AGENDA ITEM NO.
9B
CITY OF SIMI VALLEY
MEMORANDUM
June 3, 2024
TO: City Council
Board of Directors, Ventura County Waterworks District No. 8 Successor Agency to the Simi Valley Community Development Agency Board of Trustees, Simi Valley Library
FROM: Office of the City Manager/District Manager/Executive Director/Executive Officer
SUBJECT: REVIEW AND APPROVAL OF THE FY 2024-25 BUDGET, APPROVAL OF FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM FOR FY 20 24-25 TO FY 2028-29, APPROVAL OF FY 20 24-25 TRANSIT BUDGET AND
PROGRAM OF PROJECTS, AND ADOPTION OF RESOLUTIONS
STAFF RECOMMENDATION
It is recommended that the City Council/Boards of Directors/Trustees:
1. Approve the Simi Valley Transit FY 202 4-25 Program of Projects (POP) to be forwarded to the Ventura County Transportation Commission (VCTC) for final approval and to be included in the City’s Federal Transit Administration (FTA) 49 U.S.C. Section 5307, Congestion Mitigation Air Quality (CMAQ), and Job Access Reverse Commute (JARC) grant applications;
2. Adopt the attached Resolution No. 2024 -22 (page 16) authorizing the City Manager to execute and submit the filing of grant applications with the FTA for operating, capital, planning, and preventive m aintenance assistance funds under 49 U.S.C. Section 5307, CMAQ, and JARC;
3. Adopt the attached Resolution No. 2024-23 (page 18) to delete the General Unit- designated classification and related salary range of Printer;
4. Adopt the attached joint Resolution No. 2024-24/WWD-297/SA-13/PL-34 (page 20) approving the FY 202 4-25 Annual Budget , incorporating the previously adopted budgets for the Cultural Arts Center and Council on Aging , and the Five- Year Capital Improvement Program for FY 2024-25 to FY 2028-29.
2 BACKGROUND AND OVERVIEW
The F iscal Y ear (FY) 2024- 25 Proposed Budget and Five -Year Capital Improvement Program were posted on the City’s website for public viewing on May 15, 202 4, and printed copies were made available to City Council on May 15, 2024. A public meeting was held to present the Proposed Budget and gather feedback on May 21, 202 4. As presented, the FY 2024-25 Proposed General Fund Budget is structurally balanced and represents a sustainable and fiscally responsible budget, which funds programs of value to the community and within available resources. Furthermore, the Proposed Budget, as presented, maintains more than the City’s 17% Prudent Reserve policy.
The City is in a strong financial position, as highlighted by its healthy General Fund balance. The City has been very prudent in managing the budget for many years, which has resulted in revenues exceeding expenditures.
After a full accounting, the FY 2022-23 ended with a net surplus of $9,543,410. General Fund expenditures ended the year at $9.4 million below budget, and revenues came in at $4.5 million above budget. In April 2022, the City Council approved a Fund Balance Policy for the General Fund to strategically allocate prior year-end General Fund surplus dollars. This Policy allocates 40% of the surplus to both an Infrastructure Investment Fund and a Retirement Obligation Fund with the remainin 20% to a Contingency Fund.
Included with the FY 2024-25 proposed budget is reallocating the FY 2022-23 surplus funds into the three specific use “holding” funds. In accordance with the Fund Balance Policy, $4.5 million will be placed in the Infrastructure Investment Fund, and $4.5 million will be placed in the Retirement Obligation Fund. Under the Fund Balance Policy, the Contingency Fund shall have a maximum balance of $2 million. Due to the FY 2023-24 year-end Contingency Fund balance of $1.6 million, the fund was allocated an additional $400,000, resulting in the Infrastructure and Retirement funds receiving an amount above 40 percent. Staff will bring the City Council a recommendation for specific uses of these funds after adopting the FY 2024-25 Budget.
FY 2023-24 Projected General Fund Revenues and Expenditures FY 2023-24 General Fund revenue is estimated at $88.8 million, just under $1 million more than the adopted budget. The most significant contributor to the increase is in estimated interest earnings, about $525,000 more than the adopted budget. Sales tax revenue is estimated to end the year at $22.9 million, about $1.5 million less than the adopted budget. Property tax is estimated to end the year at $42 million, about $1.6 million m ore than the adopted budget, offsetting the decrease in Sales tax for a net increase of just under $100,000. The $400,000 transfer into the General Fund from the Contingency Fund for street striping makes up the balance of the $1 million General Fund revenue increase.
FY 2023-24 General Fund expenses are estimated at $88.1 million, which is $451,185 more than the adopted budget. The majority of the increase in expenditure is in Services, estimated to end the fiscal year $2.7 million over the adopted budget. This is primarily a result of funding for landscape services and vehicle maintenance not spent in FY 2022-23 and was carried forward into FY 2023-24. Combined savings in salary and benefits from planned and unplanned staff vacancies during the year and Materials and Supplies are projected to end the year by $2.4 million under the adopted budget, which offset the i ncrease in Services for the net increase in General Fund expenditures. 3 FY 2024-25 General Fund Revenues
FY 2024-25, General Fund operating revenue is budgeted at $88.1 million, which is $635,781 less than the FY 2023-24 projected Estimated A ctuals and $347,844 more than the FY 2023-24 adopted budget. The FY 2024-25 dec rease from prior year estimates is largely driven by FY 2023-2 4 increases in revenue from Transfers In, specifically transfers from the Law Enforcement Grants and Contingency funds coming into the General Fund.
FY 2024-25 General Fund Expenditures
FY 2024-25 G
eneral Fund operating expense is budgeted at $87.8 million. This amount is $288,007 less than the FY 2023-24 projected estimated actuals and $163,178 more than the FY 2023-24 adopted budget. This difference is due to the increased cost of personnel, materials & supplies, and services offset by the reduction in transferring of General Fund dollars to other funds, such as the streets & road fund, vehicle replacement fund, and building improvement fund.
The
Five-Year Capital Improvement Program contains $2.75 million in funding from the General Fund for FY 2024-25.
Depar
tments also requested new items funded from the General Fund. The Proposed Budget document presents a more detailed description of each item in the appropriate Department or fund section. Department proposals not ultimately included in the Proposed Budget can be found at the end of the document after the Supplemental Schedules tab.
Th
e City Council has prioritized fiscal strength and reinvesting in the community, and the proposed FY 2024-25 Budget reflects those priorities.
FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 Est. vs. Proposed Revenue Category Actual Adopted Revised Est Actuals Proposed % Change Taxes and Franchises 74,464,375 74,793,349$ 74,793,349$ 75,039,905$ 75,445,725$ 0.5% Revenue From Other Governments
(including Transfers In and Grants) 11,051,791 5,661,557 6,145,800 6,036,160 5,124,193 -15.1% Licenses and Permits 3,606,781 3,072,000 3,072,000 2,969,000 3,139,000 5.7% Use of Money and Property 2,328,691 1,347,440 1,347,440 1,871,890 1,702,572 -9.0% Service Charges 1,108,623 1,082,900 1,082,900 1,158,652 1,127,100 -2.7% Fines and Forfeitures 261,319 400,000 400,000 333,300 333,300 0.0% Other Revenues 1,744,795 1,469,100 1,474,100 1,401,064 1,302,300 -7.0% Total General Fund Revenues 94,566,375$ 87,826,346$ 88,315,589$ 88,809,971$ 88,174,190$ -0.7% FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 Est. vs. Proposed Expenditure Category Actual Adopted Revised Est Actuals Proposed % Change Personnel 64,342,661$ 67,844,928$ 67,917,117$ 65,803,090$ 68,917,416$ 4.7% Supplies & Materials 4,581,951 6,101,078 6,754,053 5,710,178 6,208,321 8.7% Services 8,978,871 11,742,805 19,922,660 14,497,905 12,459,147 -14.1% Reimbursed Expenditures (8,794,479) (9,131,814) (9,159,074) (9,098,934) (9,323,312) 2.5% Capital Outlay 43,597 306,500 469,000 365,977 306,500 0.0% Transfers to Other Funds 10,692,049 10,847,669 10,931,110 10,884,135 9,306,272 -14.5% Total General Fund Expenditures 79,844,650$ 87,711,166$ 96,834,865$ 88,162,351$ 87,874,344$ -0.3% *Revised Expenditures includes previously funded carryovers. 4 Over the past two years, the City has made two significant one- time payments, totaling $7.7 million, to CalPERS to pay down the outstanding unfunded accrued liability (UAL) obligations for the City’s pension. The City realized immediate savings for the next fiscal year’s UAL required payment and ongoing annual savings due to the revised amortization. The FY 202 4-25 budget includes putting $4.5 million aside from the FY 2022-23 surplus fund for retirement obligations. The exact use of those surplus funds will be determined by the City Council at a later date.
Moreover, the proposed budget recognizes changes in economic conditions and mitigates future potential deficits through identified efficiencies. Two proposed efficiencies are the elimination of the Worker’s Comp Supervisor and City Attorney Positions that became vacant due to retirements. It was determined that outsourcing the duties of these positions would provide a larger pool of resources along with cost savings.
To continue to address budgetary issues while complying with new state regulations, the proposed FY 2024-25 budget expands on water conservation projects that will result in significant water and cost-saving. These measures include the removal of large turf and other water-intensive landscaping and replacement with drought-tolerant plants and drip irrigation systems, such as the projects at the Simi Valley Civic Center and Tierra Rejada Road west of Madera Road.
The proposed FY 2024-25 Budget makes a significant effort to reinvest in the community by maximizing the investment into the City’s streets and roads infrastructure with a $9.1 million proposed budget, of which the General Fund contributes $2.75 million towards major and minor street rehabilitation programs, slurry seal and crack seal, bridge rehabilitations, repairs and replacement of deteriorating signage, and street tree removal where needed in the community.
In addition to reinvesting in community infrastructure, the proposed budget includes reinvesting in public safety through the reinstatement of the Traffic Motor O fficer Unit, which will pay dividends through safer streets and fewer traffic incidents. The proposed budget also includes a partnership between the Simi Valley Police Department and the County of Ventura to provide one full-time member of Ventura County Behavioral Health (“VCBH”) Rapid Integrated Support and Engagement (“RISE”) program to assist and provide care to Simi Valley’s vulnerable population through available resources and needed support.
General Fund Balance
The General Fund balance is estimated to be $55.9 million at the end of FY 2023-24. The Government Finance Officers Association (GFOA) recommends maintaining an unrestricted budgetary fund balance in a general fund of no less than two months (to mitigate current and future risks), or 17% of regular general fund operating revenues or regular general fund operating expenditures. The City’s $55.9 million fund balance far exceeds the two-month recommendation with more than six months or nearly 64% of the total balance of the $87. 8 million Proposed FY 202 4-25 General Fund operating expenditures.
5 The City maintains an AAA rating from the Standard and Poor’s rating agency.
Five-Year General Fund Projection
The Five-Year General Fund Financial Projection and related analyses show that the City continues implementing a structurally balanced budget. As the economy moves further away from the pandemic, the City expects a cooling of revenues in light of the actions of the Federal Reserve to raise interest rates. Economic conditions are expected to result inmore moderate revenue increases in the upcoming fiscal years. Currently, consumer spending has decreased as household savings dwindle or the ability to borrow reaches its limit due to increased interest rates by the Federal Reserve after inflation reached a high of 8% in 2022 and fell below 4% in 2023. In 2024, inflation has crept back up to 4%, and the percentage of household income spent on food is now at a very high level while sales tax producing activity such as vehicle purchases, consumer goods, and restaurant sales have all slowed.
While the City enjoyed a rise in sales tax revenue over the last several years due to the effects of the pandemic, the City also experienced healthy increases in property tax revenue due to a higher level of activity in not only the residential market but also the commercial/industrial market. However, there is a delayed impact of property tax increases as changes to property tax rolls occur over a year after the sale transaction. In the FY 2023-24 Budget, the City foresaw a slowdown in sales tax revenue, albeit not as abrupt, which will carry into FY 2024-25. In the real estate market, due to higher interest rates, both the residential market and the commercial/industrial market have slowed. The
REVISED ESTIMATED PROPOSED
ACTUAL BUDGET ACTUAL BUDGET
2022-23 2023-24 2023-24 2024-25
BEGINNING GENERAL GOV'T FUND BALANCE 58,903,609$ 65,572,231$ 65,572,231$ 55,885,962$ Operating Revenues 94,566,375$ 88,315,589$ 88,809,971$ 88,174,190$ Reserved for ARPA Grant Funds 4,355,893 - - - Reserved for Capital Projects 822,421 - - - Net Revenues 89,388,061$ 88,315,589$ 88,809,971$ 88,174,190$ Operating Expenditures 79,844,650$ 96,834,865$ 88,162,351$ 87,874,344$ Loan Forgiveness to Liability Fund - - - - Transfer to Transit Fund - - - - Transfer to Covid-19 Recovery Fund - - - - Net Expenditures 79,844,650$ 96,834,865$ 88,162,351$ 87,874,344$ Operating Surplus/(Deficit) 9,543,410$ (8,519,276)$ 647,620$ 299,846$ Transfer Out Previous Year's Surplus Funds 8,053,103$ 10,333,887$ 10,333,887$ ENDING GENERAL GOV'T FUND BALANCE 65,572,231$ 46,719,067$ 55,885,962$ 56,185,808$ 6 lack of available inventory exacerbates the slowdown in both markets. The pullback in property tax revenue will have a greater impact in FY 2025-26 as the City will see residual property tax revenue increases in FY 2024-25 due to prior transactions hitting the tax role.
The forecast shown below includes projections for most revenue types with a conservative 1%- 3% per year inflationary growth. Projections on the expenditure side include a 3% inflationary growth in personnel costs, a 3% growth in supplies and materials for FY 2025- 26, and a 2% growth each year thereafter. There is an approximately 1% growth in most other expenditure types. It is incumbent on all City staff to operate within the parameters of their prospective budget and to ensure th at the budget remains balanced moving forward.
Five-Year Capital Improvement Program
The CIP provides detailed information regarding capital improvement projects proposed for financing in FY 2024-25 and serves as a capital improvement spending plan for the subsequent four years. All projects listed in the CIP will not necessarily be funded as proposed; the City Council will consider all projects on a year-by-year basis in conjunction with the Proposed Budget and available funding.
A total of 124 projects, with an estimated five-year cost of $138,770,610, are contained in the Proposed CIP. Funding for FY 2024-25 is proposed for 44 projects in the amount of $33,852,610. Departments propose the balance of $ 104,918,000 for funding in FY 2025-26 to FY 2028-29.
