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HomeMy WebLinkAboutMinutes - February 27, 2001 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, FEBRUARY 27, 2001 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, February 27, 2001 commencing at 7:00 a.m. A. ROLL CALL Present: Council Members — Hitchcock, Howard, Land, Pennino (arrived at 7:03 a.m.) and Mayor Nakanishi Absent: Council Members — None Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston B. CITY COUNCIL CALENDAR UPDATE City Clerk Blackston reviewed the weekly calendar (filed). C. TOPIC(S) C-1 "Review of City Department's Accomplishments" Deputy City Manager Keeler presented the City Council with a revised budget calendar and samples of mission statements from other communities (filed). During the next few Shirtsleeve Sessions, staff will begin to review with Council the City departments' accomplishments. Those scheduled for today are: Parks and Recreation, Fire, Finance, Community Development, and Information Systems. INFORMATION SYSTEMS Deputy City Manager Keeter reported that the goal of Information Systems (IS) is to enhance access to information and to bring the City up to date with technology. Its main functions are to develop, plan and coordinate the City's information systems, which consists of personal computers (PCs), both local and wide area networks, the Internet and Intranet, computer software, telephones and wireless communications, and radio systems. Its accomplishments include: • Completion of the wide area network (WAN), which has enabled all City departments to communicate with each other via computers, and has brought an increased level of efficiency wherein departments can exchange files and send letters, memos, and information electronically. • Implemented public access to City Clerk documentation, in conjunction with the City Clerk's office and the consultants for Fortis and PowerWeb. • Implemented the City-wide Intranet, which is an internal systems and data network. • Successfully completed the telephone switch and voice mail upgrades without any downtime on the phone system. • Brought the Library on to the City's phone system, which has enabled them to now use the voice mail system as well. • Set up an internal Web server, which is an Internet information server. • Assisted several departments on an as -needed basis with their internal reporting needs, by generating and programming reports using Access. • Set up network security and anti-virus protection at various levels, to include desktop computers, e-mail, and the firewall, mainly because of the scare of the "Love Bug" and other such computer viruses. • Implemented a City-wide network telephone support web page on the Intranet. • Designed and implemented a Meter Data system for Electric Utility. • Documented and inventoried the City's wireless radio system, to include all departments that use radios. Continued February 27, 2001 • Assisted Human Resources and the Finance Department with the implementation of the JDEdwards system. • Set up the Fire and the Electric Utility Department's new main servers. • Successfully completed the City's compliance with the Y2K issue. Mayor Pro Tempore Pennino commended the IS staff for the work it has done and the assistance it has provided to Council Members. He questioned where the City is heading as it relates to a computer replacement policy. IS Manager Stan Helmle replied that the City currently replaces computers on an as - needed basis by phasing -out older, obsolete computers and equipment. There has been some discussion among staff about starting a rotation cycle, and the Police Department has proposed this in its upcoming budget year. A policy of this sort could be beneficial to the IS department, as it could purchase, stage, and deploy 20-50 PCs at one time. Mayor Pro Tempore Pennino added that he would like staff to explore such a policy, but does not want to see functionally adequate computers replaced merely because the set time period has expired. In response to Mayor Nakanishi, IS Manager Helmle responded that the Meter Data System is a program on the ORCOM System that tracks 10 years of data regarding electric utilities. Information can be obtained by keying in an individual's name, address, or meter number, and it would show a ten-year time -span and a month -by -month average. This program is useful in assisting utility customers with billing concerns and problems with meter readings. Council Member Hitchcock expressed concern about computer turnover, and did not want to see computers replaced until there is really a need. Some use computers regularly and have greater needs, whereas others use them very seldom. It would be a waste of money to replace computers that are not being used to their fullest capabilities. IS Manager Helmle agreed that automatic replacement is not always necessary, and the current system of replacing computers as needed has been working fine. In response to Council Member Hitchcock, IS Manager Helmle indicated that the City is pursuing the idea of using laptop computers with a docking station because they are portable and easy to access without the need for disks. Currently there are three units in the IS division that have high-speed Internet access service. Staff will soon be experimenting with the units at home in accessing the internal network as though it was being done from the office. The major concern with doing this is security, for which staff has just completed training to implement the highest security techniques available. PARKS AND RECREATION Deputy City Manager Keeter continued with the Parks and Recreation accomplishments, which include: Administration • Completed the Dwight Dauber boat and fishing dock at Lodi Lake. • Started construction of the Lodi Lake bicycle and pedestrian trail, for which it has secured some funding. . • Retrofitted many of the Parks and Recreation facilities with lighting through the Electric Utility Public Benefits Program funds. • Started construction of the Katzakian Park project on Turner Road, which has been greatly anticipated by the residents in that area. • Installed the Peterson Park restrooms this past year. • Implemented the Lodi LOOK Program, which is an after school program at Lawrence and Heritage schools, in conjunction with the School District. 2 Continued February 27, 2001 Parks and Recreation Commission The Parks and Recreation Commission advises and assists the City Council on programs and activities, and reviews and recommends programs, activities, capital improvement projects, fees and charges. The Commission noted the following accomplishments: • Addressed issues, making sound recommendations. • Reviewed and recommended various fees and charges. • Encouraged participation in all levels of activities. After School Playground Program The after school playground program provides for safe after school care for children grades K-6 and includes organized recreation and educational activities. • Reached a 100% return rate for this program. • Increased participant enrollment and provided a quality program. Youth/Teen Sports • Offered programs for over 10,000 youth and teens over this past year, and has seen a steady growth in all of its programs. • Secured a variety of facilities to accommodate its needs when City facilities were not available. Indoor/Outdoor Activities • Offered new classes this past year in women's self-defense, sign language, yo-yo skills, fencing, Internet and computer skills, cheerleading, and tumbling. • Offered classes using forms of hip-hop and jazz to encourage new groups of children and participants to be active in Parks and Recreation activities. • Acquired the use of private facilities to enable activities to take place when City facilities were not available. Aquatics • Offered new and exciting special events, classes and equipment. • Improved its swim lesson schedule and format. • Reduced overtime by using part-time staff. • Introduced a new aquatics play structure at Blakely Park that was quite popular. • Increased the rental offerings for Blakely Park. Adult Sports Parks and Recreation offers a wide range of adult sports activities, leagues and tournaments in four major areas: softball, basketball, volleyball, and soccer. • Programmed activities for over 4,000 adults and older teens. • Created recreation activities with less emphasis on competition and more emphasis on recreation and fun, which attributes directly to the increased participation in the programs. • Is working in a team effort with the Lodi Conference and Visitors' Bureau to secure the first National Softball Association World Series Champion softball event in Lodi. Concessions Concessions are operated at Zupo, Kofu, and Salas Parks, at the Grape Bowl during football season, and at the Grape Pavilion during baseball season. • Provided quality snacks, food, and drinks at scheduled games, tournaments, and activities. • Provided a quality workplace for teens and youth that are looking for seasonal work. Lawrence/Heritage (Lodi LOOK 1 The new after school Lodi LOOK Program, in operation at Lawrence and Heritage schools, was funded by a grant through the California Department of Education and the After School Safe Learning and Safe Neighborhood Partnership. There are two main components of the program: 1) educational; and 2) educational enhancement, which is a recreational component of the program. As a result of this program being offered to the schools, the following results have been achieved: 3 Continued February 27, 2001 • Increased homework completion rates. • Decreased discipline referrals. • Increased average school percentiles and academic activities including reading, math and language. Sports Facilities Maintenance • Worked with volunteer groups to renovate the infield and repair the concession stands at Zupo Field. • Coordinated recreational and sports programming, events, and weekend tournaments. • Prepared facilities by providing a safe, clean, and attractive facility for all users. Lodi Lake Park • Have begun removing the walled area to open the lake to the community. • Continuing with the ongoing installation of Maxicom irrigation systems throughout Lodi Lake, which is an automatic irrigation system designed to help cut down on the need for manual irrigation. • Completed the fishing dock and entry to Lodi Lake. • Completed the handicap walkway and the wading pool. Parks Maintenance • Installed new lights at the Softball Complex and Armory Park. • Completed the restroom renovation at the Grape Bowl in time for the football season. • Completed the Peterson Park restroom project. • Installed Maxicom irrigation systems at the Softball Complex, Armory, Blakely, Hale and Lawrence Parks, and Zupo Field. • Nearly completed the Zupo seating project. • Installed the handicap walkways at Glaves and Beckman Parks. Parks Operations Coordinator Ideas to expand the following programs are underway. • Planned and organized the Salmon Festival at Lodi Lake for the second year. • Planned and organized the Camp Lodi Lake program for underprivileged children Equipment Maintenance Equipment maintenance activities include repairing and maintaining mowers, scooters, playground equipment and other equipment within the department, and it recommends safety standards for playground equipment. • Upgraded four playgrounds to Americans with Disabilities Act (ADA) compliance. • Updated its computer indexing program. In response to Council Member Howard, Deputy City Manager Keeter replied that the City would be helping in the funding of 25 additional seats at Zupo Field. Following the question by Council Member Howard, City Manager Flynn and City Attorney Hays reported that the facility at the old bowling alley, which is being utilized for youth gatherings and dances, is not owned by the City, and is in fact being leased by a church. In answer to Mayor Pro Tempore Pennino, Deputy City Manager Keeter noted that the dedication of Katzakian Park is tentatively scheduled for the July 0 weekend at the request of some of the homeowners in the area. Parks and Recreation Director Baltz reported that there are currently eight after school programs being offered: five are considered "at playgrounds programs'; two are under the Lodi LOOK Program; and one is at a Lockeford School. The latter three are dependent upon grants to