Agenda-Item-Number-12-2-1-22-Mid-Year-Budget-Adjustments-Staff-Report_Final — Sebastopol City Council, February 1, 2022

Agenda Item Number:__12 __

CITY OF SEBASTOPOL

CITY COUNCIL

AGENDA ITEM
Meeting Date: February 1, 2022
To: Honorable Mayor and City Councilmembers
From: Budget Committee
Subject: Discussion and Consideration of Adoption of Resolution Approving the Mid-Year Budget adjustments to the City of Sebastopol Budget for FY 2021-22 Recommendation That the City Council Adopt the Mid-Year Budget Adjustments Funding: Currently Budgeted: ___X ___ Yes ______ No _____N/A Net General Fund Cost: $328,820 deficit
If Cost to Other Fund(s):

Water: $371,936 deficit
Wastewater: $654,631 deficit
Costs authorized in City Approved Budget_AK___ (verified by Administrative Services Department)

INTRODUCTION/PURPOSE:

This item is to request the City Council discuss and consider the Mid-Year budget amendment requests and approve and adopt Resolution to amend the FY 2021-22 adopted operating budget and authorize the Administrative Services Director to record changes in anticipated revenues and appropriations for expenditures.

BACKGROUND:

The City Council adopted the FY 2021-22 budget on July 20, 2021. That budget was presented with a planned use of reserve to cover the budgetary shortfall of $1,052,433. The mid-year budget amendment process occurs annually after the end of the second quarter of the fiscal year. The mid-year budget process provides an opportunity for each department to update the City Council on the major financial factors affecting the City’s current fiscal year budget. As the mid-year budget review is not intended to be a full discussion of the budget, it is an opportunity for City Council to:

1. Review the General Fund and other funds;

2. Make adjustments to achieve a more accurate budget for the current fiscal year (resulting in greater budget transparency); and

3. To help shape the development of next year’s budget.

The Budget Committee briefly met one time and has reviewed and revised the mid-year revenue projections for the general fund, water and sewer enterprise, and for the most significant revenue categories and recommended adjustments accordingly. To that end, a revised budget is presented with a planned use of reserve to cover the adjusted budgetary shortfall of $328,820. The original budgetreflected a shortfall of $1,052,433 to be covered by the use of reserve.

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DISCUSSION:

As discussed above, the mid-year budget process provides an opportunity for each department to update the City Council on the major financial factors affecting the City’s current fiscal year budget and allows the City to reexamine the revenue projections as more information becomes available after adoption of the original budget in July.

Increases and/or decreases in anticipated revenues do not require formal City Council action, but they are shown in order to provide a clear picture of updated financial expectations, and to provide a more valid benchmark from which to measure end-of-year final results. Revenue increases that support increases in service level expenditures are also recommended to be recorded to keep an accurate picture of the City's intention to not increase general fund net costs.

Total expenditure appropriations can only be increased by formal action of the City Council.

The table below reflects the results of the analysis and recommended adjustments to revenue accounts. 2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
$ 2,781,985 $ 2,770,952 $ 2,733,000 $ 2,780,700 $ 3,070,534 1 $ 289,834 10.4% 38,066 79,547 39,000 41,000 50,000 9,000 22.0%
3,697,725 4,362,811 3,765,000 3,977,500 4,547,000 2 569,500 14.3% 763,643 795,113 744,600 742,600 755,700 13,100 1.8%
518,175 402,255 400,000 400,000 400,000 - 0.0%
336,738 363,167 335,500 335,500 355,000 19,500 5.8%
449,875 498,475 292,900 292,900 347,900 3 55,000 18.8%
48,171 30,439 46,500 35,000 30,000 (5,000) -14.3%
1,729,540 503,343 166,700 938,950 1,018,350 4 79,400 8.5% 237,347 8,173 200,500 170,500 68,500 5 (102,000) -59.8% 179,196 176,848 128,600 128,600 122,600 (6,000) -4.7%
555,280 299,831 262,625 60,000 60,000 - 0.0%
TOTAL 11,335,741 10,290,954 9,114,925 9,903,250 10,825,584 922,334 9.3% Interest and Rents
Charges for Current Services
Miscellaneous/Other Income
Intergovernmental
Description

OPERATING REVENUE
Property Taxes
Real Property Transfer
Sales Tax
Use Tax
Transient Occupancy Tax
Franchise Fees
Licenses and Permits
Fines & Forfeitures
General Fund Revenues:

The overall increases for the mid-year revenue of 9.3% include:

1. Adjustment to property tax revenue based on a recent December receipt. Increase in this line item is due to a shifting of those taxes received on properties within the Sebastopol RDA boundary that are no longer being carved out for RDA (RPTTF) funds following the finalization of dissolution of successor agency in late October 2021.

2. Sales tax took a major adjustment upward based on new forecast level since the adoption of the budget. The adopted budget was based on a conservative approach and available data during the time of the budget process.

3. Licenses and permits also being adjusted based on what had been seen in previous years actual receipts. This line item will continue to be a moving target as it depends on the building activities climate and environment.

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4. Intergovernmental increase is the amount awarded from the County to support the RV Village being operated by Sonoma Applied Village Services. This category also includes a reduction to P.O.S.T (Peace Officer Standards & Training) reimbursement income by $600 based on prior year actual collections.

5. Interests and Rents took a major hit as higher yield investments have matured. The new investments portfolio has very low interest earning rates. The positive side of having low interest rates is that the City has benefited by refinancing multiple debts services to allow for lower debt service payments. However, the downside of low interest rates remains, as we are seeing the impact of our investment returns decreasing drastically.

During fiscal year 2020-21, the County of Sonoma Treasury, used as a depository for city pooled cash, paid $1,200,000 to an unknown party based on a fraudulent wire transfer request that was not initiated by the City of Sebastopol. The loss of $1,200,000 is accounted for as an extraordinary item per criteria established by Governmental Accounting Board Standards (GASB) statement No. 62. Other sources section shows the reimbursement of the insurance claim the City made against the County due to the 2021 cyber theft. As of the date of this analysis and update, the City has already received $375,000 from 5 different insurance carriers from the County. Another carrier is anticipated to provide an additional $500,000 reimbursement.

However, the City doesn’t have confirmation if this claim will be paid; therefore it has not been incorporated into the mid-year adjustment. Additionally, the City has 2 outstanding claims with our own insurance carrier pending further review.

General Fund Expenditures:

The table below provides a summary of overall recommended budget adjustment expenditures by department. The Budget Committee reviewed the requests for each department and provided their recommendations as shown in the chart and description below.

