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VI. FALSE ALARMS
First alarm starting each fiscal year (7/1/21) One Free 2nd & over Each $117.00
VII. Each As determined by the County
VIII. OFFICER RESPONSE
A. Per Hour $97.00
B. Per Hour $97.00
Per Officer (one (1) hour min.)
C.
See “SPECIAL COMMUNITY EVENTS PERMIT” Section
D. Each $275.00
(per CA Government Code
68097.2)
IX. VEHICLE RELEASES
A. IMPOUNDED/STORED VEHICLE Each $21.00
X. One $120.00
Additional $78.00
XI. OUTSIDE DETAIL RATES 3, 4
Police Officer Per Hour $118.67
Police Sergeant Per Hour $142.37
Community Service Officer Per Hour $71.83
Police Reserve Officer Per Hour $93.09
Police Vehicle Abatement Officer Per Hour $57.05
Contracted Parking Enforcement Officer Per Hour $46.31
Police Officer Per Hour $148.34
Police Sergeant Per Hour $177.97
Community Service Officer Per Hour $89.79
Police Reserve Officer Per Hour $116.36
Police Vehicle Abatement Officer Per Hour $71.31
Contracted Parking Enforcement Officer Per Hour $57.89
Police Department Footnotes:
1 Plus prevailing State, Federal and County Fees for fingerprinting of applicants that are at the following costs:
DOJ Prevailing Fee $32.00
FBI Prevailing Fee $17.00
County Prevailing Fee $5.00
$54.00
2 3
4 In the event the Police Department must augment staffing of an outside detail with personnel from an allied agency, the outside detail rate charged shall be commensurate to the actual rate which is charged by that agency, which may be higher/lower than the rate listed.
The rates charged for Outside Detail may be updated during the Fiscal Year to reflect negotiated salary increases and ensure full cost recovery.
Category B: Fund raising events organized, conducted and sponsored by registered non- profit organizations.
Category C: Events sponsored by for-profit business or non-tax-exempt ii
The fee will include up to two re-inspections at no additional cost. Additional inspections will be billed at 50% of the original cost.
OUTSIDE DETAIL
CIVIL SUBPOENA WITNESS FEE DEPOSIT (Governed by State Law).
Actual costs will be charged
(excluding vehicles towed exclusively under the authority of VC 22651(c), (g), (k), (o), (i.)(l), or VC 226.55.5).
Category A: City organized, conducted, sponsored, or co-sponsored events, or non- profit sponsored events that benefit city programs.
DESCRIPTION OF SERVICES FEE
BOOKING FEE (UPON CONVICTION) STATE LAW SECTION 29550.1.
EMERGENCY RESPONSE TO DRIVING UNDER THE INFLUENCE
(DUI) upon conviction (Gov't Code Section 53150-58)
DISTURBANCE SERVICE FEE
(loud parties, barking dogs, etc.)
STORAGE OF FIREARM
(Includes safekeeping)
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$79.00/ $10.00 w/POC
$47.00/ $10.00 w/POC
$47.00/ $10.00 w/POC
$43.00
$47.00
$43.00
$47.00
$47.00
$47.00
$47.00
$43.00
$47.00
$43.00
$47.00
$47.00
$347.00
$43.00
$347.00
$47.00
$47.00
$58.00
$47.00
$347.00
$149.00
$149.00
$47.00
$47.00
$47.00
$47.00
$47.00
$43.00
$43.00
$43.00
$43.00
$43.00
$43.00
$43.00
$47.00
$43.00
$43.00
$43.00
$43.00
$43.00
Overtime in meter zone/feeding meter $43.00
$43.00
$43.00
$43.00
$47.00
11.48.070 Parking in bus zone (curb marked)
17.08.20 Boat or other object parked on public right-of-way
11.44.150 Meter violation
11.44.160
11.44.165 Repeat violations for overtime parking (2nd violation-same day, same place)
11.48.030 Parking in alley
11.40.110 Parked on private property w/o consent
11.44.090 Parked in front of a hooded meter
11.44.130 Parking over lines
11.40.060 Curb wheels/set brake on hill
11.40.070 Parking so as to obstruct traffic
11.40.100 Violation of emergency signs posted
11.40.040(a) Restricted parking on City street (posted) (No residential parking permit)
11.40.040(b) Restricted parking on City lot (posted) i.e., City Hall, Rec Centers, Library, etc.
11.40.055 Street sweeping
11.36.010(1) Parallel parking in angle slot
11.36.020 Angle parking (right front tire not within 18” of curb)
11.40.040(a) Restricted parking on City street (posted)
11.32.070 Red, yellow, etc., curb markings
11.32.100 Commercial vehicle on residential street, 10,000 lbs. GVW
11.32.105 Oversized vehicle/trailer parked on residential street 22523(b) Abandon vehicle-public/private property
11.32.030 Truck parked on City street (may be used for limos, small shuttle buses, and small school buses)
11.32.040 Parked on parkway (Planting strip)
22521 Parking within 7 ½ feet of train tracks
22522 Blocking disabled ramp
22523(a) Abandoned vehicle- any highway
22514 Blocking fire hydrant
22515(a) Parked with engine running and/or parking brake not set 22516 Person locked in vehicle
22500(l) Blocking wheelchair access to sidewalk
22502(a) Not within 18” of the curb
22507.8 Handicapped parking
22500(h) Double parking
22500(i) Parking within bus zone
22500(k) Parking upon any bridge
22500(e) Blocking any driveway
22500(f) Parking on a sidewalk
22500(g) Obstructing traffic by parking near excavation 22500(b) Parking within a crosswalk
22500(c) Parking within a safety zone
22500(d) Parking within 15 ft. of fire station driveway 21113 Parking on public grounds-no permit
22500.1 Fire lane
22500(a) Parking within an intersection
PARKING PENALTY SCHEDULE
Only one violation per citation
4000(a) Expired registration (make sure you check the POC box) 5200 License plates failure to display (make sure you check the POC box) 5204 Tabs (make sure you check the POC box)
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I. PARKING FEES
A. TEMPORARY NO PARKING METERS (1)
Up to 7 days Per Day/Per Meter $12.85
8 – 49 days Per Wk./Per Meter $77.10
50 – 98 days Per Wk./Per Meter $154.20
99+ days Per Wk./Per Meter $308.40
Per Installation $79.16
B. TEMPORARY "NO PARKING" SIGNS Each $4.00
C. DOWNTOWN PARKING FEE PARKING PASSES
2nd and El Camino Real Monthly $66.82
Central Parking Monthly $102.80
Tennis Court Garage Monthly $66.82
Main Street Garage Monthly $102.80
Transit Center Monthly $66.82
Kiku Downtown Public Garage Monthly $66.82
Railroad Avenue between 5th to 9th Monthly $41.12
Low-Income Parking Permit Monthly $41.12
D. ON-STREET AND OFF-STREET RATES (per SMMC 11.40.010)
($0.50 minimum for credit cards at pay stations) Time Limit:
Premium On-Street Space 3 Hours/per Hour $1.54
Premium Off-Street Facilities 3 Hours/Per Hour $1.29
Premium Off-Street Facilities No Limit $1.29
(Central Garage – Lots 4, 5, 6), Main Street Garage
Value On-Street Spaces 3 Hours/Per Hour $1.03
Value Off-Street Facilities 3 Hours/Per Hour $0.77
Value Off-Street Facilities No Limit $0.77
No Limit $0.26
E. VALET PARKING PERMIT FEE
Permit Fee Per Permit $491.38
Implementation/Replacement Costs:
Curb Marking Each Location $87.38
Signs Per Sign $144.95
Meter Pole/Bracket Per Pole/Bracket $41.12
F. Annually Per Space Per Day $1.03
G. PUBLIC EV CHARGING STATION Per kW/h $0.27
NOTES:
I. PARKING FEES
D.
PUBLIC WORKS
DESCRIPTION OF SERVICES
For each time the City installs and removes a meter bag. (Main Street Garage – Lot 1, Second and ECR Garage – Lot 2, Tennis Court Garage – Lot 3, 5th and B Lot – Lot 7, 4th and Railroad Lot – Lot 8, Transit Center – Lot 9, 5th to 9th Ave on S. Railroad Ave), Kinko’s Lot – Lot 10, and Worker’s Resource Lot – Lot 11
USE OF PUBLIC PARKING SPACES FOR VALET STATIONS
Beginning 7/1/2023, the credit card Merchant Service Provider will begin charging a credit card transaction fee. This fee applies to all transactions completed with a credit card.
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II. ENCROACHMENT PERMITS (see Encroachment Permit Notes (II)) A. FLAT FEE ENCROACHMENT PERMITS
1. Minor Encroachment (Driveway/Sidewalk/Curb/Gutter Replacement) Each $695.00 This fee is waived if the applicant was notified by the City to repair sidewalk tripping hazards.
2. Each $833.00
3. Temporary Encroachment (Dumpsters, scaffolding, potholing, excavation, etc.) Each $551.00
4. Temporary Rental Storage Container (Pods, etc.) Each $229.00
5. Traffic Control Only Each $369.00
6. Outdoor Dinning Permit
a. Outdoor Furnishings (Sidewalks and Ped Mall)
i. Permit Application Fee Each $419.64
ii. Annual Renewal Fee Each $419.64
b. Parklets (Citywide and Ped Mall)
i. Permit Application Fee Each $544.84
ii. Annual Renewal Fee Per Parking Stall Occupied $272.42
7. Dock Permit
a. Construction, Maintenance, or Demo Each $4,608.00
b. Annual Fee Per Dock $67.00
8. Banner Permit
a. Central Garage Banner Per Request $953.00
b. Street Light Bannger Per 5 Poles $370.00
9. Utility Permit
a. Standard Utility Base Fee Each $1,932.00
b. Additional Fee for Excavation (up to 250-sq.ft.) Each $827.00 B. MAJOR ENCROACHMENT PERMITS
1. Plan Review Fees
$0 - $50K ROW Construction Costs Base $865.00
$50K - $100K ROW Construction Costs Base $865.00
Each additional dollar above $50K % of costs above $50K 12.01% $100K - $500K ROW Construction Costs Base $6,872.00
Each additional dollar above $100K % of costs above $100K 3.18% $500K - $1M ROW Construction Costs Base $19,730.00
Each additional dollar above $500K % of costs above $500K 2.20% $1M+ ROW Construction Costs Base $30,742.00
Each additional dollar above $1M % of costs above $1M 1.10% Additional Review Cycles (4th and beyond) or Revisions Per Occurance $1,329.00
2. Permit and Inspection Fees
$0 - $50K ROW Construction Costs Base $2,661.00
$50K - $100K ROW Construction Costs Base $2,661.00
Each additional dollar above $50K % of costs above $50K 9.14% $100K - $500K ROW Construction Costs Base $7,232.00
Each additional dollar above $100K % of costs above $100K 4.06% $500K - $1M ROW Construction Costs Base $23,467.00
Each additional dollar above $500K % of costs above $500K 1.97% $1M+ ROW Construction Costs Base $33,321.00
Each additional dollar above $1M % of costs above $1M 0.99% Additional Inspections over Allotment Per Inspection $353.00 C. PERMIT MODIFCATION
1. Rider / Scope Change Each $229.00
2. Time Extension Each $45.52
D. SECURITY BOND OR DEPOSIT
1. Minor Encroachment Permits Deposit $2,500.00
2. Sewer Lateral Permits Deposit $2,000.00
3. Temporary Permits Deposit $1,000.00
4. Dock Permits Deposit $1,000.00
5. Street Light Banner Permits Deposit $500.00
6. Major Encroachment Permits Minimum Deposit $10,000.00
DESCRIPTION OF SERVICES
Sewer Lateral
Utility permit scopes that exceed 250 square feet or $50,000 in valuation shall instead apply for a Major Encroachment permit.
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III. GRADING PERMITS
A. SITE DEVELOPMENTS PERMIT FEE
0 - 1,000 cubic yards of earthwork activity Base $2,725.00 Per 25 cubic yards above 0 Per 25 cubic yards $50.98
1,000 - 10,000 cubic yards of earthwork activity Base $4,764.00 Per 25 cubic yards above 1,000 Per 25 cubic yards $10.82 10,000 cubic yards or greater of earthwork activity Base $8,660.00 Per 25 cubic yards above 10,000 Per 25 cubic yards $5.41 B. STORMWATER POLLUTION PREVENTION PERMIT (STOPPP)
1. STOPPP Permit Fee
a. STOPPP Type I Projects Each No Fee
b. STOPPP Type II Projects Each $522.00
c. STOPPP Type III Projects Each $1,440.00
d. STOPPP Type IV Projects Each $2,060.00
2. Erosion Control Compliance Deposit
For STOPPP Type II Projects greater than 50CY or Type III & IV Projects any size. a. Minimum Deposit Minimum Deposit $397.00
b. Additional Deposit Per 100 cubic yards $58.00
C. GRADING SECURITY BOND OR DEPOSIT
1. Minimum Deposit Minimum Deposit $10,000.00
2. Additional Deposit above 250 cubic yards Per cubic yard $40.00 IV. MAPPING AND AGREEMENTS
A. PARCEL MAPS Per Map $8,014.00
B. FINAL MAPS & CONDO CONVERSIONS Per Map $10,128.00
C. LOT LINE ADJUSTMENT (CERTIFICATE) Each $4,041.00
D. LOT CONFORMANCE (CERTIFICATE) Each $3,329.00
E. MAP CORRECTION (CERTIFICATE) Each $3,458.00
F. RIGHT-OF-WAY/PUBLIC EASEMENT (NOT PART OF A MAP) Each $6,316.00 G. ADDITIONAL MAPPING REVIEWS (4TH REVIEW AND BEYOND) Each $1,189.00 H. ENGINEERING AGREEMENTS (SIA, E&M, STORMWATER, ETC) Each $4,065.00
DESCRIPTION OF SERVICES
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V. ENVIRONMENTAL COMPLIANCE FEES
A. CLASS A WASTE DISCHARGE PERMIT ANNUAL FEE Each $1,167.00 B. CLASS B WASTE DISCHARGE PERMIT ANNUAL FEE Each $778.00 C. STORMWATER MANAGEMENT PERMIT ANNUAL FEE Each $707.00 D. POLLUTION PREVENTION INSPECTION FEE Per Hour $244.00 E. INSPECTION/INVESTIGATION FEE Per Hour $253.00
Per Hour OT $294.00
F. SAMPLING FEE Per Hour $260.00
Per Hour OT $305.00
G. ANALYTICAL SERVICES FEE Each $246.00
H. HYDRAULIC LOADING CHARGE Per 100 Cu. Ft. Basic Sewer Service Charge rate
I. DEFICIENCY RESULTING IN “SIGNIFICANT NONCOMPLIANCE” Each $485.00 J. FAILURE TO CONDUCT SELF-MONITORING Per Hour $246.00
K. Each $449.00
L. ENVIRONMENTAL CLEANUP/ABATEMENT OF PUBLIC NUISANCE
1. Labor Per Hour $257.00
Per Hour OT $300.00
2. Material And Equipment Each Cost
3. Contract Services Each Cost
M. APPEAL - of decision to issue permit, levy fees, or finding of noncompliance Each Appeal $565.00 N. Each Case $5,523.00
DESCRIPTION OF SERVICES
FAILURE TO COMPLY WITH OFFICIAL NOTICE TO CORRECT VIOLATION
VIOLATIONS REQUIRING INSPECTION WARRANT, OR COMMENCEMENT OF CIVIL
LITIGATION PROCEEDINGS
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NOTES:
V. ENVIRONMENTAL COMPLIANCE FEES
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N. Violations Requiring Inspection Warrant or Commencement of Civil Litigation Proceedings. In the event that the user refuses t he Director entry to the premises, inspection may be made only upon the issuance of a search warrant by a duly authorized magistrate. In the event that the user refuses entry after the request has been made, the Director is hereby empowered to seek assistance from the court in obtaining such entry; Any person who has violated or continues to violate the provisions of this Chapter or any order or permit issued hereunder, shall be subject to the imposition of civil penalties pursuant to Chapter 1.11 of this Code. (7.38.350, 7.39.140, 7.38.410, 7.39.200,
7.38.480, 7.39.290)
Appeal of Decision to Issue Permit, Levy fees, or Finding of Noncompliance. Any person affected by any decision, action or determination, including administrative remedies, made in interpreting or implementing the provisions of this Chapter may appeal therefrom to the City of San Mateo Sustainability & Infrastructure Commission. (7.39.200). Fee is refunded if appellant prevails.
Environmental Cleanup/Abatement of Public Nuisance. City may impose a charge upon the user to reimburse the City or District for the cost of cleaning and/or repair of City facilities, including mitigation of waste discharge to the storm drainage system; any condition caused or permitted to exist in violation of any of the provisions of this Chapter is a threat to the public health, safety and welfare, and is declared and deemed a nuisance., and may be summarily abated and/or restored by the City. The cost of such abatement and restoration shall be borne by the owner of the property. (7.38.180, 7.38.470, 7.39.280).
Class B Discharge Permit. A Class B permit shall be issued, at the discretion of the Director, to any user who is not a significant industrial user, yet requires periodic inspection and/or monitoring to verify compliance with this Chapter. A Class B permit may be required for discharge of industrial waste from stationary sources, trucked wastes, contaminated groundwater, and other industrial wastes approved by the Director for discharge to the sanitary sewer. (7.38.260). Cost based on 1.5 hours admin and inspection time per year at standard labor rate.
Class A Discharge Permit. A Class A permit shall be issued to all significant industrial users (SIU). Class A permit holders are regulated in accordance with the requirements specified in the pretreatment regulations, 40 CFR Part 403 and 40 CFR Chapter I, Subchapter N, Parts 405-471, as amended, and this Chapter. (7.38.260) Cost based on 4 hours admin and inspection time per year at standard labor rate.
Inspection/Investigation Fee. Applies to inspection and investigation activities not covered in D. or K. Cost based on standard labor rate.
Sampling Fee. The Director shall have the right to establish on any property such devices as are necessary to conduct sampling or metering operations. During all inspections as provided herein, the official may take any samples deemed necessary to aid in the pursuit of the inquiry or in the recording of activities on the site. (7.38.350, 7.39.140). Cost based standard labor rate.
Failure to Comply with Official Notice to Correct Violation. When an authorized enforcement official finds that a user has violated or is violating this Chapter, or a permit or order issued hereunder, the official may serve upon said user a Notice of Violation which enumerates the violations found, and orders compliance by a date certain. (7.38.460, 7.39.270); any condition caused or permitted to exist in violation of any of the provisions of this Chapter is a threat to the public health, safety and welfare, and is declared and deemed a nuisance. (7.38.470, 7.39.280) Failure to Conduct Self-monitoring. The Director may require that the user conduct a sampling and analysis program of the user’s waste or stormwater discharge of a frequency and type required by the Director to demonstrate compliance with the requirements of this Chapter. (7.38.360, 7.39.160).
Deficiency Resulting in “Significant Noncompliance”. At least annually, the Director shall provide public notice in the largest local daily newspaper a list of those significant industrial users that, during the previous twelve (12) months, were found in significant noncompliance, as defined in the pretreatment regulations and this Chapter. (7.38.420). Cost based on administrative time and cost of publication for 3 days in San Mateo County Times.
The following fees are intended to help recover the cost of implementation and enforcement of SMMC Chapter 7.38 Hydraulic Loading Charge. The Director may impose upon the user a hydraulic loading charge for discharge of groundwater or other waters in cases where conventional sewer service charges applied by the City or District do not account for said flows or uses. User discharges which exceed 10,000 gallons per batch discharge or users undertaking long term discharges of groundwater to the sanitary sewer shall be metered and levied a hydraulic loading charge based upon the basic sewer service charge rate. (7.38.260)
Stormwater Management Permit. A property that is required to install, operate, and maintain stormwater treatment facilities, or maintain parking lots, storm drain inlets, or other facilities for stormwater pollution prevention as specified in project conditions, shall obtain a Stormwater Management (SWM) permit from the Director of Public Works. (7.39.235). Cost based on 2 hours admin and inspection time per year at standard labor rate.
Analytical Services Fee. Cost based in service provider cost of service.
Pollution Prevention Inspection Fee. The Director is authorized to conduct all inspection, surveillance, and monitoring procedures necessary to assure compliance with this Chapter. The Director may enter without unreasonable delay, during facility hours of operation, any premises of any user in which a potential pollutant discharge source exists or in which facility discharge and materials and waste records are kept. Records shall be made available to the Director for inspection and copying. Reasonable times for inspection and sampling may include times that are unannounced. (7.38.350, 7.39.140) Cost based on 0.5- hour admin and inspection time per year at standard labor rate.
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VI. DEVELOPMENT IMPACT FEES (subject to annual review)
A. WASTEWATER CAPACITY CHARGE
a. Per Dwelling Unit $11,866.37
b.
Per Dwelling Unit $5,932.59
Per Dwelling Unit $9,888.45
Per Dwelling Unit $11,866.37
c. Per Room/Apartment $5,932.59
d. Per Bedroom $5,932.59
e. Per Square Foot $5.93
a.
Per Meter $11,866.37
Per Meter $12,710.84
Per Meter $13,999.45
b.
Per Meter $19,776.89
Per Meter $21,183.94
Per Meter $23,332.42
c.
Per Meter $39,553.78
Per Meter $42,369.07
Per Meter $46,664.84
d.
Per Meter $63,285.34
Per Meter $67,789.56
Per Meter $74,663.74
e.
Per Meter $118,660.16
Per Meter $127,106.02
Per Meter $139,993.33
f.
Per Meter $197,766.53
Per Meter $211,842.97
Per Meter $233,323.01
g.
Per Meter $395,533.07
Per Meter $423,687.12
Per Meter $466,646.02
h.
Per Meter $632,852.20
Per Meter $677,899.16
Per Meter $746,633.86
a. Per Gallon Per Day $91.85
b. Per Pound Per Day $2,218.97
c. Per Pound Per Day $2,000.81
Multi-family
ii. 2 bedroom
i. Studio & 1 bedroom
2. Commercial/Institutional
The capacity charge for commercial/institutional uses is based on water meter size and wastewater class. *see footnote below for class explanation*
Accessory Dwelling Unit
Meter size of 8 inches
i. Class B
iii. Class D
Flow
Board or lodging houses
Hotels or motels
iii. 3+ bedroom
Single-family
1. Residential
Class A represents all residential uses, a biological oxygen demand of 200mg/L, and a suspended solids measurement of 200mg/L
i. Class B
ii. Class C
DESCRIPTION OF SERVICES
i. Class B
ii. Class C
iii. Class D
Meter size of up to 3/4 inch
Biological Oxygen Demand (BOD)
Suspended Solids (SS)
*Wastewater Class Thresholds
●Class B represents standard strength, a biological oxygen dema nd of 200 mg/L, and a suspended solids measurement of 200 mg/L ●Class C represents moderate strength, a biological oxygen demand of 400 mg/L, and a suspended solids measurement of 400 mg/L ●Class D represents high strength, a biological oxygen demand of 800 mg/L, and a suspended solids measurement of 600 mg/L ii. Class C
iii. Class D
3. Industrial
The capacity charge for industrial uses is based on estimated wastewater flow and strength. i. Class B
ii. Class C
iii. Class D
Meter size of 6 inches
Meter size of 1 inch and 1/2 inch
i. Class B
i. Class B
ii. Class C
iii. Class D
iii. Class D
ii. Class C
Meter size of 3 inches
i. Class B
ii. Class C
iii. Class D
Meter size of 4 inches
Meter size of 1 inch
i. Class B
ii. Class C
iii. Class D
Meter size of 2 inches
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VI. DEVELOPMENT IMPACT FEES (subject to annual review) (continued) B. TRANSPORTATION IMPROVEMENT FEE
1. Residential
a. Single-family Per Dwelling Unit $7,406.95
b. Multi-family Per Dwelling Unit $3,740.77
2. Commercial and Industrial
a. Retail Per 1,000 Sq. Ft. $29,911.98
b. Office Per 1,000 Sq. Ft. $9,023.33
c. Industrial Per 1,000 Sq. Ft. $4,949.80
d. Hotel Per Room $4,710.60
e. Institution Per 1,000 Sq. Ft. $3,848.53
C. Per Space $62,227.81
VII. NEWSRACK ORDINANCE VIOLATION
A. ABATEMENT FEE
failure to abate violation for Chapter 17.12 of the S.M.M.C. Per Violation $75.78 B. APPEAL OF ABATEMENT ORDER FEE
(Fee refunded if appellant prevails). Per Violation $147.05 VIII. MISCELLANEOUS FEES
A. TRANSPORTATION PERMIT (ON CITY STREETS)
1. Oversized Load - Annual (subject to CVC 35795) Per Hour $90.00
2. Oversized Load - Singular Trip (subject to CVC 35795) Per Hour $16.00 B. CURB PAINTING
1. Review
a. Red Tipping Per Request $674.00
b. Blue Curb (Disabled) Per Request $488.00
c. Yellow Curb (Loading Zone) Per Request $384.00
d. White Curb (Passenger Loading) Per Request $384.00
e. Green Curb (Limited-Time) Per Request $384.00
f. Non-Critical Red Zones Per Request $186.00
2. Installation
a. Red Tipping Per Request $227.00
b. Blue Curb (Disabled) Per Request $657.00
c. Yellow Curb (Loading Zone) Per Request $509.00
d. White Curb (Passenger Loading) Per Request $412.00
e. Green Curb (Limited-Time) Per Request $671.00
f. Non-Critical Red Zones Per Request $357.00
C. WIRELESS PERMITS
1. Wireless Permit Application Fee (Drawdown Deposit) Min Deposit Per Location $4,500.00
2. Master License Agreement or Amendment Fee Min Deposit $2,500.00
3. Annual License Fee for attachment to City-owned Pole (subject to FCC 18-133) Per Location Per Year $270.00 D. SHARED MOBILITY PERMIT APPLICATION FEE (not subject annual increases) Each $5,300.00 E. TIE-BACKS IN THE PUBLIC ROW FEE Each $2,274.00
F.