operate. Mr. Baltz stated that the department's goal is to offer the after school program at,every school in Lodi, and it will attempt to expand the programs this year. n Continued February 27, 2001 In response to Mayor Pro Tempore Pennino, Mr. Boltz reported that he met with representatives from LUSD this past week to discuss the joint use agreement, focusing particularly on the athletic facilities and the swimming pools. LUSD informed him that the cost for keeping the pool open during December was just over $11,000; and for January it was over $14,000. Deputy City Manager Keeter added that this issue would be discussed at the next 2x2 meeting. In reply to Council Member Hitchcock, Parks and Recreation Director Boltz stated that the School District typically does not open or operate the pools during some of the winter months; however, it was done this year at the request of the City and the swim club members, for which the City agreed to pay a pro -rated amount. Council Member Land stated that the quality of life in a community is the direct result of the programs and services that are offered by the Parks and Recreation Department, and Lodi offers an outstanding quality of life. He expressed a concern about the closure of Lodi Lake during the summer months because of the water contamination, and asked if the Parks and Recreation Commission has come to any conclusion about what to do. Mr. Boltz indicated that the Phase I construction at Lodi Lake should help. The Commission has this as a regular part of its agenda on a monthly basis to be updated and discuss the waste product that is being produced by the water fowl at the lake and what can be done to resolve the problem. The Commission is looking at things such as Bird -X and Goosebusters, and it hopes to have something in place before the beginning of the season. Currently there are no plans for a filtration or circulation system to try to solve the problem, because it has been reported that the bacteria levels are substantial throughout the water, including the river water in the area. Council Member Land asked if staff has calculated the flow of water at the three entrances to Lodi Lake to see if increasing the flow will allow for better circulation. Public Works Director Prima reported that studies of the river indicate that the bacteria levels are as high, or higher, in the river than they are in the beach area. It is hoped that changes to the beach will help somewhat to push the bacteria further out into the lake, but as long as the geese spend the night on the beach, it will continue to be a problem. Mayor Pro Tempore Pennino pointed out that the cost for LUSD to operate the swimming pools during the winter months is particularly high now due to the rising cost of natural gas. He stated that the agreement was for a "zero net sum", and Parks and Recreation Director Boltz responded that he will work toward that. Mayor Nakanishi asked staff to address the issue of flooding in the area of Lodi Lake and asked who determines when the water is released into the lake. Public Works Director Prima responded that the issue of flooding around Lodi Lake is one that staff considered as part of the project, and the plan is to build a retaining wall. Staff lowered the elevation of the wall by one foot because of what the projected flood levels were. There will also be an opening to allow handicap access off of Mills Avenue and wheelchair ramps that meet ADA requirements. Staff feels that this area is narrow enough that it could be sandbagged during any flooding. Normally the Department receives very good advance warning of high waters coming down the Mokelumne River. As far as the releases, they are controlled by an operating agreement that is managed on a day-to-day basis by East Bay Municipal Utility District (EBMUD), and it considers flood control, flows, and water supply and environmental issues. This joint settlement agreement was adopted a year and a half ago by the various fishery agencies, the state and federal governments and EBMUD. The decision to actually put the boards in the dam at Woodbridge that creates the lake is made by the Woodbridge Irrigation District (WID). Within the state operating parameters, they have a window of time to impound the water in that area, and the actual date is one that they decide on based on irrigation needs. 5 Continued February 27, 2001 At the request of Mayor Nakanishi, Parks and Recreation Director Baltz indicated that he would calculate a rough estimate on the future annual maintenance costs for the proposed aquatics center. Fire Department Deputy City Manager Keeter reported on the Fire Department activities, which include: Administration • Successfully recruited several new firefighters. • Purchased a new fire truck for the department. • Promoted new personnel within the department. • Successfully developed a City of Lodi Operations Center Manual. • Assisted in planning and creating the bid for Fire Station #4 on the west side of town. Emergency Services • Standardized Engine -1 with a new foam unit. • Increased staffing of the truck company to three firefighters and an officer. • Participated in the development of the plan for the Fire Station #2 remodel and the remodel of Fire Station #1 as part of the public safety complex project. • Replaced the squad that was the grass fire rig. • Updated the self-contained breathing apparatus being used department -wide. Fire and Life Safety • Developed the popular Home Alone Program and the babysitters classes. • Completed a Risk, Hazard and Evaluation program. • Implemented a joint Arson Investigation Unit with the Lodi Police Department, which has been utilized a number of times. • Transitioned and developed a new Fire Marshal, who completed the State Level II Fire Prevention course. • Continues to offer the annual Canned Food Drive and Santa Claus programs for the citizens of Lodi. • Implemented a form, in conjunction with the Community Development and Finance Department, for assisting with the tracking of new businesses. Traininci • Completed the driver/operator certification of four personnel. • Updated its training and reference library within the department. • Began an in-house ICS 200, which should be complete by the end of fiscal year 2001. • Recruited nine firefighters through the academy. • Initiated joint rescue training with the Electric Utility Department. • Held multi -company training at a home that was donated by the Mondavi growers. • Offered a live training and demonstration of the thermal imaging equipment. • Participated in the Skills Path seminar in managing time, which was offered to employees City-wide. Special Services • Evaluated and developed the specifications for the new Tiller truck/Quint. • Developed the Pre -fire Planning Program. • Connected all Fire Department desktop computers to the WAN offering e-mail capabilities to the department. • Designed Fire Station #4, which will come before the City Council at its next regular meeting to award the contract for construction. 6 Continued February 27, 2001 • Installed the diesel exhaust extraction system in all fire station apparatus rooms. • Continued with the development of an equipment replacement program within the department. In response to Council Member Land, Fire Chief Michael Pretz stated that he anticipates delivery of the Tiller truck by the end of December, which will coincide with the completion of Fire Station #4. At the request of Council Member Land, Fire Chief Pretz updated the City Council on the status of Lodi's 911 dispatch service being centralized at the Stockton Fire Department. He explained that there has been a delay due to a change in radio frequency used at the Stockton Dispatch Center. Consequently, the Department is now re-evaluating their radio equipment needs and hope to be able to use Stockton Dispatch in the second or third quarter of this year. Council Member Hitchcock commented on the new thermal imaging equipment and its ability to save lives and reduce risks for firefighters entering enflamed buildings. She asked whether the equipment would be paid for from the contingency fund if money is not forthcoming from the State for this purchase. Fire Chief Pretz noted that he has included funds in the upcoming budget, should the State not fund the equipment.. He added that there is pending legislation moving through the State now that would either purchase the thermal imaging cameras for all fire departments in the State, or give money to cities and fire districts throughout the State based on population. Fire Chief Pretz explained that the diesel exhaust system is a series of hoses that hang from the ceiling inside the Fire Station and hook up to the diesel exhaust on the engines to pull the diesel smoke out of the building. This is essentially a firefighter safety issue, and the Department has now installed exhaust systems in all its Fire Stations. Community Development Deputy City Manager Keeter reported on the following Community Development accomplishments: Current and Advanced Planning • Completed approximately 50% of the Zoning Code revision, for which consultants were hired to assist staff. • Initiated a Greenbelt Policy 2x2x2 Committee, which consists of the City of Lodi, San Joaquin County and the City of Stockton. • Formed the Redevelopment Agency (RDA). The preliminary plan is in process and public hearings should be held this summer to finalize the RDA. Buildinq and Safety • Converted blueprints of issued permits for the year 2000 to a CD-ROM (rather than on microfiche) which is new to the department. The CDs were then loaded onto a high-speed PC for quick and easy access. • Expanded the use of the Sierra Permits Plus software system to include the Water/Wastewater Division of the Public Works Department. • Added a contract field inspector and reorganized the work duties of all of the inspectors in order to provide better service to the contractors and homeowners in the community. • Expanded the use of e-mail to increase efficiency. Community Improvement • Initiated a code enforcement case file management system, which creates more of a paperless file system as a means of reducing file cabinet storage, as City Hall storage space is at an absolute premium. 7 Continued February 27, 2001 • Added an additional Code Enforcement Officer position to better address the code enforcement caseload within the City. • Expanded the annual spring clean-up activities to participate in the National Great American Cleanup Campaign, which is coordinated through the Keep America Beautiful, Inc. and its local affiliate, Keep California Beautiful. City Manager Flynn commended Rad Bartlam, Richard Prima, Janet Keeler, and Tony Goehring who have worked diligently to bring new businesses to Lodi. He stated that Community Development deserves a lot of credit for bringing the new theater to Lodi and the work on the parking structure, and it has done a great deal in terms of bringing in new commercial and industrial businesses to Lodi. In response to Mayor Pro Tempore Pennino, Mr. Bartlam indicated that he has been working on some of the issues brought up at previous meetings with local developers, which vary on whether it is the building of a house or commercial improvements. With the addition of the contract field inspector, the Department has been able to place emphasis on the permits that need to be processed more expediently and can also get to the smaller jobs such as plan checks and commercial tenant improvements more quickly. The meetings and subsequent survey was also used to determine where the Department could adjust their hours slightly to bring forward a program that would flow more smoothly. Mayor Pro Tempore Pennino suggested that they continue this open dialogue with the developers, because the sales tax report, which indicates that the City is up by 28%, is proof that the efforts are paying off. Council Member Howard suggested that the East Side Improvement Committee's recognition of community members each month in the clean up or restoration of a particular home be included in the list of accomplishments. Council Member Hitchcock commended Mr. Bartlam for his involvement with and appointment to the League of California Cities Community Development Division. In response to Mayor Pro Tempore Pennino, Community Development Director Bartlam reported that the