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Agenda Item Number:__12 __
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
$ 226,256 $ 226,795 $ 257,729 $ 290,990 $ 285,070 I $ (5,920) -2.0% 258,082 353,044 324,758 366,894 431,694 I 64,800 17.7%
153,522 153,522 142,623 146,050 238,050 II 92,000 63.0% 285,483 285,483 321,978 313,791 346,142 III 32,351 10.3% 180,045 180,045 268,756 306,073 342,073 IV 36,000 11.8% 467,783 467,783 536,505 588,574 588,574 - 0.0%
239,296 239,296 227,347 197,510 197,510 - 0.0%
4,831,685 4,831,685 5,158,415 5,112,900 5,167,900 V 55,000 1.1% 965,223 965,223 1,126,880 1,265,369 1,265,369 - 0.0%
1,336,565 1,336,565 1,358,254 1,284,027 1,335,477 VI 51,450 4.0% 193,153 193,153 266,346 279,846 302,646 VII 22,800 8.1% 568,624 568,624 525,555 487,850 584,420 VIII 96,570 19.8% 241,064 241,065 206,394 230,699 235,619 4,920 2.1%
TOTAL 9,946,781 10,042,283 10,721,540 10,870,571 11,320,542 449,971 4.1% 204,670 204,670 204,790 175,112 175,112 - 0.0%
- 819,000 b 1,200,000 a - 251,250 c 251,250 0.0%
204,670 1,023,670 1,404,790 175,112 76,138 251,250 143.5% 4,493 107,373 102,000 211,000 211,000 - 0.0%
(2,154,774) (113,152) (190,000) (121,000) (121,000) - 0.0% TOTAL (2,150,281) (5,779) (88,000) 90,000 90,000 - 0.0% 12,306,225 11,179,105 12,316,330 11,166,683 11,616,654 449,971 4.0% (965,991) (780,778) (3,099,405) (1,052,433) (328,820)
4,993,434 4,027,443 3,246,665 3,246,665 3,246,665
4,027,443 3,246,665 147,260 2,194,232 2,917,845
1,845,934 1,676,866 1,847,449 1,675,002 1,742,498

32.7% 29.0% 1.2% 19.6% 25.1%
a. $1.2M in budget expense due to April 2021 cyber theft b. This actual calculation allocates the loss across the general fund, water, and wastewater funds based on their respective share of cash balances.

Recoveries during FY 21-22 will be allocated back to the funds based on their respective percentages shared c. $375,000 year to date recovery funds through insurance reimbursement. As mentioned above in item#2, recovery is allocated back to funds based on their respective percentages shared
Actual Reserve Level

TOTAL OPERATING EXPENDITURES
Net General Fund Surplus/(Deficit)
Beginning Unassigned Fund Balance
Ending Unassigned Fund Balance

RESERVE
Policy Reserve Level (Minimum-15%)
Transfers Out
Fire
Public Works
Engineering / Storm Water
Sr. Cntr/SCCC / Ives Pool
Non Departmental

OTHER SOURCES/(USES)
Debt Service
Other Sources - Insurance Reimbursement
TOTAL

TRANSFERS IN/(OUT)
Transfers In
Police

OPERATING EXPENDITURE
City Council
City Manager
City Attorney
Assistant City Manager | City Clerk
Administrative Services (Finance)
Planning
Building
Description
I.The decrease in the City Council budget is a result of moving the RCPA membership payment from this budget to the City Manager budget. This is purely clean up between budgets. Additionally, the City Manager budget also included the $60,000 lease payment contract to St. Vincent De Paul that was approved by the City Council on December 21, 2021.

II.The City Attorney budget is proposed to increase due to pending litigation related to SAVS project.

III. The Assistant City Manager/City Clerk budget increase that was approved by the full Council on November 16, 2021 for $35,000 is for the Request for Proposal City Web Site Redesign.

IV.Administrative Service Department budget increase is due to mainly the cost of the cyber investigation (insurance retention cost portion) as a result of the loss of $1.2 million of City funds that the County Treasury made to an unknown party based on a fraudulent wire transfer request that was not initiated by the City of Sebastopol. The requests for increases are as follows:

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a. Cyber investigation/review (retention) $100,000
b. Cyber Security Risk Assessment $40,000
c. Data Breach – Credit Monitoring $4,000
The $100,000 retention must be added to the budget because it is the deductible for the City’s insurance policy. The $40,000 cyber security risk assessment is an essential expense in order to ensure the City is fully protected against future cyber security risk. The $4,000 addition is needed because of an unfortunate data breach incident to provide credit monitoring protection.

V.Police Department requested an increase of $55,000 to cover accruals from 2 employee separations and 1 retirement that were not budgeted or anticipated.

VI.Public Works Department requested the following:
a. Skate Park fencing alterations to prevent vandalism
b. Fire Department tankless water heater replacement
c. Public Works vehicle accident repairs*
i. *Reimbursement claim is made to offset deductible cost d. Public Works accruals payout for upcoming retirement VII.Engineering Department budget increase due to City Engineer retirement and a change in consultant needs.

VIII.Senior Center: The Senior Centerrequested a budget adjustment of $11,570 to addressthe kitchen return air unit replacement as the current unit failed and needed replacement in order to function properly for meal preparation.

Community Center: In addition, increased funding was requested for $85,000 for the installation of makeup air system for the kitchen remodel that SCCC did in the latter half of 2020. This is not a new project. The SCCC remodeling project has been approved in the CIP budget; however, this portion of the scope was not included in the original scope of work. The SCCC increase is needed to comply with health department requirements, imposed when the commercial kitchen was inspected.

Other departments such as Fire and Planning had requested mid-year adjustments as well. However, those items at this time are not deemed within the scope of the goals of a mid-year budget adjustment by the budget committee. The committee has reviewed their requests and recommended for postponement to be discussed at the next year budget process which will be underway later this month.

In summary: As noted above, the adjusted budget includes an increase in projected revenue of $1,173,584 which includes a one time insurance reimbursement of $251,250. In addition, projected expenses increased to $449,971. The net effect is a decrease in the projected deficit from 1,052,433 to $328,820.

This adjusted budget proposes that the newly projected deficit be covered by unrestricted fund balance.

