538,600) 460,000 - (78,600) 2,678,333 1,257,000 (95,900) (1,236,000) (74,900) 567,496 407,500 - - (406,900) 600 15,199 1,968,500 (7,980,000) 7,767,900 (1,216,100) 540,300 6,403,605 9,017,800 (10,575,000) 2,726,436 (3,275,000) (2,105,764) 5,753,579 1,578,400 (1,250,000) 328,400 4,000,100 1,158,900 (500,000) - - 658,900 842,892 - (1) - (29,672) (29,673) - 7,618,600 (10,561,200) (326,900) (3,269,500) 5,583,740 35,300 (154,200) - (107,200) (226,100) 4,848,098 412,000 (1,504,899) 322,870 - (770,029) 0 - - - (1,134,534) (1,134,534) 0 412,000 (1,504,899) 322,870 (1,134,534) (1,904,563) 1 109,260,790 (116,012,790) 17,110,006 ( 18,372,106) (8,014,100) 144,142,814 719,700 (129,300) (657,800) (67,400) 606,793
5,000 (335,900) 393,400 (109,700) (47,200) 230,758 27,500 (1,631,200) 1,788,400 (152,200) 32,500 1,322,789 1,186,700 (1,132,500) - - 54,200 167,553 1,219,200 (3,099,600) 2,181, 800 (261,900) 39,500 1,721,100 1,938,900 (3,228,900) 2,181,800 (919,700) (27,900) 2,327,892 111,199,690 (119,241,690) 19,291,806 ( 19,291,806) (8,042,000) 146,470,707

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Packet Pg. 158

$-
$50.0
$100.0
$150.0
$200.0
$250.0
FY 2021
Audited
FY 2022
Audited
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
City Debt Service $0.9 $0.8 $0.8 $0.8 $-
Internal Service Funds $1.8 $1.7 $1.6 $1.7 $1.7
Special Revenue Funds $3.8 $3.5 $2.2 $2.1 $0.9
Capital Funds $62.2 $75.5 $35.6 $34.9 $30.7
General Fund $37.7 $44.1 $48.4 $37.8 $33.3
Enterprise Fund $69.1 $75.2 $75.2 $77.2 $79.8

FUND BALANCE STATUS
5-YEAR TREND
(IN MILLIONS)

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Packet Pg. 159

SUMMARY OF SOURCES AND USES BY FUND TYPE
FY 2023-24

REVENUES

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
BUSINESS REGISTRATION 1,265,900 -
CHARGES FOR CURRENT SERVICES 5,122,800 - FINES & FORFEITURES 319,000 -
FROM OTHER AGENCIES 11,200 -
LICENSES & PERMITS 2,589,800 -
OTHER REVENUE 931,600 27,129,200
OTHER TAX 2,101,100 -
PROPERTY TAX 17,980,000 -
SALES TAX 13,063,900 -
TRANSIENT OCCUPANCY TAX 4,200,000 -
PAMF TARGET REVENUE 868,500 -
USE OF MONEY & PROPERTY 2,974,500 737,300 VEHICLE IN LIEU 3,911,000 -
TOTAL REVENUES 55,339,300 27,866,500

EXPENDITURES

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
GENERAL GOVERNMENT 13,938,925 -
COMMUNITY DEVELOPMENT 8,732,600 -
PUBLIC SAFETY 25,136,200 -
PUBLIC WORKS 9,079,575 -
PARK & RECREATION 5,089,550 -
SEWER OPERATIONS - 11,533,172

EQUIPMENT REPLACEMENT - -

OPERATING - -
CONSTRUCTION - 6,917,228
DEBT SERVICE - 3,500,300
TOTAL EXPENDITURES 61,976,850 21,950,700

TRANSFERS

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
ALLOCATIONS IN FOR OVERHEAD 4,182,300 649,700 GENERAL TRANSFERS IN 712,400 -
ALLOCATIONS OUT FOR OVERHEAD (589,700) (3,865,400) GENERAL TRANSFERS OUT (8,310,000) (712,400) TOTAL TRANSFERS, ALLOCATIONS AND ONE-TIME (4,005,000) (3,928,100) NET CHANGES - SOURCES (USES) (10,642,550) 1,987,700 EST AVAILABLE BEGINNING BALANCES 48,439,487 75,198,328 ESTIMATED ENDING FUND BALANCE 37,796,937 $ 77,186,028 $

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Packet Pg. 160

SUMMARY OF SOURCES AND USES BY FUND TYPE
FY 2023-24
OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

ADOPTED
FY 2022 TOTALS
- - - - 1,265,900 - - - - 5,122,800 - - - - 319,000 - - - - 11,200 - - - - 2,589,800 1,178,200 29,892,200 - 1,146,700 60,277,900 - - - - 2,101,100 - - 427,500 - 18,407,500 - - - - 13,063,900 - - - - 4,200,000 - - - - 868,500 - - - - 3,711,800 - - - - 3,911,000 1,178,200 29,892,200 427,500 1,146,700 115,850,400 OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

ADOPTED
FY 2022 TOTALS
- - - - 13,938,925 - - - - 8,732,600 - - - - 25,136,200 - - - - 9,079,575 - - - - 5,089,550 - - - - 11,533,172 - 374,000 - - 374,000 605,700 16,289,000 - 2,887,600 19,782,300 - 20,352,100 - - 27,269,328 - - 469,250 - 3,969,550 605,700 37,015,100 469,250 2,887,600 124,905,200 OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

ADOPTED
FY 2022 TOTALS
- - - 2,118,300 6,950,300 - 13,530,000 - - 14,242,400 (638,700) (1,602,200) - (254,300) (6,950,300) - (5,220,000) - - (14,242,400) (638,700) 6,707,800 - 1,864,000 - (66,200) (415,100) (41,750) 123,100 (9,054,800) 2,194,933 35,364,479 811,779 1,558,500 163,567,506 2,128,733$ 34,949,379 $ 770,029 $ 1,681,600 $ 154,512,706 $

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Packet Pg. 161

SUMMARY OF SOURCES AND USES BY FUND TYPE
FY 2024-25

REVENUES

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
BUSINESS REGISTRATION 1,316,600 -
CHARGES FOR CURRENT SERVICES 4,994,550 -
FINES & FORFEITURES 328,700 -
FROM OTHER AGENCIES 11,600 -
LICENSES & PERMITS 2,667,500 -
OTHER REVENUE 914,800 26,931,400
OTHER TAX 2,121,400 -
PROPERTY TAX 19,238,000 -
SALES TAX 13,430,670 -
TRANSIENT OCCUPANCY TAX 4,768,000 -
PAMF TARGET REVENUE 890,170 -
USE OF MONEY & PROPERTY 3,034,700 814,600
VEHICLE IN LIEU 4,157,000 -
TOTAL REVENUES 57,873,690 27,746,000

EXPENDITURES

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
GENERAL GOVERNMENT 11,157,430 -
COMMUNITY DEVELOPMENT 9,035,400 -
PUBLIC SAFETY 26,492,670 -
PUBLIC WORKS 9,702,275 -
PARK & RECREATION 5,265,115 -
SEWER OPERATIONS - 8,413,800

EQUIPMENT REPLACEMENT - -

OPERATING - -
CONSTRUCTION - 8,278,400
DEBT SERVICE - 4,339,100
TOTAL EXPENDITURES 61,652,890 21,031,300

TRANSFERS

GENERAL FUND

ENTERPRISE
(WASTEWATER)
FUND
ALLOCATIONS IN FOR OVERHEAD 4,307,700 669,300 GENERAL TRANSFERS IN 855,800 -
ALLOCATIONS OUT FOR OVERHEAD (607,400) (3,981,500) GENERAL TRANSFERS OUT (5,310,000) (740,900) TOTAL TRANSFERS AND ALLOCATIONS (753,900) (4,053,100) NET CHANGES - SOURCES (USES) (4,533,100) 2,661,600 EST AVAILABLE BEGINNING BALANCES 37,796,937 77,186,028 ESTIMATED ENDING FUND BALANCE 33,263,837 $ 79,847,628 $

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Packet Pg. 162

SUMMARY OF SOURCES AND USES BY FUND TYPE
FY 2024-25
OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

PROPOSED
FY 2025 TOTALS
- - - - 1,316,600 - - - - 4,994,550 - - - - 328,700 - - - - 11,600 - - - - 2,667,500 906,800 23,042,000 - 1,219,200 53,014,200 - - - - 2,121,400 - - 412,000 - 19,650,000 - - - - 13,430,670 - - - - 4,768,000 - - - - 890,170 - - - - 3,849,300 - - - - 4,157,000 906,800 23,042,000 412,000 1,219,200 111,199,690 OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

PROPOSED
FY 2025 TOTALS
- - - - 11,157,430 - - - - 9,035,400 - - - - 26,492,670 - - - - 9,702,275 - - - - 5,265,115 - - - - 8,413,800 - 538,600 - - 538,600 298,100 10,811,300 - 3,099,600 14,209,000 - 20,305,000 - - 28,583,400 - - 1,504,900 - 5,844,000 298,100 31,654,900 1,504,900 3,099,600 119,241,690 OTHER

REVENUE

FUNDS CAPITAL FUNDS

CITY DEBT

SERVICE

INTERNAL

SERVICE FUNDS

PROPOSED
FY 2025 TOTALS
- - - 2,181,800 7,158,800 - 10,954,336 322,870 - 12,133,006 (657,800) (1,650,200) - (261,900) (7,158,800) (1,134,534) (4,947,572) - (12,133,006) (1,792,334) 4,356,564 322,870 1,919,900 - (1,183,634) (4,256,336) (770,030) 39,500 (8,042,000) 2,128,733 34,949,379 770,029 1,681,600 154,512,706 945,099$ 30,693,043 $ (1) $ 1,721,100$ 146,470,706 $

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Packet Pg. 163

FY 2022

REVISED
FY 2022

AUDITED
FY 2023

REVISED
FY 2023

PROJECTED
FY 2024

PROPOSED
FY 2025

PROPOSED
ESTIMATED BEGINNING FUND BAL
Unrestricted $ 3,542,553 $ 3,542,553 $ 3,128,475 $ 3,128,475 $ 1,282,957 $ 1,053,073 Reserved or restricted 34,160,520 34,160,520 40,981,684 40,981,684 47,156,526 36,743,860 TOTAL BEGINNING FUND BALANCE $ 37,703,073 $ 37,703,073 $ 44,110,159 $ 44,110,159 $ 48,439,483 $ 37,796,933 Business Registration 996,000 1,110,893 1,063,400 1,217,300 1,265,900 1,316,600 Charges for Current Services 4,693,200 5,445,118 4,816,000 7,817,300 5,122,800 4,994,550 Fines & Forfeitures 297,900 218,320 306,700 306,700 319,000 328,700 From Other Agencies 10,600 254,767 40,800 165,700 11,200 11,600 Licenses & Permits 1,899,400 3,591,937 2,490,200 2,556,500 2,589,800 2,667,500 Other Revenue 791,800 986,190 907,800 951,000 931,600 914,800 Other Tax 1,906,200 2,104,957 1,949,900 2,035,000 2,101,100 2,121,400 Property Tax 15,242,000 15,311,185 16,524,000 17,048,000 17,980,000 19,238,000 Sales Tax 11,426,200 13,019,557 12,038,500 12,559,600 13,063,900 13,430,670 Transient Occupancy Tax 1,957,900 2,136,750 3,800,000 3,400,000 4,200,000 4,768,000 Use of Money & Property 3,086,300 1,111,093 3,262,500 3,481,700 2,974,500 3,034,700 PAMF Project 826,600 826,615 847,300 847,300 868,500 890,170 Vehicle in Lieu 2,907,000 3,504,285 3,560,000 5,745,500 3,911,000 4,157,000 TOTAL REVENUES 46,041,100 49,621,668 51,607,100 58,131,600 55,339,300 57,873,690

EXPENDITURES
Salaries & Benefits 14,536,011 13,067,990 18,211,975 16,379,245 20,211,450 20,966,705 Public Safety Legacy Obligations 4,019,000 3,919,079 4,203,300 4,221,131 3,470,100 3,668,600 Operating Expenditures 31,116,700 28,259,673 32,610,550 33,569,000 35,112,200 36,828,885 Capital Outlay 163,300 79,040 176,100 176,100 183,100 188,700 TOTAL EXPENDITURES 49,835,011 45,325,783 55,201,925 54,345,476 58,976,850 61,652,890

TRANSFERS
General Transfers In From Other Funds 658,700              658,700              685,000              685,000              712,400              855,800 Allocations In From Other Funds 3, 197,900           3,197,900           3,588,900           3,588,900           4,182,300           4,307,700 Allocations Out to Other Funds ( 444,500)             (444,500)             (457,700)             (457,700)             (589,700)             (607,400) General Transfers out (300,900)             (300,900)             (373,000)             (373,000)             (460,000)             (460,000) TOTAL TRANSFERS (NET) $       3,111,200   $       3,111,200   $       3,443,200   $       3,443,200   $       3,845,000   $       4,096,100 TOTAL CHANGE IN OPERATING FUNDS (682,711) $          7,407,086$         (151,625)$          7,229,324$         207,450$            316,900$ OTHER SOURCES (USES) OF FUNDS
Transfer Capital Reserve (1,000,000)           (1,000,000)          (2,900,000)          (2,900,000)          (7,850,000)          (4,850,000) One‐time paydown of Unfunded (3,000,000)
TOTAL OTHER SOURCES (USES) OF FUNDS (1,000,000)          (1,000,000)         (2,900,000)         (2,900,000)         (10,850,000)       (4,850,000) NET CHANGE IN FUND BALANCE (1,682,711) $       6,407,086$         (3,051,625)$       4,329,324$         (10,642,550)$     (4,533,100)$ GENERAL FUND BALANCE
Unrestricted $       1,727,922   $       3,128,475   $       1,897,906   $       1,282,957   $       1,053,073   $           915,047 Non‐spendable Fund Balance 309,293              1,143,006           1,143,006           784,500              434,500              434,500 Economic Uncertainty Reserve 8,449,852           8,305,383           9,384,327           9,238,731           10,026,065         10,480,991 Strategic Property Reserve 7,191,795           7,191,795           7,191,795           7,191,795           7,191,795           7,191,795 Assigned Fund Balance
Unfunded Liabilities 2,000,000           3,000,000           3,000,000           3,000,000           ‐                        ‐ Facilities and Infrastructure 16,341,500         21,341,500         18,441,500         26,941,500         19,091,500         14,241,500 Reserved or restricted         34,292,440          40,981,684          39,160,628          47,156,526          36,743,860          32,348,786 TOTAL ENDING FUND BALANCE $     36,020,362   $     44,110,159   $     41,058,534   $     48,439,483   $     37,796,933   $     33,263,833 CITY OF SAN CARLOS
GENERAL FUND SUMMARY BUDGET

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Packet Pg. 164

Note: totals may not add due to rounding
FY 2023

REVISED
FY 2023

PROJECTED
FY 2024

PROPOSED
FY 2025

PROPOSED
FY 2026

FORECAST
FY 2027

FORECAST
FY 2028

FORECAST
FY 2029

FORECAST
FY 2030

FORECAST
FY 2031

FORECAST
FY 2032

FORECAST
FY 2033

FORECAST
ESTIMATED BEGINNING FUND BALANCE
Unrestricted 3,128$ 3,128$ 1,283$ 1,053$ 915$ 647$ 871$ 1,318$ 1,316$ 1,145$ 923$ 1,067$ Reserved or restricted 40,982 40,982 47,157 36,744 32,349 28,679 27,734 26,276 25,061 23,710 22,092 20,102 TOTAL BEGINNING FUND BALANCE 44,11 0$ 44,110$ 48,439$ 37,797$ 33,264$ 29,327$ 28,605$ 27,594$ 26,377$ 24,856$ 23,015$ 21,168$ Business Registration 1,063 1,217 1,266 1,317 1,367 1,419 1,461 1,505 1,550 1,597 1,645 1,694 (a) Charges for Current Services 4,816 7,817 5,123 4,995 5,142 5,296 5,455 5,619 5,787 5,961 6,140 6,325 (b) Fines & Forfeitures 307 307 319 329 339 349 359 370 381 393 404 416 (c) From Other Agencies 41 166 11 12 12 12 13 13 14 14 14 15 (d) Licenses & Permits 2,49 0 2,557 2,590 2,668 2,748 2,830 2,915 3,002 3,092 3,185 3,281 3,379 (e) Other Revenue 908 951 932 915 942 969 998 1,027 1,057 1,088 1,120 1,153 (f) Other Tax 1,950 2,035 2,101 2,121 2,154 2,188 2,222 2,256 2,292 2,328 2,365 2,403 (g) Property Tax 16,524 17,048 17,980 19,238 20,441 21,715 22,538 23,394 24,282 25,205 26,439 27,746 (h) Sales Tax 12,039 12,560 13,064 13,431 13,834 14,249 14,676 15,116 15,570 16,037 16,698 17,299 (i) Transient Occupancy Tax 3,800 3,400 4,200 4,768 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 (j) Use of Money & Property 3,263 3,482 2,975 3,035 3,039 3,091 3,121 3,254 3,324 3,396 3,470 3,546 (k) PAMF Project 847 847 869 890 912 935 959 983 1,007 1,032 1,058 1,085 (l) Vehicle in Lieu 3,56 0 5,746 3,911 4,157 4,437 4,736 4,878 5,024 5,175 5,330 5,490 5,655 (m) TOTAL REVENUES 51,607 $ 58,132$ 55,339$ 57,874$ 61,365$ 63,968$ 65,960$ 68,120$ 70,285$ 72,523$ 75,290$ 78,095$

EXPENDITURES
Salaries & Benefits 18,212 16,379 20,211 20,967 21,280 21,968 22,655 23,356 24,085 24,824 25,697 26,476 (n) Public Safety Legacy Obligations 4,203 4,221 3,470 3,669 3,691 3,729 3,770 3,812 3,855 3,899 3,943 3,991 (o) Operating Expenditures 32,611 33,569 35,112 36,829 39,450 41,077 42,776 44,576 46,429 48,365 50,387 52,500 (p) Capital Outlay 176 176 183 189 194 200 206 212 219 225 232 239 (q) TOTAL EXPENDITURES 55,202 $ 54,345$ 58,977$ 61,653$ 64,615$ 66,975$ 69,408$ 71,956$ 74,588$ 77,313$ 80,260$ 83,205$

TRANSFERS
General Transfers In From Other Funds 685               685                 712               856                 890             926             963             1,001         1,041         1,083         1,126         1,171 Allocations In From Other Funds 3,589            3,589              4,182            4,308             4,436         4,569         4,706         4,847         4,992         5,142         5,296         5,455 Allocations Out to Other Funds (458)             (458)                (590)             (607)               (704)           (725)           (747)           (769)           (792)           (815)           (839)           (864) General Transfers out (373)             (373)                (460)             (460)               (460)           (485)           (485)           (460)           (460)           (460)           (460)           (460) TOTAL TRANSFERS (NET) 3,443 $         3,443$           3,845$         4,096$           4,163$       4,285$       4,437$       4,619$       4,782$       4,950$       5,123$       5,302$ TOTAL CHANGE IN OPERATING FUNDS (152) $           7,229$           207$             317$              913$           1,279$       989$           783$           478$           159$           153$           192$ OTHER SOURCES (USES) OF FUNDS
Transfer Capital Reserve (2,900)           (2,900)            (7,850)          (4,850)            (4,850)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000) One‐time paydown of Unfunded (3,000)          ‐                  ‐               ‐               ‐               ‐               ‐               ‐               ‐               ‐ TOTAL OTHER SOURCES (USES) OF FUNDS (2,900)          (2,900)            (10,850)        (4,850)            (4,850)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000)        (2,000) NET CHANGE IN FUND BALANCE (3,052) $        4,329$           (10,643)$      (4,533)$          (3,937)$      (721)$         (1,011)$      (1,217)$      (1,522)$      (1,841)$      (1,847)$      (1,808)$ GENERAL FUND BALANCE
Unrestricted 1,898$         1,283$           1,053$         915$              647$           871$           1,318$       1,316$       1,145$       923$           1,067$       1,292$ Non‐spendable Fund Balance 1,143           785                 435               435                 435             435             435             435             435             435             435             435 Economic Uncertainty Reserve 9,384           9,239              10,026         10,481           10,661       10,716       10,758       10,793       10,442       10,824       10,434       10,401 Strategic Property Reserve 7,192           7,192              7,192            7,192             7,192         7,192         7,192         7,192         7,192         7,192         7,192         7,192 Assigned Fund Balance ‐
Unfunded Liabilities 3,000           3,000              ‐                 ‐                  ‐               ‐               ‐               ‐               ‐               ‐               ‐               ‐ Facilities and Infrastructure 18,442         26,942           19,092         14,242           10,392       9,392         7,892         6,642         5,642         3,642         2,042         42 Reserved or restricted 39,161$       47,157$         36,744$       32,349$         28,679$     27,734$     26,276$     25,061$     23,710$     22,092$     20,102$     18,068$ TOTAL ENDING FUND BALANCE $     41,059   $        48,439   $      37,797   $        33,264   $    29,327   $    28,605   $    27,594   $    26,377   $    24,856   $    23,015   $    21,168   $    19,360 (a) Business Registration revenues assume increases of 4% based on the City's Municipal Code. (b) Current Charges for Services assumes 3% inflationary increases each year.  This revenue can also fluctuate based on the timing of large development plan check fees expected (c) Fines and Forfeiture revenues in FY 23 and beyond reflect 3% annual inflationary increases. (d) From Other Agencies is revenue received from grant funding which can vary from year to year. (e)  Licenses and Permit revenue can fluctuate from year to year based on the timing of large development.  Future years assume inflationary increases of 3% (f) Other Revenues include cost reimbursements, donations and other miscellaneous receipts.  Future years include inflationary increases of 3% (g) Other taxes include franchise taxes from utilities and the forecasts are based on trend data. (h) Property tax projections are developed in conjunction with our 3rd party consultants.  Revenues can vary from year to year based on completion of large developments (i) Sales tax projections assume general inflationary increases and in conjunction with information from our 3rd party consultants (j) Transient Occupancy Tax projections assume a return to business travel and increases in occupancy rates. (k) Other Uses of Money and Property include investment income and property leases.  Future years assume inflationary increases and use of funds to cover capital expenditures (l) Palo Alto Medical Foundation (PAMF) revenues are forecasted based on contracted amounts. (m) Vehicle in Lieu revenue projections are forecasted based on information from our third party consultants as well as the County of San Mateo. (n) Salaries and benefits assumes cost increases for pension and health care based on known and projected negotiated benefits. (o) Public Safety Obligations include costs related to the Belmont San Carlos Fire Department (BCSFD) totaling $3.25m/yr which CalPERS shows as paid off effective 6/2033 (p) Operating expenses projections include known increases based on contractual obligations with our Public Safety contracts as well as inflationary assumptions ranging from 3‐5% (q) Capital outlay projections include normal inflationary increases of 3%.

