We realize there are many qualified firms to choose from and are pleased you have selected our firm to assist you with your matter. We care deeply about our clients and are proud to say we have many clients who have been with our firm since the firm's inception in 1958. We strive to provide exceptional client service to all of our clients. We welcome the City of San Clemente as a valued client and look forward to assisting in the achievement of its objectives. You can obtain more information about my background and our firm's services from our website, www. hanson bridgett. com.
Very truly yours,
~-
Claire Hervey Collins
Partner
Attachment
CC: Erik Sund, City Manager
CONFIRMATION
I have read and understand this Engagement Letter/Fee Agreement and the attached Billing and Policy Summary. I hereby confirm the engagement of Hanson Bridgett LLP to represent City of San Clemente in accordance with its terms.
CITY OF SAN CLEMENTE
By:------------
Gene James, Mayor
Date: _____________ _
18558448.1
5-25-22 I 1 OE-4
@ HansonBridgett
Billing and Policy Summary
1. Billing Practices. We have learned from experience that the attorney-client relationship works best when clients receive a full explanation at the outset about fees and payment terms.
California law requires written fee agreements in many cases, and we have found that our clients prefer to have them even when not legally required. This "Billing and Policy Summary" sets forth the principles underlying our fees and other charges. Please review it and let me know if you have any questions about our billing policies. In addition, you should direct any future questions about our billing practices or any particular invoices to me.
2. Fees. Except as otherwise agreed with a client, we bill for our services on an hourly basis. We account for our time in tenth-of-an-hour increments, and calculate fees by applying hourly rates assigned to attorneys and other staff to the time spent on a matter. On occasion, we may utilize contract employees to assist in providing legal or paralegal services, working under our direct supervision. In such cases the client is billed at an appropriate hourly rate commensurate with that of our professional staff with equal experience and expertise. All billing rates are reviewed annually and may be adjusted periodically.
3. Other Charges. Depending on the matter, we may have to use various in-office support systems and outside services. Therefore, you may incur and be billed for costs in addition to professional fees, subject only to written policies regarding the billing of disbursements that a client may provide to us in advance of the engagement. Usually we bill such charges to a client's account at the time they are incurred. Examples include photocopying, overnight delivery, messenger services, computer research, travel expenses, court filings, court reporting, data storage and expert witnesses. In some cases, we may request that a client pay the invoice of an outside vendor directly. These expenses are billed at the actual cost with no additional mark up to you. We reserve the right to make periodi~ adjustments to these charges.
4. Fee Estimates. From time to time, we may be ask.ed to provide estimates of anticipated fees. Although we will make every effort to do so in a manner appropriate to the circumstances, these estimates may be subject to uncertainties beyond our control. Such estimates should not be viewed as a maximum or minimum fee quotation, unless we expressly confirm so in writing.
5. • Billing Procedures. Ordinarily, we will bill clients on a monthly basis. Each invoice will separately state the amount offees and costs. Unless otherwise specified, each represents fees and disbursements charged to the client through the end of the preceding month. The full amount of each invoice is due upon receipt by the client. Although we seek to include all fees and charges for a billing period, certain time and cost items from a billing period may not appear in the invoice for that period. Instead, they may be included in a later invoice. Matters such as probate, bankruptcy, and trust services and certain financial transactions may involve billing at specified times other than monthly, as mutually agreed upon by t,he client and the firm, or as required by the court.
6. Payment Terms. Payment is due upon presentation of the invoice. Invoices that remain unpaid after thirty (30) days from the invoice date are subject to a late payment charge of ten percent (10%) per year. Payments that are made "on account" and not identified with a specific invoice will be credited to outstanding invoices chronologically, first to costs and then to fees.
7. Credit Report. By executing this engagement letter, you agree that we have the right to obtain a consumer report from a recognized credit reporting agency. Should we choose to 5-25-22 / 1 0E-5
obtain such a report, it would be for the purposes of extending credit to you or to review or collect a past due account.
8. Insurer's Role. If you are insured for all or part of the costs of our-representation, we will work with you to provide the insurer with the necessary information regarding the claim.
However, insurers frequently assert, rightly or wrongly, that they are not obligated to pay for all fees and costs or to pay them on a current basis. For this reason, our fees and costs will be billed to you and payment Will be due from you on a current basis, irrespective of any eventual reimbursement of a portion of your fees and costs by your insurer.
9. Preservation of Electronic Information. If your engagement includes a litigation matter, it is possible that it will involve electronic discovery. Under California and federal law, the obligation to provide discovery of electronic information carries with it the obligation to preserve such information. Failure to preserve all electronic and paper information that is later determined to be of potential importance to pending or threatened litigation can result in a range of sanctions, including, in extreme cases, the sanction of an adverse judgment. This evidence may also turn out to be critical to your ability to prove facts that support your position in the case, or disprove facts that the opposing party offers. Many electronic document storage systems contain programs that automatically overwrite or delete data. It is therefore important that you take appropriate steps to ensure that all information and electronic data that may be relevant is not lost, deleted, or destroyed. We will conduct an assessment of your electronic information systems. The assessment will include an initial evaluation and an in-depth identification of sources of relevant information. In the meantime, we recommend that normal document disposition policies, or automatic purging of electronic records, be suspended as to the matters at issue in any pending or threatened litigation until the matter is concluded. Please contact me for our additional fee schedule for assistance with collecting and processing electronically stored information as needed in your matter.
10. Conflicts Review~ We have performed a computerized check of potential conflicts of interest that might have prevented us from providing representation .in this matter. Based on information provided by you, as well as the information available in our files, we are not aware of any conflicts of interest at this time. If you later learn of any additional parties with an interest in this matter, you should notify us immediately so that we can be certain that they create no problem with this representation. We will conduct a similar search with respect to each new matter you may refer to the firm.
11. Identity of Client. Our engagement is with the City of San Clemente. Unless otherwise agreed to in writing, we do notrepresent the individual directors, officers, employees, or other related person or entity as a client. We do not regard a representation adverse to an affiliate, director, officer, or other related person or entity as being adverse to you.
12. Advance Waiver. Given the scope of our firm wide business and client representations, it is possible that during or after the time we represent you, some of our present or future clients will ask us to represent them in disputes or transactions with or involving you which are substantially unrelated to our representation of you. We understand that you have no objection to our representation of parties with interests adverse to you, and that you consent to such representations and waive any actual or potential conflict of interest as long as those other engagements are not substantially related to our services to you. Accordingly, you agree that (i) we can in the future represent existing or new clients in any matter, including litigation or other disputes, so long as the matter is not substantially related to our work for you, even if those other clients' interests are adverse to you in the other matter; (ii) we may obtain confidential information of interest to you in these other matters that we cannot share with you; and (iii) you -2-
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waive any conflict of interest that might arise from any of these representations and will not seek to disqualify us in or assert a.conflict of interest with respect to any of those representations.
We agree, however, that your consent to, and waiver of such representations shall not apply in any instance where, as a result of our representation of you, we have obtained proprietary or other confidential information of a non-public nature, that, if known to such other client, could be used in i;rny such other matter by such client to your material disadvantage or potential material disadvantage.
Similarly, new lawyers frequently join our firm. These lawyers may have represented parties adverse to you while employed by other law firms or organizations. We assume, unless you notify us otherwise, and consistent with our ethical standards, that you have no objection to our continuing representation of you notwithstanding our lawyers' prior professional relationships, provided we timely implement an ethical screen consistent with our customary practices to prohibit those lawyers from participating in your matter and we provide you with written notice of our implementation of the ethical screen.
13. Cooperation. To perform our services effectively, we require the support of each client.
You can assist us by keeping us fully informed as to facts and developments relevant to our representation of you and to each matter assigned. It is essential that each client (as well as any employees or representatives) provide us with accurate and complete information, including written materials when requested, and that each client make its personnel available to the extent required. Failure to assist in this way may affect our ability to represent a client adequately, and could result in our withdrawal as legal counsel. •
14. No Warranty of Result. We cannot predict or represent that a particular result can be obtained within a specified time. We can make no promises or guarantees regarding the outcome of the matter or matters that are the subject of our services. We do not ordinarily undertake to keep clients informed about subsequent developments or changes in law once the matter in question has concluded. If you would like us to do so, please inform us in writing so that we can make the necessary arrangements to provide this service.
15. Return and Disposition of Files. After our services conclude, we will, upon your request, deliver to you the files that we created in providing representation to you, along with any funds or property of yours in our possession. If you do not request the files, we will retain them for a period of five years after the matter is closed. At the end of the five-year period, we will have no further obligation to retain the files.
16. Dispute Resolution. While we certainly do not anticipate conflict between us, in the event of any material dispute regarding the services provided or fees charged by the firm which cannot be settled amicably, we both agree that such dispute shall be submitted, as soon as practicable, to final and binding arbitration in San Francisco in accordance with the rules and procedures of JAMS Inc., a private mediation and arbitration facilitator. We further agree that the arbitration will be subject to the Federal Arbitration Act. Any dispute shall be strictly confidential between us and, except for our own representatives, will not be disclosed to any other person or entity. You have the right to consult with independent counsel before agreeing to this provision or signing this engagement letter.
17. Mandatory Fee Arbitration. Notwithstanding Section 16 above, in any dispute subject to the jurisdiction of the State of California over attorney's fees, charges, costs or expenses, you have the right to elect arbitration pursuant to the fee arbitration procedures of the State Bar of California, as set forth in California Business and Professions Code Sections 6200-6206. -3-
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Arbitration pursuant to the State Bar procedures is non-binding unless the parties agree in writing, after the dispute has arisen, to be bound by the arbitration award. These procedures permit a court trial after arbitration, or a subsequent binding contractual arbitration if the parties have agreed to binding arbitration and either party rejects the award and requests a trial de novo within 30 days after the award is mailed to the parties. If, after receiving a notice of the client's right to arbitrate, you do not elect to proceed under the State Bar fee arbitration procedures, and file a request for fee arbitration within 30 days, any dispute over fees, charges, costs or expenses, any dispute, claim or controversy arising between us, will be resolved by binding arbitration as provided in Section 16 above.
18. Internal Firm Communications. In the course of your representation, it may become necessary for our lawyers to analyze or address their or the firm's professional duties or responsibility regarding an issue in your matter by consulting the firm's General Counsel. We believe that the ability of our lawyers to consult on such issues as needed benefits the firm and our clients and is part of our efforts to maintain our high standards of ethics and professionalism. You will not be charged for such consultations if they occur. It is possible that a conflict of interest might be deemed to exist as between our lawyers and the firm on the one hand and you or your company on the other hand, arising out of these communications. As a condition of this engagement, you consent to waive any claim of conflict of interest that might be deemed to arise out of any such communications. You further agree and acknowledge that these are our attorney-client communications protected from disclosure to you or anyone else and that you will not seek to discover or inquire into them and may not be advised that they are occurring. Before agreeing to this waiver, we encourage you to seek independent counsel regarding the import of this consent. Of course, nothing in the foregoing shall diminish or otherwise affect our obligations to keep you informed of all material developments in your representation, including any conclusions arising out of such internal communications to the extent that they affect your interests. Your execution of our Engagement Letter confirms your agreement to this provision.
19. Termination. Clients may terminate our legal services at any time effective upon delivery of written notice to the firm. In this event, we will be entitled to receive all fees and costs incurred up to the date of termination. Unless we specifically agree to do so, we will provide no further services and advance no further costs on the matter after we receive notice of termination. Our right to terminate services to a client is subject to certain Rules of Professional Conduct that (a) require us to take reasonable steps to avoid foreseeable prejudice to the client from our withdrawal, and (b) establish standards for mandatory and permissive withdrawal under certain circumstances. Failure by a client to pay our bills in full, and on a timely basis, can constitute adequate grounds for us to withdraw. If we are attorney of record in any proceeding at the time we receive a termination notice, you will be required to execute and return a Substitution of Attorney consent immediately upon receipt, regardless of who initiates the termination. •
20. Miscellaneous. From time to time, and consistent with our obligation to maintain your confidences, we may wish to reference our representation of you on our website, in attorney biographies, on matter lists, or in descriptions of our practice areas. We assume you have no objection to such use. We may send you emails with information about our firm, services, legal developments and upcoming events. If at any time you no longer wish to receive marketing communications from us, you may unsubscribe by clicking a link at the bottom of each marketing email which enables you to opt out of our mailing lists. Except as provided in Section 16, our agreement will be governed by California law.
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21. Entire Agreement: Notice. This attached letter and this Billing and Policy Summary represent our entire agreement, which will be effective on the date of your signature. It supersedes all prior agreements, statements, or guarantees made before this time. Any notice from you amending, supplementing or superseding the terms of the attached letter and this Billing and Policy Summary will be effective only if approved by our duly authorized representative, and our agreement is memorialized in a writing signed by both parties. To signify your agreement with the terms of this Letter, please sign the original and retain it for your files. Please sign a copy of the letter and return it to us for our files. You may also affix an electronic signature indicating your intent to sign this letter and return a copy to us electronically.
If mailed, I am enclosing a pre-addressed envelope for your convenience. Of course, you have the right to seek the opinion of independent legal counsel or any other advisors, if you wish to do so, in order to determine whether each and every aspect of this agreement is in your best interests and is acceptable as drafted.
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Department:
Prepared By:
Subject:
AGENDA REPORT
SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: May 25, 2022
Finance and Administrative Services
Erik Sund, City Manager
PENSION UPDATE
Agenda Item 1)
Approvals:
City Manager ---
Dept Head @
Attorney <:..J
Finance "'::-1@--
--
Fiscal Impact: None at this time.
Summary:
Discussion:
At the City's Long Term Financial Plan (L TFP) workshop on April 5, 2022, the City Council requested to have an item agendized for consideration. The direction was to consider additional pension funding strategies. The discussion at the L TFP workshop mentioned: dedicating excess property tax, 213rd of excess parking meter revenue, 1 % of annual budget funds, and salary saving from vacant positions.
City staff introduced a Pension Update paper at the 2019 L TFP (Attachment I), where staff sought to get direction from City Council on possible pension reform strategies as well as provide an update to the City Council on progress made on addressing the City's unfunded pension liability. Here is that progress update:
• One-time pay down of the CalPERS - Safety Inactive in the amount of $4.6 million (FY2009-10) from one-time revenues
• One-time payment of $225,716 in FY 2013-14 to the CalPERS Safety Lifeguard Plan
• One-time utilization of pension reserve funds ($500,000) for a payment to Ca IP ERS Safety Lifeguard Plan (FY 2015-16)
• Utilizing the early payment discount to fund a supplemental pay down on the unfunded liability - annually since FY 2016-17
Additionally, as part of the 2019 L TFP, Fiscal Policies were put in place and disclosures were added to future L TFP's and budgets. As a result of the 2019 L TFP, City staff incorporated an annual Pension Update in future L TFP's. The 2021 L TFP Pension Update (Attachment II) paper included the following recommendations:
• Direct Staff to continue additional payments from one-time resources and budget savings, as available.
• Request Chandler Asset Management to update the exiting City of San Clemente Pension Investment Policy (Policy #202-2) for City Council approval. • Direct CASA staff to prepare a funding agreement or modify the existing JPA agreement to require additional contributions to the CASA pension plan, if the funded status falls below 75% upon transition to CalPERS. • Direct City staff to pursue a California Employee Prefunding Pension Trust (CEPPT) with CalPERS and consider funding the additional Pension Finance and Administrative Services Agenda Report
5-25-22 I B-1
Agenda Report
Recommended
Page2
Prefunding Trust by reducing the City of San Clemente General Fund Emergency Reserve from 20% to 18%.
As part of those actions, City Council directed staff to create a strategy to improve pension funding status. Staff presented a Pension Funding Strategy ("3-2-1 Plan") at the October 19, 2021 City Council meeting (Attachment Ill). The City Council took· the following action:
MOTION BY MAYOR PRO TEM JAMES, SECOND BY
COUNCILMEMBER DUNCAN, CARRIED 4-1 (COUNCILMEMBER
FERGUSON VOTING NOE), to:
1. Direct Staff to pursue the "3-2-1 Plan" and bring back a supplemental appropriation request upon the availability of one-time funds for a $3 million payment on the Public Safety Inactive Plan.
2. Approve a supplemental appropriation of $2 million for a one-time Unfunded Accrued Liability Payment funded through a transfer of $300,000 from the Workers Compensation Fund and an appropriation of $1.7 million from the General, Water, Sewer and Golf Fund balances.
3. Request that City Treasurer Taylor advise Council with regard to the advisability of creating a Section 115 trust and/or paying $1 million into the unfunded liability utilizing the Emergency Reserve as the funding source.
This approved Pension Funding Strategy ("3-2-1 Plan") achieves 90% funding in all CalPERS plans by FY 2023-24. While staff has been diligent in implementing this plan, we anticipate fulfilling this plan in FY 2022-23.
It is staff's recommendation at this time, that we fulfill the "3-2-1 Plan" before changing strategies. With that said, it is staff's recommendation to revisit the City's pension status as part of the 2023 L TFP and provide recommendations for further pension strategies.
Action: STAFF RECOMMENDS THAT the City Council:
Attachments:
1. Approve re-evaluating pension strategies and providing recommendations at the 2023 Long Term Financial Plan.
I.
11. 111.
2019 L TFP Pension Update
2021 LTFP Pension Update
Pension Funding Strategy
Notification: None
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ATTACHMENT 1
Pension Update
Objective
To review the City's current pension plan and provide genera l analysis to formal ize pension policies, provide a visible analysis of the pension funding, and make recommendations for the ongoing sustainability of the pension plan maintaining control of city pension costs into the future.
Executive Summary
Retirement funds and pensions have been a key focus in recent years by governmental agencies .
Pension reporting, disclosure, availability of information, and funding options have changed dramatically over the last 10 yea rs. This is a result of making sure the service costs are recognized in the period earned, changes to financial reporting standards, the aging of the baby boomer generation, changes in life spans and other factors.
These recent changes to the pension environment offer the City an opportunity and a new perspective in reviewing its pension plans, funding, fiscal policies and other considerations to ensure the City of San Clemente's pension funds remain viable for the long term. The City has four pension plans that cover different employee groups and are funded at various levels. A summary of City's pension plans is listed below:
* City of San Clemente Employees' Retirement Plan
Staff reviewed the pension plans and the funding levels and will make recommendations to fund these plans through one-time contributions, additional contributions, and for changing amortization factors. Any review of pension should start with a set of principles or goals to guide a recommended course of action.
During the review of the pension plans, staff noted a lack of formal fiscal policies related to pension funding. Fiscal policies should be developed to guide the decision process. This process can be facilitated through an annual review in the Long Term Financial Plan to achieve Fisca l Policy desired funding and contribution levels. Staff is recommending the City establish policies as identified below:
• Contributions - Formalize the City's commitment to fund 100% of the actuarially determ ined contribution.
• Funding Target-A goa l for funding the liability should be set at a minimum target of 90%.
This prevents potential overfunding of pension liabilities in favorable market conditions 97 5-25-22 I 8-3
Pension Update
and allow the City flexibility to achieve funding solutions among the various City pension plans based on available resources and concerns over time.
Staff noted that there should be a communication tool to provide Council and citizens information on the status or progress of pension funding levels. This communication can be incorporated within the Long Term Financial Plan (LTFP) Trends section and a one page summary in the annual budget document. The City, as part of its trends analysis, can present information on the funding levels of the various pension plans annually as compared to the City established target funding level. In the annual analysis, potential changes or recommendations to achieve the targeted funding level can be documented. The trends section can provide the following :
• Assessment - Provide a summary of the funding levels, contributions, and make recommendations for changing the amortization, early payment, utilization of surplus funds to improve funding levels.
• Recommendation - this is staff's recommendation based on an analysis of the pension funds, its funding, and future requirements.
Once the trends analysis is completed, like most other sections of the Long Term Financial Plan, the information would be incorporated into the budget. The pension budget summa ry page would be presented in the staffing section and cover pension information including pension benefits, pension rates, amortization, and funding levels for the various funds.
As the funding of each plan nears the targeted level the City can use this process to consider other approaches to achieve stable long term funding of pension or retirement fun ds for the employees. Other considerations for the future include:
• Funding a Section 115, an irrevocable trust to prefund pension costs • Changes to the CSCERP plan (such as transition to a new administrator or other costs savings modifications)
Background
The Governmental Accounting Standards Board Statement No 68. Accounting and Financial Reporting for Pensions, became effective June 15, 2014. This statement changed the accounting and financial reporting for state and local government pensions and caused the recognition of pension assets/liabilities on the financial statement balance sheet. It also incorporated other related changes, including modifying footnote information.
Coincidentally, the City of San Clemente was studying a change of pension plan administrator's .
The 2014 Long Term Financial Plan presented a retirement system analysis on changing the retirement plan administrator for California Public Employees' Retirement System (CalPERS) for active employees. The CalPERS change was done to improve services to the employees, help attract employees, align with a California pension provider, facilitate future savings through lower administration costs, achieve a higher return on investments, and provide a better discount rate on the unfunded liability. This change was approved by both the City Council and City employees. Employees not active at the time of transition remained in the CSCERP along with active CASA employees, who are subject to a separate review process by CalPERS. After transition to CalPERS, Cal PERS became the administrator for 3 of the 4 City pension plans. 98 5-25-22 I B-4
Pension Update
CalPERS is a separate an d distinct legal entity from the City and serves as an independent fid ucia ry in managing most of the pension funds of the City. Cal PERS initiated changes over the last five years and more ch anges are anticipated in t he futu re. These changes are meant to bolster the CalPERS funding levels and improve the pension funds long term sustainability. The changes include: modifying the expected investment returns based on anticipated market returns, shortened amortization periods, and updated mortality tables based on available CalPERS member data. These changes, although justified, increase the short term financial burden on cities, but should decrease long term impacts. The following steps have also had the effect of increasing the burden (rates charged) to cities:
• Lowering the discount rate in 2012 from 7.75% to 7.5% and is currently phasing in another reduction of the discount rate from 7.5% to 7%
• Modified actuarial information to recognize increased life expectancy in 2014 • Adopting a new strategic asset allocation in 2018
• Shortening amortization period in 2018
Cal PERS, while making these changes, is working at improving efficiency and reducing operational costs and strengthen the sustainability of the Cal PERS fund for the long term. In addition, a 2013 California law was passed adopting the largest pension change in recent memory - Public Employees Pension Reform Act (PEPRA). This law change resulted in lower pension benefits, removing benefit items, and increasing employee pension contributions.
The one plan outside of CalPERS is the CSCERP pension trust fund. This plan is shown in City of San Clemente financial statements and was the sole pension for the miscellaneous employees before transition to CalPERS. The pension trust was administered by Empower (formerly Great West) for over 20 yea rs. In 2017, Empower discontinued its pension ad ministration services, but still maintains the asset management function of the pension assets. The City in 2017 contracted with Milliman for pension administration services, which includes participant communication, benefit calculations, databased maintenance and retiree payment services.
The City of San Clemente is taking this opportunity to review its pension plans, outline actions taken, and identify actions to improve its pension and the funding levels into the future.
Pension Analysis Summary:
The City has the following pension plans:
Plan Administrator/Trustee Participants Benefit
Marine Safety Cal PERS Lifeguards (Full Time) 3%@55 (Classic)
2.7%@57 (PEPRA)
Safety (inactive) Cal PERS Former police and fire employees 2%@50 (Classic)
2.7 @57 (PEPRA)
Miscellaneous Cal PERS General employees (non-safety) 2%@55 (Classic) 2%@62 (PEPRA)
City of San Clemente Milliman & Empower Former city employees and Coastal 2%@55 (Classic) Employee Retirement Animal Services employees 2%@62 (PEPRA) Plan (CSCERP)
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Pension Update
The City always considers pension funding important, however changes by CalPERS has offered the City of San Clemente an opportunity to review its pen sion plans and form alize its process as related to pension plans. Previously, staff did internal assessments over the years which led to early pay down of these liabilities, payoff of side-funds, and other changes re lated to the pension administrat ion with Council approval.
The City of San Clemente has been striving to pay down the actuarially accrued liability over the years. The City has worked toward funding its pension plans, with some of these steps occurring before the recent focus on pensions and the funding levels of pension plans. Steps taken in previous yea r's follow:
• One-time pay down of the CalPERS - Safety Inactive in t he amount of $4.6 million (FY 2009-10) from one-time revenues
• One-time payment of $225,716 in FY 2013-14 to the Cal PERS Safety Lifeguard Plan • One-time utilization of pension reserve funds ($500,000) for a payment to Cal PERS Safety Lifeguard Plan (FY 2015-16)
• Utilizing the ea rly payment discount to fund a supplemental pay down on the unfunded liability- this has been done annually since FY 2016-17 Additional payments improved the City's operating position by achieving cost savings in future years. However, there is no documented process or goal. The steps taken were done without consideration of any formal target or pension funding level. The City can improve this process by memorializing objectives in its fiscal policies. These policies can address funding levels, contributions, analysis, recommendations and updates. Staff recommends the following changes to the fiscal policies:
• State that required actuarial contributions shall be made and that actuarial contributions are to cover current service costs and the unfunded liabilities. These costs are based on the actuarially determined contribution rate.
• A funding target (goal) of 90% funding should be added to the fiscal policies for pensions, which would be the minimum target level.
Pension funds can fluctuate based on actual vs expected results, such as, higher investment returns than anticipated, a change in mortality results, lower inflation than expected, or a multitude of other reasons. This 90% level will help prevent overfunding which could lock up assets within a specific pension plan and is considered a healthy funding level. Once the goal is achieved, staff will continue to make contributions and take steps to maintain that target.
Staff also can add a Pension Funding section to the Trends portion of the Long Term Financial Plan. This wi ll provide ongoing reporting and ana lyze funding levels as compared to the target level. A pension liability trend indicator can be added to show a status (improving or declining) on the past history of this liability on an annual basis. This indicator can also be used to analyze the historic funding levels and to offer considerations.
To initiate this annual assessment process, staff com pleted a review by plan and examined ways to provide long term funding options. The summary below lists the pension plan, funds 100
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Pension Update
responsible for the payment of the liability, the market value of the assets, the liability, the unfunded amounts, and the funding percentage by pension plan based on the most recent valuation dc1te . The CalPERS plans report the valuation information as of June 30, 2017 and the CSCERP plan reports the valuation information is as of July 1, 2017 . .• . ' . ~~ •f,, ""~ ,-"ll'. ~ •1"< tn ~~ I • i ~ a •-1,.,•,t ' • "- . Resp.,,~!Y~ ,'.,t, M~a!~f;t,!',a!uf -!-' J~ ; • ·:t,. if, ·- · . Unfll~d.~d • • Fun_~1rg \ ., Est1rnatE!d .; .. . Plan .. .. • ~ . Fund(s) ,. • of €1ssets ,: .. ~.{:.1 t ' L1abil1ty ,:. :, : :.,, • amount . ,: :~Percent :t FY 2019-20 Cost '.~ Marine Safety General $ 5,124,709 $ 6,108,534 $ 983,825 83.9% $ 177,000 6/30/2017 valuation Fund
Safety (inactive) General $ 29,058,555 $ 42,338,119 $ 13,279,564 68.6% $1.25 million 6/30/2017 valuation Fund
Miscellaneous All City $ 42,804,844 $ 54,150,480 $ 11,345,636 79.0% $1.9 million 6/30/2017 valuation Funds
CSCERP All Funds $ 20,213,000 $ 35,273,000 $ 15,060,000 57.3% $1.4 million 7/1/2017 valua tion
Totals $ 97,201,108 $ 137,870,133 $ 40,669,025 70.5%
The following analysis by plan summarizes the condition of each plan and lists steps that can be implemented to improve the funding percentages of the various plans.
Marine Safety- This is the smallest plan in terms of market value and liability; and this would be the easiest to reach the funding target as it is already funded at 83.9%. Staff recommends that a one-time General Fund payment in the amount of $400,000 be made to reach the target of 90%.
Once reached, annual steps would be considered by staff to maintain the funding level of 90%.
Safety- This plan is considered an inactive plan because there are no active employees making contributions to the plan. This plan serves former public safety employees prior to the City contracting police and fire at the county level (OCSD and OCFA). Since there are no active participants the unfunded liability was amortized over a set period of time (20 years). Annual payments are flat, but annual changes occur based on actuarial assumption variances and actual/expected differences. The FY 2019-20 payment due is $1,252,560. The amount is paid from the General Fund since these were General fund activities. Based on actuarial assumptions and the current payment schedule, this plan will be fully funded by FY 2035-36 (16 years).
Currently, the Safety payment is made before July 31st to achieve a payment discount; then based on the budget available, staff requests to make another one-time payment to CalPERS which lowers the anticipated costs in future years. For example, the monthly payments total $1.25 million for the year; since the entire payment is made by July 3pt a discount is received and the payment made is $1.20 million. Staff utilizes the $50,000 in savings to request an additional onetime payment to lower the liability that reduces the unfunded liability. Staff will continue this annual additional payment in the future. The police contract with OCSD may experience vacancies during the year, although staff has not utilized these saving to pay down the unfunded safety liability, this may be done in the future to achieve future cost savings on this pension plan.
Miscellaneous - The Miscellaneous plan handles most of the active employees of the City. It includes the active employees at the date of conversion to Cal PERS and any new hires since that date. The plan was funded at 90% previously, but with Cal PERS actuarial changes, variances, and returns the funding percentage has dropped to 79%. This plan has the largest payroll. A 101
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Pension Update
percentage of the payroll and a fixed amount to pay the unfunded liability determines the City's contribution. Options to pay down the unfunded liability could include one time contributions, but given that this one-time payment would effect all City funds (excluding CASA) this could have an impact on Water, Sewer and Golf Funds which have been recently running operating deficits.
Given that this pension fund is funded at a higher level than CSCERP a better course of action to improve its long term funding would be to consider modifying the amortization period or methodology to improve the funding percentage over a shorter timeframe or make contributions based on opportunities from salary savings.
CSCERP - This plan has the lowest funding percentage. CSCERP participants are CASA employees and former employees who were no longer active with the City of San Clemente at the transition to CalPERS. This plan, like CalPERS, uses actuarial assumptions that mirror CalPERS and it has absorbed similar lifespan changes that have impacted funding levels. This fund's most recent valuation implemented actuarial assumption changes reducing the discount rate to 6.25%, which is the lowest rate of return of all the pension funds. The funding level is now at 57.3%.
This plans unfunded liability is being amortized over a fixed period of time due to the low number of active participants. The amortization period of the unfunded liability is currently 17 years, so in theory contributions should decrease significantly after that time. The plan contributions are made by all funds of the City, including CASA funds.
Overall, since this fund has about 6-7 active employees, overfunding this plan locks up assets with no easy way to remove or transfer assets to another plan. This plan could be bolstered through a one-time contribution early in the amortization period to save costs over the long term. This contribution would be split among City funds. However, this one-time contribution cou ld put undue hardship on funds without sufficient financial resources. CASA has built up fund balance and also just received a one-time donation which could be utilized to pay down a portion of its unfunded liability with minimal impacts. Staff will consider this option in the near term future and may propose this step in the FY 2019-20 budget depending on available funds .
All Plans - If significant one-time revenues are available from sale of land or other one time revenues, staff may recommend a one-time payment to reduce the unfunded liability with Council approval. These steps would improve the operating position of City's General Fund.
These one-time contributions would first be utilized for pension funds which have not achieved the 90% funding level. This would protect from one plan being overfunded while other plans are below the City's target funding threshold .
Future Pension Considerations:
Once the City starts achieving the target funding level of 90% or the City determines it wants to lessen future impacts of pension rate fluctuations a Section 115 Trust would be created. This action of creating and funding a Section 115 Trust and the other options discussed in this section would require City Council approval.
A section 115 Trust is an IRS approved irrevocable trust created to allow prefunding of pension costs and reduces the financial statement pension liability without being placed in one specific pension plan. Funds held in the trust offer flexibility and improved performance. This is a growing 102
5-25-22 I B-8
Pension Update
field and both CalPERS and PARS (private company) have started to offer these plans. Funds placed in the trust are no longer limited to low risk, short term investments based on strict California law, but rather allows an investment portfolio simila r to existing pension funds which include a variety of investments (bonds, mutual funds, and stocks). These IRS Section 115 Trust assets could be utilized to offer better long term returns than the City's investment portfolio but be invested more conservatively than Cal PERS assets. Assets in Cal PERS are invested in a variety of investments which can be vulnerable during economic downturns. The Section 115 trust assets would be overseen directly by the City and could be used to smooth future pension rates or annual contributions. The assets could fund any of the City's multiple pension plans, bolster funding for pension funds that experience poor actuarial effects, or be utilized to offset the pension liability independently.
Other options include:
• CASA should resubmit a request to CalPERS to transition those employees to a risk pool plan based on the passage of Assembly Bill 1912 which was done in September 2018. This bills states that if an entity formed under a Joint Powers Agreement (JPA) terminates its retirement contract with CalPERS or any other retirement plan, the parent agencies become responsible for any retirement liabilities or obligations associated. • Convene the Pension committee and perform a current review of existing CSCERP pension plan provisions and consider changes streamline/modify the pension plan. This could include transitioning inactive employees to CalPERS, distributions to non-vested employees, changing the CSCERP investment allocation, lower the interest rate credited on employee contributions, or review ot her changes to the plan. • Seek a new plan administrator and/or asset manager for the CSCERP to achieve cost savings in the future.
Recommendations:
In order to strengthen and promote long term financial stability of the City of San Clemente related to pensions, staff recommends that a Pension Fiscal Policies be added to the City's Fisca l Policy. A Pension Policy section can be located in the City's Fiscal Policies. The policies added would state the following:
"The required actuarial contributions shall be made to cover the current service cost and unfunded liabilities based on the actuarially determined contribution rate." ''Annually, review the City Pension plans funding levels of and identify areas where funding may be utilized to target a funding ratio of 90% or higher for each of the City's individual pension plans."
Incorporate a pension trend indicator into the Long Term Financial Plan in 2020 (Trends Section).*
Incorporate a Pension summary page in the City budget.** Direct staff to pursue options, as identified in the Pension Analysis issue paper, to pay down unfunded liabilities for the pension plans to meet the target 90% funding level by plan and 103
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Pension Update
authorize a one-time General Fund contribution from General Fund unassigned fund balance to the Marine Safety Plan in an amount up to $400,000 to reach a 90% funding level in this plan. *
**
The indicator will provide a snapshot of the funding level for the City's pension plans. This indicator can be used to annually document pension funding, the status of funding, and comments that identify steps taken or changes that effect Pension Funding. This section can also identify options available to improve funding levels and identify impacts on pension funding. This will brief City Council and the public about the effect of pension changes on benefit costs and where the City is at from a funding perspective.) This would be presented in the staffing section and cover pension information including pension benefits, pension rates, and funding levels for the various plans.) 104
5-25-22 I B-10
ATTACHMENT 2
Pension Update
Objective
To review the City's current pension plans, summarize actions taken after the 2019 LTFP Pension Update, and make fu rther recommendations to improve the ongoing sustainability of the City's pension plans and limit the growth of city pension costs into the future.
Executive Summary
Pension reporting, disclosure, availability of information, and funding options have changed dramatically over the last 10-15 years to ensure service costs are recognized in the period earned (generational equity) and assets and liabilities are properly reflected in the financial statements with a focus to ensure adequate funding levels (financially sustainable).
The funded status of pensions has been a key focus in recent years of governmental agencies and in 2019 a Pension Update was provided to City Council with the LTFP to improve transparency and implement actions to improve the long term sustainability of the pension plans. The City has currently pension plans that cover different employee groups and are funded at various levels. A summary of City's pension plans is below:
* City of San Clemente Employees' Retirement Plan
Plan Administrator/Trustee Participants Benefit
Lifeguard Safety CalPERS Lifeguards (Full Time) 3%@55 (Classic)
2.7%@57 {PEPRA)
Safety (inactive) CalPERS Former police and fire employees 2%@50 (Classic)
2.7%@57 (PEPRA)
Miscel laneous Cal PERS General employees (non-safety) 2%@55 (Classic) 2%@62 (PEPRA)
City of San Clemente Milliman & Empower Former city employees and Coastal 2%@55 (Classic) Employee Retirement Animal Services employees 2%@62 {PEPRA) Plan (CSCERP)
The City has taken multiple actions based on the 2019 Pension Update, as part of the Long Term Financial Plan. As part of this update, staff reviewed the various pension plans and made recommendations to implement new fiscal policies, increase transparency related to pensions, and take other actions to improve the funding of these plans through one-time contributions, additional contributions, and changing amortization periods. In addition, staff would seek future actions to improve the pension outlook and/or funding levels.
5-25-22 I B-11
Pension Update
This year staff is providing information on actions taken from the 2019 Pension Update in the Background section of this report. These actions include the following:
• Formalized a Fiscal Policy and added summary information to LTFP and Budget • Make additional contributions to Ca l PERS and modify amortization bases • Submitted a formal application to transfer active CASA participants to CalPERS Additionally, a current funded status is also provided based on the most recent actuaria l valuations.
The current year Pension Plan analysis provides a plan summary and funding strategy information fo r each pension plan. The plan summary covers funded status and appl icable employee's pensions that are funded through the plan. The funding strategy discusses opportunities or options to improve funding, including items that are currently being utilized. These strategies include additiona l payments, changing of the amortization period, combining of amortization bases, and use of budget savings to further reduce the liability. Also, information on other actions which can be taken are identified, including modifications to the CSCERP investment policy and funding a Section 115 trust to lessen the impact of future pension cost increases.
Background
Fiscal Policy and Summary information added to the L TFP and Budget During the 2019 LTFP Pension Update, staff identified a lack of formal fiscal policies related to pension funding. Simple fiscal policies were identified and approved by Council through the LTFP and the Budget process. These polices can be modified through Council action. Currently, the Fiscal Policy addresses contribution levels and sets a target funding level. These following policies were adopted and are included in the City Fiscal Policy. Staff is not currently recommending any changes to the established policies, which follow:
• Contributions -
The required actuarial contributions shall be made to cover the current service cost and unfunded liabilities based on the actuarially determined contribution rate. • Funding Target -
Annually, review the City Pension plans funding levels and identify areas where funding may be utilized to target a funding ratio of 90% or higher for each of the City's individual pension plans.
In addition to the Fiscal Policies, a communication tool for Council and citizens was needed to provide the status on pension funding levels. This communication was incorporated in the LTFP Trends section and a one page summary was added to the Annual Budget (see FY 2019-20 Budget Staffing Section page 318).
The LTFP Trend Analysis now includes the Unfunded Pension Liability trend. Unfortunately, as a result of the pandemic, the 2020 LTFP was not presented to City Council. This trend shows the funding ratio of combined plans for the last five years based on the actuarial reports. The Budget's Pension page, located in the Staffing Section, summarizes the pension plans, participants, pension benefit, pension contribution levels, and the funding level.
5-25-22 I B-12
Pension Update
Pension contributions
Generally, the funded status should be less volatile as a result of CalPERS making actuarial changes. Also funding levels should improve as these changes are fully phased into the pension contribution amounts. CalPERS changes included:
• Lowering the anticipated investment rate of return (discount rate) from 7.75% to 7% • Modified actuarial information to recognize an updated life expectancy • Adopting a new strategic asset allocation, and
• Shortening the amortization period
The City of San Clemente makes the actuarial required contributions based on the annual Cal PERS actuarial statements, which are available on the CalPERS website. In addition, additional payments are being made as opportunities present themselves.
The City continues to receive an early payment discount on the Unfunded Accrued Liability (UAL), providing budget savings that are then applied to further reduce the pension liability. The City Council also approved $400,000 of one-time payments for the Lifeguard Safety plan to pay down the liabilities created by the actuarial assumption changes. This can be seen in Exhibit I - Lifeguard Plan Summary or Payment amortization. Additionally, salaries and benefits savings may be utilized to make additional payments to further reduce pension liabilities.
The City has made additional payments in the past, including $4.6 million in FY 2009-10, $225,716 in FY 2013-14, and $500,000 in FY 2015-16. Over the last two years, the City has paid the following additional pension payments to reduce the future liability and improve the funded status of its CalPERS plans.
CalPERS Plan FY 2018-19 FY 2019-20
Miscellaneous $ 40,000 $ 29,157
Safety - Police and Fire 127,000 135,000
Safety - Lifeguard 4,206 435,293
Total Payments $ 171,206 $ 599,450
The CSCERP plan has a lower discount rate and a shorter amortization period for the unfunded liability. No additional payments have currently been made from the City to this plan. However, the CASA is going through a review process by CalPERS to transfer the liability for active CASA employees. In order to facilitate this transfer the CASA board has approved a one-time payment of $550,000 from available CASA fund balance to improve funding levels of the CASA portion of the CSCERP liability.
5-25-22 I B-13
Pension Update
Funded Status:
The following summa ry lists the pension plans, City funds respons ible for the pension payment, market value of the assets, total liability (funded and unfunded), unfunded amounts, and the funded percentage by pension plan. CalPERS plans valuation information is as of June 30, 2019 and the CSCERP plan valuation information is as of July 1, 2019. !.i''•->-7t• ~'l' ' ' ,....-,,:'.,~ ~ " e"-1•;. • ~ ,. < ..,~ '"''c<t••' l•f•~~ t,, ~lJ' "> .!;,•~ '~ .,._( fi;:··. '·>:~-,-. ·/, ~i ~-~s.~~~l"!e ·:·• 111!,~~k,E!~,,YaJ~e p· /•: •,· ,_;, . : ·: u1,1fu_nd!!~ ·; Fu~ding ··;~1::~~t_imat!.d/;.;(· ; • Plan '..\ _,_.. ;;•,1i-:;Furi~{s) .,;<:})~~fa'ssets' >,:·. ·-;~ Liability : · • . . • amount · .Percent ·: FY2021-22Cosfr Lifeguard Safety General $ 5,385,983 $ 6,662,858 $ 1,276,875 80.8% $200,000 6/30/2019 valuation Fund
Safety (inactive) General $ 28,739,890 $ 43,142,603 $ 14,402,713 66.6% $1.4 million 6/30/2019 valuation Fund
M iscellaneous All City $ 51,138,698 $ 66,597,664 $ 15,458,966 76.8% $2.5 million 6/30/2019 valuation Funds
CSCERP All Funds $ 21,064,000 $ 39,189,000 $18,125,000 53.7% $1.7 million 7/1/2019 valuation
Totals $ 106,328,571 $ 155,592,125 $49,263,554 68.3%
The overall funded level of 68% is down slightly from the previous level of 69% due to a new CSCERP valuation and the continued phase in of CalPERS actuarial changes, which have three years remaining. As anticipated, plan assets increased, but the pension liability grew at a higher rate due to the phase in of assumption changes by CalPERS designed to stabilize the CalPERS Fund and reduce volatility. Due to lower FY 2020 investment returns than assumed the funded status should go lower, however cu rrently FY 2021 is on pace to offset the poor investment performance in FY 2020.
The one pension plan outside of CalPERS is the CSCERP pension trust fund . This plan is shown in City of San Clemente financial statement s and was the sole pension for miscellaneous employees before transition to CalPERS for active City employees. The pension trust was administered by Empower (formerly Great West) for over 20 years. In 2017, Empower discontinued its pension administration services, but still maintains the asset management function of the pension assets.
The City then contracted with Milliman for pension administration services, which includes participant communication, benefit calculations, databased maintenance and retiree payment services.
The City's minimum funded status target is a 90% level. This was incorporated as part of the 2019 Pension Update of fiscal policies. The City is continuing to work towards this target and is close to this meeting this fiscal policy requirement on the Lifeguard Plan, which should be achieved within the next two years.
The 90% level was set to prevent overfunding of any one plan. Overfunding of a specific plan would lock up assets within that specific pension plan, since pension assets are not shifted between plans. For example, if pension plans were funded at 100%, 85%, and 70%, a positive year of investment returns or actuarial assumption changes could cause the 100% plan to be overfunded. Assets would be tied up in that one plan, while two plans remain below the minimum target.
5-25-22 I B-14
Pension Update
Pension Plan Analysis:
The following analysis by plan summarizes the condition of each plan and recommended steps to improve the funding percentages of the various plans.
Lifeguard Safety Pension Plan
Plan Summary- This is the smallest plan in terms of market value and liability; and this would be the easiest to reach the funded target as it is funded at 80.8%. This plan, once the FY 2020 additional payments are included in the actuarial valuation, should be near the City's 90% target.
The pension benefits of full time marine safety employees are funded through this plan and City contributions are funded annually by the General Fund based on the annual actuarial reports prepared by CalPERS.
Funding Strategy-_Staff will seek opportunities to avoid any negative amortization of the pension liability from the phase in of annual actuarial bases. In addition, staff will review other opportunities to shorten the amortization period for the liability during the course of the year.
Public Safety Pension Plan
Plan Summary- This plan is an inactive plan with no employees making contributions to the plan.
This plan covers former public safety employees who served the City prior to the City contracting out police and fire services to county agencies (OCSD and OCFA). Annual payments are flat, but the annual amount changes based on actuarial assumption variances, investment earnings, and other actual/expected differences. The unfunded liability is currently amortized over a set time, with the final payment occu rring in FY 2035-36. Annual amounts are paid from the General Fund, since these are General fund only activities.
Currently, the Safety payment is made before July 31st to achieve a payment discount; then based on the budget available, staff requests to make another one-time payment to CalPERS which lowers the anticipated costs in future years. For example, the 12 monthly payments total $1.25 million for the year. Since the entire payment is made by July 31st, a discount is received and the payment made is $1.20 million. Staff utilizes the $50,000 in savings to make an additional onetime payment to lower the liability that reduces the unfunded liability. Staff will continue this annual additional payment in the future.
The OCSD contract has a payment discount included within the contract and OCSD may experience vacancies during the year resulting in budget savings to the City. Pursuant to the 2019 L TFP direction, budget savings are used to pay down the unfunded safety liability achieving future cost savings.
Funding Strategy:
1) Staff will continue to use payment discounts to further reduce the pension liability. 2) As budget savings are achieved under the public safety contracts, a portion of those savings may be used to fund the pension plan, lowering future General Fund costs. 3) If one-time revenues are recognized in the General Fund, a one-time payment on this pension liability may be recommended to Council for approval.
5-25-22 I B-15
Pension Update
Miscellaneous Employee Pension Plan
Plan Summary - The Miscellaneous plan covers most of the active employees of the City. It includes the active employees at the date of conversion to Cal PERS and any new hires since that date. The plan was funded at 90% previously, but with CalPERS actuarial changes, variances, and investment returns the funding percentage has dropped to 79%. This plan has the largest payroll.
Pension payments are funded by all City funds.
Annual contributions are based on a percentage of the payroll for the current actuarial liability and a fixed amount to pay the unfunded liability from prior years that is caused by actuaria l variances or changes. The unfunded liability could be paid by one time payments, but any significant payment would affect all City funds (excluding CASA) and have an impact on Water, Sewer and Golf Funds resources. These funds may not all have resources at the same time. A better way to address the Miscellaneous plan's pension liability is to adjust amortization periods to fu nd the liability over a shorter timeframe.
Funding Strategy - As favorable actuarial bases are added, staff will review ways to improve the long term funding by combining positive actuarial bases against negative actuarial bases and allocating any additional payments to ba ses which have longer amortization periods or whose payments are being "ramped up". This will help the City achieve the funding target of 90% in a shorter period.
City of San Clemente Employee Retirement Plan -
Plan Summary - This plan has the lowest funding percentage. CSCERP participants are CASA employees and former employees that were no longer active with the City at the transition to CalPERS. Thi s plan uses actuarial assumptions that generally mirror Cal PERS and it has absorbed similar lifespan changes that have impacted funding levels. However, unlike CalPERS these changes were not phased-in over time. This plan's valuation has some actuarial assumption differences, including a lower discount rate (6.25%) and an amortization period (20 years level dollar) to pay any unfunded liability. These cause a lower funded level, but the higher level of contributions will improve the funded status faster than the Cal PERS plans. The CSCERP's existing unfunded liability has an average amortization period of 16 years remaining, with new liabilities being amortized over 20 years.
The current funding level is now at 53. 7%, but this plan includes the lower investment returns from FY 2020. As of December 2020, the plan assets total over $24 million. Plan contributions are made by all funds of the City, including CASA funds.
The financial markets have been volatile and there has been an extended period of low interest rates. These factors and the fact the CSCERP Pension Investment Policy (#202-2) was last updated in December 2013 led staff to determine that the investment policy and objectives should be reviewed and updated. Currently, the City utilizes Chandler Asset Management is to assist with the invest ment of City investment pool funds based on a percentage of overseen assets.
Chandler's expertise in working with these types of plans, including the City of Irvine, is beneficial.
5-25-22 I B-16
Pension Update
The City's port ion of t he CSCERP pension is considered inactive (retirees or former employees eligible to receive benefits upon retirement), however CASA has some active employees along with retirees. Since 2015, CASA (and the City) has been seeking to transition these active employees to Cal PERS. This would leave only inactive participants and retirees in this plan, which would lower ongoing administrative and other costs, on a very long term basis, as the administration responsibilities are minimized when payments to retirees are completed. In order for CASA to transition there are two components to eligibility 1) legal eligibility as a "public agency" under Government Code Sections 20056 or 20057 and as an "agency or instrumentality" under the IRS' proposed regulations issued in 2011; and (2) financial eligibility. CASA, as part of the most recent application, was able to move past the first eligibility requirement. However, nothing written will be issued until both components are completed.
One concern of the financial analyst, was CASA's funded status in the plan. In December 2020, the CASA board approved a one-time contribution to the pension plan from its available fund balance to achieve a higher funded status for its portion of its pension liability. This was done to improve CASA's funded status in the pla n. This additional contribution improves the funded status to between 80-90% for CASA's portion of the pension liabil ity.
Additionally, in conjunction with input from the financial analyst, CASA's board is requesting a funding agreement be put in place to maintain a minimum pension funding level of 75%. This agreement would be entered into with the City of Sa n Clemente and Dana Point for the CASA fu nded portion of the pension pla n. This separate agreement or modification to the existing CASA funding agreement wou ld require additional contributions to CASA for payment to the pension plan if the funding level falls below 75%.
Currently, CASA's financial eligibility is still under review and is in process. The funding agreement could improve the likelihood of acceptance, but ultimately will not guarantee acceptance by CalPERS. This funding agreement would need to be brought back to both member City Council's by CASA's staff. Even with this agreement, the Cal PERS financial analyst may want to see the JPA as a more viable entity without as much subsidy from the cities for its ongoing operations.
Funding Strategy:
1) CSCERPs investment policy should be reviewed and modified with assistance from the City's external Investment Advisor, Chandler Asset Management. Chandler can prepare changes to the existing Pension Investment Policy, with those changes brought back to City Council for approval.
2) Maintain current contributions to increase funding status over a shorter life than CalPERS's plan.
3) Request CASA staff to bring back a pension funding agreement or an amendment to the existing JPA funded agreement based on further communication with the CalPERS financial analyst.
5-25-22 I B-17
Pension Update
Other Pension Funding Options :
City fund balance is currently limited, but if significant one-time revenues are available from sale of land or other one time unforeseen revenues, Council could approve a one-time payment to redu ce the unfunded liability, which would save annual operating costs and improve the operating position of the City's General Fund. These payments could also be used to shorten the amortiza tion period of the Safety Plan or the Lifeguard Safety Plan with little effect on the annual operations to achieve the 90% funded status target in a faster timeframe.
Additionally, another option is for the City to start setting aside funds in a pension prefunding tru st. A Section 115 Trust is an IRS approved irrevocable trust created to allow prefunding of pension costs and reduces the financial statement pension liability without funds being placed in one specific pension plan. As the City starts achieving the target 90% funding or if the City Council wants to fund a trust from one-time revenues or use a portion of the Emergency Reserves to lessen future impacts of pension rate changes or economic downturns, a Section 115 Trust could be created. The funding could be provided by the sale of land or reducing the Emergency Reserve percentage from 20% to 18%. This trust could be utilized as a stabilization fund during economic downturns or if there is a change in assumptions by Cal PERS which increases the pension liability used to offset the effect of that change.
Section 115 funds offer flexibility and opportunities for higher returns than the limited City investment pool assets. Funds placed in the trust are no longer limited to low risk, shorter term investments, but rather allows an investment portfolio similar to existing pension funds which include a variety of investments (bonds, mutual funds, and stocks), which have higher risk but over the long term average higher returns. Section 115 Trust assets could be utilized to offer better long term returns than the City's investment pool portfolio but be invested more conservatively than CalPERS assets. The assets could fund any of the City's multiple pension plans, assist in making required actuarial contributions in tight budget years, or bolster funded status for pension funds which experience poor actuarial effects.
Section 115 Trusts are offered by both CalPERS and PARS (private company) and probably a few others, but given that the City is already with CalPERS for the OPEB trust and for retirement services and did analysis comparing other options in the past, CalPERS would be the preferred option based on service options and offerings. The CalPERS Section 115 plan is the California Employee Pension Prefunding Trust (CEPPT).
Recommendations:
1) Direct Staff to continue additional payments from one-time resources and budget savings, as available.
2) Request Chandler Asset Management to update the exiting City of San Clemente Pension Investment Policy (Policy #202-2) for City Council approval. 3) Direct CASA staff to prepare a funding agreement or modify the existing JPA agreement to requ ire additional contributions to the CASA pension plan, if the funded status falls below 75% upon transition to CalPERS.
4) Direct City staff to pursue a California Employee Prefunding Pension Trust (CEPPT) with Cal PERS and consider funding the additional Pension Prefunding Trust by reducing the City of San Clemente General Fund Emergency Reserve from 20% to 18%.
5-25-22 I B-18
EXHIBIT ICITY OF SAN CLEMENTE
LIFEGUARD PLAN - SCHEDULE OF AMORTIZATION BASES
Notes:
The entire actuarial valuation is available on the CalPERS website.
The schedule on the next page reflects the various "base" components of the Lifeguard Plan \Jnfunded Accrued Liability (UAL). It also reflects the payment of the $400,000 authorized in FY 2019-20.
Each "base" is amortized over the life based on CalPERS amortization policies. These different bases can be paid off, combined, or modified upon request, however the life can not generally be extended.
5-25-22 I B-19
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0 City of San Clemente
Lifeguard Plan .. Schedtde of AmortEzation Bi::lses ~ot UAL Ramp Escalat- Amorti Scheduled
Date Up/Down ion -zation Balance Expected Balance Expected Balance Payment for Reason for Base Established 2021-22 Rate Period 6/30/19 ___ Payment 2019~20 6/30/20 _ _Payment 2020-21 6/30/21 2021-22 _ _,_ -·-•··· - NOf':J3NYESTt4EflfI (G!I.If':J)/LOSS 06/30/13 100% ➔ 2.75% 1 $(42,674) $(44,142) $0 _ $0 - $0 $0 INVESTMENT (GAIN)/LOSS 06/30/14 100% ➔ 2.75% 25 $(521,3"79). $(27,675) $(529,239). $(547,4?0) $0 _ $0 NON~INVESTM Ef\JT _( G/\IN )/LOSS ___ 06/30/15 100% ➔ 2.75% 26 _ ${1,155)_ $(46) $(1,188) _ $(62) . $(1,207) _ $(80) .,.. . . . --·· - INVESTMENT_(GAIN)/LOSS 06/30/15 100% ➔ 2.75% 26 $329,950_ $13,1_68 $339,425 $17,753 $344,821 $22,802 NON-INVESTMENT (GAIN)/LOSS 06/30/16 80% 7' 2.75% 27 $(62,596) $(1,691) $(65,229). $(2,563) _ $(67,144)- $(3,512) INVESTMENT (GAI_l'J)/bOSS 06/30/16 80% 7' 2.75% 27 -- $396,400 $10,709 $413,071 _ $427,284 $0 $0 ASSUMPTION CHANGE 06/30/16_ 80% 7' 2.75% 1 $120,670_ $124,822 : A $0 $0 $0 $0 · · ·····• ···- . FRESH START 06/30/16 NoRamR _ 2,75% _ 15 $850,350 $70,974 $836,458 $173,'t26 ·- $715,617 $64,544 INVESTMENT (GAIN)/LOSS 06/30/17 60% 7' 2.75% 28 $(198,784)_ $(2,762) $(209,842) . $(5,578) _ $(218,761 )_ $(8,597) . ··- - ·-··· - ASSUMPTION CHANGE 06/30/17 60% 7' 2.75% 1 $144,620 $149,596 A $0 $0 $0 $0 NON~INVESTMENT_(GAIN)/LOSS 06/30/18 40% 7' 2.75% 1 J24,2n _ $25,043 _ $0 $0 $0 $0 INVESTMENT (GAIN)/LOSS 06/30/18 40% 7' 2.75% 1 $(57,4'+2) $(59,419) -- w $0 $0 $0 -- ASSUMPTION CHANGE 06/30/18 40% 7' 2.75% 1 $195,506 $202,233 _ A $0 _ $0 _ $0_ $0 METHOD CHANGE 06/30/18 40% 7' 2.75% 1 $44,600_ $46,135 $0 $0 $0 $0 NON-INVESTMENT (GAIN)/LOSS 06/30/19 No Ram1:>_ 0.00% 20 $28,103 $0 $30,070 $31,lOS $0 $0 INVESTMENT (GAIN)/LOSS 06/30/19 20% 7' 0.00% 20 $26,486 10 $28,340 $29,315 $0 $0 TOTAL $1,276,875 $506,945 $841,866 $123,230 $773,326 $75,157 This schedule assumes an additional discretionary payment is made in the amount and by the date stated on page 1 of this letter.
A - The $400,000 one-time payment was utilized to pay the Assumption changes for 06/30/2016, 06/30/2017, and 06/30/2018 in Fiscal Year 2019-20.
AGENDA REPORT
SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: October 19, 2021
ATTACHMENT 3
Agenda Item q {\
Approvals:
City Manager ,f 9
Dept. Head --~
Attorney -~-
#d&ffiltl¥ffi~~¥-¥Ji¥14~@\ffyl#MM¥M¥fi!lit4t&JP3fWtNWiMP?Wl!tfiltrt Finance ,{jj_,,.. $ 4@¥AP&MM M#t~
Department:
Prepared By:
Subject:
Finance and Administrative Services
Jacob Rahn, Financial Services Officer
CALPERS PENSION FUNDING STRATEGY
Fiscal Impact: Unknown, dependent on Council action.
Summary: This report provides an analysis of the City's various pension plans and seeks Counci l input related to a staff recommended plan, identified within this report, to address funding of the CalPERS pension liability.
Background: In 2019, the City started addressing pension liabilities by preparing a Long Term Financial Plan (L TFP) paper. The initial 2019 L TFP paper was to update Council and report funding levels would be impacted negatively as CalPERS initiated procedures to improve funding levels and lower volatility based on a lowering of the discount rate and other actuarial assumption modifications. The City started to address these coming impacts proactively through 2019 L TFP approved actions. Starting in FY 2020 additional payments on the liability have been made and other amortization schedule modifications on the liability have been incorporated.
The 2019 LTFP actions implemented a one-time payment, authorized additional payments from budget savings, and allowed amortization schedule modifications to lessen these impacts. These actions started in FY 2020 Budget facilitating additional CalPERS pension payments of $571,206 and continued in FY 2021 with additional CalPERS payments of $599,450. Annually, additional payments are considered each year based on budgeted savings, fund balance, and operating position.
In February 2021 a separate agenda report was prepared and an additional 2021 LTFP Update was provided showing funding status, however the 2019 actions did not really start to be reflected until the August 2021 dated actuarial valuations. These valuations set rates for FY 2023. FY 2020 additional payments were partially offset by the 2020 CalPERS lower investment return of 4.7% and the continued phase in of actuarial assumption changes. However, the FY 2021 CalPERS investment return of
21.3% and additional payments to be included in next years actuarial (August 2022 which sets rates for FY 2024) will impact contributions and funding ratios.
Discussion: The August 2021 actuarial valuations released by CalPERS have a measurement date of June 30, 2020. The CalPERS unfunded accrued liability totals $33.3 million at the June 30, 2020 measurement date. However, the pension liability is dynamic and changes annually based on various criteria, including investment returns, mortality, participant population changes, inflation, and various other criteria/assumptions.
Finance Agenda Report
10-19-21 / 9A-1
5-25-22 I B-21
Agenda Report Pag~.2 .
The· Cal PERS Unfunded Accrued Liability (UAL) consists of the following three plans:
Measurement • Funded
CalPERS Plan Date Ratio Total UAL
Public Safetv (Inactive) Plan • 6/30/2020 • · · 65.7%" $ 14;812;067 Miscellaneous Plan 6/30/2020 75.7% 17,475 574
Lifequard Safety Plan 6/30/2020 85.9% 1,007,950
Total CalPERS UAL $ 33,295,591
This liability is prior to CalPERS published investment returns for FY 2021 of 21.3% that improves plan funding ratios. However, these strong returns triggered a lowering of the future CalPERS discount rate to 6.8%, which will increase the liability. This revised discount rate is not incorporated in the August 2021 valuations.
Each CalPERS plan's information are attachments to this report and provide the existing amortization schedule based on the last actuarial report, and a summary of the funding history since 2015. Summarized information on each plan follows:
Public Safety Inactive Plan {Exhibit I)
The Public Safety Inactive Plan shows a net pension liability of $14,812,067 at the June 30, 2020 measurement date. This liability is being amortized over time with the final payment anticipated in 2036. The plan is comprised of 137 participants in the plan with no active employees. The funded ratio decreased from 66.6% to 65.7%.
Miscellaneous Plan (Exhibit II)
The Miscellaneous Plan shows a net pension liability of $17,475,574 at the June 30, 2020 measurement date. This liability is being amortized over time with the final payment anticipated in 2047. The plan is comprised of 314 participants in the plan . with 178 active employees. The funded ratio decreased from 76.8% to 75.7%.
Lifeguard Safety Plan {Exhibit Ill)
The Miscellaneous Plan shows a net pension liability of $1,007,950 at the June 30, 2020 measurement date. This liability is being· amortized over time with the final payment anticipated in 2040. The plan is comprised of 17 participants in the plan with 4 active employees. The funded ratio increased from 80.8% to 85.9%.
Pension Funding Strategy ("3-2-1 Plan")
City staff, as part ·of the Budget process, was requested by City Council to bring back a funding strategy to improve pension plan funding levels. The "3-2-1 Plan" summarized below is a strategy to address the C~IPERS liability. This plan builds on the FY 2021 positive returns from the CalPERS investments and to achieve the target rate of 90% for the pension funding levels within the CalPERS plans based on Fiscal Policy. The plan consists of the following actions which will rely on Council action and • need to be approved by qity Council:
• $3 million one-time p~ynient to the Public Safety Pl~n (lnactives) • $2 million one-time payment on the Miscellaneous Plan . • $·1 million one-time payment to a Section 115 (Pension Prefunding Trust)i Additionally, a forecasted funding scenario for each plan is provided as Exhibit IV, whieh includes the 21.3% investment return, .additional one-time payments, and 10-19-21 / 9A-i°
5-25-22 I B-22
Agenda Report· Page3
payments based on the 3-2-1 Plan. The scenarios provide for _a 90% funded level in the CalPERS plans in FY 2024, excluding other actuarial adjustments or other assumption changes. •
The $3 n,filion and $2 'million are direct payments 'an two CalPERS peri~ion' piari UAL's. Based on Fiscal Policy, these one-time payments are best funded through a one-time revenue, such as land proceeds or other one-time amounts (including fund balance). A $2:0 million Miscellaneous Plan payment can b~ funded by the Workers Compensation Fund due to an-actuarial review and through $1.7 million available due -to higher revenues an~ lower costs in FY 2021 than originally anticipated. _ A $1 million amount could be placed in a S_ection 115 trust, created specifically for pensions prefunding and be used to make pension related payments. The $1 million is recommended to be funded through a reduction of the Eme_rgency Reserve and these trust assets would essentially act as a type of Emergency Reserve against future increases or as reductions to fl,lture contribution requirements, if needed in a time of economic distress or an emergency situation.
The $3 million one-time contribution could achieve the City's target funding percentage of 90% in FY 2024, subject to other actuarial impacts. The $2 million onetime contribution to the City's Miscellaneous Plan would achieve the City's target funding percentage of 90% in FY 2024, subject to other actuarial impacts. The $1 ' million contribution to the Section 115 Trust will provide a small amount of additional funds and may be used to offset any future actuarial impacts, poor investment return years, or to offset future operating impacts and economic downturns.
Based on the 2021 Pension Update and the options- available,-staff is seeking further - - direction from City Council. Staff has also received a model from CalPERS to assist with presenting the impacts in future years.
Recommended
Action: STAFF RECOMMENDS THAT the City Council:
1) Direct staff to pursue the "3-2-1 Plan" and to bring back a supplemental appropriation request upon the availability 9f one-time funds for a $3 million payment on the Public Safety Inactive Plan.
2) • Approve a supplemental appropriation of $2 million for a one-time Unfunded Accrued Liability Payments funded through a transfer of $300,000 from Workers Compensation Fund and an appropriation of $1.7 million by the General, Water, Sewer, and Golf Fund balances. •
3) Direct staff to pursue the creation of a Section 115 trust and utilize the Emergency Reserve as the funding source for a $1 million Section 115 trust contribution.