ESTIMATED PROPOSED
ACTUAL ACTUAL ACTUAL BUDGET PROJECTION PROJECTION PROJECTION PROJECTION 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
REVENUES
Taxes And Franchises 71,205,622 74,464,375 75,039,905 75,445,725 77,709,097 80,040,370 82,441,581 84,914,828 Licenses And Permits 5,116,844 3,606,781 2,969,000 3,139,000 3,201,780 3,265,816 3,331,132 3,397,755 Fines And Forfeitures 275,599 261,319 333,300 333,300 336,633 339,999 343,399 346,833 Use Of Money & Property (183,377) 2,328,691 1,871,890 1,702,572 1,736,623 1,771,355 1,806,783 1,842,918 From Other Governments 483,175 472,942 612,956 473,916 478,655 483,442 488,276 493,159 Grants 236,190 554,928 362,994 362,994 370,254 377,659 385,212 392,916 Service Charges 1,597,619 1,108,623 1,158,652 1,127,100 1,149,642 1,172,635 1,196,088 1,220,009 Other Revenues 1,623,377 1,744,795 1,401,064 1,302,300 1,328,346 1,354,913 1,382,011 1,409,651 Transfers In 15,534,159 10,023,920 5,060,210 4,287,283 4,330,156 4,373,458 4,417,192 4,461,364 Total Revenues 95,889,208$ 94,566,375$ 88,809,971$ 88,174,190$ 90,641,186$ 93,179,646$ 95,791,674$ 98,479,434$
EXPENDITURES
Personnel 63,043,425 64,342,661 65,803,090 68,917,416 70,984,939 73,114,487 75,307,921 77,567,159 Supplies/Materials 5,129,191 4,581,951 5,710,178 6,208,321 6,394,570 6,522,462 6,652,911 6,785,969 Services 7,585,250 8,978,871 14,497,905 12,459,147 12,832,921 13,089,580 13,351,371 13,618,399 Capital Outlay 123,762 43,597 365,977 306,500 309,565 312,661 315,787 318,945 Transfers to Other Funds 18,553,829 10,692,049 10,884,135 9,306,272 9,399,335 9,493,328 9,588,262 9,684,144 Reimbursed Expenses (8,880,137) (8,794,479) (9,098,934) (9,323,312) (9,416,546) (9,510,711) (9,605,818) (9,701,876) Total Expenditures 85,555,320$ 79,844,650$ 88,162,351$ 87,874,344$ 90,504,785$ 93,021,806$ 95,610,434$ 98,272,740$ Net Surplus/( Deficit) 14,721,724$ 647,620$ 299,846$ 136,401$ 157,840$ 181,239$ 206,694$ Reserved for ARPA Grant
Funds and Capital Projects (5,178,314) - - - - - - Operating Surplus/(Deficit) 9,543,410$ 647,620$ 299,846$ 136,401$ 157,840$ 181,239$ 206,694$ Surplus Funds FY 2020-21 FY 2021-22 FY 2021-22 FY 2022-23 Transfer to Infrastructure
Investment Fund $3,221,241 $4,534,755 $4,534,755 4,571,705 Transfer to Retirement
Obligation Fund $3,221,241 $4,534,754 $4,534,754 4,571,705 Transfer to Contingency
Fund $1,610,621 $1,264,379 $1,264,379 400,000
7 Community Development Agency (CDA)
The process of dissolving the former Community Development Agency (CDA) is ongoing.
Successor Agency (former Community Development Agency) expenditures are limited by State law to recognized obligations in place prior to July 1, 2011. Staff members continue to process prior obligations and debt service under the Recognized Obligation Payment Schedule (ROPS) agreement with the State of California Department of Finance. The primary fund expense is the annual debt service and related costs for the former Agency’s 2003 Tax Allocation Bonds, which is $2.1 Million in FY 2024-25.
Staff in the Department of Environmental Services handle Housing Suc cessor Agency functions. At the time of dissolution in 2012, the Community Development Agency’s Housing Administration Fund was responsible for over $9.1 M illion in recognized obligations to provide developer loans to create affordable rental or ownership housing units. The Housing Successor Agency Fund (Fund 201) is projected to have a $3.6 million fund balance at the beginning of FY 2024-25 as a result of principal and interest received over the years from prior repaid loans, and these funds will continue to be utilized to encourage the creation of affordable housing in Simi Valley.
Transit Fund
The FY 202 4-25 Transit budget includes farebox revenues and state and federal grant funds and allocations. Transit farebox revenue budget is $326,650, slightly higher than the FY 2023-24 budget of $324,200. Grant funds and allocations are budgeted at
$9.2M, $348K more than the prior year’s budget, to cover increased operating expenses such as the payroll. In addition, the Transit budget includes $8.5M in funding for Capital Projects, significantly higher than the prior year ’s $2.6M as a r esult of Transit and Intercity Rail Capital Project (TIRCP) funding received this year to construct a new transit center and purchase of s ix electric vehicles.
Fixed-route and ADA/DAR service ridership declined dramatically during the 2020 pandemic. Although passenger r idership for fixed-r oute services improved by 49.8% for FY 2023–24 compared to FY 2020–21, it still has not fully recovered from its pr e- pandemic numbers. Furthermore, Dial-A-R ide (DAR) services increased by 139.1% from FY2020–2 1 and have surpassed their pre-p andemic figures by 19.9%. In an effort to continue increasing fixed-r oute ridership, staff is collaborating with Simi Valley Unified School Distric t to help promote the Youth Ride Free Program.
Additionally, the D epartment strives to introduce Microtransit services, which will help meet the needs of our ADA/DAR clients and other members of the general public who require transit services in particular parts of the city. Instead of depending on fixed- route services or booking in advance for ADA/DAR services, Microtransit aims to give users an on-demand service option. The Department intends to launch this service in FY 2024–25 once the new electric mini vans arrive from production.
The other objectives and achievements fulfilled by transit are increased productivity and efficiency of Dial-A- Ride services, as well as the purchase of two (2) CNG fixed- route buses and eight (8) CNG Dial -A-Ride vans. Furthermore, the Department received a $7,053,000 competitive State grant for the Civic Center Transit hub. 8 Transit Proposed Program of Projects (POP) for FY 2024-25
On December 19, 1988, the City Council established a policy to annually review the Simi Valley Transit proposed fiscal year budget as part of the City Council’s consideration of the Transit Program of Projects. The Transit Program of Projects (POP) provides the foundation for the City’s grant applications for federal funds, which offset the cost of operating the Simi Valley Transit System and capital projects.
Under Title 49 U.S.C. Chapter 53, the City of Simi Valley's Transit Division is eligible to apply for FTA grant funding under Section 5307 to assist with its FY 2024- 25 operating and capital expenditures. Following City Council approval, Simi Valley Transit’s approved POP will be forwarded t o the Ventura County Transportation Commission (VCTC), the City’s current designated recipient of FTA funds, who will conduct a public hearing for final approval and inclusion in the City’s FTA Section 5307.
The proposed POP allocates Simi Valley Transit’s FTA 5307 grant of $3,648,972, as indicated below. The POP also identifies $539,760 in 5307 grant funds, which will go directly to VCTC for countywide planning assistance funds.
Federal Grant Local Match
Planning Assistance
Countywide Planning 539,760 -
Operating Assistance
Simi Valley Transit 2,594,315 2,594,315
Capital Assistance
Preventive Maintenance 150,000 37,500
Non-Fixed Route ADA Paratransit 364,897 91,224
$ 3,699,623 $ 2,888,411
After City Council consideration, any adjustments to the POP will be made as appropriate.
A resolution authorizing the City Manager to execute and submit the filing of an application with the U.S. Department of Transportation, FTA, for operating, capital , planning, and preventive maintenance assistance funds under Title 49 U.S.C. Section 5307 is required and is included on page 16.