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Agenda Item Number:__12 __
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
General Fund Revenue (income) 9,903,250 10,825,584 922,334 9.3% General Fund Transfer in 211,000 211,000 - 0.0%
General Fund One-time income (Other Sources) - 251,250 251,250 0.0% Total General Fund Revenue (with onetime) 10,114,250 11,287,834 1,173,584 11.6% General Fund Expenditures (10,870,571) (11,320,542) (449,971) 4.1% General Fund Debt Service (175,112) (175,112) - 0.0%
General Fund Transfers out (121,000) (121,000) - 0.0%
Total General Fund Expenditures (11,166,683) (11,616,654) (449,971) 4.0% Projected use of reserves (shortfall): (1,052,433) (328,820) 723,613 -68.8% ARPA Funds Allocation Discussion: We have been living in unprecedented times. The COVID-19 pandemic has had a profound impact on the health and economic wellbeing not only for the citizenry of Sebastopol but people around the world. The City overcame barriers and found creative ways to continue to provide essentialservices even during the initialshelter-in-place order and rapidly adjusted the way we do business to addressthe needs of the community. While there are always uncertainties and challenges, the amended budget communicates what we can reasonably predict what we think is the most fiscally responsible approach to continue funding operations and capital investments to best serve the Sebastopol community with the assistance of the American Rescue Plan Act (ARPA), a Federal $1.9 trillion stimulus package adopted on March 11, 2021, includes relief for local governments to assist in the public health response and lay the foundation for economic recovery.

The ARPA funds allocated to cities and counties may be used under four categories of eligible uses:

A) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and non profits, or aid to impacted industries such as tourism, travel and hospitality;
B) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
C) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
D) To make necessary investments in water, sewer, or broadband infrastructure The adjusted FY 2021-22 budget includes uses of this ARPA one-time funding to enable the City to continue to maintain current levels of service. The City’s ARPA allocation was $1,835,784. Funds can be used to backfill for revenue loss and expenses incurred due to COVID-19 and to make investments in broadband and storm drain infrastructure. Funds must be allocated by December 31, 2024 and expended by December 31, 2026. If the funds are not spent by the said deadline, the City will need to return the funds.

Sebastopol received the first disbursement of $917,892 in July 2021 and the amended budget earmarked expenditures of ARPA funds for the following:

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Item Description Amount
1 General Fund Revenue Loss Through December 2020 $ 171,000 2 COVID Expenses (year to date) $ 385,000
Labor $ 133,000
Materials & Services $ 252,000
3 Business Econonic Development - Co-Mission $ 155,000
4 Relaunch Sebastopol Consulting Service $ 86,000
5 Homeless Case Manager $ 72,000
6 Storm Drain Maintenance $ 94,000
7 Calder Creek Storm Drain & Outfall Maintenance (CIP 0701-34) $ 75,000 Total Allocated Expenses $ 1,038,000
While one-time ARPA funding has enabled the City to continue its operation, there are many more future needs that the Budget Committee and staff will continue to focus on, including operational improvements.

The Budget Committee will reconsider the funding shortfall during the FY 2022-23 budget preparation process, considering for example the pending staffing study assessment result or other studies that will target the City Council goals and priorities for FY2022-23 and beyond.

Overall, the General Fund departmental expenditures including transfers results in a net increase of $449,971 or 4.0%. The projected deficit is approximately $328,820 by 6/30/22. To that end, the following graph provides 10 years of reserve history; including the current year adopted and adjusted general fund unassigned fund balance as follows:
o Unassigned audited fund balance as of 6/30/21 was $3,247,000. o Adopted Budget with deficit of ($1,052,433) will reduce fund balance to $2,194,000. This is 19.6 % of policy reserve level.
o Adjusted budget with deficit of $328,820 will increase fund balance to $2,918,000. This is

25.1 % of policy reserve level.

The City Council Reserve Policy is to maintain an unassigned fund balance within the range of not less than 15% of annual operating expenditures for the fiscal year with a multi-year goal of achieving a 20% unassigned fund balance level.

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Water & Wastewater Fund:

There’s a slight adjustments to both Enteprise revenues as a result of the calculation of cyber insurance recovery received year to date from the County. Water expenditure also increased are due to a direct G&A cost allocations through various departments.
$712,454

12.9%
$1,517,762

26.5%
$2,133,031

32.0%
$2,907,524

40.9%
$4,095,624

55.8%
$3,557,451

44.1%
$3,882,742

43.4%
$4,993,434

56.5%
$4,269,513

40.6%
$3,246,665

26.8%
$2,194,232

19.1%
$2,917,845

25.1%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Unassigned Fund Balance History
Unassigned Reserves Balance Policy Reserve Level (15%) Policy Reserve Level (20%) Agenda Item Number 12
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DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc(Dec) % Change

OPERATING REVENUE
Charges for Services
Residential 1,777,550 $ 1,885,097 $ 1,812,800 $ 1,867,180 $ 1,867,180 $ - 0.00% Commercial 492,000 504,700 482,040 496,500 496,500 - 0.00% Other Income 23,312 138,672 37,000 37,000 226,250 189,250 511.49% Interest Earnings 47,748 15,105 14,000 14,000 14,000 - 0.00% TOTAL $ 2,340,610 $ 2,543,574 $ 2,345,840 $ 2,414,680 $ 2,603,930 $ 189,250 7.84%

OPERATING EXPENDITURES
Salaries & Benefits $ 535,807 $ 447,255 $ 396,750 $ 425,500 $ 425,500 $ - 0.00% Contracted Services 117,826 72,395 185,850 170,500 170,500 - 0.00% Services & Supplies 136,154 297,596 198,125 176,600 176,600 - 0.00% Training / Meetings / Travels 3,868 1,927 9,000 8,000 8,000 - 0.00% Telecommuniciatons 6,077 6,171 8,900 9,000 9,000 - 0.00% Utilites 193,363 216,582 254,300 268,700 268,700 - 0.00% Allocated Insurance 62,620 65,145 65,375 77,600 77,600 - 0.00% Capital Outlay 102,454 23,658 107,000 26,700 26,700 - 0.00% Debt Service 304,824 148,564 291,984 212,220 212,220 - 0.00% Other Sources (Uses) - 222,735 - - - 0.00%
TOTAL 1,462,993 1,502,028 1,517,284 1,374,820 1,374,820 - 0.00%

OTHER SOURCES/(USES)
G & A Allocation - City Council $ 27,803 $ 32,238 $ 34,253 $ 37,669 $ 36,709 $ (960) -2.55% G & A Allocation - City Manager 46,244 47,399 48,586 50,798 52,398 1,600 3.15% G & A Allocation - City Attorney 7,466 7,752 7,751 7,938 12,938 5,000 62.99% G & A Allocation - City Clerk 26,606 25,941 28,374 28,874 31,919 3,045 10.54% G & A Allocation - Finance 387,540 364,938 401,670 456,110 510,830 54,720 12.00% G & A Allocation - Planning 22,711 25,598 27,975 31,798 31,798 - 0.00% G & A Allocation - Building 41,417 35,492 39,237 33,995 33,995 - 0.00% G & A Allocation - Engineering 112,678 117,390 137,562 122,128 142,528 20,400 16.70% G & A Allocation - Fire 71,070 77,768 80,214 84,382 84,382 - 0.00% G & A Allocation - PW Corp Yard 231,432 224,615 243,780 240,852 267,252 26,400 10.96% G & A Allocation - PW Govt Bldg 30,894 38,795 42,625 39,938 39,938 - 0.00% G & A Allocation - Non Departmental 24,718 22,652 22,653 25,321 25,861 540 2.13% TOTAL 1,030,579 1,020,578 1,114,681 1,159,801 1,270,546 110,745 9.55%