City will not capture the tax increment under the RDA for the theater, because the increment will not actually start flowing in until after the adoption of the plan encompassing the boundaries — probably not until the 2002-03 fiscal year. FINANCE Deputy City Manager Keeter reported on the budget submittal process. Departments submit the budget requests to the Finance Department, and the data, which staff is currently in the process of entering, is compiled into a proposed budget. The Finance Director, her staff, and Ms. Keeter then conduct one-on-one meetings with the departments, and present the recommendations to the City Manager, who reviews and prepares the final budget that is presented to the City Council. The Finance Department accomplishments include: Revenue Services • Tested, installed, and trained staff on the several ORCOM upgrades and implemented solutions to software issues in order to provide improved utility services. ORCOM is the utility billing service system that was installed two years ago. • Continues to cross -train staff to have uninterrupted workflow and to foster a team atmosphere. • Created a centralized telephone pool to allow for faster, more complete customer service. When a customer calls in with any type of question, the employees have been cross -trained to help with the question, or at least get the information for the citizen so they are not transferred from one section to another. • Offers new services, including Direct Pay, which is the electronic payment system, and Budget Billing, which was designed to decrease lobby traffic and help customers with alternative payment methods. Continued February 27, 2001 • Worked with the Electric Utility Department to promote the electric utility rate programs that help customers with reduced utility costs. • Completed the changes to the animal license ordinance, which allows for anniversary and multiple -year renewals. Finance Administration • Assisted the Electric Utility Department in implementing the new business discount system. • Worked with the Public Works Department and the Downtown Lodi Business Partnership to ensure maximum use of available parking in the downtown area, as they oversee the parking enforcement for the City. • Automated some of the manual procedures for compiling information for the budget. • Successfully implemented a reorganization of the department. • Received a number of awards, including the Government Finance Officers Award for financial statements and budget documents; the California Society of Municipal Finance Officers Award for financial statements and budget documents; and the Municipal Treasures Association Award for investment policy. In addition, Finance Director McAthie is involved with the California Municipal Treasurers Association and serves as a division chair for Divisions 6 and 8 and is the Secretary of the Board. She is also on the Educational Committee as a board member and participated on the Treasury Handbook Committee. Field Services • Eliminated the handwriting of the 48-hour notices. Established a preliminary City-wide account re-route plan. Reduced the number of meter re -reads throughout the City. Mayor Pro Tempore Pennino commended the Finance Department on the tremendous job it is doing. Further, Mr. Pennino asked for an update on the possibility of shifting the responsibilities of the parking enforcement to the Police Department. City Manager Flynn replied that this is strictly a policy call. The Finance Department would like to transfer this responsibility, but the Police Department does not want to assume it. At Council Member Hitchcock's suggestion, the Council agreed that they would review the sample mission statements and bring it back to the next Shirtsleeve Session for discussion. Deputy City Manager Keeter reminded the Council that the Town Hall meeting scheduled for Monday evening is a part of the budget process, which will be a brain -storming process with the citizens about projects for the next fiscal year. Staff will have a series of mini -presentation regarding some of the projects that are uppermost in the public's mind, particularly those associated with the Parks and Recreation Department, as well as the Animal Shelter. D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. 0 Continued February 27, 2001 ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at approximately 8:22 a.m. ATTEST: Susan J. Blackston City Clerk 10 CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Review of City of Lodi Department's Accomplishments MEETING DATE: February 27, 2001 SUBMITTED BY: Deputy City Manager RECOMMENDED ACTION: That Council review with staff the accomplishments of specified departments. BACKGROUND INFORMATION: During the Shirtsleeve Session, staff will review with Council various departments' accomplishments over the past year. Enclosed for your information is a copy of the PowerPoint presentation listing the accomplishments for the following departments: Parks and Recreation Fire Finance Community Development Information Systems The remaining departments will be reviewed during the March 6, 2001 Shirtsleeve Session. In addition, the proposed revised Policies and Procedures are attached for your review as discussed during the February 20, 2001 Shirtsleeve Session. The proposed amendments have been highlighted within the document. Respectfully, 4�— Ja(het S. Keeter Deputy City Manager JSK/sl Attachment APPROVED: H. Dixon Flynn -- City Manager J Mayor's & Council Member's Weekly Calendar WEEK OF FEBRUARY 27, 2001 Tuesday, February 27, 2001 7:00 a.m. Shirtsleeve Session - topic 1.' Review of City Department's Accomplishments 9:00 - 11:30 a.m. LU5D, Lincoln School District and 51 Office of Education present free seminar, Or. Steve 5roka, "Violence and Drugs: A Wake -Up Call", Scottish Rite Temple, Education Service Center, Stockton. 6:00 p.m. Nakanishi and Land. Sister City Annual Dinner, Hutchins Street Square Cottage Room. Dinner at 6:30 p.m. Wednesday, February 28, 2001 7:00 - 8:45 a.m. San Joaquin County Leadership Prayer Breakfast, Stockton Civic Memorial Auditorium. 12:00 p.m. Retirement luncheon for Jack Stone with the Electric Utility Department, Pietro's. 3:30 p.m. Nakanishi. Meeting with Holtz Rubber Company, 1129 5. Sacramento St. 6:00 p.m. Nakanishi. 'Meet the Mayor" meeting, Carnegie Forum. The topic is: 1. Streets Issues Thursday, March 1, 2001 .7:00 - 8:30 p.m. Lower Sacramento Road Widening Public Meeting, Temple Baptist Church, Room D2. 5:30 p.m. Joint dinner meeting between the City Council and Lodi Unified School District, Hutchins Street Square — Pisano Room. Friday, March 2, 2001 7:30 - 4:30 p.m. Chamber of Commerce Farm Safety Day 2001, Lodi Grape Festival Grounds. 8:00 a.m. Nakanishi. Youth Commission Conference, "Discover Your Potential", Lodi Academy Campus. Mayor to welcome the group. Saturday, March 3, 2001 3:00 p.m. Boy Scouts of America Eagle Scout Court of Honor, St. Paul's Lutheran Church. Sunday, March 4, 2001 Monday, March 5, 2001 7:00 p.m. Town Hall Meeting, Carnegie Forum. The topic is: 1. Projects for City Budget Fiscal Year 2001-2003 Disclaimer: This calendar contains only information that was provided to the City Clerk's office counciRmisclmcalndr.doc 2001-2003 Financial Plan and Budget Instructions KAJOR BUDGET PREPARATION iMILESTONES 02/20/01 PUBLIC STAFF MEETINGS Budget Calendar Release 11/28/00 Capital Improvement Plan (CIP) — Prelim meeting 12/5/00 Departments Review of Fiscal Policies 12/11/00 Issue Budget Instructions 1/8101 Submit Budget Requests to Finance Department 2/19/01 City Council Review of Fiscal Policies/Goats 2/20/01 City Manager Revenue Review 2/26/01 City Council Update Status on Departmental Accomplishments 2/27/01 City Council Project Setting Brainstorming Session with Public Comment 3/5/01 City Council Update Status on Current Projects 3/6/01 City Manager Budget Request Review with Departments 3/6 — 15/01 City Council Set Project Objectives 3/27/01 City Council Review of Revenue Assumptions & General Fund Projections 4/10/01 City Council Budget Revenue and General Fund Projections - continued 4/17/01 City Council Budget Expenditure, CIP & Fund Status 5/1,8,15/01 Draft Financial Plan and Budget 5/22/01 Introduced at Regular City Council Meeting 6/6/01 Adopt Financial Plan & Budget 6/20/01 02/20/01 Samples of Mission Statements Pasadena, Ca: It is the mission of the Council to provide leadership for the community through the establishment of policies, which will lead to the enhancement of the quality of life for Pasadena residents. The City Council's seven Goals are: 1. Respond to the need for competitively priced water and power 2. Assure community safety and security 3. Foster economic prosperity 4. Create neighborhood vitality and livability 5. Focus on planning, programming and reinvesting 6. Create a more effective, cost efficient government 7. Support out public schools Charleston, South Carolina The Charleston City government will help create a vision of excellence for the community by listening and responding to the needs of its citizens, by providing the highest quality public services in a cost-effective and innovative manner, and by creating a safe, livable and economically sustainable environment for all if its citizens. Sarasota, Florida A city of urban amenities with small town living and feeling. Our goals are: 1. Safe place for people 2. Healthy neighborhoods 3. Visual appeal of city 4. Responsible city government 5. Economic vitality Maple Ridge, British Columbia, Canada A safe and livable community for our present and future citizens. Leadership To encourage innovation, creativity, and initiative. Service To be fair, friendly, and helpful. Reputation To stress excellence, integrity, accountability, and honesty. Human Resources To recognize that our people are our most valuable resource. Community To respect and promote our community. Town of Richmond Hill, Ontario, Canada The Town of Richmond Hill, the gateway of opportunity, is committed to responsible public service that provides for managed growth, respect for community values and protection of the natural environment. City of Champaign, Il Responsive and Responsible Community Service We represent the City of Champaign. Our mission is resp9onsive and fiscally responsible service to our citizens. Our services enhance the safety, health, and general welfare of citizens within the community. Our service-oriented philosophy balances various community needs with municipal resources. Our commitment to service involves respect, integrity competence, teamwork and service. Respect Courtesy communicates respect to which all persons are entitled. Fairness and objectivity are standards which guide our decisions regarding citizen services and employees. We are dedicated and loyal to the citizens for whom we work, the people with whom we work, the City, and the community. Our individual and collective commitment to serve reflects our concern for other. WE CARE! Integrity Our service is open and fair to all. We communicate honestly and accurately which establishes credibility and mutual respect. Our personal accountability and interdependability builds trust. Acceptance of responsibility is critical to our effectiveness. WE ARE RESPONSIBLE! Competence We seek excellence in work achievement in response to what needs to be done. We constantly strive to improve ourselves, our organization, and our community. Improvement is obtained through our individual and collective preparation, involvement, commitment, and creativity. WE DO THE RIGHT JOB RIGHT! Teamwork Our team includes citizens, elected officials, board and commission members, and City staff. We work together for abetter community. Our shared responsibility and leadership demonstrate our mutual commitment to serve. Our teamwork is build upon our trust, openness, and communication. WE WORK TOGETHER! Service We seek to understand the customers' needs and priorities to ensure that they are well -served and that their concerns are treated in a fair, prompt, courteous and respectful manner. WE LISTEN AND RESPOND! Bell Gardens, Ca Bell Gardens is a safe and economically vibrant community of quality housing, shopping areas and public facilities. Bell Gardens improves the quality of life for its residents through education, job creation, cultural and recreation development. Bell Gardens, A City that Works. City of Madison Heights, Michigan The mission of the City of Madison Heights is to provide high quality services to residents and businesses in the most efficient and effective manner possible so as to maintain and enhance, where possible, the public's health, safety, and quality of life. Town of Addison, Texas Working together to provide and protect an enhanced quality of life for our community and each other through a balance of personalized service, uncompromising commitment and individualized accountability. The Town of Addison will maintain a dynamic progressive quality atmosphere in which to work, play and live with an emphasis on balanced growth. Palo Alto, Ca The -,ovemment of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with the community, our goal is to deliver cost-effective services in a personal, responsive and innovative manner. The City of Palo Alto's values are: Courtesy — Providing service with respect and concern. Efficiency — Productive, effective us of resources. Integrity — Straight -forward, honest and fair relations. Innovation — Excellence in creative thought and implementation. Quality — Superior delivery of service. Responsiveness — Quick, thorough, and concise problem resolution. It's a matter of pride! 