Attachments: Exhibit I - Public Safety Inactive Plan
Exhibit II-- Miscellaneous Pl~n
Exhibit Ill -:- Lifeguard Safety Plan
Exhibit IV -Amortization and Funding Forecast Scenario
10-19-21 /..9A-3
5 .. 25-22 I B-23
l
,
1-
1 EXHIBIT I -PUBLIC SAFETY INACTIVE PLAN
PENSION INFORMATION
·CITY OF SAN .CLEMENTE
PUBLIC SAFETY INACTIVE PLAN
CURRENT AMORTIZATION SCH~DULE of PENSION LIABILIT\f
Measurement UAL UAL
Date Balance Payment
6/30/2021 14,141,661 1,359,759
6/30/2022 13,725,032 1,456,~09
6/30/2023 . 13,178,849 1,456,809
6/30/2024 12,594,433 1,456,809
6/30/2025 11,969,108 1,456,809
6/30/2026 11,300,011 1,456,809
6/30/2027 10,584,077 1,456,809
6/30/2028 9,818,027 1,456,809
6/30/2029 8,998,355 1,456,809
6/30/2030 8,121,306 1,456,809
6/30/2031 7,182,862 1,456,809
6/30/2032 6,178,728 1,456,899
6/30/2033 5,104,305 1,456,809
6/30/2034 3,954,672 1,456,809
6/30/2035 2,724,565 1,456,809
6/30/2036 1,408,350 1,456,809
FUNDING HISTORY
Market Value of
Valuation Date Accrued Liability Assets
6/30/2015 41,495,397 31,027,561
6/30/2016 41,982,988 28,873,376
6/30/2017 42,338,119 29,058,555
6/30/2018 43,596,894 29,121,180
6/30/2019 43,142,603 28,739,890
6/30/2020 43,153,762 28,341,695
Unfunded
Liability
10,467,836
13,109,612
13,279,564
14,475,714
14,402,713
14,812,067
Funded Ratio
74.8%
68.8%
68.6%
66.8%
66.6%
65.7%
10-19-21 / 9txibit I
5 25 22 / B 24
CITY OF SAN CLEMENTE
MISCELLANEOUS PLAN
EXHIBIT II - MISCELLANEOUS PIAN
PENSION INFORMATION
CURRENT AMORTIZATION SCHEDULE of PENSION LIABILITY
• Measurement UAL UAL
Date Balance . Payment
6/30/2021 17,671,251 1,070,873
6/30/2022 17,800,520 1,238,393
6/30/2023 17,765,552 • 1,336,426
6/30/2024 17,626,730 1,437,434
6/30/2025 17,373,708 1,496,399'
6/30/2026 17,041,980 1,556,092
6/30/2027 16,625,284 1,584,078
6/30/2028 16,150,471 1,612,834
6/30/2029 15,612,676 1,642,380
6/30/2030 15,006;673 1,672,739
6/30/2031 14,326;847 1,703,932
6/30/2032 13,567,164 1,735,985
6/30/2033 12,721,149 1)768;914
6/30/2034 11,781,851 1,802,758
6/30/2035 10,741,792 1,837,525
6/30/2036 9,592,966 1,583,589
6/30/2037 8,626,396 1,556,'i14
6/30/2038 7,620,586 1,418,620
6/30/2039 6,686,596 1,385;os2
6/30/2040 ·······--·-·-- ---
5,720,883 1,350,832
6/30/2041 4,724,033 1,358,796
6/30/2042 3,649,166 1,187,404
6/30/2043 2,676,347 1,072,926
6/30/2044 1,753,848 846,342
6/30/2045 1,001,154 606,483
6/30/2046 443,884 352,793
6/30/2047 110,024 113,810
FUNDING HISTORY
Measurement Market Value of Unfunded
Date Accrued Liability Assets Liability
6/30/2015 42,943,512 35,851,823 7,091,689
6/30/2016 48,937,262 37,745,281 11,191,981
6/30/2017 54,150,480 42,804,844 11,345,636
6/30/2018 61,603,927 47,206,505 14,397,422
6/30/2019 • 66,597,664 51,138,698 15,458,966
6/30/2020 71,976,359 54,500,785 17,475,574
Funded Ratio
83.5%
77.1%
79.0%
76.6%
76.8%
75.7%
10-19-21 /~ITII
5-25-22 / B-25
. '. EXHIBIT 111.:LlFEGUARD SAFETY PLAN
PENSION INFORMATION
CITY OF SAN CLEMENTE
LIFEGUARD SAFETY PLAN
CURRENT AMORTIZATION SCHEDULE of PENSION LIABILITY
) . Measurement UAL UAL
Date Balance Payment
6/30/2021 930,703 73,813
6/30/2022 919,500 77,841"
6/30/2023 . 903,346 80,423
6/30/2024 883,389 85,999
6/30/2025 856,268 91,629
6/30/2026 821,425 97,314
6/30/2027 778,262 99,429
6/30/2028 729,890 101,605
6/30/2029 675,880 103,839
6/30/2030 615,780 106,136
6/30/2031 549,096 108,494
6/30/2032 475,306 110,919
6/30/2033 393,841 113,408
6/30/2034 304,099 115,971
6/30/2035 205,424 118,597
6/30/2036 . 97,125 24,341
6/30/2037 78,744 24,452
6/30/2038 58,963 24,565
6/30/2039 37,680 24,680
6/30/2040 14,789 15,298
FUNDING HISTORY
Valuation Market Value of Unfunded
Date Accrued.Liability Assets Liability
6/30/2015 5,845,934 4,737,883 1,108,051
6/30/2016 6,074,769 5,053,977 1,020,792
6/30/2017 6,108,534 5,124,709 983,825
6/30/2018 6,438,881 5,245,283 1,1931598
6/30/2019 6,662,858 5,385,983 1,276,875
6/30/2020 7,139,652 6,131,702 1,007,950
Funded Ratio
81.0%
83.2%
83.9%
81.5%
80.8%
85.9%
10-19-21 / ~iit Ill
5-25-22 / B-26
SAFETY INACTIVE PLAN - AMORTIZATION
$16,000,000
$14.COO.OGO
$12,000,000
510,0D0,DOC
$8,(iQ0,000
$6,000,000
$4,000,000
$2,0G0,000
$~
'0 ~ --;.. .,
0- ~ -b <;:'., ~ -.." 0 \ .J ' 7 'rF 0
EXHIBIT IV
-b J "h ...) ,-'.! 0 0, % ,,, ".) -~~ ... ~
,J 7 J"
ti,
~
--original U.C,L
Ba l;ance
~ i_;AL Balance 1nitli
/:\DP
-b .., J
~ q, 'C:
i;;• ~ l? o· o> 'fi
The next page summarizes the original amortization schedule with no additional payment and the Revised Schedule with the additional payment.
10-19-21 / 9A-7
5-25-22 I B-27
-'-
0 <J1 I
I -'-
N (0
<J1 I
N I ..... N
N --- -- (0
)>
OJ I
I ():)
N
(X)
Fiscal Year
Investment Return*
2020 - 2021 2021- 2022
21.3%f 6.8%\I
EXHIBIT IV
Discount Rate:
Inflation Rate:
Payroll Growth Rate: 11,_ _ ___ ==>i
Total Payments
Interest Paid
$
$
Original Schedule
Risk Mitigation:
21-22 ADP Amount
15,497,832 ' $_ 13,116,338 $
4,881,828 21 • 22 Payment Date Interest Paid ,- __ _
I - - ··- • ·---~ - - - ..:. .
Balance Payment
$ 14,812,067 $ 1,650,462 $ 14,812,067 $
s 11,255,838 s 1,359,759 s 3,842,025 $ 11,255,838 $ 1,359,759 $ $ 10,616,004 $ 1,456,809 s s 6,645,498 $ 1,020,456 $ s 9,832,366 $ 1,453,984 $ $ 6,042,811 $ 1,039,704 • $
$ 8,998,361 $ 1,354,960 $ $ 5,379,249 $ 940,680 $
s 8, 209,978 $ 1,255,937 $ s 4,772,901 $ 841,657 $
s 7,470,320 $ 1,156,914 $ $ 4,227,655 $ 742,634 $
$ 6,782,700 $ 1,057,890 $ $ 3,747,668 s 643,610 $
s 6,150,656 $ 1,057,890 $ s 3,337,376 s 643,610 $
$ 5,475,634 $ 1,057,890 s $ 2,899,185 $ 643,610 $
s 4,754,710 $ 1,057,890 s $ 2,431,196 $ 643,610 $
$ 3,984,763 $ 1,057,890 $ s 1,931,384 $ 643,610 $
$ 3,162,460 $ 1,057,890 $ $ 1,397,585 $ 643,610 $
$ 2,284,240 $ 1,057,890 $ $ 827,488 $ 643,610 $
s 1,346,301 $ 1,057,890 $ $ 218,624 $ 225,935 $
$ 344,582 $ 356,105 s $ $ $
$ $ $ s s $
$ $ s $ s $
s $ :; $ s $
$ $ $ $ $ $
$ $ $ $ $ $
s s $ $ s $
s s s $ $ $
s s $ s s $
s $ s $ $ $
$ s $ $ $ $
s $ $ $ $ $
$ $ $ $ $ $
I l
$ $ $ $ $
$ s $ s s
$ s $ $ $
s $ s s $ -
Sl,ow Risk
(2,381,493} Funded Ratio 2020 val:
65,7%
Projected Funded
Ratio End of Year
74.9%
3,800,000 85.4%
(436,353) 87.0%
{414,280) 88.6%
{414,280) 90.0%
/414/280) 91.3%
(414,280) 92.4%
(414,280) 93.3%
(414,280) 94.3%
{414,280) 95.3%
{414,280) 96.3%
(414,280) 97.4%
(414,280) 98.5%
{414,280) 99.6%
(831,955) 100.0%
(356,105} 100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
SAFETY INACTIVE PLAN - FORECAST
EXHIBIT IV
MISCELLANEOUS PLAN - AMORTIZATION
520,000 000
$18,000,000
S:6,000,000
$14,000,000
$12DOO,OOO
$10,000,000
$5,,GOO,OOC
Amortization Balance
....,..O,iginat UAL
B:~tarice
- ul\L Ba!anc;, ,·1iti-i
,b,Df
The next page summarizes the original amortization schedule with no additional payment and the Revised Schedule with the additional payment.
10-19-21 /9A-9
5-25-22 I B-29
0 I
(Jl _. I (0
N N (Jl
I
N
N (0
-- )>
I
OJ _.
I 0
w
0 Fiscal Year
Investment Return *
2020 - 2021 20 21- 2022
2u%!! - - - • - fi.n%\I --·····--··-· ~ -
21-22 ADP Amount
Total Payments
Interest Paid
$
s 21,959,598 $ 2.000 000 j Tota l Payments 10,241,708 21- 22 Payment Date Interest Paid Original Schedule
Ba la nce Payment
$ 17,475,574 $ 993,431 $ 17,475,574
$ 11,897,130 .$ 1,070,873 $ 2,022,119 $ 11,897,130
$ 11,717,890 $ 1,238,393 s s 9,628,150
s 11,356,597 $ 1,357,178 $ s 9,365,300
$ 10,726,282 s 1,262,774 $ $ 8,834,932
$ 10,150,667 s 1,127,024 s $ 8,366,061
$ 9,676,200 s 991,988 $ s 8,005,596
$ 9,309,021 $ 825,850 $ s 7,760,171
s 9,088,567 $ 854,015 s s 7,669,751
$ 8,824,016 $ 882,956 $ $ 7,544,076
s 8,511,566 $ 912,692 $ $ 7,379,946
$ 8,147,140 $ 943,246 $ $ 7,173,925
$ 7,726,357 $ 974,640 $ $ 6,922,319
$ 7,244,517 $ 1,006,897 $ $ 6,621,160
$ 6,696,575 $ 1,040,042 $ $ 6,266,186
s 6,077,121 $ 1,074,098 $ s 5,852,821
$ 5,380,349 $ 823,772 ' $ 5,376,152
$ 4,894,893 s 796,618 $ s 4,892,726
s 4,404,488 s 661,176 $ $ 4,404,488
$ 4,020,707 $ 629,035 $ $ 4,020,707
s 3,644,045 $ 594,225 ', $ 3,644,045
$ 3,277,744 $ 601,918 $ Ill $ 3,277,744
s 2,878,583 s 433,748 s $ 2,878,583
$ 2,626,074 $ 1,049,658 $ $ 2,626,074
s 1,719,888 $ 827,971 $ $ 1,719,888
$ 981,181 $ 593,298 ~ $ 981,181
s 434,764 $ 345,091 $ $ 434,764
$ 107,697 $ 111,298 $ $ 107,697
$ $ $ $
$ s s $
$ $ 5 $
$ $ $ 5
$
s
$
s
s
s
$
$
s
$
s
$
s
$
$
s
s
s
$
$
$
$
$
$
$
$
$
$
~.
$
$
$
EXHIBIT IV
Discount Rate: I 6.80%
Inflation Rate: !=· --~· 2.50?,bj
Payroll Growth Rate: J • w--= 2.7~
Risk Mitigation: Show Rii.k
20,761,740 $ {1,197,861) Funded Ratio 2020 val:
75.7%
Projected Funded
Ratio End of Year
993,,131 85.1%
1,070,873 $ 2,000,000 88.9%
1,005,632 $ (231,761) 89.9%
1,129,439 $ {227,740} 91.1%
1,035,034 $ (227,740) 92.1%
899,284 s (227,740) 93.0%
764,248 $ {227,740) 93.7%
598,110 $ {227,740) 94.2%
626,276 $ (227,740) 94.7%
655,216 $ (227,740) 95.1%
684,952 $ (227,740} 95.6%
715,506 $ (227,740) 96.0%
746,900 $ (227,740} 96.5%
779,157 $ (227,740) 96.9%
812,302 $ (227,740) 97.3%
846,358 $ (227,740) 97.7%
82 1,S32 $ (2,240} 98.0%
794,378 $ (2,240) 98.3%
661,176 $ 98.6%
629,035 $ 98.8%
594,225 $ 99.0%
601.,918 $ 99.2%
433,748 $ 99.3%
1,049,658 $ 99.6%
827,971 $ 99.8%
593,298 $ 99.9%
345,091 $ 100.0%
111,298 $ 100.0%
$ 100.0%
$ 100.0%
$ 100.0%
$ 100.0%
MISCELLANEOUS PLAN - FORECAST
EXHIBIT IV
LIFEGUARD SAFETY PLAN - AMORTIZATION
$1,2:00,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
Amortization Balance
....._Originat UAi.
Balance
-uAt Bala,ice with
ADP
The next page summarizes the original amortization schedule with no additional payments. 10-19-21 / 9A-11
5-25-22 I B-31
0 I
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Fiscal Year
Investment Return*
Total Payments
Interest Paid
219,539
25,306
Original Schedule
Balance Payment
$ 1,007,950 $ 142,886
$ 247,663 $ 73,813
$ 194,233 $ 77,841
$ 133,172 $ 78,450
$ 61,155 $ 62,504
$ 720 $ 744
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ s
$ $
$ $
$ $
$ $
s $
$ $
$ $
$ $
$ $
$ $
$ $
s s
$ $
s $
s s
$ $
$ $
$ $
2020-2021 2021-2022
21.3%r - ~6;~B
Zl-22 ADP Amount _ ._.,._
EXHIBIT IV
Discount Rate: 1l__ 6.80~
Inflation Rate: [ ----=-~ !
Payroll Growth Rate: 2.75%
Risk Mitigation: Show Risk
$ ~ j Total Payme nts S 21.9,539 S
21 - 22 Paym~ Interest Paid $ 25,306
,vings $
$ 1,007,950 $
$ $ 247,663 $ 73,813 $
$ $ 194,233 $ 77,841 $
$ II $ 133,172 s 78,450 $
$ $ 61,155 $ 62,504 $
$ $ 720 $ 7411 s
$ $ $ s
s $ $ s
s $ s $
$ $ s $
$ $ $ $
$ $ $ s
$ $ $ $
$ $ $ $
$ Ill $ s $
$ $ $ $
$ $ $ $ ,·
~ s s s
$ $ $ s
$ $ $ $
$ $ $ $
$ $ $ $
s $ $ $
$ . s $ $
$ $ s $
$ $ $ $
$ $ $ $
5 $ $ $
$ s $ $
$ $ $ s
$ $ $ $
$ $ $ $
Funded Ratio 2020 val:
85.9%
Projected Funded
Ratio End of Year
96.7%
97.6%
98.4%
99.3%
100.0%
100.0%
100.0%
100.0"/4
100.0%
100.0%
100.0"/4
100.0"/4
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0"/4
100.0%
100.0"/4
100.0%
100.0%
100.0%
100,0%
100.0%
100.0%
100.0%
100.0%
100.0%
LIFEGUARD PLAN - FORECAST
CITY OF SAN CLEMENTE
PUBLIC SAFETY INACTIVE PLAN
AMORTIZATION SCHEDULE
Date Balance
6/30/2021 14,141,661
6/30/2022 13,725,032
6/30/2023 13,178,849
6/30/2024 12,594,433
6/30/2025 11,969,108
6/30/2026 11,300,011
6/30/2027 10,584,077
6/30/2028 9,818,027
6/30/2029 8,998,355
6/30/2030 8,121,306
6/30/2031 7,182,862
6/30/2032 6,178,728
6/30/2033 5,104,305
6/30/2034 3,954,672
6/30/2035 2,724,565
·6/30/2036 1,408,350
6/30/2037
6/30/2038
6/30/2039-
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
• FUNDING HISTORY
Valuation
Date Accrued Liability
6/30/2015 41,495,397
6/30/2016 41,982,988
6/30/2017 42,338,119
6/30/2018 43,596,894
6/30/2019 43,142,603
6/30/2020 43,153,762
EXHIBIT I
Payment
1,359,759
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
1,456,809
Market Value of
Assets
31,027,561
28,873,376
29,058,555
29,121,180
28,739,890
28,341,695
Unfunded
Liability
10,467,836
13,109,612
13,279,564
14,475,714
14,402,713
14,812,067
Funded Ratio
74.8%
68.8%
68.6%
66.8%
66.6%
65.7%
-------- ·- ··---
10-19-21 / 9A-13
6 26 22 / B 33
1 EXHIBIT II 1 r·'
CITY OF SAN CLEMENTE
MISCELLANEOUS PLAN
AMORTIZATION SCHEDULE
• Date Balance Payment
6/"?,0/2021 17,671,251 1,070,873
6/30/2022 17,800,520 1,238,39~ ; 1 ;
6/30/2023 17,765,552 1,336,426
6/30/2024 17,626,7~0 1,437,434
6/30/2025 17,373,.708 1,496,399
6/30/2026 17,041,980 1,556,092
6/30/2027 16,625,284 1,584,078
6/30/2028 16,150,471 1,612,834
6/30/2029 15,612,676 1,642,380
6/30/2030 15,006,673 1,672,739
6/30/2031 14,326,847 1,703,932
6/30/2032 13,567,164 1,735,985
6/30/2033 12,721,149 1,768,914
6/30/2034 11,781,851 1,802,758
6/30/2035 10,741,792 1,837,525
6/30/2036 9,592,966 1,583,589
6/30/2037 8,626,396 1,556,114
6/30/2938 7,620,586 1,418,620
6/30/2039 --5,-686;596 - ---1~380,082- --- -
6/30/2040 5,720,883 1,350,832
6/30/2041 4,724,033 1,358,796
6/30/2042 3,649,166 1,187,404
6/30/2043 2,676,347 1,072,926
6/30/2044 1,753,848 846,342
6/30/2045 1,001,154 606,483
6/30/2046 443,884 352,793
6/30/2047 110,024 113,810
FUNDING HISTORY
Measurement Market Value of Unfunded
Date Accrue_d Liability Assets Liability . ~ . Funded ~atio 6/30/2015 42,943,512 35,851,823 7,091,689 ~33;5%
6/30/2016 ,48,937,262 37,745,281 11,191,981 77.1%
6/30/2017 54,150,480 42,804,844 11,345,636 79;0%
• 6/30/2018 61,603,927 47,206,505 14,397,422 '76:6%
6/30/2019 66,597,664 ·'sl,138,698 15,458,966 76.8%
6/30/2020 71,976,359 54,500,785 17,475,574 75.7%
10-19-21 / 9A-14
5 25 22 / B 34
CITY OF SAN CLEMENTE
LIFEGUARD SAFETY PLAN
AMORTIZATION SCHEDULE
Date Balance
6/30/2021 930,703
6/30/2022 919,500
6/30/2023 903,346
6/30/2024 883,389
6/30/2025 856,268
6/30/2026 821,425
6/30/2027 778;262 ·
6/30/2028 729,890
6/30/2029 675,880
6/30/2030 615,780
6/30/2031 549,096
6/30/2032 475,306
6/30/2033 393,841
6/30/2034 304,099
6/30/2035 205,424
6/30/2036 97,125
6/30/2037 78,744
6/30/'t.038 58,963
6/30/2039 j1,6S0
6/30/2040 14,789
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
FUNDING HISTORY
Valuation
Date Accrued Liability
6/30/2015 5,845,934
6/30/2016 6,074,769
6/30/2017 6,108,534
6/30/2018 6,438,881
6/30/2019 6,662,858
6/30/2020 7,139,652
EXHIBIT Ill
Payment
73,813
77,841
80,423
85,999
91,629
97,314
99,429
101,605
103,839
106,136
108,494
110,919
113,408
115,971
118,597
24,341
24,452
24,565
• - ••• 24,680
15,298
Market Value of Unfunded
Assets Liability Funded Ratio
4,737,883 1,108,051 81.0%
5,053,977. 1,02(:),792 83.2%
5,124,709 983,825 83.9%
5,245,283 1,193,598 81.5%
5,385,983 1,276,875 80.8%
6,131,702. 1,007,950 85.9%
10-19-21 / 9A-15
5 25 22 / B 35
EXHIBIT II/
SAFETY INACTIVE PLAN - AMORTIZATION
$1 6, 00C,OOC
$14,000. OGO
$12,000,00C
$10,000,00C
$8,000.000
$6 000.0CG
$4,000,000
S2,000/100
Arnortization Balance
..a...o r igi na I U/>. L
Balance
The next page summarizes the original amortization schedule with no additional payment and the Revised Schedule with the additional payment.
10-19-21 /9A-16
5-25-22 I B-36
....
0 I
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CJ1 N
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N
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w
---.J
Fiscal Year
Investment Return*
2020 - 2021
21.3%
2021- 2022
6,8%
roor__ ----------- ~J,j. /) 21-zy;;;;;;;;;;;;;-,~ 1. •
EXHIBIT IV
Discount Rate: ~ 6.80% r=--- -=,~'
Inflation Rate: I 2.50%
Payroll Growth Rate: r ~ _ - .-2.7 5%
Risk Mitigation: Show Risk
13,116,338 $ (2,381,493) Total Payments
Interest Paid
$
$
15,497,832 • $ .. 3,800.000} otal Payments
4,881,828 ~ ~ te Interest Paid -,---
,---10/3i/ 2021_ -- • !Total Savings
J ~nn334
~ J?iWt_:;:u,;;;w;:a.www1 Original Schedule
Balance Payment
$ 14,812,067 $ 1,650,462
$ 11,255,838 $ 1,359,759
$ 10,616,004 $ 1,456,809
$ 9,832,366 $ 1,453,984
$ 8,998,361 $ 1,354,960
$ 8,209,978 s 1,255,937
$ 7,470,320 $ 1,156,914
$ 6,782,700 $ 1,057,890
$ 6,150,656 $ 1,057,890
$ 5,475,634 $ 1,057,890
$ 4,754,710 $ 1,057,890
$ 3,984,763 $ 1,057,890
$ 3,162,460 $ 1,057,890
$ 2,284,240 $ 1,057,890
$ 1,346,301 $ 1,057,890
$ 344,582 $ 356,105
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ s
$ $
$ $
$ $
" $
$
$
s
$
s
$
s
$
$
$
$
$
s
$
$
s
$
$
s
$
s
$
$
~ ,,",.~ ~.. ., .... . r:1,- ·.' ",."' ,~ (Va lued Mid -year) $
3,842,025 I s
$
$
$
$
$
$
$
$
s
s
$
$
$
$
$
s
$
$
$
$
$
$
$
$
$
$
s
s
$
$
14,812,067
11,255,838
6,645,498
6,042,811
5,379,249
4,772,901
4,227,655
3,747,668
3,337,376
2,899,185
2,431,196
1,931,384
1,397,585
827,488
218,624
$
$
$
$
$
$
$
$
$
s
$
$
$
s
$
$
$
$
$
$
' $
$
$
$
$
$
$
$
$
$
$
$
1,650,462
1,359,759 $ 3,800,000
1,020,456 $ (436,353)
1,039,704 $ (414,280)
940,680 $ (414,280)
841,657 $ (414,280)
742,634 $ (414,280)
643,610 $ (414,280)
643,610 $ {414,280)
643,610 $ (414,280}
643,610 $ (414,280}
643,610 $ (414,280)
643,610 $ (414,280)
643,610 $ {414,280)
225,935 $ (831,955}
$ {356,105}
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Funded Ratio 2020 val:
65.7%
Projected Funded
Ratio End of Year
74.9%
85.4%
87.0%
88.6%
90.0%
91.3%
92.4%
93.3%
94.3%
95.3%
96.3%
97,4%
98.5%
99.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100,0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
EXHIBIT 1\/
MISCELLANEOUS PLAN -AMORTIZATION
520,0 CO .OCO
$16,000,000
$14,000.000
$12,.000,000
510,000.00C
$-3,GC0,CGC
$6 ,GOO,CGG
$2,000,0CC
sAmortization Balanc·e
.....,Cr1 ginal UAL
Baiance
.._Ui!I.L Balanc,,, with
ADP
The next page summarizes the original amortization schedule with no additional payment and the Revised Schedule with the additional payment
10-19-21 / 9A-18
5-25-22 I B-38
EXHIBIT IV
Fiscal Year 2020 - 2021 2021- 2022 Discount Rate:
Investment Return* 21.3%11 ... -·· . ~· _- __ 7 :ili] Inflation Rate:
Payroll Growth Rate:
.. Risk Mitigation: l Show Risk
t4 J."L L H Llr #\IJJU\fl9'
Total Payments $ 21,959,598 J $ ·-- ·-- 2,00~ 0_!JO ~Total Payments 20,761,740 $ (1,197,861) Funded Ratio 2020 val: Interest Paid $ 10,241,708 21- 22 Pa ment Date Interest Paid 9,043,850 75.7% 1,197,858
riginal Schedule '~ ~; ,,.a]~~~~,~,;1 Projected Funded
Balance Payment Paymen ti Ratio End of Year
$ 17,475,574 $ 993,431 $ 17,475,574 $ 993,431 85.1%
$ 11,897,130 $ 1,070,873 $ 2,022,119 s 11,897,130 $ 1,070,873 $ 2,000,000 88.9% $ 11,717,890 $ 1,238,393 ~ $ 9,628,150 $ 1,005,632 $ {232,761} 89.9% s 11,356,597 $ 1,357,178 $ $ 9,365,300 $ 1,129,439 $ (227,740) 91.1% $ 10,726,282 $ 1,262,774 $ s 8,834,932 $ 1,035,034 $ (227,740) 92.1% $ 10,150,667 $ 1,127,024 ,· $ 8,366,061 $ 899,284 $ (227,740) 93.0% ~ $ 9,676,200 s 991,988 $ $ 8,005,596 $ 764,248 $ (227,740) 93.7% $ 9,309,021 $ 825,850 $ $ 7,760,171 $ 598,110 $ (227,740) 94.2% $ 9,088,567 $ 854,015 $ $ 7,669,751 $ 626,276 $ {227,740) 94.7% $ 8,824,016 $ 882,956 ~; $ 7,544,076 $ 655,216 $ (227,740} 95.1% $ 8,511,566 $ 912,692 $ $ 7,379,946 $ 684,952 $ (227,740) 95.6% $ 8,147,140 $ 943,246 $ $ 7,173,925 $ 715,506 $ (227,740) 96.0% $ 7,726,357 $ 974,640 s $ 6,922,319 $ 746,900 $ (227,740} 96.5% s 7,244,517 s 1,006,897 $ $ 6,621,160 $ 779,157 $ (227,740} 96.9% $ 6,696,575 $ 1,040,042 s $ 6,266,186 $ 812,302 $ (227,740} 97.3% $ 6,077,121 $ 1,074,098 ,.
, $ 5,852,821 s 846,358 $ (227,740) 97.7%
$ 5,380,349 $ 823,772 $ $ 5,376,152 $ 821,532 $ (2,240) 98.0% $ 4,894,893 $ 796,618 $ $ 4,892,726 $ 794,378 $ (2,240) 98.3% s 4,404,488 s 661,176 $ $ 4,404,488 $ 661,176 $ 98.6%
$ 4,020,707 $ 629,035 $ $ 4,020,707 $ 629,035 $ 98.8%
$ 3,644,045 $ 594,225 $ $ 3,644,045 $ 594,225 $ 99.0%
$ 3,277,744 $ 601,918 s $ 3,277,744 $ 601,918 $ 99.2%
$ 2,878,583 $ 433,748 $ $ 2,878,583 $ 433,748 $ 99.3%
$ 2,626,074 $ 1,049,658 $ $ 2,626,074 $ 1,049,658 $ 99.6% $ 1,719,888 s 827,971 s s 1,719,888 $ 827,971 $ 99.8%
s 981,181 s 593,298 $ $ 981,181 $ 593,298 $ 99.9%
s 434,764 $ 345,091 $ $ 434,764 $ 345,091 $ 100.0%
.... s 107,697 s 111,298 $ $ 107,697 $ 111,298 $ 100.0% 0 s $ $ $ $ $ 100.0% I s s $ $ $ $ 100.0% (J1 ->.
I c.o $ $ $ $ $ $ 100.0% N I
(J1 N s $ $ $ $ $ 100.0% I
N
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<D
EXHIBIT IV
LIFEGUARD SAFETY PLAN -AMORTIZATION
Amortization Balance
$1,,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
'% 'i:> -b ~ 'b -& ~~ ~ 'P., "a,, .. ¾}, - i,Jb_ -?- ' .,,,:
~ '"" .. ~. --b ~-·
'i;i
.~
...,_Original UAL
Balance
-uAl Balance with
ADP
-ti~ ~
1i'
"b
.. %, ~ '{;, ·-
The next page summarizes the original amortization schedule with no additional payments. 10-19-21 / 9A-20
5-25-22 I B-40
.....>.
0 01 I
.....>.
I (!)
N I
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.....
Fiscal Year
Investment Return*
2020 - 2021 2021- 2022
21.3%[1 .. _: · ~
21-22 ADP Amount
219,539 [ $ $
EXHIBIT IV
Discount Rate: 6.80%
Inflation Rate:
Payroll Growth Rate: t,'==-===='
c== . 2.so%J - ~-- 2.75%
Risi< Mitigation: Show Risi,
$ Total Payments
Interest Paid
$
$ 25,306 ,!~ ,"-===ccr-=;.;_.;._;.;..;.;._ ;;_-----":--------...;....;.-, Original Schedule
Balance Payment
$ 1,007,950 $ 142,886 $ 1,007,950 s 142,886
$ 247,663 $ 73,813 $ $ 247,663 s 73,813 $
s 194,233 $ 77,841 $ $ 194,233 $ 77,841 $
$ 133,172 $ 78,450 $ $ 133,172 $ 78,450 $
s 61,155 $ 62,504 $ $ 61,155 $ 62,504 $
$ 720 $ 744 s $ 720 $ 744 $
$ $ s $ s $
$ $ s $ $ $
$ $ $ $ s $
$ $ $ $ $ $
s $ s $ $ $
$ $ $ s $ $
s $ $ $ s $
$ $ s $ $ $
$ $ $ $ $ $
$ $ $ $ $ $
$ $ s $ $ $
$ $ $ $ $ $
$ $ s $ $ $
$ $ $ $ $ $
$ $ s $ $ $
$ $ $ $ $ $
$ $ $ $ $ $
s $ $ $ $ $
$ $ s $ $ $
s $ s $ s $
$ s $ $ $ $
$ $ $ $ $ $
$ $ $ $ $ $
$ $ s $ $ $
$ s s $ $ $
$ s $ $ $ s
Funded Ratio 2020 val:
85.9%
Projected Funded
Ratio End of Year
96.7%
97.6%
98.4%
99.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Annual Budget
Fiscal Year 2022-23
Gene James
Mayor
Chris Duncan
Mayor Pro Tem
Kathy Ward
Council Member
Laura Ferguson
Council Member
Steve Knoblock
Council Member
http://san-clemente.org/about-us/city-finances/city-budget 3 4
Table of Contents
Cover .........................................................................................................................................................................................1 Introductory Section
Annual Budget Title Page ......................................................................................................................................................3 Table of Contents ..................................................................................................................................................................5 Council Photo ........................................................................................................................................................................9 City Organization Chart .......................................................................................................................................................11 Financial Accomplishments .................................................................................................................................................12 City Manager Transmittal Letter .........................................................................................................................................13 Fiscal Year 2021-22 Accomplishments by Department .......................................................................................................18 San Clemente at a Glance ....................................................................................................................................................22 Reader’s Guide to the Budget .............................................................................................................................................24 Budget Overview
Budget Summary .................................................................................................................................................................29 Financial Overview ..............................................................................................................................................................33 Budget Process ....................................................................................................................................................................49 Accounting Systems & Controls...........................................................................................................................................51 All Funds Summary
All Funds Budget Overview..................................................................................................................................................55 All Funds Budget Summary .................................................................................................................................................57 All Funds Summary – Revenues by Category .......................................................................................................................58 All Funds Summary – Expenditures by Category .................................................................................................................59 All Funds Summary – Budget Comparisons by Fund - Revenues .........................................................................................60 All Funds Summary – Budget Comparisons by Fund - Expenditures ...................................................................................61 All Funds Revenue Summary ...............................................................................................................................................63 All Funds Revenues by Line Item .........................................................................................................................................64 All Funds Revenue Assumptions ..........................................................................................................................................69 All Programs Expenditure Summary ....................................................................................................................................72 All Funds Expenditures Summary ........................................................................................................................................77 All Funds Expenditures by Line Item ...................................................................................................................................78 General Fund Revenues & Expenditures
General Fund Summary .......................................................................................................................................................85 General Fund Revenues by Category ..................................................................................................................................86 General Fund Expenditures by Department ........................................................................................................................87 General Fund Expenditures by Category .............................................................................................................................88 General Fund - Fund Balance ..............................................................................................................................................89 General Fund Revenue Overview ........................................................................................................................................90 General Fund Revenue Summary ........................................................................................................................................91 General Fund Revenues by Line Item ..................................................................................................................................92 General Fund Revenue Assumptions ...................................................................................................................................96 General Fund Expenditure Overview ................................................................................................................................100 General Fund Expenditure Summary ................................................................................................................................101 General Fund Expenditures by Line Item ..........................................................................................................................102 General Fund Expenditures by Department ......................................................................................................................106 General Government
General Government Overview ........................................................................................................................................ 109 General Government Department Summary ................................................................................................................... 110 Legislative Division Summary .......................................................................................................................................... 111 City Manager Department Summary ............................................................................................................................... 112 City General Department Summary ................................................................................................................................. 113 City Clerk Department Summary ...................................................................................................................................... 114 Economic Development Department Summary ................................................................................................................115 5 Table of Contents
Finance & Administrative Services
Finance & Administrative Services Overview ................................................................................................................... 117 Finance & Administrative Services Department Summary ............................................................................................... 118 Finance & Administrative Services Administration Summary ......................................................................................... 119 Finance Division Summary ............................................................................................................................................... 120 Human Resources Division Summary ............................................................................................................................... 121 Public Safety
Public Safety Overview ..................................................................................................................................................... 123 Public Safety Department Summary ................................................................................................................................ 124 Police Services Summary ................................................................................................................................................. 125 Fire Services Summary ..................................................................................................................................................... 126 Marine Safety Division Summary ..................................................................................................................................... 127 Community Development
Community Development Overview ................................................................................................................................ 129 Community Development Department Summary ............................................................................................................ 130 Administration Division Summary ................................................................................................................................... 131 Building Division Summary ............................................................................................................................................... 132 Planning Division Summary .............................................................................................................................................. 133 Code Compliance Division Summary ................................................................................................................................ 134 Public Works
Public Works Overview..................................................................................................................................................... 135 Public Works Department Summary ................................................................................................................................ 136 Administration Division Summary ....................................................................................................................................137 Engineering Division Summary ......................................................................................................................................... 138 Facilities & Street Maintenance Services Division Summary ............................................................................................ 139 Beaches Parks Maintenance Division Summary ............................................................................................................... 140 Beaches, Parks & Recreation
Beaches, Parks & Recreation Overview ............................................................................................................................ 141 Beaches, Parks & Recreation Department Summary ....................................................................................................... 142 Administration Division Summary ................................................................................................................................... 143 Recreation Division Summary .......................................................................................................................................... 144 Special Revenue Funds
Special Revenue Funds Overview ..................................................................................................................................... 145 Street Improvement Fund ............................................................................................................................................... 146 Gas Tax Fund .................................................................................................................................................................... 148 Miscellaneous Grants Fund .............................................................................................................................................. 150 Disaster Relief Fund .......................................................................................................................................................... 151 Air Quality Improvement Fund ......................................................................................................................................... 153 Local Cable Infrastructure Fund ....................................................................................................................................... 154 Police Grants Fund ........................................................................................................................................................... 155 Local Transit Program Fund .............................................................................................................................................. 156 Building Homes & Jobs Act (SB2) Fund ............................................................................................................................. 157 Capital Project Funds
Capital Project Funds Overview ........................................................................................................................................ 159 Parks Acquisition & Development Fund .......................................................................................................................... 160 Local Drainage Facilities Fund ...........................................................................................................................................161 RCFPP Fund ...................................................................................................................................................................... 162 Public Facilities Construction Fee Fund ............................................................................................................................ 163 Developers Improvement Fund ........................................................................................................................................ 165 In-Lieu Housing Fund ........................................................................................................................................................ 166 6 Table of Contents
Reserve Fund .................................................................................................................................................................... 167 Low/Moderate Income Housing Fund .............................................................................................................................. 169 Enterprise Funds
Enterprise Funds Overview ...............................................................................................................................................171 Enterprise Funds Operating Summary ..............................................................................................................................173 Water Operating Division Summary ..................................................................................................................................174 Sewer Operating Division Summary ..................................................................................................................................175 Storm Drain Operating Division Summary .........................................................................................................................176 Clean Ocean Operating Division Summary ........................................................................................................................177 Solid Waste Operating Division Summary .........................................................................................................................178 Golf Operating Division Summary .....................................................................................................................................179 Water Depreciation Reserve Fund ....................................................................................................................................180 Water Acreage Fee Reserve Fund .....................................................................................................................................182 Water Other Agency Depreciation Reserve Fund ..............................................................................................................183 Sewer Depreciation Reserve Fund ....................................................................................................................................184 Sewer Connection Fee Reserve Fund ................................................................................................................................186 Sewer Other Agency Depreciation Reserve Fund ..............................................................................................................187 Storm Drain Utility Depreciation Reserve Fund.................................................................................................................188 Golf Depreciation Reserve Fund ........................................................................................................................................190 Golf Capital Improvement Reserve Fund ..........................................................................................................................191 Internal Service Funds
Internal Service Funds Overview .......................................................................................................................................193 Central Services Fund ........................................................................................................................................................194 Information Technology Fund ...........................................................................................................................................195 Fleet Services Fund ............................................................................................................................................................196 Fleet Replacement Reserve Fund ......................................................................................................................................197 Medical Insurance Fund ....................................................................................................................................................199 Workers’ Compensation Fund ...........................................................................................................................................200 General Liability Self-Insurance Fund ................................................................................................................................201 Capital Improvement Program (CIP)
CIP Overview and Summary ..............................................................................................................................................203 Map of Major CIP Projects .................................................................................................................................................206 New CIP Graphs .................................................................................................................................................................207 New CIP – Summary by Category ......................................................................................................................................209 Maintenance & Other Projects – Summary by Category ...................................................................................................211 New CIP – Summary by Fund ............................................................................................................................................213 Maintenance & Other Projects – Summary by Fund .........................................................................................................216 CIP Revenue Summary ......................................................................................................................................................218 Maintenance & Other Revenue Summary.........................................................................................................................219 Drainage Master Plan Summary ........................................................................................................................................220 Drainage – Project Sheets .................................................................................................................................................221 Parks & Median Master Plan Summary .............................................................................................................................225 Parks & Median – Project Sheets ......................................................................................................................................226 Wastewater (Sewer) Master Plan Summary .....................................................................................................................239 Sewer – Project Sheets ......................................................................................................................................................240 Street Master Plan Summary ............................................................................................................................................251 Street – Projects Sheets ....................................................................................................................................................252 Water Master Plan Summary ............................................................................................................................................273 Water – Projects Sheets ....................................................................................................................................................275 City Facilities Master Plan Summary .................................................................................................................................289 Facilities & Other Improvements – Project Sheets ............................................................................................................290 CIP Carry Forward Projects ................................................................................................................................................296 7 Table of Contents
Fiscal Policy & Debt Summary
Fiscal Policy Statement ......................................................................................................................................................299 Appropriations Limit ..........................................................................................................................................................307 Debt Summary ...................................................................................................................................................................309 Performance Measures
Performance Measures - Summary ...................................................................................................................................313 General Government .........................................................................................................................................................314 Finance & Administrative Services ....................................................................................................................................315 Public Safety ......................................................................................................................................................................318 Community Development .................................................................................................................................................320 Public Works ......................................................................................................................................................................323 Utilities ..............................................................................................................................................................................325 Beaches, Parks & Recreation .............................................................................................................................................327 Staffing
Staffing ..............................................................................................................................................................................329 Staffing Changes ................................................................................................................................................................331 Staffing Chart .....................................................................................................................................................................334 Contract Staffing Chart ......................................................................................................................................................340 Pension Summary ..............................................................................................................................................................341 Glossary and Index
List of Acronyms ................................................................................................................................................................343 Glossary .............................................................................................................................................................................345 Index ..................................................................................................................................................................................358 This entire document can also be downloaded from the City’s website: http://san-clemente.org. 8 2022 San Clemente City Council
Mayor Gene James, Mayor Pro Tem Chris Duncan
Council Members Laura Ferguson, Steve Knoblock, and Kathy Ward 9 10
San Clemente Organization Chart
Beaches, Parks
& Recreation
Samantha
Wylie
Public Works
Kiel Koger
City Attorney
Scott Smith
Assistant City Attorney
Matthew “Mal”
Richardson
Citizens of
San Clemente
Storm
Drain
City Clerk
(Elected)
Joanne
Baade
Code
Compliance
City Council
Mayor
Gene James
Mayor Pro Tem
Chris Duncan
Council Members
Laura Ferguson
Steve Knoblock
Kathy Ward
Golf
Water
Shading indicates contracted services
Police Services
OCSD
Fire Services
OCFA
City Treasurer
(Elected)
Mark
Taylor
Boards &
Commissions
Marine
Safety
Human
Resources
Recreation
Information
Technology
Finance &
Administrative
Services
Vacant
City Clerk
Joanne Baade
Utilities
Dave
Rebensdorf
Sewer Maintenance
Services
Public
Safety
Community
Development
Cecilia
Gallardo-Daly
Capital
Improvement
Projects
Building Finance
Planning
Fleet
Engineering
Environmental
Programs
City Manager
Erik Sund
11 Financial Accomplishments
The Government Finance Officers Association of
the United States and Canada (GFOA) presented a
Distinguished Budget Presentation Award to the
City of San Clemente, California for its annual
budget for the fiscal year beginning July 1, 2020.
In order to receive this award, a governmental
unit must publish a budget document that meets
program criteria as a policy document, as a
financial plan, as an operations guide, and as a
communications device.
The award is valid for a period of one year only.
We believe our current budget continues to
conform to the program requirements, and we
are submitting it to GFOA to determine its
eligibility for another award.
AAA---An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.
Standard and Poor’s reaffirmed the City’s long-term financial “AAA” rating and stable outlook in August 2015.
SAN CLEMENTE (AAA)
“San Clemente is the southernmost city
in Orange County, located on the
Pacific Ocean. Although a primarily
wealthy residential community, the city
also has some office and retail areas. In
our view, financially, the city has
performed very well in recent years
and has maintained an unreserved fund
balance of more than 40% of
expenditures since 2001. We
understand that the city does not have
any plans to issue debt in the next
couple years.”
12 City of San Clemente
Erik Sund, City Manager
910 Calle Negocio, San Clemente CA 92673
Honorable Mayor and Councilmembers:
I am pleased to present a balanced Operating Budget and Capital Improvement Program for the City of San Clemente for fiscal year FY 2022-23.
City Management focused on maintaining quality public services and capital projects while minimizing expenses where possible. As a result, the operating position is positive and available to address cost increases; the fund balance and reserves are available to offset economic downturn while still being responsive to our residents’ needs and providing the best service possible. The City continues to operate with less staff and remains committed to delivering essential City services. I would like to thank City Council and City staff for their commitment to the City and its citizens.
Economic Outlook
The two previous budgets were prepared in the unpredictable environment of the global Covid19 pandemic. With Council’s support, we utilized American Rescue Plan funds to fund Human Resources, Public Works and Recreation positions to address service needs and improve staffing levels. It is incredibly difficult to recruit in the current environment. Although American Rescue Plan funds improved staffing levels, the City will have to balance City service levels with the remaining vacancies. Additionally, we used funds to move one-time capital projects forward and to improve post-pandemic related operations.
After a year with fewer restrictions and higher activity levels, the economy expanded during FY 2021-22, and the City has seen increases in its property and sales tax receipts. This economic growth conversely has led to increased housing prices and strong demand for retail and dining services. These areas of economic growth bode well for the City as property and sales taxes are major revenue categories, improving the outlook for the City of San Clemente. This growth has also led to an increase in inflation which, based on local forecasts and Federal Reserve rate increases, are anticipated to level out over the next year. Although concerns still exist, such as the energy prices and inflation, the overall economic outlook for the City is positive.
Strategic Priorities
As we embark into the FY 2022-23 budget, the City Council developed five strategic priorities that provide direction to City staff. The priorities set the goals of the City Council and City staff build the actions to reach those goals. The strategic priority and operational actions to are included in the table that follows this letter.
City staff considered these priorities and worked to include them into the budget with a balanced approach. The budget includes funding for public safety, supported through use of American Rescue Plan funds, an additional $2 million pay down of the unfunded pension liability, funding levels to meet the operational needs, a Classification and Compensation study, and continued implementation of technology improvements.
13 Long Term Financial Plan (LTFP)
The City utilizes an annual Long Term Financial Plan (LTFP) process, which precedes the budget, to review its current financial position and to make recommendations to direct the City in a positive financial direction. This year, the LTFP process occurred in early April. The City’s LTFP presented actions to fund reserves, utilize American Rescue Plan funds, and update City Council on pension funding. Additionally, based on City Council direction, staff continue to allocate additional one-time funds from excess revenues, salary savings and other sources to pay down the City’s unfunded pension liability.
The Budget
The City and its citizens are anticipating higher activity levels in the upcoming budget year. City staff conducted a comprehensive review of all departments and programs anticipating higher service levels as part of the Budget process. This analysis included review of staffing levels, specific costs and contracts, and other operational considerations. City Management prioritizes maintaining a positive operating position to absorb anticipated cost increases and effects of any inflationary impacts.
The City realizes potential future cost increases may occur and will maintain a conservative financial position. Upcoming cost considerations include inflation, the OCSD union negotiations, the City-wide Class and Compensation study, and other general service impacts. As part of the development of the FY 2022-23 budget, staff sought opportunities to lower cost impacts in both the current and future periods. These actions are summarized in following paragraphs by category below:
x Staffing: City Management continues to assess staffing vacancies to determine priority in the recruitment process based on current City needs. The Staffing section of the budget document contains additional FTE information.
x Compensation and Benefits: The City is entering the second year of its three-year MOU agreement with the San Clemente City Employees Association (SCCEA). A small Cost of Living percentage is included along with a one-time non-pensionable payment from available American Rescue Plan funds. Additionally, a Class and Compensation study is budgeted in FY 2022-23, which will review positions and compare to other agencies as agreed to in the MOU. x Pension: Pension actuarial rates remain mostly flat with FY 2022-23 rates based on the June 2020 actuarial reports. The payments are anticipated to decrease over time as the City continues to pay down past unfunded liabilities and 2021’s positive investment returns are recognized. FY 2022-23 includes $2 million as a one-time City pay down continuing to execute the “3-2-1 Pension Funding Strategy” to achieve 90% funding in CalPERS plans by the end of FY 2023-24. The City also continues to address a legacy pension plan to ensure the long term funding of benefits for past and joint powers authority employees. x Maintenance: Prevailing wage requirements continue to impact maintenance contracts as costs, along with some inflation adjustments, are budgeted to increase. Additionally, the recurring maintenance fund of $250,000 was increased as part of this budget to $300,000 to ensure existing capital assets are properly maintained extending the asset lives and lowering future replacement costs.
14 x Capital Projects: Prioritized projects in the Budget include the Base of Pier Bike Rack area renovation, Community Center Shuffleboard Remodeling, Corto Lane Beach Access Rehabilitation, Solar Canopies for Parking Lots, Steed Park Pickle Ball, and T-Street Overpass rehabilitation. Other maintenance projects include pier projects, park projects, and street and sidewalk maintenance projects. Design for the fast tracked Steed Park Pickle Ball project is funded in FY 2022-23 to identify construction costs. Capital reserves are being utilized to fund the Beach Trail’s Steel Bridges Replacement and the Aquatic Center Pump Room Equipment replacement.
x General Fund Transfers: The annual transfer to the Street Improvement Fund remains at a $500,000 level based on funding currently available in the Street Improvement Fund and consideration of new receipts for road construction. The City is currently meeting its required Maintenance of Effort (MOE) which sets the funding levels that must be spent from General Fund resources to streets and roads. The General Fund includes a $1.0 million transfer to the Clean Ocean fund to support activities prior to the public considering the fee assessment.
The City’s budget continues to allocate resources to address public safety, utilizing American Rescue Plan funds to offset a portion of the costs. These costs are to quality of life issues within the City. Key Public Safety costs include:
x Orange County Sheriff’s Department (OCSD): The FY 2021-22 Police Services contract amount of $18.1 million increases in FY 2022-23 to $18.7 million, with the General Fund budgeting for $18.5 million of the contract. Similar to previous years, the Police Services Special Revenue Fund covers a portion of the police contract cost. The contract increases 3.4%, including additional body worn camera costs. The number of deputies remains the same, however a patrol deputy was converted to a motor deputy. CalPERS pension costs for past police department employees total $1.8 million.
x OCSD citation enforcement: The police services program includes $99,600 of legal costs to address the OCSD municipal citations enforcement in the Orange County courts. x Orange County Fire Authority (OCFA): The City’s Fire Services budget increases from $10.3 million to $10.7 million Services program - a 3.1% increase from the prior year. The total contract includes costs for facilities and vehicles totaling $10.9 million. This budget amount includes the 4th firefighter phase-in costs. CalPERS pension costs for past fire department employees total $1.5 million.
x Ambulance Services: The City contracts with a private company for two full-time ambulances in the City. The ambulance contract is broken out as a separate program in the FY 2022-23 budget. The costs are $1.8 million, which are mostly recovered through ambulance service revenues.
x Marine Safety: The Marine Safety Division budget totals $2.1 million and is increasing from the prior year by $67,130 due primarily to staffing costs and supplies costs. x Code Compliance: The City Code Compliance Division is categorized under Community Development which includes Code Compliance and the Park Ranger programs. These two programs together total $1.5 million and address quality of life issues and code violations.
These programs are instrumental in quality of life enforcement issues and in addressing Homeless related issues.
15 Accomplishments
There have been a number of key accomplishments in FY 2021-22 including: a cooperative agreement with the County of Orange and Orange County Transportation Authority to protect San Clemente; settlement agreement to support conservation of San Clemente open space; establishing a policy for beach trail bicycle and e-bike use; adopting a Housing Element for State review; implementing a training program for Park Rangers; completing a multi-year MOU; updating fire engines and adding an aerial ladder truck; completing the OCSD Substation construction; and initiating construction on a new City Council Chambers at City Hall. Our accomplishments should be celebrated especially because we continue to operate with fewer employees. A more inclusive list of accomplishments by Department are included on the pages following the transmittal letter.
Summary
In FY 2022-23, we will focus on implementing the City Council’s strategic priorities while maintaining a balanced budget, providing quality services to residences, and implementing the adopted Capital Improvement Program.
In closing, I have to take a moment and thank the employees at the City of San Clemente. I am confident in their ability to meet the needs of this City and its residents. City employees have pushed through the turbulent environment of the pandemic and continued to provide essential services to our residents, even under constrained staffing levels. I look forward to next year’s challenges and opportunities knowing that the team of San Clemente employees will rise to meet them.
Erik Sund
City Manager
(Please note that numbers in this document have been rounded) 16 FY 2022-2023
Strategic Priorities
5 Maintain strong
approach to digital
transformation to
become best in class
Update the City'spermit system(TRAKiT)Maintain the City'sasset system (CMMS)Increase digitalcommunicationsImplement Agenda &LegislativeManagement System(Granicus)Complete CouncilChambers Audio/Visual/BroadcastSystem 3 Update and maintain
infrastructure that
reflects best available
technology and
service
Maintain the City'sasset system (CMMS)Maintain GIS &mapping programsEnsure regularinspectionsUpdate the RecycledWater Master PlanComplete theWastewater Cost-ofService StudyComplete the CleanOcean Program Feeanalysis 4 Improve and maintain
strong staff
recruitment and
retention strategy to
attract and keep best
and most qualified
staff
Complete aClassification andCompensation StudyPromote the WellnessCommittee and up-todate employeediscount brochureUse best availableplatforms for jobpostingsMaintain the City'scompetitive benefitspackage 2 Grow resident
confidence and value
in City services and
operations
Update the City'spermit system(TRAKiT)Streamline the City'spermit and reviewprocessUse Nixel to poststreet project updatesIncrease communitycommunication andoutreach acrossseveral platforms
OPERATIONAL STATEMENT
1 Ensure financial
stability as
demonstrated by low
debt, high ratings,
and new revenue
generation
Reduce the City'sdebtMaintain the City'shigh financial ratingProvide sufficientrevenue streamsContinue to activelypursue grants
COUNCIL PRIORITY
In FY 2022-2023, City Staff will prioritize time and resources to:
17 Fiscal Year 2021-22 Accomplishments by Department
Beaches, Parks and Recreation
x Continued site-specific park master plan updates for Linda Lane Park, San Luis Rey Park, San Gorgonio Park, Bonito Canyon Park, and Richard T. Steed Park x Maintained the golf course at level B during peak season while providing recreational golf opportunities to the public
x Established a public facility code of conduct to improve customer service and provide a safe environment for all recreation facility patrons
x Launched golf course marshal program to improve golfer experience x Made improvements on golf course amenities including re-leveling and re-surfacing three tee boxes; customize Tee markers manufactured from fallen trees on the golf course and branded with SC logo; complete installation of yardage markers for fairway x Established modified uses of e-bike and bicycles on the beach trail Community Development
x Administered the Community Development Block Grant funds, including CDBG-CV for covid purposes which funded the City’s Community Outreach Worker position x Migrated to electronic plan submittals, electronic applications, and a building permit drop off system due to the pandemic
x Modified applications to simplify the permit process, updated the Building web page, and utilized Bluebeam plan review platform to issue paperless permits x Adopted SB9 Ordinances related to lot subdivision, Housing Element draft for State review x Streamlined the City’s Water Efficient Landscape Ordinance (WELO) review process to comply with State requirements
x Improved electronic plan submittals for all planning applications x Adopted local fire code regulations to improve enforcement on open space and City properties
x Implemented a safety policy for enforcement in compliance with Senate Bill 296 x Implemented a training program for Park Rangers to improve certifications for citation enforcement
x Initiated regular patrols of multiple public parking lots to ensure peace activities x Implemented notices, policies, and procedures to address abandoned personal property, debris removal, camping and curfew related regulations
Finance and Administrative Services
x Maintained Standard and Poor’s long-term financial “AAA” rating. x Managed COVID-19 guidance, mandates, and recommendations for employee health and safety in the workplace during the pandemic
x Completed negotiations with the union and executed a new multi-year Memorandum of Understanding (MOU)
x Executed the Voluntary Retirement Program
x Expanded online Business License renewal processing for contractor license types 18 x Negocio Building Renovation Technology Elements for OCSD on second floor x Provide mandated Harassment and Discrimination Prevention training for all City employees
x Initiation of the 3-2-1 Pension Funding Strategy to reduce the Unfunded Pension Liability Public Safety (Police, Fire and Marine Safety)
x Ensured all stations were fully staffed throughout the COVID-19 pandemic x New KME fire engine at station 60 and 100’ aerial ladder truck at station 59 x Continued to improve and utilize public safety data to respond to emerging threats and challenges
x Maintained response times and permitting standards and Priority 1 calls has a response time of under 5 minutes
x Conducted meetings with the City's Public Safety Committee to seek public safety recommendations
x Ocean lifeguards rescued 2,359 swimmers in distress, warned 45,807 visitors of dangerous situations, performed 1,172 medical aids and responded to 23,378 ordinance enforcement contacts and no drownings
x Over 700 students enrolled in the Junior Lifeguard Program. Participants received education and experience in ocean safety, first aid, rescue techniques, body surfing, board surfing, physical fitness, and Marine Safety operations Public Works
x Completed construction of OCSD Substation at City Hall and started construction on new City Council Chambers at City Hall
x Completed street, median, and streetscape projects including Camino de los Mares, Calle Del Cerro, and Vista Montana
x Completed median landscape renovation at Paseo de Cristobal, Ave. Valencia, Esplanade, and Ave. Vista Hermosa
x Completed street rehabilitation of 32 miles of City streets, including Avenida Pico, Via Pico Plaza, Calle de los Molinos, Avenida Navarro, and Calle de Industrias x Processed and permitted grading applications for Shorecliffs Senior Housing/Golfcourse Clubhouse and IN-N-Out developments
x Started the citywide signalized intersection improvements x Completed pedestrian bridge maintenance at Montalvo Canyon and Riviera x Completed the North Beach electrical and parking lot lights project x Completed Max Berg and Bonito Parks area lights replacement and Jim Johnson Memorial Park netting
x Completed pier concession building exterior renovation x Completed replacement of bathroom partition in 11 park restrooms Utilities
x Processed approximately 1.4 billion gallons of wastewater and 5,640 wet tons of solid waste
x Produced 550 million gallons (1,700 af) of recycled water for irrigation customers and Water Reclamation Plant (WRP)
19 x Ordered a Collection System Vactor Truck to clean sewer and storm drain lines and reduce excavation time for repairs
x Responded to emergency coastal bluff movement at Cyprus Shores to ensure uninterrupted wastewater and storm drainage
x Completed the Water Filter Plant Rehabilitation Chemical Storage Building project x Assisted customers with MWDOC’s turf removal rebate program and provided supplemental funding for the conversion of turf to water efficient landscaping to provide annual water savings to customers
x Engaged with State regulators to revise the City’s proposed water loss standard and residential irrigable area determination to improve feasibility of compliance with associated regulations (SB555 and AB606/AB1668)
x Updated the City’s Urban Water Management Plan
x Finalized Santa Margarita Water District Interconnection and Shared Services Agreement x Completed Digester Flare replacement and completed transfer to Digester 1 from Digester 2
x Completed Water Reclamation Plant Electrical Improvements x Completed WRP Odor Control System Evaluation and Refurbishment Project to extend existing equipment’s useful life
x Conducted WRP Efficiency Study to improve blower efficiency and reduce chemical and electricity usage
x Continued Prima Deshecha Cañada Watershed (Poche Watershed) Human Source Bacteria Study with the County
x Finalized the Municipal Pier Bacteriological Characterization Study and improved the water quality at the base of the Pier by installing and maintaining netting to reduce pigeon roosting
x Implemented Prop. 218 solid waste and recycling rate and contract modifications to comply with AB341 and AB1383
x Completed an evaluation of the City’s Solid Waste and Recycling Contract with CR&R 20 21
San Clemente At A Glance
Mission Statement
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:
x Maintaining a safe, healthy atmosphere in which to live, work and play; x Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities;
x Providing for the City’s long term stability through the promotion of economic vitality and diversity; x Resulting in a balanced community committed to protection of what is valued today while meeting tomorrow’s needs.
History
The City of San Clemente, commonly known as the “Spanish Village by the Sea”, spans just over eighteen square miles of coastline and scenic foothills. The area, long admired by explorers and passing settlers for its location, remained virtually uninhabited until 1776, when the establishment of the San Juan Capistrano Mission led to nearby settlements by both Indians and Spaniards.
Property rights to land exchanged hands several times, but few ventured to build on the land until 1925, when Ole Hanson, a Seattle developer, purchased a large portion of what is now San Clemente. Hanson believed that the area’s pleasant climate, beautiful beaches and fertile soil would serve as a haven for Californians who were tired of “The Big City”. He named the City after San Clemente Island, which was originally named by the explorer Vizcaino, in 1602 after Saint Clemente, whose feast is celebrated on November 23, the day of Vizcaino’s arrival on the island.
Hanson succeeded in promoting the new area and selling property to interested buyers. He built facilities such as a community center, beach club, pier and Plaza Park, and donated them to the community. The area was incorporated officially as a City in 1928 and enjoyed slow but steady growth in the years thereafter.
In 1969, an event occurred which accelerated the growth and reputation of San Clemente. In that year, then President Richard Nixon purchased a Spanish mansion that Hamilton Cotton had built in the southern part of town in 1927. This “Western White House” became the site of numerous historical meetings and decisions. In earlier years, President Franklin Delano Roosevelt often stopped at Cotton’s Point whenever he traveled between Los Angeles and San Diego.
City Government
The City of San Clemente is a General Law city that operates under the Council/Manager form of city government. The voters elect five of their fellow citizens to the City Council for overlapping four-year terms.
The Council, in turn, selects one of its members to serve as Mayor for a one-year term. The City Council holds regular public meetings every first and third Tuesday of each month.
The City’s current population of 63,380 enjoys 244.93 acres at 23 parks and beach accesses, 20 acres of sand beaches, 25.9 miles of hiking trails, and a championship municipal golf course.
22 San Clemente At A Glance
The City contracts for police services from the Orange County Sheriff’s Department and for fire services from the Orange County Fire Authority. Ambulance services are contracted to a private company.
Utilities (water, sewer, storm drain and urban runoff) are provided by the City. Trash collection is contracted to a private company.
Animal control and shelter services are provided by Coastal Animal Services Authority (CASA). CASA is a joint powers authority serving the cities of San Clemente and Dana Point.
Location
San Clemente is centrally located between Los Angeles and San Diego and is on the southernmost point of Orange County. The San Onofre Nuclear Generating Station and Marine Corps Base Camp Pendleton are located immediately to its south. The cities of San Juan Capistrano and Dana Point are located to the north and north-west.
The City limits cover 18.45 square miles at an average elevation of 250 feet.
23 Reader’s Guide to the Budget
Reader's Guide to the Budget
This guide is intended to help the reader understand what information is available in the budget and how it is organized. The FY 2022-23 budget document consists of 18 chapters including a Budget Glossary and Index. Below is an explanation of the major sections of this budget:
Introduction
The Introduction consists of the following items:
x Table of Contents - Provides page numbers to locate sections within the budget document. x City Organization Chart – Provides a City-wide organization chart. x Financial Accomplishments – The City has been presented the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the Fiscal Year beginning July 1, 2021.
Standard & Poor’s rates the City of San Clemente’s credit at AAA. x San Clemente at a Glance - Presents the Mission Statement, a brief history of the City, description of the form of government, location, and artwork credits.
x Reader's Guide to the Budget - Provides a listing and description of chapters included in the annual budget.
Chapter 1 – Budget Overview
The Budget Overview consists of the following items:
x City Manager’s Transmittal Letter - The City Manager's Transmittal Letter summarizes many of the critical issues addressed in the budget.
x Budget Summary - This section presents a brief overview of the City’s Operating and Capital budgets. x Financial Overview – Provides a comprehensive overview of the FY 2022-23 budget with a focus on All Funds and General Fund revenues and expenditures, as well as staffing levels, capital projects, maintenance projects, fund balances and the General Fund operating position. x Budget Process - Provides an overview of the budget development process and timeline. x Accounting System & Controls - Provides an overview of the City's accounting systems and the level at which budgetary control is maintained. The Cost Allocation Plan provides an overview of the process which allocates General Fund overhead costs to other funds.
Chapter 2 - All Funds Summary
A comprehensive overview of the FY 2022-23 budget, with a focus on all funds (consolidated). Included are tables and graphs for both revenues and expenditures and an overview of revenue assumptions that were utilized in the development of the budget. A listing of all city-wide programs is included in this section.
Chapter 3 - General Fund Revenues and Expenditures
An analysis of General Fund revenues is provided in this chapter, including General Fund revenues by category, revenue overview, revenue summary and revenue by line item. This section also provides an explanation of General Fund expenditures, including expenditures by category, department, summary of expenditures, expenditure overview, and expenditures by line item.
24 Reader’s Guide to the Budget
Chapters 4 through 9 – Department/Division Budgets
These sections include the budgets for the City's basic organizational units which provide essential services to the citizens of San Clemente. Each section presents information summarized at the Department level and General Fund Division level. The Department/Division/Program Budgets include:
x General Government x Finance and Administrative Services x Public Safety x Community Development
x Public Works x Beaches, Parks and Recreation
Departmental summary information is presented in the following format:
x Department Overview – An overview of the structure and description of the Department. x Organization Chart - An organization chart by function is provided for each department. x Expenditures by General Fund Division - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 adjusted budget and projected expenditures, and budgeted expenditures for FY 2022-23 for General Fund divisions within the Department.
x Department Expenditures by Category - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 adjusted budget and projected expenditures, and budgeted expenditures for FY 2022-23 for each expenditure category.
x Department Personnel Summary - The total number of staff assigned to each Department by Full-Time Equivalent (FTE). FTE refers to a budgeted, benefited position that normally works at least 2,080 hours per year. A 0.5 FTE would be scheduled to work 1,040 hours per year. x Accomplishments - A list of Department/Program accomplishments for Fiscal Year 2021-22.
x Key Initiatives – A listing of key initiatives for the Department/Program for Fiscal Year 2022-23.
General Fund Division information is presented in the following format:
x Purpose Statement – This provides a general description of the primary purpose of the division. x Service Description - A listing of the key services or functions provided by the division. x General Fund Program Summary - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 adjusted budget and projected expenditures, and budgeted expenditures for FY 2022-23 for General Fund programs within the Division.
x Category Expenditure Summary - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 budgeted and projected expenditures, and budgeted expenditures for FY 2022-23 for each expenditure category. x Division Personnel Summary – The total number of staff assigned to each Division by FTE. x Significant Changes – This section provides an overview of the significant changes included in the budget. 25 Reader’s Guide to the Budget
Chapter 10 - Special Revenue Funds
This section includes budgets for the City's Special Revenue Funds. Fund descriptions, along with revenue and expenditure information and beginning and ending fund balances are presented. Special Revenue Funds include the Street Improvement, Gas Tax, Miscellaneous Grants, Disaster Relief, Air Quality Improvement, Local Cable Infrastructure, Police Grants, Local Transit Program, and Building Homes & Jobs Act Funds.
Chapter 11 - Capital Project Funds
This section provides an overview of the City's Capital Project Funds including a listing of projects where appropriate.
Capital Project Funds include the Parks Acquisition and Development, Local Drainage Facilities, Regional Circulation Financing & Phasing Program, Public Facilities Construction Fee, Developers Improvement, Low/Moderate Income Housing, In-Lieu Housing, and Reserve Funds.
Chapter 12 - Enterprise Funds
The budgets for the Water, Sewer, Storm Drain, Clean Ocean, Solid Waste, and Golf Funds are presented.
Operating, Depreciation and Capital Reserve Funds are included in this section. For Operating Divisions within these funds, information is presented in the following format:
x Purpose Statement – This provides a general description of the primary purpose of the division. x Service Description - A listing of the key services or functions provided by the division. x Beginning Net Working Capital Balance - A chart comparing FY 2020-21 beginning balance, FY 2021-22 beginning budgeted and projected balance, and budgeted beginning balance for FY 2022-23. x Revenue Summary - A chart comparing FY 2020-21 actual revenues, FY 2021-22 budgeted and projected revenues, and budgeted revenues for FY 2022-23.
x Expenditures by Program - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 adjusted budget and projected expenditures and budgeted expenditures for FY 2022-23 by program within the Division. x Ending Net Working Capital Balance - A chart comparing FY 2020-21 ending balance, FY 2021-22 ending budgeted and projected balance, and budgeted ending balance for FY 2022-23.
x Expenditures by Category - A chart comparing FY 2020-21 actual expenditures, FY 2021-22 budgeted and projected expenditures, and budgeted expenditures for FY 2022-23. x Division Personnel Summary – The number of staff assigned to each Division is listed in this table by FTE. x Significant Changes – This section provides an overview of the significant changes included in the budget.
Chapter 13 - Internal Service Funds
This section presents an overview of all Internal Service Funds, including fund descriptions, revenue and expenditure detail, and beginning and ending fund balances. Internal Service Funds include Central Services, Information Technology, Contract Fleet Services, Fleet Replacement Reserve, Medical Insurance, Workers’ Compensation and General Liability Self-Insurance Funds.
26 Reader’s Guide to the Budget
Chapter 14 - Capital Improvement Program
This chapter presents the City’s Capital Improvement Program (CIP) budget for Fiscal Year 2022-23. The first section provides an introduction to the City’s six-year Capital Improvement Plan for Capital and Major Maintenance projects. The section includes three graphs, providing an overview of the total CIP Revenues and Expenditures by Category and Fund. An overview of the City’s Master Plans, the CIP process, categories, carry forward projects, and project summaries by fund and category for the FY 2022-23 CIP follows. A map of the City, indicating major project locations, is included for the reader’s reference. Following this introductory section, the six major categories, Drainage, Parks and Medians, Sewer, Street, Water, and Facilities and Other Improvements, are presented in detail.
Each section provides an overview of the category and detailed project sheets for the FY 2022-23 CIP budget.
Chapter 15 - Fiscal Policy and Debt Summary
x The City's Fiscal Policy describes the City's financial goals along with policies addressing the operating budget, revenues and expenditures, utility rates and fees, capital improvement program, short- and longterm debt, reserves, investments, and accounting, auditing and financial reporting. x Appropriations Limit, which is required by the State constitution, places limits on the amount of proceeds of taxes that the City can allocate each year.
x Debt Summary, an overview of the City’s general government, former Redevelopment Agency, Golf Operating Fund and assessment district debt.
Chapter 16 – Performance Measures
This section presents quantitative data which measures each division’s efficiency and effectiveness in the achievement of performance objectives in meeting the City’s mission statement.
