Scotts Valley City Council
June 1, 2022

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TABLE OF CONTENTS
CITY OF SCOTTS VALLEY ORGANIZATION CHART..................................................................... 5 CITY MANAGER’S BUDGET MESSAGE ..................................................................................... 6 LONG-RANGE FINANCIAL FORECAST ...................................................................................... 8 SUMMARY OF FINANCIAL RESOURCES ................................................................................. 10 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT ......................................... 12 GENERAL FUND DEPARTMENTS OPERATIONAL BUDGETS..................................................... 13 City Council..................................................................................................................................13 City Attorney ...............................................................................................................................15 City Manager and City Clerk .........................................................................................................17 Administrative Services Department ............................................................................................19 Police Department.......................................................................................................................23 Community Development Department.........................................................................................26 Public Works Department ............................................................................................................29 GENERAL FUND NON-DEPARTMENT FUNDS......................................................................... 33 PARKS AND RECREATION DIVISION...................................................................................... 34 WASTEWATER ENTERPRISE FUNDS ...................................................................................... 36 SPECIAL REVENUE FUNDS .................................................................................................... 38 GENERAL CAPITAL IMPROVEMENT FUND............................................................................. 44 CAPITAL IMPROVEMENT AND.............................................................................................. 45 CAPITAL PURCHASE PROGRAM............................................................................................ 45 FY 2022-23 CIP Plan Summary ......................................................................................................46 CIP PROJECT DESCRIPTIONS..........................................................................................................47 005
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CITY OF SCOTTS VALLEY ORGANIZATION CHART
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CITY MANAGER’S BUDGET MESSAGE
Honorable Mayor and City Council,
I am pleased to present the City of Scotts Valley’s Annual Budget for Fiscal Year (FY) 2022-23.

The City continues to operate in extraordinary times where life has fundamentally changed for Scotts Valley residents, visitors, businesses, city employees, and all of our community partners.

This Budget reflects a reinvestment in city services to address the needs of the Scotts Valley community as we continue to recover from the COVID-19 pandemic and rebuild for a bright future.

The City of Scotts Valley has continued its response to the pandemic by monitoring public health concerns and prioritizing the safety of city staff and all Scotts Valley residents. However, now that therapeutics are readily available, city staff and medical professionals throughout the region are optimistic that the toughest moments of the pandemic are behind us. The FY 2022- 23 Annual Budget reflects this reality as many services and staffing levels start to return to prepandemic levels and revenue sources have rebounded quicker than expected.

While the economic conditions of the past two years have been unpredictable, the City of Scotts Valley fared relatively well. This was the direct result of early tough decisions made to minimize costs (including pausing programs, laying off staff and holding vacant positions unfilled), receiving one-time state and federal relief funding, and the crucial passage of Measure Z which bolstered Scotts Valley’s tax base just as the pandemic started. I want to take this moment to extend thanks and appreciation to the entire Scotts Valley community who supported Measure Z and who pulled together to support their neighbors, family members, businesses, and service organizations during the pandemic.

Moving forward, I am pleased to recommend a budget that supports the Council’s four strategic goals. Strategic investments are included to enhance the City’s long term financial stability by addressing pension obligations; a new Economic Development budget within the City Manager’s office was created to support the Town Center and continued economic recovery; meaningful investments in information technology infrastructure will enhance city services for years to come; and the return of recreation services and enhanced maintenance of city parks and other facilities will improve the quality of life for Scotts Valley residents.

This budget also addresses the primary needs of our streets with new paving, striping, and safety enhancements and continues to prioritize public safety and police services. The FY 2022- 23 Annual Budget also incorporates several investments in Scotts Valley youth and restores funding for non-profit community organizations. This includes a partnership between the City of Scotts Valley and Scotts Valley School District to construct a new childcare facility at Vine Hill Elementary School. The City is also ecstatic to have the Scotts Valley Library reopen after an impressive renovation project funded by Measure S.
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FY 2022-23 Proposed Budget

FY 2022-23 will be filled with opportunities for the City of Scotts Valley as we enjoy the longawaited openings of businesses like Target and Faultline Brewery and the grand opening of the Community Theater next to the library, a new venue unlike anything else in Scotts Valley to celebrate arts, culture, and learning and belonging.

This budget includes an ambitions Capital Improvement Plan with an investment of over $11 million to address aging infrastructure and various city facilities including those that support the community in a more “behind the scenes” manner. This includes the wastewater treatment plant, public works facility, police department, and City Hall. The CIP also invests in overdue cataloging of the City’s current infrastructure needs and projecting future needs for affordable housing, street improvements for all modes of travel, and modern, multiuse parks.

As City Manager, I will continue to prioritize recruitment and retention of a high performing workforce, a task that has shown to be especially challenging due to shifts in the labor market and increasing costs of living. The City’s investments in technology, facilities, training and development, coupled with competitive compensation packages will meet the needs and expectations of our workforce now and into the future. In addition, enhancing communication both within the city organization and with residents, businesses, and community partners will be a priority for me this year. This includes enhancing both the information we provide via the city’s website as well as opportunities for the community to provide feedback to the City about the services we provide.

The City of Scotts Valley is emerging from the economic and health crises of the last few years with strength and determination. City staff are poised to face the challenges and opportunities of rebuilding while also planning for the future. We proudly undertake the responsibility of making prudent decisions and being good stewards of public funds through maximizing the value of city services for the residents, businesses, and visitors of Scotts Valley.

In closing, I’d like to thank the team that worked to prepare this document, specifically Casey Estorga, Selina Andrews, Amanda Long, Steve Toler, Chris Lamm, Stephen Walpole, Taylor Bateman, and Amanda Armstrong. I also want to thank the Budget Subcommittee, Mayor Lind and Vice Mayor Reed, for their generous commitment of time reviewing budgets with careful analysis, thoughtful questions and good humor.

On behalf of all staff that enthusiastically serve the Scotts Valley community, I respectfully thank the Honorable Mayor and City Council for supporting the initiatives included in the City of Scotts Valley’s FY 2022-23 Annual Budget.

Sincerely,
Mali LaGoe
City Manager
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LONG-RANGE FINANCIAL FORECAST
The City prepares a long-range financial forecast for all funds. These forecasts are not intended to accurately predict the outcome of future financial operations in fine detail. Rather, financial forecasts are used as planning tools to identify future trends and issues that require policy direction relative to capital improvement expenditures funding, providing, and maintaining service levels to the community, and to identify if there are any fiscal challenges that lay ahead that may require revenue enhancements to maintain desired service levels, or expenditure cuts in order to protect the city’s fiscal resources.

The key in preparing any forecast is to start with a reasonably accurate assessment of the current status of fund balance reserves, current revenue projections and trends, developing an expenditure plan that is reflective of current service levels, and incorporating a capital expenditure plan that identifies the priorities for maintaining city infrastructure.

The chart below shows the projected General Fund Available Balance through FY 2031-32. The General Fund is highlighted as part of the long-range financial forecast because the majority of the City’s total expenditures are found within the General Fund. This chart includes the most up-to-date budget data, including the activities included in the FY 2022-23 Proposed Budget and references a General Fund reserve minimum at 17% and General Fund reserve goal of 30%.

Additionally, the long-range analysis evaluated the annual General Fund surplus or deficit based on numerous financial variables include anticipated projected revenues, increase in costs to 010
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provide services, increase in costs to long-term liabilities, and an assumption that a recession will hit in approximately 2027/2028. Most notably, the analysis highlights FY 2031/32 and the expiration of Measure Z and an important variable to consider when planning for the future stability of the General Fund. However, based on a prudent FY 2022/23 Proposed Budget, and assumptions about the post-pandemic economic recovery, the City’s General Fund is forecasted to be healthy and stable for the relative future.

The baseline ten-year financial forecast for the General Fund indicates that the City has reached a level of fiscal sustainability based on current service and staffing levels. The approval of Measure Z, the local 1.25% transactions and use (sales) tax measure approved by voters in March 2020, is expected to generate over $4 million per year in FY 2022/23 and will continue to grow.

Moving forward, the City has secured a team of financial consultants to help assess the City’s long-term financial position, including to help the City Council develop debt management strategies to accommodate a comprehensive and contemporary long-range financial plan. The financial consultants will conduct an analysis on the City’s financial health during FY 2022-23 and will meet with the City Council and Scotts Valley community to propose options on how to best prepare for the City’s future. Based on that discussion and policy direction from the City Council, the City’s long-range financial forecasts will be updated to reflect those scenarios. 011
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SUMMARY OF FINANCIAL RESOURCES
The chart below summarizes all funds in the City’s budget. These calculations include projected Fund Balance projections as of July 1, 2022. Those details will be updated during the FY 2022-23 mid-year budget review, expected to occur early in calendar year 2023, after the official close of the FY 2021-22 books via the auditor’s Annual Comprehensive Financial Report (ACFR).

Notably, the beginning fund balance in City’s General Fund will help support the necessary transfers-out to cover applicable costs as itemized in the chart below. This includes transferring funds to supplement the cost recovery variance in the Recreation Fund, Special Revenue Fund, and supporting necessary projects listed in the General Capital Improvements Projects Plan.

City staff referenced all available data to understand projected revenues and expenses, including by referencing data from Santa Cruz County and HDL, the City’s sales tax consultant.