TRANSFERS IN/(OUT)
Transfers In $ - $ - $ - $ - $ - 0.00%
Transfers Out - - $ (157,350) $ (330,500) $ (330,500) $ - 0.00% TOTAL $ - $ - $ (157,350) $ (330,500) $ (330,500) $ - 0.00% TOTAL OPERATING EXPENDITURES 2,493,572 2,522,606 2,789,315 2,865,121 2,975,866 $ 110,745 3.87% Net Surplus/(Deficit) (152,962) 20,968 (443,475) (450,441) (371,936) Beginning Unrestricted Net Position 2,239,409 2,239,409 2,260,377 2,260,377 2,260,377 Ending Unrestricted Net Position $ 2,086,447 $ 2,260,377 $ 1,816,902 $ 1,809,936 $ 1,888,441

RESERVE
Policy Reserve Level (25%) 623,393 630,652 697,329 716,280 743,966 Actual Reserve Level 84% 90% 65% 63% 63%

WATER FUND - COMBINED

FINANCIAL REPORTING
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Agenda Item Number:__12 __

DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc/(Dec) % Change

OPERATING REVENUE
Charges for Services $ 2,874,449 $ 2,870,250 $ 3,165,750 $ 3,260,723 $ 3,260,723 $ - 0.00% Other Income 13,011 19,217 13,000 13,000 135,500 122,500 942.31% Interest Earnings 39,376 9,446 10,000 6,000 6,000 - 0.00% TOTAL $ 2,926,836 $ 2,898,913 $ 3,188,750 $ 3,279,723 $ 3,402,223 122,500 3.74%

OPERATING EXPENSES
Salaries & Benefits $ 375,722 $ 307,020 $ 296,700 $ 398,850 $ 398,850 $ - 0.00% Contracted Services 75,139 70,061 195,700 86,700 86,700 - 0.00% Subregional Expense 1,621,200 1,650,400 1,650,400 1,650,780 1,650,780 - 0.00% Services & Supplies 63,195 66,321 132,475 109,300 109,300 - 0.00% Training / Meetings / Travels 6,910 3,717 12,000 9,500 9,500 - 0.00% Telecommuniciatons 2,576 1,930 4,000 3,500 3,500 - 0.00% Utilites 40,159 43,630 59,700 59,700 59,700 - 0.00%
Allocated Insurance 35,850 38,264 38,285 50,900 50,900 - 0.00% Capital Outlay 41,471 99,764 28,000 38,750 46,500 7,750 20.00% Debt Service 89,132 96,423 91,107 72,781 72,781 - 0.00% Other Sources (Uses) - 158,226 - - - - 0.00%
TOTAL 2,351,354 2,535,756 2,508,367 2,480,761 2,488,511 7,750 0.31%

OTHER SOURCES/(USES)
G & A Allocation - City Council $ 32,437 $ 37,614 $ 39,962 $ 43,947 $ 43,947 $ - 0.00% G & A Allocation - City Manager 46,244 47,399 48,586 50,798 52,398 1,600 3.15% G & A Allocation - City Attorney 4,478 4,652 4,651 4,763 7,763 3,000 62.99% G & A Allocation - City Clerk 23,280 22,696 24,828 25,265 27,929 2,664 10.54% G & A Allocation - Finance 388,100 364,802 391,099 444,107 497,387 53,280 12.00% G & A Allocation - Planning 13,627 15,357 16,785 19,079 19,079 - 0.00% G & A Allocation - Building 41,417 35,492 39,237 33,995 33,995 - 0.00% G & A Allocation - Engineering 92,792 96,673 113,287 100,576 117,376 16,800 16.70% G & A Allocation - PW Corp Yard 168,752 163,781 177,756 175,621 194,871 19,250 10.96% G & A Allocation - PW Govt Bldg 30,894 38,795 42,625 39,938 39,938 - 0.00% G & A Allocation - Non Departmental 24,718 22,652 22,653 25,321 25,861 540 2.13% TOTAL $ 866,739 $ 849,913 $ 921,468 $ 963,408 $ 1,060,543 $ 97,134 0.00%

TRANSFERS IN/(OUT)
Transfers In $ - $ 80,000 $ - $ - $ - 0.00%
Transfers Out (206,995) - (18,000) (507,800) (507,800) - 0.00% TOTAL $ (206,995) $ - $ 62,000 $ (507,800) $ (507,800) - 0.00% TOTAL OPERATING EXPENDITURES $ 3,425,088 $ 3,385,669 $ 3,367,836 $ 3,951,969 $ 4,056,853 Net Surplus/(Deficit) (498,252) (486,756) (179,086) (672,247) (654,631) Beginning Unrestricted Net Position 1,891,464 1,393,212 906,456 906,456 906,456 Ending Unrestricted Net Position 1,393,212 906,456 727,370 234,209 251,825

RESERVE
Policy Reserve Level (25%) $ 856,272 $ 846,417 $ 841,959 $ 987,992 $ 1,014,213 Actual Reserve Level 41% 27% 22% 6% 6%

WASTEWATER FUND - COMBINED

FINANCIAL REPORTING

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Agenda Item Number:__12 __
PUBLIC COMMENT:

As of the writing of this staff report, the City has not received any public comment. However, staff anticipates receiving public comment from interested parties following the publication and distribution of this staff report. Such comments will be provided to the City Council as supplemental materials before or at the meeting. In addition, public comments may be offered during the public comment portion of this item.

PUBLIC NOTICE:

This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to schedule meeting date.

FISCAL IMPACT:

General Fund deficit amount $328,820
Water Fund deficit amount $371,936
Sewer Fund deficit amount $654,631
RECOMMENDATION:

Adoption of Resolution Approving the Mid-Year Budget adjustments to the City of Sebastopol Budget for FY 2021-22. Approval of the allocation of ARPA funds received to date, to the categories identified in this Staff Report.

Attachments:

Resolution
Budget Amendment Pages
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 11 of 25 ends

RESOLUTION NO. _______

A RESOLUTION OF THE SEBASTOPOL CITY COUNCIL APPROVING ADJUSTMENTS TO THE BUDGET OF FISCAL YEAR 2021-22
WHEREAS, the City of Sebastopol City Council did, on July 20, 2021, adopt the budget for fiscal year 2021-22; and
WHEREAS, the City of Sebastopol has experienced various adjustments to changing conditions continues due to COVID-19 since the budget was adopted and needs to amend the budget to reflect these adjustments.