Chapter 17 - Staffing
This section includes a staffing schedule, by position and category, for Fiscal Years 2018-19 to 2022-23. Position changes included in the FY 2022-23 budget are described, and the workforce is graphically illustrated by department and by category. A ten-year historical comparison of the changes in full-time and part-time employees is also presented. Information on pensions and pension funding levels is presented in this section too.
Chapter 18 – Glossary & Index
This section provides a complete glossary of terms and acronyms used throughout the budget document. The index provides an alphabetical listing of subjects discussed in the budget document and provides a page number as to where each subject can be found.
Demographic and Statistical Information
Printed inside the back cover of the final Adopted Budget, this provides a list of demographic and statistical information for the City of San Clemente.
27 28
Budget Summary
Fiscal Year 2022-23
Strategic Financial Planning Process
The City of San Clemente has an established strategic financial planning process. The City’s financial planning process is multifaceted and emphasizes long term strategic planning. The City Council encourages a process that focuses on ensuring fiscal sustainability when making decisions that will impact service delivery and the quality of life in San Clemente. The process begins with a Long Term Financial Plan introduction that identifies key issues. A Long Term Financial Plan is developed which projects future expenditures and revenues based on current service levels and addresses any funding gaps. After input from the public, Council appointed commissions and committees, and executive management, the City Council adopts a balanced budget which becomes the fiscal blueprint for the following fiscal year. During the ensuing year, City staff monitors the budget, and provides reports to the City Council and public.
Financial Highlights
A brief overview of the FY 2022-23 budget follows:
x Total City operating budget (excluding fund balances, capital outlay, debt service, and transfers between
funds) amounts to $136.1 million, compared to last
year’s operating budget of $126.8 million.
x General Fund total revenues total $76.6 million, which is a 4% increase from the FY 2021-22 adjusted
budget of $73.9 million. General Fund total
expenditures (including transfers and one-time
expenditures) total $81.2 million, a 0% change from
the prior year. Based on fiscal policy, one-time costs
are paid with the General Fund’s unassigned fund
balance.
x The General Fund operating budget (excluding capital
outlay of $2.7 million, one-time transfers of $1.1
million, and other one-time costs of $2.2 million)
amounts to $75.2 million, which is an increase of 7%
from last year. Operating revenues total $75.6 million. x The Capital Improvement Program totals $14.3
million and the Maintenance program totals
$8.7 million.
x The net FTE total changed by 1.0 FTEs for City
positions. Class and Compensation Study is
included in FY 2022-23.
x The OCSD Police contract increases to $18.8
million, with $18.6 million in the General Fund
and $0.2 million in the Police Grants Fund.
x The Fire contract with OCFA is $10.8 million,
which includes the base fire contract, and
maintenance and replacement costs.
3. Develop Balanced Budget
x Fiscal Sustainability
x All Funds
x Capital Improvement Program
x Calculate Operating Position
4. Monitor Budget & Process
x Financial Reports
x Capital Improvement Program
x Investment Report
x Strategic Priorities
1. Establish Goals & Priorities
x Introduction of Issues
x Seek City Council Input
2. Develop Long Term Financial Plan
x Review/Update Fiscal Policy
x Revenue & Expenditure Financial Forecast
x Financial Trends
x Reserve Analysis
x Other Issues/Considerations
29 Budget Summary
Fiscal Year 2022-23
Property Tax
$41.0M, 54%
Sales Tax $13.0M,
17%
Other Taxes
$6.5M, 8%
Permits & Fees
$1.2M, 2%
Other Agencies
$0.6M, 1%
Service Charges
$6.3M, 8%
Fines $0.5M, 1%
Interest & Rents
$3.2M, 5%
Other Revenue
$4.3M, 6%
Schools 47%
Cities 20% County 13%
Special
Districts
11%
RDA Trust
Funds 9%
State 88%
City 12%
General Fund Revenue: $76,593,490
Revenues
General Fund total revenues amount to $76.6 million. Revenues in the General fund are budgeted to increase by 4% over the FY 2021-22 adjusted budget. Available fund balance will be reduced to fund one-time capital costs and studies.
Taxes and service charges increase from FY 2021-22. Taxes represent about 79% of General Fund revenues and are budgeted to increase by 7%, or $3.9 million, in FY 2022-23. Property taxes increase by 6%, sales taxes increase by 7% and transient occupancy taxes increase by 31%. Franchise fees remain flat and business license taxes increase by 7% as restrictions from the pandemic are eased in FY 2021-22. Service charges increased mostly due to recreation fees, marine safety fees, and parking permit and meter revenues. Permits and fees increase due to a budgeted increase in construction fees. Fines decrease due to decreased parking violation revenues. Interest and rents decrease based on decreased facility rentals and interest income.
Intergovernmental and miscellaneous revenues decrease from the prior year. Intergovernmental revenues decreased due to one-time transportation related grants in prior year. Interfund revenue decreases from FY 2021-
22. Where the Typical Orange County
Property Tax Dollar Goes
(Locally Assessed 1% Basic Levy)
Where the Sales Tax Dollar Goes
30 Budget Summary
Fiscal Year 2022-23
General Government
$8.8M, 10.8%
Finance & Admin Svcs
$3.6M, 4.4%
Police $21.3M, 26.2%
Fire $14.1M, 17.4%
Marine Safety $2.1M,
2.6%
Community
Development $6.3M,
7.8%
Public Works $19.2M,
23.6%
Beaches, Parks & Rec
$5.8M, 7.1%
General Fund Expenditures: $81,159,560
(Includes one-time expenditures)
Expenditures
General Fund total expenditures decrease 0% to $81.2 million from last years adjusted budget of $81.3 million.
Once expenditures are adjusted for one-time items, operating expenditures increase 7% from the FY 2021-22 adjusted operating position, due primarily to increases in public safety and beaches, parks, and recreation costs.
Expenditure decreases are budgeted in personnel and capital outlay, while supplies, interdepartmental, interfund, debt service, contractual and other charges increase for the General Fund.
Personnel costs decrease 1% or $0.2 million. The City is starting to recruit for previously vacant positions to staff facilities, these vacancies were maintained to provide cost mitigation measures during the pandemic and as a result of lower activity levels. The current MOU agreement with the San Clemente City Employees Association (SCCEA) allows for a Cost of Living Adjustment (COLA) of 0.25% with a bonus from American Rescue Plan funds. Supplies increase by 4% due mostly to costs for office supplies and postage. Contractual services remain flat, with police, fire and ambulance increases being between 4-6%, while legal and other contractual services budgets decrease.
Other charges increase by 17%, with increases to election expenses for FY 2022-23. Capital Outlay decreases 32%, the most significant projects in FY 2022-23 include the Steed Park Pickle Ball design along with other street maintenance. Interdepartmental charges increase 6% and transfers to other funds increasing based on funding levels.
Based on the FY 2022-23 Budget the General Fund currently has an operating position of $422,820.
Financial Forecast:
The forecast was developed in connection with the LTFP and was presented to Council on April 5, 2022. A revised five-year financial forecast has been prepared with the FY 2022-23 budget to reflect a future financial position, based on a phase-in of the economy and economic recovery. Staff will continue to stay appraised of current economic events and work to address any concerns as they develop.
Further information on the forecast is in the Financial Overview section of the Budget and the 2022 LTFP is available on the City’s website. Other 2022 LTFP actions incorporated into the Budget include reserve transfers, the pay down of unfunded liabilities, and other general actions. 31 Budget Summary
Fiscal Year 2022-23
Infrastructure
The infrastructure of the City is the underlying base and foundation of the community. The City has a strong
commitment to building and maintaining its
infrastructure. As part of that commitment, the City has developed a Capital Improvement Program (CIP) that is
a long range planning document for current and future
projects.
The total budget for the City’s Capital Improvement
Program in fiscal year 2022-23 is $14.3 million. There
are a total of 31 capital improvement projects included in this budget.
The Capital Improvement Program is divided into six
major categories. FY 2022-23 activity is summarized
below:
In addition to Capital project, 38 maintenance projects are funded in the amount of $8.7 million.
Capital improvement and maintenance projects are
generally funded through existing revenues and fund
balances from the General Fund, capital project funds,
special revenue funds, or depreciation reserve funds.
Grant funds are also available for projects which
receive grant awards.
Street improvement projects include the rehabilitation
or reconstruction of pavement of various streets, arterial street and alley pavement maintenance, and signalized
intersection improvements.
Other Facilities projects include the Aquatic Center
Pump Room Equipment replacement and Corto Lan
Beach Access rehabilitation projects.
Major improvements for Enterprise Funds include the
Recycled Water Quality and Catch Basin and Storm
Drain Improvements. Water projects includes Calle
Real Pump Station rehabilitation.
Significant project funding in the FY 2022-23 budget are noted below:
The capital projects listed above are significant and are key components in making sure the City meet citizen’s
needs now and in the future. These projects take time
to complete and each year, the Capital Improvement
Program provides funding for many multi-year projects.
A number of significant CIP projects currently in
process that were funded in previous years and these
are reported on throughout the year.
At year end, funding projects approved in the prior year which are not yet complete will be carried forward into the 2022-23 fiscal year. A list of these projects is
published in the CIP Section of the final approved
budget.
Sewer
$1.3
Water
$2.7
Parks &
Medians
$2.2
Streets
$6.2
Other
Facilities
$0.9
Drainage
$1.0
$14.3 million
Spending Around Town
Arterial Street Pavement Maintenance $1,500,000
Street Improvement Projects 1,500,000
Calle Real Pump Station Rehabilitation 1,200,000
Sidewalk Improvements 725,000
Intersection Improvements 700,000
Pavement Preservation Program 700,000
32 Financial Overview
Fiscal Year 2022-23
All Funds Overview
All Funds Spending Plan
The All Funds budget reflects the operating and capital spending for the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds. The City has 33 budgeted funds. The total All Funds budget for FY 2022-23, including fund balances and reserves, amounts to $261.9 million, with $163.7 million of budgeted expenditures. The following table illustrates the $163.7 million All Funds expenditure budget, by fund type, for FY 2022-23:
For All Funds, Beginning Fund Balance is projected at $108.8 million at the start of FY 2022-23 and Ending Fund Balance for FY 2022-23 is projected at $98.3 million, a decrease of $10.5 million. The following graph and table present the FY 2022-23 operating budget, as compared to the FY 2021-22 adopted operating budget, for All Funds:
All Funds Operating Budget Comparison
FY 2021-22 to FY 2022-23
Excluding Fund Balances, Loan Proceeds, Capital Outlay & Transfers ($ in millions)
All Fund Revenues FY 2021-221 FY 2022-23
All Funds Revenues $ 153.5 M $ 153.1 M
One-time revenues* (0.8 M) (1.0 M)
Transfers to other funds (15.8 M) (9.2 M)
Total All Funds Operating Revenues $ 136.9 M $ 142.9 M
* One-time revenues include significant one-time receipts (including grants and debt proceeds).
All Fund Expenditures FY 2021-221 FY 2022-23
All Funds Expenditures $ 166.9 M 163.7 M
Capital outlay/studies (24.3 M) (18.4 M)
Transfers to other funds (15.8 M) (9.2 M)
One-time costs* (0.0 M) (2.1 M)
Total All Funds Operating Expenditures $126.8 M $134.0 M *Significant one-time costs include one-time studies and other costs 1 Based on the FY 2021-22 Adopted Budget
$80.0
$100.0
$120.0
$140.0
$160.0
FY 2021-22 FY 2022-2023
$136.9 $142.9
$126.8 $134.0
Revenues Expenditures
In Millions
Fund Type FY 2022-23
General Fund $81,159,560
Special Revenue Funds 11,335,310
Capital Project Funds 3,891,200
Enterprise Funds 55,600,330
Internal Service Funds 11,666,400
Total Spending Plan $163,652,800
The City’s All Fund
Operating Revenues
Exceed Expenditures
Total operating revenues
amount to $142.9 million
Total operating expenditures,
excluding capital and transfers,
amount to $134.0 million
The FY 2022-23 budget
reflects the operating and
capital spending plans for
the City
Total spending plan =
$163.7 million
33 Financial Overview
Financial Overview – All Funds
Revenues total $153.1 million, a 9.0% decrease from the FY 2021-22 adjusted budget, while expenditures are budgeted at $163.7 million, a 28.0% decrease from the FY 2021-22 adjusted budget. Excluding one-time items, All Funds operating revenues increase $6.0 million and operating expenditures increase $7.2 million. Revenues increase in taxes and service charges; while permits and fees, intergovernmental, fines, and other revenues and financing sources decline, when compared to the prior year’s adjusted budget. Expenditures increase in supplies and debt service charges; while decreases are in personnel, contractual services, capital outlay, and other charges from the FY 2021-22 adjusted budget. Significant revenue and expenditure changes are outlined below.
Significant revenue changes for All Funds include the following:
x All Fund tax revenues are up by $3.9 million or 7%, Property Taxes are up 6% due to growth in assessed valuations, development, and property resale activity. Sales Tax revenue increases by 7% or $0.8 million, based on anticipated consumer spending and one-time receipts in FY 2021-22.
x Permits and Fees show a $159,000 decrease, or 10%, mainly due to lower budgeted revenues for building related permits and lower budget amounts for impact fees. Infill development amounts account for most of these revenues. x Intergovernmental revenues decline by $10.5 million, or 61%, mainly the result of onetime grants in the prior year including $7.5 for COVID Relief funding, $154,430 for CDBG-CV grant and $1.1 million for a transportation grant. x Service charges increase by $222,000, or 1%, mainly due to anticipated water and sewer service charges.
x Interest & rents decrease $506,000, or 9%, due to uncertainty in the interest rate environment and anticipated lower rental activity.
x Other Revenues and Financing Sources show a decrease of $8.0 million in total, mainly from decreases to transfers. This decrease from FY 2021-22 is mostly due to a $10.0 million equity transfer to fund the In-lieu Housing Fund. FY 2022-23 has $1.4 million to fund reserves and other transfers to support capital projects.
Significant expenditure changes for All Funds include the following:
x Capital outlay decreases $48.7 million as multi-year projects are either in progress, completed, or delayed in FY 2022-23. Significant projects include the Arterial Street Pavement, Street Improvement, Calle Real Pump Station Rehabilitation and Avenida Vista Hermosa and La Pata Intersection Improvements, along with a variety of Street, Water and Sewer projects. FY 2022-23 capital activity is discussed later in this section. x Salaries and benefits decrease by 1% overall, or $0.3 million. The practice of reassessing staffing when vacancies arise is continuing and still in place into the FY 2022-23 Budget.
Additional Information is located in this Budget’s Staffing section. x Contractual services decrease $5.5 million, or 8%, overall, although increases are realized under Police, Fire, Ambulance, and Animal Control. Increases are offset by other reductions, mainly related to one-time maintenance projects, studies, and other contractual items. These include the SC Trolley operation, disaster relief costs, the Local Coastal Plan, one-time contract staff assistance in Community Development, and several Water and Sewer maintenance projects located in multiple funds. x Other charges decrease by $60,330, or 0%, primarily resulting from decreases to claims and insurance charges, when compared to the prior year. x Interfund transfers decrease $8.6 million based on multiple one-time transfers, including the initial transfer to fund the In-Lieu Housing fund in FY 2021-22. x Debt service costs increase by $294,470 or 7%, due to a one-time payment of $2.0 million on the unfunded liability payment, which is higher than last years.
All Funds Revenue total
$153.1 million
All Funds Expenditures
total $163.7 million
34 Financial Overview
Water and Sewer Rates
Water rates increased on January 1, 2022 by an average of 3.5% for the majority of single family residences, based on the five-year rate structure adopted by the City Council on November 7, 2017. A Water Cost-of-Service Study performed in 2017 provided a uniform rate structure with annual increases to the fixed meter and water consumption charges through 2022 to rebuild operating and depreciation fund balances. Water rates are projected to increase based on imported water costs from the City’s water supplier and wholesaler.
Sewer rates are anticipated to change during FY 2022-23 because sewer charges do not fully recover the costs to operate the City’s sewer system and the costs for maintenance of the system’s infrastructure. Sewer rates have not increased since 2013 due to various costs savings measures taken by Utilities. A Sewer Cost-of-Service Study, expected to be completed at beginning of FY 2022-23, will examine the current cost structure and recommend a new rate structure to recover costs and proportionally allocate costs to the City’s various customer classes. Sewer rates are anticipated to change based on result of the study, however annual increases are likely to be 3-6% over the multiyear rate implementation period.
Capital Improvement Program (CIP)
The following chart depicts the spending pattern of the City’s Capital Improvement Program over the past ten years. The City continues to maintain its infrastructure through an annual process. Capital improvements include the building, upgrading or replacement of City infrastructure, such as residential and arterial streets, bridges, traffic signals, water, sewer and other capital assets. Funding for these projects typically are provided from the restricted revenue amounts, reserves, and through annual one time sources.
Capital Improvement Projects
The City’s Capital Improvement budget in FY 2022-23 amounts to $14.3 million, compared to $21.4 million the previous year. There are 31 capital improvement projects scheduled in the FY 2022-23 program. Capital project expenditures, by category, are planned as follows:
$8.1 $6.0
$17.0 $20.1
$13.4 $13.1 $14.8 $17.0
$21.4
$14.3
$0.0
$10.0
$20.0
$30.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Capital Improvement Program
FY 2013-14 to FY 2022-23
($ in Millions)
Drainage
8%
Parks & Medians
15%
Sewer
9% Streets
43%
Water
19%
Facilities & Other Imp.
6%
FY 2022-23 CIP
$14.3 Million
Capital Projects funded
in FY 2022-23 total
$14.3 million
Water rates increased by
about 3.5% in January
2022
Sewer rates are being
reviewed as part of a
Cost-of-Service Study
35 Financial Overview
The largest projects are $1.5 million for the Arterial Street Pavement Maintenance, $1.5 million for Street Improvement projects, and $1.2 million for the Calle Real Pump Station Rehabilitation. A full listing is in the Capital Improvement Section of the Budget.
Maintenance and Other Projects
The City’s maintenance and other projects budget in FY 2022-23 is $8.7 million for 38 projects, including Major Street Maintenance Program, sidewalk and repair improvements, as needed pavement repairs, pavement preservation, sidewalk, building maintenance, and other building and structure repairs. Water, Sewer and Street projects comprise 77% of the total costs.
General Fund Overview
The General Fund, which is the main operating fund, revenues amount to $76.6 million, or 4% higher than the FY 2021-22 adjusted budget. General Fund total expenditures equal $81.2 million, a 0% change from prior year’s adjusted budget. These amounts include one-time costs. The following graph shows the General Fund budget for FY 2022-23 compared to the FY 2021-22 adjusted budget:
General Fund Revenues & Expenditure Comparison
FY 2021-22 to FY 2022-23
($ in millions)
One-time costs included in the budget include $2.7 million of capital costs, a $2.0 million onetime pay down of the pension Unfunded Accrued Liability (UAL), a $1.0 million transfer to the Clean Ocean fund to support activities while the fee assessment is being considered, and other one time costs that total $0.3 million.
General Fund Operating Budget
Operating revenues and expenditures exclude one-time receipts and expenditures, such as capital outlay and one-time transfers; show a more precise picture of the City’s fiscal and operating position. General Fund operating revenues for FY 2022-23 amount to $75.6 million, which is $1.0 million lower than the total revenue amount, due to one-time grants and transfers.
General Fund operating expenditures for FY 2022-23 total $75.2 million and exclude one-time capital costs, studies, and grant related costs of $2.7 million, one-time transfers of $1.1 million to other funds, and other one-time costs of $2.2 million, which includes the one-time payment of the Public Safety Inactive Plan Unfunded Liability.
The General Fund has a positive operating position of $422,820 for FY 2022-23. It is important to maintain this operating position since costs may increase due to inflation and this operating position can absorb the effects of any inflationary impacts. $40.0
$50.0
$60.0
$70.0
$80.0
$90.0 $73.9 $76.6 $81.3 $81.2
FY 2021-22 FY 2022-23
Revenues Expenditures
Maintenance and other
projects include street,
sewer, and water projects
Includes one-time costs
and capital expenditures
from reserves
General Fund total revenues
equal $76.6 million…General
Fund total expenditures
equal $81.2 million
General Fund has a positive
operating position of
$422,820 for FY 2022-23
36 Financial Overview
General Fund Operating Budget Comparison
FY 2021-22 to FY 2022-23
Excluding Fund Balances, Capital Outlay & Reserve Transfers ($ in millions)
General Fund Revenues FY 2021-22** FY 2022-23
General Fund Total Revenues $70.5 M $76.6 M
One-time revenues* (0.0 M) (0.2 M)
One-time transfers in (0.0 M) (0.8 M)
Total General Fund Operating Revenues $70.5 M $75.6 M
* One time revenues include grants, donations, and other one-time amounts. ** Based on Adopted FY 2021-22 Budget.
General Fund Expenditures FY 2021-22 FY 2022-23
General Fund Total Expenditures $73.7 M $81.2 M
Capital outlay or major projects (2.7 M) (2.7 M)
Other one-time costs (0.1 M) (2.2 M)
One-time transfers to other funds (0.5 M) (1.1 M)
Total General Fund Operating Expenditures $70.4 M $75.2 M General Fund Revenues
General Fund revenues are impacted by economic changes and other factors. General Fund revenue increases are expected in property taxes, sales taxes, other taxes, and service charge revenues. Decreases are fines, interest and rents, intergovernmental, and miscellaneous revenues. The following chart compares the FY 2021-22 adjusted revenue budget to the FY 2022-23 revenue budget:
$40.0
$45.0
$50.0
$55.0
$60.0
$65.0
$70.0
$75.0
$80.0 $70.5
$75.6
$70.4 $75.2
FY 2021-22 FY 2022-23
Revenues Expenditures
$38.7 M
$41.0 M
$0.0 $20.0 $40.0 $60.0
Misc. & Transfers
Interest & Rents
Fines
Service Charges
Intergovernmental
Permits & Fees
Other Taxes
Transient Occ. Tax
Sales Tax
Property Tax
Millions
FY 2022-23 FY 2021-22
Positive Operating
Budget for next Fiscal
Year (revenues greater
than expenditures).
FY 2022-23 Property
Taxes represent 54% of
total General Fund
revenues
General Fund operating
revenues = $75.6 million
General Fund operating
expenditures = $75.2 million
37 Financial Overview
General Fund Revenues by Category
Revenue Categories
2021-22
Adj Budget
2021-22
Projected
2022-23
Budget
Dollar
Change
% Bud 21-22
To Bud 22-23
Taxes $56,622,220 $57,804,770 $60,497,230 $3,875,010 7% Permits & Fees 1,361,170 1,365,350 1,165,530 (195,640) -14% Intergovernmental 1,381,840 1,380,470 585,940 (795,900) -58% Service Charges 5,890,830 6,187,990 6,258,340 367,510 6% Fines 569,750 481,500 518,300 (51,450) -9%
Interest & Rents 3,374,390 2,968,480 3,194,280 (180,110) -5% Miscellaneous 91,600 124,980 93,710 2,110 2%
Interfund Revenue 4,587,570 4,483,110 4,280,160 (307,410) -7% General Fund Revenue $73,879,370 $74,796,650 $76,593,490 $2,714,120 4% Significant revenues for the General Fund are derived from Property Taxes and Sales Taxes.
These are discussed in more detail on the following pages, along with other significant changes in the General Fund from the FY 2021-22 adjusted budget to the FY 2022-23 budget.
Property Taxes account for 54% of total General Fund revenues and are budgeted to increase by $2.3 million, or 6%, for FY 2022-23, based on assessed valuation increases and property transaction activity. New development and recapture of temporary assessment reductions from prior years account for some of the gain, along with the CPI factor being the 2% maximum allowed. The City’s net taxable assessed value has increased over 5% annually over the last 4 years. The chart that follows shows the City’s ten-year Property Tax revenue history, including Transfer Tax:
Sales Taxes increase by 7%, or $0.8 million, to $13.0 million, which is due to the increase in consumer spending as pandemic restrictions are eased. The City’s top three sales tax industries are consumer goods, restaurants, and fuel. Development in the City over the last several years, including the San Clemente Outlet Mall and the Estrella shopping center, resulted in sales tax revenue increases for the City within the last five years. The effect of the Wayfair decision has also contributed to sales tax growth. $25.9 $26.4
$29.3 $29.6 $32.8 $34.1 $35.6 $38.1 $38.6 $41.0
$10.0
$20.0
$30.0
$40.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Property Taxes
In Millions
$7.9 $8.0
$9.0
$9.9 $9.7
$10.6 $10.1
$12.1 $12.2 $13.0
$4.0
$9.0
$14.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Sales Taxes
In Millions
Sales taxes are
anticipated to
increase due to
economic effects
Sales taxes increase
$0.8 million, or 7%
Taxes amount to $60.5
million, or 79% of total
General Fund revenues
Property taxes increase
by $2.3 million, or 6%
38 Financial Overview
Franchise Taxes remain the same at $2.5 million, and Business License revenues increases by $65,000, or 7%. Transient Occupancy Taxes increase 31%, or $715,000, as hotels open and restrictions are eased post pandemic.
Service Charge revenues increase by $367,510, or 6%, driven by increases in parking meters and permits, recreation program fees, ambulance service charges, and marine safety fees.
Revenue from Fines decrease by $51,450 or 9% due partly decreases in parking violations.
Interest and Rents decrease by $180,110, or 5%, based on lower interest income and facility rents. Miscellaneous Revenues increased slightly by $2,110 from the prior year.
Permits and Fees decrease by $195,640, or 14%, due to lower anticipated levels of construction permits. Intergovernmental revenues decline $0.8 million, generally a result of a variety of one-time grants received in the prior year, including SB2 grants and SCRides.
Interfund Revenue decreases by $89,460, overhead charges decrease by $217,950 or 7%.
General Fund Expenditures
General Fund expenditures presented on the following chart compare the adjusted expenditure budget for FY 2021-22 and the FY 2022-23 expenditure budget, by category:
General Fund Expenditures by Category
The FY 2022-23 budget reflects total General Fund expenditures of $81.2 million, decreasing from the prior year’s adjusted budget by $0.1 million, or 0%. Decreases are seen in personnel and capital outlay, while increases are seen in supplies, contractual services, interfund transfers and other charges categories.
Personnel costs, at $20.3 million, decrease in total by $0.2 million, or 1%. The current MOU agreement with the San Clemente City Employees Association (SCCEA) allows for a Cost of Living Adjustment (COLA) of 0.25% with a one-time payment from American Rescue Plan funds, and also incorporates planned employee step increases. Additionally, a Class and Compensation study is budgeted in FY 2022-23, which will review positions and compare pay ranges and duties to other agencies. The Staffing section of the budget document provides more detail.
Supplies costs increase $42,580, or 4%, as compared to the prior year, the result of increases in one-time costs for the file system for City Clerk, postage, and chemical supplies. ($5.0) $5.0 $15.0 $25.0 $35.0 $45.0
Interfund Transfers & Misc
nterdepartmental Charges
Capital Outlay
Other Charges
Contractual Services
Supplies
Personnel
Millions
FY 2022-23 Budget FY 2021-22 Budget
Total General Fund
expenditures decrease by $0.1
million, or 0%
Expenditures increase in
supplies, contractual
services, interfund, and
other charges
Personnel costs decrease by
$0.2 million, or 1%
39 Financial Overview
In total, Contractual Services increases by $178,060, with increases seen in Police and Fire Services and Ambulance contracts and animal control costs. These increases in the various areas are offset by reductions in other contractual services, mainly related to one-time contractual items budgeted in the prior year, including the SC Trolley transportation program, building plan review services, and the Local Coastal Plan and other one-time contract staff assistance in Community Development.
The Orange County Sheriff’s Department (OCSD) police services contract increases $0.7 million, or 4%, from $17.9 million to $18.6 million in the General Fund, mainly due to staffing and personnel cost increases for the OCSD labor negotiations. Police services staffing levels increased by one position in FY 2021-22 as the result of the addition of a Community Service Officer. The number of Deputies remain the same as in FY 2022-23.
The total Orange County Fire Authority (OCFA) contract amounts to $10.8 million, comprised of the base contract ($10.7 million), and vehicle replacement ($144,040). The OCFA fire services base contract includes a budget increase of $324,970, or 3%. The fire contract also includes the City’s additional share of a 4th firefighter as OCFA phases-in the cost to the City.
The City also contracts with a private ambulance company for two full time ambulances in the City and the total Fire Services budget also includes $1.8 million for this additional service.
Other charges increase $211,710, or 17% due mainly to an increase in miscellaneous charges for election expenses in the current year. Interdepartmental Charges increase 6%, or $284,640, mostly attributed to an increase in administrative charges.
Capital outlay costs are reduced by $1.9 million as the result of a variety of multi-year capital projects budgeted in prior years. The current year capital outlay includes the Steed Park Pickle Ball design, along with other projects listed in the Capital Improvement Program, which is further detailed in this Budget.
Miscellaneous increases by $0.5 million for the Unfunded Liability for past Public Safety employees, reported as part of Public Safety, and interdepartmental charges. Interfund Transfers increase $1.1 million or 94%, primarily due to a one-time transfer of $1.0 million from the General fund to subsidize the Clean Ocean fund. In FY 2022-23, a total of $2.2 million will be transferred to other funds from the General Fund, as shown below:
Fund Transferred To Amount Purpose
Gas Tax Fund
Accrued Leave Fund
$ 14,590
100,000
Senior mobility
Reserve contributions
Street Improvement Fund
Transit Fund
Facilities Maintenance Fund
500,000
200,000
400,000
Street program
Trolley/SCRides Support
Reserve contributions
Clean Ocean 1,000,000 Subsidize operations
Total $2,214,590
The charts on the following page show department changes for General Fund expenditures, as compared to the prior year, and significant changes are described below.
General Government increases $0.8 million from increased transfers of $1.0 million due to a one-time transfer to Clean Ocean fund in FY 2022-23. Finance and Administrative Services decreases by $97,290, due mostly to a decrease in other operating expenses.
General Fund transfers to
other funds are $2.2 million
40 Financial Overview
Police Services increases $863,500, or 4%, related to OCSD contract increases and unfunded past public safety pension costs. Fire Services shows a $744,400, or 6% overall increase, primarily from OCFA contract increases and past public safety pension costs. Marine Safety increases $67,130 or 3% due mainly to an increase in personnel costs in FY 2022-23.
Community Development is lower by $1.0 million, or 14%, due primarily to employee contract services in the Planning department in the prior year.
Public Works decreases by $1.5 million, mainly the result of a net decrease in capital projects and major street maintenance projects in FY 2022-23, such as the Shoreline Feasibility Study.
Beaches, Parks and Recreation increases by $73,370 due to personnel costs and other charges, such as contract class instructors, as pandemic restrictions are lifted.
General Fund Expenditures by Department
* General Government includes City Council, City Manager, City Clerk, Economic Development and City General.
General Fund Expenditures by Department
Departments
2021-22
Budget
2021-22
Projected
2022-23
Budget
Dollar
Change
% Bud 21-22
To Bud 22-23
General Government $8,000,680 $7,915,230 $8,765,590 $764,910 10% Finance & Admin Services 3,686,790 3,390,840 3,589,500 (97,290) -3% Police Services 20,477,510 20,430,520 21,341,010 863,500 4% Fire Services 13,368,680 13,363,830 14,113,080 744,400 6% Marine Safety 1,998,810 1,984,090 2,065,940 67,130 3%
Community Development 7,295,180 7,118,460 6,273,040 (1,022,140) -14% Public Works 20,687,960 20,088,840 19,174,420 (1,513,540) -7% Beaches, Parks & Rec. 5,763,610 5,502,020 5,836,980 73,370 1% General Fund
Expenditures $81,279,220 $79,793,830 $81,159,560 ($119,660) 0% In FY 2022-23, $38.8 million, or 49%, of General Fund operating expenditures are budgeted for public safety: $21.3 million for Police Services (includes $1.8 million for pension payment); $14.1 million for Fire, which includes $1.5 million for a pension payment and $1.8 million for Ambulance Services; $2.1 million for Marine Safety; and $1.3 million for Code Compliance.
Reserve Contributions
Reserve contributions from the General Fund to the Reserve Capital Projects Fund include $100,000 to the Accrued Leave Reserve and $400,000 to the Facilities Maintenance Reserve from the General Fund to fund future capital activities. FY 2022-23 reserve contributions are summarized below:
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0
Beaches, Parks & Recreation
Public Works
Community Development
Marine Safety
Fire Services
Police Services
Finance & Admin Services
General Government
Millions
FY 2022-23 Budget FY 2021-22 Budget
Public Safety budget
increases in
FY 2022-23
Public Safety costs for
FY 2022-23 = 49% of GF
Operating Expenditures
41 Financial Overview
The Council Contingency reserve is funded at $18,500 for FY 2022-23 within the General Fund to address additional requirements during the year by City Council.
Fund Balance – General Fund
The FY 2022-23 ending fund balance projected for the General Fund is a total of $17.0 million, including an Emergency Reserve and Unassigned Fund Balance. The General Fund Emergency Reserve increases $961,000 to $15.0 million. This represents 20% of operating expenditures for FY 2022-23, as per the City’s fiscal policy and would be used for stabilization of services in an emergency. The General Fund’s Unassigned Fund Balance is projected to be almost $2.0 million at the end of FY 2022-23.
Unassigned fund balance has not grown at the levels experienced in the past as a result of transfers to fund future capital and amounts used to pay down the pension UAL to control future costs and achieve the Fiscal Policy funding target for CalPERS pension plans. These actions limit future cost impacts, however, public safety costs continue to increase due to the phase in of costs for the 4th firefighter/paramedic and body worn camera costs for police. .
The ARP allocation from the Federal government assisted with capital project funding due to revenue losses, funding assistance to non-profits, and providing one-time payments to city employees who have helped keep the City operational. The use of American Rescue Plan (ARP) Funds to pay public safety costs through a transfer from the Disaster Relief Fund in FY 2022- 23 assists in providing relief to the General Fund. The use of these funds ensures San Clemente is in the best position to respond structurally and economically in the future.
Other Fund Activity
The City has multiple funds that consist of Special Revenue, Capital Projects, Enterprise and Internal Service Funds. These funds are presented in separate sections of the Budget.
However, a summary of significant impacts and notable activity to funds other than the General Fund are summarized by Fund follows:
Emergency Reserve
$15.0 Million
Unassigned
$2.0 Million
Fund Balance
June 30, 2023
(rounded)
Emergency Reserve
Unassigned
Reserve Description Contribution
Accrued Leave Reserve $ 100,000
Facilities Maintenance Reserve 400,000
Total General Fund Reserve Transfers $ 500,000
Emergency reserve is 20% of
operating expenditures, or
$15.0 million and is fully
funded.
42 Financial Overview
• Street Improvement Fund: Funding is included for street projects of $1.5 million and Alley Pavement Rehabilitation of $690,000.
• Gas Tax Fund: Funding includes Sidewalk Repair and Improvement projects and Arterial Street Pavement Maintenance are budgeted for $1.3 million and $1.5 million respectively. • Community Development Block Grant: Funding is included for rehabilitation loans/grants, public services, administration costs and sidewalk improvements. • Disaster Relief Fund: Funding for one-time staff bonuses, the deferred Steed Park lighting project, and a transfer funding public safety in the General fund are budgeted. • Transit Fund: Trolley operations and the SC Rides program are included in this fund, with costs anticipated of $762,520 supported by grant funding of $565,600 and a General Fund transfer of $200,000.
• Building Homes & Jobs Act Fund: The funding provided is the City’s Permanent Local Housing Allocation grant and will be used to fund the Community Outreach Workers and other eligible support costs under the grant.
• Parks Acquisition and Development Fund: The fund balance is $1.0 million and anticipated to be used in future years for Steed Park Pickle Ball or other Park Master Plan projects. • Local Drainage Fund: Capital projects in the amount of $1,050,000 are included for Storm Drain and Catch Basin improvements.
• Public Facilities Fund: This fund is transferring $475,000 to reimburse a portion of the Council Chambers construction cost.
• Reserve Fund: This fund includes an additional $0.5 million for the Beach Trail Street Bridges Maintenance projects and $0.6 million for the SC Aquatic Center pump room equipment. • Water Fund: Water operating position improved with the 5-year rate model put in place in 2017. Equity is $6.4 million, which funds the Emergency Reserve and the Debt Service requirements. This operating position is currently allowing additional Depreciation Reserve contributions to meet Fiscal Policy capital reserve requirements. • Sewer Fund: A sewer cost of service study is being completed. Depreciation reserve transfers are assisting the operating position to provide operating funds to the detriment of future capital projects.
Labor Relations
The City is entering the second year of its three year MOU agreement with the San Clemente City Employees Association (SCCEA). A small Cost of Living percentage is included along with a one-time non-pensionable payment from available American Rescue Plan funds.
Additionally, a Classificaation and Compensation study is budgeted in FY 2022-23, which will review positions and compare to other agencies as agreed to in the MOU.
Due to a vacancies in the City workforce, as a result of the pandemic and attrition, staffing continues to be reassessed and addressed. This reassessment of positions, started in previous years, as vacancies occur continues during FY 2022-23. The FY 2022-23 Budget continues to fund staff positions, however, prior to filling any open positions a review of the position, its duties and contributions/impacts to the organization will be considered. Additionally, Human Resources continues to work on the prioritization of recruitments in critical areas as part of the recruitment process to best the operational needs of the citizens as multiple departments are short-staffed due to vacancies.
Staffing adjustments are minimal in the FY 2022-23 budget as a result of the upcoming Class and Compensation Study. A list of the changes are included in the Staffing section, however the total FTE count increases by 1.0 FTE for FY 2022-23 from the prior year levels. The net FTE changes by department is summarized in the following chart:
Staffing changes are
detailed in the Staffing
section
Class and
Compensation Study in
FY 2022-23
43 Financial Overview
Department FTE net change
Public Works (1.00)
Public Works 1.00
Community Development 1.00
There was no changes for General Government, Finance and Administrative Services, Beaches, Parks and Recreation and Utilities. The Staffing section of the budget document contains additional FTE information.
Long Term Financial Plan (LTFP)
The City utilizes an annual LTFP process, which precedes the budget, to review its current financial position and to make recommendations to direct the City in a positive financial direction. This year, the LTFP process occurred in early April. Actions to improve short and long-term results as part of the FY 2022-23 budget process include the following actions:
x Utilize American Rescue Plan grants to subside public safety related costs. x Increase the annual funding for routine CIP Maintenance from $250,000 to $300,000 as a recurring annual CIP allocation.
x General Fund transfers of $500,000 to the Capital Reserve Fund x Provide direction related to pension assets, including the potential creation of a Section 115 trust.
Additionally, based on City Council direction, staff continues to allocate additional one-time funds from excess revenues, salary savings and other sources to pay down the City’s unfunded pension liability. The FY 2022-23 Budget includes a $2 million one-time payment funded from these sources and continues the previous direction of City Council in executing the “3-2-1 Pension Funding Strategy”. After the $2 million payment, the funding of the Section 115 trust is the only remaining item of the funding strategy to be completed for $1 million. This will be considered as funds are available from one-time sources.
Economic Outlook
Generally, before the pandemic, modest but steady growth was anticipated during the upcoming years. With restrictions being lifted the overall economic environment has shown improvement with job growth and the economy has bounced back. This growth has led to cost inflation, which based on local forecasts are anticipated to level out over the next year within a more historical range as the Federal Reserve is increasing rates.
This economic growth conversely has led to growth housing prices, which are anticipated to grow in the 4-6% range and retail sales remain strong as the pandemic restriction easing has increased demand for items and also dining and restaurants. These areas of economic growth bode well for the City as property and sales taxes are major revenue categories improving the outlook for the City of San Clemente. Concerns still exist, such as the energy prices, inflation, and other pandemic concerns but the current outlook is positive.
San Clemente’s last major development area, Marblehead still has a retail component (Outlets at San Clemente) which continues in phases. In addition, development continues in other areas. The impact of this development will be beneficial for the City from a property and sales tax perspective.
44 Financial Overview
Five-Year Financial Forecast Summary – Operating Position & Fund Balance The City’s five-year financial forecast has been updated to reflect the FY 2022-23 budget to determine the impact of current budgetary decisions on the City’s future operating position and fund balances. It should be noted that the financial forecast projections utilize a variety of economic and budget assumptions, including an improvement to current economic conditions due to the removal of pandemic restrictions in FY 2021-22. It does not include any future development, including one-time revenues or costs. Previous forecasts from the LTFP and the prior budget showing deficits initiated actions to control costs and low anticipated spending increases in the FY 2022-23 Budget process.
These actions, along with revenue growth, contributed to a positive operating position in all five years of the forecast. The revenue growth is primarily driven by strong property taxes in the real estate market and continued sales tax growth, driven by consumer goods, dining and service station sales tax revenues. A summary of the Budget five-year forecast is below.
Forecast Operating Position 2022-23 2023-24 2024-25 2025-26 2026-27 Operating Revenues $75.6M $78.5M $81.2M $84.0M $86.8M
Operating Expenditures 75.2M 77.8M 80.4M 83.1M 85.9M
Projected surplus/deficit $ 0.4M $ 0.7M $ 0.8M $ 0.9M $ 0.9M Operating positions are subject to change based on actions taken in the normal course of business and actions by City Council. These differences can occur in a variety of ways. For instance, higher receipts or lower disbursements can occur from the projection differences, position changes, additional payments on pension liabilities, and various other actions.
Five Year Financial Forecast – Key Components
The 2022 Long Term Financial Plan (LTFP) forecast which is available on the City’s website (http:/san-clemente.org/about-us/city-finances/long-term-financial-plan. The 2022 LTFP forecast anticipating future results was presented to Council on April 2022. Changes to revenues and costs, changes in the growth rates, significant cost effects and other considerations resulted as part of the budget preparation as compared with the 2022 forecast. These resulted in a change to the FY 2022-23 amounts which impacted future periods.
General Fund Operating Revenues in the 2022 LTFP prior five-year forecast period anticipated to increase an average of 3.8%, based on the LTFP forecast. Operating revenues total $75.6 million in the first year and $86.8 million in the last year of the revised budget forecast. This five-year increase is due to greater increases anticipated in property and sales taxes, with other revenues achieving higher than 3.1% growth rates.
The City’s two main revenue sources, Property Tax and Sales Tax, make up over 71% of the City’s General Fund Operating Revenue. Property taxes continue to rise and are projected to increase an average of 4.6% over the forecast period from increased number of sales and valuation growth. Property is still expected to appreciate over time and there will be increases based on development and recapture of Proposition 8 reassessments, but there is a lowering of the growth anticipated over the five-year period. Sales taxes included in the forecast are projected to increase by 3.7%, based mostly on CPI increases and additional development at the San Clemente Outlet Mall, and on-line sales growth in future years.
General Fund Operating Expenditures are projected to increase at an average rate of 3.6% over the forecast period, this is the same as last year’s forecasted growth rate. The projected increases are primarily due to anticipated higher costs for the police and fire services contracts.
Five-Year forecast has
been updated to reflect
FY 2022-23 budget
Forecast shows positive
operating positions
beginning in FY 2022-23
Operating expenditure
growth projected at
3.6% per year
Operating revenue
growth is now projected
at 3.8% per year
45 Financial Overview
The Orange County Sherriff’s Department (OCSD) police services contract is forecasted to increase by 4.81% on average over the remaining forecast period, mainly from negotiated increases in personnel wages and benefits. This is a decrease from the prior forecasted 6.2% rate of growth. Actual contract amounts for future years are subject to negotiated changes to labor contracts and the City’s desired staffing levels.
The base contract with the Orange County Fire Authority (OCFA) for Fire services increases by
3.1% from the prior year. OCFA’s fire contract costs include the addition of a 4th firefighter on full rotation. The additional firefighter was implemented in FY 2017-18 and was filled through overtime initially, with the first two years of costs (FY 2017-18 and 2018-19) paid by OCFA. The City paid a portion of these costs in the third year, FY 2019-20, towards full cost being paid by the City in FY 2024-25, these costs were estimated at an additional $780,000 per year. The budget for FY 2022-23 also includes CalPERS pension costs for past fire department employees as well as contributions to OCFA for capital maintenance and vehicle replacement reserves.
Costs and associated revenues for the continued operation of two ambulances, year round, currently contracted through a private ambulance company, are also included in the forecast, based on the terms of the current five-year agreement.
Salary and benefit costs are anticipated to increase between 3.06% and 3.68% over the fiveyear period. Salary costs will increase based on union negotiations and as currently unfilled positions are funded and added back. Benefits, depending on the benefit, increase between 0% - 5%, with the largest increases occurring in medical and retirement costs. The medical increase offsets the increased costs of medical coverage and the retirement percentages are reduced over the forecast period. The future lower retirement costs are recognized as PEPRA employees are added and employer contributions will continue to decrease. Additionally, the City is paying down the UAL by making additional contributions to contain costs in future years. Other benefit expenditures include Social Security, Workers Compensation, disability and various other benefits.
Bond Rating
Based on the City of San Clemente’s credit strength, the City received the highest credit rating of “AAA”. An obligation rated “AAA” is the highest rating. This means that the City’s capacity to meet its financial commitment on a debt obligation is extremely strong.
The City’s credit rating is the
highest rating of “AAA”
46 Financial Overview
Decision Packages
Decision packages incorporated into the budget total $305,000, which include a field reconstruction, a file system and a Class and Compensation Study as a result of employee negotiations. Other fund costs address equipment needs, including a new mower and a vehicle lift for fleet operations.
The decision packages include one-time costs of $177,000 in the General Fund and other fund one-time costs of $128,000. FY 2022-23 decision packages address only one-time items. A summary of budgeted decision packages follow:
Budgeted Decision Packages Amount
One-Time
Vista Hermosa Field #2 Infield Reconstruction $ 37,000
File System for City Vital Records 35,000
Citywide Class and Compensation Study 105,000
General Fund Total $177,000
Other Fund Decision Packages - Budgeted
New Greens Mower (Golf) $ 85,000
Fleet Vehicle Lift (Fleet) 43,000
Other Funds Total $ 128,000
Total Decision Packages - Budgeted $ 305,000
Budgeted decision
packages net $305,000
for All Funds
47 48
The Budget Process
The Budget Process
The City's budget process begins in November and concludes in June each year. An executive team approach is used to develop the budget. Senior management representatives from each department, along with the City Manager and Assistant City Manager, utilize guidance provided by the City Council through various priority processes. Additionally, operational issues that affect the budget are examined in the Long-Term Financial Plan and financial recommendations are incorporated into the budget. The table on the following page illustrates the budget process in detail.
The Capital Improvement Program Process
The Capital Improvement Program (CIP) Committee, consisting of members from all City departments, annually prepares and updates the six-year CIP program. Projects proposed to be funded are reviewed by the CIP Committee as a part of the budget process to ensure that the City’s priorities are addressed and that staffing levels and projected revenues are in place to perform the projects.
The City Manager and Assistant City Manager review the CIP Committee’s prioritized list of proposed capital improvement projects and funding sources during the review of the operating budgets. The final Capital Improvement Program is presented during the budget workshops in May in conjunction with the City’s Annual Budget. The City Council adopts a resolution approving the fiscal year Capital Improvement Program, along with the operating budgets, in June.
Level of Control and Changes to Adopted Budget
Budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is exercised at the fund level. Administrative policies provide guidelines on budget transfers and the authorization necessary to implement transfers.
Generally, there are two types of budget transfers:
Budget Adjustment: This is a transfer which does not change the total appropriated amount within a fund and does not require Council action. Depending upon the budget category affected by the transfer, approval may be granted at the City Manager or Department Head level. Department Heads have discretion to reapportion funds between certain line items within a program but may not exceed total appropriated amounts for each program. Additional expenditures for capital outlay items must be approved by the City Manager and City Council. Funds appropriated for salaries and benefits may not be expended for any other purpose without approval by the City Manager. The City Manager may transfer funds within and between programs and departments (with the exception of additional capital outlay expenditures, which require Council approval).
Budget Amendment: This is an adjustment to the total appropriated amount within a fund which was not included in the original budget. These supplemental appropriations are presented to City Council in an agenda report and require the passage by a simple majority of the City Council for approval. Types of modifications can be categorized as follows:
x Unanticipated revenue which was not projected in the budget may be appropriated by Council for expenditure in the year received.
x Prior year reserves or fund balances may be appropriated to fund items not previously included in the adopted budget.
Reserves/fund balances exceeding minimum amounts required by administrative policies may be appropriated if it is determined to be in the best interest of the City. Council may also appropriate reserves in case of emergencies or unusual circumstances.
x Transfers between funds require a motion and agreement by the majority of the City Council.
Unexpended unencumbered appropriations automatically lapse at the end of the fiscal year and are included in the ending fund balance calculations within each fund.
49 The Budget Process
Budget Planning (December - January)
•Budget assumptions and policies are developed
•Budget instructions, training videos, and supporting information is published to budget website
•Capital Improvement Program development kickoff meeting Public Input and Priority Setting (January - March)
•City Council and Commissions meetings provide recommendations for budget development
•City Council sets direction for the development of work plans •City Council adopts the Long Term Financial Plan, which identifies and includes a financial impact on the City over the next five years.
Recommended alternatives to address critical areas are identified and adopted by the City Council and incorporated into the budget.
Staff Budget Development (January - March)
•Budget Kickoff/Staff Training Workshop
•Departments prepare base revenue and expenditure budgets by program, whereby expenditures and revenues are related to the Council and community goals identified during the Long Term Financial Plan and Strategic Priority processes.
•Decision packages are submitted for consideration. These include requests for reclassifications, new positions, new programs, or capital equipment.
Staff Budget Review (March - April)
•City Manager and Assistant City Manager review base budgets, decision package requests, and the CIP Budget.
•City Manager considers the projected amount of available resources, direction provided by the City Council, the City's fiscal policies and the most cost-effective and efficient method of service delivery to the public. •Proposed budget is finalized.
•Budget document is prepared, highlighting the major changes in the budget from the previous year.
Council Budget Review and Adoption (May - June)
•In May, the proposed budget is generally submitted for City Council review and a subsequent workshop is held.
•In June, a public hearing is held and the City Council adopts the budget by resolution
•Final Adopted Budget document is published and made available to the public after June
The 2022 LTFP was presented in
April 2022 alter than usual due to
pandemic/operational challenges.
50 Accounting Systems & Controls
Fund Accounting Structure
The accounts of the City are organized on the basis of funds, each fund is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. The funds utilized by the City are grouped into generic fund types (Governmental, Proprietary, and Fiduciary). Governmental funds are largely supported by general taxes. Proprietary funds are operated to recover the costs of operation through charges for services. Fiduciary funds are typically where the City acts in a trustee capacity on behalf of another person or entity. The categories within these fund types are summarized below:
Governmental Funds:
The General Fund is the general operating fund of the City. It is used to account for all financial resources traditionally associated with governments which are not required to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditures for specified purposes.
Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed through proprietary funds or fiduciary funds).
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs other than capitalized leases and compensated absences which are paid from the governmental funds. The only debt service fund of the City (Negocio Debt Service Fund) was closed in FY 2017-18.
Proprietary Funds:
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the City in using this type of fund is to determine that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost reimbursement basis.
Fiduciary Funds:
Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governments. Since activities recorded within these funds are outside the control of the City Council, these funds are not included within this budget document.
Fund Changes
In accordance with generally accepted accounting principles, the City annually reviews all funds to determine the minimum number of funds necessary for financial management and control. The City currently has 30 budgeted funds, including the General Fund. In FY 2019-20, the Disaster Relief Special Revenue Fund was added during the fiscal year to assist in tracking COVID-19 related costs. For FY 2021-22, the Transit Special Revenue Fund was added along with the In-Lieu Housing Capital Projects Fund based on City Council action during the LTFP process. During FY 2021-22, the Building Homes & Jobs Act Fund was added to address SB2 funding and the Permanent Local Housing Activities.
51 Accounting Systems & Controls
The following table provides a summary of the various funds of the City of San Clemente and includes both Major and NonMajor funds as reported in the City’s Comprehensive Annual Financial Report (CAFR). Additional information on each fund is available in various sections of this annual budget.
* Recognized as a major fund in the City’s CAFR. Major funds represent the significant activities of the City and basically include any fund’s revenues or expenditures, excluding other financing sources and uses constitute more than 10% of the City’s revenues or expenditures. The City can also select a major fund.
Funds not budgeted and excluded from the schedule above include the Employee Benefits Fund and the Pension Trust Fiduciary Fund.
Governmental Funds
General Fund* Special Revenue
Funds
Street
Improvement
Gas Tax
Miscellaneous
Grants
Air Quality
Improvement
Local Cable
Infrastructure
Police Grants
Disaster Relief
Transit Fund
Building Homes &
Jobs Act
Capital Projects
Funds
Parks Aquisition
and Development
Local Drainage
Facilities
RCFPP
Public Facilities
Construction Fee
Developers
Improvement
Reserve
Low/Moderate
Income Housing
In Lieu Housing
Fund
Proprietary Funds
Enterprise
Funds
Water Fund*
Sewer Fund*
Storm Drain
Clean Ocean
Solid Waste
Golf Course*
Internal Service
Funds
Central Services
Information
Technology
Fleet
Medical Insurance
Workers'
Compensation
General Liability
52 Accounting Systems & Controls
Budgetary Basis and Basis of Accounting
The budget constitutes the legal authority for expenditures. The annual budget is adopted with budgetary control at the fund level so expenditures may not legally exceed appropriations at that level of detail. Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Transfers or revision within funds are allowed, but only the City Council has the legal authority to increase or decrease a given fund’s annual budget. The Comprehensive Annual Financial Report (CAFR) shows the status of the City’s finances on the basis of “generally accepted accounting principles” (GAAP) and on a budgetary basis. In most cases, this conforms to the way the City prepares its budget.
Governmental fund types (General Fund, Special Revenue Funds, etc.) utilize the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available. Expenditures are recognized when the liability has been incurred, with the exception that principal and interest payments on general longterm debt are recognized when due. Budgets for governmental fund types are adopted on a basis consistent with GAAP.
Proprietary fund types, including Enterprise (Water, Sewer, etc.) and Internal Service Funds (Information Technology, Fleet Operating, etc.), are operated in a manner similar to private business enterprise. These funds use the accrual basis of accounting where revenues are recognized when earned and expenses are recognized when incurred. These funds are budgeted based on Net Working Capital to provide a more accurate picture of whether there is sufficient funding to cover the cost of current operations. Net Working Capital is essentially current assets minus current liabilities with capital assets excluded from the calculation. Exceptions from GAAP are as follows:
x Compensated absences liabilities, in Enterprise and Internal Service Funds, that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP) as opposed to being expended when paid (Budget).
x Pension receivable and payables that are not short term in nature are excluded from the new working capital calculation.
x Principal payments on long-term debt within Enterprise & Internal Service Funds are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. x Capital outlay within the Enterprise Funds are recorded as assets on a GAAP basis and expended on a Budget basis.
Financial Management
The City of San Clemente is committed to the highest standards of responsible financial reporting and management practices.
These standards are based on established financial principles and practices, formal fiscal policies and state law. These practices set forth the basic framework related to the core values of the City and to achieve Financial Sustainability addressed as follows:
Financial stability by taking a long-term approach to its finances by developing and maintaining long-term plans, carefully weighing the cost and benefits of development opportunities and adhering to sound debt, reserve and investment policies.
Quality of life and local economic vitality is maintained to ensure a safe and healthy atmosphere for its residents, businesses and visitors, while preserving and enhancing its unique cultural and environmental attributes.
Environmental and economic sustainability by supporting continued investment in physical infrastructure and facilities and by having policies and programs that support a clean and healthy natural environment.
Transparency and engagement for the community by producing planning and report mechanisms that make it clear how the City plans to use its resources to achieve the community vision. 53 Accounting Systems & Controls
The City, including the City Council, Mayor and staff work together to ensure that all financial matters of the City are addressed with care, integrity and in the best interest of the citizens. The City is committed to engaging the public as a partner in formulating plans and delivering services.
Established policies are presented in the Fiscal Policy section. The Fiscal Policy statements address the following:
x Operating Budget x Revenues
x Expenditures x Utility Rates and Fees
x Capital Improvement x Debt - Short term and Long Term x Fund Balance and Reserves x Investments
x Accounting, Auditing and Financial Reporting x Long Term Financial Planning x Risk Financing x Pension
The Fiscal Policy section also addresses State Proposition 4 (Gann Initiative), which places limits on the amount of revenue that can be spent by government agencies, and the City’s Debt Summary, which lists all outstanding debt of the City and related entities.
In addition to having Fiscal Policies in place, the City financial processes include procedures to maximize the financial resources of the City by focusing on Internal Controls throughout the City, and the proper allocation of costs to responsible departments through Interdepartmental Charges and the City’s Cost Allocation Plan. These charges are discussed in more detail in the following paragraphs.
Internal Controls
The City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and that the valuation of costs and benefits requires estimates and judgments by management.
Interdepartmental Charges
Interdepartmental charges are cost allocations for goods and services provided by one City department to another City department on a cost reimbursement basis. A fair and equitable methodology is determined for identifying and distributing direct and indirect cost from a service provider to the service consumer. As an example, Internal Service Funds receive revenues from other City departments for charges such as insurance, postage, duplicating, central services, data processing, communications, fleet rental, etc. These interdepartmental charges are established annually and are based generally upon actual use of the goods or services. Replacement charges to the Fleet Replacement Reserve and the Capital Equipment Replacement Reserve are based upon the anticipated cost of replacement. Replacement charges are allocated annually over the life of the vehicle or equipment.
Cost Allocation Plan
The Finance and Administrative Services Department annually produces a Cost Allocation Plan which is used to distribute General Fund administrative costs to the various City operations. The allocation of these costs is based on a variety of factors.
Examples include allocating (1) Human Resource costs based on the number of employees in the payroll system per department, (2) a portion of Finance costs based on the number of cash receipting transactions per fund, and (3) City Clerk costs based on a thirty-six month rolling average of agenda items by department. The cost allocation plan is based on prior fiscal year actual costs.