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Estimated
Beginning
Fund Balance
7/1/2022
Estimated
Revenues
FY 2022-23
Transfers
In (Out)
Estimated Total
Funds Available
FY 2022-23
Proposed
Budget
Expenditures FY
2022/23
Projected
Ending Fund
Balance
06/30/2023
Fund Description
1 General Fund $ 9,030,350 $ 19,003,869 $ (3,899,183) $ 24,135,035 $ 19,773,430 $ 4,361,606 6 Equipment Replacement Reserve $ 536,568 $ 34,429 $ - $ 570,998 $ - $ 570,998 Subtotal General Funds $ 9,566,918 $ 19,038,298 $ (3,899,183) $ 24,706,033 $ 19,773,430 $ 4,932,603 150 General Capital Improvements $ 677,804 $ 1,430,000 $ 3,500,000 $ 5,607,804 $ 4,521,900 $ 1,085,904 7 Drainage Construction Impact Fees $ 78,922 $ 37,977 $ - $ 116,899 $ 25,000 $ 91,899 8 Traffic Impact Mitigation Fees $ 942,172 $ 285,210 $ - $ 1,227,381 $ 365,000 $ 862,381 9 Park & Recreation Facilities Impact Fees $ 1,510,273 $ 483,622 $ - $ 1,993,895 $ 459,000 $ 1,534,895 21 General Facility Impact Fees $ (25,229) $ 23,143 $ - $ (2,086) $ - $ (2,086) 27 Police Facility Building Impact Fees $ 288,531 $ 55,501 $ - $ 344,032 $ 245,000 $ 99,032 51 Mt. Hermon Traffic Mitigation $ 189,227 $ 275 $ - $ 189,502 $ - $ 189,502 86 Library Impact Fees $ 404,649 $ 43,912 $ - $ 448,561 $ 1,000 $ 447,561 315 Police Development Fees $ 66,834 $ 97 $ - $ 66,931 $ 50,000 $ 16,931 Special Revenue Funds - Development Impact Fees $ 3,455,380 $ 929,736 $ - $ 4,385,116 $ 1,145,000 $ 3,240,116 2 Recycling/Environment $ (245,200) $ 6,180 $ - $ (239,020) $ 100,000 $ (339,020) 3 Gas Tax $ 718,671 $ 601,260 $ - $ 1,319,931 $ 449,800 $ 870,131 5 SMIP Fees $ 10,288 $ 7,473 $ - $ 17,760 $ 5,000 $ 12,760 19 Affordable Housing $ 2,870,278 $ 369,848 $ - $ 3,240,125 $ 180,000 $ 3,060,125 24 Lennar Funds $ 716,150 $ - $ - $ 716,150 $ 136,300 $ 579,850 28 Senior Center Operations $ (80,890) $ 13,842 $ - $ (67,048) $ 103,663 $ (170,711) 31 STP Exchange Projects $ 358,717 $ 900,528 $ - $ 1,259,244 $ 900,000 $ 359,244 33 Tree Replacement $ 39,345 $ 2,131 $ - $ 41,477 $ 10,000 $ 31,477 35 Green Building Funding $ 550,503 $ 104,361 $ - $ 654,864 $ 6,000 $ 648,864 36 Disability Compliance $ 20,869 $ 1,785 $ - $ 22,654 $ 6,000 $ 16,654 50 Pinewood Estates Maintenance District $ 94 $ 6,000 $ - $ 6,094 $ 6,000 $ 94 77 Skypark Landscape Maintenance District $ 40,010 $ 42,011 $ - $ 82,021 $ 52,000 $ 30,021 78 Skypark Landscape Maintenance District Insurance $ 554,522 $ 782 $ - $ 555,304 $ - $ 555,304 88 Library Facilities Improvements (Measure S) $ 1,162,192 $ 900,782 $ - $ 2,062,974 $ 1,400,000 $ 662,974 89 Library - Cty MOE Excess Distribution $ 362,844 $ 859 $ - $ 363,703 $ 1,000 $ 362,703 123 Community Facility Center Operations $ 238,238 $ 176,371 $ - $ 414,609 $ 78,970 $ 335,639 155 Measure D Sales Tax for Transportation $ 123,712 $ 313,309 $ - $ 437,021 $ 1,039,100 $ (602,079) 178 CalTRANS - Get Everyone Moving Grant $ 131 $ 153 $ - $ 283 $ - $ 283 268 Prop 68 Parks/Water Bond Act $ - $ - $ - $ - $ 178,000 $ (178,000) 306 Supplemental Law Enforcement Services $ 239,740 $ 99,084 $ - $ 338,824 $ - $ 338,824 309 Police Prop 56 Tobacco Prevention $ 29,668 $ 189,002 $ - $ 218,670 $ 170,770 $ 47,900 312 Police Budget Act 2016 $ 19,947 $ 29 $ - $ 19,976 $ - $ 19,976 316 Homeland Security Grant $ 1,477 $ 2 $ - $ 1,479 $ - $ 1,479 317 EDG Revolving Loan $ 207,402 $ 394,457 $ 183,333 $ 785,192 $ 183,333 $ 601,859 Special Revenue Funds - Other $ 7,938,705 $ 4,130,248 $ 183,333 $ 12,252,287 $ 5,005,936 $ 7,246,351 26 Pension Obligation Bond $ (2,494) $ - $ - $ - $ 400,000 $ (400,000) 66 COP Debt Service Reserve $ 994,598 $ - $ - $ 994,598 $ 994,598 Debt Service Funds $ 992,104 $ - $ - $ 994,598 $ 400,000 $ 594,598 Recreation Enterprise Funds $ 104 $ 610,684 $ 215,850 $ 826,742 $ 826,638 $ - 10 Wastewater Operations $ 2,180,011 $ 3,463,729 $ - $ 5,643,741 $ 3,545,867 $ 2,097,874 11 Tertiary Operating $ 146,949 $ 120,000 $ - $ 266,949 $ 222,717 $ 44,232 12 Wastewater Capital Reserve $ 153,990 $ 304,044 $ - $ 458,034 $ 2,640,000 $ (2,181,966) 14 Wastewater Equipment Replacement $ 122,560 $ 178 $ - $ 122,738 $ - $ 122,738 15 TTP District Reserve $ 3,363 $ 27 $ - $ 3,390 $ - $ 3,390 Wastewater Enterprise Funds $ 2,606,873 $ 3,887,978 $ - $ 6,494,851 $ 6,408,584 $ 86,267 Internal Service Fund - Dental Insurance $ 25,572 $ 38,772 $ - $ 64,344 $ 60,000 $ 4,344 TOTAL - All Funds $ 25,263,460 $ 30,065,716 $ - $ 55,331,774 $ 38,141,487 $ 17,190,183 013
FY 2022-23 Proposed Budget

SUMMARY OF GENERAL FUND EXPENDITURES BY

DEPARTMENT
The chart below summarizes General Fund activity, starting with prior year actuals in FY 2018- 19, the FY 2021-22 Amended Budget, and the FY 2022-23 Proposed Budget. It is important to note that the FY 2021-22 Amended Budget reflected the realities of a challenging year for the City, including struggles resulting from the global pandemic, the regional economy (including challenges with filling vacant positions and challenges implementing projects due to general shortages in labor and materials). The net impact of these challenges resulted in lower-thannormal costs as shown in the FY 2021-22 Amended Budget.

Moving forward, the FY 2022-23 Proposed Budget reflects a recovering budget, with an expectation that labor markets stabilize, the availability of materials normalizes, and several deferred projects will come to fruition. The FY 2022-23 Proposed Budget also includes an unencumbered set-aside of $2.5 million dollars, included in the General Government line item, to provide the City Council with flexibility to make a policy decision based on recommendations from City staff and the City’s financial consultants about long-term debt strategies, including alternatives on how to address the City’s pension and retiree medical liabilities. 014
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GENERAL FUND DEPARTMENTS OPERATIONAL BUDGETS
City Council

FUND / ACCOUNT NUMBER
001.41

OVERVIEW
The City Council is elected by voters of Scotts Valley to provide policy-level decisions and general direction to City staff through the City Manager. The City Council strives for the continued orderly growth and development of the City by ensuring that all matters related to health, safety, and general welfare are addressed consistent with the law and the will of the residents of Scotts Valley.

DEPARTMENT GOALS AND WORKPLAN
During the COVID-19 pandemic, the City Council focused its efforts on supporting the safety and well-being of the Scotts Valley community, assisting businesses to weather mandated closures and operational limitations, and implementing strategies to bolster the City’s longterm economic stability. The pandemic will continue its reach into FY 2022/23, but the City has already started to re-position itself for post-pandemic recovery.

The City Council continues with its core priorities for FY 2022/23, with implementing projects to be identified and funded through the budget process:

1. Ensure Long-Term Financial Stability

2. Encourage Business Development and Expand the City’s Economic Base

3. Implement Operational Initiatives and Enhance City Services

4. Maintain Quality of Life for Residents

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
City Council Legislative Councilmember 5.00 5.00
City Council Legislative City Clerk* 0.50 0.50
TOTAL 5.50 5.50
*The City Clerk position is allocated 50% to the City Council and 50% to the City Manager 015
FY 2022-23 Proposed Budget

DEPARTMENT BUDGET
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
City Council Legislative Salaries & Benefits $323,017 $266,395 City Council Legislative Svcs & Supplies $35,810 $104,500 TOTAL $358,827 $370,895
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City Attorney

FUND / ACCOUNT NUMBER
001.42

OVERVIEW
The City Attorney is responsible for the administration of all legal affairs of the City. In addition, the City Attorney serves as Agency Counsel for the Successor Agency of the Redevelopment Agency. The City Attorney advises the City Council and staff on all matters of general and municipal law.

The City Attorney is responsible for:
• Representing the City in litigation, administrative hearings, and other legal matters. • Preparing or reviewing all ordinances, contracts, and other legal documents. • Rendering legal advice and opinions to the City Council, Successor Agency, City and Agency Boards and Commissions, and City staff.
• Overseeing all work done by outside counsel on behalf of the City.

DEPARTMENT GOALS AND WORKPLAN
The City Attorney supports other departments in the implementation of their work plans. The City Attorney also responds to claims and litigation and projects adopted by the Council that require participation by the City Attorney. The City Attorney’s workplan for FY 2022/23 includes the following:
• Support Policy Changes: Advise and draft workplace, land use and administrative policies and regulations.
• Development Projects and General Plan Update: Provide legal guidance for General Plan Update process and on development projects under consideration by the City. • Update Ordinances: Update the City’s ordinances to comply with changing State laws. • Review Contracts: Review contracts as necessary to comply with State law.

