Santa Cruz City Council
June 11, 2024

assumptions driving the financial model, and Commissioners have received detailed and thoughtful answers to questions about various aspects of the results presented in the Financial Pro Forma.

Quarterly Reporting
As the Commission has worked with the Department on budget and financial planning over the last several years, the Commission has received regular updates on the Department's finances through the quarterly financial reports. Attachment 5 is the most recent Quarterly Financial Report for FY 2024.

These reports provide the Commission with an ongoing ability to track progress, and to identify and discuss issues as the year develops. The Commission's key takeaway from these efforts is that the Department has a well-considered LRFP and strategy- a plan which has continued to evolve and improve based on Department staff increasing their familiarity with this essential analytical and planning tool.

CONCLUSION
In closing, the Water Commission unanimously approved a motion in support of the City Council adopting the Water Department's proposed FY 2025 Operating Budget and CIP at the meeting on June 3, 2024. Our careful review of these proposals shows that they have been developed using realistic assumptions that are well aligned with the financial policies and assumptions approved by the Council in its 2021 action approving the Department's LRFP.

We appreciate this opportunity to provide our recommendation to the City Council and are available to answer any questions you may have.
ustin Burks
Chair, City of Santa Cruz Water Commission
cc: Matt Huffaker, City Manager
Members of the City of Santa Cruz Water Commission
Heidi R. Luckenbach City of Santa Cruz Water Director
Attachments:

Attachment 1 - Water Department FY 2025 Proposed Operating Budget Attachment 2- Water Department FY 2025-FY 2029 CIP Summary Attachment 3 - Water Department FY 2025 Budget Analytics

21.1.15 21.1.16
WATER

DEPARTMENT
The mission of the Water Department is to ensure
public health and safety by providing a clean, safe, and reliable supply of water. We strive to serve the
community in a courteous, efficient, cost-effective,
and environmentally sustainable manner.

We monitor water quality and have had zero violations
of drinking water standards. We protect the local
watersheds our drinking water comes from and the
operation of the Loch Lomond Recreation Area. In
addition to meeting the daily needs of our customers,
the department is developing long-term solutions and
collaborative partnerships with neighboring water
agencies.

Our Responsibilities Include:

Collection of Water
Water Treatment
Water Storage
www.cityofsantacruz.com/government/
city-departments/water
212 Locust St., Santa Cruz
831-420-5200
Contact Us:

Production of Drinking Water
Water Distribution
Monitoring of Drinking Water
Graham Hill Water Treatment Plant
715 Graham Hill Rd.

Water Meter Shop
1125 River St.

Water Distribution
1214 River St.

Water Resources Management
123 Jewell St.

Loch Lomond Reservoir
100 Loch Lomond Way, Felton, CA
Attachment 1: FY 2025 Proposed Operating Budget

21.1.17 FY 2025 Budget
Core Services
Every day, department staff work hard to
produce and deliver millions of gallons of
water to nearly 100,000 customers in Santa
Cruz and several other parts of the county.

Staff perform daily utility, land, and natural
resource management activities needed to
provide reliable, high quality water service
to our community. In addition to these daily
duties, the department is undergoing a major
reinvestment in water infrastructure and
water supply augmentation initiatives to
adapt to climate change and ensure the
community continues to receive clean, safe,
and reliable drinking water. This includes
upgrades to the water treatment plant,
improvements to the Loch Lomond dam, the
replacement of all system meters, and
projects to augment our local water supply.

To perform this work, the Water
Department is organized into four areas:

Operations; Engineering; Customer Service;
and Administration.

Operations - The Operations group is
responsible for managing the watersheds;
collecting, treating, and testing untreated
and treated water; and storing and
distributing treated water to our customers.

The group includes the following sections:

Water Resources; Water Production; Water
Quality Control (laboratory); Distribution;
and the Water Recreation Facility (Loch
Lomond Reservoir).
• The Water Resources Management
section is responsible for drinking water
source protection, environmental
regulatory compliance, and general
natural resource management. The
section coordinates environmental
projects related to water rights, water
supply, habitat conservation, and
environmental resource protection.
• The Water Production section is
responsible for production, operation,
and maintenance of water storage,
diversion, collection, pumping, and
treatment facilities from all sources
throughout the system. This 24/7 work is
made more challenging with the
Concrete Tank Replacement project
underway and planned upgrades to the
Graham Hill Water Treatment Plant
soon. Despite the challenges presented,
staff continue to produce millions of
gallons of water for customers daily.
• The Water Quality Control (laboratory)
section performs all water quality testing
and oversees matters pertaining to water
quality control to maintain compliance
with State and Federal standards and for
planning for future treatment needs.
• The Water Distribution section is
responsible for the maintenance and
operation of all transmission mains,
distribution mains, service lines, and
hydrants in the service area. Distribution
staff also replace significant segments of
distribution mains as part of the Capital
Investment Program (CIP).
• The Water Recreation Facility section
operates and maintains Loch Lomond
Recreation Area. This section is also
responsible for patrolling watershed
property and protecting source water
quality. Watershed Rangers also provide
in-person watershed education
programs for local elementary school
children at Loch Lomond.

Engineering - The Water Engineering section
is composed of two main functions:

Engineering and Utility and Environmental
Planning.
• The Water Engineering section provides
engineering, planning, project design,
and construction management necessary
for water facilities, as well as evaluation
and installation of water-saving
technologies. The section keeps current

21.1.18 FY 2025 Budget
with new technologies and water quality
issues, remaining sensitive to mitigation
of environmental impacts; reviews all
requests for water services; maintains
record of facilities, installations, and
maps; and oversees the Backflow
Prevention Program. In 2017, the
department embarked on an ambitious
system-wide reinvestment with the
Engineering section at the helm. This
program includes the replacement of
large storage tanks, pipelines, and the
exploration of increasing storage in
underground aquifers in partnership
with neighboring agencies.
• The Utility and Environmental Planning
group helps the department adequately
plan for the impacts of climate change
and building a resilient water system.

Foundational documents such as the
Urban Water Management Plan guide
future projects by ensuring there are
adequate water supplies. In addition,
there are numerous Federal, State, and
local environmental laws the department
must comply with to complete the
planned infrastructure investments in
the water system.

Customer Service - The Customer Service
group consists of three sections: Customer
Service; the Meter Shop; and
Customer Assistance. These three
sections interface with the public
frequently and strive to provide
excellent customer service.
• The Customer Service section
(Santa Cruz Municipal Utilities –
SCMU) provides customer service
for water, sewer, refuse, and
recycling services to the residents
and businesses of the City of Santa
Cruz, plus water services to other
parts of the county. This section
manages utility accounts and
billing, processes opening and
closing of accounts, and provides service
in response to customer requests.
• The Meter Shop section is responsible for
reading, inspecting, installing,
maintaining, and replacing water meters
in the service area. As part of a large
capital project, all water meters in the
service area are being replaced. The new
meters will give water customers more
timely and accurate usage information as
well as improve the billing process.
• The Customer Assistance section will
help customers resolve leaks and
implement a water affordability
program for low-income households.

Administration - The Water Administration
section coordinates and manages
department business by focusing on the
following operational areas: human
resources, finances, community relations,
safety, and regulatory compliance.

Administration is responsible for
maintaining a rate structure that reflects
cost-of-service, solicits Federal, State, and
other funds to finance the department's CIP,
and ensures adequate financial reserves.

This section also facilitates the
communication and interaction with the
Water Commission, City Council, City
Manager’s Office, and regulatory agencies.

21.1.19 FY 2025 Budget
Accomplishments and Goals
FY 2024 Accomplishments
Fiscal Sustainability & TransparencyStrong Business es & Vibrant DowntownHousingHomelessness ResponsePublic Safety & Community Well-BeingNatural & Built InfrastructureThriving Organization Issued a draft Environmental Impact
Report for the Graham Hill Water
Treatment Plant (GHWTP) Facility
Improvement Project������������
X X
Reached a significant milestone for the
GHWTP Tanks Replacement Project with
two of three tanks in service
������������
X X
Initiated a process to adopt a new
Enterprise Resource Planning (ERP)
software to replace the Utility Billing
System ������������
X X
Enhanced water system infrastructure
reliability with the replacement of pipelines
in Laguna, Majors, and Allegro Streets
������������
X X
Commissioned TESLA battery packs at the
largest energy-use facility, the Coast Pump
Station ������������
X X
Secured a $128 million, 3.77% interest rate,
35-year, Water Infrastructure Finance and
Innovation Act (WIFIA) loan to fund four
Capital Improvement Program projects
������������
X X
Completed the Felton Diversion Pipeline
Emergency Repair after damage sustained
in the 2022-2023 Winter storms ������������
X X
Achieved 100% compliance with safe
drinking water standards
������������ X X
Received certification from City Council of
the final Environmental Impact Report for
the Anadromous Salmonid Habitat
Conservation Plan ������������
X X

21.1.20 FY 2025 Budget
FY 2025 Goals
Fiscal Sustainability & TransparencyStrong Business es & Vibrant DowntownHousingHomelessness ResponsePublic Safety & Community Well-BeingNatural & Built InfrastructureThriving Organization Improve water system reliability by
converting Beltz 8 and 12 wells into
permanent Aquifer Storage and Recovery
wells ������������
X
Commence construction on two pipelines
(Brackney Landslide Risk Reduction project
and the Newell Creek Pipeline- Felton to
GHWTP) to enhance reliability of water
delivery
������������
X X
Begin construction on an intertie between
the City of Santa Cruz and Scotts Valley
Water District to augment THE City’s
water supply and facilitate regional
collaboration ������������
X X
Ensure reliable water supply to west-Santa
Cruz and UCSC by starting construction on
the 400,000-gallon U4 Tank replacement
project
������������
X X
Enhance water system infrastructure with
the replacement of pipelines in Spring
Street between High Street & Laurent
Street ������������
X X
Upgrade power systems at GHWTP to
increase power transfer reliability by
eliminating points of failure
������������
X X
Augment water supply reliability by
improving water extraction equipment at
Tait Wells 1B, 3B, 4 and Beltz Well 10
������������
X X
Secure up to $41 million, 2.3% interest rate,
30-year funding from the Drinking Water
State Revolving Fund to complete the
Newell Creek Pipeline
������������
X