CITY OF SAN CARLOS
GENERAL FUND LONG TERM FORECAST (in thousands)

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Packet Pg. 165

CITY COUNCIL Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

REVENUES - - - - - - ALLOCATIONS IN 27,200 27,200 27,900 27,900 33,100 34,100 SALARIES & BENEFITS 153,500 150,224 159,500 145,625 159,500 163,200 OPERATING EXPENSES 194,700 161,499 221,900 206,900 204,900 189,200 CAPITAL OUTLAY - - - 1,500 - - ALLOCATIONS & TRANSFERS OUT 2,800 2,800 2,900 2,900 3,100 3,200 NET GENERAL FUND EXPENSE (REVENUE) ----> 323,800 287,322 356,400 329,025 334,400 321,500 CITY MANAGER Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
REVENUES 120,000 45,658 120,000 120,000 124,000 127,100 ALLOCATIONS IN 223,800 223,800 230,500 230,500 272,300 280,400 SALARIES & BENEFITS 1,496,700 1,395,796 1,776,700 1,678,405 1,946,975 2,025,380 OPERATING EXPENSES 743,100 488,790 913,700 880,700 959,600 991,900 CAPITAL OUTLAY 4,000 12,077 4,100 4,100 4,300 4,400 ALLOCATIONS & TRANSFERS OUT 17,000 17,000 17,500 17,500 22,500 23,200 NET GENERAL FUND EXPENSE (REVENUE) ----> 1,917,000 1,644,205 2,361,500 2,230,205 2,537,075 2,637,380 CITY ATTORNEY/LEGAL SERVICES Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
REVENUES - 40,530 - - - - ALLOCATIONS IN 202,500 202,500 208,600 208,600 245,700 253,100 SALARIES & BENEFITS 44,300 46,752 48,600 48,600 612,850 634,950 OPERATING EXPENSES 532,400 500,581 548,400 548,400 305,900 170,800 ALLOCATIONS & TRANSFERS OUT 500 500 500 500 6,400 6,500 NET GENERAL FUND EXPENSE (REVENUE) ----> 374,700 304,803 388,900 388,900 679,450 559,150 CITY CLERK Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
REVENUES 1,000 426 1,000 1,000 1,000 1,000 ALLOCATIONS IN 100,400 100,400 103,400 103,400 122,200 125,800 SALARIES & BENEFITS 377,850 347,569 393,950 382,400 435,650 454,050 OPERATING EXPENSES 197,400 79,694 267,650 267,650 278,400 286,700 ALLOCATIONS & TRANSFERS OUT 5,600 5,600 5,700 5,700 6,200 6,300 NET GENERAL FUND EXPENSE (REVENUE) ----> 479,450 332,037 562,900 551,350 597,050 620,250 CITY TREASURER Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

REVENUES - - - - - - ALLOCATIONS IN 11,700 11,700 12,000 12,000 14,200 14,600 SALARIES & BENEFITS 30,700 21,576 31,900 23,000 31,900 33,100 OPERATING EXPENSES 1,500 - 1,500 1,500 1,500 1,500 ALLOCATIONS & TRANSFERS OUT 500 500 500 500 600 600 NET GENERAL FUND EXPENSE (REVENUE) ----> 21,000 10,376 21,900 13,000 19,800 20,600 ADMINISTRATIVE SERVICES Revised Audited Revised Projected Proposed Proposed (includes: Admin, Finance, HR, & IT) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 2,376,800 (249,346) 2,606,200 2,959,100 2,514,700 2,353,200 ALLOCATIONS IN 1,190,700 1,190,700 1,226,500 1,226,500 1,421,600 1,464,100 SALARIES & BENEFITS 2,926,900 2,737,738 3,270,400 3,139,320 3,645,050 3,786,050 OPERATING EXPENSES 1,693,600 1,441,932 1,854,100 1,854,100 1,899,400 1,960,100 CAPITAL OUTLAY 12,700 10,915 21,000 19,500 21,800 22,500 ALLOCATIONS & TRANSFERS OUT 69,000 69,000 70,900 70,900 79,300 81,600 NET GENERAL FUND EXPENSE (REVENUE) ----> 1,134,700 3,318,231 1,383,700 898,220 1,709,250 2,032,950

GENERAL FUND DEPARTMENT SUMMARIES

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Packet Pg. 166

GENERAL FUND DEPARTMENT SUMMARIES
GENERAL FUND Revised Audited Revised Projected Proposed Proposed (not specific to any Department or Division) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 36,021,100 39,635,861 40,480,800 43,542,500 43,893,800 46,401,340 ALLOCATIONS IN 658,700 658,700 685,000 685,000 712,400 855,800 SALARIES & BENEFITS 150,586 140,000 - - 3,000,000 - OPERATING EXPENSES 754,500 353,033 353,600 1,434,600 353,700 353,800 CAPITAL OUTLAY 72,300 38,269 74,500 74,500 77,500 79,800 ALLOCATIONS & TRANSFERS OUT 1,188,700 1,188,700 3,157,500 3,157,500 8,234,000 5,234,000 NET GENERAL FUND EXPENSE (REVENUE) ----> (34,513,714) (38,574,559) (37,580,200) (39,560,900) (32,941,000) (41,589,540) COMMUNITY DEVELOPMENT Revised Audited Revised Projected Proposed Proposed (includes: Admin, Permit Svcs, Ec Dev, Key Prj Dev) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 4,508,000 6,017,022 4,479,200 7,533,300 4,581,200 4,409,600 ALLOCATIONS IN 204,000 204,000 405,200 405,200 421,400 434,100 SALARIES & BENEFITS 3,335,000 2,923,818 4,852,100 4,127,900 5,172,300 5,368,400 OPERATING EXPENSES 3,899,200 3,394,783 3,508,000 3,508,000 3,557,900 3,664,500 CAPITAL OUTLAY 2,200 1,240 2,300 2,300 2,400 2,500 ALLOCATIONS & TRANSFERS OUT 73,000 73,000 75,200 75,200 102,400 105,600 NET GENERAL FUND EXPENSE (REVENUE) ----> 2,597,400 171,819 3,553,200 (225,100) 3,832,400 4,297,300 PARKS & RECREATION Revised Audited Revised Projected Proposed Proposed (incl: Admin, Recreation) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 1,475,400 2,047,887 2,327,500 2,337,500 2,627,400 2,733,450

ALLOCATIONS IN - - - - - - SALARIES & BENEFITS 2,382,650 2,114,536 2,732,450 2,542,820 2,950,450 3,052,900 OPERATING EXPENSES 1,382,500 1,457,892 1,904,100 1,904,100 2,119,900 2,192,415 CAPITAL OUTLAY 17,900 2,368 18,500 18,500 19,200 19,800 ALLOCATIONS & TRANSFERS OUT 67,400 67,400 69,300 69,300 84,700 87,200 NET GENERAL FUND EXPENSE (REVENUE) ----> 2,375,050 1,594,310 2,396,850 2,197,220 2,546,850 2,618,865 PUBLIC SAFETY Revised Audited Revised Projected Proposed Proposed (includes: Police Bureau and Fire Department) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 562,300 678,826 586,700 604,500 599,300 617,400

ALLOCATIONS IN - - - - - - SALARIES & BENEFITS 4,256,100 4,138,728 4,450,700 4,420,431 3,749,500 3,957,200 OPERATING EXPENSES 18,054,100 16,820,271 19,292,500 19,217,950 21,386,700 22,535,470

CAPITAL OUTLAY - - - - - - ALLOCATIONS & TRANSFERS OUT 114,300 114,300 117,700 117,700 82,500 82,700 NET GENERAL FUND EXPENSE (REVENUE) ----> 21,862,200 20,394,474 23,274,200 23,151,581 24,619,400 25,957,970 PUBLIC WORKS Revised Audited Revised Projected Proposed Proposed (includes: Admin, Fleet, Streets, Park & Bldg Maint) 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 REVENUES 976,500 1,404,804 1,005,700 1,033,700 997,90 0 1,230,600 ALLOCATIONS IN 1,237,600 1,237,600 1,374,800 1,374,800 1,651,800 1,701,500 SALARIES & BENEFITS 3,400,725 2,970,332 4,698,975 4,091,875 4,977,375 5,160,075 OPERATING EXPENSES 3,663,700 3,561,198 3,745,100 3,745,100 4,044,300 4,482,500 CAPITAL OUTLAY 54,200 14,170 55,700 55,700 57,900 59,700 ALLOCATIONS & TRANSFERS OUT 206,600 206,600 213,000 213,000 278 ,000 286,500 NET GENERAL FUND EXPENSE (REVENUE) ----> 5,111,125 4,109,897 6,332,275 5,697,175 6,707,875 7,056,675 TOTAL GENERAL FUND CHANGE (SURPLUS) 1,682,711 (6,407,086) 3,051,625 (4,329,324) 10,642,550 4,533,100

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Packet Pg. 167

GENERAL FUND OPERATING BUDGET
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
FY 2024 Revenues FY 2025 Revenues
Other Tax $2.10 $2.12
Other $2.15 $2.14
Licenses & Permits $2.59 $2.67
Uses of Money & Property $2.97 $3.03
Vehicle in Lieu $3.91 $4.16
Charges for Services $5.12 $4.99
TOT/Business Registration $5.46 $6.09
Sales Tax $13.06 $13.43
Property Tax $17.98 $19.24

GENERAL FUND REVENUES
$ in Millions
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
FY 2024 Expenditures FY 2025 Expenditures
Parks & Recreation $5.09 $5.27
Community Development $8.73 $9.04
Public Works $9.08 $9.70
General Government $10.94 $11.15
Fire $12.24 $12.41
Police $12.89 $14.08

GENERAL FUND EXPENDITURES
$ in Millions

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Packet Pg. 168

GENERAL FUND ALLOCATIONS IN (0001) Revised Audited Revised Projected Proposed Proposed FOR SERVICES PROVIDED 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM WASTEWATER (0006) 2,311,100 2,311,100 2,480,500 2,480,500 2,929,700 3,017,700 FROM GAS TAX (0016) 283,700 283,700 292,200 292,200 403,800 415,800 FROM STORMWATER (0015) 161,600 161,600 166,400 166,400 173,100 178,200 FROM HOUSING (0029) 102,000 102,000 305,100 305,100 317,300 326,900 FROM HOUSING COMPLIANCE AND ASSISTANCE (0031) 102,000 102,000 100,100 100,100 104,100 107,200 FROM WORKERS COMPENSATION (0032) 99,500 99,500 102,500 102,500 106,500 109,700 FROM RISK MANAGEMENT (0033) 138,000 138,000 142,100 142,100 147,800 152,200 SUB TOTAL GENERAL FUND----> 3,197,900 3,197,900 3,588,900 3,588,900 4,182,300 4,307,700 WASTEWATER FUND ALLOC IN (0006)
FOR SERVICES PROVIDED 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM GENERAL FUND (0001) 25,200 25,200 26,000 26,000 52,100 53,700 FROM GAS TAX (0016) 229,500 229,500 236,400 236,400 245,900 253,300 FROM STORMWATER (0015) 279,000 279,000 290,100 290,100 351,700 362,300 SUB TOTAL WASTEWATER ----> 533,700 533,700 552,500 552,500 649,700 669,300 WORKERS COMP ALLOC IN (0032)
FOR SERVICES PROVIDED 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM GENERAL FUND (0001) 190,800 190,800 196,500 196,500 268,600 276,500 FROM WASTEWATER (0006) 89,000 89,000 91,700 91,700 113,500 116,900 SUB TOTAL WORKERS COMP ----> 279,800 279,800 288,200 288,200 382,100 393,400 RISK MANAGEMENT ALLOC IN (0033)
FOR SERVICES PROVIDED 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM GENERAL FUND (0001) 228,500 228,500 235,200 235,200 269,000 277,200 FROM WASTEWATER (0006) 735,400 735,400 757,500 757,500 822,200 846,900 FROM STORMWATER (0015) 100,600 100,600 103,600 103,600 113,900 117,300 FROM GAS TAX (0016) 470,900 470,900 485,000 485,000 531,100 547,000 SUB TOTAL RISK MGMT ----> 1,535,400 1,535,400 1,581,300 1,581,300 1,736,200 1,788,400 TOTAL ALLOCATIONS IN ----> 5,546,800 5,546,800 6,010,900 6,010,900 6,950,300 7,158,800

ALLOCATION AND TRANSFER SUMMARY
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed

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Packet Pg. 169

ALLOCATION AND TRANSFER SUMMARY
GENERAL FUND TRANSFERS IN (0001)
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
WASTEWATER RIGHT OF WAY (0006) 658,700 658,700 685,000 685,000 712,400 740,900 CLOSE OUT LIBRARY TENANT FUND (0095) - - - - - 114,900 SUB TOTAL ----> 658,700 658,700 685,000 685,000 712,400 855,800 EQUIPMENT REPLACEMENT (0010)
TRANSFERS IN 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FOR EQUIPMENT REPLACEMENT 265,200 265,200 273,000 273,000 260,000 260,000 FOR TECHNOLOGY REPLACEMENT 35,700 35,700 100,000 100,000 200,000 200,000 SUB TOTAL ----> 300,900 300,900 373,000 373,000 460,000 460,000 GAS TAX (0016)
TRANSFERS IN 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM GENERAL FUND (0001) - - 400,000 400,000 2,850,000 2,850,000 FROM MEASURE A/K FUND (0014) 750,000 750,000 1,150,000 1,150,000 1,200,000 1,236,000 FROM MEASURE W FUND (0018) 300,000 300,000 600,000 600,000 495,000 406,900 FROM CAPITAL IMPROVEMENT FUND (0025) 2,975,000 2,975,000 3,125,000 3,125,000 3,275,000 3,275,000 SUB TOTAL ----> 4,025,000 4,025,000 5,275,000 5,275,000 7,820,000 7,767,900 CAPITAL IMPROVEMENTS (0025)
TRANSFERS IN 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 PRIOR YR SAVINGS FROM GENERAL (0001) 1,000,000 1,000,000 2,500,000 2,500,000 5,000,000 2,000,000 FROM PARK IN-LIEU FUND (0027) 200,000 200,000 1,400,000 1,400,000 - - CLOSE OUT PARKING IN LIEU FUND (0028) - - - - 250,000 29,672 CLOSE OUT LIBRARY TENANT FUND (0095) - - - - - 696,764 SUB TOTAL ----> 1,200,000 1,200,000 3,900,000 3,900,000 5,250,000 2,726,436 LMI HOUSING FUND (0031)
TRANSFERS IN 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 FROM HOUSING IN LIEU FUND (0029) - - - 310,000 - - SUB TOTAL ----> - - - 310,000 - - DEBT SERVICE FUND (0093)
TRANSFERS IN 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25 CLOSE OUT LIBRARY TENANT FUND (0095) - - - - - 322,870 SUB TOTAL ----> - - - - - 322,870 TOTAL TRANSFERS IN ----> 6,184,600 6,184,600 10,233,000 10,543,000 14,242,400 12,133,006 Proposed Revised Audited Revised Projected Proposed
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed
Revised Audited Revised Projected Proposed Proposed

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REVENUE BUDGET ASSUMPTIONS

The Administrative Services Director and the Finance Division prepare the revenue projections and review these projections with the City Manager and Assistant City Manager. To make these projections as close as possible to actual, the following techniques are used depending on the revenue source’s unique characteristics. In practice, most revenue source projections combine several of the methodologies:

Informed Expert Judgment . The Administrative Services Director and Financial Services Manager meet with the department heads to discuss trends in revenues in their respective areas.

In addition, staff meets with an outside consultant who reviews the property tax, sales tax, business registration, and transient occupancy taxes (TOT) on a regular basis to discuss potential increases or decreases to those revenue streams.

Trending. The Finance Division estimates current year and projects future year revenues based on a combination of current trends and historical performance.

Economic Models. The Finance Division relies on anticipated changes to local, regional , and national economic conditions and their resulting effects on individual revenue sources.

Estimates from the State of California and San Mateo County. The Finance Division reviews the information regarding property tax assessed value, transfer payments , and refunds from the Education Relief Augmentation Fund (ERAF) that is provided by the State and County.

Non-recurring revenues are forecasted separately and scheduled only for the year or years in which they are anticipated. Certain revenue sources are limited in use by law or local policy, such as: gasoline taxes , development charges, Measure "A"/Measure “K” taxes, Measure “W taxes , assessment district charges, and grants. Forecasts of expenditures for public street construction and other capital improvements are identified separately for comparison with their restricted revenue sources.

Unlike appropriations that can be established at the direction of the City, many key revenues are controlled by external forces . For instance, p roperty tax revenues vary with real estate values, and development-related revenue is affected by the volume and type of building permits and plan check requests. Sales tax and TOT revenues are subject to local and national economic cycles, businesses’ decisions to locate in the community, and travel activity of businesses and tourists.

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The chart below reflects Citywide revenues proposed in the Biennial Budget for Fiscal Year (FY) 2023-24 and FY 2024-25.

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2024
FY2025
FY2024 FY2025
Fines & Forfeitures/PAMF 1% 1%
Licenses & Permits 2% 2%
Transient Occupancy Tax 4% 4%
Other Revenue 4% 4%
Business Reg/Other Tax 3% 3%
Vehicle In Lieu 3% 4%
Use Of Money & Property 3% 3%
Charges For Current Services 4% 4%
Capital Projects Funding 26% 21%
Sales Tax 11% 12%
Property Tax 16% 18%
Enterprise Revenues 24% 25%
FY 2024 & FY 2025 Citywide Operating Revenues By
Major Category and Source

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DESCRIPTION OF GENERAL FUND REVENUE SOURCES

The majority of the City’s General Fund revenue is produced from a small number of sources, e.g.: sales tax, property tax, vehicle license fees, business registration, charges for services, and TOT. The table below outlines the General F und revenue estimates for the Biennial Budget for FY 2023-25. The sections following the table discuss the assumptions used in determining the revenue estimates.

Revenue Type
FY 2023-24
Proposed
% of
Total
FY 2024-25
Proposed
% of
Total
PROPERTY TAX $17,980,000 32% $19,238,000 33%
SALES TAX 13,063,900 24% 13,430,670 23% CHARGES FOR SERVICES 5,122,800 9% 4,994,550 9%
TRANSIENT OCCUPANCY TAX 4,200,000 8% 4,768,000 8%
VEHICLE IN LIEU 3,911,000 7% 4,157,000 7%
USE OF MONEY & PROPERTY 2,974,500 6% 3,034,700 6%
LICENSES & PERMITS 2,589,800 5% 2,667,500 5%
OTHER REVENUE CATEGORIES 2,130,300 4% 2,145,270 4%
OTHER TAX 2,101,100 4% 2,121,400 4%
BUSINESS REGISTRATION 1,265,900 2% 1,316,600 2%
TOTAL $55,339,300 100% $57,873,690 100%

Property Taxes
FY 2023-24. Property tax revenue is collected and distributed by the County of San Mateo based on applying the constitutionally limited tax rate of 1% to the assessed value of certain secured and unsecured properties as determined by the County Assessor.

The City’s share of this property tax revenue is approximately 13-14%, less the rebate back to the State for ERAF, which results in about 11 cents per dollar of tax collected in revenue for the City. The City of San Carlos and the County of San Mateo have entered into a Teeter agreement, whereby the City receives 100% of its share of the taxes assessed, with the County retaining all delinquent penalties and interest collected. Property tax is approximately 3 2% of General Fund revenues.

The City considers the historical rate of changes and economic conditions when forecasting future revenue and works with a third-party consultant to analyze the data. For FY 2023-24, property tax is projected to increase 5.5% over the FY 20 22-23 projections. The primary reason for the increase is due to increases in the property tax assessment rolls to account for changes in property ownership and tenant improvements. The assessment rolls increased $1.74 billion, or 13%, over the prior fiscal year.

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FY 2024-25. For FY 2024-25, property tax is projected to increase by 7.0% over the FY 2023-24 budgeted property tax revenues. This continues to assume growth in the assessment rolls associated with the large-scale development projects on the east side of the City. Staff continues to work closely with the City’s consultants to project and monitor this revenue.

Sales Tax
FY 2023-24. Sales tax is collected by the State Board of Equalization against tangible items. The local portion is distributed to cities and counties based on the location of the sale. The City considers the historical rate of change and economic conditions and works with a third-party consultant to analyze the data when forecasting future revenue. For FY 202 3-24, sales tax is projected to grow 4 % over the FY 202 2-23 projections. Steady building materials, plumbing- electrical and contractor sales activity, purchases of non-auto equipment and continued patronage of restaurants is driving these increases. Sales tax is approximately 24 % of General Fund revenues.

FY 202 4-25. For FY 202 4-25, sales tax is projected to grow at 2.8% over the FY 202 3-24 budgeted sales tax revenues as a result of assumed inflationary increases . This revenue is reviewed quarterly with our third-party consultants and is adjusted based on current and projected activity.

Charges for Current Services
FY 2023-24. Cost of Services fees are revised on an annual basis by the Consumer Price Index (CPI) and every three to five years based on a comprehensive review of actual costs . The last comprehensive study was performed in June 2022. This revenue source is approximately 9% of General Fund revenues. The decrease of 34.5% over the FY 2022-23 projections is primarily due to one-time plan check revenue that was received from large developments on the east side of the city. The timing of the receipt of these fees is difficult to predict and can vary from year to year.

Although the revenue is projected to decrease from FY 2022-23 projections, it is anticipated to increase 6.4% over the FY 2022-23 revised budget. The FY 2023-24 budget assumes some fees from development projects and multi -residential projects expected to be submitted for review.

These fees are typically pass through revenues and have a corresponding expense for professional consulting and technical experience necessary to facilitate these projects.

FY 2024-25. For FY 2024-25, revenues are projected to decrease by 2.5%, due to the timing of large development plan check activities. As noted above, the timing of large-scale development projects can cause this category to fluctuate from year to year. There may be more projects on the horizon that would increase this revenue stream which will be adjusted during the mid-cycle budget review.

Transient Occupancy Tax (TOT)
FY 2023-24. Effective January 1, 2019, in compliance with the November 2018 statewide election results for Measure QQ and subsequent adoption of City of San Carlos Ordinance 1532 on December 10, 2018, the Uniform Transient Occupancy Tax on hotel guests increased from 10% to 12%, with a 0.5% increase per year for subsequent years up to a maximum rate of 14%. As of January 1, 2023, the TOT rate is 14%. The tax is paid by the guests staying at these accommodations and remitted by the hotels to the City on a quarterly basis. After the onset of the COVID-19 pandemic, hotel occupancy dropped significantly following the State’s stay -at-home orders. Although the hotel industry began to rally in FY 2021-22 following the COVID -19

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pandemic, the industry has not yet returned to historical occupancy as business travel has not yet fully returned to pre-pandemic rates. The proposed budget includes the addition of one hotel that has been going through renovations for several years. As such, the revenue for FY 2023-24 is budgeted at $4.2 million, or 23.5% higher than FY 2022-23 projections.

FY 2024-25. The revenue for FY 2023-24 is budgeted at $4.8 million, as a result of the anticipated rise in occupancy rates following the return and demand for business and residential travel.

Vehicle in-Lieu
FY 202 3-24. This revenue is generated by vehicle registration fees. Vehicle in-Lieu is approximately 7% of G eneral Fund revenues. As a result of the passage of the Budget Act of 2004, the majority of this revenue is now “backfilled” by the County, as a “property tax in-lieu” payment rather than paid directly by the State. The FY 2004-05 payments received by the City established the base year for this revenue stream . All future payments to cities are supposed to be based on the growth in assessed valuation s rather than actual vehicle license fee revenue received by the State. The County has informed the City that if the “backfilled” amount exceeds a certain limit, there will not be enough money to fully cover the amount owed. As a result, San Mateo County experienced countywide shortfalls in prior years. The FY 2022-23 projection includes a one-time repayment of this revenue in the amount of $2.2 million from FY 2020-21.