Sanitation Fund
The Sanitation financial system is comprised of an Operating Fund, a Replacement Reserve Fund, and a Plant Expansion Fund. The Operating Fund finances the day-to- day cost of operating the sanitation system. The Replacement Reserve Fund is used to finance the replacement of equipment and infrastructure used to collect and treat wastewater. Both funds are financed from user fees (service charges). The Plant Expansion Fund is financed from developer fees, and the revenue generated can only be used to expand the capacity of the sanitation system to serve new development adequately. Prior to FY 2022- 23, the Oper ating Fund and Replacement Reserve fund 9 were combined for reporting purposes in the Annual Budget. The funds are now reported on separately.
The Sanitation Operating Fund revenue is budgeted at $3 4 million, an increase of $1.3 million (4%) over the FY 2023-24 estimated actual. Expenses, excluding the transfer to the replacement fund, are budgeted at $20.7 million, an increase of $2.8 million (15.6%) above the FY 2023-24 estimated actual. This increase is mostly in salaries and benefits due to vacancies in the current fiscal year.
The Sanitation Replacement Reserve Fund is funding the capital projects and has a budget of $12.7 million in FY 2024-25 for new project and vehicle replacement expenses.
Based upon the City Council’s policy to establish a Replacement Reserve Fund, the target funding level of the Fund is six months of operating expenses and one year of average CIP expenses.
Both the operating fund and the replacement reserve fund are now holding money aside as reserves for unanticipated expenditures and emergencies as directed by City Council in December of 2019 when the new rate structure was adopted.
Waterworks District No. 8
Waterworks District No. 8 is made up of three funds, similar to the Sanitation Fund. As with the Sanitation Fund, both the Operating and Replacement Reserve F unds use the rates as their source of revenue. Prior to FY 2022- 23, the Operating Fund and Replacement Reserve fund were combined for reporting purposes in the Annual Budget.
The funds are now reported on separately.
The Waterworks Operating Fund is budgeted at $51. 5 million, an increase of $7 million (15.7%) over the FY 202 3-24 estimated actual. Expenses, excluding the transfer to the Replacement Fund, are budgeted at $48 million, an increase of $8.3 million (20.3%) above the FY 2023-24 estimated actual. This increase is mostly in salaries and benefits due to vacancies in the current fiscal year.
The Waterworks Replacement Reserve Fund is funding the capital projects and has a budget of $2.7 million in FY 2024-25 for new project and vehicle replacement expenses.
Based upon the City Council’s policy to establish a Replacement Reserve Fund, the target funding level is three months of operating expenses, 5% of com modity sales, and one year of average CIP expenses.
Both the Operating Fund and the R eplacement Reserve Fund are now holding money aside as reserves for unanticipated expenditures and emergencies as directed by City Council in December of 2019 when the new rate structure was adopted.
Planning Commission Review of the Capital Improvement Program
The Planning Commission, at its meeting on April 17, 2024, reviewed the program of capital improvement projects for conformance with the City of Simi Valley General Plan, as required under Government Code Section 65401. The Planning Commission adopted 10 Resolution No. SVPC 03-2024, finding that each proposed major public works project for FY 2024-25 is in conformance with the Simi Valley General Plan.
Personnel Updates
The following fourteen personnel changes are included for your consideration as part of the proposed FY 2024 -25 Budget. The maj ority of the requests are reclassifications of existing positions. In addition, there are three new position requests and a request to eliminate an unused and outdated job classification. The requests are located in the departments of Administrative Servi ces, City Manager’s Office, Public Works, and the Police Department.
Administrative Services
• The Administrative Services Department requests a reclassification of the Payroll Coordinator position to that of Senior Accountant. For the last two years, payroll duties have been successfully performed by the Senior Accountant role. This proposed change will make the reclassification permanent and will result in an estimated annual savings to the General Fund of $2,350.
If approved as recommended, this reclassification will be processed in the new fiscal year and will generate annual savings of $2,350 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The Administrative Services Department requests a reclassification of a Printer position to Support Services Worker. At the time the Printer position became vacant, the Department re- evaluated City needs due to the changes in technology. The Department determined the Support Services Worker position to be a better fit and it has been successfully filled as such since then. This proposed change will make the reclassification permanent and will result in an estimated annual savings to the General Fund of $3,152.
If approved as recommended, this reclassification will be processed in the new fiscal year and will generate annual savings of $3,152 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024- 25 budget . A separate resolution is included to eliminate the Printer classification and its related salary range, which is not likely to be used in the future.
• The Administrative Services Department requests to reclassify two of the five Accounting Technician I/II positions to Accounting Specialist. This change would provide for an internal promotional opportunity and create a mid- level step between the Accounting Technician series and the more advanced senior level accounting positions. This change is estimated to result in an annual cost of $70,262 to the General Fund.
If approved as recommended, an internal promotional process will be initiated in the new fiscal year to determine which positions will become Accounting Specialists resulting in the same number of staff within the Fiscal Division. The anticipated annual 11 cost will be $70,262 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
City Manager’s Office
• The City Manager’s Office is requesting a reclassification of a Deputy City Manager position to Assistant to the City Manager. Th e Assistant position provides a much needed additional level of executive support to the City Manager’s Office. Recently a recruitment to fill the position as an Assistant to the City Manager was successfully conducted. This proposed change will result in an estimated annual savings to the General Fund of $29,906.
If approved as recommended, the reclassificat ion of the position will result in an annual savings of $29,906 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The City Manager’s Office is requesting a reclassific ation of a Community Services Manager position to Senior Management Analyst. When the Community Services Manager position became vacant, the Office determined that City needs could be best met with a Senior Management Analyst position. Therefore, a recruitment was successfully conducted. This proposed change will result in an estimated annual cost to the General Fund of $1,491.
If approved as recommended, the reclassification of the position will result in an annual cost of $1,491 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The City Manager’s Office is requesting a reclassification of a Management Analyst position to a Management Assistant. The incumbent in the position was recently promoted to the classification of Management Assistant working a 50% full -time equivalent (FTE) schedule, reflecting the current needs of the Department. The Department is retaining the other 50% FTE to provide flexibility. T his proposed change will result in an estimated annual savings to the General Fund of $8,693.
If approved as recommended, the reclassification of the position will result in an annual savings of $8,693 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The City Manager’s Office requests a position reclassification from Workers’ Compensation Adjustor II to Human Resources Analyst. The day -to-day Workers’ Compensation work traditionally carried out by staff is being outsourced under contract. The reclassification of the position allows for both oversight of the contract work as well as provides flexibility in taking on tasks beyond Workers’ Compensation.
The proposed change will result in an estimated annual cost to the Workers’ Compensation Fund of $5,861.
If approved as recommended, the reclassification of the position will result in an annual cost of $5,861 to the Workers’ C ompensation Fund. The authorization and 12 budget authority for changes to this position are included in the proposed FY 2024-25 budget.
Public Works Department
• The Public Works Department requests a reclassification of the vacant City Engineer position to an Assistant Public Works Director position. The Department currently has one Assistant Public Works Director position budgeted and this request would create a second position. One of the two Assistant Public Works Director positions will oversee the Utilities functions and the other will oversee the Engineering and Environmental Compliance functions.
If approved as recommended, the reclassification will cost an additional $18,049 split amongst the General Fund ($6,137), the Sanitation Fund ($5,956) and the Waterworks Fund ($5,956). The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The Public Works Department is requesting a reclassification of a Maintenance Worker II position to Maintenance Worker III. The incumbent in the position has been filling the position at the higher level since 2020, reflecting the ongoing needs of the Department. This proposed change will result in an estimated annual cost to the General Fund of $7,089.