54 All Funds Budget Overview
Fiscal Year 2022-23
Where the Money Comes From*
(Total $153.1 million)
Where the Money Goes*
(Total $163.7 million)1
*All amounts are rounded
1 Fund Balance amounts are used for one-time costs.
Property Taxes
$41.0
Sales Taxes $13.0
Other Taxes $6.7
Service Charges
$44.1
Intergovernmental
$6.7
Interest & Rents
$5.1
Transfers $17.0
Permits & Fees
$1.4 Other Revenue
$18.0
Personnel $31.3
Contract Services
$60.1
Supplies $12.6
Other Charges
$17.5
Capital $18.4 Interfund
Payments $19.3
Debt Service $4.4
All numbers show in millions
55 56
Beginning FY 2022-23 FY 2022-23 Ending Changes in %
Balance Revenues Expenditures Balance Balances Change
General Fund 21,531,493 76,593,490 81,159,560 16,965,423 (4,566,070) -21% Special Revenue Funds
Street Improvement 1,346,550 1,739,670 2,896,470 189,750 (1,156,800) -86% Gas Tax 1,505,280 3,595,390 4,786,630 314,040 (1,191,240) -79% Miscellaneous Grants 370,360 338,900 378,070 331,190 (39,170) -11% Disaster Relief 1,331,400 478,000 1,750,000 59,400 (1,272,000) 0% Air Quality Improvement 422,920 86,000 80,000 428,920 6,000 1% Local Cable Infrastructure 762,340 214,000 7,290 969,050 206,710 27% Police Grants 239,650 166,280 192,330 213,600 (26,050) -11% Local Transit Program Grants 164,090 766,100 762,520 167,670 3,580 0% Building Homes & Jobs Act (SB2) Fun 0 482,870 482,000 870 870 0% Capital Project Funds
Parks Acquisition & Dev. 1,030,660 63,000 82,760 1,010,900 (19,760) -2% Local Drainage Facilities 1,654,980 392,500 1,076,090 971,390 (683,590) -41% RCFPP 500,660 320,000 805,720 14,940 (485,720) -97%
Public Facilities Construction Fee 1,267,670 74,000 495,920 845,750 (421,920) -33% Developers Improvement 4,681,000 187,880 15,120 4,853,760 172,760 4% In-Lieu Housing 10,776,250 50,000 7,430 10,818,820 42,570 100% Low/ Moderate Income Housing 2,508,080 7,000 48,160 2,466,920 (41,160) -2% Reserve 10,118,060 1,476,760 1,360,000 10,234,820 116,760 1% Enterprise Funds
Water - Operating 7,101,788 25,547,195 26,123,560 6,525,423 (576,365) -8% - Depreciation Reserve 4,820,761 5,802,134 3,437,150 7,185,745 2,364,984 49% - Acreage Fee 866,397 63,148 510,580 418,965 (447,432) -52% - Other Agency 5,135,204 796,273 1,308,130 4,623,347 (511,857) -10% Sewer - Operating (31,943) 11,684,661 11,383,940 268,778 300,721 -941% - Depreciation Reserve 4,876,442 3,278,020 4,291,150 3,863,312 (1,013,130) -21% - Connection Fee 2,856,438 74,989 519,990 2,411,437 (445,001) -16% - Other Agency 1,060,073 195,830 263,790 992,113 (67,960) -6% Storm Drain - Operating (62,463) 1,773,792 1,662,130 49,199 111,662 -179% - Depreciation Reserve 1,552,443 921,258 1,199,280 1,274,421 (278,022) -18% Solid Waste Management 414,970 201,850 247,250 369,570 (45,400) -11% Golf - Operating 396,250 2,455,200 2,754,970 96,480 (299,770) -76% - Depreciation Reserve 3,327,441 265,478 115,510 3,477,409 149,968 5% - Capital Improvement 1,678,659 242,322 312,620 1,608,361 (70,298) -4% Clean Ocean 157,720 1,314,070 1,470,280 1,510 (156,210) -99% Internal Service Funds
Central Services 276,750 435,950 551,900 160,800 (115,950) -42% Information Technology 1,154,570 2,023,660 2,115,520 1,062,710 (91,860) -8% Contract Fleet Services 48,502 1,225,185 1,273,090 597 (47,905) -99% Fleet Replacement Reserve 5,074,458 601,145 442,410 5,233,193 158,735 3% Medical Insurance 173,000 3,905,440 3,911,680 166,760 (6,240) -4% Workers' Compensation 1,975,740 510,000 559,450 1,926,290 (49,450) -3% General Liability Self Insurance 5,753,860 2,763,000 2,812,350 5,704,510 (49,350) -1% Total All Funds 108,818,503 153,112,440 163,652,800 98,278,143 (10,540,360) -10% All Funds Budget Summary
57 Beginning Receipts Fines &
Fund Permit from Otr Charges Interest Internal Other Total Fund Description Balance Taxes & Fees Agencies for Svcs. & Rentals Transfers Revenues Budget General $21,531,493 $60,497,230 $1,165,530 $585,940 $6,258,340 $3,194,280 $4,280,160 $612,010 $98,124,983 Special Revenue:
Street Improvement 1,346,550 0 0 964,670 0 75,000 700,000 0 3,086,220 Gas Tax 1,505,280 0 0 3,409,200 0 76,600 109,590 0 5,100,670 Miscellaneous Grants 370,360 0 0 328,900 0 0 0 10,000 709,260 Building Homes & Jobs (SB2) F 0 0 0 482,870 0 0 0 0 482,870 Disaster Relief 1,331,400 0 0 0 0 3,000 475,000 0 1,809,400 Air Quality Imprvmnt. 422,920 0 0 84,000 0 2,000 0 0 508,920 Local Cable Infrastructure 762,340 200,000 0 0 0 14,000 0 0 976,340 Police Grants 239,650 0 0 161,280 0 5,000 0 0 405,930
Local Transit Program Grants 164,090 0 0 565,600 0 500 200,000 0 930,190 6,142,590 200,000 0 5,996,520 0 176,100 1,484,590 10,000 14,009,800 Capital Projects:
Parks Acquis. & Dev. 1,030,660 0 40,000 0 0 23,000 0 0 1,093,660 Local Drainage Fac. 1,654,980 0 500 0 0 42,000 350,000 0 2,047,480 RCFPP 500,660 0 8,000 0 0 12,000 300,000 0 820,660
Pub. Facilities Const. 1,267,670 0 38,000 0 0 36,000 0 0 1,341,670 Developers Imprvmnt. 4,681,000 0 122,880 0 0 65,000 0 0 4,868,880 In-Lieu Housing 10,776,250 0 0 0 0 50,000 0 0 10,826,250 Low/Mod Income Housing 2,508,080 0 0 0 0 7,000 0 0 2,515,080 Reserve 10,118,060 0 0 0 0 200,000 1,251,970 24,790 11,594,820 32,537,360 0 209,380 0 0 435,000 1,901,970 24,790 35,108,500 Enterprise:
Water- Operating 7,101,788 0 0 137,500 24,157,610 138,675 0 1,113,410 32,648,983 - Depr. Reserve 4,820,761 0 0 0 0 94,134 2,000,000 3,708,000 10,622,895 - Acreage Fee 866,397 0 46,230 0 0 16,918 0 0 929,545
- Other Agency 5,135,204 0 0 0 0 100,273 0 696,000 5,931,477 Sewer- Operating (31,943) 0 1,000 0 10,127,500 (839) 1,550,000 7,000 11,652,718 - Depr. Reserve 4,876,442 0 0 0 0 128,020 0 3,150,000 8,154,462 - Conn. Fee 2,856,438 0 0 0 0 74,989 0 0 2,931,427
- Other Agency 1,060,073 0 0 0 0 27,830 0 168,000 1,255,903 Storm Drain Utility (62,463) 50 0 0 1,170,000 (1,258) 600,000 5,000 1,711,329 - Depr. Reserve 1,552,443 0 0 0 0 31,258 0 890,000 2,473,701 Solid Waste Mgmt 414,970 0 9,000 16,150 155,000 4,500 0 17,200 616,820 Golf - Operating 396,250 0 0 0 1,988,000 467,200 0 0 2,851,450 - Depr. Reserve 3,327,441 0 0 0 0 18,478 35,000 212,000 3,592,919 - Capital Impr. 1,678,659 0 0 0 0 9,322 0 233,000 1,920,981 Clean Ocean 157,720 70 0 0 0 12,000 1,000,000 302,000 1,471,790 34,150,180 120 56,230 153,650 37,598,110 1,121,500 5,185,000 10,501,610 88,766,400 Internal Service:
Central Services 276,750 0 0 0 50,500 4,000 381,450 0 712,700 Information Technology 1,154,570 0 0 0 0 14,000 2,009,660 0 3,178,230 Fleet- Operating 48,502 0 0 0 0 3,805 1,220,380 1,000 1,273,687 - Replacement 5,074,458 0 0 0 0 81,195 519,950 0 5,675,603 Medical Insurance 173,000 0 0 0 227,000 1,000 0 3,677,440 4,078,440 Worker's Comp. 1,975,740 0 0 0 0 25,000 0 485,000 2,485,740 General Liability Self Ins. 5,753,860 0 0 0 0 75,000 0 2,688,000 8,516,860 14,456,880 0 0 0 277,500 204,000 4,131,440 6,851,440 25,921,260 Total All Funds $108,818,503 $60,697,350 $1,431,140 $6,736,110 $44,133,950 $5,130,880 $16,983,160 $17,999,850 $261,930,943 All Funds Summary-Revenues by Category
58 Ending
Contractual Other Capital Interfund Debt Fund Total
Fund Description Personnel Supplies Services Charges Outlay Payments Service Balance Budget General $20,315,820 $1,217,800 $43,379,660 $1,485,720 $3,981,890 $7,472,420 $3,306,250 $16,965,423 $98,124,983 Special Revenue:
Street Improvement 0 0 625,000 0 2,190,000 81,470 0 189,750 3,086,220 Gas Tax 0 0 25,000 59,000 3,820,000 882,630 0 314,040 5,100,670 Miscellaneous Grants 16,350 0 174,500 44,000 130,000 13,220 0 331,190 709,260 Building Homes & Jobs Act (SB 170,000 0 312,000 0 0 0 0 870 482,870 Disaster Relief 450,000 0 0 0 500,000 800,000 0 59,400 1,809,400 Air Quality Imprvmnt. 0 0 80,000 0 0 0 0 428,920 508,920 Local Cable Infrastructure 0 0 0 0 0 7,290 0 969,050 976,340 Police Grants 0 0 161,300 31,030 0 0 0 213,600 405,930
Local Transit Program Grants 0 0 723,290 0 0 39,230 0 167,670 930,190 636,350 0 2,101,090 134,030 6,640,000 1,823,840 0 2,674,490 14,009,800 Capital Projects:
Parks Acquis. & Dev. 0 0 0 0 70,000 12,760 0 1,010,900 1,093,660 Local Drainage Fac. 0 0 0 0 1,050,000 26,090 0 971,390 2,047,480 RCFPP 0 0 0 0 700,000 105,720 0 14,940 820,660
Pub. Facilities Const. 0 0 0 0 0 495,920 0 845,750 1,341,670 Developers Imprvmnt. 0 0 0 0 0 15,120 0 4,853,760 4,868,880 In-Lieu Housing 0 0 0 0 0 7,430 0 10,818,820 10,826,250 Low/Mod Income Housing 0 0 30,000 0 0 18,160 0 2,466,920 2,515,080 Reserve 260,000 0 0 0 1,100,000 0 0 10,234,820 11,594,820 260,000 0 30,000 0 2,920,000 681,200 0 31,217,300 35,108,500 Enterprise:
Water- Operating 3,946,900 9,666,720 3,311,580 4,633,080 0 3,664,660 900,620 6,525,423 32,648,983 - Depr. Reserve 0 0 1,025,000 0 2,200,000 212,150 0 7,185,745 10,622,895 - Acreage Fee 0 0 0 0 500,000 10,580 0 418,965 929,545
- Other Agency 0 0 1,300,000 0 0 8,130 0 4,623,347 5,931,477 Sewer- Operating 3,133,900 954,700 2,689,410 3,372,540 0 1,233,390 0 268,778 11,652,718 - Depr. Reserve 0 0 1,900,000 0 800,000 1,591,150 0 3,863,312 8,154,462 - Conn. Fee 0 0 0 0 500,000 19,990 0 2,411,437 2,931,427 - Other Agency 0 0 50,000 0 0 213,790 0 992,113 1,255,903 Storm Drain Utility 462,090 11,900 176,920 890,520 0 120,700 0 49,199 1,711,329 - Depr. Reserve 0 0 200,000 0 0 999,280 0 1,274,421 2,473,701 Solid Waste Mgmt 121,920 15,400 37,000 20,800 0 52,130 0 369,570 616,820 Golf - Operating 1,090,560 158,850 608,960 352,970 0 408,630 135,000 96,480 2,851,450 - Depr. Reserve 0 0 0 0 105,000 10,510 0 3,477,409 3,592,919 - Capital Impr. 0 0 0 0 300,000 12,620 0 1,608,361 1,920,981 Clean Ocean 146,820 15,100 842,010 241,250 0 225,100 0 1,510 1,471,790 8,902,190 10,822,670 12,140,880 9,511,160 4,405,000 8,782,810 1,035,620 33,166,070 88,766,400 Internal Service:
Central Services 69,120 49,890 310,520 540 0 85,130 36,700 160,800 712,700 Information Technology 1,005,440 1,850 831,210 15,700 85,000 176,320 0 1,062,710 3,178,230 Fleet- Operating 0 511,950 700,080 0 0 61,060 0 597 1,273,687 - Replacement 0 0 0 0 412,530 29,880 0 5,233,193 5,675,603 Medical Insurance 0 0 2,650 3,818,300 0 90,730 0 166,760 4,078,440 Worker's Comp. 0 10,150 7,500 505,000 0 36,800 0 1,926,290 2,485,740 General Liability Self Ins. 138,460 650 579,150 2,051,950 0 42,140 0 5,704,510 8,516,860 1,213,020 574,490 2,431,110 6,391,490 497,530 522,060 36,700 14,254,860 25,921,260 Total All Funds $31,327,380 $12,614,960 $60,082,740 $17,522,400 $18,444,420 $19,282,330 $4,378,570 $98,278,143 $261,930,943 All Funds Summary-Expenditures by Category
59 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Percent
Description Actual Adj Budget Projected Budget Change
General $70,176,690 $73,879,370 $74,796,650 $76,593,490 4% Special Revenue:
Street Improvement 1,671,318 1,799,670 1,734,270 1,739,670 -3% Gas Tax 2,963,629 4,829,510 4,277,020 3,595,390 -26%
Miscellaneous Grants 572,815 1,211,200 1,187,510 338,900 -72% Building Homes & Jobs Act (SB2) Fund 0 482,870 0 482,870 0% Disaster Relief 932,469 7,493,800 7,516,800 478,000 -94% Air Quality Improvement 155,176 599,580 481,200 86,000 -86% Local Cable Infrastructure 207,627 227,000 213,500 214,000 -6% Police Grants 157,284 161,700 168,160 166,280 3%
Local Transit Program Grants 0 865,120 878,370 766,100 -11% Total Special Revenue 6,660,318 17,670,450 16,456,830 7,867,210 -55% Capital Projects:
Parks Acquisition & Dev. 78,921 70,000 105,660 63,000 -10% Local Drainage Facilities 7,342 60,500 40,520 392,500 549% R C F P P 6,775 19,000 101,890 320,000 1584%
Public Facilities Construction Fee 332,754 154,940 71,300 74,000 -52% Developers Improvement 378,114 373,880 531,810 187,880 -50% In-Lieu Housing Fund 0 10,497,620 10,776,250 50,000 -100% Low/Moderate Income Housing 102,692 9,000 7,000 7,000 -22% Reserve 2,284,433 1,392,910 1,398,820 1,476,760 6%
Total Capital Projects 3,191,031 12,577,850 13,033,250 2,571,140 -80% Enterprise:
Water - Operating 25,852,346 24,710,725 24,634,638 25,547,195 3% - Depreciation Reserve 4,686,707 4,697,508 4,680,421 5,802,134 24% - Acreage Fee Reserve 16,458 42,059 82,597 63,148 50%
- Other Agency 730,623 768,658 760,354 796,273 4%
Sewer - Operating 10,754,230 12,113,869 11,802,097 11,684,661 -4% - Depreciation Reserve 3,212,064 3,306,528 3,277,542 3,278,020 -1% - Connection Fee Reserve (189,215) 93,037 75,808 74,989 -19% - Other Agency 203,230 195,066 190,053 195,830 0%
Storm Drain Utility - Operating 1,527,135 1,426,095 1,424,207 1,773,792 24% - Depreciation Reserve 982,813 926,955 916,793 921,258 -1% Solid Waste Management 270,389 201,850 259,220 201,850 0% Golf - Operating 2,686,687 2,742,720 2,654,580 2,455,200 -10% - Depreciation Reserve 236,231 259,841 258,741 265,478 2% - Capital Improvement Reserve 148,953 142,579 142,579 242,322 70% Clean Ocean 1,187,554 1,062,460 692,390 1,314,070 24%
Total Enterprise 52,306,205 52,689,950 51,852,020 54,616,220 4% Internal Service:
Central Services 524,467 490,800 490,800 435,950 -11%
Information Technology 2,032,593 2,031,660 2,028,670 2,023,660 0% Fleet - Operating 996,532 1,043,932 1,043,172 1,225,185 17% - Replacement Reserve 581,939 653,408 592,568 601,145 -8% Medical Insurance 3,310,798 3,949,500 3,310,040 3,905,440 -1% Workers' Compensation 501,983 520,000 516,300 510,000 -2% General Liability Self Insurance 2,728,540 2,764,000 2,740,260 2,763,000 0% Total Internal Service 10,676,852 11,453,300 10,721,810 11,464,380 0% Total All Funds * $143,011,096 $168,270,920 $166,860,560 $153,112,440 -9% *Excludes Fund Balances
Budget Comparisons By Fund - Revenues
60 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Percent
Description Actual Adj Budget Projected Budget Change
General $68,235,134 $81,279,220 $79,793,830 $81,159,560 0% Special Revenue:
Street Improvement 3,437,102 7,195,430 6,875,430 2,896,470 -60% Gas Tax 3,401,326 9,407,530 8,978,180 4,786,630 -49%
Miscellaneous Grants 576,663 1,201,200 1,173,760 378,070 -69% Building Homes & Jobs Act (SB2) Fund 0 482,870 0 482,000 0% Disaster Relief 1,130,496 6,456,020 6,447,500 1,750,000 -73% Air Quality Improvement 13,064 156,290 156,290 80,000 -49% Local Cable Infrastructure 6,617 708,370 708,370 7,290 -99% Police Grants 155,000 197,730 190,730 192,330 -3%
Local Transit Program Grants 0 787,950 714,280 762,520 -3% Total Special Revenue 8,720,268 26,593,390 25,244,540 11,335,310 -57% Capital Projects:
Parks Acquisition & Dev. 9,102 898,010 898,010 82,760 -91% Local Drainage Facilities 155,260 1,992,970 1,992,970 1,076,090 -46% R C F P P 147,635 520,910 520,910 805,720 55%
Public Facilities Construction Fee 3,031,060 2,115,380 2,115,380 495,920 -77% Developers Improvement 612,781 10,700,570 10,832,430 15,120 -100% In-Lieu Housing Fund 0 0 0 7,430 100%
Low/Moderate Income Housing 14,625 260,130 260,130 48,160 -81% Reserve 812,129 6,717,100 6,661,820 1,360,000 -80%
Total Capital Projects 4,782,592 23,205,070 23,281,650 3,891,200 -83% Enterprise:
Water - Operating 23,868,766 25,016,660 24,506,840 26,123,560 4% - Depreciation Reserve 3,793,446 12,134,350 11,875,420 3,437,150 -72% - Acreage Fee Reserve 14,110 2,516,080 2,516,080 510,580 -80% - Other Agency 1,960,232 1,464,610 1,464,610 1,308,130 -11% Sewer - Operating 10,800,337 11,628,860 11,308,240 11,383,940 -2% - Depreciation Reserve 2,514,473 11,758,320 10,812,250 4,291,150 -64% - Connection Fee Reserve 77,200 4,596,300 4,596,300 519,990 -89% - Other Agency 1,235,543 1,276,010 1,276,010 263,790 -79% Storm Drain Utility - Operating 1,608,697 1,776,250 1,697,360 1,662,130 -6% - Depreciation Reserve 292,132 1,994,350 1,921,780 1,199,280 -40% Solid Waste Management 221,550 438,140 415,350 247,250 -44% Golf - Operating 2,293,147 2,624,810 2,523,960 2,754,970 5% - Depreciation Reserve 127,029 100,220 99,020 115,510 15% - Capital Improvement Reserve 8,100 74,380 74,380 312,620 320% Clean Ocean 3,379,017 2,850,170 2,339,090 1,470,280 -48% Total Enterprise 52,193,779 80,249,510 77,426,690 55,600,330 -31% Internal Service:
Central Services 462,038 535,590 502,930 551,900 3%
Information Technology 1,928,032 2,281,950 1,928,000 2,115,520 -7% Fleet - Operating 992,866 1,223,240 1,206,840 1,273,090 4% - Replacement Reserve 226,661 2,254,380 2,212,380 442,410 -80% Medical Insurance 3,295,962 3,905,340 3,309,840 3,911,680 0% Workers' Compensation 267,305 845,290 841,550 559,450 -34% General Liability Self Insurance 2,396,195 3,592,830 3,447,970 2,812,350 -22% Total Internal Service 9,569,059 14,638,620 13,449,510 11,666,400 -20% Total All Funds * $143,500,832 $225,965,810 $219,196,220 $163,652,800 -28% *Excludes Fund Balances
Budget Comparisons By Fund - Expenditures
61 62
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Fund Balances $161,643,869 $161,154,163 $161,154,163 $108,818,503 -32% Property Taxes 38,051,553 38,697,340 39,029,220 40,993,350 6% Transient Occupancy Tax 2,306,752 2,290,000 2,885,000 3,005,000 31% Sales Tax 12,101,085 12,181,000 12,445,000 12,995,000 7% Franchise Fees 2,595,173 2,684,000 2,635,500 2,659,000 -1% Business License Tax 1,134,658 980,000 1,010,050 1,045,000 7% Total Taxes 56,189,221 56,832,340 58,004,770 60,697,350 7% Construction Permits 1,208,127 1,168,800 1,178,000 991,740 -15% Developer Fees 30,488 219,320 294,260 247,610 13%
Alarm Permits 75,120 84,000 80,000 80,000 -5%
Miscellaneous Permits & Fees 155,984 118,370 209,240 111,790 -6% Total Permit & Fees 1,469,719 1,590,490 1,761,500 1,431,140 -10% Grants 2,362,996 12,771,510 12,812,480 1,996,240 -84%
Motor Vehicle Tax 47,366 33,000 60,000 70,000 112%
Gas Tax Allocations 2,604,792 2,951,000 2,951,000 3,331,200 13% Subventions 232,518 233,000 231,500 236,500 2%
Measure M Apportionment 1,208,057 964,670 964,670 964,670 0% Miscellaneous 140,075 287,500 285,530 137,500 -52%
Total Intergovernmental 6,595,804 17,240,680 17,305,180 6,736,110 -61% Development Permits & Fees 117,353 123,700 101,000 122,200 -1% Plan Check Fees 1,003,141 765,000 712,500 733,000 -4%
General Service Charges 205,446 244,050 202,720 234,130 -4% Imaging of Documents 51,274 50,150 50,150 50,500 1%
Weed Assessments 4,140 13,000 12,500 13,000 0%
Abatement Reimbursements 34,386 500 103,730 130,150 25930% Ambulance Service Charges 1,779,628 1,728,500 1,801,000 1,878,500 9% Public Safety Service Charges 0 700 0 700 0%
Marine Safety Program Fees 126,613 189,780 203,010 202,660 7% Parking Meters & Permits 1,173,530 1,174,500 1,200,000 1,210,000 3% Solid Waste Service Charges 214,084 130,000 130,000 130,000 0% Storm Drain Service Charges 1,169,129 1,168,000 1,170,000 1,170,000 0% Sewer Service Charges 9,753,828 10,112,500 9,800,000 10,127,500 0% Water Service Charges 24,444,404 23,377,450 23,254,020 24,157,610 3% Inspection Fees 175,338 173,500 158,500 87,500 -50%
Recreation Program Fees 1,260,690 1,771,600 1,913,530 1,898,500 7% Golf Fees 2,303,054 2,238,900 2,138,000 1,988,000 -11%
Urban Runoff Mgmt Fees (5,652) 650,000 0 0 -100%
Total Service Charges 43,810,386 43,911,830 42,950,660 44,133,950 1% Parking Violations 347,197 660,000 572,000 625,000 -5%
Vehicle Code & Court Fines 133,962 125,500 129,500 139,500 11% Other Fines 52,871 61,450 54,200 56,000 -9%
Total Fines 534,030 846,950 755,700 820,500 -3%
Investment Earnings & Interest 549,379 2,177,800 1,757,650 1,779,600 -18% Rents & Concessions 2,221,214 3,458,630 3,207,480 3,351,280 -3% Total Interest & Rents 2,770,593 5,636,430 4,965,130 5,130,880 -9% Miscellaneous Income 1,520,030 1,276,890 1,309,670 1,283,910 1% Debt Proceeds 0 0 0 100,000 100%
Depreciation Funding 9,008,576 8,792,000 8,792,000 8,957,000 2% Sales of Assets 5,161 40,000 0 0 -100%
Transfers from Other Funds 7,184,509 17,459,330 16,970,630 9,208,990 -47% Internal Service Fund Charges 7,629,770 7,789,980 7,789,980 7,774,170 0% Premiums & Reimbursements 6,293,297 6,854,000 6,255,340 6,838,440 0% Total Other Revenues & Financing Sources 31,641,343 42,212,200 41,117,620 34,162,510 -19% Total Revenues* $143,011,096 $168,270,920 $166,860,560 $153,112,440 -9% *excluding fund balances
All Fund Revenues Summary
63 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 Taxes
Current Year Secured Taxes $27,930,707 $28,668,000 $28,850,000 $30,423,000 6% Current Year Unsecured Taxes 810,100 770,000 870,000 930,000 21% Supp. Roll Property Taxes 527,095 505,000 510,000 515,000 2% ERAF Property Taxes 7,573,602 7,887,000 7,880,000 8,390,000 6% Prior Year Secured & Unsecured 218,608 161,000 175,000 165,000 2% Property Tax Admin. Charge (182,887) (183,000) (185,000) (200,000) 9% Transient Occupancy Tax 1,714,461 1,800,000 2,275,000 2,350,000 31% Transient Occupancy Tax Vacation Rental 592,291 490,000 610,000 655,000 34% General Sales Tax 11,612,960 11,725,000 11,950,000 12,460,000 6% P.S. Sales Tax Augmentation 488,125 456,000 495,000 535,000 17% Property Transfer Tax 1,095,963 830,000 870,000 710,000 -14% Penalty & Interest - Delqnt. Prop. Tax 78,006 59,000 59,000 60,000 2% Penalty & Interest - Delqnt. Prop. Assmt. 324 340 220 350 3% Assessments Prior Year 35 0 0 0 0%
San Diego Gas & Electric 698,062 750,000 750,000 750,000 0% Southern California Gas 159,675 131,000 131,000 138,000 5% Cox Communications 1,003,597 1,075,000 1,040,000 1,040,000 -3% CR&R 493,946 478,000 478,000 490,000 3%
Other Franchise Fees 219,503 232,000 218,000 222,000 -4% Parimutual Taxes 20,390 18,000 18,500 19,000 6%
Business License Tax 1,056,433 900,000 920,050 950,000 6% Home Occupation Permit 78,225 80,000 90,000 95,000 19%
Total Taxes 56,189,221 56,832,340 58,004,770 60,697,350 7% Permit & Fees
Building Permits 500,259 580,000 510,000 500,000 -14%
Disability Access/Educ Fee 20,530 19,800 18,000 19,800 0% Electrical Permits 344,835 290,000 340,000 250,000 -14% Mechanical Permits 81,891 80,000 110,000 65,000 -19%
Plumbing Permits 239,222 179,000 180,000 140,800 -21%
Grading Permits 21,390 20,000 20,000 16,140 -19%
Sewer Permits 300 1,000 1,000 1,000 0%
Bridge Maintenance Contribution 122,399 122,880 124,010 122,880 0% STLU Permit Fee 17,640 17,220 16,200 17,640 2%
Street Encroachment Permits 123,288 90,000 90,000 75,000 -17% Trash Bin Permits 9,150 9,000 9,000 9,000 0%
Alarm Permits 75,120 84,000 80,000 80,000 -5%
Park Fees 73,759 40,000 85,000 40,000 0%
Public Safety Construction Fees 22,643 43,520 30,000 30,000 -31% Civic Center Const Fund Fees 6,097 11,420 8,000 8,000 -30% Storm Drain Fees - Other Areas 606 500 60 500 0%
Storm Drain Fees - Segunda Des. 1,660 0 960 0 0%
Sewer Connection Fees (196,983) 0 0 0 0%
RCFPP Impact Fees 5,361 0 91,890 8,000 100%
Water Acreage Fees 307 1,000 46,230 46,230 4523%
Miscellaneous Permits 245 1,150 1,150 1,150 0%
Total Permit & Fees 1,469,719 1,590,490 1,761,500 1,431,140 -10% All Fund Revenues By Line Item
64 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Revenues By Line Item
Intergovernmental
CDBG Home Rehab 0 125,180 125,180 70,000 -44%
Public Fac/Infrastructure Grant 5,482 770,010 770,010 130,000 -83% Commercial Rehab Grant 0 33,290 14,000 14,000 -58%
Public Services Grant 48,999 53,400 49,000 49,000 -8%
CDBG Administration Grant 33,535 64,890 64,890 65,900 2% Other Federal Grants 121,726 7,491,800 7,641,800 0 -100% Mandated Cost Reimbursement 15,982 15,000 16,500 16,500 10% S.O.N.G.S. Grant 212,589 163,440 163,440 163,440 0%
State Sand Replenishment Grant 231,000 0 0 0 0%
Coastal Conservatory Grant 0 0 0 200,000 100%
Other State Grants 988,878 420,150 515,870 16,150 -96%
State Planning Grant 0 701,870 219,000 482,870 -31%
Motor Vehicle Tax 47,366 33,000 60,000 70,000 112%
Vehicle Pollution Reduction Fees 84,329 80,000 80,000 84,000 5% 2031 Gas Tax Allocations 1,187,196 1,278,320 1,278,320 1,460,000 14% 2106 Gas Tax Allocation 204,994 231,800 231,800 254,690 10% Motor Vehicle Fuel Tax 2103 430,867 577,780 577,780 630,980 9% 2105 Gas Tax Allocation 329,018 376,490 376,490 413,340 10% 2107 Gas Tax Allocation 445,217 479,110 479,110 564,690 18% 2107.5 Gas Tax Allocation 7,500 7,500 7,500 7,500 0%
Homeowners Exempt. Subvention 132,207 138,000 135,000 136,000 -1% State COPS Grant 156,731 156,700 157,660 161,280 3%
CDBG CV Grant 485,262 154,430 154,430 0 -100%
Measure M - GMA Grant 182,606 0 0 0 0%
OCTA Senior Transportation 78,787 78,000 78,000 78,000 0% Trolley Transit Program 0 374,620 374,620 382,720 2%
Other County Grants 7 2,183,730 2,484,580 182,880 -92%
Measure M/M2 Turnback App. 1,025,451 964,670 964,670 964,670 0% Other Governmental Revenues 0 150,000 148,030 0 -100%
MWD Reclaimed Water Credit 140,075 137,500 137,500 137,500 0% Total Intergovernmental 6,595,804 17,240,680 17,305,180 6,736,110 -61% Service Charges
Const & Demo Admin Fees 28,920 25,000 25,000 25,000 0%
Business License Processing Fee 56,440 61,000 52,100 61,000 0% Building Plan Check Fees 645,375 455,000 455,000 455,000 0% Planning Plan Check Fees 80,725 80,000 70,000 80,000 0% Transportation Permits 1,738 1,200 1,200 1,200 0%
Improvement Plan Check Fees 64,436 72,000 40,000 40,000 -44% Landscape Plan Check Fees 1,557 1,500 2,000 1,500 0%
SFR Plan Check Fees 66,949 40,000 40,000 40,000 0%
Reproduction of Documents 1,704 1,300 1,500 1,400 8%
Imaging of Documents 51,274 50,150 50,150 50,500 1%
Map Sales 2 50 20 30 -40%
Bad Check Service Charges 5,240 4,500 4,500 4,500 0%
Other Planning Service Fees 8,834 12,500 6,000 12,500 0% Planning - CC Applications 3,652 5,500 5,500 5,500 0%
Planning - PC Applications 97,318 77,000 62,000 77,000 0% Planning - ZA Applications 17,485 16,000 13,000 16,000 0% Planning - Admin Applications 25,644 18,000 25,000 18,000 0% Traffic Model Fees 0 700 700 700 0%
Traffic Review Fees 0 500 200 500 0%
65 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Revenues By Line Item
General Plan Update Fees 20,103 18,000 14,000 18,000 0% Late Payment Charges (2,137) 100,000 0 100,000 0%
Retiree Premiums 196,588 235,000 195,000 225,000 -4%
Cobra Premiums 174 2,000 500 2,000 0%
Weed Assessments - Current Year 4,140 12,000 12,500 12,000 0% Weed Assessments - Prior Year 0 1,000 0 1,000 0%
Nuisance Abatement Reimb. 34,216 250 103,700 130,000 51900% Sign Storage Fee 170 250 30 150 -40%
Ambulance Service Charges 1,752,538 1,700,000 1,775,000 1,850,000 9% Ambulance Subscription Fees 26,980 26,000 26,000 26,000 0% Ambulance GEMT Reimb 110 2,500 0 2,500 0%
Special Lifeguard Services 903 1,200 5,500 6,000 400%
Junior Lifeguard Services 117,160 171,080 177,120 177,660 4% Special Beach Events Fees 4,475 12,000 13,000 13,500 13% Lifeguard Training Class 0 0 1,890 0 0%
Film Permit Fees 4,075 5,500 5,500 5,500 0%
Visa Letter Service 0 100 0 100 0%
Police Duplication Fees 0 300 0 300 0%
Other Police Dept. Service Charges 0 300 0 300 0%
Parking Meters 1,033,820 1,000,000 1,000,000 1,000,000 0% Parking Permits 139,710 174,500 200,000 210,000 20%
Const & Demo Recycle Fee - Forfeited 127,250 60,000 60,000 60,000 0% Commercial Recycling Charges 86,834 70,000 70,000 70,000 0% Sewer Commodity Fees 4,118,276 4,372,500 4,130,000 4,387,500 0% Sewer Base Fees 5,635,552 5,740,000 5,670,000 5,740,000 0% Effluent Water Sales 1,713,597 1,720,950 1,720,950 1,721,830 0% Public Works Inspection Fees 0 1,500 1,500 1,500 0%
Engineering Plan Review 3,056 6,000 3,000 4,500 -25%
Construction Inspection Fees 164,519 165,000 150,000 80,000 -52% Engr. & Geotech. Reimbursements 6,385 3,000 3,000 2,000 -33% Other Engineering Service Fees 4,434 4,000 4,000 4,000 0% OHBC Pool Programs & Admin Fees 15,322 10,000 8,000 8,000 -20% SCAC Pool Programs & Admin Fees 159,038 170,000 170,000 170,000 0% OHBC Contract Pool Class Fees 14,783 45,000 75,000 25,000 -44% OHBC Contract Class Fees 0 0 6,000 40,000 100%
SCAC Contract Pool Class Fees 60,584 270,000 270,000 270,000 0% Comm. Center Contract Class Fees 228,949 285,000 285,000 285,000 0% Offsite Contract Class Fees 72,264 118,000 118,000 118,000 0% Recreation Sports Fees 35,318 150,000 120,000 150,000 0% VHSP Contract Land Class Fees 88,280 132,000 132,000 132,000 0% Park Class Fees 230,673 225,000 312,000 275,000 22%
Beach Class Fees 278,203 200,000 246,000 265,000 33%
Street Banner Fees 3,670 13,000 13,000 13,000 0%
Processing Fee 4,230 3,000 3,000 3,000 0%
Recreation Special Events 20,854 16,100 21,030 25,000 55% Fun on the Run Program Revenues 6 4,500 4,500 4,500 0%
After School Programming 48,516 130,000 130,000 115,000 -12% Greens Fees 2,204,820 2,160,900 2,060,000 1,910,000 -12% Registration Card/Ticket Sales 90,836 70,000 70,000 70,000 0% Golf Tournament Surcharge Fee 1,428 4,000 4,000 4,000 0% Golf Cart Registration 5,970 4,000 4,000 4,000 0%
Metered Water Sales 15,682,197 14,558,000 14,558,000 15,020,000 3% 66 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Revenues By Line Item
Fixed Water Service Charges 6,800,318 6,783,000 6,783,000 7,100,000 5% Hydrant Meter Water Sales 33,630 30,000 30,000 30,000 0% Water Application Fee 74,240 65,000 65,000 65,000 0%
Backflow Testing Admin Fees 44,765 46,000 46,000 46,000 0% Hydrant Meter Rentals 20,894 15,000 15,280 15,280 2%
Turn On/Reconnection Fees 140 10,000 0 10,000 0%
Water Posting Fees (225) 33,500 0 33,500 0%
Meter Installation Fees 76,985 15,000 35,790 15,000 0%
Exemption Application Fees 0 1,000 0 1,000 0%
Storm Drain Service Charges 1,169,129 1,168,000 1,170,000 1,170,000 0% Urban Runoff Mgmt. Fees (5,652) 650,000 0 0 -100%
Total Service Charges 43,810,386 43,911,830 42,950,660 44,133,950 1% Fines
Parking Violations 347,197 660,000 572,000 625,000 -5%
Vehicle Code Fines 86,885 121,000 125,000 135,000 12%
Court Fines 47,077 4,500 4,500 4,500 0%
Trash Can Violations 0 200 200 200 0%
Administrative Citations 50,345 57,000 52,000 52,000 -9% Admin Citation Enforcement 2,526 4,250 2,000 3,800 -11% Total Fines 534,030 846,950 755,700 820,500 -3%
Interest and Rents
Investment Earnings 2,029,141 2,159,800 1,741,650 1,761,600 -18% Interest Earnings - RDA Loan 12,129 0 0 0 0%
Unrealized Gain/Loss on Investments (1,764,464) 0 0 0 0% Interest Earnings - Other 272,573 18,000 16,000 18,000 0% Communication Site Leases 553,089 564,420 564,420 610,640 8% Beach Club Rent 263 0 0 0 0%
Community Center Rent 5,136 59,320 40,000 52,320 -12%
Library Annex Rentals (540) 7,000 7,000 7,000 0%
SCAC Pool Rental 147,081 148,000 148,000 127,000 -14%
OHBC Pool Rentals 2,078 21,650 2,000 10,000 -54%
Senior Center Rentals 3,688 0 3,030 0 0%
Sports Field Rentals 205,959 538,000 515,000 488,000 -9% Rental of City Property 12,997 57,000 60,000 12,000 -79% Park Rentals 9,691 20,500 36,000 24,000 17%
Steed Park Concession 0 319,000 100,000 300,000 -6%
OHBC - Concession 64,031 252,000 252,000 261,000 4%
Pier Restaurant 684,045 775,000 775,000 800,000 3%
Negocio (1030) Lease 81,538 83,320 83,320 87,500 5%
"T" Street Concession 0 21,100 25,500 24,000 14%
Telescope 0 750 0 0 -100%
Pier Concession Bait & Tackle 7,393 6,000 9,150 9,600 60% Golf Pro Shop 352,429 282,240 245,000 245,000 -13%
Golf Restaurant 24,000 220,000 270,000 220,000 0%
1100 N. ECR Bldg Lease 40,836 49,130 42,060 43,220 -12% Fabricante Rental 27,500 34,200 30,000 30,000 -12%
Total Interest and Rents 2,770,593 5,636,430 4,965,130 5,130,880 -9% 67 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Revenues By Line Item
Other Revenues & Financing Sources
Depreciation Funding 6,174,576 5,990,000 5,990,000 6,155,000 3% Asset Model Funding 1,848,000 1,848,000 1,848,000 1,848,000 0% Joint Agency Reserve Funding 986,000 954,000 954,000 954,000 0% Sale of General Fixed Assets 5,161 40,000 0 0 -100%
Transfer from 2106 Gas Tax Fund 0 500,000 0 300,000 -40% Transfer from Misc. Grants Fund 691 9,400 9,400 9,400 0% Transfer from General Fund 1,814,853 1,138,850 1,138,850 2,214,590 94% Transfer from 2107 Gas Tax 523,375 451,350 520,000 530,000 17% Transfer from Water Fund 1,125,000 1,125,000 1,125,000 2,125,000 89% Transfer from Sewer Fund 1,116,200 2,125,000 2,125,000 1,675,000 -21% Transfer from Golf Course Fund 0 24,000 32,900 35,000 46% Transfer from Clean Ocean Fund 1,229,140 198,110 0 0 -100% Transfer from Storm Drain Fund 0 250,000 250,000 600,000 140% Transfer from Other Funds 1,085,000 11,637,620 11,769,480 1,720,000 -85% Principal from Advance 290,250 0 0 0 0%
Loan Proceeds 0 0 0 100,000 100%
Postage Charges 95,110 93,140 93,140 86,160 -7%
Duplicating Charges 90,510 73,040 73,040 58,470 -20%
EDMS Charges to Funds 50,000 50,010 50,010 50,000 0%
Fleet Operating Charges 994,742 1,040,360 1,040,360 1,220,380 17% Fleet Replacement Charges 558,188 516,480 516,480 519,950 1% Data Processing Charges 2,028,730 2,014,660 2,014,660 2,009,660 0% Communication Charges 236,040 220,460 220,460 186,820 -15% Capital Equipment Replacement 221,730 196,290 196,290 223,080 14% Park Asset Replacement 150,000 160,000 160,000 180,000 13% Facilities Maintenance Replacement 281,080 316,830 316,830 348,890 10% General Fund O/H Charges 2,923,640 3,108,710 3,108,710 2,890,760 -7% Employer Premiums 3,193,174 3,154,000 3,154,000 3,173,000 1% Employee Premium 3,100,123 3,700,000 3,101,340 3,665,440 -1% Police Related Donations 50 0 7,000 0 0%
Contributions from Developers 24,573 24,790 25,700 24,790 0% Other Donations 75,000 0 25,000 0 0%
Work Orders 2,811 12,000 8,500 12,000 0%
Cash Over or Short (1,286) 0 0 0 0%
Home Rehab Program Revenue (463) 10,000 10,000 10,000 0% Miscellaneous Income 49,054 8,400 16,660 12,810 53%
Sidewalk Repair Reimbursement 2,064 45,850 45,850 45,850 0% EV Charging Electric Reimbursements 3,665 4,500 4,500 4,500 0% Miscellaneous Reimbursement 127,548 39,850 133,230 40,350 1% Community Park Maint. Reimb. 32,858 31,500 33,230 33,610 7% Other Agency Revenue 1,204,156 1,100,000 1,000,000 1,100,000 0% Total Other Rev. & Financing Sources 31,641,343 42,212,200 41,117,620 34,162,510 -19% Total: $143,011,096 $168,270,920 $166,860,560 $153,112,440 -9% 68 All Fund Revenue Assumptions
General Fund:
General Fund revenues are based on a combination of factors including analysis of historical revenue receipts, anticipated changes in the local economic environment, projected City growth through development and anticipated changes in revenue receipts. In total, General Fund revenues amount to $76.6 million, an increase of $2.7 million from the 2021-22 fiscal year adjusted budget. Taxes are increasing by 6%, as property tax growth continues and Sales Tax and Transient Occupancy Taxes grow by 7% and 31% respectively. Intergovernmental revenues decrease mostly due to one-time grants for the SCRides program, with this program now budgeted in a separate fund. Service charges increase in total by 6%, with increases in Recreation fees and Ambulance service charges, with decreases in inspection fees. Fines are budgeted to decrease by 9% due to parking violations being lowered, based on lower levels coming out of the pandemic. Property taxes, which account for 54% of General Fund revenues, are anticipated to increase to $41.0 million. Sales taxes increase $0.8 million and are budgeted to be up $0.9 million or 7% from FY 2020-21 levels. Transient Occupancy Tax is budgeted to be up 31% from the FY 2020-21 budget, as restrictions are lifted and activity levels are higher than the pandemic period. Additional information on General Fund revenues is in the General Fund Revenues section of this book.
Special Revenue Funds:
The major revenues received in Special Revenue Funds include Federal and State grants, shared revenues from the State of California, the County of Orange and other governmental pass through amounts. The assumptions used for the FY 2022-23 major revenues are described below:
Federal and State Grants:
Citizens Options for Public Safety (COPS) Grant – The City included $161,280 in the Police Grant Fund in anticipation of California legislative approval of the annual appropriation to counties and cities for public safety. The grants are distributed based on population. The funds are restricted to “front-line” law enforcement efforts and are used to partially fund deputy positions through the Police Grants Fund.
Community Development Block Grant (CDBG) – Federal Housing and Urban Development grants are received by the City for projects related to community programs and public improvements. A total of $338,900 has been included for revenues, with most of the amount to improve infrastructure within the CDBG benefit area. Funding for home rehabilitation, infrastructure and public services are part of the FY 2022-23 budget.
Shared Revenue:
Gas Tax Allocations (sections 2105, 2106, 2107, 2107.5, 2031) – The State of California Highway Users Tax is a flat amount per gallon tax on fuel. Taxes are allocated to the City based on population. For fiscal year 2022-23, as a result of the economy the City increased anticipated gas tax allocations of $413,340 (2105), $254,690 (2106), $564,690 (2107) and $7,500 (2107.5) based on the State’s estimates. The City anticipates $630,980 from the State for (2103) in FY 2022-23 based on the most recent State’s estimates. A Road Maintenance and Rehabilitation (2031) apportionment from the State is anticipated to be $1.5 million in FY 2022-23.
Measure M – A county-wide half-cent sales tax, Measure M2, was approved by the voters for improvements to the transportation system. The “local fair share program funds” apportionment is based on local sales tax generated (25%), population (50%) and miles of major regional streets in the City (25%). The City’s Measure M2 apportionment for FY 2022-23 has been increased in the Street Improvement Fund based on current County estimates of $964,670.
Pollution Subventions – The South Coast Air Quality Management levies a fee on motor vehicles registered within the District. Forty percent of the fees collected are distributed to cities in the district that adopted mobile sources air pollution reduction ordinances. The City’s share for FY 2022-23 is expected to amount to $84,000 and is based 69 All Fund Revenue Assumptions
on historical receipts. The City uses AQMD fees for traffic calming improvement and other pollution reduction activities in the City.
Local Cable Infrastructure – The State levies a 1% fee on all local cable companies for a video service. These fees are governed by the State of California “Digital Infrastructure and Video Competition Act” (DIVCA), set forth as Public Utilities Code Section 5800. The amount the City anticipates for FY 2022-23 is $200,000. These fees are restricted for capital costs for public, educational, or government access facilities.
Assessments:
Street Improvement Assessments – The City of San Clemente’s Street Improvement Program was funded by property assessments. In FY 2011-12, the assessment district expired and no assessment revenues are budgeted.
The City Council, as part of the implementation of the original assessment program, initiated an annual General Fund transfer to support streets which still continues.
Capital Projects Funds:
The major revenues received in Capital Project Funds are from developer fees. The fees are based upon the impact of new development on the City’s existing infrastructure and are set aside for construction or rehabilitation of facilities or infrastructure.
Parks Acquisition and Development Fund:
A total of $40,000 in park fees is anticipated in FY 2022-23 from infill within the City.
Regional Circulation Financing & Phasing Program (RCFPP):
RCFPP fees are collected to mitigate the traffic impact from new development projects on existing arterials. New developer fees of $8,000 are anticipated in FY 2022-23 related mostly to infill.
Public Facilities Construction Fee Fund:
Fees are collected for Public Safety facilities construction and Civic Center construction. Public Facilities fees of $38,000 are anticipated to be received in FY 2022-23. Fees are derived from infill projects and are based on square footage. Fees for the Public Safety Construction fee and Civic Center fee are being received from a variety of infill development.
Developers Improvement Fund:
This fund collects amounts based on agreements that are entered into with developers. During FY 2022-23, the City will continue to receive annual amounts under the Talega and Sea Summit developments. Bridge Maintenance revenues are being collected to fund future bridge maintenance and repairs in the Marblehead and Talega development areas. Bridge fees are based on development and started in FY 2004-2005 (Talega) and in FY 2016-17 (Sea Summit). Other development fees received in this fund and will be held based on the applicable development agreement for the uses identified in the agreement.
Enterprise Funds:
The major revenues received in Enterprise Funds are from user fees. For Utilities, the fees are based upon the cost to provide the services and are adjusted based on projections of anticipated future costs. For Golf, fees are based upon comparisons with golf courses within the area and the cost to operate the course.
Water Fund:
A total of $22.3 million is included in the Water Operating Fund for fixed water charges, metered water sales and penalties. The water service charge is based on the size of the water meter. Metered water charges are based upon 70 All Fund Revenue Assumptions
actual consumption of water, which is based on a flat rate. One unit of water equals 748 gallons of water.
Penalties, under the Emergency declaration by the Governor were stopped for a specified period. Effluent water sales revenue budget is for $1.7 million. The Water Operating Fund is contributing about $3.7 million annually to the Water depreciation reserve and $696,000 to the depreciation reserve for joint regionally shared infrastructure.
A one-time transfer of $2.0 million to build Water Depreciation reserves is also in the FY 2022-23 Budget.
Sewer Fund:
Sewer service charges are budgeted for $10.1 million for FY 2022-23. The sewer service charge is a fixed monthly rate based on water consumption during the “wet winter months” which is typically January through April. The fixed rate is based on meter size. The Sewer Operating Fund is contributing $3.2 million annually to the Sewer depreciation reserve and $168,000 annually to the depreciation reserve for joint regionally shared infrastructure. A Cost of Service Study will be completed in FY 2022-23 to address rates and operational equity.
Storm Drain Fund:
Storm Drain fees are charged to all property owners for the maintenance, rehabilitation and construction of the City’s drainage system. A flat rate is charged per month to all residential properties based upon the type of the dwelling unit (i.e. single family, multi-family, etc.). The non-residential and vacant properties are charged a flat rate based upon acreage. Storm drain fees are anticipated to amount to $1.17 million in FY 2022-23.
Golf Fund:
The Golf Course charges a tiered rate for resident/non-resident, weekday/weekend and seniors. A total of $1.9 million in golf fees and $78,000 in registration fee is anticipated for FY 2022-23 and is based upon an anticipated 80,000 rounds per year. Revenue in the amount of $465,000 is also anticipated to be received from the concession operator and golf shop pro activities.
Solid Waste Management Fund:
A total of $201,850 in revenue is budgeted in the Solid Waste Fund from commercial recycling charges ($130,000), administrative fees ($25,000), trash bin permits and fines ($9,200), and a State recycling grant ($16,150).
Commercial recycling fees are charged to commercial facilities and are used to promote recycling efforts. The fees are based on the size of the waste container. Other revenues are from investment income.
Clean Ocean Fund:
The Clean Ocean fee is a local voter approved fee to provide funding to implement the City’s urban runoff management plan. The fee has expired and the City is currently performing an analysis of the fee to be proposed for voter approval in FY 2021-22. The General Fund is transferring $1.0 million to fund operations until the fee is considered by the public. Additionally, $302,000 from parking violations. Additional updates will be brought before Council throughout the year related to the Clean Ocean Fee.
Internal Service Funds:
Internal Service Funds receive revenues from City departments for goods and services provided by another City department on a cost reimbursement basis. Charges are established annually and are based upon actual use of the goods or services. Replacement charges to the Fleet Replacement Reserve are allocated annually over the life of the vehicle or equipment and based upon the anticipated future cost of replacement. 71 Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Program Actual Adj Budget Projected Budget To Bud 22-23 City Council
Legislative Program 42,186 61,310 61,460 56,220 -8%
Cable Programing 13,761 23,990 23,260 23,990 0%
Total $55,947 $85,300 $84,720 $80,210 -6%
City Manager 363,101 847,270 809,330 817,140 -4%
Economic Development 104,570 237,480 229,890 184,390 -22% City General
Social Services 17,307 23,100 23,100 23,100 0%
City Administration 6,610,944 5,836,890 5,788,840 6,710,700 15% Total 6,628,251 5,859,990 5,811,940 6,733,800 15%
City Clerk
Council Related Services 752,365 961,280 973,020 810,820 -16% Elections 72,223 9,360 6,330 139,230 1388%
Total 824,588 970,640 979,350 950,050 -2%
Finance & Admin. Services
F&AS - Administration 527,240 401,180 283,950 246,850 -38% Cash Management/Treasury 73,892 90,780 80,170 90,580 0% Total 601,132 491,960 364,120 337,430 -31%
Finance
Financial Services 1,045,370 1,307,830 1,261,540 1,251,270 -4% Utility Billing & Cashering 748,165 828,860 813,470 918,320 11% Business Licensing 193,398 217,510 191,930 174,480 -20% Purchasing 154,112 164,370 144,080 141,160 -14%
Total 2,141,045 2,518,570 2,411,020 2,485,230 -1%
Human Resources
Human Resource Administration 454,432 603,760 543,650 728,740 21% Labor Relations 75,650 57,850 56,350 26,350 -54%
Employee Training 4,325 14,650 15,700 11,750 -20%
Total 534,407 676,260 615,700 766,840 13%
Police Services
Police Contract Services 17,079,946 20,426,210 20,391,220 21,289,360 4% Local Police Services 21,176 37,300 25,300 37,650 1%
RSVP Support Services 0 14,000 14,000 14,000 0%
Total 17,101,122 20,477,510 20,430,520 21,341,010 4%
Fire Services
Fire Contract Services 10,666,602 11,930,080 11,925,830 12,342,880 3% Ambulance Services 1,385,707 1,438,600 1,438,000 1,770,200 23% Total 12,052,309 13,368,680 13,363,830 14,113,080 100%
Community Development
Administration 735,800 1,099,360 1,101,280 687,340 -37% Total 735,800 1,099,360 1,101,280 687,340 -37%
Building
Administration 1,352,893 1,489,190 1,479,320 1,417,660 -5% Inspection 535,026 672,980 669,800 598,570 -11%
Total 1,887,919 2,162,170 2,149,120 2,016,230 -7%
All Programs Expenditure Summary
72 Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Program Actual Adj Budget Projected Budget To Bud 22-23 All Programs Expenditure Summary
Planning
Long Range Planning 738,639 910,540 849,050 589,890 -35% Current Planning 705,322 907,680 871,300 763,240 -16%
Commissions, Boards & Comm. 24,830 50,050 36,240 47,200 -6% Planning Administration 432,122 481,440 439,230 481,850 0% Total 1,900,913 2,349,710 2,195,820 1,882,180 -20%
Code Compliance
Code Compliance 1,045,936 1,319,060 1,319,060 1,259,980 -4% Weed Abatement 154,528 156,000 156,000 160,000 3%
Park Ranger 148,328 208,880 197,180 267,310 100%
Total 1,348,792 1,683,940 1,672,240 1,687,290 0%
Public Works Admin.
Public Works Admin. 985,549 1,180,460 849,920 1,005,930 -15% Emergency Planning 177,662 192,290 150,370 199,570 4%
Total 1,163,211 1,372,750 1,000,290 1,205,500 -12%
Engineering
Development Engineering 609,424 669,440 676,430 642,440 -4% Inspection 395,060 398,080 394,990 379,670 -5%
Traffic 561,355 523,020 451,690 408,390 -22%
Design and General Engineering 99,134 20,800 95,530 (95,350) -558% Streets Engineering 369,410 533,320 538,910 678,350 27% Major Street Maintenance 1,219,407 2,552,020 2,552,020 1,247,810 -51% Total 3,253,790 4,696,680 4,709,570 3,261,310 -31%
Maintenance Services
Traffic Signals 880,625 1,019,310 965,980 1,107,570 9%
Traffic Maintenance 357,138 360,120 376,970 451,390 25% Maintenance Services Admin. 727,136 871,370 856,520 850,400 -2% Street Maintenance & Repair 547,233 597,320 486,840 681,880 14% Senior Citizen Facility 49,779 74,540 77,900 77,370 4%
Parking Maintenance 326,054 254,080 266,390 162,930 -36% Facilities Maintenance 2,120,522 2,177,890 2,201,320 2,292,390 5% Street Lighting 438,739 466,820 423,520 433,740 -7%
Total 5,447,226 5,821,450 5,655,440 6,057,670 4%
Park/Beach Maintenance
Trail Maintenance 211,950 255,470 255,590 261,100 2%
Street Median & Trees 297,411 372,500 372,500 372,500 0% Streetscapes 576,162 881,180 879,680 658,330 -25%
Park Maintenance 3,411,833 3,768,510 3,701,070 4,707,550 25% Beach Maintenance 1,040,255 2,892,630 2,886,730 2,029,030 -30% Parks & Beach Maint. Admin. 555,706 626,790 627,970 621,430 -1% Total 6,093,317 8,797,080 8,723,540 8,649,940 -2%
Bch, Prk & Rec Admin.
Bch, Prk & Rec Admin. 425,683 468,570 479,890 541,060 15% Total 425,683 468,570 479,890 541,060 15%
Recreation
Beach Club 126,433 138,530 159,190 202,280 46%
Community Center 491,259 597,290 563,030 586,880 -2%
Community Services 1,058,500 1,240,400 1,200,430 1,203,600 0% Aquatics 888,332 1,282,120 1,134,830 1,139,270 -11%
VH Sports Field/Aquatics Facility 579,800 752,550 732,470 854,700 14% Steed Park Operations 166,680 676,530 632,790 629,510 -7% Recreation Program/Events 458,979 607,620 599,390 679,680 12% Total 3,769,983 5,295,040 5,022,130 5,295,920 0%
73 Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Program Actual Adj Budget Projected Budget To Bud 22-23 All Programs Expenditure Summary
Marine Safety
Operations Rescue 1,734,970 1,836,780 1,829,290 1,889,270 3% Prevention & Education 67,058 162,030 154,800 176,670 9% Total 1,802,028 1,998,810 1,984,090 2,065,940 3%
Total General Fund 68,235,134 81,279,220 79,793,830 81,159,560 0% Other Funds
Street Improvement 3,437,102 7,195,430 6,875,430 2,896,470 -60% Gas Tax
2106 Gas Tax 1,698,980 5,117,550 4,617,550 2,913,640 -43% 2107 Gas Tax 529,134 457,600 526,250 536,990 17%
Senior Mobility Program 0 59,000 61,000 61,000 100%
Road Maintenance Rehabilitation 1,173,212 3,773,380 3,773,380 1,275,000 -66% Total 3,401,326 9,407,530 8,978,180 4,786,630 -49%
Miscellaneous Grants
CDBG Administration 38,533 98,180 50,390 69,670 -29%
CDBG Housing Rehabilitation 3,387 125,180 125,310 125,000 0% Public Fac/Infrastructure Grant 5,482 770,010 770,010 130,000 -83% CDBG Public Services 44,000 53,400 53,400 53,400 0%
CDBG Commercial Rehab 0 0 2,000 0
CDBG CV Grant 485,261 154,430 172,650 0 -100%
Total 576,663 1,201,200 1,173,760 378,070 -69%
Building Homes & Jobs Act (SB2) Fund 0 482,870 0 482,000 0% Disaster Relief 1,130,496 6,456,020 6,447,500 1,750,000 -73% Air Quality Improvement 13,064 156,290 156,290 80,000 -49% Local Cable Infrastructure 6,617 708,370 708,370 7,290 -99% Police Grants 155,000 197,730 190,730 192,330 -3%
Local Transit Program Grants 0 787,950 714,280 762,520 100% Parks Acq. & Development 9,102 898,010 898,010 82,760 -91% Local Drainage Facilities 155,260 1,992,970 1,992,970 1,076,090 -46% R C F P P 147,635 520,910 520,910 805,720 55%
Public Facilities Const. Fee 3,031,060 2,115,380 2,115,380 495,920 -77% Developers Improvement
Commercial Improvements 588,834 198,320 198,320 15,120 -92% Affordable Housing 4,160 0 0 0
Bridge Maintenance 19,787 0 0 0
Developers Improvement 612,781 198,320 198,320 15,120 -92% In-Lieu Housing* 0 10,502,250 10,634,110 7,430 100%
Low Mod Income Housing 14,625 260,130 260,130 48,160 -81% Reserve Fund
Accrued Leave 64,899 260,000 259,500 260,000 0%
Capital Equipment 153,477 320,900 320,900 600,000 87%
Facilities Maintenance 205,746 5,530,250 5,530,250 500,000 -91% Park Asset Replacement 388,007 605,950 551,170 0 -100%
Total 812,129 6,717,100 6,661,820 1,360,000 -80%
*Separated from Developers Improvement
74 Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Program Actual Adj Budget Projected Budget To Bud 22-23 All Programs Expenditure Summary
Water
Water Administration 2,693,802 2,923,210 3,002,220 3,921,040 34% Water Production 14,203,062 13,799,490 13,697,460 14,329,860 4% Transmission/Distribution 4,347,445 5,069,980 4,850,990 4,817,550 -5% Water Conservation 295,290 673,590 438,770 464,140 -31% Reclaimed Water 2,329,167 2,550,390 2,517,400 2,590,970 2% Total Operating 23,868,766 25,016,660 24,506,840 26,123,560 4% Water Depreciation Res. 3,793,446 12,134,350 11,875,420 3,437,150 -72% Water Acreage Fee Res. 14,110 2,516,080 2,516,080 510,580 -80% Water Other Agency 1,960,232 1,464,610 1,464,610 1,308,130 -11% Total 29,636,554 41,131,700 40,362,950 31,379,420 -24%
Sewer
Sewer Administration 1,426,017 1,612,830 1,584,230 1,566,470 -3% Treatment 5,474,901 5,827,740 5,677,250 5,777,630 -1%
Collection 3,899,419 4,188,290 4,046,760 4,039,840 -4%
Total Operating 10,800,337 11,628,860 11,308,240 11,383,940 -2% Sewer Depreciation Res. 2,514,473 11,758,320 10,812,250 4,291,150 -64% Sewer Connection Fee Res. 77,200 4,596,300 4,596,300 519,990 -89% Sewer Other Agency 1,235,543 1,276,010 1,276,010 263,790 -79% Total 14,627,553 29,259,490 27,992,800 16,458,870 -44%
Storm Drain Utility
Storm Drain Admin. 166,339 171,930 163,140 111,690 -35% Storm Drain Maintenance 1,442,358 1,604,320 1,534,220 1,550,440 -3% Total Operating 1,608,697 1,776,250 1,697,360 1,662,130 -6% Storm Drain Improvements 292,132 1,994,350 1,921,780 1,199,280 -40% Total 1,900,829 3,770,600 3,619,140 2,861,410 -24%
Clean Ocean
Storm Water Permit Compliance 2,203,344 1,547,390 1,066,310 841,510 -46% Street Cleaning 485,634 627,250 597,250 602,670 -4%
Clean Ocean Improvements 690,039 675,530 675,530 26,100 -96% Total 3,379,017 2,850,170 2,339,090 1,470,280 -48%
Solid Waste Management 221,550 438,140 415,350 247,250 -44% Golf Course
Golf Course Maint. 2,293,147 2,624,810 2,523,960 2,754,970 5% Total Operating 2,293,147 2,624,810 2,523,960 2,754,970 5% Golf Course Depreciation Res. 127,029 100,220 99,020 115,510 15% Capital Improvement Res. 8,100 74,380 74,380 312,620 320% Total 2,428,276 2,799,410 2,697,360 3,183,100 14%
Central Services
Central Services 216,361 251,420 243,710 276,440 10%
Communication Services 245,677 284,170 259,220 275,460 -3% Total 462,038 535,590 502,930 551,900 3%
Information Technology 1,928,032 2,281,950 1,928,000 2,115,520 -7% Fleet Services
Fleet Maintenance 992,866 1,223,240 1,206,840 1,273,090 4% Fleet Replacement Reserve 226,661 2,254,380 2,212,380 442,410 -80% Total 1,219,527 3,477,620 3,419,220 1,715,500 -51%
75 Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Program Actual Adj Budget Projected Budget To Bud 22-23 All Programs Expenditure Summary
Medical Insurance 3,295,962 3,905,340 3,309,840 3,911,680 0% Workers' Compensation 267,305 845,290 841,550 559,450 -34% General Liab. Self-ins. 2,396,195 3,592,830 3,447,970 2,812,350 -22% Total All Programs $143,500,832 $225,965,810 $219,196,220 $163,652,800 -28% *Does Not Include Fund Balances
76 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 Personnel
Full-Time Salaries $15,038,314 $16,812,820 $15,196,470 $17,505,430 4% Part-Time Salaries 1,591,023 2,062,320 1,821,160 2,263,840 10% Overtime 738,489 576,160 717,800 639,870 11%
Benefits 10,458,384 12,225,720 11,583,620 10,918,240 -11% Total Personnel 27,826,210 31,677,020 29,319,050 31,327,380 -1% Office Supplies 159,362 197,700 195,420 250,800 27%
Other Operating Supplies 1,500,364 1,756,520 1,728,570 1,723,430 -2% Petroleum Supplies 360,763 523,400 521,900 535,050 2%
Maintenance Supplies 683,192 676,840 676,420 707,590 5% Purchased Water 9,462,547 8,899,620 8,899,620 9,398,090 6% Total Supplies 12,166,228 12,054,080 12,021,930 12,614,960 5% Contractual Services
Administrative 636,163 802,200 811,190 885,890 10%
Travel and Training 41,918 142,040 118,420 160,750 13%
Utilities 5,055,196 5,237,770 5,223,160 5,584,710 7%
Maintenance 11,538,331 14,687,070 14,373,220 12,635,140 -14% Internal Services (866,811) (851,830) (691,830) (885,000) 4% Fire Contract Services 9,886,635 10,489,110 10,489,110 10,815,360 3% Ambulance Program 1,385,707 1,438,600 1,438,000 1,770,200 23% Police Contract Services 15,921,342 18,060,650 18,060,650 18,731,830 4% Public Safety 250,381 432,700 381,110 415,170 -4%
Legal Services 1,460,514 2,363,800 2,382,520 1,939,380 -18% Rental 123,271 226,180 226,850 179,590 -21%
Animal/Rodent Control 879,899 965,370 965,370 1,016,470 5% Other Contractual Services 4,873,785 11,583,590 9,913,510 6,833,250 -41% Total Contractual Services 51,186,331 65,577,250 63,691,280 60,082,740 -8% Other Charges
Miscellaneous Charges 311,185 401,910 504,020 555,150 38% Claims and Insurance Charges 5,579,625 6,651,700 5,980,300 6,374,850 -4% Taxes and Permits 208,520 235,460 221,890 256,660 9%
Promotional Charges 423,713 161,300 169,470 195,190 21% Recreation Charges 662,862 934,820 961,940 986,510 6%
Social Services 183,226 372,040 357,430 163,540 -56%
Depreciation 9,008,576 8,792,000 8,792,000 8,957,000 2% Contingency Reserve 0 33,500 18,500 33,500 0%
Total Other Charges 16,377,707 17,582,730 17,005,550 17,522,400 0% Capital Outlay
Improvements Other Than Bldg. 13,725,562 59,187,300 57,917,950 14,500,000 -76% Equipment 359,607 3,167,050 3,084,430 614,420 -81%
Major Maintenance 1,912,432 4,651,590 4,574,060 3,280,000 -29% One-time Studies 151,821 140,670 140,670 50,000 -64%
Total Capital Outlay 16,149,422 67,146,610 65,717,110 18,444,420 -73% Interdepartmental Charges
Interdepartmental Charges 7,314,830 7,236,720 7,236,720 7,431,010 3% Charges from Other Funds 4,175 191,000 60,000 100,000 -48% Charges to Other Funds (4,175) (202,000) (71,000) (116,000) -43% General Fund Overhead Charge 2,716,220 2,858,970 2,860,970 2,658,330 -7% Total Interdepartmental Charges 10,031,050 10,084,690 10,086,690 10,073,340 0% Interfund Transfers 6,894,258 17,759,330 17,270,630 9,208,990 -48% Debt Service 2,869,626 4,084,100 4,083,980 4,378,570 7% Ending Fund Balances 161,154,163 103,712,113 108,818,493 98,278,143 -5% Total Expenditures* $143,500,832 $225,965,810 $219,196,220 $163,652,800 -28% *excluding fund balances
All Fund Expenditures Summary
77 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 Personnel
Salaries, Regular Full-Time 15,038,314 16,812,820 15,196,470 17,505,430 4% Salaries, Regular Part-Time 238,209 191,480 186,200 226,580 18% Salaries, Hourly Part-Time 1,352,814 1,870,840 1,634,960 2,037,260 9% Regular Overtime 0 8,380 4,450 4,470 -47%
Premium Overtime, Regular 724,149 560,680 704,260 625,700 12% Premium Overtime, Part-Time 14,340 7,100 9,090 9,700 37% Holiday Pay 0 7,880 0 0 -100%
Accrued Leave Payoff 371,334 519,440 545,740 535,470 3% Disability Compensation 0 0 670 0 0%
Education Incentive Pay 301 320 310 320 0%
Assignment Pay 240,933 226,650 234,850 238,460 5%
Tool Replacement Allowance 500 500 500 500 0%
Auto Allowance 16,405 17,400 22,200 22,900 32%
Phone Allowance 4,212 4,220 4,710 4,870 15%
Employee Benefits 4,223 0 0 0 0%
Educational Reimbursement 24,630 23,890 21,020 6,910 -71% Bilingual Pay 2,846 2,560 3,240 3,600 41%
FICA 1,006,442 999,170 994,340 1,034,110 3%
Medicare 265,987 270,190 260,600 279,210 3%
State Disability Insurance 170,474 192,900 172,410 183,100 -5% A. D. & D. Insurance 2,870 3,220 2,950 3,250 1%
Long Term Disability Insurance 47,917 55,910 50,480 53,210 -5% State Unemployment Insurance 64,754 42,520 43,380 43,490 2% Workers' Compensation Insurance 503,977 489,750 445,290 489,280 0% Life Insurance 36,208 43,070 37,260 44,270 3%
Medical Insurance 2,824,134 3,066,270 2,661,160 3,356,940 9% P.E.R.S. Retirement Premium 239,594 188,740 200,760 178,590 -5% San Clemente Retirement Premium 1,479,053 3,177,130 2,982,800 1,519,250 -52% Retirement Premium (UAL) 2,520,000 2,790,700 2,790,700 2,802,600 0% Retirement Expense 553,832 0 0 0 0%
Deferred Compensation 27,050 37,000 43,900 45,500 23%
Deferred Compensation, Part Time 50,708 66,290 64,350 72,410 9% Total Personnel 27,826,210 31,677,020 29,319,050 31,327,380 -1% Supplies
Office Supplies 63,354 70,260 69,630 107,770 53%
Postage 90,195 120,440 119,790 135,630 13%
Data Processing Supplies 5,813 7,000 6,000 7,400 6%
Horticultural Supplies 72,245 90,680 94,090 93,520 3%
Leadership Supplies 0 3,500 3,500 3,500 0%
Medical Supplies 11,406 11,710 12,010 12,450 6%
Chemical Supplies 488,962 610,470 602,180 641,880 5%
Laboratory Supplies 39,128 42,650 42,500 43,000 1%
Janitorial Supplies 53,776 49,850 49,850 50,380 1%
Photographic Supplies 0 1,000 1,000 750 -25%
Protective Supplies 26,124 30,250 29,750 29,750 -2%
Gasoline 312,976 458,300 464,900 466,250 2%
Propane 995 5,000 1,000 2,500 -50%
Diesel Fuel 46,792 60,100 56,000 66,300 10%
All Fund Expenditures By Line Item
78 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Expenditures By Line Item
Educational Material 22,216 37,540 19,540 13,300 -65%
Books, Codes and Supplement 2,712 6,850 6,350 15,450 126% Office Furniture and Equipment 91,612 91,190 85,490 44,500 -51% Small Tools and Equipment 79,842 80,750 80,980 84,520 5% Clothing and Uniforms 31,255 44,100 43,590 45,700 4%
Service Awards 11,655 13,330 13,330 4,430 -67%
Other Operating Supplies 726,614 798,500 802,730 802,950 1% Water Meter Purchase 2,559 5,000 2,260 2,000 -60%
Painting Supplies 4,255 4,400 4,400 4,700 7%
Automotive & Equipment Parts 30,899 41,500 41,000 36,500 -12% Street Signs 38,768 40,040 40,040 50,040 25%
Street Materials 28,681 40,000 40,000 40,000 0%
Other Maintenance Supplies 420,847 390,050 390,400 411,700 6% Purchased Water 9,462,547 8,899,620 8,899,620 9,398,090 6% Total Supplies 12,166,228 12,054,080 12,021,930 12,614,960 5% Contractual Services
Advertising 9,872 26,950 24,090 21,940 -19%
Legal Notices 30,271 41,500 41,000 41,800 1%
Imaging of Documents 30,312 50,000 50,000 50,000 0%
Printing and Binding 31,595 75,800 65,150 83,470 10%
Travel and Training 38,175 127,580 105,420 147,170 15%
Required Licensing Certification 3,586 8,860 8,560 8,980 1% Mileage 157 5,600 4,440 4,600 -18%
Code Updating Service 10,965 9,500 9,500 9,500 0%
Property Insurance 523,148 598,450 621,450 679,180 13%
OCFA Cont Facilities Maint 50,237 34,250 30,000 45,000 31% Data Lines 131,967 124,400 122,700 93,900 -25%
Internet Services 929 3,000 1,000 3,000 0%
Telephone 185,726 201,500 195,450 205,540 2%
Natural Gas 138,052 134,590 154,830 160,490 19%
Electricity 2,950,315 3,065,470 3,031,880 3,364,630 10% Caltrans/Bahia Electricity 8,959 6,600 10,000 10,710 62% Water 913,079 995,960 1,001,100 1,026,500 3%
Effluent Water 302,157 254,800 295,000 270,000 6%
Landfill Fees 373,775 417,200 381,200 404,940 -3%
Maintenance of Buildings 459,275 387,950 431,760 370,950 -4% Maintenance of Restrooms 189,034 146,930 146,930 178,000 21% Maintenance of Improvements 2,679,087 4,339,880 4,301,990 3,695,080 -15% Maintenance of Beaches 151,984 172,560 172,560 271,000 57% Maintenance of Landscaping 2,171,089 2,240,810 2,239,310 2,313,110 3% Maintenance of Trees 303,515 420,000 420,000 395,000 -6% Beach Cleaning 27,000 30,000 30,000 30,000 0%
Maintenance of Office Equipment 22,754 46,000 43,730 45,900 0% Maintenance of Auto Equipment 15,740 35,100 24,100 38,100 9% Maintenance of Operating Equip. 365,881 487,060 470,170 439,650 -10% Maint. of Computer Hardware 116,107 113,000 82,000 113,000 0% Maint. of Computer Software 640,283 1,318,650 1,243,850 828,180 -37% Maintenance of Radio Equipment 46,547 52,060 50,360 70,890 36% Maintenance of Other Facilities 3,440,323 3,894,190 3,694,980 2,764,280 -29% 79 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Expenditures By Line Item
Maintenance of MO2 Diversion Fac. 0 32,080 32,080 32,080 0% Graffiti Removal 85,553 68,700 84,700 90,700 32%
Graffiti - Administration 30,000 30,000 30,000 33,000 10% Contracted Custodial Services 297,333 275,060 282,660 329,180 20% Center Striping/Markings 103,210 130,000 130,000 130,000 0% Street Sweeping Services 393,616 467,040 462,040 467,040 0% Engineering Services (861,623) (851,830) (691,830) (885,000) 4% SFR Plan Check 40,464 30,000 30,000 25,000 -17%
Building Services (5,188) 0 0 0 0%
Clerical Services 5,472 32,720 32,220 21,000 -36%
Answering Services 5,098 5,600 5,600 5,600 0%
Accounting and Auditing 35,400 75,560 50,750 48,200 -36% Bank Merchant Fees 358,655 323,490 389,000 387,250 20%
Broker Commissions 2,450 5,000 5,000 0 -100%
Fire Contract Services 9,748,031 10,346,350 10,346,350 10,671,320 3% OCFA Vehicle Replacement 138,604 142,760 142,760 144,040 1% Ambulance Program 1,385,707 1,438,600 1,438,000 1,770,200 23% Crossing Guards 150,402 210,900 178,110 199,870 -5%
Police Contract Services 15,921,342 18,059,150 18,059,150 18,730,280 4% Parking Citation Processing 99,979 221,800 203,000 215,300 -3% Citizen Academy - Police 0 1,500 1,500 1,550 3%
Legal Services - Retainer 486,460 495,290 495,290 514,180 4% Legal - Contingency 284,659 148,470 140,000 150,000 1%
Other Legal Services 689,395 1,720,040 1,747,230 1,275,200 -26% Medical Examinations 15,530 20,900 20,900 20,900 0%
Investigative Services 4,916 55,000 55,000 25,500 -54%
Professional Services 970,304 3,156,400 2,652,950 1,698,260 -46% Developers Reimbursement 0 100,000 100,000 50,000 -50%
Professional Studies 129,806 405,350 405,350 0 -100%
Rental of Land 52,409 53,200 53,200 53,200 0%
Rental of Equipment 47,629 150,500 150,490 100,500 -33% Rental of Uniforms 23,233 22,480 23,160 25,890 15%
Animal Control and Shelter 844,769 920,920 920,920 972,020 6% Landscape Rodent Control 35,130 44,450 44,450 44,450 0% Contractual Services 3,240,280 7,164,550 5,989,040 4,386,920 -39% Temporary Services 53,650 61,320 40,000 0 -100%
Sidewalk Pressure Wash 11,760 37,700 37,700 64,620 71%
Inspection Services 0 110,000 100,000 100,000 -9%
Total Contractual Services 51,186,331 65,577,250 63,691,280 60,082,740 -8% Other Charges
Court Costs/Citations 0 80 80 80 0%
Claims Paid 88,093 330,000 355,000 330,000 0%
Premiums Paid - Delta Care 20,509 28,000 23,000 28,000 0% Claims Paid - Delta Dental 149,043 160,500 155,000 162,500 1% Retiree Premiums - Dental 1,720 2,800 1,800 2,800 0%
Premiums Paid - Medical 2,333,078 3,125,000 2,580,000 3,125,000 0% Premiums Paid - Vision 55,724 65,000 53,000 65,000 0%
Retiree Claims - Delta Dental 37,015 65,000 52,000 60,000 -8% Retiree Premiums - Medical 232,327 255,000 245,000 258,000 1% 80 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Expenditures By Line Item
Retiree Premiums - Vision 7,822 9,000 8,000 9,000 0%
Claims Administration 51,385 68,000 65,000 68,000 0%
Retiree Health Premium (OPEB) 334,510 70,000 70,000 70,000 0% Wellness Program 0 0 0 7,500 100%
Workers' Compensation Premiums 131,888 157,100 157,110 175,000 11% Excess Insurance Premiums 2,136,511 2,316,300 2,215,390 2,021,550 -13% Dues and Subscriptions 88,859 114,420 113,490 120,770 6% Property Taxes 6,367 6,460 6,560 6,660 3%
Other Taxes 6,361 9,000 9,000 9,000 0%
N P D E S Permits 195,792 220,000 206,330 241,000 10%
Expenditure of Grants 19,812 36,230 166,150 16,150 -55% Licenses and Permits 110,665 172,430 170,280 196,600 14% Boards & Commissions Expense 2,970 4,500 1,440 500 -89% Special Meetings and Events 21,025 42,340 37,670 80,290 90% Fourth of July Celebration 44,541 44,800 44,800 45,200 1% City General Special Events 29,553 35,820 50,000 32,000 -11% Election Expenses/Special Elections 65,727 0 0 129,000 100% Recreation Special Events Expenses 89,375 85,120 86,240 100,210 18% Contract Class Instructors 573,487 849,700 875,700 886,300 4% Community Relations Expense 800 1,700 1,000 1,700 0%
Volunteer Program Expense 3,488 14,160 6,200 4,160 -71% OCTA Senior Center Trans 22,840 59,000 59,000 59,000 0% RSVP 121 0 0 0 0%
Crime Prevention Expenditures 0 16,850 10,550 10,850 -36% Character Counts Expenditures 0 4,360 4,360 4,360 0%
Parent Project Expenditures 177 18,320 17,970 18,070 -1% Trauma Intervention Program 8,085 8,100 8,100 8,100 0%
Downtown Business Assoc Subsidy 326,694 34,640 34,000 34,000 -2% Tourist & Conv. Bureau Subsidy 1,100 2,000 2,000 2,000 0% Marine Unit Support 9,222 15,000 15,000 15,000 0%
Homeless Prevention Program 0 50,000 50,000 0 -100%
Social Services Grants 139,293 186,250 186,250 44,000 -76% Water Use Efficiency Rebate Program 625 45,000 35,000 65,000 44% Environmental Sustainability Grant 5,450 8,000 4,000 8,000 0% Depreciation 6,174,576 5,990,000 5,990,000 6,155,000 3% Depreciation Reserve Contribution 986,000 954,000 954,000 954,000 0% Depreciation - Asset Model 1,848,000 1,848,000 1,848,000 1,848,000 0% Bad Debt Expense 4,180 0 0 0 0%
Refund of Prior Year Revenue 2,960 2,000 2,000 2,000 0% Home Rehab Program Inc. - Exp. 480 0 130 0 0%
Other Operating Expense 9,457 19,250 11,450 9,550 -50%
Contingency Reserve 0 33,500 18,500 33,500 0%
Total Other Charges 16,377,707 17,582,730 17,005,550 17,522,400 0% Capital Outlay
Improvements Other Than Bldg. 13,725,562 59,167,300 57,899,150 14,490,000 -76% Tenant Improvements 0 20,000 18,800 10,000 -50%
Office Furniture and Equipment 0 10,000 10,000 0 -100%
Computer Equipment 32,796 105,330 105,860 85,000 -19%
General Machinery and Equipment 114,446 860,150 777,900 128,000 -85% 81 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Expenditures By Line Item
Automotive Equipment 212,365 2,191,570 2,190,670 401,420 -82% Major Maintenance 700,514 1,471,680 1,394,150 2,050,000 39% Sidewalk Repair & Improvements 159,583 859,850 859,850 300,000 -65% Sidewalk Improvements 5,482 770,010 770,010 130,000 -83% Major Street Maintenance 889,540 1,063,520 1,063,520 550,000 -48% Slurry Seal 157,313 486,530 486,530 250,000 -49%
Capital Study 151,821 140,670 140,670 50,000 -64%
Total Capital Outlay 16,149,422 67,146,610 65,717,110 18,444,420 -73% Interdepartmental Charges
Insurance Charges 2,704,170 2,664,000 2,664,000 2,688,000 1% Postage Charges 91,890 90,260 90,260 82,670 -8%
Duplicating Charges 90,510 73,040 73,040 58,470 -20%
EDMS Charges 50,000 50,010 50,010 50,000 0%
Information Technology Charges 1,969,090 1,955,910 1,955,910 1,950,910 0% Communications Charges 228,330 211,810 211,810 180,450 -15% Fleet Rental Charges 1,528,030 1,528,570 1,528,570 1,668,540 9% Capital Equipment Rep. Charge 221,730 196,290 196,290 223,080 14% Park Asset Replacement Charge 150,000 150,000 150,000 180,000 20% Facilities Maintenance Rep. Charge 281,080 316,830 316,830 348,890 10% Charges from Weed Abatement 0 25,000 0 25,000 0%
Charges from Engineering 4,175 131,000 60,000 60,000 -54% Charges from Maintenance 0 15,000 0 15,000 0%
Charges from Sewer 0 20,000 0 0 -100%
General Fund Overhead Charges 2,716,220 2,858,970 2,860,970 2,658,330 -7% Charges to Water Fund (396) (50,000) (30,000) (30,000) -40% Charges to Sewer Fund 0 (50,000) (30,000) (30,000) -40% Charges to Storm Drain (3,779) (50,000) (7,500) (7,500) -85% Charges To Clean Ocean 0 (52,000) (3,500) (48,500) -7%
Total Interdepartmental Charges 10,031,050 10,084,690 10,086,690 10,073,340 0% Interfund Transfers
Transfer to General Fund 747,175 1,478,860 1,374,400 1,389,400 -6% Transfer to 2106 Gas Tax Fund 79,590 109,590 109,590 109,590 0% Transfer to Storm Drain Fund 356,030 250,000 250,000 600,000 140% Transfer to St. Improvement Fund 665,650 700,000 700,000 700,000 0% Transfer to Golf Fund 0 24,000 32,900 35,000 46%
Transfer to Water Fund 1,000,000 1,000,000 1,000,000 2,000,000 100% Transfer to Sewer Depreciation 25,550 0 0 0 0%
Transfer to Sewer Fund 1,000,000 2,000,000 2,000,000 1,550,000 -23% Transfer to Accrued Leave Fund 0 115,000 115,000 100,000 -13% Transfer to Facilities Maintenance 630,000 380,000 380,000 400,000 5% Transfer to Other Funds 2,390,263 11,701,880 11,308,740 2,325,000 -80% Total Interfund Transfers 6,894,258 17,759,330 17,270,630 9,208,990 -48% Debt Service
Principal Expenditure 700,781 664,090 664,080 778,700 17% Lease/Purchase Principal 35,266 12,140 12,040 32,000 164% Water Loan Interest 243,670 236,530 236,520 221,920 -6% Lease/Purchase Interest 36,125 35,090 35,090 39,700 13% P.E.R.S. Unfunded Liability 1,852,534 3,135,000 3,135,000 3,305,000 5% 82 FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Bud Projected Budget To Bud 22-23 All Fund Expenditures By Line Item
Fiscal Agent Charges 1,250 1,250 1,250 1,250 0%
Total Debt Service 2,869,626 4,084,100 4,083,980 4,378,570 7% Total: $143,500,832 $225,965,810 $219,196,220 $163,652,800 -28% 83 84
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 By Category Actual Adj Budget Projected Budget To Bud 22-23 Personnel $17,873,110 $20,494,800 $18,977,260 $20,315,820 -1% Supplies 937,670 1,175,220 1,178,950 1,217,800 4%
Contractual Services 37,118,209 43,201,600 43,204,060 43,379,660 0% Other Charges 980,643 1,274,010 1,294,540 1,485,720 17% Capital Outlay 2,441,650 5,885,300 5,804,730 3,981,890 -32% Interdepartmental Charges 5,215,215 4,973,190 5,059,190 5,257,830 6% Interfund Transfers 1,814,853 1,138,850 1,138,850 2,214,590 94% Debt Service 1,853,784 3,136,250 3,136,250 3,306,250 5% Total Expenditures $68,235,134 $81,279,220 $79,793,830 $81,159,560 0% Revenue and
Expenditure FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Summary Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $24,587,117 $26,528,673 $26,528,673 $21,531,493 -19% Revenues:
Taxes 55,987,739 56,622,220 57,804,770 60,497,230 7%
Permits & Fees 1,424,420 1,361,170 1,365,350 1,165,530 -14% Intergovernmental 743,435 1,381,840 1,380,470 585,940 -58% Service Charges 5,654,583 5,890,830 6,187,990 6,258,340 6% Fines 347,146 569,750 481,500 518,300 -9%
Interest & Rents 1,863,445 3,374,390 2,968,480 3,194,280 -5% Miscellaneous Income 194,856 91,600 124,980 93,710 2%
Interfund Revenue 3,961,066 4,587,570 4,483,110 4,280,160 -7% Total Revenues 70,176,690 73,879,370 74,796,650 76,593,490 4% Expenditures:
General Government 7,976,457 8,000,680 7,915,230 8,765,590 10% Finance & Administrative Services 3,276,584 3,686,790 3,390,840 3,589,500 -3% Public Safety 30,955,459 35,845,000 35,778,440 37,520,030 5% Community Development 5,873,424 7,295,180 7,118,460 6,273,040 -14% Public Works 15,957,544 20,687,960 20,088,840 19,174,420 -7% Beaches, Parks & Recreation 4,195,666 5,763,610 5,502,020 5,836,980 1% Total Expenditures 68,235,134 81,279,220 79,793,830 81,159,560 0% Ending Balance $26,528,673 $19,128,823 $21,531,493 $16,965,423 -11% Fund Balance: Fund balance will decrease to $17.0 million at fiscal year end June 30, 2023, including the General Fund Emergency Reserve.