The FY 2023-24 Vehicle in-Lieu is projected to decrease 31.9% over the FY 2022-23 projections due to the reimbursement in FY 2022-23.

FY 2024-25. For FY 2024-25, revenue is budgeted at $4.2 million, with a 6.3% increase over the FY 2023-24 budgeted vehicle in-lieu revenue, which is based on the information provided by the City’s third-party consultants.

Use of Money and Property
FY 2023-24. This revenue is generated from property rentals and investment income. For FY 2023-24, this revenue category is estimated to be 14.6%, or $507,200 lower than the FY 2022- 23 projections. The decrease is due to the assumption of the timing of cash disbursements and the allocations of the total investment portfolio amongst all of the funds. At the end of each quarter, investment income is allocated based on the percentage of cash in each fund. The amount of allocation can change from year to year based on the total cash balance held in each fund.

FY 2024-25. The FY 2024-25 revenue estimates reflect an increase of 2% increase over the FY 2024-25 estimates.

Licenses & Permits
FY 2023-24. This revenue is generated by construction permits. For FY 202 3-24, this revenue category is expected to increase by 1.3%, from the FY 2022-23 projections. The timing of when developers pull their permits can vary, and as such, this category can fluctuate greatly from year to year.

FY 2024-25. The FY 2024-25 revenue estimates are 3% higher than the FY 2023-24 estimates.

Other Taxes

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FY 2023-24. The revenue includes franchise taxes from utilities. It is budgeted to increase by

3.2% over the FY 2022-23 projections.

FY 2024-25. The FY 2024-25 revenue estimates are 1% higher than the FY 2023-24 estimates based on historical run rates.

Business Registration Fee
FY 2023-24. This revenue is generated by a registration fee paid by all businesses operating within the city. This revenue source is approximately 2% of General Fund revenues.

As written in the City’s Municipal Code, business registration will increase annually by 4%.

Revenues are estimated to increase by 4.0% over FY 2022-23 projections , which is in line with the increase specified in the City’s Municipal Code.

FY 2024-25. Business registration revenues for FY 2024-25 are budgeted to increase by 4% over the FY 202 3-24 estimates, which is in line with the annual increase specified by the Municipal Code.

DESCRIPTION OF WASTEWATER FUND REVENUE SOURCES

The majority of the City’s Wastewater Fund (Enterprise) revenue comes from wastewater rates and collection fees. The table below outlines the w astewater revenue estimates for the Biennial Budget for FY 2023-25. The sections following the table discuss the assumptions used in determining the revenue estimates.

Revenue Type
FY 2023-24
Proposed
% of
Total
FY 2024-25
Proposed
% of
Total
WASTEWATER COLLECTION $27,129,200 97% $26,931,400 97%
USE OF MONEY & PROPERTY 737,300 4% 814,600 6%
TOTAL $27,866,500 100% $27,746,000 100%

Wastewater Collection Fees
FY 2023 -24. The City owns and operates a wastewater collection system consisting of approximately 105 miles of sanitary sewer pipelines and six pump stations. The City’s sewer utility system is paid for by a self‐ supporting enterprise fund, with sewer service charges providing roughly 97% of total revenues. As such, the City’s sewer rates need to be set at levels adequate to fund the cost of providing wastewater service. These costs include both the City’s sewer collection system operating and capital improvement funding needs, and the Ci ty’s share of the cost for treatment plant operations and debt service.

The City also requires sewer connection fees on new or expanded connections to the sewer system. Connection fees are levied as a condition of development or change in use, and are designed to recover the cost of capacity in infrastructure and assets benefitting new development.

These capacity charges are one‐ time fees, paid up‐ front as a condition of new development or expansion.

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FY 2023-24 revenue estimates are $27.87 million, which represents an increase of 30%, over the FY 2022-23 projections. The budgeted amount includes an assumption of $5 million in new development connection fees. Following a recent sewer rate study, staff proposed to forgo sewer rate increases in FY 2023-24.

FY 2024-25. The FY 2024-25 revenue estimates reflect a decrease of 0.4 %. Although it is estimated that there will be a 3% rate increase to the ratepayers, revenue estimates do not include large development connection fees.

Other Revenue Categories
FY 2023-24. This revenue is generated from investment income. For FY 2023-24, this revenue category is estimated to be 39% higher than the FY 2022-23 projections. The increase is due to the assumption of the timing of cash receipts from capacity fees noted above and the allocations of the total investment portfolio amongst all of the funds. At the end of each quarter, investment income is allocated based on the percentage of cash in each fund. The amount of allocation can change from year to year based on the total cash balance held in each fund.

FY 2024-25. The FY 2024-25 revenue estimates reflect an increase of 10% increase over the FY 2024-25 estimates.

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GENERAL FUND REVENUES (0001) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
BUSINESS REGISTRATION 996,000 1,110,893 1,063,400 1,217,300 1,265,900 1,316,600 CHARGES FOR CURRENT SERVICES 4,693,200 5,445,118 4,816,000 7,817,300 5,122,800 4,994,550 FINES & FORFEITURES 297,900 218,320 306,700 306,700 319,000 328,700 FROM OTHER AGENCIES 10,600 254,767 40,800 165,700 11,200 11,600 LICENSES & PERMITS 1, 899,400 3,591,937 2,490,200 2,556,500 2,589,800 2,667,500 OTHER REVENUE 791,800 986,190 907,800 951,000 931,600 914,800 OTHER TAX 1,906,200 2,104,957 1,949,900 2,035,000 2,101,100 2,121,400 PROPERTY TAX 15,242,000 15,311,185 16,524,000 17,048,000 17,980,000 19,238,000 SALES TAX 11,426,200 13,019,557 12,038,500 12,559,600 13,063,900 13,430,670 TRANSIENT OCCUPANCY TAX 1,957,900 2,136,750 3,800,000 3,400,000 4,200,000 4,768,000 PAMF TARGET REVENUE 826,600 826,615 847,300 847,300 868,500 890,170 USE OF MONEY & PROPERTY 3,086,300 1,111,093 3,262,500 3,481,700 2,974,500 3,034,700 VEHICLE IN LIEU 2,907,000 3,504,285 3,560,000 5,745,500 3,911,000 4,157,000 SUB TOTAL ----> 46,041,100 49,621,668 51,607,100 58,131,600 55,339,300 57,873,690 WASTEWATER FUND REVENUE (0006)
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
OTHER REVENUE 20,950,000 21,836,541 21,904,000 20,870,323 27,129,200 26,931,400 USE OF MONEY & PROPERTY 317,200 (686,203) 362,800 530,800 737,300 814,600 SUB TOTAL ----> 21,267,200 21,150,338 22,266,800 21,401,123 27,866,500 27,746,000

OTHER REVENUES
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
GRANTS - POLICE (0017) 168,100 155,670 173,700 172,700 181,300 187,100 LIBRARY TENANT REVENUE (0095) 271,400 11,236 282,800 284,400 283,800 - NPDES/ STORMWATER FUND (0015) 700,200 692,911 713,400 703,500 713,100 719,700 SUB TOTAL ----> 1,139,700 859,817 1,169,900 1,160,600 1,178,200 906,800 OPERATING SUB TOTAL ----> 68,448,000 71,631,823 75,043,800 80,693,323 84,384,000 86,526,490

CAPITAL FUND REVENUES
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
EQUIPMENT REPLACEMENT FUND (0010) - - - - - - MEASURE A/K FUND (0014) 869,600 1,032,159 917,700 1,206,900 1,234,500 1,257,000 MEASURE W FUND (0018) 363,650 465,386 383,350 386,750 395,500 407,500 GAS TAX (0016) 2,114,000 1,446,257 1,728,700 1,978,800 1,899,300 1,968,500 CAPITAL IMPROVEMENT (0025) 4,239,400 9,741,804 8,158,547 9,715,947 7,192,100 9,017,800 CHILD CARE (0026) - - - - 3,671,700 1,578,400 PARK IN LIEU (0027) 462,300 671,973 475,800 447,900 297,100 1,158,900 PARKING IN LIEU (0028) 6,900 (2,381) 7,500 8,600 700 - AFFORDABLE HOUSING IN LIEU (0029) 466,400 4,042,897 5,386,300 691,500 15,167,000 7,618,600 LOW-MOD HOUSING ASSET (0031) 126,500 29,843 141,100 32,800 34,300 35,300 CAPITAL SUB TOTAL ----> 8,648,750 17,427,937 17,198,997 14,469,197 29,892,200 23,042,000

CITY DEBT SERVICE
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SC LIBRARY - BOND SERVICE (0093) 337,900 355,742 339,900 419,700 427,500 412,000 CITY DEBT SERVICE FUND TOTAL ----> 337,900 355,742 339,900 419,700 427,500 412,000

INTERNAL SERVICE FUNDS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
WORK COMPENSATION INSURANCE (0032) 5,400 (7,373) 6,200 5,200 5,700 5,000 LIABILITY INSURANCE (0033) 14,900 (29,535) 17,100 18,100 26,300 27,500 POST-EMPLOYMENT BENEFITS (0035) 693,900 675,034 795,400 795,000 1,114,700 1,186,700 INTERNAL SERVICE FUND TOTAL ----> 714,200 638,126 818,700 818,300 1,146,700 1,219,200 GRAND TOTAL 78,148,850 90,053,629 93,401,397 96,400,520 115,850,400 111,199,690 Proposed
Proposed
Proposed
Proposed
Proposed
Revised Audited Revised
Revised Audited Revised
Audited Revised
Revised Audited Revised

REVENUES BY MAJOR CATEGORY AND SOURCE
Proposed
Proposed
Proposed
Proposed
Proposed
Projected
Projected
Projected
Projected
Projected
RevisedAuditedRevised
Revised

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GENERAL FUND (0001)
BUSINESS REGISTRATION Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
406001 BUSINESS REGISTRATION FEE 981,000 1,061,174 1,048,400 1,156,300 1,205,900 1,254,800 406100 BUSINESS REGISTRATION LATE FEE 15,000 49,719 15,000 61,000 60,000 61,800 SUB TOTAL ----> 996,000 1,110,893 1,063,400 1,217,300 1,265,900 1,316,600 CHARGES FOR CURRENT SERVICES Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
407007 ZONING/VARIANCE/USE PERMIT FEE 357,600 625,699 366,800 600,000 381,500 392,900 407009 PLANNING DEPT- KEY DEVELOPMENT 838,100 1,009,875 763,800 900,000 844,400 869,700 407011 PLAN CHECK - ENGINEERING 315,100 331,735 324,400 324,400 337,400 347,500 407012 PLAN CHECK - ACCESSIBILITY 2,000 7,493 2,000 2,000 2,100 2,200 407013 PLAN CHECK - ENERGY CALCULATION 26,600 38,502 27,400 27,400 28,500 29,400 407015 PLAN CHECK - BUILDING 1,675,400 1,305,832 1,128,100 3,750,000 1,046,000 768,400 407018 APARTMENT INSPECTION FEES 31,600 - 32,500 32,500 33,800 34,800 407019 GIS FEES 9,300 13,109 9,600 9,600 10,000 10,300 407033 PLAN CHECK FEES 79,100 158,918 75,100 75,100 78,100 80,400 407034 INSPECTION FEE 54,700 61,597 56,300 56,300 58,600 60,400 407035 MISCELLANEOUS SERVICES - 45 - - - - 407036 ADV LIFE SUPPORT/FIRST RESPONSE 58,900 50,184 60,700 60,700 63,100 65,000 408101 RECREATION 79,000 115,606 251,000 251,000 327,000 336,850 408105 VENDING MACHINE CONTRACT 1,000 376 1,000 1,000 1,000 1,000 408200 CLASS SYSTEM 987,000 1,473,591 1,479,200 1,479,200 1,699,400 1,777,400 408501 BUILDING RENTAL DEPOSIT/REFUND 32,000 33,017 35,900 35,900 39,800 41,100 408502 ADMINISTRATIVE FEE 60,000 114,692 76,100 86,100 31,200 32,100 408510 RESERVATIONS 51,800 80,432 75,000 75,000 92,000 94,700 408601 GENERAL RECEIPTS 2,000 - 4,100 4,100 - - 430012 FIRST CHANCE FEE 2,000 305 2,000 2,000 2,100 2,200 430015 ALARM RESPONSE 30,000 24,079 45,000 45,000 46,800 48,200 SUB TOTAL ----> 4, 693,200 5,445,118 4,816,000 7,817,300 5,122,800 4,994,550 FINES & FORFEITURES Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
410001 VEHICLE CODE FINES 147,900 106,134 152,300 152,300 158,400 163,200 410004 BUILDING PERMITS VIOLATIONS 2,000 13,900 2,000 2,000 2,100 2,200 410005 NSF CHARGE 100 100 100 100 100 100 430017 PARKING FINES - TURBO DATA 147,900 98,186 152,300 152,300 158,400 163,200 SUB TOTAL ----> 297,900 218,320 306,700 306,700 319,000 328,700 FROM OTHER AGENCIES Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
420104 DARE FUNDING - 267 - - - - 420501 GRANTS - 243,282 30,000 154,900 - - 480016 SB90 REIMBURSEMENT 5,000 6,062 5,000 5,000 5,200 5,400 480201 STATE HIGHWAY MAINTENANCE REIMBURSEMENT 5,600 5,156 5,800 5,800 6,000 6,200 SUB TOTAL ----> 10,600 254,767 40,800 165,700 11,200 11,600 LICENSES & PERMITS Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
407001 BUILDING PERMITS 1,006,000 1,912,154 1,334,100 1,334,100 1,387,500 1,429,100 407002 PLUMBING PERMITS 106,700 152,941 109,800 109,800 114,200 117,600 407003 MECHANICAL PERMITS 131,400 188,960 135,300 135,300 140,700 144,900 407004 ELECTRICAL PERMITS 157,600 313,963 212,200 275,000 220,700 227,300 407005 GRADING PERMITS - 85 - - - - 407006 ENCROACHMENT PERMITS 306,000 544,881 315,000 315,000 327,600 337,400 407022 TREE REMOVAL PERMITS 25,500 65,805 213,500 213,500 222,000 228,700 407027 TREE PLANTING FUND - - - - - - 407028 GENERAL PLAN SURCHARGE FEE 112,000 336,094 115,100 115,100 119,700 123,300 407029 DEMOLITION FEE 2,600 3,762 2,700 2,700 2,800 2,900 407032 PERMIT FEES 30,600 44,571 31,500 35,000 32,800 33,800 407039 C4 INSPECTION 21,000 28,721 21,000 21,000 21,800 22,500 407041 PERMIT PARKING - - - - - - SUB TOTAL ----> 1, 899,400 3,591,937 2,490,200 2,556,500 2,589,800 2,667,500

REVENUE DETAIL BY FUND

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REVENUE DETAIL BY FUND
OTHER REVENUE Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
408603 COMMUTER SHUTTLE PROGRAM - 2,124 - - - - 430016 MISCELLANEOUS 1,000 4,116 1,000 1,000 1,000 1,000 440101 COST REIMB-SOUTH BAYSIDE WASTE - - - - - - 440106 COST REIMB-CCAG 97,700 99,118 100,600 100,600 104,600 107,700 440112 COST REIMB-COMMUTE.ORG 84,000 83,720 86,500 86,500 90,000 - 440206 ELECTRIC CAR REIMB - - - - - 5,400 440311 COST REIMB - PW STAFF PLAN CHECK - - - - - - 440301 COST REIMBURSEMENT 110,000 49,527 110,000 110,000 114,400 117,800 440304 COST REIMBURSEMENT 318,100 474,822 342,100 384,400 328,400 337,600 440308 COST REIMB COBRA/RETIREE 400 519 400 400 400 400 440313 SCHOOL SPORTS FIELD MAINTENANCE 95,000 101,227 95,900 95,900 99,700 102,700 480505 CLAIM AND SETTLEMENT - - - - - - 480008 MISCELLANEOUS - 70,250 - - - - 480009 DOC RECYCLE ST DEPT CONSERVATION - 7,713 - - - - 480100 DONATIONS 60,000 47,680 145,000 145,000 165,800 170,400 480203 SALE OF MAPS & SPECIFICATIONS 2,000 4,641 2,000 2,000 2,100 2,200 480204 COPY CHARGES - - - - - - 480206 IMAGING/MICROFILMING 23,600 28,753 24,300 24,300 25,200 25,900 480209 SALE OF PERSONAL PROPERTY - 120 - 900 - - SUB TOTAL ----> 791,800 986,190 907,800 951,000 931,600 914,800 OTHER TAX Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
405001 FRANCHISE FEES - RECOLOGY 804,000 940,781 833,000 900,000 960,000 969,600 405002 FRANCHISE FEES - PG&E 467,200 522,684 481,900 500,000 500,000 505,000 405003 FRANCHISE FEES - COMCAST 400,000 388,944 400,000 400,000 400,000 400,000 405004 FRANCHISE FEES - CALIF WATER 185,000 215,368 185,000 185,000 191,100 196,800 405006 FRANCHISE FEES - AT&T U-VERSE 50,000 37,181 50,000 50,000 50,000 50,000 SUB TOTAL ----> 1, 906,200 2,104,957 1,949,900 2,035,000 2,101,100 2,121,400 PROPERTY TAX Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
402001 PROPERTY TAX - CURRENT SECURED 12, 250,000 12,629,776 13,595,000 14,100,000 15,055,000 16,060,000 402002 PROPERTY TAX - CURR UNSECURED 541,000 367,622 514,000 530,000 569,000 607,000 402004 PROPERTY TAX - AIRCRAFT 195,000 233,155 235,000 220,000 235,000 235,000 402005 PROPERTY TAX - UNITARY 110,000 124,372 112,000 130,000 113,000 114,000 402007 PROPERTY TAX - SB813 SECURED 350,000 467,013 380,000 380,000 386,000 394,000 402010 REAL PROPERTY TRANSFER TAX 340,000 996,050 726,000 526,000 444,000 626,000 402011 HOMEOWNERS TAX RELIEF 50,000 48,309 50,000 58,000 50,000 50,000 402012 RDA PASS THROUGH TO COUNTY 1,406,000 444,888 912,000 1,104,000 1,128,000 1,152,000 SUB TOTAL ----> 15, 242,000 15,311,185 16,524,000 17,048,000 17,980,000 19,238,000 SALES TAX Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
401001 SALES TAX 11,250,000 12,818,793 11,860,000 12,349,600 12,848,400 13,208,670 401002 1/2 CENT SALES TAX PUBLIC SAFE 176,200 200,764 178,500 210,000 215,500 222,000 SUB TOTAL ----> 11, 426,200 13,019,557 12,038,500 12,559,600 13,063,900 13,430,670 TRANSIENT OCCUPANCY TAX Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
404001 TRANSIENT OCCUPANCY TAX 1,957,900 2,136,750 3,800,000 3,400,000 4,200,000 4,768,000 SUB TOTAL ----> 1, 957,900 2,136,750 3,800,000 3,400,000 4,200,000 4,768,000 PAMF TARGET REVENUE Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
450101 PAMF TARGET REVENUE 826,600 826,615 847,300 847,300 868,500 890,170 SUB TOTAL ----> 826,600 826,615 847,300 847,300 868,500 890,170

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Packet Pg. 180

REVENUE DETAIL BY FUND
USE OF MONEY & PROPERTY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409100 INVESTMENT INCOME 1,837,200 993,570 2,101,600 2,500,000 2,390,000 2,290,000 409101 INVESTMENT INC GASB31 FAIR VALUE - (4,144,728) - - - - 409102 INVESTMENT INCOME ALLOCATION (748,700) 1,470,257 (856,500) (1,055,900) (1,450,800) (1,479,500) 409301 RENTS CONCESS - SKYWAY PROP 38,400 189,841 38,400 115,000 120,500 124,100 409303 RENTS CONCESS - DOLLAR COMPANY 114,000 119,286 114,000 120,000 120,000 123,600 409304 RENTS CONCESS - CINGULAR 153,000 150,986 154,500 154,500 160,700 165,500 409305 RENTS CONCESS - INNS OF AMER 329,100 128,570 330,800 260,000 230,800 237,700 409316 RENTS CONCESS - FACES - - - - - 153,600 409323 RENTS & CONC - THREE SISTERS 255,600 261,667 255,600 264,000 271,200 279,300 409321 RENTS CONCESS - BAY AREA CELL 3,000 3,000 3,000 3,000 3,000 3,000 409324 RENTS CONCESS KIWANIS 94,600 85,158 106,800 106,800 110,500 114,400 409328 RENTS CONCESS-BILLBOARDS 1,010,100 1,156,858 1,014,300 1,014,300 1,018,600 1,023,000 409332 GASB87 LEASE REVENUE - 696,629 - - - - SUB TOTAL ----> 3, 086,300 1,111,093 3,262,500 3,481,700 2,974,500 3,034,700 VEHICLE IN LIEU Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
403001 MOTOR VEHICLE IN-LIEU FEE 2,907,000 3,504,285 3,560,000 5,745,500 3,911,000 4,157,000 SUB TOTAL ----> 2, 907,000 3,504,285 3,560,000 5,745,500 3,911,000 4,157,000 TOTAL GENERAL FUND (0001) 46, 041,100 49,621,668 51,607,100 58,131,600 55,339,300 57,873,690 WASTEWATER ENTERPRISE FUND (0006)
WASTEWATER (0006) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 317,200 (686,203) 362,800 530,800 737,300 814,600 440304 COST REIMBURSEMENT - 8,745 - - - - 480301 SANITARY SEWER INSPECTION - 480 - - - - 480302 SEWER CONNECTION - SAN CARLOS 123,000 1,424,311 125,000 250,000 5,350,000 4,500,000 480303 SEWER SERVICE ASSESSMENT 20,827,000 20,564,080 21,779,000 21,779,000 21,779,200 22,431,400 480306 SEWER CHRG HARBOR INDUST DISTRICT - 60,967 - - - - 480307 SBSA REFUNDABLE CREDIT IRS - - - - - - 480308 INCREASE/DECREASE IN AUTHORITY - (222,042) - (1,158,677) - - TOTAL ENTERPRISE FUND ----> 21, 267,200 21,150,338 22,266,800 21,401,123 27,866,500 27,746,000

OTHER REVENUE FUNDS
STORMWATER FUND (0015) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 7,500 (13,845) 8,600 9,400 14,000 13,400 480002 NPDES FEES 455,000 456,578 455,000 455,000 455,000 455,000 480034 2% TRASH 163,200 183,628 168,100 168,100 173,100 178,300 403003 MEASURE M 69,500 66,550 76,700 66,000 66,000 68,000 480019 LEVEE DIST 5,000 - 5,000 5,000 5,000 5,000 STORMWATER SUB TOTAL ----> 700,200 692,911 713,400 703,500 713,100 719,700