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
City Attorney Administration City Attorney* 0.00 0.00
TOTAL 0.00 0.00
*The City Attorney is a contract position with the firm of Logan & Powell, LLP. 017
FY 2022-23 Proposed Budget

DEPARTMENT BUDGET
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
City Attorney Administration Salaries & Benefits $0 $0
City Attorney Administration Svcs & Supplies $253,500 $300,000 TOTAL $253,500 $300,000
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FY 2022-23 Proposed Budget

City Manager and City Clerk

FUND / ACCOUNT NUMBER
001.44

OVERVIEW
The City Manager is the Chief Executive Officer (CEO) for the City of Scotts Valley and provides administrative and legislative/policy support to the City Council and general oversight of all operations provided through the operating departments of the City. The City Manager is directly responsible for the City’s economic development initiatives and activities of the Successor Agency of the City’s former redevelopment agency. Specific oversight is provided to other administrative departments, including the City Clerk and Administrative Services, which include such functions as legislative records management, financial services, budget, human resources, and risk management.

The City Clerk performs various professional and managerial duties according to Scotts Valley Municipal Code and state law. The City Clerk facilitates the execution of official City legislative processes and is the custodian of City records and records the official actions of City government, documents the proceedings of meetings, and retains legal and historical records, such as City Council, Successor Agency, and Oversight Board agendas and minutes, ordinances, resolutions, contracts, deeds, and subdivision maps. The City Clerk also accepts and processes requests in accordance with the California Public Records Act, coordinates City board, commission, and committee member recruitment activities, and accepts and processes claims against the City and other legal documents. Last, the City Clerk serves as the City’s elections official and administers the election process and oaths of office. The City Clerk also acts as the filing officer for conflict-of-interest statements filed by City elected and appointed officials and candidate and officeholder campaign filings.

DEPARTMENT GOALS AND WORKPLAN
The workplan for the City Manager is driven primarily by City Council goals and policy direction, while the workplan for the rest of the administration department is based upon emerging issues that relate to City Council action, workforce changes, and the needs of the operating departments.

For FY 2022/23, the City Manager’s Office will lead the organization’s continued recovery from the COVID-19 pandemic. This will take many forms, from hundreds of operational shifts across the City to resume normal operations—with modifications to incorporate lessons learned for improved customer service in our fast-tracked contactless pivot last spring—to restoring our Recreation services that were devastating to lose. The City Manager will continue work to do 019
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safeguard the City’s financial recovery while also meeting dynamic community needs for contemporary services.

The City Manager’s Office will lead the implementation of the the City’s Strategic Goals:

1. Ensure Long-Term Financial Stability

2. Encourage Business Development and Expand the City’s Economic Base

3. Implement Operational Initiatives and Enhance City Services

4. Maintain Quality of Life for Residents
In addition to providing a variety of highly specialized professional responsibilities in the area of agenda and records management, elections, and public records coordination, the City Clerk provides managerial and administrative support in the area of human resources, public information, and risk management. The City Manager’s Office will also welcome an Assistant to the City Manager position in FY 2022/23, a role that will help provide high-level analytical and project management support to the City.

STAFFING SUMMARY
Department Division Position FY 2021-22
Approved
FY 2022-23
Proposed
City Manager Administration City Manager 1.00 1.00
City Manager Administration Asst. to City Mgr 1.00 1.00 City Manager City Clerk City Clerk* 0.50 0.50
City Manager City Clerk Deputy City Clerk** 0.50 0.50
TOTAL 3.00 3.00
*The City Clerk position is allocated 50% to the City Council and 50% to the City Manager **The Deputy City Clerk position is allocated 50% to the City Manager, 25% to Community Development, and 25% to Administrative Services.

DEPARTMENT BUDGET
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
City Manager Administration Salaries & Benefits $598,890 $807,621 City Manager Administration Svcs & Supplies $57,025 $121,000 City Manager Economic Dev Svcs & Supplies $0* $325,000* TOTAL $655,915 $1,253,621
*Economic Development costs were incorporated in the general Services and Supplies accounts in FY 2021-22. However, Economic Development costs are being itemized separately in FY 2022-23
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FY 2022-23 Proposed Budget

Administrative Services Department

FUND / ACCOUNT NUMBER
001.45 and 001.46 and 001.47 and 001.48

OVERVIEW
The Administrative Services Department provides the following functions under the direction of an Administrative Services Director:
• Finance: Receives all income, prepares checks for payment of all expenses, and is responsible for investing City surplus funds; processes grant records and claims, sewer service fees, business license fees and other miscellaneous billings; handles payroll and accounts payable functions for the City; maintains records of all income and expenditures for all funds; and, prepares the City’s Comprehensive Annual Financial Report and other financial reports as necessary for operating departments, the City Council, and local, state and federal agencies; accounts for all activities associated with the City of Scotts Valley Successor Agency, and prepares the necessary reports for the review and approval of the Successor Agency’s oversight board and the California Department of Finance; and, participates in preparing the budget for recommendation to the City Council under the direction of the City Manager. • Human Resources: Provides support to the City Manager for human resources management, including: labor relations; classification, compensation and benefits programs; updating personnel rules and policies to ensure compliance with State and Federal employment laws and regulations; oversight and support for recruiting functions administered by operating departments; consultation and advice regarding employee disciplinary and employment liability issues; and the employee assistance program.
• Information Technology: Provides overall strategic direction and implementation of the City’s use of information technology tools; manages the contract with a technology support vendor for help desk support and network, telecommunications, server, and systems administration.
• Risk Management: Supports the City Manager in managing the City’s risk management programs, including workers compensation, liability, and property insurance through the Monterey Bay Area Self-Insurance Authority (MBASIA) risk management JPA. 021
FY 2022-23 Proposed Budget

DEPARTMENT GOALS AND WORKPLAN
The Department’s workload includes a variety of tasks and projects, some that are recurring activities consistent from year to year, and others that are project-based work that vary.

Recurring activities such as payroll processing, accounts payable, financial reporting, benefits administration, server maintenance and updating the assets covered through risk management activities are assumed in the baseline activities of the department. Forces that may impact the department’s workplan include changes in policy direction and needs of the City Council and the City’s operating departments, changes in regulations that impact how financial activities are tracked and reported, and impacts from state legislation.

The Department’s workplan for FY 2022/23 includes the following:
• Annual Comprehensive Financial Report (ACFR) Preparation and Audit: Upon closing and reconciling the City’s general ledger, the department will prepare the City’s ACFR and will coordinate the audit of the ACFR through an independent certified public accountant. The department will work with the City’s CPA firm to ensure the proper accounting and disclosure of financial information is presented in the ACFR.

• Fiscal Sustainability Plan Implementation: Working under the direction of the City Manager, the department will assist the City Manager to provide guidance to operating departments and prepare fiscal analyses in implementing budget strategies directed by Council to provide fiscal sustainability to the City and its General Fund. o Update the long-range financial forecast and monitor trends to determine longterm fiscal sustainability for the General Fund. o Refine revenue forecasts and possible future options to increase the hotel tax (TOT) or modernize utility users tax (UUT).
o Explore OPEB and PERS obligation reduction strategies. o Implement the cost allocation framework.

• Annual Budget Preparation and Implementation: Working under the direction of the City Manager, the department will further the implementation of the budget process by coordinating budget preparation in a collaborative fashion with operating departments, culminating in public hearings and the ultimate approval of the FY 2022/23 annual budget.
• Technology Initiatives: The City Council has approved agreements to support the transition to modernized financial and payroll systems. This includes introducing new technologies and processes that will digitize records related to timecards, payroll, Accounts Payable, Accounts Receivable, budget development and budget monitoring, financial analysis, and reporting. The City will also look to complete projects in the Council Chambers, at City Hall, in the Police Department, and at Public Works to generally modernize technology and improve operational efficiencies. 022
FY 2022-23 Proposed Budget

• IT Managed Service Provider: The City will launch an RFP to find a new IT managed service provider to support the City’s extensive needs for operational efficiencies and cybersecurity.

• Debt Management: The City will work with a financial advisor to develop a plan to strategically address long-term debts like pensions and retiree medical costs. This analysis will also consider how to manage existing debt while concurrently considering the prudence of future debt as part of the City’s comprehensive debt management strategies.
• Compensation Study: The City will utilize a professional consultant to perform a compensation study at the tail end of FY 2022-23. This will help the City better understand the regional labor market and how to be recruit and retain high-quality staff through negotiated labor agreements and other techniques. • HR Training: The City’s Human Resources team will lead the organization through a series of training, including mandated trainings, but also important discretionary trainings on topics like supervisory and leadership skills, effective communications, and Diversity, Equity, and Inclusion (DEI).

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Admin Svcs Finance Admin Services Dir. 1.00 0.50
Admin Svcs Finance Deputy City Clerk* 0.25 0.25
Admin Svcs Finance Finance Manager 1.00 1.00
Admin Svcs Finance Accountant II/III** 0.85 0.85
Admin Svcs Finance HR Manager 1.00 0.50
Subtotal 4.10 3.10
Admin Svcs HR Admin Services Dir. 0.00 0.25
Admin Svcs HR HR Manager 0.00 0.50
Subtotal 0.00 0.75
Admin Svcs IT Admin Services Dir. 0.00 0.25
Admin Svcs IT Contracted Services 0.00 0.00
Subtotal 0.00 0.25
TOTAL 4.10 4.10
* The Deputy City Clerk position is allocated 50% to the City Manager, 25% to Community Development, and 25% to Administrative Services.
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FY 2022-23 Proposed Budget

** A portion of the Accountant II/III position is charged to the Wastewater Division of the Public Works Department for the staff time spent associated with utility billing.

