Fund 240 - Measure H
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Other Revenues 59,891 - 29,164 - -
Use of Money & Property 265 - 600 - 600 600
From Other Agencies 302,826 57,615 - - - -
Revenue Total 302,826 117,771 29,764 - 600 600
Expenditures
Salaries & Benefits 23,917 - - - - -
Materials & Services 249,644 114,541 50,000 8,260 (42,500) 7,500 Expenditures Total 273,561 114,541 50,000 8,260 (42,500) 7,500 Revenues Less Expenditures 29,265 3,230 (50,000) 21,504 (6,900) Net Transfers 33,000 - - - -
Net Change in Fund Balance 62,265 3,230 (50,000) 21,504 (6,900) Beginning Fund Balance (57,776) 4,489 7,719 7,719 29,223 Ending Fund Balance 4,489 7,719 (42,281) 29,223 22,323
Fund Overview
FY2024-2025 Expenditures
This fund accounts for funding received and expenditures related to prevent and combat homelessness.
Funding will be used to fund the contract with L.A. CADA for homeless services. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 241 - CASP Certification & Training
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Use of Money & Property - - 2,500 - 2,600
From Other Agencies 21,413 24,333 22,610 22,610 22,840 230 Revenue Total 21,413 24,333 22,610 25,110 25,440 230
Revenues Less Expenditures 24,333 21,413 22,610 25,110 25,440 Net Transfers - - - - -
Net Change in Fund Balance 24,333 21,413 22,610 25,110 25,440 Beginning Fund Balance 83,459 107,792 129,205 129,205 154,315 Ending Fund Balance 107,792 129,205 151,815 154,315 179,755 Fund Overview
FY2024-2025 Expenditures
Pursuant to Government Code 4467 (b), the moneys in this fund shall be used for increased certified access specialist (CASp) training and certification within the City and to facilitate compliance with construction-related accessibility requirements, to include providing financial assistance to small businesses for construction of physical accessibility improvements. The highest priority shall be given to the training and retention of certified access specialists to meet the needs of the public in the City as provided in Section 55.53 of the Civil Code.
There are not any new expenditures planned for the current fiscal year. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 242 - Sportsplex
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Charges For Service 147,102 81,312 224,000 57,106 (167,000) 57,000 Other Revenues 5,851 900 800 2,400 2,400 1,600
Use of Money & Property 70,928 88,019 114,900 98,117 99,600 (15,300) Revenue Total 223,881 170,231 339,700 157,623 159,000 (180,700) Expenditures
Salaries & Benefits 400,127 232,548 511,263 566,813 574,668 63,405 Materials & Services 582,137 482,687 421,200 304,130 337,400 (83,800) Capital Assets 7,743 - 25,000 - (25,000) -
Expenditures Total 982,264 722,978 957,463 870,943 912,068 (45,395) Revenues Less Expenditures (758,383) (552,747) (617,763) (713,320) (753,068) Net Transfers 754,253 556,877 617,763 713,320 753,068
Net Change in Fund Balance (4,130) 4,130 - - -
Beginning Fund Balance (4,130) - - - -
Ending Fund Balance (4,130) - - - -
Fund Overview
FY2024-2025 Expenditures
Schedule of Positions
FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
Estimate
FY 2024-25
Proposed Change
Full-Time
Community Services Coord. 1 1 1 1 0
Maintenance Worker II 0 3 3 3 0
Maintenance Worker III 0 1 1 1 0
Full-Time Total 1 5 5 5 0
Limited-Service PT
Recreation Leader 8 6 6 6 0
Recreation Site Coordinator 0 1 1 1 0
Limited-Service PT Total 8 7 7 7 0
Grand Total 9 12 12 12 0
The City took over operations of the Sportsplex in 2021. This fund accounts for activity at the West Covina Sportsplex, a recreation facility which amenities include softball fields, a pavilion, playgrounds, and restaurants.
Expenditures fund staffing, maintenance and operations of the complex. Due to the start-up costs and necessary improvements to the complex, the Sportsplex is proposed to be subsidized by the General Fund in it's initial years. However, once established, it is expected to be self-sustaining. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 361 - Self Insurance General/Auto Liab
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Charges For Service 15,911 908 - - - -
Interdept Charges 2,201,598 2,201,600 3,127,700 3,127,700 4,469,600 1,341,900 Other Revenues 70,478 28 416 - - -
Revenue Total 2,287,987 2,202,536 3,127,700 3,128,116 4,469,600 1,341,900 Expenditures
Materials & Services 3,453,322 5,454,280 4,852,700 5,600,313 4,469,600 (383,100) Expenditures Total 3,453,322 5,454,280 4,852,700 5,600,313 4,469,600 (383,100) Revenues Less Expenditures (1,165,335) (3,251,744) (1,725,000) (2,472,197) - Net Transfers 1,148,243 2,422,115 1,725,000 2,472,197 - Net Change in Fund Balance (17,092) (829,629) - - -
Beginning Fund Balance 17,092 (829,629) - (829,629) (829,629) Ending Fund Balance (829,629) - (829,629) (829,629) (829,629) Fund Overview
FY2024-2025 Expenditures
Funding for general/auto liability claims, uninsured losses and insurance premiums is provided through a charge on all operating departments based on prior year claims expense.
The allocation percentages for FY2024-25 are proposed to remain the same.
FY2024-2025 expenses are based on Projected Ultimate Limited Losses for 2023/24 from latest Actuarial Report.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 363 - Self-Insurance Workers' Comp
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Interdept Charges
Interfund Charges 1,885,129 1,793,341 1,497,039 1,497,039 2,772,200 1,275,161 Interdept Charges Total 1,885,129 1,793,341 1,497,039 1,497,039 2,772,200 1,275,161 Revenue Total 1,885,129 1,793,341 1,497,039 1,785,327 2,772,200 1,275,161 Expenditures
Materials & Services
Actuarial Adjustment 7,008,598 (69,922) - - - -
Claim Paid 1,264,758 2,175,880 2,549,002 3,152,500 2,241,000 (308,002) Insurance 495,854 498,369 505,952 505,952 531,200 25,248 Miscellaneous Expenses 60,376 57,869 - - - -
Professional Services 35,519 - - - - -
Materials & Services Total 1,751,066 9,776,235 3,054,954 3,658,452 2,772,200 (282,754) Expenditures Total 1,751,066 9,776,235 3,054,954 3,658,452 2,772,200 (282,754) Revenues Less Expenditures 134,063 (7,982,894) (1,557,915) (1,873,125) - Net Transfers (448,243) 250,000 1,000,000 1,873,125 -
Net Change in Fund Balance (314,180) (7,732,894) (557,915) - - Beginning Fund Balance 2,555,597 2,241,417 (5,491,477) (5,491,477) (5,491,477) Ending Fund Balance 2,241,417 (5,491,477) (6,049,392) (5,491,477) (5,491,477) Fund Overview
FY2024-2025 Expenditures
Funding for workers’ compensation is derived from a percentage charge of all salaries with different rates levied for the various employee categories.
FY2024-2025 expenses are based on Projected Ultimate Limited Losses for 2023/24 from latest Actuarial Report.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 365 - Fleet Management
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Charges For Service 64,177 - 91,106 - - -
Interdept Charges 1,515,130 1,641,862 1,586,200 1,586,200 1,765,341 179,141 Other Revenues 5,257 - - - - -
Use of Money & Property 44,398 - - - - -
Revenue Total 1,564,785 1,706,039 1,586,200 1,677,306 1,765,341 179,141 Expenditures
Salaries & Benefits 81,555 83,270 2,800 67,059 4,964 2,164 Materials & Services 1,430,777 1,624,395 1,580,300 1,518,628 1,757,920 177,620 Allocated Costs 2,482 1,556 3,100 5,200 2,457 (643)
Expenditures Total 1,514,814 1,709,221 1,586,200 1,590,887 1,765,341 179,141 Revenues Less Expenditures 49,971 (3,182) 86,419 - -
Net Transfers - - - - -
Net Change in Fund Balance 49,971 (3,182) 86,419 - -
Beginning Fund Balance 178,550 228,521 225,339 225,339 311,758 Ending Fund Balance 228,521 225,339 225,339 311,758 311,758 Fund Overview
FY2024-2025 Expenditures
The Maintenance Division of the Public Services Department operates the fleet management function for the City which oversees the repair and disposal of City vehicles and other gasoline or diesel powered equipment. Revenue for the fleet management fund is generated through charges to operating departments. Each department that operates assigned vehicles is charged based on the departmental usage of the vehicles. Fleet management costs are reflected in each department’s lineitem budget.