If approved as recommended, the reclass ification of the position will result in an annual cost of $7,089 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The Public Works Department requests an additional Mechanic I/II position within the Maintenance Services Division to maintain the many complex and specialized vehicles needed in daily City operations. This proposed change will cost an additional $115,951 annually to the General Fund.
If approved as recommended, the addition of a new Mechanic I/II position will cost an additional $115,951 from the General Fund. The authorization and budget authority for this new position is included in the proposed FY 2024-25 budget.
• The Public Works Department request s to reclassify one of three vacant Plant Operator I/II/III positions at the classification of Plant Operations Supervisor. By filling one of the positions at the Supervisor level, the Sanitation Division will be better able to meet operational needs and State requirements and provided a better career progression between levels. This proposed reclassification will cost an additional $5,469 annually to the Sanitation Fund.
If approved as recommended, the reclassification of an existing Plant Operator I/II /III position at Plant Operations Supervisor will cost an additional $5,469 from the Sanitation Fund. The authorization and budget authority for this position change is included in the proposed FY 2024-25 budget.
13 • The Public Works Department requests to reclassify four part-time (75% FTE) Transit Coach Operator positions to full-time positions. Due to the shortage of Transit Coach Operator applicants willing to accept part -time positions, the Transit Division was authorized by the City Manager to fill four part-time positions at full-time over the past year. The proposed change to these four positions will cost an additional $89,174 annually to the Transit Fund.
If approved as recommended, the conversion of the four Transit Coach Operator positions from part -time to full -time will cost an additional $89,174 from the Transit Fund. The authorization and budget authority for this position change is included in the proposed FY 2024-25 budget.
In addition to the above-noted actions requested by Public Works, there are additional studies proposed within this budget to review compensation between specified supervisors and subordinates within the Sanitation Division (funded through the Sanitation Fund), as well as a study for a potential job classification change and salary range for a Waterworks Inspector position within the Waterworks Division (funded through the Waterworks Fund) of the Public Works Department. Should the studies result in future recommended actions, they will be brought forward at the appropr iate time for consideration.
Police Department
• The Police Department requests to add an additional Property Technician (non- Sworn) position within the Professional Standards Bureau to maintain a larger and more complex property management system more efficiently. This proposed additional position will cost $100,480 annually to the General Fund.
If approved as recommended, the addition of a Property Technician position will result in an annual cost of $100,480 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
• The Police Department requests to add an additional Investigative Assistant (non- Sworn) position within the Detectives Bureau to maintain the evidence/propert y function to ensure the successful prosecution of criminal offenders and maintain appropriate service levels. This proposed additional position will cost $111,709 annually to the General Fund.
If approved as recommended, the addition of an Investigative Assistant position will result in an annual cost of $111,709 to the General Fund. The authorization and budget authority for changes to this position are included in the proposed FY 2024-25 budget.
Citizen Participation Meeting
A Citizen Participation meeting to review and discuss the Proposed Budget was held on May 22, 2024. Notice of the meeting was provided through a press release, information distributed through social media, and posting on the City’s website. City staff was in attendance to respond to questions from the public.
14 A summary of the comments at the meeting is attached to this staff report as Attachment A (page 23).
ALTERNATIVES
The following alternatives are available to the City Council/Boards of Directors/Board of Trustees. City Council must first adopt the Transit Program of Projects prior to adoption of the FY 2024-254 Annual Budget.
1. Approve the Simi Valley Transit FY 2024-25 Program of Projects (POP) to be forwarded to the Ventura County Transportation Commission (VCTC) for final approval and to be included in the City’s Federal Transit Administration (FTA) 49 U.S.C. Section 5307, Congestion Mitigation Air Quality (CMAQ), and Job Access Reverse Commute (JARC) grant applications;
2. Adopt the attached Resolution No. 2024- 22 authorizing the City Manager to execute and submit the filing of grant applications with the FTA for operating, capital, planning, and preventive maintenance assistance funds under 49 U.S.C.
Section 5307, CMAQ, and JARC;
3. Adopt the attached Resolution No. 2024-23 to delete the General Unit-designated classification and related salary range of Printer;
4. Review and modify, as outlined by Council, the FY 2024-25 Proposed Budget and Preliminary Five-Year Capital Improvement Program for FY 2024-25 to FY 2028- 29, incorporating the changes previously adopted for the Council on Aging and Cultural Arts Center funds;
5. Adopt the attached Resolution No. 2024-24/WWD-297-SA-13/PL-34 approving the FY 2024-25 Annual Budget and the Five- Year Capital Improvement Program for FY 2024-25 to FY 2028-29;
6. Provide staff with other direction.
Staff recommends Alternative Nos. 1-5.
SUGGESTED CITY COUNCIL/BOARDS MOTIONS
1. I move to approve the Simi Valley Transit FY 2024-25 Program of Projects to be forwarded to the Ventura County Transportation Commission; and
2. I move to adopt Resolution No. 2023-22 authorizing the City Manager to execute and submit the filing of grant applications with the FTA; and
3. I move to adopt Resolution No. 2024- 23 to delete the General Unit -designated classification and related salary range of Printer;
4. I move to adopt Resolution No. 2024-24/WWD-297/SA-13/PL-34 approving the FY 2024-25 Annual Budget and the Five- Year Capital Improvement Program for FY 2024-25 to FY 2028-29 incorporating the previously adopted budgets for the Cultural Arts Center and Council on Aging.
15 SUMMARY
T
he City Council/Boards of Directors/Trustees received the FY 2024-25 Proposed Budget and Five-Year Capital Improvement Program on May 15, 2024. Review and adoption of the FY 2024-25 Simi Valley Transit Program of Projects will be held concurrent with the review of the budget.
T
he City of Simi Valley is eligible to apply for FTA 49 U.S.C. Section 5307 and CMAQ funds, and if available, JARC funds, for Simi Valley Transit’s operating, capital, planning, and preventive maintenance for FY 2024-25. Upon City Council approval, Simi Valley Transit’s Program of Projects will be forwarded to the Ventura County Transportation Commission for final approval at a public hearing, and for inclusion in the City’s FTA grant applications. The City Council is also required to adopt a resolution authorizing the City Manager to execute and submit an application with the U.S. Department of Transportation, Federal Transit Administration for funding assistance under 49 U.S.C. Sections 5307, the CMAQ program, and the JARC program.
S
taff is recommending that the City Council/Boards of Directors/Trustees, after making any desired adjustments, approve the FY 2024-25 Transit Program of Projects, adopt a resolution approving application for CMAQ and JARC Transit funding, and adopt a resolution approving the FY 2024-25 Budget and Five- Year C apital Improvement Program for FY 2024-25 to FY 2028-29.