21.1.21 FY 2025 Budget
Workload Indicators and Performance Measures
Workload Indicators
Strategic
Plan Focus
Area
FY
2021
Actual
FY
2022
Actual
FY
2023
Actual
FY
2024
Estimate
FY
2025
Goal
Drinking water consumed
(billions of gallons)
Public Safety
& Community
Well-Being

2.25 2.22 2.24 2.33 2.47
Number of phone calls,
emails and lobby visits
handled by Santa Cruz
Municipal Utilities’
Customer Service Unit
������������
Thriving
Organization 64,000 49,664 57,141 50,000 50,000
Amount of dollars of new
construction investments
(in millions) ������������
Natural &
Built
Infrastructure
$46.0 $52.7 $49.0 $45.3 $58.2
Performance
Measures
Strategic
Plan Focus
Area
FY
2021
Actual
FY
2022
Actual
FY
2023
Actual
FY
2024
Estimate
FY
2025
Goal
Compliance with drinking
water standards ������������
Public Safety
& Community
Well-Being
100% 100% 100% 100% 100%
Number of workers comp
claims requiring employee
absence greater than 30
days
Thriving
Organization;
Public Safety
& Community
Well-Being
0 0 1 0 0
Maintain excellent bond
ratings to ensure
favorable borrowing rates
thereby reducing cost to
customers ������������
Fiscal
Sustainability
&
Transparency;
Thriving
Organization
AA-/A+ AA-/A- AA-/A- AA-/A- AA-/APercentage of customer bills paid within 60 days*
Fiscal
Sustainability
&
Transparency
91% 97% 94% 97% 97%
* The Governor's Executive Order prohibited water shutoff from 4/2/20 to 12/31/21. Accordingly, FY21 is higher than normal delinquency rates. Also, late payment penalties were not reinstated until July 1, 2023.

21.1.22 Budget Summary -
FY 2025 Budget
Water
Fiscal Year 2024
Adopted
Budget
Amended*
Budget
Year-End
Estimate
Fiscal Year
2025
Proposed
Fiscal Year*
2023
Actuals
EXPENDITURES BY CHARACTER:

Personnel Services 15,109,353 17,930,284 18,235,636 16,419,121 20,053,023 Services, Supplies, and Other
Charges
14,066,473 18,381,436 18,763,829 16,638,933 19,967,517
Capital Outlay 554,625 510,732 626,816 133,766 536,400
Debt Service 10,832,871 6,017,146 6,017,146 6,284,588 7,271,880 Total Expenditures 40,563,323 42,839,598 43,643,426 39,476,408 47,828,820 EXPENDITURES BY ACTIVITY:

Water Administration 7101 6,221,176 7,738,018 7,984,270 7,628,173 8,683,772 Water Engineering 7102 2,437,009 3,283,373 3,563,662 2,721,511 4,004,086 Water Customer Services 7103 2,237,645 2,430,032 2,442,200 2,173,191 2,721,229 Water Conservation 7104 757,097 1,190,522 1,191,538 681,083 1,161,850 Water Resources 7105 2,017,164 2,713,228 2,567,847 2,258,366 2,832,022 Water Production 7106 6,659,390 8,271,435 8,611,690 7,800,193 9,325,113 Water Quality 7107 1,852,742 2,373,579 2,373,579 2,140,669 2,511,185 Water Distribution 7108 5,012,759 5,491,619 5,539,762 4,674,961 5,845,395 Water Recreation 7109 1,372,297 1,467,611 1,473,572 1,499,440 1,645,202 Water Operations 7110 364,875 749,490 750,476 708,215 727,582 Water Meter Shop 7113 990,578 1,293,545 1,307,683 986,018 1,354,505 Water Debt Service 7140 10,640,589 5,837,146 5,837,146 6,204,588 7,016,880 Subtotal Other Funds 40,563,323 42,839,598 43,643,426 39,476,408 47,828,820 Total Expenditures 40,563,323 42,839,598 43,643,426 39,476,408 47,828,820 RESOURCES BY FUND:

Technology Surcharge 295 - - 6,800 - -
Water 711 37,608,775 46,670,984 46,679,117 43,131,043 55,043,799 Water Rate Stabilization 2,801,970 3,082,527 3,082,527
Fund
713 3,163,368 3,301,080
Water System 1,646,801 1,042,612 1,042,612
Development Fees Fund
715 418,000 420,000
Total Resources 42,057,546 50,796,123 50,811,056 46,712,411 58,764,879 TOTAL AUTHORIZED PERSONNEL:

FY 2023 FY 2024 FY 2025
121.25 123.25 126.25
*Sums may have discrepancies due to rounding 21.1.23
FY 2025 Budget
Staffing
Positions
FY 2022
Amended*
FY 2023
Amended*
FY 2024
Amended*
FY 2025
Proposed
FY 2025
Change
Administrative Assistant I/II 2.00 2.00 2.00 2.00 -
Administrative Assistant III 2.00 2.00 2.00 2.00 -
Administrative Assistant III- Limited
Term - - - 1.00 1.00
Assistant Engineer I/II 4.00 4.00 4.00 4.00 -
Associate Planner I/II 3.00 3.00 4.00 4.00 -
Associate Professional Engineer 4.75 4.75 4.75 4.75 -
Chief Ranger 1.00 1.00 1.00 1.00 -
Community Relations Specialist** 1.00 1.00 - - -
Customer Service Manager 1.00 1.00 1.00 1.00 -
Deputy Water Director/Engineering Mgr 1.00 1.00 1.00 1.00 - Deputy Water Director/Operations Mgr 1.00 1.00 1.00 1.00 - Director of Water Department 1.00 1.00 1.00 1.00 -
Engineering Associate 1.00 1.00 1.00 1.00 -
Engineering Technician 2.00 3.00 3.00 3.00 -
Environmental Microbiologist I/II/III 2.00 2.00 2.00 2.00 - Environmental Programs Analyst I/II 1.00 1.00 3.00 3.00 - Laboratory Technician 2.00 2.00 2.00 2.00 -
Management Analyst 3.00 3.00 3.00 3.00 -
Principal Management Analyst 2.00 2.00 2.00 2.00 -
Principal Planner 1.00 1.00 1.00 1.00 -
Ranger I/II 3.00 3.00 3.00 3.00 -
Ranger Assistant 3.50 3.50 3.50 3.50 -
Senior Electrician 1.00 1.00 1.00 1.00 -
Senior Professional Engineer 1.00 1.00 2.00 2.00 -
Senior Ranger 2.00 2.00 2.00 2.00 -
Senior Water Distribution Operator 6.00 6.00 6.00 6.00 - Superintendent of Water Treatment &
Production 1.00 1.00 1.00 1.00 -
Superintendent of Water Distribution 1.00 1.00 1.00 1.00 - Utility Account Specialist 4.00 4.00 4.00 4.00 -
Utility Maintenance Technician 4.00 4.00 4.00 4.00 -
Utility Service Field Technician I/II 2.00 2.00 2.00 2.00 - Utility Service Representative I/II 6.00 6.00 6.00 6.00 - Utility Service Representative I/IILimited Term - - - 2.00 2.00 Utility Supervisor 1.00 1.00 1.00 1.00 -
Water Chief Financial Officer 1.00 1.00 1.00 1.00 -
Water Conservation Representative 2.00 2.00 - - -
Water Distribution Crew Leader III/IV 6.00 6.00 6.00 6.00 - Water Distribution Operator II/ III 9.00 9.00 9.00 9.00 - Water Distribution Sup V Chief
Distribution Operator 1.00 1.00 1.00 1.00 -
Water Facilities Electrical/Instr Tech II/III 1.00 1.00 1.00 1.00 -

21.1.24 FY 2025 Budget
Positions (continued)
FY 2022
Amended*
FY 2023
Amended*
FY 2024
Amended*
FY 2025
Proposed
FY 2025
Change
Water Facilities Field Supervisor 1.00 2.00 2.00 2.00 - Water Facilities Mechanical Tech II/III 2.00 2.00 2.00 2.00 - Water Facilities Mechanical Supervisor 1.00 1.00 1.00 1.00 - Water Meter Specialist I/II 3.00 3.00 3.00 3.00 -
Water Meter Specialist Lead - - 1.00 1.00 -
Water Meter Supervisor 1.00 1.00 1.00 1.00 -
Water Meter Technician 1.00 1.00 1.00 1.00 -
Water Quality Chemist I/II/III 2.00 2.00 2.00 2.00 -
Water Quality Manager 1.00 1.00 1.00 1.00 -
Water Resources Analyst 3.00 3.00 3.00 3.00 -
Water Resources Supervisor 1.00 1.00 1.00 1.00 -
Water SCADA Analyst - 1.00 1.00 1.00 -
Water Treatment Operator II/III/IV 8.00 8.00 8.00 8.00 - Water Treatment OIT II/III/IV 1.00 1.00 1.00 1.00 -
Water Treatment Sup IV/V-Chief Plant
Operator 1.00 1.00 1.00 1.00 -
Watershed Compliance Manager 1.00 1.00 1.00 1.00 -
Total 118.25 121.25 123.25 126.25 3.00 *Amended salary authorizations are adopted staffing plus any mid-year adjustments ** In FY 2024, 1.00 FTE Community Relations Specialist began reporting to City Manager’s Office