Funding includes fuel and vehicle repair costs.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 367 - Vehicle Replacement
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Other Revenues 37,545 - - -
Use of Money & Property 4,820 - 5,700 - 6,000 6,000
Revenue Total 42,365 - 5,700 - 6,000 6,000
Expenditures
Capital Assets 79,842 310,190 445,991 445,991 200,000 (245,991) Expenditures Total 79,842 310,190 445,991 445,991 200,000 (245,991) Revenues Less Expenditures (79,842) (267,825) (445,991) (440,291) (194,000) Net Transfers 142,342 714,000 375,400 375,400 -
Net Change in Fund Balance 62,500 446,175 (70,591) (64,891) (194,000) Beginning Fund Balance (62,452) 446,223 48 446,223 381,332 Ending Fund Balance 446,223 48 375,632 381,332 187,332
Fund Overview
FY2024-2025 Expenditures
Range Past Useful Life
Number of
Assets
26-30 years 2 73,200
21-25 Years 3 473,300
16-20 years 15 1,741,300
11-15 years 34 2,234,900
6-10 years 47 4,233,800
1-5 years 63 6,585,800
Less than 1 year 7 282,800
Grand Total 171 $15,625,100
This fund accounts for the replacement of vehicles to update the fleet and save on maintenance costs.
Appropriations have been set aside for new equipment and vehicles that cannot be purchased with AQMD funds. The City currently has over $15.6 million in replacement needs.
Total Estimated
Replacement Cost $
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 368 - Retirement Health Savings Plan
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Use of Money & Property 867 5,323 1,990 7,100 7,500 5,510 Revenue Total 867 5,323 1,990 7,100 7,500 5,510
Expenditures
Salaries & Benefits 3,900 - 4,000 4,000 4,100 100
Expenditures Total 3,900 - 4,000 4,000 4,100 100
Revenues Less Expenditures 867 1,423 (2,010) 3,100 3,400 Net Transfers - - - - -
Net Change in Fund Balance 867 1,423 (2,010) 3,100 3,400 Beginning Fund Balance 345,368 346,235 347,658 347,658 350,758 Ending Fund Balance 346,235 347,658 345,648 350,758 354,158 Fund Overview
FY2024-2025 Expenditures
This fund accounts for the set-aside lump sum benefits for retiring employees.
There are not any new expenditures planned for the current fiscal year. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 375 - Police Enterprise
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Charges For Service 43 - - - - -
Sales 916,416 686,731 647,200 647,200 743,600 96,400
Use of Money & Property 429 30 80 - (80) -
Revenue Total 916,888 686,761 647,280 647,200 743,600 96,320 Expenditures
Salaries & Benefits 129,639 134,869 133,798 133,798 (106,494) 27,304 Materials & Services 66,705 80,197 83,800 83,800 85,000 1,200 Allocated Costs 523,568 465,168 468,400 468,400 576,500 108,100 Expenditures Total 719,912 680,234 685,998 685,998 688,804 2,806 Revenues Less Expenditures 196,976 6,527 (38,718) (38,798) 54,796 Net Transfers - - - - -
Net Change in Fund Balance 196,976 6,527 (38,718) (38,798) 54,796 Beginning Fund Balance (55,030) 141,946 148,473 148,473 109,675 Ending Fund Balance 141,946 148,473 109,755 109,675 164,471 Fund Overview
FY2024-2025 Expenditures
This fund accounts for the computer services provided by the Police Department to other public safety agencies for a fee. The programs are marketed to both public and private agencies. The program also provides these products and services to the West Covina Police Department.
Funding is for Computer Aided Dispatch and Records Management System (CAD/RMS) services, in partnership with a CAD/RMS Company.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 810 - Redevelopment Obligation Ret.
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Property Tax 5,427,012 3,151,490 2,583,344 2,583,344 2,583,344 - Use of Money & Property 18,594 124,095 14,600 57,300 33,600 19,000 Revenue Total 5,445,606 3,275,585 2,597,944 2,640,644 2,616,944 19,000 Expenditures
Salaries & Benefits - - - 2,371 - -
Materials & Services 2,311,720 107,864 128,702 128,702 120,000 (8,702) Debt Service 1,876,851 1,640,058 1,441,906 1,532,609 1,307,856 (134,050) Expenditures Total 4,188,571 1,747,922 1,570,608 1,663,682 1,427,856 (142,752) Revenues Less Expenditures 1,257,035 1,527,663 1,027,336 976,962 1,189,088 Net Transfers (2,113,270) (1,611,426) (1,681,880) (1,681,880) (1,679,295) Net Change in Fund Balance (856,235) (83,763) (654,544) (704,918) (490,207) Beginning Fund Balance 5,143,404 4,287,169 4,203,406 4,203,406 3,498,488 Ending Fund Balance 4,287,169 4,203,406 3,548,862 3,498,488 3,008,281 Fund Overview
FY2024-2025 Expenditures
ROPS Line Item # Amount
3 1,429,295
10 100,000
12 250,000
45 8,000
60 200
117 1,000
119 2,000
140 1,295,156
141 1,500
144 20,000
3,107,151
(422,204)
2,684,947
2017 Tax Allocation Refunding Bonds
2017 Tax Allocation Refunding Bonds
Anticipated/Existing Litigation
Total RPTTF Approved for Distribution
RPTTF Authorized including Administrative Costs
ROPS 21-22 Prior Period Adjustment (PPA)
SA Administrative Budget
1998 - 2006 Bonds
Special Assessments on RDA-owned parcels
Bond Disclosure
Interim Arbitrage Report
This fund tracks Redevelopment Property TaxTrust Fund (RPTTF) funds received from the State in relation to redevelopment agencies. Expenditures are incurred on allowable expenses approved by the Department of Finance.
Funding includes paying off allowable expenditures and debt payments relating to the Successor Agency, as approved by the Department of Finance. Below is the Recognized Obligation Payment Schedule (ROPS) for the next fiscal year.
Obligation Name
2006 Lease Revenues Bonds
CSS - CFD
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 815 - Successor Agency Admin.
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Expenditures
Salaries & Benefits 71,845 68,733 52,242 52,968 58,313 6,071 Materials & Services 41,354 47,374 40,000 40,000 46,000 6,000 Expenditures Total 113,199 116,107 92,242 92,968 104,313 12,071 Revenues Less Expenditures (113,199) (116,107) (92,242) (92,968) (104,313) Net Transfers 113,199 116,107 90,238 92,968 104,313
Net Change in Fund Balance - (2,004) - - -
Beginning Fund Balance - - - - -
Ending Fund Balance - (2,004) - - -
Fund Overview
FY2024-2025 Expenditures
The Successor Agency Administation Fund is used to keep track of administrative costs relating to final disbursement and management of the Successor Agency.
Successor Agency has projected expenditures for personnel costs and overhead charges to the City, as approved by the Department of Finance.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Fund 820 - Successor Housing Agency
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Other Revenues 20,100 169,200 - - - -
Use of Money & Property 335,322 446,194 72,000 165,700 174,000 102,000 Revenue Total 355,422 615,394 72,000 165,700 174,000 102,000 Expenditures
Salaries & Benefits 513,174 663,032 416,848 493,593 363,786 (53,062) Materials & Services 371,914 206,814 564,948 564,948 520,670 (44,278) Expenditures Total 885,088 869,846 981,796 1,058,541 884,456 (97,340) Revenues Less Expenditures (529,666) (254,452) (909,796) (892,841) (710,456) Net Transfers (33,000) - - - -
Net Change in Fund Balance (562,666) (254,452) (909,796) (892,841) (710,456) Beginning Fund Balance 24,008,322 23,445,656 23,191,204 23,191,204 22,298,363 Ending Fund Balance 23,445,656 23,191,204 22,281,408 22,298,363 21,587,907 Fund Overview
FY2024-2025 Expenditures
This fund is used to account for assets and related income received from the former Successor Agencies. Due to Assembly Bill X1 26, The West Covina Community Development Commission was dissolved and the Housing Authority accepted the role as Successor Housing Agency. The primary purpose of the Authority is to develop affordable housing for families of low and moderate income with in the City.
Expenditures will be used for Housing Element update, Housing Preservation home loans, graffiti control and personnel.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
Authority
The City Council approves the total number of full-time positions and classification of employees by review and consideration of this schedule through the budget process. Additionally, no increase shall be made to this number of full-time positions without City Council approval. However, the City Manager is authorized to transfer such positions within existing position classifications and reorganize departments under the City Manager’s authority, if in the City Manager’s judgment, such actions will result in a higher degree of efficiency of overall operations of the City. Limited service and part-time positions may be adjusted to maintain a set number of hours.
Summary of Changes
In FY 2023-24, the Council approved a reorganization of departments, each with a director overseeing each department. The new organizational chart included three new classifications: Community Services Deputy Director, Community Development Deputy Director, and a Project Manager.
Administration: Economic Development was moved under Administration and the Public Services Manager, previously under Public Services, was moved and reprogrammed to an Assistant to the City Manager. An Assistant City Manager position was downgraded to a Deputy Director under Community Services.
Community Development: A Project manager was added, and the Planning Manager position was upgraded to a Deputy Director.
Community Services: An Administrative Assistant II position was reprogrammed to a Coordinator and a Deputy Director was added.