2001 m2003 inancial Plan & Bud -I City of Lodi et Council Shirtsleeve Session February 27, 2001 . .... ...... m cu _0 a) E cn E 0 < all i��; a F 0 ■ Completed fishing and boating dock Lodi Lake Bike Trail Facilities lights ra Katzakian Park construction Peterson Park restrooms �� i ! � ' • a . il. Parks and Recreation: Commission Addressed various issues, malting sound recommendations Reviewed and recommended various fees and charges Encouraged participation for all levels of activities to f Parks After School P Program M. Reached a 100% return rate • - program Increased •.•I enrollment and provided a quality program Parks and Recreation: Youth/ Teen Sports RV Programmed for Youth and Teens V Steady Growth in all programs Secured facilities U) �> o AW ■ � 0 Lm oL o (I) 0 �� o� c t6 L t� Q co V v co CL o cam OC u m 0 t� 4i LM E 76 ) CO c CMM 0 m2 cc: a) (j) C/) LM C z tL' Z cn o Parks and Recreation: Adult Sports Programmed for over 4000 participants Less emphasis on competition National Softball Association World Series Championship softball event YJ. Parks and Recreation: Concessions Quality food service Quality workplace ■ I.r. . no r J tCi Cc L 0 U N Q 75 E cn cn N C� O L . Z7 U U cz ^, C7 0 (n Q {� M -i+�+ Co Lum LS.. cc C 0cc 0 Cll a mmi 'i+E: ?!i Parks and Recreation: Sports Facilities Maintenance Attractive sports facilities tournaments Prepared facilities for in-house recreational I ewe cc (i (1) WCL 0 4-0 Co CY) cz Q) 0 Qv 0 C) 0 C;) LM 0 CD C m cc 0 an mmi Parks and Recreation: Parks Maintenance New lights Restroom improvements Peterson Park Restroom Maxicorn Irrigation System Zupo seating Handicap walkways It ge To fir.'si. na 0 Mis s.. z --v tv � .,> -� caom� 0 CA ME O Q �� o � E CcCc0 U) U O.. CL o to, ll!; I m 0 CC E • E 2 C D 0 4- o 0 0 E• -0 c -a CL(3) CL -0 0 -0 0) he0) X -0 Cc rr QL Z) cu -a CL am LLJ Ml MtL @ � � � M a. ��»:2/\:. \(q� • . wz. Firefighter recruitment F., , New fire truck Department personnel Emergency Operation Center Manual a West side Fire Station u rn­i cy, f i i- R'p , ��i t10" .... ...... .. .. , I '', <Yo Fire Department: EmergencyServices Engine -1 Foam unit F., Staffing of Truck Company Plan for the remodel of Fire Station #1 and #2 Replaced Squad Updated Self -Contained Breathing Apparatus i ................... . . <* Fire Department: Fire and Life Safety Home Alone program Risk, Hazard and Value Evaluation program Joint Arson Investigation unit New Fire Marshal ig Level 11 fire prevention courses by Fire Marshal Tracking of new Businesses ff MMM 'UJl: i� � V <10 . . . ..... ..... .. Fire Department: Trainina moo Driver/operator certification Training and references library House ICS 200 80 Recruit academy Rescue training with electrical dept. Multi company training Live training of thermal imaging equipment Skills path seminar . . .. ........... Fire Department:� Special Services w Tiller Truck/Quint Pre -fire planning program City's Wide Area Network E-mail capability ti Fire Station 4 Diesel exhaust extraction system Equipment replacement program 0 U E U) 0- E U U cu L- 0 CCS CommunityDevelo ment: CurrentlAdvanced Planning Zoning code revision Greenbelt Policy (2X2X2) Discussion Redevelopment Agency #J E 0 >% 04,m wt�! m 0v Em� E-� on �- 2 0 d IL co CU 9 col A 14 li 4- U to WA 4- 0 cCD X E W W N m I 0- E E 0 U 0 c� 75 y— � Cts -�-+ Cti s_ t3 O U_ m .0 o - o tL E Q C6 N C (� E 0 0 C.2. () L ','� CCi L ECS _ Cl) C: W 0) L- ate, Co N s_ O CL _ 4- . N •� CL. to L � �- N - La-) 0 U U© � 0� W t.L N I'M Alt N 0 4-4 -F� FE 0 0 co 0 co E -0 0 c 0 4— 0 0 0 m 75 C) > c ca+pN 0 0) CD .2 .0 co E m cu C: LZ cc m E U ♦ + + + cn ca 12 E E 't0 Rei 0- co =3 0 cu (D 0 to a) 00 C: 3: 0 -1 - -0 .�= -0 co C: >% 4 � a) a) 0 C: L- (n (n 0 (D 0 0 M Co c m C: a) U) Li — 0 cc m 0 C) .0 4-0 m 0) E co— m a- :4= CD (D N -E LL LL. -0 c—: E -m a) _0 o cu U) "cu. 0) . -�e 0 0 L- cu (D 0 0 Z 0 1- CDL 0- 0 Elf ED < + + + of RD m I .Lcon Q cu i E —o C.i (%� � Q -c N -� Q -� v � � v tj w�UL- o�E LLW M. h ii 91 0 E 0 .. ocn 1.0 E 0 m M4, O C: 0 c O E Wcu 4-a a) E cn N (n E cn M :30 CL E CL cu E 0 .I-- CL CD M 4-, E UJ a) 0 (D 0 75 F- 0) m CL a) ��; ED U) m U- w Ch N >- >1 4-a X -0 E a) -0 0 cn co >1 0 0 a) E = C: 0 Q7 0 s1 CU O 31- 76 < c) '"D 0 _P a) , —i5 2 CL —M ',4 L- D Q- z CU 0 3: C- E L- (D 76 &- a) �: 43 L_ 0 0 L- N < :t:! 0 0 0> 0 -0 -I 4-J �E &-a -S z< m M4, 2001-2003 FINANCIAL PLAN AND BUDGET OVERVIEW - BUDGET POLICIES AND GOALS OVERVIEW The overall goal of the City's Financial Plan and Budget is to establish and maintain effective management of the City's resources. Formal statements of budget policy and major goals provide the foundation for effective planning. Accordingly, this section describes the basic budget policies used in guiding the preparation and management of the City's overall budget. This section is composed of the following major units: * Budget Management and Control Policies * Major City Goals Some of the benefits to establishing financial policy include: I. Publicly adopted policy statements contribute greatly to the credibility of and public confidence in the City. For the credit rating industry and prospective investors, such statements show the City's commitment to sound financial management and fiscal integrity. 2. Established policy saves time and energy. Once decisions are made at the policy level, the issues do not need to be discussed each time a decision has to be made. 3. The process of developing overall policy directs the attention of staff and Council to the City's total financial condition rather than single -issue areas. Moreover, this process requires staff and Council to think about linking long-term financial planning with day -today operations. 4. As overall policies are developed, the process of trying to tie issues together can bring new information to the surface and reveal further issues that need to be addressed. 5. Developing financial policies reinforces the Council's policy role in maintaining good financial condition. 6. Setting financial policies can improve the City's fiscal stability by setting a forward-looking approach to planning. 7. Explicit policies contribute to continuity in handling the City's financial affairs. BUDGET MANAGEMENT AND CONTROL POLICIES The following policies guide the preparation and execution of the 2001-2003 Financial Plan and Budget: * Financial Plan Organization * Investments * Budget Administration * Capital Financing and Debt Management * General Revenue Management * Capital Improvement Budget * Recreation and Community Center Fees * Human Resource Management * Enterprise Fund Fees and Rates * Productivity Reviews * Other Fees and Rates * Contracting For Services * Revenue Distribution * Allocating Cost of Services * Appropriation Limitation * Carryover Policy * Fund Balance Designations and Reserves * Fleet Policy 2001-2003 FINANCIAL PLAN AND BUDGET OVERVIEW - BUDGET POLICIES AND GOALS MAJOR CITY GOALS The involvement of the City Council in setting major City goals is essential to the budget process. These goals provide short term and long term direction to staff, determine the allocation of resources and establish priorities. These goals will provide focus to the organization -wide efforts of staff and ensure that the most important, highest priority objectives are accomplished and, that these priorities are communicated to the public. The major City goals are provided in this part of the 2001-2003 Financial Plan and Budget. IM 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES FINANCIAL PLAN ORGANIZATION A. Through its financial plan, the City will: 1. Identify community needs for essential services 2. Organize the activities required to provide these services. 3. Establish policies and goals that define the nature and level of services required. 4. Identify activities performed in delivering services. 5. Propose objectives for improving the delivery of services. 6. Identify and appropriate resources required to perform services and accomplish objectives. 7. Set standards to measure and evaluate the: a. Output of activities b. Accomplishment of objectives c. Expenditure of appropriations B. The City will use a two-year financial plan and budget concept to emphasize long-range planning and effective management of services. The benefits of a two-year financial plan and budget are: 1. Reinforces long-range planning 2. Concentrates on the development and budgeting for significant objectives 3. Establishes realistic schedules for completing objectives 4. Provides for orderly and structured operations 5. Promotes orderly spending patterns C. The two-year financial plan and budget will establish measurable objectives and allow reasonable time to accomplish those objectives. D. The status of major program objectives will be reported to the Council semi-annually. E. The City Council will review and amend appropriations, if necessary, semi-annually. BUDGET ADMINISTRATION A. City Council The City Council is ultimately responsible to the public for the delivery and conduct of City services and facilities. Accordingly, the Council appropriates funds to ensure the delivery of services at the levels and in the priority established by the Council. MN 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES B. City Manager The City Manager as the chief administrative officer provides the City Council and Staff with general direction in the development and formulation of the staff's budget recommendation. This includes: evaluating and assessing current and projected issues confronted by the City; determining the demand for services and facilities; identifying the concerns of the voters; assessing the current and projected financial condition of the City; and determining the final staff recommendation. C. Finance Director/Treasurer The Finance Director as the chief financial officer is responsible for budget development and administration. This includes: developing and issuing the budget instructions and calendar; advising the City Manager on budget policies, including recommended annual target funding levels for fleet funds; reviewing budget requests to ensure they are complete and accurate; preparing the preliminary budget recommendation for review by the City Manager; and, publication of the approved budget. D. Public Works Director The Public Works Director is responsible for preparing the City's capital improvement budget (CIB) and the City's Equipment Replacement Schedule (ERS). In this capacity, the Public Works Director works closely with the Electric Utility Director to prepare an integrated CIB and ERS in recognition of the unique responsibilities and scope of services offered by the Electric Department. E. Department Directors Department Directors are responsible for preparing their operating budget requests and capital budget requests in accordance with the City's budget instructions. F. Fleet Committees Fleet committees were established to serve the City Manager in all vehicle -related matters to include budgeting, acquisition, disposition, assignments, vehicle operations, maintenance and insurance. G. Failure to Adopt Budget If the City Council fails to adopt the budget by July 1, the City Council may elect one of the following courses of action until passage of a budget and the appropriation of funds: (1) Provide the City Manager with Continuing Resolution Authority to allow continued services at expenditure levels not greater than those levels approved in the prior year budget; or (2) Require staff to obtain prior approval for the expenditure (disbursement) of City funds. H. Public Record Copies of the adopted City budget shall be public records available to the public upon request. GENERAL REVENUE MANAGEMENT A. The City will seek to maintain a diversified and stable revenue base to protect it from short-term fluctuations in any one revenue source. 