1. Review or coordination Per Hour $210.00
2. Inspection Per Hour $183.00
STAFF HOURLY RATES FOR SERVICES NOT LISTED
CENTRAL PARKING IMPROVEMENT DISTRICT PER SPACE IN-LIEU FEE
DESCRIPTION OF SERVICES
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IX. SPECIAL COMMUNITY EVENTS PERMITS
A. NO-FEE EVENTS Each No Fee
B. NON-PROFIT, LOW-IMPACT EVENT Each $100.00
C. NON-PROFIT, HIGH-IMPACT EVENT Each $230.00
D. FOR-PROFIT, LOW-IMPACT EVENT Each $500.00
E. FOR-PROFIT, HIGH-IMPACT EVENT Each $1,000.00
F. SERVICE FEES (IF REQUIRED TO SUPPORT THE EVENT)
1. Overtime rates for personnel not regularly on duty who are required to work the event. Per Hour Staff Overtime Rates
2. Fair market value charges for utilization of City equipment and/or vehicles for the event. Per Hour Market Rates
3. Regular rates for personnel who may be required to prepare specialized logistic plans for the event. Per Hour Staff Rates
4. Actual costs for consumable supplies, e.g. parking meter signs, garbage bags, etc., used for the event. Actual Costs Actual Cos ts
5. Actual cost for specialized services contracted by the City that are required for the event. Actual Costs Actual Costs
UNIT FEE
X. COMMERCIAL FILMING PERMITS
A. USE FEES
1. Public Streets and Right-of Ways
a. Videos/Travel/Documentary/Still Photography/Industrial Commercials Per Day $217.94 b. Television Series/Movies/Pilot and Feature Films Per Day $326.90 c. All other uses Per Day $108.97
2. Civic Facilities, Parks, and Special Use Areas (For all uses) Per Hour $54.48 B. SUPPORT SERVICES FEES
C. DEPOSIT Deposit $1,000.00
DESCRIPTION OF SERVICES
For events sponsored by a non-profit organization that is not classified as a high-impact event.
Fees for use of overtime personnel shall be calculated at the top step prevailing overtime rate for the classification(s) utilized plus a 25% administrative overhead fee.
All businesses shall submit a refundable deposit at the time fees are due and payable to cover any unanticipated support services fees, property damage repair, etc.
For events open to the general public, sponsored by a non-profit organization, not for fundraising purposes, where no registration or admission fee is charged, no donations or contributions are solicited, or where no money exchanges hands.
For events sponsored by a non-profit organization that is classified as high-impact event. A high-impact event meets two or more of the following criteria: 1) being held for the first time; 2) expected to draw more than 500 participants; 3) held on a recurring basis; 4) requiring the support of 2 or more City departments; 5) following a route with a different start and finish; 6) requiring a street closure; or 7) requiring interagency coordination.
For events sponsored by a for-profit organization that is not classified as a high-impact event.
For events sponsored by a for-profit organization that is classified as a high-impact event.
DESCRIPTION OF SERVICES
Filming fees shall apply to commercial businesses desiring to film on public streets, right of ways or within city owned facilities, including parks, civic facilities and buildings or special use areas, such as Poplar Creek Golf Course. Prior to the granting of a permit, all businesses shall comply with all applicable policies and procedures, including, but not limited to, evidence of insurance, permits and licenses, and appropriate hold harmless language.
Any filming use that requires any of the following, shall be billed in accordance with the guidelines outlined within the Special Community Events Permit Fee section, Category C designation; i.e. for-profit businesses or non-tax exempt organizations:
Fees for use of City equipment, consumable supplies, preparation of specialized logistic plans, specialized contracted services and on-duty personnel will be billed at cost, plus a 25% administrative overhead fee.
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Chapter 3.64
FEES
Sections:
3. 64.010 Fees.
3.64.020 Penalties & Interest
3.64.030 Fees for Code Enforcement
3.64.010 - F
EES.
Prior to submittal of the annual budget, the City Manager shall submit to the City Council the fees proposed for the next fiscal year. The prior year’s fees shall continue if the City Manager does not submit new proposed fees. If the proposed fees do not represent a percentage increase exceeding the percentage increase for the preceding twelve (12) month period as shown by the San Francisco Bay Area Consumer Price Index of the Bureau of Labor Statistics, United States Department of Labor, under the heading All Items, or any index substituted by the Department of Labor therefor, the proposed fees shall become effective on the following July 1, unless a different date is set forth in the submission, provided however that the Council may amend the fees before the effective date. If the proposed fees represent a percentage increase exceeding the percentage increase in the Consumer Price Index, they must be approved by the Council before becoming effective. Notwithstanding the above, the Council may amend any fee at any time. (Ord. 1994-12 § 1, 1994; Ord. 1989-8 § 1, 1989; Ord. 1986-26 § 1, 1986).
3.64.020 - PEN
ALTIES AND INTEREST.
Any fee imposed by this chapter shall be due and payable within thirty days after the bill is mailed by the City. The fees shall be delinquent if not paid within said thirty days. Any person who fails to remit any fee within the time required shall pay a penalty of ten percent of the amount due, per month to a maximum of three months, plus interest at the rate of 1-1/2 percent per month, or fraction thereof, computed from the delinquent date of the fee until and including the date of payment. (Ord. 1989-8 § 1, 1989).
3.64.030 - FEES
FOR CODE ENFORCEMENT.
(a) Nuisances. The Council is authorized to adopt fees for administrative costs incurred in the enforcement of Title 7. No fee shall be charged if a property owner or agent abates the nuisance or violation within thirty (30) days after first notification of the violation is mailed by the City. (b) Other Violations. The City shall be authorized to adopt fees for costs incurred in the enforcement of Municipal Code violations which result in a requirement for a planning application or building permit, if such application is made or permit applied for more than thirty days after notification of the violation is mailed. (Ord. 1990-5 § 4, 1990; Ord. 1989-8 § 1, 1989).
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UNIT FEE
I.
A. WASTEWATER CAPACITY CHARGE
1. Residential
Class A represents all residential uses, a biological oxygen demand of 200mg/L, and a suspended solids measurement of 200mg/L
a. Single-family Per Dwelling Unit $11,100.63
b. Multi-family
i. Studio & 1 bedroom Per Dwelling Unit $5,549.76
ii. 2 bedroom Per Dwelling Unit $9,250.34
iii. 3+ bedroom Per Dwelling Unit $11,100.63
c. Hotels or motels Per Room/Apartment $5,549.76
d. Board or lodging houses Per Bedroom $5,549.76
e. Accessory Dwelling Unit Per Square Foot $5.55
2. Commercial/Institutional
The capacity charge for commercial/institutional uses is based on water meter size and wastewater class. *see footnote below for class explanation*
a. Meter size of up to 3/4 inch
i. Class B Per Meter $11,100.63
ii. Class C Per Meter $11,890.60
iii. Class D Per Meter $13,096.06
b. Meter size of 1 inch
i. Class B Per Meter $18,500.68
ii. Class C Per Meter $19,816.93
iii. Class D Per Meter $21,826.77
c. Meter size of 1 and 1/2 inch
i. Class B Per Meter $37,001.36
ii. Class C Per Meter $39,634.98
iii. Class D Per Meter $43,653.53
d. Meter size of 2 inches
i. Class B Per Meter $59,201.51
ii. Class C Per Meter $63,415.07
iii. Class D Per Meter $69,845.66
e. Meter size of 3 inches
i. Class B Per Meter $111,002.96
ii. Class C Per Meter $118,903.81
iii. Class D Per Meter $130,959.50
f. Meter size of 4 inches
i. Class B $185,004.57
ii. Class C Per Meter $198,172.65
iii. Class D Per Meter $218,266.57
g. Meter size of 6 inches
i. Class B Per Meter $370,009.14
ii. Class C Per Meter $396,346.40
iii. Class D Per Meter $436,533.14
h. Meter size of 8 inches
i. Class B Per Meter $592,013.95
ii. Class C Per Meter $634,154.02
iii. Class D Per Meter $698,453.24
3. Industrial
The capacity charge for industrial uses is based on estimated wastewater flow and strength. a. Flow Per Gallon Per Day $85.93
b. Biological Oxygen Demand (BOD) Per Pound Per Day $2,075.78 c. Suspended Solids (SS) Per Pound Per Day $1,871.70
IMPACT, IN-LIEU, AND LINKAGE FEES
DESCRIPTION OF SERVICES
DEVELOPMENT IMPACT FEES (subject to annual review)
*Wastewater Class Thresholds
●Class B represents standard strength, a biological oxygen demand of 200 mg/L, and a suspended solids measurement of 200 mg/L ●Class C represents moderate strength, a biological oxygen demand of 400 mg/L, and a suspended solids measurement of 400 mg/L ●Class D represents high strength, a biological oxygen demand of 800 mg/L, and a suspended solids measurement of 600 mg/L
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UNIT FEE
IMPACT, IN-LIEU, AND LINKAGE FEES
DESCRIPTION OF SERVICES
I.
B. TRANSPORTATION IMPROVEMENT FEE
1. Residential
a. Single-family Per Dwelling Unit $7,406.95
b. Multi-family Per Dwelling Unit $3,740.77
2. Commercial and Industrial
a. Retail Per 1,000 Sq. Ft. $29,911.98
b. Office Per 1,000 Sq. Ft. $9,023.33
c. Industrial Per 1,000 Sq. Ft. $4,949.80
d. Hotel Per Room $4,710.60
e. Institution Per 1,000 Sq. Ft. $3,848.53
C. Per Space $62,227.81
II. Each 1.19% of valuation
III.
Per Tree $805.00
A. Single Family $25,914.00
Multi-family 2-4 Units $25,474.00
Multi-family 5+ Units $18,510.00
IV. CHILD CARE DEVELOPMENT FEE
A. Residential
1. Single-family Per Dwelling Unit $4,677.29
2. Multi-family Per Dwelling Unit $3,373.46
B. Commercia l
1. Retail Per Sq. Ft. $0.39
2. Office Per Sq. Ft. $0.67
3. Industrial Per Sq. Ft. $0.22
4. Hotel Per Sq. Ft. $0.14
V. COMMERCIAL LINKAGE FEE
(City Council adopted September 16, 2016 - effective November 16, 2016) New commercial construction in excess of 5,000 sq. ft.
Exempts public uses such as hospitals, nonprofit and government facilities, churches, schools and child care centers. Developers who enter written agreements to pay area standard wages to all construction workers on the project are entitled to a 25% reduction of the fee. Additionally, developers may provide construction of affordable housing units in lieu of the fee payment.
A. HOTELS Per Sq. Ft. $13.11
B. RETAIL, RESTAURANTS, AND SERVICES Per Sq. Ft. $6.55
C. OFFICE, RESEARCH & DEVELOPMENT USES, AND MEDICAL OFFICES Per Sq. Ft. $32.76 VI.
A. In Lieu Fees for Fractional Units
1. Rental
0.1 Housing Unit $33,452.00
0.2 Housing Unit $66,903.00
0.3 Housing Unit $100,355.00
0.4 Housing Unit $133,807.00
2. Owner
0.1 Housing Unit $30,701.00
0.2 Housing Unit $61,401.00
0.3 Housing Unit $92,102.00
0.4 Housing Unit $122,802.00
B. In Lieu Fee for Pro
jects Less than 11 Units
1. Rental
5 Unit Project $167,259.00
6 Unit Project $200,710.00
7 Unit Project $234,162.00
8 Unit Project $267,614.00
9 Unit Project $301,065.00
10 Unit Project $334,517.00
2. Owner
5 Unit Project $153,503.00
6 Unit Project $184,203.00
7 Unit Project $214,904.00
8 Unit Project $245,604.00
9 Unit Project $276,305.00
10 Unit Project $307,005.00
PARK AND LANDSCAPE RESOURCES
PARK IN-LIEU FEE / PARK IMPACT FEE FOR RESIDENTIAL PLANNING APPLICATION
PROJECTS INVOLVING PARCEL MAPS, SUBDIVISION AND OTHER MULTI-FAMILY RESIDENTIAL PROJECTS.
Tree Replacement Cost (24" Box Tree)
BELOW MARKET RATE HOUSING FEE
A fee in lieu of constructing affordable housing units onsite per Below Market Rate program:
ART IN PUBLIC PLACE FEE
The fee is applicable to commercial and multi-family residential projects exceeding three (3) million dollars in total building valuation, excluding land acquisition and off-site improvement costs.
CENTRAL PARKING IMPROVEMENT DISTRICT PER SPACE IN-LIEU FEE DEVELOPMENT IMPACT FEES (subject to annual review) (continued)
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Att ‐ 4
SUMMARYꢀOFꢀFISCALꢀIMPACTS
I II
ANNUALꢀGENERALꢀFUND ANNUALꢀOTHERꢀFUNDS
NewꢀFees NewꢀFees
Various Public Works Fees
Various Parks & Recreation Fees
IncreaseꢀinꢀExcessꢀofꢀCPI
Police Department - Outside Detail Rates
Public Works - Various Fees
$
$
587,622.98
-
IncreaseꢀinꢀExcessꢀofꢀCPI
$
$
$
-
-
‐GeneralꢀFundꢀTotal: OtherꢀFundsꢀTotal: $ ‐
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SUMMARYꢀOFꢀNEWꢀFEES:ꢀꢀ2024‐25
ProposedꢀFee
orꢀDeposit
AnnualꢀRevenueꢀItem CostꢀMethodology Estimate
Parksꢀ&ꢀRecreation
Bocce Set $ 30.00 New fee for the use of bocce ball set.
Added new fee for food vendors permit due to community interest for this option for picnic rentals Catering Service Fee $ 28.00
Adding facilities: King gym, Shoreview Social and Assembly, Senior Center Library and Game room Facility Listings Varies
New fees to reflect appropriate charges for individuals / business who wish to use soccer, baseball or softball fields for camps or clinics.
Camp or Clinic Fee - Soccer, Baseball, Softball
Facility Specialist
$55.00 - 64.00
Added fee to reflect cost of staffing as related to athletic facility rentals Added fee to reflect cost of staffing as related to athletic facility rentals $ -
$ 23.00
32.00Custodian
Tournament Refundable Deposit
$
$ 288.00 Added fee for deposit related to tournaments (refundable) Added picnic cancellation fee to specific cancellations made within 10 days do not receive a refund. Stipulates cancellation 10+ days or more subject to $20 cancellation fee to cover admin costs.
20.00 20.00 Added picnic rescheduling fee to cover administrative costs Picnic Cancellation Fee
Picnic Rescheduling Fee
$
$
PublicꢀWorks
Utility permits currently are lumped into Major EP. A separate fee streamlines administrative work.
Utility Permits - Standard Base Fee
Utility Permits - Excavation Fee
$
$
$
1,932.00
Additional staff time is involved with utility permits that excavate such as traffic control and restoration review. 827.00
Major Encro permits are generally large/complex projects. Review should be assessed and charged upfront. Tiered system.
Major Encroachments - Plan Review Fee 865.00
Major Encro permits are generally large/complex projects. Inspection should be assessed and charged prior to issuance. Tiered system.
Major Encroachments - Permit & Inspection Fee
Permit Modification - Rider / Scope Change
$
$
2,661.00
229.00 Permit Riders require more time than a simple time extension.
Flat deposit for minor encroachments to streamline administrative work. Replaces calculated deposits Deposits - Minor Encroachment Permits
Deposits - Sewer Lateral Permits
$
$
$
$
$
$
$
$
2,500.00
Flat deposit for sewer lateral permits to streamline administrative work. Replaces calculated deposits 2,000.00
Flat deposit for temporary permits to for PW to remove in event permittee fails to. New deposit.
Deposits - Temporary Permits 1,000.00
Flat deposit for dock permits to streamline administrative work. Replaces calculated deposits Deposits - Dock Permits 1,000.00
Defines flat deposit for street light banner permits to for PW to remove in event permittee fails to. New deposit.
Deposits - Street Light Banner Permits
Deposits - Major Encroachment Permits
Erosion Control Compliance Deposit - Additional
Grading Security - Minimum Deposit
500.00 $ 587,622.98
Defines deposit for Major encroachment. Replaces calculated deposits 10,000.00
Providing a fomula for staff to use when calculating the deposit amount for Erosion Control Compliance.
58.00 Grading security defined for PW to utilize if permittee fails to stabilize or infill site. 10,000.00
Grading security defined for PW to utilize if permittee fails to stabilize or infill site.
40.00 3,458.00 Map correction service not previously listed in fee schedule.
Grading Security - Additional Deposit
Map Correction (Certificate)
$
$
Additional reviews beyond the typical 3 involve additional staff expenses.
Additional Mapping Reviews (4th and Beyond)
Engineering Agreements
$
$
$
1,189.00
Staff time spent on drafting and coordinating Engineering agreements for developments. 4,065.00
Transportation Permit processing service not previously defined nor charged.
Transportation Permit - Annual 90.00
Transportation Permit processing service not previously defined nor charged.
16.00 210.00 Staff hourly rates not previously defined. 183.00 Staff hourly rates not previously defined.
Transportation Permit - Singular
Staff Hourly Rate - Review
Staff Hourly Rate - Inspection
$
$
$
EstimatedꢀAnnualꢀRevenue: $ꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ587,622.98
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SUMMARYꢀOFꢀFEESꢀINꢀEXCESSꢀOFꢀCPI:ꢀꢀ2024‐25
ProposedꢀFee AnnualꢀRevenueꢀ
Item CurrentꢀFee orꢀDeposit CostꢀMethodology Estimate
Police
Rates charged are updated per the salary schedule based on the top step and known negotiated salary increasesOutside Detail Rates Various Various ꢀ$ ‐ꢀꢀꢀ PublicꢀWorks
Wastewater Capacity Charge Correction to the WCC to realign with ENR-CCI-SF since previously adjusted using CPI for FY22-23 and FY23-24. ꢀ$ 184,730.29ꢀ
Various Fees Staff time estimate and materials increases per user fee study.
EstimatedꢀRevenues: $ꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ184,730.29
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SUMMARY OF ELIMINATED/REDUCED: 2024-25
Department Fee Reason for Elimination/Reduction
Eliminated Fees
Passport Processing Services
Mobile Homes In Lieu Fees
These fees have been removed from the fee schedule due to Passport Service closure.Library
We are deleting Mobile homes category as there is no data from 2022 American Community Survey census data.Parks & Recreation Reduced Fees
Public Works Wireless Permit - Annual License Fee Annual Wireless license fees are limited to $270 maximum per FCC Order 18- 133. Fee reduced to match max allowable.
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Proposed
Comprehensive
Fee Schedule
July 1, 2024 – June 30, 2025
Karley Toffey
Senior Management Analyst
Finance Department
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2024-25 Comprehensive Fee Schedule
• Annual public hearing for the fee schedule.
• Public Notice was given on April 3, 2024 and April 6, 2024. • Annually fees are reviewed and most are increased by CPI. This year, CPI is 2.8%.
• Fees are cost recovery; not to exceed the cost of providing the service.
• Sewer service fees are not included in this revision process. 2 162 of 302
Revision
Highlights
Proposed New Fees:
• Parks & Recreation – Various Picnic & Facility Fees,
Bocce Sets, Catering Service Fee, Tournament
Deposits, etc.
• Public Works – Various fees, Utility Permits, Permit
Deposits, Major encroachment, etc.
3 Fees increased in Excess of CPI (less than cost of
service):
• Police – Outside Detail Rates
• Public Works – Wastewater Capacity Charge,
Various fees
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Revision Highlights
Reduced Fee:
• Public Works – Wireless Permits – Annual License Fee (to comply with FCC order limiting amount of fee)
4 Eliminated Fees:
• Library – Passport Processing Services
• Parks & Recreation – Mobile Homes In Lieu Fees
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Thank You
Karley Toffey
Senior Management Analyst
Finance Department
[email protected]
650-522-7106
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Required
Board
Action
• Adopt a resolution to approve
the 2024-2025 Comprehensive
Fee Schedule
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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 12 Section Name: NEW BUSINESS Account Number: 10-4651 File ID: 24-8586 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 15, 2024
SUBJECT:
2024-29 Capital Improvement Plan Preview
RECOMMENDATION:
Receive a preview and provide feedback on the 2024-29 Capital Improvement Plan.
BACKGROUND:
As part of the Capital Improvement Program (CIP) budget development process, City departments prepare funding requests that capture five-year capital project needs. Total project costs are developed and tied to appropriate funding sources, such as the General Fund, Measure S, or special revenues such as those restricted to transportation purposes or the sewer enterprise fund. New and ongoing capital project requests are prioritized and recommended for funding through review and analysis by the City Manager, Assistant City Manager, Public Works Director, Parks and Recreation Director, and Finance Director. The prioritization process includes evaluating the criticality of a project with regard to public health and safety, maintaining the viability of a City asset or facility, whether projects are already underway with existing investments, and whether a project can be phased to spread costs over a longer period of time.
A primary focus of the five-year CIP budget development process is balancing available General Fund and Measure S funding with project budget needs, while determining if future deficits require additional revenue sources. Annually, capital project contributions from the General Fund and Measure S typically total $4.25 million and $3.0 million, respectively, for a total available contribution of $7.25 million. After closing out completed projects with remaining balances from these sources, the 2024-25 amount available for allocation is greater at $9.95 million. Preliminary General Fund CIP project budget requests, including Measure S, total $9.6 million for 2024-25, with a proposed $6.5 million requested for existing projects and $3.1 million for new projects.
With the typical available funding, the five-year CIP projects a total revenue of $39.0 million from the General Fund and Measure S for Capital Projects. When looking at projected needs, staff estimates a total of $70.3 million in project budget requests, resulting in a five-year deficit of $31.4 million. As part of the current budget process, staff will continue prioritizing the outer years of the five-year CIP to develop a plan that matches available revenue but wanted to provide the Council with the full picture of capital needs. Consistent with the Council’s adopted Blue Sky priority to have a comprehensive review of capital needs, staff will be coming back to Council in the coming fiscal year to dive deeper into the challenges of meeting the needs of maintaining and upgrading City facilities with limited available revenue.
Special revenue and restricted funding, including Gas Tax, Measure A, Measure W, Measure M, and Road Maintenance and Rehabilitation Account (RMRA) funds, are restricted for specific purposes. For example, use of Gas Tax revenues is generally limited to public streets and highways, while Measure A is typically the City’s sole non-General Fund grant matching fund source for transportation projects. The average annual revenue allocated to Capital Projects from these funding sources totals $8.3 million; however, after closing out completed projects with remaining balances from these
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sources, the 2024-25 amount available for allocation is greater at $11.1 million. The proposed project budget requests funded from these special revenue and restricted funding sources total $11.0 million for 2024-25, with $10.4 million requested for existing projects and $0.6 million for new projects. The five-year CIP projects a total revenue of $44.3 million from special revenue and restricted funding and a total of $42.8 million in transportation-related project budget requests.
The City also has restricted sewer and storm funding, via ongoing sewer rates and the newly approved Community Flood and Stormwater Protection Fee. For the sanitary sewer system, the CIP includes significant sewer system improvement projects, primarily all part of the 10-year, $1 billion Clean Water Program. Sewer CIP projects are fully funded from the rate revenue, with $27.8 million proposed for 2024-25. With the new Stormwater Protection Fee, which generates approximately $4.0 million annually, staff is establishing a new restricted fund to include operational and CIP needs. The ongoing annual revenue available for stormwater CIP projects will need to be established over time, but staff are currently planning for $3.5 million available for capital needs. Staff will be updating the City‘s Storm Drain Master Plan during 2024- 25, which will provide a prioritized capital improvement program for 2025-26 and beyond that will need to be incorporated into future Council discussions and budgets. For 2024-25, $0.5 million from the Stormwater Protection Fee revenue will be used to fund stormwater CIP projects.
The following table details the five-year CIP needs, with 2024-25 as a proposed CIP that matches available revenue/funds and years two through five as total needs irrespective of available revenue. The five-year needs total $269.4 million with $65.7 million proposed for 2024-25. By project type, the total five-year CIP needs can generally be broken down into $103.3 million (38.4%) for sewer-related projects, including the Clean Water Program (funded by sewer enterprise funds), $67.4 million (25.0%) for building- and facility-related projects (primarily General Fund and Measure S), $54.2 million (20.1%) for transportation projects including street rehabilitation and bicycle/pedestrian improvements (primarily transportation-focused special revenue and restricted funding), $23.2 million (8.6%) for parks-related projects (primarily General Fund, Measure S, and Parks and Recreation fees), $9.9 million (3.7%) for miscellaneous/other project types, $9.8 million (3.6%) for bridge improvements, and $1.6 million (0.6%) for storm-related projects.
Project Budget Requests by Project Type (All Funding Sources) Project Type 2024-25
Proposed
2025-26
Need
2026-27
Need
2027-28
Need
2028-29
Need
Bridges $8,930,000 $800,000 $20,000 - -
Buildings/Facilities $9,543,600 $32,425,000 $21,010,000 $3,210,000 $1,210,000 Parks & Recreation $4,833,000 $13,406,828 $1,895,000 $1,775,000 $1,275,000 Sewer $27,806,000 $7,812,000 $27,660,000 $20,725,000 $19,320,000 Stormwater $1,000,000 $150,000 $150,000 $150,000 $150,000 Streets & Transportation $9,281,420 $11,275,319 $15,018,636 $9,725,000 $8,875,000 Miscellaneous/Other $4,307,000 $2,139,000 $1,227,000 $1,227,000 $1,027,000 TOTAL $65,701,020 $68,008,147 $66,980,636 $36,812,000 $31,857,000 As indicated above, there is a significant projected CIP deficit with regard to projects that rely on General Fund and Measure S. Some of the major contributors to the deficit include structural upgrades to the 2nd and El Camino Real parking garage ($18.0 million), multiple recreation center and City Hall roof replacements ($3.9 million), structural repair of the Main Library Garage ($4 million), City Council Chamber improvements ($6.5 million), waterproofing and painting the Main Street, Central, and Transit Parking Garages ($5.7 million), and Phase VI of park restroom refurbishment ($1.3 million), all of which highlight the significant need related to City facilities due to aging infrastructure. Staff will be implementing a comprehensive facilities assessment during 2024-25, which may identify additional capital needs for the dozens of City facilities.
BUDGET IMPACT:
There is no direct budgetary impact resulting from this report. The 2024-29 CIP Preview identifies $269.4 million in capital
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improvement needs, predominantly reflecting sewer, building/facilities, and streets and transportation projects. Any feedback and/or direction received from the Council as a result of this report and supporting presentation will be incorporated into the FY 2024-25 proposed CIP budget and the 2024-29 five-year capital improvement program.