WHEREAS, the adjusted FY 2021-22 budget includes uses of this ARPA one-time funding to enable the City to continue to maintain current levels of service. Funds can be used to backfill for revenue loss and expenses incurred due to COVID-19 and to make investments in broadband and storm drain infrastructure.

Funds must be allocated by December 31, 2024 and expended by December 31, 2026. If the funds are not spent by the said deadline, the City will need to return the funds.

WHEREAS, Sebastopol received the first disbursement of $917,892 in July 2021 and the amended budget earmarked expenditures of ARPA funds for the following:

Item Description Amount
1 General Fund Revenue Loss Through December 2020 $ 171,000 2 COVID Expenses (year to date) $ 385,000
Labor $ 133,000
Materials & Services $ 252,000
3 Business Econonic Development - Co-Mission $ 155,000
4 Relaunch Sebastopol Consulting Service $ 86,000
5 Homeless Case Manager $ 72,000
6 Storm Drain Maintenance $ 94,000
7 Calder Creek Storm Drain & Outfall Maintenance (CIP 0701-34) $ 75,000 Total Allocated Expenses $ 1,038,000
THEREFORE, BE IT RESOLVED, that the City Council of the City of Sebastopol adopts the following changes to the operating budgets for 2021-22:

Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 12 of 25 ends

2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
$ 2,781,985 $ 2,770,952 $ 2,733,000 $ 2,780,700 $ 3,070,534 $ 289,834 10.4% 38,066 79,547 39,000 41,000 50,000 9,000 22.0%
3,697,725 4,362,811 3,765,000 3,977,500 4,547,000 569,500 14.3% 763,643 795,113 744,600 742,600 755,700 13,100 1.8%
518,175 402,255 400,000 400,000 400,000 - 0.0%
336,738 363,167 335,500 335,500 355,000 19,500 5.8%
449,875 498,475 292,900 292,900 347,900 55,000 18.8%
48,171 30,439 46,500 35,000 30,000 (5,000) -14.3%
1,729,540 503,343 166,700 938,950 1,018,350 79,400 8.5% 237,347 8,173 200,500 170,500 68,500 (102,000) -59.8%
179,196 176,848 128,600 128,600 122,600 (6,000) -4.7%
555,280 299,831 262,625 60,000 60,000 - 0.0%
TOTAL 11,335,741 10,290,954 9,114,925 9,903,250 10,825,584 922,334 9.3% $ 226,256 $ 226,795 $ 257,729 $ 290,990 $ 285,070 $ (5,920) -2.0% 258,082 353,044 324,758 366,894 431,694 64,800 17.7%
153,522 153,522 142,623 146,050 238,050 92,000 63.0%
285,483 285,483 321,978 313,791 346,142 32,351 10.3%
180,045 180,045 268,756 306,073 342,073 36,000 11.8%
467,783 467,783 536,505 588,574 588,574 - 0.0%
239,296 239,296 227,347 197,510 197,510 - 0.0%
4,831,685 4,831,685 5,158,415 5,112,900 5,167,900 55,000 1.1% 965,223 965,223 1,126,880 1,265,369 1,265,369 - 0.0%
1,336,565 1,336,565 1,358,254 1,284,027 1,335,477 51,450 4.0% 193,153 193,153 266,346 279,846 302,646 22,800 8.1%
568,624 568,624 525,555 487,850 584,420 96,570 19.8%
241,064 241,065 206,394 230,699 235,619 4,920 2.1%
TOTAL 9,946,781 10,042,283 10,721,540 10,870,571 11,320,542 449,971 4.1% 204,670 204,670 204,790 175,112 175,112 - 0.0%
- 819,000 b 1,200,000 a - 251,250 251,250 0.0%
204,670 1,023,670 1,404,790 175,112 76,138 251,250 143.5% 4,493 107,373 102,000 211,000 211,000 - 0.0%
(2,154,774) (113,152) (190,000) (121,000) (121,000) - 0.0% TOTAL (2,150,281) (5,779) (88,000) 90,000 90,000 - 0.0% 12,306,225 11,179,105 12,316,330 11,166,683 11,616,654 449,971 4.0% (965,991) (780,778) (3,099,405) (1,052,433) (328,820)
4,993,434 4,027,443 3,246,665 3,246,665 3,246,665
4,027,443 3,246,665 147,260 2,194,232 2,917,845
1,845,934 1,676,866 1,847,449 1,675,002 1,742,498

TOTAL OPERATING EXPENDITURES
Net General Fund Surplus/(Deficit)
Beginning Unassigned Fund Balance
Ending Unassigned Fund Balance

RESERVE
Policy Reserve Level (Minimum-15%)
Transfers Out
Fire
Public Works
Engineering / Storm Water
Sr. Cntr/SCCC / Ives Pool
Non Departmental

OTHER SOURCES/(USES)
Debt Service
Other Sources - Insurance Reimbursement
TOTAL

TRANSFERS IN/(OUT)
Transfers In
Police
Interest and Rents
Charges for Current Services
Miscellaneous/Other Income

OPERATING EXPENDITURE
City Council
City Manager
City Attorney
Assistant City Manager | City Clerk
Administrative Services (Finance)
Planning
Building
Intergovernmental

CONSOLIDATED GENERAL FUND

FINANCIAL SCHEDULE
Description

OPERATING REVENUE
Property Taxes
Real Property Transfer
Sales Tax
Use Tax
Transient Occupancy Tax
Franchise Fees
Licenses and Permits
Fines & Forfeitures
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 13 of 25 ends

DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc(Dec) % Change

RESERVE
Policy Reserve Level (25%) 623,393 630,652 697,329 716,280 743,966 Actual Reserve Level 84% 90% 65% 63% 63%

WATER FUND - COMBINED

FINANCIAL REPORTING
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 14 of 25 ends

DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc/(Dec) % Change

RESERVE
Policy Reserve Level (25%) $ 856,272 $ 846,417 $ 841,959 $ 987,992 $ 1,014,213 Actual Reserve Level 41% 27% 22% 6% 6%

WASTEWATER FUND - COMBINED

FINANCIAL REPORTING
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 15 of 25 ends

IN COUNCIL DULY PASSED this 1st day of February 2022.