General Fund Summary
Description: The General Fund is the primary operating fund of the City of San Clemente and is used to account for all financial resources except those required to be accounted for in another fund.
Funding Source: Revenues are generated from general taxes, including property and sales taxes, service charges, permits and other fees, investment earnings and other intergovernmental revenues.
Legal Basis: Fund resources are comprised of unspendable, restricted, committed, assigned and unassigned fund assets. 85 FY 2021-22 FY 2021-22 FY 2022-23 Dollar % Bud 21-22
Revenue Categories Adj Budget Projected Budget Change To Bud 22-23 Taxes $56,622,220 $57,804,770 $60,497,230 $3,875,010 7% Permits & Fees 1,361,170 1,365,350 1,165,530 (195,640) -14% Intergovernmental 1,381,840 1,380,470 585,940 (795,900) -58% Service Charges 5,890,830 6,187,990 6,258,340 367,510 6% Fines 569,750 481,500 518,300 (51,450) -9%
Interest & Rents 3,374,390 2,968,480 3,194,280 (180,110) -5% Miscellaneous 91,600 124,980 93,710 2,110 2%
Interfund Revenue 4,587,570 4,483,110 4,280,160 (307,410) -7% Revenue Subtotal 73,879,370 74,796,650 76,593,490 2,714,120 4% Beginning Fund Balance:
Emergency Reserve 13,591,000 13,591,000 14,074,000 483,000 4% Unassigned 12,937,673 12,937,673 7,457,493 (5,480,180) -42% Total: $100,408,043 $101,325,323 $98,124,983 ($2,283,060) -2% General Fund Revenues by Category
Interfund Revenue
$4.28
Miscellaneous $0.09
Service Charges $6.26
Interest & Rents $3.19
Fines $0.52
Intergovernmental
$0.59
Permits & Fees $1.17
Property Taxes $40.99
Sales Taxes $13.00
Other Taxes $6.51
General Fund Revenues
(in millions)
86 * General Government includes: City Manager, City Council, City Clerk, Economic Development and City General.
FY 2021-22 FY 2021-22 FY 2022-23 Dollar % Bud 21-22
Departments Adj Budget Projected Budget Change To Bud 22-23 General Government* $8,000,680 $7,915,230 $8,765,590 $764,910 10% Finance & Admin Services 3,686,790 3,390,840 3,589,500 (97,290) -3% Police Services 20,477,510 20,430,520 21,341,010 863,500 4% Fire Services 13,368,680 13,363,830 14,113,080 744,400 6% Marine Safety 1,998,810 1,984,090 2,065,940 67,130 3%
Community Development 7,295,180 7,118,460 6,273,040 (1,022,140) -14% Public Works 20,687,960 20,088,840 19,174,420 (1,513,540) -7% Beaches, Parks & Rec. 5,763,610 5,502,020 5,836,980 73,370 1% Expenditure Subtotal 81,279,220 79,793,830 81,159,560 (119,660) 0% Ending Fund Balance:
Emergency Reserve 14,074,000 14,074,000 15,035,000 961,000 7% Unassigned 5,054,823 7,457,493 1,930,423 (3,124,400) -62% Total: $100,408,043 $101,325,323 $98,124,983 ($2,283,060) -2% General Fund Expenditures by Department
Beaches, Parks & Rec.
$5.84
Public Works $19.17
Community
Development $6.27
Fire Services $14.11
Police Services $21.34
Marine Safety $2.07
Finance & Admin
Services $3.59
General Government*
$8.77
General Fund Expenditures
by Department
(in millions)
87 FY 2021-22 FY 2021-22 FY 2022-23 Dollar % Bud 21-22
Expenditure Categories Adj Budget Projected Budget Change To Bud 22-23 Personnel $20,494,800 $18,977,260 $20,315,820 ($178,980) -1% Supplies 1,175,220 1,178,950 1,217,800 42,580 4%
Contractual Services 43,201,600 43,204,060 43,379,660 178,060 0% Other Charges 1,274,010 1,294,540 1,485,720 211,710 17% Capital Outlay 5,885,300 5,804,730 3,981,890 (1,903,410) -32% Interdepartmental Charges 4,973,190 5,059,190 5,257,830 284,640 6% Interfund Transfers 1,138,850 1,138,850 2,214,590 1,075,740 94% Debt Service 3,136,250 3,136,250 3,306,250 170,000 5%
Expenditure Subtotals 81,279,220 79,793,830 81,159,560 (119,660) 0% Ending Fund Balance:
Emergency Reserve 14,074,000 14,074,000 15,035,000 961,000 7% Unassigned 5,054,823 7,457,493 1,930,423 (3,124,400) -62% Total: $100,408,043 $101,325,323 $98,124,983 ($2,283,060) -2% General Fund Expenditures by Category
Debt Service $3.31
Interfund Transfers
$2.21
Interdepartmental
Charges $5.26
Capital Outlay $3.98
Other Charges $1.49
Contractual Services
$43.38
Supplies $1.22
Personnel $20.32
General Fund Expenditures
By Category
(in millions)
88 Fund Balance Beginning Increase Decrease Ending % Chg Restricted amounts
Emergency Reserve 14,074,000 961,000 - 15,035,000 7%
Subtotal 14,074,000 961,000 - 15,035,000 7%
Unassigned 7,457,493 - (5,527,070) 1,930,423 -74%
Total $ 21,531,493 $ 961,000 $ (5,527,070) $ 16,965,423 -21% General Fund - Fund Balance
The General Fund ending balance at June 30, 2023 is $17.0 million, which includes Emergency Reserves.
Emergency Reserve
$15.04 Million
Unassigned
$1.93 Million
Fund Balance
June 30, 2023
Emergency Reserve
Unassigned
Governmental Accounting Standards Board Statement No. 54 defines five fund balance components. The five components are:
Nonspendable Fund Balance – Fund balance that includes amounts not in a spendable form, such as prepaid items, inventories of supplies, or loans receivable.
Restricted Fund Balance – Fund balance that reflects constraints placed through external sources such as (a) creditors (debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance – Fund balance that includes amounts for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority, and remain binding unless removed in the same manner.
Assigned Fund Balance – Fund balance that includes amounts constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose.
Unassigned Fund Balance – Fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance. 89 FY 2021-22 Adjusted Budget $73,879,370
Taxes
Property tax (excludes property transfer tax) 2,415,000 Transient occupancy tax 715,000
Sales tax 814,000
Business License tax 65,000
Permits & fees
Construction permits -176,640
Intergovernmental revenues
State grants -262,000
County grants -420,400
Service Charges
Ambulance service charges 150,000
Recreation program fees 126,880
Inspection fees -86,000
Parking Meters and Permits 35,500
Parking Violations -65,000
Vehicle Code and Court Fines 14,000
Fines
Parking Violations -65,000
Interest & Rents
Other city leases, including Negocio building -5,930
Interest -110,000
Facility Rentals -116,330
Other Revenues & Transfers
General Fund overhead charges -217,950
Aggregate Change in Other Categories -96,010
FY 2022-23 Budget (4% change) $76,593,490
General Fund Revenue Overview
90 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Property Tax $36,877,225 $37,808,000 $38,100,000 $40,223,000 6% Transient Occupancy Tax 2,306,752 2,290,000 2,885,000 3,005,000 31% Sales Tax 12,101,085 12,181,000 12,445,000 12,995,000 7% Franchise Tax 2,393,808 2,474,000 2,435,500 2,459,000 -1% Property Transfer Tax 1,095,963 830,000 870,000 710,000 -14% Assessments & Delinquent Taxes 78,248 59,220 59,220 60,230 2% Business License Tax 1,134,658 980,000 1,010,050 1,045,000 7% Total Taxes 55,987,739 56,622,220 57,804,770 60,497,230 7% Construction Permits 1,225,767 1,186,020 1,194,200 1,009,380 -15% Alarm Permits 75,120 84,000 80,000 80,000 -5%
Miscellaneous Permits 123,533 91,150 91,150 76,150 -16% Total Permits & Fees 1,424,420 1,361,170 1,365,350 1,165,530 -14% Grants 547,880 1,195,840 1,168,970 363,440 -70%
Motor Vehicle Tax 47,366 33,000 60,000 70,000 112%
Other State Subventions 148,189 153,000 151,500 152,500 0% Total Intergovernmental 743,435 1,381,840 1,380,470 585,940 -58% Planning Development Fees 238,704 219,200 185,800 217,700 -1% Plan Check Fees 859,042 616,500 607,000 616,500 0%
General Government Fees 6,944 5,800 6,000 5,900 2%
Traffic Fees - 1,200 900 1,200 0%
Weed & Nuisance Abatement 38,526 13,500 116,230 143,150 960% Ambulance Service Charges 1,779,628 1,728,500 1,801,000 1,878,500 9% Marine Safety Fees 126,613 189,780 203,010 202,660 7%
Public Safety Fees - 700 - 700 0%
Parking Meters & Permits 1,173,530 1,174,500 1,200,000 1,210,000 3% Inspection Fees 170,904 169,500 154,500 83,500 -51%
Recreation Fees 1,260,692 1,771,650 1,913,550 1,898,530 7% Total Service Charges 5,654,583 5,890,830 6,187,990 6,258,340 6% Parking Violations 162,309 390,000 300,000 325,000 -17% Vehicle Code & Court Fines 133,966 125,500 129,500 139,500 11% Other Fines 50,871 54,250 52,000 53,800 -1%
Total Fines 347,146 569,750 481,500 518,300 -9%
Interest 18,661 418,000 276,000 308,000 -26%
Site leases 553,089 564,420 564,420 610,640 8%
Facility Rental 1,291,695 2,391,970 2,128,060 2,275,640 -5% Total Interest and Rents 1,863,445 3,374,390 2,968,480 3,194,280 -5% Miscellaneous Revenue 194,856 91,600 124,980 93,710 2%
Transfers 1,037,426 1,478,860 1,374,400 1,389,400 -6%
General Fund O/H Charges 2,923,640 3,108,710 3,108,710 2,890,760 -7% Total Other Rev. & Financing Sources 4,155,922 4,679,170 4,608,090 4,373,870 -7% Total $70,176,690 $73,879,370 $74,796,650 $76,593,490 4% General Fund Revenue Summary
by Category
91 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Taxes
Current Year Secured Taxes $27,930,707 $28,668,000 $28,850,000 $30,423,000 6% Current Year Unsecured Taxes 810,100 770,000 870,000 930,000 21% Supp. Roll Property Taxes 527,095 505,000 510,000 515,000 2% ERAF Property Tax 7,573,602 7,887,000 7,880,000 8,390,000 6% Prior Year Secured & Unsecured 218,608 161,000 175,000 165,000 2% Property Tax Admin. Charge (182,887) (183,000) (185,000) (200,000) 9% Transient Occupancy Tax 1,714,461 1,800,000 2,275,000 2,350,000 31% Transient Occupancy Tax Vacation Rental 592,291 490,000 610,000 655,000 34% General Sales Tax 11,612,960 11,725,000 11,950,000 12,460,000 6% P.S. Sales Tax Augmentation 488,125 456,000 495,000 535,000 17% Lighting Assessments Prior Year 11 0 0 0 0%
San Diego Gas & Electric 698,062 750,000 750,000 750,000 0% Southern California Gas 159,675 131,000 131,000 138,000 5% Cox Communications 1,003,597 1,075,000 1,040,000 1,040,000 -3% CR&R 493,946 478,000 478,000 490,000 3%
Other Franchise Fees 18,138 22,000 18,000 22,000 0%
Parimutual Taxes 20,390 18,000 18,500 19,000 6%
Property Transfer Tax 1,095,963 830,000 870,000 710,000 -14% Penalty & Interest - Delqnt. Prop. Tax 78,006 59,000 59,000 60,000 2% Penalty & Interest - Delqnt. Prop. Assmt. 231 220 220 230 5% Business License Tax 1,056,433 900,000 920,050 950,000 6% Home Occupation Permits 78,225 80,000 90,000 95,000 19% Total Taxes 55,987,739 56,622,220 57,804,770 60,497,230 7% Permits & Fees
Building Permits 500,259 580,000 510,000 500,000 -14%
Disability Access/Educ Fee 20,530 19,800 18,000 19,800 0% Electrical Permits 344,835 290,000 340,000 250,000 -14% Mechanical Permits 81,891 80,000 110,000 65,000 -19%
Plumbing Permits 239,222 179,000 180,000 140,800 -21%
Grading Permits 21,390 20,000 20,000 16,140 -19%
STLU Permit Fee 17,640 17,220 16,200 17,640 2%
Street Encroachment Permits 123,288 90,000 90,000 75,000 -17% Alarm Permits 75,120 84,000 80,000 80,000 -5%
Miscellaneous Permits 245 1,150 1,150 1,150 0%
Total Permits & Fees 1,424,420 1,361,170 1,365,350 1,165,530 -14% Intergovernmental
Mandated Cost Reimbursement 15,982 15,000 16,500 16,500 10% S.O.N.G.S. Grant 212,589 163,440 163,440 163,440 0%
Sand Replenishment Grant 231,000 0 0 0 0%
Other State Grant 104,284 243,000 156,920 200,000 -18%
State Planning Grant 0 219,000 219,000 0 -100%
Motor Vehicle Tax 47,366 33,000 60,000 70,000 112%
Homeowners Exempt. Subvention 132,207 138,000 135,000 136,000 -1% Other County Grants 7 420,400 481,580 0 -100%
Other Governmental Revenues 0 150,000 148,030 0 -100%
Total Intergovernmental 743,435 1,381,840 1,380,470 585,940 -58% General Fund Revenues By Line Item
92 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Revenues By Line Item
Service Charges
Business License Processing Fee 56,440 61,000 52,100 61,000 0% Building Plan Check Fees 645,375 455,000 455,000 455,000 0% Planning Plan Check Fees 80,725 80,000 70,000 80,000 0% Transportation Permits 1,738 1,200 1,200 1,200 0%
Improvement Plan Check Fees 64,436 40,000 40,000 40,000 0% Landscape Plan Check Fees 1,557 1,500 2,000 1,500 0%
SFR Plan Check Fee 66,949 40,000 40,000 40,000 0%
Reproduction of Documents 1,704 1,300 1,500 1,400 8%
Map Sales 2 50 20 30 -40%
Bad Check Service Charges 5,240 4,500 4,500 4,500 0%
Other Planning Service Fees 8,834 12,500 6,000 12,500 0% Planning - CC Applications 3,652 5,500 5,500 5,500 0%
Planning - PC Applications 97,318 77,000 62,000 77,000 0% Planning - ZA Applications 17,485 16,000 13,000 16,000 0% Planning - Admin Applications 25,644 18,000 25,000 18,000 0% Traffic Model Fees 0 700 700 700 0%
Traffic Review Fees 0 500 200 500 0%
General Plan Update Fee 20,103 18,000 14,000 18,000 0%
Weed Assessments - Current Year 4,140 12,000 12,500 12,000 0% Weed Assessments - Prior Year 0 1,000 0 1,000 0%
Nuisance Abatement Reimb. 34,216 250 103,700 130,000 51900% Sign Storage Fee 170 250 30 150 -40%
Ambulance Service Charges 1,752,538 1,700,000 1,775,000 1,850,000 9% Ambulance Subscription Fees 26,980 26,000 26,000 26,000 0% Amulance GEMT Reimb 110 2,500 0 2,500 0%
Special Lifeguard Services 903 1,200 5,500 6,000 400%
Junior Lifeguard Services 117,160 171,080 177,120 177,660 4% Special Beach Events Fees 4,475 12,000 13,000 13,500 13% Lifeguard Training Class 0 0 1,890 0 0%
Film Permit Fees 4,075 5,500 5,500 5,500 0%
Visa Letter Service 0 100 0 100 0%
Police Duplication Fees 0 300 0 300 0%
Other Police Dept. Service Charge 0 300 0 300 0%
Parking Meters 1,033,820 1,000,000 1,000,000 1,000,000 0% Parking Permits 139,710 174,500 200,000 210,000 20%
Public Works Inspection Fee 0 1,500 1,500 1,500 0%
Engineering Plan Review 3,056 6,000 3,000 4,500 -25%
Construction Inspection Fee 164,519 165,000 150,000 80,000 -52% Engr. & Geotech. Reimbursement 6,385 3,000 3,000 2,000 -33% Other Engineering Service Fees 4,434 4,000 4,000 4,000 0% OHBC Pool Programs & admin Fees 15,322 10,000 8,000 8,000 -20% SCAC Pool Programs & Admin Fees 159,038 170,000 170,000 170,000 0% Swimming Pool Fees 14,783 45,000 75,000 25,000 -44%
OHBC Contract Building Class Fees 0 0 6,000 40,000 100% SCAC Contract Pool Class Fees 60,584 270,000 270,000 270,000 0% Comm. Ctr. Contract Class Fees 228,949 285,000 285,000 285,000 0% Offsite Contract Class Fees 72,264 118,000 118,000 118,000 0% 93 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Revenues By Line Item
Recreation Sports Fees 35,318 150,000 120,000 150,000 0% SCAC Building Class Fees 88,280 132,000 132,000 132,000 0% Park Class Fees 230,673 225,000 312,000 275,000 22%
Beach Class Fees 278,203 200,000 246,000 265,000 33%
Street Banner Fees 3,670 13,000 13,000 13,000 0%
Processing Fee 4,230 3,000 3,000 3,000 0%
Recreation Special Events 20,854 16,100 21,030 25,000 55% Fun on the Run Program Revenue 6 4,500 4,500 4,500 0%
After School Programming 48,516 130,000 130,000 115,000 -12% Total Service Charges 5,654,583 5,890,830 6,187,990 6,258,340 6% Fines
Parking Violations 162,309 390,000 300,000 325,000 -17% Vehicle Code Fines 86,889 121,000 125,000 135,000 12%
Court Fines 47,077 4,500 4,500 4,500 0%
Administration Citation 48,345 50,000 50,000 50,000 0%
Enforcement Administrative Citation 2,526 4,250 2,000 3,800 -11% Total Fines 347,146 569,750 481,500 518,300 -9%
Interest and Rents
Interest Earnings 262,980 400,000 260,000 290,000 -28%
Interest Earnings - RDA Loan 12,129 0 0 0 0%
Unrealized Gain/Loss on Invest. (280,642) 0 0 0 0%
Interest Earnings - Other 24,194 18,000 16,000 18,000 0% Communication Site Rental 553,089 564,420 564,420 610,640 8% Beach Club Rent 263 0 0 0 0%
Community Center Rent 5,136 59,320 40,000 52,320 -12%
Library Annex Rentals (540) 7,000 7,000 7,000 0%
Pool Rental 149,159 169,650 150,000 137,000 -19%
Senior Center Rentals 3,688 0 3,030 0 0%
Sports Field Rentals 205,959 538,000 515,000 488,000 -9% Rental of City Property 12,996 57,000 60,000 12,000 -79% Park Rentals 9,691 20,500 36,000 24,000 17%
Steed Park Concession 0 319,000 100,000 300,000 -6%
OHBC - Concession 64,031 252,000 252,000 261,000 4%
Pier Restaurant 684,045 775,000 775,000 800,000 3%
Negocio (1030) Lease 81,538 83,320 83,320 87,500 5%
"T" Street Concession 0 21,100 25,500 24,000 14%
Telescope 0 750 0 0 -100%
Bait & Tackle Shop 7,393 6,000 9,150 9,600 60%
Fabricante Rental 27,500 34,200 30,000 30,000 -12%
1100 N. El Camino Real Bldg Lease 40,836 49,130 42,060 43,220 -12% Total Interest and Rents 1,863,445 3,374,390 2,968,480 3,194,280 -5% 94 Revenues FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Revenues By Line Item
Other Revenue & Financing Sources
Other Donations 50,000 0 0 0 0%
Cash Over or Short (2,683) 0 0 0 0%
Miscellaneous Income 32,651 400 1,400 400 0%
Sidewalk Repair Reimbursement 2,063 45,850 45,850 45,850 0% EV Charging Electric Reimbursements 3,665 4,500 4,500 4,500 0% Miscellaneous Reimbursement 75,766 9,350 40,000 9,350 0% Comm Park Maint Reimb 32,858 31,500 33,230 33,610 7%
Gain/loss - Disposal Gen. Fixed Assets 536 0 0 0 0%
Transfer from Misc. Grants Fd. 691 9,400 9,400 9,400 0% Transfer from 2107 Gas Tax 523,375 451,350 520,000 530,000 17% Transfer from Water Fund 25,000 25,000 25,000 25,000 0% Transfer from Sewer Fund 25,000 25,000 25,000 25,000 0% Transfer from Clean Ocean Fund 173,110 173,110 0 0 -100% Transfer from Other Funds 0 795,000 795,000 800,000 1%
Principal from Advance 290,250 0 0 0 0%
General Fund O/H Charges 2,923,640 3,108,710 3,108,710 2,890,760 -7% Total Other Rev. & Financing Sources 4,155,922 4,679,170 4,608,090 4,373,870 -7% Total: $70,176,690 $73,879,370 $74,796,650 $76,593,490 4% 95 Revenue Assumptions
for Major Revenue Sources
General Fund Revenue Assumptions
FY 2022-23 revenues are based on a combination of factors including analysis of historical revenue receipts, anticipated changes in the local economic environment, projected City growth through development and anticipated changes in revenue receipts.
A total of $76.6 million is budgeted in the General Fund for FY 2022-23 fiscal year. For FY 2021-22, revenues are projected to amount to $74.8 million. Assumptions used by the City to budget FY 2022-23 revenues are explained within this section.
(Note: Charts in this section utilize FY 2020-21 actual revenues, projected revenues for FY 2021-22, and FY 2022-23 budget.)
Property Tax
For FY 2022-23, property taxes are anticipated to
increase by 6% or $2.3 million from the adjusted budget and 5% from projected. In FY 2021-22, Secured property
and ERAF property taxes both increase by 6%, based on
the property tax values for FY 2022-23. Property tax
values have increased annually by 4-7% since 2015, this property tax increase is within that range based on the strong real estate market and property turnover. Future property tax growth should slow based on the full
development and recent increases to the interest rates
for borrowing.
Property taxes in the table total $40,993,230 and include property taxes, transfer taxes, assessments and delinquent taxes.
Sales Tax
Sales taxes, which include general sales taxes and Public Safety Augmentation sales taxes, increases 7% from the
adjusted budget and 4% from the FY 2021-22 projected
amount. The FY 2022-23 budgeted amount is $0.9
million higher than the FY 2020-21 actual. The top three sales tax categories in the City are consumer goods,
restaurant, and fuel industries.
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
FY 2020-21 FY 2021-22 FY 2022-23
$38.1 $38.7 $41.0
Millions
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
FY 2020-21 FY 2021-22 FY 2022-23
$12.1 $12.2 $13.0
Millions
96 Revenue Assumptions
for Major Revenue Sources
Transient Occupancy Tax (TOT)
TOT is a 10% "bed" tax that is added to hotel room bills and vacation rentals within City limits. TOT revenue is budgeted at $3.0 million for FY 2022-23, which is an
increase of 31% from the FY 2021-22 adjusted budget
and a 4% increase above the FY 2021-22 projected
amount.
San Clemente is a coastal town therefore transient
occupancy tax revenue is dependent upon weather
and tourism conditions for individuals to stay in San
Clemente. Lodging in excess of 30 continuous days is
exempt under the City’s transient occupancy tax. This
revenue was impacted by the pandemic, but is
anticipated to have additional recovery in FY 2022-23.
Other Taxes
This revenue category includes franchise taxes from
the City’s utility providers, parimutual taxes, and
business license taxes. Franchise taxes are based upon
gross sales from the City’s providers of electric, gas, cable and trash, are projected to be flat at $2.5 million.
In FY 2022-23, business license taxes are anticipated to increase slightly from the FY 2021-22 adjusted budget
of $980,000 and be lower than FY 2021-22 actual
amount of $1.1 million. The budget considers impacts
on local business related to the pandemic.
Permits & Fees
Revenue in the permit & fees category is budgeted to
decrease by 14% or approximately $195,640 for FY
2022-23 as a result of construction levels and the
completion of the Marblehead residential area.
Permits revenue includes building related permits.
Building permits are anticipated to decrease by 14% or
$80,000 to FY 2020-21 actual levels. Other building
permits, such as electrical and plumbing also are
budgeted to decrease based on anticipated activity.
STLU permit fees are anticipated to remain flat at $17,640. $0.0
$1.0
$2.0
$3.0
$4.0
FY 2020-21 FY 2021-22 FY 2022-23
$2.3 $2.3
$3.0
Millions
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
FY 2020-21 FY 2021-22 FY 2022-23
$3.5 $3.5 $3.5
Millions
$0.00
$1.00
$2.00
$3.00
FY 2020-21 FY 2021-22 FY 2022-23
$1.4 $1.4 $1.2
Millions
97 Revenue Assumptions
for Major Revenue Sources
Intergovernmental – Grants
This category consists of Federal, State and County
grants. The City receives grant funding for various
purposes, including recurring and one-time grants.
A recurring reimbursement grant includes the San
Onofre Nuclear Generating Station (SONGS) grant
reimbursement for training and emergency response.
Costs are reimbursed and $163,440 is budgeted from
State Office of Emergency Services (OES). Grants
received in FY 2020-21 and budgeted in FY 2021-22
include a transportation related grant for the SCRides
program. The SCRides grant is budgeted in FY 2022-23
within the Transit Fund. Also, a one-time capital grant for $200,000 is included to reimburse a CIP project.
Intergovernmental - State Subventions
State Subvention revenue includes motor vehicle tax,
homeowner’s exemption subventions and state
mandated reimbursement program. FY 2022-23
includes $222,500 for state subventions with motor
vehicle fees of $70,000 due to vehicle prices and
homeowner subvention fees of $136,000. The State
mandated cost reimbursement program of $16,500 is
funded through the State budget.
Service Charges
Service Charges consist of development, public safety
and recreation charges for services provided to the
community. Revenue increases are budgeted in
ambulance, recreation fees, and abatement
revenues. Recreation fees increase as pandemic
restrictions are eased and from higher anticipated
activity. Ambulance service charges increase based on
current rates and activity, while nuisance abatements
are based on recent activity. Parking meter and
permits revenues reflect new hours, but can vary
based on weather. Inspection fees decrease and are
adjusted as development occurs.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY 2020-21 FY 2021-22 FY 2022-23
$547,880
$1,195,840
$363,440
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 2020-21 FY 2021-22 FY 2022-23
$195,555 $186,000
$222,500
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
FY 2020-21 FY 2021-22 FY 2022-23
$5.7 $5.9 $6.3
Millions
98 Revenue Assumptions
for Major Revenue Sources
Fines
The fines revenue category is consists of various
vehicle, alarm and court fines. The single largest
amount is parking violation fines, which represents
$325,000 or 63% of the revenue in this category.
Revenue from fines are distributed between the City,
County and State.
The total fines budget is $518,300 for FY 2022-23.
This category is anticipated to decrease by $51,450 or
9% from FY 2021-22 adjusted budget due to parking
violations being lowered based on lower levels
coming out of the pandemic.
Interest and Rents
Interest and Rents consist of investment income, ongoing rental income from City-owned properties, communication antenna sites located throughout the
City and community recreation facilities. Investment
income is based on an anticipated rate of return and a
General Fund average cash balance of $25 million, will
result in $290,000 for FY 2022-23.
Site leases increase $46,220 due to higher rates,
however facility rentals are recovering from FY 2020-
21 and rents increase in projected FY 2021-22 amounts
and the FY 2022-23 budget shows continued
improvement as pandemic restrictions are eased.
Other Revenues and Financing Sources
These categories include General Fund overhead
charges, interfund transfers and miscellaneous
revenue. In total, $4.4 million is budgeted for FY
2022-23. Overhead charges decrease $217,950 and
are calculated annually based upon the direct and
indirect costs associated with services provided to
funds outside of the General Fund. For example,
General Fund cashiers process utility transactions,
this overhead recovers those costs.
Transfers between funds decrease slightly in FY 2022-
23. $0
$300,000
$600,000
$900,000
FY 2020-21 FY 2021-22 FY 2022-23
$347,146
$569,750 $518,300
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY 2020-21 FY 2021-22 FY 2022-23
$1.9
$3.4 $3.2
Millions
$1.0
$2.0
$3.0
$4.0
$5.0
FY 2020-21 FY 2021-22 FY 2022-23
$4.2
$4.7 $4.4
Millions
99 FY 2021-22 Adjusted Budget $81,279,220
Salary and Benefit Changes
Salaries, including part time and overtime 686,300
Benefits, including medical and retirement costs -865,280 Operational Increases
Police contract services 669,530
Fire contract and ambulance program 657,850
Utilities 120,970
Recreation Class Instructors 36,600
Animal Control 51,100
Operational Decreases
Other contractual services -1,369,180
Professional services/studies -274,000
Maintenance -228,210
Election expenses 129,000
Capital Outlay/Studies
Community Center Shuffleboard Remodeling 200,000
Corto Lane Beach Access Rehabilitation 250,000
Steed Park Pickle Ball 500,000
Montalvo and Riviera Beach Trail Bridges 400,000
Sand Replenishment -1,900,000
Major Street Maintenance (FY 2021-22 includes prior year carryovers) -513,520 Slurry Seal (FY 2021-22 includes prior year carryovers) -236,530 Other capital and major maintenance projects -603,360
Transfers and Debt Service Changes
Transfer to Facilities Maintenance Fund 20,000
Transfer to Clean Ocean Fund 1,000,000
Charges to other funds 86,000
Transfer to other funds 70,740
Unfunded PERS Liability (Inactive Safety Plan) 170,000
Interdepartmental Charges
General Liability Insurance charges 67,870
Fleet charges 77,770
Facilities Maintenance Replacement Charges 32,060
Capital Equipment Replacement Charges 26,790
Aggregate Change in Other Categories 617,840
FY 2022-23 Budget (0% change) $81,159,560
General Fund Expenditure Overview
100
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Full-Time Salaries $10,084,380 $10,642,670 $9,703,160 $11,072,640 4% Part-Time Salaries 1,456,098 1,984,820 1,750,210 2,177,440 10% Overtime 210,517 137,970 209,380 201,680 46%
Benefits 6,122,115 7,729,340 7,314,510 6,864,060 -11%
Total Personnel 17,873,110 20,494,800 18,977,260 20,315,820 -1% Office Supplies 112,131 138,360 136,830 194,460 41%
Other Operating Supplies 551,499 750,370 755,330 724,700 -3% Maintenance Supplies 274,040 286,490 286,790 298,640 4% Total Supplies 937,670 1,175,220 1,178,950 1,217,800 4% Administrative 305,535 396,770 386,190 405,260 2%
Travel and Training 22,675 78,790 69,820 97,650 24%
Utilities 2,222,695 2,388,090 2,381,340 2,509,060 5%
Maintenance 4,128,689 5,052,120 5,068,690 4,823,910 -5% Internal Services (908,638) (960,000) (800,000) (960,000) 0% Fire Contract Services 9,886,635 10,489,110 10,489,110 10,815,360 3% Ambulance Program 1,385,707 1,438,600 1,438,000 1,770,200 23% Police Contract Services 15,319,680 17,899,450 17,899,450 18,568,980 4% Public Safety 200,342 345,200 308,610 341,720 -1%
Legal Services 1,422,213 1,385,190 1,403,840 1,362,130 -2% Rental 60,768 70,880 72,050 72,070 2%
Animal Control 879,899 965,370 965,370 1,016,470 5%
Other Contractual Services 2,192,009 3,652,030 3,521,590 2,556,850 -30% Total Contractual Services 37,118,209 43,201,600 43,204,060 43,379,660 0% Miscellaneous Charges 165,976 121,770 113,980 256,510 111% Promotional Charges 130,712 160,160 168,970 194,690 22% Recreation Charges 662,862 934,820 961,940 986,510 6%
Social Service Charges 21,093 38,760 31,150 29,510 -24% Contingency Reserve 0 18,500 18,500 18,500 0%
Total Other Charges 980,643 1,274,010 1,294,540 1,485,720 17% Improvements Other Than Bldg. 522,678 2,343,860 2,339,960 850,000 -64% Machinery and Equipment 860 10,000 10,860 31,890 219%
Major Maintenance 700,514 1,032,710 955,180 1,950,000 89% Sidewalk Repair & Improvements 159,583 859,850 859,850 300,000 -65% Major Street Maintenance 889,540 1,063,520 1,063,520 550,000 -48% Slurry Seal 157,313 486,530 486,530 250,000 -49%
Capital Study 11,162 88,830 88,830 50,000 -44%
Total Capital Outlay 2,441,650 5,885,300 5,804,730 3,981,890 -32% Interdepartmental Charges 5,219,390 5,130,190 5,130,190 5,328,830 4% Charges to Other Funds (4,175) (157,000) (71,000) (71,000) -55% Total Interdepartmental Charges 5,215,215 4,973,190 5,059,190 5,257,830 6% Total Interfund Transfers 1,814,853 1,138,850 1,138,850 2,214,590 94% Total Debt Service 1,853,784 3,136,250 3,136,250 3,306,250 5% Total: $68,235,134 $81,279,220 $79,793,830 $81,159,560 0% General Fund Expenditure Summary
101
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Personnel
Salaries, Regular Full Time $10,084,380 $10,642,670 $9,703,160 $11,072,640 4% Salaries, Regular Part Time 237,027 212,480 186,200 226,580 7% Salaries, Hourly Part Time 1,219,071 1,772,340 1,564,010 1,950,860 10% Regular Overtime 0 3,910 0 0 -100%
Premium Overtime, Regular 196,177 126,960 200,290 191,980 51% Premium Overtime, Part-Time 14,340 7,100 9,090 9,700 37% Holiday Pay 0 7,880 0 0 -100%
Accrued Leave Payoff 204,961 183,400 216,250 200,910 10% Assignment Pay 37,498 34,200 37,970 36,570 7%
Auto Allowance 12,205 13,200 18,000 18,700 42%
Phone Allowance 810 650 1,790 1,950 200%
Employee Benefits (8,776) 0 0 0 0%
Educational Reimbursement 13,062 11,240 11,240 0 -100%
Bilingual Pay 2,846 2,560 3,240 3,600 41%
FICA 616,759 658,660 616,040 679,740 3%
Medicare 170,842 183,300 169,290 193,950 6%
State Disability Insurance 105,243 123,430 108,160 119,850 -3% A. D. & D. Insurance 1,879 2,110 1,940 2,160 2%
Long Term Disability Insurance 30,236 35,970 33,120 35,060 -3% State Unemployment Insurance 25,683 29,250 24,590 30,410 4% Workers' Compensation Insurance 258,330 267,280 236,570 266,170 0% Life Insurance 23,615 28,410 24,570 29,450 4%
Medical Insurance 1,728,813 1,874,780 1,639,200 2,115,410 13% P.E.R.S. Retirement Premium 239,594 188,740 200,760 178,590 -5% San Clemente Retirement Premium 934,953 2,131,920 2,013,030 986,350 -54% Retirement Premium (UAL) 1,654,710 1,859,450 1,859,450 1,857,260 0% Deferred Compensation 20,775 30,500 37,460 39,000 28%
Deferred Compensation, Part Time 48,077 62,410 61,840 68,930 10% Total Personnel 17,873,110 20,494,800 18,977,260 20,315,820 -1% Supplies
Office Supplies 50,266 58,610 57,380 96,220 64%
Postage 59,369 77,250 76,950 95,740 24%
Data Processing Supplies 2,496 2,500 2,500 2,500 0%
Horticultural Supplies 21,426 25,250 25,090 25,090 -1%
Leadership Supplies 0 3,500 3,500 3,500 0%
Medical Supplies 7,956 10,110 10,410 10,850 7%
Chemical Supplies 45,309 43,500 43,500 48,200 11%
Janitorial Supplies 51,093 47,350 47,350 47,380 0%
Photographic Supplies 0 1,000 1,000 750 -25%
Protective Supplies 350 1,700 1,700 1,700 0%
Books, Codes and Supplement 2,712 6,450 6,350 15,450 140% Office Furniture and Equipment 28,412 73,450 68,000 30,950 -58% Small Tools and Equipment 28,824 44,000 43,950 46,120 5% Clothing and Uniforms 19,156 31,550 31,340 32,630 3%
Service Awards 11,655 13,330 13,330 4,430 -67%
Operating Supplies 414,873 542,230 552,810 552,850 2%
Street Signs 38,768 40,040 40,040 50,040 25%
General Fund Expenditures By Line Item
102
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Expenditures By Line Item
Street Materials 28,680 40,000 40,000 40,000 0%
Maintenance Supplies 126,325 113,400 113,750 113,400 0% Total Supplies 937,670 1,175,220 1,178,950 1,217,800 4% Contractual Services
Advertising 8,608 26,050 23,290 21,040 -19%
Legal Notices 30,271 41,500 41,000 41,800 1%
Printing and Binding 18,250 36,920 32,400 29,590 -20%
Travel and Training 18,932 66,780 59,120 86,470 29%
Required Licensing Certification 3,586 6,760 6,460 6,880 2% Mileage 157 5,250 4,240 4,300 -18%
Code Updating Service 10,965 9,500 9,500 9,500 0%
Property Insurance 237,441 282,800 280,000 303,330 7%
OCFA Contractual Facilities Maint 50,237 34,250 30,000 45,000 31% Data Lines 1,608 4,100 2,600 4,100 0%
Telephone 4,584 5,300 5,450 6,100 15%
Natural Gas 110,012 112,600 125,840 129,740 15%
Electricity 1,240,090 1,330,700 1,312,910 1,391,750 5%
Caltrans Electricity 8,513 6,120 9,520 10,200 67%
404 Bahia Electricity 446 480 480 510 6%
Water 807,205 894,540 894,540 921,660 3%
Maintenance of Buildings 340,919 378,450 371,150 356,450 -6% Maintenance of Restrooms 167,107 146,930 146,930 178,000 21% Maintenance of Improvements 12,768 57,500 57,500 16,000 -72% Maintenance of Beaches 151,984 172,560 172,560 271,000 57% Maintenance of Landscaping 2,121,798 2,185,810 2,184,310 2,258,110 3% Maintenance of Trees 282,515 350,000 350,000 350,000 0% Beach Cleaning 27,000 30,000 30,000 30,000 0%
Maintenance of Office Equipment 857 6,000 5,730 5,900 -2% Maintenance of Auto Equipment 0 0 2,000 3,000 100%
Maintenance of Operating Equipment 42,643 100,530 106,790 82,730 -18% Maintenance of Computer Hardware 0 2,000 2,000 2,000 0% Maintenance of Computer Software 47,064 589,700 583,480 116,630 -80% Maintenance of Radio Equipment 46,547 48,560 48,560 67,390 39% Maintenance of Other Facilities 444,510 521,900 521,900 547,900 5% Graffiti Removal 85,553 68,700 84,700 90,700 32%
Graffiti Administration 30,000 30,000 30,000 33,000 10% Contracted Custodial Service 224,214 233,480 241,080 285,100 22% Center Striping/Markings 103,210 130,000 130,000 130,000 0% Engineering Services (903,450) (960,000) (800,000) (960,000) 0% SFR Plan Check 40,464 30,000 30,000 25,000 -17%
Building Services (5,188) 0 0 0 0%
Clerical Services 5,472 32,720 32,220 21,000 -36%
Accounting and Auditing 35,400 75,560 50,750 48,200 -36% Bank Merchant Fees 260,495 263,490 289,000 287,250 9%
Brokers Commissions 2,450 5,000 5,000 0 -100%
Fire Contract Services 9,748,031 10,346,350 10,346,350 10,671,320 3% OCFA Vehicle Replacement 138,604 142,760 142,760 144,040 1% Ambulance Program 1,385,707 1,438,600 1,438,000 1,770,200 23% 103
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Expenditures By Line Item
Crossing Guards 150,402 210,900 178,110 199,870 -5%
Police Contract Services 15,319,680 17,899,450 17,899,450 18,568,980 4% Parking Citation Processing 49,940 132,800 129,000 140,300 6% Citizen Academy - Police 0 1,500 1,500 1,550 3%
Legal Services - Retainer 486,460 495,290 495,290 514,180 4% Legal - Contingency 283,659 148,470 140,000 150,000 1%
Other Legal Services 652,094 741,430 768,550 697,950 -6% Medical Examinations 15,530 20,900 20,900 20,900 0%
Investigative Services 4,916 55,000 55,000 25,500 -54%
Professional Services 746,974 905,850 838,070 707,760 -22% Professional Studies 25,098 75,910 75,910 0 -100%
Rental of Land 52,409 53,200 53,200 53,200 0%
Rental of Equipment 3,205 12,500 12,990 12,500 0%
Rental of Uniforms 5,154 5,180 5,860 6,370 23%
Animal Control and Shelter 844,769 920,920 920,920 972,020 6% Landscape Rodent Control 35,130 44,450 44,450 44,450 0% Contractual Services 989,800 2,058,580 1,997,040 1,306,620 -37% Temporary Services 53,650 41,320 40,000 0 -100%
Sidewalk Pressure Wash 11,760 37,700 37,700 64,620 71%
Inspection Services 0 50,000 50,000 50,000 0%
Total Contractual Services 37,118,209 43,201,600 43,204,060 43,379,660 0% Other Charges
Court Costs 0 80 80 80 0%
Wellness Program 0 0 0 7,500 100%
Dues and Subscriptions 64,761 83,040 82,130 85,480 3%
Property Taxes 6,336 6,400 6,500 6,600 3%
Other Taxes 6,361 9,000 9,000 9,000 0%
Licenses and Permits 6,198 2,500 3,320 7,800 212%
Boards & Commissions Expense 0 500 500 500 0%
Special Meetings and Events 21,025 41,840 37,170 79,790 91% Fourth of July Celebration 44,540 44,800 44,800 45,200 1% City General Special Events 29,553 35,820 50,000 32,000 -11% Election Expenses 65,727 0 0 129,000 100%
Recreation Special Event Expenses 89,375 85,120 86,240 100,210 18% Recreation Contract Class Instructors 573,487 849,700 875,700 886,300 4% Community Relations Expense 800 1,700 1,000 1,700 0%
Volunteer Program Expenses 3,488 14,160 6,200 4,160 -71% RSVP 121 0 0 0 0%
Crime Prevention 0 500 1,200 1,500 200%
Character Counts 0 500 500 500 0%
Parent Project 177 500 150 250 -50%
Trauma Intervention Program 8,085 8,100 8,100 8,100 0%
Downtown Business Assoc Subsidy 33,694 34,000 34,000 34,000 0% Tourist & Conv. Bureau Subsidy 1,100 2,000 2,000 2,000 0% Marine Unit Support 9,222 15,000 15,000 15,000 0%
Bad Debt Expense 4,180 0 0 0 0%
Refund of Prior Year Revenues 2,960 1,000 1,000 1,000 0% Other Operating Expense 9,453 19,250 11,450 9,550 -50%
104
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 General Fund Expenditures By Line Item
Contingency Reserve 0 18,500 18,500 18,500 0%
Total Other Charges 980,643 1,274,010 1,294,540 1,485,720 17% Capital Outlay
Improvements Other Than Bldg. 522,678 2,343,860 2,339,960 850,000 -64% Office Furniture and Equipment 860 10,000 10,860 0 -100% Automotive Equipment 0 0 0 31,890 100%
Major Maintenance/Repairs 700,514 1,032,710 955,180 1,950,000 89% Sidewalk Repairs 159,583 859,850 859,850 300,000 -65%
Major Street Maintenance 889,540 1,063,520 1,063,520 550,000 -48% Slurry Seal 157,313 486,530 486,530 250,000 -49%
One-time Studies/Costs 11,162 88,830 88,830 50,000 -44% Total Capital Outlay 2,441,650 5,885,300 5,804,730 3,981,890 -32% Interdepartmental Charges
Insurance Charges 1,928,580 1,826,990 1,826,990 1,894,860 4% Postage Charges 84,150 85,430 85,430 77,370 -9%
Duplicating Charges 79,780 65,460 65,460 53,090 -19%
EDMS Charges 48,890 48,600 48,600 48,770 0%
Information Technology Charges 1,447,210 1,441,920 1,441,920 1,441,920 0% Communications Charges 147,850 135,490 135,490 119,900 -12% Fleet Rental Charges 830,120 863,180 863,180 940,950 9% Capital Equipment Replacement 221,730 196,290 196,290 223,080 14% Park Asset Replacement Charge 150,000 150,000 150,000 180,000 20% Facilities Maintenance Replacement 281,080 316,830 316,830 348,890 10% Charges to Water Fund (396) (50,000) (30,000) (30,000) -40% Charges to Sewer Fund 0 (50,000) (30,000) (30,000) -40% Charges to Storm Drain (3,779) (50,000) (7,500) (7,500) -85% Charges to Clean Ocean 0 (7,000) (3,500) (3,500) 0%
Total Interdepartmental Charges 5,215,215 4,973,190 5,059,190 5,257,830 6% Interfund Transfers
Transfer to 2106 Gas Tax Fund 14,590 14,590 14,590 14,590 0% Transfer To Accrued Leave Fund 0 115,000 115,000 100,000 -13% Transfer to St. Improvement Fund 500,000 500,000 500,000 500,000 0% Transfer to Facilities Maintenance 630,000 380,000 380,000 400,000 5% Transfer to Other Funds 670,263 129,260 129,260 1,200,000 828% Total Interfund Transfers 1,814,853 1,138,850 1,138,850 2,214,590 94% Debt Service
Unfunded PERS Liability 1,852,534 3,135,000 3,135,000 3,305,000 5% Fiscal Agent Charges 1,250 1,250 1,250 1,250 0%
Total Debt Service 1,853,784 3,136,250 3,136,250 3,306,250 5% Total: $68,235,134 $81,279,220 $79,793,830 $81,159,560 0% 105
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 City Council/City Manager /Economic Dev
City Council 42,186 61,310 61,460 56,220 -8%
Cable Programming 13,761 23,990 23,260 23,990 0%
City Manager 363,101 847,270 809,330 817,140 -4%
Economic Development 104,570 237,480 229,890 184,390 -22% Total City Council/City Manager/Economic Dev $523,618 $1,170,050 $1,123,940 $1,081,740 -8% City General
Social Services 17,307 23,100 23,100 23,100 0%
City General 6,610,944 5,836,890 5,788,840 6,710,700 15% Total City General $6,628,251 $5,859,990 $5,811,940 $6,733,800 15% City Clerk
Council Related Services 752,365 961,280 973,020 810,820 -16% Elections 72,223 9,360 6,330 139,230 1388%
Total City Clerk $824,588 $970,640 $979,350 $950,050 -2% Finance & Administrative Services (F&AS)
Financial Services 1,045,370 1,307,830 1,261,540 1,251,270 -4% Utility Billing & Cashiering 748,165 828,860 813,470 918,320 11% Business Licensing 193,398 217,510 191,930 174,480 -20% Purchasing 154,112 164,370 144,080 141,160 -14%
Human Resources Administration 454,432 603,760 543,650 728,740 21% Labor Relations 75,650 57,850 56,350 26,350 -54%
Employee Training 4,325 14,650 15,700 11,750 -20%
Finance & Admin. Services Administration 527,240 401,180 283,950 246,850 -38% Cash Management/Treasury 73,892 90,780 80,170 90,580 0% Total Finance & Administrative Services $3,276,584 $3,686,790 $3,390,840 $3,589,500 -3% Police Services
Police Contract Services 17,079,946 20,426,210 20,391,220 21,289,360 4% Local Police Services 21,176 37,300 25,300 37,650 1%
RSVP Support Services 0 14,000 14,000 14,000 0%
Total Police Services $17,101,122 $20,477,510 $20,430,520 $21,341,010 4% Fire Services
Fire Contract Services 10,666,602 11,930,080 11,925,830 12,342,880 3% Ambulance Services 1,385,707 1,438,600 1,438,000 1,770,200 23% Total Fire Services $12,052,309 $13,368,680 $13,363,830 $14,113,080 6% Community Development
Building Administration 1,352,893 1,489,190 1,479,320 1,417,660 -5% Building Inspection 535,026 672,980 669,800 598,570 -11% Long Range Planning 738,639 910,540 849,050 589,890 -35% Current Planning 705,322 907,680 871,300 763,240 -16%
Commission, Boards & Committee Support 24,830 50,050 36,240 47,200 -6% Planning Administration 432,122 481,440 439,230 481,850 0% Community Development Administration 735,800 1,099,360 1,101,280 687,340 -37% Code Compliance 1,045,936 1,319,060 1,319,060 1,259,980 -4% Weed Abatement 154,528 156,000 156,000 160,000 3%
Park Ranger 148,328 208,880 197,180 267,310 28%
Total Community Development $5,873,424 $7,295,180 $7,118,460 $6,273,040 -14% General Fund Summary by Department
106
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Public Works
Development Engineering 609,424 669,440 676,430 642,440 -4% Engineering Inspection 395,060 398,080 394,990 379,670 -5% Traffic 561,355 523,020 451,690 408,390 -22%
Design & General Engineering 99,134 20,800 95,530 (95,350) -558% Streets Engineering 369,410 533,320 538,910 678,350 27% Major Street Maintenance 1,219,407 2,552,020 2,552,020 1,247,810 -51% Public Works Administration 985,549 1,180,460 849,920 1,005,930 -15% Emergency Planning 177,662 192,290 150,370 199,570 4%
Traffic Signals 880,625 1,019,310 965,980 1,107,570 9%
Traffic Maintenance 357,138 360,120 376,970 451,390 25% Maintenance Services Administration 727,136 871,370 856,520 850,400 -2% Street Maintenance and Repair 547,233 597,320 486,840 681,880 14% Senior Citizen Facility 49,779 74,540 77,900 77,370 4%
Parking Maintenance 326,054 254,080 266,390 162,930 -36% Facilities Maintenance 2,120,522 2,177,890 2,201,320 2,292,390 5% Street Lighting 438,739 466,820 423,520 433,740 -7%
Trail Maintenance 211,950 255,470 255,590 261,100 2%
Street Median & Trees 297,411 372,500 372,500 372,500 0% Streetscapes 576,162 881,180 879,680 658,330 -25%
Park Maintenance 3,411,833 3,768,510 3,701,070 4,707,550 25% Beach Maintenance 1,040,255 2,892,630 2,886,730 2,029,030 -30% Parks & Beach Maint. Admin. 555,706 626,790 627,970 621,430 -1% Total Public Works $15,957,544 $20,687,960 $20,088,840 $19,174,420 -7% Marine Safety
Operations & Rescue 1,734,970 1,836,780 1,829,290 1,889,270 3% Prevention & Education 67,058 162,030 154,800 176,670 9% Total Marine Safety $1,802,028 $1,998,810 $1,984,090 $2,065,940 3% Beaches, Parks & Recreation (BP&R)
Ole Hanson Beach Club (OHBC) 126,433 138,530 159,190 202,280 46% Community Center 491,259 597,290 563,030 586,880 -2%
Community Services 1,058,500 1,240,400 1,200,430 1,203,600 -3% Aquatics 888,332 1,282,120 1,134,830 1,139,270 -11%
VH Sports Field/SC Aquatics Facility 579,800 752,550 732,470 854,700 14% Steed Park Operations 166,680 676,530 632,790 629,510 -7% Recreation Program/Events 458,979 607,620 599,390 679,680 12% Beaches, Parks & Recreation Adminstration 425,683 468,570 479,890 541,060 15% Total Beaches, Parks & Recreation $4,195,666 $5,763,610 $5,502,020 $5,836,980 1% Total: $68,235,134 $81,279,220 $79,793,830 $81,159,560 0% General Fund Summary by Department
107
108
General Government
Department Overview:
General Government consists of City Council, City Manager, City Clerk, and Economic Development. Responsibilities include development of strategic goals and policies, management of City operations, management of City records, administration of City elections and legal compliance with all municipal and State regulations, and development and expansion of the City's tax base. Also included are programs not directly assigned to a specific division, such as City administration, animal control and civic services.
Shading indicates contracted services
Citizens of
San Clemente
City Manager
Direct City Operations
Implement Council Policy
Community Relations
Intergovernmental Relations
City Attorney
Economic Development
Economic Development
Business Outreach/Retention
Marketing/Promotion
City General
Social Services
City Administration
Civic Services
City Clerk
Conduct Elections
Research & Records
Management
Legal Advertising & Bids
FPPC Filing Officer
Council-Related Services
City Council
Establish Policy
Legislative Process
External Committee
Representation
109
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 City Council 55,947 85,300 84,720 80,210 -6%
City Manager 363,101 847,270 809,330 817,140 -4%
City General 6,628,251 5,859,990 5,811,940 6,733,800 15% City Clerk 824,588 970,640 979,350 950,050 -2%
Economic Development 104,570 237,480 229,890 184,390 -22% Total General Government Budget $7,976,457 $8,000,680 $7,915,230 $8,765,590 10% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 905,665 1,528,940 1,469,770 1,426,480 -7%
Supplies 15,243 24,500 24,250 59,750 144%
Contractual Services 2,709,891 3,078,550 3,055,240 2,743,730 -11% Other Charges 184,013 161,970 159,250 327,970 102%
Interdepartmental Charges 2,033,300 1,924,760 1,924,760 1,993,070 4% Total Program Budget 5,848,112 6,718,720 6,633,270 6,551,000 -2% Transfers and Debt 1,814,853 1,138,850 1,138,850 2,214,590 94% Capital/One-time Studies 313,492 143,110 143,110 0 -100% Total General Government Budget $7,976,457 $8,000,680 $7,915,230 $8,765,590 10% Personnel Summary 7.00 7.50 7.50 7.50
General Government
Department Summary
City Council 0.9%
City Manager
9.3%
City Clerk 10.8%
Economic
Development
2.1%
City General
76.8%
General Government Summary
110
Purpose Statement
Legislative Services
• Develop strategic goals and objectives for the City.
• Establish priorities and direction for the City through policy development and the legislative process. • Adopt and monitor the annual operating and capital improvement budgets. • Provide input on regional, state and federal matters affecting San Clemente.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 City Council 42,186 61,310 61,460 56,220 -8%
Cable Programming 13,761 23,990 23,260 23,990 0%
Total City Council Budget $55,947 $85,300 $84,720 $80,210 -6% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 36,673 46,610 39,040 46,610 0%
Supplies 2,636 5,200 5,100 5,200 0%
Contractual Services 1,452 16,500 23,500 7,500 -55%
Other Charges 4,426 5,810 5,900 7,810 34%
Interdepartmental Charges 10,760 11,180 11,180 13,090 17% Total Program Budget 55,947 85,300 84,720 80,210 -6%
Capital/One-Time Studies 0 0 0 0 0%
Total City Council Budget $55,947 $85,300 $84,720 $80,210 -6% Personnel Summary 0 0 0 0
(Five Council Members are elected positions)
General Government
Legislative Division Summary
To establish civic leadership and provide direction in overseeing the business of the City, while being mindful of the needs, interests, and concerns of the citizens in an open and responsive manner. 111
Purpose Statement
City Manager Department Services
• Operational excellence and responsibility for the administration of the budget. • Fulfill the City of San Clemente's Mission Statement. • Prudent fiscal policies and practices.
• Preservation of the community's high quality of life. • A balanced, inclusive, and open approach to policy-making and city leadership. • Economic vitality with an emphasis on small and local serving businesses.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 City Manager 363,101 847,270 809,330 817,140 -4%
Total City Manager Budget $363,101 $847,270 $809,330 $817,140 -4% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 319,443 806,730 770,930 774,890 -4%
Supplies 902 2,150 2,000 2,150 0%
Contractual Services 12,608 4,960 5,050 4,960 0%
Other Charges 488 5,760 3,680 5,760 0%
Interdepartmental Charges 29,660 27,670 27,670 29,380 6% Total Program Budget 363,101 847,270 809,330 817,140 -4% Capital/One-Time Studies 0 0 0 0 0%
Total City Manager Budget $363,101 $847,270 $809,330 $817,140 -4% Personnel Summary 3.00 3.00 3.00 3.00
Significant Change:
Personnel costs decreased by $31,840 due to the hiring of a City Manager and other personnel changes.
General Government
City Manager Department Summary
To provide professional leadership in the administration and execution of policies and objectives formulated by City Council. As well as to develop and recommend alternative solutions to community problems for council consideration. To plan and develop new programs to meet future needs of the city and prepare the annual budget. Finally, to foster community pride in city government through excellent customer service. 112
Purpose Statement
City General Services
• Serve as a cost center for programs not directly assigned to a specific division. • Provide annual grants to social service programs.
• Provide as needed grants to civic programs.
• Provide a mechanism to transfer General Fund monies to programs or projects outside of the General Fund.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Social Services 17,307 23,100 23,100 23,100 0%
City Administration 6,610,944 5,836,890 5,788,840 6,710,700 15% Total City General Budget $6,628,251 $5,859,990 $5,811,940 $6,733,800 15% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Supplies 1,458 2,500 2,500 2,650 6%
Contractual Services 2,493,333 2,641,360 2,594,010 2,479,530 -6% Other Charges 75,785 106,600 105,900 141,600 33%
Interdepartmental Charges 1,929,330 1,827,570 1,827,570 1,895,430 4% Total Program Budget 4,499,906 4,578,030 4,529,980 4,519,210 -1% Transfers and Debt 1,814,853 1,138,850 1,138,850 2,214,590 94% Capital/One-Time Studies 313,492 143,110 143,110 0 -100% Total City General Budget $6,628,251 $5,859,990 $5,811,940 $6,733,800 15% Personnel Summary 0 0 0 0
Significant Items/Changes:
Contractual Services includes $972,020 for Animal Control and Shelter, $899,180 for legal services, $303,330 for property insurance, and $300,000 for professional services.