20012003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES B. To emphasize and facilitate long-range planning, the City will project operating revenues for the succeeding five years. C. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by accruing future revenues, rolling over short term debt or borrowing reserves of one fund to another. RECREATION AND CONQMIUNITY CENTER FEES A. Recreation service cost recovery goals are addressed as an integral component of the City's annual comprehensive user fee analysis process. It is the City's goal that a ® of 30% of the total cost of the City's recreation and community center programs should be recovered through fees and charges for recreation activities and the use of City facilities and equipment. In achieving this overall cost recovery goal, the following guidelines will be used: 1. Cost recovery for activities directed to adults should be relatively high. 2. Cost recovery for activities for youth should be relatively low. Although ability to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants. Further, there is a community wide benefit to encourage high -levels of participation in youth recreation activities regardless of financial status. 3. For cost recovery activities of less than 100%, there should be a differential in rates between residents and non-residents. 4. These policy guidelines are sufficient in themselves in providing direction for setting the recreation and community center fees. Although these targets may be internally useful in administering recreation fees, the City's management should have as much flexibility as possible in setting specific activity fees as long as they meet the objectives and criteria provided above. However, the Recreation Department and Community Center will prepare and submit a summary of internal cost recovery targets to the City Manager for various activity categories at least annually. B. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special use areas, and recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will generally conform to the fee support categories listed above. C. The Recreation Department and Community Center may waive fees with the approval of the City Manager when it is determined that an undue hardship exists or when in the best interests of the City. 20012003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES ENTERPRISE FUND FEES AND RATES A. The City will set fees and rates at levels which fully cover the total direct and indirect costs ......including operations, capital outlay and debt service..... of the following enterprise programs: electrical, water, sewer, and transit. B. The City will annually review and adjust enterprise fund fees and rates as required to ensure that they remain appropriate and equitable; and to stem large rate increases. OTHER FEES AND RATES A. Ongoing Review Fees and rates will be reviewed and updated on an ongoing basis to ensure that they are correct and appropriate based on the changing needs of the community, i.e. economic concerns, social issues, public safety. B. General Concepts Regarding the Use of Service Fees and Rates The use of fees and rates should be subject to the following general concepts: 1. Revenues normally will not exceed the reasonable cost of providing the service. 2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs, and organization wide cost such as accounting, personnel, date processing, vehicle maintenance and insurance. 3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection. 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service and the influence rates and fees have on economic development. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. C. Low Cost Recovery Services Based on the criteria discussed above, the following types of services should have very low cost recovery goals. In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them. However, the primary source of funding for the operation as a whole should be general purpose revenues, not user fees. 1. Maintaining and developing public facilities that are provided on a uniform, community wide basis such as streets, parks and general purpose buildings. 2. Delivery of social service programs and economic development activities. B-6 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES D. Comparability with Other Communities 1. Fee surveys should never be the sole or primary criteria in setting City fees. There are many factors that affect how and why other communities have set their fees at their levels. For example: a. What level of cost recovery is their fee intended to achieve compared with Lodi's cost recovery objectives? b. What costs have been considered in computing the fees? C. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with Lodi's service or performance standards? e. Is their rate structure significantly different than Lodi's and what is it intended to achieve? 2. Surveys comparing the City's fees to other communities is useful background information in setting fees for several reasons: a. They reflect the "market" for these fees and can assist in assessing the reasonableness of the City's fees. b. If prudently analyzed, they can serve as a benchmark for how cost effective the City provides services. These are difficult questions to address in fairly evaluating fees among different cities. REVENUE DISTRIBUTION The Council recognizes that generally accepted accounting principles for local government discourage the "earmarking" of General Fund revenues, and accordingly, the practice of earmarking general fund revenues for specific programs should be minimized. Approval of the following Revenue Distribution policies for 2001-2003 does not prevent future Councils from directing General Fund resources to other funds and activities as necessary. IM 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES A. Property Tax Allocation 1. The City's property tax serves to provide for general municipal services as well as for debt service, retirement obligations, public improvements and library purposes. The passage of Proposition 13 on June 6, 1978, drastically changed the method of establishing and allocating property tax revenues for all local agencies in California. In addition to limiting annual increases in market value, placing a ceiling on voter approved indebtedness and redefining assessed valuations, Proposition 13 established a maximum County wide levy for general revenue purposes of 1 % of market value. Under subsequent state legislation which adopted formulas for the distribution of this countywide levy, the City now receives a percentage of total property tax revenues. 2. As discussed above, the City no longer controls the amount or distribution of its property tax. In distributing property tax revenues between funds since the passage of Proposition 13, the following minimum ratios for special purposes have traditionally been used based on the tax rates that were in effect prior to the passage of Proposition 13: Fiscal Year 1978-79 Tax Rate Per $100 Percent Special Municipal Purposes Library $ .30 17.86% General Municipal Purposes 1.38 82.14 TOTAL $ 1.68 100.00% 3. For 2001-2003 property tax revenues will be distributed proportionately to the following funds as follows: General Fund Capital Outlay Fund - General Fund Library Fund TOTAL 2001-02 2002-03 50% 50% 30% 30% 20% 20% 100% 100% 4. The distribution of property tax received on land annexed to the City will be in accordance to the agreement with San Joaquin County. B. All Gasoline Tax revenues will be used for street maintenance and construction activities. Pursuant to the San Joaquin County's local Transportation Sales Tax (Measure K), the City must meet the "Maintenance of Effort" (MOE) requirement which is based on the annual average of the City's street and road expenditures funded by the General Fund fixed on a three year period. C. All Transportation Development Act (TDA) revenues will be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements and other programs or projects designed to reduce automobile usage. It is expected that B-8 20012003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES alternative transportation programs - in conjunction with other state and federal grants for this purpose- will be self-supporting from TDA revenues. As available, TDA funds will also be used for street maintenance projects. D. Enterprise Fund Allocations to the General Fund 1. The goal of Proposition 4 is to limit growth in appropriations of both state and local government to changes in the cost of living and population in order to control spending levels. Proposition 4 further describes the difference between "tax proceeds" and fees. Tax proceeds are the revenue from regulatory licenses, user charges and user fees to the extent the revenue exceeds the cost of providing the regulation, product or service. (This includes transfers from an enterprise fund to the extent those funds exceeded the cost of providing the services). 2. As discussed above, the funds transferred from the City's enterprise funds to the City's general fund are "In -Lieu of Taxes" to the extent they exceed the cost of services provided by general services (accounting, personnel, legal, insurance, etc.). These taxes will be levied based on prior year revenues as follows: 2001-02 2002-03 In -lieu of Tax - Electric 12% 12% In -lieu of Tax - Water 17% 17% In -lieu of Tax - Sewer 20% 20% E. Special Revenue Allocations to the General Fund Revenues the City receives for specific services (i.e. vehicle tow charges) will not be designated for use by an individual department unless required by statute or approved by the City Council. When required by statute (i.e. asset seizure), these funds will be first allocated to the purchase of necessary and essential equipment and/or services prior to purchase with General Fund resources. APPROPRIATION LIMITATION A. The Council will annually adopt a resolution establishing its appropriation limit calculated in accordance with Article XIIIB of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriation limit. B. The City will strive to develop revenue sources, both new and existing, which are considered non - tax proceeds in calculating its appropriations subject to limitation. C. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General Fund or Enterprise Funds. 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES FUND BALANCE DESIGNATIONS AND RESERVES A. The City should maintain fund balances of at least 15 % of operating expenditures in the General Fund as well as the Electric, Sewer, and Water Funds. This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local economy. 2. Contingencies for unforeseen operation or capital needs. 