ENVIRONMENTAL DETERMINATION:
This budget preview is not a project subject CEQA because it is a government fiscal activity, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - 2024-29 CIP Preview by Project Type
STAFF CONTACT
Matt Fabry, Public Works Director
[email protected]
650 522 7309
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Att 1 - 2024-29 CIP Project Needs by Project Type
Preliminary for Budget Discussion Purposes Only
Project
Type Project 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs 5-Year Total
Bridges
462250Bermuda Drive Bridge Replacement 8,880,000 - - - - 8,880,000 462004Citywide Bridge Maintenance 50,000 50,000 20,000 - - 120,000 NEW Ryder Creek Bridge Painting - 750,000 - - - 750,000 Bridges Total 8,930,000$ 800,000$ 20,000$ -$ -$ 9,750,000$ Buildings/Facilities
469031ADA Compliance and Transition Planning - 250,000 35,000 35,000 35,000 355,000 460058ADA Entry Compliance - Beresford 350,000 - - - - 350,000 46f033 Beresford Basketball Court Resurface - 200,000 - - - 200,000 NEW Beresford Recreation Center: Roof Replacement - 700,000 - - - 700,000 NEW Central Recreation Center: Roof Replacement 450,000 - - - - 450,000 NEW City Hall - Council Chambers Improvements - 600,000 6,500,000 - - 7,100,000 NEW City Hall - Roof Replacement - - 1,600,000 - - 1,600,000 46f008 City Hall Improvements 100,000 100,000 100,000 100,000 - 400,000 46f030 Citywide Facilities Condition Assessment 600,000 - - - - 600,000 460057Citywide Fire - Intrusion Alarm System Upgrade 250,000 250,000 250,000 250,000 - 1,000,000 46F003Corp Yard Misc Improvements - - 1,000,000 1,000,000 - 2,000,000 46F013Corp Yard Underground Tank Replacement 750,000 - - - - 750,000 NEW Corp Yard: Park Maint Yard: Women's RR/Lockers - 350,000 - - - 350,000 NEW Corporation Yard Paving 150,000 800,000 - - - 950,000 461001Downtown Parking Improvements - 100,000 100,000 100,000 100,000 400,000 NEW Downtown Restrooms 25,000 25,000 25,000 25,000 25,000 125,000 46F005Exterior and Interior Painting - Central Park Garage 300,000 - 2,000,000 - - 2,300,000 46F006Exterior and Interior Painting - Transit Center - - 900,000 - - 900,000 NEW Fire Station 21 - Interior Painting - 200,000 200,000 - - 400,000 NEW Fire Station 27 - Roof Replacement - - 500,000 - - 500,000 NEW Hillsdale Library - Roof Replacement - - 500,000 - - 500,000 46f036 King Center Resiliency Improvements 850,000 3,000,000 3,000,000 - - 6,850,000 NEW King Recreation Center: Roof Replacement - 900,000 - - - 900,000 46f028 Lakeshore Recreation Center ADA Entry - 100,000 - - - 100,000 46f034 Los Prados Court Lighting Improvements - 300,000 - - - 300,000 NEW Main Library Improvements - 100,000 - - - 100,000 46F016Main Library Painting - 800,000 - - - 800,000 NEW Main Library: Carpet Replacement - 650,000 650,000 650,000 - 1,950,000 NEW Main Library: Lighting Controls Upgrade 300,000 - - - - 300,000 NEW Main Library: Parking Garage Structural Repair - 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000 NEW Main Street Garage - Waterproofing 50,000 1,300,000 - - - 1,350,000
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Project
Type Project 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs 5-Year Total
665100Marina Library Structural Improvements 3,858,600 300,000 - - - 4,158,600 46f021 Offices - Acoustic attenuation - City Hall 75,000 - - - - 75,000 460054Paint Exterior Main Street Garage - - 1,500,000 - - 1,500,000 46F018Panic Buttons at Counters and Offices (65,000) - - - - (65,000) 46F025Parking Facility Structural Repairs - 18,000,000 - - - 18,000,000 NEW Parking Lot Resurfacing (Shoreline/Lakeshore/Los Prados/Beresford) - 600,000 600,000 - - 1,200,000 NEW Police Station: Parking Deck Resurfacing 1,300,000 - - - - 1,300,000 NEW Police Station: Parking Garage Waterproofing - 50,000 - - - 50,000 NEW Recreation Center Backup Generator Connection 50,000 50,000 50,000 50,000 50,000 250,000 NEW Senior Center: Roof Replacement - 700,000 - - - 700,000 NEW Shoreview Recreation Center - Roof Replacement - - 500,000 - - 500,000 NEW Tennis Court Garage Lifespan Evaluation 50,000 - - - - 50,000 NEW WWTP Paving 100,000 1,000,000 - - - 1,100,000 Buildings/Facilities Total9,543,600$ 32,425,000$ 21,010,000$ 3,210,000$ 1,210,000$ 67,398,600$ Miscellaneous
310600Child Care Facilities 450,000 450,000 450,000 450,000 450,000 2,250,000 NEW Citywide Assistive Listening Devices - 200,000 200,000 200,000 - 600,000 NEW Citywide Fence Improvements 100,000 100,000 100,000 100,000 100,000 500,000 310520Community Development Block Grant (CDBG) Community Facilities 40,000 40,000 40,000 40,000 40,000 200,000 310026Community Development Department Services Improvement - Electronic and Digital250,000 250,000 250,000 250,000 250,000 1,250,000 46c004Development Design Standards 75,000 - - - - 75,000 460037El Camino Real at Highway 92 Landscapre Improvement 3,000,000 - - - - 3,000,000 46c003Green Fleet Charging Infrastructure Projects 125,000 100,000 - - - 225,000 315000Housing Rehabilitation 60,000 60,000 60,000 60,000 60,000 300,000 310521Minor Home Repair 127,000 127,000 127,000 127,000 127,000 635,000 513000Police Radios - Hand Held and Mobile - 772,000 - - - 772,000 NEW Seal Point Park Pond H2S Investigation and Remediation 80,000 40,000 - - - 120,000 Miscellaneous Total 4,307,000$ 2,139,000$ 1,227,000$ 1,227,000$ 1,027,000$ 9,927,000$ Parks & Recreation
NEW Laurelwood Park - 775,000 - - - 775,000 NEW Parkside Aquatic Play Area 400,000 - - - - 400,000 NEW Beresford Pickleball Courts 25,000 - - - - 25,000 NEW Beresford: Picnic Shelter Slab Replacement - 50,000 - - - 50,000 610027Central Park 3,700,000 3,000,000 - - - 6,700,000 NEW Citywide Emergency Field Lighting 120,000 120,000 120,000 - - 360,000 610014Citywide Park Fencing and Structures 200,000 200,000 - - - 400,000 610017Citywide Park Play Area Upgrade (3,700,000) 241,828 - - - (3,458,172) 46F024Gateway Park Pedestrian Bridge Improvements 300,000 - - - - 300,000 618278Golf Course - Well Drilling 53,000 250,000 - - - 303,000
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Project
Type Project 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs 5-Year Total
618280Golf Course Upgrades FY 2018-19 (Golf Sub-Fund) - 85,000 - - - 85,000 610060Irrigation Controller Upgrade 100,000 100,000 - - - 200,000 NEW Japanese Garden Repairs - 250,000 - - - 250,000 NEW Lakeshore Basketball Court - Resurface - 400,000 - - - 400,000 NEW Lakeshore Childcare 1,250,000 3,250,000 - - - 4,500,000 NEW Laurelwood Park Playground TBC - 1,610,000 - - - 1,610,000 NEW Laurelwood Park Retaining Wall Repair 100,000 - - - - 100,000 NEW Los Prados Basketball Court - Resurface - 450,000 - - - 450,000 NEW Los Prados: Picnic Area Improvements - 50,000 - - - 50,000 462897Park Citywide Playground Equipment Replacement - Public Works 500,000 500,000 500,000 500,000 500,000 2,500,000 46F015Park Restroom Phase V 150,000 - - - - 150,000 NEW Park Restroom Refurbishment - Phase VI - 1,300,000 - - - 1,300,000 46F023Shoreview Basketball Court Resurfacing - - 500,000 - - 500,000 610038Skate Plaza Updates 185,000 - - - - 185,000 610023Sports Fields Conversion - Synthetic Turf 1,000,000 500,000 500,000 1,000,000 500,000 3,500,000 610008Tree Planting - Parks Division 450,000 275,000 275,000 275,000 275,000 1,550,000 Parks & Recreation Total4,833,000$ 13,406,828$ 1,895,000$ 1,775,000$ 1,275,000$ 23,184,828$ Sewer
46s191Annual Sanitary Sewer Rehabilitation - - 7,120,000 10,350,000 8,500,000 25,970,000 46s005Basin 4 Collection System Improvements (14,000,000) - - - - (14,000,000) 46s091Clean Water Program (CWP) Annual Citywide Sanitary Sewer Rehabilitation11,000,000 2,900,000 - - - 13,900,000 46s093Clean Water Program (CWP) Closed Circuit Television (CCTV) Inspection Program700,000 - - - - 700,000 46t090 Clean Water Program (CWP) WWTP Annual Major Components 2,100,000 2,000,000 - - - 4,100,000 469988East San Mateo Lift Station 533,000 - - - - 533,000 469981Program Management - Sewer Projects (5,000,000) - - - - (5,000,000) 469933Root Foaming 400,000 412,000 425,000 438,000 452,000 2,127,000 46s193Sanitary Sewer CCTV Inspection Program - - 900,000 635,000 955,000 2,490,000 46s190Sanitary Sewer Flow Monitoring and Reporting - - 125,000 125,000 125,000 375,000 46s192Sanitary Sewer Pump Station Upgrades - - 13,020,000 3,000,000 3,000,000 19,020,000 46s101TMDL Enhanced Planning and Infrastructure Improvements 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 46t003 WWTP and Flow Management Upgrade and Expansion 29,573,000 - - - - 29,573,000 46t190 WWTP Annual Repairs - - 3,570,000 3,677,000 3,788,000 11,035,000 Sewer Total 27,806,000$ 7,812,000$ 27,660,000$ 20,725,000$ 19,320,000$ 103,323,000$ Stormwater
46c005Adaptation Plan 50,000 - - - - 50,000 46c002Citywide Soil Stabilization 450,000 150,000 150,000 150,000 150,000 1,050,000 NEW Marina Lagoon Dredging Design/Permitting 500,000 - - - - 500,000 Stormwater Total 1,000,000$ 150,000$ 150,000$ 150,000$ 150,000$ 1,600,000$
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Project
Type Project 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs 5-Year Total
Streets & Transportation
46r015 101 / 92 Multi-Modal (Fashion Island Class IV Bike Lane) 554,545 831,819 4,188,636 - - 5,575,000 NEW 28th Avenue Gap Closure Construction 550,000 - - - - 550,000 NEW Alameda De Las Pulgas and Barneson Intersection Safety and Optimization - 200,000 700,000 - - 900,000 46r024 Bike San Mateo Program 250,000 902,000 700,000 700,000 - 2,552,000 465162Citywide Bicycle Parking - 10,000 10,000 - - 20,000 461008Citywide Paid Parking Evaluation and Implementation - 66,500 155,000 - - 221,500 46r019 Citywide Safe Routes to School Program 240,000 240,000 240,000 - - 720,000 466607Citywide Sign Inventory and Replacement - 150,000 150,000 150,000 - 450,000 467771Citywide Street Reconstruction Package I 675,000 - - - - 675,000 467772Citywide Street Reconstruction Package II (3,994,898) - - - - (3,994,898) 467773Citywide Street Reconstruction Package III 5,319,898 - - - - 5,319,898 467001Citywide Street Rehabilitation Package I (325,000) - - - - (325,000) 467008Citywide Street Rehabilitation Package II (550,000) - - - - (550,000) 467009Citywide Street Rehabilitation Package III (375,000) - - - - (375,000) 469997Citywide Street Rehabilitation Program 6,050,000 8,100,000 8,100,000 8,100,000 8,100,000 38,450,000 466600Citywide Traffic Calming 150,000 150,000 150,000 150,000 150,000 750,000 465333Citywide Traffic Signal Retiming - 25,000 25,000 25,000 25,000 100,000 461214Community Development Block Grant (CDBG) Projects 750,000 450,000 450,000 450,000 450,000 2,550,000 46r022 Delaware Safe Routes to School Corridor 1,400,000 - - - - 1,400,000 46r017 Downtown Grade Separation Study (1,100,000) - - - - (1,100,000) 46R009Grammercy Drive Retaining Wall - 50,000 50,000 50,000 50,000 200,000 46r011 High Priority Bicycle Project Design Package (452,000) - - - - (452,000) 46r018 Hillsdale Bike Ped Bridge Feasibility (165,000) - - - - (165,000) 46r001 Hillsdale Boulevard and Alameda De Las Pulgas Signal 400,000 - - - - 400,000 462226Neighborhood Traffic Management 100,000 100,000 100,000 100,000 100,000 500,000 NEW Quick Build Mobility Program 500,000 - - - - 500,000 46M001Railroad Crossing Improvements (846,125) - - - - (846,125) 46r023 Traffic Impact Fee Update (100,000) - - - - (100,000) 462205Train Quiet Zone 250,000 - - - - 250,000 Streets & Transportation Total9,281,420$ 11,275,319$ 15,018,636$ 9,725,000$ 8,875,000$ 54,175,375$ Grand Total 65,701,020$ 68,008,147$ 66,980,636$ 36,812,000$ 31,857,000$ 269,358,803$
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2024-29 Capital
Improvement
Plan Preview
CIP Study Session
April 15, 2024 1
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Agenda
• Funding Sources
• 2024-29 CIP Preview
• Unfunded Projects
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General Fund & Measure S
3 Revenue Source
Annual
Baseline
Amount
2024-25
Amount
General Fund Contribution $4.25 M $4.25 M
Measure S $3.00 M $3.70 M
Closed Projects* $2.00 M
Total $7.25 M $9.95 M
*Remaining funding projected to be released from closing completed projects.
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General Fund & Measure S
4 Category 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Contributions to CIP $9,950 $7,250 $7,250 $7,250 $7,250 Project Budget Requests $9,637 $32,334 $20,535 $4,960 $2,860 Net Total $313 ($25,084) ($13,285) $2,290 $4,390
2024-29 Resources vs Requested (in thousands)
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General Fund & Measure S
5 2024-29 Resources vs Requests (in millions)
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General Fund & Measure S
6 Project Type
2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Funded Projects $6,492 $21,289 $7,990 $2,935 $1,685
New Projects $3,145 $11,045 $12,545 $2,025 $1,175
Total $9,637 $32,334 $20,535 $4,960 $2,860
2024-29 Project Needs (in thousands)
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General Fund & Measure S
7 Project Type 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Bridges $300 $750 - - -
Buildings/Facilities $6,517 $25,625 $17,910 $3,110 $1,210 Parks & Recreation $2,495 $3,670 $1,120 $500 $500
Stormwater - $150 $150 $150 $150
Streets/Transportation $100 $967 $1,055 $900 $900
Misc. $225 $1,172 $300 $300 $100
T otal $9,637 $32,269 $20,535 $4,960 $2,860
2024-29 Project Requests by Project Type (in thousands)
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General Fund & Measure S
8 Marina Library Structural
Improvements
$2,100,000
Police Station Parking Deck
Resurfacing
$1,300,000
Corp Yard Underground
Tank Replacement
$617,000
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General Fund & Measure S
9 Citywide Facilities
Condition Assessment
$600,000
Quick Build Mobility
Program
$500,000
Parks Citywide Playground
Equipment Replacement
$500,000
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General Fund & Measure S
2nd & El Camino Garage:
• Critical structural component repairs
• Weatherproofing installation
• Security and signage upgrades
• Pedestrian safety improvements
Total Project Need: $18.0 M
10 Parking Facility Structural Improvements
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General Fund & Measure S
11 City Council Chambers
Improvements
$7,100,000
Facility Roof Replacements
at Various Locations
$5,850,000
Garage Painting and
Waterproofing
$5,200,000
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Special Revenue Funds
12 Revenue Source
Annual
Baseline
Amount
2024-25
Amount
Gas Tax $1.30 M $2.30 M
Measure A $3.30 M $3.60 M
Measure M $0.35 M $0.95 M
Measure W $1.00 M $1.05 M
RMRA $2.70 M $3.20 M
Total $8.30 M $11.10 M
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Special Revenue Funds
13 Project Type 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Gas Tax $2,300 $1,300 $1,300 $1,300 $1,300
Measure A $3,453 $2,877 $3,345 $2,175 $2,025
Measure M $950 $350 $350 $350 $350
Measure W $1,050 $1,000 $1,000 $1,000 $1,000
RMRA $3,200 $2,700 $2,700 $2,700 $2,700
T otal $10,953 $8,227 $8,695 $7,525 $7,375
2024-29 Project Requests by Funding Source (in thousands)
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Special Revenue Funds
14 Project Type 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Bike/Pedestrian $323 $452 $450 - -
Bridges $2,530 $50 $20 - -
Streets $7,000 $7,450 $7,450 $7,450 $7,300
Traffic $850 $275 $775 $75 $75
Misc. $250 - - - -
Total $10,953 $8,227 $8,695 $7,525 $7,375
2024-29 Project Requests by Project Type (in thousands)
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2024-29 5-Year CIP Plan/Needs
15 Project Type 2024-25
Proposed
2025-26
Project Needs
2026-27
Project Needs
2027-28
Project Needs
2028-29
Project Needs
Bridges $8,930 $800 $20 - -
Buildings/Facilities $9,544 $32,425 $21,010 $3,210 $1,210 Parks & Recreation $4,833 $13,407 $1,895 $1,775 $1,275
Sewer $27,806 $7,812 $27,660 $20,725 $19,320
Stormwater $1,000 $150 $150 $150 $150
Streets/Transportation $9,281 $11,275 $15,019 $9,725 $8,875 Misc. $3,490 $1,322 $300 $300 $100
T otal $63,634 $60,664 $66,079 $35,810 $30,855
*Shown in thousands
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2024-29 5-Year CIP Plan/Needs
16 Project Type 5-Year
Project Needs Percentage
Bridges $9,750 3.6%
Buildings/Facilities $67,399 25.0%
Parks & Recreation $23,185 8.6%
Sewer $103,323 38.4%
Stormwater $1,600 0.6%
Streets & Transportation $54,175 20.1%
Miscellaneous/Other $9,927 3.7%
Total $269,358
*Shown in thousands
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Preliminary Unfunded Projects
Preliminary Unfunded Projects Total : $324 M
• Will increase as 5-year CIP is prioritized
Priority Unfunded Projects:
• Central Park - $64.5 M
• New Downtown Parking Garage - $32.0 M
• New Corp Yard Facility - $26.0 M
• Aquatic Facility Improvements $20.0 M
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City Plaza Office Space
Current Lease:
• Ends March 2025
• Approximately $570k annually
• Houses PW Engineering staff
Future Needs:
• Consider whether to relocate
staff
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THANK YOU!
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From: Mason Fong
To: City Council (San Mateo)
Cc: Clerk
Subject: Re: Public Comment for 4/15/24 Council Agenda Items 7, 12 & 13 Date: Monday, April 15, 2024 9:22:16 PM
Attachments: Screen Shot 2024-04-15 at 6.35.22 PM.png
Screen Shot 2024-04-15 at 6.24.18 PM.png
Screen Shot 2024-04-15 at 9.18.35 PM.png
Council,
Apologies as I didn't get to raise my hand in time for the public comment on the CIP.
To add, I am a big fan of using funds as a way to save money over time. I see online that the 2022 Annual Comprehensive Financial Report (ACFR)
shows the City had at the time $766
million in investment funds to play with (granted most of these funds are probably in long term investments that aren't liquid, but some may be liquid investments that could be transferred to the general fund now). I would see this funding as a source of funding to utilize towards the CIP to invest in major projects that would benefit from current investment and save costs from future repair, such as some of the garages mentioned during staff presentation.
I was told in the past that the smarter cities actually spent $ in 2008 during the crash rather than cutting funding and being conservative, which saved costs in labor/construction costs for public works projects.
I think about the math this way - the ~3% revenue increase these investment funds are gaining per year are losing to inflation and won't be more savings than current investment in projects that would save more money over time, thus reinvestment of investment funds into public works projects would be a better investment.
- I recommend Council ask about utilizing investment funds towards the CIP On Mon, Apr 15, 2024 at 6:46 PM Mason Fong <[email protected] > wrote:
Greetings Councilmembers,
Just wanted to share a few thoughts on the Council agenda tonight:
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Item #7: Investment Policy
1. The State government code restricts investments in crypto currencies. However, the State code does not restrict Cities from investing in convertible debt notes. From my non-expert perspective of the State Code, the City may be able to theoretically contact a company that is crypto-adjacent and make a deal to purchase a convertible debt note.
Example: The City of San Mateo contacts the company Microstrategy (MSTR) and requests to purchase a convertible debt note that would amortize much better than the City's current investments (which only bring in around 3% revenue/year), capitalizing on crypto market trends. Without explaining the complexities of Bitcoin and why it is a good asset to time through this funding strategy, just simply look at MSTR's
performance over the past year (which admittedly is cyclical and volatile). A special convertible debt note might be able to be agreed upon that produces a more positive result/return than the City's current investment vehicles. - I would recommend the Council inquire with City staff if a City could purchase a convertible debt note from a private company. If so, then this might be of merit in studying, especially to address the recurring structural deficit related to the VLF/ERAF issue.
Item #12: Capital Improvement Plan
1. Council should look at utilizing the City's Wastewater Treatment Facility as a revenue source, making a deal with any other water provider to sell your excess water to them.
This is something I explored while working in the City of San Jose between the City of San Jose and the Santa Clara Valley Water District and while as a Councilmember in the City of Sunnyvale.
- I would recommend Council ask questions of City staff to see what plans the City has to make water deals to generate revenue for the General Fund through the Wasterwater Treatment Facility. If no plans at this time, this should be prioritized for
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further study.
2. The Central Park Master Plan needs to incorporate the establishment of a permanent dog park and a permanent basketball court. The current pilot dog park also needs more resourcing in the form of a water station at the very least. We have baseball, softball, tennis, pickleball but no basketball, this should be changed. I currently travel to Foster City to play basketball with friends and have done so since growing up here. - I would recommend Council motion to 1) add a water station to the current pilot dog park & 2) direct City staff to return to Council at the next opportunity with a plan to incorporate a permanent dog park at Central Park and a permanent Basketball Court.
Item #13: Budget
1. The City should look at Pension Obligation Bonds (POBs) as a mechanism to ease UAL stresses on the budget and make smart investments that can pay off over time.
The City should consult with the City of San Jose's recent POB studies and hire consultants to look at this as a solution to addressing the City's recurring structural deficits resulting from the VLF/ERAF issue. If the State does not change the VLF/ERAF issue, the City must get creative to ensure high quality public services don't get cut over time and that city employees are protected in their pension outlooks.
Here is the study session
from the City of San Jose in 2021.
- I recommend the Council ask about POBs and direct City staff to return to Council at the next available time with a pro/con assessment of utilizing POBs either now or in the future to meet unfunded liabilities.
Here is a slide from that study session of the potential positive impacts of POBs:
Thank you for your consideration and for your public service. --
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CITY OF SAN MATEO
3 2
9 4
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: NEW BUSINESS File ID: 24-8572 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: April 15, 2024
SUBJECT:
General Fund 2024-25 Operating Budget – Preview and General Fund Ten-Year Forecast RECOMMENDATION:
Receive the General Fund 2024-25 operating budget preview and General Fund ten-year forecast BACKGROUND:
Development of the fiscal year 2024-25 budget has been underway since January, and the proposed budget document is beginning to take shape. Before finalizing the proposed budget for City Council approval at a public hearing in June, staff wishes to provide a preview of the General Fund’s 2024-25 budget estimates for Council comment and direction.
Additionally, this report includes a ten-year forecast of the General Fund to support budget planning discussions.
General Economic Conditions
This year’s budget development encountered notable challenges due to economic uncertainties, particularly concerning interest rates, inflation, and labor market conditions. Recent developments indicate that the U.S. and local economies remain strong. However, local government agencies continue to grapple with sustained inflation, a competitive labor market, and high interest rates. These factors collectively have placed downward pressure on real estate-related tax revenues and increased costs of providing municipal services. •Economic Growth: Real GDP increased at an annual rate of 3.4% in the fourth quarter of 2023 (chart 1) and is projected to maintain a trend growth of 2.4% for both 2024 and 2025. •Labor Market: The labor market remains robust with the U.S. unemployment rate stable at 3.8% as of March 2024 (chart 2), and nonfarm payroll employment adding 303,000 jobs, significantly more than the 200,000 jobs economists expected. San Mateo County’s unemployment rate, at 3.7%, is below the national average. •Inflation: Inflation, measured by the Core Personal Consumption Expenditure Price Index (PCE), decreased to 2.9% in February 2024 (chart 3). Reduction in core PCE index signifies easing inflation, yet it is still higher than the Fed’s long- term 2% target. As such, inflation remains a concern to the economy. •Interest Rates - From March 2022 through July 2023, the Federal Open Market Committee (FOMC) increased the federal funds rate eleven times in response to elevated inflation. Since July 2023, the federal funds rate has remained between 5.25% and 5.5%. In the Federal Reserve’s March 2024 policy meeting, the Fed decided to keep the interest rates unchanged, marking the fourth consecutive meeting the Fed kept interest rates on hold. With a strong labor market, the markets now anticipate the Fed will take a gradual and cautious approach on interest-rate adjustments (chart 4) and will likely wait until the latter half of 2024 before considering any rate cuts.
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CITY OF SAN MATEO
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9 4
Chart 1: U.S. Real GDP Growth Chart 2: U.S. Unemployment Rate Source: U.S. Bureau of Economic Analysis
Chart 3: Inflation - Personal Consumption
Expenditure (PCE) Index Year-Over-Year Change
Chart 4: Market Projections for Federal Fund Rate
General Fund 2024-25 Budget Preview
The 2024-25 budget preview offers a rough estimate of the General Fund’s revenues and expenditures at the baseline budget levels. While not providing exact figures, this provides an early review of the City’s financial standing.