___
_________________________________
Brian Paul Gabler
City Manager/District Manager/
Executive Director/Executive Officer
P
repared by: Johanna Medrano, Deputy AS Director (Budget & Purchasing) INDEX Page
R
esolution No. 2024-22 – FTA ................................................................................ 16 Resolution No. 2024-23 – General Unit-Designated Job Class ............................... 18 Joint Resolution No. 2024-24/WWD-297/SA-13/PL-34– Approve the FY 2024-25 Annual Budget and the Five-Year Capital Improvement Program for FY 2024-25 to FY 2028-29 ...................................................................................... 20 Attachment A – Public Meeting Summary ............................................................... 23 RESOLUTION NO. 2024-22
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY AUTHORIZING THE FILING OF
APPLICATIONS WITH THE FEDERAL TRANSIT
ADMINISTRATION, AN OPERATING ADMINISTRATION OF
THE UNITED STATES DEPARTMENT OF
TRANSPORTATION, FOR FEDERAL TRANSPORTATION
ASSISTANCE AUTHORIZED BY TITLE 49 UNITED STATES
CODE CHAPTER 53 AND FOR ANY TITLE 23 UNITED
STATES CODE AND OTHER FEDERAL STATUTES
ADMINISTERED BY THE FEDERAL TRANSIT
ADMINISTRATION
W
HEREAS, the Federal Transit Administrator has been delegated authority to award financial assistance for a public transportation project; and W
HEREAS, the grant or cooperative agreement for Federal financial assistance will impose certain obligations upon the City and may require the City to provide the local share of the project costs; and
W
HEREAS, the City has or will provide all annual certification and assurances to the Federal Transit Administration required for the project.
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
S
ECTION 1. The City Manager (for the purposes of this resolution, the term “City Manager” includes the Interim City Manager, if any) or the City Manager’s designee is authorized to execute and file an application for Federal assistance on behalf of the City of Simi Valley with the Federal Transit Administration for Federal assistance authorized by Title 49 UnitedStateCode Chapter 53, Title 23 United States Code or other Federal statues authorizing a project administered by the Federal Transit Administration.
The City of Simi Valley has received authority from the Southern California Association of Governments, a designated recipient, to apply for urbanized Area Formula Program Assistance authorized by 49 U.S.C. 5307.
S
ECTION 2 . The City M anager or the City Manager’s designee is authorized to execute and file with its application(s) the annual certification and assurances and other document s the Federal Transit Administration requires before awarding a Federal assistance grant or cooperative agreement.
S
ECTION 3 . The City M anager or the City Manager’s designee is authorized to execute grant and cooperative agreements with the Federal Transit Administration on behalf of the City of Simi Valley.
16 RE S. NO. 2024-22
TRAN2217.RES.LS
SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED
and ADOPTED this 3rd day of June 2024.
A
ttest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
A
pproved as to Form: Approved as to Content:
Algeria R Ford, City Attorney Brian Paul Gabler, City Manager Ronald K. Fuchiwaki
Public Works Director
17 RESOLUTION NO. 2024-23
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY AMENDING RESOLUTION NO. 2023-31 TO
ELIMINATE THE GENERAL UNIT -DESIGNATED JOB
CLASSIFICATION AND RELATED SALARY RANGE OF
PRINTER, AND RESCINDING ALL PREVIOUS
RESOLUTIONS TO THE EXTENT THAT THEY ARE IN
CONFLICT HEREWITH
W
HEREAS, the City Council previously adopted Resolution No. 2023-31 to approve an updated Citywide Publicly Available Pay Schedule effective May 8, 2023; and W
HEREAS, the deletion of an outdated job classification of Printer, along with the related salary range has been proposed; and
W
HEREAS, the City Council finds and determines that it desires to amend Resolution 2023-31 to delete the job classification and related salary range of Printer.
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
S
ECTION 1. Resolution No. 2023-31 is hereby amended to delete the job classification and related salary range of Printer.
S
ECTION 2 . Those portions of Resolution No. 2023-31 and all prior resolutions are hereby rescinded to the extent that they are inconsistent with this resolution.
S
ECTION 3. The provisions of this resolution shall be effective as of July 1, 2024.
[CONTINUED ON FOLLOWING PAGE]
18 RE S. NO. 2024-23
2 SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED
and ADOPTED this 3rd day of June 2024.
A
ttest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
A
pproved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Brian Paul Gabler, City Manager Jennifer Gutierres
Deputy Human Resources Director
19 RESOLUTION NO. 2024-24
RESOLUTION NO. WWD-297
RESOLUTION NO. SA-13
RESOLUTION NO. PL-34
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SIMI VALLEY , BOARDS OF DIRECTORS OF VENTURA
COUNTY WATERWORKS DISTRICT NO. 8, SUCCESSOR
AGENCY TO THE CITY OF SIMI VALLEY COMMUNITY
DEVELOPMENT AGENCY, AND BOARD OF TRUSTEES FOR
THE SIMI VALLEY LIBRARY APPROVING THE FY 2024-25
ANNUAL BUDGET AND THE FIVE -YEAR CAPITAL
IMPROVEMENT PROGRAM FOR FY 2024-25 TO FY 2028-29
W
HEREAS, the City Manager / District Manager / Executive Director / Executive Officer has submitted the FY 2024-25 Proposed Budget and the Preliminary Five-Year Capital Improvement Program for FY 2024-25 to FY 2028-29 to the City Council / Boards of Directors / Board of Trustees for its review and consideration on May 15, 2024, in accordance with budget policies; and
W
HEREAS, a Citizens’ Participation meeting was conducted with staff on May 22, 2024, at which time members of the public were invited to voice their opinions on any budget items and provide ideas that they believe should be included in the FY 2024-25 Annual Budget; and
W
HEREAS, subsequent to providing the public an opportunity to submit written and oral comments, the City Council reviewed and modified, as appropriate, the FY 2024-25 Proposed Budget and Preliminary Five- Year Capital Improvement Program for FY 2024-25 to FY 2028-29; and
W
HEREAS, pursuant to Governmental Accounting Standards Board Statement No. 54, an action of the City Council is necessary to commit budget amounts in various funds for the specific purposes they are intended.
NO
W, THEREFORE, BE IT RESOLVED, by the City Council of the City of Simi Valley, Boards of Directors of Ventura County Waterworks District No. 8, Successor Agency to the Simi Valley Community Development Agency, and Board of Trustees of the Simi Valley Library as follows:
SECTION 1. The FY 2024-25 Annual Budget and Five- Year Capital Improvement Program for FY 2024-25 to FY 2028-29, on file with the City Clerk, are hereby approved.
S
ECTION 2. All budget amounts that are to be used for specific purposes, as evidenced by the approved budget document, and any amendments thereto, are committed to these specific purposes by action of the City Council. 20 R
ES. NO. 2024-24
RES. NO. WWD-297
RES. NO. SA-13
RES. NO. PL-34
SECTION 3. A General Fund Prudent Reserve, equivalent to 17% of budgeted expenditures, is hereby established. The Prudent Reserve is to be used to respond to catastrophic events (e.g., earthquakes, fires, floods, civil disturbances, etc.).
The City Manager or his/her designee is authorized to expend the reserved funds as necessary.
S ECTION 4. The expenditures and revenues for anticipated grants shall be included in the budget. Grants with uncertain funds shall be presented to City Council for approval. If approved, the program elements shall be adjusted, with approval of the City Manager, to the final amount of expenditures and revenues provided for in the grant.
S ECTION 5. The City Manager has authority to transfer appropriations within and between funds and between departments in any amount with justification from the Department.
SECTION 6. After each fiscal year is complete, all budgetary appropriations lapse, the only exceptions are grant fund appropriations and capital improvement project appropriations; carryover may be necessary, however, this is the exception and not the rule, and all budget appropriation carryovers must be approved by the Administrative Services Director and City Manager.
SECTION 7. The City Council hereby finds and determines that the planning and administrative expenses outlined in the FY 2024-25 budget for the Community Development Agency Housing Successor Agency Administration Fund are necessary for the production, improvement, or preservation of low and moderate income housing.
SECTION 8. In the case of customer usage based water purchase expenditures, if the customers usage/demand exceeds the Ventura County Waterworks District No. 8 FY 202 4-25 budgeted expenditure, the Board of Directors hereby authorizes the District Manager to increase the appropriation of water funds for the sole purpose of water purchases by Ventura County Waterworks District No. 8.