DEPARTMENT BUDGET (Administrative Services)
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
Admin Svcs Finance Salaries & Benefits $755,984 $502,666 Admin Svcs Finance Svcs & Supplies $139,653 $776,500
Subtotal $895,637 $1,279,166
Admin Svcs HR Salaries & Benefits $80,450 $118,607
Admin Svcs HR Svcs & Supplies $67,500 $117,500
Subtotal $147,950 $236,107
Admin Svcs IT Salaries & Benefits $0 $52,884
Admin Svcs IT Svcs & Supplies $430,500 $432,000
Subtotal $430,500 $484,884
TOTAL $1,474,087 $2,000,157
DEPARTMENT BUDGET (001.48 – Risk Management)
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
Admin Svcs Risk Mgmt Salaries & Benefits $0 $0
Admin Svcs Risk Mgmt Svcs & Supplies $527,481 $825,000
TOTAL $527,481 $825,000
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FY 2022-23 Proposed Budget

Police Department

FUND / ACCOUNT NUMBER
001.51 and 001.52 and 001.53

OVERVIEW
The Police Department provides public safety for the Scotts Valley community through community partnerships, proactive law enforcement and professionalism. Under the Office of the Police Chief, the department is organized into two divisions: Operations and Services.

Operations encompass uniformed patrol services, whereas the Services division is comprised of the Investigation Unit and Communications/Records.

The department employs crime prevention strategies that include community awareness and education, proactive targeted enforcement of problem areas, and community-oriented policing.

Connecting to the community and building public trust is paramount. The department facilitates this connection through daily interactions, teaching DARE in schools, police department tours, neighborhood watch programs, foot patrols, social media, and many other community outreach programs.

The department maintains a high level of training for its sworn and non-sworn employees. This is accomplished with departmental instructors, web-based training, and external training classes.

The department also supports other city departments in their overall goals and objectives of making this a safe community to live and work.

DEPARTMENT GOALS AND WORKPLAN
The Police Department’s workload remains consistent from year to year. These typical recurring activities are assumed in the baseline activities of the department. Forces that may impact the department’s workplan include changes in laws and policies, new technology, work force levels, and personnel development.

The Police Department’s workplan for FY 2022-23 includes the following:

Patrol Operations – This is the department’s largest commitment of resources and personnel.

Through uniformed patrols, officers respond to calls for service and conduct self-initiated activities to bring safety and a high quality of life to citizens of Scotts Valley, including Scotts Valley schools. For FY 2022-23, the department will launch a bicycle patrol team for enhanced patrols of open space, trail systems, and commercial districts.

Communications – The department maintains an independent PSAP (Public Safety Answering Point), or dispatch center. Often the first point of contact for individuals in crisis, our 025
FY 2022-23 Proposed Budget

dispatchers triage priority and non-priority calls and dispatch officers accordingly.

Goal/Priority: Public safety communications; employee safety; emergency operations Community Outreach Programs – The department will continue its outreach into the community by partnering with other Scotts Valley organizations, offering crime prevention education, and through social media. The department will continue to use social media, such as Facebook, Nixle and NextDoor to keep our community informed. The department’s Facebook page is the most followed governmental site in Scotts Valley.

The department’s personnel also organize and work annual charity events. Goal/Priority:

Community engagement
Recruitment and Retention – The department will continue to seek highly-qualified officers and dispatchers. The department will continue its aggressive recruitment program to attract, hire, and retain the best possible employees for this department.

Personnel Development – The department will develop existing personnel for more responsibilities and advancement. The department will focus on outside training opportunities for existing personnel so they can develop their skills and prepare to take on more responsibilities. Additionally, the department will update its in-service training program and technology.

Policy – The department will update its department policy manual reflecting current case law and best practices.

Emergency Operations Planning – The department will update the Emergency Operations Plan addressing any changes to personnel and contact information. The department will conduct a city-wide Emergency Operations Center training and exercise to better prepare for potential major disasters, such as earthquakes.

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Police Administration Admin Sec/Analyst 1.00 1.00
Police Administration Police Captain 2.00 2.00
Police Administration Police Chief 1.00 1.00
Subtotal 4.00 4.00
Police Communications EDC I 4.00 4.00
Police Communications EDC II 2.00 2.00
Police Communications Services Supervisor 1.00 1.00
Subtotal 7.00 7.00
Police Investigations Police Officer 4.00 4.00
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FY 2022-23 Proposed Budget

Police Investigations Police Sergeant 1.00 1.00
Subtotal 5.00 5.00
Police Patrol Police Officer 8.00 8.00
Police Patrol Police Sergeant 4.00 4.00
Subtotal 12.00 12.00
TOTAL 28.00 28.00

DEPARTMENT BUDGET
Dept. Division Account
Description
FY 2021-22
Approved
FY 2022-23
Proposed
Police General Operating Salaries & Benefits $4,800,892 $5,662,083 Police General Operating Svcs & Supplies $422,685 $379,730 General Operating Subtotal $5,223,577 $6,041,813
Police Animal Control Salaries & Benefits $0 $0
Police Animal Control Svcs & Supplies $105,000 $150,000 Animal Control Subtotal $105,000 $150,000
Police Emergency Svcs Salaries & Benefits $0 $0
Police Emergency Svcs Svcs & Supplies $48,350 $51,500
Emergency Svcs Subtotal $48,350 $51,500
TOTAL $5,376,927 $6,243,313
027
FY 2022-23 Proposed Budget

Community Development Department

FUND / ACCOUNT NUMBER
001.61 and 001.62

OVERVIEW
The Planning and Building Department plays a key role in shaping the future of urban development in the City of Scotts Valley. The Planning Department provides policy recommendations to the City Manager, Planning Commission and City Council. The Department develops guiding policies in the City’s General Plan and reviews new construction through zoning, subdivision regulations, community design guidelines and review of building permits and code enforcement issues. Planning involves the complex interaction of individuals, neighborhood groups, business organizations, environmental groups, land developers and contractors.

The Building Division is responsible for overseeing all construction activities including compliance with the Building, Electrical and Plumbing Codes. The Building Division reviews proposed construction plans for conformance to code requirements and monitors construction activities on a continuing basis to ensure structural integrity and safety. The Division identifies violations and necessitates corrections. The Division also provides information, processing, issuance and administration of all building permits. Generating reports and providing data to various agencies is also an important function of the Building Division.

DEPARTMENT GOALS AND WORKPLAN
Planning will continue to provide recurring land use and planning services to the general public, the department will also provide application processing for high priority economic developmentbased projects, as guided by the community leaders. These services include: Administrative, Current Planning, Comprehensive Planning and Planning Management Support.

Building will continue to interface with the public and assist citizens with questions regarding the use of their property and administer all of the Building Permit workflow including application submittal, routing plans, tracking comments, plan checking, calculate fees, issue permits, maintain historical records, conduct construction inspections, prepare inspection reports, write notices of violations and issue certificates of occupancy.

The Department’s work plan for FY 2022-23 includes the following:
• General Plan Update – The City’s General Plan is the citizens’ “blueprint” for development; the guide to achieving Scotts Valley’s vision. California law requires each local government to adopt a General Plan, which must contain at least seven elements:
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FY 2022-23 Proposed Budget

Land Use, Transportation, Housing, Conservation, Noise, Open Space and Safety. This project requires hours of staff research, meetings, and public workshops. The comprehensive modernization of the General plan is estimated to be completed by the end 2022.

• Accessory Dwelling Units (ADU) – Complete Policy, Code and Program Revisions. • Development Standards – Complete code and program revisions to implement Objective Design Standards for Mixed-Use Developments.
• Affordable Housing – Consider increasing the inclusionary housing boundary. • Permit Tracking System – Continue implementation of permit tracking system for Planning and Building Activities.
• Development Applications in-progress – Continue processing development applications for Oak Creek Park, Valley Gardens, and Gateway South.
• Housing Developments in-progress – Monitoring, building permits and inspections from Planning and Building for: The Encore/16 Condominiums and Polo Ranch/40 homes. • Commercial buildings – Continue work on the Target remodel, Scotts Valley Square Shopping Center and, The Hangar project on Mount Hermon Road.

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Comm. Dev. Planning Com. Dev. Director 1.00 0.50
Comm. Dev. Planning Deputy City Clerk* 0.25 0.25
Comm. Dev. Planning Assistant Planner 1.00 1.00
Comm. Dev. Planning Senior Planner 1.00 1.00
Subtotal 3.25 2.75
Comm. Dev. Building Com. Dev. Director 0.00 0.50
Comm. Dev. Building Buildng Permit Tech 1.00 1.00
Subtotal 1.00 1.50
TOTAL 4.25 4.25
029
FY 2022-23 Proposed Budget

DEPARTMENT BUDGET
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Comm. Dev. Planning Salaries & Benefits $472,679 $496,171 Comm. Dev. Planning Svcs & Supplies $244,700 $335,300
Planning Subtotal $717,379 $831,471
Comm. Dev. Building Salaries & Benefits $55,138 $314,770 Comm. Dev. Building Svcs & Supplies $392,300 $503,200
Building Subtotal $447,438 $817,970
TOTAL $1,164,817 $1,649,440
030
FY 2022-23 Proposed Budget

Public Works Department

FUND / ACCOUNT NUMBER
001.71 and 001.72 and 001.73 and 001.75 and 001.76

OVERVIEW
The Public Works Department oversees planning, design, construction, maintenance, repairs and operation services for City infrastructure. The department is also responsible for City cleanliness and manages the Solid Waste/Recycling Collection and Disposal Program. The department is represented by a professional, semi-professional and licensed disciplines working in Engineering, Maintenance, Parks and Recreation, and Wastewater Divisions.

The Engineering Division oversees and supports the planning, design, construction and inspection of improvements for all public works infrastructure projects including streets, storm facilities, curbs, gutters, sidewalks, landscaping, lighting and traffic control systems constructed within the City as part of the capital improvement program (CIP) or new development. The Division also provides ancillary support to other Departments through private development plan review.

