Shafter City Council
June 4, 2024

216 SHAFTER OPERATING BUDGET 2024/25

COMPENSATION PHILOSOPHY

2024/25 SHAFTER OPERATING BUDGET 217

218 SHAFTER OPERATING BUDGET 2024/25

2024/25 SHAFTER OPERATING BUDGET 219
RESOLUTION NO. 2966

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER,

CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR 2024-2025 AND

APPROPRIATING THE FUNDS NECESSARY TO MEET THE EXPENDITURES SET

FORTH THEREIN
WHEREAS, in accordance with Section 7.06(A) and (F) of the Charter of the City of Shafter, the City Manager has submitted to the City Council an Annual Budget and Capital Improvement Plan for Fiscal Year 2024/2025 having proposed expenditures and transfers for all City funds on or before the first working day of the last month of the current fiscal year; and WHEREAS, pursuant to section 7.06(F) of the Charter of the City of Shafter, the City Council shall set a dollar amount or percentage of funds limit under which the City Manager may transfer monies between departments, divisions, programs, and accounts within funds and departments; and
WHEREAS, the City Council of the City of Shafter has heretofore considered said budget; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SHAFTER

CALIFORNIA DOES HEREBY
Section 1: Find, Determine and Declare that the Budget for Fiscal Year 2024/2025 in substantially the same form as attached hereto is approved, adopted, and said funding is appropriated.

Section 2: The City Manager, or his or her designee, is authorized to transfer appropriations between departments, divisions, programs and accounts within funds and departments in any amount so long as there is no net increase in appropriations within any individual fund or the City as a whole.

PASSED, APPROVED AND ADOPTED this 18th day of June, 2024.

Chad Givens, Mayor
ATTEST:

Yazmina Pallares, City Clerk

BUDGET ADOPTION RESOLUTION

220 SHAFTER OPERATING BUDGET 2024/25

APPROPRIATIONS LIMITS RESOLUTION
RESOLUTION NO. 2967

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER,

CALIFORNIA, SETTING FORTH AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024/2025 CONSISTENT WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION AND SELECTING THE ANNUAL ADJUSTMENT FACTORS.

WHEREAS, Section 7910 of the Government Code, which became effective on January 1, 1981, requires that the governing body of each local jurisdiction establish by Resolution its Appropriations Limit for the following fiscal year pursuant to Article XIII B of the California State Constitution at a regularly scheduled or noticed special meeting; and WHEREAS, in accordance with Government Code Section 7910, the City Council must select annually the inflationary change factor for purposes of calculating the appropriations limit; and
WHEREAS, in accordance with Government Code Section 7910, the City Council must select annually the population growth factor for purposes of calculating the appropriations limit; and
WHEREAS, an appropriations limit has been calculated in accordance with applicable law; and
WHEREAS, in accordance with Government Code Section 7910, the information on the calculation of the appropriations limit has been made available to the public at least 15 days prior to the date of adoption of this resolution, and continues to be available for public inspection.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
Section 1. That the City Council of the City of Shafter establishes its Appropriations Limit for the 2024/25 fiscal year at $458,550,796.

Section 2. That the City Council of the City of Shafter has selected the “percentage change in California per capita personal income” as the inflationary change factor and the “percentage change in City population” as the population growth factor used in the calculation of the 2024/25 Appropriations Limit.

PASSED, APPROVED AND ADOPTED this 18th day of June 2024. __________________________
Chad Givens, Mayor
ATTEST:
__________________________
Yazmina Pallares, City Clerk

2024/25 SHAFTER OPERATING BUDGET 221
CERTIFICATE OF GOVERNING BODY’S ACTION

STATE OF CALIFORNIA )
) ss.

COUNTY OF KERN )
I, Yazmina Pallares, City Clerk of the City of Shafter, California, DO HEREBY CERTIFY that the above Resolution 2967, a Resolution of the City Council of the City of Shafter, was duly passed and adopted at a Regular Meeting held on the 18th day of June 2024, by the following vote:

AYES: Alvarado, Espinoza, Givens, Olvera, and Prout.

NOES: None.

ABSENT: None.

ABSTAINING: None.

DATED: June 18, 2024
(SEAL) __________________________________________
City Clerk of the City of Shafter

222 SHAFTER OPERATING BUDGET 2024/25

FULL-TIME POSITIONS
Position FY 21/22 FY 22/23
FY
23/24
FY
24/25
YoY
Change
Animal Control Manager 1.00 1.00 1.00 1.00 -
Animal Control Officer 1.00 1.00 1.00 1.00 -
Animal Control Services Worker 2.00 2.00 2.00 2.00 -
Animal Control Total 4.00 4.00 4.00 4.00 -
Building Official 1.00 1.00 1.00 1.00 -
Building Inspector Supervisor 1.00 1.00 1.00 1.00 -
Building Inspector II 1.00 1.00 1.00 1.00 -
Building Inspector I 2.00 2.00 2.00 2.00 -
Permit Technician - - 1.00 1.00 -
Administrative Assistant I 1.00 1.00 1.00 1.00 -
Clerk Typist 1.00 1.00 - - -
Code Enforcement II 1.00 1.00 1.00 1.00 -
Facilities Construction Specialist II 1.00 1.00 - - -
Building Total 9.00 9.00 8.00 8.00 -
City Manager 1.00 1.00 1.00 1.00 -
Deputy City Manager - - - 1.00 1.00
Community Engagement Manager 1.00 1.00 1.00 1.00 -
City Clerk 1.00 1.00 1.00 1.00 -
Administrative Analyst I/II - - 1.00 - (1.00)
Office Technician 1.00 1.00 - - -
Administrative Assistant I 1.00 1.00 -
MCCF Corrections Chief 1.00 - - - -
City Manager Total 5.00 4.00 5.00 5.00 -
Education Partnership Director 1.00 1.00 1.00 - (1.00)
Library & Learning Center Manager 1.00 1.00 1.00 - (1.00) Community Services Director - - - 1.00 1.00
Community Services Manager - - - 1.00 1.00
Community Services Total 2.00 2.00 2.00 2.00 -
Business Development Director 1.00 1.00 - - -
Economic Development Director - - 1.00 1.00 -
Economic Development Coordinator - - - 1.00 1.00
Business Development Coordinator - - 1.00 - (1.00)
Administrative Analyst II - ED - - - 1.00 1.00
Economic Development Total 1.00 1.00 2.00 3.00 1.00
Administrative Services Director 1.00 1.00 - - -
Finance Director - - 1.00 1.00 -
Accounting Manager 1.00 1.00 1.00 1.00 -
Budet Analyst I - - 1.00 1.00 -
Accounting Technician III - - 1.00 1.00 -
Accounting Technician II - - 1.00 2.00 1.00
Accounting Technician I - - 2.00 1.00 (1.00)
Citywide Authorized FT Positions