GRANTS-POLICE (0017) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
420102 SLESF 163,200 161,285 168,100 168,100 174,800 180,000 420109 INVESTMENT INCOME ALLOCATION 4,900 (5,615) 5,600 4,600 6,500 7,100 POLICE GRANTS SUB TOTAL ----> 168,100 155,670 173,700 172,700 181,300 187,100 SC LIBRARY TENANT (0095) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 28,800 (49,962) 33,000 34,600 24,100 - 409314 RENTS CONCESS - SBWMA 58,800 61,875 60,600 60,600 63,000 - 409316 RENTS CONCESS - STAR VISTA 139,200 143,334 143,400 143,400 149,100 - 409329 RENTS CONCESS - CHAMBER OF COMMERCE - - - - - - 440206 COST REIMB-CHARGING STATION 5,000 4,521 5,000 5,000 5,200 - 440202 COST REIMB-SC LIBRARY UTILITIES 39,600 39,094 40,800 40,800 42,400 - 440314 LIBRARY EXCESS FUNDS (187,626) - - - - SC LIBRARY TENANT SUB TOTAL ----> 271,400 11,236 282,800 284,400 283,800 - OTHER REVENUE FUNDS TOTAL 1,139,700 8 59,817 1,169,900 1,160,600 1,178,200 906,800

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REVENUE DETAIL BY FUND

CAPITAL FUNDS
MEASURE A/K TRAFFIC CONGESTION (0014) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
401003 SAN MATEO COUNTY MEASURE A/K FUND 859,000 1,050,507 905,600 1,197,700 1,221,700 1,246,100 409102 INVESTMENT INCOME ALLOCATION 10,600 (18,348) 12,100 9,200 12,800 10,900 MEASURE A SUB TOTAL ----> 869,600 1,032,159 917,700 1,206,900 1,234,500 1,257,000 MEASURE W TRAFFIC CONGESTION FUND (0018) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
401004 1/2% SALES TAX MEASURE W 0 0 363,650 466,964 383,350 383,350 395,000 406,900 409102 INVESTMENT INCOME ALLOCATION - (1,578) - 3,400 500 600 MEASURE W SUB TOTAL ----> 363,650 465,386 383,350 386,750 395,500 407,500 GAS TAX (0016) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
403003 MEASURE M 69,500 66,550 76,700 66,000 66,000 68,000 407025 DIRT HAULING PERMIT 21,700 68,042 22,400 22,400 23,000 23,700 407038 MORATORIUM STREET CUT 6,300 1,342 6,500 6,500 3,000 3,100 409102 INVESTMENT INCOME ALLOCATION 24,600 (173,133) 28,100 140,900 123,000 140,100 420201 DEPT OF TRANSPORTATION GRANT 575,000 - - 148,000 - - 440304 COST REIMBURSEMENT 60,000 168,128 40,000 40,000 40,000 40,000 470001 STATE GAS TAX 2105 171,900 165,834 192,100 192,100 202,000 208,100 470002 STATE GAS TAX 2106 CONSTRUCTIO 112,700 107,645 137,800 137,800 129,000 132,900 470003 STATE GAS TAX 2107 MAINTENANCE 218,800 198,350 243,400 243,400 242,300 249,600 470004 STATE GAS TAX 2107.5 ENGINEER 6,000 6,000 6,000 6,000 6,000 6,000 470005 STATE TRAFFIC CONGEST RELIEF - - - - - - 470006 STATE GAS TAX PROP 1B - - - - - - 470007 STATE GAS TAX 2103 263,800 236,126 296,700 296,700 305,000 314,200 470008 ST CODE 2032 SB1 RD MAIN REHAB 583,700 601,373 679,000 679,000 760,000 782,800 GAS TAX SUB TOTAL ----> 2,114,000 1,446,257 1,728,700 1,978,800 1,899,300 1,968,500 CAPITAL IMPROVEMENT PROJECTS (0025) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
401003 SAN MATEO COUNTY MEASURE A FUND - - - - - - 402009 PROPERTY TAX - ERAF REFUND 800,000 2,940,768 800,000 2,819,000 1,500,000 1,500,000 405005 FRANCHISE FEE- SBWMA FRANCHISE 2, 300,000 2,171,987 2,400,000 2,400,000 2,500,000 2,600,000 405009 GROUP 8 COMCAST RENEWAL LEGAL - 77,764 - 19,000 - - 407028 G PLAN SURCHARGE FEE 31,500 123,235 32,400 50,000 33,700 34,700 407031 TECHNOLOGY FEE 31,500 194,222 32,400 40,000 33,700 34,700 407040 TRAFFIC MITIGATION FEE 52,500 542,359 654,100 154,100 2,805,700 1,057,400 407041 PERMIT PARKING - - - - 3,300 3,400 409102 INVESTMENT INCOME ALLOCATION 64,900 (99,689) 74,200 68,400 111,900 124,900 420202 DEPT TRANSPORTATION ACT FUND - - 400,000 400,000 - - 420501 GRANTS 274,000 3,440,212 3,610,447 3,610,447 - - 440304 COST REIMBURSEMENT 230,000 215,000 - - - - 480005 BIKE PATH PROGRAM FUNDING - - - - - - 480018 TRAFFIC MITIGATION FEE 300,000 - - - - - 480019 LEVEE DIST 30,000 8,410 30,000 30,000 30,000 30,000 480100 DONATIONS 25,000 - - - 45,000 3,500,000 480100 HIGHLAND FIELD USER FEE 100,000 127,538 125,000 125,000 128,800 132,700 CAPITAL IMPROVEMENT SUB TOTAL ----> 4, 239,400 9,741,804 8,158,547 9,715,947 7,192,100 9,017,800 CHILD CARE IMPACT FUND (0026) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
480411 CHILD CARE IMPACT FEE - - - - 3,600,000 1,500,000 409102 INVESTMENT INCOME ALLOCATION - - - - 71,700 78,400 CHILD CARE IMPACT FUND SUB TOTAL ----> - - - - 3,671,700 1,578,400 PARK IN-LIEU (0027) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 43,200 (49,545) 49,400 21,500 8,800 22,800 420303 COST REIMBURSEMENT 178,000 - 178,000 178,000 - - 480100 DONATIONS - - - - 30,000 20,000 480401 IN LIEU PARK LAND DEDICATION FEE 105,100 571,270 108,300 108,300 112,600 116,000 480402 PARK FACILITY DEV FEE BEDROOM 136,000 150,248 140,100 140,100 145,700 1,000,100 480410 PARK & OPEN SPACE MAINTENANCE - - - - - - PARK-IN-LIEU SUB TOTAL ----> 462,300 671,973 475,800 447,900 297,100 1,158,900 PARKING IN-LIEU (0028) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
407041 PERMIT PARKING 3,100 4,793 3,200 3,200 - - 409102 INVESTMENT INCOME ALLOCATION 3,800 (7,534) 4,300 5,400 700 - 409308 RENTS CONCESS - SNEAKERS - 360 - - - - PARKING IN-LIEU SUB TOTAL ----> 6,900 (2,381) 7,500 8,600 700 -

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REVENUE DETAIL BY FUND
HOUSING IN-LIEU (0029) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 104,600 (267,372) 119,600 185,800 287,600 227,800 480404 AFFORDABLE HSG I LIEU FEE (BMR 161,800 306,089 166,700 166,700 173,400 178,600 480409 COMMERICAL LINKAGE FEE 200,000 4,004,180 5,100,000 300,000 14,706,000 7,212,200 420501 GRANTS - - - 39,000 - - HOUSING IN-LIEU SUB TOTAL ----> 466,400 4,042,897 5,386,300 691,500 15,167,000 7,618,600 LOW-MOD HOUSING ASSET (0031) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 94,700 (33,104) 108,300 - 200 200 409202 INTEREST INCOME MORTGAGE LOAN 12,200 27,319 12,600 12,600 13,100 13,500 409319 RENT & CONCESS - 817 WALNUT - - - - - - 409330 RENTS CONCESS-633 ELM ST #305 19,600 35,628 20,200 20,200 21,000 21,600 HOUSING IN-LIEU SUB TOTAL ----> 126,500 29,843 141,100 32,800 34,300 35,300 CAPITAL FUNDS TOTAL 8,648, 750 17,427,937 17,198,997 14,469,197 29,892,200 23,042,000

CITY DEBT SERVICE
SC LIBRARY BOND SERVICE (0093) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
402001 PROPERTY TAX - CURRENT SECURED 288,000 306,704 288,000 343,000 344,000 344,000 402002 PROPERTY TAX - CURR UNSECURED 10,000 8,481 10,000 11,000 11,000 11,000 402005 PROPERTY TAX - UNITARY 15,900 44,093 15,900 48,000 48,000 48,000 402007 PROPERTY TAX - SB813 SECURED 8,000 11,973 8,000 8,000 8,000 8,000 402011 HOMEOWNERS TAX RELIEF 1,500 1,085 1,500 1,000 1,000 1,000 409102 INVESTMENT INCOME ALLOCATION 14,500 (16,593) 16,500 8,700 15,500 - LIBRARY BOND TOTAL ----> 337,900 355,742 339,900 419,700 427,500 412,000

INTERNAL SERVICE FUNDS
WORKERS COMP (0032) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 5,400 (7,373) 6,200 5,200 5,700 5,000 480501 WORKERS COMP REIMBURSEMENT - - - - - - WORKERS COMP SUB TOTAL ----> 5,400 (7,373) 6,200 5,200 5,700 5,000 GENERAL LIABILITY (0033) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
420501 GRANTS - - - - - - 409102 INVESTMENT INCOME ALLOCATION 14,900 (31,790) 17,100 18,100 26,300 27,500 440306 COST REIMB - LIABILITY - 2,255 - - - - GENERAL LIABILITY SUB TOTAL ----> 14,900 (29,535) 17,100 18,100 26,300 27,500 POST-EMPLOYMENT BENEFITS (0035) Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
409102 INVESTMENT INCOME ALLOCATION 9,200 (5,599) 10,500 10,100 4,200 6,200 480504 CR-POST-EMPLOYMENT BENEFITS 684,700 680,633 784,900 784,900 1,110,500 1,180,500 POST-EMPLOYMENT BENEFITS SUB TOTAL ----> 693,900 675,034 795,400 795,000 1,114,700 1,186,700 INTERNAL SERVICE FUNDS TOTAL 714,200 638,126 818,700 818,300 1,146,700 1,219,200

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CITYWIDE REVENUES BY MAJOR CATEGORY AND SOURCE
FY 2023-24 And FY 2024-25
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Proposed FY 2024 Proposed FY 2025
Other Revenue Funds $1.18 $0.91
City's Debt/Internal Services Funds $1.57 $1.63
Wastewater Fund $27.87 $27.75
Capital Funds $29.89 $23.04
General Fund $55.34 $57.87
$i n Millions

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Packet Pg. 184

2021-22
Audited
2022-23
Projected
2023-24
Proposed
2024-25
Proposed
2025-26
Forecasted
2026-27
Forecasted
Property Tax $15.3 $17.0 $18.0 $19.2 $20.4 $21.7
Sales Tax $13.0 $12.6 $13.1 $13.4 $13.8 $14.2
Fees for Service $9.1 $10.4 $7.7 $7.7 $7.9 $8.1
Vehicle In-Lieu $3.5 $5.7 $3.9 $4.2 $4.4 $4.7
Use of Assets $1.1 $3.5 $2.9 $3.0 $3.0 $3.1
Other Taxes $4.2 $5.4 $6.3 $6.9 $8.2 $8.4
Other $3.4 $3.5 $3.4 $3.5 $3.7 $3.8
$-
$5.0
$10.0
$15.0
$20.0
$25.0
Millions $

GENERAL FUND OPERATING REVENUE
Multi-Year Comparison
(Funds are Reflected in Millions)

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Packet Pg. 185

$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
FY 2024 Revenues FY 2025 Revenues
Other Tax $2.10 $2.12
Other $2.15 $2.14
Licenses & Permits $2.59 $2.67
Uses of Money & Property $2.97 $3.03
Vehicle in Lieu $3.91 $4.16
Charges for Services $5.12 $4.99
TOT/Business Registration $5.46 $6.09
Sales Tax $13.06 $13.43
Property Tax $17.98 $19.24

GENERAL FUND OPERATING REVENUES BY
TYPE
FY 2023-24 AND FY 2024-25
$ in Millions

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Packet Pg. 186

THE CITY OF SAN CARLOS

PROPERTY TAX DOLLAR BREAKDOWN
$ 0.01677 Sequoia Hospital District
$ 0.00404 County Harbor District
$ 0.00239 Bay Area, Air Pollution
$ 0.00220 Mosquito Abatement
$ 1.0000
$ 0.11955 ERAF Share of San Mateo County
$ 0.15 20 San Mateo County
$ 0.2127 San Carlos Elementary General Purpose
$ 0.1789 Sequoia High General Purpose
$ 0.0247 3 ERAF Share of San Carlos General Fund
$ 0.1080 San Carlos General Fund
$ 0.0777 San Mateo Junior Colllege General Purpose
$ 0.0404 County Education Tax
$ 0.0396 County Library
$ 0.0210 Mid-Penninsula Regional Open Space

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Packet Pg. 187

SAN MATEO COUNTY PROPERTY TAX - 2022/23

REPRESENTATIVE GENERAL LEVY SHARE ESTIMATE
Estimate of City Representative Share of the General Levy before ERAF Shifts Applied by County Auditor
City City Rate* Other Rates* Total
East Palo Alto 0.3375 0.3375
Foster City 0.0000 0.2597 0.2597
Redwood City 0.2588 0.2588
Belmont 0.0973 0.1611 0.2584
Pacifica 0.2366 0.2366
Daly City 0.2297 0.2297
Hillsborough 0.1871 0.1871
San Mateo 0.1761 0.1761
Burlingame 0.1706 0.1706
South San Francisco 0.1686 0.1686
Brisbane 0.1619 0.1619
Millbrae 0.1579 0.1579
San Bruno 0.1467 0.1467
San Carlos 0.1327 0.1327
Menlo Park 0.1222 0.1222
Atherton 0.1056 0.1056
Colma 0.0000 0.1022 0.1022
Half Moon Bay 0.0665 0.0665
Woodside 0.0520 0.0520
Portola Valley 0.0430 0.0430
County Average: 0.1425 0.0262 0.1687
*The City tax rate is based on the largest non-redevopment Tax Rate Area in each city; other rates include city-governed overlaying districts such as lighting or maintenance districts. Data Source: San Mateo County Assessor 2022/23 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Information provided by Hinderliter de Llamas & Associates 2023

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Packet Pg. 188

SALES TAX BY MAJOR INDUSTRY GROUPS
CALENDAR YEAR 2022
City of San Carlos Count y Statewide
Autos & Transportation 7% 21% 20%
Building & Construction 33% 10% 10%
Business & Industr
y 23% 18% 20%
Food & Drugs 3% 6% 6%
Fuel & Service Stations 4% 10% 10%
General Consumer Goods 18% 19% 21%
Restaurants & Hotels 12% 16% 13%
Totals 100% 100% 100%
* Information provided by Hinderliter de Llamas & Associates 2022 0%
5%
10%
15%
20%
25%
30%
35%
Autos &
Transportation
Building &
Construction
Business &
Industry
Food & Drugs Fuel & Service
Stations
General
Consumer
Goods
Restaurants &
Hotels
City of San Carlos County Statewide

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Packet Pg. 189

SALES TAX REVENUE PER CAPITA
CALENDAR YEAR 2022
Per Capita (30,145)
Per Capita
(773,244)
Per Capita
(39,765,223)
City of San Carlos Count y Statewide
Autos & Transportation 25.36 $ 47.27 $ 34.03 $ Building & Construction 115.32 22.29 17.98 Business & Industry 82.31 40.74 34.59 Food & Drugs 11.00 12.42 10.48 Fuel & Service Stations 13.71 22.79 16.89 General Consumer Goods 62.94 43.62 37.18 Restaurants & Hotels 41.59 35.20 23.52 Totals 352.23 $ 224.33 $ 174.67 $ * Information provided by Hinderliter de Llamas & Associates 2022 $-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
Autos &
Transportation
Building &
Construction
Business &
Industry
Food & Drugs Fuel & Service
Stations
General
Consumer
Goods
Restaurants &
Hotels
City of San Carlos County Statewide

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Packet Pg. 190

SALES TAX REVENUES BY GEOGRAPHIC AREA
PREVIOUS 5 CALENDAR YEARS
2018 2019 2020 2021 2022
East Side 85% 83% 84% 83% 84%
Harbor Industrial Area 4% 5% 5% 5% 4%
El Camino 5% 5% 5% 5% 5%
Downtown 6% 7% 6% 7% 6%
Totals 100% 100% 100% 100% 100%
* Information provided by Hinderliter de Llamas & Associates 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2018 2019 2020 2021 2022
East Side Harbor Industrial Area
El Camino Downtown

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GENERAL GOVERNMENT Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
CITY COUNCIL 348,200 311,722 381,400 354,025 364,400 352,400 CITY MANAGER 2,243,800 1,896,663 2,694,500 2,563,205 2,910,875 3,021,680 CITY CLERK 575,250 427,263 661,600 650,050 714,050 740,750 CITY TREASURER 32,200 21,576 33,400 24,500 33,400 34,600 CITY ATTORNEY 576,700 547,333 597,000 597,000 918,750 805,750 ADMINISTRATIVE SERVICES 685,450 650,446 939,450 890,750 1,009,600 1,049,300 FINANCE 1,733,550 1,556,615 1,852,600 1,821,320 2,102,400 2,181,700 HUMAN RESOURCES 618,750 533,234 701,850 691,200 736,450 761,350 INFORMATION TECHNOLOGY 1, 595,450 1,450,291 1,651,600 1,609,650 1,717,800 1,776,300 GENERAL FUND (NON-DEPARTMENTAL) 977,386 531,302 428,100 1,509,100 3,431,200 433,600 GENERAL GOVERNMENT SUB TOTAL ----> 9, 386,736 7,926,445 9,941,500 10,710,800 13,938,925 11,157,430

COMMUNITY DEVELOPMENT
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
COMMUNITY DEVELOPMENT ADMINISTRATION 806,550 729,886 1,138,550 1,036,750 1,217,950 1,262,550 DEVELOPMENT AND PERMITTING 5,443,050 4,940,453 6,200,950 5,622,450 6,441,550 6,664,350 ECONOMIC DEVELOPMENT 986,800 649,502 1,022,900 979,000 1,073,100 1,108,500 COMMUNITY DEVELOPMENT SUB TOTAL ----> 7,236,400 6,319,841 8,362,400 7,638,200 8,732,600 9,035,400

PUBLIC SAFETY
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
POLICE DEPARTMENT 11,172,000 10,182,269 12,111,600 12,117,500 12,891,400 14,082,170 FIRE DEPARTMENT 11,138,200 10,776,730 11,631,600 11,520,881 12,244,800 12,410,500 PUBLIC SAFETY SUB TOTAL ----> 22,310, 200 20,958,999 23,743,200 23,638,381 25,136,200 26,492,670

PUBLIC WORKS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
PUBLIC WORKS ADMIN/ENGINEERING 2,518,150 2,160,756 3,543,350 3,088,400 3,747,350 3,877,450 FLEET 241,125 204,940 248,325 246,425 263,825 272,825 STREET MAINTENANCE 755,200 683,530 741,200 741,200 770,700 793,600 PARK MAINTENANCE 2,465,200 2,460,646 2,567,525 2,478,550 2,839,325 2,934,925 BUILDING MAINTENANCE 1,138,950 1,035,828 1,399,375 1,338,100 1,458,375 1,823,475 PUBLIC WORKS SUB TOTAL ----> 7,118, 625 6,545,701 8,499,775 7,892,675 9,079,575 9,702,275

PARK & RECREATION
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
PARKS & RECREATION LEADERSHIP AND MANAGEMENT 573,350 509,690 897,750 847,200 943,650 976,750 ADULT SERVICES 846,350 628,572 900,800 852,300 970,000 998,200 ATHLETICS 450,200 528,041 512,200 498,100 604,200 619,200 PERSONAL AND FAMILY DEVELOPMENT 636,700 847,523 779,700 768,550 824,600 853,740 SPECIAL COMMUNITY EVENTS 749,950 618,942 986,700 946,070 1,102,000 1,140,975 YOUTH DEVELOPMENT 526,500 442,030 577,900 553,200 645,100 676,250 PARK & RECREATION SUB TOTAL ----> 3,783, 050 3,574,797 4,655,050 4,465,420 5,089,550 5,265,115 GENERAL FUND (0001) TOTAL 49,835,011 45,325,783 55,201,925 54,345,476 61,976,850 61,652,890 Proposed
Proposed
Revised Audited Revised
Revised Audited Revised

EXPENDITURES BY MAJOR CATEGORY AND SOURCE
Proposed
Proposed
Projected
Projected
RevisedAuditedRevised
Revised Audited Revised
Proposed
Proposed
Proposed
Proposed
Projected
Projected

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EXPENDITURES BY MAJOR CATEGORY AND SOURCE

ENTERPRISE FUNDS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
WASTEWATER (SEWER) FUND (0006) 17,981,407 11,781,245 18,600,463 17,965,852 21,950,700 21,031,300 WASTEWATER FUND SUB TOTAL ----> 17,981,407 11,781,245 18, 600,463 17,965,852 21,950,700 21,031,300

OTHER REVENUE FUNDS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
NPDES - STORMWATER (0015) 121,000 120,967 124,400 118,700 125,600 129,300 GRANTS-POLICE (0017) 250,000 217,901 157,600 157,600 163,900 168,800 LIBRARY TENANT REVENUE (0095) 1,524,585 284,248 1,656,385 1,656,385 316,200 - OTHER REVENUE FUNDS SUB TOTAL ----> 1,895,585 623,116 1,938,385 1,932,685 605,700 298,100 OPERATING BUDGET TOTAL 69,712,003 57, 730,143 75,740,773 74,244,013 84,533,250 82,982,290 CAPITAL FUNDS:

REPLACEMENT/RESERVE FUND
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
EQUIPMENT REPLACEMENT/RESERVE (0010) 1,720,000 1,400 1,114,600 1,114,600 153,900 289,300 TECHNOLOGY REPLACEMENT/RESERVE (0010) 80,000 66,434 335,400 335,400 220,100 249,300 REPLACEMENT FUNDS SUB TOTAL ----> 1,800,000 67,834 1,450,000 1,450,000 374,000 538,600

TRAFFIC MANAGEMENT FUNDS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
MEASURE A TRAFFIC CONGESTION (0014) 91,000 90,816 93,700 91,600 94,000 95,900 MEASURE W TRAFFIC CONGESTION (0018) - - - - - - PARKING IN LIEU (0028) 64,738 14,144 115,594 115,594 - - TRAFFIC MANAGEMENT SUB TOTAL ----> 155,738 104,960 209,294 207,194 94,000 95,900

GAS TAX
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
GAS TAX (0016) 5,355,000 342,008 10,163,750 10,163,750 7,725,000 7,980,000 GAS TAX SUB TOTAL ----> 5,355,000 342,008 10,163,750 10,163,750 7,725,000 7,980,000

CAPITAL IMPROVEMENT
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
CAPITAL IMPROVEMENT PROJECTS (0025) 28,440,490 2,631,614 36,505,177 35,722,952 11,727,100 10,575,000 GENERAL CAPITAL SUB TOTAL ----> 28,440,490 2,631,614 36,505,177 35,722,952 11,727,100 10,575,000

CHILD CARE FUND
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
CHILD CARE (0026) - - - - - 1,250,000 CHILD CARE FUND SUB TOTAL ----> - - - - - 1,250,000