The Maintenance Division is responsible for 35 miles of public streets, parking lots, storm drain systems, sidewalks, signage, striping, and street sweeping services. Maintaining and renovating Police, City Hall, Community Center, Senior Center and Recreation Buildings. Performing all park maintenance and operations activities for the City’s park system.

The Wastewater Division operates and maintains over 40 miles of sewer main pipeline, seven (7) sewer lift stations, a laboratory, the 1.5 million gallon per day Scotts Valley Water Reclamation Facility (WRF) and monitors the Source Control Program.

The Parks and Recreation Division is comprised of five developed parks, eight athletic fields, six children's play areas, and one off-leash area. Other facilities include tennis courts, bocce courts, swimming pool, community center, senior center, open space and hiking trails. The Covid-19 pandemic has disrupted and forced the division to cancel all Recreation Activities in FY 2021-22.

However, FY 2022-23 will see the restoration of many recreation services.

DEPARTMENT GOALS AND WORKPLAN
The mission of the Public Works Department is to continually provide effective and efficient essential services to the public. This includes environmentally sound wastewater collection and treatment, storm water management, and accessible well managed streets, parks, and public facilities.
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FY 2022-23 Proposed Budget

These typical recurring activities are assumed in the baseline activities of the department:
• Issue Public Works permits and inspection services
• Complete plan reviews
• Manage Capital Improvement Projects
• Participate in various regional committees
• Complete tasks to comply with the NPDES Phase II permit • Manage City’s Solid Waste/Recycling Franchise Agreement (2010-2022) with Green Waste Recovery and amend as needed to meet state mandates • Monitor, inspect and service the City Collection System • Monitor WRF operation to meet all regulatory monitoring and reporting requirements • Complete work orders to repair potholes, clear storm drains, trim and remove street trees, replace signage, replace concrete, asphalt paving, weed abatement, and striping • Complete work orders to repair irrigation, mark lines for sports programs, field repair, playground repair, and general park maintenance
FY 2021-22 continued to be an incredibly demanding year for the Public Works Department.

However, with the pandemic reaching an end, the Department intends to resume a robust project schedule this year. The Public Works Department goals for FY 2022-23 includes the following highlights:
• Wastewater Reclamation Facility Improvements: The City’s wastewater treatment facility is nearly 25 years old with a significant backlog of deferred maintenance and replacement. Similarly, the collection system, which collects and delivers wastewater from residences and businesses across the City is aged and in need of significant investment. FY 2022/23 will mark the second of five years of substantial investments in this critical utility, funded by a series of wastewater rate increases and strategic financial planning.
• Library Facility Improvements: This project consists of major improvements to the Scotts Valley branch. Improvements include seismic upgrades, roof overall and HVAC replacement and improvements to the interior and exterior of the building.

Improvements are funded through Measure S funds and the Library is expected to reopen in summer 2022.

• Parks and Roads Maintenance: The City is anticipating a year of robust maintenance to the City’s parks and roads. This includes catching-up on maintenance that had to be deferred due to the pandemic and limited staffing capacity and designing a comprehensive facility and maintenance plan for future years. • Recreation: City staff will start the initial stages of implementing the Recreation Assessment and Restoration Plan as adopted by the City Council. This includes exploring a new staffing model, relaunching many recreation services that were paused during the 032
FY 2022-23 Proposed Budget

pandemic, and exploring partnerships for services like childcare and other recreation activities.

STAFFING SUMMARY
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Administration Admin Secretary III 1.00 1.00 Public Works Administration Pub Works Director 1.00 1.00 Subtotal 2.00 2.00
Public Works Engineering Engineering Assoc. 2.00 2.00
Public Works Engineering Senior Civil Engineer 0.00 1.00 Subtotal 2.00 3.00
Public Works Maintenance Maint. Div. Mgr 1.00 1.00
Maintenance Maint. Supervisor 1.00 1.00
Public Works Maintenance Maint. Wrkr I/II/III 4.00 4.00 Subtotal 6.00 6.00
Public Works Recreation Rec. Division Mgr 1.00 1.00
Public Works Recreation Rec Coordinator 0.00 1.00
Public Works Recreation Admin Secretary III 1.00 1.00
Subtotal 2.00 3.00
Public Works Wastewater Accountant II/III* 0.15 0.15
Public Works Wastewater Senior WW Plnt Oper 1.00 1.00
Public Works Wastewater WW Div Manager 1.00 1.00
Public Works Wastewater WW Lab Compl Mgr 1.00 1.00
Public Works Wastewater WW Oper OIT/I/II 4.00 4.00
Subtotal 7.15 7.15
TOTAL 19.15 21.15

DEPARTMENT BUDGET
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Engineering Salaries & Benefits $521,500 $767,593 Public Works Engineering Svcs & Supplies $200,500 $268,500 Subtotal $722,000 $1,036,093
Public Works Street Maint. Salaries & Benefits $141,500 $333,238 Public Works Street Maint. Svcs & Supplies $214,300 $312,600 Subtotal $355,800 $645,838
Public Works Vehicle Maint. Salaries & Benefits $10,743 $63,776 Public Works Vehicle Maint. Svcs & Supplies $119,300 $112,000 033
FY 2022-23 Proposed Budget

Subtotal $130,043 $175,776
Public Works Parks Salaries & Benefits $266,411 $268,179 Public Works Parks Svcs & Supplies $251,266 $292,600
$517,677 $560,779
Public Works Building Maint. Salaries & Benefits $72,272 $241,917 Public Works Building Maint. Svcs & Supplies $169,200 $183,600 $241,472 $425,517
PUBLIC WORKS TOTAL $1,966,992 $2,844,003
Note: The City’s Wastewater budget is categorized separately in this document because it is an enterprise fund.
034
FY 2022-23 Proposed Budget

GENERAL FUND NON-DEPARTMENT FUNDS
The General Fund incurs some expenditures that are not related to any one specific department. These costs are included in the two areas listed below:

General Government Division (001.43)
This cost center includes various expenditures such as debt service and regulatory compliance related to general obligation certificates of participation, funding other post-employment benefit obligations into an irrevocable trust, contributions to such agencies as the Scotts Valley Fire District Hazardous Materials program and the Santa Cruz Local Agency Formation Commission, and the City’s membership in the League of California Cities. Expenditures related to risk management efforts (e.g., liability and property insurance) are included in the Administrative Services Department under the Risk Management division (General Fund Division #48). Expenditures related to workers compensation are allocated to each operating department based upon total personnel and risk-rating factors assigned to each employee based on classification.

General Equipment Replacement Reserve (006)
The City established this reserve fund for the purchase of equipment that is general in nature and does not relate to any one specific department. This fund is included as a subset of the General Fund. FY 2022-23 includes a project assessing overall City facility needs. It is expected that future projects resulting from this assessment will be budgeted in Fund 006 in the future. 035
FY 2022-23 Proposed Budget

PARKS AND RECREATION DIVISION

FUND / ACCOUNT NUMBER
004

OVERVIEW
The Parks and Recreation Division (PRD) works with all residents to be good stewards of the environment, and to provide safe, welcoming opportunities to play, learn, contemplate, and build community awareness. The PRD is comprised of five developed parks, featuring eight athletic fields, six children's play areas, and one off-leash area. Other facilities include four outdoor tennis courts, two bocce courts, one outdoor swimming pool, two horseshoe pits, three half basketball courts, a community center, senior center, a one-mile paved trail, one hiking trail, and more. Countless area residents and visitors use the Parks and Recreation facilities to pursue their passions, from soccer to music, kite flying to baseball, swimming to community events. Division employees work hard to develop partnerships with park neighbors, volunteers, non-profits, local businesses, the Scotts Valley Chamber of Commerce and the Scotts Valley School District to effectively respond to increasing requests for use of Scotts Valley's parks and recreation facilities. One of the most significant partnerships is with the Scotts Valley Unified School District to provide childcare and recreation programs at Vine Hill and Brook Knoll Elementary Schools.

The PRD also supports and manages the Park and Recreation Commission, the Arts Commission, and the Senior Center Board. These organizations are made up of volunteer members and are an advisory committee to City Council and Parks and Recreation staff on recreation programming and facility maintenance which enables the Division to consistently offer incredible parks, quality childcare, and a wide range of recreation programs to the public.

DEPARTMENT GOALS AND WORKPLAN
FY 2022-23 will be another year of recovery for the City’s Parks and Recreation Division. In March 2020, the City was forced to pause its Recreation programming and facilities in response to public health restrictions to contain the transmission of the COVID-19 virus. In FY 2022-23, City staff will start implementing the Recreation Assessment and Restoration Plan as adopted by the City Council.

The PRD is a revenue-generating operation. However, revenues do not fully cover the costs of the PRD operation. As a result, the FY 2022-23 budget anticipates that cost recovery will be around 70% and will require a subsidy from the General Fund to balance Recreation Enterprise Fund. City staff have projected that the required General Fund subsidy will be approximately $215,000 in FY 2022-23.
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FY 2022-23 Proposed Budget

Staff does anticipate that cost recovery rates will increase from 70% to closer to 90% in future years; however, it is projected that there will be an ongoing and long-term need for the General Fund to subsidize the Recreation Enterprise Fund using the current operational model. As costs to provide PRD services increase in subsequent years, the size of the General Fund subsidy will also grow.

STAFFING SUMMARY
The Parks and Recreation Division is part of the Public Works Department based on the supervisory structure of the operation.

Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Recreation Rec. Division Mgr 1.00 1.00
Public Works Recreation Rec Coordinator 0.00 1.00
Public Works Recreation Admin Secretary III 1.00 1.00
TOTAL 2.00 3.00

DEPARTMENT BUDGET
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Recreation Salaries & Benefits $351,103 $615,938 Public Works Recreation Svcs & Supplies $121,446 $210,700 RECREATION TOTAL $472,549 $826,638
037
FY 2022-23 Proposed Budget

WASTEWATER ENTERPRISE FUNDS

FUND / ACCOUNT NUMBER
010 and 011 and 012 and 014 and 015

OVERVIEW
The City provides wastewater services to the community through its wastewater collection and treatment plant operations. The City also provides tertiary water (recycled water) services through the treatment and distribution of nonpotable water to the Scotts Valley Water District.