Total General Fund revenues are projected to be $166.8 million, a $5.3 million (3.3%) increase compared to the 2023-24 mid-year projections. The assumptions for major tax revenues are noted below:
•Property Tax: Expected to reach $83.7 million, an increase of $5.3 million (or 6.8%) from the 2023-24 mid-year estimates, primarily due to secured property tax growth and assumed receipt of the 2022-23 VLF shortfall. •Sales Tax: Projected at $30.6 million, comprising $23.1 million of the local 1% (Bradley Burns) sales tax and $7.5 million of local 1/4% (Measure S) transaction tax. Sales tax annual growth is expected to be moderate at 1%-2%. •Real Property Transfer Tax (RPTT): Assumed to average $8 million, aligning with long-term baseline projections. •Transient Occupancy Tax (TOT): Anticipated to be at $4 million, reflecting a significant decrease from the previous projection of $7 million, due to the San Mateo Marriott closure.
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Total General Fund expenditures are expected to reach $177.3 million, up $5.6 million (or 3.3%) compared to the 2023-24 adopted budget.
Personnel costs, including salaries, wages, overtime, healthcare, and pension, are projected to be $88.2 million. As a full- service city, to provide core services, approximately half of the total General Fund expenditure is for employee compensation. It’s worth noting that the City’s annual contribution to SMC Fire for fire services is currently included under other operating costs. When factoring in the city’s share of SMC Fire’s personnel and legacy costs, the total personnel expenses will represent a higher percentage of the General Fund expenditures, approximately 68% rather than 50%.
The projected personnel cost reflects negotiated increases in employee compensation, rising healthcare expenses, and increases in pension contributions. The latter of which will begin increasing significantly in fiscal year 2024-25 as a result of the California Public Employees’ Retirement System (CalPERS) investment loss of negative 7.5% in fiscal year 2021-22. It is anticipated that the unfunded pension liability payment will continue to increase until it reaches its peak in 2030-31 before gradually decreasing.
Other General Fund expenditures include:
•Non-personnel operating expenditures, projected to be $76.1 million, which reflects preliminary baseline budget projections and inflation adjustments.
•Transfers out, anticipated to be $13.0 million, comprising of $8.0 million contributions to Capital Improvement Plan (CIP), of which $3.7 million from Measure S, $2.7 million from Measure S for debt service related to the 2020A Revenue Bonds issued for flood control and street rehabilitation projects, $2.0 million to replenish the General Liability Insurance Internal Service Fund’s fund balance, and $0.4 million annual contribution to the Equipment and Vehicle Replacement Fund for major building component replacement.
In summary, the General Fund total expenditures are projected to exceed total revenues in 2024-25, resulting in a budget deficit of approximately $10.5 million. It will require drawing on the General Fund’s Rainy Day Reserve to maintain core services and investments in CIP.
General Fund Ten-Year Forecast Scenarios
This year’s General Fund ten-year forecast has been challenging due to two major uncertainties: (1) VLF shortfalls and (2) the impacts of interest rates on real property-related tax revenues.
VLF Shortfalls
Property tax in-lieu of Vehicle License Fee (VLF) is a key component of the City’s property tax revenues, accounting for approximately 18% of total property tax revenues or approximately 10% of total General Fund revenues. As explained by the County of San Mateo in Attachment 2, currently there is no reliable funding source for VLF shortfalls. With more school districts shifting from non-basic-aid to basic-aid status, the County of San Mateo’s VLF shortfall continues to grow.
The county-wide VLF shortfalls are expected to be $70 million for fiscal year 2022-23 and $114 million for fiscal year 2023-
24. The City’s share of the countywide VLF shortfall is roughly 6%, translating to $4.2 million and $6.6 million for 2022-23 and 2023-24, respectively. Currently, there are only five non-basic-aid school districts remaining in the San Mateo County.
The County forecasts that all school districts will become basic-aid schools within the next 7-8 years. As such, the City’s VLF shortfall is projected to reach $24 million by 2034-35.
Historically, the State has reimbursed counties and cities for any in-lieu VLF shortfalls through a special appropriation in the State budget. However, as the county-wide VLF shortfalls continue to widen, the State’s willingness to fund this obligation may diminish, particularly during fiscal years when the State experiences significant deficits. As of this report, the State has not included the county-wide 2022-23 VLF shortfall of $70 million into its 2024-25 proposed budget.
Therefore, it is imperative for the county and cities in San Mateo County to continue advocating for the VLF revenue, as losing State funding on VLF shortfalls would severely impact to the City’s financial health. This funding should remain local as it is tax revenue remitted from property owners within the City and County.
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Interest Rates and Real Estate Market
Interest rates play an important role in the real estate market. High-interest rates are expected to restrain economic activity and serve the Fed’s goal to gradually bring inflation down to the target 2%. High-interest rates also dampen the real estate market, both residential and commercial. Over the last 13 years, the City’s real property assessed value has grown annually by an average of 6.9%. Due to high interest rates, the real estate market has shown signs of slowing down.
Property tax annual growth dropped to 5.5% in 2023-24 and is forecasted to further decline to 3.0% in 2024-25. If interest rates persist at elevated levels, the cooling effect on the real estate market will continue to impact the City’s tax revenues.
Staff remains optimistic about regional real estate demand, believing that once interest rates decrease, the real estate market will rebound. However, the timing and pace of interest rate cuts remain uncertain, posing a significant challenge to the long-range forecast.
SCENARIO ANALYSIS:
The General Fund ten-year forecast (Attachment 1) illustrates the fiscal challenges and uncertainties facing the City, particularly VLF shortfalls and the impact of high interest rates on tax revenues. To address these uncertainties, staff developed three scenarios - optimistic, pessimistic, and middle-ground - to outline potential fiscal outcomes, highlighting the needs for strategic planning and preparedness for various economic conditions to maintain the City’s long-term financial health.
Optimistic Scenario: This scenario projects the highest growth in revenue sources, assuming favorable budget conditions.
In this scenario, staff assumes that the State will backfill 100% of the City’s VLF shortfalls with a two-year gap and interest rates will start to decline within the next 12-24 months. Property tax, as the primary revenue source, is projected to experience significant annual growth (averaging 6% annually), alongside modest increases in other tax revenues. As shown in Attachment 1 – Scenario B, this scenario reflects robust economic growth and optimistic fiscal health. Although rising labor costs and unfunded pension liability continue to put pressure on the City’s operations, under this scenario, the General Fund maintains a healthy balance. It projects that after a few years of operating deficits, the General Fund will start having surplus in the second half of the 10-year forecast, with its fund balance returning to the $100 million level by 2034-35.
Pessimistic Scenario: As shown in Attachment 1 – Scenario C, the State refuses to backfill the VLF shortfalls, resulting in significant revenue loss for the county and cities in San Mateo County. In addition, this scenario assumes that interest rates remain high and property tax experiences 3% annual growth for the next two fiscal years before aligning with the 4% long-term growth rate again. With slower growth in secured property tax and the possibility of losing VLF revenue, this scenario presents the most conservative projections. If realized, the results would be devastating for the City. And the City would need to make drastic cuts to service levels to balance the budget. It highlights the importance of continuing to advocate for the VLF revenue and exercising cautious fiscal management.
Middle-Ground Scenario: Reflected in Attachment 1 – Scenario A is the middle ground scenario, which represents a balanced forecast, assuming a 4% year-over-year growth for property tax, reduced VLF revenues, RPTT at $8 million baseline, TOT at $4 million baseline, and moderate growth in all other major revenues. In this scenario, the General Fund faces a structural deficit. The General Fund total fund balance decreases to $31 million in 2034-35, which is just enough to cover 15% of the General Fund’s operating expenses.
OTHER CHALLENGES
City Facilities and Infrastructure Needs
In the April 15 meeting, Public Works staff will present a five-year CIP Budget Preview to the City Council, detailing the funding needs for City facilities and infrastructure improvements. As outlined in Attachment 1, the three scenarios for the General Fund ten-year forecast were developed based on an assumption of $7.25 million baseline annual contribution to CIP from the General Fund. The baseline CIP contributions include $4.25 million from the main General Fund and $3.0 million from Measure S (a General Fund sub-fund). The City’s funding needs for CIP far exceed these baseline annual
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contributions, not to mention the City still has over $300 million in unfunded CIP projects. This underscores the substantial gap between current funding levels and the actual needs for capital improvements.
Pension Costs
Due to the high degree of market volatility, CalPERS reported an investment loss of negative 7.5% in FY 2021-22, missing its long-term investment goal of 6.8%. As a result, the City’s unfunded pension liabilities went up $101 million, driving the City’s total unfunded pension liabilities to nearly $300 million. This investment loss will be amortized over a 20-year period, beginning in FY 2024-25.
As shown in Chart 5, the City’s pension costs consist of two components: (1) normal cost and (2) unfunded accrued liability (UAL) payment. While normal costs are projected to be steady and growing at a moderate pace, UAL payments are projected to increase significantly. Due to the 2021-22 investment loss, the City will pay an additional $2 million to $8 million annually for UAL during the five-year ramp-up period (2024-25 through 2028-29). Once the five-year ramping has been completed, the increase in pension contributions is projected to be an additional $10 million per year for four years (2029-30 through 2032-33), as compared to that for 2023-24, before gradually decreasing. The General Fund’s share of the UAL payments is roughly 86% of the citywide UAL, translating to an additional $2.1 million and $2.9 million for 2024-25 and 2025-26, respectively, and then an additional $4 to $8 million per year until it peaks in 2030-31 before the UAL requirements start to ramp down.
Chart 5: Citywide All Funds - Pension Outlook
Source of information: CalPERS pension outlook. * UAL payment includes Fire UAL legacy costs and is projected under the annual prepayment option.
RECOMMENDATIONS AND STRATEGIES
In light of the uncertainties surrounding VLF and real estate market recovery, staff recommends taking the middle ground approach for the City's long-term planning. More information, particularly regarding VLF funding, may become available in June. Staff will continue to provide the City Council with updates and refined forecasting.
Under the optimistic scenario, if the City continues to receive 100% VLF shortfalls from the State and the real estate market rebounds and remains strong, the General Fund’s deficits will be temporary. While the City may not have sufficient resources to fully fund all CIP needs, it will be able to maintain core services and support baseline annual contributions to fund essential CIP projects. Under the middle ground scenario, however, the City is projecting to face a structural deficit issue and will be required to take actions to balance the budget.
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Currently, the City’s General Fund is in a strong fiscal position with an estimated $109.9 million in reserves at the end of the current fiscal year 2023-24. The estimated reserves include $39.4 million allocated to the Operating Reserve, $5.9 million assigned to the Housing Set Aside, $8.3 million committed to CIP Projects, and $56.4 million for the Rainy Day Reserve.
In contrast to the City’s limited fiscal position during the Great Recession, the City Council’s prudent fiscal discipline during the period of recovery and growth post-Great Recession placed the City’s General Fund in a solid position. This enabled the City to draw on its Rainy Day Reserve in times of economic uncertainties. As such, the City has the resources to navigate these uncertainties in the next 12-24 months. It also gives the City time to plan for measurable actions to address the budget deficit issue and meet CIP funding needs.
NEXT STEP:
Any feedback and/or direction received from the Council as a result of this report and supporting presentation will be incorporated into the recommended FY 2024-25 budget and corresponding long-term financial plan. Staff anticipates delivering the budget to the City Council with a public hearing and budget adoption in June.
BUDGET IMPACT:
There is no direct budgetary impact resulting from this report. The financial status of the General Fund will continue to be monitored. Updated final estimates will be incorporated into the recommended 2024-26 Business Plan.
ENVIRONMENTAL DETERMINATION:
This report is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - General Fund Ten-Year Forecast
Scenario A – Middle Ground
Scenario B – Optimistic
Scenario C – Pessimistic
Att 2 - Conceptual Overview of the VLF shortfall in San Mateo County
STAFF CONTACT
Karen Huang, Finance Director
[email protected]
(650) 522-7110
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Attachment 1
General Fund Ten-Year Forecast
Scenario A - Middle Ground
Note: Directional estimates are provided solely to facilitate budget planning discussions *Revenue Assumptions on Property Tax:
(1) Property assessed values (AV) grow 4% annually.
(2) Property tax in-lieu of VLF (VLF): Assuming the City will receive VLF revenue, but only at reduced levels. $80.6 $78.4 $83.7 $85.5 $88.8 $92.4 $96.0 $99.8 $103.7 $107.7 $111.9 $116.3 $120.9 -10
10 30
50 70
90 110
130
150
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund - Top 4 Tax Revenues
(in millions)
Property Tax* Sales Tax (including Measure S) Property Transfer Tax TOT 0 50
100
150
200
250
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Revenues vs. Expenses
(in millions)
Operating Expenses (Baseline) Contribution to CIP Total Revenues $117.9
$109.9
$99.4
$90.4
$80.5
$70.8
$60.1
$50.4
$41.7
$35.5 $31.2 $30.2 $31.7
0 20
40 60
80 100
120
140
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Balance Forecast
(in millions)
General Fund - Ending Fund Balance 25% Operating Reserve $-
$5
$10
$15
$20
$25Millions
VLF Forecast
Middle-Ground Scenario: Reduced Revenue
VLF available VLF shortall backfilled by State VLF Middle-Ground Scenario VLF Best Scenario VLF Worst Scenario VLF entitlement
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General Fund Ten-Year Forecast Attachment 1
Scenario A - Middle Ground (continued)
Note: Directional estimates are provided solely to facilitate budget planning discussions 10-YEAR FORECAST
GENERAL FUND 2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35
REVENUES
Property Tax* $80.6 $78.4 $83.7 $85.5 $88.8 $92.4 $96.0 $99.8 $103.7 $107.7 $111.9 $116.3 $120.9 Sales Tax (including Measure S) 29.6 29.9 30.6 31.2 31.8 32.4 33.1 33.7 34.4 35.1 35.8 36.5 37.2 Property Transfer Tax 7.4 7.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 TOT 6.1 5.3 4.0 4.1 4.2 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Other Taxes 12.4 10.1 9.9 10.1 10.2 10.4 10.6 10.7 10.9 11.1 11.3 11.5 11.7 Charges for Services, Fees and Other 29.7 30.8 30.7 31.5 32.4 33.3 34.3 35.3 36.3 37.3 38.4 39.5 40.6 Total Revenues 165.9 161.5 166.8 170.4 175.4 180.7 186.3 191.9 197.8 203.8 210.1 216.5 223.3
EXPENDITURES
Personnel Costs 67.7 68.7 75.3 77.7 79.5 81.1 82.7 84.3 86.0 87.8 89.5 91.3 93.1 Non-Personnel Costs 34.8 37.7 39.9 40.4 42.2 43.8 45.5 46.9 48.5 50.0 51.7 53.3 55.1 SMC Fire and Legacy Costs 32.8 34.3 36.1 37.7 39.0 40.3 42.0 43.1 44.3 45.2 46.2 46.9 47.9 Pension Unfunded Liability 11.7 11.4 13.0 13.3 14.3 15.0 16.5 17.0 17.3 16.8 16.7 15.8 15.5 Debt Service and Other Transfer Out 4.6 4.1 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Operating Expenses (Baseline) 151.6 156.3 169.3 172.2 178.0 183.2 189.7 194.4 199.2 202.8 207.1 210.4 214.6 Contribution to CIP 7.9 13.2 8.0 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 Total Expenditures 159.5 169.5 177.3 179.4 185.3 190.5 196.9 201.7 206.4 210.1 214.3 217.6 221.8 Surplus / (Deficit) 6.4 (8.0) (10.5) (9.0) (9.9) (9.7) (10.7) (9.7) (8.6) (6.2) (4.2) (1.1) 1.5 General Fund - Beginning Fund Balance 111.5 117.9 109.9 99.4 90.4 80.5 70.8 60.1 50.4 41.7 35.5 31.2 30.2 General Fund - Ending Fund Balance $117.9 $109.9 $99.4 $90.4 $80.5 $70.8 $60.1 $50.4 $41.7 $35.5 $31.2 $30.2 $31.7 Assumptions:
(1) Property assessed values grow 4% annually.
(2) Property tax in-lieu of VLF (VLF): City will receive VLF revenue, but only at reduced levels. 2 of 6
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General Fund Ten-Year Forecast Attachment 1
Scenario B - Optimistic
Note: Directional estimates are provided solely to facilitate budget planning discussions *Revenue Assumptions on Property Tax:
(1) Property assessed value (AV) annual growth will slow down in the next two years, then rebound to 6% annual growth thereafter. (2) Property tax in-lieu of VLF (VLF): Assuming the State will backfill 100% of the VLF shortfall (with 2-year gap).
80.6 78.4 83.7 88.4 89.8 94.0
101.8
108.6
115.7 120.5 122.8 128.1
137.5
-10
10 30
50 70
90 110
130
150
General Fund - Top 4 Tax Revenues
(in millions)
Property Tax* Sales Tax (including Measure S) Property Transfer Tax TOT 0 50
100
150
200
250
General Fund Revenues vs. Expenses
(in million)
Operating Expenses (Baseline) Contribution to CIP General Fund Total Revenues $117.9
$109.9
$99.4
$93.2
$84.4
$76.3 $71.4 $70.4 $73.8
$80.3
$86.9
$97.7
$115.8
0 20
40 60
80 100
120
140
General Fund Balance Forecast
(in millions)
General Fund - Ending Fund Balance 25% Operating Reserve $12
$8
$12
$16
$11
$14
$16
$13 $13
$16
$18
$20 $20
$16 $16
$19
$-
$5
$10
$15
$20
$25Millions
VLF Forecast
100% Backfilled by State (with 2-Year Gap)
VLF available VLF shortall backfilled by State VLF - Best Scenario VLF entitlement 3 of 6
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General Fund Ten-Year Forecast Attachment 1
Scenario B - Optimistic (continued)
Note: Directional estimates are provided solely to facilitate budget planning discussions 10-YEAR FORECAST
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35
REVENUES
Property Tax* 80.6 78.4 83.7 88.4 89.8 94.0 101.8 108.6 115.7 120.5 122.8 128.1 137.5 Sales Tax (including Measure S) 29.6 29.9 30.6 31.2 31.8 32.4 33.1 33.7 34.4 35.1 35.8 36.5 37.2 Property Transfer Tax 7.4 7.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 TOT 6.1 5.3 4.0 4.1 4.2 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Other Taxes 12.4 10.1 9.9 10.1 10.2 10.4 10.6 10.7 10.9 11.1 11.3 11.5 11.7 Charges for Services, Fees and Other 29.7 30.8 30.7 31.5 32.4 33.3 34.3 35.3 36.3 37.3 38.4 39.5 40.6 General Fund Total Revenues 165.9 161.5 166.8 173.2 176.4 182.4 192.0 200.7 209.8 216.6 220.9 228.4 239.9
EXPENDITURES
Personnel Costs 67.7 68.7 75.3 77.7 79.5 81.1 82.7 84.3 86.0 87.8 89.5 91.3 93.1 Non-Personnel Costs 34.8 37.7 39.9 40.4 42.2 43.8 45.5 46.9 48.5 50.0 51.7 53.3 55.1 SMC Fire and Legacy Costs 32.8 34.3 36.1 37.7 39.0 40.3 42.0 43.1 44.3 45.2 46.2 46.9 47.9 Pension Unfunded Liability 11.7 11.4 13.0 13.3 14.3 15.0 16.5 17.0 17.3 16.8 16.7 15.8 15.5 Debt Service and Other Transfers 4.6 4.1 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Operating Expenses (Baseline) 151.6 156.3 169.3 172.2 178.0 183.2 189.7 194.4 199.2 202.8 207.1 210.4 214.6 Contribution to CIP 7.9 13.2 8.0 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 General Fund Total Expenditures 159.5 169.5 177.3 179.4 185.3 190.5 196.9 201.7 206.4 210.1 214.3 217.6 221.8 Surplus / (Deficit) 6.4 (8.0) (10.5) (6.2) (8.9) (8.1) (4.9) (0.9) 3.4 6.5 6.6 10.8 18.1 General Fund - Beginning Fund Balance 111.5 117.9 109.9 99.4 93.2 84.4 76.3 71.4 70.4 73.8 80.3 86.9 97.7 General Fund - Ending Fund Balance $117.9 $109.9 $99.4 $93.2 $84.4 $76.3 $71.4 $70.4 $73.8 $80.3 $86.9 $97.7 $115.8 Assumptions:
(1) Property assessed value annual growth will slow down in the next two years and rebound to 6% annual growth thereafter. (2) Property tax in-lieu of VLF (VLF): Assuming the State will backfill 100% of the VLF shortfall (with 2-year gap). 4 of 6
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General Fund Ten-Year Forecast Attachment 1
Scenario C - Pessimistic
Note: Directional estimates are provided solely to facilitate budget planning discussions *Revenue Assumptions on Property Tax:
(1) Property assessed value (AV) annual growth will slow down in the next two years, then align with the long-term growth rate at 4% per year. (2) Property tax in-lieu of VLF (VLF): Assuming the State will refuse to pay local VLF shortfall. $80.6 $78.4 $83.7 $80.4 $81.3 $82.3 $85.9 $88.5 $93.8 $95.2 $96.5 $96.8 $100.7 -10
10 30
50 70
90 110
130
150
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund - Top 4 Tax Revenues
(in millions)
Property Tax* Sales Tax (including Measure S) Property Transfer Tax TOT 0 50
100
150
200
250
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Revenues vs. Expenses
(in millions)
Operating Expenses (Baseline) Contribution to CIP General Fund Total Revenues $117.9 $109.9
$99.4
$85.3
$67.9
$48.1
$27.3
$6.3
($12.2)
($31.0)
($50.7)
($71.2)
($89.9)
-150
-100
-50
0 50
100
150
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Balance Forecast
(in millions)
$8
$12
$16
$11
$14
$9
$7
$5 $6 $5
$7
$5
$3
$- $-
$12 $13 $14
$15 $16 $16 $17 $18 $18 $19 $20 $21 $21 $22 $23 $24
$-
$5
$10
$15
$20
$25Millions
VLF Forecast
State Refuses to Backfill VLF Shortfall
VLF available VLF shortall backfilled by State VLF - Worst Scenario VLF entitlement 5 of 6
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General Fund Ten-Year Forecast Attachment 1
Scenario C - Pessimistic (continued)
Note: Directional estimates are provided solely to facilitate budget planning discussions 10-YEAR FORECAST
GENERAL FUND 2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35
REVENUES
Property Tax* $80.6 $78.4 $83.7 $80.4 $81.3 $82.3 $85.9 $88.5 $93.8 $95.2 $96.5 $96.8 $100.7 Sales Tax (including Measure S) 29.6 29.9 30.6 31.2 31.8 32.4 33.1 33.7 34.4 35.1 35.8 36.5 37.2 Property Transfer Tax 7.4 7.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 TOT 6.1 5.3 4.0 4.1 4.2 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Other Taxes 12.4 10.1 9.9 10.1 10.2 10.4 10.6 10.7 10.9 11.1 11.3 11.5 11.7 Charges for Services, Fees and Other 29.7 30.8 30.7 31.5 32.4 33.3 34.3 35.3 36.3 37.3 38.4 39.5 40.6 General Fund Total Revenues 165.9 161.5 166.8 165.3 167.9 170.6 176.2 180.6 187.8 191.3 194.7 197.1 203.1
EXPENDITURES
Personnel Costs 67.7 68.7 75.3 77.7 79.5 81.1 82.7 84.3 86.0 87.8 89.5 91.3 93.1 Non-Personnel Costs 34.8 37.7 39.9 40.4 42.2 43.8 45.5 46.9 48.5 50.0 51.7 53.3 55.1 SMC Fire and Legacy Costs 32.8 34.3 36.1 37.7 39.0 40.3 42.0 43.1 44.3 45.2 46.2 46.9 47.9 Pension Unfunded Liability 11.7 11.4 13.0 13.3 14.3 15.0 16.5 17.0 17.3 16.8 16.7 15.8 15.5 Debt Service and Other Transfer Out 4.6 4.1 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Operating Expenses (Baseline) 151.6 156.3 169.3 172.2 178.0 183.2 189.7 194.4 199.2 202.8 207.1 210.4 214.6 Contribution to CIP 7.9 13.2 8.0 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 General Fund Total Expenditures 159.5 169.5 177.3 179.4 185.3 190.5 196.9 201.7 206.4 210.1 214.3 217.6 221.8 Surplus / (Deficit) 6.4 (8.0) (10.5) (14.1) (17.4) (19.8) (20.7) (21.0) (18.6) (18.8) (19.6) (20.6) (18.7) General Fund - Beginning Fund Balance 111.5 117.9 109.9 99.4 85.3 67.9 48.1 27.3 6.3 (12.2) (31.0) (50.7) (71.2) General Fund - Ending Fund Balance $117.9 $109.9 $99.4 $85.3 $67.9 $48.1 $27.3 $6.3 ($12.2) ($31.0) ($50.7) ($71.2) ($89.9) Assumptions:
(1) Property assessed value annual growth will slow donw in the next two years, then grow 4% annually. (2) Property tax in-lieu of VLF (VLF): Assuming the State refuse to pay local VLF shortfall. 6 of 6
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IMPORTANT NOTE: This slide presentation was prepared by the County Executive’s Office with input from the County Attorney’s Office. The purpose of this slide presentation is to provide a conceptual overview of the VLF shortfall in San Mateo County. Local school funding, Prop. 98, the administration of the local property tax system, and the calculation and funding of VLF are all complex processes based on detailed legal and fiscal frameworks, a comprehensive description and explanation of which are beyond the scope of this slide presentation. All examples and figures have been simplified for explanatory purposes.
Specific data on the distribution of local property taxes among taxing jurisdictions in San Mateo County can be reviewed in the annual Property Tax Highlights for San Mateo County, published by the San Mateo County Controller’s Office and available at https://www.smcgov.org/controller/property-tax-highlights.
The explanatory text contained in this presentation describe the specific graphics and examples depicted in these slides. The text and notes of the slides are not intended as independent explanations of concepts separate from the the specific graphics and slides to which they are attached and should not be cited or quoted as such. 1 Overview of the Vehicle License Fee Shortfall
in San Mateo County
Attachment 2
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• Under Prop. 13 and its implementing legislation, the 1% general tax levy is divided among all local taxing jurisdictions.