PARK IN LIEU
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
PARK IN LIEU (0027) 826,124 209,982 800,642 800,642 900,000 500,000 PARK IN LIEU SUB TOTAL ----> 826,124 209,982 800,642 800,642 900,000 500,000 Revised Audited Revised Projected Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Projected
Projected
Projected
Projected
Projected
Projected
Projected

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EXPENDITURES BY MAJOR CATEGORY AND SOURCE

AFFORDABLE HOUSING IN LIEU
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
HOUSING IN LIEU (0029) 5,600,266 797,913 4,687,463 4,687,463 16,045,200 10,561,200 HOUSING IN LIEU SUB TOTAL ----> 5,600,266 797,913 4,687,463 4,687,463 16,045,200 10,561,200

LOW MOD HOUSING ASSET
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
LOW MOD HOUSING ASSET (0031) 3,312,976 47,157 3,296,176 3,438,351 149,800 154,200 LOW MOD HOUSING ASSET SUB TOTAL ----> 3,312,976 47,157 3,296,176 3,438,351 149,800 154,200 CAPITAL FUNDS TOTAL 45,490,593 4,201,468 57,112,501 56,470,351 37,015,100 31,654,900

CITY DEBT SERVICE
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SC LIBRARY BOND SERVICE (0093) 442,800 442,725 457,800 457,800 469,250 1,504,900 CITY DEBT SERVICE SUB TOTAL ----> 442,800 442,725 457,800 457,800 469,250 1,504,900

INTERNAL SERVICE FUNDS
2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
WORKERS COMPENSATION (0032) 211,800 197,891 271,000 213,600 275,400 335,900 GENERAL LIABILITY - RISK MANAGEMENT (0033) 1,469,300 1,251,636 1,537,100 1,359,451 1,488,600 1,631,200 POST-EMPLOYMENT BENEFITS (0035) 885,000 885,000 958,000 958,000 1,123,600 1,132,500 INTERNAL SERVICE FUND SUB TOTAL ----> 2,566,100 2,334,527 2,766,100 2,531,051 2,887,600 3,099,600 Proposed
Proposed
Proposed
Proposed
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised
Revised Audited Revised Proposed
Proposed
Proposed
Proposed
Projected
Projected
Projected
Projected

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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Proposed FY 2023-24 Proposed FY 2024-25
General Fund $61.98 $61.65
Capital Funds $37.02 $31.65
Wastewater Fund $21.95 $21.03
Internal Service Funds $2.89 $3.10
City's Debt/Other Revenue Fund $1.07 $1.80
$1.07 $1.80 $2.89 $3.10
$21.95 $21.03
$37.02 $31.65
$61.98 $61.65

CITYWIDE EXPENDITURES BY MAJOR CATEGORY & SOURCE
FY2023-24 AND FY2024-25
City's Debt/Other Revenue Fund
Internal Service Funds
Wastewater Fund
Capital Funds
General Fund

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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Parks & Recreation 8% 7%
Public Works 15% 16%
Community Development 15% 15%
General Government 19% 19%
Public Safety 43% 43%
43% 43%
19% 19%
15% 15%
15% 16%
8% 7%

GENERAL FUND OPERATING EXPENDITURES
FY2023-24 AND FY2024-25
Public Safety
General Government
Community Development
Public Works
Parks & Recreation

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OPERATING EXPENDITURES MULTI-YEAR COMPARISON
Multi-Year Comparison
(Funds are Reflected in Millions)
2019-20 Audited 2020-21 Audited 2021-22 Audited 2022-23 Projected
2023-24
Proposed
2024-25
Proposed
Police and Fire $20.3 $20.5 $21.0 $23.6 $25.1 $26.5
Sewer Maintenance $10.9 $11.7 $11.8 $17.9 $21.9 $21.0
General Government * $10.3 $7.4 $7.9 $10.7 $10.9 $11.1
Parks and Recreation $2.8 $2.0 $3.6 $4.5 $5.1 $5.3
Community Development $5.0 $5.4 $6.3 $7.6 $8.7 $9.0
Public Works $5.8 $5.5 $6.5 $7.9 $9.1 $9.7
Other Revenue Funds $0.5 $0.5 $0.6 $1.9 $0.6 $0.3
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$ in Millions
FY2019-20 and FY2023-24 expenditures excluded one-
time costs for the pay down of unfunded liabilities

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Community
Development
Department
Administrative
Services
Department
Parks &
Recreation
Department
Organization Chart
Public Works
Department
The Residents of
the
City of San Carlos
Finance

Engineering

Fleet Maintenance

Advance
Planning
Adult Community
Center
Personal Family
Development
Police

City Manager

City Council

City Treasurer

City Clerk

Assistant
City Manager
Fire

Human Resources

Information
Technology

Risk Management

Current Planning

Building

Economic
Development &
Housing
Athletics

Youth
Development

Events

Parks
Maitnenance

Facilities
Maintenance

Wastewater

Stormwater

Street
Maintenance

City Attorney

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Museum of San Carlos
History Board of
Directors
City of San Carlos Boards,
Commissions and Committees
Economic
Development
Advisory Commission
City
Council
Parks, Recreation and
Culture Commission
Planning and
Transportation
Commission
Residential Design
Review Committee
Downtown Advisory
Committee
Youth Advisory
Council
City Council Regional JPAs, Boards
& Committee Assignments
2+2 – City/
School District
Advance Life
Support (ALS)
Age‐Friendly
Initiative
Subcommittee
Airport Land
Use Committee
Airport
Roundtable
Association of
Bay Area
Governments
Belmont‐San
Carlos Fire
Department
Caltrain
Modernization
Local Policy Maker
Working Group
Chamber San
Mateo County
Childcare
Subcommittee
City County
Association of
Governments
City Selection
Committee
Code of Conduct
and Ethics Policy
Subcommittee
Communication
Subcommittee
Downtown
Subcommittee
Economic
Development
Subcommittee
Emergency
Services
Council
Employee
Recruitment and
Retention
Subcommittee
Four Corners
Working Group
Grand Boulevard
Initiative
Harbor Industrial
Association
Home for All

Housing and
Community
Development
Committee
Industrial Arts
Subcommittee
League of
California Cities
Library Governing
Board JPA
Parks and
Recreation Public
Art Task Force
Peninsula Clean
Energy JPA Board
Peninsula
Congestion Relief
Alliance
Transportation
and Circulation
Subcommittee
Housing
Subcommittee
Housing
Endowment &
Regional Trust
Board
San Carlos
Educational
Foundation
San Mateo County
Convention and
Visitors Bureau
Silicon Valley
Clean Water
South Bayside
Waste Management
Authority
San Mateo County
Council of Cities
Legislative
Subcommittee
Trails and Open
Space
Subcommittee
OneShoreline

San Mateo County
Mosquito and
Vector Control
District

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MAJOR MUNICIPAL SERVICE LINES AND

OPERATING PROGRAMS

The City of San Carlos is a municipal corporation providing a wide range of services and functions to San Carlos. Administrative Support Services are also provided to the City and operating departments. Following is a list of 60 specific services and functions, in the form of operating programs, which the City is currently providing.

ADMINISTRATIVE AND SUPPORT FUNCTIONS

A. CITY COUNCIL
City Leadership
− Legislation, Policy, and Budget

B. CITY MANAGER
Executive Management
− Management of City Operation
− Strategic Plan
− Community Engagement
− Climate Action Plan
− Interdepartmental and Interagency
Sustainability Work
− Interdepartmental and Interagency
Emergency Management Services
Work

C. CITY ATTORNEY
General Legal Services
Litigation and Specialized Services

D. CITY CLERK
Council and City Manager Support
− Agenda Process Management &
Meeting Support
− Elections Management
− Records Management

E. CITY TREASURER
− Financial Review and Oversight

F. ADMINISTRATIVE SERVICES
Administration/Risk Management
− Leadership and Management
− Risk Management
Financial Services
Human Resources
Information Technology

PUBLIC SERVICES

G. COMMUNITY DEVELOPMENT SERVICES
Leadership and Management
Development and Permitting Services
− Key Development Project Facilitation
− Code Enforcement
− Long Range Planning
Economic Development
− Management of the Child Care Fund
Housing Compliance and Assistance

H. PARKS & RECREATION SERVICES
Leadership and Management
Athletics
Adult Services
Youth Development
Personal and Family Development
Special Community Events

I. POLICE SERVICES
Patrol Services
Investigations
Community Outreach
Traffic and Commerce
Parking Enforcement
Dispatch

J. FIRE SERVICE
Fire Suppression
Emergency Medical Service
Fire Prevention/Inspections
Public Assist Calls for Service
Rescue Response
Community Emergency Response Team
(CERT)
Public Education/Community Outreach

K. PUBLIC WORKS SERVICES
Administration/Engineering
− Leadership and Management
− Sidewalks
− Traffic Engineering
− Parking
− Development and Permitting
− Capital Improvement Program
Facilities Maintenance
Fleet Maintenance
Parks Maintenance
Wastewater
Stormwater
Street Maintenance

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Vice Mayor

City Council
Organization Chart
Mayor Council
Member
Council
Member
Council
Member

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CITY COUNCIL DEPARTMENT
Mission
The City of San Carlos provides high-quality services and facilities to its residents in an equitable, sustainable, transparent, responsive, and friendly manner to foster an inclusive, safe, and healthy community now and in the future.

Organization
The Council is composed of five members who are elected at-large on a non-partisan basis for four-year staggered terms. The Mayor is appointed annually from amongst the Council.

Org Code
01101000

Dept #
1010

Description
The City Council is the governing body of the City. It provides community leadership, enacts laws, adopts resolutions, and establishes policies for the City government. The City Council also adopts a budget. The Mayor appoints members of the City Council to working committees.

The Mayor and the City Council represent the City of San Carlos on various local, regional, and state policy committees and commissions. The Council also reviews proposed State of California legislation and provides formal input into the legislative process.

The Council meets the second and fourth Monday of each month in formal, public sessions and occasionally in additional study sessions. All City Council meetings are open to the public and are streamed live on the City's website (www.cityofsancarlos.org). San Carlos residents who subscribe to Comcast cable television may also view the Council meetings on Comcast channel 27 and on AT&T Uverse Channel 99. City Council minutes and archives of the meetings are also posted on the City of San Carlos website for residents to review at https://www.cityofsancarlos.org/residents/public-meetings.

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CITY COUNCIL DEPARTMENT

Program Name City Leadership
Program Goals The goal of the Council is to provide leadership to the City organization to: foster a safe, diverse, welcoming, and engaged community that recognizes the importance of social equity; ensure fiscal responsibility and the sustainability of San Carlos’ resources, infrastructure, and social/cultural environment; proactively protect our physical environment from the threats of climate change and reduce greenhouse gas emissions; recognize the needs and challenges of the community and promote its well-being; demonstrate high ethical and professional standards, including high quality customer service; lead and manage effectively by engaging the community, thinking strategically, remaining proactive, and planning for the future; and support the well-being of employees, investing in their development, and aligning staffing and resources with the demand for City services.

Major Services  Legislative activities to support San Carlos  Policy establishment and direction
 Budget establishment and oversight to ensure fiscal sustainability  Serve on various regional boards
 Provide leadership during emergency situations
 Serve the community through active engagement and leadership  Prioritize and develop strategic initiatives that are of interest to the community  Ensure that San Carlos remains a desirable, vibrant, equitable, inclusive, and business friendly community

FY 2022-23
Accomplishments
 Promoted a safe, diverse, and engaged community by issuing proclamations in support of United Against Hate Week, domestic violence awareness, human trafficking prevention, American Heart Month, Black History month, Women History month, suicide prevention, and Hispanic & Latinx Heritage  Adopted ordinances related to child care impact fees, accessory dwelling units, green building standards, heritage trees, the Northeast area development moratorium, construction noise, and fireworks and revised the City’s Below Market Rate Ordinance

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FY 2023-25 Goals  Encourage and support the creation of child care facilities by reducing barriers to creation and expansion
 Support sustainability initiatives and address climate change. As part of its focus on climate change, the City of San Carlos will continue to address vulnerability and adapt to changing climate conditions such as wildfires, flooding, drought, and sea level rise
 Work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future
 Actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable supply by facilitating development of housing for all income levels
 Pursue plans and strategies for improving mobility, traffic, parking, transportation infrastructure, and street maintenance while encouraging alternative modes of transportation to provide efficient, safe, and effective movement throughout the city  Work with residents, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan in response to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development
 Explore new recreational opportunities by completing an assessment of parks, open space, and other recreation facilities to support the health and well-being for community members of all ages

City Leadership
Objective
Legislation, policy, and budget.

The City Council values public input into the decision-making process, keeping residents informed, and using boards and committees for civic engagement and regional collaboration. Councilmembers participated in 37 regional boards. The City surveyed residents to gauge satisfaction with City services and found that the majority of the community has positive opinions about the City.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of boards and committees with City Council
participation 37 41 41 41
% of residents who agree that the City is responsive
to them* N/A 70% N/A 75%
% of residents satisfied with the City’s efforts to
provide municipal services* N/ A 82% N/ A 84%
% residents who indicate that they trust the City* N/A 78% N/A 81% * These metrics are taken from the Citizen Opinion Survey that is conducted biennially. The latest survey was conducted in 2023 and the next survey will be conducted in 2025. As such, there are no metrics provided for 2022 and 2024. The latest community surveys can be found at https://www.cityofsancarlos.org/residents/community-surveys.

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 33,500 33,678 33,500 33,500 33,500 33,500 BENEFITS 120,000 116,546 126,000 112,125 126,000 129,700 PERSONNEL TOTAL ----> 153,500 150,224 159,500 145,625 159,500 163,200

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 800 733 800 800 800 800
PROFESSIONAL SERVICES 32,600 34,217 33,600 33,600 44,900 46,200

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 41,200 38,260 42,400 42,400 44,100 45,400 COMMUNITY RELATIONS 65,000 65,000 90,000 90,000 60,000 40,000 LOW INCOME SUBSIDY 55,000 23,289 55,000 40,000 55,000 56,700

INSURANCE - - - - - -
VEHICLE USAGE 100 - 100 100 100 100

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 194,700 161,499 221,900 206,900 204,900 189,200 CAPITAL OUTLAY - - - 1,500 - -
CAPITAL OUTLAY TOTAL ----> - - - 1,500 - -
EXPENDITURES TOTAL ----> 348,200 311,722 381,400 354,025 364,400 352,400

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 2,100 2,100 2,200 2,200 2,400 2,500 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 700 700 700 700 700 700 TRANSFER OUT TOTAL ----> 2,800 2,800 2,900 2,900 3,100 3,200 EXPENDITURES & TRANSFERS TOTAL ----> 351,000 314,522 384,300 356,925 367,500 355,600 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - - - - - -

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 24,100 24,100 24,800 24,800 29,300 30,200 ALLOCATIONS IN FROM NPDES 300 300 300 300 300 300 ALLOCATIONS IN FROM GAS TAX 1,600 1,600 1,600 1,600 2,300 2,400 ALLOCATIONS IN FROM WORK COMP 400 400 400 400 400 400 ALLOCATIONS IN FROM RISK MGT 800 800 800 800 800 800 TRANSFER AND ALLOCATIONS IN TOTAL ----> 27,200 27,200 27,900 27,900 33,100 34,100 REVENUE & TRANSFERS TOTAL ----> 27,200 27,200 27,900 27,900 33,100 34,100 GENERAL FUND NET EXPENSE (REVENUE) ----> 323,800 287,322 356,400 329,025 334,400 321,500 CITY COUNCIL (01101000)

BUDGET SUMMARY

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Assistant City
Manager
(1)
City Manager Department
Organization Chart
City Manager
(1)
Senior Management
Analyst
(1)
Communications
Manager
(1)
Senior Sustainability
Analyst
(1)
Management Analyst
(1)
Executive Assistant
(1)
Reclass
Underfilled
Seasonal Staff
Intern

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CITY MANAGER DEPARTMENT
Mission
Provide overall management of the City, execute Council policy, and ensure that San Carlos remains the City of Good Living.

Organization
The Department is comprised of City Manager, Assistant City Manager, Senior Management Analyst (underfilled by Management Analyst), Communications Manager, Management Analyst, Senior Sustainability Analyst, and an Executive Assistant.

Org Code
01111000

Dept #
1110

Description
Under the direction of the City Manager, the City Manager Department consists of seven full-time regular employees. The staff in the department also serve in the following capacities:
 Board of Directors of IEDA
 Commute.org Supervisory Committee

CITY MANAGER

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CITY MANAGER DEPARTMENT

Program Name Executive Management
Program Goals The first goal of the Executive Management program is to provide overall management of City operations, implement Council’s strategic and policy directions, and ensure effective, efficient, and responsive services to the community in a financially sustainable manner.

The second goal of the Executive Management program is related to community engagement. The goal is to reach out to the community on City-related matters that serve the community and to demonstrate transparency and inclusivity in the pursuit of civic governance. Includes managing media relations, the City’s website, e-notify, videos, social media, the City newsletters and postcards, the City cable channels, and billboards. Coordinate with community groups and volunteers so the community is well informed and engaged in events, services, proposed developments, projects, and local issues and can provide input to the City.

The third goal of the Executive Management program is related to climate change mitigation, adaptation, and resiliency. The goal is to develop and manage plans, projects, and programs that comply with State regulations, address climate change and adaptation, and attain the stated environmental goals of the City Council and community.

The fourth goal of the Executive Management program is related to emergency management services. The goal is based on the Council’s strategic goal to prepare for public safety emergencies, such as wildfire, earthquake, flood, and other emergencies by developing and implementing risk mitigation and reduction strategies. The Executive Management program oversees the planning of these strategies in partnership with other departments.

Major Services • Manage overall City operations, departments, and programs • Provide Council support
• Oversee community relations and engagement, public information, social media, and website
• Develop and manage the Council's strategic plan
• Manage special projects and initiatives
• Oversee the Climate Mitigation and Adaptation Plan and sustainability programs • Direct the activities of staff and consultants to plan and respond to an emergency

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FY 2022-23
Accomplishments
• Organized series of new employee meet and greets, luncheon, and launched a new, monthly Employee Newsletter to develop cross departmental collaboration and information sharing
• Liaised with local and regional emergency teams to provide timely, consistent, and extensive communications related to 2022 brush fire and 2022/2023 flooding emergencies
• Curated a robust Mental Health Awareness Brochure for distribution to every residence in San Carlos (and included a digital copy on the City’s website), coordinated two Mental Health First Aid training sessions with the County, highlighted fentanyl awareness campaign and relationship abuse on billboards, and organized community outreach for September 8 Children’s Fund • Updated the website with a new, interactive map of current City projects • Prepared communications and provided support for Councilmembers’ replies to press inquiries, presentations to community groups and regional organizations, and local print publications
• Supported focused communications initiatives and community outreach for City departments including Public Works (Greater East San Carlos Street Calming website, four community outreach sessions, San Carlos Ave Phase III), Community Development (Small Business Spotlight social media campaign, community workshops outreach), Parks and Recreation (community events outreach, including the return of Hometown Days and the San Carlos Art & Wine Faire, Goblin Walk, Night of Holiday Lights, and more)
• Produced 23 electronic “Council Newsletters”, two print “Spotlights,” and four print “Good Living Newsletters.”
• Developed a Citywide, cross-departmental communications calendar and outreach request process to develop and improve proactive, timely information access and transparency
• Updated firearm safety, wildfire safety, and City’s zero communications plan on the City’s website
• Obtained two grants between June and October for a streamlined solar permitting tool from the California Energy Commission and water heater replacement from PG&E
• Conducted extensive sustainability outreach related to electrification, food ware, climate change, EV charging, energy efficiency programs, and composting • Monitored potential legislative impacts to the City and advocated the City’s positions on Vehicle in Lieu Fee (“VLF”) shortfall and AB 2449 (re: Brown Act)

FY 2023-25 Goals • Launch an accessible, intuitive, and cutting-edge City website and employee intranet • Implement the Climate Mitigation and Adaptation Plan’s goal to expand availability of electric vehicle charging stations through a partnership agreement with Peninsula Clean Energy
• Adopt an Emergency Operations Plan
• Redevelop the Citizens Academy program to increase public awareness of, and participation in, San Carlos government
• Expand and grow social media outreach through the use of video and alternate forms of community engagement

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Management of
City Operations
Objective 1
Management of City departments, programs, and contracts.

Results from the community satisfaction survey conducted in 2023 reported high resident satisfaction with City services. We’ve continued efforts to maintain this high level of satisfaction.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
Community Satisfaction Survey Conducted* No Yes No Yes
% of residents finding City staff professional* N/A 89% N/A 92% % of residents satisfied with City services* N/A 83% N/A 85% * These metrics are taken from the Citizen Opinion Survey that is conducted biennially. The latest survey was conducted in 2023 and the next survey will be conducted in 2025. As such, there are no metrics provided for 2022 and 2024. The latest community surveys can be found at https://www.cityofsancarlos.org/residents/community-surveys.

Strategic Plan
Objective 2
Creation and management of the City Council adopted strategic plan, its objectives, and work plans.

The strategic plan tasks are in addition to the day-to-day operations of the City.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of citywide strategic plan tasks undertaken 65 63 63 63

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Community
Engagement
Objective 3
Community Engagement.

Per the 2023 Citizen Opinion Survey, “Whereas many cities have witnessed a significant decline in satisfaction with city-resident communications over the past decade, San Carlos has managed to keep the overall satisfaction level between 82% and 85% dating back to the first survey in 2014, with 2023’s 84% placing in the upper end of the range. The fact that San Carlos residents primarily rely on city-sponsored sources of information to find out about San Carlos news, events, and programming — including City newsletters, the City’s website, and email — is undoubtedly one of the reasons for this stability in satisfaction over the past nine years.”

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
% of residents who are satisfied with the City’s
communications efforts*
N/A 84% N/A 86%
# of Facebook and Twitter Postings
Facebook 189 200 225 225
Twitter 280 300 300 300
# of Facebook likes and Twitter followers
Facebook likes 6,107 6,125 6,140 6,155
Twitter followers 8,091 8,100 8,125 8,150
# of City related Nextdoor Postings 123 150 175 200
# of Instagram followers 2,320 2,335 2,350 2,365
# eNotify Subscribers 14,035 14,050 14,065 14,080
# of eNotify subscription topics available 55 55 55 55
# of Shape San Carlos subscribers 1,868 0 N/A N/A
# of Shape San Carlos topics posted 2 0 N/A N/A
# of news releases sent 51 50 50 50
# of requests handled by Inform San Carlos 2,196 2,200 2,200 2,200 Average # of days to resolve requests 19 19 19 19
* These metrics are taken from the Citizen Opinion Survey that is conducted biennially. The latest survey was conducted in 2023 and the next survey will be conducted in 2025. As such, there are no metrics provided for 2022 and 2024. The latest community surveys can be found at https://www.cityofsancarlos.org/residents/community-surveys.

Climate Action Plan
Objective 4
Climate Action Plan (CAP) – updates and implementation.

Through the department's implementation of the CAP, 21 climate action plan items were monitored and waste disposal rates were below State targets. The new Climate Mitigation and Adaptation Plan (“CMAP”) adopted in FY 2022 contains 45 climate mitigation and adaptation strategies.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of climate action items monitored 45 45 45 45
Residential Annual per Capita Disposal below State
Target Yes Yes Yes Yes
Commercial Annual per Employee waste disposal
below State targets Yes Yes Yes Yes

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Interdepartmental
and Interagency
Sustainability Work
Objective 5
Interdepartmental and interagency sustainability work: implement measures; report on greenhouse gas inventories (available only for certain years); collaborate with regional agencies; and prepare the Annual CMAP Update.