Interdepartmental includes $1.9 million related to insurance charges.
Transfers and Debt increased by $1.0 million due to a transfer to the Clean Ocean Fund to subsidze operations.
Capital costs decrease $143,110 related to the City Hall 1st floor remodel completion.
Council Contingency is budgeted at $18,500 in Other Charges.
Other charges increase by $35,000 mostly due to the reclassification of certain event costs to this program.
Social Services support remains the same at $23,100, including Trauma Intervention Program ($8,100) and Marine Unit Support ($15,000).
General Government
City General Department Summary
To provide a cost center to account for programs and costs not directly assigned to a specific division. These include social programs and administrative costs.
113
Purpose Statement
City Clerk Department Services
• Produce City Council agendas and packets as well as meeting minutes. • Ensure legal compliance with electoral and governmental regulations. • Process City contracts.
• Conduct regular and special municipal elections and process initiative and referendum petitions. • Preserve and maintain all City records and respond to public records requests. • Implement the Leadership San Clemente program.
• Serve as filing officer for Fair Political Practices Commision statements.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Council Related Services 752,365 961,280 973,020 810,820 -16% Elections 72,223 9,360 6,330 139,230 1388%
Total City Clerk Budget $824,588 $970,640 $979,350 $950,050 -2% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 548,594 598,770 590,830 534,740 -11%
Supplies 10,247 14,650 14,650 49,750 240%
Contractual Services 133,951 293,380 310,330 175,890 -40% Other Charges 68,246 5,500 5,200 134,500 2345%
Interdepartmental Charges 63,550 58,340 58,340 55,170 -5% Total Program Budget 824,588 970,640 979,350 950,050 -2% Capital/One-Time Studies 0 0 0 0 0%
Total City Clerk Budget $824,588 $970,640 $979,350 $950,050 -2% Personnel Summary 4.00 4.00 4.00 4.00
Significant Changes:
Personnel costs decrease $64,030 due to personnel changes during the year.
Supplies increase $35,100 due to a one-time costs for a File System for Vital Records (Decision Package CC-0671).
Contractual Services decrease $117,490 based on a one-time cost for Legislative software in FY 2021-22.
Other Charges increase by $129,000 due to a planned municipal election in FY 2022-23.
General Government
City Clerk Department Summary
To accurately record and carefully preserve and safeguard the legislative history of the City of San Clemente. To maximize timely access to City records and information. To facilitate the democratic electoral process in an impartial manner that conforms with State law.
114
Purpose Statement
Economic Development Division Services
• Encourage employment
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Economic Development 104,570 237,480 229,890 184,390 -22% Total Economic Development Budget $104,570 $237,480 $229,890 $184,390 -22% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 955 76,830 68,970 70,240 -9%
Contractual Services 68,547 122,350 122,350 75,850 -38% Other Charges 35,068 38,300 38,570 38,300 0%
Total Program Budget 104,570 237,480 229,890 184,390 -22% Capital/Capital Studies 0 0 0 0 0%
Total Economic Development Budget $104,570 $237,480 $229,890 $184,390 -22% Personnel Summary 0 0.5 0.5 0.5
Significant Change:
Contractual services decrease by $46,500 due primiarly to study a Business Improvmeent District in FY 2021-22. • Local business support and retention.
• Maintain and improve tax related revenue.
• Economic diversification
General Government
Economic Development Department Summary
Develop and implement policies, programs, and activities that will stimulate business startup, facilitate the expansion of existing businesses, and encourage the location of new businesses in order to create new jobs, expand the City of San Clemente's economic base, and enhance the quality of life for the citizens of San Clemente. 115
116
Shading indicates contracted services
Finance & Administrative Services
Department Overview:
The Finance & Administrative Services Department consists of the Finance, Information Technology, Human Resources, Risk Management, Purchasing, Budget and City Treasurer functions. The department provides customer service to internal and external clientele, financial accountability to the public, management of City debt and investments, development and monitoring of the budget, labor relations and negotiations, recruitments, administration of risk management and safety programs, administration of the City's IT Strategic Plan, and development of the Long Term Financial Plan.
City Manager
Assistant City Manager
Information Technology
Technology Planning and
Implementation
Enterprise Applications
and Databases
Programming and
Reporting Services
Server, Desktop and
Mobile Computers
Network and Data
Communications
User Support & Training
Geographical Information
Systems
Internet Access,
E-Mail and Security
City Treasurer
(elected)
Investment & Debt
Administration
Citizens of
San Clemente
Human Resources
Recruitment & Selection
Classification &
Compensation
Labor Relations
Workers' Compensation
Benefits Administration
Staff Development,
Welfare, and Training
Risk Management
Retired Senior
Volunteer Program
Financial Services
Accounts Payable
Accounts Receivable
Payroll
General Accounting
Financial Planning
Budgeting
Financial Reporting
Audit Support
Banking
Investment
Reporting
Business Services
Utility Billing
Capital Improvement
Projects
Business Licensing
Utility Rate Analysis
Central Cashiering
Finance
Purchasing
Fire Contract
Management
Police Contract
Management
Central Services
Purchasing
Contract Fleet
Services
Vehicle Maintenance &
Repair
Vehicle Acquisition
117
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 F&AS - Administration 601,132 491,960 364,120 337,430 -31% Finance 2,141,045 2,518,570 2,411,020 2,485,230 -1%
Human Resources 534,407 676,260 615,700 766,840 13%
Total F&AS Budget $3,276,584 $3,686,790 $3,390,840 $3,589,500 -3% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
F&AS Expenditure by Category Actual Adj Budget Projected Budget % Change Personnel 2,341,820 2,509,920 2,288,600 2,393,250 -5%
Supplies 71,779 97,530 98,830 111,100 14%
Contractual Services 528,444 721,970 639,510 749,210 4% Other Charges 47,501 66,350 72,880 53,940 -19%
Interdepartmental Charges 285,790 289,770 289,770 280,750 -3% Total Program Budget 3,275,334 3,685,540 3,389,590 3,588,250 -3% Debt 1,250 1,250 1,250 1,250 0%
Capital/Capital Studies 0 0 0 0 0%
Total F&AS Budget $3,276,584 $3,686,790 $3,390,840 $3,589,500 -3% Personnel Summary 19.11 19.11 19.11 19.11
Accomplishments for FY 2021-22
• Maintained Standard and Poor’s long-term financial “AAA” rating • Managed COVID-19 guidance, mandates, and recommendations for employee health and safety in the workplace during the pandemic
• Completed negotiations with the union and executed a new multi-year Memorandum of Understanding (MOU). • Executed the Voluntary Retirement Program.
• Expanded on-line Business License renewal processing for contractor license types • Negocio Building Renovation Technology Elements for OCSD on Second Floor • Provide mandated Harassment and Discrimination Prevention training for all City employees • Initiation of the 3-2-1 Pension Funding Stratgy to reduce the Unfunded Pension Liability Key Initiatives for FY 2022-23
• Implement the Sewer cost of service rate analysis study • Complete the "3-2-1" Pension Funding Strategy and initiate a Class and Compensation study. • Increased focus on recruitments and hiring to fill vacant positions put on hold over the last fiscal year • Assist the CASA JPA with the transition to the CalPERS retirement system • Implement Legislative/Agenda Management System
• Implement modern Council Meeting audio/visual system in the new Council Chambers • Permitting and Licensing System Migration from TRAKIT.NET to TRAKIT Community Development Finance & Administrative Services
Department Summary
F&AS -
Administration
9.4%
Finance 69.2%
Human Resources
21.4%
Finance & Administrative Services Summary
118
Purpose Statement
Finance & Administrative Services Administration Services:
• Direct the Finance, Human Resources, and Information Technology divisions. • Oversee development of the annual operating and capital improvement budgets. • Manage the City’s investment portfolio in accordance with State and City ordinances and policies. • Develop and implement the annual Long Term Financial Plan and Information Technology Strategic Plan.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 F&AS - Administration 527,240 401,180 283,950 246,850 -38% Treasurer 73,892 90,780 80,170 90,580 0%
Total F&AS - Administration Budget $601,132 $491,960 $364,120 $337,430 -31% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Expenditure by Category Actual Adj Budget Projected Budget To Bud 22-23 Personnel 467,188 316,090 194,770 182,130 -42%
Supplies 1,562 3,850 3,700 3,300 -14%
Contractual Services 69,197 90,600 77,650 87,600 -3%
Other Charges 33,035 51,970 58,550 38,150 -27%
Interdepartmental Charges 30,150 29,450 29,450 26,250 -11% Total Program Budget 601,132 491,960 364,120 337,430 -31% Capital/Capital Studies 0 0 0 0 0%
Total F&AS - Administration Budget $601,132 $491,960 $364,120 $337,430 -31% Personnel Summary 2.00 2.00 2.00 2.00
Significant Changes:
Personnel costs decrease by $133,960 due to savings from the Assistant City Manager position.
Other charges decrease $13,820 due to the shift of event costs to General Government costs.
Finance & Administrative Services
Finance & Administrative Services Administration Summary To provide services and to act as a consultant to our departments (internal customers) as well as to the citizens of our City (external customers). Additionally, oversight of all financial functions is provided to assure our stakeholders that public funds are expended in accordance with legally established appropriations and fiscal policies. 119
Purpose Statement
Finance Services
• Maintain financial oversight and administration of all City funds and accounts. • Manage the general accounting functions.
• Oversee and process business licensing.
• Manage the billing and collection of the City’s utility accounts. • Prepare and monitor operating and capital budgets.
• Direct the purchasing and contract administration activities.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Financial Services 1,045,370 1,307,830 1,261,540 1,251,270 -4% Utility Billing & Cashiering 748,165 828,860 813,470 918,320 11% Business Licensing 193,398 217,510 191,930 174,480 -20% Purchasing 154,112 164,370 144,080 141,160 -14%
Total Finance Budget $2,141,045 $2,518,570 $2,411,020 $2,485,230 -1% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Expenditure by Category Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,498,157 1,705,290 1,653,580 1,708,530 0%
Supplies 66,559 88,470 90,420 102,740 16%
Contractual Services 348,325 495,770 438,080 449,860 -9% Other Charges 6,934 6,370 6,270 6,760 6%
Interdepartmental Charges 219,820 221,420 221,420 216,090 -2% Total Program Budget 2,139,795 2,517,320 2,409,770 2,483,980 -1% Debt 1,250 1,250 1,250 1,250 0%
Capital/Capital Studies 0 0 0 0 0%
Total Finance Budget $2,141,045 $2,518,570 $2,411,020 $2,485,230 -1% Personnel Summary 13.61 13.61 13.61 13.61
Significant Changes:
Supplies costs increase by $14,270 due to postage related costs.
Contractual services decrease $45,910 based on contract services (actuarial and audit budget carryovers).
Finance & Administrative Services
Finance Division Summary
To provide financial oversight, reporting, and general accounting services for all City programs, including financial reporting, financial forecasting, budgeting, cashiering, purchasing, contract administration, utility billing, and business license activities.
120
Purpose Statement
Human Resources Services
• Recruit and retain a qualified work force.
• Management of a City-wide training program using in-house staff and outside subject matter experts. • Administration of the City’s employee benefits programs, including medical, dental, life, disability insurance, and other City retirement and health & welfare programs. • Administer the risk management programs, including liability, workers' compensation, insurance and safety.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Human Resources Admin. 454,432 603,760 543,650 728,740 21% Labor Relations 75,650 57,850 56,350 26,350 -54%
Employee Training 4,325 14,650 15,700 11,750 -20%
Total Human Resources Budget $534,407 $676,260 $615,700 $766,840 13% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 376,475 488,540 440,250 502,590 3%
Supplies 3,658 5,210 4,710 5,060 -3%
Contractual Services 110,922 135,600 123,780 211,750 56% Other Charges 7,532 8,010 8,060 9,030 13%
Interdepartmental Charges 35,820 38,900 38,900 38,410 -1% Total Program Budget 534,407 676,260 615,700 766,840 13% Capital/Capital Studies 0 0 0 0 0%
Total Human Resources Budget $534,407 $676,260 $615,700 $766,840 13% Personnel Summary 3.50 3.50 3.50 3.50
Significant Changes:
Personnel costs increase $14,050 due to filling staffing positions.
Contractual services increase $76,150 due to the breakout of software maintnence and the addition of a Class and Compensation Study (Decision Package (FAS-0675).
Finance & Administrative Services
Human Resources Division Summary
To provide Human Resource services to the City departments, employees and the public. This includes administering the functions of recruitment and selection, classification and compensation, employee benefits, labor relations, employee training, workers' compensation, and risk management.
121
122
Shading indicates contracted services
Public Safety
Department Overview:
Public Safety consists of the Police, Fire Services and Marine Safety. Police Services are largely contracted through the Orange County Sheriff’s Department. Other contracts include crossing guards, citation processing, and other support activities. Police Services is responsible for providing law enforcement, police investigation, traffic enforcement, crime prevention, forensic services, public information and education services. Fire and Emergency Services are contracted through the Orange County Fire Authority. Ambulance transport services are contracted through Care Ambulance Services. Fire Services is responsible for providing fire rescue and protection, fire investigation, hazardous materials response, paramedic and ambulance transport services, public information and education services. Marine Safety is responsible for providing for the safety of citizens through rescue response and medical aid, preventative enforcement, and public awareness.
Chief of Police Services
Lieutenant
City Manager
Contract Police Services
Patrol
Traffic
Investigation
Crime Prevention
Records
Volunteer Chaplains
Orange County Fire Authority
Division 3 Chief
Contract Fire Services
Operations
Fire Suppression
Fire Prevention
Paramedic Response
Ambulance Transport
Planning & Development
Investigations
Community Education
Marine Safety
Water Observation
Rescue Response &
Medical Aid
Law Enforcement
Environmental
Management
Junior Lifeguard Program
Ocean Safety Public
Beaches, Parks, and
Recreation Director
123
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 Police 17,101,122 20,477,510 20,430,520 21,341,010 4%
Fire 12,052,309 13,368,680 13,363,830 14,113,080 6%
Marine Safety 1,802,028 1,998,810 1,984,090 2,065,940 3% Total Public Safety $30,955,459 $35,845,000 $35,778,440 $37,520,030 5% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,548,989 1,605,290 1,591,630 1,667,930 4%
Supplies 34,276 88,740 78,350 85,040 -4%
Contractual Services 27,038,227 30,414,990 30,377,450 31,782,420 4% Other Charges 10,193 16,900 11,930 17,750 5%
Interdepartmental Charges 471,240 484,080 484,080 530,000 9% Total Program Budget 29,102,925 32,610,000 32,543,440 34,083,140 5% Debt 1,852,534 3,135,000 3,135,000 3,305,000 5%
Capital/Capital Studies 0 100,000 100,000 131,890 32%
Total Public Safety Budget $30,955,459 $35,845,000 $35,778,440 $37,520,030 5% Personnel Summary 99.25 100.25 100.25 100.25
Accomplishments for FY 2021-22
• Ensured all stations were fully staffed throughout the COVID-19 pandemic • New KME fire engine at station 60 and 100' aerial ladder truck at station 59 • Continued to improve and utilize public safety data to respond to emerging threats and challenges • Maintained response times and permitting standards and Priority 1 calls had a response time of under 5 minutes • Conducted meetings with the City's Public Safety Committee to seek public safety recommendations • Ocean lifeguards rescued 2,359 swimmers in distress, warned 45,807 visitors of dangerous situations, performed 1,172 medical aids and responded to 23,378 ordinance enforcement contacts and no drownings • Over 700 students enrolled in the Junior Lifeguard Program. Participants received education and experience in ocean safety, first aid, rescue techniques, body surfing, board surfing, physical fitness, and Marine Safety operations Key Initiatives for FY 2022-23
• Assess improvements to air operation resources and increase hand crew firefighter capabilities to adrress wildfire threats • OCFA to continue to add regional resources to keep pace with South Orange County population growth • Implement body cameras and updated police vehicle camera roll out • Seek technology improvements to assist with Police Services, including license plate readers Public Safety
Department Summary
Police Services
56.9%
Fire Services
37.6%
Marine Safety
5.5%
Public Safety Summary
124
Purpose Statement
Police Services
• Provide law enforcement services to the public.
• Protect lives and property.
• Initiate and maintain crime prevention programs.
• Investigate and solve crimes.
• Provide educational programs to the public.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Police Services 17,079,946 20,426,210 20,391,220 21,289,360 4% Local Police Services 21,176 37,300 25,300 37,650 1%
RSVP Support Services 0 14,000 14,000 14,000 0%
Total Police Services Budget $17,101,122 $20,477,510 $20,430,520 $21,341,010 4% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Supplies 8,777 24,950 14,060 14,300 -43%
Contractual Services 15,702,228 18,430,620 18,399,580 19,127,040 4% Other Charges 10,073 16,500 11,440 17,350 5%
Interdepartmental Charges 252,510 272,940 272,940 325,430 19% Total Program Budget 15,973,588 18,745,010 18,698,020 19,484,120 4% Debt 1,127,534 1,732,500 1,732,500 1,825,000 5%
Capital/Capital Studies 0 0 0 31,890 100%
Total Police Services Budget $17,101,122 $20,477,510 $20,430,520 $21,341,010 4% Personnel Summary 53.00 54.00 54.00 54.00
Significant Change:
The Police budget increases to $21.3 million, with the OCSD contract total of $18.5 million funded in the General Fund Other Contractual services costs include crossing guards, citation processing and legal costs for enforcement.
Interdepartmental charges increase by $52,490 due to fleet cost increases.
Debt amounts represent the CalPERS Safety plan pension liability payment for past police personnel.
Capital costs include the addition of a motorcycle budgeted at $31,890.
Public Safety
Police Services Summary
To provide responsive, professional law enforcement service to all people in San Clemente. Police services includes the Orange County Sheriff's Department (OCSD) contract and other contractors used for public safety related activities, including crossing guards and other services to support police operations. RSVP support services is included as a separate program.
125
Purpose Statement
Fire Services
• Provide safety and emergency services to the public.
• Provide paramedic and ambulance transport services.
• Provide fire investigation services.
• Respond to hazardous materials incidents.
• Provide fire prevention, public information and educational programs.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Fire Contract Services 10,666,602 11,930,080 11,925,830 12,342,880 3% Ambulance Services 1,385,707 1,438,600 1,438,000 1,770,200 23% Total Fire Services Budget $12,052,309 $13,368,680 $13,363,830 $14,113,080 6% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Contractual Services 11,322,579 11,961,960 11,957,110 12,630,560 6% Interdepartmental Charges 4,730 4,220 4,220 2,520 -40%
Total Fire Services Budget $11,327,309 $11,966,180 $11,961,330 $12,633,080 6% Debt 725,000 1,402,500 1,402,500 1,480,000 6%
Total Police Services Budget $12,052,309 $13,368,680 $13,363,830 $14,113,080 6% Personnel Summary 39.00 39.00 39.00 39.00
Significant Change:
OCFA's contract budget is $10.9 million, the base contract of $10.7 million and facility/vehicle costs of $189,040.
CARE Ambulance Services contract is $1,770,200 for 2 full-time ambulances and related costs.
Debt amounts represent the CalPERS Safety plan pension liability payment for past fire personnel.
Public Safety
Fire Services Summary
To provide quality safety and emergency service in a timely and efficient manner. These services are contracted through the Orange County Fire Authority (OCFA) and Care Ambulance Services. 126
Purpose Statement
Marine Safety Services
• Provide water observation, rescue response, medical aid and law enforcement services. • Provide instructional water safety programs through the junior lifeguard, school education, community outreach and media programs.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Operations Rescue 1,734,970 1,836,780 1,829,290 1,889,270 3% Prevention and Education 67,058 162,030 154,800 176,670 9% Total Marine Safety Budget $1,802,028 $1,998,810 $1,984,090 $2,065,940 3% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,548,989 1,605,290 1,591,630 1,667,930 4%
Supplies 25,499 63,790 64,290 70,740 11%
Contractual Services 13,420 22,410 20,760 24,820 11%
Other Charges 120 400 490 400 0%
Interdepartmental Charges 214,000 206,920 206,920 202,050 -2% Total Program Budget $1,802,028 $1,898,810 $1,884,090 1,965,940 4% Capital/Capital Studies 0 100,000 100,000 100,000 0%
Total Marine Safety Budget $1,802,028 $1,998,810 $1,984,090 $2,065,940 3% Personnel Summary 7.25 7.25 7.25 7.25
Significant Change:
Supplies increase by $6,950 due to purchase of binoculars and other small equipment.
Contractual services increase due partially to travel and training and utilities costs.
Public Safety
Marine Safety Division Summary
To maximize the safety and well-being of visitors to San Clemente's beach and marine environment through comprehensive public education, preventive measures, and responsive emergency intervention. 127
128
Shading indicates contracted services
Community Development
Department Overview:
The Community Development Department consists of Community Development Administration, Building, Planning and Code Compliance divisions. This department is responsible for implementation of San Clemente’s vision and policy as it relates to land development, housing, affordable housing development, construction and code enforcement.
Community Development
Director
Building
Building Code Compliance
Building Inspection
Permit Issuance
Structural Design Assessment
Plan Check
Americans with Disabilities
Act (ADA)
Planning
Land-use Planning
Project Processing
Coastal Processing
Architectural Review
Special Project Management
Contract Management
Historic & Environmental
Preservation
General Plan & Zoning
Social Services Program
Business Liaison Program
Housing Program
City Manager
Code Compliance
Code Enforcement
Water Quality Enforcement
Weed Abatement
Volunteer Program
Oversight
Geographic Assignment
Area Program
City Prosecutor Services
Code Education Outreach
Permit/License
Compliance
Park/Beach Enforcement
OCSD Coordination
Services
Community Development Administration
Special Project Management
Intergovernmental Coordination
Deputy Community Development
Director
129
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 Community Development - Admin 735,800 1,099,360 1,101,280 687,340 -37% Building 1,887,919 2,162,170 2,149,120 2,016,230 -7%
Planning 1,900,913 2,349,710 2,195,820 1,882,180 -20%
Code Compliance 1,348,792 1,683,940 1,672,240 1,687,290 0% Total Community Development Budget $5,873,424 $7,295,180 $7,118,460 $6,273,040 -14% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 4,437,710 4,608,330 4,445,800 4,752,300 3%
Supplies 17,818 52,720 52,720 39,450 -25%
Contractual Services 835,353 2,058,500 2,044,660 888,960 -57% Other Charges 10,583 15,030 14,680 14,820 -1%
Interdepartmental Charges 571,960 560,600 560,600 577,510 3% Total Program Budget 5,873,424 7,295,180 7,118,460 6,273,040 -14% Capital/Capital Studies 0 0 0 0 0%
Total Community Development Budget $5,873,424 $7,295,180 $7,118,460 $6,273,040 -14% Personnel Summary 31.50 32.25 32.25 32.25
Accomplishments for FY 2021-22
• Administered the Community Development Block Grant funds, including CDBG-CV for covid purposes which funded the City's Community Outreach Worker position
• Migrated to electronic plan submittals, electronic applications, and a building permit drop off system due to the pandemic • Modified applications to simplify the permit process, updated the Building web page, and utilized Bluebeam plan review platform to issue paperless permits.
• Adopted SB9 Ordinances related to lot subdivision, Housing Element draft for State review • Streamlined the City's Water Efficient Landscape Ordinance (WELO) review process to comply with State requirements • Improved electronic plan submittals for all planning applications • Adopted local fire code regulations to improve enforcement on open space and City properties • Implemented a safety policy for enforecement in compliance with Senate Bill 296. • Implemented a training program for Park Rangers to improve certifications for citation enforcement. • Initiated regular patrols of multiple public parking lots to ensure peace activities. • Implemented notices, policies, and procedures to address abandoned personal property, debris removal, camping, and curfew related regulations.
Key Initiatives for FY 2022-23
• Administer the CDBG grant and provide social service grants to non-profits through American Rescue Plan Funds. • Implement SB-2 Permanent Local Housing Allocation (PHLA) 5 year plan. • Submit revisions to the Municpal Code for outdated provisions in Chapters 8 and 15 • Implement the new Trakit permitting system and solidify the electronic submittal process while opening counter operations. • Amend and Adopt the 2022 California Building Codes.
• Adoption of Zoning Code Amendments for citywide development standards to address new state laws • Complete Local Coastal Program Plan, Categorical Exclusion update & Land Use Plan Amendments • Update the Wireless Telecommunications Facility Master Plan • Complete State annual reporting for the General Plan and Housing Element Annual Progress Report. • Update City Design Guidelines and amend Zoning Code to codify design standards. • Complete and implement a Division Policies and Procedures manual • Assist the Public Safety Committee and Joint Homeless Subcommittee in completion of their respective Work Plans • Transition reporting and activity-tracking processes to electronic formats, and provide mobile capabilities for field staff • Assist OCSD and Marine Safety with e-bicycle enforcement and education on the Beach Trail Community Development
Department Summary
Building 32.1%
Planning 30.0%
Community
Development
Admin 11.0%
Code Compliance
26.9%
Community Development Summary
130
Purpose Statement
Administration Services
• Direct and supervise operations including land use planning, plan processing, building activities, code enforcement and customer service.
• Administer social services programs and targeted economic outreach.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Community Development Admin 735,800 1,099,360 1,101,280 687,340 -37% Total Community Dev Admin Budget $735,800 $1,099,360 $1,101,280 $687,340 -37% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 510,019 554,360 556,280 536,300 -3%
Supplies 1,659 3,100 3,100 3,600 16%
Contractual Services 169,672 488,000 488,000 91,750 -81% Other Charges 1,020 2,270 2,270 2,290 1%
Interdepartmental Charges 53,430 51,630 51,630 53,400 3% Total Program Budget 735,800 1,099,360 1,101,280 687,340 -37% Capital/Capital Studies 0 0 0 0 0%
Total Community Dev Admin Budget $735,800 $1,099,360 $1,101,280 $687,340 -37% Personnel Summary 3.00 3.00 3.00 3.00
Significant Changes:
Contractual services decrease by $396,250 primarily due to the one-time Trak-It implementation costs budget in FY 2021-22, and lower legal costs budgeted in FY 2022-23.
Community Development
Administration Division Summary
To serve as the custodians of San Clemente community development and implement City Council policy related to land development, building codes, construction regulation, code enforcement and regional issues that affect the form and function of San Clemente.
131
Purpose Statement
Building Division Services
• Review and process building, mechanical, plumbing and electrical permit applications. • Perform building plan reviews of residential and commercial buildings to verify compliance with State and City requirements.
• Conduct building, mechanical, plumbing and electrical inspections during construction of residential and commercial buildings in order to verify compliance with State and City requirements. • Maintain permit records and plans document files.
• Provide information to public related to State and City construction codes.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Administration 1,352,893 1,489,190 1,479,320 1,417,660 -5% Inspection 535,026 672,980 669,800 598,570 -11%
Total Building Budget $1,887,919 $2,162,170 $2,149,120 $2,016,230 -7% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,631,557 1,542,660 1,532,510 1,550,500 1%
Supplies 9,369 24,950 24,950 18,250 -27%
Contractual Services 36,485 382,240 379,340 237,750 -38% Other Charges 3,928 3,280 3,280 3,280 0%
Interdepartmental Charges 206,580 209,040 209,040 206,450 -1% Total Program Budget 1,887,919 2,162,170 2,149,120 2,016,230 -7% Capital/Capital Studies 0 0 0 0 0%
Total Building Budget $1,887,919 $2,162,170 $2,149,120 $2,016,230 -7% Personnel Summary 10.75 10.75 10.75 10.75
Significant Changes:
Personnel costs increase slightly due to budget being moved to contractual services during FY 2021-22 to address vacancies with contract assistance.
Contract services decrease $144,490 as a result of lower contract assistance being budgeted in FY 2022-23.
Community Development
Building Division Summary
To ensure the quality of life of those who live, work and visit the City of San Clemente by protecting life and property through the regulation of construction, use and occupancy of buildings, and by providing customer oriented permit, plan review and inspection services in a responsive, knowledgeable, professional, fair manner with integrity and consistency. 132
Purpose Statement
Planning Division Services
• Provide high level of customer service through public counter and telephone assistance, case management, weekly client communications, and business liaisons.
• Develop and maintain the City General Plan, Local Coastal Plan, Zoning Ordinance, Specific Plans and other relevant policy documents.
• Implement the long-range land use, housing, mobility and complete streets, urban design, open space, historic, environmental, coastal and hillside development policies and programs. • Review and process development applications and City Capital Projects to ensure they meet the City's General Plan, Zoning Ordinance, Design Guidelines, and other adopted policies and standards. • Present recommendations and information to the City Council and Planning Commission for policy development. • Review building plan checks for compliance with the Zoning Ordinance and City conditions of approval. • Review and Process environmental reports and related documents.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Long Range Planning 738,639 910,540 849,050 589,890 -35% Current Planning 705,322 907,680 871,300 763,240 -16%
Commissions/Boards/Committees 24,830 50,050 36,240 47,200 -6% Planning Administration 432,122 481,440 439,230 481,850 0% Total Planning Budget $1,900,913 $2,349,710 $2,195,820 $1,882,180 -20% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,381,988 1,404,890 1,262,290 1,542,960 10%
Supplies 827 15,120 15,120 2,920 -81%
Contractual Services 341,526 767,810 756,870 174,500 -77% Other Charges 3,252 6,160 5,810 6,760 10%
Interdepartmental Charges 173,320 155,730 155,730 155,040 0% Total Program Budget 1,900,913 2,349,710 2,195,820 1,882,180 -20% Capital/Capital Studies 0 0 0 0 0%
Total Planning Budget $1,900,913 $2,349,710 $2,195,820 $1,882,180 -20% Personnel Summary 11.00 10.50 10.50 10.50
Significant Changes:
Personnel costs increase by $138,070 due to budget being moved to contractual services during FY 2021-22 to address vacancies with contract assistance, which reflects a portion of the contractual services decrease.
Contractual services additionally decrease from FY 2021-22 based on one-time costs for General Plan updates, Wireless Master Plan, CEQA, and Housing Element assistance.
Community Development
Planning Division Summary
To provide guidance and support to help create a high quality of life in a community that offers opportunities for people to live, work, and play by implementing the City's vision, goals, and policies in the City Centenial General Plan. Provide high quality customer service by treating applicants and the public in a responsive, professional and fair manner. To improve the quality of life for persons of all economic levels through the provision of decent housing, new housing opportunities, social services, and neighborhood revitalization. 133
Purpose Statement
Code Compliance Division Services
• Receive community concerns and complaints regarding violations of the City's Municipal Code (SCMC) and other adopted provisions related to public nuisances, zoning and land-use violations, short-term lodging, signs, commercial operations, noise, new construction and maintenance, and other various regulations. • Investigate and resolve complaints to ensure compliance with applicable SCMC requirements. • Address complaints, and investigate concerns or noncompliance with City-issued permits, licenses, or other approvals. • Review proposed projects through the Development Management process to mitigate potential code enforcement issues by providing comments to applicants and applying discretionary project conditions. • Work as liaisons with the City's various divisions and property owners to provide the education, resources, and contacts available to maintain properties in compliance with the SCMC. • Maintain statistical data on each case to ensure compliance and reporting capability. • Inspect tenant housing complaints for substandard conditions and illegal dwelling units. • Manage and implement the City's annual Weed Abatement Program. • Manage and implement the Volunteer Code Compliance program. • Patrol public-parking areas and assist with the enforcement of violations. • Ensure compliance with the City's public camping and beach curfew-related regulations. • Work with the City Attorney's and Prosecutor's offices to assist in City litigation related to municipal code violations. • Utilize Geographic Assignment Areas and Educational Outreach Programs to proactively reduce future violations.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Code Compliance 1,045,936 1,319,060 1,319,060 1,259,980 -4% Weed Abatement 154,528 156,000 156,000 160,000 3%
Park Ranger 148,328 208,880 197,180 267,310 28%
Total Code Compliance Budget $1,348,792 $1,683,940 $1,672,240 $1,687,290 0% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 914,146 1,106,420 1,094,720 1,122,540 1%
Supplies 5,963 9,550 9,550 14,680 54%
Contractual Services 287,670 420,450 420,450 384,960 -8% Other Charges 2,383 3,320 3,320 2,490 -25%
Interdepartmental Charges 138,630 144,200 144,200 162,620 13% Total Program Budget 1,348,792 1,683,940 1,672,240 1,687,290 0% Capital/Capital Studies 0 0 0 0 0%
Total Code Compliance Budget $1,348,792 $1,683,940 $1,672,240 $1,687,290 0% Personnel Summary* 6.75 8.00 8.00 8.00
* Excludes Community Outreach Workers funded through other funds.
Significant Changes:
Contractual services decrease $35,490 as a result of a one-time cost in FY 2021-22 for a license plate reader system.
Interdepartmental charges increase by $18,420 due to fleet and communications charges.
Community Development
Code Compliance Division Summary
To maintain a safe, healthy environment for our residents and visitors to live, work and play through assuring compliance with the City's land use, environmental and construction codes. In achieving this mission, the Code Compliance Division contributes to the long term stability of the City by protecting its economic vitality and diverstity resulting in a vibrant, balanced community capable of addressing today's needs and planning for tomorrow's challenges. The Division will assure compliance by encouraging voluntary compliance and sanctioning code violators who do not comply willingly. 134
Shading indicates contracted services
Public Works
Department Overview:
The Public Works Department consists of the Administration, Emergency Planning, Engineering and Maintenance Services Divisions. The department is responsible for emergency preparedness, review and inspection of development projects, public right-of-way management and inspection, asset management, traffic engineering, project engineering design and construction management, and operating and maintaining City infrastructure such as City buildings, beaches, parks, sports facilities, streets, traffic signals and street lighting, and trails.
City Manager
Public Works Director /
City Engineer
Public Works Administration
Integrated Management & Oversight
Special Project Management
Policies, Procedures & Technical standards
Administrative & Clerical support
Beaches & Parks Maintenance
Services
Public Tree Maintenance
Parks & Beach Maintenance
Vertebrate Pest Management
Public Restroom Maintenance
Park Improvements &
Renovations
Trail Maintenance
Median Maintenance
Engineering Services
Development Engineering,
Review & Permitting
Public Works &
Right-of-Way Inspection
Traffic Engineering
Capital Improvement Design &
Project Management
Street Improvement
Engineering & Design
Asset Inventory & Management
Computerized Maintenance
Management
Emergency Planning
Disaster Preparedness
Emergency Operations Center
Community Emergency
Response Team
Maintenance Services
Facilities & Street
Maintenance Services
Street Repair & Maintenance
Traffic Signals & Street Light
Maintenance
Facilities Maintenance
Regulatory/Street
Name/Informational Signage
Parking Meter Collection &
Maintenance
Contract Management
Street Cleaning
135
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 Public Works Admin. 1,163,211 1,372,750 1,000,290 1,205,500 -12% Engineering 3,253,790 4,696,680 4,709,570 3,261,310 -31% City Maintenance Services 5,447,226 5,821,450 5,655,440 6,057,670 4% Beaches/Parks Maintenance 6,093,317 8,797,080 8,723,540 8,649,940 -2% Total Public Works Budget $15,957,544 $20,687,960 $20,088,840 $19,174,420 -7% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 6,302,735 7,069,130 6,322,170 6,887,700 -3%
Supplies 617,722 665,150 676,990 681,540 2%
Contractual Services 5,474,311 5,993,290 6,132,310 6,285,340 5% Other Charges 12,503 25,380 16,930 15,580 -39%
Interdepartmental Charges 1,422,115 1,292,820 1,378,820 1,454,260 12% Total Program Budget 13,829,386 15,045,770 14,527,220 15,324,420 2% Capital/Capital Studies 2,128,158 5,642,190 5,561,620 3,850,000 -32% Total Public Works Budget $15,957,544 $20,687,960 $20,088,840 $19,174,420 -7% Personnel Summary 45.30 44.30 44.30 44.30
Accomplishments for FY 2021-22
• Completed construction of OCSD Substation at City Hall and started construction on new City Council Chambers at City Hall • Completed street, median, and streetscape projects including Camino de los Mares, Calle Del Cerro, and Vista Montana • Completed median landscape renovation at Paseo de Cristobal, Ave. Valencia, Esplanade, and Ave Vista Hermosa • Completed street rehabilitation of 32 miles of City streets, including Avenida Pico, Via Pico Plaza, Calle de los Molinos, Avenida Navarro, and Calle De Industrias
• Processed and permitted grading applications for Shorecliffs Senior Housing/Golfcourse Clubhouse and In-N-Out development • Started the citywide signalized intersection improvements • Completed pedestrian bridge maintenance at Montalvo Canyon and Riviera • Completed the North Beach electrical and parking lot lights project • Completed Max Berg and Bonito Parks area lights replacement and Jim Johnson Memorial Park netting • Completed pier concession building exterior renovation • Completed replacement of bathroom partitions in 11 park restrooms Key Initiatives for FY 2022-23
• Complete Marine Safety Building relocation study
• Complete the Ave. Del Mar electrical services and pavement rehabilitation and paint the street lights on Ave. Del Mar • Complete the City Council chambers project at City Hall • Complete the Ave. Vaquero street rehabilitation project • Complete the design and permitting for the replacement of the Beach Trail bridge at Mariposa Point. • Complete the Steed Park playground equipment replacement project and replace the Verde Park tennis court fence • Complete the renovation of the base of Pier family restrooms • Provide monthly street pressure washing in the T-Zone • Paint Marblehead and Rancho San Clemente Parks restrooms • Replace the gates to the Rancho San Clemente Ridgeline Trail on Ave. Del Cerro Public Works
Department Summary
Public Works
Admin. 6.3%
Engineering
17.0%
City Maintenance
Services 31.6%
Beaches/Parks
Maintenance
45.1%
Public Works Summary
136
Purpose Statement
Administration Services
• Direct activities of the Engineering Services, Maintenance Services and Emergency Planning Divisions. • Develop and monitor annual operating and capital improvement project budgets. • Provide administrative and records management support. • Develop and implement emergency response operating plans and conduct related readiness training. • Develop and update policies, procedures and technical design standards.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Public Works Admin. 985,549 1,180,460 849,920 1,005,930 -15% Emergency Planning 177,662 192,290 150,370 199,570 4%
Total Public Works Admin Budget $1,163,211 $1,372,750 $1,000,290 $1,205,500 -12% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 965,918 1,095,930 765,660 969,870 -12%
Supplies 6,251 7,450 7,570 9,950 34%
Contractual Services 55,904 111,640 77,880 94,980 -15%
Other Charges 5,848 17,780 9,230 7,780 -56%
Interdepartmental Charges 129,290 129,950 129,950 122,920 -5% Total Program Budget 1,163,211 1,362,750 990,290 1,205,500 -12% Capital/Capital Studies 0 10,000 10,000 0 -100%
Total Public Works Admin Budget $1,163,211 $1,372,750 $1,000,290 $1,205,500 -12% Personnel Summary 7.00 6.00 6.00 6.00
Significant Changes:
Personnel costs decrease by $126,060 due to staff changes related to vacancies and shifts to contract services.
Contractual services decrease by $16,660 as a result of Emergency Planning services and other contract assistance.
Public Works
Administration Summary
To provide leadership and coordination of engineering, design, maintenance and emergency planning functions to ensure timely, cost effective and efficient delivery of services to all City Departments and the public in accordance with federal, state, and local regulations.
137
Purpose Statement
Engineering Division Services
• Provide engineering design, administration and construction of public works projects. • Issue residential/commercial development grading and construction inspection permits, right-of-way encroachment permits and transportation permits.
• Provide transportation, traffic, and parking services. • Process development projects and coordinate with Planning and Building divisions for development project reviews. • Conduct inspections of grading, water, sewer, streets, drainage and City facility projects to ensure conformance with approved plans and specifications.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Development Engineering 609,424 669,440 676,430 642,440 -4% Inspection 395,060 398,080 394,990 379,670 -5%
Traffic 561,355 523,020 451,690 408,390 -22%
Design & Development 99,134 20,800 95,530 -95,350 -558% Streets Engineering 369,410 533,320 538,910 678,350 27% Major Street Maintenance 1,219,407 2,552,020 2,552,020 1,247,810 -51% Total Engineering Budget $3,253,790 $4,696,680 $4,709,570 $3,261,310 -31% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 2,447,922 2,837,560 2,649,140 2,705,930 -5%
Supplies 11,660 16,840 15,820 8,050 -52%
Contractual Services -659,713 -702,710 -576,240 -755,740 8% Other Charges 320 350 350 350 0%
Interdepartmental Charges 246,305 134,740 209,740 202,720 50% Total Program Budget 2,046,494 2,286,780 2,298,810 2,161,310 -5% Capital/Capital Studies 1,207,296 2,409,900 2,410,760 1,100,000 -54% Total Engineering Budget $3,253,790 $4,696,680 $4,709,570 $3,261,310 -31% Personnel Summary 15.00 15.00 15.00 15.00
Significant Changes:
Personnel costs decrease by $131,630 due to staff changes related to vacancies and other benefit costs.
Interdepartmental charges increase by $67,980 due to lower recovery of costs from other funds.
Capital costs decrease $1.3 million related to various one-time projects and projects carried over to FY 2021-22.
Public Works
Engineering Services Summary
To provide professional engineering services for the planning, design, construction, inspection and maintenance of City infrastructure to meet existing and future demands for adequate services, that include transportation, park facilities, water supply and distribution, sewage collection and treatment, environmental protection, and drainage collection and conveyance.
138
Purpose Statement
City Maintenance Services
• Maintain and repair City-owned streets, sidewalks, traffic signals, traffic signs, street striping, parking meters and pay stations, street lights, and unimproved storm drainage channels. • Maintain City facilities and buildings.
• Manage contract street sweeping program.
• Support Engineering Division (Traffic Transportation) to manage traffic flow through coordinating traffic signals. • Support the Street Improvement Program, Major Street Maintenance and Slurry Seal programs.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Traffic Signals 880,625 1,019,310 965,980 1,107,570 9%
Traffic Maintenance 357,138 360,120 376,970 451,390 25% Maintenance Services Admin. 727,136 871,370 856,520 850,400 -2% Street Maintenance & Repair 547,233 597,320 486,840 681,880 14% Senior Center Facility 49,779 74,540 77,900 77,370 4%
Parking Maintenance 326,054 254,080 266,390 162,930 -36% Facilities Maintenance 2,120,522 2,177,890 2,201,320 2,292,390 5% Street Lighting 438,739 466,820 423,520 433,740 -7%
Total City Maintenance Services Budget $5,447,226 $5,821,450 $5,655,440 $6,057,670 4% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 2,453,320 2,659,550 2,430,350 2,746,020 3%
Supplies 301,514 329,700 342,350 352,540 7%
Contractual Services 1,632,284 1,867,000 1,906,440 1,929,990 3% Other Charges 6,335 6,950 7,050 7,150 3%
Interdepartmental Charges 780,990 707,750 718,750 721,970 2% Total Program Budget 5,174,443 5,570,950 5,404,940 5,757,670 3% Capital/Capital Studies 272,783 250,500 250,500 300,000 20% Total City Maintenance Services Budget $5,447,226 $5,821,450 $5,655,440 $6,057,670 4% Personnel Summary 20.80 20.80 20.80 20.80
Significant Changes:
Personnel increases $86,470 due to staffing changes and funding positions.
Contractual services increase $62,990 due to higher energy, custodial services and bank merchant fees, Capital increased by $49,500 due to funding the routine facility maintenance.
Public Works
Facilities and Street Maintenance Services
To provide proactive and cost effective maintenance support services for the City's facilities and structures to achieve their maximum expected design life and to ensure a safe environment for the public and City employees. 139
Purpose Statement
Beaches/Parks Maintenance Services
• Oversee maintenance for beaches, parks, trails, medians, public trees, and the utilities facilities landscape. • Manage maintenance contractors to ensure compliance with expected service levels. • Maintain park playground equipment to safety standards regulated by the Federal Government.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Trail Maintenance 211,950 255,470 255,590 261,100 2%
Street Median & Trees 297,411 372,500 372,500 372,500 0% Streetscapes 576,162 881,180 879,680 658,330 -25%
Park Maintenance 3,411,833 3,768,510 3,701,070 4,707,550 25% Beach Maintenance 1,040,255 2,892,630 2,886,730 2,029,030 -30% Parks & Beach Maint. Administration 555,706 626,790 627,970 621,430 -1% Total Beaches/Parks Maint. Budget $6,093,317 $8,797,080 $8,723,540 $8,649,940 -2% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 435,575 476,090 477,020 465,880 -2%
Supplies 298,297 311,160 311,250 311,000 0%
Contractual Services 4,445,836 4,717,360 4,724,230 5,016,110 6% Other Charges 0 300 300 300 0%
Interdepartmental Charges 265,530 320,380 320,380 406,650 27% Total Program Budget 5,445,238 5,825,290 5,833,180 6,199,940 6% Capital/Capital Studies 648,079 2,971,790 2,890,360 2,450,000 -18% Total Beaches/Parks Maint. Budget $6,093,317 $8,797,080 $8,723,540 $8,649,940 -2% Personnel Summary 2.50 2.50 2.50 2.50
Significant Changes:
Interdepartmental charges increase $86,270 due to park asset and facilities replacement charges.
Capital costs decrease $521,790, due to various one-time projects in the prior year including the Sand Replenishment project for $1.9 million in FY 2021-22.
Public Works
Beaches/Parks Maintenance Services Summary
To maintain and preserve beaches, parks, trails, medians, City maintenance landscapes, the City's urban forest and the pier in an efficient, safe and cost-effective manner.
140
Shading indicates contracted services
Beaches, Parks & Recreation
Department Overview:
The Beaches, Parks & Recreation Department consists of the Administration, Recreation, and Golf divisions.
The department operates several key community resources and historic facilities, and offers a wide range of enriching programs, services, and community special events that contribute to the quality of life in San Clemente. From our famous pier and beaches, to our beautiful inland trails and hillsides, the department strives to serve the community's needs while helping to celebrate and preserve the many truly unique and special qualities that make San Clemente such an outstanding place to live, work, and play.
City Manager
Beaches, Parks and
Recreation Director
Beaches, Parks & Recreation Administration
Organizational Development
Beaches, Parks & Recreation Commission
Long & Short Term Planning
Golf
Maintenance & Operation
of Municipal Golf Course
Golf Course Committee
Landscape Maintenance
Contract Administration of
Pro-Shop Operations
Recreation
Recreation Magazine
Park & Facility Monitoring
Volunteers
Youth/Adult Sports
Special Events
City Partnership Events
Commercial Filming Permits
After School Programs
Aquatic Programs
Recreation Classes
Park & Facility Rentals
Special Event Permits
141
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Department Summary Actual Adj Budget Projected Budget To Bud 22-23 Beaches, Parks & Rec. Admin. 425,683 468,570 479,890 541,060 15% Recreation 3,769,983 5,295,040 5,022,130 5,295,920 0%
Total Beaches, Parks & Rec. Budget $4,195,666 $5,763,610 $5,502,020 $5,836,980 1% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 2,336,191 3,173,190 2,859,290 3,188,160 0%
Supplies 180,832 246,580 247,810 240,920 -2%
Contractual Services 531,981 934,300 954,890 930,000 0% Other Charges 715,852 988,380 1,018,870 1,055,660 7%
Interdepartmental Charges 430,810 421,160 421,160 422,240 0% Total Program Budget 4,195,666 5,763,610 5,502,020 5,836,980 1% Capital/Capital Studies 0 0 0 0 0%
Total Beaches, Parks & Rec. Budget $4,195,666 $5,763,610 $5,502,020 $5,836,980 1% Personnel Summary 17.75 17.75 17.75 17.75
Accomplishments for FY 2021-22
• Continued site specific park master plan updates for Linda Lane Park, San Luis Rey Park, San Gorgonio Park, Bonito Canyon Park, and Richard T. Steed Park.
• Maintained the golf course at level B during peak season while providing recreational golf opportunities to the public. • Established a public facility code of conduct to improve customer service and provide a safe environment for all recreation facility patrons
• Launched golf course marshal program to improve golfer experience. • Made improvements on golf course amenities including releveling and resurfacing three tee boxes, customizing tee markers manufactured from fallen trees on the golf course and branded with SC logo, completed installation of yardage markers for fairway.
• Established modified uses of e-bike and bicycles on the beach trail.
Key Initiatives for FY 2022-23
• Complete site specific master plan updates for Linda Lane Park, San Luis Rey Park, San Gorgonio Park, Bonito Canyon Park, and Richard T. Steed Park.
• Improve recruitment and retention of hourly part-time staff members (i.e., pool lifeguards, recreation leaders, etc.) in an effort to continue to reopen all recreation facilities to full capacity. • Revise and/or update policies related to fee waivers and partnership agreements, including sports partners, community partners, and event partners. • Evaluate and enhance the sports league offerings for youth and adult sports. • Review and update recreation fees for facilities and services • Assess and implement use of an Asset Management system at golf course to improve workflow and asset administration • Adjust aeration dates and schedule at golf course to heal greens faster and maximize water infiltration from winter rains • Establish a Greens nursery on the golf course • Complete the Steed Park Concession stand upgrades and open services to the public with in-house operations Beaches, Parks & Recreation
Department Summary
Beaches,
Parks & Rec.
Admin. 9.3%
Recreation
90.7%
Beaches, Parks and Recreation Summary
142
Purpose Statement
Beaches, Parks & Recreation Administration Services
• Direct the Beaches, Parks and Recreation divisions of the City. • Provide staff assistance to the Beaches, Parks & Recreation Commission.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Beaches, Parks & Rec. Admin. 425,683 468,570 479,890 541,060 15% Total BP&R Administration Budget $425,683 $468,570 $479,890 $541,060 15% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 341,348 380,880 392,600 479,650 26%
Supplies 9,873 11,180 11,180 2,230 -80%
Contractual Services 25,652 27,960 27,560 3,050 -89%
Other Charges 600 1,150 1,150 9,120 693%
Interdepartmental Charges 48,210 47,400 47,400 47,010 -1% Total Program Budget 425,683 468,570 479,890 541,060 15% Capital/Capital Studies 0 0 0 0 0%
Total BP&R Administration Budget $425,683 $468,570 $479,890 $541,060 15% Personnel Summary 2.00 3.00 3.00 3.00
Significant Change:
Personnel costs increase $98,770 due to the Management Analyst position funding.
Contractual service decrease $24,910 due to Park Master Plans budgeted in FY 2021-22.
Other charges increase by $7,970 due to the wellness program being reclassified to administration.
Beaches, Parks & Recreation
Administration Division Summary
To provide support, direction and oversight to Recreation Division and programs with an emphasis on community needs, environmental conservation, conserving historic facilities, providing enriching programs and special community events, and service to the public in an enjoyable and safe manner. 143
Purpose Statement
Recreation Services
• Develop and implement a variety of recreation programs and events for the community. • Coordinate City services for community partnered events. • Collaborate with community organizations to acquire funding and resources for programs. • Provide exceptional customer service to residents.
• Facilitate appropriate use of public facilities and parks through a permit process.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Program Summary Actual Adj Budget Projected Budget To Bud 22-23 Ole Hanson Beach Club (OHBC) 126,433 138,530 159,190 202,280 46% Community Center 491,259 597,290 563,030 586,880 -2%
Community Services 1,058,500 1,240,400 1,200,430 1,203,600 -3% Aquatics 888,332 1,282,120 1,134,830 1,139,270 -11%
VH Sports Field/SC Aquatics Facility 579,800 752,550 732,470 854,700 14% Steed Park Operations 166,680 676,530 632,790 629,510 -7% Recreation Programs/Events 458,979 607,620 599,390 679,680 12% Total Recreation Budget $3,769,983 $5,295,040 $5,022,130 $5,295,920 0% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Category Expenditure Summary Actual Adj Budget Projected Budget To Bud 22-23 Personnel 1,994,843 2,792,310 2,466,690 2,708,510 -3%
Supplies 170,959 235,400 236,630 238,690 1%
Contractual Services 506,329 906,340 927,330 926,950 2% Other Charges 715,252 987,230 1,017,720 1,046,540 6%
Interdepartmental Charges 382,600 373,760 373,760 375,230 0% Total Program Budget 3,769,983 5,295,040 5,022,130 5,295,920 0% Capital/Capital Studies 0 0 0 0 0%
Total Recreation Budget $3,769,983 $5,295,040 $5,022,130 $5,295,920 0% Personnel Summary 15.75 14.75 14.75 14.75
Significant Changes:
Personnel costs decrease by $83,800 due to staffing changes and other program activities.
Contractual services includes increases to electricity costs offset partially by one-tim maintenance cost decreases.
Increase in Other Charges is due primarily to increases on contract class instructor payments of $36,600 and special. event activities of $15,090.
Beaches, Parks & Recreation
Recreation Division Summary
To promote health, wellness, and quality of life through services and programs that strengthen a sense of place and community, promote cultural unity, and facilitate neighborhood and community problem solving. 144
Special Revenue Funds account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes.
Special Revenue Funds
Street
Improvement
Fund
Gas Tax Fund Miscellaneous
Grants Fund
Disaster Relief
Fund
Air Quality
Improvement
Fund
Local Cable
Infrastructure
Fund
Police Grants
Fund Local Transit
Building
Homes & Jobs
Act
145
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $8,253,496 $6,487,710 $6,487,710 $1,346,550 -79% Revenues:
Street Improvement Assessments 5 0 0 0 0%
Measure M2 Apportionment 1,025,451 964,670 964,670 964,670 0% Investment Earnings -19,812 135,000 69,600 75,000 -44%
Miscellaneous Income 24 0 0 0 0%
Transfer from General Fund 500,000 500,000 500,000 500,000 0% Transfer from Water Depreciation 100,000 100,000 100,000 100,000 0% Transfer from Sewer Depreciation 65,650 100,000 100,000 100,000 0% Total Revenues 1,671,318 1,799,670 1,734,270 1,739,670 -3% Expenditures:
Contractual Services 872,242 988,240 908,240 625,000 -37% Capital Improvements* 2,511,630 6,144,480 5,904,480 2,190,000 -64% Interdepartmental Charges 53,230 62,710 62,710 81,470 30% Total Expenditures 3,437,102 7,195,430 6,875,430 2,896,470 -60% Ending Balance $6,487,712 $1,091,950 $1,346,550 $189,750 -83% Fund Balance: Fund balance will be $189,750 at the end of FY 2022-23.
Street Improvement Fund
042-848
Description: The Street Improvement Fund was a benefit assessment district approved by the City Council on July 19, 1995, established to provide a designated fund for the rehabilitation of City streets. This assessment district expired in FY 2011-12, but the fund is utilized for rehabilitation of City streets with other revenue amounts.
Funding Source: Revenue sources include Measure M monies, contributions from the City's General Fund and investment earnings. In addition, Water and Sewer projects are coordinated with street improvement projects to minimize surface reconstruction costs. Funds for these projects are transferred in from the applicable Water and Sewer Depreciation Reserves.
Legal Basis: Measure M monies are governed by the County of Orange Transportation Authority and are restricted. The General Fund and Other Fund transfers are not legally restricted.
Budget Overview: Revenues for FY 2023 include Measure M2 revenues in the amount of $964,670, investment earnings of $75,000 and transfers from other funds of $700,000. Expenditures include capital improvements of $1.5 million for street improvement program projects, and $690,000 for Alley Pavement Rehabilitation. 146
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Budget 22-23 Via Pico Plaza Rehabilitation 281,023 65,320 65,320 0 -100% Ave Presidio Rehabilitation - Phase II 484 0 0 0 0%
Avenida Navarro 373,070 36,020 36,020 0 -100%
Calle Los Molinos 980,654 193,050 193,050 0 -100%
S. La Esperanza 167 0 0 0 0%
Alley Pavement Rehabilitation 40,774 893,900 893,900 0 -100% FY 2019 Street Improvement Projects 120 0 0 0 0%
FY 2020 Street Improvement Projects 763,622 0 0 0 0%
Alley Pavement Rehabilitation FY 2020 37,922 649,990 649,990 0 -100% Del Mar Street Rehabilitation 2,578 1,247,420 1,247,420 0 -100% Street Improvement Projects FY 2021 31,216 868,780 868,780 0 -100% Street Improvement Projects FY 2022 0 1,500,000 1,500,000 0 -100% Alley Pavement Rehabilitation FY 2022 0 690,000 450,000 0 -100% Street Improvement Projects FY 2023 0 0 0 1,500,000 100% Alley Pavement Rehabilitation FY 2023 0 0 0 690,000 100% Total Capital Improvements $2,511,630 $6,144,480 $5,904,480 $2,190,000 -64% Street Improvement Fund
147
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $6,644,138 $6,206,440 $6,206,440 $1,505,280 -76% Revenues:
2103 Motor Vehicle Fuel Tax 430,867 577,780 577,780 630,980 9% 2105 Apportionment (Prop. 111) 329,018 376,490 376,490 413,340 10% 2106 Apportionment 204,994 231,800 231,800 254,690 10%
2107 Apportionment 445,217 479,110 479,110 564,690 18%
2107.5 Apportionment 7,500 7,500 7,500 7,500 0%
2031 Apportionment 1,187,196 1,278,320 1,278,320 1,460,000 14% Measure M Grant 182,606 0 0 0 0%
OCTA Senior Transportation 78,787 78,000 78,000 78,000 0% Investment Earnings 17,854 115,800 63,310 76,600 -34%
Other County Grants 0 1,075,120 1,075,120 0 -100%
Transfer from General Fund 14,590 14,590 14,590 14,590 0% Transfer from 2106 Gas Tax Fund 0 500,000 0 0 -100%
Transfer from Other Funds 65,000 95,000 95,000 95,000 0% Total Revenues 2,963,629 4,829,510 4,277,020 3,595,390 -26% Expenditures:
Contractual Services 0 25,000 25,000 25,000 0%
Other Charges 22,840 59,000 59,000 59,000 0%
Capital Improvements* 2,806,252 8,314,700 8,314,700 3,820,000 -54% Interfund Charges 48,860 57,480 59,480 52,630 -8%
Transfer to General Fund 523,374 451,350 520,000 530,000 17% Transfer to Other Funds 0 500,000 0 300,000 -40%
Total Expenditures 3,401,326 9,407,530 8,978,180 4,786,630 -49% Ending Balance $6,206,441 $1,628,420 $1,505,280 $314,040 -81% Fund Balance: Fund balance is budgeted to be $314,040 at the end of FY 2022-23.
Gas Tax Funds
011-864/012-861/013-802/015-806
Description: The Gas Tax Fund is utilized for new construction and the reconstructing of City streets and the placement of asphalt concrete overlays of one inch or more in thickness. The fund also provides for the improvement and maintenance of county arterial bikeways and pedestrian walkways.
Funding Source: The main revenue sources for this fund are Gas Tax apportionments (2103, 2105, 2106, 2107, 2107.5), Traffic Congestion Relief, and Road Maintenance and Rehabilitation Account (2031) funds. Measure M revenues in this fund are grant revenues that are related to specific capital projects.
Legal Basis: This fund is governed by the California Street & Highways Code. Resources in this fund are restricted.
Budget Overview: Revenues for this fund include Gas taxes, grants, transfers, and other State program receipts. Fiscal year 2022-23 Capital projects, totaling $3.8 million include projects for Arterial Street Pavement Maintenance ($1.5 million), RMRA Sidewalk repair and improvements Improvements ($1.3 million), Pavement Preservation ($700,000), Traffic Signal Conversion - Various Intersections ($150,000), Street Sign Replacement Program ($100,000), and Camino Del Rio & Avenida La Pata Extention ($95,000). Transfers include $530,000 to the General Fund. 148
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Budget 22-23 Ave Pico & Calle Industrias Traffic Sig. Upg. 0 30,000 30,000 0 -100% Camino Del Rio & Ave. La Pata Extension 65,382 95,000 95,000 95,000 0% Ave Pico - Los Molinos to Pico Plaza 421,495 21,990 21,990 0 -100% Intersection Control for Camino Vera Cruz/Costa 440,545 56,220 56,220 0 -100% Signal Sync of Camino Vera Cruz Corridor 851 2,000 2,000 0 -100% Alley Pavement Rehab 19,359 354,640 354,640 0 -100%
Camino De Los Mares Rehab I-5 to Vaquero 1,173,212 2,673,380 2,673,380 0 -100% Arterial Street Pavement Maintenance 34,941 0 0 0 0%
S. El Camino Real (Ave Mendocino to City Limit) 16,528 1,283,470 1,283,470 0 -100% Arterial Street Pavement Maintenance FY 21 623,217 0 0 0 0% Traffic Signal Head Protected/Permissive Signal 10,722 148,000 148,000 0 -100% Street Sign Replacement Program 0 100,000 100,000 100,000 0% Del Mar Street Rehabilitation 0 450,000 450,000 0 -100% RMRA Signalized Intersection Improvements 0 1,100,000 1,100,000 0 -100% Arterial Street Pavement Maintenance FY 2022 0 1,500,000 1,500,000 0 -100% Pavement Preservation Program FY 2022 0 500,000 500,000 0 -100% Sidewalk Improvements FY 2023 0 0 0 725,000 100%
As Needed Sidewalk Repair and Improvements 0 0 0 550,000 100% Pavement Preservation Program FY 2023 0 0 0 700,000 100% Arterial Street Pavement Maintenance FY 2023 0 0 0 1,500,000 100% Traffic Signal Conversion - Various Intersections 0 0 0 150,000 100% Total Capital Improvements $2,806,252 $8,314,700 $8,314,700 $3,820,000 -54% Gas Tax Fund
149
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $360,453 $356,610 $356,610 $370,360 4% Revenues:
CDBG Home Rehabilitation 0 125,180 125,180 70,000 -44%
Public Facilities/Infrastructure Grant 5,482 770,010 770,010 130,000 -83% Commercial Rehabilitation Grant 0 33,290 14,000 14,000 -58% Public Services Grant 48,999 53,400 49,000 49,000 -8%
CDBG Administration Grant 33,535 64,890 64,890 65,900 2% CDBG CV Grant 485,262 154,430 154,430 0 -100%
Program Income -463 10,000 10,000 10,000 0%
Total Revenues 572,815 1,211,200 1,187,510 338,900 -72% Expenditures:
Personnel 7,093 122,350 141,210 16,350 -87%
Contractual Services 126,424 232,510 186,720 174,500 -25% Other Charges 432,773 62,890 62,380 44,000 -30%
Capital Outlay 5,482 770,010 770,010 130,000 -83%
Interfund Transfers 691 9,400 9,400 9,400 0%
Interfund Charges 4,200 4,040 4,040 3,820 -5%
Total Expenditures 576,663 1,201,200 1,173,760 378,070 -69% Ending Balance $356,605 $366,610 $370,360 $331,190 -10% Programs:
C.D.B.G. Housing Rehabilitation
Contractual Services 2,907 125,180 125,180 125,000 0%
Other Charges 480 0 130 0 0%
C.D.B.G. Commercial Rehabilitation
Contractual Services 0 0 2,000 0 0%
C.D.B.G. CV Grant
Personnel 7,093 106,000 124,860 0 -100%
Contractual Services 89,875 29,540 29,540 0 -100%
Other Charges 388,293 18,890 18,250 0 -100%
Public Services
Other Charges 44,000 44,000 44,000 44,000 0%
Transfer to General Fund 0 9,400 9,400 9,400 0%
City Administration
Personnel 0 16,350 16,350 16,350 0%
Contractual Services 33,642 77,790 30,000 49,500 -36%
Interdepartmental Charges 4,200 4,040 4,040 3,820 -5%
Transfer to General Fund 691 0 0 0 0%
Public Facility/Infrastructure
CDBG Sidewalk Improvements 5,482 770,010 770,010 130,000 -83% Total Expenditures $576,663 $1,201,200 $1,173,760 $378,070 -69% Fund Balance: The FY 2022-23 fund balance of $331,190 includes rehabilitation loan receivable amounts.
Miscellaneous Grants Fund
017-990
Description: The Miscellaneous Grants Fund is comprised of Federal Housing and Urban Development Community Development Block Grants (C.D.B.G.) and other grants received by the City for various projects related to community programs and public improvements.
Funding Source: The major source of revenue for this fund is C.D.B.G. monies.
Budget Overview: This fund includes CDBG grant revenues and program costs. Housing rehabilitation for low income households and infrastructure activities continue to be the major program initiative funded for FY 2022-23.
Legal Basis: Resources in this fund are restricted based on the grant agreement. 150
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $460,126 $262,100 $262,100 $1,331,400 408% Revenues:
Other Federal Grant 121,726 7,491,800 7,491,800 0 -100% Other State Grant 797,390 0 0 0 0%
Investment Earnings 13,353 2,000 25,000 3,000 50%
Transfer from Other Funds 0 0 0 475,000 100%
Total Revenues 932,469 7,493,800 7,516,800 478,000 -94% Expenditures:
Personnel 308,973 385,370 408,400 450,000 17%
Supplies 170,302 0 100 0 0%
Contractual Services 643,450 251,650 220,000 0 -100%
Other charges 5,751 174,000 174,000 0 -100%
Capital Outlay* 2,020 4,600,000 4,600,000 500,000 -89%
Transfer to General fund 0 795,000 795,000 800,000 1%
Transfer to Other funds 0 250,000 250,000 0 -100%
Total Expenditures 1,130,496 6,456,020 6,447,500 1,750,000 -73% Ending Balance $262,099 $1,299,880 $1,331,400 $59,400 -95% Fund Balance: Fund Balance remaining is to be available to fund other pandemic related impacts. Funds projected to be remaining at the end of FY 2022-23 is $59,400.
Disaster Relief Fund
016-804
Description: The Disaster Relief fund was reactivated in FY 2019-20 and is utilized to pay for costs related to COVID related activities. The Disaster Relief Fund will be used to track costs incurred related to the pandemic and be used to provide resources to mitigate the impact to citizens and staff.
Funding Source: This fund was initially funded in FY 2019-20 through transfers from the General Fund and the General Liability Fund. These amounts provided were to provide initial amounts to fund COVID related costs until Federal and/or State resources are made available from grants or other resources.
Legal Basis: The funds contributed are to be used the the payment of COVID associated costs. The amounts were contributed from unrestricted resources. As amounts are recovered through grants or other funding the amounts received will be reimburse costs already paid by the City.
Budget Overview: Revenues are currently not budgeted from Federal or State resources due to the uncertain timing of the receipts. Costs paid from this fund are related to COVID and used to pay for the protection of citizens and staff in the delivery of services to the public. A transfer in of $475,000 will reimburse costs for the Council Chambers. Capital costs of $500,000 are for additional funding for Steed Park improvements and a transfer out of $800,000 is to fund public safety costs in the General Fund.
151
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Budget 22-23 Steed Park Lighting 0 1,500,000 1,500,000 500,000 -67%
Council Chambers 0 2,000,000 2,000,000 0 -100%
Vista Hermosa Aquatic Center Pool Replaster 0 1,100,000 1,100,000 0 -100% Improvements other than buildings 2,020 0 0 0 0%
Total Capital Improvements $2,020 $4,600,000 $4,600,000 $500,000 -89% Disaster Relief Fund
152
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance -$44,099 $98,010 $98,010 $422,920 332% Revenues:
Other County Grants 0 518,580 400,000 0 -100%
Pollution Subventions 84,329 80,000 80,000 84,000 5%
Investment Earnings -23 1,000 1,200 2,000 100%
Transfer from General Fund 70,870 0 0 0 0%
Total Revenues 155,176 599,580 481,200 86,000 -86%
Expenditures:
Contractual Services 13,064 156,290 156,290 80,000 -49% Total Expenditures 13,064 156,290 156,290 80,000 -49%
Ending Balance $98,013 $541,300 $422,920 $428,920 -21%
Fund Balance: Fund balance will be $428,920 by the end of FY 2022-23.
Air Quality Improvement Fund
019-819
Description: The Air Quality Improvement Fund is utilized for programs designed to reduce air pollution from motor vehicles pursuant to either the California Clean Air Act of 1988 and/or the South Coast Air Quality Management District's (AQMD) plan prepared pursuant to Section 40460 of the California Health and Safety Code.