• On a countywide basis in San Mateo County, local school districts in FY22-23 were apportioned approximately 52% of the general levy, with the rest divided among the cities, special districts, County, and RDA successor agencies. To simplify the discussion, this graphic shows a 50/50 split between school districts, on one hand, and cities, special districts, and the County, on the other .
2 • County
• Cities
• Special Districts
School Districts
1% General Levy
Local Property Tax Apportionment
Attachment 2
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• Because the funding mechanism of VLF is intertwined with the manner of local school district funding, it’s important to start with an overview of how local K-12 school districts get funded. [Note: community college districts and county offices of education are subject to a similar funding framework, but the focus of this presentation is on K-12 schools].
• Historically, school district funding was driven primarily by the amount of local property taxes apportioned to each local district, as represented by the blue bars of varying heights on this slide.
3 School District B
School District C
School District D
K-12 School District Funding
School District A
Attachment 2
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• In 1988, Prop. 98 obligated the State to guarantee that every district receives a minimum amount of per-student funding. This minimum funding guarantee was previously known as the “revenue limit” but is now known as the Local Control Funding Formula or LCFF .
• When a local school district’s local property tax revenues are equal to or exceed the LCFF (represented by School District D in this graphic), it is known as a Basic Aid school district. The State has no obligation to provide additional funding to this school district to meet its minimum funding guarantee other than the constitutionally required minimum funding, or “basic aid,” which is approximately $120/student. 4 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District B
School District C
School District D
K-12 School District Funding
School District A
Attachment 2
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• School districts that do not receive sufficient local property tax revenue to meet the LCFF (represented by school districts A, B, and C in this graphic) are known as Non-Basic - Aid Districts (non-BA districts). For these districts, the State is obligated under Prop. 98 to provide the additional funding needed by each district to fill the gap (represented by the red bracket in this graphic) between the minimum funding guarantee, or LCFF , and the amount of local property tax revenue received by each district. 5 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District B
School District C
School District D
K-12 School District Funding
School District A
Attachment 2
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• As part of efforts to address the State’s budget crisis in the early 1990s, the State created the Educational Revenue Augmentation Fund, or ERAF , as an additional source of local funding for school districts to help meet the State’s minimum funding obligation. • To understand how this funding mechanism works, we return to the graphic of the allocation of the 1% general tax levy among local jurisdictions. 6 • County
• Cities
• Special Districts
School Districts
1% General Levy
ERAF (Education Revenue Augmentation Fund)
Attachment 2
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• The ERAF framework involves a complex set of calculations and processes, but at a conceptual level, it shifts of a certain amount of local property taxes from the cities, County, and special districts, and makes those funds available to satisfy the State’s Prop. 98 guarantee to fund non-BA districts up to their LCFF . 7 • County
• Cities
• Special Districts
School Districts
1% General Levy
ERAF (Education Revenue Augmentation Fund)
ERAF
Attachment 2
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• Let’s return to the graphic depicting school district funding prior to the creation of ERAF to show the impact of ERAF .
• The State’s obligation to fill the gap between each non-BA district’s local property tax revenue and the minimum funding guarantee is represented by the red brackets. 8 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District B
School District C
School District D
School District
K-12 School District Funding - ERAF
School District A
Attachment 2
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• Under the ERAF framework, each non-BA school district now receives an ERAF entitlement, represented by the orange block.
• The State is still obligated under Prop. 98 to provide any additional funding needed for each non-BA district to meet the LCFF , but because of the ERAF allocation to non-BA school districts, the gap that the State must fill is now reduced (represented by School Districts A & B in this example) or even eliminated (School District C). • While this graphic represents only a theoretical example of a mix of four school districts in a county, it approximates the funding landscape in the vast majority (~52) of counties in the State: while there may be some basic aid districts, most districts are non-BA, and even after ERAF is distributed to non-BA districts, the State must still provide additional funding to non-BA districts to fill them up to their LCFF . • In San Mateo County, the ERAF entitlement is sufficient to fill each non-BA district to its LCFF . In other words, all school districts in San Mateo County as of 2023-24 fall into the situation generally represented by either School District C or D in this graphic. 9 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
School District
K-12 School District Funding - ERAF
School District A
School District C
School District B
ERAF
ERAF
ERAF
Attachment 2
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• Let’s return to the basic K-12 school funding model. The school district funding environment is dynamic, and multiple factors may cause the gap between the amount of local property taxes received by a non-BA school district and the LCFF to shrink or even be eliminated, causing a non-BA district to “turn basic aid” (the reverse also occurs but is not the primary focus of this presentation).
• There are two key factors that contribute to a district turning basic aid. 10 LCFF (Local Control
Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Key Factors for a School District Turning Basic Aid
School District A
School District C
ERAF
ERAF
School District B
Attachment 2
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• First, a school district’s local property tax revenues might grow relatively faster than the LCFF . This is depicted in this graphic by a relatively higher blue bar for School District C. 11 LCFF (Local Control
Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Key Factors for a School District Turning Basic Aid
School District A
School District C
ERAF
ERAF
School District B
Attachment 2
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• Second, the minimum funding guarantee (calculated on a per-student basis) for a school district could become relatively lower, for example, due to lower enrollment caused by local demographic changes or disenrollment from the public school district. This would have the effect, as depicted here, of a lower LCFF for School District C. 12 LCFF (Local Control
Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Key Factors for a School District Turning Basic Aid
School District A
School District C
ERAF
ERAF
School District B
Attachment 2
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• What is the result when these sorts of dynamics play out across all non-BA districts? • School District C now receives sufficient local property tax revenues to exceed the LCFF . It has now “turned basic aid,” and the State no longer has any obligation to provide additional funding to meet the minimum funding guarantee.
13 LCFF (Local Control
Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Key Factors for a School District Turning Basic Aid
School District A
School District C
ERAF
ERAF
School District B
Attachment 2
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• School District A is still non-BA, but with just its ERAF entitlement, it now has sufficient funding to meet its minimum funding guarantee. The State does not have to provide any additional funding to this district despite the fact that it is still non-BA. [Note: this is the case for all non-BA districts in San Mateo County.]
• School District B still requires additional State funding to meet its minimum funding guarantee, but the gap that the State must fill is reduced. • Because of the change in dynamics with School Districts A and C, the full ERAF entitlement is no longer needed to fund these districts to their LCFF. By law, after funding non-basic aid schools to their LCFF (as well as certain special education costs), the unneeded portion of ERAF (termed “excess ERAF” under the statute) must be returned to the contributing jurisdictions from which that revenue was originally shifted. In other words, that portion of ERAF must be returned to the cities, special districts, and County. For this reason, locally we call this “Returned ERAF”. • Note: ERAF is returned to the contributing taxing agencies only after all school districts are funded to at least their LCFF amount. School districts that meet their LCFF level through their own property tax apportionment (i.e., basic aid districts) cannot receive ERAF by law, and those funds must be returned to the contributing agencies.
14 LCFF (Local Control
Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Key Factors for a School District Turning Basic Aid
School District A
School District C
ERAF
ERAF
ERAF
School District B
ERAF
Attachment 2
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• The VLF (annual amount paid to register a vehicle in California) has been a long-standing traditional source of funding for local government. As a key component of local jurisdictions’ general fund budgets, it funds core local services including public safety, health, housing, and other critical local services.
• The 2004 State budget compromise involved a complex set of measures and tradeoffs both at the State and local levels needed to address the State budget deficit, the full scope of which is beyond the focus of this presentation. Significantly, the 2004 budget compromise included the VLF swap statute, which fundamentally revised the VLF framework.
• Key components for our purposes:
• The statute de-coupled the VLF revenues for local jurisdictions from the actual amounts received by the State for vehicle registration. • The funding obligation to local governments became known as the “in-lieu” VLF payment. It is payable to local jurisdictions from the property tax and ERAF entitlements of non-BA school districts (who are in turn, backfilled by the State).
This statutory funding mechanism is described in the next slides. • The statute expressly provides that the VLF swap shall not reduce Returned (Excess) ERAF .
• The growth of the in-lieu VLF payment was tied to the growth rate of local assessed values.
15 School District
In-Lieu Vehicle License Fee (VLF)
• Part of budget compromise of 2004
• Created State’s In-lieu VLF payment obligation to counties and cities (VLF no longer tied to vehicle registration
collected by State)
• VLF growth tied to local assessed value growth
Attachment 2
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• This graphic depicts how the State meets its in-lieu VLF funding obligation through the funding for local school districts.
• We start with the basic model of K-12 local school funding, where non-BA districts receive their property tax apportionments, ERAF entitlements, and the State additional funding to meet their LCFF .
16 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
School District
In-Lieu VLF Funding Sources
School District A
School District C
School District B
ERAF
ERAF
ERAFERAF
Attachment 2
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• Under the VLF statute, the local auditor-controller, who administers the local property tax system, uses the property taxes and ERAF entitlements that would otherwise go to non-BA districts to pay the State’s in-lieu VLF obligation to the cities and county (green bracket in this graphic).
17 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
School District
In-Lieu VLF Funding Sources
School District A
School District C
School District B
ERAF
ERAF
ERAFERAF
VLF In-Lieu
VLF In-Lieu
VLF In-Lieu
Attachment 2
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• The State then backfills those districts dollar-for-dollar up to their LCFF (red brackets). • NOTE: the non-BA school districts are held harmless in this process. Both before and after the VLF swap statute, those districts receive their full LCFF amount as guaranteed by the State under Prop. 98. They receive their minimum per-student funding guarantee in both scenarios.
• Further NOTE: Even though the VLF framework calls for the State’s In-lieu VLF funding obligation to be paid in the first instance from non-BA districts’ ERAF and property taxes, the State still effectively pays the full in-lieu VLF amount to cities and counties because the State backfills the non-BA schools for every dollar of their property taxes and ERAF that is used to pay the in-lieu VLF obligation.
18 LCFF (Local Control Funding Formula)
Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
School District
In-Lieu VLF Funding Sources
School District A
School District C
School District B
ERAF
ERAF
ERAFERAF
VLF In-Lieu
VLF In-Lieu
VLF In-Lieu
Attachment 2
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• In San Mateo County and 2 other counties, there is a shortfall created when the available funding sources in the VLF swap statute are insufficient to fully cover the State’s in-lieu VLF payment obligation to cities and counties. This is due in part to the phenomenon of districts turning basic aid. Two examples will demonstrate conceptually how this works.
• In example 1, the in-lieu VLF obligation of $110M is paid through the property taxes and ERAF of non-BA districts (A, B, and C), which are more than sufficient to satisfy the obligation.
19 Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
School District
Vehicle License Fee Shortfall
School District A
School District C
School District B
ERAF
ERAF
ERAFERAF
School District C
4010
30 10
20 10 VLF Funding Example 1:
VLF Obligation – $110M
Available Sources -$120M
Attachment 2
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• In example 2, School District C has turned basic aid through the dynamics described earlier in this presentation.
20 Non-Basic Aid Districts Basic Aid Districts
School District
School District
School District D
Vehicle License Fee Shortfall
School District A
School District C
School District B
ERAF
ERAF
ERAFERAF
School District C
Attachment 2
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• Now, because School District C’s property taxes and ERAF are no longer available to fund the VLF obligation, in example 2 there is only $70M in available sources under the VLF framework, resulting in a $40M shortfall.
• NOTE: While VLF and excess ERAF are two distinct sources of revenue to which counties and cities are entitled, both are impacted by a school district turning basic aid. However, as this graphic shows, the loss in available revenue sources to fund the VLF obligation caused by a district turning basic aid (in this example, $50M) is greater than any impact on excess ERAF (here, $10M).
21 Non-Basic Aid Districts Basic Aid Districts
School District
School District D
Vehicle License Fee Shortfall
School District A
School District C
School District B
ERAF
ERAF
ERAF
School District C
VLF In-Lieu
VLF In-Lieu
School District C
School District C
ERAF
4010
30 10
20 10
VLF Funding Example 2:
VLF Obligation - $110M
Available Sources - $70M
Shortfall: $40M
Attachment 2
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22 What Happens When There Is a VLF Shortfall?
• The VLF Swap Statute does not specify how the State funds its in-lieu VLF obligation when the specified funding sources are insufficient to fully satisfy amounts owed to the cities and county. • If there is a shortfall, the county auditor controller files a claim with the State/DOF requesting payme nt to county and cities
• Statewide, only 3 counties (and cities within) experience VLF shortfalls: San Mateo, Alpine and Mono • All other 55 counties (and cities within) receive their full annual VLF revenue amounts from the State through the funding mechanism specified in the VLF Swap Statute
• Historically, the State has always made counties and cities whole by reimbursing any in-lieu VLF shortfalls through a special appropriation in the State budget. • In years when the State has failed to include VLF shortfall amounts in the proposed budget, the counties and cities have relied on their state delegations to advocate for the inclusion of the reimbursement in the enacted State budget.
Attachment 2
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General Fund
2024-25
Budget Preview &
Ten-Year Forecast
April 15, 2024
1 231 of 302
Agenda
• General Fund
• Challenges
• 2024-25 Budget Preview
• 10-Year Forecast
• Budget Strategies and Planning
• Questions and Feedback
2 232 of 302
Background
January 2024 February 2024 April 2024 June 2024
Budget
Kickoff
February 20
2023-24 Mid-Year
Updates
April 15
2024-29 CIP
Preview
2024-25 Budget
Preview
June 3
Proposed Budget
Public Hearing
June 17
Budget Adoption
Public Hearing
Budget Process
3 233 of 302
General Fund Challenges
4 • Costs of providing essential city services
• Fund long-term, legally-obligated
liabilities
• Maintain and repair city facilities
• Provide for infrastructure needs
Costs to
Provide City
Services
Long-Term
Obligations
City Facilities
&
Infrastructure
Revenues
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General Fund Challenges
VLF
Shortfall
a major threat to
the city’s fiscal
stability
High
Interest
Rates
negative impact
on tax revenues
Two Major Uncertainties
5 235 of 302
General Fund Budget Preview FY 24-25
6 General Fund FY 2024-25
Revenues Estimates
$166.8 million
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General Fund Budget Preview FY 24-25
General Fund FY 2024-25
Expenditure Estimates
$177.3 millionPersonnel
Costs*
120.5
68%
Non-
Personnel
Costs
43.8 25%
Debt
Service and
Other
Transfers
5.0 3%
Contribution
to CIP
8.0 4%
*Personnel Costs included
the City’s share of SMC
Fire personnel costs and
legacy costs.
(shown in millions)
7 237 of 302
2024-25 Budget Highlights
Revenues:
• Property Tax: annual growth slows down to 3%
• VLF: Assuming the State will backfill the FY 22-23 VLF shortfall of $4.2 million • TOT – baseline $4 million (dropped from $7 million baseline) Expenditures:
• High inflation put pressure on operating expenses
• Pension Cost will rise starting in FY 2024-25 – additional $2 million • Contribution to CIP: $7.25 million
8 238 of 302
General Fund Budget Preview FY 24-25
Account Type
2023-24
Mid-Year
Projection
2024-25
Baseline Budget
Estimates
Changes in $
Total Revenues $161.5 $166.8 $5.3
Total Expenditures 169.5 177.3 7.8
Deficit ($8.0) ($10.5) ($2.5)
*shown in millions
9 239 of 302
General Fund Balance
*shown in millions
GENERAL FUND
2023-24
MID-YEAR
PROJECTION
2024-25 BASELINE
BUDGET
ESTIMATES
Up (Down) $
Total Revenues 161.5$ 166.8$ 5.3$ Total Expenditures 169.5 177.3 7.8 Surplus / (Deficit) (8.0)$ (10.5)$ (2.5)$ Beginning Fund Balance 117.9 109.9 (8.0) Ending Fund Balance 109.9$ 99.4$ (10.5)$ 10 240 of 302
General Fund Balance
*shown in millions
GENERAL FUND
2023-24
MID-YEAR
PROJECTION
2024-25 BASELINE
BUDGET
ESTIMATES
Up (Down) $
25% Operating Reserve 39.4$ 41.7$ 2.4$ Housing Reserve 5.9 7.0 1.1 Committed to CIP 8.3 8.0 (0.3) Rainy Day Reserve 56.3 42.7 (13.6) Ending Fund Balance 109.9$ 99.4$ (10.5)$ 11 241 of 302
General Fund 10-Year Forecast
3 Scenarios
• Optimistic
• Pessimistic
• Middle-Ground
12 242 of 302
General Fund 10-Year Forecast
Expenditure Assumptions:
• Personnel Costs
• Salaries and Wages – increase with general alignment of historical CPI • Medical Costs – an annual growth rate of 6.5%
• Pension Costs – based on CalPERS valuation data
• Non-Personnel Costs – 4% compounded annual growth rate was used for FY 2024-25 and 2025-26, then 3% for the out years in the forecast • Transfer Out – $7.25 million of baseline annual contribution to CIP , and required debt service
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General Fund 10-Year Forecast
Expenditures
*shown in millions. Personnel Costs included the City’s share of SMC Fire personnel costs and legacy costs. 159.5 169.5 177.3 179.4 185.3 190.5 196.9 201.7 206.4 210.1 214.3 217.6 221.8 -
50.0 100.0
150.0
200.0
250.0
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Expenditures
Personnel Costs* Non-Personnel Costs Debt Service and Other Transfers Contribution to CIP General Fund Total Expenditures
68%
Personnel
Costs
27% Non-
Personnel
Costs
14 244 of 302
General Fund 10-Year Forecast
Contributions to CIP
7.9 13.2
2024-25
Baseline
Budget Est., 8.0
-
2.0 4.0
6.0 8.0
10.0 12.0
14.0 2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 Annual Contribution to CIP
*shown in millions.
Actuals Mid-Year Est. Forecast
$7.25 million baseline
15 245 of 302
General Fund 10-Year Forecast
Pension Costs
2023-24, $17.3
2030-31, $26.1
$0
$5
$10
$15
$20
$25
$30
General Fund Forecast
Pension Costs (in millions)
Normal Cost UAL Payment, including Fire Legacy Costs
16 246 of 302
General Fund 10-Year Forecast
17 Revenue Assumptions:
• Sales Tax stays relatively flat with moderate 1-2% increase • TOT – baseline $4 million (dropped from $7 million baseline) • Property Transfer Tax – baseline $8 million
• Fees and Other Revenues – moderate growth
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General Fund 10-Year Forecast
Sales Tax
2024-25 Budget
Estimates, $30.6
$0
$5
$10
$15
$20
$25
$30
$35
$40
Sales Tax (in million)
Actuals Mid-Year Est. Forecast
Note: including ¼ transaction tax for Measure S 18
248 of 302
General Fund 10-Year Forecast
Transient Occupancy Tax
2024-25 Budget
Estimates, $4
$0
$1
$2
$3
$4
$5
$6
$7
$8
Transient Occupancy Tax (TOT)
(in millions)
Actuals Mid-Year Est. Forecast
19 249 of 302
General Fund 10-Year Forecast
Real Property Transfer Tax
2024-25 Budget
Estimates, $8
$0
$2
$4
$6
$8
$10
$12
$14
$16
Real Property Transfer Tax (RPTT)
(in millions)
Actuals Mid-Year Est. Forecast
$8 million baseline
20 250 of 302
General Fund 10-Year Forecast
21 Revenue Assumptions:
Property Tax – depending on the outcome of the two major uncertainties:
Property Tax: Optimistic Scenario Pessimistic Scenario Middle Ground Scenario VLF Shortfalls 100% State Backfilled
(2-year gap)
State refuses to backfill Reduced-levels
Housing Market Strong growth @ 6% 3%-4% growth 4% growth
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Property Tax in-lieu of VLF (VLF)
$12 $13 $14
$15 $16 $16 $17 $18 $18 $19 $20 $21 $21 $22 $23 $24
$-
$5
$10
$15
$20
$25Millions
VLF Entitlement
VLF available VLF shortfall VLF entitlement
22 252 of 302
Property Tax in-lieu of VLF (VLF)
$12
$8
$12
$16
$11
$14
$16
$13 $13
$16
$18
$20 $20
$16 $16
$19
$-
$5
$10
$15
$20
$25Millions
VLF Shortfall 100% Backfilled by State (with 2-Year Gap) VLF available VLF shortall backfilled by State VLF - Best Scenario VLF entitlement 23 253 of 302
Property Tax in-lieu of VLF (VLF)
24 $8
$12
$16
$11
$14
$9
$7
$5 $6 $5
$7
$5
$3
$- $-
$12 $13 $14
$15 $16 $16 $17 $18 $18 $19 $20 $21 $21 $22 $23 $24
$-
$5
$10
$15
$20
$25Millions
State Refuses to Backfill VLF Shortfall
VLF available VLF shortall backfilled by State VLF - Worst Scenario VLF entitlement VLF Revenues
$118 million
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Property Tax in-lieu of VLF (VLF)
$-
$5
$10
$15
$20
$25Millions
Middle-Ground Scenario: Reduced Revenue
VLF available VLF shortall backfilled by State VLF Middle-Ground Scenario VLF entitlement 25 255 of 302
Housing Market – Mortgage Rates
6.88%
26 256 of 302
Housing Market – Single Family Residences
$-
$0.5
$1.0
$1.5
$2.0
$2.5
0 50
100
150
200
250
Millions
Median Sales Price Inventory Sold Average Days on Market 27 257 of 302
General Fund 10-Year Forecast
Optimistic Scenario
0 50
100
150
200
250
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Revenues vs. Expenses
(in million)
Operating Expenses (Baseline) Contribution to CIP General Fund Total Revenues $117.9
$109.9
$99.4
$93.2
$84.4
$76.3 $71.4 $70.4 $73.8
$80.3
$86.9
$97.7
$115.8
0 20
40 60
80 100
120
140
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Balance Forecast
(in millions)
General Fund - Ending Fund Balance 25% Operating Reserve • VLF Shortfall 100% Backfilled by the State of California (with 2-year gap) • Strong Housing Market – Averaging 6% AV Annual Growth 28 258 of 302
General Fund 10-Year Forecast
Pessimistic Scenario
• State refuses to fund its VLF obligation
• Slowdown in Housing Market – Averaging 3%-4% AV Annual Growth 0 50
100
150
200
250
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Revenues vs. Expenses
(in millions)
Operating Expenses (Baseline) Contribution to CIP General Fund Total Revenues $117.9 $109.9
$99.4
$85.3
$67.9
$48.1
$27.3
$6.3
($12.2)
($31.0)
($50.7)
($71.2)
($89.9)
-150
-100
-50
0 50
100
150
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Balance Forecast
(in millions)
29 259 of 302
General Fund 10-Year Forecast
Middle Ground Scenario
0 50
100
150
200
250
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Revenues vs. Expenses
(in millions)
Operating Expenses (Baseline) Contribution to CIP Total Revenues • State backfills some VLF revenues, but at reduced levels • Housing Market – Averaging 4% AV Annual Growth
$117.9
$109.9
$99.4
$90.4
$80.5
$70.8
$60.1
$50.4
$41.7
$35.5 $31.2 $30.2 $31.7
0 20
40 60
80 100
120
140
2022-23
Actuals
2023-24
Mid-Year
Estimates
2024-25
Baseline
Budget
Est.
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 General Fund Balance Forecast
(in millions)
General Fund - Ending Fund Balance 25% Operating Reserve 30 260 of 302
Budget Strategies and Planning
• Assumes continued weakness in General Fund revenues until • Interest rates decrease and housing market rebounds
• VLF shortfall funding issue is resolved
• Short-term
• Reliance on Rainy Day Reserve
• Long-term
• Address the funding needs for operational and CIP needs 31 261 of 302
Budget Strategies and Planning
• Measurable Actions
• Cost Recovery
• Use special and restricted funding first
• Grant funding opportunities
• Potential Revenue Measure
• Citywide Financial Sustainability Plan
• Develop a Comprehensive Reserve Policy
32 262 of 302
Council Feedback & Direction
Approach for General Fund Long-Range Planning
• Optimistic
• Pessimistic
• Middle-Ground (staff recommended)
33 263 of 302
Q&A
Karen Huang
Finance Director
[email protected]
650-522-7110
34 264 of 302
CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 Section Name: NEW BUSINESS Account Number: 10-1311 File ID: 24-8609 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: April 15, 2024
SUBJECT:
City Manager, City Attorney, Department Head and Deputy Director Compensation Plan – Amendment RECOMMENDATION:
Adopt a Resolution to amend the Compensation Plan to: 1) add Juneteenth, June 19th as an annual holiday; 2) increase the salary range for the Police Chief classification; and 3) increase the salary range for the Human Resources Director classification.
BACKGROUND:
Juneteenth, June 19th
On February 22, 2024, Juneteenth was recognized by City Council as an annual Citywide holiday beginning this year. The proposed resolution (Attachment 1) recommends updating the City Manager, City Attorney, Department Head and Deputy Director Compensation Plan to include Juneteenth, June 19th, as an additional holiday.
Police Chief and Human Resources Director Salary Increases The City Council determines the salary and benefits compensation for employees. The directors and deputy directors are not represented by a bargaining group, and their salary ranges are determined by the City Council. The department heads are at-will employees and serve at the pleasure of the City Manager. In February 2024, HR retained the services of Bryce Consulting to conduct a total compensation study of the director and deputy director classifications utilizing the market survey agencies listed in the City’s Management Association Memorandum of Understanding to set the top salary range.
Byrce Consulting determined that other department head and deputy director classifications in the City are also behind market/below median. Staff anticipates bringing those department head and deputy director compensation adjustment recommendations to the Council this fall, commensurate with the completion and outcome of negotiations with multiple labor groups.
The Police Chief classification last received an increase to its salary range on March 5, 2023. The compensation study showed the Police Chief salary range is 11.9% below market median. A review of the top salary steps between the Police Chief and the highest-level subordinate Police Captain, which belongs to the Management Safety bargaining group, shows a salary difference of 18%. With the upcoming 3% salary increase for Management Safety employees on June 23, 2024, the salary difference between the Police Chief and the Police Captain will be 15%. Based on the total compensation survey data and the salary compaction analysis, the proposed resolution recommends a twelve percent (12.0%) salary range increase for the Police Chief classification effective April 28, 2024. This salary range would be approximately 4.2% below the current salary for the City Manager, and 26.2% above the salary range of the highest-level subordinate, Police Captain.