2024/25 SHAFTER OPERATING BUDGET 223
Position FY 21/22 FY 22/23
FY
23/24
FY
24/25
YoY
Change
Payroll Technician 1.00 1.00 - - -
Account Clerk II 1.00 1.00 - - -
Account Clerk I 2.00 2.00 - - -
Finance Clerk 1.00 1.00 - - -
Finance Total 7.00 7.00 7.00 7.00 -
HR Manager 1.00 1.00 1.00 1.00 -
HR Analyst II 1.00 1.00 1.00 1.00 -
Admin Assistant I (PY Office Tech) 1.00 1.00 - - -
HR Analyst I - - 1.00 1.00 -
Human Resources Total 3.00 3.00 3.00 3.00 -
IT Manager - Systems (PY IT Specialist II) 1.00 1.00 - - - IT Manager - Network 1.00 1.00 - - -
IT Manager - - 1.00 1.00 -
IT Manager, Assistant - - 1.00 1.00 -
IT Analyst - - 1.00 1.00 -
Information Technology Specialist II - - - 1.00 1.00
Information Technology Specialist I 1.00 1.00 2.00 1.00 (1.00) GIS Specialist I - - 1.00 1.00 -
Information Technology Total 3.00 3.00 6.00 6.00 -
Planning Director 1.00 1.00 1.00 1.00 -
Senior Planner 1.00 1.00 1.00 1.00 -
Associate Planner - - 1.00 1.00 -
Planning Total 2.00 2.00 3.00 3.00 -
Police Chief 1.00 1.00 1.00 1.00 -
Assistant Police Chief 1.00 1.00 - 1.00 1.00
Police Captain 1.00 - 1.00 1.00 -
Police Lieutenant 1.00 2.00 2.00 2.00 -
Administrative Assistant II 1.00 1.00 1.00 1.00 -
Police Sergeant 5.00 5.00 5.00 6.00 1.00
Police Senior Officer 6.00 6.00 7.00 7.00 -
Police Officer 18.00 19.00 19.00 25.00 6.00
Police Service Technician 1.00 1.00 - - -
Police Property & Evidence Technician - - 1.00 1.00 -
Police Records Supervisor 1.00 1.00 1.00 1.00 -
Police Records Technician - - 1.00 1.00 -
Police Dispatch Supervisor - - 1.00 1.00 -
Police Dispatcher 6.00 6.00 6.00 7.00 1.00
Police Total 42.00 43.00 46.00 55.00 9.00
Public Works Director 1.00 1.00 1.00 1.00 -
Public Works Director, Assistant - - 1.00 1.00 -
Public Works Director, Deputy (O &M) - - 1.00 1.00 -
Public Works Director, Deputy (CP) - - 1.00 1.00 -

224 SHAFTER OPERATING BUDGET 2024/25
Position FY 21/22 FY 22/23
FY
23/24
FY
24/25
YoY
Change
Public Works Manager 1.00 1.00 - - -
City Engineer 1.00 1.00 1.00 1.00 -
Engineer I 1.00 1.00 1.00 2.00 1.00
Engineer II - - 1.00 - (1.00)
Associate Engineer 1.00 1.00 - - -
PW Inspector 1.00 1.00 1.00 1.00 -
GIS Coordinator 1.00 1.00 - - -
GIS Technician 1.00 1.00 - - -
Administrative Assistant II - - - 1.00 1.00
Administrative Assistant I 1.00 1.00 2.00 1.00 (1.00)
Clerk Typist 1.00 1.00 - - -
Parks Foreman 1.00 - - - -
Senior Service Crew Member - - - 1.00 1.00
Service Crew Member II (PY Maint Worker) 3.00 7.00 7.00 9.00 2.00 Service Crew Member I (PY Laborer I/II) 7.00 8.00 8.00 7.00 (1.00) Utility Manager 1.00 1.00 - 1.00 1.00
Utility Technician 2.00 2.00 2.00 1.00 (1.00)
Utility Operator II 1.00 1.00 1.00 1.00 -
Utility Operator I 2.00 2.00 2.00 3.00 1.00
Equipment Operator 3.00 1.00 1.00 1.00 -
Public Facilities Manager 1.00 1.00 1.00 1.00 -
Mechanic 1.00 1.00 1.00 1.00 -
Facilities Manager - - 1.00 1.00 -
Public Works Total 32.00 34.00 34.00 37.00 3.00
Transit Driver, Lead - - - 1.00 1.00
Transit Driver 1.00 1.00 2.00 1.00 (1.00)
Transit Total 1.00 1.00 2.00 2.00 -
Citywide Total 111.00 113.00 122.00 135.00 13.00

2024/25 SHAFTER OPERATING BUDGET 225

226 SHAFTER OPERATING BUDGET 2024/25
Staffing Summary - Part Time Employees (hours)
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Fund Name Department/Division Budget Budget Budget Budget Budget Budget Budget Administrative Director
General Fund Educational Partnership - - - - - - -
- - - - - - -
Aides
General Fund Educational Partnership - - - - - - -
- - - - - - -
Building Inspector
General Fund Building - - - - - - -
- - - - - - -
Clerk
General Fund Educational Partnership - 125 125 - - - -
- 125 125 - - - -
Clerk Typist
General Fund Planning 686 686 686 440 686 - -
General Fund Engineering Services 86 86 86 - - - -
General Fund Building 686 686 686 440 686 686 686
General Fund Educational Partnership - 1,920 1,920 - - - - General Fund City Manager - - - 640 - - -
Water Fund Water Operations 86 86 86 - 100 333 333
Wastewater Fund Wastewater Operations 86 86 86 - 100 333 333 Refuse Fund Refuse Operations 86 86 86 - - 333 333
1,716 3,636 3,636 1,520 1,572 1,685 1,685
Deputy Police Chief
General Fund Police Services - 960 960 - 960 - -
- 960 960 - 960 - -
Drivers
Transit Fund Transit Operations 5,600 5,600 5,600 5,600 5,600 4,600 4,600 5,600 5,600 5,600 5,600 5,600 4,600 4,600
Engineering Extra Help
Water Fund Water Operations - - - - 250 - -
Wastewater Fund Wastewater Operations - - - - 250 - -
Refuse Fund Refuse Operations - - - - - - -
General Fund Engineering Services - - - - 250 - -
- - - - 750 - -
Finance Manager
General Fund Financial Services - - - - - - -
Water Fund Water Operations - - - - - - -
Wastewater Fund Wastewater Operations - - - - - - -
Refuse Fund Refuse Operations - - - - - - -
Transit Fund Transit Operations - - - - - - -
- - - - - - -
Intern
Information Technology Automation Maintenance - 240 240 - 960 - - General Fund Engineering 1,480 1,480 1,480 1,480 1,480 1,480 1,480 General Fund Building 160 160 160 640 640 640 640
General Fund Planning 160 160 160 - 160 160 160
General Fund Educational Partnership - - - - - - -
1,800 2,040 2,040 2,120 3,240 2,280 2,280
Laborer
General Fund Parks & Tree Maintenance - - - - - - -
General Fund Streets & Sidewalks - - - - - - -
Water Fund Water Operations - - - - - - -
Wastewater Fund Wastewater Operations - - - - - - -
Refuse Fund Refuse Operations - - - - - - -
- - - - - - -
Librarian
General Fund Educational Partnership - 125 125 - - - -
- 125 125 - - - -
Nurse
CCF Operations Fund Corrections Operations 480 480 480 - - - - 480 480 480 - - - -
Planning Director
General Fund Planning - - - - - - -
- - - - - - -