Finance: Human Resources was moved to Finance and the HR Director position was downgraded to a Technician.
Police: A User Support Specialist position was eliminated under the West Covina Service Group.
Summary of Positions
FY 2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Full-Time
Sworn 173 172 172 172 172 0
Non-Sworn 127 144 144 144 144 0
Subtotal Full-Time 300 316 316 316 316 0
Part-Time
Limited-Service PT 64 64 60 61 60 -1
Part-Time 35 27 28 31 31 0
Subtotal Part-Time 99 91 88 92 91 -1
Grand Total 399 407 404 408 407 -1
Admin.
City
Clerk
Code
Enforcement
Comm.
Dev.
Comm.
Services Finance Fire Police
Public
Works
Grand
Total
Full-Time Sworn 70 102 172
Full-Time 8 2 6 7 9 19 5 48 40 144
Part-Time 1 7 3 1 4 1 10 4 31
Limited-Service PT 51 9 60
Grand Total 8 3 13 10 61 23 76 169 44 407
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Administration
Full-Time
Assistant City Manager 2 2 2 2 1 0
Asst. to the City Manager 0 0 0 1 1 -1
City Manager 1 1 1 1 1 0
Econ Dev Housing Manager 1 1 1 1 1 0
Econ Dev Project Coordinator 1 1 1 2 1 -1
Econ Dev Project Manager 0 0 1 0 1 1
Economic Dev Specialist 1 1 0 0 0 0
Exec Assistant To City Manager 1 1 1 1 1 0
Sr Administrative Assistant 1 1 1 1 1 0
Full-Time Total 8 8 8 9 8 -1
Administration Total 8 8 8 9 8 -1
City Clerk
Full-Time
Assistant City Clerk 1 1 1 1 1 0
Deputy City Clerk 1 1 1 1 1 0
Full-Time Total 2 2 2 2 2 0
Part-Time
Office Aide II 1 1 1 1 1 0
Part-Time Total 1 1 1 1 1 0
City Clerk Total 3 3 3 3 3 0
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Code Enforcement
Full-Time
Code Enforcement Director 0 0 1 0 1 1
Code Enforcement Manager 1 1 0 1 0 -1
Code Enforcement Officer 0 4 4 4 4 0
Code Enforcement Supervisor 1 1 1 1 1 0
Full-Time Total 2 6 6 6 6 0
Part-Time
Code Enforcement Officer 14 6 7 6 7 1
Part-Time Total 14 6 7 6 7 1
Code Enforcement Total 16 12 13 12 13 1
Community Development
Full-Time
Administrative Assistant I 1 1 2 2 2 0
Comm. Dev. Deputy Director 0 0 0 1 1 -1
Planning Assistant 1 1 1 1 1 0
Planning Associate 1 1 1 1 1 0
Planning Manager 1 1 1 0 0 1
Project Manager 0 0 0 1 1 -1
Sr Administrative Assistant 2 2 1 1 1 0
Full-Time Total 6 6 6 7 7 -1
Part-Time
Office Aide III 1 1 1 1 1 0
Planning Aide 0 1 1 1 1 0
Planning Intern 1 1 1 1 1 0
Part-Time Total 2 3 3 3 3 0
Community Development Total 8 9 9 10 10 -1
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Community Services
Full-Time
Administrative Assistant I 1 1 1 1 1 0
Administrative Assistant II 1 1 1 0 0 1
Comm Services Deputy Director 0 0 0 0 1 0
Community Services Coordinator 4 4 3 5 5 -2
Head Cook 1 1 1 1 1 0
Office Assistant II 1 1 1 0 0 1
Public Services Manager 1 1 1 0 0 1
Recreation Services Supervisor 0 0 1 1 1 0
Full-Time Total 9 9 9 8 9 1
Part-Time
Assistant Cook 1 1 1 1 1 0
Part-Time Total 1 1 1 1 1 0
Limited-Service PT
Day Care Director 3 3 3 3 3 0
Day Care Teacher 5 5 3 5 3 -2
Office Aide I 1 1 1 0 1 1
Recreation Assistant 1 1 0 0 0 0
Recreation Leader 38 38 35 35 35 0
Recreation Site Coordinator 9 9 9 9 9 0
Limited-Service PT Total 57 57 51 52 51 -1
Community Services Total 67 67 61 61 61 0
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Finance
Full-Time
Account Clerk 1 1 1 0 0 1
Accountant 2 2 2 2 2 0
Accounting Technician II 0 0 0 2 2 -2
Administrative Assistant II 1 1 0 0 0 0
Assistant Finance Director 1 1 1 1 1 0
Computer Services Technician 1 2 1 1 1 0
Finance Director 1 1 1 1 1 0
GIS Analyst 0 0 1 1 1 0
Human Resources Analyst I 0 0 1 1 1 0
Human Resources Director 1 1 1 1 0 0
Human Resources Manager 1 1 1 1 1 0
Human Resources Technician 1 1 0 0 1 0
Information Tech Analyst I 1 1 1 1 1 0
Information Technology Manager 1 1 1 1 1 0
Payroll Specialist 2 2 2 2 2 0
Purchasing Manager 1 1 1 1 1 0
Senior Account Clerk 1 1 1 0 0 1
Senior Accountant 1 1 1 1 1 0
Sr Administrative Assistant 1 1 1 1 1 0
Sr. Human Resources Technician 0 0 1 1 1 0
Full-Time Total 18 19 19 19 19 0
Part-Time
Cable Production Assistant 1 1 1 1 1 0
Intern - It 2 1 1 1 1 0
Management Analyst I 1 0 0 0 0 0
Office Aide III 0 1 1 1 1 0
Sr Communications Technician 1 1 1 1 1 0
Part-Time Total 5 4 4 4 4 0
Finance Total 23 23 23 23 23 0
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Fire
Full-Time Sworn
Assistant Fire Chief 3 3 3 3 3 0
Fire Captain 16 15 15 15 15 0
Fire Chief 1 1 1 1 1 0
Fire Engineer 15 15 15 15 15 0
Firefighter 9 9 9 9 9 0
Firefighter/Paramedic 27 27 27 27 27 0
Full-Time Sworn Total 71 70 70 70 70 0
Full-Time
Administrative Aide 2 2 2 2 2 0
Fire Protection Specialist 1 1 1 1 1 0
Management Analyst I 0 1 1 1 1 0
Sr Administrative Assistant 1 1 1 1 1 0
Full-Time Total 4 5 5 5 5 0
Part-Time
Fire Protection Specialist 1 1 1 2 1 -1
Part-Time Total 1 1 1 2 1 -1
Fire Total 76 76 76 77 76 -1
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Police
Full-Time Sworn
Corporal 17 17 17 17 17 0
Lieutenant 6 6 6 6 6 0
Police Captain 2 2 2 2 2 0
Police Chief 1 1 1 1 1 0
Police Officer 54 54 58 58 58 0
Police Officer Recruit 9 9 5 5 5 0
Sergeant 13 13 13 13 13 0
Full-Time Sworn Total 102 102 102 102 102 0
Full-Time
Code Enforcement Supervisor 1 1 1 1 1 0
Communications Manager 1 1 1 1 1 0
Communications Supervisor 4 4 4 4 4 0
Community Services Officer 8 8 8 8 8 0
Criminal Justice Res Analyst I 1 1 1 1 1 0
Forensic Specialist Supervisor 1 1 1 1 1 0
Jailer 6 6 6 6 6 0
Lead Jailer 1 1 1 1 1 0
Police Admin Svcs Manager 1 1 1 1 1 0
Police Records Manager 1 1 1 1 1 0
Police Records Specialist I 3 3 3 3 3 0
Police Records Specialist II 4 4 4 4 4 0
Police Records Supervisor 0 1 1 1 1 0
Public Safety Dispatcher 8 8 8 8 8 0
Sr Administrative Assistant 2 2 2 2 2 0
Sr Communications Operator 4 4 4 4 4 0
User Support Specialist 1 1 1 0 0 1
Victim Advocate 1 1 1 1 1 0
Full-Time Total 48 49 49 48 48 1
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Part-Time
Administrative Aide 3 3 0 0 0 0
Office Aide III 2 2 2 2 2 0
Pd Lieutenant - Level 1 Reserv 1 1 1 1 1 0
Pd Officer - Level 1 1 1 1 1 1 0
Pd Reserve Commander 1 1 1 1 1 0
Pd Reserve Sergeant - Level 1 1 1 1 1 1 0
Police Background Investigator 0 0 3 3 3 0
Sr Communications Operator 1 1 1 1 1 0
Part-Time Total 10 10 10 10 10 0
Limited-Service PT
Police Cadet 7 7 9 9 9 0
Limited-Service PT Total 7 7 9 9 9 0
Police Total 167 168 170 169 169 1
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Schedule of Positions
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25 Change
Public Works
Full-Time
Administrative Assistant II 1 1 1 1 1 0
Building Maintenance Leadworker 1 1 1 1 1 0
Electrician I 1 1 1 1 1 0
Electrician II 1 1 1 1 1 0
Equipment Operator 1 1 1 1 1 0
Fleet Services Coordinator 0 0 1 0 1 1
Maintenance Leadworker 0 2 2 2 2 0
Maintenance Svcs Coordinator 3 3 2 3 2 -1
Maintenance Worker II 17 22 22 22 22 0
Maintenance Worker III 1 4 4 4 4 0
Management Analyst I 1 1 1 1 1 0
Public Services Superintendent 1 1 1 1 1 0
Public Works Deputy Director 1 1 1 1 1 0
Senior Maintenance Worker 1 1 0 1 0 -1
Street Maintenance Supervisor 0 0 1 0 1 1
Full-Time Total 30 40 40 40 40 0
Part-Time
Maintenance Assistant 1 1 1 1 1 0
Office Aide I 0 0 0 3 3 -3
Part-Time Total 1 1 1 4 4 -3
Public Works Total 31 41 41 44 44 -3
Grand Total 399 407 404 408 407 -4
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
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__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Glossary of Terms
Actuarial Valuation - The determination, as of a valuation date of the Normal Cost, Accrued liability, and related actuarial present values for a pension plan or other long-term liability.