The Human Resources Director classification last received an increase to its salary range on March 5, 2023. The compensation study showed the Human Resources Director salary range is 3.2% below market median. The recent executive search was unsuccessful as it did not result in a hire. Based on the total compensation survey and consistent
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CITY OF SAN MATEO
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with the City’s compensation philosophy to pay competitive salaries in order to attract and retain highly qualified employees, the proposed resolution recommends a three and a half percent (3.5%) salary range increase for the Human Resources Director classification effective April 28, 2024.
Pursuant to City Charter Section 4.02, the City Council provides for the compensation of all officers and employees and salaries shall be fixed by resolution. Title 2 of the California Code of Regulations (CCR), Section 570.5, requires the City Council to adopt a full salary schedule, as a standalone document detailing the rates of pay for each City classification, and to maintain this salary schedule as a publicly available document for at least five years. CalPERS uses this salary schedule to determine the “compensation earnable” when calculating the monthly pension an individual will receive when they retire. “Compensation earnable” is defined by the Public Employees’ Retirement Law (PERL) Government Code Sections 20636, and 20636.1 as pay rate and special compensation as defined in the statutes.
BUDGET IMPACT:
There is no budget impact associated with the approval of Juneteenth, June 19th, as an additional holiday. Approval of the Police Chief’s salary increase will cost an estimated $8,300 in fiscal year 2023-24, which can be absorbed within the department’s operating budget. Beginning in fiscal year 2024-25, this salary increase will be built into the Police Department’s personnel budget. Approval of the Human Resources Director’s salary increase will have no budget impact in fiscal year 2023-24. Beginning in fiscal year 2024-25, this salary will be built into the Human Resources Department’s personnel budget.
ENVIRONMENTAL DETERMINATION:
This action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Resolution
Exhibit A - City Manager, City Attorney, Department Head, Deputy Director Compensation Plan Att 2 - Track Changes Exhibit A - City Manager, City Attorney, Department Head, Deputy Director Compensation Plan
STAFF CONTACT
Shawnna Maltbie, Interim Director of Human Resources
[email protected]
650.522.7276
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CITY OF SAN MATEO
RESOLUTION NO. ___ (2024)
APPROVING AMENDMENTS TO THE DEPARTMENT HEAD
AND DEPUTY DIRECTOR COMPENSATION PLAN
WHEREAS, the Department Heads are not represented by a bargaining group, and compensation is determined by the City Council; and,
WHEREAS, executive positions consist of the at-will heads of city departments who serve at the pleasure of the City Manager; and,
WHEREAS, a consolidated compensation plan specific to the Department Heads and Deputy Directors has been set forth in a resolution; and,
WHEREAS, the City Council recognizes Juneteenth, June 19th, as a Citywide holiday beginning this year; and,
WHEREAS, the addition of Juneteenth, June 19th, to the compensation plan will have not have a budget impact; and,
WHEREAS, the total compensation survey and compaction analysis recommends a twelve (12.0%) increase to the Police Chief salary range effective April 28, 2024; and, WHEREAS, the resolution results in an estimated $8,300 in fiscal year 2023-24; and, WHEREAS, for Fiscal Year 2024-25, this salary increase will be built into the Police Department’s personnel budget; and,
WHEREAS, the total compensation survey and the City’s compensation philosophy to pay competitive salaries for recruitment and retention purposes recommends a three and a half percent (3.5%) increase to the Human Resources Director salary range effective April 28, 2024; and, WHEREAS, the resolution results in no budget impact in fiscal year 2023-24; and, WHEREAS, for Fiscal Year 2024-25, this salary increase will be built into the Human Resources Department’s personnel budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This City Council action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).
2. The addition of Juneteenth, June 19 th, to the Consolidated City Manager, City Attorney, Department Head and Deputy Director Compensation Plan, as a City holiday, is approved.
3. The amendments to the Consolidated City Manager, City Attorney, Department Head and Deputy
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Director Compensation Plan, for the Police Chief and Human Resources Director classifications, are approved as follows:
Salary Increases effective April 28, 2024:
12.0% increase for Police Chief
3.5% increase for Human Resources Director
4. The Consolidated City Manager, City Attorney, Department Head and Deputy Director Compensation Plan, including the salaries set forth in Exhibit A Attachment 1 attached hereto are approved.
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EXHIBIT A
CONSOLIDATED CITY MANAGER, CITY ATTORNEY, DEPARTMENT HEAD AND DEPUTY DIRECTOR
COMPENSATION PLAN
SALARY
Successful employee performance is a key factor in determining compensation.
Salaries have been established for the City Manager and the City Attorney. The current amounts are listed in Attachment 1.
A three-step salary range has been established for each Department Head and Deputy Director classification. The proposed salary ranges for the Police Chief classification with a twelve percent (12.0%) increase, and the Human Resources Director classification with a three and a half percent (3.5%) increase are listed in Attachment 1. Salary placement is based upon performance review and experience.
The City Manager is authorized to offer unrepresented management employees or potential unrepresented management employees, on a case by case basis, additional fringe benefits incentives, not to exceed 10% of the position’s base salary.
TEMPORARY UPGRADE PAY
In the event the City Manager determines that it is necessary to assign a Department Head or Deputy Director to perform all of the duties of a higher paid classification for two or more consecutive workweeks, he/she shall receive payment for the higher classification for the entire duration of the assignment. The City Manager shall set the salary within the established salary range. Except with the approval of the City Manager, a temporary upgrade assignment shall not continue for longer than one year.
When an employee performs a significant portion but not all of the duties of a higher paid classification, the employee may petition the City Manager for a differential in pay of up to 10%, to be determined by duties assigned for this work out of class.
EMERGENCY WORK
In the event a City Council declared emergency necessitates the devotion of excessive working time by certain management employees in order to maintain essential public services, the City Manager may authorize overtime on a case-by-case basis. Such authorization shall terminate upon cessation of the City Council declared emergency.
PERSONAL TRAINING
Department Heads and Deputy Directors are encouraged to attend instructional programs, conferences and seminars as available in the department’s budget. If the cost to attend exceeds $2,000, attendance must be pre-approved by the City Manager.
LEAVE ACCRUALS
Employees shall accrue vacation leave, sick leave and holiday leave on a pro-rata basis in proportion to regular hours on the payroll. Credit shall not be received for time off without pay. Vacation leave, sick leave, and holiday credits shall accrue from date of appointment.
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Absences of less than four hours shall not be deducted from leave balances. Employees are expected to work a minimum of 40 hours per week, with schedules that may vary from day to day based on workplace needs.
HOLIDAYS
The holidays to be observed are as follows:
A. New Year's Day, January 1st
B. Martin Luther King's Birthday, 3rd Monday in January C. President's Day, 3rd Monday in February
D. Memorial Day, last Monday in May
E. Juneteenth, June 19th
F. Independence Day, July 4th
G. Labor Day, 1st Monday in September
H. Veteran's Day, November 11
I. Thanksgiving Day, 4th Thursday in November
J. The day after Thanksgiving
K. Christmas Day, December 25th
L. Every day approved by the City Council as a public holiday, public fast, or a day of mourning M. Three (3) floating holidays to be taken on working days mutually agreeable to the employee and the department. Employees shall accrue twelve (12) hours of floating holiday time during the first full pay period in January and July each year.
If a holiday falls on Sunday, the following Monday shall be observed. If a holiday falls on Saturday, the preceding Friday shall be observed as the holiday. If a holiday falls on one’s regularly scheduled day off, holiday time shall be granted.
In the event holidays fall while an employee is on vacation leave, such holidays shall not be charged as vacation leave.
Employees have a forty (40) hour maximum holiday accumulation.
Realizing that not all Safety Department Heads and Safety Deputy Directors are able to take holidays when they fall, as determined by the City Manager, such managers shall be compensated by being placed on a bi-weekly holiday factor. Holiday leave shall never accumulate to more than eighty (80) hours. Effective with the pay period starting December 29, 2019, such managers shall be compensated by receiving holiday-in-lieu pay at the rate of 5.0% of base pay each pay period.
VACATION
Vacations are essential to the employee's welfare and they are granted by the City to allow employees relaxation and rest from their duties. It is the policy of the City not to allow the excess accumulation of vacation leave. All full-time employees shall be entitled to vacation leave with pay as provided below after completion of continuous service with the City. The time at which an employee may take vacation shall take into consideration the needs of the City.
Employees shall accrue a vacation allowance at the rate of 20 days per year for the first 12 years of service, 22.5 days per year for 13 through 23 years of service, and 25 days per year at the beginning of 24 years of service. The above allowances shall be pro-rated for employees beginning employment or leaving employment with the City during a biweekly pay period.
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The City Manager is authorized to provide at-will department heads with vacation accrual based upon the number of years of prior service with public entity employers. The City Manager and City Attorney are provided with this benefit.
The City Manager can provide new Department Heads and Deputy Directors with a balance of up to 80 hours of vacation leave upon hire. The City Manager and City Attorney are provided with this benefit.
Department Heads and Deputy Directors may not accrue more than two times (2x) their vacation leave.
Employees who leave employment shall be paid the straight-time salary equivalent in a lump sum for all accrued vacation leave earned. Such compensation for prorated vacation of separated employees shall be paid by adding or deducting from his or her final paycheck.
VACATION SELL BACK
An employee may make an irrevocable election to sell back to the City eighty (80) hours of accumulated vacation at the employee’s established rate of pay per calendar year. At the time of election, the employee must already have taken a minimum of two (2) weeks’ vacation in the preceding twelve (12) months.
Requests must be received by Payroll no later than December 31 for the following year elections. No employee can elect to sell back more than their annual vacation accrual. Elected hours not requested for distribution (sell back) by December 1 will be automatically distributed in the next pay period (sell back cannot be more than the hours available at time of distribution).
EXECUTIVE LEAVE
Department Heads and Deputy Directors shall accrue forty-eight (48) hours per year of executive leave, on a pay period basis. Executive leave shall have a maximum balance of eighty (80) hours. Department Heads and Deputy Directors may sell back up to forty (40) hours per calendar year, following the procedures outlined in ‘VACATION SELL BACK’.
A Department Head may recommend to the City Manager that an additional amount of executive leave be authorized for a Deputy Director, up to an additional forty (40) hours. This additional leave may be granted based on excessive hours, the value of the extraordinary effort, and the performance of the employee. The City Manager has full discretion in deciding whether to grant additional leave. In the event that the additional hours take the employee over the eighty (80) hour maximum, they must sell back any hours above the maximum accumulation allowable.
SICK LEAVE
The purpose of sick leave is to continue the compensation of employees who must remain off their jobs because of illness or disability. Such sick leave is a privilege which employees can exercise in the event of his/her bona fide illness or disability or in the event their presence away from work is essential because of illness, death or disability of their immediate family.
For full-time employees, leave shall be accrued at the rate of 3.7 hours for each biweekly pay period (12 days per year). Unused sick leave shall be accumulated. Any employee who is on paid leave shall continue to earn sick leave. An employee who is on leave without pay shall not accrue sick leave. Sick leave shall accrue during an absence due to a work-related disability.
The City Manager can provide new Department Heads and Deputy Directors with up to 80 hours of sick leave upon hire. The City Manager and City Attorney are provided with this benefit.
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A Department Head is responsible for determining that only bona fide personal or family sick leave is taken, consistent with standards established by the City. This may include the submission of a doctor’s certificate with prior notice.
Protected Sick Leave
Protected sick leave may be taken and if taken, shall be charged to sick leave, vacation, holiday, or executive leave for the following reasons:
oThe diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee.
oThe diagnosis, care or treatment of an existing health condition of, or preventative care for, an employee’s family member.
oAn employee who is a victim of domestic violence, sexual assault, or stalking.
Employee family member means parent, spouse, domestic partner, son, daughter, domestic partner’s child, sibling, stepchildren, mother-in-law, father-in-law, grandparents and grandchildren.
Not more than six (6) days of such protected sick leave shall be granted in any one (1) calendar year.
However, if extenuating circumstances exist in the opinion of the City Manager, a reasonable extension of the six (6) day limit may be granted. Any additional leave so granted shall be charged against the worker's sick leave accumulation.
Family Care Leave
In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible workers for up to 12 weeks per rolling 12-month period. The City-wide policy will adhere to applicable Federal and State laws.
Bereavement
In the event of a death in the immediate family, employees may take accrued sick leave of up to three (3) days (two (2) shifts for 56-hour employees), or up to five (5) days at the discretion of the City Manager. Bereavement Leave shall be tracked separately from Protected Sick Leave. In this context, immediate family shall be defined as: spouse, domestic partner, child, foster child who resided with the employee at the time of his/her death, stepchild, mother, father, stepmother, stepfather, mother-in- law, father-in-law, brother, stepbrother, sister, stepsister, brother-in-law, sister-in-law, grandmother, grandfather, spouse’s grandmother, spouse’s grandfather, son-in-law, daughter-in-law or grandchildren.
Sick Leave Payout
Upon service or disability retirement, employees shall be paid fifty (50%) of their accrued sick leave up to a maximum of four hundred eighty (480) hours payment; see “DEFERRED COMPENSATION AND RETIREMENT HEALTH SAVINGS ACCOUNT (RHSA)” section for more details. No payments of sick leave shall be due or owed to anyone who is terminated by the City.
DISABILITY LEAVE
The purpose of this Section is to continue the compensation of employees who must remain off their jobs as a result of disability occasioned or injury received as a result of the discharge of their duties as employees of the City. The Department Head is responsible for determining that only bona fide disability leave is taken.
For each disability, employees shall be allowed disability leave up to and including sixty (60) working days. Such disability leave shall be at full pay, less the amount paid by Workers' Compensation.
Disability in excess of that provided in this Section shall be compensated for only under the provisions of the Workers' Compensation Act of the State of California
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If the sixty (60) working days is exhausted, additional time off may be charged to sick leave with the following exception; employees shall not be charged sick leave for that portion of their salary for which temporary disability payments are received under the State Worker's Compensation Law.
Additional compensation may be awarded by Resolution of the City Council to employees disabled or injured in line of duty, if recommended by the City Manager.
JURY LEAVE
Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee notifies their Department Head immediately of the notice of jury duty.
MILITARY LEAVE
Military leave shall be granted by the City in accordance with the provisions of State and Federal laws.
LEAVE OF ABSENCE WITHOUT PAY
Regardless of the combination of paid and unpaid leave used, a leave of absence shall not exceed twelve (12) months in duration, unless otherwise required by law.
Leaves of absence may be granted in cases of illness; in cases of personal emergencies, including childbirth; for education and training; or when such absences would not be contrary to the best interests of the City. Any request for leave of absence shall be made in writing for review and approval by the City Manager.
LONG TERM DISABILITY INSURANCE
The City shall provide long-term disability insurance providing for a sixty (60) day elimination period, subject to prior exhaustion of accrued sick leave or other applicable benefits, and payment of a monthly benefit equivalent to sixty-six and two-thirds percent (66 ⅔%) of full basic monthly salary less any deductible benefits.
SOCIAL SECURITY
Social Security for miscellaneous employees is paid equally by the City and the employee at 6.2% on the Social Security Wage Base. Safety employees hired on or after April 1, 1986 pay 1.45% as the Medicare cost of Social Security.
RETIREMENT
Retirement benefits shall be compensated for under applicable legislation pertaining to the California Public Employees’ Retirement System (CalPERS). The City currently provides the following retirement benefits:
Safety
o3% @ 50 Formula with Single Highest Year Final Compensation for safety employees hired before December 9, 2012.
o3% @ 55 Formula with highest average annual pensionable compensation earned during 36 consecutive months of service for “classic” members hired on or after December 9, 2012. o2.7% @ 57 Formula with highest average annual pensionable compensation earned during 36 consecutive months of service for “new” members hired on or after January 1, 2013. o1959 Survivor Benefit Level 4
oCOLA 2% in retirement
oDeath Benefit (DB) Continues (spouse continues to get DB after remarriage)
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oPre-Retirement Option 2 DB (If retirement eligible employee dies prior to retirement, spouse can elect to get ongoing retirement benefits)
oMilitary Service Buyback
oRetired Death Benefit (DB) $500
oPrior Service Credit
oPeace Corps: VISTA Buyback
Classic members with the 3% @ 50 Formula or 3% @ 55 Formula pay 50% of the total normal cost rate.
The contributions toward employer rate will be pre-tax under 414(h)2. New members of PERS hired after January 1, 2013 with the 2.7% @ 57 Formula pay 50% of the normal cost rate. The contributions toward employer rate will be pre-tax under 414(h)2.
Miscellaneous
o2% @ 55 Formula with single highest year compensation for “classic members” hired before December 9, 2012
o2% @ 55 Formula with three-year final compensation for “classic members” hired on or after December 9, 2012
o2% @ 62 Formula with three-year final compensation for “new members” hired on or after January 1, 2013
oSocial Security Coverage
oCOLA 2% in retirement
oDeath Benefit (DB) Continues (spouse continues to get DB after remarriage) oPre-Retirement Option 2 DB (If retirement eligible employee dies prior to retirement, spouse can elect to get ongoing retirement benefits)
oMilitary Service Buyback
oRetired Death Benefit (DB) $500
oPrior Service Credit
oPeace Corps: VISTA Buyback
Classic members with the 2% @ 55 Formula pay 50% of the total normal cost rate. The contributions toward employer rate will be pre-tax under 414(h)2. New members hired after January 1, 2013 with the 2% @ 62 Formula pay 50% of the normal cost rate. The contributions toward employer rate will be pre- tax under 414(h)2.
HEALTH INSURANCE
The City shall make contributions on behalf of employees eligible for Group Medical Coverage under the various plans available to the City in the amounts necessary to a maximum contribution of $160.00 per employee per month. The City's health contribution during part-time employment shall be made on a pro rata basis in accordance to hours on the payroll.
The City shall make available to eligible current and retired employees, benefits equal to the Meyers-Geddes State Employees' Medical and Hospital Care Act.
FLEXIBLE BENEFITS PLAN
All contributions to the flexible benefits plan are contingent upon compliance with state and federal rules and regulations. Benefits shall be taxed as required by law.
The City shall contribute up to $1,797.71 (inclusive of the $160 maximum City contribution towards group medical insurance) per month towards the flexible benefit plan.
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On January 1, 2019 and each January during the term of this Agreement, the City’s contribution to the Plan will be increased up to 100% of the Bay Area Kaiser Single rate, 90% of the Bay Area Kaiser Two-Party rate, and 90% of the Bay Area Kaiser Family rate.
If an employee is eligible for alternative group medical insurance through a spouse or domestic partner’s employer-sponsored medical plan, or through a parent’s insurance, the employee may waive the City’s medical insurance coverage and select such alternate plan. Proof of such alternate coverage is required prior to waiving coverage through the City plan. Any employee who waives medical coverage entirely shall be eligible to receive $160.00 per month as taxable income.
LIFE INSURANCE
The City shall provide $50,000 life insurance and $10,000 accidental death and dismemberment insurance without regard to membership in any health plan.
DENTAL INSURANCE
The City shall provide dental care benefits for employees and their dependents including domestic partners. The dental benefits 100/80/80 include a maximum calendar year payment of $3,000 and 50% orthodontic coverage with a $3,500 lifetime maximum.
VISION INSURANCE
Vision Benefits include an annual exam, lenses, and frames with an annual deductible of twenty-five dollars ($25).
MONTHLY AUTO ALLOWANCE OR MILEAGE ALLOWANCE
The City Manager and City Attorney shall receive a $375.00 monthly allowance. With City Manager approval, department heads shall receive a $375.00 monthly auto allowance.
Upon department head recommendation and City Manager approval, certain deputy directors shall receive a $300.00 monthly auto allowance.
Employees that do not receive a monthly auto allowance and must use their private vehicles for official city business shall be reimbursed at the IRS established rate.
UNIFORM ALLOWANCE
The Police Chief and Deputy Police Chief shall receive $36.73 per pay period.
DAMAGE REIMBURSEMENT
Safety employees shall be reimbursed the reasonable value of any personal equipment or clothing damaged or destroyed in discharging duties under stress or strain where normal caution cannot be exercised.
HOUSING ASSISTANCE
It shall be the policy of the City to assist newly appointed Charter Officers, consisting of the City Manager, City Attorney and Department Heads, to reside within the City of San Mateo by making available, as part of their compensation, a secured loan of City funds to acquire local housing. Said loans shall be made available only upon the following terms and conditions:
oIt shall constitute a part of the compensation for said employees’ services, to be evidenced by a separate written agreement entered into at or near the time of initial appointment. oThe loan shall not exceed an amount which is equal to four (4) times the appointee’s annual compensation.
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oThe loan shall be available only upon residential property within the City which is, in fact, the residence of the employee, and shall be due and payable in full upon termination of the employment.
oThe loan must be secured to the satisfaction of the City Council, and evidenced by a promissory note secured by a deed of trust, which shall be due and payable in full upon sale or transfer of the property, or upon termination of the employment of the employee borrower, whichever occurs first.
oThe interest rate initially charged on the loan shall equal the interest rate received by the City on the investment of all City funds for the most recently concluded calendar year, as calculated and determined by the City Treasurer. The initial interest rate shall remain constant for five years from date of the initial agreement and shall thereafter be adjusted on each fifth anniversary of the agreement to the interest rate received by the City for the then most recently concluded calendar year.
DEFERRED COMPENSATION AND RETIREMENT HEALTH SAVINGS ACCOUNT (RHSA) Employees are eligible to participate in the City-offered 457 deferred compensation plans. All contributions to deferred compensation plans and retirement health savings accounts are contingent upon compliance with state and federal rules and regulations.
Effective September 10, 2017, the RHSA Plan was modified regarding contributions and separation pay to reflect the following:
Safety Department Heads hired by the City before June 1, 2000:
o1% City contribution to deferred compensation
oNo leave balances to RHSA upon separation from City Service Safety Department Heads hired by the City on or after June 1, 2000:
o1% City contribution to RHSA
o100% of eligible sick leave, and 100% of discretionary leave to RHSA upon separation from City Service
Miscellaneous Department Heads hired before January 1, 1977:
o2% Employee/City match to deferred compensation
o0.5% City contribution to deferred compensation
o100% of eligible sick leave, and 50% of discretionary leave, to RHSA upon separation from City Service
City Manager, City Attorney, and Miscellaneous Department Heads hired on or after January 1, 1977:
o2% Employee / City match to RHSA
o0.5% City contribution to deferred compensation
o100% of eligible sick leave, and 100% of vacation leave, to RHSA upon separation from City service Safety Deputy Directors:
o2% Employee contribution to RHSA
o1% City contribution to deferred compensation
o100% of eligible sick leave, and 100% of vacation leave, to RHSA upon separation from City Service Miscellaneous Deputy Directors:
o$50.00 per pay period employee contribution to RHSA
o2% Employee / City match to deferred compensation
o0.5% City contribution to deferred compensation
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o100% of eligible sick leave to RHSA upon from City service
SEVERANCE
Employees separating from the City shall not be allowed to remain on the payroll after their last day at work. Severance payment shall be provided in a lump-sum for all leave accrual eligible for payout. The intent of this paragraph is to prevent employees from running out vacation and thereafter not returning to work or returning for only a very short time period.
With City Manager approval, Department Heads shall be eligible for severance payment equal to as much as six months of base salary and six months benefits payment or continuation of benefits upon involuntary termination without “just cause”.
PROFESSIONAL DUES
Upon request, the City shall pay a reasonable amount for membership dues for one professional organization for each employee.
PERFORMANCE EVALUATIONS
Employee performance goals are set early in the evaluation year. A mid-year review of the employee’s progress towards completing the performance goals should occur. A written evaluation shall be completed by the supervisor and reviewed with the employee at the end of the evaluation year.
EMPLOYMENT PROVISIONS SPECIFICALLY FOR DEPUTY DIRECTORS
PROBATIONARY PERIOD
The probationary period is the length of time required for an employee to become proficient in his/her position, and for the Department Head to adequately judge the proficiency. The standard probationary period shall be twelve months, but the Department Head may shorten or lengthen it by up to six months depending on the proven proficiency of the probationer.
LIMITED DURATION POSITION
The City may hire employees in limited duration positions (non-permanent positions) that will not exceed three (3) years for any of the following reasons: (1) where the position is created for a project(s) or work that is expected to be completed within three (3) years; (2) where the position is funded by grant funds of three (3) or less years in duration; or (3) where the position is funded by moneys from capital or enterprise funds that may be unavailable after three (3) years. Employees shall be informed of the duration of the position at the time of employment. At the end of the position’s duration, employment shall terminate and the employee shall not have layoff rights, bumping rights, severance payments or reemployment rights. This provision shall supersede Personnel Rule Sections 1 (13) and (24). Should an employee who was originally hired to fill a limited duration position be later appointed to a permanent merit position, his/her hire date will be that date that service began in the limited duration position.
CONTINUOUS SERVICE
Continuous service shall mean service in any merit classification since original appointment with the City, excluding any time prior to a break in service. One (1) year of completed continuous service shall include, but not be limited to, all time while the employee is on sick leave and/or vacation leave.
Neither military leave nor leave of absence without pay shall constitute an interruption in computing continuous service. However, leaves of absence without pay of over one month shall not be included when computing length of continuous service for vacation purposes.
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LAYOFF
Whenever, in the judgment of the City Council, it becomes necessary to abolish a position(s), including the reduction of work hours over twenty percent (20%) per year, the employee(s) displaced shall be deemed to be laid off (employees may accept an hours reduction in excess of twenty percent (20%) without exercising their layoff rights). The rights of employees affected by the abolishment of positions by the City Council shall be hereafter set forth.
Seniority for purposes of layoff need not be continuous and shall include total accumulated length of service under the following types of appointment:
oEmergency appointment under SMMC 2.57.60(h) or previous SMMC Section 2.57.020 (11). oRegular appointment under SMMC 2.57.080.
oProvisional appointment under SMMC 2.57.070(d).
oAppointment as City Manager's assistants under SMMC 2.57.060(a) from a position in the classified service.
oAppointment as a Department Head under SMMC 2.57.060(d) from a position in the classified service.
In the case of ties, seniority shall be determined on the basis of greater hire date seniority, then by random number if necessary.
Seniority for Layoff Purposes
oThe least senior employee in the classification from which the position is abolished is to be first laid off. Prior to layoff of regular employees, temporary and/or provisional employees in the same classification will be laid off first. For purposes of initial layoff, seniority means time in the classification in question. Flexibly staffed positions will be considered a single classification for layoff purposes.
oFor the purposes of Bumping Rights, seniority is defined as seniority within the classification and seniority in a directly related higher classification; i.e., a classification that is within the promotional line and has a higher salary.