The City Manager's department continued to inform residents on green initiatives and was able to maintain greenhouse gas reductions with the implementation of the CMAP.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of postings on green initiatives 115 125 140 160
% reduction in greenhouse gases community wide
since 1990

9.2% as of
2019

9.2% as of
2019
% reduction in greenhouse gases by municipal
government since 2015
26% as of
2018
26% as of
2018
26% as of
2018
26% as of
2018

Interdepartmental
and Interagency
Emergency
Management
Services Work
Objective 6
Interdepartmental and interagency emergency management services work: develop plans, oversee training and exercises, and prepare the City Emergency Operations Center, City facilities, and staff for emergencies; collaborate with regional agencies, including the County and partner agencies to prepare regional plans and response and partner to provide improved services; and prepare emergency plans and reports.

The City Manager's department oversaw the City’s COVID-19 emergency response under Council leadership; developed a Zero Power Communications Plan; prepared facilities and supplies to support the community; and developed materials mailed out to the community to guide them in an emergency.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of emergency related postings 147 150 160 165
% of residents satisfied with City emergency
planning/preparation*
N/A 83% N/A 85%
* These metrics are taken from the Citizen Opinion Survey that is conducted biennially. The latest survey was conducted in 2023 and the next survey will be conducted in 2025. As such, there are no metrics provided for 2022 and 2024.

The latest community surveys can be found at https://www.cityofsancarlos.org/residents/community-surveys.

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 999,000 955,061 1,174,000 1,112,000 1,297,475 1,344,580 BENEFITS 497,700 440,734 602,700 566,405 649,500 680,800 PERSONNEL TOTAL ----> 1,496,700 1,395,796 1,776,700 1,678,405 1,946,975 2,025,380

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 8,000 7,599 8,200 8,200 8,600 8,900 PROFESSIONAL SERVICES 720,300 474,774 849,700 816,700 893,000 923,200

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 13,000 5,264 23,400 23,400 24,300 25,100 COMMUNITY RELATIONS 1,000 1,153 31,600 31,600 32,900 33,900

INSURANCE - - - - - -
VEHICLE USAGE 300 - 300 300 300 300
EQUIPMENT MAINTENANCE 500 - 500 500 500 500

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 743,100 488,790 913,700 880,700 959,600 991,900 CAPITAL OUTLAY 4,000 12,077 4,100 4,100 4,300 4,400 CAPITAL OUTLAY TOTAL ----> 4,000 12,077 4,100 4,100 4,300 4,400 EXPENDITURES TOTAL ----> 2,243,800 1,896,663 2,694,500 2,563,205 2,910,875 3,021,680

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 13,000 13,000 13,400 13,400 17,200 17,700 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 4,000 4,000 4,100 4,100 5,300 5,500 TRANSFER OUT TOTAL ----> 17,000 17,000 17,500 17,500 22,500 23,200 EXPENDITURES & TRANSFERS TOTAL ----> 2,260,800 1,913,663 2,712,000 2,580,705 2,933,375 3,044,880 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE 120,000 45,658 120,000 120,000 124,000 127,100

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 120,000 45,658 120,000 120,000 124,000 127,100

GENERAL TRANSFERS IN - - - - - -

ALLOCATIONS IN FROM SEWER
205,700 205,700 211,900 211,900 250,300 257,800
ALLOCATIONS IN FROM NPDES 1,300 1,300 1,300 1,300 1,400 1,400 ALLOCATIONS IN FROM GAS TAX 7,800 7,800 8,000 8,000 11,000 11,300 ALLOCATIONS IN FROM WORK COMP 3,200 3,200 3,300 3,300 3,400 3,500 ALLOCATIONS IN FROM RISK MGT 5,800 5,800 6,000 6,000 6,200 6,400 TRANSFER AND ALLOCATIONS IN TOTAL ----> 223,800 223,800 230,500 230,500 272,300 280,400 REVENUE & TRANSFERS TOTAL ----> 343,800 269,458 350,500 350,500 396,300 407,500 GENERAL FUND NET EXPENSE (REVENUE) ----> 1,917,000 1,644,205 2,361,500 2,230,205 2,537,075 2,637,380 CITY MANAGER (01111000)

BUDGET SUMMARY

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Legal Secretary
(1)
City Attorney Department
Organization Chart
City Attorney
(1)
New FY 23‐24

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CITY ATTORNEY DEPARTMENT
Mission
Provide the City, the City Council, and City staff with prompt, high quality, and efficient legal services.

Organization
The Department is comprised of a City Attorney and a Legal Secretary.

Org Code
01151000

Dept #
1510

Description
The City Attorney Department consists of two full-time regular employees.

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CITY ATTORNEY DEPARTMENT

Program Name General Legal Services, Litigation and Specialized Services Program Goals The goal of the Legal Services, Litigation, and Specialized Services Program is to provide leadership, oversight, and support to ensure that the City organization, including City officials, management, and staff, receive high quality legal support. This goal includes litigation and specialized services to evaluate, analyze, and make recommendations to the City Manager and City Council with the goal of reducing litigation costs, claims liabilities, and cost of lawsuits.

Major Services • Advising staff and reviewing contracts • Attending City Council and most Planning Commission meetings • Participating in strategic planning for the City
• Participating in negotiation and development projects • Participating in litigation involving the City
• Drafting ordinances and resolutions
• Overseeing code enforcement
• Ensuring Public Records Act and Brown Act compliance
• Overseeing election law
• Participating in emergency management operations, such as COVID-19

FY 2022-23
Accomplishments
• Advised staff on COVID-19 emergency declaration and changing orders • Advised on the new state mandated Housing Element with Outside Counsel • Advised on trails plan updates and implementation
• Prepared declaration of Emergency for December 31, 2022 storm damage • Provided ethics advice to the City Council and Planning Commissioners • Advised on end of AB 361 and AB 2449 rules for remote meetings • Assisted staff in downtown plan and parklet program
• Assisted staff on contracting and implementation for the Burton and Highland Park lighting project
• Participated in Brown Act training for new and existing commissioners • Advised Mayor on code of conduct investigation involving City Treasurer; conducted investigation at her request; drafted report and presented results to the City Council • Drafted or assisted in preparing and implementing ordinances, including:
construction time limits, amendment to minimum wage ordinance, permitting for EV charging, traffic impact fee update, planned unit developments such as 405 Industrial, Alexandria, and 642 Quarry, accessory dwelling units updates, consolidation of Planning Commission with Transportation commission, zoning ordinance changes, green building standards, urgency ordinance for heritage trees, disposable foodware, design review notice, organic waste reduction, permanent tree ordinance, moratorium for Northeast area and extension for 2 years, Urgency Ordinances for Northeast area and SB-9, updates to ADU ordinance per state law, childcare development fee ordinance, construction noise, and penalties for fireworks and explosives
• Participated in ongoing negotiation of development agreements in the City including the Alexandria, 632 Quarry, 405 Industrial, the Sobrato project, Brittan Avenue projects and Bransten projects
• Participated in code enforcement matters, in park after dark; solicitation; sleeping in vehicles; dog and animal complaints
• Monitored liability claims with PLAN JPA appointed defense counsel • Assisted staff in community charitable response to the tragic murder on Laurel street in 2022
• Supervised outside counsel on settlement of eminent domain litigation

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• Oversaw numerous Public Records Act requests
• Assisted staff on San Carlos Avenue Eucalyptus removal project phases • Advised staff on density bonus project provisions and conditions of approval • Reported on recent litigation and legislation
• Participated in Risk Management program meetings
• Proactively addressed citizen concerns and issues, including easements, boundary disputes, development issues, tree maintenance, line 147 • Participated in the implementation of San Carlos Strategic Plan

FY 2023-25 Goals • Implement the Strategic Plan
• Draft new ordinances as mandated by state or federal law or as directed by the City Council
• Advise on the many residential and commercial housing projects being proposed • Work and advise on establishing process and implementation for the East Side Innovation District Visioning Plan
• Assist in the development of affordable housing projects and units • Advise the Fire Department concerning disaster preparedness and fire issues • Monitor legislation, claims, and litigation
• Update the municipal code
• Monitor and negotiate amendments and updates with Redwood City and the Sheriff for fire and police services and code enforcement contracts • Assist the City Council and staff by providing prompt and effective legal representation with emphasis on cost effective solutions or appropriate defense with proactive advice on issues facing the City
• Assist and provide legal advice for Downtown Laurel and Northeast Specific Plan • Advise on major development projects

General Legal
Services,
Litigation and
Specialized
Services
Objective

Prompt and effective legal review related to legal inquiries and official documents, such as contracts, ordinances, resolutions, agreements, etc. Includes legal support to all City departments, litigation review and support, advising City Council, staff and commissioners, and managing unanticipated or specialized legal services.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of legal updates provided 10 15 12 12
$ Contract counsel services monitored $140,677 $140,000 $154,000 $170,000 Ordinance Amendments 14 18 15 15
Total # of code enforcement cases 5 5 5 5
# of litigation cases handled in-house 2 2 2 2
Hours spent on public records act requests
processed 125 90 90 90
Council, Public and staff meetings attended 50 50 50 50 Contracts Reviewed 120 120 120 120

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES - - - - 413,750 426,150
BENEFITS 44,300 46,752 48,600 48,600 199,100 208,800 PERSONNEL TOTAL ----> 44,300 46,752 48,600 48,600 612,850 634,950

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE - - - - 6,000 6,200
PROFESSIONAL SERVICES 532,400 500,581 548,400 548,400 261,900 125,800

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT - - - - 38,000 38,800

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 532,400 500,581 548,400 548,400 305,900 170,800

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 576,700 547,333 597,000 597,000 918,750 805,750

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP - - - - 4,800 4,900 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 500 500 500 500 1,600 1,600 TRANSFER OUT TOTAL ----> 500 500 500 500 6,400 6,500 EXPENDITURES & TRANSFERS TOTAL ----> 577,200 547,833 597,500 597,500 925,150 812,250 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE - 40,530 - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - 40,530 - - - -

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 162,100 162,100 167,000 167,000 197,300 203,200 ALLOCATIONS IN FROM NPDES 2,600 2,600 2,700 2,700 2,800 2,900 ALLOCATIONS IN FROM GAS TAX 14,500 14,500 14,900 14,900 20,600 21,200 ALLOCATIONS IN FROM WORK COMP 4,900 4,900 5,000 5,000 5,200 5,400 ALLOCATIONS IN FROM RISK MGT 18,400 18,400 19,000 19,000 19,800 20,400 TRANSFER AND ALLOCATIONS IN TOTAL ----> 202,500 202,500 208,600 208,600 245,700 253,100 REVENUE & TRANSFERS TOTAL ----> 202,500 243,030 208,600 208,600 245,700 253,100 GENERAL FUND NET EXPENSE (REVENUE) ----> 374,700 304,803 388,900 388,900 679,450 559,150 CITY ATTORNEY/LEGAL SERVICES (01151000)

BUDGET SUMMARY

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Deputy City Clerk
(1)
City Clerk Department
Organization Chart
City Clerk
(1)
Reclass

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CITY CLERK-COMMUNITY RELATIONS DEPARTMENT
Mission
Provide the residents of San Carlos, the City Council, and staff with access to public records and ensure all facets of agenda preparation, public meetings, and municipal elections are conducted according to State law.

Organization
The Department is comprised of the Director of Community Relations/City Clerk and a Deputy City Clerk.

Org Code
01121000

Dept #
1210

Description
Under the direction of the Director of Community Relations/City Clerk, the City Clerk Department consists of two full-time employees.

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CITY CLERK-COMMUNITY RELATIONS DEPARTMENT

Program Name Council and City Manager Support
Program Goals The goal of this program is to: facilitate the Council agenda process for the City Manager and support the Council during its meetings; facilitate the legislative process in compliance with legal requirements for timely notifications and open meetings; oversee the contract with the County of San Mateo for municipal elections according to State law and assist and orient local candidates; coordinate and monitor permanent, non-permanent, and historical records; and respond to requests for public information in accordance with the City's records retention schedule and State law.

Major Services • Agenda process management and meeting support • Administration of municipal elections
• City Council/Treasurer candidate assistance and orientation • Research and retrieval of records
• Maintenance of the City’s records retention schedule
• Recruitment management for the City's Commissions
• New Commissioner orientation
• Compliance Officer for the Fair Political Practices Commission • Mailroom management for all departments

FY 2022-23
Accomplishments

• Implemented a new Agenda Management System and trained all users • Conducted an RFP for a scanning contract and worked with the new vendor on an ongoing process to digitize building permits and various long-term Planning Division records
• Conducted a Municipal Election for three City Council seats and coordinated with the County Election’s Office to prepare vote centers and ballot drop-boxes; and onboarded a new councilmember
• Developed and implemented a process to conduct hybrid City Council and Planning & Transportation Commission meetings
• Prepared transition for remote participation pursuant to AB2449, including creation of a Reasonable Accommodation Policy
• Updated the City’s Conflict of Interest Code
• Updated the Citywide Records Retention Schedule
• Continued to provide trainings on the City’s Document Management System for new employees and provided refresher courses
• Managed recruitments to fill three Commission seats and 19 seats on the new Downtown Advisory Committee and provided orientations to 24 new commission/ committee members
• Conducted an RFP for publication of legal ad services • Ensured City Official's compliance with Ethics Training (AB 1234) and Fair Political Practices Commission's Conflict of Interest Statements and Campaign Statements • Continued to maintain the City’s Do Not Knock and Refusal of Consent Registries • Conducted an RFP for broadcasting and video production of city meetings and special events
• Hosted a San Mateo County Council of Cities meeting
• Received and responded to over 400 public records requests • Processed over 120 Resolutions, 15 Ordinances, and 35 Proclamations and Certificates

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FY 2023-25 Goals • Create a Records Management Policy and provide records training to each department
• Conduct an RFP for codifer services to incorporate adopted ordinances into the City’s Municipal Code
• Update the City’s Conflict of Interest Code in FY 2025 • Conduct a General Municipal Election in FY 2025

Agenda Process
Management and
Meeting Support
Objective 1
Agenda Process Management, Meeting Support, and Management of Commission appointment process.

The City Clerk’s Department provides meeting support to the City Council, which includes preparation of agenda packets and post meeting records (i.e., minutes, resolutions, ordinances, contracts) and publishing meeting videos (if applicable). Timely preparation of agendas, post meeting materials, and meeting videos are essential in providing transparency to the public.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
% of Regular meeting agendas published three days in
advance of meeting 100% 100% 100% 100%
% of Council meeting videos posted within 24 hours of
meeting 100% 100% 100% 100%
% of minutes approved within three regular meetings 100% 100% 100% 100% # of agendas prepared 31 33 30 30
# of public meetings supported 31 33 30 30
# of resolutions processed 140 120 120 120
# of ordinances processed 13 15 10 10
# of proclamations and certificates prepared 47 35 35 35 # Board/Commission recruitments 3 5 3 4
# Commissioners oriented 21 8 3 4

Elections
Management
Objective 2
Elections management and support.

Elections give our community a voice in government. As the City’s Elections Official, the City Clerk is trusted to submit accurate and timely information about candidates and ballot measures for the public to make informed decisions with their votes.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
% of elections held without error N/ A 100% N/ A 100%
% of candidate nominations packets compiled on time N/ A 100% N/ A 100% # of elections coordinated 0 1 0 1
# of interested candidates assisted 0 8 0 5
# of measures on the ballot 0 0 0 1

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Records
Management
Objective 3
Management of City records and public records requests.

The City Clerk’s Department serves as the Records Manager for the City and as such, coordinates all public records requests and assists with research and retrieval of records. Timely response to public records requests is a priority as it is not only legally mandated but provides high quality public service.

Digitizing long-term and permanent records not only reduces storage cost and saves time in retrieval, but also enables staff and the community to independently perform searches and easily access records.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
% of Public Record Act requests responded to within legal time frames 100% 100% 100% 100%
# of public record requests responded to 467 410 410 410 # of long-term and permanent records boxes added to
City's electronic document management system 11 20 40 50 # of records boxes stored off-site 453 491 450 450

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 244,250 233,345 251,450 259,300 284,450 295,550 BENEFITS 133,600 114,224 142,500 123,100 151,200 158,500 PERSONNEL TOTAL ----> 377,850 347,569 393,950 382,400 435,650 454,050

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 91,100 27,592 93,800 93,800 89,600 92,300 PROFESSIONAL SERVICES 93,800 38,306 161,150 161,150 167,600 172,600

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 5,100 965 5,100 5,100 5,300 5,400 COMMUNITY RELATIONS 7,400 12,831 7,600 7,600 15,900 16,400

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 197,400 79,694 267,650 267,650 278,400 286,700

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 575,250 427,263 661,600 650,050 714,050 740,750

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 4,300 4,300 4,400 4,400 4,800 4,900 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 1,300 1,300 1,300 1,300 1,400 1,400 TRANSFER OUT TOTAL ----> 5,600 5,600 5,700 5,700 6,200 6,300 EXPENDITURES & TRANSFERS TOTAL ----> 580,850 432,863 667,300 655,750 720,250 747,050 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE 1,000 426 1,000 1,000 1,000 1,000

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 1,000 426 1,000 1,000 1,000 1,000

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 82,200 82,200 84,700 84,700 100,100 103,100 ALLOCATIONS IN FROM NPDES 1,300 1,300 1,300 1,300 1,400 1,400 ALLOCATIONS IN FROM GAS TAX 7,500 7,500 7,700 7,700 10,600 10,900 ALLOCATIONS IN FROM WORK COMP 2,400 2,400 2,500 2,500 2,600 2,700 ALLOCATIONS IN FROM RISK MGT 7,000 7,000 7,200 7,200 7,500 7,700 TRANSFER AND ALLOCATIONS IN TOTAL ----> 100,400 100,400 103,400 103,400 122,200 125,800 REVENUE & TRANSFERS TOTAL ----> 101,400 100,826 104,400 104,400 123,200 126,800 GENERAL FUND NET EXPENSE (REVENUE) ----> 479,450 332,037 562,900 551,350 597,050 620,250 CITY CLERK (01121000)

BUDGET SUMMARY

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City Treasurer
Organization Chart
City Treasurer
(Elected)

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CITY TREASURER DEPARTMENT
Mission
Entrusted by the residents to review spending and ensure safe management of monetary funds, monitor and increase investment potential, minimize financial risks, and safeguard the City’s fiscal obligations to ensure that residents and businesses continue to prosper.

Organization
The department is staffed by an elected City Treasurer (by the voters of San Carlos.) The Treasurer oversees internal controls and safety of the City's money, as well as that for contracted outside agencies. This department works closely with the Finance Division to meet the shared goals of appropriate internal controls, prudent investments, and cost effective financial services.

Org Code
01141000

Dept #
1410

Description
The City Treasurer provides an accountability of City funds to the public and promotes best practice financial processes and internal controls related to the investment, security, and conservative spending of the City's money in accordance with the City and Agency budgets.

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CITY TREASURER DEPARTMENT

Program Name Financial Review and Oversight
Program Goals The goal of the Financial Review and Oversight program is to provide advice and counsel on City investments and hiring of an independent auditor who reviews the City's finances and performs other financial consulting services.

Major Services

• Review and sign payroll and vendor warrants
• Provide investment advice as appropriate
• Respond to rating agencies and public inquiries on financial data • Participate in professional development training focused on the City Treasurer's duties, responsibilities, and operational efficiency programs • Research and prepare lien release notices
• Participate in special financial projects with the Finance division as needed • Conduct internal control and financial efficiency reviews • Serve as a member of the City's and the City/County Association of Governments’ (C/CAG) investment committees

FY 2022-23
Accomplishments
• Updated the City of San Carlos Investment Policy
• Investments earned $993,570 at a weighted average yield of 0.70% for the fiscal year ended June 2022
• Reviewed and approved payroll and accounts payable invoices • Processed lien release requests within 24 to 48 hours of request • Collaborated with the Finance Division to select a new auditor, Badawi & Associates, CPA, for the FY22-23, FY23-24, and FY24-25 audits.

FY 2023-25 Goals

• Process lien release requests within 24 to 48 hours of request • In collaboration with Finance Division:
- Maintain and strengthen internal controls
- Review, update, and implement the City’s Investment Policy - Thorough, timely review and approval of payroll and accounts payable warrants

Financial Review and
Oversight
Objective

Ensure safety of investments and maximize interest income.

The City Treasurer provides independent review and oversight to the management of investments of the City and C/CAG. Through working with the City’s Finance division, the following benchmarks show the City’s ability to meet the primary objective of the Investment Policy, which is the safety of principal while maintaining liquidity to meet cash flow needs.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of months in compliance with the City’s Investment
Policy 12 12 12 12
Total investment earnings $993,570 $2,101,600 $2,164,600 $2,229,500 # of liens processed 1 1 1 1

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 6,700 6,832 6,700 6,700 6,700 6,700
BENEFITS 24,000 14,744 25,200 16,300 25,200 26,400 PERSONNEL TOTAL ----> 30,700 21,576 31,900 23,000 31,900 33,100

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - -

PROFESSIONAL SERVICES - - - - - -

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 1,500 - 1,500 1,500 1,500 1,500

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 1,500 - 1,500 1,500 1,500 1,500

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 32,200 21,576 33,400 24,500 33,400 34,600

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 400 400 400 400 500 500 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 100 100 100 100 100 100 TRANSFER OUT TOTAL ----> 500 500 500 500 600 600
EXPENDITURES & TRANSFERS TOTAL ----> 32,700 22,076 33,900 25,000 34,000 35,200 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - - - - - -

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 10,500 10,500 10,800 10,800 12,700 13,100 ALLOCATIONS IN FROM NPDES 200 200 200 200 200 200 ALLOCATIONS IN FROM GAS TAX 900 900 900 900 1,200 1,200 ALLOCATIONS IN FROM WORK COMP 100 100 100 100 100 100

ALLOCATIONS IN FROM RISK MGT - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> 11,700 11,700 12,000 12,000 14,200 14,600 REVENUE & TRANSFERS TOTAL ----> 11,700 11,700 12,000 12,000 14,200 14,600 GENERAL FUND NET EXPENSE (REVENUE) ----> 21,000 10,376 21,900 13,000 19,800 20,600 CITY TREASURER (01141000)

BUDGET SUMMARY

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Human Resources
Manager
(1)
Sr Management
Analyst
(1)
Information Technology
Manager
(1)
Administrative Services Department
Organization Chart
Financial Services
Manager
(1)
Administrative Services
Director
(1)
Management Analyst
(1)
Senior Accountant
(2)
Accountant
(1)
HR Management
Analyst
(1)
Sr Systems Analyst
(1)
Systems Analyst
(2)
New FY 23‐24
Accounting Technician
I/II ‐ AP/AR
(1)
Administrative
Assistant
(1)
Accounting Technician
I/II ‐ AP/AR
(1)

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ADMINISTRATIVE SERVICES DEPARTMENT
Mission
Provide overall management of the City's administrative services, execute the City's administrative policies, and ensure that the City organization, including officials, management, and staff receive high quality, effective and efficient administrative support.