21.1.25 FY 2025 Budget
Organization Chart

21.1.26 Attachment 2: FY 2025-29 CIP Summary by Category

21.1.27 FY 2025-29 CIP Summary by Category (ProForma Spend) FY 2025
Estimate
FY 2026
Estimate
FY 2027
Estimate
FY 2028
Estimate
FY 2029
Estimate
FY 2025 - FY 2029
Total Estimate
Water Supply Augmentation Strategy 8,200,643 7,698,208 5,290,623 2,831,438 26,403,139 50,424,051 Raw Water Storage Projects 499,613 459,674 348,139 225,855 127,676 1,660,955 Raw Water Diversion and Groundwater System Projects 536,000 227,808 1,524,571 1,221,753 5,684,396 9,194,529 Raw Water Transmission 17,533,058 14,441,099 11,142,829 1,964,312 1,895,611 46,976,908 Water Treatment 20,254,291 40,565,635 39,505,201 33,085,141 33,078,225 166,488,493 Distribution System Storage, Water Main, & Metering Projects 3,472,079 4,456,790 946,357 956,131 989,596 10,820,952 Site Safety & Security 624,824 249,600 - - - 874,424
Staff Augmentation -Water Program Administration 2,506,789 2,495,974 2,489,715 2,472,251 1,553,943 11,518,672 Facility Upgrades for Emergencies & System Repair 556,910 30,000 30,000 - - 616,910 Contingency - Water Program Management Reserve 3,820,568 7,549,394 - - - 11,369,962 TOTAL 58,004,774 78,174,182 61,277,434 42,756,881 69,732,586 309,945,858 GHWTP Concrete Tanks Replacement, GHWTP Facilities Improvement Project, Facility & Infrastructure Improvements, River Bank Filtration Study, Beltz 12 Ammonia Removal, and Beltz Water Treatment Plant Upgrades
University Tank No. 4 Rehab/Replacement, Engineering and Distribution Main Replacement Projects, and Distribution System Water Quality Improvements Other Risk Management & Risk Reduction Projects
Graham Hill WTP Entrance Improvements, Security Camera & Building Access Upgrades, GHWTP SCADA Radio System Replacement, GHWTP SCADA I/O Comm Replacement, CMMS Software Replacement (Water share)
Union/Locust Admin Building Back Up Power Generator and Branciforte Streambank Restoration Water Supply Resiliency & Climate Adaptation Projects
ASR Planning, ASR Mid County Existing Infrastructure, ASR Mid County New Wells, Santa Margarita Groundwater, Water Supply Augmentation, Recycled Water Feasibility Study, and Intertie 1: SVWD & SCWD
Infrastructure Resiliency & Climate Adaptation Projects Newell Creek Dam Inlet/Outlet Replacement Project and Aerators at Loch Lomond Coast Pump Station Rehab, Tait Diversion Retrofit, Felton Diversion Pump Station Improvements, and Tait Well Rehab Newell Creek Pipeline Rehab/Replacement (Felton/GHWTP & Felton/Loch Lomond), Brackney Landslide Area Pipeline Risk Reduction, Felton Diversion Pipeline Emergency Repair, and North Coast Pipeline Repair/Replacement (Phase 4)

21.1.28 FY 2025
Adj. Budget Actual Adj. Budget Actual Adj. Budget Actual Adj. Budget Actual  Adj. Budget Est. Actual Proposed Personnel 15,686,336 13,520,355 16,020,609 13,774,554 16,714,151 14,449,468 17,911,780 15,109,353 18,235,636 16,419,121 20,053,023 Services, Supplies, & Other 15,936,598 12,742,073 18,258,645 13,504,675 16,402,854 13,601,279 17,223,256 14,066,473 18,763,829 16,638,933 19,967,517 Debt Service 2,492,786 3,060,716 3,536,295 3,686,655 4,098,626 4,298,354 10,231,706 10,832,871 6,017,146 6,284,588 7,271,880 Capital Equipment 775,246 601,675 573,335 383,593 762,898 375,401 570,523 554,625 626,816 133,766 536,400 TOTAL Adjusted Budget 34,890,966 29,924,819 38,388,884 31,349,476 37,978,530 32,724,502 45,937,265 40,563,322 43,643,426 39,476,408 47,828,820 FY 2024
BY CATEGORY OF EXPENSE
FY 2020 FY 2021 FY 2022 FY 2023
‐
10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Adj. Budget Actual Adj. Budget Actual Adj. Budget Actual Adj. Budget Actual Adj. Budget Est. Actual Proposed FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Figure 1
Historical Budget Comparison with FY 202
5 Proposed Budget
(BY CATEGORY

OF EXPEN
SE)
Personnel Services, Supplies, & Other Debt Service Capital Equipment Attachment 3: FY 2025 Water Department Budget Analytics Proposed FY 202
5 Operating Budget: Fund 711, 713 & 715

21.1.29 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY2025 FY 2024 to FY 2025 Actual Actual Actual Actual Est. Actual Proposed % Change Administration 5,738,169         5,838,628 6,181,308 6,221,176 7,628,173 8,683,772 13.8% Engineering 2,366,620 1,969,117 2,143,153 2,437,009 2,721,511 4,004,086 47.1% Customer Service 1,875,267 1,985,247 2,119,794 2,237,645 2,173,191 2,721,229 25.2% Meter Shop 719,815 861,595 803,338 990,578 986,018 1,354,505 37.4% Conservation 788,015 726,902 749,419 1,036,022 681,083 1,161,850 70.6% Operations 393,104 2,039,642 416,866 364,875 708,215 727,582 2.7% Resources Management 1,780,480 500,959 1,515,018 2,711,128 2,258,366 2,832,022 25.4% Production 6,122,369 6,641,345 6,978,056 6,659,390 7,800,193 9,325,113 19.5% Quality Control 1,590,499 1,601,453 1,844,413 1,852,742 2,140,669 2,511,185 17.3% Distribution 4,680,536 4,428,150 4,220,434 5,012,759 4,674,961 5,845,395 25.0% Recreation 1,031,970 1,117,544 1,281,323 1,372,297 1,499,440 1,645,202 9.7% Debt Service 2,837,975 3,604,550 4,298,354 10,640,589 6,204,588 7,016,880 13.1%Drought Response   30,890 ‐ 173,027 ‐ ‐ ‐ TOTAL  29,924,819 31,346,021 32,724,501 40,563,322 39,476,408 47,828,820 21.2% Proposed FY 2025 Operating Budget: Fund 711, 713 & 715
BY SECTION

21.1.30 ‐
5,000,000
10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Actual Actual Actual Actual Est. Actual
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Figure 2
Historical Budget Comparison
with FY 2025 Proposed Budget
(BY DEPARTMENT SECTION)
Drought ResponseDebt ServiceRecreationDistributionQuality ControlProductionResources ManagementOperationsConservationMeter ShopCustomer ServiceEngineeringAdministration

21.1.31 FY 2020 to FY
2021
FY 2021 to
FY 2022
FY 2022 to
FY 2023
FY 2023 to
FY 2024 Average
FY 2020 to
2024
Personnel 1.8% 1.9% 4.9% 13.6% 5.6% 21.4%
Services, Supplies, & Other 5.6% 6.0% 0.7% 22.3% 8.7% 30.6% Debt Service 17.0% 20.5% 16.6% 46.2% 25.1% 105.3%
Capital Equipment (56.9%) (36.2%) (2.1%) (64.4%) (39.9%) (77.8%) TOTAL (w/o transfers) 4.5% 4.8% 4.4% 20.6% 8.6% 31.9%
FY 2020 to FY
2021
FY 2021 to
FY 2022
FY 2022 to
FY 2023
FY 2023 to
FY 2024
FY 2023 to
FY 2025 Average
FY 2020 to
2025
Personnel 2.1% 2.1% 4.3% 9.1% 10.0% 5.5% 27.8%
Services, Supplies, & Other 14.6% 14.6% (10.2%) 14.4% 6.4% 8.0% 25.3% Debt Service 41.9% 41.9% 15.9% 46.8% 20.9% 33.5% 191.7% Capital Equipment (26.0%) (26.0%) 33.1% (17.8%) (14.4%) (10.3%) (30.8%) TOTAL (w/o transfers) 10.0% 10.0% (1.1%) 14.9% 9.6% 8.7% 37.1% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Personnel (13.8%) (13.8%) (14.0%) (13.5%) (10.0%)
Services, Supplies, & Other (20.0%) (20.0%) (26.0%) (17.1%) (11.3%) Debt Service 22.8% 22.8% 4.3% 4.9% 4.4%
Capital Equipment (22.4%) (22.4%) (33.1%) (50.8%) (78.7%) TOTAL (w/o transfers) (14.2%) (14.2%) (18.3%) (13.8%) (9.5%) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Administration 19.2% 19.2% 18.6% 18.9% 19.3% 18.2%
Engineering 7.9% 7.9% 6.3% 6.5% 6.9% 8.4%
Customer Service 6.3% 6.3% 6.3% 6.5% 5.5% 5.7%
Meter Shop 2.4% 2.4% 2.7% 2.5% 2.5% 2.8%
Conservation 2.6% 2.6% 2.3% 2.3% 1.7% 2.4%
Operations 1.3% 1.3% 6.5% 1.3% 1.8% 1.5%
Resources Management 5.9% 5.9% 1.6% 4.6% 5.7% 5.9%
Production 20.5% 20.5% 21.2% 21.3% 19.8% 19.5%
Quality Control 5.3% 5.3% 5.1% 5.6% 5.4% 5.3%
Distribution 15.6% 15.6% 14.1% 12.9% 11.8% 12.2%
Recreation 3.4% 3.4% 3.6% 3.9% 3.8% 3.4%
Debt Service 9.5% 9.5% 11.5% 13.1% 15.7% 14.7%
Drought Response 0.0% 0.0% 0.1% 0.5% 0.0% 0.0%
TOTAL  100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
% of Change Comparing Actuals Expenditures
Budget vs Actuals
% of Change Comparing Budgeted Amounts
Percent of Total Budget
Budget Trends by Percent