PART-TIME HOURS

2024/25 SHAFTER OPERATING BUDGET 227
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Fund Name Department/Division Budget Budget Budget Budget Budget Budget Budget Police Officer
General Fund Police Services - - - - - - -
- - - - - - -
Principal
General Fund Educational Partnership - 175 175 - - - -
- 175 175 - - - -
Recreation Coordinator
General Fund Recreation & Community Facilities - - - - - - - - - - - - - -
Recreation Worker
General Fund Recreation & Community Facilities - - - - - - - - - - - - - -
Shelter Workers
General Fund Animal Control - - - - - - -
- - - - - - -
Teacher I
General Fund Educational Partnership 408 1,350 1,350 408 3,683 3,683 3,683 408 1,350 1,350 408 3,683 3,683 3,683
Tutor II
General Fund Educational Partnership - - - - 3,919 3,919 3,919 - - - - 3,919 3,919 3,919
Tutor
General Fund Educational Partnership 4,650 4,650 4,650 6,858 2,939 2,939 2,939 4,650 4,650 4,650 6,858 2,939 2,939 2,939
Vets Hall Laborer
General Fund Recreation & Community Facilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Total Part Time Employees (hours) 15,654 20,141 20,141 17,506 23,663 20,106 20,106

228 SHAFTER OPERATING BUDGET 2024/25

SUMMARY OF EMPLOYEE BENEFITS
The following information is intended as a ready reference and brief summary of the City’s personnel policies, work rules and benefits. It is designed to provide a quick overview and access to general information conditioned on your employment status as a full-time employee. Unless otherwise specifically indicated, part-time, extra help and temporary employees are excluded. This summary is not intended to provide an entire benefit description and cannot anticipate every situation or answer every question. This is not an employment contract or a legal document and does not constitute a contract. To retain flexibility, the City’s personnel policies, work rules, benefits and other provision frequently change without notice to its employees. The information may not be current or may differ due to changes in the employee bargaining agreements. Refer to respective plan brochures, city policies and procedures, and employee bargaining agreements for benefit provisions, limitations, and exclusions. Prior to acting based on any information, you should contact the Human Resources Department at 746-5003.  Probation:

The probationary period is the final step in the selection process. It is an extension of the examination process. An employee is considered at will and may be rejected anytime for failure to satisfactorily complete the probationary period. The length of the probationary period is six (6) months, except that peace officers and dispatchers serve a twelve (12) month probation. The probationary period may be extended for a maximum of six (6) additional months.
 Performance Appraisal Reports (PAR):

A Performance Appraisal Report (PAR) is scheduled at the conclusion of the probationary period and annually. As approved by the Department Head and City Manager, a merit increase is awarded based on an overall satisfactory or better rating on the annual PAR when normally increasing job productivity is documented.
 Pay Plan:

The duties and responsibilities determine each job classification and is assigned a salary range. Five steps of compensation exist within that salary range (Steps A through E). Step A represents the minimum rate of compensation and Step E represents the maximum. There is a difference of 5% between each salary step. Each step represents an increasing level of responsibility and competence. Advancement in step is considered on a merit basis subject to the approval of the Department Head and City Manager.  Tax Withholding Statement (W-4):

Filing both Federal and State tax withholding statements are required. A new tax withholding statement can be filed anytime throughout the year. The tax withholding statements do not need annual renewal. However, to continue an exempt status from the previous year, you must file a new tax withholding statement claiming exempt status by February 15. Failure to do so requires a tax withholding of single with no allowance.  Wages:

Employee pay operates on a bi-weekly pay schedule; including 80-hour work periods with 26 work periods per year. Employees are paid for actual hours worked (or paid time off used) plus any overtime worked in excess of the base work week during the pay period.

Base Hours Base Week
Hours per
Year
Month per
Year
Checks per
Year
Hours per
Year
Checks per
Year
Hours per
Check
40 52 2080 12 26 2080 26 80
80 26 2080 12 26 2080 26 80
 Base Work Week Period:

Work Schedule Base Work Week Base Hours Overtime
5 day - 8 hour shifts, weekly Starts Saturday, ends 7 days later on Friday 40 hours Over 40 hours 4 day - 10 hour shifts, weekly Starts Saturday, ends 7 days later on Friday 40 hours Over 40 hours 6 days - 12 hour + 1- 8 hour shifts, bi-weekly Starts Saturday, ends 14 days later on Friday 80 hours Over 80 hours

SUMMARY OF EMPLOYEE BENEFITS

2024/25 SHAFTER OPERATING BUDGET 229
 Pay Period:

Pay periods, pay days, and overtime/leave cut off dates are outlined on the payroll schedule below.  Overtime:

Employees who do not meet the duties and salary test under the Fair Labor Standard Act (FLSA) are not exempt from overtime compensation and are paid at a rate of one and one-half times the hourly rate for hours worked in excess of the base work week period. Overtime compensation may be paid as income on the paycheck or banked as compensatory time off (CTO). Overtime forms are required to be submitted as the overtime is worked. Failure to submit overtime forms by the end of the pay period is considered falsification of timekeeping records.

Employees who meet the duties and salary test under the FLSA as executive, administrative or professional are exempt from overtime compensation.

Exempt employees are not paid for hours worked in excess of the base work week period. Exempt employees receive compensation each day, despite the number of hours worked during the work week period. Exempt employees absent for a full day or more should submit an employee leave form.