Organization
The department is comprised of Administration/Risk Management (Workers' Compensation & General Liability), Finance Division, Human Resources Division, and Information Technology Division

Org Code
01000000, 01210000-01213000, 32321000-35351000, 9393100

Dept #
2100-2130, 3210-3510, 9310

Description
Under the direction of the Administrative Services Director, the Administrative Services Department consists of 16 full-time regular employees in four programs.

Program Management
Administration/Risk Management (4 FTEs) Administrative Services Director/Senior Management Analyst Finance (6 FTEs) Financial Services Manage r
Human Resources (2 FTEs) Human Resources Manage r
Information Technology (4 FTEs) Information Technology Manager

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 1,894,700 1,860,820 2,109,200 2,116,220 2,344,6 50 2,423,950 BENEFITS 1,032,200 876,917 1,161,200 1,023,100 1,300, 400 1,362,100 PERSONNEL TOTAL ----> 2,926,900 2,737,738 3,270,400 3,139,320 3,645,050 3,786,050 UTILITIES 102,300 69,240 105,400 105,400 109,600 112,900 OFFICE ADMINISTRATIVE 208,600 199,811 236,200 236,200 249,500 261,000 PROFESSIONAL SERVICES 937,600 797,648 1,017,850 1,017,850 1,058 ,500 1,090,200

UNIFORMS & SAFETY EQUIPMENT - - - - - - PROFESSIONAL DEVELOPMENT 65,600 17,609 79,900 79,900 83,000 85,400 COMMUNITY RELATIONS 7,800 10,342 11,000 11,000 11,400 11,700

INSURANCE - - - - - - VEHICLE USAGE 600 13 1,550 1,550 1,600 1,600 EQUIPMENT MAINTENANCE 371,100 347,270 402,200 402,200 385,800 397,300

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - - OPERATING EXPENSE TOTAL ----> 1,693,600 1,441,932 1,854,100 1,854,100 1,899,400 1,960,100 CAPITAL OUTLAY 12,700 10,915 21,000 19,500 21,800 22,500 CAPITAL OUTLAY TOTAL ----> 12,700 10,915 21,000 19,500 21,800 22,500 EXPENDITURES TOTAL ----> 4,633,200 4,190,585 5,145,500 5,012,920 5,566,250 5,768,650

TRANSFERS OUT - - - - - - ALLOCATIONS OUT FOR WORKERS COMP 32,500 32,500 33,400 33,400 38,600 39,700 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 36,500 36,500 37,500 37,500 40,700 41,900 TRANSFER OUT TOTAL ----> 69,000 69,000 70,900 70,900 79,300 81,600 EXPENDITURES & TRANSFERS TOTAL ----> 4,702,200 4,259,585 5,216,400 5,083,820 5,645,550 5,850,250 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
BUSINESS REGISTRATION 996,000 1,110,893 1,063,400 1,217,300 1,265, 900 1,316,600 CHARGES FOR CURRENT SERVICES - 1,070 - - - - FINES & FORFEITURES 100 100 100 100 100 100

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - - OTHER REVENUE 292,200 319,492 297,600 297,600 309,500 226,000

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - - USE OF MONEY & PROPERTY 1,088,500 (1,680,901) 1,245,100 1,444,100 939, 200 810,500

VEHICLE IN LIEU - - - - - - REVENUE TOTAL ----> 2,376,800 (249,346) 2,606,200 2,959,100 2,514,700 2,353,200

GENERAL TRANSFERS IN - - - - - - ALLOCATIONS IN FROM SEWER 966,300 966,300 995,300 995,300 1,1 75,500 1,210,800 ALLOCATIONS IN FROM NPDES 14,000 14,000 14,400 14,400 15,000 15,400 ALLOCATIONS IN FROM GAS TAX 15,900 15,900 16,500 16,500 22,800 23,400 ALLOCATIONS IN FROM WORK COMP 88,500 88,500 91,200 91,200 94,800 97,600 ALLOCATIONS IN FROM RISK MGT 106,000 106,000 109,100 109,100 113,500 116,900 TRANSFER AND ALLOCATIONS IN TOTAL ----> 1,190,700 1,190,700 1,226,500 1,226,500 1,421,600 1,464,100 REVENUE & TRANSFERS TOTAL ----> 3,567,500 941,354 3,832,700 4,185,600 3,936,300 3,817,300 GENERAL FUND NET EXPENSE (REVENUE) ----> 1,134,700 3,318,231 1,383,700 898,220 1,709,250 2,032,950

ADMINISTRATIVE SERVICES DEPARTMENT
BUDGET SUMMARY (General Fund only)

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ADMINISTRATIVE SERVICES DEPARTMENT

Program Name Administration/Risk Management
Program Goals The goal of Administration is to provide leadership, oversight, and support to ensure that the City organization, including officials, management, and staff, receive high quality administrative support services.

The goal of the Risk Management program is to develop City safety policies and procedures and insure assets to minimize and protect the City's resources against risk or liability.

Organization 4 FTEs: Administrative Services Director, Senior Management Analyst, Management Analyst, Administrative Assistant

Major Services • Strategic Planning/Special Projects Oversight • Project Management
• Board of Directors for the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) and Cities Group, currently staff are serving as President of the Board for both JPAs
• Liaison for all public safety contracts
• General Liability Insurance Oversight
• Workers' Compensation and General Liability Claims Program Administration • Citywide Safety and Risk Management Committees Management

FY 2022-23
Accomplishments
• Received Federal Emergency Management Agency (“FEMA”) grant to recover COVID losses for the period prior to March 2021 in the amount of $124,913 • In collaboration with IT, developed the Incident Response Plan • In collaboration with Finance and IT, implemented and provided training to the Munis Contracts Module program citywide in effort to better record and track city contracts
• Updated the Confined Space Entry Program
• Contracted with a new medical clinic for occupational medical services • Responded to the COVID-19 pandemic by providing financial and staffing guidance and support
• Assisted the City Manager’s Department on the implementation of the new website

FY 2023-25 Goals • Review and update existing safety plans as needed • Continue to manage the claims administration process for Workers’ Compensation and General Liability claims and incidents
• Provide support to the City through the post-pandemic transition back to work • Continue to work with FEMA on the Public Assistance grant reimbursement process related to the severe storms and flooding during the winter of 2022-23

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Leadership and
Management
Objective 1
Manage the Administrative Services Department Divisions and serve on the Board of Directors for the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) and Cities Group as the City’s representative.

The PLAN JPA is a joint powers insurance authority consisting of 28 member cities under the PLAN JPA and six members under Cities Group. The City’s participation in PLAN JPA and Cities Group board meetings and special committee meetings has helped make important decisions on the operation of the program and claims administration, accounting and finance, risk control, loss prevention, actuarial services, and training.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of board/committee meetings attended 14 16 16 16

Risk Management
Objective 2
Manage the City’s General Liability insurance, Workers’ Compensation claims and Americans with Disabilities Act (ADA) coordination.

The objective of the Risk Management program is to protect the City’s resources against risks or liability. This is achieved through ensuring adequate insurance coverage, providing safety and risk management training, managing safety inspections, and developing safety procedures. It is also important to monitor risk by analyzing safety incidents, injury claims, and third-party claims trends for the expansion of risk reduction programs. By doing so, Risk Management improves employee safety by creating a safer work environment and reduces liability, limiting losses for the City.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of employee safety incidents reported 4 9 6 6
# of safety inspections conducted 2 2 2 2
# of Workers’ Compensation claims processed 3 8 5 5
Total injury days lost 33 75 125 125
Total Workers’ Compensation premium paid $178,930 $178,056 $237,409 $308,622 % of FTEs without any on the job injury 97% 93% 96% 96% # of liability claims received 16 46 17 17
Total General Liability claims paid
Claims paid $163,464 $200,000 $300,000 $400,000
Premium paid $1,078,246 $966,300 $1,053,100 $1,213,000
# of insurance policies handled 9 9 9 9
# of safety and risk management training sessions
offered 89 48 50 50

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 444,450 438,527 573,500 563,400 625,100 646,900 BENEFITS 225,900 206,058 310,600 273,500 327,100 343,200 PERSONNEL TOTAL ----> 670,350 644,585 884,100 836,900 952,200 990,100

UTILITIES - - - - - - OFFICE ADMINISTRATIVE 6,700 3,613 11,800 11,800 12,200 12,600 PROFESSIONAL SERVICES 3,100 300 20,200 20,200 21,000 21,600

UNIFORMS & SAFETY EQUIPMENT - - - - - - PROFESSIONAL DEVELOPMENT 4,900 1,935 15,050 15,050 15,600 16,100

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - - VEHICLE USAGE 100 13 1,000 1,000 1,000 1,000

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - - OPERATING EXPENSE TOTAL ----> 14,800 5,861 48,050 48,050 49,800 51,300 CAPITAL OUTLAY 300 - 7,300 5,800 7,600 7,900 CAPITAL OUTLAY TOTAL ----> 300 - 7,300 5,800 7,600 7,900 EXPENDITURES TOTAL ----> 685,450 650,446 939,450 890,750 1,009,600 1,049,300

TRANSFERS OUT - - - - - - ALLOCATIONS OUT FOR WORKERS COMP 6,600 6,600 6,800 6,800 9,800 10,100 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 28,000 28,000 28,800 28,800 32,000 33,000 TRANSFER OUT TOTAL ----> 34,600 34,600 35,600 35,600 41,800 43,100 EXPENDITURES & TRANSFERS TOTAL ----> 720,050 685,046 975,050 926,350 1,051,400 1,092,400 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - - REVENUE TOTAL ----> - - - - - -

GENERAL TRANSFERS IN - - - - - - ALLOCATIONS IN FROM SEWER 87,300 87,300 89,900 89,900 106,200 109,400 ALLOCATIONS IN FROM NPDES 1,300 1,300 1,300 1,300 1,400 1,400 ALLOCATIONS IN FROM GAS TAX 7,600 7,600 7,900 7,900 10,900 11,200 ALLOCATIONS IN FROM WORK COMP 61,300 61,300 63,200 63,200 65,700 67,700 ALLOCATIONS IN FROM RISK MGT 71,700 71,700 73,800 73,800 76,800 79,100 TRANSFER AND ALLOCATIONS IN TOTAL ----> 229,200 229,200 236,100 236,100 261,000 268,800 REVENUE & TRANSFERS TOTAL ----> 229,200 229,200 236,100 236,100 261,000 268,800 GENERAL FUND NET EXPENSE (REVENUE) ----> 490,850 455,846 738,950 690,250 790,400 823,600 ADMINISTRATIVE SERVICES LEADERSHIP AND MANAGEMENT (01210000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -

BENEFITS - - - - - -
PERSONNEL TOTAL ----> - - - - - -

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 1,300 - 1,300 1,300 1,300 1,300 PROFESSIONAL SERVICES 71,300 6,575 73,400 73,400 76,300 78,600

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 13,200 3,351 13,500 13,500 14,000 14,400

COMMUNITY RELATIONS - - - - - -
INSURANCE 1,383,500 1,241,711 1,448,900 1,271,251 1,397,000 1,536,900

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 1,469,300 1,251,636 1,537,100 1,359,451 1,488,600 1,631,200

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 1,469,300 1,251,636 1,537,100 1,359,451 1,488,600 1,631,200

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT TO GENERAL FUND 138,000 138,000 142,100 142,100 147,800 152,200 TRANSFER OUT TOTAL ----> 138,000 138,000 142,100 142,100 147,800 152,200 EXPENDITURES & TRANSFERS TOTAL ----> 1,607,300 1,389,636 1,679,200 1,501,551 1,636,400 1,783,400 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE - 2,255 - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -
USE OF MONEY & PROPERTY 14,900 (31,790) 17,100 18,100 26,300 27,500

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 14,900 (29,535) 17,100 18,100 26,300 27,500

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM GENERAL FUND 228,500 228,500 235,200 235,200 269,000 277,200 ALLOCATIONS IN FROM SEWER 735,400 735,400 757,500 757,500 822,200 846,900 ALLOCATIONS IN FROM NPDES 100,600 100,600 103,600 103,600 113,900 117,300 ALLOCATIONS IN FROM GAS TAX 470,900 470,900 485,000 485,000 531,100 547,000 TRANSFER AND ALLOCATIONS IN TOTAL ----> 1,535,400 1,535,400 1,581,300 1,581,300 1,736,200 1,788,400 REVENUE & TRANSFERS TOTAL ----> 1,550,300 1,505,865 1,598,400 1,599,400 1,762,500 1,815,900 GENERAL LIABILITY NET EXPENSE (REVENUE) ----> 57,000 (116,229) 80,800 (97,849) (126,100) (32,500) GENERAL LIABILITY / RISK MANAGEMENT FUND (33331000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -

BENEFITS - - - - - -
PERSONNEL TOTAL ----> - - - - - -

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 1,500 149 1,500 1,500 4,100 4,200 PROFESSIONAL SERVICES 10,700 6,574 11,000 11,000 11,400 11,700

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 20,000 12,238 20,000 20,000 20,800 21,400

COMMUNITY RELATIONS - - - - - -
INSURANCE 178,500 178,930 237,400 180,000 238,000 297,500 VEHICLE USAGE 100 - 100 100 100 100

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 210,800 197,891 270,000 212,600 274,400 334,900 CAPITAL OUTLAY 1,000 - 1,000 1,000 1,000 1,000
CAPITAL OUTLAY TOTAL ----> 1,000 - 1,000 1,000 1,000 1,000 EXPENDITURES TOTAL ----> 211,800 197,891 271,000 213,600 275,400 335,900

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT TO GENERAL FUND 99,500 99,500 102,500 102,500 106,500 109,700 TRANSFER OUT TOTAL ----> 99,500 99,500 102,500 102,500 106,500 109,700 EXPENDITURES & TRANSFERS TOTAL ----> 311,300 297,391 373,500 316,100 381,900 445,600 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -
USE OF MONEY & PROPERTY 5,400 (7,373) 6,200 5,200 5,700 5,000

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 5,400 (7,373) 6,200 5,200 5,700 5,000

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM GENERAL FUND 190,800 190,800 196,500 196,500 268,600 276,500 ALLOCATIONS IN FROM SEWER 89,000 89,000 91,700 91,700 113,500 116,900

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> 279,800 279,800 288,200 288,200 382,100 393,400 REVENUE & TRANSFERS TOTAL ----> 285,200 272,427 294,400 293,400 387,800 398,400 WORKERS COMP FUND NET EXPENSE (REVENUE) ----> 26,100 24,964 79,100 22,700 (5,900) 47,200 WORKERS COMPENSATION FUND (32321000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -
BENEFITS 885,000 885,000 958,000 958,000 1,123,600 1,132,500 PERSONNEL TOTAL ----> 885,000 885,000 958,000 958,000 1,123,600 1,132,500

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - -

PROFESSIONAL SERVICES - - - - - -

UNIFORMS & SAFETY EQUIPMENT - - - - - -

PROFESSIONAL DEVELOPMENT - - - - - -

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> - - - - - -

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 885,000 885,000 958,000 958,000 1,123,600 1,132,500

TRANSFERS OUT - - - - - -

ALLOCATIONS OUT TO GENERAL FUND - - - - - -
TRANSFER OUT TOTAL ----> - - - - - -
EXPENDITURES & TRANSFERS TOTAL ----> 885,000 885,000 958,000 958,000 1,123,600 1,132,500 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE 684,700 680,633 784,900 784,900 1,110,500 1,180,500

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -
USE OF MONEY & PROPERTY 9,200 (5,599) 10,500 10,100 4,200 6,200

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 693,900 675,034 795,400 795,000 1,114,700 1,186,700

GENERAL TRANSFERS IN - - - - - -

ALLOCATIONS IN FROM GENERAL FUND
- - - - - -

ALLOCATIONS IN FROM SEWER - - - - - -

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> - - - - - - REVENUE & TRANSFERS TOTAL ----> 693,900 675,034 795,400 795,000 1,114,700 1,186,700

POST-EMPLOYMENT BENEFITS NET EXPENSE
(REVENUE) ----> 191,100 209,966 162,600 163,000 8,900 (54,200) POST-EMPLOYMENT BENEFITS FUND (35310000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 150,586 140,000 - - - - BENEFITS - - - - 3,000,000 - PERSONNEL TOTAL ----> 150,586 140,000 - - 3,000,000 -

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - - PROFESSIONAL SERVICES 3,500 - 3,600 903,600 3,700 3,800

UNIFORMS & SAFETY EQUIPMENT - - - - - -

PROFESSIONAL DEVELOPMENT - - - - - - COMMUNITY RELATIONS 151,000 - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - - OPERATING EXPENSE 600,000 353,033 350,000 531,000 350,000 350,000 OPERATING EXPENSE TOTAL ----> 754,500 353,033 353,600 1,434,600 353,700 353,800 CAPITAL OUTLAY 72,300 38,269 74,500 74,500 77,500 79,800 CAPITAL OUTLAY TOTAL ----> 72,300 38,269 74,500 74,500 77,500 79,800 EXPENDITURES TOTAL ----> 977,386 531,302 428,100 1,509,100 3,431,200 433,600 TRANSFERS OUT 1,188,700 1,188,700 3,157,500 3,157,500 8,234,000 5,234,000

ALLOCATIONS OUT FOR WORKERS COMP - - - - - -

ALLOCATIONS OUT FOR GEN LIAB INSURANCE - - - - - - TRANSFER OUT TOTAL ----> 1,188,700 1,188,700 3,157,500 3,157,500 8,234,000 5,234,000 EXPENDITURES & TRANSFERS TOTAL ----> 2,166,086 1,720,002 3,585,600 4,666,600 11,665,200 5,667,600 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - - FROM OTHER AGENCIES 5,000 176,297 5,000 129,900 5,200 5,400

LICENSES & PERMITS - - - - - - OTHER REVENUE - 364 - 900 - - OTHER TAX 1,906,200 2,104,957 1,949,900 2,035,000 2,101,100 2,121,400 PROPERTY TAX 15,242,000 15,311,185 16,524,000 17,048,000 17,980,000 19,238,000 SALES TAX 11,426,200 13,019,557 12,038,500 12,559,600 13,063,900 13,430,670 TRANSIENT OCCUPANCY TAX 1,957,900 2,136,750 3,800,000 3,400,000 4,200,000 4,768,000 USE OF MONEY & PROPERTY 1,750,200 2,555,850 1,756,100 1,776,300 1,764,100 1,790,700 PAMF PROJECT 826,600 826,615 847,300 847,300 868,500 890,170 VEHICLE IN LIEU 2,907,000 3,504,285 3,560,000 5,745,500 3,911,000 4,157,000 REVENUE TOTAL ----> 36,021,100 39,635,861 40,480,800 43,542,500 43,893,800 46,401,340 GENERAL TRANSFERS IN 658,700 658,700 685,000 685,000 712,400 855,800

TRANSFER IN ECONOMIC UNCERTAINTY - - - - - -

ALLOCATIONS IN FROM SEWER - - - - - -

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -

ALLOCATIONS IN FROM WORK COMP - - - - - -

ALLOCATIONS IN FROM RISK MGT - - - - - - TRANSFER AND ALLOCATIONS IN TOTAL ----> 658,700 658,700 685,000 685,000 712,400 855,800 REVENUE & TRANSFERS TOTAL ----> 36,679,800 40,294,561 41,165,800 44,227,500 44,606,200 47,257,140 GENERAL FUND NET EXPENSE (REVENUE) ----> (34,513,714) (38,574,559) (37,580,200) (39,560,900) (32,941,000) (41,589,540) GENERAL FUND (NON-DEPARTMENTAL) (01000000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -

BENEFITS - - - - - -
PERSONNEL TOTAL ----> - - - - - -

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - -

PROFESSIONAL SERVICES - - - - - -

UNIFORMS & SAFETY EQUIPMENT - - - - - -

PROFESSIONAL DEVELOPMENT - - - - - -

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> - - - - - -
CAPITAL OUTLAY 1,720,000 1,400 1,114,600 1,114,600 153,900 289,300 CAPITAL OUTLAY TOTAL ----> 1,720,000 1,400 1,114,600 1,114,600 153,900 289,300 EXPENDITURES TOTAL ----> 1,720,000 1,400 1,114,600 1,114,600 153,900 289,300

TRANSFERS OUT - - - - - -

ALLOCATIONS OUT FOR WORKERS COMP - - - - - -

ALLOCATIONS OUT FOR GEN LIAB INSURANCE - - - - - - TRANSFER OUT TOTAL ----> - - - - - -
EXPENDITURES & TRANSFERS TOTAL ----> 1,720,000 1,400 1,114,600 1,114,600 153,900 289,300 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - - - - - -
GENERAL TRANSFERS IN 265,200 265,200 273,000 273,000 260,000 260,000

ALLOCATIONS IN FROM SEWER - - - - - -

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -

ALLOCATIONS IN FROM WORK COMP - - - - - -

ALLOCATIONS IN FROM RISK MGT - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> 265,200 265,200 273,000 273,000 260,000 260,000 REVENUE & TRANSFERS TOTAL ----> 265,200 265,200 273,000 273,000 260,000 260,000 EQUIPMENT FUND NET EXPENSE (REVENUE) ----> 1,454,800 (263,800) 841,600 841,600 (106,100) 29,300 EQUIPMENT REPLACEMENT FUND (10998000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -

BENEFITS - - - - - -
PERSONNEL TOTAL ----> - - - - - -

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - -

PROFESSIONAL SERVICES - - - - - -

UNIFORMS & SAFETY EQUIPMENT - - - - - -

PROFESSIONAL DEVELOPMENT - - - - - -

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> - - - - - -
CAPITAL OUTLAY 80,000 66,434 335,400 335,400 220,100 249,300 CAPITAL OUTLAY TOTAL ----> 80,000 66,434 335,400 335,400 220,100 249,300 EXPENDITURES TOTAL ----> 80,000 66,434 335,400 335,400 220,100 249,300

TRANSFERS OUT - - - - - -

ALLOCATIONS OUT FOR WORKERS COMP - - - - - -

ALLOCATIONS OUT FOR GEN LIAB INSURANCE - - - - - - TRANSFER OUT TOTAL ----> - - - - - -
EXPENDITURES & TRANSFERS TOTAL ----> 80,000 66,434 335,400 335,400 220,100 249,300 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - - - - - -
GENERAL TRANSFERS IN 35,700 35,700 100,000 100,000 200,000 200,000

ALLOCATIONS IN FROM SEWER - - - - - -

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -

ALLOCATIONS IN FROM WORK COMP - - - - - -

ALLOCATIONS IN FROM RISK MGT - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> 35,700 35,700 100,000 100,000 200,000 200,000 REVENUE & TRANSFERS TOTAL ----> 35,700 35,700 100,000 100,000 200,000 200,000 TECHNOLOGY FUND NET EXPENSE (REVENUE) ----> 44,300 30,734 235,400 235,400 20,100 49,300 TECHNOLOGY REPLACEMENT FUND (10999000)

BUDGET SUMMARY

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

SALARIES - - - - - -

BENEFITS - - - - - -
PERSONNEL TOTAL ----> - - - - - -

UTILITIES - - - - - -

OFFICE ADMINISTRATIVE - - - - - -

PROFESSIONAL SERVICES - - - - - -

UNIFORMS & SAFETY EQUIPMENT - - - - - -

PROFESSIONAL DEVELOPMENT - - - - - -

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -

VEHICLE USAGE - - - - - -

EQUIPMENT MAINTENANCE - - - - - -
SERIAL BONDS 442,800 442,725 457,800 457,800 469,250 1,504,900

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 442,800 442,725 457,800 457,800 469,250 1,504,900

CAPITAL OUTLAY - - - - - -
CAPITAL OUTLAY TOTAL ----> - - - - - -
EXPENDITURES TOTAL ----> 442,800 442,725 457,800 457,800 469,250 1,504,900

TRANSFERS OUT - - - - - -

ALLOCATIONS OUT FOR WORKERS COMP - - - - - -

ALLOCATIONS OUT FOR GEN LIAB INSURANCE - - - - - - TRANSFER OUT TOTAL ----> - - - - - -
EXPENDITURES & TRANSFERS TOTAL ----> 442,800 442,725 457,800 457,800 469,250 1,504,900 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -

OTHER REVENUE - - - - - -

OTHER TAX - - - - - -
PROPERTY TAX 323,400 372,335 323,400 411,000 412,000 412,000

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -
USE OF MONEY & PROPERTY 14,500 (16,593) 16,500 8,700 15,500 -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 337,900 355,742 339,900 419,700 427,500 412,000 TRANSFERS IN - - - - - 322,870

ALLOCATIONS IN FROM SEWER - - - - - -

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> - - - - - 322,870 REVENUE & TRANSFERS TOTAL ----> 337,900 355,742 339,900 419,700 427,500 734,870 SC LIBRARY DEBT FUND NET EXPENSE (REVENUE) ----> 104,900 86,983 117,900 38,100 41,750 770,030 SC LIBRARY BOND SERVICE FUND (93931000)

BUDGET SUMMARY

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ADMINISTRATIVE SERVICES DEPARTMENT

Program Name Financial Services
Program Goals The goal of the Finance Services program is to provide timely and accurate financial services that effectively protect and maximize the use of City resources for the good of the community.