SECTION 9. H ousing program funds include expenditures and revenues funded through program income and recaptured funds generated from loan repayments previously appropriated by the City Council or grant allocations. The available program funds are determined by the recipient's financial capacity, which may exceed the FY 2024-25 budgeted revenues and expenditures. Therefore, the City Council authorized the City Manager to adjust the appropriations of Housing Program funds by an amount not to exceed the total program income and recaptured funds held in fund balance in FY 2024-25 for the sole purpose of supporting new housing activities , issuing new loans , and completing corresponding transfers for administrative costs, pursuant to comprehensive grant requirements.
21 R
ES. NO. 2024-24
RES. NO. WWD-297
RES. NO. SA-13
RES. NO. PL-34
SECTION 10. This Resolution shall take effect immediately upon its adoption.
SECTION 11. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED
and ADOPTED this 3rd day of June 2024.
A
ttest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of District Secretary/Agency Secretary/Board Simi Valley, California, Chair of the Secretary Ventura County Waterworks District No.
8, Successor Agency to the Simi Valley
Community Development Agency, and
President of the Simi Valley Library
Board of Trustees
A
pproved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney/ Brian Paul Gabler, City Manager/ District Counsel/Agency Counsel/General District Manager Executive Director/ Counsel Executive Officer
22 CITY OF SIMI VALLEY
MEMORANDUM
June 3, 2
024
TO: Cit
y Council
Board of Directors, Ventura County Waterworks District No. 8 FR
OM: Administrative Services Department
SUBJ
ECT: CITIZENS PARTICIPATION MEETING SUMMARY
On M
ay 22,2024, a citizen participation meeting was conducted to provide the community with an opportunity to voice opinions on budget items and submit ideas on items they believe should be included in the FY 2024-25 Proposed Budget. The meeting began at 5:30 p.m. and ended at 6:00 p.m. In attendance were staff members representing each City department, the Administrative Services Director, the City Manager, the Assistant City Manager, and members of the public.
Deput
y Administrative Services Director, Budget & Purchasing Johanna Medrano, and Budget Management Analyst Cynthia Orozco provided a PowerPoint presentation outlining the budget for FY 2024-25. Attendees were then asked if they had any questions or comments. Citizens made comments regarding the capital improvement projects and the purchase of electric City buses.
Wri
tten comments that were received are included at the end of this memo. The following is a summary transcription of the feedback and comments in the order received. • Ci
tizen #1 –
I will ask one. In the capital expenditure presentation, by the way, it’s an excellent presentation and all that; congratulations. One of the things that I noticed is that you have close to 200, 193, I believe, of capital projects for the next five years, and 69 of them, I think approximately 1/3, are not requesting any money. Are they just going to put them on the shelf and not allocate money or what is the thing that you have projects but no money to be spent?
Staff Comments –
That means that prior year’s funding was provided to those projects, and they are still active.
• Citizen #2 –
How can I express my concerns to the City Council regarding the purchase of elec
tric buses?
23 ATTACHMENT A
Staff Comments –
Your question will be added to the notes for this meeting and you can always email the City Council directly with any questions or comments you may have.
W
ith no further comments, attendees were thanked for their participation and told that the budget will be presented to City Council for adoption at the meeting of June 3rd.
Carolyn Johnson
Administrative Services Director
A
ttachments:
Teresa Jordan Comments (Exhibit A)
24 3152 Shad Court
Simi Valley, CA 93063
May 20, 2024
Ms. Johanna Medrano,
Budget Officer
Simi Valley City Hall
2929 Tapo Canyon Road
Simi Valley, CA 93063
Re: Public Budget Meeting on May 22, 2024.
Dear Ms. Medrano:
I have read the City’s Proposed Budget a couple of
times. For the FY 2024-25, instead of focusing on the
various amounts entered for the Departments, Funds,
Non-Departmental, etc. items, I’m forwarding observations, comments, questions, and suggestions on the document. When I first glanced the Proposed Budget, the first thought that came to mind was WOW talk about making a statement: BRIGHT ORANGE! The second thought was “Orange Is The New Black” (TV show). Thirdly, the Civic Center had an orange grove.
Ms. Medrano, I am opposed to the FY 2024-25 Proposed
Budget for the following reasons:
FY 2024-25 PROPOSED BUDGET
#1 - Pages 8 and 9, it is stated “The resulting
budget will only be presented for the City
Council’s consideration if it is structurally
balanced for the new fiscal year and into the
future”! Does this statement mean that if the
City of Simi Valley faces bankruptcy or any
other financial crisis, the residents, and the
business community would not be notified, and
the City Council would stay silent? That would
not be transparency!!!!!
Adopting and maintaining a structurally balance budget
ensures that annual ongoing operating revenues meet or
exceed ongoing operating expenses. This is a policy
framework established by the City Manager to guide the
25 2
administration of the City’s Budgetary/ fiscal functions in accordance with the budget as adopted by the City Council. #2 - Page 9, “Although consumer spending was still
very active in CY 2023...” change “CY” to “FY”.
The abbreviation CY (Current Year) is an accurate
statement.
#3 - Page 14, second paragraph, it is stated “...
the new electric min vans arrive...”, change
“min” to “mini”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#4 - Page 16, “Budgets are not adopted for the City’s
Agency Funds(deposits held by the City in a
trustee capacity).” Does “Agency Funds” refer
to City moneys, or do independent special
districts fall within the “Agency” umbrella?
Is this referring to the 2003 BONDS? Where is
the information for the deposits found, in
files in the City Clerk’s office, or in the
Administration Services Department, or other?
Agency funds are used to report resources held by the City in a custodial capacity and, as such, do not reflect City assets or liabilities. The City acts as an agent, or
intermediary, between parties. One example of this, which you mentioned in your question, is the 2003 Tax Allocation Refunding Bonds. Assessment districts are also considered agency funds. Financial information for agency funds can be found in the Annual Comprehensive Financial Report
(ACFR), specifically within the Combining Schedules and Statements of Fiduciary Net Position. In the most recent Fiscal Year 2023 ACFR, you will find this information on pages 145-150.
It is stated “Interim financial reports can be
generated on demand by operating departments
and are made available to the public upon
request.” Does a member of the public have to
submit a State of California Public Records
Act request first, or call City staff, or both?
Interim financial reports can be requested through a Public Records Act request with the City Clerk’s Office or submit an electronic request via the City’s website at:
https://www.simivalley.org/departments/city-manager-s-
office/city-clerk/public-records-request. Additionally, the 26 3
City’s treasurer provides a Monthly Financial Report
(accounting for all receipts, disbursements, and fund
balances), which is posted on the City’s website for
residents to view. Please visit our City’s Fiscal Service page at:
https://www.simivalley.org/departments/administrative-
services/fiscal-services-accounting/monthly-financial-
reports-unaudited
Under Conclusion, it is stated “The Proposed
Budget ensures Simi Valley will continue the
delivery of effective and efficient programs and
ensuring a fiscally sound and transparent
government.” There is no transparent government
when I cannot access the City’s website on my
computer(since September 2021 to the present),
when my April 18, 2024 letter on the April 22,
2024 public hearing(movie studio campus proposal)
and other constituents communication weren’t
included as an Agenda Item Supplemental, when the
story keeps changing regarding the El Rancho Simi
Cemetery District’s property tax funds(the latest
involves the CDA Successor Agency; the City
Council since January 30, 2012 serves as the
Successor Agency to the Simi Valley Community
Development Agency), when the City updated its
website one very important City Council video was
missing the second half(thus, public testimony
and Council members’ comments were lost), when
the requested language change to the FY 2022-23
ACFR regarding the interest on the Cemetery
District’s City loan being waived in my April 12,
2024 letter was not made, etc.!