Exempt employees do not submit leave forms for partial day absences.  Pay Day:

Employee pay operates on a bi-weekly pay schedule. Pay checks are issued the Friday following the payroll cut-off date (refer to payroll schedule for exact dates). When payday is on a holiday, pay is issued on the prior business day. The paycheck stub shows current and year to date earnings plus accrued leave balances and deduction information. Pay stubs are available via Employee Self Service (ESS).  Direct Deposit:

Employees are subject to mandatory participation in the direct deposit of their City payroll checks to a bank account of their choice. Direct deposit by electronic transfer of the entire paycheck into a checking account can be made to any banking institution. Subject to bank rules, funds are posted to accounts on payday. Paycheck stubs can be accessed via Employee Self Service (ESS).  Uniform Allowance:

Employees required to wear uniforms are issued shirt and pants, or receive an annual cash allowance. Upon termination, uniforms must be returned, and advanced cash allowance must be repaid on a pro-rated basis.  Tuition Reimbursement:

As authorized, employees who pursue a higher education in job-related, career enhancing courses or to attain a degree, may be reimbursed up to $3000 in a calendar year for expenses (tuition, book purchase or rental, fees, permits, etc.).

230 SHAFTER OPERATING BUDGET 2024/25
 Education/Certification Incentive:

Employees in designated positions may be eligible for education and/or certification incentives as approved by the Department Head, which may include PD - POST certificate incentive for Police and Dispatch classifications; State Arborist and Water Distribution Certificates for designated Public Works classifications.
 Bilingual Allowance:

Employees in designated positions as approved by the Department Head are eligible for an incentive for fluency in Spanish. Certification requires a Spanish conversational and reading examination.
 Rest Breaks:

Rest periods are normally provided to employees at the rate of fifteen (15) minutes for each four (4) hours worked. No additional compensation or benefits is paid if a rest period is missed since it is already paid time.  Vacation Time:

Vacation leave is based on an eight (8) hour day and is earned based on years of service.

Vacation begins to accrue on a pro-rated hourly basis at the end of the first full pay period worked. Vacation cannot be taken until completion of one year of service and must be taken within a year after it is earned. Vacation stops accruing at a balance of two times the annual accrual rate based on a rolling forward method and resumes when vacation is taken, dropping the balance below the maximum. Example: Employee accrues vacation at a rate of 3.077 hours per period or 80 hours annually. Accruals stop when balance reaches 160 hours and does not resume until balance is below 160 hours. The time at which vacation can be taken is determined by the Department Head with regard for the wishes of the employee and particular regard for the needs of the City. When a holiday falls during vacation, the holiday is charged in lieu of vacation leave. Employees are required to submit leave forms for vacation leave. Vacation leave balance is posted on the paycheck stub. Leave forms must be submitted as it occurs for all hours absent from work during the work week. Failure to submit leave forms by the end of the pay period is considered falsification of timekeeping records.  Holidays:

Unless otherwise specified, holidays are eight (8) hours. Floating holidays are credited to your leave account the first pay period of July and require Department Head approval consistent with the efficient operation of the department. A floating holiday not used by June 30 does not carry over to the next fiscal year.

Non-shift employees normally take a holiday off on the day it falls, except when a holiday falls on a Saturday, the preceding Friday is observed, and when it falls on a Sunday, the following Monday is observed. When a holiday falls during a vacation, the holiday is in lieu of vacation. Employees assigned to work on holidays are paid at time and one half. Holidays can be paid as wages as it occurs throughout the year, or banked as CTO to use as paid leave throughout the year.
 Sick Leave
Sick leave accrues at a rate of 3.6923 hours bi-weekly, beginning on the first day of employment for a full-time regular appointment. There is no limit to the accumulation. Temporary and part-time employees accrue one (1) hour of sick leave for every 30 hours worked and will be credited pro-rata each pay period; maximum annual carryover is 48 hours. Leave forms must be submitted as it occurs for all hours absent from work during the work week. Failure to submit leave forms by the end of the pay period is considered falsification of timekeeping records. Medical certification is required for an employee absent 3 or more consecutive calendar days, or upon request when in conjunction with regular days off or a holiday.

Sick leave can be used for an illness that keeps an employee from performing work. Sick leave can also be used as family sick leave when the employee is required to provide care for an employee’s spouse or eligible dependent with a serious or emergency illness. Family sick leave is limited to a maximum of half of what is earned in a calendar year.

Employees with at least 480 hours of accrued sick leave are eligible for a Stay Well Bonus. For purposes of sick leave accounting, the annual period is December 1 through November 30. All unused sick leave above 480 hours will be used for calculating the employee stay well bonus paid on or around December 15. Net sick leave earned and not used during the annual period will be divided in half. One-half will be paid to the employee at the employee’s current base hourly rate and the remaining one-half shall remain as regular sick leave.

Service Biweekly
Accrual Rate
Maximum
Accrual
1 year 3.077 hours 160 hours
5 years 4.615 hours 240 hours
10 years 5.213 hours 272 hours
15 years 6.154 hours 320 hours
20 years 7.692 hours 400 hours

1. New Year’s Day

2. Washington’s Birthday

3. Memorial Day

4. Independence Day

5. Labor Day

6. Thanksgiving Day

7. Day After Thanksgiving

8. Christmas Eve

9. Christmas Day

10. New Year’s Eve

11. Floating Holiday

12. Floating Holiday

2024/25 SHAFTER OPERATING BUDGET 231
Also, employees who do not use any sick leave during the period July 1 through June 30 earn an additional eight (8) hour floating holiday. Upon termination, all sick leave over 640 hours (720 hours depending on the job classification) is paid to the employee.  Jury Duty:

Upon receipt of jury duty summons, immediately provide a copy of the notice to your supervisor. When practical, the employee is transferred to day shift during the period of jury duty. While at jury duty during normal scheduled work hours, employees receive their regular pay for hours of absence from work. Attach a jury duty timecard form verifying the hours at jury duty to the leave form. Provided there is at least one (1) hour of work time before and after jury duty, employees must report for work. Failure to submit a leave form, jury duty timecard, or report for work is considered falsification of timekeeping records.
 Military Leave:

Military leave is provided consistent with State/Federal law. Some military leave provided up to thirty (30) days paid per year. Failure to submit a leave form for military leave is considered falsification of timekeeping records.  Bereavement Leave:

Up to five (5) paid days are provided upon the death of a spouse, child, stepchild, parent, stepparent, grandparent, spouse’s grandparent, grandchild, son-in-law, brother-in-law, sister-in-law, daughter-in-law, mother-in-law, father-in-law, brother, stepbrother, sister, stepsister and registered domestic partner. Up to five (5) paid days may be granted with approval of the City Manager when the funeral of a spouse or child takes place out of State or over 200 miles from Shafter.
 COBRA:

Federal and State laws require that the City offer employees and dependents temporary extension of its group medical and dental plans, called "continuation coverage" and referred to as COBRA, at group rates plus a 2% administrative fee. Employees covered by the City’s medical and/or dental plans have a right to choose this continuation coverage if they lose group coverage because of a reduction in hours or the termination of employment for reasons other than gross misconduct. The employee’s spouse has the right to choose continuation of group coverage in the event of the death of a spouse; termination of spouse's employment (for reasons other than gross misconduct) or reduction in spouse's hours of employment; divorce or court ordered legal separation from spouse; or spouse becoming entitled to Medicare. The employee’s dependents have the right to continuation of group coverage in the event of the death of a parent; the termination of a parent's employment (for reasons other than gross misconduct) or reduction in a parent's hours of employment, parents' divorce or court ordered legal separation; parent becomes entitled to Medicare; or the dependent ceases to be eligible. A child who is born to or placed for adoption with a covered employee during a period of continuation coverage is eligible for COBRA coverage. A new spouse or new dependents must be added to COBRA coverage within the time frame and with the appropriate forms provided for active employee coverage.