Appropriation - Legal authorization granted to the City Manager by the City Council to expend monies, and/or to incur legal obligations for specific departmental purposes. An appropriation is usually limited in amount, as well as to the time when it may be expended.
Assessed Valuation - A dollar value placed upon real estate or other property by Los Angeles County as a basis for levying property taxes.
Balanced Budget - A budget in which current revenues equal recurring expenditures.
Beginning Fund Balance - Fund balance available in a fund at the end of the prior fiscal year for use in the following fiscal year.
Bond - A city may raise capital by issuing a written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, together with periodic interest at a specific rate.
Budget Amendment - A revision of the adopted budget that, when approved by the City Council, replaces the original provision. Budget amendments occur frequently throughout the fiscal year, as spending priorities shift.
Budget Message - A general discussion of the proposed budget as presented in writing by the City Manager to the City Council. The message contains an explanation of the principal budget items and summarizes the proposed budget relative to the current year adopted budget.
Capital Improvement Program - A financial plan of proposed capital improvement projects and the means of financing them for a given period of time.
Capital Expenditures - A budget category which budgets all equipment having a unit cost of more than $5,000. Capital outlay items are budgeted in the operating budget.
Cash Basis of Accounting - A method of accounting in which revenues are recorded only when cash is received, and expenditures are recorded only when payments are made. Since payments can be delayed to the next fiscal year, a cash basis can result in an inaccurate picture of the financial condition of a fund.
To be in conformance with Generally Accepted Accounting Principles (GAAP), local governments must use the accrual basis, rather than the cash basis of accounting.
Chart of Accounts - A chart that assigns a unique number to each type of transaction and to each budgetary unit in the organization. The chart of accounts provides a system for recording revenues and expenditures that fits the organizational structure.
Debt Service - Annual principal and interest payments owed on money that has been borrowed.
Department - An organizational unit comprised of divisions or programs. It is possible for a department to be comprised of only one division.
Disbursement - Payment for goods or services that have been delivered and invoiced.
Division - An organizational unit consisting of programs and/or activities within a department which furthers the objectives of the City Council by providing services or products. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Glossary of Terms
Encumbrance - Financial commitments related to unperformed contracts for goods or services for which part of an appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated.
Enterprise Fund - A type of fund established to account for the total costs of those governmental facilities and services which are operated in a manner similar to private enterprises. These funds are entirely or predominately self-supporting.
Fiscal Year - A twelve-month period of time to which the budget applies. For the City of West Covina, it is July 1 through June 30.
Fund - An independent fiscal and accounting entity used to record all financial transactions related to the specific purposes for which the fund was created. There are five major types of funds: General, Special Revenue, Capital Projects, Enterprise Funds, and Fiduciary Funds.
Fund Balance - The amount of financial resources immediately available for use. Generally, this represents an excess of current assets over current liabilities.
Gann Appropriations Limit - Article XIIIB of the State constitution was amended by Proposition 4 (Gann initiative) in 1979. Article XIIIB limits growth in the spending of tax proceeds appropriated in the “base year” of 1978-79 times the product of the allowable annual percentage change in a cost-of-living factor and the allowable annual percentage change in a population change factor. The cost-of-living factor is the larger of the annual percentage change in the State per capita personal income or the annual percentage change in the local non-residential assessed valuation due to new construction. The population change factor is the larger of the annual percentage change of the jurisdiction’s population or the annual percentage change of the county in which the jurisdiction is located.
GASB 68 - Statement No. 68 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting and financial reporting for pensions. GASB 68 replaces GASB 27 effective the first fiscal year beginning after June 15, 2014.
Generally Accepted Accounting Principles - Uniform minimum standards used by state and local governments for financial recording and reporting; established by the accounting profession through the Governmental Accounting Standards Board (GASB).
General Fund - The primary fund of the City used to account for all revenues and expenditures of the City not legally restricted as to use. Examples of departments financed by the General Fund include the City Council, Finance, Police and Fire Departments.
Grant - Contributions or gifts of cash or other assets from another governmental entity to be used or expended for a specific purpose, activity, or facility.
Infrastructure - The underlying foundation or basic framework of a system or organization, such as the roads, sewers, water lines, and storm drains.
Interfund Transactions/Transfers - These budgetary transactions consist of quasi-external transactions which would be treated as revenues and expenditures if they involved organizations external to the governmental unit, reimbursements of expenditures initially made in one fund which are attributable to another fund, and operating transfers where monies are appropriated from one fund to another fund to reimburse expenses which are of benefit to the first fund. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Glossary of Terms
Quarterly Financial Reports - Quarterly comparisons of budgeted with actual revenues and expenditures to date. These reports provide decision makers with early warning of impending expenditure overruns or revenue shortfalls.
Modified accrual basis of accounting - A form of accrual accounting in which (1) the expenditures are recognized when the goods or services are received and (2) revenues, such as taxes, are recognized when measurable and available to pay expenditures in the current accounting period.
Operating Budget - A financial, programmatic and organizational plan for furthering the goals of the City Council through the departments of the City, which does not include one-time capital improvement projects.
Performance Budget - A budget that includes (1) performance goals and objectives (2) demand, workload, efficiency, and effectiveness measures for each government program.
Performance Measures - Indicators used in budgets to show, for example, (1) the amount of work accomplished, (2) the efficiency with which tasks were completed, and (3) the effectiveness of a program.
Purchase Order - An agreement to buy goods and services from a specific vendor, with a promise to pay on delivery.
Reimbursements - Payments of amounts remitted on behalf of another party, department, or fund. They are recorded as expenditures or expenses in the reimbursement fund and as reductions of the expenditure or expense in the fund that is reimbursed.
Reserve - An account that is used to earmark a portion of the fund balance as legally segregated for a specific use.
Salary Savings - The reduced expenditures on salaries that result from department restructuring or keeping positions vacant.
Unassigned Fund Balance - Money left over from prior years that is not committed for other purposes and can be allocated in the upcoming budget.
Unfunded Accrued Liability (UAL) - When a plan or pool’s value of assets is less than its Accrued Liability, the difference is the plan or pool’s Unfunded Accrued Liability (or unfunded liability). If the unfunded liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Glossary of Acronyms
AB 939 California Integrated Waste Management Act of 1989 ABC Alcohol Beverage Control
AFG Assistance to Firefighters Grant
APL Available Property Listing
ARPA American Rescue Plan Act of 2021
BID Business Improvement District
BSCC Board of State and Community Corrections
CalPERS California Public Employees' Retirement System
CDC Community Development Commission
CDPH California Department of Public Health
CED Community & Economic Development
CIP Capital Improvement Program
CIWMB California Integrated Waste Management Board
CJPIA California Joint Powers Insurance Authority
COPS Citizens Option for Public Safety
DOF State Department of Finance
EDMS Electronic Document Management System
EMS Emergency Medical Services
EOC Emergency Operation Center
FNS Food and Nutrition Service
GAAP Generally Accepted Accounting Principles
GIS Geographic Information Systems
ISO Insurance Services Offices
ISTEA Intermodal Surface Transportation Efficiency Act of 1992 IT Information Technology
MOU Memoranda of Understanding
NPDES National Pollutant Discharge Elimination System
OPEB Other Post-Employment Benefits
PFA Public Financing Authority
PO Purchase Order
PPC Public Protection Classification
PPE Personal Protective Equipment
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Glossary of Acronyms
RDAs Redevelopment Agencies
RFP Request for Proposal
RFQ Request for Quote
ROPS Recognized Obligation Payment Schedule
RPTTF Redevelopment Property Tax Trust Fund
RRFB Rectangular Rapid Flashing Beacons
SB Senate Bill
SET Special Enforcement Team
SHSP State Homeland Security Program
SLESA Supplemental Law Enforcement Services Account
SSMP Sewer System Management Plan
STP Surface Transportation Program
TRAP Taskforce for Regional Auto Theft Prevention
UAL Unfunded Accrued Liability
UAAL Unfunded Accrued Actuarial Liability (UAAL)
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Long-Range
Financial Forecast
FISCAL YEARS ENDING 2025 TO 2029
City of West Covina
WWW.WESTCOVINA.ORG | 1444 W GARVEY AVE, WEST COVINA CA, 91790 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Overview
The purpose of this forecast is to provide long-term context for annual decisions that will be made with the Fiscal Year Ending (FYE) 2025 Budget and FYE 2025-2029 Capital Improvement Plan. This forecast was developed to create a forward-looking, conservative baseline budgetary outlook for the City’s General Fund under a given set of revenue and expenditure growth assumptions.