I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City of Sebastopol City Council by the following vote:

APPROVED:_____________________________________________
Patrick Slayter
Mayor, City of Sebastopol
VOTE:

AYES:

NOES:

ABSENT:

ABTAIN:

ATTEST:_____________________________________________
Mary Gourley, MMC, Assistant City Manager/City Clerk
APPROVED AS TO FORM: _______________________________________ Larry McLaughlin, City Manager/Attorney
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 16 of 25 ends

2021-22 Adjusted General Fund Revenue
Budget at a Glance
Where does the City's Money Come From?
Revenue Summary
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$ Increase
(Decrease) % Change
Property Tax $ 2,820,051 $ 2,850,499 $ 2,772,000 2,821,700 3,120,534 $ 298,834 10.6% Sales Tax $ 3,697,725 $ 4,362,811 $ 3,765,000 3,977,500 4,547,000 $ 569,500 14.3% Use Tax $ 763,643 $ 795,113 $ 744,600 742,600 755,700 $ 13,100 1.8% Transient Occupancy Tax $ 518,175 $ 402,255 $ 400,000 400,000 400,000 $ - 0.0% Franchise Fee $ 336,738 $ 363,167 $ 335,500 335,500 355,000 $ 19,500 5.8% Licenses & Permits $ 449,875 $ 498,475 $ 292,900 292,900 347,900 $ 55,000 18.8% Fines & Forfeitures $ 48,171 $ 30,439 $ 46,500 35,000 30,000 $ (5,000) -14.3% Interest and Rents $ 237,347 $ 8,173 $ 200,500 170,500 68,500 $ (102,000) -59.8% Intergovernmental $ 1,729,540 $ 503,343 $ 166,700 938,950 1,018,350 $ 79,400 8.5% Charges for Current Services $ 179,196 $ 176,848 $ 128,600 128,600 122,600 $ (6,000) -4.7% Other Revenue $ 555,280 $ 299,831 $ 262,625 60,000 60,000 $ - 0.0% Other Sources - Ins Reimb $ - $ - $ - - 251,250 $ 251,250 0.0% Transfer In $ 4,493 $ 107,373 $ 102,000 211,000 211,000 $ - 0.0% TOTAL REVENUES $ 11,340,234 $ 10,398,327 $ 9,216,925 10,114,250 11,287,834 $ 1,173,584 11.6% Property Tax
$3,120,534
28%
Sales Tax
$4,547,000
41%
Use Tax
$755,700
7%
Transient Occupancy Tax
$400,000
4%
Franchise Fee
$355,000
3%
Licenses & Permits
$347,900
3%
Fines & Forfeitures
$30,000
0% Interest and Rents
$68,500
1%
Intergovernmental
$1,018,350
9%
Charges for Current Services
$122,600
1%
Other Revenue
$60,000
1%
$-
0%
Transfer In
$211,000
2%
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 17 of 25 ends

Expenditures by Department
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$ Increase
(Decrease) % Change
City Council $ 226,256 $ 226,795 $ 257,729 $ 290,990 $ 285,070 $ (5,920) -2.0% City Manager/Attorney $ 411,604 $ 506,566 $ 467,381 $ 512,944 $ 669,744 $ 156,800 30.6% ACM/City Clerk $ 285,483 $ 285,483 $ 321,978 $ 313,791 $ 346,142 $ 32,351 10.3% Administrative Services $ 180,045 $ 180,045 $ 268,756 $ 306,073 $ 342,073 $ 36,000 11.8% Planning $ 467,783 $ 467,783 $ 536,505 $ 588,574 $ 588,574 $ - 0.0% Building $ 239,296 $ 239,296 $ 227,347 $ 197,510 $ 197,510 $ - 0.0% Police $ 4,831,685 $ 4,831,685 $ 5,158,415 $ 5,112,900 $ 5,167,900 $ 55,000 1.1% Fire $ 965,223 $ 965,223 $ 1,126,880 $ 1,265,369 $ 1,265,369 $ - 0.0% Public Works $ 1,336,565 $ 1,336,565 $ 1,358,254 $ 1,284,027 $ 1,335,477 $ 51,450 4.0% Engineering / Storm Water $ 193,153 $ 193,153 $ 266,346 $ 279,846 $ 302,646 $ 22,800 8.1% Sr. Ctr/SCCC/Ives Pool $ 568,624 $ 568,624 $ 525,555 $ 487,850 $ 584,420 $ 96,570 19.8% Other General Government $ 241,064 $ 241,065 $ 206,394 $ 230,699 $ 235,619 $ 4,920 2.1% Debt Service $ 204,670 $ 204,670 $ 204,790 $ 175,112 $ 175,112 $ - 0.0% Transfer Out $ 2,154,774 $ 113,152 $ 190,000 $ 121,000 $ 121,000 $ - 0.0% TOTAL EXPENDITURES $ 12,306,225 $ 10,360,105 $ 11,116,330 $ 11,166,683 $ 11,616,654 $ 449,971 4.0% Chargeback Services *
Insurance $ 995,150 $ 1,081,028 $ 1,076,450 $ 1,039,100 $ 1,039,100 $ - 0.0% * Allocated across departments
2021-22 Adjusted General Fund Expenditures
Budget at a Glance
How does the City Spend the Money It Receives?
City Council
$285,070
2%
City Manager/Attorney
$669,744
6%
ACM/City Clerk
$346,142
3%
Administrative Services
$342,073
3%
Planning
$588,574
5%
Building
$197,510
2%
Police
$5,167,900
45%
Fire
$1,265,369
11%
Public Works
$1,335,477
12%
Engineering / Storm Water
$302,646
3%
Sr. Ctr/SCCC/Ives Pool
$584,420
5%
Other General Government
$235,619
2%
Debt Service
$175,112
1%
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 18 of 25 ends