The employee must inform the City of a divorce, court ordered legal separation, or dependent losing eligibility within 30 days of the event. If notice is not received within that 30-day period, the right to COBRA and continuation coverage is lost. When the City is notified that such an event has occurred, the City sends a notice of the right to continuation coverage under COBRA. The City must be informed that continuation coverage under COBRA is wanted within 60 days of one of the events described above. COBRA requires that participants be afforded the opportunity to maintain continuation coverage of medical and dental insurance for 36 months.  Medical Insurance:

Coverage begins on the first day of the month following date of hire. The City pays 100% of the insurance premium for coverage on regular full-time employee, spouse and dependents for the base plan. The City currently has two plans that qualify under the base plan, Anthem Blue Cross EPO and Kaiser Group HMO Plan. Anthem Blue Cross PPO 250 plan is a ‘buy-up’ option.

In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.

Variable, part-time or seasonal workers are eligible for coverage pursuant to the Patient Protection and Affordable Care Act (ACA). Workers meeting the minimum average hours worked are entitled to employer provided Minimum Essential Medical Coverage.

Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments.

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 Medical Insurance Opt-Out Incentive:

When covered under other medical insurance, an employee may decline the City group medical plan and receive a $353 monthly Opt-Out benefit.

Proof of other medical insurance coverage is required. Benefits such as dental, life insurance, and vision benefits still apply regardless of the Opt-Out Incentive. Re-enrollment into the City plan can occur during open enrollment (January 1 effective date) or anytime you lose your other insurance coverage due to a qualifying event if enrollment is completed within 30 days of event.  Vision Benefit:

Benefits for vision care are provided through Vision Service Plan (VSP) for each qualified family member. Coverage begins on the first day of the month following date of hire. The City pays the full insurance premium for coverage on the employee, spouse and dependents for the base plan.

Employees who opt-out of the City medical insurance plans still qualify for the City vision plan.

In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.

Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments.  Dental Insurance:

Coverage begins on the first day of the month following date of hire. Dental benefits are provided through MetLife (HMO) and Delta Dental (PPO). The City pays 100% of the premium cost for coverage for the employee and dependents on the base HMO plan. On the HMO plan employees pay for services provided at reduced co-payments. Employees may choose to buy-up to the PPO plan. Coverage for both plans include routine, preventative and restorative dental care and orthodontia.

In general, dependents include your legal spouse or registered domestic partner; your or your spouse’s or registered domestic partner’s natural or adopted children who are under age 26, or if over the age limit cannot hold a full-time job because of a mental or physical disability and remain continuously dependent for at least 50% of financial support.

Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments.  Life Insurance:

Coverage begins on the first day of the month following date of hire. Life benefits are provided through Principal Financial Group Life Insurance Company. The City pays 100% of the insurance premium cost for coverage for the employee, spouse and dependents. The employee death benefit is equivalent to the annual base salary plus $17,000. The spouse death benefit is $5,000. The dependent death benefit range is $1,000-$1,500.

Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence. Failure to do so may result in your reimbursement of insurance premiums paid for ineligible dependents, or loss of coverage until open enrollment (January 1 effective date). The individual plan brochure describes specific plan benefits and co-payments.  Retirement:

The City and employees participate in the social security program by each making a 7.65% contribution to fund future Social Security and Medicare benefits.

The City offers defined retirement benefits plan through the California Public Employees Retirement System (CalPERS). Eligibility depends on employment status as a regular full-time employee. Temporary, extra-help or part-time employees are excluded unless they meet certain membership criteria. There are two membership categories and four plans depending on job classifications and date of hire: Miscellaneous 2% at 55 Full Formula Plan for all employees qualified as Classic Members. Peace Officers under PC 830.1 and qualified as a Classic Member are members of the Safety 3% at 55 Full Formula Plan. Members qualified as PEPRA under CalPERS guidelines are either Miscellaneous 2% at 62 Full Formula Plan or Safety

2.7% at 57 Full Formula Plan. Membership begins on the date of hire. There is a 5-year vesting period. Retirement benefits are based on age at retirement, earnings, and years of service.

Employees are responsible for paying the member contribution rate. The contribution is deposited into the employee’s CalPERS member account. The contribution rate for a Classic miscellaneous member is 7% and 9% for a Classic safety member. PEPRA members contribute 50% of the annual

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normal cost rate and the contributions are subject to increase, decrease, or stay the same in any given year. The normal cost rate for fiscal year 23/24 is 7.75% for miscellaneous PEPRA members and 13.75% for PEPRA Safety members. The City pays an employer contribution which varies annually.

Previously withdrawn funds can be redeposited on a pre-tax basis through payroll deduction. Employees must contact CalPERS to determine the cost.

Reciprocity is an agreement between CalPERS and certain other city, county or special district retirement plans that provides retirement benefits based on your highest earnings in either plan. Reciprocity must be established within 6 months of employment.

The beneficiary of a member’s account is established by law. Changes can be made by completing a change form. A married member requires the spouse’s signed consent. Before you retire, death benefits are payable to the following survivors in the following order unless designated otherwise on a valid Beneficiary Designation form: 1. Your surviving spouse/registered domestic partner (whether or not you were still living together at the time of your death); or, if none, 2. Natural and adopted children, including (in limited situations) a natural child adopted by another, share and share alike; or, if none, 3. Parents, share and share alike; or if none, 4. Brothers and sisters, share and share alike, or if none, 5. Your estate (if probated, or subject to probate), or if not, 6. Your trust (if one exists), or if not, 7. Stepchildren, share and share alike, or, if none, 8. Grandchildren, including stepgrandchildren, share and share alike, or, if none, 9. Nieces and nephews, share and share alike, or, if none, 10. Great-grandchildren, share and share alike, or, if none, and 11. Cousins, share and share alike.  Deferred Compensation:

As authorized by IRS Code 457, the City offers an optional supplemental retirement savings plan through MissionSquare that defers taxable income and interest earned. Participation is voluntary and contributions can be increased, decreased, stopped or restarted without restriction and without fees or penalties. There are no restrictions or charges for reallocation of investments. Contributions are made through payroll deduction on a pretax basis so current income taxes are reduced. Nothing in the account is forfeited in the event of death and the designated beneficiaries receive the remaining funds. Contributions can start with as little as $25 per pay period. Withdrawal of contributions is limited to retirement, separation of employment, and while employed, due to a severe financial hardship resulting from a sudden illness, disability, or accidental property loss, or with an account balance of less than $5,000 where no contributions have been made for two years (other conditions may apply).  Disability Insurance:

Employees participate in the State Disability Insurance (SDI) program. Employees pay 1% of wages by payroll deduction to fund future SDI and Paid Family Leave (PFL) benefits. SDI pays temporary disability benefits up to one year when you cannot work due to your own injury or illness that is not the result of your job. PFL pays compensation benefits not to exceed 6-weeks in a 12-month period when you stop working to care for a seriously ill qualified family member as verified by doctor certification or to bond with a new child. SDI and PFL provide income and are not a right to time off, or job protection if time off is granted. The right to job protected leave must be consistent with the Federal and State Family Medical Leave Acts, or State Pregnancy Disability Act.

Your weekly benefit amount is about 60 to 70 percent (depending on income) of wages earned 5 to 18 months before your claim start date up to the maximum weekly benefit amount. SDI has a 7-day non-payable waiting period, PFL does not have a waiting period. Employees must use sick (if eligible), or other accrued leave to cover the wage difference between SDI/PFL and city pay. Benefit checks are issued every two weeks.  Workers Compensation:

Workers compensation benefits are provided as required by law to protect employees who are injured on the job. The City is self-insured for workers compensation benefits and pays the benefits through a third-party administrator, Acclamation Insurance Management Services (AIMS). Coverage is automatic and begins immediately. Benefits include payment for medical expenses and tax-free temporary disability (TD) payments to help replace lost wages while temporarily disabled.

Report the injury immediately to a supervisor or to the Human Resources Department. Don’t delay, there are time limits to report an injury. Waiting too long may result in losing the right to benefits. You will be given an injury report form to complete, with instructions on how to obtain medical care. If in need of emergency care, call 911 for help immediately. Medical care is provided through the City’s authorized medical providers. Pre-designation of a personal medical doctor to treat work related injuries requires prior written authorization.

TD benefits are provided when an injured employee cannot work. TD is based on earnings, and is about 66% of the employee’s average weekly earnings, not to exceed a weekly maximum amount of $1,619.15 for 2023. There is a 3-day non-payable waiting period. Employees must use sick, vacation or other accrued leave to cover the difference between TD and city pay to provide 100% until accruals are exhausted. TD benefit checks are issued every two weeks. TD benefits are not issued for partial day absences and sick leave must be used for medical care appointments. Leave taken for a worker compensation injury or illness qualifies as job protected leave pursuant to the Federal and State Family Medical Leave Acts.

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 Flexible Spending Account (FSA):

The City offers an optional FSA plan benefit through AFLAC. To enroll in this benefit, contact AFLAC representative Stacie Bender for assistance.

Coverage begins on the first day of the month following date of hire. FSA plan benefits, as authorized by IRS code 125, allow employees to use pretax dollars to pay for certain benefit costs, thus reducing taxable income, and increasing take-home pay. With FSA, a portion of each paycheck is set aside to pay insurance premiums for optional insurance plans such as accident, sickness, short term disability, intensive care, cancer care, long term care and personal major recovery & life threatening events, and to self-reimburse for dependent day care (DDC) and unreimbursed medical (URM) expenses. This amount is deducted from employee paychecks before federal and state income taxes are calculated so taxes are not paid on money spent on qualified DDC or URM expenses, or optional insurance plans. Without an FSA, employees pay taxes on every dollar earned, then optional insurance plans and DDC or URM expenses are paid.

A DDC/FSA covers dependent children under age 13 who qualify as tax dependents and anyone claimed as a tax dependent because of physical or mental inability to care for himself/herself. An URM FSA covers medical expenses such as insurance copayments and deductibles, medical care (consultations, diagnostic lab work, etc.), prescription and diabetic supplies (blood sugar monitor, syringes, test strips, etc.), dental and vision care.

Enrollment in AFLAC is limited to the 30-day period from the initial hire date or at open enrollment (October), effective January 1. Changes to plan benefits selected cannot occur until the next open enrollment period, or under certain circumstances during the plan year such as changes in cost or coverage, changes in family status and separation from service. Any changes in marital status or dependent eligibility must be reported to the Human Resources Department within 30 days of occurrence, otherwise plan changes due to newly eligible spouse or dependents are delayed until open enrollment. During open enrollment, insurance plans automatically renew unless you make changes. However, DDC and URM accounts require reenrollment each year. The individual plan brochure describes specific plan benefits and co-payments.

To request reimbursement for qualified DDC or URM expenses, submit a claim form and proof of payment of expenses. Caution should be used in determining how much to set aside from each paycheck for DDC and URM expenses. Qualified DDC expenses must have occurred during the plan year. Qualified URM expenses must have been paid during the plan year regardless of when services were provided (IRS Publication 502). You may roll over up to $500 unused amount of URM from one plan year to the next, all amounts over $500 are forfeited. Any unused amount set aside for DDC does not roll over to the next plan year and is forfeited.  Employee Assistance Program (EAP):

The EAP provides evaluation by professional counselors, and if appropriate, short term counseling for behavioral problems which affect work performance or personal life. Through a confidential, self-referral process, employees and their household members can discuss their personal situation such as family violence, marital relationship or parenting conflicts, substance abuse assessment, addictions, stress, anxiety, depression, grief and loss, or referrals to community resources. Refer to the brochure for details. Other services such as financial, legal, etc., are also available.  Employee Union Membership:

The City operates under specific Employer-Employee Relations Policies and City Personnel System Rules. Certain positions are recognized under employee bargaining groups. Part-time and temporary employees are excluded. Employee bargaining groups negotiate salary and benefits for members and agreements are contained in each employee bargaining group memorandum of understanding (MOU). Employees are not required to become due paying members nor to contribute a representation fee. Groups recognized are the Shafter Police Officers Association (SPOA), and the Shafter Public Works Employee Association. Membership dues are made as a payroll deduction. Positions not recognized by a bargaining unit are covered by Resolution of the City Council.
 Assigned Vehicle Program:

Designated Police and Public Works employees may take home pool vehicles as authorized by the Department Head. The benefit may be reported as taxable income under certain circumstances. City employees are required to use pool vehicles to travel on business. Incidental use of a personal vehicle for business travel is prohibited, unless authorized in writing. Use of a personal vehicle requires submission of proof of personal automobile insurance.
 Policies:

Employees are required to receive, understand and adhere to specific City policies, and are required to acknowledge such in writing. Depending on the job assignments, these policies include the following: DMV Driving Record, Department of Transportation Drug Testing, Confidential Personnel Information, Drug and Alcohol in the Workplace, Employee Protection Line, Fraud, Harassment and Discrimination, Hepatitis B Immunization Program, HIPPA Program, Personnel System Rules, Wage Deduction, Workers Compensation, and Workplace Violence.