21.1.32 FY 2025-29 Financial Pro Forma
Fiscal Year 2025 2026 2027 2028 2029
Revenues
Fixed Fee Revenue 5,200,863 5,562,041 5,947,543 6,408,299 7,072,124 Volumetric Revenue 47,794,814 50,685,858 55,077,268 59,344,106 65,491,456 Elevation Surcharges 352,788 352,788 352,788 352,788 352,788 Rate Stabilization Revenue 3,331,671 3,301,080 3,355,063 3,355,063 3,355,063 Total Rate Revenue 56,680,136 59,901,767 64,732,663 69,460,257 76,271,432 Non-Rate Revenue
Other Income 844,743 4,000,000 4,000,000 4,000,000 4,000,000 Investment Income 1,240,000 1,240,000 1,240,000 1,240,000 1,240,000 Total Non-Rate Revenue 2,084,743 5,240,000 5,240,000 5,240,000 5,240,000 Total Revenues 58,764,879 65,141,767 69,972,663 74,700,257 81,511,432 Operating Expenses
Personnel 20,053,023 19,718,617 21,098,920 22,575,844 24,156,154 Services, Supplies & Other 19,967,517 20,965,892 22,014,187 23,114,896 24,270,641 Capital Outlay 536,400 563,220 591,381 620,950 651,997
Other Operating Expenses - - - - -
Total Operating Expenses 40,556,939 41,247,729 43,704,488 46,311,691 49,078,792 Net Operating Revenues 18,207,940 23,894,038 26,268,176 28,388,566 32,432,640 Capital Expenditures 58,004,777 78,174,182 61,277,436 42,756,880 69,732,589 Grant Funded 5,035,000 10,085,000 1,060,000 -
SRF Funded 9,965,232 31,216,782 30,853,669 31,712,161 32,609,255 WIFIA Funded 27,630,818 25,204,482 21,554,801 2,252,280 2,297,931 Pay-Go Funded 3,443,951 8,222,207 7,401,326 5,009,659 13,755,327 Debt Funded (Tax-Exempt Bonds) 11,929,776 3,445,711 407,640 3,782,780 21,070,076 Debt Service 7,326,569 10,450,874 10,452,287 18,910,855 21,577,773 Net Income 7,437,420 5,220,957 8,414,563 4,468,052 (2,900,460) Ending Cash Balances by Fund
Fund 717 (Emergency Reserve) 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Fund 713 (Rate Stabilization) 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Fund 716 (90 Day Operating Reserve) 10,000,341 10,170,673 10,776,449 11,419,321 12,101,620 Fund 711 (Water Operations) 26,015,486 31,066,111 38,874,897 42,700,078 39,117,318 Coverage and Targets
Debt Service Coverage (W/Out Reserves) 2.49 2.29 2.51 1.50 1.50 Debt Service Coverage Target 1.50 1.50 1.50 1.50 1.50
Debt Service Coverage (W/Reserves) 9.18 7.48 8.51 5.05 4.48 Days' Cash (Includes only Funds 711 & 716) 324 365 415 427 381 Days' Cash Target 180 180 180 180 180
Attachment 4: FY 2025-2029 Water Department Financial Pro Forma

21.1.33 WATER COMMISSION

INFORMATION REPORT
DATE: 03/25/2024
AGENDA OF: 04/01/2024
TO: Water Commission
FROM: David Baum, Chief Financial Officer
Malissa Kaping, Principal Management Analyst
SUBJECT: Fiscal Year 2024 2nd Quarter Unaudited Financial Report RECOMMENDATION: That the Water Commission accept the Fiscal Year 2024 2 nd Quarter
Unaudited Financial Report.

BACKGROUND: On June 6, 2016, the Water Commission approved the Water Department’s Long-Range Financial Plan (LRFP) which created a framework to ensure financial stability and maintain the credit rating needed to debt finance major capital investments planned for the utility. The Water Commission reviewed an updated LRFP during the summer of 2021 and recommended to the City Council that it approve the plan at their meeting on August 23, 2021.

The updated LRFP maintains the 2016 recommended financial targets for debt service coverage ratio (1.5x), a combined 180-days cash on hand, $3 million in an Emergency Reserve, and a $10 million Rate Stabilization Reserve.

DISCUSSION: The attached financial report presents the Water Department’s unaudited fiscal outlook through the second quarter of Fiscal Year (FY) 2024 and is a snapshot of the transactions posted during the time period of July 1, 2023, through December 31, 2023. Page 1 of the attached Financial Report is focused on the Operating budget and Page 2 reflects the Capital budget. Noteworthy items are discussed on the following pages.

Operating Revenues
Water sales are recovering from the impacts of the COVID-19 pandemic and recent drought.

Water sales are 7% above budgeted amounts for FY 2024. Residential consumption is up 9%, and overall consumption is up 5%. The water rate increased 16.4% on July 1, 2023.

Attachment 5: Example of Quarterly Financial Reports Prepared for and Distributed to the Water Commission

21.1.34 Operating Expenses
Operating expenses are trending 18% below the Adopted Budget. Salaries and wages are down 10% and employee benefit costs are down 19%, primarily due to the 15-17 vacant positions during the first six months of FY 2024. The vacancy rate is approximately 12-14% of budgeted positions; the budgeted cost for personnel assumes a 10% vacancy rate. Approximately $742,000 in personnel expenses are charged to capital projects; the budgeted amount is $499,000, which drove down the operating expenditures. Staff are encouraged to track hours spent on projectrelated work in order to accurately reflect the true cost of completing capital projects in accordance with generally accepted accounting principles.

Significant operating expenses which trended lower than the budget during this quarter are as follows:
• Maintenance for water systems was under budget by $379,000. Funding in this account is primarily spent on water quality monitoring and regulatory compliance, including fisheries biology support, juvenile salmonid and stream habitat support, and the Anadromous Salmonid Habitat Conservation Plan implementation. • Other professional services were a total of $384,000 below budget during this quarter.

The largest expense in this category was the Badger meter-reading software licensing cost, which is paid monthly and is the largest encumbrance for the year at $196,800, although only $49,330 was billed in the first six months. The second largest expense in this category paid last quarter was for a classification study for City of Santa Cruz Water Department (SCWD)’s customer service, customer assistance, and meter shop staff which totaled $45,000. The third largest expense in this category was a $22,540 charge paid to Abernathy Schwartz for the Lead and Copper Rule predictive modeling. Other expenses in this category pertain to outside laboratory water monitoring, water resource management, landscape management, communications, and graphics. • Electricity costs for the first six months were $655,000, which is trending $107,000 under the Adopted Budget.
• Chemical costs for the first six months were $342,000, which is trending $225,000 under the Adopted Budget. Chemical prices are now trending downward after increasing significantly due to COVID-related shortages.

A significant expense trending higher than predicted is Merchant Bank Fees, which are running $96,000 over budget. At the current pace, these fees will exceed $500,000 this year. These fees arise when credit cards are used by ratepayers. The fee is currently absorbed by the Water Department; however, discussion is underway to reassign the bank fee associated with credit card use to the customer.

These highlighted operating expenses are paid from the Services, Supplies and Other line items.

21.1.35 Capital Investment Program (CIP) Highlights
Through December 31, 2023, nearly $14.2 million was spent on CIP work. This is an increase of $10.8 million over what was spent in the first quarter of FY 2024. The following table compares the spending of the top ten projects during the two different periods.

The largest change in spending was seen in the Felton Diversion Pipeline Emergency Repair project which started and completed construction during the 2nd quarter of FY 2024. The cost of the Engineering Water Main Replacement Project also increased significantly after completion of replacement of two water main segments, one on Soquel Avenue and the other on Soquel Drive. The change in spending on the Graham Hill Water Treatment Plant (GHWTP) Concrete Tanks Project, GHWTP Facilities Improvement Project (FIP), and Newell Creek Dam Inlet/Outlet Project is consistent with previous quarters and is due to the overall cost of these projects.

The $14.2 million spent on capital work during the first six months of FY 2024 is well below the current FY 2024 budget appropriations of $82.3 million. The unspent budget appropriations will be carried forward into FY 2025 and will reduce our FY 2025 budget request. Our budget practices since 2018 have been to include project contingencies as well as funding a management reserve to cover worst-case scenario unknowns. This very conservative budget approach has led to inflated budget appropriations in previous years. Now that we have this experience, staff are analyzing how these large contingencies can be reduced while still managing risk appropriately.

21.1.36 FISCAL IMPACT: None.

PROPOSED MOTION: Motion to accept the FY 2024 2
nd Quarter Financial Report.