Funding Source: This fund receives revenue from the South Coast Air Quality Management District which levies a fee on motor vehicles registered within the District. Forty percent of the fees collected are distributed to cities in the district that have adopted mobile source air pollution reduction ordinances.
Legal Basis: The fees collected to support this fund are governed by the provisions of Section 44223 of the California Health and Safety Code. The City adopted Ordinance No. 1047 on April 17, 1991. This ordinance requires that the fees received be deposited into a separate Air Quality Improvement Fund, and be used for programs described above. Resources in this fund are restricted.
Budget Overview: Revenues of $86,000 are budgeted to be received during FY 2022-23. Expenditures of $80,000 for traffic calming program is budgeted in FY 2022-23.
153
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $1,056,199 $1,257,210 $1,257,210 $762,340 -39% Revenues:
Franchise Taxes 201,365 210,000 200,000 200,000 -5%
Investment Earnings 6,262 17,000 13,500 14,000 -18%
Total Revenues 207,627 227,000 213,500 214,000 -6%
Expenditures:
Capital Improvements* 647 702,210 702,210 0 -100%
Interfund Charges 5,970 6,160 6,160 7,290 18%
Total Expenditures 6,617 708,370 708,370 7,290 -99%
Ending Balance $1,257,209 $775,840 $762,340 $969,050 25% *Detail of Capital Improvements
Machinery and Equipment 647 702,210 702,210 0 -100%
Total Capital Improvements $647 $702,210 $702,210 $0 -100% Fund Balance: Fund balance will be $969,050 at the end of FY 2022-23.
Budget Overview: Revenues of $214,000 are budgeted during FY 2022-23.
Local Cable Infrastructure Fund
018-245
Description: The Local Cable Infrastructure Fund is utilized to account for restricted funds received from Local Cable Companies (video service franchises). These funds are restricted to be used for equipment and infrastructure needs for public, educational, and government programing.
Funding Source: This fund receives revenue from any State video service franchise operating within the City limits. The fee is equal to 1% of the gross revenue of that franchisee.
Legal Basis: The fees collected to support this fund are governed by the State of California "Digital Infrastructure and Video Competition Act" (DIVCA), set forth as Public Utilities Code Section 5800. The City adopted Ordinance No. 1503 on April 6, 2010. The fees collected are restricted to be used for capital costs for public, educational, or government access facilities. 154
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $259,931 $262,220 $262,220 $239,650 -9% Revenues:
Federal & State Grants 156,731 156,700 157,660 161,280 3% Investment Earnings 553 5,000 3,500 5,000 0%
Donations from Private Sources 0 0 7,000 0 0%
Total Revenues 157,284 161,700 168,160 166,280 3%
Expenditures:
Contractual Services 155,000 159,700 159,700 161,300 1% Other Charges 0 38,030 31,030 31,030 -18%
Total Expenditures 155,000 197,730 190,730 192,330 -3%
Ending Balance $262,215 $226,190 $239,650 $213,600 -6%
Budget Overview: A portion of two deputy positions are partially funded by a state COPS grant. Donations to this fund are used to fund the Crime Prevention, Character Counts, Parent Project and Chaplain programs. Program expenses vary depending on the amount of donations received.
Fund Balance: Fund balance is budgeted to be $213,600 at the end of FY 2022-23.
Police Grants Fund
002-217
Description: The Police Grants Fund was established in 2001 to track various Federal and State grants, donations to the Police Services programs and narcotic forfeiture monies.
Funding Source: This fund receives revenue from Federal grants (Local Law Enforcement Block Grant - LLEBG), State Citizens Option for Public Safety grant (State COPS), donations (Chaplains, Neighborhood Watch, Character Counts) and narcotic forfeitures. The grant monies from Local Law Enforcement and Supplemental Law Enforcement must be used for "front-line" enforcement such as additional personnel or field equipment. These are awarded on an annual basis. The COPS grant is allocated to the City from the State for the purpose of ensuring public safety. Donations are received from the community and local businesses for specific programs presented by the Sheriff's Department. Narcotic forfeiture monies are received from the Federal government for the City's participation in activities that recover cash or assets from convicted drug offenders.
Legal Basis: The fees collected to support this fund are governed by the provisions of the individual grants and are to be used for programs described above. Resources in this fund are restricted. 155
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $0 $0 $0 $164,090 100%
Revenues:
Other County Grants 0 169,630 182,880 182,880 8%
Trolley Transit Program 0 374,620 374,620 382,720 2%
Investment Earnings 0 0 0 500 100%
Transfer from General Fund 0 70,870 70,870 200,000 182% Transfer from Other Funds 0 250,000 250,000 0 -100%
Total Revenues 0 865,120 878,370 766,100 -11%
Expenditures:
Contractual Services 0 787,950 714,280 723,290 -8%
Interdepartmental Charges 0 0 0 39,230 100%
Total Expenditures 0 787,950 714,280 762,520 -3%
Ending Balance $0 $77,170 $164,090 $167,670 117%
Fund Balance: Fund balance is budgeted at $167,670 at the end of FY 2022-23.
Local Transit Program
021-808
Description: The Local Transit Program Fund was established to provide a designated fund for the San Clemente Rides and Trolley transit programs funded by the Orange County Transit Authority under the Measure M2 program. Both programs contain a 90% reimbursement clause with a 10% match from the City General fund.
Funding Source: This fund includes grant revenues from the Orange County Transit Authority (OCTA) Measure M2 grants for the SC Rides program and the summer trolley activities. A transfer from General Fund is used to fund the match requirement related to these program activities. Revenue sources include OCTA Measure M2 monies, contributions from the City's General Fund and investment earnings.
Legal Basis: Measure M monies are governed by the Orange County Transportation Authority (OCTA) and are restricted.
Budget Overview: Revenues for FY 2023 include Measure M2, project V funds in the amount of $382,720 for the trolley operations and $182,880 for the SC Rides program. Transfers from the General fund are $200,000 to fund the City's portion of the transit costs. Expenditures include program payments to Lyft and Butterfli in the amount of $175,140 and $12,000 for trolley contractual services.
156
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $0 $0 $0 $0 0%
Revenues:
State Planning Grant 0 482,867 0 482,870 0%
Total Revenues 0 482,867 0 482,870 0%
Expenditures:
Personnel 0 0 0 170,000 100%
Contractual Services 0 482,867 0 312,000 -35%
Total Expenditures 0 482,867 0 482,000 0%
Ending Balance $0 $0 $0 $870 100%
Fund Balance: Fund balance is budgeted at $870 at the end of FY 2022-23.
Building Homes & Jobs Act (SB2) Fund
027-821
Description: The Building Homes & Jobs Act (SB2) Fund was established to provide a dedicated source of funding for housing related activities, including updating general plans, community plans, specific plans, and local planning related to implementation of sustainable community strategies or local coastal plans.
Funding Source: This fund includes State grant revenues based on the collection of a document recording fee.
Legal Basis: SB2 monies are governed by the State and are restricted to updating planning documents and land-use ordinances and assisting in homelessness issues.
Budget Overview: Revenues for FY 2023 include the City's allocation of the Permanent Local Housing Allocation grant in the amount of $482,870. Expenditures include funding two Community Outreach Workers on a limited term basis and contractual services to offer support and provide for eligible activities under the grant. 157
158
Capital Project Funds account for the purchase or construction of major capital facilities.
Capital Project Funds
Parks
Acquisition and
Development
Fund
Local Drainage
Facilities Fund RCFPP Fund
Public Facilities
Construction
Fee Fund
Developers
Improvement
Fund
Reserve Fund In-Lieu Housing
Fund
Low/Moderate
Income Housing
159
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $1,753,192 $1,823,010 $1,823,010 $1,030,660 -43% Revenues:
Park Fees 73,759 40,000 85,000 40,000 0%
Investment Earnings 5,162 30,000 20,660 23,000 -23%
Total Revenues 78,921 70,000 105,660 63,000 -10%
Expenditures:
Capital Improvements* 702 888,350 888,350 70,000 -92%
Interfund Charges 8,400 9,660 9,660 12,760 32%
Total Expenditures 9,102 898,010 898,010 82,760 -91%
Ending Balance $1,823,011 $995,000 $1,030,660 $1,010,900 2% *Detail of Capital Improvements
Vista Hermosa Park Dry Storage 64 0 0 0 0%
Linda Lane Park Restroom 638 793,350 793,350 0 -100%
Jim Johnson Park Errant Ball Netting 0 95,000 95,000 0 -100% Steed Park Errant Ball Netting 0 0 0 70,000 100%
Steed Park Pickle Ball 0 0 0 0 0%
Solar in Parking Lot - AVH & Steed 0 0 0 0 0%
Total Capital Improvements $702 $888,350 $888,350 $70,000 -92% Fund Balance: The fund balance is budgeted to be $1.0 million at the end of FY 2022-23.
Parks Acquisition and Development Fund
031-862
Description: The Parks Acquisition and Development Fund was established to account for park development fees from all development sources and to control the distribution of funding for required park projects.
Funding Source: The Parks Acquisition and Development Fund is supported by park development fees.
Legal Basis: Revenues allocated to this fund are based on fees regulated by the Quimby Act. The Quimby Act, a California State law, requires developers to dedicate fees or land for public parks at a ratio of 5 acres per 1,000 residents in the new development. The fees collected are based upon the value of an acre of land within the development area. Resources in this fund are restricted.
Budget Overview : Revenues for this fund are primarily derived from development fees and interest on amounts held. Capital projects for FY 2022-23 total $70,000 for additional Errant Ball Netting. 160
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance:
Res. For Segunda Deschecha 2,914,404 2,877,340 2,877,340 1,547,460 -46% Res. For Marblehead Coastal 88,176 82,400 82,400 76,500 -7% Res. For Other Areas 752,760 647,690 647,690 31,020 -95% Total Beginning Balance $3,755,340 $3,607,430 $3,607,430 $1,654,980 -54% Revenues:
Drainage Fees 2,266 500 1,020 500 0%
Investment Earnings 5,076 60,000 39,500 42,000 -30%
Transfer from other funds 0 0 0 350,000 100%
Total Revenues 7,342 60,500 40,520 392,500 549%
Expenditures:
Contractual Services 3,335 48,540 48,540 0 -100%
Capital Improvements* 128,745 1,917,890 1,917,890 1,050,000 -45% Interfund Charges 23,180 26,540 26,540 26,090 -2%
Total Expenditures 155,260 1,992,970 1,992,970 1,076,090 -46% Ending Balance:
Res. For Segunda Deschecha 2,877,336 1,562,850 1,547,460 877,460 -44% Res. For Marblehead Coastal 82,395 76,970 76,500 71,150 -8% Res. For Other Areas 647,691 35,140 31,020 22,780 -35%
Total Ending Balance $3,607,422 $1,674,960 $1,654,980 $971,390 -42% *Detail of Capital Improvements:
Other areas:
M00S05 Montalvo Canyon Outlet 17,333 225,830 225,830 350,000 55% SD Improv Intersctn PCH & Camino SC 79,648 386,880 386,880 0 -100% Segunda Deschecha:
SD Improv at 1601 Calle Las Bolsas 31,764 1,155,180 1,155,180 0 -100% Catch Basin and SD Improvements 0 150,000 150,000 600,000 300% Catch Basin and SD Improvements 2023 0 0 0 100,000 100% Total Capital Improvements $128,745 $1,917,890 $1,917,890 $1,050,000 -45% Fund Balance: Fund balance will be at $971,390 at the end of FY 2022-23.
Local Drainage Facilities Fund
033-841
Description: The Local Drainage Facilities Fund was established in September 1983 to provide for the construction of drainage facilities within development areas. The four separate drainage basin areas within this fund are: Prima Deshecha, Segunda Deshecha, Marblehead Coastal and All Other Areas.
Funding Source: When a final parcel map or final tract map is filed with the City, a drainage fee is collected for deposit into the Local Drainage Facilities Fund. The monies derived from drainage fees are used to offset the cost of designing and constructing planned local drainage facilities designated in the Master Drainage Plan for the City.
Legal Basis: This fund was established by City Ordinance No. 874. Resources in this fund are restricted.
Budget Overview: Capital Projects for FY 2022-23 include Catch Basin, M00S05 Montalvo Canyon Outlet and Storm Drain Improvements in the amount of $1.0 million.
161
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $1,060,538 $919,680 $919,680 $500,660 -46% Revenues:
Developer Fees 5,361 0 91,890 8,000 100%
Investment Earnings 1,414 19,000 10,000 12,000 -37%
Transfer from Gas Tax 0 0 0 300,000 100%
Total Revenues 6,775 19,000 101,890 320,000 1584%
Expenditures:
Capital Improvements* 78,615 421,400 421,400 700,000 66% Interfund Charges 4,020 4,510 4,510 10,720 138%
Interfund Transfers 65,000 95,000 95,000 95,000 0%
Total Expenditures 147,635 520,910 520,910 805,720 55%
Ending Balance $919,678 $417,770 $500,660 $14,940 -96%
*Detail of Capital Improvements:
Ave Pico Bike/Pedestrian Path Phase I 39,978 260,030 260,030 0 -100% Pico Widening: I-5 to Frontera 38,637 161,370 161,370 0 -100% AVH & La Pata Intersection Improv. 0 0 0 700,000 100%
Total Capital Improvements $78,615 $421,400 $421,400 $700,000 66% Budget Overview: Capital Projects include several intersection improvements in the amount of $700,000.
Fund Balance: A $14,940 fund balance is budgeted at the end of FY 2022-23.
RCFPP Fund
020-419
Description: On March 15, 1989, the City Council of the City of San Clemente adopted the Regional Circulation Financing and Phasing Program (RCFPP). The RCFPP Fund is used to pay for the cost of installing major roadway systems in the City.
Funding Source: The RCFPP establishes the traffic impact fee schedule to be assessed on all new development on certain benefit zones within the City as well as the County portion of Talega Valley Rolling Hills.
Legal Basis: The RCFPP Fund was established by City Ordinance No. 998. Resources in this fund are restricted for the purpose of the development fees received.
162
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance:
Res. For Public Safety Const. 5,448,801 2,747,430 2,747,430 692,680 -75% Res. For Civic Center Const. 561,257 564,320 564,320 574,990 2% Total Beginning Balance $6,010,058 $3,311,750 $3,311,750 $1,267,670 -62% Revenues:
Public Safety Const. Fees 22,643 43,520 30,000 30,000 -31% Civic Center Const. Fees 6,097 11,420 8,000 8,000 -30%
Interest Earnings -15,986 100,000 33,300 36,000 -64%
Transfer from Other Funds 320,000 0 0 0 0%
Total Revenues 332,754 154,940 71,300 74,000 -52%
Expenditures:
Contractual Services 79,699 0 0 0 0%
Capital Improvements* 1,914,901 2,097,800 2,097,800 0 -100% Interfund Transfers 1,020,000 0 0 475,000 100%
Interfund Charges 16,460 17,580 17,580 20,920 19%
Total Expenditures 3,031,060 2,115,380 2,115,380 495,920 -77% Ending Balance:
Res. For Public Safety Const. 2,747,428 761,526 692,680 730,920 -4% Res. For Civic Center Const. 564,324 589,784 574,990 114,830 -81% Total Ending Balance $3,311,752 $1,351,310 $1,267,670 $845,750 -37% Budget Overview: No Capital projects are budgeted for FY 2022-23.
Fund Balance: Fund balance will end FY 2022-23 at $845,750.
Public Facilities Construction Fee Fund
030-818
Description: The Public Facilities Construction Fee Fund was established in May 1996 to combine the Public Safety Construction Fund, Parking (Beach Parking Impact Fee) Fund, and the related fees with a third fee - a Civic Center fee. The ordinance establishing this fund was developed to combine the developer fees collected for each of these funds based upon several studies. The City stopped collecting the Beach Parking Impact Fee as the result of a court order in FY 2015-
16. Funding Source: The public facilities construction fee applies to new development, and the charge is collected at the time the building permit is issued. This fee was established to provide for future needs in the area of construction of public facilities and yet only charge new developments their fair share of the impacts resulting from this new development.
Legal Basis: This fund was established by City Ordinance No. 1174. Resources in this fund are restricted for the purpose of the development fees received.
163
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Budget 22-23 OCSD Substation 910 Calle Negocio 1,914,901 2,097,800 2,097,800 0 -100% Total Capital Improvements $1,914,901 $2,097,800 $2,097,800 $0 -100% Public Facilities Construction Fee Fund
164
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance:
Res. For Development Improvements 2,176,065 1,660,190 1,660,190 1,829,470 10% Res. For Bridge Maintenance 1,641,175 1,745,220 1,745,220 1,890,670 8% Res. For Storm Drain (Seg. Deshecha) 945,897 946,720 946,720 960,860 1% Res. For In-Lieu Afford. Housing 1,873,782 1,871,260 1,871,260 0 -100% In-Lieu Loans (Affordable Housing) 8,579,365 8,758,220 8,758,220 0 -100% Total Beginning Balance $15,216,284 $14,981,610 $14,981,610 $4,681,000 -69% Revenues:
Bridge Maintenance 122,399 122,880 124,010 122,880 0%
In-Lieu Affordable Housing Fees 0 0 0 0 0%
Other State Grants 71,059 151,000 342,800 0 -100%
Investment Earnings 184,656 100,000 65,000 65,000 -35%
Total Revenues 378,114 373,880 531,810 187,880 -50%
Expenditures:
Contractual Services 442,052 111,820 111,820 0 -100%
Capital Improvements* 157,629 76,340 76,340 0 -100%
Transfer to Other Funds 0 10,497,620 10,629,480 0 -100% Interfund Charges 13,100 14,790 14,790 15,120 2%
Total Expenditures 612,781 10,700,570 10,832,430 15,120 -100% Ending Balance:
Res. For Development Improvements 1,660,194 1,651,017 1,829,465 1,839,754 11% Res. For Bridge Maintenance 1,745,223 1,903,570 1,890,666 2,039,804 7% Res. For Storm Drain (Seg. Deshecha) 946,724 968,473 960,859 974,202 1% Res. For In-Lieu Afford. Housing 1,871,261 131,860 0 0 -100% In-Lieu Loans (Affordable Housing) 8,758,215 0 0 0 0%
Total Ending Balance $14,981,617 $4,654,920 $4,680,990 $4,853,760 4% *Detail of Capital Improvements:
Marblehead Coastal Wtr Quality Improv 0 23,970 23,970 0 -100% N.B. Parking Lot Lights/Poles & Elect. 157,629 52,370 52,370 0 -100% Total Capital Improvements $157,629 $76,340 $76,340 $0 -100% Fund Balance: Fund balance is budgeted at $4.9 million at the end of FY 2022-23.
Developers Improvement Fund
037-867
Description: The Developers Improvement Fund is used to account for the proceeds of developer settlements and the future costs of maintaining and/or improving the streets or other infrastructure in the related development tracts. The InLieu Affordable Housing Reserve is funded by developers who opt to pay a fee rather than build affordable housing units required by the City and used to build or rehabilitate affordable housing projects. The Bridge Maintenance Reserve is derived fees under the Talega Development and the Marblehead Development Agreements. This fee is to be used for maintaining, repairing, restoring and replacing the Talega and Marblehead bridges. Other reserves account for fees received under the applicable developer agreements.
Funding Source: Funding for the Developers Improvement Fund is derived from developer agreements and fees.
Legal Basis: This fund is governed by court-ordered developer settlements and legal contracts. Resources in this fund are restricted based on developer agreements.
Budget Overview: No capital projects are budgeted for FY 2022-23. In-Lieu Affordable Housing reserves were transferred to a new fund entitled In-Lieu Housing Fund in FY 2021-22. 165
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance
Res. For In-Lieu Afford. Housing 0 0 0 1,886,170 100%
In-Lieu Loans (Affordable Housing) 0 0 0 8,890,080 100% Total Beginning Balance $0 $0 $0 $10,776,250 100%
Revenues:
Investment Earnings 0 0 146,770 50,000 100%
Transfers from Other Funds 0 10,497,620 10,629,480 0 -100% Total Revenues 0 10,497,620 10,776,250 50,000 -100%
Expenditures:
Contractual Services 0 0 0 0 0%
Other Charges 0 0 0 0 0%
Interfund Charges 0 0 0 7,430 100%
Total Expenditures 0 0 0 7,430 100%
Ending Balance
Res. For In-Lieu Afford. Housing 0 1,739,400 1,886,170 1,928,740 11% In-Lieu Loans (Affordable Housing) 0 8,758,220 8,890,080 8,890,080 2% Ending Balance $0 $10,497,620 $10,776,250 $10,818,820 3% Fund Balance: The fund balance is budgeted to be $10.8 million at the end of FY 2022-23, with approximately $8.9 million representing long term loan receivables.
In-Lieu Housing Fund
039-866
Description: The In-Lieu Affordable Housing fund is used to account for receipts from developers who choose to pay in-lieu fees instead of constructing affordable housing units. This fund provides capital assistance for construction or permanent loans for affordable housing projects for construction, rehabilitation, or conversion from market rate.
Funding Source: Funds in the Reserve for In-Lieu Affordable Housing fund are derived from revenues from developers who choose to pay in-lieu fees instead of constructing affordable housing units in accordance with the City’s Inclusionary Housing Program. Funds in the In-Lieu Loans (Affordable Housing) fund are previously loaned funds the City expects to receive repayment on in the future.
Legal Basis: Resources in this fund are governed by the City’s Inclusionary Housing Program.
Budget Overview : Revenues are from the $10.5 million residual equity transfer from the Developers Improvement Fund. 166
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance:
Accrued Leave 1,097,651 1,036,860 1,036,860 904,490 -13% Capital Equipment 1,949,251 2,049,370 2,049,370 1,974,440 -4% Facilities Maintenance 8,361,398 9,823,020 9,823,020 5,129,560 -48% Park Asset Replacement 2,500,457 2,471,810 2,471,810 2,109,570 -15% Total Beginning Balance $13,908,757 $15,381,060 $15,381,060 $10,118,060 -34% Revenues:
Investment Earnings 52,050 200,000 180,000 200,000 0%
Contributions from Developers 49,573 24,790 25,700 24,790 0% Miscellaneous Income 0 0 25,000 0 0%
Interfund Transfers 1,530,000 495,000 495,000 500,000 1% Interfund Charges 652,810 673,120 673,120 751,970 12%
Total Revenues 2,284,433 1,392,910 1,398,820 1,476,760 6% Expenditures:
Accrued Leave 64,899 260,000 259,500 260,000 0%
Capital Equipment 153,477 320,900 320,900 600,000 87%
Facilities Maintenance 205,746 5,530,250 5,530,250 500,000 -91% Park Asset Replacement 388,007 605,950 551,170 0 -100%
Total Expenditures 812,129 6,717,100 6,661,820 1,360,000 -80% Ending Balance:
Accrued Leave 1,036,860 905,340 904,490 762,370 -16%
Capital Equipment 2,049,372 1,976,200 1,974,440 1,661,340 -16% Facilities Maintenance 9,823,022 5,117,330 5,129,560 5,479,840 7% Park Asset Replacement 2,471,807 2,058,000 2,109,570 2,331,270 13% Ending Balance $15,381,061 $10,056,870 $10,118,060 $10,234,820 2% Expenditures by Category:
Personnel 64,899 260,000 259,500 260,000 0%
Capital Outlay* 747,230 6,457,100 6,402,320 1,100,000 -83% Total $812,129 $6,717,100 $6,661,820 $1,360,000 -80%
Fund Balance: Fund Balance is budgeted to be $10.2 million by the end of FY 2022-23.
Reserve Fund
014-810
Description: The Reserve Fund consists of Accrued Leave, Capital Equipment, Park Asset Replacement and Facilities Maintenance Reserves. The Accrued Leave Reserve maintains funds to pay accrued leave for General Fund employees who terminate during the year. The Capital Equipment Replacement Reserve was established to provide for the replacement of existing General Fund fixed assets as equipment or machinery become unserviceable or obsolete. In 2001, the Facilities Maintenance Reserve was established to provide for maintenance of City facilities. In 2010, the Park Asset Replacement Reserve was established to set aside funds for replacement of certain park assets.
Funding Source: Sources of revenue used to establish these reserves include General Fund transfers, insurance, developer contributions, and other revenues. Replacement costs are charged directly to each user program for purchased capital equipment. The replacement costs are established by using the original purchase price compounded annually by an inflation rate and then dividing the number of years before replacement is scheduled.
Legal Basis: Resources in this fund are assigned for the specific purpose the revenues were allocated.
Budget Overview: General Fund transfers will be made to Facilities Maintenance Reserve ($400,000) and the Accrued Leave Reserve ($100,000). Significant projects include the Beach Trail Streel Bridge Maintenance ($500,000), and Aquatic Center Pump Room Equipment replacement ($600,000).
167
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Budget 22-23 Capital Equipment Reserve:
Machinery and Equipment 0 10,000 10,000 0 -100%
Street Light LED Conversion Phase 3 153,477 50,900 50,900 0 -100% Aquatic Center Pump Room Equip Replace 0 260,000 260,000 600,000 131% Facilities Maintenance Reserve:
Marine Safety Building Repair & Upgrades 131,856 16,900 16,900 0 -100% Boys & Girls Club Trash Enclosure 244 0 0 0 0%
Bonito Canyon Lights and Poles 61,227 168,770 168,770 0 -100% Pier Concession Building Renovation 0 175,000 175,000 0 -100% Pier Fire Suppression System Replacement 0 140,000 140,000 0 -100% Beach Trail Steel Bridges Maintenance 0 5,000,000 5,000,000 500,000 -90% Other Improvements Other than Buildings 12,419 29,580 29,580 0 -100% Park Asset Reserve:
LPVH Lacrosse/Football Field Synthetic Turf 46,833 0 0 0 0% LVPH Two Soccer Fields Synthetic Turf 99,190 0 0 0 0%
Mira Costa & Verde Park Playground 241,155 56,780 2,000 0 -100% San Gorgonio Park Playground Replacement 829 299,170 299,170 0 -100% Steed Park Playground Replacement 0 250,000 250,000 0 -100% Total Capital Improvements $747,230 $6,457,100 $6,402,320 $1,100,000 -83% Reserve Fund
168
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $2,673,146 $2,761,210 $2,761,210 $2,508,080 -9% Revenues:
Investment Earnings 36,299 9,000 7,000 7,000 -22%
Transfers from General Fund 66,393 0 0 0
Total Revenues 102,692 9,000 7,000 7,000 -22%
Expenditures:
Contractual Services 5,735 250,000 250,000 30,000 -88%
Interfund Charges 8,890 10,130 10,130 18,160 79%
Total Expenditures 14,625 260,130 260,130 48,160 -81%
Ending Balance $2,761,213 $2,510,080 $2,508,080 $2,466,920 -2% Fund Balance: The fund balance is budgeted to be $2.5 million at the end of FY 2022-23, with approximately $2.1 million representing long term loan receivables.
Low/Moderate Income Housing
038-809
Description: The Low/Moderate Income Housing capital projects fund is used to account for the former Redevelopment Agency low and moderate income assets including loan agreements. This fund provides capital assistance loans for low to moderate income development within the City of San Clemente.
Funding Source: Funding for the Low/Moderate Income Housing fund is derived from income assets and loan agreements transferred from the former Redevelopment Agency to the City with Oversight Board and State of California approval.
Additional funding is provided through transfers from the General Fund based on the repayment of the General Fund loan.
Legal Basis: This Fund is governed by agreements and loans made by the former Redevelopment Agency.
Budget Overview : Revenues from interest earning are budgeted for FY 2022-23. 169
170
Enterprise funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises. The intent in using this type of fund is to determine that the costs (expenses, including depreciation) of funding these services to the general public are financed or recovered primarily through user charges.
Enterprise Funds
Water
Fund
Water
Operating
Water
Depreciation
Reserve
Water Acreage
Fee Reserve
Water Other
Agency
Depreciation
Reserve
Sewer
Fund
Sewer
Operating
Sewer
Depreciation
Reserve
Sewer
Connection Fee
Reserve
Sewer Other
Agency
Depreciation
Reserve
Storm
Drain
Fund
Storm Drain
Operating
Storm Drain
Utility
Depreciation
Reserve
Golf Fund
Golf Operating
Golf
Depreciation
Reserve
Golf
Improvement
Reserve
Clean
Ocean
Fund
Solid
Waste
Fund
171
Shading indicates contracted services
Enterprise Funds
Department Overview:
The Utilities Department consists of the Water, Sewer, Storm Drain, Clean Ocean and Solid Waste Funds. The department is overseen by the Utilities Director who is responsible for operation and maintenance of water, recycled water, sewer and storm drain infrastructure, water conservation, providing safe water supplies, providing proper sanitary disposal of waste and improving local water quality.
The Golf Fund is considered a part of Beaches, Parks, and Recreation activities. The Golf Fund accounts for the operation and maintenance of the San Clemente Muncipal Golf Course for recreation purposes.
City Manager
Utilities Director
Water
Sewer
Storm Drain
Clean Ocean
Solid Waste
Golf
Beaches, Parks, and
Recreation Director
172
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Summary Actual Adj Budget Projected Budget % Change
Water Operating 23,868,766 25,016,660 24,506,840 26,123,560 4% Sewer Operating 10,800,337 11,628,860 11,308,240 11,383,940 -2% Storm Drain Operating 1,608,697 1,776,250 1,697,360 1,662,130 -6% Clean Ocean Operating 3,379,017 2,850,170 2,339,090 1,470,280 -48% Solid Waste 221,550 438,140 415,350 247,250 -44%
Total Utilities Operating Budget $39,878,367 $41,710,080 $40,266,880 $40,887,160 -2% FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Summary Actual Adj Budget Projected Budget % Change
Golf Operating 2,293,147 2,624,810 2,523,960 2,754,970 5% Total Golf Operating Budget $2,293,147 $2,624,810 $2,523,960 $2,754,970 5% Accomplishments for FY 2021-22
• Processed approximately 1.4 billion gallons of wastewater and 5,640 wet tons of solid waste • Produced 550 million gallons (1,700 af) of recycled water for irrigation customers and Water Reclamation Plant (WRP) • Ordered a Collection System Vactor Truck to clean sewer and storm drain lines and reduce excavation time for repairs • Responded to emergency coastal bluff movement at Cyprus Shores to ensure uninterrupted wastewater and storm drainage • Completed the Water Filter Plant Rehabilitation Chemical Storage Building project • Assisted customers with MWDOC's turf removal rebate program and provided supplemental funding for the conversion of turf to water efficient landscaping to provide annual water savings to customers. • Engaged with State regulators to revise the City's proposed water loss standard and residential irrigable area determination to improve feasibility of compliance with associated regulations (SB555 and AB606/AB 1668) • Updated the City's Urban Water Management Plan
• Finalized Santa Margarita Water District Interconnection and Shared Services Agreement • Completed Digester Flare replacement and completed transfer to Digester 1 from Digester 2. • Completed Water Reclamation Plant Electrical Improvements • Completed WRP Odor Control System Evaluation and Refurbishment Project to extend existing equipment's useful life • Conducted WRP Efficiency Study to improve blower efficiency and reduce chemical and electricity usage • Continued Prima Deshecha Cañada Watershed (Poche Watershed) Human Source Bacteria Study with the County • Finalized the Municipal Pier Bacteriological Characterization Study and improved the water quality at the base of the Pier by installing and maintaining netting to reduce pigeon roosting • Implemented Prop. 218 solid waste and recycling rate and contract modifications to comply with AB341 & AB1383 • Completed an evaluation of the City's Solid Waste and Recycling Contract with CR&R Key Initiatives for FY 2022-23
• Complete Avenida Pico Recycled Water Project with CalTrans and the Calle Real Waterline Improvement project • Revise the Water Conservation Ordinance to reflect statewide water waste prohibitions and authorize the most current 2020 Water Shortage Contingency Plan
• Obtain an accurate inventory of all landscapes served by the City's dedicated irrigation meters for water use objective planning required by SB606 and AB 1668
• Complete Sluice gate repair and improvement project for Reclamation Plant and evaluate Digester 2 rehabiliation needs • Evaluate recycled water expansion opportunities and potential new water supply sources • Begin construction for the Boiler Replacement Project • Meet regulatory requirements for AB341 75% diversion requirement for recycling through source reduction, recycling and composting: AB 1826 Mandatory Commercial Organics Recycling: AB 1594 elimination of diversion credits for green waste used as ADC (Alternative Daily Cover) and SB 1383 Short-Lived Climate Pollutants (SLCP) requireing a 50% reduction of the statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction by 2025 • Negotiate with CR&R for contract changes or consider preparation of an RFP for services pursuant to Council direction • Provide public outreach and customer service to San Clemente residents, businesses and CR&R, Inc • Continue to optimize implementation and enforcement of the City's FOG Program Enterprise Funds
Operating Summary
173
Purpose Statement
Water Operating Division Services
• Operate, maintain and repair approximately 230 miles of water lines, 15 reservoirs, 16 pump stations and 56 pressure reducing stations and 17,600 services.
• Operate and maintain 2 groundwater wells and a treatment facility that produces approximately 400 acre feet of potable water per year
• Produce and sell approximately 1,400 acre feet per year of recycled water. • Promote and develop short and long term water conservation programs to meet regulatory requirements and to reduce water usage in drought years.
• Evaluate regional water projects to improve reliability and emergency storage.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adj Budget Projected Budget % Change
Beginning Balance: $4,990,409 $6,973,990 $6,973,990 $7,101,788 2% Revenue Summary
Services Charges 22,656,044 21,531,500 21,497,280 22,310,780 4% Other Water Charges 3,171,861 3,092,450 2,910,500 3,097,740 0% Investment Earnings 24,441 86,775 76,858 138,675 60%
Other Revenues 0 0 150,000 0 0%
Total $25,852,346 $24,710,725 $24,634,638 $25,547,195 3% Program Summary
Water Administration 2,693,802 2,923,210 3,002,220 3,921,040 34% Water Production 14,203,062 13,799,490 13,697,460 14,329,860 4% Transmission/Distribution 4,347,445 5,069,980 4,850,990 4,817,550 -5% Water Conservation 295,290 673,590 438,770 464,140 -31% Water Reclamation 2,329,167 2,550,390 2,517,400 2,590,970 2% Total Water $23,868,766 $25,016,660 $24,506,840 $26,123,560 4% Ending Balance: $6,973,989 $6,668,055 $7,101,788 $6,525,423 -2% Category Expenditure Summary
Personnel 3,796,815 4,259,730 3,920,260 3,946,900 -7%
Supplies 9,721,686 9,169,560 9,159,000 9,666,720 5%
Contractual Services 2,483,293 3,548,340 3,318,310 3,311,580 -7% Other Charges 4,403,757 4,431,500 4,567,010 4,633,080 5% Interdepartmental Charges 1,569,760 1,666,660 1,641,660 1,664,660 0% Debt Service 893,455 900,620 900,600 900,620 0%
Total Program Budget 22,868,766 23,976,410 23,506,840 24,123,560 1% Capital/One-Time Studies 0 40,250 0 0 -100%
Interfund Transfers 1,000,000 1,000,000 1,000,000 2,000,000 100% Total Water Budget $23,868,766 $25,016,660 $24,506,840 $26,123,560 4% Personnel Summary 25.35 25.35 25.35 25.35
Significant Changes:
Personnel costs decrease $312,830 related to staff changes and a one-time pension payment in FY 2021-22.
Supplies increase $497,160 as a result of higher purchased water costs and maintenance supplies.
Contractual services decrease $236,760 related to one time maintenance activities and contracts services.
Water Fund
Water Operating Division Summary
To provide adequate supplies of potable and recycled water while meeting health and quality standards of the State Water Resources Control Board - Drinking Water Division and Federal Safe Water Drinking Act. 174
Purpose Statement
Sewer Operating Division Services
• Operate, maintain and repair approximately 180 miles of sewer lines, 12 sewer lift stations and Water Reclamation Plant. • Treat wastewater through a series of physical, biological and chemical treatment processes to meet regulatory requirements. • Manage discharge of treated wastewater through the regional Land/Ocean Outfall with South Orange County Wastewater Authority (SOCWA).
• Administer Pre-Treatment and Fat, Roots, Oil and Grease Program. • Provide required regulatory reporting for the Water Reclamation Plant processes and operation of plant equipment. • Process approximately 5,640 wet tons of solids through thickening, anaerobic digestion, and dewatering which is hauled to a composting facility for beneficial use.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adj Budget Projected Budget % Change
Beginning Balance: -$479,696 -$525,800 -$525,800 -$31,943 -94% Revenue Summary
SServices Charges 9,753,827 10,112,500 9,800,000 10,127,500 0% Sewer Permits 300 1,000 1,000 1,000 0%
Other Sewer Charges 590 7,000 6,500 7,000 0%
Investment Earnings -487 -6,631 -5,403 -839 -87%
Interfund Transfers 1,000,000 2,000,000 2,000,000 1,550,000 -23% Total $10,754,230 $12,113,869 $11,802,097 $11,684,661 -4% Program Summary
Sewer Administration 1,426,017 1,612,830 1,584,230 1,566,470 -3% Treatment 5,474,901 5,827,740 5,677,250 5,777,630 -1%
Collection 3,899,419 4,188,290 4,046,760 4,039,840 -4%
Total Sewer $10,800,337 $11,628,860 $11,308,240 $11,383,940 -2% Ending Balance: -$525,803 -$40,791 -$31,943 $268,778 -759% Category Expenditure Summary
Personnel 2,955,400 3,349,090 3,000,600 3,133,900 -6%
Supplies 773,968 908,050 908,060 954,700 5%
Contractual Services 2,220,530 2,657,750 2,640,390 2,689,410 1% Other Charges 3,423,659 3,371,590 3,371,810 3,372,540 0% Interdepartmental Charges 1,426,780 1,342,380 1,387,380 1,233,390 -8% Total Program Budget 10,800,337 11,628,860 11,308,240 11,383,940 -2% Capital/One-Time Studies 0 0 0 0 0%
Interfund Transfers 0 0 0 0 0%
Total Sewer Budget $10,800,337 $11,628,860 $11,308,240 $11,383,940 -2% Personnel Summary 19.35 19.50 19.50 19.50
Significant Changes:
Personnel decreases $215,190 as a result of staff changes during the year and a one-time pension payment in FY 2021-22.
Supplies increased by $46,650 due to increases in chemical supplies and purchased water.
Interdepartmental charges decrease $108,990 due to lower insurance and general fund overhead charges.
Sewer Fund
Sewer Operating Division Summary
To provide maintenance and operation of the City’s sanitary sewer collection and treatment system infrastructure in order to ensure wastewater service to protect public health and safety, in compliance with all Local, State and Federal regulatory requirements.
175
Purpose Statement
Storm Drain Operating Division Services
• Operate, maintain, clean and inspect approximately 77 miles of storm drain lines and 1,500 catch basins. • Operate and maintain clean water quality projects including Segunda Deshecha Canada facility and various vortex units throughout the City.
• Administer storm drain related capital improvement projects.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adj Budget Projected Budget % Change
Beginning Balance: $292,251 $210,690 $210,690 -$62,463 -130% Revenue Summary
Services Charges 1,169,129 1,168,000 1,170,000 1,170,000 0% Other Revenue 32 5,050 2,000 5,050 0%
Investment Earnings 1,944 3,045 2,207 -1,258 -141%
Interfund Transfers 356,030 250,000 250,000 600,000 140% Total $1,527,135 $1,426,095 $1,424,207 $1,773,792 24%
Program Summary
Storm Drain Administration 166,339 171,930 163,140 111,690 -35% Storm Drain Maintenance 1,442,358 1,604,320 1,534,220 1,550,440 -3% Total Storm Drain $1,608,697 $1,776,250 $1,697,360 $1,662,130 -6% Ending Balance: $210,689 -$139,465 -$62,463 $49,199 -135% Category Expenditure Summary
Personnel 396,000 436,330 376,990 462,090 6%
Supplies 1,392 12,400 11,900 11,900 -4%
Contractual Services 88,986 264,340 260,290 176,920 -33% Other Charges 970,899 890,520 890,520 890,520 0%
Interdepartmental Charges 151,420 172,660 157,660 120,700 -30% Total Program Budget 1,608,697 1,776,250 1,697,360 1,662,130 -6% Capital/One-Time Studies 0 0 0 0 0%
Interfund Transfers 0 0 0 0 0%
Total Storm Drain Budget $1,608,697 $1,776,250 $1,697,360 $1,662,130 -6% Personnel Summary 3.00 2.85 2.85 2.85
Significant Changes:
Contractual services decrease by $87,420 due to a decrease in other contract services for on-call inspection services.
Storm Drain Fund
Storm Drain Operating Division Summary
To provide uninterrupted storm drainage service that is operated and maintained in compliance with all regulatory requirements mandated by the State Water Resources Control Board under the Clean Water Act through a National Pollution Discharge Elimination System (NPDES) program - MS4 Storm Water Permit. 176
Purpose Statement
Clean Ocean Operating Division Services
• Conduct inspections of municipal sites/facilities, commercial businesses and industrial facilities and provide feedback on best management practices.
• Respond to storm water municipal code violations and complaints, educate the public and issue citations if warranted. • Investigate surface water quality conditions and implement solutions to minimize and mitigate or eliminate pollutants entering or discharging from the storm drain system.
• Conduct inspections of post-development treatment control devices/structures.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adj Budget Projected Budget % Change
Beginning Balance: $3,995,881 $1,804,420 $1,804,420 $157,720 -91% Revenue Summary
Urban Runoff Fee -5,652 650,000 0 0 -100%
County Grants 0 0 345,000 0 0%
Violations/Citations 188,302 277,000 274,000 302,000 9% Other Revenue 56 32,070 0 70 -100%
Investment Earnings -26,738 20,000 15,000 12,000 -40%
Interfund Transfers 1,031,586 83,390 58,390 1,000,000 1099% Total $1,187,554 $1,062,460 $692,390 $1,314,070 24%
Program Summary
Storm Water Permit Compliance 2,203,344 1,547,390 1,066,310 841,510 -46% Street Cleaning 485,634 627,250 597,250 602,670 -4%
Improvement Reserve 690,039 675,530 675,530 26,100 -96% Total Clean Ocean $3,379,017 $2,850,170 $2,339,090 $1,470,280 -48% Ending Balance: $1,804,418 $16,710 $157,720 $1,510 -91% Category Expenditure Summary
Personnel 324,494 204,910 167,120 146,820 -28%
Supplies 30,113 42,990 21,240 15,100 -65%
Contractual Services 666,689 1,792,260 1,576,060 842,010 -53% Other Charges 200,962 224,500 207,270 241,250 7%
Interdepartmental Charges 259,210 279,200 259,200 225,100 -19% Total Program Budget 1,481,468 2,543,860 2,230,890 1,470,280 -42% Capital/One-Time Studies 668,409 108,200 108,200 0 -100% Interfund Transfers 1,229,140 198,110 0 0 -100%
Total Clean Ocean Budget $3,379,017 $2,850,170 $2,339,090 $1,470,280 -48% Personnel Summary 3.00 3.00 3.00 1.00
Significant Changes:
Personnel costs decreased by $58,090 as a result of lowering budgted staffing and shifting resources to Code Compliance for water quality enforcement in the prior year.
Contractual services and supplies decrease due to lower staffing and one-time projects in FY 2021-22.
Clean Ocean Fund
Clean Ocean Operating Division Summary
To protect and improve local surface water quality by addressing storm water and urban runoff discharges and managing the City's storm water drainage system in compliance with applicable State and Federal regulations. 177
Purpose Statement
Solid Waste Operating Division Services
• Implement recycling and other waste reduction programs to comply with State waste diversion requirements per AB939, AB1826, AB1594 and SB1383 mandates • Provide public education and assistance to residents, business and schools to increase recycling and reduce waste. • Participate in regional solid waste and recycling planning. • Administer the City's solid waste and recycling collection service contract with CR&R, Inc • Ensure compliance with City solid waste codes, ordinances, and requirements.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adjusted Projected Budget % Change
Beginning Balance: $522,256 $571,100 $571,100 $414,970 -27% Revenue Summary
Solid Waste Revenues 270,389 201,850 259,220 201,850 0% Total $270,389 $201,850 $259,220 $201,850 0%
Program Summary
Solid Waste Management 221,550 438,140 415,350 247,250 -44% Total Solid Waste $221,550 $438,140 $415,350 $247,250 -44% Ending Balance: $571,095 $334,810 $414,970 $369,570 10% Category Expenditure Summary
Personnel 113,673 115,450 115,050 121,920 6%
Supplies 9,066 15,400 13,400 15,400 0%
Contractual Services 35,517 219,390 221,080 37,000 -83% Other Charges 15,964 40,880 18,800 20,800 -49%
Interdepartmental Charges 47,330 47,020 47,020 52,130 11% Total Program Budget 221,550 438,140 415,350 247,250 -44% Capital/One-Time Studies 0 0 0 0 0%
Interfund Transfers 0 0 0 0 0%
Total Solid Waste Budget $221,550 $438,140 $415,350 $247,250 -44% Personnel Summary 1.00 1.00 1.00 1.00
Significant Change:
Contractual services decrease by $182,390 due to one-time costs for consultants in FY 2021-22.
Solid Waste Fund
Solid Waste Operating Division Summary
To protect and improve the City's local environment by maximizing recycling, and minimizing waste, through effective public education, extensive waste reduction and recycling programs, and compliance with multiple State diversion mandates as defined in AB939, AB1826, AB1594 and SB1383
178
Purpose Statement
Golf Operating Division Services
•Provide recreational golf opportunities.
•Maintain the golf course at level B during peak season. •Administer the pro-shop and food and beverage concessions.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Budget
Actual Adj Budget Projected Budget % Change
Beginning Balance: -$127,912 $265,630 $265,630 $396,250 49% Revenue Summary
Golf Fees 2,204,820 2,160,900 2,060,000 1,910,000 -12%
Registration Fees 98,234 78,000 78,000 78,000 0%
Concessions 376,429 502,240 515,000 465,000 -7%
Other Revenue 7,623 0 0 0 0%
Investment Earnings -419 1,580 1,580 2,200 39%
Total $2,686,687 $2,742,720 $2,654,580 $2,455,200 -10%
Program Summary
Golf Course Maintenance 2,293,147 2,624,810 2,523,960 2,754,970 5% Total Golf $2,293,147 $2,624,810 $2,523,960 $2,754,970 5% Ending Balance: $265,628 $383,540 $396,250 $96,480 -75% Category Expenditure Summary
Personnel 818,788 1,046,930 868,730 1,090,560 4%
Supplies 133,784 157,730 162,300 158,850 1%
Contractual Services 590,461 641,660 706,510 608,960 -5% Other Charges 340,032 347,470 347,400 352,970 2%
Interdepartmental Charges 319,870 360,120 360,120 373,630 4% Debt Service 85,996 35,000 35,000 135,000 286%
Total Program Budget 2,288,931 2,588,910 2,480,060 2,719,970 5% Capital/One-Time Studies 4,216 11,900 11,000 0 -100%
Interfund Transfers 0 24,000 32,900 35,000 46%
Total Golf Budget $2,293,147 $2,624,810 $2,523,960 $2,754,970 5% Personnel Summary 9.00 10.00 10.00 10.00
Significant Changes:
Personnel costs increase $43,630 related to salary and benefits, which includes cost for the Golf Marshals.
Debt service increases by $100,000 to budget for a principal payment on the reserve intrafund loans.
Golf Fund
Golf Operating Division Summary
Provide residents and visitors of San Clemente with a well maintained, sustainable, and financially self sufficient golf course for public recreation.
179
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $11,122,499 $12,015,760 $12,015,760 $4,820,761 -60% Additions:
Depreciation Funded 1,784,231 1,700,000 1,700,000 1,860,000 9% Depreciation Asset Model 1,848,000 1,848,000 1,848,000 1,848,000 0% Investment Earnings 54,476 149,508 132,421 94,134 -37%
Transfer from Water Operating 1,000,000 1,000,000 1,000,000 2,000,000 100% Total Additions 4,686,707 4,697,508 4,680,421 5,802,134 24% Deductions:
Contractual Services 1,332,077 2,150,760 1,913,930 1,025,000 -52% Capital Improvements* 2,233,803 9,720,270 9,718,170 2,200,000 -77% Interdepartmental Charges 77,016 138,320 118,320 87,150 -37% Transfer to General Fund 25,000 25,000 25,000 25,000 0% Transfer to Street Improvement 100,000 100,000 100,000 100,000 0% Transfer to Sewer Depreciation 25,550 0 0 0 0%
Total Deductions 3,793,446 12,134,350 11,875,420 3,437,150 -72% Ending Balance $12,015,760 $4,578,918 $4,820,761 $7,185,745 57% Budget Overview: Capital improvement projects include Calle Real Pump Station ($1.2 million); AC Pipe Replacement ($250,000); Pico/Presidio DIP Replacement ($150,000); Reservoir No. 5 5A Replacement ($300,000); and Cathodic Protection System Improvement ($300,000) are budgeted for FY 2022-23. Contractual Services of $1.0 million includes Water System Rehabilitation, Meter Replacements, Sodium Hypochlorite Tank Replacements and Reservoir No. 12 Site Improvements.
Net Working Capital Balance: The ending net working capital will be $7.2 million at the end of FY 2022-23.
Water Depreciation Reserve
052-466
Description: The Water Depreciation Reserve is set up to account for funds set aside for replacement of Water Fund equipment that has reached the end of its useful life and for major repairs to the water system infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item. A Water Asset Model determines depreciation contributions for major repairs to system infrastructure. These processes assure that funds will be available to purchase replacement equipment and rebuild water system infrastructure when equipment or infrastructure is no longer serviceable.
Funding Source: Depreciation on capital assets is the major source of funding for this program.
Legal Basis: This fund was established by City Ordinance No. 874. Resources in this program are assigned. 180
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Bud 22-23 Well Water Acquifer Monitoring Improvements 59,457 2,100 0 0 -100% Reata Pump Stations Rehab 0 1,453,270 1,453,270 0 -100% Blanco Pump Station Rehabilitation 1,146 2,856,320 2,856,320 0 -100% Well Filter Plant Rehabilitation 1,366,381 363,220 363,220 0 -100% Calle Real Pump Station Rehabilitation 98,825 4,902,870 4,902,870 1,200,000 -76% Costero Risco PRS Rehabilitation 2,009 97,990 97,990 0 -100% Via Santa Maria Waterline/Replace/Repair 705,506 44,500 44,500 0 -100% AC Pipe Replacement Northwest 308 Zone 0 0 0 250,000 100% Pico/Presidio DIP Replacement (Albertsons) 0 0 0 150,000 100% Reservoir No. 5 5A Replacement 0 0 0 300,000 100%
Cathodic Protection System Improvements 0 0 0 300,000 100% Total Capital Improvements $2,233,803 $9,720,270 $9,718,170 $2,200,000 -77% Water Depreciation Reserve
181
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $3,297,535 $3,299,880 $3,299,880 $866,397 -74% Additions:
Water Acreage Fees 307 1,000 46,230 46,230 4523%
Investment Earnings 16,151 41,059 36,367 16,918 -59%
Transfer from Water Operating 0 0 0 0 0%
Total Additions 16,458 42,059 82,597 63,148 50%
Deductions:
Contractual Services 0 11,470 11,470 0 -100%
Capital Improvements* 0 2,489,550 2,489,550 500,000 -80% Interdepartmental Charges 14,110 15,060 15,060 10,580 -30% Total Deductions 14,110 2,516,080 2,516,080 510,580 -80% Ending Balance $3,299,883 $825,859 $866,397 $418,965 -49% *Detail of Capital Improvements:
Reeves Pump Station 0 1,757,410 1,757,410 0 -100%
Recycled Water Expansion Phase II 0 732,140 732,140 500,000 -32% Total Capital Improvements $0 $2,489,550 $2,489,550 $500,000 -80% Budget Overview: One capital project for Recycled Water Expansion Phase II in the amount of $500,000 is budgeted for FY 2022-23.
Net Working Capital Balance: The ending net working capital will be $418,965 at the end of FY 2022-23.
Water Acreage Fee Reserve
052-467
Description: The Water Acreage Fee Reserve Fund is used to plan, design, inspect and construct telemetry systems, distribution lines, service lines, water takeouts, filtration plants, well fields, impounding reservoirs and chlorination systems.
Funding Source: The Water Acreage Fee Reserve Fund is supported by fees which are assessed for all parcels of land that are developed and are connected to the water system.
Legal Basis: This program was established by City Ordinance No. 874. Rescources in this program are restricted. 182
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $7,069,067 $5,839,460 $5,839,460 $5,135,204 -12% Additions:
Other Agency Depreciation Funded 696,000 696,000 696,000 696,000 0% Investment Earnings 34,623 72,658 64,354 100,273 38%
Total Additions 730,623 768,658 760,354 796,273 4%
Deductions:
Contractual Services 1,948,082 1,451,910 1,451,910 1,300,000 -10% Interdepartmental Charges 12,150 12,700 12,700 8,130 -36% Total Deductions 1,960,232 1,464,610 1,464,610 1,308,130 -11% Ending Balance $5,839,458 $5,143,508 $5,135,204 $4,623,347 -10% Budget Overview: JRWSS Agency Projects in the amount of $1.3 million are scheduled for FY 2022-23.
Net Working Capital Balance: The ending net working capital will be $4.6 million at the end of FY 2022-23.
Water Other Agency Depreciation Reserves
052-468
Description: The Water Other Agency Depreciation Reserves is set up to account for funds set aside for major repairs to the water system infrastructure that is owned, operated, and maintained by Joint Regional Water Supply System (JRWSS) which is a Joint Powers Authority. Depreciation is considered a normal operating expense, and funds are received from the general operating account. This process assures that funds will be available to replace equipment and rebuild water system infrastructure when equipment or infrastructure is no longer serviceable.
Funding Source: Depreciation on capital assets is the major source of funding for this program.
Legal Basis: Resources in this program are assigned.
183
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $11,713,561 $12,411,150 $12,411,150 $4,876,442 -61% Additions:
Depreciation Funded 3,174,610 3,150,000 3,150,000 3,150,000 0% Investment Earnings 11,904 156,528 127,542 128,020 -18% Transfer from Sewer Connection Fee 25,550 0 0 0 0%
Total Additions 3,212,064 3,306,528 3,277,542 3,278,020 -1% Deductions:
Contractual Services 380,440 1,689,540 1,689,270 1,900,000 12% Capital Improvements* 1,940,063 8,774,960 7,849,160 800,000 -91% Interdepartmental Charges 103,320 168,820 148,820 116,150 -31% Transfer to General Fund 25,000 25,000 25,000 25,000 0% Transfer to Street Improvement 65,650 100,000 100,000 100,000 0% Transfer to Sewer Operating 0 1,000,000 1,000,000 1,350,000 35% Total Deductions 2,514,473 11,758,320 10,812,250 4,291,150 -64% Ending Balance $12,411,152 $3,959,358 $4,876,442 $3,863,312 -2% Net Working Capital Balance: The net working capital will be $3.9 million at the end of FY 2022-23.
Sewer Depreciation Reserve
054-476
Description: The Sewer Depreciation Reserve Fund is an account for funds to be set aside for the replacement of equipment that has reached the end of its useful life and for major repairs to the sewer system infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item. A Sewer Asset Model determines contributions for major repairs to the system infrastructure. These processes assure that funds will be available to purchase replacement equipment and rebuild sewer system infrastructure when equipment or infrastructure is no longer serviceable.
Funding Source: Depreciation on capital assets and interest income are the major sources of funding for this program.
Legal Basis: This fund was established by City Ordinance No. 874. Resources in this program are assigned.
Budget Overview: Contractual Services projects total $1.9 million. Capital Projects total $800,000. Major projects include $300,000 for WRP Electrical Systems replacement, $300,000 for WRP Boiler Replacement, and $200,000 for Headworks Grit Cyclone Replacement.
184
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Bud 22-23 Sewer System SCADA Implementation 8,731 1,359,580 1,359,580 0 -100% Land Outfall Rectifier 0 145,250 145,250 0 -100%
Digester #1 Structural & Mechanical Rehab 11,828 0 0 0 0% WRP Electrical Systems Replacement 747,755 1,355,920 1,355,920 300,000 -78% Linda Lane Lift Station Stabilization 5,290 26,240 26,240 0 -100% WRP Gravity Belt Thickener Replacement 805,659 303,230 610 0 -100% Los Molinos Lift Station Generator Replacement 806 155,370 155,370 0 -100% Odor Control Systems Replacement 597 0 0 0 0%
WRP Gas Flare Rehabilitation 128,532 854,880 854,880 0 -100% WRP Security Gate 25,546 44,450 44,450 0 -100%
WRP Boiler Replacement 33,939 1,174,790 1,174,790 300,000 -74% Arenoso Lane Sewer Line Rehabilitation 122,594 35,640 2,460 0 -100% Aeration Blower Improvements 0 946,700 946,700 0 -100%
Marquita Slope Interim Reconstruction 48,702 1,027,510 1,027,510 0 -100% WRP Ferric Tank Replacement 84 150,000 150,000 0 -100%
Digester #2 Structural & Mechanical Rehab 0 200,000 200,000 0 -100% Wastewater Collection System Access Improv 0 200,000 200,000 0 -100% cypress Shores Emergency Pump Station 0 795,400 205,400 0 -100% Headworks Grit Cyclone Replacement 0 0 0 200,000 100%
Total Capital Improvements $1,940,063 $8,774,960 $7,849,160 $800,000 -91% Sewer Depreciation Reserve
185
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $7,643,348 $7,376,930 $7,376,930 $2,856,438 -61% Additions:
Sewer Connection Fees -196,983 0 0 0 0%
Investment Earnings 7,768 93,037 75,808 74,989 -19%
Total Additions -189,215 93,037 75,808 74,989 -19%
Deductions:
Contractual Services 51,145 435,800 435,800 0 -100%
Capital Improvements* 1,935 4,134,190 4,134,190 500,000 -88% Interdepartmental Charges 24,120 26,310 26,310 19,990 -24% Total Deductions 77,200 4,596,300 4,596,300 519,990 -89% Ending Balance $7,376,933 $2,873,667 $2,856,438 $2,411,437 -16% *Detail of Capital Improvements:
Recycled Water Expansion 1,935 0 0 0 0%
Tertiary Filter Backwash Improvements 0 345,610 345,610 0 -100% SMWD Trampas Recycled Wtr Reservoir 0 3,100,000 3,100,000 0 -100% SMWD Pico Recycled Wtr Pump Station 0 600,000 600,000 0 -100% Cyprus Shores PS Relocation 0 88,580 88,580 0 -100%
Recycled Water Quality Improvements 0 0 0 500,000 100%
Total Capital Improvements $1,935 $4,134,190 $4,134,190 $500,000 -88% Net Working Capital Balance: The net working capital will be $2.4 million at the end of FY 2022-23.
Sewer Connection Fee Reserve
054-477
Description: The Sewer Connection Fee Reserve account is used to construct new facilities required to collect, transport and treat the additional sewage generated by new development activity.
Funding Source: This program is funded by charging fees to developers and builders for connecting new facilities to the sewage system. The fee schedule is adjusted on a calendar year basis to allow for projected inflationary trends in new construction of capital projects.
Legal Basis: This program was established by City Ordinance No. 874. Resources in this program are restricted.
Budget Overview: Capital projects for FY 2022-23 include, $500,000 for Recycled Water Quality Improvements. 186
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $3,178,343 $2,146,030 $2,146,030 $1,060,073 -51% Additions:
Other Agency Depreciation Funded 200,000 168,000 168,000 168,000 0% Investment Earnings 3,230 27,066 22,053 27,830 3%
Total Additions 203,230 195,066 190,053 195,830 0%
Deductions:
Contractual Services 218,443 257,850 257,850 50,000 -81% Interdepartmental Charges 17,100 18,160 18,160 13,790 -24% Interfund Transfers 1,000,000 1,000,000 1,000,000 200,000 -80% Total Deductions 1,235,543 1,276,010 1,276,010 263,790 -79% Ending Balance $2,146,030 $1,065,086 $1,060,073 $992,113 -7% Net Working Capital Balance: The ending net working capital will be $992,113 at the end of FY 2022-23.
Sewer Other Agency Depreciation Reserves
054-478
Description: The Sewer Other Agency Depreciation Reserve Fund is used to account for funds to be set aside for major repairs to the sewer system infrastructure that is owned, operated and maintained by South Orange County Wastewater Authority (SOCWA). Depreciation is considered a normal operating expense, and funds are received from the general operating account. This process assures that funds will be available to rebuild sewer system infrastructure when infrastructure is no longer serviceable.
Funding Source: Depreciation on capital assets and interest income are the major sources of funding for this program.
Legal Basis: Resources in this program are assigned.
Budget Overview: There are no projects budgeted for FY 2022-23. 187
Net Working Capital Balance: Ending net working capital is budgeted at $1.3 million at the end of 2022-23.
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $1,866,747 $2,557,430 $2,557,430 $1,552,443 -39% Additions:
Depreciation Funded 970,394 890,000 890,000 890,000 0%
Investment Earnings 12,419 36,955 26,793 31,258 -15%
Total Additions 982,813 926,955 916,793 921,258 -1%
Deductions:
Contractual Services 137,355 556,500 556,500 200,000 -64% Capital Improvements* 105,298 1,104,020 1,062,450 0 -100% Interdepartmental Charges 49,479 83,830 52,830 49,280 -41% Transfer to Storm Drain Operating 0 250,000 250,000 600,000 140% Transfer to Other Funds 0 0 0 350,000 100%
Total Deductions 292,132 1,994,350 1,921,780 1,199,280 -40% Ending Balance $2,557,428 $1,490,035 $1,552,443 $1,274,421 -14% Storm Drain Utility Depreciation Reserve
059-553
Description: The Storm Drain Utility Depreciation Reserve was set up in FY 2002 to account for funds set aside for replacement of Storm Drain Fund equipment that has reached the end of its useful life and for major repairs to the Storm Drain Utility System infrastructure. Depreciation is considered a normal operating expense, and funds are received from the general operating account. Depreciation charges are computed by dividing the initial cost of the item by the projected useful life of the item and then budgeting the required amount. This process assures that funds will be available to purchase replacement equipment and rebuild Storm Drain Utility System infrastructure when equipment or infrastructure is no longer serviceable.
Funding Source: Depreciation on capital assets is a major source of funding for this program. Transfers from the Clean Ocean Operating Fund and the Storm Drain Operating Fund are made to support capital projects relating to water quality improvements.
Budget Overview: No Capital Projects are included in the FY 2022-23. Contractual Services includes Storm Drain Rehabilitation.
Legal Basis: Resources in this program are assigned.
188
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 *Detail of Capital Improvements: Actual Adj Budget Projected Budget To Bud 22-23 Via Montega/Cascadita Storm Drain to M01 1,990 0 0 0 0% 147 0 0 0 0%
E. Avenida Cordoba Drainage Study 94,346 51,840 51,840 0 -100% Storm Drain improvement at PCH and Camino SC 8,815 441,180 441,180 0 -100% Cyprus Shores SD Emergency Relocation 0 411,000 411,000 0 -100% Shorecliffs Golf Course SD Improvements 0 200,000 158,430 0 -100% Total Capital Improvements $105,298 $1,104,020 $1,062,450 $0 -100% Storm Drain Utility Depreciation Reserve
MO1/Avenida Vaquero Culvert Structural Rehab
189
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $3,058,523 $3,167,720 $3,167,720 $3,327,441 5% Additions:
Depreciation Funded 201,205 207,000 207,000 212,000 2%
Transfer from Golf Operating 0 24,000 32,900 35,000 46% Other State Grants 0 10,000 0 0 -100%
Investment Earnings 35,026 18,841 18,841 18,478 -2%
Total Additions 236,231 259,841 258,741 265,478 2%
Deductions:
Capital Improvements* 123,689 95,690 94,490 105,000 10% Interfund Charges 3,340 4,530 4,530 10,510 132%
Total Deductions 127,029 100,220 99,020 115,510 15%
Ending Balance $3,167,725 $3,327,341 $3,327,441 $3,477,409 5% *Detail of Capital Improvements:
Improvements other than Buildings 0 10,000 10,000 10,000 0% Tenant Improvements 0 20,000 18,800 10,000 -50%
Automotive Equipment 14,083 0 0 0 0%
Machinery & Equipment 109,606 65,690 65,690 85,000 29%
Total Capital Improvements $123,689 $95,690 $94,490 $105,000 10% Net Working Capital Balance: The net working capital balance will be $3.5 million at the end of FY 2022-23. Net working capital includes an interfund loan receivable of $1.25 million from the Golf Operating Fund.
Golf Depreciation Reserve
056-666
Description: The Golf Depreciation Reserve provides for the replacement of equipment, machinery, and buildings that have reached the end of their useful lives. Depreciation is considered a normal operating expense, and funds are received from the general operating accounts. Depreciation charges are computed by dividing the initial cost of the item by its projected useful life. This account assures that funds will be available to purchase replacement equipment and to replace building infrastructure when they are no longer serviceable.
Funding Source: Depreciation on capital assets is the major source of funding for this program which is transferred from the Golf Operating Fund at the end of the fiscal year.
Legal Basis: Resources in this program are assigned.
Budget Overview: Capital Improvement Projects planned include $20,000 for various repairs and tenant improvements and $85,000 has been included for replacement of a greens mower. 190
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Bud 21-22 Description Actual Adj Budget Projected Budget To Bud 22-23 Beginning Balance $1,469,602 $1,610,460 $1,610,460 $1,678,659 4% Additions:
Depreciation Funded 134,136 133,000 133,000 133,000 0%
Investment Earnings 14,817 9,579 9,579 9,322 -3%
Proceeds on internal loan 0 0 0 100,000 100%
Total Additions 148,953 142,579 142,579 242,322 70%
Deductions:
Capital Improvements* 0 65,000 65,000 300,000 362%
Interdepartmental Charges 8,100 9,380 9,380 12,620 35%
Total Deductions 8,100 74,380 74,380 312,620 320%
Ending Balance $1,610,455 $1,678,659 $1,678,659 $1,608,361 -4% *Detail of Capital Improvements:
Computer Software for Irrigation system 0 65,000 65,000 0 -100% Driving Range Fence Extension 0 0 0 300,000 100%
Total Capital Improvements $0 $65,000 $65,000 $300,000 362% Net Working Capital Balance: The net working capital balance will be $1.6 million at the end of FY 2022-23. $500,000 of net working capital represents an interfund loan receivable from the Golf Operating Fund.
Golf Capital Improvement Reserve
056-667
Description: The Golf Capital Improvement Reserve provides for the replacement of golf course improvements, such as irrigation systems, tee box, green renovations, and other improvements on the golf course. Equipment, machinery, and buildings are covered under the Golf Depreciation Reserve and are not a part of this reserve.
Funding Source: Depreciation on capital improvements is the major source of funding for this program which is transferred from the Golf Operating fund at the end of the fiscal year.
Legal Basis: This program was created by City Resolution No. 30-85 and 02-86. Resources in this program are assigned.
Budget Overview: Driving Range Fence Extension is budgeted for FY 2022-23. 191
192
Internal Service Funds are established to finance and account for goods and services provided by one City department to other City departments on a cost reimbursement basis. Internal Service Funds
Central
Services Fund
Information
Technology
Fund
Fleet Fund
Contract Fleet
Services
Fleet
Replacement
Reserve
Medical
Insurance Fund
Workers'
Compensation
Fund
General
Liability Self
Insurance Fund
193
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 By Category Actual Adj Budget Projected Budget To Budget 22-23 Personnel 54,937 64,180 59,350 69,120 8%
Supplies 36,120 54,890 52,440 49,890 -9%
Contractual Services 248,462 321,780 296,500 310,520 -3% Other Charges 538 540 540 540 0%
Interdepartmental Charges 85,590 81,970 81,970 85,130 4% Debt Service 36,391 12,230 12,130 36,700 200%
Total $462,038 $535,590 $502,930 $551,900 3%
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $226,447 $288,880 $288,880 $276,750 -4% Additions:
Imaging Fees 51,274 50,150 50,150 50,500 1%
Investment Earnings 1,533 4,000 4,000 4,000 0%
Charges to Other Departments 471,660 436,650 436,650 381,450 -13% Total Additions 524,467 490,800 490,800 435,950 -11%
Deductions:
Central Services 216,361 251,420 243,710 276,440 10%
Communications 245,677 284,170 259,220 275,460 -3%
Total Deductions 462,038 535,590 502,930 551,900 3%
Ending Balance $288,876 $244,090 $276,750 $160,800 -34% Budget Overview: Charges to other departments amount are $381,450 which reflect communication charges, postage, imaging charges and duplication charges.