#5 - Page 17, third paragraph, last sentence, it is
stated “...reoccurring savings and reframing...”,
change “reframing” to “refraining”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#6 - Page 18, the City of Simi Valley’s Organization
chart, states “CITY ATTORNEY(Appointed by City
Council)”. The information is contrary to what
is stated on Page 25, “7 FY2024-25 Eliminated
one City Attorney position”! Also, on Page 8
it is stated “Two such efficiencies in the
27 4
FY 2024-25 Proposed Budget are the elimination
of two staff positions, the City Attorney...
positions became vacant due to staff retirements
and it was determined that outsourcing the
majority of...duties would provide a larger pool
of resources along with cost savings. The City
has experienced superior legal service and
advice and counsel under the contract with Burke
Williams & Sorensen and the leadership of
Mr. Algeira Ford. While the City Attorney’s
Office FY 2024-25 Proposed Budget appears higher
than the prior fiscal year...” The chart must
be changed to the “CITY ATTORNEY’S OFFICE”, and
the information in parenthesis must reflect the
“contract” for these services!
On September 28, 2023, the City entered into a contract with the law firm of Burke Williams & Sorensen (Burke) for contract City Attorney services. On October 9, 2023, the City Council, by a vote of 5-0, formally appointed Mr.
Algeria Ford, an attorney with Burke, as the City’s City Attorney, and on December 4, 2023, the City Council
approved a contract with Burke for the provision of City Attorney and Legal Counsel services. The Proposed FY 2024- 25 Budget includes the elimination of one in-house City Attorney position. Nevertheless, the City Council appointed Mr. Ford as the City Attorney.
#7 - Page 25, “City Attorney”, change to “City
Attorney’s Office”.
City Attorney is accurate. Due to spacing, all Department names were abbreviated.
#8 - Page 31, please explain “Expenditures Loan
Forginess to Liability Fund”.
The Liability Fund had $2.3M in cash as a loan from the General Fund for an excess number of years. Due to the
long-term nature of the item, no repayment action, and a recommendation from the City’s auditors, the Loan
Forgiveness to Liability Fund was approved by the City
Council on February 25, 2019. Due to the debt being
forgiven this reduced the General Fund balance in FY 2018-
19. “Assigned Fund Balance CDA Loan Receivable **”,
where is the explanation for the “**”?
28 5
Notes. The footnote below was removed in error and will be added to the adopted budget. Thank you for pointing it out. ** Pursuant to AB 1584 (FY 2011-12 Legislative Session), the former General Fund loan to the Community Development Agency has been reclassified as a loan receivable.
Repayments were approved by the Department of Finance and commenced June 2014.
#9 - Page 47, “City Attorney - 1.9%” must be changed
to “City Attorney’s Office - 1.9%”.
City Attorney is accurate. Due to spacing, all Department names were abbreviated.
#10 - Page 48, “CITY ATTORNEY” must be changed to “CITY ATTORNEY’S OFFICE”.
City Attorney is accurate. Due to spacing, all Department names were abbreviated.
#11 - Page 60, 1st paragraph, last sentence, “...the
“City Attorney” change to “City Attorney’s Office”.
City Attorney is accurate. Due to spacing, all Department names were abbreviated.
#12 - Page 62, FY 24, 4th bullet point, “Continue”
change to “Continued”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#13 - Page 66, FY 25, 4th bullet point, all City
records must be retained, most especially the
files for the Cemetery District, property taxes,
the Royal Corto Assessment District, and the
State and Federal funding for the regional
stormwater detention basins!
The City Clerk’s Office goal referenced above is in line with the City of Simi Valley’s Joint Resolution NO. 2010- 02, WWD-231, CDA 2010-01, IDA 2010-01/ PFA 2010-01 adopting a Citywide Records Retention Schedule and Authorizing
Destruction of Certain City Records in accordance with
state law. The resolution was passed and adopted by the City Council on January 11, 2010. The City Clerk’s Office will soon be working to update the retention schedule, and your comments have been provided.
29 6
#14 - Page 79, “CITY ATTORNEY” cover page, change to
“CITY ATTORNEY’S OFFICE”!
City Attorney is accurate and kept consistent throughout the book.
#15 - Page 80, “CITY ATTORNEY” chart, change “CITY
ATTORNEY” to “CITY ATTORNEY’S OFFICE”, and “CITY
ATTORNEY(Appointed by City Council)”, change to
“CITY ATTORNEY’s Office(Contracted)”!
Same a response above. Appointed by City Council is
accurate.
#16 - Page 81, 2 “CITY ATTORNEY”, change to read “CITY
ATTORNEY’S OFFICE” per first words in the first
paragraph’s first sentence! Also change “City
Attorney” to “City Attorney’s Office”!
City Attorney is accurate and kept consistent throughout the book.
#17 - Page 82, “CITY ATTORNEY”, change to “CITY
ATTORNEY’S OFFICE”!
Same a response above.
#18 - Page 83, “CITY ATTORNEY”, change to “CITY
ATTORNEY’S OFFICE”; reflect the contract!
Same a response above.
#19 - Page 84, “CITY ATTORNEY”, change to “CITY
ATTORNEY’S OFFICE”!
Same a response above.
#20 - Page 132, FY24, 1st bullet point “Continue”,
change to “Continued”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#21 - Page 142, FY24, 6th bullet point “Continue”,
change to “Continued”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#22 - Page 144, FY24, 2nd bullet point “Submission of
the Watershed...”, change to “Submitted the
Watershed”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#23 - Page 155, why are there only 4 bars when there
are 5 funding entries listed?
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Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#24 - Page 158, FY24, 4th bullet point“Conduct”, change to “Conducted”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#25 - Page 159, 3rd paragraph, “...less than 4 and
half minutes.”, change to “4 and a half...”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#26 - Page 166, FY24, 7th bullet point “Continue”,
change to “Continued”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#27 - Page 181, is there a tentative date for
completion of the “Tri-cities Evacuation Plan”?
Who do I contact regarding the “VC Sheriff
Emergency Services County Evacuation Plan”?
The City of Moorpark (Moorpark) is heading up this project as the lead grant recipient. On September 6, 2023,
Moorpark’s City Council awarded a contract for the
development of a regional evacuation plan. Moorpark’s
contact person for this project is Roger Pichardo, Program Manager.
#28 - Page 299, FY24, 7th bullet point “Complete”,
change to “Completed”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#29 - Page 301, FY24, 5th bullet point “Removal of
groundwater”, change to “Removed groundwater”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#30 - Page 303, FY24, 1st bullet point “Optimization
of operating...”, change to “Optimized operating”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
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#31 - Page 323, FY24, 6th bullet point “Complete”,
change to “Completed”.
Noted. It will be reflected in the adopted budget. Thank you for pointing it out.
#32 - Page 340, “MA02 City Attorney(Confidential)”
change to “City Attorney’s Office(Confidential)”
since is contracted! Thought to all of the
budgetary text should have been given when the
decision was made to outsource this position! By
leaving the title “CITY ATTORNEY” throughout the
Proposed Budget, the City is making false
statements without any changes! As a constituent
of the Simi Valley City Council, I will not be
made a party to ill-advised, or ill-conceived
decisions/actions!
Same a response above.
Sincerely,
Teresa Jordan
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