ATTACHMENTS:

1. Santa Cruz Water Department Financial Report

21.1.37 Financial Summary
FY 2024 Adjusted
Budget YTD Budget Actual Variance $+/(-)
Variance %
+/(-)
Operating Revenues
Water Sales 47,691,935 23,845,968 25,424,981 1,579,014 7% Other Charges for Services 1,570,932 785,466 1,462,462 676,996 86% Other Revenues 498,777 249,389 190,272 (59,117) (24%)
Grants 5,043,995 2,521,998 270,815 (2,251,183) (89%)
Investment Earnings 180,715 90,358 292,000 201,643 223% Total Operating Revenues 54,986,354 27,493,177 27,640,530 147,353 1% Operating Expenses
Salaries & Wages 10,933,325 5,466,662 4,946,146 (520,516) (10%) Employee Benefits 7,263,373 3,631,687 2,929,649 (702,037) (19%) Services, Supplies & Other 19,377,343 9,688,672 7,576,085 (2,112,587) (22%) Capital Outlay 576,816 288,408 82,441 (205,967) (71%)
Debt Service - Principal & Interest 5,113,838 2,556,919 2,397,540 (159,379) (6%) Total Operating Expenses 43,264,694 21,632,347 17,931,861 (3,700,486) (17%) Net Operating Revenue (Loss) 11,721,660 5,860,830 9,708,669 3,847,839 66% Debt Service Coverage (Target >= 1.50x) 3.29x 3.29x 5.05x Revenues
Expenses
Cash
Fund Balances YTD Balance Year End
Target Balance
711 - Enterprise Operations 16,138,983 9,407,060
713 - Rate Stabilization 6,207,431 10,000,000
715 - System Development Charges 7,641,794 N/A
716 - 90 Day Operating Reserve 8,951,804 9,407,060
717 - Emergency Reserve 3,063,008 3,000,000
718 - Mount Hermon June Beetle Endowment 145,864 144,000 719 - Equipment Replacement 597,520 700,000
Total-all funds 42,746,404
Days' Cash (Includes only Funds 711 & 716) 240 180
Note: State Revolving Fund (SRF) Loan funds receivable totaling $12.1 million are due to SCWD as of 11/28/22.

Average number of days waiting for the $78.9 million reimbursed-to-date is 117. A $50 million line of credit was obtained in June 2021 to ensure adequate cash to pay vendors.

SANTA CRUZ WATER DEPARTMENT FINANCIAL REPORT
Fiscal Year 2023-24 through December 31, 2023
(Unaudited)
Actual vs. YTD Budget
FY 23, Q2, $13.8 million
Salaries & Wages Employee Benefits Services, Supplies & Other -
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
FY 21 FY 22 FY 23 FY 24
Water Consumption (in gallons)
Single Family Residential Commercial Multifamily Residential IRR/N Coast UCSC
-
1,000
2,000
3,000
4,000
5,000
6,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Water Sales (in thousands)
FY 21 FY 22 FY 23 FY 24
FY 24, Q2, $15.5 million
Salaries & Wages Employee Benefits Services, Supplies & Other

21.1.38 Project Titles
Prior Year
Actuals
FY24 Actuals
thru 12/31/23
Total Project Cost
Estimate (1)
(escalated dollars)
Project
Schedule

WATER SUPPLY RESILIENCY & CLIMATE ADAPTATION PROJECTS
Water Supply Augmentation Strategy
Beltz Wellfield Aquifer Storage and Recovery
ASR Planning 3,468,584 461,127 5,997,248 2019-2024
ASR Mid County Existing Infrastructure 727,865 291,179 11,239,422 2020-2031 ASR Mid County New Wells - - 700,610 2021-2027
Santa Margarita Aquifer Storage and Recovery and In Lieu Water Transfers and Exchanges ASR Santa Margarita Groundwater 23,382 6,026 343,243 2020-2027 ASR New Pipelines - - - 2022-2027
In Lieu Transfers and Exchanges - - -
Studies, Recycled Water, Climate Change, Aquifer Storage and Recovery Water Supply Augmentation 3,019,306 427,953 176,132,721 2019-2033 Recycled Water Feasibility Study 915,675 609,895 2,564,411 2018-2023 Subtotal Water Supply Augmentation Strategy 8,154,812 1,796,180 196,977,655 Subtotal Water Supply Resiliency and Climate Adaptation Projects 8,154,812 1,796,180 196,977,655

INFRASTRUCTURE RESILIENCY AND CLIMATE ADAPTATION
Raw Water Storage Projects
NCD I/O Replacement Project 90,947,902 1,433,682 101,190,939 2018-2024 Aerators at Loch Lomond 646,897 53,522 712,897 2018-2024 Subtotal Raw Water Storage Projects 91,594,799 1,487,204 101,903,836 Raw Water Diversion and Groundwater System Projects
Laguna Creek Diversion Retrofit 2,970,354 8,724 2,953,021 2018-2023 Tait Diversion Retrofit 575,373 4,730 10,294,485 2018-2030 Coast Pump Station Rehab/Replacement - - 11,894,222 2029-2033 Felton Diversion Pump Station Improvements 353,539 - 4,260,054 2020-2029 Beltz 12 Ammonia Removal 757,370 406,553 2,528,353 2021-2025 Beltz WTP Upgrades 304,628 151,817 18,281,125 2022-2028 Subtotal Raw Water Diversion and Groundwater System Projects 4,961,264 571,825 50,211,260 Raw Water Transmission
Newell Creek Pipeline Felton/GHWTP 3,386,004 219,652 41,982,557 2019-2027 Newell Creek Pipeline Felton/Loch Lomond - - 46,549,340 2027-2033 Brackney Landslide Area Pipeline Risk Reduction (2) 2,099,659 296,681 14,439,908 2020-2026 North Coast Pipeline Repair/Replacement - Ph 4 - - 89,691,553 2026-2032 Felton Diversion Pipeline Emergency Repair (2) 181,357 2,435,774 3,356,736 2023 Subtotal Raw Water Transmission 5,667,020 2,952,107 196,020,094 Surface Water Treatment
GHWTP Concrete Tanks Replacement 26,962,064 2,453,690 45,714,566 2018-2026 GHWTP Facilities Improvement Project 16,516,166 1,857,176 160,520,528 2018-2030 River Bank Filtration Study 1,003,775 - 7,225,332 2018-2028 GHWTP SCADA Radio System Replacement 2,520 - 247,344 On-going GHWTP SCADA IO Hardware & Wiring Upgrade - - 244,688 2022-TBD Subtotal Surface Water Treatment 44,484,525 4,310,866 213,952,458 Distribution System Storage, Water Main and Pressure Regulation, and Metering Projects University Tank No. 4 Rehab/Replacement 787,109 163,838 6,714,841 2018-2027 Meter Replacement Project 12,557,629 445,922 14,016,438 2018-2023 Engineering and Distribution Main Replacement Projects (3) 13,312,479 1,503,132 28,923,622 On-going Distribution System Water Quality Improvements 41,760 - 119,139 2021-TBD Facility & Infrastructure Improvements 10,359 106,649 8,617,604 On-going Intertie 1: Santa Cruz - Scotts Valley (2) 788,086 200,337 10,260,483 2022-2026 Subtotal Distribution Storage, Wmain Pressure Reg, and Metering 27,497,421 2,419,877 68,652,127 Subtotal Infrastructure Resiliency and Climate Adaptation 174,205,029 11,741,878 630,739,775

OTHER RISK MANAGEMENT AND RISK REDUCTION PROJECTS
Site Safety and Security
Security Camera & Building Access Upgrades 325,479 41,500 741,497 On-going GHWTP Gate Entrance Upgrades 899,901 663 1,111,803 2020-2023 CMMS Software Replacement - Water Share 316,956 132,005 569,505 2022-2023 Subtotal Site Safety and Security 1,542,335 174,169 2,422,805 Staff Augmentation
Water Program Administration (4) 2 450,927 13,574,444 On-going Subtotal Staff Augmentation 2 450,927 13,574,444
Contingency
Management Reserve (5) - - 11,369,962 On-going
Subtotal Contingency - - 11,369,962
Storage for Emergency Facility and System Repair Tools and Equipment Union/Locust Admin Building Back Up Power Generator 12,549 2,906 100,000 TBD Subtotal Storage for Emergency and System Repair 12,549 2,906 100,000 Other Projects
Branciforte Streambank Restoration 86,625 33,081 815,583 TBD Subtotal Other Projects 86,625 33,081 815,583
Subtotal Other Risk Management and Risk Reduction Projects 1,641,511 661,083 28,282,794 GRAND TOTAL 184,001,352 14,199,141 856,000,224
(4) Staff augmentation budget appropriations and actual expenses are transferred to specific projects during fiscal year-end process. (5) Management Reserve budget appropriations are transferred to specific projects upon Change Management approval. (1) Project Cost Estimates are FY24 adopted budget plus FY24 adjustments/carry-forwards plus FY25-38 projections from Oct 2023. (2) Expenses are not adjusted for grant funding.
(3) Prior year actuals for Main Replacements start in FY19.

CIP Summary: Fiscal Year 2024, 2nd Quarter

21.1.39 M E M O R A N D U M
DATE: June 7, 2024
TO: City Council
FROM: Elizabeth Cabell, Director of Finance
SUBJECT: Budget Hearing Follow-up
The table below identifies requests and questions raised by Council at the May 28 budget hearings.

Identified FY 2025 corrections and requested changes will be reflected in the final FY 2025 Adopted Budget document but are not part of the Budget Adoption Staff Report. The Adopted Budget will be posted to the City web site by July 1, 2024.

Request/Question Department Status/
Timing
Comments
Look at habitually vacant positions to determine if
adjustments need to be made to compensation
HR On-going Habitually vacant positions will be reviewed through the upcoming 2024 Compensation Study. Identification of those classifications is underway.

Examine impact of not charging public safety
impact fees on new affordable housing projects
Planning On-going When the City Council adopted the Childcare and Public Safety Impact fees in April 2021, 100 percent affordable housing projects were exempted, as defined in Santa Cruz Municipal Code (SCMC) 18.49.050 and 18.48.050. The City is currently undergoing a fee study project wherein a full review of the impact of these fee exemptions will be provided. At that time, anticipated to be in October, Council will have the option to give direction for an ordinance change if the desire is to no longer exempt these fees from these projects.