Net Working Capital Balance: The ending net working capital balance is $160,800 at the end of FY 2022-23.
Central Services Fund
062-242/812
Description: The Central Services Fund provides duplicating, postage, and communications services for all programs.
Funding Source: Other City programs within funds are charged on a cost reimbursement basis. The cost of an individual copy in duplicating services is based on the total costs accumulated during the prior year. Machine rental, toner, paper, and miscellaneous costs are divided by the number of copies made during the prior year. The charges to each program for postage are compiled daily based upon actual usage with additional amounts charged for the maintenance costs of the postage meter.
Communication charges are allocated to the using divisions based on the number of phone lines, cellular phones, and lease phone lines. Imaging Fees offset Electronic Data Management System expenditures.
Legal Basis: Resources in this fund are assigned.
194
Expenditures FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 By Category Actual Adj Budget Projected Budget To Budget 22-23 Personnel 955,298 979,540 890,690 1,005,440 3%
Supplies 155 2,500 800 1,850 -26%
Contractual Services 749,053 977,570 729,650 831,210 -15% Other Charges 260 15,700 550 15,700 0%
Capital Outlay 31,936 105,330 105,000 85,000 -19%
Interdepartmental Charges 191,330 201,310 201,310 176,320 -12% Total $1,928,032 $2,281,950 $1,928,000 $2,115,520 -7%
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $949,338 $1,053,900 $1,053,900 $1,154,570 10% Additions:
Charges to Other Departments 2,028,730 2,014,660 2,014,660 2,009,660 0% Investment Earnings 3,863 17,000 13,810 14,000 -18%
Other Revenue 0 0 200 0 0%
Total Additions 2,032,593 2,031,660 2,028,670 2,023,660 0% Deductions:
Total Deductions 1,928,032 2,281,950 1,928,000 2,115,520 -7% Ending Balance $1,053,899 $803,610 $1,154,570 $1,062,710 32% Net Working Capital Balance: Net working capital is budgeted to be $1.1 million at the end of FY 2022-23.
Information Technology
063-241
Description: The Information Technology (IT) Fund is used to account for the costs associated with the City's centralized computer systems and to distribute these costs to the departments using the system. Included are costs for hardware, software, network services, communications, computer training and support, and related staffing.
Funding Source: Other City programs within funds are charged on a cost reimbursement basis. The cost is determined based on the number of computer units within a department.
Legal Basis: Resources in this fund are assigned.
Budget Overview: Expenses in this fund include the costs to design, install, maintain and support the City's enterprise computer network, including servers, computers, and related networking equipment. Staff in this fund support the network, hardware and software, provide training and support to other City staff, and maintain the City website. 195
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $208,500 $212,170 $212,170 $48,502 -77% Additions:
Charges to Other Departments 994,742 1,040,360 1,040,360 1,220,380 17% Investment Earnings 781 3,072 2,412 3,805 24%
Miscellaneous Income 1,009 500 400 1,000 100%
Total Additions 996,532 1,043,932 1,043,172 1,225,185 17% Deductions:
Supplies 339,656 500,600 499,000 511,950 2%
Contractual Services 596,330 665,000 650,200 700,080 5% Interdepartmental Charges 56,880 57,640 57,640 61,060 6% Total Deductions 992,866 1,223,240 1,206,840 1,273,090 4% Ending Balance $212,166 $32,862 $48,502 $597 -98%
Net Working Capital Balance: Net working capital is budgeted to be $597 at the end of FY 2022-23.
Fleet Services Fund
065-619
Description: First Vehicle Services (FVS) is responsible for the preventative maintenance and repair fo the City's vehicles and equipment. First Vehicle Services is a contracted service provider operating from the City's maintenance facility. First Vehicle Services guarantees vehicle availability, timeliness of performance and emergency road response.
Funding Source: Actual operations and maintenance costs from the prior year are charged to each vehicle through interdepartmental charges.
Legal Basis: Resources in this fund are assigned.
Budget Overview: Fuel and contractual services costs have increased from the prior year. Contractual costs are primarily for the vehicle service contract. There are no capital projects scheduled for FY 2022-23. 196
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $6,338,993 $6,694,270 $6,694,270 $5,074,458 -24% Additions:
Replacement Charges to Depts. 558,188 516,480 516,480 519,950 1% Investment Earnings 23,751 96,928 76,088 81,195 -16%
Gain/Loss on Disposal of Fixed Assets 0 40,000 0 0 -100% Total Additions 581,939 653,408 592,568 601,145 -8%
Deductions:
Capital Outlay* 198,261 2,221,670 2,179,670 412,530 -81% Interfund Charges 28,400 32,710 32,710 29,880 -9%
Total Deductions 226,661 2,254,380 2,212,380 442,410 -80% Ending Balance $6,694,271 $5,093,298 $5,074,458 $5,233,193 3% Net Working Capital Balance: Net working capital will be $5.3 million at the end of FY 2022-23.
Fleet Replacement Reserve Fund
065-824
Description: The Fleet Replacement Reserve includes funding set aside for the replacement of vehicles and other rolling stock as they become unserviceable, obsolete, or reach a predetermined service life. When new equipment is purchased, a replacement schedule is established so that funds will be available at the end of the useful life of the equipment. This provides for an orderly funding mechanism for purchasing replacement pieces of equipment.
Funding Source: Replacement costs, along with vehicle operating costs, are charged directly to each user program in all funds. The estimated replacement cost is established by factoring the original purchase price by an annual compounded inflation rate. The annual replacement charge is then calculated by dividing the replacement cost by the number of years before replacement is scheduled.
Legal Basis: Resources in this program are assigned.
Budget Overview: Capital Outlay in the amount of $412,530 is budgeted in FY 2022-23 for replacement of vehicles and equipment.
197
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 *Detail of Capital Outlay (Replacements): Actual Adj Budget Projected Budget To Budget 22-23 2021 Honda TRX 420FE1 Four Trax 19,331 0 0 0 0%
2020 BMW R1250RT-P motorcycle (2 vehicles) 58,206 0 0 0 0% 2021 Chevrolet Equinox LS 27,730 0 0 0 0%
2021 Chevrolet Silverado 1500 27,582 0 0 0 0%
2020 Ford F-550 XL 65,412 0 0 0 0%
Automotive Equipment 0 59,340 18,820 0 -100%
Unit #1093 2008 Ford Ranger 0 20,090 20,090 0 -100%
Unit #1027 2004 Ford 3/4 ton Utility Body 0 27,600 27,600 0 -100% Unit #1070 2008 Ford F250 0 27,900 27,900 0 -100%
Unit #0979 2001 Ford F350 Dump Truck 0 80,000 65,410 0 -100% Unit #1021 2004 Ford Ranger 0 21,150 21,150 0 -100%
Unit #1025 2004 Ford Ranger XLT Supercab 0 22,600 22,600 0 -100% Unit #1133 2010 Ford F350 Utility Body 0 44,450 44,450 0 -100% Unit #1053 2007 Ford Taurus 0 18,640 18,640 0 -100%
Unit #1177 2015 John Deere 33 E Track Loader 0 76,230 87,170 0 -100% Unit #1103 2008 Chevrolet W4500 Utility Body 0 34,650 34,650 0 -100% Unit #1085 2007 Cat Skid Steer 0 83,200 83,200 0 -100%
Unit #1088 2008 Ford F350 Cab w/ exerciser 0 52,220 52,220 0 -100% Unit #1090 2008 Ford F350 Utility Body 0 32,760 32,760 0 -100% Unit #1101 2008 Ford F450 w/ Dump Body 0 57,770 57,770 0 -100% Unit #1137 2011 Ford F350 4X4 0 41,090 48,500 0 -100%
Unit #1105 Prowler Sewer 0 25,830 25,830 0 -100%
Unit #1106 2008 Great Northern Trailer 0 4,550 4,550 0 -100% Unit #1158 2013 Ford F250 Animal Body 0 62,800 61,950 0 -100% Unit #1159 2013 Ford F250 Animal Body 0 62,800 61,950 0 -100% Unit #1058 2006 Chevrolet Uplander Van 0 21,630 21,630 0 -100% Unit #2010 2005 Chevrolet Van 0 23,560 23,560 0 -100%
Unit #2072 2072 GMC Safari Van 0 23,560 23,560 0 -100%
Unit #1043 2005 Ford Ranger 0 30,870 29,090 0 -100%
Unit #1140 Kubota Utility Vehicle 0 17,080 16,820 0 -100% Unit #1085 2008 Cat Skid Steer Tractor 0 86,200 86,200 0 -100% Unit #1056 2006 Ford Ranger 0 23,300 23,300 0 -100%
Unit #1171 2014 Ford Escape 0 28,500 28,500 0 -100%
Unit #1169 2013 Ford Transit Connect Van 0 27,240 25,260 0 -100% Unit #1102 2008 Ford F250 Utility 0 35,440 35,440 0 -100% Unit #1119 2010 Ford F350 0 33,880 33,880 0 -100%
Unit #1121 2010 Ford F350 Super Duty 0 39,340 39,340 0 -100% Unit #1136 2011 Ford F350 0 35,000 35,000 0 -100%
Unit #1156 2013 Ford F350 Utility 0 42,720 42,720 0 -100% Unit #1118 2010 Ford F350 0 33,880 33,880 0 -100%
Unit #1130 2010 Ford F350 Utility 0 33,880 33,880 0 -100% Unit #1204 Honda TRX4520FE1H 0 8,340 8,580 0 -100%
Unit #1205 Honda TRX4520FE1H 0 8,340 8,580 0 -100%
Unit #1071 2007 Ford F150 SuperCrew 0 31,570 31,570 0 -100% Unit #1173 2015 Ford F350 Utility 0 41,900 41,900 0 -100% Unit #1175 2015 Ford F350 Utility 0 44,340 44,340 0 -100% Unit #976 2000 GMC Sonoma 0 24,030 24,030 0 -100%
Unit #997 2002 Ford Ranger 0 24,930 24,930 0 -100%
Unit #1041 2005 Ford F350 0 26,320 26,320 0 -100%
Unit #1086 2008 Ford F150 XLT SuperCrew 0 30,520 30,520 0 -100% Unit #956 1999 Ford Ranger 0 21,150 21,150 0 -100%
Unit #1135 2005 Kenworth Vactor 0 540,980 540,980 0 -100% Unit #1005 Hyster Forklift 0 27,500 27,500 0 -100%
Unit #1218 Replacement 0 0 0 22,830 100%
Unit #1224 Replacement 0 0 0 43,410 100%
Unit #1227 Replacement 0 0 0 43,410 100%
Unit #1211 Replacement 0 0 0 8,340 100%
Unit #1142 Replacement 0 0 0 125,700 100%
Unit #1146 Replacement 0 0 0 34,860 100%
Unit #1155 Replacement 0 0 0 42,720 100%
Unit #1032 Replacement 0 0 0 1,160 100%
Unit #1115 Replacement 0 0 0 47,100 100%
Machinery & Equipment - Vehicle Lift 0 0 0 43,000 100%
Total Capital Outlay $198,261 $2,221,670 $2,179,670 $412,530 -81% Fleet Replacement Reserve
198
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $157,964 $172,800 $172,800 $173,000 0% Additions:
Premiums Charged 3,100,123 3,700,000 3,101,340 3,665,440 -1% COBRA Premiums 175 2,000 500 2,000 0%
Retiree Premiums 196,588 235,000 195,000 225,000 -4%
Investment Earnings -435 500 1,200 1,000 100%
Miscellaneous Income 14,347 12,000 12,000 12,000 0%
Total Additions 3,310,798 3,949,500 3,310,040 3,905,440 -1% Deductions:
Claims Paid 186,058 225,500 207,000 222,500 -1%
Premiums Paid 2,985,690 3,554,800 2,980,800 3,557,800 0% Claims Administration 30,758 38,000 35,000 38,000 0%
Contractual Services 2,536 2,550 2,550 2,650 4%
Interfund Charges 90,920 84,490 84,490 90,730 7%
Total Deductions 3,295,962 3,905,340 3,309,840 3,911,680 0% Ending Balance $172,800 $216,960 $173,000 $166,760 -23% Net Working Capital Balance: Net working capital will be $166,760 at the end of FY 2022-23.
Medical Insurance Fund
066-814
Description: The Medical Insurance program is offered to all regular full-time employees and benefited part-time employees. The benefits covered include medical, vision and dental insurance. Health insurance is coordinated through the CalPERS health plans. The fund also includes retiree insurance and COBRA insurance.
Funding Source: Premiums are based on the specific medical insurance program which the employee has selected. The costs of the medical program are accounted for in this fund and charged back to the appropriate program. Other postemployment medical benefits are pre-funded through the California Employers Retiree Benefit Trust (CERBT) which is a Section 115 trust based on charges allocated to the programs by this fund.
Legal Basis: Resources in this fund are assigned.
Budget Overview: Expenses include premium payments for medical, dental and vision plans. The City budgets for premiums at complete staffing level. Costs are recovered through charges to other funds and employee paid premiums. 199
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $2,066,312 $2,300,990 $2,300,990 $1,975,740 -14% Additions:
Prem. Charged to Other Funds 489,004 490,000 490,000 485,000 -1% Investment Earnings 8,010 30,000 23,300 25,000 -17%
Other Revenue 4,969 0 3,000 0 0%
Total Additions 501,983 520,000 516,300 510,000 -2%
Deductions:
Supplies 12,309 14,090 14,090 10,150 -28%
Contractual Services 2,155 9,750 6,000 7,500 -23%
Other Charges 215,431 487,100 487,110 505,000 4%
Interfund Charges 37,410 34,350 34,350 36,800 7%
Interfund Transfers 0 300,000 300,000 0 -100%
Total Deductions 267,305 845,290 841,550 559,450 -34%
Ending Balance $2,300,990 $1,975,700 $1,975,740 $1,926,290 -3% Net Working Capital Balance: The ending working capital for FY 2022-23 will be $1.9 million. This $1.9 million includes $900,000 or three times the Self-insurance retention of $300,000 based on the City's fiscal policy. The remaining balance provides amounts to cover claims prior to 1995 when the City was self-insured.
Workers' Compensation Fund
067-815
Description: The City is self-insured for Workers' Compensation; however, the City receives an excess insurance supplement from CSAC Excess Insurance Authority. The City continues to use manual rates to charge the various departments. Through the City's payroll system, premiums for this coverage are charged back to the various departments and operating funds are included in the employees' compensation package. Costs linked to running the program, such as providing a third-party claims administrator, are also shared using the same methodology.
Funding Source: The major source of funding for this program is the premiums charged to other funds.
Legal Basis: Resources in this fund are assigned.
Budget Overview: Revenues are related to salary charges and interest and anticipated to stay the same for FY 2022-23. 200
FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 % Budget 21-22 Description Actual Adj Budget Projected Budget To Budget 22-23 Beginning Balance $6,129,225 $6,461,570 $6,461,570 $5,753,860 -11% Additions:
Employer Premiums 2,704,170 2,664,000 2,664,000 2,688,000 1% Investment Earnings 15,111 100,000 74,000 75,000 -25%
Miscellaneous Revenues 9,259 0 2,260 0 0%
Total Additions 2,728,540 2,764,000 2,740,260 2,763,000 0% Deductions:
Personnel 156,731 203,340 133,890 138,460 -32%
Supplies 7 650 650 650 0%
Contractual Services 21,880 981,860 982,360 579,150 -41% Other Charges 2,161,687 2,346,700 2,270,790 2,051,950 -13% Interfund Charges 55,890 60,280 60,280 42,140 -30%
Total Deductions 2,396,195 3,592,830 3,447,970 2,812,350 -22% Ending Balance $6,461,570 $5,632,740 $5,753,860 $5,704,510 1% Net Working Capital Balance: Ending net working capital is $5.7 million at the end of FY 2022-23.
General Liability Self Insurance Fund
068-816
Description: In order to control the costs of subsidence claims and continue to purchase liability and property insurance, the City in FY 2004-2005 entered into a joint powers agreement through the California Joint Powers Insurance Authority, (CJPIA), with other agencies to purchase excess layers of protection. Under this program, the City is covered for expenses related to subsidence claims, as this coverage will be provided through CJPIA. The City will continue to control costs lower its risk through a combination of self-insurance and purchased insurance, while maintaining comprehensive coverage.
Funding Source: Premium charges, claims adjustments, legal services and other administration costs are necessary to maintain this program. Each of the operating funds of the City are charged an amount in relation to the frequency and severity of claims incurred. These amounts are received in the General Liability Self-Insurance Fund to pay for insurance coverage.
Legal Basis: This fund is governed by Resolution No. 67-78 and 18-80. Resources in this fund are assigned.
Budget Overview: Employer premiums charged to other funds are $2.7 million. Expenses include administative costs, claims and payments to CJPIA to provide coverage.
201
202
Capital Improvement Program
Introduction
The Capital Improvement Program (CIP) section of the Annual Budget document is intended to provide the reader with a summary of the major capital projects for FY 2022-23. The City’s Capital Improvement Program is divided into six major categories:
x Drainage
x Parks and Medians
x Sewer
x Street
x Water
x Facilities and Other Improvements
This section provides a summary of the CIP process, master plans, six year project plans presented by the six major categories for easy reference, and an overview of Carry Forward Projects (projects appropriated by Council in previous fiscal years which are re-appropriated into FY 2022-23). In addition, an easyreference map allows the reader to identify the location of major new projects in FY 2022-23.
Individual project sheets outlining the project description, project location (including maps), projected cost, operation and maintenance costs and funding sources are included in this section and are organized based on the major categories listed previously.
Master Plans
The City utilizes “master plans” to guide the development and maintenance of existing infrastructure, as well as future capital improvements. The plans provide a foundation for the development of goals and priorities for capital improvement projects. The list of master plans includes:
x City General Plan
x Master Plan for City Facilities
x Park & Recreation Master Plan
x Regional Circulation Financing and Phasing Program (RCFPP) x Street Improvement Program
x Water Master Plan
x Drainage Master Plan
x Wastewater (Sewer) Master Plan
x Water and Sewer Asset Management Plan
x Recycled Water Master Plan
x Urban Runoff Management Plan
x Other Specific Plans (e.g. Pier Bowl Specific Plan)
These master plans demonstrate the City’s commitment to long-range capital improvement programming by focusing attention on the current and future needs of the community, while balancing the community’s needs with its available fiscal resources.
CIP Process
The long-term Capital Improvement Program includes projects that have a value of $25,000 or more with a minimum useful life of 5 years at a fixed location. Equipment, operating and maintenance costs are identified and will be included in future operating budgets. 203
Capital Improvement Program
The Capital Improvement Program Committee, consisting of members from all City departments, annually prepares and updates a six-year capital improvement plan. Projects are reviewed by the CIP Committee to ensure that the City’s priorities are addressed and that staffing levels and funds are adequate to complete the projects. Capital Improvement Program projects are addressed based on the following four categories:
x Replacement
Existing improvements that are deteriorated and need to be replaced and/or upgraded to continue to provide service and to meet current codes and regulations. x Expansion
New improvements that are growth-related and funded through development fees. These improvements are identified in master plans and/or agreements, and funding sources are in place. x Growth
New improvements based on projected development. These projects are “development dependent”, and the funding source is through future development fees and/or financing by developers. x Economic Vitality and Diversity
This includes construction of improvements for promotion of economic vitality and diversity and to eliminate and prevent the spread of blight and deterioration in the City.
FY 2023 Capital Improvement Projects
The total budget for the City’s Capital Improvements in FY 2022-23 is $14.3 million. There are 31 Capital Improvement Projects included in the program for FY 2022-23. The chart below summarizes the FY 2022- 23 new CIP program by project amount (in millions), number, and type:
Drainage $ 1.1 3
Beaches, Parks & Medians 2.2 7
Sewer 1.3 4
Streets 6.2 9
Water 2.7 6
Facilities and Other Improvements 0.8 2
FY 2022-23 Capital Improvement Projects $ 14.3 31
Category
Dollars
(in millions)
Number of
projects
The individual projects by category and fund are listed on the New Capital Improvements Projects – Summary by Category and the New Capital Improvements Projects – Summary by Fund schedules. A six year capital plan is presented. However, only the first year of projects are funded and approved with the additional years presented for planning purposes only. The Street projects ($6.2 million) are primarily based on the Street Master Plan, the Street Improvement Program and current pavement management studies. Water ($2.7 million), Sewer ($1.3 million) and Drainage ($1.1 million) projects are based on their respective master plans or to meet regulatory requirements. In addition, the Parks and Medians ($2.2 million), and Facilities and Other Improvements ($0.8 million) are based on the City Facilities Master Plan, staff risk assessments, or additional Council identified needs.
Funding for the projects is outlined in the New Capital Improvement Projects – Revenue Summary.
Projects are funded through existing revenues in the General Fund, capital project, special revenue or depreciation reserve funds.
204
Capital Improvement Program
Maintenance and Other Projects
These projects include normal maintenance, studies or small contractual projects. The details of these projects are listed in the schedules of Maintenance and Other Projects – Summary by Category and the Maintenance and Other Projects – Summary by Fund. The City will spend $8.7 million on 38 maintenance and other contractual projects which consist of $0.2 million in Drainage, $0.9 million for Beaches, Parks and Medians, $1.9 million in Sewer, $2.5 million in Streets, $2.3 million in Water and $0.9 million in Facilities and Other Improvements.
Drainage $ 0.2 1
Beaches, Parks & Medians 0.9 6
Sewer 1.9 7
Streets 2.5 12
Water 2.3 8
Facilities and Other Improvements 0.9 4
FY 2022-23 Maintenance and Other Projects $ 8.7 38
Category
Dollars
(in millions)
Number of
projects
Funding sources for these projects are outlined on the Maintenance and Other Projects – Revenue Summary.
Significant Capital Projects and Operating Impacts
Significant projects include the Calle Real Pump Station, Steed Park Pick Ball, and a variety of Street, Water and Sewer projects in other Funds. Most of these projects are not anticipated to have a significant impact or change to operating costs due to the assets existing. The only new construction which would dramatically impact annual operating costs would be the Steed Park Pickle Ball, which after completion of both design and construction for the entire buildout of the additional Steed Park area would be $331,000 annually.
Carry Forward Projects
Carry Forward Projects are CIP projects approved in prior fiscal years which are brought forward into the new fiscal year budget. There are ## projects totaling $##.# million anticipated being carried forward into FY 2022-23. The project name, approved project budget, project costs to date and the FY 2021-22 Carry Forward amounts are listed in the Carry Forward Projects schedule.
Highlighted areas to be completed after year end.
205
AVE VISTA
This map has been provided to give a visual
display of city data from various sources.
To be sure of complete accuracy, please check
with City staff for the most up to date information.
The City of San Clemente assumes no liability
for errors associated with the use of this data.
01 0.5
Miles Sewer
Streets
Water
Beaches, Parks & Medians
Drainage
Facilities and Other Improvements
City of San Clemente
CIP FY 2023
206
Capital Improvement Projects
Revenue Summary FY 2022-23
Capital Improvement Projects
Expenditure by Category Summary FY 2022-23
New Capital Improvement Projects - Graphs
Sewer $1,300,000 9%
Gas Tax Fund $3,170,000
22%
Grants/Other $355,000 3%
Other Funds $2,395,000
17%
Local Drainage Fund
$1,050,000 7%
Street Improvement Fund
$2,190,000 15%
Reserve Fund $1,100,000
8% Water Fund $2,700,000
19%
Total Capital Improvement Revenue Summary - $14,260,000 Drainage $1,050,000 7%
Parks & Medians $2,170,000
15%
Sewer $1,300,000
9%
Streets $6,190,000
43%
Water $2,700,000
19%
Facilities and Other Improvements $850,000
6%
Total Capital Improvement Expenditure Summary - $14,260,000 207
Capital Improvement Projects
Expenditure by Fund Summary FY 2022-23
Expenditure by Category Summary FY 2015
New Capital Improvement Projects - Graphs
Sewer $1,300,000 9%
Gas Tax Fund
$3,170,000 22%
Other $2,750,000
19%
Local Drainage Fund
$1,050,000 7%
Street Improvement
Fund $2,190,000 16%
Reserve Fund
$1,100,000 8%
Water Fund
$2,700,000 19%
Total Capital Improvement Expenditure Summary - $14,260,000 208
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Drainage
Catch Basin and SD Improvements: Pico & Frontera 450,000 100,000 350,000 0 0 0 0 Catch Basin and SD Improvements: Presidio & Miguel 600,000 600,000 0 0 0 0 0 Catch Basin and SD Improvements: Santa Maria & Coco 700,000 0 150,000 550,000 0 0 0 E. Avenida Cordoba Drainage Study 1,700,000 0 1,700,000 0 0 0 0 M00S05 Montalvo Canyon Outlet 350,000 350,000 0 0 0 0 0 Pier Bowl Drainage Study & Improvements 1,000,000 0 0 150,000 850,000 0 0 Poche System Diversion to Land Outfall 2,150,000 0 150,000 2,000,000 0 0 0 Storm Drain Improvements: Cayenta & Buena Suerte 950,000 0 0 0 150,000 800,000 0 Storm Drain Improvements: Caballeros & Patero de Oro 1,450,000 0 250,000 1,200,000 0 0 0 Storm Drain Improvements: Marblehead Coastal 350,000 0 350,000 0 0 0 0 Storm Drain Improvements: Santa Margarita & Corta 300,000 0 300,000 0 0 0 0 Storm Drain Improvements: Solano & La Cuesta 700,000 0 0 0 150,000 550,000 0 Storm Drain Improvements: Vaquero & Vista Torito 700,000 0 0 0 0 100,000 600,000 Storm Drain Improvements: W. Ave. Roma & S. Ola Vista 600,000 0 0 0 100,000 500,000 0 12,000,000 1,050,000 3,250,000 3,900,000 1,250,000 1,950,000 600,000 Beaches, Parks & Medians
Aquatic Center Shade Structure Replacements 120,000 0 120,000 0 0 0 0 Beach Trail Bridge Replacement 500,000 500,000 0 0 0 0 0 Bunker Renovations 350,000 0 0 0 350,000 0 0
Community Center Shuffleboard Remodeling 200,000 200,000 0 0 0 0 0 Driving Range Fence Extension 300,000 300,000 0 0 0 0 0 Forester Ranch Playground Equipment Replacement 300,000 0 300,000 0 0 0 0 Park Master Plan Priority Projects 1,000,000 0 500,000 500,000 0 0 0 Pier Condition Assessment and Repairs 3,500,000 0 0 300,000 3,200,000 0 0 Pier Decking Expansion Design 300,000 0 300,000 0 0 0 0 Solar Canopies for Parking Lots - Vista Hermosa and Steed Pk 1,000,000 100,000 900,000 0 0 0 0 Steed Park Errant Ball Netting 70,000 70,000 0 0 0 0 0
Steed Park Pickle Ball 3,500,000 500,000 3,000,000 0 0 0 0 Steed Park Sports Field Lighting Replacement 500,000 500,000 0 0 0 0 0 Street Light LED Conversion Phase 3 250,000 0 250,000 0 0 0 0 Talega Park Playground Equipment Replacement 250,000 0 0 250,000 0 0 0 Tierra Grande Park Playground Equipment Replacement 300,000 0 0 0 300,000 0 0 Trafalgar Canyon Bridge Rehabilitation 250,000 0 250,000 0 0 0 0 Vista Hermosa Sports Park Fields Synthetic Turf Replacement 1,200,000 0 0 0 0 1,200,000 0 13,890,000 2,170,000 5,620,000 1,050,000 3,850,000 1,200,000 0 Sewer
Cypress Shores PS Force Main Rehabilitation 1,400,000 0 0 0 0 200,000 1,200,000 Digester #2 Structural & Mechanical Rehabilitation 500,000 0 0 500,000 0 0 0 Headworks Grit Cyclone Replacement 800,000 200,000 600,000 0 0 0 0 Los Molinos Lift Station Generator Replacement 500,000 0 500,000 0 0 0 0 Primary Clarifier 1, 2 & 3 Rehabilitation 500,000 0 0 500,000 0 0 0 Recycled Water Quality Improvements 11,000,000 500,000 10,500,000 0 0 0 0 Secondary Clarifier 1, 2 & 3 Rehabilitation 600,000 0 0 0 0 600,000 0 Secondary Clarifier 4, 5 & 6 Rehabilitation 600,000 0 0 0 0 0 600,000 Sludge Dehydration System 2,280,000 0 0 220,000 2,060,000 0 0 Vactor Discharge Station 100,000 0 0 100,000 0 0 0
Wastewater Collection System Access Improvements 150,000 0 150,000 0 0 0 0 WRP Boiler Replacement 300,000 300,000 0 0 0 0 0
WRP Co-Generation 4,005,000 0 0 0 400,000 3,605,000 0
WRP DIP Replacement 2,250,000 0 250,000 0 1,000,000 1,000,000 0 WRP Electrical System Replacements 3,050,000 300,000 1,000,000 250,000 1,500,000 0 0 WRP Odor Control Systems Replacement 6,500,000 0 0 2,000,000 0 4,500,000 0 34,535,000 1,300,000 13,000,000 3,570,000 4,960,000 9,905,000 1,800,000 Streets
Alley Pavement Rehabilitation 1,380,000 690,000 690,000 0 0 0 0 Arterial Street Pavement Maintenance 9,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Avenida Pico Class I Bike/Pedestrian Path Phase I 1,600,000 0 1,600,000 0 0 0 0 Camino Del Rio & La Pata Extensions 95,000 95,000 0 0 0 0 0 Intersection Improvements: AVH & La Pata 700,000 700,000 0 0 0 0 0 Intersection Improvements: AVH & Vera Cruz 1,000,000 0 200,000 800,000 0 0 0 Intersection Improvements: PCH & Cam. Capistrano 875,000 0 175,000 700,000 0 0 0 Intersection Improvements: Pico & Amanecer 875,000 0 0 175,000 700,000 0 0 Intersection Improvements: Pico & Del Cerro 750,000 0 150,000 600,000 0 0 0 New Capital Improvement Projects
Summary by Category
209
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 New Capital Improvement Projects
Summary by Category
Intersection Improvements: Pico & La Pata 500,000 0 0 100,000 400,000 0 0 Pavement Preservation Program Various Arterials 4,200,000 700,000 700,000 700,000 700,000 700,000 700,000 Pico Widening: I-5 to Frontera 850,000 0 0 850,000 0 0 0 Sdwlk Imp - Ave San Luis Rey, Santa Margarita & E. Magdalena 725,000 725,000 0 0 0 0 0 Sidewalk Improvements / CDBG 780,000 130,000 130,000 130,000 130,000 130,000 130,000 Street Improvement Projects 9,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Traffic Signal Conversion - Various Intersections 150,000 150,000 0 0 0 0 0 32,480,000 6,190,000 6,645,000 7,055,000 4,930,000 3,830,000 3,830,000 Water
AC Pipe Replacement Northwest 308 Zone 2,250,000 250,000 0 2,000,000 0 0 0 Acapulco Pump Station Rehabilitation 2,750,000 0 250,000 0 0 2,500,000 0 Calafia Turnout Replacement 1,150,000 0 150,000 1,000,000 0 0 0 Calle Real Pump Station Rehabilitation 1,200,000 1,200,000 0 0 0 0 0 Calle Vallarta PRS 350,000 0 0 0 350,000 0 0
Cathodic Protection System Improvements 300,000 300,000 0 0 0 0 0 City-wide Copper Service Replacements 500,000 0 0 0 500,000 0 0 Costero Risco PRS Rehabilitation 400,000 0 400,000 0 0 0 0 Del Cerro PRS Rehabilitation 350,000 0 0 0 0 350,000 0
El Levante PRS Rehabilitation 350,000 0 0 350,000 0 0 0 La Pata Recycled Waterline Rehabilitation 750,000 0 0 0 0 0 750,000 La Pata, Esmarca, Patricia Check Valves 300,000 0 0 0 0 0 300,000 La Quinta PRS Rehabilitation 350,000 0 0 0 0 350,000 0
Pico/Presidio DIP Replacement (Albertsons) 900,000 150,000 750,000 0 0 0 0 Potable Water Reservoir Improvement Projects 1,500,000 0 0 0 0 0 1,500,000 Pump Station Bypass Pump Connections 100,000 0 0 0 0 100,000 0 Reata Pump Station Rehabilitation 2,800,000 0 0 0 2,800,000 0 0 Recycled Water Expansion Phase II 4,500,000 500,000 0 4,000,000 0 0 0 Reeves Pump Station 1,000,000 0 1,000,000 0 0 0 0
Reservoir No. 5A Replacement 3,300,000 300,000 0 3,000,000 0 0 0 Reservoir No.6 Removal 100,000 0 100,000 0 0 0 0
25,200,000 2,700,000 2,650,000 10,350,000 3,650,000 3,300,000 2,550,000 Facilities and Other Improvements
Aquatic Center Pump Room Equipment Replacement 600,000 600,000 0 0 0 0 0 Community Center Structural Repair and Upgrades 80,000 0 80,000 0 0 0 0 Corporation Yard Bldg. "J" Structural Repair and Upgrades 250,000 0 250,000 0 0 0 0 Corto Lane Beach Access Rehabilitation 1,250,000 250,000 1,000,000 0 0 0 0 Del Mar Phase I Undergrounding District 2,000,000 0 0 2,000,000 0 0 0 North Beach Concessions Structural Repair and Upgrades 85,000 0 0 85,000 0 0 0 4,265,000 850,000 1,330,000 2,085,000 0 0 0
Total CIP 122,370,000 14,260,000 32,495,000 28,010,000 18,640,000 20,185,000 8,780,000 * Shading indicates presented projects.
210
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Drainage
City-wide Catch Basins Rehabilitation 200,000 0 200,000 0 0 0 0 City-wide Culverts Structural Assessment 950,000 0 200,000 500,000 250,000 0 0 Storm Drain Manhole Rehabilitation 100,000 0 100,000 0 0 0 0 Storm Drain Rehabilitation 1,200,000 200,000 200,000 200,000 200,000 200,000 200,000 Storm Drain Trash Capture Devices Throughout City 1,881,000 0 522,000 522,000 522,000 315,000 0 4,331,000 200,000 1,222,000 1,222,000 972,000 515,000 200,000 Beaches, Parks & Medians
Base of Pier Bike Rack Area Renovation 220,000 220,000 0 0 0 0 0 Lifeguard Tower Replacement 500,000 100,000 100,000 100,000 100,000 100,000 0 Park Monument Sign Replacements 360,000 150,000 70,000 70,000 70,000 0 0 Pier Timber Pile Inspection 150,000 50,000 0 50,000 0 50,000 0 Pier Steel Piles Cathodic Protection Improvements 150,000 150,000 0 0 0 0 0 Pier Timber Piles Replacement with Steel Piles Study 100,000 0 100,000 0 0 0 0 Steed Park Sewer Lateral Replacement 180,000 180,000 0 0 0 0 0 1,660,000 850,000 270,000 220,000 170,000 150,000 0
Sewer
Centrifuge Conveyor Improvements 300,000 300,000 0 0 0 0 0 Digester #2 Cleaning Residual Disposal & Inspection 100,000 100,000 0 0 0 0 0 Los Molinos Wet Well Lining 800,000 0 200,000 600,000 0 0 0 Main Pump Station Forcemain Valve Replacement 500,000 500,000 0 0 0 0 0 San Juan Creek Ocean Outfall Assessment 320,000 50,000 0 25,000 90,000 25,000 130,000 Sewer Asset Management 50,000 0 0 50,000 0 0 0
Sewer System Lining 1,500,000 250,000 250,000 250,000 250,000 250,000 250,000 Sewer System Rehabilitation 1,600,000 250,000 250,000 250,000 250,000 300,000 300,000 WRP and Sewer Facility Pavement Rehabilitation 200,000 0 0 0 200,000 0 0 WRP Efficiency Study 1,500,000 0 1,500,000 0 0 0 0
WRP Sluice Gate Replacements 500,000 500,000 0 0 0 0 0
7,370,000 1,950,000 2,200,000 1,175,000 790,000 575,000 680,000 Streets
As Needed Pavement Repairs 1,800,000 300,000 300,000 300,000 300,000 300,000 300,000 As Needed Sidewalk Repair and Improvements 550,000 550,000 0 0 0 0 0 Avenida Victoria Sidewalk Widening 150,000 150,000 0 0 0 0 0 Downtown Alley Lighting Replacement 70,000 0 0 0 70,000 0 0 Downtown Paseo Plan 800,000 0 0 200,000 600,000 0 0
Major Street Maintenance 3,300,000 550,000 550,000 550,000 550,000 550,000 550,000 Pavement Management System Update 150,000 50,000 0 50,000 0 50,000 0 Pavement Preservation Program 1,500,000 250,000 250,000 250,000 250,000 250,000 250,000 Sewer System Replacement - Pavement 600,000 100,000 100,000 100,000 100,000 100,000 100,000 Sidewalk Repair & Improvements 900,000 150,000 150,000 150,000 150,000 150,000 150,000 Storm Drain Manhole Rehabilitation 100,000 0 100,000 0 0 0 0 Street Improvement Design 450,000 75,000 75,000 75,000 75,000 75,000 75,000 Street Sign Replacement Program 600,000 100,000 100,000 100,000 100,000 100,000 100,000 Traffic Calming Program 480,000 80,000 80,000 80,000 80,000 80,000 80,000 Water System Replacement - Pavement 600,000 100,000 100,000 100,000 100,000 100,000 100,000 12,050,000 2,455,000 1,805,000 1,955,000 2,375,000 1,755,000 1,705,000 Water
Dead End Water System Improvements 100,000 50,000 50,000 0 0 0 0 JRWSS Agency Projects 4,450,000 1,300,000 1,000,000 600,000 550,000 1,000,000 0 Meter Replacements 1,200,000 100,000 100,000 100,000 300,000 300,000 300,000 Pump Station and Reservoir Pavement Rehabilitation 400,000 0 200,000 200,000 0 0 0 Recycled Water Storage Bay Rehabilitation 500,000 0 500,000 0 0 0 0 Reservoir 5A Interior Coating Replacement 500,000 0 0 500,000 0 0 0 Reservoir No. 12 Site Improvements 200,000 200,000 0 0 0 0 0 Reservoir No. 4 Exterior Coating 250,000 50,000 200,000 0 0 0 0 Sodium Hypochlorite Tank Replacement 350,000 350,000 0 0 0 0 0 Water Asset Management Study 50,000 0 50,000 0 0 0 0
Water System Air-Vac Replacement Program 75,000 25,000 25,000 0 25,000 0 0 Water System Rehabilitation 1,750,000 250,000 300,000 300,000 300,000 300,000 300,000 Well No. 8 Enclosure 350,000 0 350,000 0 0 0 0
10,175,000 2,325,000 2,775,000 1,700,000 1,175,000 1,600,000 600,000 Maintenance and Other Projects
Summary by Category
211
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Maintenance and Other Projects
Summary by Category
Facilities and Other Improvements
City-wide Catch Basins Rehabilitation 200,000 0 200,000 0 0 0 0 Major Facilities Maintenance 1,800,000 300,000 300,000 300,000 300,000 300,000 300,000 Marine Safety HQ & Zero Tower Relocation Study 50,000 50,000 0 0 0 0 0 Montalvo and Riviera Beach Trail Bridges 400,000 400,000 0 0 0 0 0 T-Street Overpass Rehabiliation 1,200,000 200,000 1,000,000 0 0 0 0 3,650,000 950,000 1,500,000 300,000 300,000 300,000 300,000 Total Maintenance & Other Projects 39,236,000 8,730,000 9,772,000 6,572,000 5,782,000 4,895,000 3,485,000 * Shading indicates presented projects.
212
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 General Fund
Community Center Shuffleboard Remodeling 200,000 200,000 0 0 0 0 0 Corto Lane Beach Access Rehabilitation 1,250,000 250,000 1,000,000 0 0 0 0 Del Mar Phase I Undergrounding District 2,000,000 0 0 2,000,000 0 0 0 Pier Condition Assessment and Repairs 3,500,000 0 0 300,000 3,200,000 0 0 Pier Decking Expansion Design 300,000 0 300,000 0 0 0 0 Solar Canopies for Parking Lots - Vista Hermosa and Steed Pk 1,000,000 100,000 900,000 0 0 0 0 Steed Park Pickle Ball 3,500,000 500,000 3,000,000 0 0 0 0 Trafalgar Canyon Bridge Rehabilitation 250,000 0 250,000 0 0 0 0 12,000,000 1,050,000 5,450,000 2,300,000 3,200,000 0 0
Gas Tax Fund
Arterial Street Pavement Maintenance 9,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Camino Del Rio & La Pata Extensions 95,000 95,000 0 0 0 0 0 Pavement Preservation Program Various Arterials 4,200,000 700,000 700,000 700,000 700,000 700,000 700,000 Sdwlk Imp - Ave San Luis Rey, Santa Margarita & E. Magdalena 725,000 725,000 0 0 0 0 0 Traffic Signal Conversion - Various Intersections 150,000 150,000 0 0 0 0 0 14,170,000 3,170,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Reserve Fund
Aquatic Center Pump Room Equipment Replacement 600,000 600,000 0 0 0 0 0 Aquatic Center Shade Structure Replacements 120,000 0 120,000 0 0 0 0 Beach Trail Bridge Replacement 500,000 500,000 0 0 0 0 0 Community Center Structural Repair and Upgrades 80,000 0 80,000 0 0 0 0 Corporation Yard Bldg. "J" Structural Repair and Upgrades 250,000 0 250,000 0 0 0 0 Forester Ranch Playground Equipment Replacement 300,000 0 300,000 0 0 0 0 North Beach Concessions Structural Repair and Upgrades 85,000 0 0 85,000 0 0 0 Street Light LED Conversion Phase 3 250,000 0 250,000 0 0 0 0 Talega Park Playground Equipment Replacement 250,000 0 0 250,000 0 0 0 Tierra Grande Park Playground Equipment Replacement 300,000 0 0 0 300,000 0 0 Vista Hermosa Sports Park Fields Synthetic Turf Replacement 1,200,000 0 0 0 0 1,200,000 0 3,935,000 1,100,000 1,000,000 335,000 300,000 1,200,000 0 Disaster Relief Fund
Steed Park Sports Field Lighting Replacement 500,000 500,000 0 0 0 0 0 500,000 500,000 0 0 0 0 0
Miscellaneous Grants Fund
Sidewalk Improvements / CDBG 780,000 130,000 130,000 130,000 130,000 130,000 130,000 780,000 130,000 130,000 130,000 130,000 130,000 130,000 RCFPP Fund
Avenida Pico Class I Bike/Pedestrian Path Phase I 1,600,000 0 1,600,000 0 0 0 0 Intersection Improvements: AVH & La Pata 700,000 700,000 0 0 0 0 0 Intersection Improvements: AVH & Vera Cruz 1,000,000 0 200,000 800,000 0 0 0 Intersection Improvements: PCH & Cam. Capistrano 875,000 0 175,000 700,000 0 0 0 Intersection Improvements: Pico & Amanecer 875,000 0 0 175,000 700,000 0 0 Intersection Improvements: Pico & Del Cerro 750,000 0 150,000 600,000 0 0 0 Intersection Improvements: Pico & La Pata 500,000 0 0 100,000 400,000 0 0 Pico Widening: I-5 to Frontera 850,000 0 0 850,000 0 0 0 7,150,000 700,000 2,125,000 3,225,000 1,100,000 0 0
Parks Acquisition and Development Fund
Park Master Plan Priority Projects 1,000,000 0 500,000 500,000 0 0 0 Steed Park Errant Ball Netting 70,000 70,000 0 0 0 0 0
1,070,000 70,000 500,000 500,000 0 0 0
Local Drainage Facilities
Catch Basin and SD Improvements: Pico & Frontera 450,000 100,000 350,000 0 0 0 0 Catch Basin and SD Improvements: Presidio & Miguel 600,000 600,000 0 0 0 0 0 Catch Basin and SD Improvements: Santa Maria & Coco 700,000 0 150,000 550,000 0 0 0 M00S05 Montalvo Canyon Outlet 350,000 350,000 0 0 0 0 0 Storm Drain Improvements: Marblehead Coastal 350,000 0 350,000 0 0 0 0 Storm Drain Improvements: Santa Margarita & Corta 300,000 0 300,000 0 0 0 0 Storm Drain Improvements: Solano & La Cuesta 700,000 0 0 0 150,000 550,000 0 3,450,000 1,050,000 1,150,000 550,000 150,000 550,000 0 New Capital Improvement Projects
Summary by Fund
213
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 New Capital Improvement Projects
Summary by Fund
Street Improvement Fund
Alley Pavement Rehabilitation 1,380,000 690,000 690,000 0 0 0 0 Street Improvement Projects 9,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 10,380,000 2,190,000 2,190,000 1,500,000 1,500,000 1,500,000 1,500,000 Water Depreciation Reserve
AC Pipe Replacement Northwest 308 Zone 2,250,000 250,000 0 2,000,000 0 0 0 Acapulco Pump Station Rehabilitation 2,750,000 0 250,000 0 0 2,500,000 0 Calafia Turnout Replacement 1,150,000 0 150,000 1,000,000 0 0 0 Calle Real Pump Station Rehabilitation 1,200,000 1,200,000 0 0 0 0 0 Calle Vallarta PRS 350,000 0 0 0 350,000 0 0
Cathodic Protection System Improvements 300,000 300,000 0 0 0 0 0 City-wide Copper Service Replacements 500,000 0 0 0 500,000 0 0 Costero Risco PRS Rehabilitation 400,000 0 400,000 0 0 0 0 Del Cerro PRS Rehabilitation 350,000 0 0 0 0 350,000 0
El Levante PRS Rehabilitation 350,000 0 0 350,000 0 0 0 La Pata Recycled Waterline Rehabilitation 750,000 0 0 0 0 0 750,000 La Pata, Esmarca, Patricia Check Valves 300,000 0 0 0 0 0 300,000 La Quinta PRS Rehabilitation 350,000 0 0 0 0 350,000 0
Pico/Presidio DIP Replacement (Albertsons) 900,000 150,000 750,000 0 0 0 0 Potable Water Reservoir Improvement Projects 1,500,000 0 0 0 0 0 1,500,000 Pump Station Bypass Pump Connections 100,000 0 0 0 0 100,000 0 Reata Pump Station Rehabilitation 2,800,000 0 0 0 2,800,000 0 0 Reservoir No. 5A Replacement 3,300,000 300,000 0 3,000,000 0 0 0 Reservoir No.6 Removal 100,000 0 100,000 0 0 0 0
19,700,000 2,200,000 1,650,000 6,350,000 3,650,000 3,300,000 2,550,000 Water Acreage Fee Reserve
Recycled Water Expansion Phase II 4,500,000 500,000 0 4,000,000 0 0 0 Reeves Pump Station 1,000,000 0 1,000,000 0 0 0 0
5,500,000 500,000 1,000,000 4,000,000 0 0 0
Sewer Depreciation Reserve
Cypress Shores PS Force Main Rehabilitation 1,400,000 0 0 0 0 200,000 1,200,000 Digester #2 Structural & Mechanical Rehabilitation 500,000 0 0 500,000 0 0 0 Headworks Grit Cyclone Replacement 800,000 200,000 600,000 0 0 0 0 Los Molinos Lift Station Generator Replacement 500,000 0 500,000 0 0 0 0 Primary Clarifier 1, 2 & 3 Rehabilitation 500,000 0 0 500,000 0 0 0 Secondary Clarifier 1, 2 & 3 Rehabilitation 600,000 0 0 0 0 600,000 0 Secondary Clarifier 4, 5 & 6 Rehabilitation 600,000 0 0 0 0 0 600,000 Vactor Discharge Station 100,000 0 0 100,000 0 0 0
Wastewater Collection System Access Improvements 150,000 0 150,000 0 0 0 0 WRP Boiler Replacement 300,000 300,000 0 0 0 0 0
WRP DIP Replacement 2,250,000 0 250,000 0 1,000,000 1,000,000 0 WRP Electrical System Replacements 3,050,000 300,000 1,000,000 250,000 1,500,000 0 0 WRP Odor Control Systems Replacement 6,500,000 0 0 2,000,000 0 4,500,000 0 17,250,000 800,000 2,500,000 3,350,000 2,500,000 6,300,000 1,800,000 Sewer Connection Fee Reserve
Recycled Water Quality Improvements 11,000,000 500,000 10,500,000 0 0 0 0 Sludge Dehydration System 2,280,000 0 0 220,000 2,060,000 0 0 WRP Co-Generation 4,005,000 0 0 0 400,000 3,605,000 0
17,285,000 500,000 10,500,000 220,000 2,460,000 3,605,000 0 Golf Fund
Bunker Renovations 350,000 0 0 0 350,000 0 0
Driving Range Fence Extension 300,000 300,000 0 0 0 0 0 650,000 300,000 0 0 350,000 0 0
Clean Ocean Fund
Poche System Diversion to Land Outfall 2,150,000 0 150,000 2,000,000 0 0 0 2,150,000 0 150,000 2,000,000 0 0 0
214
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 New Capital Improvement Projects
Summary by Fund
Storm Drain Utility Depreciation Reserve
E. Avenida Cordoba Drainage Study 1,700,000 0 1,700,000 0 0 0 0 Pier Bowl Drainage Study & Improvements 1,000,000 0 0 150,000 850,000 0 0 Storm Drain Improvements: Cayenta & Buena Suerte 950,000 0 0 0 150,000 800,000 0 Storm Drain Improvements: Caballeros & Patero de Oro 1,450,000 0 250,000 1,200,000 0 0 0 Storm Drain Improvements: Vaquero & Vista Torito 700,000 0 0 0 0 100,000 600,000 Storm Drain Improvements: W. Ave. Roma & S. Ola Vista 600,000 0 0 0 100,000 500,000 0 6,400,000 0 1,950,000 1,350,000 1,100,000 1,400,000 600,000 Total CIP 122,370,000 14,260,000 32,495,000 28,010,000 18,640,000 20,185,000 8,780,000 * Shading indicates presented projects.
215
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 General Fund
Avenida Victoria Sidewalk Widening 150,000 150,000 0 0 0 0 0 Base of Pier Bike Rack Area Renovation 220,000 220,000 0 0 0 0 0 Downtown Alley Lighting Replacement 70,000 0 0 0 70,000 0 0 Downtown Paseo Plan 800,000 0 0 200,000 600,000 0 0
Lifeguard Tower Replacement 500,000 100,000 100,000 100,000 100,000 100,000 0 Major Facilities Maintenance 1,800,000 300,000 300,000 300,000 300,000 300,000 300,000 Major Street Maintenance 3,300,000 550,000 550,000 550,000 550,000 550,000 550,000 Marine Safety HQ & Zero Tower Relocation Study 50,000 50,000 0 0 0 0 0 Montalvo and Riviera Beach Trail Bridges 400,000 400,000 0 0 0 0 0 Park Monument Sign Replacements 360,000 150,000 70,000 70,000 70,000 0 0 Pavement Preservation Program 1,500,000 250,000 250,000 250,000 250,000 250,000 250,000 Pier Timber Piles Replacement with Steel Piles Study 100,000 0 100,000 0 0 0 0 Pier Timber Pile Inspection 150,000 50,000 0 50,000 0 50,000 0 Pier Steel Piles Cathodic Protection Improvements 150,000 150,000 0 0 0 0 0 Sidewalk Repair & Improvements 900,000 150,000 150,000 150,000 150,000 150,000 150,000 Steed Park Sewer Lateral Replacement 180,000 180,000 0 0 0 0 0 Storm Drain Manhole Rehabilitation 100,000 0 100,000 0 0 0 0 T-Street Overpass Rehabilitaion 1,200,000 200,000 1,000,000 0 0 0 0 11,930,000 2,900,000 2,620,000 1,670,000 2,090,000 1,400,000 1,250,000 Gas Tax Fund
As Needed Sidealk Repair and Improvements 550,000 550,000 0 0 0 0 0 Street Sign Replacement Program 600,000 100,000 100,000 100,000 100,000 100,000 100,000 1,150,000 650,000 100,000 100,000 100,000 100,000 100,000 Air Quality Fund
Traffic Calming Program 480,000 80,000 80,000 80,000 80,000 80,000 80,000 480,000 80,000 80,000 80,000 80,000 80,000 80,000
Street Improvement Fund
As Needed Pavement Repairs 1,800,000 300,000 300,000 300,000 300,000 300,000 300,000 City-wide Catch Basins Rehabilitation 200,000 0 200,000 0 0 0 0 Pavement Management System Update 150,000 50,000 0 50,000 0 50,000 0 Sewer System Replacement - Pavement 600,000 100,000 100,000 100,000 100,000 100,000 100,000 Street Improvement Design 450,000 75,000 75,000 75,000 75,000 75,000 75,000 Water System Replacement - Pavement 600,000 100,000 100,000 100,000 100,000 100,000 100,000 3,800,000 625,000 775,000 625,000 575,000 625,000 575,000 Water Depreciation Reserve
Dead End Water System Improvements 100,000 50,000 50,000 0 0 0 0 Meter Replacements 1,200,000 100,000 100,000 100,000 300,000 300,000 300,000 Pump Station and Reservoir Pavement Rehabilitation 400,000 0 200,000 200,000 0 0 0 Recycled Water Storage Bay Rehabilitation 500,000 0 500,000 0 0 0 0 Reservoir 5A Interior Coating Replacement 500,000 0 0 500,000 0 0 0 Reservoir No. 12 Site Improvements 200,000 200,000 0 0 0 0 0 Reservoir No. 4 Exterior Coating 250,000 50,000 200,000 0 0 0 0 Sodium Hypochlorite Tank Replacement 350,000 350,000 0 0 0 0 0 Water Asset Management Study 50,000 0 50,000 0 0 0 0
Water System Air-Vac Replacement Program 75,000 25,000 25,000 0 25,000 0 0 Water System Rehabilitation 1,750,000 250,000 300,000 300,000 300,000 300,000 300,000 Well No. 8 Enclosure 350,000 0 350,000 0 0 0 0
5,725,000 1,025,000 1,775,000 1,100,000 625,000 600,000 600,000 Water Other Agency Reserve Fund
JRWSS Agency Projects 4,450,000 1,300,000 1,000,000 600,000 550,000 1,000,000 0 4,450,000 1,300,000 1,000,000 600,000 550,000 1,000,000 0 Sewer Depreciation Reserve
Centrifuge Conveyor Improvements 300,000 300,000 0 0 0 0 0 Digester #2 Cleaning Residual Disposal & Inspection 100,000 100,000 0 0 0 0 0 Los Molinos Wet Well Lining 800,000 0 200,000 600,000 0 0 0 Main Pump Station Forcemain Valve Replacement 500,000 500,000 0 0 0 0 0 Sewer Asset Management 50,000 0 0 50,000 0 0 0
Sewer System Lining 1,500,000 250,000 250,000 250,000 250,000 250,000 250,000 Sewer System Rehabilitation 1,600,000 250,000 250,000 250,000 250,000 300,000 300,000 Summary by Fund
Maintenance and Other Projects
216
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Summary by Fund
Maintenance and Other Projects
WRP and Sewer Facility Pavement Rehabilitation 200,000 0 0 0 200,000 0 0 WRP Sluice Gate Replacements 500,000 500,000 0 0 0 0 0
5,550,000 1,900,000 700,000 1,150,000 700,000 550,000 550,000 Sewer Connection Fee Reserve
WRP Efficiency Study 1,500,000 0 1,500,000 0 0 0 0
1,500,000 0 1,500,000 0 0 0 0
Sewer Other Agency Reserve
San Juan Creek Ocean Outfall Assessment 320,000 50,000 0 25,000 90,000 25,000 130,000 320,000 50,000 0 25,000 90,000 25,000 130,000
Clean Ocean Fund
Storm Drain Trash Capture Devices Throughout City 1,881,000 0 522,000 522,000 522,000 315,000 0 1,881,000 0 522,000 522,000 522,000 315,000 0
Storm Drain Utility Fund
City-wide Catch Basins Rehabilitation 200,000 0 200,000 0 0 0 0 City-wide Culverts Structural Assessment 950,000 0 200,000 500,000 250,000 0 0 Storm Drain Manhole Rehabilitation 100,000 0 100,000 0 0 0 0 Storm Drain Rehabilitation 1,200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,450,000 200,000 700,000 700,000 450,000 200,000 200,000 Total Maintenance & Other Projects 39,236,000 8,730,000 9,772,000 6,572,000 5,782,000 4,895,000 3,485,000 * Shading indicates presented projects.
217
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 General Fund 10,775,000 825,000 4,450,000 2,300,000 3,200,000 0 0 Other Funds
Clean Ocean Fund 2,150,000 0 150,000 2,000,000 0 0 0
Disaster Relief Fund 500,000 500,000 0 0 0 0 0
Reserve Fund 3,935,000 1,100,000 1,000,000 335,000 300,000 1,200,000 0 Gas Tax Fund 14,170,000 3,170,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Golf Capital Improvement Reserve 650,000 300,000 0 0 350,000 0 0 Local Drainage Facilities Fund 3,450,000 1,050,000 1,150,000 550,000 150,000 550,000 0 Parks Acquisition & Development Fund 2,070,000 70,000 1,500,000 500,000 0 0 0 RCFPP Fund 7,150,000 700,000 2,125,000 3,225,000 1,100,000 0 0 Sewer Connection Reserve 7,785,000 500,000 1,000,000 220,000 2,460,000 3,605,000 0 Sewer Depreciation Reserve 17,250,000 800,000 2,500,000 3,350,000 2,500,000 6,300,000 1,800,000 Storm Drain Deprec. Reserve Fund 6,400,000 0 1,950,000 1,350,000 1,100,000 1,400,000 600,000 Street Improvement Fund 10,380,000 2,190,000 2,190,000 1,500,000 1,500,000 1,500,000 1,500,000 Water Depreciation Reserve 19,700,000 2,200,000 1,650,000 6,350,000 3,650,000 3,300,000 2,550,000 Water Acreage Fee Reserve 5,500,000 500,000 1,000,000 4,000,000 0 0 0 Total Other Funds 101,090,000 13,080,000 18,415,000 25,580,000 15,310,000 20,055,000 8,650,000 Grants
Coastal Conservancy 200,000 200,000 0 0 0 0 0
Sewer Grants 2,400,000 0 2,400,000 0 0 0 0
CDBG Grant 780,000 130,000 130,000 130,000 130,000 130,000 130,000 Total Grants 3,380,000 330,000 2,530,000 130,000 130,000 130,000 130,000 Debt Proceeds
SRF Loan 5,100,000 0 5,100,000 0 0 0 0
Total Debt Proceeds 5,100,000 0 5,100,000 0 0 0 0
Other Revenues
SMWD 2,000,000 0 2,000,000 0 0 0 0
Non-profit donations 25,000 25,000 0 0 0 0 0
Total Donations 2,025,000 25,000 2,000,000 0 0 0 0
Total Funding 122,370,000 14,260,000 32,495,000 28,010,000 18,640,000 20,185,000 8,780,000 New Capital Improvement Projects
Revenue Summary
218
Description 6 Yr. Total FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 General Fund 11,930,000 2,900,000 2,620,000 1,670,000 2,090,000 1,400,000 1,250,000 Other Funds
Clean Ocean Fund 1,881,000 0 522,000 522,000 522,000 315,000 0 Gas Tax Fund 1,150,000 650,000 100,000 100,000 100,000 100,000 100,000 Air Quality Management Fund 480,000 80,000 80,000 80,000 80,000 80,000 80,000 Sewer Connection Fee Reserve 1,500,000 0 1,500,000 0 0 0 0 Sewer Depreciation Reserve 5,550,000 1,900,000 700,000 1,150,000 700,000 550,000 550,000 Sewer Other Agency Reserve 320,000 50,000 0 25,000 90,000 25,000 130,000 Street Improvement Fund 3,800,000 625,000 775,000 625,000 575,000 625,000 575,000 Storm Drain Deprec. Reserve Fund 2,450,000 200,000 700,000 700,000 450,000 200,000 200,000 Water Depreciation Reserve 5,725,000 1,025,000 1,775,000 1,100,000 625,000 600,000 600,000 Water Other Agency Reserve 4,450,000 1,300,000 1,000,000 600,000 550,000 1,000,000 0 Total Other Funds 27,306,000 5,830,000 7,152,000 4,902,000 3,692,000 3,495,000 2,235,000 Total Funding 39,236,000 8,730,000 9,772,000 6,572,000 5,782,000 4,895,000 3,485,000 Maintenance and Other Projects
Revenue Summary
219
Capital Improvement Program
Drainage
Drainage Master Plan
The Drainage master plan was originally developed in
1982. The master plan was developed to:
x Evaluate existing facilities and conditions
x Identify and integrate future drainage
facilities required for development in the
City
x Determine the cost of future facilities and
improvements to existing facilities
x Determine funding mechanisms for new
construction and improvements
The original report identified deficiencies in existing drainage facilities amounting to $1.2 million (in 1982
dollars) and new construction for the development of
undeveloped land amounting to $23.3 million (in
1982 dollars).
The City’s 1993 Long Term Financial Plan identified
$2.5 million in unfunded storm drain repair and
replacement projects with no funding source in place
to address the needs. Therefore, the Storm Drain
fund and fee was established to meet the identified
needs. In addition to the Storm Drain fee the Clean
Water Initiative was approved in 2002 by property
owners which funded the Urban Runoff Management
Fee Program. The Clean Water Initiative was
renewed in 2007 and again in 2013. This program
was established to help the City prevent urban runoff
that flows from the City’s storm drain system into the
ocean.
The City appropriated funds in FY 2013-14 to update
the City’s Drainage Master Plan. The Drainage Master
Plan update has been completed and after final
review by the City Attorney’s office and the City
Manager will be presented to City Council.
Drainage Funds
The following funds account for drainage activities
and capital improvements:
x Storm Drain Operating Fund
x Storm Drain Depreciation Reserve
x Clean Ocean Fund
Drainage Projects
The FY 2022-23 budget includes 3 capital
improvement projects for $1.1 million and 1
maintenance project in the amount of $200,000.
Capital improvement projects in FY 2022-23 are:
x Catch Basin and Storm Drain Improvements:
Pico & Frontera
x Catch Basin and Storm Drain Improvements:
Presidio & Miguel
x MOOSO5 Montalvo Canyon Outlet
Maintenance and other projects in FY 2022-23 are:
x Storm Drain Rehabilitation
Individual project sheets for both capital
improvement projects and maintenance projects are
on the following pages.
Funding Sources
Drainage capital projects are primarily funded
through multiple funding sources, including transfers
from the Storm Drain and utilizing Clean Ocean funds,
annual depreciation transfers to Depreciation
Reserves, and capital grants. Individual project sheets identify the primary source of funding for each
project and the operating impact.
The City does not anticipate a lack of funding in the
near future, but has determined the following
alternatives may be used to finance projects:
x Issuance of debt (bond, notes, advances from
other funds)
x Rate increases or additional fees
x Other grant funding sources
x Funding from an alternative City fund
x Reallocation of funds from existing projects
220
City of San Clemente Capital Project
Project No. TBD
Lead Dept./Division
Supporting Division
Staff Contact
Target Completion
General Plan Policy PSFUͲ6.01
(Please refer to the General Plan for policy code descriptions) Project Description:
Operating Budget Impact: None
Estimated Costs and Funding Sources:
FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Land/Right of Way $Ͳ
$100,000 $100,000
$350,000 $350,000
$100,000 $ Ͳ 350,000 $ Ͳ $ Ͳ $ Ͳ $ $450,000 FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Local Drainage Facilites $100,000 $350,000 $450,000 $Ͳ
$Ͳ
TOTAL FUNDING $100,000 $350,000 $ Ͳ Ͳ $ Ͳ $ Ͳ $ $450,000 Preliminary Engineering
Construction
TOTAL ESTIMATE
Funding Source(s)
949Ͳ361Ͳ6140
Spring of 2023
Catch basin and storm drain improvements are needed at the northwesterly side of the Avenida Pico and Calle Frontera intersection to increase the drainage capacity in this area. $100,000 is proposed for design in FY 2023 and $350,000 for construction in FY 2024.
Project Estimate
Senior Civil Engineer
Drainage
Catch Basins and Storm Drain Improvements at
Intersection of Avenida Pico and Calle Frontera
Public Works/Engineering
Amir Ilkhanipour
221
City of San Clemente Capital Project
Project No. 12003
Lead Dept./Division
Supporting Division
Staff Contact
Target Completion
General Plan Policy PSFUͲ6.01
(Please refer to the General Plan for policy code descriptions) Project Description:
Operating Budget Impact: None
Estimated Costs and Funding Sources:
FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Land/Right of Way $Ͳ
$Ͳ
$600,000 $600,000
$ Ͳ 600,000 $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ $600,000 FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Local Drainage Facilities $600,000 $600,000 $Ͳ
$Ͳ
TOTAL FUNDING $ Ͳ 600,000 $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ $600,000 Preliminary Engineering
Construction
TOTAL ESTIMATE
Funding Source(s)
949Ͳ361Ͳ6140
Spring of 2024
Catch basin and storm drain improvements are needed at the intersection of Avenida Presidio and Calle Miguel to increase the drainage capacity in this area. $150,000 was budgeted for design in FY 2022 and $600,000 is currently budgeted for construction in FY 2023.
Project Estimate
Senior Civil Engineer
Drainage
Catch Basin and Storm Drain Improvements at Intersection of Avenida Presidio and Calle Miguel
Public Works/Engineering
Utilities
Amir Ilkhanipour
222
City of San Clemente Capital Project
Project No. 1 00
Lead Dept./Division Public Works/Engineering
Supporting Division
Staff Contact Amir Ilkhanipour
Senior Civil Engineer
949Ͳ361Ͳ6140
Target Completion
General Plan Policy
(Please refer to the General Plan for policy code descriptions) Project Description:
Operating Budget Impact: None
Estimated Costs and Funding Sources:
FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Land/Right of Way $Ͳ
$Ͳ
$350,000 $350,000
$ Ͳ 350,000 $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ $350,000 FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Local Drainage Facilities $350,000 $350,000 $Ͳ
$Ͳ
TOTAL FUNDING $ Ͳ 350,000 $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ $350,000 Drainage
M00S05ͲMontalvo Canyon Outlet
Preliminary Engineering
Construction
TOTAL ESTIMATE
Funding Source(s)
Summer of 2023
PSFUͲ6.01
This project consists of hydrologic and hydraulic studies, final design, environmental processing and permitting for the needed improvements to the reach of Montalvo Canyon natural waterway, in the proximity of the ocean outlet. Army Corps of Engineers, Fish & Game and Coastal Commission permits need to be secured prior to construction. $350,000 is budgeted in FY 2023 for construction, permitting and required mitigation costs. Project Estimate
223
City of San Clemente Maintenance Project
Storm Drain Rehabilitation FY 2023 Project No.
Lead Dept./Division
Supporting Division
Staff Contact
Target Completion
General Plan Policy PSFUͲ6.01
(Please refer to the General Plan for policy code descriptions) Project Description:
Operating Budget Impact: None
Estimated Costs and Funding Sources:
FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Land/Right of Way $Ͳ
$Ͳ
$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000 FY 2022Ͳ23
Budget
FY 2023Ͳ24
Forecast
FY 2024Ͳ25
Forecast
FY 2025Ͳ26
Forecast
FY 2026Ͳ27
Forecast
FY 2027Ͳ28
Forecast Total
Storm Drain Dep. Reserve $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000 $Ͳ
$Ͳ
TOTAL FUNDING $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,200,000 Assistant Utilities Manager
Drainage
Public Works/Engineering
Kevin Lussier
Utilities
Preliminary Engineering
Construction