2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
$ 2,781,985 $ 2,770,952 $ 2,733,000 $ 2,780,700 $ 3,070,534 1 $ 289,834 10.4% 38,066 79,547 39,000 41,000 50,000 9,000 22.0%
3,697,725 4,362,811 3,765,000 3,977,500 4,547,000 2 569,500 14.3% 763,643 795,113 744,600 742,600 755,700 13,100 1.8%
518,175 402,255 400,000 400,000 400,000 - 0.0%
336,738 363,167 335,500 335,500 355,000 19,500 5.8%
449,875 498,475 292,900 292,900 347,900 3 55,000 18.8%
48,171 30,439 46,500 35,000 30,000 (5,000) -14.3%
1,729,540 503,343 166,700 938,950 1,018,350 4 79,400 8.5% 237,347 8,173 200,500 170,500 68,500 5 (102,000) -59.8% 179,196 176,848 128,600 128,600 122,600 (6,000) -4.7%
555,280 299,831 262,625 60,000 60,000 - 0.0%
TOTAL 11,335,741 10,290,954 9,114,925 9,903,250 10,825,584 922,334 9.3% $ 226,256 $ 226,795 $ 257,729 $ 290,990 $ 285,070 I $ (5,920) -2.0% 258,082 353,044 324,758 366,894 431,694 I 64,800 17.7%
153,522 153,522 142,623 146,050 238,050 II 92,000 63.0% 285,483 285,483 321,978 313,791 346,142 III 32,351 10.3% 180,045 180,045 268,756 306,073 342,073 IV 36,000 11.8% 467,783 467,783 536,505 588,574 588,574 - 0.0%
239,296 239,296 227,347 197,510 197,510 - 0.0%
4,831,685 4,831,685 5,158,415 5,112,900 5,167,900 V 55,000 1.1% 965,223 965,223 1,126,880 1,265,369 1,265,369 - 0.0%
1,336,565 1,336,565 1,358,254 1,284,027 1,335,477 VI 51,450 4.0% 193,153 193,153 266,346 279,846 302,646 VII 22,800 8.1% 568,624 568,624 525,555 487,850 584,420 VIII 96,570 19.8% 241,064 241,065 206,394 230,699 235,619 4,920 2.1%
TOTAL 9,946,781 10,042,283 10,721,540 10,870,571 11,320,542 449,971 4.1% 204,670 204,670 204,790 175,112 175,112 - 0.0%
- 819,000 b 1,200,000 a - 251,250 c 251,250 0.0%
204,670 1,023,670 1,404,790 175,112 76,138 251,250 143.5% 4,493 107,373 102,000 211,000 211,000 - 0.0%
(2,154,774) (113,152) (190,000) (121,000) (121,000) - 0.0% TOTAL (2,150,281) (5,779) (88,000) 90,000 90,000 - 0.0% 12,306,225 11,179,105 12,316,330 11,166,683 11,616,654 449,971 4.0% (965,991) (780,778) (3,099,405) (1,052,433) (328,820)
4,993,434 4,027,443 3,246,665 3,246,665 3,246,665
4,027,443 3,246,665 147,260 2,194,232 2,917,845
1,845,934 1,676,866 1,847,449 1,675,002 1,742,498

TOTAL OPERATING EXPENDITURES
Net General Fund Surplus/(Deficit)
Beginning Unassigned Fund Balance
Ending Unassigned Fund Balance

RESERVE
Policy Reserve Level (Minimum-15%)
Transfers Out
Fire
Public Works
Engineering / Storm Water
Sr. Cntr/SCCC / Ives Pool
Non Departmental

OTHER SOURCES/(USES)
Debt Service
Other Sources - Insurance Reimbursement
TOTAL

TRANSFERS IN/(OUT)
Transfers In
Police
Interest and Rents
Charges for Current Services
Miscellaneous/Other Income

OPERATING EXPENDITURE
City Council
City Manager
City Attorney
Assistant City Manager | City Clerk
Administrative Services (Finance)
Planning
Building
Intergovernmental

CONSOLIDATED GENERAL FUND

FINANCIAL SCHEDULE
Description

Page 19 of 25 ends

Revenue Categories
Account
No.
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change
Taxes
Property Taxes 100-3000 1,506,239 1,548,230 1,550,000 1,581,000 2,183,934 602,934 38.1% Property Taxes (RPTTF) 100-3001 467,287 384,411 345,000 345,000 21,000 (324,000) -93.9% Transfer Tax 100-3002 38,066 79,547 39,000 41,000 50,000 9,000 22.0% Property Tax In-Lieu of VLF 100-3004 808,459 838,311 838,000 854,700 865,600 10,900 1.3% Sales Tax - Bradley Burn 100-3010 1,819,956 2,134,401 1,860,000 1,977,500 2,187,000 209,500 10.6% Sales Tax - 1/4 cent 124-3011 622,348 740,161 635,000 663,000 787,000 124,000 18.7% Sales Tax - 1/2 cent 124-3012 1,255,421 1,488,249 1,270,000 1,337,000 1,573,000 236,000 17.7% Sales Tax - Prop 172 pass thru 100-3014 87,755 91,860 89,400 99,600 100,500 900 0.9% Utility Users Tax 100-3015 666,765 695,399 650,000 637,800 650,000 12,200 1.9% Utility Users Tax - AB1717 (Wireless) 100-3016 2,882 2,173 1,700 1,700 1,700 - 0.0% Vehicle In-Lieu Tax 100-3017 6,241 5,681 3,500 3,500 3,500 - 0.0% Transient Occupancy Tax 100-3020 518,175 402,255 400,000 400,000 400,000 - 0.0% Garbage Franchise 100-3050 177,953 207,633 177,000 177,000 200,000 23,000 13.0% PG&E Franchise 100-3051 82,256 84,700 82,000 82,000 84,000 2,000 2.4% Cable/Video TV Franchise 100-3052 76,529 70,834 76,500 76,500 71,000 (5,500) -7.2% Total Taxes 8,136,332 8,773,845 8,017,100 8,277,300 9,178,234 900,934 10.9% Licenses and Permits
Business Licenses 100-3101 151,321 136,949 130,000 130,000 135,000 5,000 3.8% Building Permits 100-3103 283,714 347,681 150,000 150,000 200,000 50,000 33.3% Dog License Fees 100-3104 1,440 2,045 1,500 1,500 1,500 - 0.0% RBS Training Fees 100-3107 13,400 11,800 11,400 11,400 11,400 - 0.0% Total Licenses & Permits 449,875 498,475 292,900 292,900 347,900 55,000 18.8% Fines, Forfeits & Penalties
Vehicle / Criminal Code Fines 100-3105 28,822 16,415 27,000 20,000 15,000 (5,000) -25.0% Parking Violations 100-3106 19,349 14,024 19,500 15,000 15,000 - 0.0% Total Fines, Forfeits & Penalties 48,171 30,439 46,500 35,000 30,000 (5,000) -14.3% Intergovernmental & Grants
State Mandated Cost Reimb. 100-3202 10,996 3,793 3,700 3,700 3,700 - 0.0% P.O.S.T Reimbursements 100-3203 2,238 1,830 2,400 2,400 1,800 (600) -25.0% Casino Mitigation Reimbursements 100-3204 13,189 17,781 15,000 15,000 15,000 - 0.0% County Grant 100-3206 - 370,000 - - 80,000 80,000 0.0%
State Grant 100-3207 1,595,176 109,939 95,600 - - - 0.0% Federal Grant 100-3209 107,941 - 50,000 917,850 917,850 - 0.0% Total Intergovernmental & Grants 1,729,540 503,343 166,700 938,950 1,018,350 79,400 8.5% Interest & Rents
Interest Income 100-3300 144,253 (40,245) 130,000 110,000 20,000 (90,000) -81.8% Interest Income 124-3300 46,080 3,015 25,000 15,000 3,000 (12,000) -80.0% Cell Tower Lease Rental 100-3301 40,298 39,962 40,000 40,000 40,000 - 0.0% City Property Rental - Little League 100-3302 2,611 1,901 2,000 2,000 2,000 - 0.0% City Property Rental - Parking Space 100-3304 1,105 540 500 500 500 - 0.0% City Property Rental - Palm Ave 100-3305 3,000 3,000 3,000 3,000 3,000 - 0.0% Total Interest & Rents 237,347 8,173 200,500 170,500 68,500 (102,000) -59.8% Charges for Current Services
Park and Plaza Rental Fees 100-3401 16,175 3,275 3,300 3,300 3,300 - 0.0% Finance Staff Time 100-3405 5,674 7,633 - - 7,000 7,000 0.0% Pet Shelter Release Fees 100-3406 3,365 2,215 3,500 3,500 2,000 (1,500) -42.9% Building Inspector Fees 100-3421 784 642 - - - - 0.0%
Fire Department Fees 100-3425 52,842 69,256 30,000 30,000 30,000 - 0.0% Planning Fees 100-3426 27,720 25,563 30,000 30,000 25,000 (5,000) -16.7% Sale of Plans & Specifications 100-3427 615 990 300 300 300 - 0.0% Encroachment Permits 100-3441 32,135 47,835 30,000 30,000 40,000 10,000 33.3% Grading Permits 100-3442 2,700 650 1,000 1,000 500 (500) -50.0%