Bumping Rights
Employees laid off may elect to be reassigned to a formerly held classification in any Unit held by an employee with less seniority as defined in 22.2, provided the following conditions are met:
oThe formerly held classification exists and has positions allocated and budgeted. Formerly held position includes successor classification if determined by the City to exist. A successor classification exists where the Personnel Board has changed the title of a position or included new duties in the same titled classification, provided that a competitive test was not thereafter given for the retitled or re-dutied classification.
oThe employee has the ability to perform the essential functions of the formerly held classification.
Qualifications may be tested by the City as described in the current job description. oIf the employee has more than one formerly held City classification, they shall bump to the classification most recently held; the employee may bump into another formerly held classification if no position is available in the "most recently held" classification.
Mutually Agreed Upon Transfer
The City and an employee who has been laid off or bumped may agree to an appointment to a classification that has a vacant position without the need for competitive testing. The following conditions shall apply:
oThe City may test the ability of the employee for the position prior to City's decision on whether it will mutually agree to the transfer;
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oThe appointment shall be subordinate to the bumping rights of other employees and may not be used to prevent another employee from having access to the vacant position if permitted by the bumping provisions.
Severance Package
In the event there is not a less senior, formerly held position for the employee to access through layoff or bumping, the employee will be provided a severance package equal to two (2) weeks of pay for each complete year of service, to a maximum of six (6) months’ worth of pay. The City shall make arrangements to provide employees laid off with job search assistance for forty-five (45) days following the effective date of layoff. Job search assistance shall include job and career counseling, resume preparation, and job search assistance at City expense.
Salary in Event of Change Due to Layoff
An employee's rate of compensation in the event of position change resulting from layoff shall be the salary step in the classification to which the employee is laid off which is closest to the base salary received immediately prior to layoff.
Notice of Layoff
The City will notice the employee to be laid off and the employees who will be impacted by bumping by registered mail or hand delivery. Affected employee organizations shall be noticed concurrently by registered mail. The notice shall be sent to the mailing address as shown on the employee's last paycheck unless a more recent address has been provided to the Human Resources Department by the employee. After notice to the employee and employee organizations, the names of employees to whom layoff notices have been sent will be posted at the Human Resources Department in City Hall. The notice shall state the layoff action to be taken, the options available to the employee, reemployment rights, and layoff procedures. Employees shall have ten (10) calendar days to inform the Human Resources Department in writing of the decisions on options stated in the notice. In the event that the employee fails to state their decision, the City shall select an option and City's decision shall not be subject to appeal. The City shall select an option that retains employment with the City if such option exists. The failure to receive notice shall not be grounds to set aside actions taken.
Effective Date of Layoff
Thirty (30) calendar days after notice is mailed to the employee, unless a later effective date is stated in the notice. An appeal shall not modify the effective date, provided, however, that where an appeal is successful and the layoff is nullified the employee shall be provided salary and benefits as if there was not a layoff.
Appeal of Layoff
An employee may not appeal the decision to lay off his/her position, but may appeal the order of layoff, the bumping provisions (except the test or results of a test of qualifications), and the seniority computation by filing a written appeal with the Human Resources Department stating the basis of the appeal. An appeal must be filed within fourteen (14) calendar days of mailing of notice. The appeal shall be heard by the City Manager/designee within ten (10) calendar days of filing the appeal. A decision will be rendered within ten (10) calendar days of the hearing. Notice will be given by first class mail to the employee and the Association. A further appeal to the Personnel Board may be filed within five (5) calendar days of mailing by filing a written appeal with the Human Resources Office stating the basis for the appeal. The hearing will be held within ten (10) calendar days of the filing of the appeal or as soon thereafter as a quorum of the Board may be gathered and a decision rendered within five (5) calendar days of the hearing.
Recall and Reinstatement
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Employees shall be entitled to recall rights to the position from which they were laid off or bumped for a period of two (2) consecutive years from the effective date of layoff or bumping. The effective date of layoff or bumping shall be the employee's last day of work in the classification from which they were laid off or bumped.
When a vacancy occurs in a job classification, laid off or bumped employees eligible to return to that job classification shall be recalled in the inverse order of bump or layoff. Permanent employees who were laid off or bumped are eligible to return to the job classification in which permanent status was held.
Employees reinstated under this Section shall not be subject to a new probationary period.
Probationary employees who did not have permanent status at the time of layoff shall be required to serve the remainder of any probationary period upon recall.
When a vacancy exists and employees are to be recalled, notice of the opening(s) shall be sent to the mailing address as shown on the employee's last paycheck unless a more recent address has been furnished by the laid off/bumped employee. To expedite recall, more than one employee may be notified of an opening.
The employee shall have fourteen (14) calendar days to reply to City from the date of mailing of the recall notice. If employees fail to respond within fourteen (14) calendar days of notice to the City, they shall lose all recall rights. It is the responsibility of the employee who has been laid off to keep the City informed of their address and telephone number. The City has no responsibility to attempt to trace an employee if notice of reinstatement is not delivered by the Post Office.
Employees reinstated after layoff shall be treated as though they have been on leave of absence without pay in computing salary, vacation, sick leave and other benefits. The right to reinstatement is contingent upon the ability of the employee to perform the essential functions of the position to which the employee is being returned.
REEMPLOYMENT
Any permanent employee, separated from a position through resignation and without fault of delinquency on their part, upon recommendation of the reemploying Department Head may be reemployed to the former position, or to another position in the same class, within two (2) years, provided there is an authorized vacancy and the employee meets the requirements for employment.
Reemployed employees shall be subject to a probationary period, and upon the recommendation of the reemploying Department Head, may receive credit for former employment in the determination of the amount of vacation allowance, sick leave, other benefits and their salary step.
DISCIPLINARY ACTION
Employees who are safety personnel covered by the Police Officers’ Bill of Rights (POBR) shall continue to have those rights afforded them.
The term "disciplinary action" shall include the following actions which may be taken by a Department Head:
A. Letter of Reprimand (for employees covered by the POBR only) B. Suspension without pay up to thirty (30) calendar days; C. Salary reduction;
D. Demotion; or
E. Dismissal
A reduction in hours or a change in schedule, scheduling for workload reasons, a change in work assignment, layoff, letter of reprimand, and performance evaluations shall not be considered as
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discipline (unless otherwise noted above).
Whenever a disciplinary action is proposed to be taken against a deputy director, he/she shall be notified in writing of the proposed disciplinary action at least five (5) working days in advance of the pre- disciplinary (“Skelly”) hearing. “Working days” is defined as days on which City Hall is open for business.
Such written notification shall include a statement of the proposed disciplinary action to be taken; a statement of the facts upon which the disciplinary action is based which shall set forth clearly and with such particularity the charges against the employee so he/she can understand said charges; a statement indicating the cause for the disciplinary action pursuant to the Personnel Rules or other relevant City policies; and a statement describing any actions taken against the employee in the past.
Whenever disciplinary action is taken against a deputy director, he/she shall be notified in writing of the action taken. Such written notification shall include a statement of the disciplinary action taken; a statement of the facts upon which the disciplinary action is based, which shall set forth clearly and with such particularity the charges against the employee so he/she can understand said charges; a statement indicating the cause for the disciplinary action pursuant to the Personnel Rules or other relevant City policies; a statement describing any actions taken against the employee in the past; and a statement advising the employee that the written notice is to be placed in his/her official personnel file and that he/she has a right to appeal to the Personnel Board. A Department Head may impose discipline immediately.
APPEAL OF DISCIPLINARY ACTION
A deputy director can appeal the receipt of disciplinary action to the Personnel Board by delivering a written notice of appeal to the Human Resources Department within ten (10) working days of the date the written notice of disciplinary action was served upon him/her. In the event the deputy director fails to deliver a notice of appeal to the Human Resources Department within said ten (10) working day period, the disciplinary action shall become final, and the Deputy Director shall have no further right to appeal.
The written notice of appeal filed with the Human Resources Department shall not be required to be in any particular format; however, it shall contain at least the following information:
1. The name and address of the deputy director;
2. The date of the disciplinary action and a statement to the effect that the deputy director appeals the disciplinary action; and
3. The notice of appeal shall be dated and signed by the deputy director or by his/her representative.
When the Human Resources Department receives a notice of appeal which complies with the requirements set forth herein, the Human Resources Director shall schedule the matter for hearing. For a Letter of Reprimand (for employees covered by the POBR only), the hearing is with the Department Head or his/her designee. For suspension without pay, in-grade salary reduction, demotion, or dismissal, the hearing is scheduled at the next available regular meeting of the Personnel Board at least fifteen (15) working days after receipt of the notice of appeal.
For Letters of Reprimand issued to employees covered by the POBR, the Department Head or his/her designee shall render a final decision concerning the appeal following the hearing, within ten (10) days after the matter is submitted. The decision of the Department Head or his/her designee shall be final and conclusive. For suspension without pay, in-grade salary reduction, demotion, or dismissal, the Personnel Board shall render written findings and recommendations and final decisions concerning the appeal within ten (10) working days after the matter is submitted. The decision of the Personnel Board shall be final and conclusive unless determined otherwise by a court of competent jurisdiction.
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SAFETY SHOES
The City shall provide a reimbursement of up to $200.00 every two years for one (1) pair of safety shoes for classifications approved for reimbursement by the department head as deemed necessary. Said reimbursement shall be paid against official receipts for safety shoe expenditures. Safety shoes shall be defined by a classification’s standard or by the employee’s department head.
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Consolidated City Manager, City Attorney, Department Head and Deputy Director Compensation Plan ATTACHMENT 1
City Manager and City Attorney
The salary for City Manager was effective August 21, 2023 based on City Council action taken on June 20, 2023.
The salary for City Attorney was effective February 4, 2024 based on City Council action taken on February 5, 2024.
TITLE HOURLY BI-WEEKLY MONTHLY ANNUAL
CITY MANAGER $162.50 $13,000.00 $28,166.67 $338,000.00
CITY ATTORNEY $137.02 $10,961.54 $23,750.00 $285,000.00 Salary is based on a 40-hour work week.
Department Heads
Effective April 28, 2024, the City Manager shall establish salaries for department heads for their respective positions at a step within the monthly ranges indicated below.
JOB
CODE TITLE STEPS HOURLY BI-WEEKLY MONTHLY ANNUAL
1260
ASST CITY
MANAGER STEP 1 123.32 9,865.73 21,375.76 256,509.10
STEP 2 129.49 10,359.02 22,444.55 269,334.56
STEP 3 135.96 10,876.97 23,566.77 282,801.28
1140
CHIEF OF
POLICE STEP 1 141.29 11,303.34 24,490.58 293,887.01
STEP 2 148.36 11,868.51 25,715.10 308,581.25
STEP 3 155.77 12,461.94 27,000.86 324,010.28
1230 CITY CLERK STEP 1 93.89 7,511.11 16,274.08 195,288.92 STEP 2 98.58 7,886.66 17,087.77 205,053.27
STEP 3 103.51 8,281.00 17,942.16 215,305.96
1210
CITY
LIBRARIAN STEP 1 105.90 8,472.17 18,356.36 220,276.37
STEP 2 111.20 8,895.78 19,274.18 231,290.22
STEP 3 116.76 9,340.56 20,237.89 242,854.69
1160
DIR COMM
DEVELOPMEN
T
STEP 1 106.02 8,481.29 18,376.12 220,513.49
STEP 2 111.32 8,905.35 19,294.93 231,539.20
STEP 3 116.88 9,350.62 20,259.68 243,116.15
1270
DIR INFO
TECHNOLOGY STEP 1 103.28 8,262.23 17,901.49 214,817.87
STEP 2 108.44 8,675.33 18,796.55 225,558.66
STEP 3 113.86 9,109.10 19,736.39 236,836.71
1250
DIR PARKS &
RECREATION STEP 1 106.02 8,481.29 18,376.12 220,513.49
STEP 2 111.32 8,905.35 19,294.93 231,539.20
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STEP 3 116.88 9,350.62 20,259.68 243,116.15
1120
DIR PUBLIC
WORKS STEP 1 111.94 8,955.56 19,403.71 232,844.48
STEP 2 117.54 9,403.33 20,373.89 244,486.70
STEP 3 123.42 9,873.50 21,392.59 256,711.11
1220
FINANCE
DIRECTOR STEP 1 111.69 8,935.25 19,359.71 232,316.58
STEP 2 117.28 9,382.01 20,327.69 243,932.34
STEP 3 123.14 9,851.12 21,344.09 256,129.04
1180
HUMAN
RESOURCES
DIR
STEP 1 106.89 8,551.41 18,528.04 222,336.50
STEP 2 112.24 8,978.97 19,454.43 233,453.21
STEP 3 117.85 9,427.92 20,427.16 245,125.99
Salary is based on a 40-hour work week.
Deputy Directors
The Department Head, with City Manager concurrence, has the authority to fix compensation for his/her respective Deputy Director(s) in the same manner the City Manager establishes salary for department heads. A deputy director who disagrees with his/her placement within the range may discuss it with the City Manager.
Effective March 5, 2023, the deputy directors of city departments shall receive monthly salaries for their respective positions at a step within the monthly ranges indicated below.
JOB
CODE TITLE STEPS HOURLY BI-WEEKLY MONTHLY ANNUAL
2237
DEPUTY
CITY
LIBRARIAN
STEP 1 80.11 6,409.08 13,886.33 166,635.96
STEP 2 84.12 6,729.52 14,580.63 174,967.61
STEP 3 88.33 7,066.00 15,309.67 183,716.09
2135
DEPUTY
CDD
DIRECTOR
STEP 1 92.19 7,375.03 15,979.23 191,750.71
STEP 2 96.80 7,743.77 16,778.17 201,338.10
STEP 3 101.64 8,130.96 17,617.09 211,405.09
2271
DEPUTY
DIRECTOR
PARKS &
REC
STEP 1 88.29 7,063.56 15,304.39 183,652.69
STEP 2 92.71 7,416.74 16,069.61 192,835.35
STEP 3 97.34 7,787.58 16,873.08 202,477.02
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2117
DEP DIR
PUBLIC
WORKS
STEP 1 90.94 7,275.56 15,763.72 189,164.61
STEP 2 95.49 7,639.34 16,551.91 198,622.95
STEP 3 100.27 8,021.30 17,379.49 208,553.91
2545
DEPUTY
POLICE
CHIEF
STEP 1 114.39 9,151.06 19,827.30 237,927.59
STEP 2 120.11 9,608.61 20,818.66 249,823.90
STEP 3 126.11 10,089.04 21,859.59 262,315.13
2029
DEPUTY
DIRECTOR
OF FINANCE
STEP 1 89.35 7,148.20 15,487.77 185,853.29
STEP 2 93.82 7,505.62 16,262.17 195,146.02
STEP 3 98.51 7,880.89 17,075.27 204,903.26
Salary is based on a 40-hour work week.
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EXHIBIT A
CONSOLIDATED CITY MANAGER, CITY ATTORNEY, DEPARTMENT HEAD AND DEPUTY DIRECTOR
COMPENSATION PLAN
SALARY
Successful employee performance is a key factor in determining compensation.
Salaries have been established for the City Manager and the City Attorney. The current amounts are listed in Attachment 1.
A three-step salary range has been established for each Department Head and Deputy Director classification. The proposed salary ranges for the revised Assistant City ManagerPolice Chief classification with a thirteen twelve percent (1312.0%) increase, and the Human Resources Director classification with a three and a half percent (3.5%) increase is are listed in Attachment 1. Salary placement is based upon performance review and experience.
The City Manager is authorized to offer unrepresented management employees or potential unrepresented management employees, on a case by case basis, additional fringe benefits incentives, not to exceed 10% of the position’s base salary.
TEMPORARY UPGRADE PAY
In the event the City Manager determines that it is necessary to assign a Department Head or Deputy Director to perform all of the duties of a higher paid classification for two or more consecutive workweeks, he/she shall receive payment for the higher classification for the entire duration of the assignment. The City Manager shall set the salary within the established salary range. Except with the approval of the City Manager, a temporary upgrade assignment shall not continue for longer than one year.
When an employee performs a significant portion but not all of the duties of a higher paid classification, the employee may petition the City Manager for a differential in pay of up to 10%, to be determined by duties assigned for this work out of class.
EMERGENCY WORK
In the event a City Council declared emergency necessitates the devotion of excessive working time by certain management employees in order to maintain essential public services, the City Manager may authorize overtime on a case-by-case basis. Such authorization shall terminate upon cessation of the City Council declared emergency.
PERSONAL TRAINING
Department Heads and Deputy Directors are encouraged to attend instructional programs, conferences and seminars as available in the department’s budget. If the cost to attend exceeds $2,000, attendance must be pre-approved by the City Manager.
LEAVE ACCRUALS
Employees shall accrue vacation leave, sick leave and holiday leave on a pro-rata basis in proportion to regular hours on the payroll. Credit shall not be received for time off without pay. Vacation leave, sick leave, and holiday credits shall accrue from date of appointment.
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Absences of less than four hours shall not be deducted from leave balances. Employees are expected to work a minimum of 40 hours per week, with schedules that may vary from day to day based on workplace needs.
HOLIDAYS
The holidays to be observed are as follows:
A. New Year's Day, January 1st
B. Martin Luther King's Birthday, 3rd Monday in January C. President's Day, 3rd Monday in February
D. Memorial Day, last Monday in May
E. Juneteenth, June 19th
F. Independence Day, July 4th
G. Labor Day, 1st Monday in September
H. Veteran's Day, November 11
I. Thanksgiving Day, 4th Thursday in November
J. The day after Thanksgiving
K. Christmas Day, December 25th
L. Every day approved by the City Council as a public holiday, public fast, or a day of mourning M. Three (3) floating holidays to be taken on working days mutually agreeable to the employee and the department. Employees shall accrue twelve (12) hours of floating holiday time during the first full pay period in January and July each year.
If a holiday falls on Sunday, the following Monday shall be observed. If a holiday falls on Saturday, the preceding Friday shall be observed as the holiday. If a holiday falls on one’s regularly scheduled day off, holiday time shall be granted.
In the event holidays fall while an employee is on vacation leave, such holidays shall not be charged as vacation leave.
Employees have a forty (40) hour maximum holiday accumulation.
Realizing that not all Safety Department Heads and Safety Deputy Directors are able to take holidays when they fall, as determined by the City Manager, such managers shall be compensated by being placed on a bi-weekly holiday factor. Holiday leave shall never accumulate to more than eighty (80) hours. Effective with the pay period starting December 29, 2019, such managers shall be compensated by receiving holiday-in-lieu pay at the rate of 5.0% of base pay each pay period.
VACATION
Vacations are essential to the employee's welfare and they are granted by the City to allow employees relaxation and rest from their duties. It is the policy of the City not to allow the excess accumulation of vacation leave. All full-time employees shall be entitled to vacation leave with pay as provided below after completion of continuous service with the City. The time at which an employee may take vacation shall take into consideration the needs of the City.
Employees shall accrue a vacation allowance at the rate of 20 days per year for the first 12 years of service, 22.5 days per year for 13 through 23 years of service, and 25 days per year at the beginning of 24 years of service. The above allowances shall be pro-rated for employees beginning employment or leaving employment with the City during a biweekly pay period.
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The City Manager is authorized to provide at-will department heads with vacation accrual based upon the number of years of prior service with public entity employers. The City Manager and City Attorney are provided with this benefit.
The City Manager can provide new Department Heads and Deputy Directors with a balance of up to 80 hours of vacation leave upon hire. The City Manager and City Attorney are provided with this benefit.
Department Heads and Deputy Directors may not accrue more than two times (2x) their vacation leave.
Employees who leave employment shall be paid the straight-time salary equivalent in a lump sum for all accrued vacation leave earned. Such compensation for prorated vacation of separated employees shall be paid by adding or deducting from his or her final paycheck.
VACATION SELL BACK
An employee may make an irrevocable election to sell back to the City eighty (80) hours of accumulated vacation at the employee’s established rate of pay per calendar year. At the time of election, the employee must already have taken a minimum of two (2) weeks’ vacation in the preceding twelve (12) months.
Requests must be received by Payroll no later than December 31 for the following year elections. No employee can elect to sell back more than their annual vacation accrual. Elected hours not requested for distribution (sell back) by December 1 will be automatically distributed in the next pay period (sell back cannot be more than the hours available at time of distribution).
EXECUTIVE LEAVE
Department Heads and Deputy Directors shall accrue forty-eight (48) hours per year of executive leave, on a pay period basis. Executive leave shall have a maximum balance of eighty (80) hours. Department Heads and Deputy Directors may sell back up to forty (40) hours per calendar year, following the procedures outlined in ‘VACATION SELL BACK’.
A Department Head may recommend to the City Manager that an additional amount of executive leave be authorized for a Deputy Director, up to an additional forty (40) hours. This additional leave may be granted based on excessive hours, the value of the extraordinary effort, and the performance of the employee. The City Manager has full discretion in deciding whether to grant additional leave. In the event that the additional hours take the employee over the eighty (80) hour maximum, they must sell back any hours above the maximum accumulation allowable.
SICK LEAVE
The purpose of sick leave is to continue the compensation of employees who must remain off their jobs because of illness or disability. Such sick leave is a privilege which employees can exercise in the event of his/her bona fide illness or disability or in the event their presence away from work is essential because of illness, death or disability of their immediate family.
For full-time employees, leave shall be accrued at the rate of 3.7 hours for each biweekly pay period (12 days per year). Unused sick leave shall be accumulated. Any employee who is on paid leave shall continue to earn sick leave. An employee who is on leave without pay shall not accrue sick leave. Sick leave shall accrue during an absence due to a work-related disability.
The City Manager can provide new Department Heads and Deputy Directors with up to 80 hours of sick leave upon hire. The City Manager and City Attorney are provided with this benefit.
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A Department Head is responsible for determining that only bona fide personal or family sick leave is taken, consistent with standards established by the City. This may include the submission of a doctor’s certificate with prior notice.
Protected Sick Leave
Protected sick leave may be taken and if taken, shall be charged to sick leave, vacation, holiday, or executive leave for the following reasons:
o The diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee.
o The diagnosis, care or treatment of an existing health condition of, or preventative care for, an employee’s family member.
o An employee who is a victim of domestic violence, sexual assault, or stalking.
Employee family member means parent, spouse, domestic partner, son, daughter, domestic partner’s child, sibling, stepchildren, mother-in-law, father-in-law, grandparents and grandchildren.
Not more than six (6) days of such protected sick leave shall be granted in any one (1) calendar year.
However, if extenuating circumstances exist in the opinion of the City Manager, a reasonable extension of the six (6) day limit may be granted. Any add itional leave so granted shall be charged against the worker's sick leave accumulation.
Family Care Leave
In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible workers for up to 12 weeks per rolling 12-month period. The City-wide policy will adhere to applicable Federal and State laws.
Bereavement
In the event of a death in the immediate family, employees may take accrued sick leave of up to three (3) days (two (2) shifts for 56-hour employees), or up to five (5) days at the discretion of the City Manager. Bereavement Leave shall be tracked separately from Protected Sick Leave. In this context, immediate family shall be defined as: spouse, domestic partner, child, foster child who resided with the employee at the time of his/her death, stepchild, mother, father, stepmother, stepfather, mother-in- law, father-in-law, brother, stepbrother, sister, stepsister, brother-in-law, sister-in-law, grandmother, grandfather, spouse’s grandmother, spouse’s grandfather, son-in-law, daughter-in-law or grandchildren.
Sick Leave Payout
Upon service or disability retirement, employees shall be paid fifty (50%) of their accrued sick leave up to a maximum of four hundred eighty (480) hours payment; see “DEFERRED COMPENSATION AND RETIREMENT HEALTH SAVINGS ACCOUNT (RHSA)” section for more details. No payments of sick leave shall be due or owed to anyone who is terminated by the City.
DISABILITY LEAVE
The purpose of this Section is to continue the compensation of employees who must remain off their jobs as a result of disability occasioned or injury received as a result of the discharge of their duties as employees of the City. The Department Head is responsible for determining that only bona fide disability leave is taken.
For each disability, employees shall be allowed disability leave up to and including sixty (60) working days. Such disability leave shall be at full pay, less the amount paid by Workers' Compensation.
Disability in excess of that provided in this Section shall be compensated for only under the provisions of the Workers' Compensation Act of the State of California
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If the sixty (60) working days is exhausted, additional time off may be charged to sick leave with the following exception; employees shall not be charged sick leave for that portion of their salary for which temporary disability payments are received under the State Worker's Compensation Law.
Additional compensation may be awarded by Resolution of the City Council to employees disabled or injured in line of duty, if recommended by the City Manager.
JURY LEAVE
Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee notifies their Department Head immediately of the notice of jury duty.
MILITARY LEAVE
Military leave shall be granted by the City in accordance with the provisions of State and Federal laws.
LEAVE OF ABSENCE WITHOUT PAY
Regardless of the combination of paid and unpaid leave used, a leave of absence shall not exceed twelve (12) months in duration, unless otherwise required by law.
Leaves of absence may be granted in cases of illness; in cases of personal emergencies, including childbirth; for education and training; or when such absences would not be contrary to the best interests of the City. Any request for leave of absence shall be made in writing for review and approval by the City Manager.
LONG TERM DISABILITY INSURANCE
The City shall provide long-term disability insurance providing for a sixty (60) day elimination period, subject to prior exhaustion of accrued sick leave or other applicable benefits, and payment of a monthly benefit equivalent to sixty-six and two-thirds percent (66 ⅔%) of full basic monthly salary less any deductible benefits.
SOCIAL SECURITY
Social Security for miscellaneous employees is paid equally by the City and the employee at 6.2% on the Social Security Wage Base. Safety employees hired on or after April 1, 1986 pay 1.45% as the Medicare cost of Social Security.