Wastewater services are provided under the Public Works Department. Please refer to the Public Works section for a more detailed description of the department and the services it provides, including information about wastewater services. Wastewater services are accounted for in a series of funds referred to as “Wastewater Enterprise Funds”. A description of these funds and the activities that are included in them follows.

DEPARTMENT GOALS AND WORKPLAN
The Wastewater Division has a significant series of goals in FY 2022-23, including to accomplish the CIPs as identified in the City’s Five-Year CIP Plan. Notable projects in FY 2022-23 include the following: Wastewater Recovery Master Plan, Aeration Basin System Upgrade, Belt Press Conveyor Replacement, Collection System Pipeline Upgrades, and the purchase of a Sewer Vactor Truck.

NOTE: The City’s Wastewater Rate Study identified approximately $4.5 million in debt being needed to fully satisfy the long-term needs of the Wastewater Division. During FY 2022-23, the City will work with its financial consultants to further discuss this proposed funding mechanism as part of the Wastewater Rate Study’s 10-year Capital Improvement Plan.

STAFFING SUMMARY
The staffing summary for the Wastewater division has also been included as part of the Public Works Department staffing summary based on the supervisory structure of the operation.

Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Wastewater Accountant II/III* 0.15 0.15
Public Works Wastewater Senior WW Plnt Oper 1.00 1.00
Public Works Wastewater WW Div Manager 1.00 1.00
Public Works Wastewater WW Lab Compl Mgr 1.00 1.00
Public Works Wastewater WW Oper OIT/I/II 4.00 4.00
TOTAL 7.15 7.15
038
FY 2022-23 Proposed Budget

DEPARTMENT BUDGET
Dept. Division Position FY 2021-22
Approved
FY 2022-23
Proposed
Public Works Wastewater Op Salaries & Benefits $1,245,333 $1,205,167 Public Works Wastewater Op Svcs & Supplies $2,263,499 $2,340,700 WASTEWATER OPERATIONS TOTAL $3,508,832 $3,545,867
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FY 2022-23 Proposed Budget

SPECIAL REVENUE FUNDS
The City has established separate funds based on funding source to account for resources that must be used for a specific project or use. These funds are known as “Special Revenue Funds”.

One of the more significant group of Special Revenue Funds are those funds that the City collects from developers to fund public infrastructure that is required to meet the needs of the impact that those developments have on community resources. These Development Impact Fees are grouped in a separate section within this Annual Budget document. A brief overview of the other Special Revenue Funds that are not development related are indicated below.

Recycling/Environment Fund (002)
This fund accounts for fees paid by solid waste companies and customers through the County of Santa Cruz for disposal of solid waste in County transfer facilities. A portion of these revenues are sent back to the City to help pay for recycling and environmental protection initiatives such as street sweeping, e-waste recycling, community training classes, and storm water protection and remediation.

Gas Tax Fund (003)
The state of California imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel and registration taxes on motor vehicles with allocations to dedicated transportation purposes. These allocations flow through the Highway Users Tax Account (HUTA), which are allocated to state and local agencies based primarily on population.

These revenues are allocated to Scotts Valley and other cities based on the provisions in the California Streets & Highway Code §2103-2107.5
These funds are used to finance street maintenance activities performed by the Public Works Streets Maintenance Division and other roadway improvements where other funds (e.g., Measure D, transportation grants, etc.) might not otherwise be available.

SMIP Fees Fund (005)
The City levies a Strong Motion and Instrumentation Program (SMIP) fee on every building permit where a building discipline inspector is required as part of the field inspection. This fee funds the California State Strong-Motion Instrumentation Program, administered by the California Department of Conservation, which funds the purchase, installation, maintenance, data collection and interpretation of information collected from seismic instrumentation placed in geographic environments throughout the state. These funds are remitted to the State as required by California Public Resources Code §2700-2709.1. 040
FY 2022-23 Proposed Budget

Affordable Housing Fund (019)
Upon dissolution of the City’s former redevelopment agency (RDA) in 2012, the City chose to become the successor housing agency to administer affordable housing programs in Scotts Valley. Funds were transferred from the former redevelopment agency upon dissolution to fund affordable housing programs that were enforceable obligations at the time of dissolution.

On an ongoing basis, the City received rental income from affordable housing properties that were previously owned by the redevelopment agency and dedicated to the City as part of dissolution. The City also carries first-time homebuyer loans on the books that will be paid upon sale of those homes by their homeowners. The revenue is used to fund the ongoing administration of affordable housing properties owned by the City as successor housing agency, and used to help fund development of additional affordable housing stock in Scotts Valley through subsidies paid to developers.

Lennar Fund (025)
In 2014, the City approved a first amendment to the development agreement between the City and Lennar Homes of California, Inc. for the development of homes on the property formerly known as Polo Ranch. Lennar paid the City $1 million as required by the development agreement to be used for park and recreational opportunities in the City at the sole discretion of the City Council. These funds have been used to fund a variety of parks and recreational infrastructure improvements.

Senior Center Operations Fund (028)
The City operates a Senior Center for the enjoyment of Scotts Valley’s seniors, offering a variety of programs and activities and rental of the senior center facility by community members.

Program and rental revenues are recorded in the fund to pay for the expenditures associated with the programs and activities offered.

STP Exchange Projects Fund (031)
California’s Department of Transportation administers the Regional Surface Transportation Program (RSTP, or STP), using Surface Transportation Block Grant Program funds provided under federal law, to provide flexible funding to address State and local transportation needs.

The City has also applied for and received grants from the California Transportation Commission 2018 Local Partnership Program in the past. These grants fund various transportation related projects, and this fund accounts for the grant revenues and the associated capital project expenditures for approved projects Tree Replacement Fund (033)
The City levies a tree removal fee for property owners that wish to remove trees on their property. A higher fee is charged for what are considered “heritage trees”. Fees collected are 041
FY 2022-23 Proposed Budget

used to fund tree planting maintenance efforts on City property to mitigate the environmental impact on tree removal by private property owners.

Green Building Fund (035)
The City levies a green building fee in accordance with the provisions of Scotts Valley Municipal Code §17.51.080, on property development that is not otherwise exempt from the fee based on their proposed green building elements of the project. The fee is based on assessed valuation of improvements. Revenues collected from developers are used for program management, public educational purposes and local seminars on green building issues and programs.

Disability Compliance Fund (036)
The City collects a four-dollar fee required by Senate Bill 1186 (2012) on any local business license registration or renewal, Ninety percent of this fee is retained by the City to fund training and retention of certified access specialists (CASPs) and activities or programs that facilitate accessibility compliance. The remaining ten percent is remitted to the California Department of General Services’ Division of the State Architect on a quarterly basis. The fee will revert to one dollar on January 1, 2024.

Pinewood Estates Maintenance District (050)
A landscape maintenance assessment district was established in 1987 for 25 parcels in the Pinewood Estates subdivision to maintain improvements consisting of ornamental landscaping, irrigation equipment, signs, fences and storm detention ponds. This fund accounts for the expenditures associated with those maintenance efforts that are paid for from assessments levied on the homeowners.

Skypark Landscape Maintenance District (077 and 078)
An open space maintenance assessment district was established in 1995 to maintain a linear park and two greenbelt areas that are the responsibility of 190 parcel owners adjacent to Skypark. Maintenance efforts are accounted for in Fund #077 and include maintenance of landscape, irrigation systems, lighting, curbs, gutters, sidewalks and water/electricity utilities.

The district also establishes a self-insurance fund in the event of a slope failure, which is accounted for in Fund 078. The assessments levied on the 190 parcel owners for maintenance and self-insurance are deposited into those respective funds.

Library Facilities Improvements (Measure S) Fund (088)
The passage of countywide Measure S in June 2016 provides $3.75 million in bond financing revenues for improvements to the Scotts Valley Library. The remaining balance is expected to 042
FY 2022-23 Proposed Budget

be drawn down in FY 2022-23 to pay for the renovation project which commenced in summer 2021 with completion scheduled for summer 2022. The renovation includes seismic upgrades, roof overlay, new HVAC system, youth and teen area redesigns, enclosure of the fireside room, acoustic improvements and refreshed furniture, carpet and paint throughout the library.

Library County Maintenance of Effort (MOE) Excess Distribution Fund (089) The City participates in the Santa Cruz County Library Financing Authority for the provision of library services. The authority collects property taxes on properties located in Scotts Valley, which funds the City’s portion of the countywide library system and operation of the Scotts Valley Branch library. This payment is called the Maintenance of Effort, or MOE. These funds are intended to be used for library improvements and are expected to be applied to the Library renovation project (Fund 088) as needed.

Community Facility Center Operations Fund (123)
The City operates a Community Center for the enjoyment of the community. The facility is available for rental to the public. Rental revenues are recorded in the fund to pay for the expenditures associated with the operation and maintenance of the Center.

Measure D Sales Tax for Transportation (155)
The passage of countywide Measure D in November 2016 provides nearly $300,000 in annual sales tax revenues to the City to fund a variety of transportation projects that the City might not have otherwise been able to fund with existing revenues (a key stipulation in the measure).

Projects are identified and approved by the Regional Transportation Commission on an annual basis.

American Rescue Plan Act (172)
The American Rescue Plan Act (ARPA), signed into law by the President on March 11, 2021, provided $65 billion in aid to local governments across the country. Scotts Valley will receive over $2.8 million starting in July 2021, split into equal payments 12 months apart. Uses must be in compliance with the provisions in the legislation and regulations issued by the US Treasury Department in May 2021.