GENERAL FUND REVENUES DETAILED
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 20 of 25 ends

Revenue Categories
Account
No.
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
%
Change

GENERAL FUND REVENUES DETAILED
Public Works Services 100-3445 2,774 654 1,500 1,500 500 (1,000) -66.7% Police Services 100-3502 25,390 13,835 25,500 25,500 10,000 (15,500) -60.8% Police D.U.I. Recovery 100-3503 450 - - - - - 0.0%
Vehicle Releases 100-3504 4,515 4,300 3,500 3,500 4,000 500 14.3% Police Overtime Reimbursement 100-3507 4,057 - - - - - 0.0% Total Charges for Current Services 179,196 176,848 128,600 128,600 122,600 (6,000) -4.7% Miscellaneous/Other Income
Planning Publication Sales 100-3800 7 - - - - - 0.0%
Sale of Surplus Property 100-3801 10,869 - - - - - 0.0% Sale of Publications 100-3803 - - - - - - 0.0%
Insurance Reimbursement 100-3804 224,835 13,050 - - 251,250 251,250 0.0% Miscellaneous Income 100-3805 20,247 18,406 500 500 500 - 0.0% Ives Pool Reimbursement 100-3810 49,022 57,901 52,000 59,500 59,500 - 0.0% Successor Agency Administration 100-3999 250,300 210,474 210,125 - - - 0.0% Total Miscellaneous/Other Income 555,280 299,831 262,625 60,000 311,250 251,250 418.8% Subtotal General Fund Revenue 11,335,741 10,290,954 9,114,925 9,903,250 11,076,834 1,173,584 11.9% Transfer In 3999 4,493 107,373 102,000 211,000 211,000 - 0.0% Total General Fund Revenue 11,340,234 10,398,327 9,216,925 10,114,250 11,287,834 1,173,584 11.6% Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 21 of 25 ends

Description
2019-20
Actual
2020-21
Actual
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget
$
Inc/(Dec)
OTHER SOURCES (USES):

Transfer in
From Police Grant 107,373 100,000 127,000 127,000 -
From Vehicle Abatement - - 4,000 4,000 -
From General Plan Update - - - - -
From Building Permit Incremental Fund - 2,000 - - -
From Vehicle Buiding Reserve 80,000 80,000 -
From Capital Project - - - - -
From Committed Reserve - - - - -
Subtotal Transfer in - 107,373 102,000 211,000 211,000 - Transfer out
To Woodstone Assessment District Fund - - - - -
To SLESF - - - - - -
To Retirement Fund (1,000,000) - - (28,000) (28,000) -
To Bldg | Facilities | Infras Fund (466,000) (23,705) (110,000) - - - To Vehicle Replacement Fund - - - - - -
To Capital Project Fund (688,774) (89,447) - (93,000) (93,000) - To Police Grant Fund - - - - - -
To Sewer Fund - - (80,000) - - -
To Gas Tax - - - - - -
To Street Pavement Reserves - - - - - -
Subtotal Transfer out (2,154,774) (113,152) (190,000) (121,000) (121,000) - TOTAL TRANSFERS (2,154,774) (5,779) (88,000) 90,000 90,000 -

GENERAL FUND - TRANSFERS
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 22 of 25 ends

(1) (2) (3) (4) (5)
2020-21
Actual
2021-22
Adopted Budget
2020-21
Adjusted
Budget
Buildings,
Facilites &
Infrastructure
Reserve
103-00-00-2900
Equipment,
Technology &
Vehicle
Replacement
Reserve
104-00-00-2900
CalPERS
Retirement &
OPEB Reserves
105-00-00-2900
Column
3+4+5
Grand Total
3,246,665 3,246,665 3,246,665 1,009,788 1,221,288 2,818,458 5,049,534 (1,052,433) (1,500) 205,000 28,000
(328,820) 146,475
(80,000)
3,246,665 2,194,232 2,917,845 1,008,288 1,492,763 2,846,458 5,049,534 Actual Reserve Level in relation to expenditures 26.4% 19.6% 25.1% 8.7% 12.9% 24.5% 43.5% FY21-22 Adopted Budget Addition/(Uses)
FY21-22 Adjusted Budget Addition/(Uses)
FY21-22 Adopted Budget Addition/(Uses)
Total Anticipated Reserve @ 6/30/22

GENERAL FUND RESERVES CATEGORIES
City Assigned Reserves @ 6/30/20 (Audited)
Beginning Balance @ 7/1/21
City Unassigned Reserves @ 6/30/20 (Audited)
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 23 of 25 ends

DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc(Dec) % Change

RESERVE
Policy Reserve Level (25%) 623,393 630,652 697,329 716,280 743,966 Actual Reserve Level 84% 90% 65% 63% 63%

WATER FUND - COMBINED

FINANCIAL REPORTING
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 24 of 25 ends

DESCRIPTION
2019-20
Actuals
2020-21
Actuals
2020-21
Adjusted
Budget
2021-22
Adopted
Budget
2021-22
Adjusted
Budget $ Inc/(Dec) % Change

RESERVE
Policy Reserve Level (25%) $ 856,272 $ 846,417 $ 841,959 $ 987,992 $ 1,014,213 Actual Reserve Level 41% 27% 22% 6% 6%

WASTEWATER FUND - COMBINED

FINANCIAL REPORTING
Agenda Item Number 12
City Council Meeting Packet of February 1, 2022

Page 25 of 25 ends

Sebastopol City CouncilFebruary 1, 2022

Sebastopol City Council
February 1, 2022