The revenue and expenditure growth assumptions have been updated based on historical trends, actuarial reports, and CPI trends. The base year for this forecast is FYE 2024.
Revenue
The City’s major revenue sources include property taxes and sales tax. Each of these revenue sources are driven by the growth of the local economy and the City’s population. This is also true of several of the City’s other revenue sources including fees and charges for service, franchise taxes, and licenses and permits.
Revenue Growth Assumptions
▪ Based on historical prior year actuals Property Tax is assumed to increase by 3%. ▪ The Property Tax in Lieu of Vehicle License Fee grows with estimated increase in assessed valuation. ▪ Sales Tax estimates are provided by the City’s sales tax consultant, HdL, and are forecasted to increase by 2.1% in FYE 2025 to 3% by FYE 2029.
▪ Business License Tax is assumed to grow with CPI which has averaged around 3%. ▪ Transient Occupancy Tax is projected to grow by 3% each year. ▪ Franchise Fees are assumed to grow with CPI which has averaged around 3%. ▪ Development-related fees(including building permits) have spiked in recent years but are anticipated to subside in the upcoming year and are assumed to remain level throughout the forecast. ▪ Rental Income is expected to grow by 1.2%.
Table 1. Forecasted Revenue Growth Assumptions
Major Revenue Source FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Property Taxes 3.00% 3.00% 3.00% 3.00% 3.00%
Sales And Use Taxes 2.10% 2.80% 3.00% 3.00% 3.00%
Business License Tax 3.00% 3.00% 3.00% 3.00% 3.00%
Transient Occupancy Tax 3.00% 3.00% 3.00% 3.00% 3.00%
Other Taxes 0.00% 0.00% 0.00% 0.00% 0.00%
Charges For Services 0.00% 0.00% 0.00% 0.00% 0.00%
Fines And Forfeits 0.00% 0.00% 0.00% 0.00% 0.00%
Franchise 3.00% 3.00% 3.00% 3.00% 3.00%
Licenses & Permits 0.00% 0.00% 0.00% 0.00% 0.00%
Use Of Money/Prop 0.00% 0.00% 0.00% 0.00% 0.00%
Other Revenues 0.00% 0.00% 0.00% 0.00% 0.00%
Rental Income 1.20% 1.20% 1.20% 1.20% 1.20%
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Expenditure Overview
Expenditures are forecasted for the City’s two major funds: General and Debt Service. The baseline forecast presented herein includes expenditures already approved by and/or committed to by the City Council. Rising costs due to inflation, and/or interest rates are also anticipated and included in this forecast through growth factors applied to each forecast category. Miscellaneous Expenditure Growth Assumptions
▪ Base salaries have been projected to reflect the annual merit step increase. Except for the Firefighter’s Association memorandum of understanding increase in FYE2025, no other increases are assumed. ▪ The forecast assumes recruitment of all FYE 2024 Budgeted positions with annual estimated vacancy savings within larger staffing groups.
▪ Projected employer contributions to California Public Employees’ Retirement System (CalPERS) are based on the latest Actuarial Valuation.
▪ Increases in expenditures are based on historical actuals and CPI which has averaged around 3%. ▪ Insurance claims have been based on recent actuarial study and increase by 2% thereafter. ▪ The forecast does not assume increases in contributions to Other Post Employment Benefits (OPEB).
Table 2. Forecasted Expenditure Growth Assumptions
Expenditures FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Salaries & Benefits
Base Salaries 2.00% 2.00% 2.00% 2.00% 2.00%
Health Plans 5.00% 5.00% 5.00% 5.00% 5.00%
Overtime 2.33% 2.33% 2.33% 2.33% 2.33%
Dental/Vision/Life Plans 2.00% 2.00% 2.00% 2.00% 2.00%
Deferred Compensation 0.00% 0.00% 0.00% 0.00% 0.00%
Medicare 2.00% 2.00% 2.00% 2.00% 2.00%
Special Pays 1.13% 1.13% 1.13% 1.13% 1.13%
Worker's Compensation 2.00% 2.00% 2.00% 2.00% 2.00%
CalPERS Miscellaneous 3.85% -1.91% -2.56% -1.25% -1.27% CalPERS Safety -2.92% -2.43% -1.99% -2.54% -3.65%
PERS UAL Payment 100.00% 61.18% 37.98% 27.53% 21.58%
Materials & Services
Contract/Professional Services 2.00% 2.00% 2.00% 2.00% 2.00% Fuel 3.00% 3.00% 3.00% 3.00% 3.00%
Legal Services 2.00% 2.00% 2.00% 2.00% 2.00%
Materials & Services 1.50% 1.50% 1.50% 1.50% 1.50%
Miscellaneous 0.00% 0.00% 0.00% 0.00% 0.00%
Repair & Maintenance 3.00% 3.00% 3.00% 3.00% 3.00%
Supplies & Materials 1.50% 1.50% 1.50% 1.50% 1.29%
Training/Conferences/Meetings 0.00% 0.00% 0.00% 0.00% 0.00% Utilities 3.00% 3.00% 3.00% 3.00% 3.00%
Claim Paid 2.00% 2.00% 2.00% 2.00% 2.00%
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
General Fund Projections
Based on the revenue and expenditure assumptions, the General Fund is anticipated to have positive revenue over expenditures in FYE 2025 (486k) and FYE 2026 ($547k) before it goes negative from FYE 2027 to FYE 2029 (-$912k). It is important to reiterate that the forecast does not include any increase in salaries in FYE 2025-2028, since it is outside the contracted period.
Figure 1. Forecasted General Fund Revenue and Expenditures Fund balance reserves are anticipated to increase over the upcoming years from 19% in FYE 2024 to 20% in FYE 2026. Fund balance is forecasted to decrease from FYE 2026 to FYE 2029 to 18%.
Figure 2. Forecasted General Fund Ending Fund Balance (Unassigned) -$3,038 -$953
$486 $547
-$202 -$282
-$912
(3,500)
(3,000)
(2,500)
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
80 82
84 86
88 90
92 94
96 98
Actual FYE
2023
Estimate FYE
2024
Forecast FYE
2025
Forecast FYE
2026
Forecast FYE
2027
Forecast FYE
2028
Forecast FYE
2029
THOUSANDS
MILLIONS
General Fund Revenue and Expenditures
General Fund Revenues General Fund Expenditures Revenue Less Expenditures 20%
19%
19%
20%
19%
19%
18%
17%
18%
18%
19%
19%
20%
20%
16 16
17 17
18 18
Actual FYE
2023
Estimate FYE
2024
Forecast FYE
2025
Forecast FYE
2026
Forecast FYE
2027
Forecast FYE
2028
Forecast FYE
2029
MILLIONS
Ending General Fund Balance - Unassigned
Unassigned Fund Balance Unassigned Reserve as % of Base Expenditures __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Future Pension Costs
The City currently has a total of two pension plans administered by CalPERS and two retirement enhancement plans administered by PARS. The pension plans consist of a miscellaneous agent plan and a safety agent plan.
The retirement enhancement plan consists of an EPMC replacement supplemental retirement plan and a supplemental retirement plan for executive staff and City Council.
The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. In 2020, the City issued taxable Lease Revenue Bonds to provide financing to pay the City’s unfunded pension liabilities to CalPERS.
However, as of the latest actuarial report received in 2023, the City’s net pension related liability will be over $39.7 million for the miscellaneous and safety plans – meaning the city will report a liability as of June 30, 2023. This is a net change of over $105 million or -160%. This is primarily due to a negative net investment income and benefit payments.
Table 3. Projected CalPERS Rates.
CalPERS Rates FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Miscellaneous 9.56% 9.87% 9.71% 9.50% 9.40% 9.30% 9.10% Safety 20.64% 22.72% 22.10% 21.60% 21.20% 20.70% 20.00% UAL Payment FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Miscellaneous 735,584 0 586,778 906,000 1,226,000 1,546,000 1,866,000 Safety 1,282,822 0 1,273,821 2,093,000 2,912,000 3,731,000 4,550,000 Total UAL $2,018,406 $0 $1,860,599 $2,999,000 $4,138,000 $5,277,000 $6,416,000 The PARS retirement enhancement plan consists of an EPMC replacement supplemental retirement plan and a supplemental retirement plan for
executive staff and City Council.