Add a goal regarding community engagement on
housing projects
Planning Done Planning added the following goal to the FY 2025 budget – Update community engagement and outreach approach for housing development projects.

Add a goal on streamlining and reducing
processing time for building permits
Planning Done Planning modified its FY 2025 goal Continue to work with other departments to streamline permitting processes for new business and expansion of existing businesses to add with a special focus on the plan check process.

Identify a goal/strategy for Pogonip after
demolition of the clubhouse
Parks & Rec FY 2026 FY 2025 P&R goal is to implement a new Open Space Management structure.

This will create better operational capacity for open space management, including revisiting particular master plan documents in future years. There continues to be a lot of community interest in the Pogonip club house but many of the proposals and suggestions brought forward are not consistent with the Parks Master Plan 2030 and therefore, not feasible. Staff will continue to work

21.1.40 Request/Question Department Status/
Timing
Comments
with Council and the community to develop a plan for Pogonip as part of future budget cycles.

Add a goal to explore partnerships like “Adopt a
Park”
Parks & Rec Done P&R added the following goal to the FY 2025 budget – Sign at least three new or updated memorandums of understanding with key partners, including those for the Adopt-a-Park program.

Study the possibility of an organized July 4th event
in 2026
Parks & Rec
PD
Done P&R added the following goal to the FY 2025 budget –Develop three (3) new community events in FY 2025 that support local business, recognize federal holidays and create community traditions, and return to Council by November 2024 with a budget adjustment request to support these new events.

At this time, the Police Department cannot support the recommendation of a 4th of July event due to the anticipated stretch on public safety resources during a time of year when the City is already saturated with visitors.

Add a goal regarding police sting operations PD Done PD added the following goal to the FY 2025 budget – Increase compliance inspections of alcohol, cannabis and tobacco-related establishments.

Include reference to Child and Youth Bill of Rights
and Youth Liaison in the budget and clarify
department overseeing the work
City
Manager’s
Office
Done The City Manager’s Office will be the department to oversee this work. The City Manager’s Office modified its listing of Core Services in its department summary - Further the City’s community well-being through equity, public health, sustainability, and youth-based policies and programs.

The City Manager’s Office modified its FY 2024 accomplishment to be - Launched first grant funding process for youth-based community programs, supported on-going high school youth liaison role, and delivered state of Child and Youth Well-being report.

The City Manager’s Office added a workload indicator - On-going stewardship of key program areas in the form of recurring progress reports, which will have a footnote that will detail examples of those reports, i.e. Climate Action Plan, Health in All Policies, State of Child and Youth Well-being, Independent Policy Auditor, and Citywide Strategic Plan. For FY 2025, the goal for this item will be “5.”
Add $10,000 for Children’s Fund reporting City
Manager’s
Office
Done The Children’s Fund will cover $10,000 toward proposed annual reporting, with additional funding needed from the General Fund.

Identify options for the purchase of a fire engine in
the FY 2025 budget and on-going management of
apparatus replacement
FD On-going The FY 2025 estimate for a fire engine is $900,000. The current contract with UCSC specifies that UCSC will contribute 17% towards the purchase of a fire apparatus. Therefore, the cost to the City of a new engine would be $747,000.

The Fire Department added the following goal to the FY 2025 budget – Collaborate with the Finance Department to determine an apparatus replacement purchasing schedule and identify funding models and sources. The

21.1.41 Request/Question Department Status/
Timing
Comments
results of this collaboration will be shared with City Council at the FY 2025 midyear budget review. This may include:
• Creating an apparatus fund to store contributions specifically for the purchase of fire apparatus
• Identifying the required annual commitment to an apparatus fund that will bring the City closer to the recommended timeline for replacement of fire apparatuses
• Options for purchase may include:
• Down payment accompanied by a payment plan
• Utilize fund balance / reserves
• Move funds from current CIP projects
Considerations: Departments have reprogrammed $650,000 in CIP project budgets from current and past projects to meet FY 2025 CIP needs. Determining the availability of additional funding will draw from critical CIP projects that were given higher priority through the CIP Prioritization Process and/or that have faced deferment to the point that they create a major City liability issue and/or safety need. • Reduce department operating budgets to cover the cost of a new engine Considerations: Departments were asked to maintain a status quo budget for FY 2025, so distributing cuts in the amount of a new fire engine across departments will result in the potential reduction of services to the public.
• Pursue grant funding to purchase a new fire engine
Considerations: The Fire Department has undergone a great amount of work to pursue grants that the department would qualify for and have not been able to find any. There are grants available for the purchase of electric fire engines, but applying for and securing these grants is a lengthy process and would not result in the purchase of an engine in FY 2025. The department will continue to explore this option, with assistance from the City’s Climate Action staff, for the fire engine purchase that is to be replaced in FY 2026. Cost for infrastructure alterations and upgrading electrical utilities of the facility housing the fire engine will also be needed.
• A financed lease purchase
Considerations: Utilize financing through a lease purchase option, will stretch the payment out over multiple years and allow the City to take advantage of the manufacturer’s pay-up-front discount via the financing agency. However, this option would require the City to draw down on fund balance / reserves to cover the down payment and the

21.1.42 Request/Question Department Status/
Timing
Comments
City would incur interest costs, making the fire engine more expensive overall.

The following rough estimates were made based on standard fire apparatus financing options:
• A 5-year plan, with an estimated 5.55% interest rate, would result in an estimated total City cost of $857,150
• A 7-year plan, with an estimated 5.77% interest rate, would result in an estimated total City cost of $909,755
• A 10-year plan, with an estimated 6.02% interest rate, would result in an estimated total City cost of $996,090
Add an additional $25,000 to tenant assistance and
eviction prevention in the City Council department
budget
City Council Done This additional budget amount can be seen in the City Council department budget summary.

Provide fund balance estimates for Enterprise
funds
Finance Done The criteria for the Distinguished Budget Award from the Government Finance Officers Association requires that an estimated fund balance be provided for governmental funds. The same is not required for enterprise funds. The Finance Department recognized that the best representation of the financial health of its enterprises is already provided in the Annual Comprehensive Financial Report (ACFR), and as of 2024, the estimate of enterprise fund balances was no longer included in the Annual Budget.

In response to this question from Council, the Financial Summaries section of the FY 2025 Annual Budget will be updated as follows:
• Net position for enterprise funds as stated in the most recent audited ACFR will be provided
• The Appendix, “Differences Between the ACFR and the Budget Document” will be moved to the Financial Summaries section following the enterprise fund balances listing
Providing the information on the differences between the ACFR and the Budget so that it is coupled with information on enterprise fund balances will allow readers to see how the ACFR fund balances are reconciled with the annual budget document since different bases of accounting are used in the different financial reports. These pages provide a reconciliation between the two financial reports for the Water Fund making it clear which non-budgetary accounts, such as pension liabilities, principal loan payments and capital expenditures are included in the ACFR, but not in the budget.

Using a budgetary basis of accounting to determine the fund balance of the enterprise funds is not an accurate representation of the financial health of those

21.1.43 Request/Question Department Status/
Timing
Comments
funds and we recommended reviewing the ACFR statement of revenues, expenses, and changes in new position for information on the financial health and sustainability of the City’s enterprise funds.

The Budget Team of the Finance Department will endeavor to create more financial transparency in the spirit of this Council request in the FY 2026 Annual Budget by providing the reconciliations on the “Differences Between the ACFR and the Budget Document” for all the Enterprise Funds.

21.1.44 Fiscal Year 2025
Budget Adoption
Tracy Cole, Budget Manger
June 11, 2024

21.1.45 Request
Add a goal regarding community engagement on housing projects Add a goal on streamlining and reducing processing time for building permits Add a goal to explore partnerships like “Adopt a Park”
Add a goal to develop community events such as July 4th celebration Add a goal regarding police sting operations
Clarify department overseeing the work of the Child and Youth Bill of Rights and Youth Liaison Add $10,000 for Children’s Fund reporting
Add an additional $25,000 to tenant assistance and eviction prevention Provide fund balance estimates for Enterprise funds
Budget Hearing Follow up Items
COMPLETED and ADDED TO THE FY 2025 BUDGET

21.1.46 Request Status
Review habitually vacant
positions
Will be addressed as part of 2024 compensation study
Public safety impact fees
exemption
Full review of exemptions and options will be presented to Council in October
Pogonip Clubhouse On-going review for feasibility and consistency with Parks Master Plan 2030
Fire apparatus Fire and Finance will meet to identify solutions including creation and funding of a Fire Apparatus Fund. Results will be shared with Council at midyear review
Budget Hearing Follow up Items

ON-GOING

21.1.47 Adopt the budget of the City of Santa Cruz for Fiscal Year 2025, including the Capital Investment Program, as proposed in the document entitled “City of Santa Cruz Annual Budget Fiscal Year 2025”. 1 2
3 Accept the Water Commission’s recommendations regarding the Water Department’s FY 2025 Operating and Capital Investment Program.

Motion to adopt a resolution amending the Classification and Compensation Plans for the FY 2025 budget personnel complement by implementing the approved FY 2025 budget/position changes in several departments.

From item 21.1
From item 21.2
Recommended Actions

21.1.48 City Council

AGENDA REPORT
DATE: 05/23/2024
AGENDA OF: 06/11/2024
DEPARTMENT: Human Resources
SUBJECT: Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, City Manager’s Office, Finance, Parks and Recreation, Water, Economic Development and Housing, Information Technology, Police, Human Resources, and the Library (HR)
RECOMMENDATION: Motion to adopt a resolution amending the Classification and Compensation Plans for the FY 2025 budget personnel complement by implementing the approved FY 2025 budget/position changes in several departments.