CALTRANS – Get Everyone Moving (178)
The City entered into a restricted grant agreement with the California Department of Transportation to fund the development of the Scotts Valley Get Everyone Moving Plan. This plan will identify barriers to safe and frequent bicycling and walking and will guide future active transportation developments within the City of Scotts Valley. The City is identified as the authorized agency and is working in partnership with Ecology Action, Bike Santa Cruz, and the 043
FY 2022-23 Proposed Budget

Scotts Valley Active Transportation Group and an outside consultant to develop the Plan and meet the objectives of the grant. The total amount of the grant is $175,000.

Proposition 68 Parks/Water Bond Act (268)
In 2018, California voters approved Proposition 68, the Parks, Environment, and Water Bond Act, which authorized $4 billion in state general obligation bonds to fund various state and local parks, environmental protection projects, water infrastructure projects, and flood protection projects. Funds are available through an annual grant application process based on various eligibility requirements.

Supplemental Law Enforcement Services Fund (306)
The State provides funding for local law enforcement pursuant to the provisions of California Government Code §30061 under the Citizens’ Option for Public Safety program. These funds, known as “supplemental law enforcement services funds.” (SLESF) are allocated to local agencies to provide “front-line law enforcement services”, allocated based on population with a minimum grant of $100,000 to each agency. Due to Scotts Valley’s relative size within Santa Cruz County, the City receives only the minimum $100,000.

These funds are eligible to be used for operating or capital law enforcement expenditures at the discretion of the agency. Scotts Valley has historically used these funds to finance capital acquisition of equipment and other capital needs for the Police Department.

Police Proposition 56 Tobacco Prevention Funds (309)
In 2021, the City was awarded a grant in the amount of $567,000 by the California Department of Justice under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Prop 56) that provides funding for a dedicated School Resource Officer (SRO) for a three-year period starting in FY 2021-22. The focus of the position will be on youth education and prevention, tobacco retailer outreach and education, and retailer compliance and enforcement regarding the use of tobacco products in schools and the sale of tobacco products in Scotts Valley. No local match is required for the grant. The funds will pay for the SRO, administrative costs, and training/marketing materials on an annual basis through FY 2023-24.

Police Budget Act of 2016 Fund (312)
In 2017, the City received $49,000 through the City of Watsonville from grants associated with the State’s Budget Act of 2016 that appropriated funds for agencies employing 100 or fewer officers. The funds are required to be used to supplement existing funds for such areas as homeless outreach, gang resistance education and training, outreach to high-risk youth, and other similar programs. The police chiefs in Santa Cruz County agreed to split the grant equally among the cities of Watsonville, Capitola, Santa Cruz and Scotts Valley. The City intends to 044
FY 2022-23 Proposed Budget

expend an amount not to exceed $15,000 each year in support of the DARE program until all funds are depleted.

EDG Revolving Loan Fund (317)
This loan fund was established to account for a notes receivable due from a developer that is secured by that property. The loan was provided from Community Development Block Grant funds and is payable upon the sale of the property.

In addition, the City is initiating a process in May 2021 and implemented in FY 2021/22 to distribute $550,000 across three fiscal years (FY 2021/22, 2022/23 and FY 2023/24) through a CDBG-Program Income application process. The City’s General Fund will advance the EDG Revolving Loan fund an amount of $550,000 over a three-year period starting in FY 2021-22 (over $183,000 annually) to reimburse the fund for the loan receivable which has not yet been paid by the developer. Once the developer has paid off the loan, the General Fund will be reimbursed for its advance.
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FY 2022-23 Proposed Budget

GENERAL CAPITAL IMPROVEMENT FUND
The City sets aside funds for future capital improvement projects that are not able to be funded, or fully funded, from other funding sources such as gas tax revenues, development impact fees, wastewater rates, or grant funds. This fund is called the General Capital Improvement Fund (150).

Typical items that may be funded through this fund may include accessibility improvements, technology upgrades, roof replacements, and major facility repairs/replacements. The funding sources available for such projects will typically come through transfers from the City’s General Fund, or possible onetime revenue sources such as grants.

The following CIPs are budgeted at approximated $4.5 million dollars and have been included in the FY 2022/23 budget as part of a comprehensive five-year CIP Plan:
• $1,400,000 – Vine Hill Childcare Facility (includes federal funding) • $1,250,000 – Public Works Facility Replacement (includes federal funding) • $ 362,500 – Sunridge Drive Stormwater Repair
• $ 300,000 – City Hall HVAC Replacement
• $ 250,000 – City’s Computerized Maintenance Management Software (CMMS) • $ 200,000 – Pinecone Drive Draining Improvements
• $ 200,000 – City Council Chambers Technology Improvements • $ 125,000 – Storm Drain Trash Capture
• $ 100,000 – Annual Citywide Street Striping and Signage • $ 82,000 – Skypark Play Structure
• $ 75,000 – City Facilities Condition Assessment
• $ 74,000 – Senior Center ADA Improvements – Phase 2
• $ 73,400 – City Hall ADA Improvements – Phase 1
• $ 30,000 – Police Department Fitness Facility
$4,521,900 – Total General Fund CIPs budgeted in Fund 150 046
FY 2022-23 Proposed Budget

CAPITAL IMPROVEMENT AND

CAPITAL PURCHASE PROGRAM
The Capital Improvement and Capital Purchase Program (CIP) consists of projects to maintain and enhance the City’s infrastructure related to its roads, parks, facilities and wastewater treatment plant for the benefit of the community. It also includes the capital outlay associated with equipment, vehicles and information technology hardware/software that support the City’s operations. The primary objective of the CIP is to develop and implement projects to ensure continued reliable delivery of service to meet the City’s needs.

The City prepares a five-year capital improvement project and capital outlay plan as part of its annual budget. The development of the CIP Plan is more complex than planning to purchase a piece of equipment that would be the subject of a capital outlay expenditure. FY 2022-23 CIP costs have been accounted for as part of the table in the Summary of Financial Resources section of this document. Current and future year CIP costs have also been incorporated as part of the City’s Long-Range Forecast.

The chart below is a summary of FY 2022-23 CIPs as approved by the City Council. These CIPs are also presented to the City’s Parks & Recreation Commission and Planning Commission to confirm their consistency with the City’s General Plan.

Note: Several CIPs concurrently address needs identified in the City’s Active Transportation Plan (ATP) as approved by the City Council in March 2021. The ATP is a comprehensive document, over 70 pages in length. To align with Government Finance Officers Association (GFOA) best practices by considering the file size of a budget document, for ease of use of the document by all audiences, including by linking to sections whenever appropriate, the full ATP can be found online on the City’s website and by visiting the URL listed below:
https://www.scottsvalley.org/DocumentCenter/View/2800/SV-Active-Transportation-Plan 047
FY 2022-23 Proposed Budget

FY 2022-23 CIP Plan Summary
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FY 2022-23 Proposed Budget

CIP PROJECT DESCRIPTIONS
This section is being reserved for detailed descriptions of each CIP, including the Project Description, Project
Priority, Funding Source, and Estimated Schedule. All of these details are known and were incorporated during
the development of CIP Plan as approved by the City
Council and the FY 2022-23 Proposed Budget.

This section will be included as part of the FY 2022-23 budget document as part of the agenda packet for the
June 15, 2022, City Council meeting.
049
AGENDA ITEM 5
DATE: 06-01-2022
City of Scotts Valley

INTEROFFICE MEMORANDUM
DATE: June 1, 2022
TO: Honorable Mayor and City Council
FROM: Mali LaGoe, City Manager
SUBJECT: FLAG POLICY

SUMMARY OF ISSUE
At the September 1, 2021, and May 18, 2022, City Council meetings, Council Member Timm requested staff bring forward a policy on the display of flags at City of Scotts Valley (“City”) owned properties for City Council’s consideration. Staff has prepared two versions of the policy. Specifically, one memorializes the current practice of only allowing federal and state flags (“Policy 1”) and the other allows for the display of commemorative flags at the City Council’s sole direction (“Policy 2”).

Flags and flagpoles owned or maintained by the City of Scotts Valley are not intended to serve as a forum for free expression by the public, but rather are a non-public forum.

The City has had a longstanding practice, but not a formal policy, of only allowing federal and state flags. A Flag Policy would outline an official policy for the display of any flag by the City and create an objective standard going forward.

The term “commemorative flag” is the commonly used term to define any nongovernmental flag (meaning not formally recognized nationally and congressionally as a governmental flag or associated with a local government). Policy 1 would apply to Cityowned properties that are leased to third parties while Policy 2 would not apply to leased or licensed properties, leaving the decision up to the leaser.

Policy 1- Memorializes Past Practice
Historically, the U.S. Flag and the California State Flag have been displayed on the flagpoles at City Hall (both indoors and outdoors), as well as on other flagpoles located at other City owned properties, such as at the Community Center, Library and on Mount Herman Road south of Scotts Valley Drive. This is consistent with both federal and state law (United States Code, Title 4, Ch. 1, et seq., and California Government Code sections 430 et seq.). Policy 1 memorializes this past practice.

Policy 2- Allows “Commemorative Flags”
The proposed Policy 2 mirrors Policy 1 for all City owned properties and allows commemorative flags. The City Council can elect to display a commemorative flag in 001
AGENDA ITEM 5
DATE: 06-01-2022
the position of lowest honor to the U.S. Flag and California State Flag consistent with the policy. The policy complies with state and federal laws and is structured in a manner that treats commemorative flags as government speech.

The policy prohibits third-party requests for commemorative flag displays and only allows for the display of commemorative flags when the request is brought forth by a member of the City Council to place the consideration of a specific commemorative flag on a future agenda. The decision to display the commemorative flag must then be authorized by a majority vote of the City Council at a duly noticed regular or special City Council meeting, as an expression of the City Council’s official sentiments.

Policy 2 also provides that any commemorative flag being considered must be consistent with the current City Council recognized goals and priorities and City strategic plan. Consistent with Federal and State law, Policy 2 makes clear that the following are not allowed as commemorative flags and will not be considered by the City Council:
i. Flags of a particular religious movement or creed, to avoid the appearance of City government endorsing religion or a particular religious movement or creed;
ii. Flags of a political party, to avoid the appearance of City government endorsing a political party; and
iii. Flags advocating a certain outcome in an election.