The City makes all contributions to
these plans. Participants do not
make any contributions. The City is
currently only funding the benefit
payments payable each year.
Other Post Employment
Benefits (OPEB)
The City administers a single
employer defined benefit plan
which provides healthcare
benefits to eligible retirees and
their dependents in accordance
with various labor agreements. The table below summarizes these costs over the forecast period.
Table 4. Retiree Benefits
Retiree Benefit ($ Millions) FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Medical 2.16 2.16 2.16 2.16 2.16 2.16 2.16
Health Savings Plan 0.26 0.26 0.26 0.26 0.26 0.26 0.26
Total $2.42 $2.42 $2.42 $2.42 $2.42 $2.42 $2.42
$7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00
$0
$2
$4
$6
$8
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
MILLIONS
Employer Pension Costs
CalPERS UAL CalPERS Retirement - Safety Plan
CalPERS Retirement - Miscellaneous Plan PARS Plans
Figure 3. Forecasted Pension Employer Costs
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Debt Service
The General Fund will generally be responsible for funding the following debt service payments annually:
2018 Lease Revenue Refunding Bonds, Series A and B
On November 20, 2018, the City issued $19,310,000 of Lease Revenue Bonds, Series A and $4,855,000 of taxable Lease Revenue Bonds, Series B to provide
financing for the advance refunding of the
City's 2002 Lease Revenue Bonds Series A,
2004 Lease Revenue Bonds Series A&B, and
the 2013 Lease Revenue Refunding Bonds
Series A.
2020 Lease Revenue Bonds, Series A
On July 23, 2020, the City issued
$204,095,000 of taxable Lease Revenue
Bonds to provide financing to pay the City’s
unfunded pension liabilities to CalPERS, to
establish a reserve fund, and pay issuance
costs. The bonds mature annually through
August 1, 2044, in amounts ranging from
$3,645,000 to $16,105,000, with interest
rates that range from 1.747% to a maximum of 3.892% over the term of the bonds.
Energy Efficiency Loans Payable
In May 2021, the City entered into two lease-purchase agreements for the acquisition and installation of certain energy conservation equipment and improvements (solar) and installation of certain energy conservation equipment including lighting and HVAC (non-solar) with an aggregate principal borrowing of $6,602,048.
Table 5. Debt Service Payments
Debt Service
($ Millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Principal 5,798,681 5,907,696 6,295,249 6,717,502 7,168,788 Interest 7,871,548 7,714,385 7,540,661 7,345,261 7,127,764 Total Debt Service $13,670,230 $13,622,081 $13,835,910 $14,062,763 $14,296,552 Figure 4. Debt Service Payments
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
2025 2026 2027 2028 2029
MILLIONS
Debt Service by Series
2018 Series-PFA 2020 Series-PFA Energy & Solar Leases
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
Self-Insured Workers Compensation and Liability
The City is self-insured for workers compensation and liability (automobile, general, and public officials). The City has always purchased excess insurances for workers compensation and liability. In compliance with Governmental Accounting Standards Board (GASB) Statement No. 10, the City has an actuarial study completed every two years.
Based on the latest actuarial study, the estimated outstanding workers compensations losses increased by $7.6 million from the prior actuarial estimate of $6.4 million as of June 30, 2021 to $14.1 as of June 30, 2023.
The change consists of:
+$6.5 million from the additional years (2021/22 and 2022/23) of exposure, -$4.3 million for claim payments made
during FYE 2022 and FYE 2023, and
+$5.4 million due to a change in
projected ultimate losses for 2021/22
and prior.
Additionally, the estimated outstanding liability
losses increased by $0.9 million from the prior
actuarial estimate of $7.1 million as of June 30,
2021 to $8.0 million as of June 30, 2023. The
change consists of:
+$5.1 million from the additional years
(2021/22 and 2022/23) of exposure,
-$4.1 million from the claim payments
made during 2021/22 and 2022/23, and
-$0.2 million due to a change in
projected ultimate losses for 2021/22
and prior.
The chart on the right shows the type of open claims as of June 30, 2023. The actuarial study also projected losses over $7 million in FYE 2024 and $6.7 million in FYE 2025. The table below outlines these losses. $5.33
$7.05 $6.71 $6.85 $6.98 $7.12 $7.26
$0
$1
$2
$3
$4
$5
$6
$7
$8
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
MILLIONS
Liability & Workers' Comp. Projected Losses
General Liability Workers' Compensation
Employment
Termination
3%
Falling
Tree/Limb
17%
False Arrest
3%
Forced Entry
3%
Medical
Treatment
3%
Pothole
Damage
Root 15%
Intrusion
9%
Slip/Trip
12%
Use Of Force
3%
Vehicle
Accident
32%
Open Liability Claims 6/30/23
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________
AGENDA ITEM NO. 6
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Thomas P. Duarte, City Attorney
SUBJECT: CONSIDERATION OF CITY MANAGER EMPLOYMENT AGREEMENT WITH
PAULINA MORALES
RECOMMENDATION:
It is recommended that the City Council:
1. Appoint Paulina Morales as the City Manager.
2. Approve the City Manager Employment Agreement with Paulina Morales.
BACKGROUND:
Pursuant to the West Covina Municipal Code, the City Manager is appointed by a majority vote of the City Council. The City Manager is selected by the City Council on the basis of his or her executive and administrative qualifications with special reference to his or her actual experience in or knowledge of accepted practices of municipal administration.
The City Manager serves at the pleasure of the City Council. The City Manager’s powers and duties are set forth in the Municipal Code and the employment agreement between the City and the City Manager.
DISCUSSION:
The City conducted a recruitment for City Manager between June 2023 and April 2024. During the April 16, 2024 Closed Session meeting, the City Council directed the City Attorney to negotiate and draft a one (1) year employment agreement (Attachment No. 1) with Paulina Morales.
Highlights of the Agreement include:
Initial term of one (1) year;
After the initial term, the agreement will automatically extend on a month-to-month basis until terminated;
Annual salary of $242,640;
Annual performance reviews;
No severance pay;
Benefits commensurate with those provided to Executive Management; and Ability for Ms. Morales to be reinstated as Assistant City Manager for a period of three (3) years.
LEGAL REVIEW:
The City Attorney's Office has reviewed and approved the City Manager Employment Agreement as to The City Attorney's Office has reviewed and approved the City Manager Employment Agreement as to form.
Prepared by: Thomas P. Duarte, City Attorney
Fiscal Impact
FISCAL IMPACT:
The provisions of the agreement fall within the parameters of the current City Manager budget allocation at an annual salary of $242,640.
Attachments
Attachment No. 1 - City Manager Employment Agreement
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Maintain and Enhance City Facilities and Infrastructure Achieve Fiscal Sustainability and Financial Stability
Respond to the Global COVID-19 Pandemic
Expand Economic Development Opportunities
Enhance City Image and Effectiveness
ATTACHMENT NO. 1
CITY OF WEST COVINA
CITY MANAGER EMPLOYMENT AGREEMENT
WITH PAULINA MORALES
THIS CITY MANAGER EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 7th day of May, 2024 (“Effective Date”), by and between the CITY OF WEST COVINA, a municipal corporation (hereinafter, the “City”) and PAULINA MORALES, an individual (hereinafter, “Employee”). City and Employee are hereinafter collectively referred to as the “Parties” and individually as “Party.”
RECITALS
WHEREAS, the City Manager is appointed by the City Council on the basis of his or her executive and administrative qualifications with special reference to his or her actual experience in or knowledge of accepted practices of municipal administration; and WHEREAS, the City is best served by a City Manager who establishes and maintains a strong partnership with the City Council and the community, and such a partnership is best achieved by the City Manager’s involvement in a broad spectrum of community activities; and WHEREAS, Employee has been employed by the City for 20 years and has served in various capacities during her tenure; and
WHEREAS, on May 18, 2023, the City Council appointed Employee as the Acting City Manager; and
WHEREAS, the City now desires to employ the services of Employee in the capacity of City Manager; and
WHEREAS, the City further desires to provide certain benefits, establish certain conditions of employment, and establish working conditions for Employee; and WHEREAS, Employee desires to accept employment as City Manager, effective May 8, 2024, under the terms and conditions set forth in this Agreement.
NOW THEREFORE, in consideration of the mutual covenants, promises, and representations hereinafter set forth, the Parties hereto agree as follows:
1.0. DUTIES
1.1. Appointment. City hereby appoints and employs Employee as City Manager for the City.
1.2. City Manager Duties and Authority. Employee shall perform the functions and duties of City Manager as set forth in the West Covina Municipal Code (hereinafter, “Code”) and shall perform such other legally permissible and proper duties and functions as the West Covina City Council (hereinafter, “City Council”) may from time to time assign. The City may amend the provisions of the Code relating to the functions and duties of the City Manager, as it deems appropriate, without Employee’s approval or an amendment to this Agreement. Employee may only 2 of 10
exercise those powers expressly granted to her as City Manager through the Code or any resolution or minute action of the City Council.