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Glossary of Terms
Adopted Budget: The final budget amount adopted by the City Council in June.

Amended Budget: The official budget as adopted and as amended by the City Council through the course of a fiscal year.

Appropriation: An authorization made by the City Council, Agency, and/or Authority members which permits the City to incur obligations and to make expenditures of resources.

Budgetary/operating fund appropriations lapse at the end of each fiscal year. Non-operating fund appropriations continue in force until fully expended or until the City has accomplished or abandoned the purpose for which the City Council, Agency or Authority granted the funds.

Spending cannot exceed the level of appropriation without the City Council's, Agency’s or Authority’s approval.

Arbitrage: A payment made to the federal government in connection with a bond issue of tax exempt or other federally tax-advantaged bonds. The payment represents the amount, if any, of arbitrage earnings on bond proceeds and certain other related funds, except for earnings that are not required to be rebated under limited exemptions provided under the Internal Revenue Code. An issuer generally is required to calculate, once every five years during the life of its bonds, whether or not an arbitrage rebate payment must be made.

Assessed Valuation: The value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, assessed value is established by the County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value.

Proposition 13 also modified the value of real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

Assessment Districts (AD): Under the Municipal Improvement Act that allows a designated area to pay the debt service on bonds sold to finance capital improvements installed by the City or a developer. The property owners receiving the benefit of the improvements pay an assessment on their property tax bills.

Asset Forfeiture: Asset seizures and forfeitures resulting from police investigations and court decisions. Asset Forfeiture funds are used for law enforcement purposes.

Audit: Prepared by an independent certified public accountant, or CPA, the primary objective of an audit is to determine if the City’s Financial Statements fairly present the City’s financial position and results of operations in conformity with generally accepted accounting principles.

In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter stating the adequacy of the City's internal controls as well as recommending improvements to the City's financial management practices.

Balanced Budget: A budget in which planned expenditures do not exceed planned funds available.

Bond: A security that represents an obligation to pay a specific sum of money on a specific date in the future, typically with periodic interest payments.

GLOSSARY OF TERMS

236 SHAFTER OPERATING BUDGET 2024/25

Glossary of Terms

Budget: A financial plan for a specified period of time that matches planned revenues and expenditures to municipal services.

Budget Amendments: The City Council, Agency and/or Authority members have the responsibility for adopting the City's budget, and may amend or supplement the budget at any time after adoption by majority vote. The City staff has the authority to approve line item budgetary transfers between expenditure objects of the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

Budget Policies: General and specific guidelines adopted by the City Council that govern budget preparation and administration.

CalPERS: California Public Employees Retirement System, a mandatory fringe benefit for City employees.

Capital Expenditure: An acquisition or an improvement (as distinguished from a repair) that will have a life of more than one year and costs more than $5,000.

Capital Improvement Program (CIP): A plan to provide for the maintenance or replacement of existing public facilities and assets and for the construction or acquisition of new ones. The CIP document identifies capital needs on a five-year basis.

Capital Project Funds: Funds used to account for financial resources used in the acquisition or construction of major capital facilities other than those financed by Proprietary Funds or Trust Funds.

Cash Basis or Cash Method: Is an accounting method that recognizes income and deductions when money is received or paid.

Certificates of Participation (COP): Obligations of a public entity based on a lease or installment sales agreement. Payments to certificate holders may originate from the General Fund (in case of a lease) or a special fund (in case of an installment sale).

Community Facilities District (CFD): A designated area for specific capital improvements installed by the City or a developer, or the maintenance of same. The property owners receiving the benefit of the improvements pay a special tax on their property tax bills.

Contractual Services: A series of Object Codes which include the expense of services procured independently by contract or agreement with person, firms, corporations or other governmental units.

Contingency: An appropriation of funds to cover unforeseen events that occur during the fiscal year, such as flood emergencies, federal mandates, shortfalls in revenue, and similar events.

Debt Financing: Borrowing funds as needed and pledging future revenues to make current expenditures.

Debt Service: Payments of principal and interest on bonds and other debt instruments according to a predetermined schedule.

Debt Service Funds: Funds used to account for the payment of, and accumulation of resources for, long-term debt principal and interest.

Deficit: A shortfall of resources to meet expenditures.

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Glossary of Terms

Department: A major organizational unit of the City which has been assigned overall management responsibility for an operation or a group of related operations within a functional area.

Development Impact Fee: Funds created to provide for infrastructure projects through Development Impact Fees.

Division: An organizational element, below Department and above Programs in the City of Murrieta's organizational hierarchy.

Encumbrance: Commitment of funds to purchase an item or service.

Errata Items: Budgetary items added after the proposed budget document was printed.

Expenditure: The outflow of funds paid, or to be paid, for an item obtained regardless of when the expense is actually paid.

Fiduciary Funds: Also known as, trust or agency funds; held in a fiduciary capacity by a governmental unit for individuals, organizations, or other governmental units, as an agent or trustee.

Fees for Services: Charges paid to the City by users of a service to help support the costs of providing that service.

Fiscal Year: A twelve-month period for recording financial transactions. The City has specified July 1 through June 30 as its fiscal year.

Franchise Fee: A fee charged for the privilege of using public rights-of-way and property within the City for public or private purposes.

Fringe Benefits: Compensation that an employer contributes to its employees such as social security, retirement, life/health insurance, or training supplements. Fringe benefits can be either mandatory, such as social security contributions, or voluntary, such as retirement and health insurance benefits.

Fund: An accounting entity that records all financial transactions for specific activities or governmental functions.

Full-Time Equivalent (FTE): A term used to refer to the number of hours for which a position is budgeted. Most fulltime employees are paid for 2,080 hours in a year.

Fund Balance: The amount of assets either obligated or reserved for specific purposes or available for financing the expenditures and other requirements of the budget year.

GANN Appropriations Limit: This term refers to Article XIIIB of the California State Constitution that places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year.

Gas Tax: A fund to account for receipts and expenditures of money apportioned under the Street and Highway Code of the State of California for money derived from the use of certain fuels and borne by the consumer, for transportation improvements. The money is restricted to research, planning, construction, improvement, and maintenance of public streets.