Policy 2 also makes clear that the City must obtain the commemorative flag itself.

Further, at the May 18, 2022 City Council meeting, Councilmember Timm requested to add to the June 1, 2022 agenda an item to consider flying the Pride flag during Pride month (June). If the Council approves Policy 2 at tonight’s meeting, allowing commemorative flags, the Council could then also consider approving the Pride flag to be displayed in accordance with the approved Flag Policy. The Pride flag, in representing the diversity of the LGBTQ community, is consistent with the discussion the Council had during the Strategic Plan Study Session on April 7, 2022 where “Inclusivity” was identified as a contributing factor to the Council’s Strategic Goal of Maintaining the Quality of Life of Scotts Valley residents. It is further consistent with the City’s FY 2021-22 Strategic Goals Work Plan Objective #11 including promoting an inclusive work place and enhancing the City’s efforts in diversity, equity and inclusion.

FISCAL IMPACT
Adoption of Policy 1 will have no fiscal impact, as only legally required and governmentally recognized flags will be flown, and the costs of such flags are already provided for in the approved budget.
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AGENDA ITEM 5
DATE: 06-01-2022
Adoption of Policy 2 will have a minimal fiscal impact associated with the City obtaining any authorized commemorative flag. The costs are wholly dependent on the number of commemorative flags authorized by City Council.

STAFF RECOMMENDATION
It is recommended that City Council consider the proposed flag policies and vote to adopt Policy 1 or Policy 2 as to form or amended, or direct staff to take further action if neither policy is acceptable to the Council.

Should the Council vote to adopt Policy 2, it is recommended that the Council further consider approval to fly the Pride flag from June 2nd to June 30th to commemorate Pride Month, as requested by Councilmember Timm at the May 18th Council meeting.

TABLE OF CONTENTS PAGE
Resolution No. 2014…………………………………………………………………………3
Policy 1………………………………………………………………………………………..5
Policy 2………………………………………………………………………………………..7
003
RESOLUTION NO. 2014

ADOPTING A CITY OF SCOTTS VALLEY POLICY ON DISPLAY OF FLAGS WHEREAS, the City of Scotts Valley currently displays, as required by existing law, theUnited States Flag and the State of California Flag; and WHEREAS, the City of Scotts Valley does not have a formal policy regarding the display offlags; and
WHEREAS, the City Council desires to establish a policy that provides guidance and standards for the indoor and outdoor display of flags at City of Scotts Valley owned properties; and
WHEREAS, in adopting this Policy on Display of Flags, the City Council declares thatflags and flagpoles owned or maintained by the City of Scotts Valley are not intended to serve as aforum for free expression by the public, but rather as a nonpublic forum for the display of flagsoutlined in the Policy on Display of Flags, as an expression of the City Council's official sentiments (government speech).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Scotts Valley approves the Policy on Display of Flags, attached and incorporated hereto as Exhibit A.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 1 st day of June, 2022, by the
following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Donna Lind, Mayor
Attest:

Cathie Simonovich, City Clerk
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Policy 1- no commemorative flags

CITY OF SCOTTS VALLEY POLICY ON DISPLAY OF
FLAGS
The Scotts Valley City Council (hereinafter “City Council”) desires to establish a “Policy on Display of Flags” (hereinafter “Policy”). In adopting this Policy, the City Council declares that the City of Scotts Valley’s flagpoles are not intended to serve as a forum for free expression of the public, but rather for the display of Federal and State flags, consistent with applicable law and past practice.

I. Purpose
A. The purpose of this Policy is to establish clear guidance from the City Council regarding the indoor and outdoor display of flags at City of Scotts Valley (hereinafter“City”) owned properties.

B. In adopting this Policy, the City Council desires to memorialize the past practice of displaying only nationally and congressionally recognized flags, consistent with required law.

C. In adopting this Policy, the City Council declares that flagpoles owned or maintained by the City are not intended to serve as a forum for free expression by the public. Rather, such flagpoles are a non-public forum for the display of Federal and State flags, as authorized by this Policy, as an expression ofthe City Council's official sentiments (government speech).

D. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party.

II. Policy
A. Conformance with Federal and State Regulations. Flags shall be displayed in accordance with all Federal and State statutes and regulations, including, but not limited to United States Code, Title 4, Chapter 1, et seq., and California Government Code sections 430 et seq., as may be amended from time to time, and this Policy.

B. For all City owned properties (including parks). If there is an outside flagpole, the United States Flag may be displayed and the State of California Flag may be displayed, as described in section II(A) above. If flags are displayed indoors, those flags are limited to the United States Flag and the State of California Flag.

Commemorative flags may not be displayed.

If such City owned property is leased or licensed to a third party, that third party shall be bound by this Policy.
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III. Procedures
A. Consistent with section II(A), no other flag shall be placed above the United States Flag and no other flag shall be larger than the United States Flag.

B. Flags should be hoisted briskly and lowered ceremoniously. The United States Flag should be hoisted first and lowered last.

C. Flags shall be displayed during operating hours on all days on which the City is open for business, and on national and state holidays. Flags may be displayed twenty-four (24) hours a day as long as they are illuminated during darkness.

D. Flags shall not be displayed during inclement weather, unless all- weather flags are used and are illuminated during darkness.

E. When flags are displayed on a single pole, the order from top to bottom shall be:
the United States Flag and the California State Flag.
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5/26/22
Policy 2- commemorative flags

CITY OF SCOTTS VALLEY POLICY ON DISPLAY OF
FLAGS
The Scotts Valley City Council (hereinafter “City Council”) desires to establish a “Policy on Display of Flags at City Facilities” (hereinafter “Policy”). In adopting this Policy, the City Council declares that the City of Scott Valley’s flagpoles are not intended to serve as a forum for free expression of the public, but rather for the display of Federal, State, and City of Scotts Valley flags, and any “commemorative flag” as may be authorized by this Policy and the City Council as an expression of the City Council’s official sentiments.

I. Purpose
A. The purpose of this Policy is to establish clear guidance from the City Council regarding the indoor and outdoor display of flags at City of Scotts Valley (hereinafter“City”) facilities.

B. In adopting this Policy, the City Council declares that flagpoles owned or maintained by the City are not intended to serve as a forum for free expression by the public. Rather, such flagpoles are a non-public forum for the display of Federal, State, and City of Scotts Valley flags, and any commemorative flag (as defined by section II(C)(1) below), as authorized by the City Council and this Policy as an expression of the City Council's official sentiments (government speech).

C. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party.

II. Policy
A. Conformance with Federal and State Regulations. Flags shall be displayed in accordance with all Federal and State statutes and regulations, including, but not limited to, United States Code, Title 4, Chapter 1, et seq., and California Government Code sections 430 et seq., as may be amended from time to time, and this Policy.

B. For all City owned properties (including parks), other than the Civic Center, located at One Civic Center Drive, Scotts Valley. If there is an outside flagpole, the United States Flag may be displayed and the State of California Flag may be displayed, as described in section II(A) above. If flags are displayed indoors, those flags are limited to the United States Flag and State of California Flag. Commemorative flags may not be displayed.

If such City owned property is leased and/or licensed to a third party, that third party shall not be bound by this Policy, but must comply with any Federal, State, or local laws related to display of flags.
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C. Civic Center, located at One Civic Center Drive, Scotts Valley. Regarding the flagpole outside of City Hall, the United States Flag shall be displayed and the State of California Flag shall be displayed, as described in section II(A) above, as well as a “commemorative flag” (as defined by section II(C)(1)). If flags are displayed indoors of the Civic Center, thoseflags are limited to the United States Flag and State of California Flag.

1. Commemorative Flag
a. As expression of the City’s official government speech, the City Council may authorize the display of a “commemorative flag” to be displayed below any other flags on the Civic Center flagpole, located at City Hall. Only commemorative flags that comply with this Policy may be displayed. b. A commemorative flag is any flag that is consistent with this Policy and not the United States Flag or State of California Flag.
c. The City Council shall only consider a request to display such a commemorative flag if the request is made by a member of the City Council to place the discussion on theagenda for a regular or special City Council meeting. Requests to display a commemorative flag by members of the public will not be considered.
d. A majority of the City Council must agree to display the commemorative flag as part of an official City Council action at a duly noticed, Ralph M. Brown Act compliant, regular or special City Council meeting. e. Commemorative flags shall be displayed for a period of time that is reasonable or customary for the subject that is to be commemorated, but no longer than thirty-one (31) continuous days.
f. If any other flag is displayed at half-staff, the commemorative flag will also be displayed at half-staff, height limits permitting.
g. A commemorative flag will only be considered by the City Council if it is commonly identified with, and consistent with, the current City Council recognized goals and priorities and City strategic plan. The following are not allowed as commemorative flags and will not be considered by the City Council:
i. Flags of a particular religious movement or creed, to avoid the 008

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appearance of City government endorsing religion or a particular religious movement or creed;
ii. Flags of a political party, to avoid the appearance of City government endorsing a political party; and
iii. Flags advocating a certain outcome in an election. h. Any approved commemorative flag will be obtained by the City.

III. Procedures
A. Consistent with section II(A), no other flag shall be placed above the United States Flag and no other flag shall be larger than the United States Flag.

B. Flags should be hoisted briskly and lowered ceremoniously. The United States Flag should be hoisted first and lowered last.

C. Flags shall be displayed during operating hours on all days on which the City is open for business, and on national and state holidays. Flags may be displayed twenty-four (24) hours a day as long as they are illuminated during darkness.

D. Flags shall not be displayed during inclement weather, unless all- weather flags are used and are illuminated during darkness.

E. When flags are displayed on a single pole, the order from top to bottom shall be:
the United States Flag, the California State Flag, and if displayed and allowed by this Policy, the commemorative flag.
009