1.3. Compliance with Laws. Employee shall perform her duties to the best of her ability in accordance with the highest professional and ethical standards of the profession. Employee shall comply with and carry out the City’s rules and regulations and Employee shall obey the laws of the State of California and the United States of America as they apply to the performance of her duties.
1.4. Hours Worked. Employee shall devote her time, ability, and attention to matters of the City and to the performance of this Agreement. Employee acknowledges and agrees that her duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty (40) hour workweek and may also include time outside of normal office hours (including attendance at City Council meetings and various community meetings, forums, or workshops). Employee is expected to devote necessary time outside normal hours to business of the City.
Employee is also expected to regularly attend City-sponsored and community events and establish and maintain partnerships with the community. To that end, Employee will be allowed flexibility in setting her office hours, provided that Employee shall work as necessary during customary business hours to satisfactorily perform her City Manager duties and shall be available to other City staff during customary business hours. Employee shall be classified as an exempt employee for purposes of the Fair Labor Standards Act and shall not be entitled to any form of compensation for overtime.
1.5. No Other Employment. Employee agrees to remain in the exclusive employ of the City during the term of this Agreement. Employee shall not, without the City Council’s prior written consent, render services of any kind to others for compensation or engage in any other activity which would materially interfere with the performance of her duties under this Agreement. Notwithstanding the foregoing, Employee may perform incidental and occasional teaching, writing, consulting, or volunteer work, provided that such activities do not materially interfere with the performance of her duties under this Agreement.
1.6. Conflicts Prohibited. Employee shall not engage in any activity which is or may become a conflict of interest with her obligations to the City or which might create an incompatibility of office as defined under California law. She shall also timely complete and file financial disclosure statements immediately upon entry into her employment and annually thereafter pursuant to California law.
2.0. TERM
2.1. Term. The term of this Agreement shall become effective on May 8, 2024, and will remain in full force and effect through the end of the business day on May 7, 2025 (“Initial Term”), unless otherwise terminated as set forth herein. At the expiration of the Initial Term of this Agreement, this Agreement shall automatically extend on a month-to-month basis until such time as either Party terminates this Agreement as set forth herein.
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2.2. Prior Termination. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City Council to terminate the services of Employee as the City Manager at any time.
3.0. COMPENSATION
3.1. Salary. Effective May 8, 2024, City agrees to pay Employee for her services rendered hereunder at an annual rate of Two Hundred Forty-Two Thousand Six Hundred Forty Dollars ($242,640.00), which sum shall be considered the base salary and shall be payable in installments at the same times as the City’s other employees are paid, and subject to customary withholdings.
3.2. Salary Adjustments. City agrees to consider adjusting said base salary and other benefits of Employee, in the City Council’s sole discretion, subject to the performance evaluation process described in Section 9.0 (Performance Evaluation) of this Agreement, which shall be merit based.
4.0. EMPLOYEE BENEFITS
4.1. Insurance. During the term of this Agreement, Employee shall be entitled to the same medical, dental, vision, and life insurance benefits, if any, which are provided to all other Department Heads of City. Employee shall be required to pay for medical, dental, vision, and life insurance benefits, if any, in the same manner as all other Department Heads of City. Insurance coverage(s) shall be provided in the same manner as offered to all other Department Heads of the City.
4.2. Retirement. Employee shall be covered by the California State Employee Retirement System (CalPERS). Employee’s retirement formula will be as set forth in the City’s contract with CalPERS. City shall pay the full amount of the CalPERS employer cost. Employee shall pay the full member contribution for Employee’s CalPERS retirement plan.
4.3. Holidays. Employee shall be eligible for paid leave on City-recognized holidays to the same extent as other City Department Heads.
4.4. Vacation. Employee shall accrue and be credited with vacation leave as is provided to all other City Department Heads. Employee shall provide at least five (5) days’ advance written notice to the City Council prior to taking any vacation leave. If Employee has reached the maximum allowed unused vacation leave balance, and is unable to take vacation leave due to work urgency, industrial injury, extended medical leave, extraordinary circumstances, or pre-scheduled leave as authorized by the City Council, the City Council will approve a waiver of the maximum allowed unused balance for a period not to exceed six (6) months per fiscal year. Employee shall designate a City Department Head to serve as Acting City Manager during any period Employee takes vacation leave and shall advise the City Council of such designation.
4.5. Sick, Administrative and Floating Holiday Leave. Employee shall accrue and be credited with sick leave, administrative leave, and floating holiday leave as is provided to all other City Department Heads. Employee may use such paid leave in the same manner as all other Department Heads, as set forth in the resolution 4 of 10
establishing compensation and benefits for City Department Heads, as it may be amended from time to time. Prior to taking any administrative or floating holiday leave, Employee shall provide at least five (5) days’ advance written notice to the City Council of same. If Employee requires sick leave of more than one (1) day, Employee shall advise the City Council as soon as reasonably practicable regarding such sick leave. Employee shall designate a City Department Head to serve as Acting City Manager during any period Employee takes any leave provided for in this Section and shall advise the City Council of such designation.
4.6. Cash-Out Program. Employee shall be entitled to participate in the City’s annual sick leave or other leave cash-out program, in the same manner as all City Department Heads.
4.7. Deferred Compensation. City agrees to provide to Employee the same amount of deferred compensation as is provided to all City Department Heads, with the same frequency as the same is provided to all City Department Heads. Employee may utilize such funds in the same manner as all City Department Heads, as set forth in the resolution establishing compensation and benefits for City Department Heads, as it may be amended from time to time.
4.8. Car Allowance. City shall provide Employee with the same automobile allowance as is provided to all other City Department Heads.
4.9. Other Benefits. The City shall provide Employee such other benefits as mandated by law.
5.0. BUSINESS EXPENSES AND PROFESSIONAL DEVELOPMENT
5.1. Expense Reimbursement. City recognizes that Employee may incur certain expenses of a non-personal, job-related nature that are reasonably necessary to Employee’s service as City Manager. City agrees to reimburse Employee for such expenses on a monthly basis, provided that the expenses are incurred and submitted according to the City’s regular reimbursement requirements and such other requirements as may be designated by the City Council. The City Council authorizes the Finance Director to reimburse Employee for such expenses upon the presentation of a receipt, voucher, statement, or personal affidavit of duly executed expenses.
5.2. Memberships. City agrees to budget and to reimburse or pay for professional dues, memberships, and subscriptions necessary for Employee’s participation in such organizations as the Parties may agree to as necessary and appropriate for her continued professional participation, growth, and advancement, and for the good of the City during her employment as City Manager.
5.3. Trainings. City agrees to budget and to reimburse or pay the reasonable costs for Employee’s attendance and participation in meetings, institutes, training programs, conferences, conventions, and similar gatherings that support leadership development and the advancement of the Parties’ mutually agreed upon goals, and which are related to Employee’s duties or City’s operations and held in the continental United States. For purposes of this paragraph, reasonable expenses are limited to the reasonable and actual costs of registration, coach-class airfare 5 of 10
(where applicable), ground transportation and meals. Reasonable expenses will also include the reasonable and actual cost of lodging for meetings more than sixty (60) miles outside of the City’s boundaries.
6.0. AT-WILL RELATIONSHIP
Employee understands and agrees that the City Manager is appointed by, and serves at the pleasure of, the City Council. Accordingly, Employee agrees that: (1) the City Manager is an “at will” position that may be terminated by the City Council at any time, with or without cause (as defined in Section 7.2 below); (2) there is no express or implied promise made to Employee for any form of continued employment as the City Manager; and (3) this Agreement is the sole and exclusive basis for the City Manager employment relationship between Employee and City.
Notwithstanding the foregoing, City and Employee agree that in the event the City Council terminates Employee’s employment as the City Manager without cause, Employee will have the reinstatement rights set forth in Section 8.0.
7.0. TERMINATION
7.1. City Termination without Cause. The City Council may terminate this Agreement and Employee’s employment as the City Manager without cause in its absolute discretion at any time by providing written notice to Employee.
7.2. City Termination for Cause. The City Council may immediately terminate this Agreement and Employee’s employment with the City for cause by providing written notice to Employee of such termination.
For purposes of this Agreement, “cause” is defined as:
(a) Employee refusing or failing to carry out the duties of the City Manager as set forth in the California Government Code, the Code, or this Agreement; (b) Employee’s conviction of a felony;
(c) Employee’s conviction of a misdemeanor arising out of Employee’s duties under this Agreement and involving a willful or intentional violation of law; (d) Employee being charged with, entering a guilty plea or a plea of nolo contendere to, or being convicted of, a crime involving moral turpitude or personal gain;
(e) Employee’s conviction of any crime involving an “abuse of office or position,” as that term is defined in California Government Code section 53243.4;
(f) Employee’s repeated failure to carry out a directive or directives of the City Council made by the City Council as a body; and/or
(g) Any grossly negligent action or inaction by Employee that materially and adversely: (i) impedes or disrupts the operations of City or its organizational units; (ii) is detrimental to employees or public safety; or (iii) violates properly established rules or procedures of City.