BACKGROUND: Amendments related to City classifications are a standard part of the City’s annual budget process. City departments with staffing and position recommendations that change the number of authorized full-time equivalent (FTE) positions in the City’s position listing must be approved by City Council.

DISCUSSION: Fiscal Year (FY) 2025 Budget Adoption
Departments have determined, through careful analysis and with the assistance of the Human Resources Department that the recommendations listed on the attached “Personnel Profile” will improve their operational functioning.

For FY 2025, there will be a net increase of twenty-four and three quarters (24.75 FTE) positions citywide. Each deletion and addition include varying personnel cost allocations to the General Fund, Enterprise, and other funds which are identified in the attached HR Resolution.

A description of these position changes are reflected in the attached document “Personnel Profile”.

21.2.1 Administrative Updates to the City Classification and Compensation Plan In addition to the newly requested FTEs for FY 2025, three (3) additional items are included with this agenda for administrative processing and with no additional fiscal impact:

1. Combining Two Part-Time Positions into One Full-Time Position Given the vacancy of two part- time Parking Office Representative positions, the Public Works and HR Departments recommend combining the two part-time positions into one full-time position. This increases efficiency of operations for Human Resources and Finance. There is no fiscal impact.

2. Increasing .25 FTE Hours of a Position - Grant Fund Award One three quarters (.75 FTE) position of Homelessness Response Shelter and Outreach Specialist I/II is being recommended to increase to full- time (1.0 FTE) for a period of two years as a result of a four-million-dollar award. This will assist with the workload of the homelessness outreach team as they serve the increasing homelessness population and assist with connecting those in need to relevant social services. Additionally, because of the Oversized Vehicle Ordinance, the program has increased interactions with the homeless population and non-outreach and outreach staff time.

3. Compensation Plan, City Manager Classification
The attached resolution also updates the City’s compensation plan to reflect the changes approved by City Council at their January 9, 2024 meeting.

FISCAL IMPACT: The fiscal impact of the FY 2025 personnel/position changes are being approved as part of the FY 2025 adopted budget. There are no additional fiscal impacts with respect to the three (3) additional administrative items.

Prepared By:

Cathy Bonino
Principal HR Analyst
Submitted By:

Sara De Leon
Human Resources Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. PERSONNEL PROFILE.DOCX

21.2.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING

THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION PLANS AND THE FY2025 BUDGET – PUBLIC WORKS, PARKS AND RECREATION,

FINANCE, WATER, ECONOMIC DEVELOPMENT AND HOUSING, INFORMATION

TECHNOLOGY, POLICE, HUMAN RESOURCES, AND LIBRARY DEPARTMENTS AND

CITY MANAGER OFFICE
WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz, as follows:

That effective July 6, 2024 the City of Santa Cruz Classification and Compensation Plans be modified to:

Activity Classification No. and Title Salary (New
Classifications and
Changes)

PUBLIC WORKS
Add Limited Term
Position:
4102 716- Engineering Associate
(1.0 FTE Limited Term)
Add Position: 7831 138- Equipment Mechanic I/II
(1.0 FTE)
Add four (4) Positions: 7304 219- Resource Recovery
Worker I/II (1.0 FTE x 4)
Change Position
From:
7202 204- Wastewater Collection
Maintenance Technician I
(1.0 FTE)
Change Position To: 7202 202- Wastewater Collection
Maintenance Technician II
(1.0 FTE)
Delete Position:
165-006
7401 165- Parking Office
Representative (.50 FTE)
Increase Position
165-005 FTE:
7401 165-Parking Office
Representative
From: .50 FTE
To: 1.0 FTE

21.2.3 RESOLUTION NO. NS-XX,XXX
2 Activity Classification No. and Title Salary (New
Classifications and
Changes)

PARKS &

RECREATION
Classification Salary
Change:
323 – Recreation Supervisor
From: $6,294 - $8,856/mo
To: $6,798 - $9,565/mo
Classification Salary
Change:
162 - Parking Attendant
140 - Facility Attendant
146 - Landfill Gate Attendant
From: $3,427 - $4,822/mo
To: $3,496 - $4,919/mo

FINANCE
Add new Classification
and Position:
7821 128 – Risk Management
Technician (1.0 FTE)
$4,876/mo - $6,861/mo
Add three (3) new
Limited Term Positions:
1241 291 - Accounting Technician
(1.00 FTE x 3 Limited Term)
WATER
Add new Limited Term
Position:
7103 107 -Administrative Assistant
III (1.0 FTE Limited Term)
Add two (2) new
Limited Term positions:
7103 273 – Utility Service
Representative I/II (1.0 FTE x
2 Limited Term)

ECONOMIC

DEVELOPMENT AND

HOUSING
Add new Position: 5201 735 – Development Manager
(1.0 FTE)
Add new Position: 5201 729 – Principal Management
Analyst (1.0 FTE)
Add new Position: 5401 729 – Principal Management
Analyst (1.0)

21.2.4 RESOLUTION NO. NS-XX,XXX
3 Activity Classification No. and Title Salary (New
Classifications and
Changes)
Delete position:
783-001

INFORMATION

TECHNOLOGY (IT)
Add new Position: 1251 837 – Business Systems
Analyst III – (1.0 FTE)
Add new Position: 7203-45%
7302-15%
7303-20%
4102-10%
7401-10%
837 – Business Systems
Analyst III – (1.0 FTE)
POLICE
Add new Classification
and Position: 2102
718 – Police Investigative
Analyst (1.0 FTE)
$7,383/mo. - $9,517/mo.

Add new Classification
and Position
2102 373 – Police Property and
Evidence Supervisor (1.0
FTE)
$6,521/mo - $9,174/mo
Add new Classification
and Position
2107 322 – Police Records
Supervisor (1.0 FTE)
$6,150/mo - $8,654/mo

HUMAN RESOURCES
Add new Position: 7820-50%
1230-50%
106 – Administrative
Assistant II (1.0 FTE)
Add new Limited Term
position: 1230
169 – Human Resources
Technician (1.0 FTE Limited
Term)

LIBRARY
Delete Position
793-002:
3601 793 – Systems Coordinator
(1.0 FTE)

21.2.5 RESOLUTION NO. NS-XX,XXX
4 Activity Classification No. and Title Salary (New
Classifications and
Changes)
Delete position
101-005:
3601 101 – Accounting Assistant I
(.50 FTE)
Add position: 3601 750 – Librarian I/II (1.0 FTE)
Add position: 3601 831 – Librarian III (1.0 FTE)
Add position: 3601 284 – Bookmobile Library
Assistant II (.50 FTE)
Add position: 3601 363 – Library Assistant III
(1.0 FTE)
Add position: 3601 102 – Accounting Assistant II
(1.0 FTE)

CITY MANAGER
Classification Salary
Change
805 – City Manager
From: $23,011/mo - $25,311/mo
To: $23,833/mo - $26,217/mo
Add position: 1110
107 – Administrative
Assistant III (1.0 FTE)
Increase Position
841-002 FTE (Limited 2
years)
6105
841 – Homelessness
Response Shelter and
Outreach Specialist I/II
From: .75 FTE
To: 1.00 FTE

21.2.6 RESOLUTION NO. NS-XX,XXX
5 PASSED AND ADOPTED this 11th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

21.2.7 FY 2025 Budget
Personnel Profile - Overview of Changes
Each year, City Council establishes an authorized position list by department through the budget adoption process. For FY 2025, there will be a net increase of twenty-four and three quarters (24.75) full-time equivalent (FTE) positions citywide including Library position adds of three (3) FTEs. Each addition includes varying personnel cost allocations to the General Fund, Enterprise, and other funds, such as the Santa Cruz Library budget.

Note: Limited-Term positions referenced below have a budgeted duration of one year with an option to extend an additional year.

The following is a summary of all classification and position changes:

Public Works - The Public Works (PW) Department proposes the following position changes:

1. Add Limited-Term Engineering Associate 1.0 FTE Position The newly added limited-term position will provide additional capacity to the engineering team amidst numerous Citywide projects such as the fee study and transition to a new Enterprise Permitting and Licensing (EPL) program and upcoming changes to the utility billing . All three projects are additional duties to daily responsibilities, such as permit review, inspections, and managing requirements for the many large development projects occurring citywide. A limited term Engineering Associate would be essential to keep core activities on track, while the Public Works Engineering Associate can contribute to the new EPL and utility billing system transitions. Investing in a limited-term position would support the expertise needed by the Public Works team in order to contribute to the overall project success.

2. Add Equipment Mechanic I/II 1.0 FTE Position
Public Works Fleet has taken on additional work for Police (AME build outs for pursuit vehicles and motorcycles/ATVs). Fire has also met with Fleet to discuss bringing back engines for internal maintenance. This will require an additional 1-2 mechanic(s) to keep up with the demand, especially for safety divisions like Police and Fire, in addition to keeping refuse vehicles maintained daily.

3. Add Resource Recovery Worker I/II 4.00 FTE Positions Post Pandemic, availability and ability of a historical outside contract that has supplemented line soring and litter abatement has changed. The Resource Recovery Disposal division would like to supplement the outside contract for recycle line sorting and litter abatement with internal support of four additional Resource Recovery Worker I/II positions.

4. Change of Wastewater Collection Maintenance Technician I 1.0 FTE Position to Wastewater Collection Maintenance Technician II 1.0 FTE

21.2.8 FY 2025 Budget
The Wastewater Collection Maintenance Trainee/Technologist I/Technologist II classification series was updated in 2013, where the classifications became an alternately staffed series. Alternately staffed positions allow for greater efficiency within the classification to be promoted internally, after incumbents meet minimum qualifications for the higher positions. All positions were re-budgeted at the maximum Wastewater Collection Maintenance Technologist II level with the exception of one position. For consistency, Public Works is requesting to upgrade the one position of Wastewater Collection Maintenance Tech I position to a Wastewater Collection Maintenance Tech II position.