RETIREMENT
Retirement benefits shall be compensated for under applicable legislation pertaining to the California Public Employees’ Retirement System (CalPERS). The City currently provides the following retirement benefits:
Safety
o 3% @ 50 Formula with Single Highest Year Final Compensation for safety employees hired before December 9, 2012.
o 3% @ 55 Formula with highest average annual pensionable compensation earned during 36 consecutive months of service for “classic” members hired on or after December 9, 2012. o 2.7% @ 57 Formula with highest average annual pensionable compensation earned during 36 consecutive months of service for “new” members hired on or after January 1, 2013. o 1959 Survivor Benefit Level 4
o COLA 2% in retirement
o Death Benefit (DB) Continues (spouse continues to get DB after remarriage)
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o Pre-Retirement Option 2 DB (If retirement eligible employee dies prior to retirement, spouse can elect to get ongoing retirement benefits)
o Military Service Buyback
o Retired Death Benefit (DB) $500
o Prior Service Credit
o Peace Corps: VISTA Buyback
Classic members with the 3% @ 50 Formula or 3% @ 55 Formula pay 50% of the total normal cost rate.
The contributions toward employer rate will be pre-tax under 414(h)2. New members of PERS hired after January 1, 2013 with the 2.7% @ 57 Formula pay 50% of the normal cost rate. The contributions toward employer rate will be pre-tax under 414(h)2.
Miscellaneous
o 2% @ 55 Formula with single highest year compensation for “classic members” hired before December 9, 2012
o 2% @ 55 Formula with three-year final compensation for “classic members” hired on or after December 9, 2012
o 2% @ 62 Formula with three-year final compensation for “new members” hired on or after January 1, 2013
o Social Security Coverage
o COLA 2% in retirement
o Death Benefit (DB) Continues (spouse continues to get DB after remarriage) o Pre-Retirement Option 2 DB (If retirement eligible employee dies prior to retirement, spouse can elect to get ongoing retirement benefits)
o Military Service Buyback
o Retired Death Benefit (DB) $500
o Prior Service Credit
o Peace Corps: VISTA Buyback
Classic members with the 2% @ 55 Formula pay 50% of the total normal cost rate. The contributions toward employer rate will be pre-tax under 414(h)2. New members hired after January 1, 2013 with the 2% @ 62 Formula pay 50% of the normal cost rate. The contributions toward employer rate will be pre- tax under 414(h)2.
HEALTH INSURANCE
The City shall make contributions on behalf of employees eligible for Group Medical Coverage under the various plans available to the City in the amounts necessary to a maximum contribution of $160.00 per employee per month. The City's health contribution during part-time employment shall be made on a pro rata basis in accordance to hours on the payroll.
The City shall make available to eligible current and retired employees, benefits equal to the Meyers-Geddes State Employees' Medical and Hospital Care Act.
FLEXIBLE BENEFITS PLAN
All contributions to the flexible benefits plan are contingent upon compliance with state and federal rules and regulations. Benefits shall be taxed as required by law.
The City shall contribute up to $1,797.71 (inclusive of the $160 maximum City contribution towards group medical insurance) per month towards the flexible benefit plan.
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On January 1, 2019 and each January during the term of this Agreement, the City’s contribution to the Plan will be increased up to 100% of the Bay Area Kaiser Single rate, 90% of the Bay Area Kaiser Two-Party rate, and 90% of the Bay Area Kaiser Family rate.
If an employee is eligible for alternative group medical insurance through a spouse or domestic partner’s employer-sponsored medical plan, or through a parent’s insurance, the employee may waive the City’s medical insurance coverage and select such alterna te plan. Proof of such alternate coverage is required prior to waiving coverage through the City plan. Any employee who waives medical coverage entirely shall be eligible to receive $160.00 per month as taxable income.
LIFE INSURANCE
The City shall provide $50,000 life insurance and $10,000 accidental death and dismemberment insurance without regard to membership in any health plan.
DENTAL INSURANCE
The City shall provide dental care benefits for employees and their dependents including domestic partners. The dental benefits 100/80/80 include a maximum calendar year payment of $3,000 and 50% orthodontic coverage with a $3,500 lifetime maximum.
VISION INSURANCE
Vision Benefits include an annual exam, lenses, and frames with an annual deductible of twenty-five dollars ($25).
MONTHLY AUTO ALLOWANCE OR MILEAGE ALLOWANCE
The City Manager and City Attorney shall receive a $375.00 monthly allowance. With City Manager approval, department heads shall receive a $375.00 monthly auto allowance.
Upon department head recommendation and City Manager approval, certain deputy directors shall receive a $300.00 monthly auto allowance.
Employees that do not receive a monthly auto allowance and must use their private vehicles for official city business shall be reimbursed at the IRS established rate.
UNIFORM ALLOWANCE
The Police Chief and Deputy Police Chief shall receive $36.73 per pay period.
DAMAGE REIMBURSEMENT
Safety employees shall be reimbursed the reasonable value of any personal equipment or clothing damaged or destroyed in discharging duties under stress or strain where normal caution cannot be exercised.
HOUSING ASSISTANCE
It shall be the policy of the City to assist newly appointed Charter Officers, consisting of the City Manager, City Attorney and Department Heads, to reside within the City of San Mateo by making available, as part of their compensation, a secured loan of City funds to acquire local housing. Said loans shall be made available only upon the following terms and conditions:
o It shall constitute a part of the compensation for said employees’ services, to be evidenced by a separate written agreement entered into at or near the time of initial appointment. o The loan shall not exceed an amount which is equal to four (4) times the appointee’s annual compensation.
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o The loan shall be available only upon residential property within the City which is, in fact, the residence of the employee, and shall be due and payable in full upon termination of the employment.
o The loan must be secured to the satisfaction of the City Council, and evidenced by a promissory note secured by a deed of trust, which shall be due and payable in full upon sale or transfer of the property, or upon termination of the employment of the employee borrower, whichever occurs first.
o The interest rate initially charged on the loan shall equal the interest rate received by the City on the investment of all City funds for the most recently concluded calendar year, as calculated and determined by the City Treasurer. The initial interest rate shall remain constant for five years from date of the initial agreement and shall thereafter be adjusted on each fifth anniversary of the agreement to the interest rate received by the City for the then most recently concluded calendar year.
DEFERRED COMPENSATION AND RETIREMENT HEALTH SAVINGS ACCOUNT (RHSA) Employees are eligible to participate in the City-offered 457 deferred compensation plans. All contributions to deferred compensation plans and retirement health savings accounts are contingent upon compliance with state and federal rules and regulations.
Effective September 10, 2017, the RHSA Plan was modified regarding contributions and separation pay to reflect the following:
Safety Department Heads hired by the City before June 1, 2000:
o 1% City contribution to deferred compensation
o No leave balances to RHSA upon separation from City Service
Safety Department Heads hired by the City on or after June 1, 2000:
o 1% City contribution to RHSA
o 100% of eligible sick leave, and 100% of discretionary leave to RHSA upon separation from City Service
Miscellaneous Department Heads hired before January 1, 1977:
o 2% Employee/City match to deferred compensation
o 0.5% City contribution to deferred compensation
o 100% of eligible sick leave, and 50% of discretionary leave, to RHSA upon separation from City Service
City Manager, City Attorney, and Miscellaneous Department Heads hired on or after January 1, 1977:
o 2% Employee / City match to RHSA
o 0.5% City contribution to deferred compensation
o 100% of eligible sick leave, and 100% of vacation leave, to RHSA upon separation from City service
Safety Deputy Directors:
o 2% Employee contribution to RHSA
o 1% City contribution to deferred compensation
o 100% of eligible sick leave, and 100% of vacation leave, to RHSA upon separation from City Service
Miscellaneous Deputy Directors:
o $50.00 per pay period employee contribution to RHSA
o 2% Employee / City match to deferred compensation
o 0.5% City contribution to deferred compensation
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o 100% of eligible sick leave to RHSA upon from City service
SEVERANCE
Employees separating from the City shall not be allowed to remain on the payroll after their last day at work. Severance payment shall be provided in a lump-sum for all leave accrual eligible for payout. The intent of this paragraph is to prevent employees from running out vacation and thereafter not returning to work or returning for only a very short time period.
With City Manager approval, Department Heads shall be eligible for severance payment equal to as much as six months of base salary and six months benefits payment or continuation of benefits upon involuntary termination without “just cause”.
PROFESSIONAL DUES
Upon request, the City shall pay a reasonable amount for membership dues for one professional organization for each employee.
PERFORMANCE EVALUATIONS
Employee performance goals are set early in the evaluation year. A mid-year review of the employee’s progress towards completing the performance goals should occur. A written evaluation shall be completed by the supervisor and reviewed with the employee at the end of the evaluation year.
EMPLOYMENT PROVISIONS SPECIFICALLY FOR DEPUTY DIRECTORS
PROBATIONARY PERIOD
The probationary period is the length of time required for an employee to become proficient in his/her position, and for the Department Head to adequately judge the proficiency. The standard probationary period shall be twelve months, but the Department Head may shorten or lengthen it by up to six months depending on the proven proficiency of the probationer.
LIMITED DURATION POSITION
The City may hire employees in limited duration positions (non-permanent positions) that will not exceed three (3) years for any of the following reasons: (1) where the position is created for a project(s) or work that is expected to be completed within three (3) years; (2) where the position is funded by grant funds of three (3) or less years in duration; or (3) where the position is funded by moneys from capital or enterprise funds that may be unavailable after three (3) years. Employees shall be informed of the duration of the position at the time of employment. At the end of the position’s duration, employment shall terminate and the employee shall not have layoff rights, bumping rights, severance payments or reemployment rights. This provision shall supersede Personnel Rule Sections 1 (13) and (24). Should an employee who was originally hired to fill a limited duration position be later appointed to a permanent merit position, his/her hire date will be that date that service began in the limited duration position.
CONTINUOUS SERVICE
Continuous service shall mean service in any merit classification since original appointment with the City, excluding any time prior to a break in service. One (1) year of completed continuous service shall include, but not be limited to, all time while the employee is on sick leave and/or vacation leave.
Neither military leave nor leave of absence without pay shall constitute an interruption in computing continuous service. However, leaves of absence without pay of over one month shall not be included when computing length of continuous service for vacation purposes.
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LAYOFF
Whenever, in the judgment of the City Council, it becomes necessary to abolish a position(s), including the reduction of work hours over twenty percent (20%) per year, the employee(s) displaced shall be deemed to be laid off (employees may accept an hours reduction in excess of twenty percent (20%) without exercising their layoff rights). The rights of employees affected by the abolishment of positions by the City Council shall be hereafter set forth.
Seniority for purposes of layoff need not be continuous and shall include total accumulated length of service under the following types of appointment:
o Emergency appointment under SMMC 2.57.60(h) or previous SMMC Section 2.57.020 (11). o Regular appointment under SMMC 2.57.080.
o Provisional appointment under SMMC 2.57.070(d).
o Appointment as City Manager's assistants under SMMC 2.57.060(a) from a position in the classified service.
o Appointment as a Department Head under SMMC 2.57.060(d) from a position in the classified service.
In the case of ties, seniority shall be determined on the basis of greater hire date seniority, then by random number if necessary.
Seniority for Layoff Purposes
o The least senior employee in the classification from which the position is abolished is to be first laid off. Prior to layoff of regular employees, temporary and/or provisional employees in the same classification will be laid off first. For purposes of initial layoff, seniority means time in the classification in question. Flexibly staffed positions will be considered a single classification for layoff purposes.
o For the purposes of Bumping Rights, seniority is defined as seniority within the classification and seniority in a directly related higher classification; i.e., a classification that is within the promotional line and has a higher salary.
Bumping Rights
Employees laid off may elect to be reassigned to a formerly held classification in any Unit held by an employee with less seniority as defined in 22.2, provided the following conditions are met:
o The formerly held classification exists and has positions allocated and budgeted. Formerly held position includes successor classification if determined by the City to exist. A successor classification exists where the Personnel Board has changed the title of a position or included new duties in the same titled classification, provided that a competitive test was not thereafter given for the retitled or re-dutied classification.
o The employee has the ability to perform the essential functions of the formerly held classification.
Qualifications may be tested by the City as described in the current job description. o If the employee has more than one formerly held City classification, they shall bump to the classification most recently held; the employee may bump into another formerly held classification if no position is available in the "most recently held" classification.
Mutually Agreed Upon Transfer
The City and an employee who has been laid off or bumped may agree to an appointment to a classification that has a vacant position without the need for competitive testing. The following conditions shall apply:
o The City may test the ability of the employee for the position prior to City's decision on whether it will mutually agree to the transfer;
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o The appointment shall be subordinate to the bumping rights of other employees and may not be used to prevent another employee from having access to the vacant position if permitted by the bumping provisions.
Severance Package
In the event there is not a less senior, formerly held position for the employee to access through layoff or bumping, the employee will be provided a severance package equal to two (2) weeks of pay for each complete year of service, to a maximum of six (6) months’ worth of pay. The City shall make arrangements to provide employees laid off with job search assistance for forty-five (45) days following the effective date of layoff. Job search assistance shall include job and career counseling, resume preparation, and job search assistance at City expense.
Salary in Event of Change Due to Layoff
An employee's rate of compensation in the event of position change resulting from layoff shall be the salary step in the classification to which the employee is laid off which is closest to the base salary received immediately prior to layoff.
Notice of Layoff
The City will notice the employee to be laid off and the employees who will be impacted by bumping by registered mail or hand delivery. Affected employee organizations shall be noticed concurrently by registered mail. The notice shall be sent to the mailing address as shown on the employee's last paycheck unless a more recent address has been provided to the Human Resources Department by the employee. After notice to the employee and employee organizations, the names of employees to whom layoff notices have been sent will be posted at the Human Resources Department in City Hall. The notice shall state the layoff action to be taken, the options available to the employee, reemployment rights, and layoff procedures. Employees shall have ten (10) calendar days to inform the Human Resources Department in writing of the decisions on options stated in the notice. In the event that the employee fails to state their decision, the City shall select an option and City's decision shall not be subject to appeal. The City shall select an option that retains employment with the City if such option exists. The failure to receive notice shall not be grounds to set aside actions taken.
Effective Date of Layoff
Thirty (30) calendar days after notice is mailed to the employee, unless a later effective date is stated in the notice. An appeal shall not modify the effective date, provided, however, that where an appeal is successful and the layoff is nullified the employee shall be provided salary and benefits as if there was not a layoff.
Appeal of Layoff
An employee may not appeal the decision to lay off his/her position, but may appeal the order of layoff, the bumping provisions (except the test or results of a test of qualifications), and the seniority computation by filing a written appeal with the Human Resources Department stating the basis of the appeal. An appeal must be filed within fourteen (14) calendar days of mailing of notice. The appeal shall be heard by the City Manager/designee within ten (10) calendar days of filing the appeal. A decision will be rendered within ten (10) calendar days of the hearing. Notice will be given by first class mail to the employee and the Association. A further appeal to the Personnel Board may be filed within five (5) calendar days of mailing by filing a written appeal with the Human Resources Office stating the basis for the appeal. The hearing will be held within ten (10) calendar days of the filing of the appeal or as soon thereafter as a quorum of the Board may be gathered and a decision rendered within five (5) calendar days of the hearing.
Recall and Reinstatement
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Employees shall be entitled to recall rights to the position from which they were laid off or bumped for a period of two (2) consecutive years from the effective date of layoff or bumping. The effective date of layoff or bumping shall be the employee's last day of work in the classification from which they were laid off or bumped.
When a vacancy occurs in a job classification, laid off or bumped employees eligible to return to that job classification shall be recalled in the inverse order of bump or layoff. Permanent employees who were laid off or bumped are eligible to return to the job classification in which permanent status was held.
Employees reinstated under this Section shall not be subject to a new probationary period.
Probationary employees who did not have permanent status at the time of layoff shall be required to serve the remainder of any probationary period upon recall.
When a vacancy exists and employees are to be recalled, notice of the opening(s) shall be sent to the mailing address as shown on the employee's last paycheck unless a more recent address has been furnished by the laid off/bumped employee. To expedite recall, more than one employee may be notified of an opening.
The employee shall have fourteen (14) calendar days to reply to City from the date of mailing of the recall notice. If employees fail to respond within fourteen (14) calendar days of notice to the City, they shall lose all recall rights. It is the responsibility of the employee who has been laid off to keep the City informed of their address and telephone number. The City has no responsibility to attempt to trace an employee if notice of reinstatement is not delivered by the Post Office.
Employees reinstated after layoff shall be treated as though they have been on leave of absence without pay in computing salary, vacation, sick leave and other benefits. The right to reinstatement is contingent upon the ability of the employee to perform the essential functions of the position to which the employee is being returned.
REEMPLOYMENT
Any permanent employee, separated from a position through resignation and without fault of delinquency on their part, upon recommendation of the reemploying Department Head may be reemployed to the former position, or to another position in the same class, within two (2) years, provided there is an authorized vacancy and the employee meets the requirements for employment.
Reemployed employees shall be subject to a probationary period, and upon the recommendation of the reemploying Department Head, may receive credit for former employment in the determination of the amount of vacation allowance, sick leave, other benefits and their salary step.
DISCIPLINARY ACTION
Employees who are safety personnel covered by the Police Officers’ Bill of Rights (POBR) shall continue to have those rights afforded them.
The term "disciplinary action" shall include the following actions which may be taken by a Department Head:
A. Letter of Reprimand (for employees covered by the POBR only) B. Suspension without pay up to thirty (30) calendar days; C. Salary reduction;
D. Demotion; or
E. Dismissal
A reduction in hours or a change in schedule, scheduling for workload reasons, a change in work assignment, layoff, letter of reprimand, and performance evaluations shall not be considered as
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discipline (unless otherwise noted above).
Whenever a disciplinary action is proposed to be taken against a deputy director, he/she shall be notified in writing of the proposed disciplinary action at least five (5) working days in advance of the pre- disciplinary (“Skelly”) hearing. “Working days” is defined as days on which City Hall is open for business.
Such written notification shall include a statement of the proposed disciplinary action to be taken; a statement of the facts upon which the disciplinary action is based which shall set forth clearly and with such particularity the charges against the employee so he/she can understand said charges; a statement indicating the cause for the disciplinary action pursuant to the Personnel Rules or other relevant City policies; and a statement describing any actions taken against the employee in the past.
Whenever disciplinary action is taken against a deputy director, he/she shall be notified in writing of the action taken. Such written notification shall include a statement of the disciplinary action taken; a statement of the facts upon which the disciplinary action is based, which shall set forth clearly and with such particularity the charges against the employee so he/she can understand said charges; a statement indicating the cause for the disciplinary action pursuant to the Personnel Rules or other relevant City policies; a statement describing any actions taken against the employee in the past; and a statement advising the employee that the written notice is to be placed in his/her official personnel file and that he/she has a right to appeal to the Personnel Board. A Department Head may impose discipline immediately.
APPEAL OF DISCIPLINARY ACTION
A deputy director can appeal the receipt of disciplinary action to the Personnel Board by delivering a written notice of appeal to the Human Resources Department within ten (10) working days of the date the written notice of disciplinary action was served upon him/her. In the event the deputy director fails to deliver a notice of appeal to the Human Resources Department within said ten (10) working day period, the disciplinary action shall become final, and the Deputy Director shall have no further right to appeal.
The written notice of appeal filed with the Human Resources Department shall not be required to be in any particular format; however, it shall contain at least the following information:
1. The name and address of the deputy director;
2. The date of the disciplinary action and a statement to the effect that the deputy director appeals the disciplinary action; and
3. The notice of appeal shall be dated and signed by the deputy director or by his/her representative.
When the Human Resources Department receives a notice of appeal which complies with the requirements set forth herein, the Human Resources Director shall schedule the matter for hearing. For a Letter of Reprimand (for employees covered by the POBR only), the hearing is with the Department Head or his/her designee. For suspension without pay, in-grade salary reduction, demotion, or dismissal, the hearing is scheduled at the next available regular meeting of the Personnel Board at least fifteen (15) working days after receipt of the notice of appeal.
For Letters of Reprimand issued to employees covered by the POBR, the Department Head or his/her designee shall render a final decision concerning the appeal following the hearing, within ten (10) days after the matter is submitted. The decision of the Department Head or his/her designee shall be final and conclusive. For suspension without pay, in-grade salary reduction, demotion, or dismissal, the Personnel Board shall render written findings and recommendations and final decisions concerning the appeal within ten (10) working days after the matter is submitted. The decision of the Personnel Board shall be final and conclusive unless determined otherwise by a court of competent jurisdiction.
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SAFETY SHOES
The City shall provide a reimbursement of up to $200.00 every two years for one (1) pair of safety shoes for classifications approved for reimbursement by the department head as deemed necessary. Said reimbursement shall be paid against official receipts for safety shoe expenditures. Safety shoes shall be defined by a classification’s standard or by the employee’s department head.
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Consolidated City Manager, City Attorney, Department Head and Deputy Director Compensation Plan
ATTACHMENT 1
City Manager and City Attorney
The salary for City Manager was effective August 21, 2023 based on City Council action taken on June 20, 2023.
The salary for City Attorney was effective October 16, 2022February 4, 2024 based on City Council action taken on October 3, 2022February 5, 2024.
TITLE HOURLY BI-WEEKLY MONTHLY ANNUAL
CITY MANAGER $162.50 $13,000.00 $28,166.67 $338,000.00
CITY ATTORNEY
$127.50137
.02
$10,200.0010,96
1.54 $22,100.0023,75
0.00 $265,200.00285,0
00.00 Salary is based on a 40-hour work week.
Department Heads
Effective October 29, 2023April 28, 2024, the City Manager shall establish salaries for department heads for their respective positions at a step within the monthly ranges indicated below.
JOB
COD
E TITLE
STEPS HOURLY BI-WEEKLY MONTHLY ANNUAL
1260
ASST CITY
MANAGER
STEP
1 123.32 9,865.73 21,375.76 256,509.10
STEP
2 129.49 10,359.02 22,444.55 269,334.56
STEP
3 135.96 10,876.97 23,566.77 282,801.28
1140
CHIEF OF
POLICE
STEP
1 141.29126.1
5 11,303.3410,092.2
7 24,490.5821,866.5
9 293,887.01262,399.1
2 STEP
2 148.36132.4
6 11,868.5110,596.8
8 25,715.1022,959.9
1 308,581.25275,518.9
7 STEP
3 155.77139.0
8 12,461.9411,126.7
3 27,000.8624,107.9
1 324,010.28289,294.8
9 1230 CITY CLERK
STEP
1 93.89 7,511.11 16,274.08 195,288.92
STEP
2 98.58 7,886.66 17,087.77 205,053.27
STEP
3 103.51 8,281.00 17,942.16 215,305.96
1210
CITY
LIBRARIAN
STEP
1 105.90 8,472.17 18,356.36 220,276.37
STEP
2 111.20 8,895.78 19,274.18 231,290.22
STEP
3 116.76 9,340.56 20,237.89 242,854.69
1160
DIR COMM
DEVELOPMEN
T
STEP
1 106.02 8,481.29 18,376.12 220,513.49
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STEP
2 111.32 8,905.35 19,294.93 231,539.20
STEP
3 116.88 9,350.62 20,259.68 243,116.15
1270
DIR INFO
TECHNOLOGY
STEP
1 103.28 8,262.23 17,901.49 214,817.87
STEP
2 108.44 8,675.33 18,796.55 225,558.66
STEP
3 113.86 9,109.10 19,736.39 236,836.71
1250
DIR PARKS &
RECREATION
STEP
1 106.02 8,481.29 18,376.12 220,513.49
STEP
2 111.32 8,905.35 19,294.93 231,539.20
STEP
3 116.88 9,350.62 20,259.68 243,116.15
1120
DIR PUBLIC
WORKS
STEP
1 111.94 8,955.56 19,403.71 232,844.48
STEP
2 117.54 9,403.33 20,373.89 244,486.70
STEP
3 123.42 9,873.50 21,392.59 256,711.11
1220
FINANCE
DIRECTOR
STEP
1 111.69 8,935.25 19,359.71 232,316.58
STEP
2 117.28 9,382.01 20,327.69 243,932.34
STEP
3 123.14 9,851.12 21,344.09 256,129.04
1180
HUMAN
RESOURCES
DIR
STEP
1 106.89103.2
8 8,551.418,262.23 18,528.0417,901.4
9 222,336.50214,817.8
7 STEP
2 112.24108.4
4 8,978.978,675.33 19,454.4318,796.5
5 233,453.21225,558.6
6 STEP
3 117.85113.8
6 9,427.929,109.10 20,427.1619,736.3
9 245,125.99236,836.7
1 Salary is based on a 40-hour work week.
Deputy Directors
The Department Head, with City Manager concurrence, has the authority to fix compensation for his/her respective Deputy Director(s) in the same manner the City Manager establishes salary for department heads. A deputy director who disagrees with his/her placement within the range may discuss it with the City Manager.
Effective March 5, 2023, the deputy directors of city departments shall receive monthly salaries for their respective positions at a step within the monthly ranges indicated below.
Effective Date: 3/5/23
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JOB
CODE TITLE STEPS HOURLY BI-WEEKLY MONTHLY ANNUAL
2237
DEPUTY
CITY
LIBRARIAN
STEP 1 80.11 6,409.08 13,886.33 166,635.96
STEP 2 84.12 6,729.52 14,580.63 174,967.61
STEP 3 88.33 7,066.00 15,309.67 183,716.09
2135
DEPUTY
CDD
DIRECTOR
STEP 1 92.19 7,375.03 15,979.23 191,750.71
STEP 2 96.80 7,743.77 16,778.17 201,338.10
STEP 3 101.64 8,130.96 17,617.09 211,405.09
2271
DEPUTY
DIRECTOR
PARKS &
REC
STEP 1 88.29 7,063.56 15,304.39 183,652.69
STEP 2 92.71 7,416.74 16,069.61 192,835.35
STEP 3 97.34 7,787.58 16,873.08 202,477.02
2117
DEP DIR
PUBLIC
WORKS
STEP 1 90.94 7,275.56 15,763.72 189,164.61
STEP 2 95.49 7,639.34 16,551.91 198,622.95
STEP 3 100.27 8,021.30 17,379.49 208,553.91
2545
DEPUTY
POLICE
CHIEF
STEP 1 114.39 9,151.06 19,827.30 237,927.59
STEP 2 120.11 9,608.61 20,818.66 249,823.90
STEP 3 126.11 10,089.04 21,859.59 262,315.13
2029
DEPUTY
DIRECTOR
OF FINANCE
STEP 1 89.35 7,148.20 15,487.77 185,853.29
STEP 2 93.82 7,505.62 16,262.17 195,146.02
STEP 3 98.51 7,880.89 17,075.27 204,903.26
Salary is based on a 40-hour work week.
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