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7.3. Employee Voluntary Resignation. Employee may voluntarily resign from her position as the City Manager at any time during the term of this Agreement by providing the City Council at least sixty (60) days written notice unless the Parties otherwise agree in writing.
7.4. Termination Obligations. In the event of the termination of this Agreement, Employee agrees that all property, including, without limitation, all equipment, tangible proprietary information, documents, records, notes, agreements, and computer-generated materials furnished to or prepared by Employee incident to her employment as City Manager, belongs to City and shall be returned promptly to City. Employee’s obligations under this subsection shall survive the termination of this Agreement.
7.5. No Severance. In the event of the termination of this Agreement by City, with or without cause, or of Employee’s voluntary resignation, Employee shall receive no severance.
8.0. REINSTATEMENT AS ASSISTANT CITY MANAGER
8.1. Reinstatement. If this Agreement is terminated by the City Council without cause or Employee resigns from her position as City Manager, Employee may, at Employee’s choice, return to the position of Assistant City Manager. Upon her reinstatement to the position of Assistant City Manager for any reason, Employee shall solely be responsible for the responsibilities of the position of the Assistant City Manager. If Employee is reinstated to the position of Assistant City Manager, City shall not terminate Employee’s employment for a period of six (6) months from the date of reinstatement, unless such termination is for cause.
8.2. Compensation Upon Reinstatement. In the event that Employee returns to the position of Assistant City Manager, Employee’s compensation and benefits shall return to the compensation and benefits she previously received as Assistant City Manager, subject to any step or other increases she would have otherwise been entitled to had she remained in the position of Assistant City Manager the entire time. Any compensation and benefits Employee may have received solely as a result of her serving as City Manager shall terminate upon her leaving that office.
8.3. Period During Which Employee May be Reinstated. Employee acknowledges and agrees that the provisions of this Section 8.0 providing for reinstatement to her former position as Assistant City Manager shall only remain valid for a period of three (3) years from the Effective Date of this Agreement. This Section shall survive the termination of this Agreement.
9.0. PERFORMANCE EVALUATION
9.1. Performance Objectives. City, through the City Council, and Employee shall establish mutually agreed upon performance objectives for each year this Agreement remains in effect. Such performance objectives shall be agreed upon by the Parties as necessary for the proper operation of the City in the attainment of the City Council’s policy objectives and shall further establish a relative priority among the agreed-upon objectives. The objectives shall be reasonably attainable 7 of 10
within the limitations of the City Council-approved operating and capital improvement budgets, authorized appropriations, and staff levels. Unless otherwise agreed to by the Parties, the initial performance objectives shall be established within three (3) months of the Effective Date of this Agreement.
9.2. Annual Evaluation. City, through the City Council, shall conduct an annual evaluation of Employee’s performance on or before the anniversary date of this Agreement during each year that this Agreement remains in effect. Such evaluation shall be shared and discussed with Employee in closed session as permitted by applicable law. Any public report of Employee’s evaluation shall be made in accordance with an agreement of the Parties as to format and content. In addition to annual performance evaluations, the City Council may schedule performance evaluations of Employee as it deems appropriate.
10.0. OTHER TERMS AND CONDITIONS OF EMPLOYMENT
10.1. Additional Terms. The City Council may from time to time fix other terms and conditions of employment relating to the performance of Employee provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Code or other applicable law.
10.2. Personnel Rules. The provisions of the Code and any West Covina personnel rules and regulations shall apply to Employee except where the specific provisions conflict with this Agreement, in which event the terms and conditions of this Agreement shall prevail.
11.0. CONFIDENTIAL INFORMATION
Employment with the City creates a relationship of confidence and trust between Employee and the City, with respect to all Confidential Information of the City. “Confidential Information” includes, but is not limited to, trade secrets, knowledge, or data of the City or any of its constituent entities or members that Employee may produce, obtain, or otherwise acquire or have access to during the course of Employee’s employment with the City, including but not limited to personnel information, passwords, and computer security systems. Employee agrees that during and after Employee’s employment with the City, Employee (i) shall keep all Confidential Information confidential and shall not directly or indirectly use, divulge, publish or otherwise disclose or allow to be disclosed any aspect of Confidential Information without prior written consent of the City Council; and (ii) shall refrain from any action or conduct which might reasonably or foreseeably be expected to compromise the confidentiality or proprietary nature of the Confidential Information. Upon termination of employment as City Manager for any reason, Employee agrees to return promptly to the City all writings and other tangible things in Employee’s possession that contain Confidential Information.
12.0. INDEMNIFICATION
12.1. City Indemnification. To the extent required by law, City shall defend and indemnify Employee, using legal counsel of City’s choosing, against any civil proceeding brought against Employee, in her official or individual capacity or both, on account of an act or omission in the scope of her employment as City Manager, unless such act or omission was due to actual fraud, corruption, or actual malice. If City determines there is a conflict of interest between the City and Employee and that 8 of 10
independent counsel is required for Employee’s defense, City shall select and pay reasonable fees of such independent counsel for Employee’s defense. Employee shall cooperate fully in the investigation and defense of any civil action or proceeding.
12.2. Exception to Indemnification. Notwithstanding the foregoing, Employee acknowledges and agrees that City reserves its rights pursuant to California Government Code section 825(a) not to pay any judgment, compromise, or settlement until it is established that the injury arose out of an act or omission occurring within the scope of her employment, and that City’s agreement to defend and indemnify her does not constitute an agreement to pay any punitive damages awarded against her. In that regard, Employee acknowledges and agrees that pursuant to California Government Code section 825(b), City may not make a determination whether or not to indemnify an employee for an award of punitive damages until such time as the award is made.
13.0. REIMBURSEMENT TO CITY REQUIRED
Notwithstanding the provisions of this Agreement, the following provisions requiring reimbursement for certain compensation and/or indemnification provided to Employee by the City apply:
(a) Paid Leave. Pursuant to California Government Code section 53243, in the event that Employee is convicted of a crime involving an abuse of her office or position, as defined by California Government Code section 53243.4, Employee shall fully reimburse the City for any paid leave or salary provided by the City for the time period in which the Employee is under investigation for such crimes. (b) Legal Defense. Pursuant to California Government Code section 53243.1, in the event that Employee is convicted of a crime involving an abuse of her office or position, as defined by California Government Code section 53243.4, Employee shall fully reimburse the City for all the costs of her legal criminal defense if a defense has been provided at City’s expense.
(c) Cash Settlement. Pursuant to California Government Code section 53243.2, in the event that Employee is convicted of a crime involving an abuse of her office or position, as defined by California Government Code section 53243.4, Employee shall fully reimburse the City for any cash settlement paid to Employee relating to the termination of this Agreement.
14.0. GENERAL PROVISIONS
14.1. Entire Agreement. This Agreement is the final expression of the complete agreement of the Parties with respect to the matters specified herein and supersedes all prior oral or written understandings. Except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by the Parties.
14.2. No Assignment. This Agreement is not assignable by either City or Employee. 9 of 10
14.3. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
14.4. Severability. In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the Parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portions of the Agreement.
14.5. Counterparts. This Agreement may be signed in any one or more counterparts, all of which taken together shall be deemed one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by email as a .pdf attachment, or sent by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the attachment/facsimile and shall be binding upon such Party in the same manner as though an original signed copy had been delivered.
14.6. Waiver. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought.
14.7. Independent Legal Counsel. Each of the Parties acknowledges that she/it has been represented by independent legal counsel of her/its own choosing, or if not, has been advised to obtain independent legal counsel and has freely and voluntarily waived and relinquished the right to legal counsel. Further, each Party who has not obtained independent legal counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement or any agreement referred to in this Agreement.
14.8. Governing Law; Venue. This Agreement shall be interpreted and construed according to the laws of the State of California, and venue shall be in the County of Los Angeles.
14.9. Notices. All notices shall be personally delivered or mailed to the addresses listed below:
EMPLOYEE: Paulina Morales
At most recent address on file in Employee’s personnel file CITY: Mayor
City of West Covina
1444 West Garvey Ave. South
West Covina, CA 91790
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With a copy to: West Covina City Attorney
Jones Mayer
3777 N. Harbor Blvd.
Fullerton, CA 92835
IN WITNESS WHEREOF, the Parties hereto have hereunto affixed their signatures as of the date and year first above written.
CITY OF WEST COVINA
____________________________
Brian Calderón Tabatabai
EMPLOYEE
____________________________
Paulina Morales
ATTEST:
____________________________
Lisa Sherrick, Assistant City Clerk
APPROVED AS TO FORM:
____________________________
Thomas P. Duarte, City Attorney