City Manager – The City Manager Office (CMO) proposes the following position changes:

5. Add Administrative Assistant III 1.0 FTE position
The CMO requires the addition of one full-time Administrative Assistant III position to support City Council functions and the Commission for the Prevention of Violence Against Women.

Finance – The Finance Department proposes the following classification and position changes:

6. Add New Risk Management Technician Classification and 1.0 FTE Position The Finance Department’s Risk Management division requests a new classification and position that specializes in supporting risk management activities such as processing and filing claims/incidents and insurance documents, pursuing reimbursement for damage costs and request estimates of damages incurred to City assets; and assist in coordinating and working with vendors, third-party administrators, and legal counsel.

7. Add Limited-Term Accounting Technicians 3.0 FTE Positions The Finance Department’s Accounting division is requesting three (3) full-time LimitedTerm positions to assist with the regular workload of current staff during the new enterprise resource planning (ERP) transition and implementation.

Parks and Recreation – The Parks and Recreation Department proposes the following classification and position changes:

8. Add Limited-Term New Assistant Urban Forester Classification and 1.0 FTE Position This position would support the Urban Forester in the execution of job duties and may be tasked with implementation of key aspects of the Climate Action and grant work. In addition to managing workload, the new position allows for increased coverage for tree emergencies and develops a career ladder for the Urban Forester position.

21.2.9 FY 2025 Budget
Water Department - The Water Department proposes the following position changes:

9. Add Limited-Term Administrative Assistant III (AAIII) 1.0 FTE Position The addition of a limited term Administrative Assistant III will assist with absorbing some of the tasks in Utility Billing (UB) as the City implements a new ERP software, an integrated management system for the business processes throughout the City. The proposed limitedterm position would assist current staff who will be committing time on the ERP project.

10. Add Limited-Term Utility Service Representative 2.0 FTE Positions The addition of two full-time limited term Utility Service Representatives will assist with absorbing tasks in UB as the City implements a new ERP software. The proposed limitedterm position would assist current staff who will be committing time on the ERP project.

Economic Development and Housing Department - The Department proposes the following position changes:

Multi-million-dollar, multi-year state grants in the Economic Development Department have added to the workload of the Housing Division. In addition, private housing development in the City requires review from staff and the new affordable housing units add to the compliance and monitoring workload of the staff.

11. Add Development Manager 1.0 FTE Position
Key duties of this position will include the following:
 Chart the direction for complex project development plans and applicable funding programs to finance affordable housing projects.
 Develop and oversee multi-layered project budgets from several (6-7) funding sources.
 Manage multiple funding programs' varied regulations, compliance and monitoring and layer them into project performance deadlines, affordability mix, income and eligibility criteria, legal agreements, budget drawdowns and other financing tools.  Negotiate complicated transactions, agreements, and applicable matters for project dev plans.
 Plan, organize and supervise the work of the Principal Management Analyst.  Manage consultants on various project development activities.

12. Add Principal Management Analyst (PMA) - Housing 1.0 FTE Position Private housing development in the City requires review from staff and the new affordable housing units add to the compliance and monitoring workload of the staff. This additional position is key in supporting the Development Manager in implementing project development plans, through preparation of funding applications, reports, studies, and analysis for project development activities, and through developing projections for budget, revenue and expense projections from multiple funding sources.

21.2.10 FY 2025 Budget

13. Add Principal Management Analyst (PMA) - City Arts 1.0 FTE Position Over the past years, the City Arts Program was instrumental in funding projects to promote economic recovery and public health and safety embodying the ideals of the City’s Health in All Policies. With the increased grant infrastructure activity, there is a burgeoning number of projects requiring public art programming. In the face of the development of the downtown, the Arts Commission has renewed their call for implementation of a public art assessment on private development. Building out this program and new funding stream will require the skills specific to a Principal Management Analyst working with the current Development Manager.

14. Delete Economic Development Coordinator I/II .50 FTE Position This is an administrative correction removing a .50 FTE position.

Information Technology (IT) - The IT Department proposes the following position changes:

The City is currently experiencing a notable surge in requests for IT application support while simultaneously overseeing multiple ongoing projects focused on modernizing existing business software solutions across the organization. These initiatives include updating various applications, such as the Land Use Management, Permitting and Licensing application, Document Management Software, Computerized Maintenance Management System, and providing support for over 90 applications citywide.

15. Add Business Systems Analyst (BSA) III – Operations 1.0 FTE Position To effectively manage the increasing workload and ensure the efficiency and security of its IT systems, there is a critical need to add an additional IT Business Systems Analyst III.

This role will play a pivotal part in supporting the general funded departments, enhancing processes, and improving efficiency by serving as a bridge between City departments and IT’s technology solutions. Most significantly, as the City is currently in the process of selecting and implementing a new ERP application, this IT BSA III position will actively participate and lead the City in an initiative to implement a solution that captures the City’s intent to improve processes, shape business procedures, and facilitate organizational change for the foreseeable future.

16. Add Business Systems Analyst (BSA) III – Enterprise Public Works 1.0 FTE Position The IT needs within the Public Works Department are on the rise as the department, working with IT, has and continues to modernize their business processes and legacy software platforms. The key objectives for this position include implementing CityWorks as the Computerized Maintenance Management System for Fleet, Streets, and Facilities, updating and modernizing the Parking Control Software Suite, establishing more robust reporting for the traffic signal infrastructure, modernizing reporting and analysis at the Waste Water Treatment Facility, improving business processes for the refuse component

21.2.11 FY 2025 Budget
of the City's ERP replacement, and updating and customizing critical refuse applications.

This position would report to the Information Technology department but be funded by Public Works.

Police - The Police Department proposes the following classification and position changes:

17. Add New Police Investigative Analyst Classification and 1.0 FTE Position The need and expectation for specialized investigative forensic work continues to grow as technology evolves which requires extensive experience and continual training opportunities. Like many other law enforcement agencies, the industry is moving towards employing non-sworn staff to manage investigative forensics. This approach allows sworn staff to focus on their caseload and hopefully reduces the turnover rate of employees dedicated to investigative forensics.

18. Add New Police Property and Evidence Supervisor Classification and 1.0 FTE Position The addition of a Supervisor position in the Property & Evidence section would allow for monitoring and organizing workflow, and identification of inefficiencies and pathways for improving productivity, compliance and revenue streams. Additionally, the position would oversee staffing performance, provide guidance and support, identify development needs, and manage the reciprocal relationship between staff and the Department. Finally, the position would set goals and targets to develop plans to grow with ever changing federal, state and city laws and regulations and the Department's mission and values.

19. Add New Police Records Supervisor Classification and 1.0 FTE Position The addition of a full-time supervisor position in the Records section of the Police Department would allow for monitoring and organizing workflow, identifying inefficiencies and pathways and for improving productivity, compliance and revenue streams. The position would be overseeing staffing performance, providing guidance and support, identifying development needs, and managing the reciprocal relationship between staff and the Department. Additionally, they would set goals and targets to develop plans to grow the section with ever changing Federal, State and City laws and regulations and the Department's mission and values.

Human Resources (HR) – The Human Resources Department proposes the following position changes:

20. Add Administrative Assistant II (AAII) 1.0 FTE Position The request to add an AAII position is driven by the pressing need to enhance Human Resources operational efficiency, manage workload distribution effectively, and ensure the HR team continues to deliver the necessary support to all city employees. This role will serve as a critical support pillar for all divisions in the department, ensuring that the

21.2.12 FY 2025 Budget
HR Department can continue to provide employees with a high level of service.

21. Add Limited-Term Human Resources (HR) Technician 1.0 FTE Position The addition of a limited term Human Resources Technician position will be essential in continuing with the day-to-day tasks of the current technicians as current staff will be spending a significant amount of time on the implementation and testing of the new ERP software.

Library - The Library Department proposes the following position changes:

22. Delete Systems Coordinator 1.0 FTE Position
This position would be replaced by in-house assignments as well as contracting out for help with the Library website. An impetus behind this move is that the web will be moved to the cloud and the system will rely on purchased systems and less on custom developed design.

23. Delete Accounting Assistant I .50 FTE Position
The savings from deleting this vacant part-time position would be better utilized by adding the funding to other positions in the Library.

24. Add Librarian I/II 1.0 FTE position
Adding this position would assist the Library with achieving their goal of having a librarian at every library branch.

25. Add Librarian III (outreach) 1.0 FTE position
Adding this position would assist with managing the workload of the Library’s Outreach section. This includes management of the jail services program at both the adult and youth levels.

26. Add Bookmobile Library Assistant II .50 FTE position The addition of a Bookmobile Library Assistant II (LA II) would work in a multi-functional capacity supporting operations throughout the Library system. This position would help to serve as back- up for the other Bookmobile LAII who couriers books and materials throughout the system daily. The Library has long needed a reliable back-up for this important job because without this service books do not circulate throughout the system based on need and patron requests for items. This staff person would also work to support the new Live Oak Annex site. The hours at the new site will be minimal but it's necessary to maintain the collection at that location. Finally, this staff person will help to back up the bookmobile drivers if an absence occurs.

27. Add Library Assistant III 1.0 FTE position
The Library would like to add this position in the FY 2025 budget with the plan to design a new classification to take its place and with the same costing.

28. Add Accounting Assistant II 1.0 FTE position

21.2.13 FY 2025 Budget
This position would lead the accounting function for the Library. They would be responsible for daily organization of library accounting work. They would process invoices and purchase orders. They would also request insurance requirements and work with Library managers to ensure Department of Industrial Relations projects are filed.

21.2.14