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Glossary of Terms
General Fund (0100): The primary operating fund of the City where all revenues that are not allocated by law or contractual agreement are accounted for. With the exception of subvention or grant revenues restricted for specific uses, General Fund resources can be utilized for any legitimate governmental purpose. A limited number of capital improvements are financed from this source since its focus is to fund ongoing operations.

General Obligation Bond: A bond secured by the pledge of the issuer's full faith, credit, and usually, taxing power. Bonds issued through a governmental entity which have legal authority to levy a tax on real and personal property located within the governmental boundaries at any rate necessary to collect enough money each year to pay principal and interest due.

Governmental Accounting Standards Board (GASB): The Governmental Accounting Standards Board establishes and improves standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports.

Government Finance Officers Association (GFOA): An organization established to assist in the professional management of governments by developing and identifying financial policies and best practices through education, training, facilitation of member leadership and networking.

Grants and Reimbursements: Funds received directly or indirectly from other governmental agencies for specific related activity and time period. Money awarded may be received in advance or as a reimbursement of activities.

Highway Users Tax Account (HUTA): State accounting for excise taxes on various transportation fuels. California motor vehicle fuel taxes include the gasoline tax, diesel fuel tax, and the use fuel tax. Allocations to cities and counties are based on the formulas outlined in the Streets and Highways code. See Gas Tax Fund.

Infrastructure: The physical assets of the City; i.e., streets, water, sewer, public buildings, parks, and the support structures within a development.

Interest Revenue: Revenues received as interest from the investment of funds not immediately required to meet cash disbursement obligations.

Interfund Charges: To account for services that are incurred in different funds than where they are charged.

Internal Service Funds: Funds used to improve the management of resources and generally provide goods and services to departments on a cost-reimbursement basis.

Landscape & Lighting District, or LLD: A designated area, neighborhood, or community identified to specially benefit from certain improvements, such as parks, playgrounds, landscapes, sidewalks, lighting, trees, etc. Due to the special benefit, landowners in the identified area are assessed to pay the costs of the construction and/or ongoing maintenance of such improvements.

Line-Item Budget: A budget that lists detailed expenditure categories (salary, materials, telephone service, travel, etc.) separately, along with amounts budgeted for each specific category.

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Glossary of Terms
Long-term Debt: debt with a maturity of more than one year after the date of issue.

Major Fund: Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget.

Major Fund Capital Expenditures:

Measure A: Money generated by Riverside County’s one-half percent sales tax originally approved by the voters in 1988. In 2002, the voters extended this sale tax through 2039. The money is used to maintain and construct local streets and roads.

Message from The City Manager: Included in the opening section of the budget, the Message from the City Manager provides the City Council and the public with a general summary of the most important aspects of the budget, changes from previous fiscal years, and the views and recommendations of the City Manager.

Municipal: In its broadest sense, an adjective which denotes the state and all subordinate units of government. In a more restricted sense, an adjective which denotes a city or village as opposed to other local governments.

Modified Accrual Basis: Governmental accounting method. Revenue is recognized when it becomes available and measurable.

Motor Vehicle In Lieu: State subvention revenue calculated annually by the State on a per capita basis.

National Pollutant Discharge Elimination System (NPDES): Money received from the County of Riverside relating to the permit program for discharges from storm drain systems.

Object Codes: Are specific numerical classifications for which money is allocated for disbursements.

Operating Budget: plans of current expenditures and the proposed means of financing them.

The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled.

Ordinance: A formal legislative enactment by the City Council. It has the full force and effect of the law within City boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a City's municipal regulation.

Other Post-Employment Benefits (OPEB): Benefits other than pensions, most commonly health care benefits. GASB Statement No. 45 requires agencies to account for financial obligations to pay retiree Other Post Employment Benefits.

Program: A grouping of activities organized to accomplish basic goals and objectives.

Program Budget: A budget that focuses upon the goals and objectives of an agency or jurisdiction rather than upon its organizational budget units or line item expenditures.

Property Tax: A statutory limited tax levy, which may be imposed for any purpose.

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Glossary of Terms
Proprietary Funds: Established to account for the financing of services rendered on a usercharge basis. See Internal Service Funds.

Real Property Transfer Tax: Real property transfer tax is collected by the County Tax Collector and is based on the value of property transferred.

Redevelopment Agency: A government body dedicated to urban renewal. Redevelopment efforts often focus on reducing crime, destroying unsuitable buildings and dwellings, restoring historic features and structures, and creating new landscaping, housing, business, and transportation opportunities. Effective February 2012, all redevelopment agencies throughout the State of California were dissolved. See Successor Agency.

Resolution: A special or temporary order of a legislative body (e.g., City Council or appropriate Agency / Authority) that requires less formality than an ordinance.

Revenue: Funds that the City receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.

Revenue Bond: A bond payable solely from specific revenues, tax increment revenues, or tolls, charges or rents paid by users of the facility constructed with the proceeds.

Risk Management: An internal service fund used to finance and account for the City’s worker’s compensation activity such as claims expense, insurance, premiums, and administrative expenses. Additional funds held in this fund are to buffer for the impact of the unknown, but potential, losses. An organized attempt to protect an organization’s assets against accidental loss in the most cost effective manner.

Riverside County Transportation Commission, (RCTC): The commission that allocates Riverside County's share of the money generated by the one-half percent sales tax.

Sales Tax: A tax on the purchase of goods and services.

Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those parties.

Special Assessment Bond: Bonds issued by cities, counties, authorized political subdivisions, and local districts secured by liens on benefited properties included in a special assessment district.

Special Charges/License and Permits: These charges are directly charged to individuals for specific services rendered by the City. They include charges to process or issue building permits and the cost to conduct engineering and planning reviews of any building project undertaken by a licensed contractor or private property owner.

Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes.

Subventions: Revenues collected by the state, or other level of government, which are allocated to the City on a formula basis. The major subventions received by the City from the State of California include motor vehicle in-lieu, cigarette taxes in-lieu, and gasoline taxes.

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Glossary of Terms
Successor Agency: Based on the dissolution of redevelopment agencies throughout the State, an agency designated with the responsibility to wind down the activities of former redevelopment agencies.

Tax Allocation Bonds: Debt which is secured by tax increment revenue.

Transfers: To account for money that moves from one funding source to another funding source, for a specific purpose.

Transient Occupancy Tax: Transient Occupancy Tax is collected from the operators of hotels and motels located within the city limits of Murrieta. Ten percent of the total rent collected by a motel or hotel is remitted to the City.

Unfunded Liability (UAL): When a plan’s Value of Assets is less than its Accrued Liability, the difference is the plan’s Unfunded Liability.

User Fees: The payment of a fee for direct receipt of a service by the party benefiting from the service.

Variance: Difference between actual experience and budgeted or projected experience in any financial category.