3. Cash flow requirements. B. The City will establish and maintain an Equipment Fund to provide for the timely replacement of vehicles and capital equipment. This includes items with an individual replacement cost of $3,000 or more. The minimum fund balance in the Equipment Fund should allow for annual fluctuations in expenditures while maintaining a level annual transfer and allow for emergency replacement purchases. The annual contribution to the Fund will generally be based on the annual "use allowance" which is determined based on the estimated life of the vehicle or equipment and its original purchase cost. Interest earnings and sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Equipment Fund. C. The Council may designate specific fund balance levels for future development of capital projects which it has determined to be in the best long-term interests of the City. D. In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. IZU R3 VaIM►Ylti A. Investments and cash management will be the responsibility of the City Finance Director/Treasurer or designee. B. The City's primary investment objective is to achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. Accordingly, the following factors will be considered in priority order in determining individual investment placements: 1. Safety 2. Liquidity 3. Yield B-10 20012003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES C. The City will strive to keep idle cash balances fully invested through daily projections of cash flow requirements. To avoid forced liquidations and losses of investment earnings, cash flow and future requirements will be the primary consideration when selecting maturities. D. As the market and the City's investment portfolio change, care will be taken to maintain a healthy balance of investment types and maturities. E. The City will invest only in those instruments authorized by the California Government Code Section 53601. The City will not invest in stock, will not speculate, and will not deal in futures or options. The investment market is highly volatile and continually offers new and creative opportunities for enhancing interest earnings. Accordingly, the City will thoroughly investigate any new investment vehicles prior to committing City funds to them. F. Current financial statements will be maintained for each institution in which cash is invested. Investments will be limited to 20 percent of the total net worth of any institution and may be reduced further or refused altogether if an institution's financial situation becomes unhealthy. G. In order to maximize yields from its overall portfolio, the City will consolidate cash balances from all funds for investment purposes, and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. H. Ownership of the city's investment securities will be protected through third -party custodial safekeeping. I. The City Finance Director/Treasurer will develop and maintain a comprehensive, well documented investment reporting system which complies with Government Code Section 53607. This system will provide the City Council with appropriate investment performance information. J. The City Finance Director/Treasurer will develop and maintain an Investment Management Plan which addresses the City's administration of its portfolio, including investment strategies, practices, and procedures. CAPITAL FINANCING AND DEBT MANAGEMENT Capital Financing A. The City will consider the use of debt financing only for one-time capital projects and only under the following circumstances: 1. When the project's useful life will exceed the term of the financing. 2. When project revenues or specific resources will be sufficient to service the long-term debt. B-11 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES B. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short-term instruments such as revenue, tax, or bond anticipation notes is excluded from this limitation. C. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes, or developer agreements when benefits can be specifically attributed to users of the facility. D. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: Pay -As -You -Go 1. When current revenues and adequate fund balances are available or when project phasing can be accomplished. 2. When debt levels adversely affect the City's credit rating. 3. When market conditions are unstable or present difficulties in marketing. Long -Term Financing 1. When revenues available for debt service are deemed to be sufficient and reliable so that long- term financing can be marketed with investment grade credit ratings. 2. When the project securing the financing is of the type which will support an investment grade credit rating. 3. When market conditions present favorable interest rates and demand for City financing. 4. When a project is mandated by State or Federal requirements and current revenues and available fund balances are insufficient. 5. When the project is required to meet or relieve service requirements. 6. When the life of the project or asset financed is 10 years or longer. Debt Management E. The City will not obligate the General Fund to secure long-term financing except when the marketability can be significantly enhanced. F. No more than 60% of all capital projects will be funded from long-term financing; and direct debt will not exceed 2 % of the City's assessed valuation. G. A feasibility analysis will be prepared for each long-term financing to assess debt service on current and future operations. This will also include an analysis on the reliability of revenues to support a debt service. B-12 2001-2403 FINANCIAL PLAN AND BUDGET BUDGET POLICIES H. The City will generally conduct debt financing on a competitive basis. However, negotiated financing may be used due to market volatility or the use of an unusual or complex financing or security structure. I. The City will seek investment grade ratings (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost-effectiveness. The City will monitor all forms of debt annually coincident with the budget process. K. The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations. L. The City will maintain good communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). CAPITAL IMPROVEMENT BUDGET A. Construction projects and capital purchases (other than vehicles, equipment and major computer software acquired through the Equipment Fund and projects funded by an Enterprise Fund) which cost more than $10,000 will be included in the Capital Improvement Budget (CIB); minor capital outlays of $10,000 or less will be included with the operating activity budgets. Enterprise Fund projects and major equipment purchases will be based on the capitalization practices of the Enterprise. B. The purpose of the CIB is to systematically plan, schedule, and finance capital acquisitions to ensure cost-effectiveness as well as conformance with established policies. The CIB will be a four-year plan organized into the same functional groupings used for the operating budget. The CIB will reflect a balance between capital replacement projects which repair, replace, or enhance existing facilities, equipment or infrastructure; and capital facility projects which significantly expand or add to the City's existing fixed assets. C. Every capital project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. D. A CIB Coordinating Committee, chaired by the Directors of Public Works and the Electric Utility Department, will review project proposals, determine project phasing, recommend project managers, review and evaluate the draft capital budget plan, and report project status at least annually to Council. The Committee should be made up of representative of each Department. B-13 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES E. The Capital Improvement Budget will emphasize project planning, with projects progressing through at least two and up to six of the following phases: * DESIGNATED - Set aside funding for future project development under "pay-as-you-go" financing. * STUDY - Includes concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, and specification preparation for equipment purchases. * ACQUISITION - Includes equipment purchases and property acquisition for projects, if necessary. * DESIGN - Includes final design, plan and specification preparation, and construction cost estimation. * CONSTRUCTION - Includes bid administration, construction, project inspection and management, and closeout. * DEBT SERVICE - Installment payments of principal and interest for completed projects funded through debt financing. Generally, it will become more difficult for a project to move from one phase to the next. As such, more projects will be studied than will be designed, and more projects will be designed than will be constructed or purchased. F. Funding and related appropriation to a project account will only be made upon approval of each phase by the City Council. Accordingly, project appropriations for acquisition and construction will generally be approved when contracts are awarded. G. Project phases will be listed as objectives in the program narratives of the Activity responsible for the project. H. Funding set aside for designated projects will lapse after three years if the project has not made significant movement through the phases, or if the project has not been revalidated. This will ensure funds are not tied up and are available for the timely completion of active projects. The projects where funding set aside has lapsed will have to be resubmitted for consideration in the next budget cycle. HUMAN RESOURCE MANAGEMENT A. Regular authorized staffing will be fully budgeted and funded. B. Staffing and contract service budget ceilings will limit total expenditures for regular employees, temporary employees, overtime and independent contractors hired to provide operating and maintenance services. B-14 20012003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES C. Regular employees will be the core work force and the preferred means to staff ongoing, year-round activities rather than independent contractors. The city will strive to provide fair compensation and benefit schedules for its authorized regular work force. Each regular employee will: 1. Fill an authorized regular position. 2. Be assigned to an appropriate bargaining unit or representative group. 3. Receive salary and benefits consistent with labor agreements or other compensation plans D. To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures: 1. The City Council will authorize all regular positions except in the case of the Library which is governed by the Library Board. 2. The Human Resources Department will coordinate the hiring of all employees and evaluate the reallocation of existing positions. 3. All requests for additional regular positions will include an evaluation of: a. The necessity, term, and expected results of the proposed position. b. Staffing and material costs including salary, benefits, equipment, uniforms, clerical support, and facilities. c. The ability of private industry to provide the proposed service. d. Additional revenues or cost savings which may be realized. 4. Periodically, and prior to any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees under a "productivity review". E. Temporary employees are employees other than regular employees, elected officials, and volunteers budgeted in hours. Temporary employees will augment regular City staffing only as limited term employees, seasonal employees, emergency, intermittent, contract employees, and interns. The City Manager will encourage the use of temporary employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than regular, year- round staffing is required. F. Contract employees will be defined as temporary employees with written contracts approved by the City Manager who may receive approved benefits depending on hourly requirements and the length of their contract. Contract employees will generally be used for medium-term (generally between six months and two years) projects, programs, or activities requiring specialized or augmented levels of staffing for a specific period of time. The services of contract employees will be discontinued upon completion of the assigned project, program or activity. Accordingly, contact employees will not be used for services that are anticipated to be delivered on an ongoing basis. B-15 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES G. Independent contractors will not be considered City employees. Independent contractors may be used in two situations: 1. Short term, peak workload assignments to be accomplished through the use of personnel contracted through an outside employment agency. All placements through an outside employment agency will be coordinated through the Human Resources Department and subject to the approval of the Human Resources Director. 2. Construction of public works projects and the provision of operating, maintenance, or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills, and equipment will generally be determined and provided by the contractor. PRODUCTIVITY REVIEW The City will constantly monitor and review its methods of operation to ensure that services continue to be delivered in the most cost-effective manner possible. This review process encompasses a wide range of issues, including: A. Maintaining a decentralized approach in managing the City's services. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by: o Encouraging accountability by delegating authority to the lowest possible level. o Stimulating creativity, innovation, and individual initiative. o Reducing the administrative cost of operation by eliminating unnecessary review procedures. o Improving the organization's ability to respond to changing needs and to identify and implement cost saving programs. o Assigning responsibility for effective operations and citizen responsiveness to the department. B. Analyzing systems and procedures to identify and remove unnecessary review requirements. C. Evaluating the ability of new technologies and related capital investments to improve productivity. D. Investing in the City's most valuable asset - personnel staff - by developing the skills and abilities of all City employees, with special emphasis on fust -line supervisors. E. Implement annual performance reviews and appropriate methods of recognizing and rewarding exceptional employee performance. F. Evaluating local market service providers and other government agencies to determine whether the service is available at a lower cost than provided by City staff. G. Periodic formal review of operations on a systematic, ongoing basis. B-16 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES CONTRACTING FOR SERVICES A. General Policy Guidelines 1. Contracting with the private sector and other government agencies for the delivery of services provides the City with the opportunity for cost containment and productivity enhancement. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost effective services. 2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies, and ongoing operation and maintenance services. 3. In evaluating the costs of private sector contracts compared with in-house performance of the service, indirect, direct and contract administration costs of the City will be identified and considered. 4. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 5. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment or absorption by the contractor. B. Evaluation Criteria Within the general policy guidelines stated above, the cost-effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria: 1. Is a sufficient private sector market available to deliver this service? 2. Can the contract be effectively and efficiently administered? 3. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? 4. Can a private sector contractor better respond to expansions, contractions, or special requirements of the service? 5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? 6. Does the use of contract services provide the City with an opportunity to redefine service levels? 7. Will the contract limit the City's ability to deliver emergency or other high priority services? B-17 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES 8. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? ALLOCATING THE COST OF SERVICES A. General Policy Guidelines 1. The City is committed to achieving efficiency by centralizing general administrative services to the extent they serve the needs of the City as a whole and provide for greater cost efficiency. Accordingly, general and administrative services will be charged to those activities not financed by the General Fund by use of a cost allocation plan. 2. The City will develop a cost allocation plan for general government services provided the City's enterprise fund and special revenue fund activities in accordance with accepted cost allocation methodology. 3. The cost of general government services will be financed by operating transfers established in the cost allocation plan and transferred to the general fund annually at the time the City budget is adopted. 4. The Finance Director will perform periodic reviews of the City's cost allocation plan to ensure the distribution of costs are made in accordance with accepted practices of the City. The results will be used to project annual operating transfers. 5. The City will develop a cost allocation plan in accordance with Federal and State policies to ensure the maximum allowable return to the City of indirect/overhead costs. B. Cost Allocation Criteria 1. Costs will be allocated considering the following criteria: * Cause and effect - the identification of output in proportion to the service provided. * Benefits received - the allocation of cost in relation to the benefits received. * Fairness and equity - the allocation must be mutually satisfactory to the parties affected. * Ability to bear - the allocation of cost must consider the ability to pay and the impact on the services provided. 2. Costs will be allocated to activities when the overall service benefits the City as a whole but a particular cost benefit can not be shown. 3. The criteria for allocating costs will be included in the City budget to allow for evaluation of the cost distribution criteria. B-18 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES CARRYOVER POLICY The Two year Financial Plan and Budget used by the City provided the City Council and staff with the opportunity to commit operating funds to services over a two-year time frame rather than the traditional one-year period. Under a one-year budget, appropriations lapse at the end of the fiscal year, and favorable budget balances are no longer available for operating expenditures except when encumbered under contractual agreements. The two year financial plan and budget allows for the unexpended operating budget balances to be carried forward to the second year of the Financial Plan. To ensure fund balance projections remain on target, any unexpended operating balances will be reduced if the actual revenue received is materially less than the estimated revenue projected in the Financial Plan. The use of carryover funds from the first year into the second year of the Financial Plan recognizes that the delivery of new or enhanced services often require more time to staff, equipment, organize and implement than may be possible in a one year time period. Carryover funding for operating programs into the second year provides staff with the opportunity and flexibility to improve service and maintain current operations without significant dislocation or disruptions in service delivery systems. Under this concept, the following carryover policy will be followed: A. All operating budget appropriations lapse at the end of the second year of the two-year financial plan and budget except for funds encumbered under contractual agreement (which includes commitments made through purchase order) for goods and services which are essential to the operation of the City in the year for which they are encumbered. B. Operating budgets may be encumbered to ensure adequate funding for goods and services required to conduct City operations in the year in which they are encumbered. Encumbrances must be evidenced by a binding contractual agreement (including purchase orders) between the City and the party required to deliver the goods and services. Under special conditions, requests for carryover may be made by memorandum detailing the need for carryover of funds, and such a request may be considered as an encumbrance at the discretion of the Finance Director. For carryover into the subsequent year, all such contracts, purchase orders, or special request must be submitted by June 15 of each fiscal year. C. The City Manager is authorized to carry forward the unexpended and unencumbered operating budget balances from the first year to the second year of the City's Financial Plan and Budget and to program these balances for re -appropriation under the following conditions: 1. The budget balances were unexpended for reasons beyond the control of the operating department. 2. Re -appropriation of budget balances is required to ensure full funding of programs and services approved by the City Council. The expenditure of these funds will promote innovation, efficiency, and effectiveness in the delivery of City services and programs. B-19 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES D. The total of all favorable variances regardless of type (personnel, utilities, supplies, services, or minor capital) are available for carryover with the approval of the City Manager, and will be aggregated at the fund level by department. Under this approach, program overages within the department may be offset by program shortfalls. However, in no case may departmental overages in one fund be offset by departmental savings in another. E. The budget carryover will be accounted for in a non -departmental control account established by the Finance Department. F. The Finance Department will provide Department Heads with a formal balance of operating funds available for carryover by the end of the second quarter of the second fiscal year. Departments will be able to determine a tentative balance of their carryover funds prior to that date by reviewing the June 30 Financial Reports. However, these are unaudited numbers which are subject to change and, as such, the carryover balances are not official until published by the Finance Department. G. Department Heads may request through a Special Allocation Request that the unexpended budget balances of their first year operating budget be reappropriated into the second year of the two-year financial plan. All requests must justify the need for the funds in the second year and explain why the funds were not expended or encumbered in the year they were budgeted. H. When carryover requests are approved by the City Manager, the Finance Department will transfer the funding to the designated line item(s) of the Department Budget as provided on the Special Allocation Request form. FLEET POLICY In 1997 Council adopted the Fleet Policies and procedures which are to govern the management, operation, acquisition and disposition of vehicles and equipment owned and leased by the City of Lodi. Under these adopted policy guidelines, the City organized City vehicles into two fleets: General Fund and Enterprise Fund. Fleet committees were established to serve the City Manager in all vehicle -related matters to include budgeting, acquisition, disposition, assignments, vehicle operation, maintenance and insurance. Under the budget process, replacement vehicles are generally budgeted and funded in the General Fleet Fund or Enterprise Fleet Funds. Based on projected replacement needs, the City Manager and Finance Director recommend an annual target funding level as part of the budget process. This target funding level helps to establish a minimum fund balance in the appropriate Fleet Funds. B-20 2001-2003 FINANCIAL PLAN AND BUDGET BUDGET POLICIES The recommended 2001-03 target funding is: (THIS WILL BE DETERMINED DURING CAPITAL BUDGET PROCESS AND WILL BE PRESENTED TO COUNCIL AT THAT TIME) General Fund $ based on historical replacement needs Water Fund $ based on replacement requests Wastewater Fund $ based on replacement requests Electric Fund $ based on historical replacement needs The target funding does not authorize specific replacements. Vehicles will be replaced based on target funding if the replacement is justified and approved by the appropriate Fleet Management Committee. The recommendation of the Fleet Management Committee to replace existing vehicles costing $50,000 or less per vehicle is contingent on the approval of the CM. All replacement vehicles costing more than $50,000 require budgetary and subsequent procurement approval by the City Council. In addition, requests to increase the size of the City fleet will be included in the regular Capital Improvement Budget not the Capital Improvement Budget for Replacement Vehicles. B-21 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CI'T'Y GOALS Background As shown in this budget document, goals represent the highest level of a hierarchy of planning statements for the City of Lodi. This hierarchy is comprised of: • Major City Goals • Major City Objectives • Major City Projects Through the process of identifying and incorporating major City goals, objectives and projects into the 2001-03 Financial Plan and Budget, and by continuing this process in future documents, the citizens of Lodi will understand: 1) Where the City intends to concentrate expenditure of available resources 2) Anticipated outcomes and benefits of this investment of resources Goals establish a long term vision for the City of Lodi. They are characterized by the following properties: • Goals establish policy direction and focal points for the efforts of City staff. • They represent the desired accomplishments of the City organization. • Goals are not expressed in terms of work that must be performed - but in terms of the desired state or condition of the City after work has been performed. Since goals represent a desirable state or condition, they are not prone to radical change after the completion of a two year cycle, any more than the fundamental aspirations of the City are likely to change over a very short time frame. City Council, the City Manager and Department Heads have established five major City goals: 1) Improve Customer Service The City of Lodi is in the business of serving its community. Lodi city government operates in a marketplace that competes for business, shoppers, visitors, residents and users of our services. In order to succeed, we understand all employees must provide exemplary service for external and internal customers. 