Organization 6 FTEs: Financial Services Manager, 2 Senior Accountants, 1 Accountant, 2 Accounting Technicians

Major Services • Financial Planning/Budgeting
• Accountability and Financial Reporting
• Audit Management
• Disbursements
• Payroll
• Business Registration
• Banking/Cashiering/Revenue Management
• Investment Management
• Financial Services Provider for City/County Association of Governments (C/CAG) and the Peninsula Traffic Congestion Relief Alliance (Commute.org)

FY 2022-23
Accomplishments
• Replaced the City cashiering system and provided training • Issued a Request for Proposal for auditing services and executed a multi-year contract
• Collaborated with the City Treasurer to select a new auditor, Badawi & Associates, CPA, for the FY 2022-23, FY 2023-24, and FY 2024-25 audits • Collaborated with Parks and Recreation on the cash handling process related to the Farmers Market and HomeTown Days ticket sales
• Assisted the Public Works Department with the Wastewater Rate Study

FY 2023-25 Goals • Updated the cash-handling procedures and will provide training to City Staff • Continue exploring options for requisition and accounts payable batch routing, and review workflow in the General Ledger System
• Explore options for a new Fixed Asset and Capital Tracking System • Continue to work with Parks and Recreation to facilitate cash handling processes and procedures for all special events and programs
• Evaluate on-line purchasing programs including the Cal-Card program and update polices as necessary
• Assist the Community Development Department on the implementation of the new permit processing system

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Financial Services
Objective 1
Financial planning/budgeting, accountability, and financial reporting and management of the audit, disbursements, payroll, cashiering, investments, and business registration.

Two of the key services of the Finance Division is financial planning and budgeting for the City through the production of a budget for the one-year or two-year cycles and the mid-cycle update. The budget provides the departments an opportunity to review their revenue and expenditure projections, capital projects, and performance measures.

Receiving the Government Finance Officers’ Association (GFOA) Distinguished Budget Presentation award demonstrates that the City’s budget documents are of the highest quality, reflecting both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA's best practices on budgeting. The City has been awarded this prestigious award for a number of years and strives to continue receiving the award.

Accountability, financial reporting, and audit management are also of the utmost importance to the Financial Services division. It is essential to maintain the benchmarks below as they are part of the division’s on-going internal controls process and the division reviews the transactions before they go into the City’s Comprehensive Annual Financial Report. Obtaining the GFOA Certificate of Excellence in Financial Reporting confirms that the City is able to go beyond the minimum requirements of Generally Accepted Accounting Principles (GAAP) to prepare the Comprehensive Annual Financial Report with transparency and full disclosure. The benchmarks are also indications of the division’s ability to provide strong customer service to residents, other departments, divisions, businesses, customers, and vendors by meeting transactional demands while maintaining accuracy with general ledger entries.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
GFOA Distinguished Budget Presentation* Yes N/ A Yes N/A GFOA Certificate of Excellence in Financial Reporting Yes Yes Yes Yes # of journal entries processed 192 200 210 210
AA+ or higher Bond Rating Yes Yes Yes Yes
# of vendor payments processed 5851 5900 5950 6000
# of invoices/bills sent 927 940 960 960
# of cash receipts processed 5988 6030 6100 6100
% of outstanding receivables collected within 90 days 93% 94% 95% 95% # of months in compliance with the City’s Investment
Policy 12 12 12 12
# of active business registrants 2,884 2,988 3,146 3,295 % of residents perceived that the City manages its
finances well** N/ A 80% N/ A 80%
*Typically measured biennially. However, Finance applied for the GFOA award for the FY 2020-21 budget and received it in FY 2021-22.
**These metrics are taken from the Citizen Opinion Survey that is conducted biennially. The latest survey was conducted in 2023 and the next survey will be conducted in 2025. As such, there are no metrics provided for 2022 and 2024. The latest community surveys can be found at https://www.cityofsancarlos.org/residents/community-surveys.

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Financial Services
Objective 2
Provide quality financial services to the City/County Association of Governments (C/CAG) and Peninsula Traffic Congestion Relief Alliance (Commute.org) FY 2023-24, and just C/CAG in FY 2024-25.

The Finance Division prides itself on providing excellent customer service to the agencies that we serve. The following benchmarks show that we provide timely and accurate transactional support to C/CAG and Commute.org. We also serve as custodians for their investments and strive to meet the primary objectives of safety of principal and liquidity for the agencies.

The City will perform billing and payment collections for Commute.org in FY 2023-24 in addition to the financial services, and has decided to discontinue providing all financial services to Commute.org starting in Fiscal Year 2024-25. The numbers below reflect the sudden ramp up in FY 2023-24 in the number of transactions and then the sharp decrease in FY 2024-25.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of journal entries processed 30 30 28 10
# of vendor payments processed 677 690 720 439
# of invoices/bills sent 59 60 165 65
# of cash receipts processed 250 260 270 130
% of outstanding receivables collected within 90 days 100% 100% 100% 100% # of months in compliance with the C/CAG’s
Investment Policy 12 12 12 12

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 606,800 572,993 666,950 681,670 787,600 815,800 BENEFITS 333,600 271,774 356,000 310,000 448,100 469,300 PERSONNEL TOTAL ----> 940,400 844,767 1,022,950 991,670 1,235,700 1,285,100

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 188,400 188,878 202,600 202,600 214,700 225,100 PROFESSIONAL SERVICES 596,900 518,599 616,000 616,000 640,600 659,800

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 6,500 4,371 9,650 9,650 10,000 10,300

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -
VEHICLE USAGE 150 - 200 200 200 200

EQUIPMENT MAINTENANCE - - - - - -

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 791,950 711,847 828,450 828,450 865,500 895,400 CAPITAL OUTLAY 1,200 - 1,200 1,200 1,200 1,200
CAPITAL OUTLAY TOTAL ----> 1,200 - 1,200 1,200 1,200 1,200 EXPENDITURES TOTAL ----> 1,733,550 1,556,615 1,852,600 1,821,320 2,102,400 2,181,700

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 12,900 12,900 13,200 13,200 14,400 14,800 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 4,000 4,000 4,100 4,100 4,200 4,300 TRANSFER OUT TOTAL ----> 16,900 16,900 17,300 17,300 18,600 19,100 EXPENDITURES & TRANSFERS TOTAL ----> 1,750,450 1,573,515 1,869,900 1,838,620 2,121,000 2,200,800 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
BUSINESS REGISTRATION 996,000 1,110,893 1,063,400 1,217,300 1,265,900 1,316,600 CHARGES FOR CURRENT SERVICES - 1,070 - - - -
FINES & FORFEITURES 100 100 100 100 100 100

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE 292,100 311,403 297,500 297,500 309,400 225,900

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -
USE OF MONEY & PROPERTY 1,088,500 (1,680,901) 1,245,100 1,444,100 939,200 810,500

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 2,376,700 (257,436) 2,606,100 2,959,000 2,514,600 2,353,100

GENERAL TRANSFERS IN - - - - - -

ALLOCATIONS IN FROM SEWER
389,100 389,100 400,800 400,800 473,300 487,500
ALLOCATIONS IN FROM NPDES 6,900 6,900 7,100 7,100 7,400 7,600 ALLOCATIONS IN FROM GAS TAX 3,200 3,200 3,300 3,300 4,600 4,700 ALLOCATIONS IN FROM WORK COMP 16,300 16,300 16,800 16,800 17,500 18,000 ALLOCATIONS IN FROM RISK MGT 23,800 23,800 24,500 24,500 25,500 26,300 TRANSFER AND ALLOCATIONS IN TOTAL ----> 439,300 439,300 452,500 452,500 528,300 544,100 REVENUE & TRANSFERS TOTAL ----> 2,816,000 181,864 3,058,600 3,411,500 3,042,900 2,897,200 GENERAL FUND NET EXPENSE (REVENUE) ----> (1,065,550) 1,391,650 (1,188,700) (1,572,880) (921,900) (696,400) FINANCIAL SERVICES (01211000)

BUDGET SUMMARY

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ADMINISTRATIVE SERVICES DEPARTMENT

Program Name Human Resources
Program Goals The goal of the Human Resources program is to provide a quality workforce for the City following best practices and policies consistent with mandatory Federal, State, and local regulations.

Organization 2 FTEs: Human Resources Manager, Human Resources Analyst

Major Services • Labor Relations
• Recruitment
• Training
• Benefit Administration
• Employee Relations

FY 2022-23
Accomplishments
• Modified the new hire orientation process so employees could submit required forms electronically
• All employees completed required bi-annual anti-harassment training • Implemented a longer-term telecommuting policy
• Selected a new employee assistance program vendor
• Collaborated with the City Manager’s Department on an employee survey regarding the onboarding process
FY 2023-25 Goals • Introduce additional employee wellness programs and opportunities • Support upcoming labor negotiations
• Use recruitment efforts to help the City recruit and maintain a diverse workforce • Decrease use of paper files and move more toward electronic

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Human Resources
Objective
Labor relations, recruitment, training, benefit administration, and employee relations.

The effective planning of labor helps keep resources and overhead to a minimum while eliminating waste. Working with individual hiring managers, Human Resources tries to hire the right person for the job the first time to reduce cost and avoid new expenses incurred through the recruitment, rehiring, and retraining process. We measure the number of recruitments we process and the amount of applications we receive to confirm that our recruitments are targeting the right candidate pool.

Training and development are key components of hiring and retaining good employees. Human Resources offers a variety of different training opportunities for our employees. When employees are well equipped and continue learning, their levels of productivity and morale are increased.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of employees served 139 161 165 175
Full-time employees 83 97 100 105
Part-time employees 56 64 65 70
# of recruitments processed 39 29 25 30
# of applications processed 854 631 525 630
# of new hires 61 68 50 55
Full-time employees 18 21 10 15
Part-time employees 43 42 40 40
# of trainings offered 97 105 100 100
employees supported per HR FTE 69.5 80 82.5 87.5

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 291,250 292,376 299,950 299,800 314,950 324,350 BENEFITS 180,600 148,152 190,700 180,200 202,000 211,100 PERSONNEL TOTAL ----> 471,850 440,528 490,650 480,000 516,950 535,450

UTILITIES - - - - - -
OFFICE ADMINISTRATIVE 9,000 3,846 16,300 16,300 16,900 17,400 PROFESSIONAL SERVICES 104,300 69,662 157,400 157,400 163,700 168,600

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 21,000 8,856 21,600 21,600 22,400 23,000 COMMUNITY RELATIONS 7,800 10,342 11,000 11,000 11,400 11,700

INSURANCE - - - - - -
VEHICLE USAGE 100 - 100 100 100 100
EQUIPMENT MAINTENANCE 4,200 - 4,300 4,300 4,500 4,600

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 146,400 92,705 210,700 210,700 219,000 225,400 CAPITAL OUTLAY 500 - 500 500 500 500
CAPITAL OUTLAY TOTAL ----> 500 - 500 500 500 500
EXPENDITURES TOTAL ----> 618,750 533,234 701,850 691,200 736,450 761,350

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 4,300 4,300 4,400 4,400 4,800 4,900 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 1,400 1,400 1,400 1,400 1,400 1,400 TRANSFER OUT TOTAL ----> 5,700 5,700 5,800 5,800 6,200 6,300 EXPENDITURES & TRANSFERS TOTAL ----> 624,450 538,934 707,650 697,000 742,650 767,650 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE 100 6,711 100 100 100 100

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> 100 6,711 100 100 100 100

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 145,600 145,600 150,000 150,000 177,200 182,500

ALLOCATIONS IN FROM NPDES - - - - - -

ALLOCATIONS IN FROM GAS TAX - - - - - -

ALLOCATIONS IN FROM WORK COMP - - - - - -

ALLOCATIONS IN FROM RISK MGT - - - - - -
TRANSFER AND ALLOCATIONS IN TOTAL ----> 145,600 145,600 150,000 150,000 177,200 182,500 REVENUE & TRANSFERS TOTAL ----> 145,700 152,311 150,100 150,100 177,300 182,600 GENERAL FUND NET EXPENSE (REVENUE) ----> 478,750 386,622 557,550 546,900 565,350 585,050 HUMAN RESOURCES (01212000)

BUDGET SUMMARY

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ADMINISTRATIVE SERVICES DEPARTMENT

Program Name Information Technology
Program Goals The goal of the Information Technology (IT) program is to provide quality, accessible technology infrastructure and automated systems support to all users for receipt of timely information and to conduct City business efficiently without interruption. The goal of communications is to provide highly reliable telephone and mobile device services for City employees and highly reliable City television channel services for viewers.

Organization 4 FTEs: IT Manager, Senior Systems Analyst, and 2 Systems Analysts

Major Services • IT support services for all city departments • Network infrastructure and cybersecurity management
• Phone system support
• Software integration
• Mobile device support
• Hardware support
• Technology replacement
• Data management
• Stream TV channel
• Support Council and Commission meetings
• Online services and resources

FY 2022-23
Accomplishments
• Coordinated with Community Development on the 2nd floor library remodel • Successfully completed a comprehensive cybersecurity audit with ResolutGuard and acted on recommendations such as completing a technical assessment review and applying internal controls to better manage user accounts. • Implemented Tyler Cashiering to increase the ability to take online payments • Implemented BeyondTrust – VPN access for contractors to increase productivity • Replaced uninterruptible power supply (“UPS”).
• Replaced 40 desktops with laptops.
• Implemented eSentire Managed Security Services
• Completed Virtual Server upgrade/migration

FY 2023-25 Goals • Assist the Community Development Department with the implementation of the new permitting system
• Complete firewall upgrade
• Issue RFP/install phone system replacement
• OnBase upgrade to cloud system
• Assist Public Works on the Security Camera Installation • Issue RFP/ Upgrade Backup and Disaster Recovery project • Assist Public Works on the Door Access System Upgrade

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Information
Technology
Objective
Project planning, network infrastructure, end user and desktop support, application integration and support, server support, data management, security, TV channel, City Council and Planning Commission meeting broadcasts, mobile devices, telephony services, technology replacement, and website integration and support.

The Information Technology (IT) Division has identified uptime, response time, upgrades, and implementation as key measures because IT needs to maintain an infrastructure that is always available so staff can serve the public daily. We monitor supported devices so we can create accurate technology replacement plans to replace outdated equipment and implement new technologies.

Identifying intrusions is critical in protecting data and uptime of IT infrastructure. We monitor intrusions and uptime to ensure we have the proper tools in place to keep our servers secure.

Key Performance Measures FY 2022
Actuals
FY 2023
Projected
FY 2024
Proposed
FY 2025
Proposed
# of mobile devices supported 125 130 130 130
# of computers supported 142 145 145 150
# of telephone users supported 205 210 215 215
# of servers supported 49 47 47 47
# of upgrades implemented 12 10 15 15
# of support requests received 1,778 1,566 1,600 1,600
Median first reply time to tickets (in hours) 30 24 8 8 Median time to resolve tickets (in hours) 60 48 32 32
% of users who rate helpfulness of desktop services
as good
92% 95% 98% 98%
Uptime of servers and infrastructure 99.8% 99.99% 99.999% 99.999% % of intrusions detected 0 0 0 0
Uptime of critical applications 99.999% 99.999% 99.999% 99.999%

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EXPENDITURES SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25
SALARIES 552,200 556,924 568,800 571,350 617,000 636,900 BENEFITS 292,100 250,932 303,900 259,400 323,200 338,500 PERSONNEL TOTAL ----> 844,300 807,857 872,700 830,750 940,200 975,400 UTILITIES 102,300 69,240 105,400 105,400 109,600 112,900 OFFICE ADMINISTRATIVE 4,500 3,475 5,500 5,500 5,700 5,900 PROFESSIONAL SERVICES 233,300 209,087 224,250 224,250 233,200 240,200

UNIFORMS & SAFETY EQUIPMENT - - - - - -
PROFESSIONAL DEVELOPMENT 33,200 2,447 33,600 33,600 35,000 36,000

COMMUNITY RELATIONS - - - - - -

INSURANCE - - - - - -
VEHICLE USAGE 250 - 250 250 300 300
EQUIPMENT MAINTENANCE 366,900 347,270 397,900 397,900 381,300 392,700

SERIAL BONDS - - - - - -

PROGRAM COSTS - - - - - -

OPERATING EXPENSE - - - - - -
OPERATING EXPENSE TOTAL ----> 740,450 631,519 766,900 766,900 765,100 788,000 CAPITAL OUTLAY 10,700 10,915 12,000 12,000 12,500 12,900 CAPITAL OUTLAY TOTAL ----> 10,700 10,915 12,000 12,000 12,500 12,900 EXPENDITURES TOTAL ----> 1,595,450 1,450,291 1,651,600 1,609,650 1,717,800 1,776,300

TRANSFERS OUT - - - - - -
ALLOCATIONS OUT FOR WORKERS COMP 8,700 8,700 9,000 9,000 9,600 9,900 ALLOCATIONS OUT FOR GEN LIAB INSURANCE 3,100 3,100 3,200 3,200 3,100 3,200 TRANSFER OUT TOTAL ----> 11,800 11,800 12,200 12,200 12,700 13,100 EXPENDITURES & TRANSFERS TOTAL ----> 1,607,250 1,462,091 1,663,800 1,621,850 1,730,500 1,789,400 REVENUE SUMMARY Revised Audited Revised Projected Proposed Proposed 2021-22 2021-22 2022-23 2022-23 2023-24 2024-25

BUSINESS REGISTRATION - - - - - -

CHARGES FOR CURRENT SERVICES - - - - - -

FINES & FORFEITURES - - - - - -

FROM OTHER AGENCIES - - - - - -

LICENSES & PERMITS - - - - - -
OTHER REVENUE - 1,378 - - - -

OTHER TAX - - - - - -

PROPERTY TAX - - - - - -

SALES TAX - - - - - -

TRANSIENT OCCUPANCY TAX - - - - - -

USE OF MONEY & PROPERTY - - - - - -

VEHICLE IN LIEU - - - - - -
REVENUE TOTAL ----> - 1,378 - - - -

GENERAL TRANSFERS IN - - - - - -
ALLOCATIONS IN FROM SEWER 344,300 344,300 354,600 354,600 418,800 431,400 ALLOCATIONS IN FROM NPDES 5,800 5,800 6,000 6,000 6,200 6,400 ALLOCATIONS IN FROM GAS TAX 5,100 5,100 5,300 5,300 7,300 7,500 ALLOCATIONS IN FROM WORK COMP 10,900 10,900 11,200 11,200 11,600 11,900 ALLOCATIONS IN FROM RISK MGT 10,500 10,500 10,800 10,800 11,200 11,500 TRANSFER AND ALLOCATIONS IN TOTAL ----> 376,600 376,600 387,900 387,900 455,100 468,700 REVENUE & TRANSFERS TOTAL ----> 376,600 377,978 387,900 387,900 455,100 468,700 GENERAL FUND NET EXPENSE (REVENUE) ----> 1,230,650 1,084,113 1,275,900 1,233,950 1,275,400 1,320,700 INFORMATION TECHNOLOGY (01213000)

BUDGET SUMMARY

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Sr. Admin Clerk
(1)
Associate Planner
(1)
Planning Manager –
Advance Planning
(1)
Assistant Community
Development Director
(1)
Community Development Department
Organization Chart
Community
Development Director
(1)
Senior Planner
(1)
Economic
Development
Coordinator
(1)
Assistant Planner
(1)
Building Official
(1)
Principal Planner –
Current Planning
(1)
Associate Planner
(1)
Administrative
Assistant
(1)
Senior Admin Clerk
(1)
Contract Development
Services Technicians
Management Analyst
(1)
Senior Planner
(1)
Assistant Building
Official
(1)
Senior Management
Analyst
(1)
Economic Development
& Housing Manager
(1)
Building Inspector II
(2)
Building Inspector II
(1)
Building Inspector II
(1)
Permit Technician
(1)
Contract Code
Enforcement Officer
Contract Planning,
Economic Development
& Administrative
Support
Reclass
Underfilled

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COMMUNITY DEVELOPMENT DEPARTMENT
Mission
The Department of Community Development manages future development in the city to ensure a high quality of life, safety, and economic viability for the entire community. Through the coordination of current and long- range planning, economic development, housing programs, plan review processes, permit issuance, inspection services, and administration of the appropriate City ordinances, the Department preserves neighborhood character and enhances the community’s quality of life within the context of the City's General Plan. Services are provided through five programs: Development and Permitting Services; Key Development Project Facilitation; Code Enforcement and Long Range Planning; Economic Development; and Housing Compliance and Assistance.

Organization
The department is comprised of Planning and Building, Economic Development, and Housing

Org Code
01181000, 01191000, 01191001, 0164000, 01640033, 29291000, 31313000

Dept #
1810, 1910, 1911, 2910, 3130, 6400

Description
Under the direction of the Community Development Director, the Community Development Department consists of 23 full-time regular employees, 4.2 FTEs equivalent of planning contractors, and 1 FTE Code Enforcement contractor in four divisions.

Program Management
Leadership and Management (2.8 FTEs) Community Development Director Development and Permitting, Key Development Project
Facilitation, Code Enforcement, Advanced Planning, and
Code Enforcement (22.75 FTEs/contractors)

Community Development Director
Assistant Community Development Director
Planning Manager
Principal Planner
Building Official
Economic Development (1.325 FTE) Assistant Community Development Director Economic Development & Housing Manager
Housing Compliance and Assistance (1.325 FTE) Assistant Community Development Director Economic Development & Housing Manager

San Carlos City CouncilJune 12, 2023

San Carlos City Council
June 12, 2023