2) Enhance Access to Information In the continuing world of technological change, the City of Lodi must be aware of the position we hold. Part of our mission is providing information to a variety of customers. Enhancing access to information provides for an acknowledgment of that service and an efficiency in the operation - B -22 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CITY GOALS 3) Attract, Retain and Invest in a Qualily Workforce to Ensure an Efficient and Productive City Organization In response to the competitive nature of running the City, it is incumbent upon every member of the organization to investigate and implement policies which increase our productivity. The City will look to be entrepreneurial where sound policy dictates. The City will continue to use new technologies in a cost-effective manner. 4) Enhance Quality of Life and Provide a Safe Environment for Citizens Lodi's small town atmosphere and sense of community are assets that make this a special place. Terms like "Quality of Life" are implemented here through recreational and cultural opportunities. Further, public safety is a basic element of Lodi's quality of life. The City will continue to use education, prevention and enforcement to enhance our citizens' sense of safety. 5) Develop the Lodi Economy A successful community sustains itself by ensuring a balance in physical, economic and human development. Developing the Lodi economy recognizes there are many players responsible for making the community a success. The City is committed to providing existing business with a beneficial atmosphere in which to operate. The City believes the same environment will attract new business. It is understood providing high- quality programs and service is based on the need for a strong economic base. B-23 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CITY OBJECTIVES Background Objectives represent the next level of the hierarchy of planning statements for the City of Lodi. They are characterized by the following properties: • Objectives support one or more major City goals and begin to convert Council policy as expressed through goals into specific project activities. • Objectives more specifically describe the desired end result of various City programs. City Council, the City Manager and Department Heads have established sixteen major City objectives: 1) Develop Short and Long Range Operational Plans The City operates in an environment of constantly changing regulations and technology. This environment compels us to transform our operations in order to remain competitive. Departments must develop plans appropriate for the changing circumstances in their industry. These plans will place the City in a position to provide the services citizens desire at prices they are willing to pay. 2) Promote Public Relations and Marketing Efforts All existing assets, as well as new forms of service delivery and other planned features for the City, will not enhance our quality of life if the public is not educated. People must understand what the City has to offer if they are to recognize its value. The City must convey sound information regarding its services to the public. We must promote a positive image to citizens, as well as visitors and business owners outside Lodi, in order to attract them to our community. 3) Implement Information Systems Strategic Plan Computer based information technology is a fundamental part of the City's administrative infrastructure. It must be planned and managed with the same care and attention as roads, buildings or staff. Implementation of the Information Systems Strategic Plan will provide resources needed for progress on many City objectives. 4) Pursue Efforts to be Entrepreneurial This objective addresses providing needed services in a business -like fashion. As the face of local government continues to change, the City should think of itself as a service organization first and a government second. The role of competition and choice of service should be considered whenever City programs are reviewed. B-24 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CITY OBJECTIVES A) Maintain City's Sense of Community Lodi's small town atmosphere and sense of community are assets. This perception is transmitted through our community's commitment to families. Programs and services, combined with special "family oriented" events, make Lodi a chosen place to live and work. Constant attention is necessary in order to support this positive community attribute. Promote Commercial/Industrial Base Lodi has taken a proactive approach to business retention and attraction. We are committed to providing existing businesses with a healthy atmosphere in which to operate. This attitude will assist us in attracting new business. City policies and programs should continue to act as catalysts to achieve this objective. 7) Provide Resources to Maintain City's Infrastructure All residents of Lodi, existing and future, require a reliable service delivery network to maintain our quality of life. This objective includes providing adequate staff, and funding for maintaining and replacing all forms of City infrastructure - water, sewer, electric, buildings, HVAC, equipment, and vehicles. 8) Continue to Use Partnerships and Alliances to Advance City's Objectives While local control is important to the City, particularly in the area of land use, we recognize we are part of a larger region. Many issues are truly regional (e.g., annexation policy, habitat preservation, air quality). The City must work with other agencies, both public and private, to develop strategies to address regional issues. Promote Urban Forestry Trees add considerably to the aesthetics of our community. They promote a good community environment, contribute to clean air, provide cooling shade and support wildlife. Policies that continue the "greening" of the City enhance our quality of life. 10) Provide for a Balanced Community A balanced community understands the dynamics between the physical, economic and human segments in Lodi. A balanced community will provide residents and business with infrastructure and services needed to fulfill the community's diverse expectations. B-25 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CITY OBJECTIVES 11) Encourage Public Art, Cultural and Recreational Opportunities An Art in Public Places program, as well as abundant cultural and recreational opportunities, enhances Lodi's quality of life and strengthens our appeal as a destination. City staff must continue to pursue development of high quality programs at facilities which encourage expression of the human spirit. These facilities include a well maintained parks and natural areas infrastructure. 12) Provide Appropriate and Sufficient City Facilities Based on community growth and needs, this objective requires providing adequate facilities and equipment to City employees. This will enable us to properly perform our jobs and serve the public. This objective includes providing sufficient City parks, community center improvements, public art, libraries, etc. 13) Develop Effective Records Management Program A central mission of the City is focused on information delivery. A basic need is to create a systematic program for acquisition, processing, use, protection, storage and retrieval of all recorded information. The City is committed to providing the public, our customers, with records required to conduct business. The City should take advantage of available technology to implement this program. 14) Evaluate Telecommunications Opportunities All businesses, including the City, will require an advanced telecommunications and information sharing infrastructure to operate effectively in the 21st century. The City must formulate programs for providing a modern telecommunications infrastructure. This should include features such as transmission towers, underground fiber optics conduit and emergency communications technology. 15) Develop and Review Policies Relating to Providing Timely and Competent Customer Service Consistent policies which apply across all departments must be developed to provide customers with a uniform and professional approach when interacting with the City. Policies should address telephone manners, handling difficult situations, and dealing with potential and actual vendors and consultants. 16) Provide Employee Training and Education In order to provide the best possible services for our community, it is imperative we have the best educated and trained employees possible. The City's investment in itself pays dividends by creating an efficient and productive organization. IM 2001-03 FINANCIAL PLAN AND BUDGET MAJOR CITY PROJECTS Background Projects represent the foundation of the hierarchy of planning statements for the City of Lodi. They are characterized by the following properties: • Projects are planned sets of work activities designed to accomplish specific objectives. • These projects become the focus for organization wide efforts to ensure the most important, highest priority City Council plans are instituted during the 2001-03 budget cycle. City Council will become involved during the formative stages of the City's financial plan and budget through the identification of major City projects. It is the intent of the City organization to communicate major City projects to the public, initiate all, and accomplish most, during the course of this budget cycle. To meet these needs, City Council will hold a project setting session as the first step in preparation of the financial plan and budget. In setting the City's major projects Council will receive a review from the City Manager regarding: a. Current and projected financial condition b. Current policies and community expectations C. Current projects Selection of Major City Projects Under the project setting process, City Council will suggest projects they want accomplished within the 2001-03 budget cycle. Departments will also prepare projects designed to support objectives relevant to their operations. The City Council, City Manager and Department Heads will then meet and work together to select City-wide projects which will be ranked using the following criteria: * Projects Rated Highest represent highest priority projects for the Council, and as such, should be included in the Preliminary Financial Plan and adequate funding will be made available. These are not the only projects departments will focus on during this budget cycle, but they will be given highest priority. * Projects Rated High represent a high priority, but they will be considered in the context of higher priority projects and available resources. * Projects Rated Defer represent projects to be deferred until the next financial plan and budget. Each project rated Highest will be developed and included in the City's Financial Plan and Budget in this section of the document. This will be in a narrative form with the following information: * Objective * Responsible Department * Background and Workscope * Financial and Staff Resources Allocated * Action Steps * Outcome/Final Product